Resources

Tasmania is rich in natural resources with vast mineral deposits on the state’s West Coast and a plentiful and valuable wood resource.

With environmentally friendly energy resources such as hydro, wind and natural gas, Tasmania is an attractive location for investing in resource processing industries.

Business opportunities

Magnesium

Three separate magnesite deposits with a high percentage of elemental magnesium have been identified in Tasmania. Investigations undertaken by consultants suggest that these ore bodies can independently sustain a large magnesium metal plant in the state.

Mineral exploration

On the west coast of the state potential exists for the discovery of a range of minerals including copper, zinc, lead, silver and nickel. The area encompassing the Mt Read volcanics on the state’s West Coast is a world class region for mineral prospectivity and already plays host to a number of major mines. Improved and enhanced geological data on the area presents an opportunity for further large discoveries to be made in the future.

The north-east region of Tasmania is a highly prospective region for gold discovery. Small-scale gold mining has been the focus of hundreds of projects in the region over the past 150 years, but the area remains largely under-explored. Two gold mines currently operate in the state.

The north east is close to the major industrial port of Bell Bay and the Tasmanian Government is committed to supporting the exploration and mining industry in the state to ensure the long term future of the industry.

Silica downstream processing

A very high-grade silica resource is currently mined at Corinna on the North-West Coast. The silica flour is beneficiated in Tasmania and exported to Japan for the manufacture of glass used in premium optical and electronic applications, including laptop computer screens. The existence of high purity silica, wood chips and excess power generation capacity mean that Tasmania is a potentially attractive location for industries that could further process the silica. This could include smelting for producing aluminium and chemical grade silicon, as well as the establishment of high-value downstream industries that could target the solar cell and electronics sectors.

Pulp mill

A pulp mill is the largest downstream value-adding opportunity for wood production in the state. Tasmania has three existing paper mills and a local wood resource currently being exported as wood chips that could be targeted for value-adding.

Rotary peeled veneer plant

A rotary peeled veneer mill has the potential to add value to Tasmanian wood prior to the end product being exported or sold interstate. The project’s potential is enhanced by the state’s well-managed and established forest industry and good transport infrastructure.

Pig iron smelter

High-grade iron ore is currently mined at Savage River on the state’s North-West Coast. The ore also contains a significant content of vanadium, which is in demand for manufacturing catalysts for automotive exhaust systems and other processes, and as an alloying element in high-grade steels.

Value could be added to this ore by smelting with one of the emerging iron technologies, which are economic at smaller scale and more environmentally acceptable than blast furnace technology. Recovery of the vanadium for further processing could add further value and ensure the viability of a small-scale iron project.

Copper smelter

Copper orebodies have been mined and concentrates produced in western Tasmania for many years. The concentrates are currently transported by road and rail to Burnie for export to interstate or overseas smelters. The availability of a local, proven copper resource and good transport infrastructure provide an opportunity for the smelting to take place locally. Locating an aluminium fluoride plant nearby could consume some of the major by-products from the process.

Aluminium fluoride

Australasia is the only major aluminium producing region without local production of aluminium fluoride, and all the requirements for the six smelters in Australia (including Comalco in Northern Tasmania) and one in New Zealand are imported. A local copper smelter could provide the sulphuric acid required for the process and Tasmania’s excellent port infrastructure provides a gateway to supply Australian and New Zealand aluminium smelters.

Medium density fibreboard (MDF)

A MDF plant already exists at Bell Bay in Northern Tasmania. Potential exists for a further operation to be established to add value to the abundant wood resource that exists in Tasmania.

Funding and assistance

There is a range of State and Australian Government funding and assistance available for investors in resource industries in Tasmania.

We assist by liaising on behalf of prospective investors with other federal, state and local government agencies, as well as private firms. The department is able to provide a comprehensive range of business assistance programs, generally tailored to meet the specific needs of the business after detailed discussion and consideration of the business proposal.

Tasmanian Forest Industry Development Program

Applications are currently being received for funding under the Tasmanian Forest Industry Development Program and the Tasmanian Sofwood Industry Development Program.

A total of $56 million has been set aside for projects that can help the industry develop and adjust to changes in the resource mix. Grants will cover between 25 per cent and 50 per cent of total project cost for successful applications.

Copies of the Commonwealth Government funded program guidelines and application forms can be accessed online and further information is available from the program secretariat on (02) 6272 4196 or (02) 6272 5611, or by email at fisap@daff.gov.au. Applications should be lodged by close of business Friday 18 November 2005.

Advice on the preparation of grant applications can be obtained from Business Point on 1800 440 026, or via info@development.tas.gov.au.

Austrade

The Australian Trade Commission is the Australian Government’s trade and investment development agency.

www.austrade.gov.au/Invest

Contact

Department of Economic Development and Tourism
ph: (03) 6233 5888
email: info@development.tas.gov.au