Australia Ports Probe Yet to Find More Metals Risk
Date: 11-Oct-07
Country: AUSTRALIA
Author: James Regan
Seven ports fall under the state-wide investigation, launched following the suspension in March of lead shipments from Esperance from a mine run by Magellan Metals after thousands of birds died due to lead contamination.
Late last month, a new probe was launched into lead contamination at Esperance after the discovery of high levels of lead in rainwater tanks. This raised further uncertainty over when about 8,000 tonnes of lead marooned at Esperance will be cleared for export.
Mine production in mineral-rich Western Australia has boomed as mining companies shovel material out as fast as they can to take advantage of soaring metals prices, and export volumes have jumped sharply.
This, coupled with the contamination in Esperance, has prompted an assessment of the state's ports, said Robert Atkins, environmental regulation director for the Department of Environment and Conservation (DEC).
The DEC had already visited the Geraldton and Derby ports as a priority because both ports exported heavy metals.
"Our inspection found that the port's infrastructure is appropriately enclosed and capable of containing ore dusts during loading operations," Atkins said.
Australian miner Oxiana Resources Ltd. has been working with the DEC at Geraldton, north of Esperance.
Geraldton is used by Oxiana to export minerals from Golden Grove, located 280 kilometres (174 miles) to the east, which produces zinc and copper concentrates along with smaller volumes of a concentrate that contains a mixture of silver, gold, lead and copper.
"We're carrying out these assessments primarily to screen for heavy metals and to ensure the ports have increased their capabilities to safely store and handle their products," Atkins said.
The DEC was working with the Department of Health and the Department of Consumer and Employment Protection on the assessments programme, he said.
An assessment consists of an initial screening and inspection of the equipment, systems and practices.
"Where heavy metal residues are found on port boundaries, a broader screening programme will be undertaken including rainwater tank testing and soil sampling outside the port," Atkins said.
BHP Billiton Ltd/Plc plans to use Esperance port to ship thousands of tonnes of nickel concentrate from its Ravensthorpe mine around 200 kilometres away, but it has assured port officials it will seal up the granulated material in containers before shipments start next year.
The suspension of shipments from Magellan forced its Canadian owner, Ivernia Inc to temporarily close the mine.
The loss of the mine, which supplies 3 percent of the world's lead concentrates, was the catalyst that sent lead prices soaring almost 120 percent this year to a record high of US$3,655 a tonne on the London Metal Exchange.
Ivernia in September applied to the Western Australian Environmental Protection Agency (EPA) to use the port of Fremantle near the Western Australia capital of Perth for future exports.
It has proposed transporting the concentrate in sealed bags within shipping containers.
The EPA was expected to take about a month to review the application, before submitting its recommendation to the state's environment minister, a process that could take another three to four months.
"As for the approvals of the process and the judgment on the safety, that would be an EPA matter," a Port of Fremantle spokeswoman said. "We are waiting on the EPA findings."
Portman Mining Ltd. already ships iron ore from Fremantle, while nickel miner Jubilee Mines Ltd. ships about 19,000 tonnes of concentrate a quarter, all bound for CVRD's Inco division in Canada.
The port's Web site shows it handled outgoing shipments of 213,000 tonnes of nickel concentrate, 5.9 million tonnes of iron ore and 86,262 tonnes of lead concentrate in 2006.
