Summary of Reserve and Resource Life

Australia has vast resources of many of the 36 major and minor mineral commodities covered in this report, as well as unquantified resources of many other minerals, some of which are considered critical for modern and emerging technologies and by trading partners.

It is not possible to state with any certainty how long Australia’s resources will last because production rates vary, the economic viability of deposits may change in the future and the rate of new resource delineation rarely matches resource depletion. However, a general impression of the range of possibilities can be gained by deriving the ratio of the various 2018 reserve and resource estimates to 2018 production figures (Table 9). Operating mines have provided the production rates for each commodity and the resulting ratios are an average mine life that assumes the unlikely scenario that no new mines are ever developed, no mines are closed or, if so, other mines make up the shortfall in production.

The reserve and resource life estimates for ‘all deposits’ (Table 9) indicate the potential for longer term mineral supply in Australia. Using the AEDR/production ratio as the best proxy for a long-term outlook, it is only diamond, gold and manganese ore that have resource lives of less than 50 years (Table 9).

Table 9. Average reserve life and resource life (years) for selected commodities as at December 2018

Commodity	Operating Mines¹			All Deposits
Commodity	Ore Reserves²	Demonstrated Mineral Resources³	All Resources⁴	Ore Reserves⁵	AEDR⁶	All Resources⁷
Bauxite	20	33	71	20	55	100
Black Coal	22	45	68	34	115	280
Copper	21	79	112	24	95	150
Diamond	2	2	3	2	<5	<5
Gold	9	21	29	13	30	50
Ilmenite	11	40	51	43	165	400
Iron Ore	13	28	73	26	55	175
Lead	23	52	61	26	75	135
Lithium	47	58	79	59	85	105
Manganese Ore	13	32	37	13	35	110
Nickel	7	37	45	42	135	280
Rutile	11	38	49	44	160	355
Silver	16	44	54	21	70	110
Tin	24	32	47	36	60	130
Uranium	44	243	371	50	225	415
Zinc	20	44	55	22	60	100
Zircon	9	27	33	44	145	285

Notes
Reserve and resource life for each mineral commodity is calculated by dividing the inventory by production. The resulting ratio is a snapshot in time that can only be used for general impressions because it is an average and it assumes (1) that production rates in the future will remain the same as those used in the calculation, (2) deposits deemed economic/uneconomic remain so in the future and (3) that depleted resources are never replaced.

1. Operating mines includes all mines that operated during 2018 and thus contributed to production (see Table 1).

2. Ore Reserves as reported in compliance with the JORC Code, plus non-JORC Code equivalents (see Table 1).

3. Measured and Indicated Mineral Resources, inclusive of Ore Reserves, as reported in compliance with the JORC Code, plus non-JORC Code-equivalents (see Table 1).

4. All Resources for Operating Mines includes Measured, Indicated and Inferred Mineral Resources, inclusive of Ore Reserves, as reported in compliance with the JORC Code, plus non-JORC Code-equivalents (see Table 1).

5. Ore Reserves as reported in compliance with the JORC Code, plus non-JORC Code equivalents (see Table 2).

6. AEDR = Accessible Economic Demonstrated Resources (see Table 3). Figures rounded to nearest five years.

7. All Resources for All Deposits includes EDR, Subeconomic Demonstrated Resources and Inferred Resources (see Table 3). Figures rounded to nearest five years.

Portrait view of a number of wind turbines within the Albany wind farm along part of the West Australian coastline.

Energy generated from wind and solar has become a larger proportion of the energy mix over the last decade and is expected to continue growing to meet future demand for clean energy sources. A wide range of minerals, including many critical minerals, are used in the production of renewable energy technologies and Australia is well placed to provide the world with reliable and responsible supply.