Olympic Dam gets the nod

[softmonkey]

Huge Olympic Dam mine expansion wins federal nod

Snippets:

A huge expansion of the Olympic Dam mine in outback South Australia has been given environmental approval by the Federal Government.

The expansion would turn the site into the world's largest open-cut mine, with the open pit swallowing the existing underground mine.

The planned Port Bonython desalination plant would be connected to the expanded mine by a 320-kilometre pipeline.

There are 6,000 construction jobs promised and a further 4,000 permanent jobs for the expanded operation.

The nearby town of Roxby Downs would double in population to about 10,000.


Interesting times for SA!

 

[knightm]

been waiting a while for this.


http://www.abc.net.au/news/2011-10-10/eis-mining-olympic-dam-bhp-billiton/3458896

 

[JWR]

So now is a good time to buy in Roxby Downs - or is this already factored into prices - or do you look for cheaper nearby alternatives?

 

[mattnz]

Only 5 rentals available on Realestate.com.au already, expect rents and prices to skyrocket.

 

[knightm]

the best time to buy is 10 years ago.

the 2nd best time is now.

some growth factored in but the wait has been long and flat with a few up bumps. def more growth to come. if you think prices are high now wait 2 yrs and see what they are then

 

[JWR]

What about buying land in nearby Andamooka (35km away) and building stacks of granny flats/units?

I can see 1000sqm for $85k and you could fit 10 granny flats potentially on that. They should cost around $50k to build each (maximum - probably a lot less) and would rent for probably $200 p/w (conservative - 20% gross yield)

I can see another lot of 2000sqm for $95k - double the profits!

Not sure about costs of subdividing, council approval etc... but it seems like a good idea considering the extra accommodation that will soon be needed.

 

[knightm]

thats where my shack is. the new airport is going to be on the andamooka road. currently needing some repairs to get tenanted. once that is done it is time to work out what the approval process is for any development. mine is a double block but unsure what is being approved atm

 

[JT7]

Roxby Downs will most certainly benefit.

I think Adelaide in general is going to be a good play over the next 3-5 years. The expansion of the Olympic Dam mine and the opening up of the Woomera area for exploration is exciting and bodes well for the property market.

That together with progressive councils, the development of TOD's, Adelaide's 'infil' housing strategy, rezoning and aggressive transport infrastructure development all in the pipeline it is solid investing IMHO.

Perhaps similar to Perth over the last decade? Time will tell.

 

[cheechee]

Only 5 rentals available on Realestate.com.au already, expect rents and prices to skyrocket.

But how about this from AFR today:

"As part of the state approval BHP will be required to play a major role in the housing market at Roxby Downs. It will need to maintain a minimum housing vacancy rate in the town of 5 percent as well as providing a minimum of 7 percent affordable rental and home purchase opportunities in all new housing developments."

will the rent skyrocket though with 5% vacancy rate? would love to hear your thoughts.

 

[womble66]

Maybe they will acheive this by building their own township adjacent to Roxby Downs as reported in the media.

Still needs BHPs final decision to proceed which is due around Easter 2012 also with a caveat they must start major construction with 4 years or the approval lapse.

 

[Investor78]

No doubt, there will be increased demand for rentals.

However, there is a big trend towards fly-in fly-out workers these days, so take that into account when estimating future rental demand.

 

[Jaggannath]

No doubt, there will be increased demand for rentals.

However, there is a big trend towards fly-in fly-out workers these days, so take that into account when estimating future rental demand.

But a number of these developments now require them to have x% of residents to 'prevent' troubles.

Stay away from the mines, they cause earthquakes

 

[Sunfish]

It wont happen while the greens are running tax policy.

 

[gfreer]

Olympic Dam, Roxby Downs

No doubt, there will be increased demand for rentals.

However, there is a big trend towards fly-in fly-out workers these days, so take that into account when estimating future rental demand.

Adelaide is going to be the big winner here due to FIFO workforce. India is desperate for our coal as well as our uranium.

Electricity demand in India is increasing rapidly, and the 830 billion kilowatt hours produced in 2008 was triple the 1990 output. Doubling again in next 9yrs
http://www.businessspectator.com.au...m-super-pd20111115-NLRN7?OpenDocument&src=kgb

 

[knightm]

Adelaide is going to be the big winner here due to FIFO workforce. India is desperate for our coal as well as our uranium.

Electricity demand in India is increasing rapidly, and the 830 billion kilowatt hours produced in 2008 was triple the 1990 output. Doubling again in next 9yrs
http://www.businessspectator.com.au...m-super-pd20111115-NLRN7?OpenDocument&src=kgb

Olympic isnt coal tho. Uranium yes but I am not aware of any large binding contracts to supply Uranium in place yet? Anyone else know more on that? I would agree there should be some ripple felt in Adelaide, but for FIFO they can equally come from other cities.

 

[CHam]

This one looks good....

Weekend getaway with great views!!


http://www.realestate.com.au/property-house-sa-andamooka-107245344

 

[Jaggannath]

Olympic isnt coal tho. Uranium yes but I am not aware of any large binding contracts to supply Uranium in place yet? Anyone else know more on that? I would agree there should be some ripple felt in Adelaide, but for FIFO they can equally come from other cities.

Awaiting the ALP convention apparently