PERTH (miningweekly.com) – The Queensland government has released a framework that outlines the opportunities to develop the state’s next generation of deep oil and gas projects.

Natural Resources and Mines Minister Andrew Cripps said the development of deep oil and natural gas resources would create new jobs in regional Queensland and unlock major economic benefits for the whole state.

“This industry has enormous potential to increase the state’s domestic and export gas supplies, while delivering the substantial economic benefits for Queensland that come from having a secure energy supply.”

Deep gas and oil were typically more difficult to extract as they are trapped in deep reservoirs, or in hard rock formations, such as sedimentary shale rock, that have low permeability and low porosity.

Cripps noted that existing legislation allowed for the extraction of these resources, but exploration was still in its early stages in Queensland and the new framework had been compiled to ensure the industry’s future expansion was successful, environmentally responsible and accepted by communities.

“Queensland is fortunate to already have an effective, existing framework for oil and gas extraction that will also apply to deep gas and oil. However, this emerging industry must grow in a way that protects the environment and benefits our communities.”

The framework contains 12 recommendations to be implemented by the Department of Natural Resources and Mines and other government bodies, including a review of tenure arrangements for the industry, improving geoscientific knowledge of deep gas and oil reserves and informing land-holders and communities about the emerging industry.

Another recommendation included developing a Cooper Basin Industry Development Strategy.

“The Cooper basin already has deep gas production on the South Australian side of the border, as well as a long history of conventional oil and gas development,” Cripps said.

“The Cooper Basin Industry Development Strategy will take a big-picture, long-term view of how all resource projects in this area can operate collaboratively in a way that’s best for the local community and economically viable.”

MARY KATHLEEN DEVELOPMENT

Meanwhile, the state government on Friday also opened the door to the rare-earth and uranium-mining industry for the right to explore for significant quantities of easily accessible light rare-earth elements (REEs) lanthanum, cerium and neodymium at the former Mary Kathleen mine site.

A competitive tender process was opened for exploration at the mine, which when operational, contained deposits of both uranium and REEs; however, only the uranium was extracted.

The mine was released to the tender process in August this year.

Queensland Department of Natural Resources and Mines chief geologist Brad John said that a significant concentration of REEs are contained in the tailings storage facility with mineralised material also found in historic stockpiles and exposed in the openpit. There may also be potential for REEs and uranium mineralisation at depth.

“We are inviting rare earth and uranium mining companies from around the world to submit a cash bid for the exploration rights to Mary Kathleen as part of our competitive tender process,” said John.

The successful tenderer will be guaranteed eight sub-blocks with an approximate size of 25.3 km² for a term of five years, including the Mary Kathleen abandoned mine site, with no relinquishments of sub-blocks required over this period. The tenderer may also negotiate a further extension of time if required.

“Releasing this tender to market raises investment opportunities for further exploration and, in turn, allows greater understanding of the geological potential, including the concentrations of rare-earth elements, uranium and other minerals,” said John.