The Real Costs of Mining and Mineral Processing in Australia

The minerals industry in Australia is currently regarded as the country's economic saviour; the bastion of economic security. As Fitzgerald (1974) stated, 'Australia's natural endowments in minerals are the envy of most countries of the world'. As a result the proposed new mineral developments are on a scale that hitherto in the sixties would have been completely un-envisaged. It is reported that Australia is poised on the verge of a 16 billion dollar mining-based investment boom: a boom that will see Australia dominate the energy export field, the mineral processing field, and create the 'coal dollar'. This growth scenario has many inherent dangers, and it is the authors' contention that these should be carefully considered before further development proceeds. Two of the major problems related to the mineral industry growth scenario are the predictability of the future metal market, and the energy cost of mining. The latter problem is the one discussed here. The mining-mineral processing industries in Australia currently use about 36 per cent of Australia's primary energy budget. This large energy input is dominated by two major industries, iron and steel and the rapidly developing a1uminium industry. These two combined use over 20 per cent of the total Australian energy budget. In an industry which is export oriented about 96 per cent as expressed in ex-mine value terms û much of the energy input is exported along with the product. The authors therefore urge that serious consideration by the mineral industry be given to the relatively high energy intensiveness of process operations, especially in respect of the aluminium industry.