Home' InDaily : January 15th 2010 Contents IMX RESOURCES LTD
Following on from IMX Resources (ASX:IXR) reaching
a conditional agreement with OZ Minerals worth up to
$50m for a JV on the non-iron ore assets they have
announced the signing a $47m heads of agreement
with a Hong Kong-based company to fund the
development of the Cairn Hill iron ore mine, located
60km SE of Coober Pedy.
The current agreement consists of $23m to purchase
50% of the Cairn Hill deposit and a minimum $24m
placement, subject to necessary approvals.
Mine development commenced in 2009, with progress
slow due to the global Financial Crisis restricting
funding. The new funding will enable mine development
to be completed. Exports of iron ore through Port
Adelaide are scheduled to start in mid 2010. If this
date is achieved it will make IMX the first of the SA
junior iron ore companies to become a producer.
Sharebrokers and Investment Advisers
Telephone (08) 8217 3900
Warnings (General Advice only): Past Performance is not a reliable
indicator of future performance. Taylor Collison Limited ("Taylor
Collison") its Directors and Staff have a significant interest in IMX
Resources Ltd. Advisors holding may change from time to time.
3The Independent Weekly
news January 15 - 21, 2010
The SA and NSW governments
have been accused of disguis-
ing the details of "reasonable
environmental flows" supposedly
crossing the border to the Lower
The River, Lakes and Coorong
Action Group, shadow water
security minister Mitch Williams,
Liberal Senator Simon Birmingham
and Independent MLC David
Winderlich all questioned how
much water SA will actually get.
Floodwaters in the Darling
River, which joins the Murray
near Wentworth in NSW, are to fill
Menindee Lakes east of Broken
Hill before flows are released
downstream. But NSW has also
announced increased allocations
to its irrigators, worsening fears
that promises of extra water to SA
are more a political gesture than a
genuine remedy for the plight of the
The river below Blanchetown is
now so salty it s approaching the
upper limit for safe drinking, and
some parts of the once-fresh Lower
Lakes are above that limit.
According to a statement issued
jointly by SA Premier Mike Rann
and NSW Premier Kristina Keneally
on Tuesday, SA will get a "reason-
able" amount, but the definition of
"reasonable" was not spelt out.
Councillor David Winderlich and
the independent candidate for
Chaffey, David Peake, have called on
Mr Rann to release details of any
floodwater agreement with NSW to
allay their suspicions the water will
have to be paid back.
"In 2008 SA had to give billions
of litres back to the eastern states
at a time when the Murray and the
Lower Lakes were struggling," Mr
"I welcome environmental water
for the Lower Lakes but we need
to know if there are any strings
Water Industry Alliance chief
executive Joe Flynn yesterday
ridiculed Ms Keneally s assertion
that 640 gigalitres of water must be
held in Menindee Lakes to service
the Broken Hill area.
"Broken Hill needs a maximum
10 gigalitres. It is absurd that the
NSW Government will hide behind
100-year-old contract agreements
and hold this water to merely watch
it evaporate," he said.
"The health of the river system
should be of primary concern
and second even to the needs of
Murray-Darling Basin Authority
chair Mike Taylor affirmed that the
authority is legally obliged to place
the health of the river system above
all other considerations.
The environmental and public
water rights group Fair Water Use
yesterday applauded that news,
but warned that Commonwealth
legislation might be needed to give
the authority more power to "truly
act as the guardian of the Murray-
Beneath the surface, though,
water industries and traders,
irrigators and domestic users are as
worried about rising water prices as
they are about its availability.
Just as oil prices rise during high
demand or low supply, water along
the Murray is now being extracted
faster than it s being replenished,
forcing up the cost.
"In a privatised setting, secure
water supplies are only guaranteed
to those able to foot the bill, with
the public and the environment his-
torically bearing the brunt of any
shortfall," Fair Water Use national
co-ordinator Ian Douglas told The
Independent Weekly yesterday.
"Water to be delivered by
Australia s multi-billion-dollar
desalination plants comes at a price:
up to five times that of conventional
supplies, and at significant cost to
"The total price of the three water
factories in NSW, Victoria and SA
currently stands at around $7.8
billion, ignoring annual operational
charges totalling many millions of
dollars which will also be borne by
Some advocates, including Mr
Flynn, say pricing structures
themselves have to change.
"For most SA homes, the majority
of a water bill is calculated based on
land value," he said.
"The National Water Commission
reports that fixed sewerage charges
make up almost 60 per cent or $423
of the typical SA residential bill.
This is the case even though sewer-
age only makes up about 40 per cent,
or $156, of the typical residential
"Government needs to restruc-
ture water prices so the less you use,
the less you pay and take away the
fixed water charges based on land
"What this means is that a
homeowner who lives on a property
worth $500,000, and who is actively
water smart, is still left paying $610
in fixed sewerage charges, regard-
less of how much water they use.
"This kind of pricing structure
does not reward people with a lower
bill for saving water or recycling
their grey water," he said.
In 1994, the SA Government
agreed to abolish this water pricing
While that was more than 15 years
ago, SA hasn t complied with the
1994 COAG agreement.
A riverbank collapse below Lock 1 caused by low water levels. Photo: Geraldine Cox
Like a fudge over
Mystery surrounds the sudden
sacking of former Adelaide
Susan Greenfield from her job as
head of Britain s Royal Institute.
The Times newspaper reports
the Baroness was served with
redundancy papers this week fol-
lowing a review of the company s
management structure and
Lady Greenfield oversaw a $38.5
million refurbishment project
which has left the RI so short of
funds its auditors questioned its
ability to continue operating.
In 2007, Premier Mike Rann
worked to establish a branch of
the institute in SA.
A spokesperson for the Premier
said yesterday the Adelaide
branch would not be affected by
the leadership change. The RI s
chief executive, Chris Rofe, will
now head the organisation.
Lady Greenfield, 59, has a
reputation as one of Britain s
most colourful and influential
scientists, but according to The
Times is also one of the most
The Guardian newspaper
accuses Professor Greenfield of
being behind phoney science
scare stories, such as computer
games, the internet and social
networking sites fuelling the
obesity crisis by "changing the
workings of the brain".
At the same time she inexpli-
cably launched a computer game
which was supposed to exercise
"short-term memory, spatial
memory, visual perception,
awareness and time estimation".
She was SA thinker-in-
residence in 2004 and 2005.
South Australians can expect
a sharp jump in electricity bills
because of climate change
"Power bills could more than
triple as a result of Mr Rudd's
climate change policies, of which
the Carbon Pollution Reduction
Scheme is central," shadow energy
minister Senator Minchin said.
National electricity planning
body Australian Energy Market
Operator says prices will nearly
double in the next two years and
will treble by 2024 as companies
and the Government pay for new
infrastructure and offset carbon
Climate Change Minister Penny
Wong said this is not surprising.
"The impact of the CPRS on
prices has been transparently on
the public record since October
2008," she said. "The Government
is providing household assistance
to ensure low and middle income
Australian households do not
foot the bill for action on climate
change," she said.
Mr Minchin said the assistance
package would be recycled money
which originated from the taxpayer.
"A great big new tax is applied
to all Australian businesses and
families which gets billions flowing
to Canberra. The Government will
then create a slush fund which
it distributes according to its
priorities," he said.
-- Farrin Foster
Electricity price could triple
Ex-thinker ponders future
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