Editor’s Letter

Woodside has signed a non-binding Memorandum of Understanding with Kansai Electric Power Co. to enable studies of a potential carbon, capture and storage (CCS) value chain between Japan and Australia. Under the MOU, KEPCO plans to research the capture of carbon dioxide (CO2) emitted from its thermal power plants and its transport to Australia. Woodside is progressing CCS projects in Australia and will conduct the study of injection and storage of CO2 delivered from Japan as well as the potential production of Synthetic Methane (e-methane). The MOU outlines a generic value chain study, that will consider the end to end technical and commercial factors with the aim of progressing a future CCS value chain between Japan and Australia. Mineral Resources Limited has confirmed entering into an Implementation Agreement with the Deed Administrators of Alita Resources Limited regarding the proposed acquisition of the Bald Hill lithium mine in Western Australia. A wholly owned subsidiary of Alita owns and operates the Bald Hill mine. Alita is subject to a Deed of Company Arrangement under which Austroid Corporation proposed to acquire the Bald Hill mine. This transaction was blocked by the Foreign Investment Review Board (FIRB) in July 2023. MinRes’ successful acquisition of the Bald Hill mine will ensure that the mine is being operated by an experienced Australian ASX listed lithium miner, and any profits are generated and taxes and royalties paid in Australia to the benefit of Australian taxpayers.

Earyl in September 2023 Saudi Arabia announced they will extend the 1 million barrels per day voluntary oil cuts until December 2023. Russia also announced the extension of its voluntary oil export cuts of 300,000 bpd until the end of the year. These moves will significantly tighten the global oil market and can only result in higher oil prices worldwide. The decisions surprised oil markets, and prices reacted strongly and suddenly following the announcements. ICE Brent front month jumped from $88.5 per barrel to over $90.5 per barrel, the highest price since November 2022.

When it was revealed last year that Saudi Arabia was considering trading its oil with China in the yuan, it was no small matter or minor shift. Many analysts at the time played it down as merely a symbolic gesture, a tactic to pressure the US or send a political message. At Davos in January this year, Finance Minister Mohammed al-Jadaan revealed Riyadh’s willingness to trade oil in yuan and a variety of other currencies. Saudi Arabia has not been the only country to do this as India, Pakistan, and UAE have also struck deals with Russia or China to pay for oil or other commodities in their various respective local currencies. Iraq was the latest to announce that it plans to regulate foreign trade from China in yuan.

The global GDP growth forecast for 2023 has been maintained at 2.4% by Oxford Economics. However, China’s GDP growth forecast has been revised downwards by 0.4 percentage points to 5.1% due to slower-than-expected economic growth in the second quarter. Global inflation is expected to gradually ease to 5.9% in 2023 as the impact of tight monetary policies take effect, as well as weaker commodity prices and easing of supply chain issues.

On behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) has announced $20.9 million for Wollongong-based startup Hysata to demonstrate their next generation hydrogen electrolyser technology at commercial scale. Hysata will develop and test a 5 MW unit at their new manufacturing facility in Port Kembla. The electrolyser array will then be installed in situ for further testing and validation before it is relocated to Queensland. Queensland governmentowned power company Stanwell Corporation is backing the project with $3 million, as well as providing the site and facilities for the field deployment of the electrolyser. The demonstration unit will be installed adjacent to the Stanwell Power Station near Rockhampton, Queensland.

The G20 Energy Transitions Ministers’ Meeting took place on July 22, 2023. The G20 energy ministers met under the theme ‘One Earth, One Family, One Future’. While consensus was reached on the majority of issues discussed, the meeting did not culminate in a comprehensive agreement on all fronts. Consequently, a joint communique was not issued. Nonetheless, the energy ministers did release an Outcome and Chair’s Summary document, agreeing on 22 out of 29 paragraphs.

Best regards

Len Fretwell

Len Fretwell Publisher/Managing Editor

DIGGING & DRILLING AUSTRALASIA

NEWS INQUIRIES

ADVERTISING INQUIRIES

EDITOR WRITERS

GUEST WRITERS

SPECIAL FEATURES

GRAPHIC DESIGNER

PUBLISHING INFORMATION

VISIT US AT FOLLOW US ON TWITTER

COVER

EDITOR@DIGGINGDRILLING.COM

LEN.FRETWELL@DIGGINGDRILLING.COM • MOBILE: 0417 001 080

LEN FRETWELL DAVID HOLMES, PRINCIPAL ENVIRONMENTAL CONSULTANT – UMWELT ENVIRONMENTAL AND SOCIAL CONSULTANTS, KRISHAN GOPAUL, SENIOR ANALYST – EMEA WORLD GOLD COUNCIL EMMANUEL SOLOMON

ZARA MATHWIN

DIGGING AND DRILLING IS A TRADING NAME OF LF FAMILY TRUST ABN: 97 893 623 301

WWW.DIGGINGDRILLING.COM @DiggandDrill

MINING TRUCK IMAGE BY OMID ROSHAN

All Parts WA

51 Old York Road, Northam

PH: 9622 5501

Battery Force 864 Pinjarra Road, Mandurah

PH: 95377720

POWER TO PERFORM. LONGER. BETTER.

Batteries & More 6 Coventry Street, Kalgoorlie PH: 9022 2216

Broome Auto Electrics (Formally Reen A/E ) 18 Flowerdale Road, Broome PH: 9192 1411

MINING & COMMERCIAL HEAVY DUTY BATTERIES

These high strength batteries are manufactured with tough internal components and materials to provide long lasting, superior power for commercial vehicles.

Bunbury Batteries

12 Stuart Street, Bunbury

PH: 9721 3038

Hitech Brake & Clutch

Jolly Good Auto Electrics

1 Crane Circuit, Karratha

PH: 9185 2070

Rotech Auto Electrics

Challenge Batteries WA

2/28 Prindiville Drive, Wangara

PH: 9309 4466

1/21 Sheldon Road, Esperance PH: 0418 922 387

1 Burgay Court, Osborne Park PH: 9446 6122 CONTACT YOUR LOCAL: