Earth resource industries

Minerals With the gold price reaching record levels, Victoria’s rich gold fields are once again attracting local and international resources industry attention. New discoveries are being made in areas of Victoria mostly untouched by modern exploration. Geological innovation at mines such as Stawell and Fosterville has revealed significant new gold resources and estimates suggest Victoria could contain another 20-80 million ounces of gold with a potential market value of A$60 billion. Strong global base metal prices have attracted applications to resume exploration for base metal deposits in eastern Victoria, and prices now suggest deposits, such as those at Benambra, may contain in-situ resources valued at up to US$2 billion. Though Victoria is regarded as a greenfield area for nickel exploration, geological links between parts of Victoria and the highly prospective Mt Read Volcanics in Tasmania, together with Averbury analogues, provide new incentives for exploration. To assist exploration for nickel, GeoScience Victoria has completed a new study into Victoria’s nickel prospectivity. The discovery of massive deposits of zircon, rutile and ilmenite in the Murray Basin has sparked exploration and development of a new mineral province. Iluka’s Douglas mine and mineral separation plant is set to produce 110,000 tonnes of zircon and 70,000 tonnes of rutile valued at A$120 million each year. New projects are also set to come on stream shortly.

Extractive The extractive industries sector in Victoria operates quarries that produce a range of hard rock, clay, sand and gravel products to support the building and construction industry. In 2006/07, the industry’s production had a sales value of some $654 million and directly employed over 3500 people.

Geological Carbon Storage Carbon capture and storage (CCS) is one of a number of new technologies the Victorian Government is investigating to tackle carbon pollution. It offers the potential to assist in the transition to a renewable energy future.As part of this commitment, DPI has dedicated over $210 million in funding and more than 11 CCS programs or work streams including Geological Carbon Storage, the storage component of CCS.

Oil and gas Strong petroleum exploration and development activity in Victoria has attracted over A$6 billion in investment, over 3000 construction jobs and over 300 permanent jobs in petroleum field development projects since 2000. Global demand for oil and increasing domestic demand for gas has seen the expansion of the Victorian upstream petroleum sector. Production has expanded in the last five years with oil and gas being produced from the Bass Basin and the Otway Basin. Opportunities lie in the more mature Gippsland Basin, the recently developed Bass and Otway Basins and frontier areas in the western Otway and Sorrell Basins.

Coal Victoria’s brown coal deposits are amongst the worlds largest. In the Latrobe Valley alone there is an estimated 33 billion tonnes of potentially economic resources, including 13 billion tonnes currently unallocated. Its quality (low ash and minerals) is world class and suitable for electricity, conversion to liquid fuels and a variety of other uses. Victoria and the Latrobe Valley have extensive programs to encourage research and development of clean coal and carbon capture and storage technologies. The low cost electricity generated from brown coal provides the powerhouse for Victorian industries.

Geothermal energy The Victorian Government has set a long term target to reduce Victoria’s emissions to 60% below 2000 levels, by 2050 and geothermal technology has the potential to provide clean, reliable and renewable energy to Victoria’s power supply. Five companies have accepted permits to explore for sources of geothermal energy in Victoria. The companies have proposed work programs worth A$64 million over five years.