1 00:00:04,140 --> 00:00:08,880 Sean Aylmer: Welcome to the Fear & Greed Daily Interview. I'm Sean Aylmer. Australia's largest 2 00:00:08,880 --> 00:00:11,970 Sean Aylmer: undeveloped silver deposit is set to be mined with planning 3 00:00:11,970 --> 00:00:15,870 Sean Aylmer: authorities approving the massive project as demand for critical minerals 4 00:00:15,870 --> 00:00:20,070 Sean Aylmer: sours. The Bowdens silver mine about 30 kilometers from Mudgee in 5 00:00:20,070 --> 00:00:23,009 Sean Aylmer: the New South Wales Central West is expected to produce 6 00:00:23,010 --> 00:00:27,270 Sean Aylmer: about 3. 4 million ounces of silver per year, as 7 00:00:27,270 --> 00:00:30,960 Sean Aylmer: well as valuable byproducts like zinc and lead. But these 8 00:00:30,960 --> 00:00:34,020 Sean Aylmer: same byproducts have seen a surge in local opposition to 9 00:00:34,020 --> 00:00:37,020 Sean Aylmer: the project despite New South Wales Health and the Environmental 10 00:00:37,020 --> 00:00:41,220 Sean Aylmer: Protection Agency not raising any concerns that couldn't be managed. 11 00:00:41,430 --> 00:00:44,700 Sean Aylmer: Anthony McClure is the managing director of Silver Mines Limited, 12 00:00:44,700 --> 00:00:47,310 Sean Aylmer: the company behind the mine. Anthony, welcome to Fear and Greed. 13 00:00:48,060 --> 00:00:48,900 Anthony McClure: Thanks very much. Sean. 14 00:00:49,530 --> 00:00:51,360 Sean Aylmer: Tell me about the project. Tell me the stats. It's 15 00:00:51,360 --> 00:00:52,199 Sean Aylmer: a big development. 16 00:00:53,700 --> 00:00:57,420 Anthony McClure: Yeah, it's pretty big. It's the largest undeveloped silver project in 17 00:00:57,420 --> 00:01:00,360 Anthony McClure: Australia and one of the largest globally. In terms of 18 00:01:00,360 --> 00:01:02,279 Anthony McClure: the size of the mine, it's not as big as 19 00:01:02,280 --> 00:01:07,350 Anthony McClure: a coal mine or a big gold mine, whatever. But I'll classify it as 20 00:01:07,350 --> 00:01:10,830 Anthony McClure: a medium size mine, but the growth potential is significant 21 00:01:10,830 --> 00:01:12,001 Anthony McClure: so it will grow over time. 22 00:01:12,001 --> 00:01:16,560 Sean Aylmer: Okay. So just tell me, you've got the approvals to 23 00:01:16,560 --> 00:01:19,110 Sean Aylmer: develop it. What's next? What's the next few years look like? 24 00:01:20,100 --> 00:01:22,770 Anthony McClure: Yeah, well the approvals was a big moment for us 25 00:01:23,069 --> 00:01:26,160 Anthony McClure: and obviously we've been working on that for many years. 26 00:01:26,160 --> 00:01:30,119 Anthony McClure: Our environmental assessments were submitted almost three years ago and 27 00:01:30,209 --> 00:01:33,450 Anthony McClure: it's a long time to get through the approvals, so it was 28 00:01:33,780 --> 00:01:36,840 Anthony McClure: a big headline for us and probably the biggest moment 29 00:01:37,650 --> 00:01:40,020 Anthony McClure: in the company's time and getting those final approvals through 30 00:01:40,020 --> 00:01:44,700 Anthony McClure: New South Wales has a process that is detailed and 31 00:01:44,819 --> 00:01:48,240 Anthony McClure: we have got through the process obviously with flying colours. 32 00:01:48,570 --> 00:01:51,540 Anthony McClure: The development process now is we have a lot more planning to do, 33 00:01:51,540 --> 00:01:53,669 Anthony McClure: so for the balance of this year, we'll have more 34 00:01:53,670 --> 00:01:57,270 Anthony McClure: planning in terms of the lead up for development and we 35 00:01:57,270 --> 00:02:00,300 Anthony McClure: hope to be making a decision early in 2024 for 36 00:02:01,350 --> 00:02:01,890 Anthony McClure: the development. 37 00:02:02,490 --> 00:02:03,810 Sean Aylmer: Okay. You're going to have to help me out here 38 00:02:03,810 --> 00:02:07,320 Sean Aylmer: Anthony. How is silver actually mined, what's the process? 39 00:02:07,890 --> 00:02:11,700 Anthony McClure: Well, it's like any mine really. We're an open- cut operation. 40 00:02:12,480 --> 00:02:15,930 Anthony McClure: Perhaps in the future it might go underground, but the 41 00:02:15,930 --> 00:02:19,620 Anthony McClure: initial kickoff is just an open- cut operation. We'll be 42 00:02:20,010 --> 00:02:22,710 Anthony McClure: operating for 16 years or so, but we are happy 43 00:02:22,710 --> 00:02:25,650 Anthony McClure: to say this operation will still be in production in 44 00:02:25,650 --> 00:02:30,510 Anthony McClure: 50 years time. It's a large mineralised system that keeps 45 00:02:30,510 --> 00:02:33,870 Anthony McClure: going at depth and we are planning an underground operation 46 00:02:34,500 --> 00:02:37,230 Anthony McClure: as we speak as well. But the initial approvals is 47 00:02:37,230 --> 00:02:39,900 Anthony McClure: for the initial kickoff are being the open- cut operation. 48 00:02:40,169 --> 00:02:44,010 Sean Aylmer: Okay. So you extract silver, the byproducts of zinc and 49 00:02:44,010 --> 00:02:47,609 Sean Aylmer: lead, are they kind of part of the extraction process 50 00:02:47,610 --> 00:02:49,470 Sean Aylmer: along with silver and then they're split? Is that how 51 00:02:49,470 --> 00:02:50,010 Sean Aylmer: it works? 52 00:02:50,220 --> 00:02:54,000 Anthony McClure: Yeah, it all comes out together. So we'll produce two 53 00:02:54,000 --> 00:02:57,720 Anthony McClure: products. One is the silver and lead concentrate, and then 54 00:02:57,720 --> 00:03:00,419 Anthony McClure: we have a silver product as well. Just in terms 55 00:03:00,419 --> 00:03:04,169 Anthony McClure: of the revenues, about 70% of the operation will be from silver, 56 00:03:04,470 --> 00:03:08,639 Anthony McClure: 20% from zinc and 10% from lead. The main product 57 00:03:08,639 --> 00:03:12,270 Anthony McClure: being the silver lead concentrate, that's likely to go by 58 00:03:12,270 --> 00:03:16,169 Anthony McClure: rail to Port Pirie in South Australia for processing and 59 00:03:16,169 --> 00:03:19,139 Anthony McClure: the zinc product will go to Tasmania or anywhere in 60 00:03:19,139 --> 00:03:23,940 Anthony McClure: Asia for processing. But these are quality products and quality 61 00:03:23,940 --> 00:03:26,550 Anthony McClure: concentrates and they can effectively go anywhere in the world 62 00:03:26,550 --> 00:03:27,150 Anthony McClure: for processing. 63 00:03:27,419 --> 00:03:30,150 Sean Aylmer: And we talk a lot about precious minerals and then 64 00:03:30,150 --> 00:03:33,690 Sean Aylmer: the need for more of them, these critical minerals, what 65 00:03:34,200 --> 00:03:37,410 Sean Aylmer: is silver used for? What's zinc and lead used for? 66 00:03:37,410 --> 00:03:39,090 Sean Aylmer: What's silver zinc used for? 67 00:03:39,510 --> 00:03:42,570 Anthony McClure: Silver's really topical at the moment because it's a major 68 00:03:42,570 --> 00:03:47,670 Anthony McClure: component in photovoltaics, also solar power. It's also a key 69 00:03:47,940 --> 00:03:53,010 Anthony McClure: item in electric vehicles and there's sort of 50 odd 70 00:03:53,340 --> 00:03:57,000 Anthony McClure: points in an electric vehicle where silver's required. And the reason 71 00:03:57,000 --> 00:04:00,540 Anthony McClure: for that, it's in those new technologies or developing technologies, 72 00:04:00,870 --> 00:04:04,410 Anthony McClure: is because silver is by far the best electrical conductor 73 00:04:04,410 --> 00:04:07,170 Anthony McClure: out of all the metals. So when you're trying to 74 00:04:07,170 --> 00:04:09,870 Anthony McClure: get the best out of your battery in your electric vehicle, 75 00:04:10,080 --> 00:04:13,830 Anthony McClure: having that silver connectivity provides that connectivity to get the 76 00:04:13,830 --> 00:04:18,540 Anthony McClure: utmost out of the battery. Solar power cells, they don't 77 00:04:18,540 --> 00:04:21,960 Anthony McClure: operate without silver in them. The technologies may change over time, 78 00:04:22,290 --> 00:04:26,400 Anthony McClure: but it's very much a growth industry. And it's not 79 00:04:26,400 --> 00:04:29,610 Anthony McClure: just those two areas, but you know, think about mobile phones, 80 00:04:29,610 --> 00:04:35,490 Anthony McClure: 5G towers, computers, TVs, whatever, almost all componentry like that 81 00:04:35,520 --> 00:04:38,430 Anthony McClure: has silver in it and it's always going to be a 82 00:04:38,430 --> 00:04:41,969 Anthony McClure: growth market. And these other is as well, but about 83 00:04:41,970 --> 00:04:46,409 Anthony McClure: half of silver is used in industrial applications and then 84 00:04:46,410 --> 00:04:51,000 Anthony McClure: you have the classics like jewelry and coinage and so forth. 85 00:04:51,000 --> 00:04:54,839 Anthony McClure: But the real growth growth market is in the electrical applications, 86 00:04:54,839 --> 00:04:56,040 Anthony McClure: industrial applications. 87 00:04:56,460 --> 00:04:58,260 Sean Aylmer: Stay with me, Anthony, we'll be back in a minute. 88 00:05:04,380 --> 00:05:07,469 Sean Aylmer: My guest this morning is Anthony McClure, managing director of 89 00:05:07,470 --> 00:05:10,650 Sean Aylmer: Silver Mines Limited. So we certainly need more of those 90 00:05:10,650 --> 00:05:14,310 Sean Aylmer: critical minerals. The flip side to this whole discussion is 91 00:05:14,370 --> 00:05:18,000 Sean Aylmer: the, I suppose, community license. So there was community opposition 92 00:05:18,000 --> 00:05:21,120 Sean Aylmer: to the mine, that Mudgee area. Obviously a lot of 93 00:05:21,120 --> 00:05:23,850 Sean Aylmer: vineyards around there, there's plenty of mining around there as 94 00:05:23,850 --> 00:05:27,300 Sean Aylmer: well. Great farming land in places. A lot of opposition 95 00:05:27,300 --> 00:05:30,029 Sean Aylmer: seem to focus on the byproduct of lead. How do 96 00:05:30,029 --> 00:05:32,610 Sean Aylmer: you manage that? So I mean we know that the 97 00:05:32,610 --> 00:05:35,730 Sean Aylmer: approvals process allowed the mine through, so I'm not even 98 00:05:36,000 --> 00:05:37,799 Sean Aylmer: no sort of value judgment in this, but how do 99 00:05:37,800 --> 00:05:42,510 Sean Aylmer: you manage working at, with a community like that, to 100 00:05:42,510 --> 00:05:43,680 Sean Aylmer: get them across the line? 101 00:05:44,400 --> 00:05:47,880 Anthony McClure: Well the opposition to this mine, and it's no different 102 00:05:47,880 --> 00:05:51,750 Anthony McClure: to other mines, however, our process has been pretty good 103 00:05:51,750 --> 00:05:55,560 Anthony McClure: because we have such strong local support for the project. 104 00:05:55,860 --> 00:05:59,550 Anthony McClure: The opposition there, yes, was talking about lead and so forth. 105 00:06:00,060 --> 00:06:03,000 Anthony McClure: But yeah, in our assessment process, so we bring in 106 00:06:03,000 --> 00:06:08,160 Anthony McClure: a international renowned expert to do the work on understanding 107 00:06:08,550 --> 00:06:12,029 Anthony McClure: the issues that we must handle. That then goes off 108 00:06:12,029 --> 00:06:16,260 Anthony McClure: to 14 government departments. Our reviewer that did the independent 109 00:06:16,260 --> 00:06:20,039 Anthony McClure: work was also peer reviewed by another expert. As I 110 00:06:20,040 --> 00:06:22,589 Anthony McClure: say 14 government departments look at it. The Department of Planning 111 00:06:22,589 --> 00:06:25,620 Anthony McClure: and Environment look at it. Then they also peer review. 112 00:06:25,620 --> 00:06:29,040 Anthony McClure: And in each of those assessments there were no detrimental 113 00:06:29,040 --> 00:06:34,001 Anthony McClure: health problems for the operation in its entirety in its life. 114 00:06:33,900 --> 00:06:35,730 Anthony McClure: So it's not an issue at all. Yes, it was 115 00:06:35,730 --> 00:06:38,789 Anthony McClure: a bit of a beat up and whatever, but it's a non- 116 00:06:38,790 --> 00:06:39,360 Anthony McClure: issue really. 117 00:06:40,380 --> 00:06:43,320 Sean Aylmer: So I'm not questioning you at all about what you've 118 00:06:43,320 --> 00:06:46,020 Sean Aylmer: just said, but it's more just the process of managing 119 00:06:46,020 --> 00:06:48,510 Sean Aylmer: people is really what I mean. Because every mine, I 120 00:06:48,510 --> 00:06:50,849 Sean Aylmer: mean there's one near Blayney, which isn't that far from Mudgee. 121 00:06:51,480 --> 00:06:54,930 Sean Aylmer: Certainly in the Narrabri area. There's Hope in Queensland. No matter what, 122 00:06:54,960 --> 00:06:57,300 Sean Aylmer: there's always got to be a lot of work with community, 123 00:06:57,300 --> 00:06:57,780 Sean Aylmer: doesn't there? 124 00:06:58,140 --> 00:07:01,410 Anthony McClure: Yes, indeed. And when we took over the project six 125 00:07:01,410 --> 00:07:05,580 Anthony McClure: years ago, the previous operator had left it in, not in 126 00:07:06,360 --> 00:07:08,700 Anthony McClure: great state. So we saw that before we took over. 127 00:07:08,700 --> 00:07:11,130 Anthony McClure: We spent a lot of effort for the community to 128 00:07:11,130 --> 00:07:15,660 Anthony McClure: understand us. But the main opportunity for us is really 129 00:07:15,660 --> 00:07:18,120 Anthony McClure: just to be open and transparent and as we build 130 00:07:18,120 --> 00:07:20,580 Anthony McClure: up, all of our staff are part of the community. 131 00:07:20,880 --> 00:07:23,520 Anthony McClure: We live and work in the community, we're well known in 132 00:07:23,520 --> 00:07:26,970 Anthony McClure: the community. And when you're open and transparent and you're not 133 00:07:27,180 --> 00:07:29,640 Anthony McClure: trying to hide things, whatever, it's a pretty simple process. 134 00:07:29,640 --> 00:07:32,610 Anthony McClure: Yes, you're not going to please everyone, but by far 135 00:07:32,670 --> 00:07:37,050 Anthony McClure: overwhelmingly is we now have very solid local support and 136 00:07:37,500 --> 00:07:42,000 Anthony McClure: there's reasons for that. We're in a region where we 137 00:07:42,000 --> 00:07:43,800 Anthony McClure: have a lot of coal mining, whatever, and that will 138 00:07:43,800 --> 00:07:47,550 Anthony McClure: be pinched out over the next decade or two. So the region 139 00:07:47,550 --> 00:07:50,040 Anthony McClure: is very focused on, well, what's going to come in 140 00:07:50,040 --> 00:07:53,489 Anthony McClure: behind there? And yes, we have wineries not around us, 141 00:07:53,490 --> 00:07:57,989 Anthony McClure: but closer into Mudgee, but there's other opportunities there. But 142 00:07:57,990 --> 00:08:02,100 Anthony McClure: diversification is really important. That's been a real focus locally 143 00:08:02,100 --> 00:08:06,960 Anthony McClure: by government and by council as well. And so we're 144 00:08:06,960 --> 00:08:09,960 Anthony McClure: in a pretty good position there where people are thinking, 145 00:08:09,960 --> 00:08:12,870 Anthony McClure: well, what happens post coal? You need industries like this 146 00:08:13,080 --> 00:08:17,100 Anthony McClure: developed otherwise we are turning profitable parts of our state 147 00:08:17,490 --> 00:08:20,700 Anthony McClure: into lands which are not so productive. So it's great. 148 00:08:20,700 --> 00:08:23,310 Anthony McClure: It's great to see the government supporting these sorts of 149 00:08:23,310 --> 00:08:25,650 Anthony McClure: industries, council and the community as well. 150 00:08:26,130 --> 00:08:28,260 Sean Aylmer: Do you have some sense of how much economic benefit 151 00:08:28,260 --> 00:08:29,970 Sean Aylmer: it will bring to that Mudgee region? 152 00:08:30,600 --> 00:08:33,570 Anthony McClure: Well, in terms of jobs, so yeah, we'll have 320 153 00:08:34,650 --> 00:08:37,559 Anthony McClure: new jobs in construction. That'll settle down to about 230 154 00:08:37,559 --> 00:08:41,220 Anthony McClure: jobs. But for this sort of industry, we create another 155 00:08:41,520 --> 00:08:44,940 Anthony McClure: two, two and a half jobs, per each mining job. 156 00:08:44,940 --> 00:08:48,600 Anthony McClure: So we're talking 500 or 600 jobs that are created locally. So 157 00:08:48,840 --> 00:08:52,709 Anthony McClure: service industries, local support industries and so forth that are 158 00:08:53,280 --> 00:08:57,150 Anthony McClure: created, get huge benefits from the area. And as I 159 00:08:57,150 --> 00:09:01,020 Anthony McClure: say, the longevity of this project is certainly apparent. The 160 00:09:01,020 --> 00:09:04,050 Anthony McClure: initial development's for a 16 year mine life. But as I 161 00:09:04,050 --> 00:09:07,020 Anthony McClure: say, this project will be still in production in 50 162 00:09:07,020 --> 00:09:10,800 Anthony McClure: years time. So for the state revenues, as the coal 163 00:09:10,800 --> 00:09:14,160 Anthony McClure: mining pinches out for this year for the example, there's $ 6 164 00:09:14,160 --> 00:09:17,069 Anthony McClure: billion in revenues that come from mining in New South 165 00:09:17,070 --> 00:09:20,760 Anthony McClure: Wales, most of that is from coal. So what happens post- 166 00:09:20,760 --> 00:09:23,010 Anthony McClure: coal is a real scratch of the heads at the moment. 167 00:09:23,250 --> 00:09:25,170 Anthony McClure: So it's these sorts of projects that need to step 168 00:09:25,170 --> 00:09:27,839 Anthony McClure: up and create that revenue. And you're thinking about the 169 00:09:27,840 --> 00:09:31,170 Anthony McClure: hospitals, the schools, roads and so forth. And a big 170 00:09:31,170 --> 00:09:33,750 Anthony McClure: part of that is paid by mining royalties in the 171 00:09:33,750 --> 00:09:37,650 Anthony McClure: state. And we need to be promoting other industries and 172 00:09:37,650 --> 00:09:41,370 Anthony McClure: being a part of the renewable space and de- carbonization 173 00:09:41,370 --> 00:09:44,309 Anthony McClure: industries, which we are delighted to be a part of 174 00:09:44,309 --> 00:09:47,729 Anthony McClure: it and it's going to be great for the region 175 00:09:47,910 --> 00:09:50,010 Anthony McClure: and obviously for our staff and the community as a whole. 176 00:09:51,150 --> 00:09:53,160 Sean Aylmer: Anthony, thank you for talking to Fear & Greed. 177 00:09:53,850 --> 00:09:54,840 Anthony McClure: Pleasure, Sean. Thank you. 178 00:09:55,380 --> 00:09:59,100 Sean Aylmer: That was Anthony McClure, managing director of Silver Mines. This 179 00:09:59,100 --> 00:10:01,410 Sean Aylmer: is the Fear & Greed Daily Interview. Join us every morning 180 00:10:01,410 --> 00:10:04,140 Sean Aylmer: for the full episode of Fear & Greed, Australia's most popular 181 00:10:04,140 --> 00:10:06,959 Sean Aylmer: business podcast. I'm Sean Aylmer. Enjoy your day.