Mining keeps Australia ticking

The Australian economy grew 1 per cent in the September quarter thanks to the approval of major mining and energy projects. Resources and mining companies dominating the headlines this past week include the WA Supreme Court ruling against the state government's acquisition of land for Woodside's $30 billion Browse liquefied natural gas project, BHP Billiton says it  will simplify its aluminium and nickel divisions and run them as ''lean and mean as possible'', Aquila Resources secures environmental approval for its first iron ore mine in the Pilbara, Origin Energy controlled Contact Energy will purchase the diesel fired Whirinaki plant in New Zealand for $33 million from the government and Iluka Resources strikes a deal with buyers to supply rutile and synthetic rutile for a higher price.

Resources News
The Australian economy grew 1 per cent in the September quarter thanks to the approval of major mining and energy projects. Over the year to September, gross domestic product grew by 2.5 per cent, seasonally adjusted, reported the Australian Bureau of Statistics. Spending on new engineering for non-residential construction jumped 31 per cent in the quarter, to $18.5 billion. The split between mining and non-mining states is evident, with demand in Western Australia surging 8.4 per cent, compared with South Australia, where demand fell by 1.6 per cent in the quarter.

Woodside says no delays
The WA Supreme Court has ruled against the state government's acquisition of land for Woodside Petroleum Limited's (ASX:WPL) $30 billion Browse liquefied natural gas project. The court found the compulsory acquisition notices were unlawful, as they did not contain a description of the land required. Premier Colin Barnett said the WA government would reissue the notices with amendments. Woodside says it does not believe the ruling will delay its development plans. The Kimberley community has had an ongoing battle with the gas producer over the proposed processing facility at James Price Point.

Woodside also reports the North West Shelf project participants have approved the $2.5 billion development of the first phase of the Greater Western Flank project off the north-west coast of Australia.

Woodside chief executive Peter Coleman said, "This project will continue to maximise the value of existing infrastructure and demonstrates ongoing investment in Australia's largest resource project".

BHP "lean and mean"
BHP Billiton Limited (ASX:BHP) says the miner will simplify its aluminium and nickel divisions and run them as ''lean and mean as possible''. CEO Marius Kloppers has advised neither divisions are likely to see new investment and has labelled both the divisions as "tough". The comments add to speculation the miner is looking to offload its aluminium and nickel divisions, just one week after BHP flagged the potential sale of its diamond business in Canada.

Aquila secures environmental approval
Aquila Resources Limited (ASX:AQA) has secured environmental approval for its first iron ore mine in the Pilbara region of Western Australia. Aquila has a 50 per cent stake in the $5.8 billion project that last week secured the federal government's conditional approval to proceed. Both approvals will now enable authorities within the government to assess, and potentially approve, development of the mine site's proposed facilities and railway. Final approvals are expected in the second quarter of next year.

Origin buys NZ generation plant
Origin Energy Limited (ASX:ORG) controlled Contact Energy Limited (NZE:CEN) will purchase the diesel fired Whirinaki plant in New Zealand for $33 million from the government. Contact will also acquire about four million litres of diesel stored on site when the transaction is finalised within weeks. CEO of Contact, Dennis Barnes, says the plant provides greater flexibility and fuel security to the company's existing generation capacity. Contact developed the plant which was operated by the government prior to Contact deciding to buy it. Origin holds a 52.76 per cent interest in New Zealand listed Contact Energy.

Meanwhile, Empire Oil & Gas NL (ASX:EGO) and Origin Energy have inked a deal that will see Origin take a 40 per cent interest in two of Empire's exploration blocks in Western Australia.

Iluka strikes higher pricing deal
Mineral sands producer Iluka Resources Limited (ASX:ILU) has struck a deal with its buyers to supply rutile and synthetic rutile for a higher price. Iluka says the agreements are for sales in the first half of next year for customers in the pigment, titanium sponge and welding markets. The price for rutile is expected to increase by up to 85 per cent and synthetic rutile is expected to increase by up to 90 per cent, relative to the forecast weighted average price for the prior half year. The new prices will become effective from the beginning of next year for six months.

Melissa Beaumont Lee