Home' Australian Resources and Investment : June 2017 Contents and practical technology will also be
critical to help costs.
At our mega project at Roy Hill, in the
north of West Australia, we are investing in
technology, as are other producers.
To make Roy Hill one of the most
technologically advanced mining
projects in Australia, we are using new
best-practice technologies, including
robotic laboratory product sampling,
auto refuelling, tele-remote dozers,
autonomous drilling, remote train
control and drones.
Drones, in particular, we have
adapted so that their functionality is
enhanced, allowing us to do multiple
things, such as monitor mining,
environmental and maintenance
activity, as well as incident investigation
and measuring stockpiles of iron ore
that are ready to be loaded.
Our Roy Hill project is ramping up
this year to become the largest single
iron ore mine in the north, to produce
55 million tonnes per annum.
Assuming an iron ore price of US$62
per tonne, this will bring tax and
royalty revenue over the life of mine to
approximately A$9 billion, and if we
assume a price of US$73 per tonne,
then that's approximately. A$ 11 billion.
The project includes its own
integrated low-phosphorous iron ore
mine, 344-kilometre heavy-haul railway
system and dedicated port facilities.
The journey to build this mine was a
I acquired the tenements to Roy Hill
in 1993, after they were dropped by
another major company that did not
think they were of value.
Against all professional advice at the
time -- understandable, given that the
arguably most-knowledgeable miner in
the Pilbara had decided it was not worth
pursuing -- I decided to press forward
and take up and explore the Roy Hill
tenements. Advice continued to drop them.
Fortunately, we found that the other
company had not placed their drill holes
in the right places, and we found the
Roy Hill ore bodies.
Our project, after decades of work,
risk, money, thousands of government
approvals permits and licences, and
US$10 billion investment, is now in
operation, exporting its ore to Asia,
and recently celebrated a signi cant
milestone -- the railing of 34 million
tonnes of ore.
This is the fastest delivery of ore in
the Pilbara and West Australia, beating
two of the biggest mining companies in
the world: BHP Billiton and Rio Tinto.
Our project has also marked a
number of rsts, including securing the
world's largest debt-funding package
for a mainly green elds, land-based
mining project, from 19 of the largest
banks in the world, and ve export
Roy Hill uses some of the world's
biggest equipment, some of the fastest
operating equipment, has won many
awards, and has achieved safety
records better than Pilbara's and West
Australia's mineral resources
industry has long been a large
contributor to our Australian economy.
Entrepreneurs have played a critical part
in this, battling many odds and not only
government obstacles, but obstacles put
up at times by competitors.
Sadly, though, Australian Government
tape and our Australian legal industry,
Indian investors and ourselves have not
been able, after investing many hundreds
of millions of dollars, to open up the
Galilee Basin in Australia, to export
much-needed thermal coal to India,
to power your electricity plants with
relatively low ash and low-sulphur coal.
Growing up in the outback in the
north of West Australia, in remote
and hot areas, without electricity,
but supplied by generators operating
approximately two hours or less per
day, I have some understanding of
life without electricity in remote and
hot areas, long distances from city
conveniences. And sympathy, too.
India's mining and resources
industry and its potential
Fortunately for India, the situation is now
different, and your mining and resources
industry has a huge capacity to grow.
Across India's vast landmass, around
89 minerals are produced and the
mining industry currently makes up
about 2--3 per cent of GDP.
According to an Ernst and Young
study, only 7--9 per cent of India's
mineral resources have been explored.
This estimate highlights the
enormous potential for future mining
exploration across India. I see a bright
future for the resources industry in
India, as there are a number of factors
Firstly, and as I outlined earlier, the
reform agenda of your Prime Minister
plays a critical role in this, from red tape
to red carpet.
Prime Minister Modi has welcomed
investment and businesses to India. Also
working in India's favour is your large
population who are wanting to work.
To construct new mines and their
required infrastructure, thousands of
workers are needed; and with your large
population, you are able to meet these
needs and provide jobs to many who need
them, as well as further opportunities for
the many related industries.
The bus driver who drives workers
to site, the local food vendor who feeds
the workers and the factory worker
who makes the uniforms, the people
who need to be employed to clean
the uniforms and the mining camps,
all these and many more stand to
secure greater prosperity if mining
exploration and production in your
great nation accelerate. Moreover, India
is closely located to Asian countries
whose demand for mineral resources
continues to grow.
Closer proximity to the end
customer means the advantage of lower
India's own strong economic growth
is a huge advantage, as well.
As the economy grows, local
demand continues to increase, and
for those companies needing mineral
resources, close domestic proximity is
a signi cant advantage.
Indeed, much of the world's cutting-
edge technology is invented, developed
and made in India.
And, India has the huge bene t
of many intelligent and hardworking
VOLUME 11 NUMBER 2 • Australian Resources and Investment • 9
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