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WESTERN AUSTRALIA


Western Australian Operations

Bemax has 13.9 million tonnes (Mt) of heavy mineral resources, of the Company’s total 85Mt, in the South West of Western Australia.

The Company’s Western Australian operations are run through its wholly owned subsidiaries that make up the Cable Sands Group ("Cable Sands").

Ludlow, Tutunup and Tutunup South Mines

The Ludlow Mine commenced operations in December 2004. The Tutunup and Tutunup South Mines commenced operations in December 2003 and December 2005, respectively. The Tutunup Mine ceased operations in September 2005. The Western Australian mines produce predominately Ilmenite and Zircon, with some Leucoxene and Rutile. 

Gwindinup Mine

Our Gwindinup deposit is located approximately 30 km south of our Bunbury mineral separation plant and comprises both the Gwindinup North and Gwindinup South deposits. Additional ore deposits (Happy Valley North and Happy Valley South) are located adjacent to the Gwindinup deposit and are expected to be mined as an extension of the Gwindinup Mine. The Gwindinup and Happy Valley deposits contain 2.9 million tonnes of contained heavy mineral, approximately 10% of which is Zircon.

Ministerial approvals for the Gwindinup North and Gwindinup South deposits were received in December 2005. Development of the Gwindinup Mine commenced in May 2007 and is expected to be completed in early 2008 at a capital cost of A$17 million (excluding the Happy Valley North and Happy Valley South extension). The Gwindinup Mine (including the Happy Valley North and Happy Valley South extension) has an approximate seven-year mine life which is relatively long for the region.

Production

The Western Australian mines have performed particularly well over 2006. Cable Sands has a number of clients for Western Australia production and is regarded in the industry as an experienced and stable supplier. A reputation built over the last 50 years.

Bunbury Mineral Separation Plant

The Bunbury Mineral Separation Plant (MSP) treats feedstock from the Company’s own mines, as well as on a toll treatment basis for a number of customers. During 2005 the MSP underwent a $6 million upgrade to allow it to simultaneously process feedstock from the Western Australian and Murray Basin operations as well as a wider variety of toll treatment feedstock.