AUSTRALIAN Volume 3 Issue 2
BUSINESS NETWORK
The Essential Resource for Australian Business
SCA
The only government-recognised strata industry body
BELLCOURT STRATA
A family business entering a new generation
ENTERING THE
STRATA SPHERE WWW.AUSBN.COM.AU
Relationships creating success Downer EDI Limited Triniti Business Campus, 39 Delhi Road, North Ryde NSW 2113 Phone: 1800 DOWNER (1800 369 637) 02 9468 9700 www.downergroup.com
MINING | Brookfield Multiplex
WELCOME EDITOR’S NOTE
AusBN returns with its annual strata-focused issue and this year the magazine features a host of prominent strata management companies across several states, all of whom have enjoyed considerable degrees of growth in their business. The strata industry has reached new heights in 2017 as Australia’s construction boom shows little sign of
Executive Team Editor Jacob Ambrose Willson Content Manager Michelle Madureira Content Director David Hunter
slowing, with a steady stream of residential buildings popping up across states, cities and suburbs across the nation. In tandem with this, community-style living
Creative Director Hugo Currie
is becoming increasingly prevalent, thus creating the perfect conditions for strata management firms to thrive.
ICT Director Stuart Clark
This notion is encapsulated by Ace Body Corporate Management, which enjoyed a 14% net property gain last year and is set to grow further thanks to its successful franchisee model. We speak to Ace’s founder and CEO Stephen Raff, before gaining an overarching perspective from Erik Adriaanse, chairman of Strata Community Australia – the industry’s only key national body. Elsewhere, we hone in on Western Australia’s strata sector, with spotlights on Kristy Ward’s energetic team at Prestige Strata Management and Scott Bellerby’s familyrun firm Bellcourt Strata, before zooming out to Tasmania and Tas Strata & Property Group. General manager Tim Barwick talks up the growth potential of the island and
Feature Writer Jack Kennedy Contributing Writers Ciro Figaro Lucinda Ower Managing Director Simon Curran
how Tas Strata delivers an above-and-beyond service to its clients. Joining our feature companies are two guest columns in the shape of strata lawyers Ciro Figaro and Lucinda Ower. The pair discuss several topical issues, with Figaro of Strata Title Lawyers stressing the importance of consolidating by-laws in schemes and Ower of Dormer Stanhope Lawyers considering the impact of Airbnb’s arrival into strata buildings. Beyond the strata focus, we also check in with the authorities running operations at two of Australia’s busiest port facilities - Pilbara Ports and the Port of Hastings in Victoria, along with SANAD Capital, the investment team behind Queensland’s newest adventure park. We hope that you enjoy this issue and encourage you to connect with us on email and Twitter. Thanks for reading!
Jacob Ambrose Willson Jacob Ambrose Willson, Editor, AusBN
AusBN is published by Anderson Murray Media: a diverse media and information services company focused on creating and distributing engaging content to business leaders across the globe. SYDNEY Level 13, 135 King Street, Sydney, 2000, Australia Tel: (02) 8973 7511 LONDON Fulham Green, 69-79 Fulham High Street, Main Reception, Bedford House, London SW6 3JW Tel: +44 (0) 207 148 5631
VISIT US ONLINE AT WWW.AUSBN.COM.AU
CONTENTS NEWS 8 Australian business news Our selection of the best business stories this month from across Australia
ASSOCIATIONS 12 Strata Community Australia Accreditation and education are key issues for the national body 18 Strata Community Australia WA A changing landscape for strata in Western Australia
COLUMNS 26 Ciro Figaro Strata lawyer recommends consolidation process for by-laws 30 Lucinda Ower Sydney-based lawyer considers the impact of Airbnb’s arrival into strata buildings 36 Mentoris Group Providing strategic advice to Australians and businesses alike
STRATA 44 Ace Body Corporate Management The number one Australian-owned strata management company 54 Hartleys Body Corporate Management Brisbane’s fastest emerging body management firm 64 Platinum Strata Community Management Fostering community spirit across Victoria’s strata buildings 76 Prestige Strata Management Young team aiming to revamp Western Australia’s dated strata industry 88 Bellcourt Strata A family business entering a new generation 96 Tas Strata & Property Group Tasmania’s premier strata management company
ACE BODY CORPORATE MANAGEMENT
PRESTIGE STRATA MANAGEMENT
TAS STRATA & PROPERTY GROUP
CONTENTS PORTS 102 Pilbara Ports Authority A unified management body for the Pilbara’s largest maritime trading posts 110 Port of Hastings Development Authority Developing a port in a prime location to access Victoria’s markets
FINANCE 122 Sanad Capital Bringing a world class adventure park to the Sunshine Coast
AUS RESOURCES 132 Stellar resources The best tin project listed on the ASX 144 Chrysos Corporation Assays at the speed of light 152 RUC Cementation Mining All the answers are underground for this mining contractor 170 Macphersons Resources Proving up a gold resource in Western Australia 182 Mount Burgess Mining Low cost entry to stable base metals in Botswana
APPOINTMENTS & EVENTS 192 Appointments Notable appointments in the Australian business industry from the past month 193 Events Our pick of the top business events happening across Australia in the months to come
STELLAR RESOURCES
CHRYSOS CORPORATION
MACPHERSONS RESOURCES
MOUNT BURGESS MINING
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NEWS | Brookfield Multiplex MINING
AUSTRALIAN BU
Our selection of the b this month from
Australian AustralianBusiness BusinessNetwork Network
USINESS NEWS
best business stories across Australia
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NEWS
Australian hotel g $1.18 billion Accor Australian hotels operator Mantra Group has agreed to be bought out by French firm Accor SA in a $1.18 billion deal which will create the biggest hotel group in Australia.
Renewable energy generates enough electricity to power 70% of Australia’s homes Australia’s first ever Renewable Energy Index has revealed that renewable
In the last decade, the renewables sector has gone from providing around 7%
Mantra confirmed in a statement to the ASX that Accor had offered a price of $3.96 in cash for each Mantra share, which were worth $3.88 in early trading on Thursday.
sources of energy produced enough electricity to power 70% of all households in the country.
of the national electricity supply to 17%. This figure incorporates demand from business and industry as well as households.
The large-scale merger deal will give the combined group about 50,000 rooms across the country, roughly 11% of
The 2016-2017 Benchmark Report was published by energy market analyst Green Energy Markets, who will now publish a monthly index so Australians can track the progress of the renewables industry.
The index also revealed there were 46 major renewable energy projects under construction at the end of 2016-17, which are estimated to employ 8,868 full-time people for one year.
Chinese visitor numbers to Australia set to triple by 2026 Australia is poised to welcome up to three times as many tourists from China over the next decade, according to a recent report released by the Australia China Business Council. The report showed that last year around one million Chinese tourists visited Australia, but that number
could rise to 3.3 million a year by 2026. The increased visitor numbers will be shaped by a rapidly growing Chinese middle class and recent legislative changes such as the open-skies agreement, which will allow for the arrival of more Chinese airlines into Australian airports.
End of the convey manufacturing in Australia’s automotive manufacturing industry is set to come to an end this month with the closure of Toyota’s factory in Altona Victoria, followed by General Motors’ Holden plant in Adelaide. Toyota’s imminent shutdown of its manufacturing facilities in Altona will render 2,500 workers redundant, while the
Australian Australian AfricanBusiness BusinessNetwork Network 11
group Mantra in r takeover deal Australia’s total hotel market, based on IBISWorld statistics. Operating under the brand name AccorHotels and under chief executive Sebastien Bazin, the company has followed an aggressive acquisition programme across several global regions, including Australia. Bazin said in a statement: “[The deal will] underpin our long-term growth in the AsiaPacific region.”
Amazon to arrive in Australian retail market for Christmas – Citi analysts Analysts at global banking group Citi have suggested that Amazon could launch
Retail analyst at Citi Brian Raymond confirmed that the company has set buying terms
in Australia within two months, in a blow to several existing major retailers in the saturated national retail market.
and first orders have been placed with suppliers in recent weeks.
The US retailing giant confirmed it would be arriving in Australia in April after purchasing a warehouse in Melbourne and appointing German executive Rocco Braeuniger as country manager for Australia.
yor belt for car Australia
closure of the Holden plant on October 20 will place 944 people out of work. These thousands of workers will join other former-automotive workers still searching for work after the closure of Ford’s Broadmeadows manufacturing plant in Victoria last October 2016.
In a further statement, Citi said it expects Amazon’s prices to be competitive at first, as it will not have a meaningful advantage in two of their three key pillars, range and delivery, which will evolve later over time.
OZ Minerals to begin construction of Australia’s largest undeveloped copper mine Adelaide-based OZ Minerals will start constructing the $916 million Carrapateena coppergold mine in Australia, the country’s largest undeveloped copper mine. The project, located in the far North of South Australia, will create ‘thousands’ of jobs during the construction
phase, which commences next month, and a full-time workforce of up to 550. Production from the mine is expected to begin in the fourth quarter of 2019, yielding an average of 65,000 tonnes of copper and 67,000 ounces of gold a year over a 20-year mine life.
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STRATA | Strata Community Australia
ERIK ADRIAANSE, STRATA COMMUNITY AUSTRALIA Jack Kennedy speaks to SCA chairman Erik Adriaanse
Australian Business Network
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STRATA | Strata Community Australia
Strata management and the strata industry as a whole is experiencing exponential growth as body corporate schemes crop up with almost every new residential and commercial development. Strata Community Australia (SCA) is the national organisation which represents the industry and works with government and companies to ensure it runs as smoothly as possible. Here AusBN feature writer Jack Kennedy speaks to SCA chairman Erik Adriaanse to get a rundown of the biggest challenges afflicting the industry and where it is planning to go next… Jack Kennedy: Can you outline the key
JK: How are you developing the
benefits or what you offer to companies
accreditation process for strata?
that take up SCA membership? EA: This has developed at a rapid pace, Erik Adriaanse:
with education courses being rolled out nationwide and internationally, with SCA (NZ)
• Education as the market continues to develop and presents new challenges.
recognised for also running three ground breaking courses across Auckland and
• Advocacy on macro issues that impact
Wellington. Partnering with RMIT University
on them such as the emergence of
in Australia has made the delivery of these
flammable cladding, short stay regulations
courses a great success in the early stages.
and the need for building code reform.
The certificate III and IV are now available and
• A competitive advantage in the
Diploma is coming shortly
marketplace being an accredited professional. • Networking opportunities to enhance their B2B relations.
JK: An important area of strata in Australia is a formal education qualification – what stage are you at there?
Australian Business Network
EA: This is now a legitimate pathway, thanks
JK: What are the current trends you are
to the introduction of tertiary qualifications.
seeing in the strata industry as a whole?
RMIT has been a destination for young professionals in this country for decades,
EA: The emphasis is increasingly going
and we’re confident the uptake we’re
towards customer service and relationship
seeing from industry professionals so far
management with skilled, technically well-
will soon translate to attracting first-time
qualified managers who can offload or refer
professionals as well.
to a supplier network. Communication and customer self-help is increasingly the norm.
We’ve also observed multiple member companies offering internship programmes
JK: How has the Grenfell Tower disaster in
in their local communities on the back of
the UK affected the industry and has the
these qualifications being rolled out so there
conversation around safety changed?
is a real grass roots feel about what this education overhaul is achieving.
EA: Yes, this is a ranging issue covering things like building code reform, responsibilities of those within the supply chain, import/
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STRATA | Strata Community Australia
export issues and product classifications. It
there is already a severe shortage of skilled
has taken the Grenfell disaster to wake up
managers. SCA is working hard to get more
Australian legislators but it feels as though
managers accredited.
progress will be widespread, with several summits to be held in the next six months
JK: With new types of modern buildings
with key federal figures in attendance.
being built how will the strata industry adapt?
We’re very concerned on the cost issue, given that many owners cannot afford to make
EA: Family friendly by-laws are a big focus
their buildings safe, meaning that these
considering the inclusions now being offered
dangerous materials will stay on buildings for
in apartment blocks. Dog parks, childcare
years.
centres, and green spaces invite families to be a part of strata communities, breaking
JK: How will increased urbanisation and
away from the owner-investor model that
development impact the strata industry?
has been so dominant in past years. The importance of energy efficiency has also
EA: The impact of this growth will translate
emerged as our cities become tightly packed
into greater demand for managers. As it is
with towering high rises.
Australian Business Network
JK: Where would you like to see
EA: SCA is working hard on standardised
government doing more in policy terms to
membership categories, education,
regulate the industry?
accreditation and professional standards to meet the demands of the public in a growing
EA: State governments making qualifications
sector.
mandatory in their regions would be the biggest step forward the industry could take.
Our brand is increasingly being seen as the
It would wipe out the small but damaging
brand that has well trained professionals that
cowboy element of the sector and ensure the
are getting the recognition of government,
majority of the market is upskilled, learning
regulators and the public.
new processes at a tertiary level. Beyond that, it would also solidify the job pathway
JK: What is your outlook for the strata
we’ve created and offer a new market for job
industry as a whole?
seekers. EA: I see blue skies as our standards and JK: What is the SCA’s strategy to progress
systems are improved and made user
the industry?
friendly.
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STRATA | Strata Community Australia WA
Strata Community
A changing landscape for strata management in Western Australia
talks to SCA WA president Scott Bellerby
a
Australian Business Network
Australia WA
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STRATA | Strata Community Australia WA
With the property sector in Western Australia beginning to show flickers of recovery which will lead to expected growth in strata management schemes, SCA WA director and Bellcourt Strata Management managing director Scott Bellerby is calling for tighter regulations for the industry and more professionalisation. In a Q&A session with AusBN feature writer Jack Kennedy, Bellerby delves into how education can be a key pillar of the overall industry and what the longer term impacts of the UK’s Grenfell Tower disaster could be… Jack Kennedy: How important are these SCA-led accreditation pathways for professionalising the industry in WA? Scott Bellerby: Very, very important. One of the good results we had this year was that we were able to convince government to
progress to become a strata manager, which
introduce a traineeship for strata managers.
is very important. SCA is on-track to do 28
There is now a traineeship available for strata
workshops this year in WA, and they are all
management companies for employees who
very well attended. We pride ourselves on
have been with them for less than two years,
what we have achieved when it comes to
for them to do their certificate for strata and
educating people in the industry.
community management. That’s a first across Australia.
JK: From an SCA WA perspective what is your opinion on key issues and state
Education is very important. All of our staff have to do the A100 if they want to
regulation?
Australian Business Network
SB: First off, our priority is to try and get
I would love to see us adopt the same
through the current legislative changes.
process that is being introduced in NSW,
We are working under an act that is a 1985
which is also being considered by Victoria and
act and things have changed a lot since
Queensland where, to be a strata manager,
then. We do have current legislation which
you have to have completed the certificate
is being considered and hopefully will go
for strata and community management, and
through parliament early next year. We
the principal of the business has to have
support those changes. The next step is
done the diploma in strata and community
to work on regulating and licensing the
management.
industry.
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STRATA | Strata Community Australia WA
SCA is looking to adopt a strata practise
materials that have been used. That should
standard, which I’m on the committee for and
hopefully whittle it down to below 100,
WA is the instigator of this. This is going to be
hopefully just a couple of dozen.
rolled out across Australia and is going to be a huge thing for the industry and will really
From there, there is going to be a few
stand SCA accredited strata managers apart
problems because once the names of those
from those companies that aren’t taking
buildings are released the insurers will look
things seriously.
to ensure that the panels are addressed and potentially withdraw insurance from the
JK: While the Grenfell disaster is affecting
building until the issues are addressed.
strata on a national level, what is the impact in WA?
The banks might not lend, so those homeowners are faced with a special levy
SB: The audits have analysed every building
that needs to be raised to remedy the
in WA, they’ve taken it from 6,000 buildings
situation, they won’t have access to finance
with suspect materials down to 513 buildings
to be able to fix the issue and therefore it
now. That’s into stage two and 513 buildings
needs to be considered by a government that
will now progress to stage three analysis,
we need to potentially look at offering a loan
which will require inspections and analysis of
facility so that the homeowners can remedy the issue.
Australian Business Network
JK: Is there not a question that the owners
wrapped up because the glass panels are
shouldn’t be paying because they didn’t
exploding onto the pedestrian footpath
install the cladding?
below.
SB: Current legislation in Australia will say
I’ve got a building on my own portfolio which
that any building that was built in the last six
has got issues with glass cladding imported
years, a strata company will be able to make
from China and although it’s got the stamp
a claim against the developer. But if its older
that it meets Australian standards, it doesn’t.
than six years it’s going to fall on the owners unfortunately. That’s where we are facing a
It’s a broader issue than the cladding and not
number of problems and how will we address just in Australia, it’s in New Zealand as well. this cladding issue.
Some of these buildings are getting sign off and they should never have been given an
Going forward we need to look at tighter
occupancy certificate. There is a whole range
regulations with regards to how do these
of issues that need to be explored and tighter
buildings get signed off. It’s not just a
regulations for new buildings.
cladding issue, we have issues with glazing panels exploding. There is a building in Perth’s CBD which is going to have to be
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COLUMNS | Ciro Figaro
WHY NON-CONSOLIDATING SCHEME COULD LEAD TO
Strata
Australian Business Network
THE BY-LAWS OF A STRATA TITLE O SERIOUS LEGAL CONSEQUENCES
a lawyer recommends consolidation process for all by-laws | By Ciro Figaro
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COLUMNS | Ciro Figaro
The new legislative frame regulating the by-laws for Strata Title property has established that: • The by-laws for the Scheme must be reviewed by November 30 2017 (The Strata Scheme Management Act 2015 (s 134)) • An owners corporation is required to keep a consolidated up to date copy of the by-laws for the strata scheme (section 141(3) of the Act) • Any change of by-law must be lodged in the form of a consolidated version (clause 24 Strata Schemes Development Regulation 2016)
Previously, under the 2010 Regulation, only certain by-laws, being ‘exclusive use by-laws’, needed to be attached to the contract. Now conveyancers and solicitors must be able to easily retrieve all of the by-laws in force in the scheme without going through old repealed by-laws, amendments of amendments and mistaken lodgements (a costly exercise for a purchaser). Schedule 1 of the 2017 Regulation expressly
Why then is it so important to consolidate
lists ‘all by-laws’ as one of the documents
the by-laws in force in the scheme?
prescribed under section 52A(2)(a) of the Conveyancing Act and as such it constitutes
If the compulsory by-laws review or a
a new element of the so called ‘Vendor
change of a by-law have not triggered the
Disclosure Legislation’.
consolidation, the answer is still that a consolidation should be done as soon and
Effectively this means that if a vendor fails
practical as possible.
to attach ‘all of the by-laws in force in the scheme’ before the contract is signed by the
Under the new Conveyancing (Sale of Land)
purchaser, under clauses 16(1)(a) and 17(1)
Regulation 2017, which commenced on
(a) of Part 5 of the Regulation, the purchaser
September 1 2017, a contract for the sale of
is entitled to rescind the contract at any
land must contain a copy of any by-laws in
time within 14 days after the making of the
force for the strata scheme.
contract (exchange) unless the contract has been completed.
Australian Business Network
The lack of disclosing ‘all of the by-laws’ in force in the scheme is in itself sufficient to give rise to this statutory right of rescission (that is not necessary for the purchaser to establish that they were disadvantaged).
CIRO FIGARO Ciro Figaro is a lawyer at Strata Title
The Standard Contract for the Sale and
Lawyers in Sydney. A solicitor admitted
Purchase of Land 2017 Edition will not
to the Supreme Court of NSW, Ciro
protect or prevent a situation, for instance,
specialises in strata disputes, building
where a purchaser that relies on the Model
defects, drafting of by-laws, breach of by-
By-Laws in the Scheme attached to the
laws, tortious claims and property related
contract and allowing pets upon approval of
matters.
the owners corporation, discovers afterwards that a special by-law on the title prevents the
Ciro graduated with honours in 2009 and
keeping of pets on the lot.
has practiced in different areas of law in Italy and Australia such as criminal law,
Will then the owners corporation be
contract law, and conveyancing. With more
responsible for not having administered the
than 4 years’ experience in the Strata
scheme in compliance with the legislation?
Industry in NSW, ACT and Victoria, Ciro is passionate about law and with Strata
It is probably not worth risking: a
Title Lawyers, he has been exposed to
consolidation is a simple exercise that a
parliamentary consultation in relation to
specialised law firm can properly undertake
strata reform and important ‘test cases’ in
in short time.
Victoria and NSW.
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COLUMNS | Lucinda Ower
CASTLES SHORT TERM R
Sydney-based lawyer cons
Australian Business Network
IN THE AIR: THE FUTURE OF RENTALS AND STRATA TITLE
siders the impact of Airbnb’s arrival into strata buildings | By Lucinda Ower
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COLUMNS | Lucinda Ower
The dramatic rise of Airbnb listings in Sydney in the last couple of years is an economic dream for some and a living nightmare for others. For owners, short term rentals can bring in occasional extra income, or be a lucrative full time rental strategy. In an economy of low wage growth and lower interest rates, renting out a home, flat or spare room online is a fast and easy way to improve a bottom line, or generate income from an investment property. For the neighbours of Airbnb properties, however, the revolving door of un-vetted tenants can be a source of extreme frustration.
v Owners Corporation SP 11825 the NSW Civil and Administrative Tribunal (NCAT) was asked by Ms Estens, an owner of one of five apartments in Sydney’s exclusive Woollahra, to consider the legality of a new by-law. Ms Estens, a school teacher and former rower for Australia, let out her basement unit during school holidays if she was travelling. According to reports she made $13,000 through her Airbnb listing over one year. However, an upstairs neighbour, according to the NCAT decision, complained that in October 2016 and February 2017 unknown persons were “using the washing machine in the shared laundry causing her some disruption of her peace and enjoyment” and “sitting on the deck outside [Ms Estens’ unit] relaxing with a beer and she felt uncomfortable as they were strangers apparently watching her.” A by-law forbidding
In the realm of strata law (which applies to
Airbnb leases was passed by the building’s
apartment buildings), Airbnb rentals are also
OC in March 2017.
shaping up to be a legal minefield for lawyers and owners alike, as the law struggles to
Ms Estens claimed that the OC had no power
keep up with the new and burgeoning share
to pass the by-law. The OC argued that it did,
economy. New strata laws that came into
as the relevant section stated that by-laws
effect only late last year may not be equipped
can be made “in relation to the management,
to deal with disputes about Airbnb leases
administration, control, use or enjoyment
between individual apartment owners and
of the lots or the common property and lots
the owners corporation (OC). No matter what
of a strata scheme.” It was put to NCAT that
view an owner might have on Airbnb, it is
continuous moving of luggage in and out
unclear what rights they might have to have
of Ms Estens’ apartment would cause more
Airbnb tenants, or keep them out.
wear and tear to common areas, and there were security and noise issues.
At the moment, there is just one case that considers the new strata laws and the ability
Ms Estens claimed that despite already
of an OC to prohibit Airbnb leases. In Estens
vetting her Airbnb tenants and having rules
Australian Business Network so as not to disrupt her neighbours, following the complaints she forbade pets and limited the tenants’ use of the common washing machines. She noted that she had always returned to an impeccably clean apartment following each Airbnb lease. In all, Ms Estens contended that she was a “conscientious and careful landlord”, and took steps to ensure the “peace, comfort and privacy of the [other] unitholders was protected.” NCAT sided with Ms Estens, but not because she was a considerate Airbnb host. It instead found that the by-law power the OC relied upon was subject to an exception, which did
LUCINDA OWER
not permit “unjust”, “harsh, unconscionable
Lucinda Ower is a lawyer at Dormer
or oppressive” by-laws or allow them to
Stanhope Lawyers, Sydney. Dormer
“prohibit or restrict the devolution of a lot or
Stanhope is a Sydney-based boutique
a transfer, lease … or other dealing in relation
commercial and tax litigation firm
to a lot.”
led by former top-tier Australian and international law firm partners, senior
The Estens case is useful, but it doesn’t
associates and advisors. DS provides
give a full picture of where the rights of an
commercial and strategic advice and
individual owner begin and end. In property
services to resolve disputes in Australian
law, a man’s home is his castle, but that idea
and international jurisdictions across a
dates from a period well before the invention
broad spectrum of matters. DS prides
of reinforced concrete and apartment
itself on having big firm expertise and
living. Ignoring the fact that a flat in a strata
small firm relationships.
scheme forms part of a community doesn’t seem sensible, and with a premium often placed upon the ambience, exclusivity and
pass by-laws gives the power to regulate in
privacy of a block, it also doesn’t seem wise
relation to the enjoyment of “the common
economically.
property and the lots.” What is unclear is to what extent the right to quiet enjoyment
This is reflected somewhat in the legislation.
prevails over an individual’s right to deal
As noted above, the section that lets OCs
with their property. Given that we have an
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COLUMNS | Lucinda Ower
apartment boom and a strong property
Takeaways:
market this issue is not likely to go away soon.
For landlords:
Frustratingly, the Estens decision doesn’t
1.
help us on this front. While both sides argued
Planning laws, you should be able to put a
about the overall impact of Airbnb tenants,
strata lot you own on Airbnb.
Subject to Local Environmental
the decision was made on other grounds. 2.
If hosting, or investing to host, consider
NCAT also did not have to consider excessive
the size and feel of the apartment block, the
or late-night noise, property damage, or
frequency of Airbnb tenant change over, the
overcrowding (another trend in the Sydney
type of tenants you are marketing to. While
property market), which might have tipped
Estens suggests that the building’s OC can’t
the balance.
pass a by-law prohibiting Airbnb rentals, this is not settled. It would be wise in any event to
We will simply have to wait for court and
minimise the impact the Airbnb tenants have
tribunal decisions for clarity on this.
on other neighbours. 3.
Before purchasing an apartment for
Australian Business Network
Airbnb rentals, engage a lawyer to review the relevant by-laws and any other regulations. For neighbours: 1.
any relevant legislation and seek independent legal or other advice if they feel that they may be affected. Dormer Stanhope disclaims any liability (including for negligence) of any person in respect of anything done or not done, and the consequences thereof, by any such person who relies in whole or in part upon the information contained in this article
Estens and the legislation suggests that
an OC does not have the power to limit what an owner does with their property. No case
1. Strata Schemes (Management) Act 2015 (NSW) and Strata Schemes (Development) Act 2015 (NSW) 2.
Estens v Owners Corporation SP 11825 [2017] NSWCATCD 52
3.
https://www.domain.com.au/news/nsw-tribunaloverturns-bylaw-banning-woman-from-renting-herapartment-on-airbnb-20170930-gyq2kc/
4.
Ibid.
5.
Estens above at 2, at [1].
There may be a right to sue the
6.
Strata Schemes (Management) Act 2015 (NSW) S. 136.
tenants in nuisance in some circumstances,
7.
Estens above at 2, at [16]-[17].
8.
Estens above at 2, at [11]
9.
Ibid.
has been run or considered whether this will be upheld in a context of severe disruption to others’ enjoyment of their property. 2.
and a lawyer should be contacted to explore this option.
10. Estens above at 2, at [14]. 11. Estens above at 2, at [24].
Disclaimer: the information contained in this article is general in nature and cannot be relied upon as legal advice. Persons should obtain their own copy of
12. Strata Schemes (Management) Act 2015 (NSW) S. 136. 13. Strata Schemes (Management) Act 2015 (NSW) S. 139.
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BUSINESS | Mentoris Group
Australian Business Network
MENTORIS G R O U P
Providing strategic advice to Australians and businesses alike
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BUSINESS | Mentoris Group
“I was sitting in the Wintergarden Shopping mall in Brisbane having completed my third consecutive 20-hour day and another 80+ hour week, commonplace during that five-year period. With ever increasing work expectations and shortening timelines despite reducing team numbers and a move to a more cumbersome delivery process, the potential for any suitable level of job satisfaction were gone. It was this moment I decided something needed to change and Mentoris Group was created.� These are the words of Paul Farmer, the founder of Mentoris Group, a Queenslandbased outfit which provides strategic advice to individuals from many walks of life along with businesses across several sectors. Farmer offers his clients a range of services that can enable them to realise their full potential, whether this be in their personal or professional lives, and for businesses he can provide a clear strategy to unlock growth. Farmer has over 20 years of experience working in a range of professional roles across the globe, from the very bottom to the top of the corporate ladder, and also maintains a keen interest in sport having played rugby and cricket from an early age.
Australian Business Network It is these varied and often-interlinking professional and sporting experiences that Farmer attributes to his own successorientated mindset, which he wishes to share through Mentoris. Clients are entitled to a range of sessions suited to their needs through Mentoris, including one-on-one sessions, workshops, presentations, facilitations and phone/Skype check-ins. “Last month an infrastructure consulting company came to me as they were looking to include an additional partner in their leadership team,” says Farmer. Mentoris subsequently ran a workshop which clearly defined the purpose and direction of the organisation and the necessary next steps. These have been followed to date and the integration is going to plan. He also refers to a chance meeting with a senior financial planning executive on a flight to Sydney, whom he got chatting to about his business. By the end of the flight he had arranged a meeting with the executive to discuss a new direction for his business. Mentoris has also helped individuals to connect their professional lives with their personal wellbeing. “A senior executive was unclear of their career direction,” recalls Farmer.
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BUSINESS | Mentoris Group
“They had three options in front of them, all
Farmer also draws on his background in
with differing degrees of change associated
sport to help influence discussions with
with the decision.
clients under Mentoris, particularly from his experiences coaching rugby over the last 12
“We sat and talked through whether any
years.
of the opportunities allowed them to align with what they loved to do and would be a
“Through coaching I’ve developed the ability
stepping stone to the next opportunity.
to get the best out of teams. Being able to build those relationships and that rapport
“The executive made a decision and is now
with a team can then be applied to a business
working in Tokyo in an industry they are
environment.
passionate about and their family gets to experience it as well.”
“You can draw so many parallels between a
Australian Business Network
41
Images courtesy of Paul Lewin Photography
sporting field and a business environment.
personal wellbeing, while also providing
I use a lot of sporting analogies in what I
individuals a strong basis to deliver on their
do, because most people have the ability to
true potential.
resonate with sport.� On this note, Farmer intends to increase Zooming out beyond Mentoris, Farmer sees
Mentoris’ exposure to these winds of change
the Australian business landscape gradually
and is currently working with Get Real
changing towards increased awareness of
Conscious Impact Charity to emphasise the
mental health in the workplace.
importance of acknowledging mental health in the corporate world.
This trend is a welcome one, allowing for an open and non-judgemental business environment which is more conducive to
CONTACT
http://mentorisgroup.com.au strategy@mentorisgroup.com.au
Tailored
Engineering
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Connecting Western Australia
Yagan Square, Perth City Link - Commercial Sector
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EC No. 007256
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STRATA | Ace Body Corporate Management
ACE BOD
CORPORAT
MANAGEME
A leading Australian-owned strata management com
DY
ATE
ENT
mpany
Australian Business Network
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STRATA | Ace Body Corporate Management
Ace Body Corporate Management is a household name in the Victorian strata industry and is aiming to be the same Australia wide. The company has an enormous national presence, offering its strata management services to over 60,000 lots in properties across every major state and territory in Australia (besides ACT) and is continuing to grow its portfolio across the board. At the centre of this ongoing growth story is CEO Stephen Raff, who founded Ace in 1995 and has since developed the company from a part time hobby to one of the largest Australianowned strata management firms. Over 20 years later and he remains as enthusiastic as ever about delivering the best possible service to Ace’s vast array of clients in strata communities across the nation.
the company has expanded its presence in
“Over the last 12 months our organic growth
numerous regions in NSW, Queensland and
has been around 15% across Australia and
Victoria.
we have lost very few properties in this time,” Raff reveals. “Overall, our net gain was about
Ace’s growth has been particularly rapid in
14%, which is pretty high for the industry.”
Victoria, where it has built up its presence in areas such as Mildura, Bendigo, Ballarat,
Breaking down Ace’s business into regional
Geelong, Gippsland and other regions.
markets reveals the impressive level of consistency in the company’s growth across
The majority of this growth is organic and
several states and territories. For instance,
driven by Ace’s hugely successful business model – franchising.
Australian Business Network
Franchising
within the area that they are marketing in
The franchising model allows Ace’s
and can service the area until the cows come
employees to take up ownership in the
home.”
business, which brings a whole host of benefits to the company and its clients alike,
Therefore, Ace’s recent growth in regional
not least the fact that franchisees essentially
markets can be largely attributed to the
emulate the role of a localised shareholder.
additions of new franchisees to local branches over the last year.
“It’s been very evident that franchising really appeals to regional areas, and I think that’s
Ace now has 120 franchised areas nationally,
because they are geographically located
with many bricks and mortar offices on display throughout the country.
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STRATA | Ace Body Corporate Management
Australian Business Network
The firm has picked up three new franchisees
Operating in the same region as a client
for the greater Sydney area, adding to the
means franchisees can be on-call to handle
two already active prior to this year. In
any queries or problems which may arise.
addition, two more franchisees joined Ace in Queensland, while Victoria’s regional ranks
Furthermore, as active members of the
have swelled to seven after four more were
community and owners of the business, Ace’s
introduced during the last 12 months.
franchisees are passionate about maintaining the highest level of service, resulting in a very
“The interesting thing is that people often comment saying you must have saturated
satisfied client base.
the market by now, and my response is that
Embracing technology
it will be a long time before we saturate the
Clearly Ace puts a significant degree of
market because with the franchising model,
emphasis on delivering a five-star service,
our service is quite unbeatable,” asserts Raff.
which is achieved through its staff attempting to uphold high standards of communication
Raff believes that the geographical proximity
with their clients.
of Ace’s franchisees to their clients is a crucial contributing factor to the company’s
However, the business cannot remain at
unbeatable service.
the forefront of this burgeoning industry
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STRATA | Ace Body Corporate Management
Resource GlobalNetwork Network 51 Australian Business
with these traditional skills alone and is fully
their clients dual access to portals containing
aware of the modernising currents flowing
documents such as AGM minutes, progress
through the strata sector at present.
sheets, insurance details and financials.
Subsequently, over the last few years Ace
Another innovation being trialled by Ace
has embraced a number of new technologies
involves an app used by tradespeople to
which are accelerating its services and
upload live data, including photographs,
creating a more efficient and inclusive
condition reports and other crucial
experience for its clients.
information from the building.
“One of the things we’re starting to do is
The app is then accessed by strata managers
move into video conferencing and tele-
at the other end for them to put work orders
conferencing for AGMs, so clients can now
through.
tune into AGMs from home or at work and vote on ordinary or special resolutions
“A lot of technology is being adopted by
online.”
Ace and we hope that in the next two years we will be leading Australia in terms of
The company has also invested in specialised
technology in the strata industry,” says a
strata software which allows franchisees and
confident Raff.
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STRATA | Ace Body Corporate Management
Strata Community Australia
“We have an enormous affiliation with government now and they’ve officially
Outside of Ace, Raff continues to hold a
recognised SCA as being the key body for the
presence in Strata Community Australia
industry.”
(SCA) on a national and state level, and is approaching 20 years on the SCA Victorian
However, one of the biggest challenges for
State Board.
all strata management companies remains to be keeping up with the rapidly occurring
His ongoing participation in SCA gives him
changes in legislation relating to strata title
great satisfaction in the knowledge that he
properties from state to state.
is part of a united industry moving forward together.
In recent years, Queensland and NSW have gone through a phase of significant legislative
“I get a huge buzz out of being able to
changes in the strata industry, while WA and
contribute to a fantastic body that liaises
Victoria are also currently in the process of a
with government to change legislation,
wide-scale review of its strata laws.
to meet the needs of our owners living in communities in strata schemes across
Therefore, to keep its staff and clients
Australia.
firmly in the loop, Ace publishes a monthly newsletter which provides updates to staff
Australian Business Network “The government is now going to institute audits across Australia, but we are encouraging our owner’s corporations to conduct audits to see what type of cladding they have got.” Other safety concerns hanging over the industry include cases of exploding glass and faulty electrical cables imported from abroad and installed into properties across the nation. These safety issues are one of the biggest challenges facing the wider strata community today. Returning to Ace, the company is looking to maintain its current growth levels through continued recruitment of talented franchisees and is aiming to start acquiring small businesses within franchisee areas, and clients of various state and national
in order to boost organic growth through
legislative changes.
referrals.
In addition, Ace gives a more generic update
With the ongoing property development
on new and proposed strata laws at its bi-
boom across Australia, Raff believes the
annual conference.
opportunity to grow the franchisee business
Safety in strata
is almost unlimited over the next 15 years.
After the fire at the Lacrosse building in
Having risen to the upper echelons of the
Melbourne’s Docklands in 2014 and the
national strata industry under Raff, Ace is
recent tragic fire at Grenfell Tower in London,
perfectly positioned to continue its growth
Raff has noted heightened concerns over
story in the coming years.
safety within shared properties across the country and in the strata industry. “There has been an enormous amount of pressure put on government in terms of finding out what type of cladding has been put on buildings.
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STRATA | Hartley’s Body Corporate Management
Australian Business Network
Hartley’s Body Corporate Management Brisbane’s fastest emerging body management firm
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STRATA | Hartley’s Body Corporate Management
The story of Hartley’s Body Corporate Management began circa 2004 when Simon Barnard and Wendy Kerridge, two stalwarts of the Australian retail industry, began searching for new challenges and a new home in Brisbane. They soon happened upon a townhouse under construction and deemed it a perfect property to settle down in. Not long after moving in, they received an unexpected bill in the mail and after liaising with their solicitor, she advised this was their body corporate levy. So began their journey into strata living and eventually into body corporate management. Within a few months of living at the scheme the onsite managers suggested that Barnard stand for the chairperson role of the body corporate, given his corporate background, to which he was successfully appointed. After a few meetings it became clear that several lot owners were unhappy with the overall service provided by the body corporate manager. After a heated committee meeting, Barnard vented and exclaimed “I reckon I could do a better job than these guys!” To his surprise the committee agreed. They resolved to put a motion to all owners at the AGM to not reappoint the current
Australian Business Network manager and take up Barnard on his offer. “This is when it hit home what I had offered,” Barnard exclaims. “At a café in Fortitude Valley, Wendy and I came up with a business name, logo and a large to-do list starting with registering the business. That is where Hartley’s was born.” Needless to say, the pair were successful in being appointed as the new body corporate managers, in doing so securing their first client of 47 townhouses. “From these humble beginnings, through word of mouth and a couple of small portfolio acquisitions we have grown to be one of Brisbane’s leading strata companies today. Oh, and yes we still manage the townhouses,” he quips.
Core business Today, Hartley’s has matured into a mediumsized strata firm with a team of 30 working across four offices including nine body corporate managers, ranging in experience from five to 20 years. The team manage over 1,000 buildings and over 10,000 lots primarily in Brisbane from the Sunshine Coast to the Gold Coast, including Bribie Island. “Our core business is small schemes averaging 10 lots, but we also have a portfolio of boutique prestige large schemes. Asset management or maintenance would be the core service called upon most.
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STRATA | Hartley’s Body Corporate Management
Australian Business Network “I always say that with body corporate administration the clients take for given that we will never forget to arrange their AGM or levy notice just like we take as a given a hotel room will contain a bed. “The touch point of maintenance completed to a high standard builds solid long-lasting relationships with clients and protects their valuable asset.” Other services offered by Hartley’s include financial management, insurance and a bespoke service aimed at property developers, who are always keen to gain an insight into the actualities of community living prior to construction of the building. Using its highly polished and localised knowledge, Hartley’s is able to assist developers with the establishment of small, medium or high-density strata buildings, including multi-layered schemes.
Staff training Over the years, Barnard has maintained the approach that training should be taken extremely seriously across the business, believing that a well-trained and knowledgeable workforce is the foundation of excellent customer service. “We invest in a team member who along with managing a portfolio also monitors the accreditation and education of all our team, from informal supplier training to the more formal tertiary degrees.
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STRATA | Hartley’s Body Corporate Management
Simon Barnard, principal and founder
“We promote our business as the accredited strata team,” he adds. Hartley’s has three brand promises that the team aspires towards and is trained to deliver, and they are; firstly being responsive and providing accurate and timely administration, second giving a personal, accessible client service and finally upholding professional and ethical standards.
Resource GlobalNetwork Network 61 Australian Business
Wendy Kerridge, principal & operations director
In short, the company aims to always be available to take a call from a client and respond as soon as possible.
New technologies In recent years, Hartley’s has positioned itself at the vanguard of technological innovation in the strata industry, implementing a number of new features including the multilayered security measure Cyberoam, which ensures data protection 24/7.
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STRATA | Hartley’s Body Corporate Management
Practical and time-saving electronic voting
electronic voting company for our clients and
systems have also been put in place, but
built the software ourselves via key partners
Hartley’s biggest technological adaptation so
in that space,” reveals Barnard.
far has been the creation of a smartphone app, which gives clients instant access to
As Barnard enters his sixth year as president
a number of crucial daily functions, from
of SCA Queensland and completes his fourth
reporting maintenance issues to paying
year on the industry body’s national board,
levies.
he hopes that the government will soon recognise an SCA-accredited strata manager
“We are leaders in innovative technologies to
as being the legal definition in the body
help our clients interact and keep informed.
corporate and community management act.
From our monthly newsletter (which our clients receive and is also shared with all the
“A well trained and experienced manager
industry via social media) to our Hartley’s app
leads to positive client interactions as they
we aim to stay ahead.
can deliver informed and factual advice,” he maintains.
“When we found a gap in relation to electronic voting that no one was filing we
The future of strata
didn’t just accept it, we started our own
Finally, with strata and community style living
Australian Business Network
forecasted to soon become the norm and
“A body corporate still uses, (and we are the
eventually overtake single dwelling homes
custodian of over a 1,000 of these), rubber
in Queensland and across the nation, the
corporate seals that the corporations act
importance of having responsive, efficient
stopped using 28 years ago.”
and dynamic body corporates is set to dramatically increase.
Nonetheless, over the last decade Hartley’s has developed into a state leader in terms of
At this critical tipping point, particularly in
providing the most knowledgeable staff who
Queensland where there is archaic 20-years
are accessible and responsive to clients.
old legislation that needs updating to facilitate the expected increase in strata
“We are an employer of choice and our
ownership, Barnard has a message for state
clients acknowledge the experience and
government.
professionalism of our team which has resulted in continual growth via word of
“These [legislative] changes now sit ready for
mouth through our team and existing
drafting with the new successful government
clients.”
and we urge the new government to make it a priority in the first 100 days.
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STRATA | Platinum Strata Community Management
Australian Business Network
65
PLATINUM STRATA COMMUNITY MANAGEMENT
Fostering community spirit across Victoria’s strata building By Platinum Strata’s company secretary Viduni Fernando
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STRATA | Platinum Strata Community Management
From the beginning the home of Platinum Strata Community Management has been at the contemporary Docklands precinct, which is the product of an ongoing urban renewal project by the state government of Victoria to extend the area of the Melbourne CBD. Seeing the potential vacuum of experience in managing complex buildings in regional Victoria, Platinum made a strategic move to open its first regional office in Geelong in October 2017, with the intention of serving the neighbouring regional cities as well gearing itself to offer and share its specialised strata management services.
By pioneering a culture of technology and innovation, we have become one of the first to adopt a state-of-the-art strata management system called Property IQ, a product that was eventuated as a result of the joint venture between Macquarie Group and CoreLogic. The success of Platinum belongs to the professionally qualified and trained team, which I joined after graduating as a lawyer (LL.B) from the University of London, AQA Law from London School of Law and LPC from the University of Westminster. After graduating I wanted to explore an initial legal career in property law. Observing the potential to make a positive contribution to the strata management industry, I accepted the challenge of becoming company secretary, which involves not only managing the corporate affairs aspects, but also
Australian Business Network
efficiencies. Luckily I have the support
Platinum visions and values
of a great team of young and energetic
Through the motto, ‘Platinum take things
strata management professionals here at
personally’, I have tried to introduce a
Platinum.
whole new culture with the hope that this
improving the process and compliance
contagious vision will spread throughout the Initially, we focused mainly on managing
industry.
more complex high-rise developments where Platinum believed it had the much
Everyone at Platinum recognises the fact they
needed proficiency and credentials. But we
are dealing with the homes of their clients
soon realised that even the small to mid-size
or the retirement nest eggs of investors
developments could also equally benefit
whose hearts are attached to that property.
from the principles and practices that we
Unless you are prepared to take it personally
adopted with larger buildings.
in terms of looking after the needs of your customers, no satisfactory relationship can
Hence, with our unique strata management
ever be built.
model, everyone can now benefit from the delivery of a professional and personal
At Platinum, managers with diverse
service through the efficient use of modern
professional backgrounds recognise the
technology.
importance of continuous professional development by constantly endeavouring to update their professional standards through accreditation by the peak body governing
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STRATA | Platinum Bellcourt Strata Strata Community Management
Australian Business Network
the industry, Strata Community Australia,
should expressly include community building
and through an internal training programme
principles and practices within the OC by
conducted with collaboration from various
allowing them to organise and fund groups,
industry professionals.
clubs and activities involving lot owners and
Fostering community spirit
other occupants of the building. It takes more than bricks and mortar to add
Platinum believes that strata management is
the beat to your development. It’s people,
not just about managing buildings but about
and how they interact that gives life to your
taking leadership in building communities
vision.
and building neighbourhoods and being empowered to create and enhance the right
Platinum believes that through a well-
community spirit, together with a sense of
planned and concerted effort, strata building
well-being among individuals.
communities could be a means of:
Platinum holds the view that to enhance
• Achieving social justice
the ‘liveability’ of buildings governed by
• Community well-being
owners corporations (OCs), the functions of
• Achieving a positive impact on otherwise
an OC (under the Owners Corporations Act)
disconnected individuals.
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STRATA | Platinum Strata Community Management
Australian Business Network
Seeing that OC laws are completely
and a management structure capable of
inadequate in recognising a role for an OC
driving the processes to manage various
to actively build a sense of community spirit
communal facilities for the purpose
within any strata scheme, Platinum is of
of recreational, educational and social
the view that by overhauling the legislative
activities.
framework with additional mandatory obligations, together with the allocation of
Platinum difference
funding for the purpose, we can expand the
Our value system is underpinned by not just
functions of an OC to include community
having in-depth knowledge about buildings
building.
but also about human relationships.
This may include:
Unless you have the opportunity to work
• Similar to a prescribe maintenance plan,
with complex high buildings right at pre-
to formulate a strategic community
construction stages of any project, through
building a five to 10-year plan
to developing strategies to build their image
• To develop community spirit and to
long after the completion, there is no chance
encourage interest groups, put in place a
of being able to empower developers to fulfil
seed funding mechanism
their multiple legal requirements.
• In a nutshell, a sense of community is one to be created and it demands governance
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STRATA | Platinum Strata Community Management
Australian Business Network
“When the initial owner (the developer) is in control of the majority of the owners corporation for a while, from the registration of the plan of subdivision, Platinum will protect the goodwill of the developer by working together long after the end of construction phase.� Viduni Fernando When the initial owner (the developer) is in control of the majority of the OC for a while, from the registration of the plan of subdivision, Platinum will protect the goodwill of the developer by working together long after the end of construction phase.
How Platinum maintains the knowledge and skills of our OC managers One of Platinum’s unique strengths is to have an in-house training programme partnering with industry professionals to undertake such programmes to provide information tailored to the needs of managers on changes to law and on systemic legal and practice issues through both traditional and innovative ways, including through web based information and library tools that allow managers access to advanced document management systems.
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FP
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STRATA | Prestige Strata Management
PRE STR MANA
Young team aim
Western Australia’s d
ESTIGE RATA AGEMENT
ming to revamp
dated strata industry
Australian Business Network
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STRATA | Prestige Strata Management
November 2017 marked the fourth birthday of Prestige Strata Management, a company still very much in the embryonic stages of its development. However, this hasn’t stopped it from making waves in Western Australia’s strata industry during its short existence. Prestige is indisputably modern in its approach, comprised of a young workforce determined to implement a series of fresh ideas and innovations, which are sorely needed in a state which still seems to be trailing behind others in the strata industry. The fact that WA still operates under the 1985 strata titles act is indicative of the state’s stunted industry growth, but with the enthusiastic Kristy Ward at the helm, Prestige is committed to propelling modernising currents throughout the sector.
Ward has been Prestige’s director for the duration of its existence and has 15 years’ experience in the property sector, having previously been with a company that dealt with strata on a national level. She was also elected to the board of Strata Community Australia (SCA) in 2012 for three years, adding another layer of expertise to her industry knowledge.
Australian Business Network
Fresh ideas
“We are definitely coming in to make some changes to the industry and give it a different look to what was happening prior,” declares Ward. “We are a substantially young company, not just in terms of how long we’ve been operating, but in terms of our staff, as we are millennials. There has been both positive and negative feedback on this aspect of the business, however we are happy with the team and where we are heading.” Ward believes that many companies within the industry in Perth are of a different generation and their businesses have been running smoothly for many years. While not short of experience, this generation is perhaps not as receptive to changing the business structure or implementing different technological approaches to strata management. However, Prestige’s assorted complement of fledgling industry specialists are passionate about incorporating new approaches and technologies, which will assist their clients and schemes in moving forward. Prestige aims to put the community back in to community-style living and achieves this through integrating the newest technologies into its services, and delivering them in a completely transparent manner. “Starting my own business in Perth, it was really just about creating a company which
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STRATA | Prestige Strata Management
Bow R
River
Australian Business Network
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STRATA | Prestige Strata Management
Resource GlobalNetwork Network 83 Australian Business
allowed owners and strata schemes to have
Other features include email levy notices
a bit more transparency, which comes from
and SMS notification services (if selected by
having the technology available to clients for
the user). Although these electronic services
them to see what is happening within the
might seem the norm for most businesses
scheme and various decisions being made.�
in 2017, with WA still under the 1985 strata titles act which doesn’t cover email, most
One of the key strata-specific technologies
companies still post their documents.
which has been adopted by Prestige is the STRATA Master, a vital piece of software
This persistence with paper document
created by Australian computer solutions
distribution seems somewhat archaic
firm Rockend.
to Prestige, with Ward believing the industry should implement the electronic
This piece of kit allows customers 24/7
transmission act and use both in conjunction.
access to an online portal where owners and councils can view live reports, levy notices
Nonetheless, Prestige is streets ahead of
and other important documents, thereby
many in the industry having already shifted
increasing the transparency of all dealings
to encouraging schemes/owners to switch to
with Prestige.
electronic communication.
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STRATA | Prestige Strata Management
Australian Business Network
Services
For example, one feature being rolled out
Prestige offers everything that a strata
across some of its properties is embedded
company needs to do in relation to upholding
network systems and the on-selling
the strata titles act, whether this be from an
of electricity, particularly in its various
administrative perspective, or from financial
residential and apartment blocks.
and legal standpoints. But, Ward stresses that this is not a service However, it is the individualised approach
that every building on Prestige’s portfolio
and transparency which underpins all of the
will want or need, and so the particular
services offered that sets the company aside
needs of the client in question will always be
from other strata management firms across
considered and ultimately shape what type of
the state.
service is provided to them.
“We generally tailor-make our contracts to
Prestige’s portfolio is predominantly
individual buildings so it is up to the client
comprised of larger buildings, with the
and us to negotiate and set the roles of how
company following a general rule to not take
they want their contract/services set forth,”
anything under 25 lots, although it does have
says Ward.
a smaller portfolio of ‘baby properties’, which are only for existing clients.
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STRATA | Prestige Strata Management
Industry recognition All of Prestige’s hard work and innovations in WA’s strata industry were vindicated last year The portfolio incorporates several different
when it was crowned strata management
types of properties including mixed-use,
company of the year by SCA, an award which
commercial, residential and retail, and
put the company on the map on a national
currently stretches from the city of Mandurah
level. An impressive feat for such a young
in the South of the state to Scarborough, one
strata management business.
of Perth’s Northern suburbs. “From our company’s perspective that was “We don’t have a particularly large portfolio,
one target we really wanted to achieve.
unlike other strata management companies
Mostly being the new kids on the block
with larger portfolios, which means their
and having a young management team, we
clients potentially don’t have as much time
wanted to show the industry how great we
with them,” says Ward.
were and inspire others to see what can be achieved with change.”
“We might charge a bit extra but our customers are getting a different and more
Ward and Prestige wish to continue in much
personalised service.”
the same the vein for the rest of 2017 and
Australian Business Network
the current focus is on using technology to implement sustainability features in schemes. The company is looking at upgrading certain
that many people have avoided talking
schemes to run off LEDs, as well as utilising
about in WA, but with more people moving
solar panels and water optimisation features
to apartment living and having to live ‘on top
such as rainwater collecting tanks.
of each other’, it forces more camaraderie in general dealings and meetings.
The technology is readily available and already increasing the efficiency of strata
“I suppose in other states strata is very
building management for Prestige.
common, but for some reason in WA it’s only been recently that I have noticed the industry
Prestige aims to continue with its
and its external perception developing, so
sustainability and efficiency drive across the
maybe people still haven’t come around to
portfolio over the next 12 months, but will
the realities of community living.
also focus on greater education amongst its owners about community living.
“Therefore, educating our owners about community living is definitely one of our
“I think community living has been something
priorities moving forward.”
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STRATA | Bellcourt Strata
BELLCOUR STRATA
A family business entering a new gen
RT TA
neration
Australian Business Network
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STRATA | Bellcourt Strata
When Joan Bellerby and Jacky Courtney started Bellcourt Strata back in 1996 the business was operating out of a tiny office in West Perth as a local partnership servicing the strata community. In the last eight years Bellcourt has seen exponential growth, exclusively through word of mouth, to become one of the leading strata management companies in Western Australia. Joan’s son Scott Bellerby joined the company nearly four years ago and has continued the values of education and customer service that his mother had instilled in the business which has cemented Bellcourt as a wellrespected and qualified player in the regional strata industry. Bellerby brings a diversified property background to the company with a CV spanning commercial property valuation, working as a real estate agent and as a property developer for McDonald’s Australia.
strata managers looking after 180 buildings,
The CEO says that provides a more rounded
comprising 4,500 lots Bellcourt deserves its
approach to strata management going
place at the very top and Bellerby is ensuring
beyond the day-to-day servicing of the
they stay there through educating his staff to
residents to understanding the accounting,
the highest levels across all areas of property
insurance and development factors that are
management and promoting customer
intertwined with strata management.
service as the biggest value of the company.
On a state basis, Bellerby puts Bellcourt
“When it came to education Joan and Jacky
Strata in the top-five. With eight full-time
were sticklers for adhering to the Strata Act.
Australian Business Network
All the staff had to have the Act on their
“All the staff have done the SCA 100 course
desk and understand it at depth,” notes Mr
and by next year we should have up to
Bellerby.
eight staff that are SCA accredited strata community managers.
“I have taken that to the next level. I am really trying to diversify the training of my
“Accreditation is fundamental and to achieve
staff in areas such as facilities management,
that I believe education is key. If your staff
asset management and workplace health
are consistently learning then there is that
and safety.
feeling of accomplishment and satisfaction, so we work very closely with the team on that.”
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STRATA | Bellcourt Strata For Bellerby, this type of approach to
“The way we work is through a really high
managing his staff and ensuring they feel
level of communication in the office. We are
valued and have opportunities to learn in
across each other’s portfolios, so if someone
the job brings direct benefits to the way
is struggling anyone can step in. That also
they operate in the field. He says that in a
benefits our customers in that if a client
customer service industry having happy and
phones up and their strata manager isn’t
fulfilled staff members translates directly to
there, we can all assist that client.”
the level of service and the way customers are dealt with.
Communication is the key to good strata management. Both verbally, on the phone
“When you have staff who say they enjoy
and written via email, Bellerby insists that
coming into the office that’s a great thing as
his staff accommodate any complaint when
a manager and it reflects through to their
the telephone rings and keep open lines of
service to the clients.”
communication with clients through email conversations.
Bellcourt’s portfolio is made up of a mix of large commercial buildings, mixed-use,
One skill that is crucial for any strata
retail and residential units located all the
manager is versatility. Managing different
way from Margaret River in South WA all the
types of buildings with all sorts of characters
way up to Broome on the Northern coast of
and personalities within them throws up new
WA. Each type of building presents its own
challenges every day. Bellerby recognises
challenges, but particularly the large units are
the variety of issues that can arise and
very complex and require a broader property
ensures his staff are prepared to handle
understanding.
anything. From residential enquiries at over55s homes, building-specific requirements
To this end, Bellerby trains his staff in the
at medical centres to payroll challenges at
different subjects surrounding strata such
large commercial buildings, Bellcourt’s strata
as facilities management and insurance
managers have to able to deal with any issue
highlighting a question of how can an
at a moment’s notice.
employee work in claims without being trained in insurance?
“One of the roles of a strata manager which isn’t appreciated and understood is that we
“You don’t train every single staff member in
have a very diverse skillset. Each day you are
each of those facets, but if you can train the
doing something different and there can be a
whole team to work together and they’ve all
lot of job satisfaction from that,” Mr Bellerby
got the collective knowledge then the whole
says.
office benefits,” Mr Bellerby notes. Bellerby has identified that his customer base
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STRATA | Bellcourt Strata
Providing high-value, high-quality cleaning services across Western Australia • Commercial cleaning • Carpet shampoo • Strip & sealing • Tile & grout cleaning • Washroom services • Window cleaning • Car park sweeping • High pressure cleaning • Strata cleaning
interproservices.com.au | 1800 838 064 demographics is changing and has laid out
communication is very important. You
plans to service the needs of the fluid market.
need to be able to communicate at a high
A lot of strata comes from the younger
verbal level with your clients and that is very
generation buying or renting first homes, so
important to us going forward.”
Bellcourt has developed its own IT platform with mobile communication to service that
As Bellerby builds on the growth the
market. However, a rising section of the
company has seen over the last eight
strata market is in over-55s downsizing out
years he is aiming to target working with
of family homes and Bellerby understands
developers to implement strata schemes at
the older customer base wants more human
the ground floor. Armed with his experience
contact and proper customer service with
in the commercial property industry,
less apps and software.
Bellerby has the mindset of a developer and understands the process of planning a new
“The aging population want to be able to
building.
phone you up and ask you a question and all my staff have to take a call from a client if
Now the focus is on specialising Bellcourt
they are at their desks.
to work closely with developers to set up new schemes particularly when it comes to
“I think working with your staff on verbal
management and budgets. A recent example,
Australian Business Network
the Waterbank project by Lendlease,
communities within schemes because with
demonstrated Bellcourt’s skills by working
the changes in legislation we are going to see,
on the budget side to identify potential
bigger schemes will be built in Perth.
costs and implement special measures to accommodate commercial tenants with
“When you’ve got bigger schemes, you’ll have
specific by-laws.
a lot more people living there and a lot more personalities across those schemes. We have
As Perth’s property sector continues to
to become a lot more open with how we deal
recover Bellerby sees this side of the
with our clients.
business increasing in quantity and revenue. In addition, the CEO wants the company to
“We need to start specialising in community
be a market-leader as the industry evolves,
engagement and community management
placing more importance on client-servicing
and creating a more harmonious place for
requirements.
people to live. If we can bring value to the schemes then that could really differentiate
“The industry needs to evolve and it hasn’t. I see the next level that we need to take the industry to is on client-servicing requirement. But, you need the engagement and to create
ourselves from the competition.”
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STRATA | Tas Strata & Property Group
TA
Australian Business Network
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AS STRATA
Tasmania’s premier strata management company
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STRATA | Tas Strata & Property Group
The strata industry in Tasmania is somewhat rudimentary compared to the fully established, sprawling strata sectors across major cities in Australia’s mainland, such as Sydney and particularly Queensland – where strata was first conceptualised. It is largely unsurprising that the sector is small by comparison when considering the glaring demographic differences, however strata is growing in Tasmania. Buildings are springing up across the island at a rapid rate, particularly in the capital city Hobart, as population figures steadily increase throughout the state. Consequently, more people are moving into shared dwelling properties, and the need for high quality strata management services is intensifying. Enter Tas Strata & Property Group.
Tas Strata has existed in its current form for around four years, coinciding with the time that current general manager Tim Barwick joined the company, arriving from a real estate background. With around 20 years’ experience in the property business, Barwick was asked to take the company forward after the GM position became available. Since then he has gone about building a youthful and enthusiastic team which aims to deliver vital services to the growing strata industry in the state. “Prior to my appointment, I was told that Tasmania was a growing market and there was only a few strata managers in the North and South of the state,” explains Barwick. “But, buildings and new complexes are going up all the time so there was a clear gap in the market. It’s definitely still a growing market and things are progressing here very well.”
Portfolio According to Barwick, as of September last year there were about 8,800 strata properties in Tasmania, while this number is likely to have further increased over the past year.
Australian Business Network “We believe a lot of those are unmanaged
However, for a good strata manager
stratas or people that are not even aware
appropriate communication extends beyond
they are in a strata complex, and so either
traditional working hours, and this notion is
the strata is inactive or it’s not managed.”
exemplified by Barwick and his team being on-call 24 hours a day.
Therefore, there is a huge amount of potential business to be gained just through
“My staff and I give that after-hours service.
educating owners about the nature of their
If there is an emergency or just a general
shared living abodes, and in the last year
enquiry, we are happy to answer anybody’s
Tas Strata has been working on enlarging
questions at any time and I don’t believe
its reputation and illustrating just how
they get that same type of service from other
its services can benefit those in strata
managers in the state.
properties. “We have a good mix of owner-occupiers The company is continuing to build
versus investors and they are all given the
its portfolio, which currently contains
same professional treatment.
numerous properties ranging from smaller plans of three lots to the largest plans which
“All queries are followed up in a prompt
have up to 80 lots within a single shared
and timely fashion, so whether they are a
building.
customer in a big block or one in a smaller block, they are all given an exceptionally
“We would like to think that we are in the top one or two in the state for managing
friendly service from our staff.”
properties,” Barwick exclaims. “We thrive
Regulations
on giving exceptional customer service and
Tasmania is still currently using the Strata
good follow up with our clients and have
Titles Act 1998, meaning the island is a little
found that communication is the key, as is
bit out of date with regards to regulation
to most businesses.”
when compared to other mainland states,
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STRATA | Tas Strata & Property Group which is a challenge in itself for Tas Strata.
continue reminding clients of existing state regulations or strata plan by-laws which may
But, one of the biggest issues which has
prevent them from short term leasing their
emerged in recent times, not just in Tasmania
strata property.
but across the national strata sector, is the arrival of Airbnb and the implications of
For Barwick, these sorts of challenges
short-term leasing within strata properties.
necessitate having an exemplary knowledge of all existing legislation, and that means
“Here in Hobart we are finding that in some
making reference to the Strata Titles Act on a
of the complexes that we manage owners
regular basis and being in close contact with
want to try and rent their units out short
the governing body of the Land Titles Office.
term, and they come face-to-face with bylaws of the strata plan and or local council
“However, being a strata manager is more
requirements which may regulate certain
than just having sound regulatory knowledge,
things which they can and can’t do.”
you need to know a little bit about everything,” he explains. “You’re probably not
As part of the growing ‘sharing economy’,
an expert in one area, but you know a little
Airbnb is a classic example of disruptive
bit about everything, whether it’s finance,
innovation in the hospitality and property
banking, budgets and more.”
industries, but for Tas the priority is to
Australian Business Network
Referrals
“We get enquiries every couple of weeks from developers who are looking to conceptualise
Over the last 12-18 months, Tas Strata has
and build a new block of units, and they are
had increasing amounts of contact with
coming to us seeking information and advice
developers and property construction firms
as to how to achieve that.
looking to build strata complexes in Hobart and the surrounding suburbs.
“We are growing steadily and for me it’s a matter of keeping your existing customers
Consequently, the business has identified
happy and also trying to add to that customer
this growing trend and has begun to offer its
base every year.
various services to developers prior to the construction of a prospective strata property.
“You’ve got to keep up with demand but also make sure that your existing customers also
This early implementation of a strata scheme
get the same level of service as they used to
is a great boon to developers who are keen
and are not missing out as you grow.”
to get ahead of the track with regards to fully understanding and executing strata schemes.
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PORTS | Pilbara Ports Authority
PILBARA PORT
A unified management body for the Pi
Australian Business Network
TS AUTHORITY
ilbara’s largest maritime trading posts
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PORTS | Pilbara Ports Authority
On July 1 2014 Port Hedland Port Authority merged with Dampier Port Authority to create Pilbara Ports Authority (PPA), a unified body for the two large-scale ports. PPA has since incorporated the Port of Ashburton into its operations on the way to becoming the premier port management authority in the Pilbara region of WA. Although barren and thinly populated, the Pilbara plays a huge role in the national economy owing to its vast mineral resources, which have necessitated the proliferation of several large-scale ports along the coastline. Now under PPA these ports enjoy the benefit of operating under one management team. AusBN speaks to CEO Roger Johnston about the progress made by PPA in the last three years. “Dampier and Port Hedland are two of the
669Mt of exported goods, a growth of 6% on
world’s largest bulk export ports,” says
the 2015/16 figure.
Johnston. “Port Hedland is probably the only bulk mega-port in the world. Last year we put
During the 2016/17 period, the port at
through 501 million tonnes (Mt) through Port
Dampier saw 172Mt of exports pass through
Hedland alone.”
its facilities.
This record annual throughput at Port
Although much less than Port Hedland’s
Hedland represented a 9% rise on the
overall export tonnage, the figures at
previous year and contributed to an overall
Dampier bear comparison to other major
Australian Business Network
Australian seaports such as Newcastle and
Growth drivers
Gladstone.
PPA’s enormous throughput figures over the past year reveals exactly how significant its
Even the noticeably smaller Port of
contribution is to the national economy, but
Ashburton is set to take on greater
what were the main drivers of export growth
importance as LNG exports ramp up over
across the ports?
the next few years, marking a greater contribution to the estimated $80 billion
The majority of exports came from the
worth of trade (8% of Australia’s total GDP)
resources sector, where ports were boosted
being generated through PPA.
by a year of increased iron ore production.
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PORTS | Pilbara Ports Authority
“Overall the key volume driver has been iron
“We are seeing a massive demand for export
ore. We have increased our iron ore exports
capacity on lithium. From first talking to the
by about 40Mt on the previous year up to a
miners back in February/March, the first
total of 495Mt.”
shipment of lithium took place in April and reached one million tonnes in early August,
However, other crucial growth drivers came
and it continues to grow very quickly.”
in the shape of lifting LNG exports, along with commodities such as manganese and
Other areas of export growth include copper
the energy metal lithium, as the global EV
concentrate, ammonium nitrate, salt and
revolution begins to crank up a gear.
more recently live cattle exports, which are all contributing towards record estimated
Australian Business Network Hedland alone, and a large chunk of the remaining figure enters via Dampier too. This import business is also likely to grow in the coming years as more fuel is needed to support increased levels of transportation as various mining and exploration facilities continue to ramp up across the region.
Technology and innovation Turning to the ports themselves, in recent years PPA has had to adopt a number of technical innovations across its port facilities in order to maintain the highest possible standards of safety and efficiency. This has particularly been the case at Port Hedland, owing to a number of challenging idiosyncrasies in the design and nature of the port. For example, due to the port’s total tidal rise and fall distance of 7 metres, PPA has designed specialised mechanisms which plan the maximum draft distance required on certain vessels when the tide is at different throughput figures for this coming year and
heights.
the following 12 months. “We’ve put in live tidal monitors up and “This financial year (2017/18) we are
down the channel which monitor the actual
expecting to put out about 700Mt and in
conditions of the tide and the wind and
2018/19 we think this will further increase to
then feed live into our Dynamic Under Keel
about 740Mt,” says Johnston.
Clearance system.
It is also important to note the import side
“Through this, we’ve been able to increase
of the business, whereby around 60% of the
under keel clearances by 71 centimetres.
Pilbara’s imported fuel passes through Port
That might not sound like a lot, but when
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PORTS | Pilbara Ports Authority you’re talking about a ship that’s over 300 metres long and 50 metres wide, that means you can put close on 10,000 tonnes more on the ship.” PPA is constantly looking to build on these types of innovations and is busy undertaking $230 million worth of capital works at Port Hedland, which will go towards further improving safety and access along the port’s 22 nautical mile long unidirectional channel. Upholding best practise safety procedures and leading innovation in new safety measures is extremely important for PPA, as it operates in a traditionally hazardous industry, yet its own exemplary safety record belies this notion. “It’s taken many years to get our safety processes to be world’s best practise. At the moment, we have a zero lost time injury safety record which is quite remarkable and you will struggle to find that anywhere else in the industry.”
PPA in the community Moving away from the operational side of the business, another striking aspect of PPA’s overarching disposition is its wide-scale commitment to the hardy local communities across the vast expanses of the Pilbara, a region which Johnston calls ‘the biggest shire in the world’. PPA offers substantial local employment opportunities and doesn’t support the fly-in fly-out method, which it sees as working to the detriment of the local community.
Australian Business Network The authority also ensures that it provides sufficient support to local schools, arts and music events and national celebration days all-year round, which is crucial to the communities as there is little else in the way of recreational activities across the region. “In this reporting year $295,000 was provided to charities, not-for-profit and community groups in the Pilbara, which may not sound like much but the total population in the region is only about 60,000 people.” Looking to the future, PPA is set to welcome three new greenfield ports to its ranks - Anketell, Balla Balla and Cape Preston East, and is hoping to secure binding state agreements for the latter two in the very near future. “Balla Balla is going to be about a 50Mt a year transhipment port, and Cape Preston East about a 20Mt a year port,” Johnston reveals. “Between the two being planned for delivery in the next probably three years, that will contribute another 70Mt to our overall throughput, adding an additional 10% to our current volumes.” As export volumes continue to rise at its existing ports and are set to be bolstered three new facilities, the growth story at PPA is almost guaranteed to continue into the next decade.
Imagery courtesy of Pilbara Port Authority
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PORT of H
PORTS | Port of Hastings Development Authority
D E V E L O P M E N
Developing a port in a prime loca
Australian Business Network
HASTINGS T
A U T H O R I T Y
ation to access Victoria’s markets
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PORTS | Port of Hastings Development Authority
Blessed with deep water channels to accommodate some of the largest vessels in the world, in close proximity to one of Australia’s biggest markets in Victoria and comfortably handling major throughputs of integral materials in construction and energy, the Port of Hastings is undoubtedly one of the country’s most strategically critical ports. AusBN speaks to the Port of Hastings Development Authority’s (PoHDA) CEO Malcolm Geier to discuss how a long term vision for development at the site can increase capacity for new customers and shore up the region’s energy supply. The port’s operations are built on three main trading areas; imports of refined fuels, exports of oil and gas and imports and exports of steel products. Major blue-chip partners have facilities located at the Port of Hastings including international players, such as BlueScope Steel and Esso, in the oil and gas industry. However, as Geier proclaims, the port’s biggest strength is its location. Firstly, being just 70km Southeast of the Melbourne CBD and adjacent to Melbourne’s Southeast suburbs and commercial areas allows easy access to regional markets with strong demand. Secondly adjacent to Western Port
Australian Business Network
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PORTS | Port of Hastings Development Authority
Australian Business Network Bay, there is 3,500 hectares of land that is zoned for port-related uses. This huge extra land capacity enables PoHDA to attract a market of large projects that want to locate in Southeast Australia, and combined with the deep-water channels for large ship access, makes it an ideal location for PoHDA to expand and develop port operations. “Our mandate is to develop the port for bulk trade, not just manage the port operations,” Geier explains, pointing out that day-today management of the port was recently brought back under the state umbrella. “We’ve got a longer term focus which is aligned better with the objectives of our customers that are here for the long term. “Having taken back port management we are aiming to effectively develop the port and take a longer term view in particular with relation to investments that underpin growth at the port.” In recent times the port’s throughput numbers have fluctuated in terms of the number of tonnes coming in and out, although the quantity of vessels has largely remained constant throughout. Geier says FY15 saw 1.7 million tonnes (Mt), followed by 1.4Mt the following year and going back up to 1.7Mt last year. Meanwhile the number of vessels docking has levelled at around the 100 mark with a mix of more smaller ships and lower numbers of larger vessels.
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PORTS | Port of Hastings Development Authority
Resource GlobalNetwork Network 117 Australian Business
Now, PoHDA is tasked with developing and
The energy giant has echoed those thoughts
growing the port to see those numbers
by saying Crib Point, where the project will be
increase. Geier has laid out a clear strategy
located, is the best-placed location to serve
in how the authority can achieve the desired
Victoria by taking advantage of the existing
growth. The focus is going to be on building
pipeline grid and industrial port facility.
up the port’s operating infrastructure so it can target large projects that are floating
“It’s a very important project not only for
around the local area.
us but also for the state in terms of the energy security of the state and ensuring
The port has already been handed a strong
the economic prosperity of our part of the
opportunity as AGL announced Port of
world,” says Geier.
Hastings as its preferred site for a $250 million gas import terminal. Although a final
The potential AGL investment plays well
investment decision is pending, PoHDA says
on both an economic and political level as
the primary reasons for AGL selecting the
Victoria is a state which is crying out for
port is because of its available facilities, the
secure energy supply. The project could be
location and the ability to connect to the
a necessary solution to ease the potential
pipeline servicing Victoria’s gas distribution
gas supply shortage and bring increased
network.
competition to Australia’s East coast gas market.
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PORTS | Port of Hastings Development Authority
Alongside attracting major power and
we definitely put a very high value on the
energy projects, PoHDA will not lose sight
environment and safety standards at the
of the safety and environmental protection
port,” says Geier.
standards which have become the norm at the port.
Where there is a strong focus on
Geier explains that Western Port Bay is
the port from the
an area of high environmental value and
local community
popular with holiday makers and recreational
in regards to
users from Melbourne, meaning that
new projects
ensuring no environmental damage is one of
and potential
the main priorities.
environmental
“We’ve got a lo which is aligne objectives of ou are here for Malcolm
impacts, Geier “Protecting the environment is one of the
ensures there
largest concerns here. The port is located
are open lines of communication between
in an internationally significant wetland
PoHDA and the local people and endeavours
environment that is highly valued by the
to inform and consult local groups as the first
community and visitors for its natural
step in any port development project.
beauty and recreational uses, accordingly
Australian Business Network
As the strategy to develop port growth and
“Increasing trade in the short-to-medium
expansion speeds up, Geier has identified
term is a priority for us in terms of improving
three key challenges that need to be
the attractiveness of the port to customers
overcome;
onger term focus ed better with the ur customers that the long term.” m Geier, CEO
generally. While 3,500 hectares of land
ship volumes is zoned for port-related use, the port and cost
only owns one small parcel of port land
per vessel,
and we are presently looking to acquire
availability
additional port-owned land to facilitate port
of port-
development more directly.
owned land and access
“Our third challenge is that we have our
to dry-bulk
existing assets used less than a quarter of the
berths.
time so when they are mainstream trades like bulk liquid and gas, we have a huge amount
“What we are looking to do is facilitate
of unused capacity. However, for dry-bulk
opportunities, such as the AGL project, to
trades our infrastructure is lacking and we
bring down the average cost of bringing a
know we must improve our dry-bulk service
vessel into the port.
offering to grow that trade.”
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“It was a pleasure working with the RGN team. The entire process - from the initial interview to the layout and finished piece - was seamless and professional. ” - Orlee Wertheim Head of Business Development, Global Mining, Toronto Stock Exchange/ TSX Venture Exchange
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INVESTMENT | SANAD Capital
S
Bring
Australian Business Network
SANAD CAPITAL
ging a world class adventure park to the Sunshine Coast
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INVESTMENT | SANAD Capital
In terms of tourism Queensland’s Sunshine Coast is the place to be right now for any developer or investor. The beach-laden coastline recently recorded its highestever domestic visitor numbers, attracting 3,394,000 arrivals in 2016, a 15% rise on the year before. The research conducted by Tourism Research Australia added that as well as high numbers of visitors, they were also spending big with expenditure growing to $2.12 billion in 2016. SANAD Capital’s Bradley Sutherland and David Baird, both Queenslanders, saw no better location to launch the ground-breaking adventure park ACTVENTURE. The privately-owned development and investment company’s mission is to use its international relationships to bring capital into Australia to invest in a range of projects starting with ACTVENTURE. The $450 million investment will combine a major water park, hotel and conference facilities, retail, world class wave pool (or a ‘wave reservoir,’ as ACTVENTURE calls it), action sports and other activities. SANAD Capital says it will be the only destination in the world to bring that all under one roof.
Australian Business Network
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INVESTMENT | SANAD Capital
The adventure park is a thrill seeker’s idea
“It is a different development concept, but
of heaven. The project was developed in
it has been well thought out and combines
cooperation with world-leading international
activities that are growing in appeal in a
waterpark and active lifestyle designers.
family-friendly environment. ACTVENTURE
ACTVENTURE will incorporate a state-of-the-
is about bringing families together through
art waterpark with ‘never seen before’ rides.
active play and creating experiences that last
An adventure tower in the middle of the park
a lifetime,” says Baird.
will offer high-octane activities like bungee jumping, ziplining, freefalling and rock
Regarding Sutherland and Baird’s vision to
climbing. For the more active visitors, a huge
bring, not only a flagship tourist attraction
‘wave reservoir’ will cater for the Sunshine
to the Sunshine Coast, but also an economic
Coast’s large surfer population and there
benefit to the local area, ACTVENTURE is
will be an action sports centre for BMXing,
going to be a significant contributor.
skateboarding, parkour and more. SANAD Capital commissioned Urban In addition to the physical activities, the
Economics to produce a report on what that
complex will also offer 6,000m2 of retail, food
contribution will look like, and the results
and beverage space along the canals which
predicted that the project will provide over
flow through the site.
2,000 jobs during the construction stage, 830
Australian Business Network
permanent jobs once operational and a flow
“As the design of ACTVENTURE is unique
on effect of a further 640 full time jobs into
and we have plans to duplicate it around the
the economy. Urban Economics calculated
world, someone like Joe has a critical role in
that would boost the local economy by over
making sure all of the operations and flow of
$300 million during the construction and a
ACTVENTURE work seamlessly,” adds Baird.
further $30 million in each year of operation. SANAD Capital has also brought onboard SANAD Capital is working with best-
Geoff Chutter, an expert in water park design
in-class consultants when it comes to
and construction, who has collaborated
conceptualising, designing and constructing
with the likes of Disney, Universal Studios,
the major adventure park. Having originally
Legoland, Atlantis and Six Flags and he will
engaged a local university to complete the
bring an unrivalled level of expertise.
feasibility study on the location, SANAD Capital is now getting support from premier
Making sure the hotel and accommodation
US theme park company Thinkwell, in the
design and operation integrates with the
shape of Joe Zenas, who Baird says has
theme park is crucial in ACTVENTURE’s
helped create the best theme parks in the
offering. In that regard, SANAD Capital has
world.
also brought on board Fredrik Jonsson, who has 20 years’ experience in operations
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INVESTMENT | SANAD Capital
Resource GlobalNetwork Network 129 Australian Business
throughout Europe, Dubai, Africa, Asia and
organising the approvals are all key steps to
the US, to guide the accommodation aspect
realising the project,” explains Baird.
of the theme park. “Getting all of that done is a real milestone. Stage 1 of the project which encompasses
Now we are finalising those hurdles we
the waterpark, adventure tower and the Cove
are all looking forward to getting into the
retail precinct has an estimated construction
construction phase.”
cost of $150 million. Baird anticipates construction will begin by the end of 2017.
The SANAD COO is under no illusions that
He estimates around an 18-month build time
this project, although being fun and exciting,
and for ACTVENTURE to be commissioned
has to make economic sense.
and open for business in the summer of 2019.
“As a kid growing up I would have loved to of had a facility like this to go to. I would
“It takes a lot to get a project like this off
have been there all the time. It’s exciting to
the ground. A lot of the work is at the start
be working on this project, but it also has to
before you get to construction; organising all
make commercial sense - which based on our
the design and activities, engaging different
financial modelling it certainly does.”
consultants, organising the funding and
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MINING | Stellar Resources
STELLAR RES The best tin project listed on the ASX
Australian Business Network
SOURCES
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MINING | Stellar Resources
Stellar Resources managing director Peter Blight describes the company’s flagship Heemskirk tin project in Tasmania as the ‘best tin project listed on the ASX’. They are strong words but when you consider the combination of Heemskirk’s high grades and favourable location it is easy to see why Blight talks about it in such a way. Having listed in 2005, Stellar resources has since evolved from a mineral explorer to the project developer we see today. Now Blight is fully focused on how the company can take the Heemskirk project into production. With the price returning and a developing market for tin in its application for energy uses, it is an opportune time to be moving into production. Heemskirk’s two defining attributes are certainly its grade and location. The resource itself is 6.3mt at 1.1% tin, Blight highlights how high that is by comparing it to the rest of the ASX where there are no other projects with that grade which have been classified as a resource. It is a huge competitive advantage for the company and places the project not far behind world class tin projects such as Minsur’s San Rafael in Peru and MetalsX’s Renison Bell mine just 18km away from Heemskirk.
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Location can have a huge impact moving from mineral exploration to project development, predominantly on financing and capital requirements. Heemskirk is situated in Tasmania arguably one of the world’s premier mining districts, specifically for tin production. There are mines in the region with a history stretching back over a century and as a result there is a significant infrastructure network with ready access to all the necessary service to construct a mine. “The services, transport, processing infrastructure and all the skills you need are already in the area and there is a wellestablished environmental performance regime and well-established mining practices,” Blight says. “Along with that we are very close to the mining town of Zeehan which has a good skill base of third-generation miners living there. Our location is a huge advantage compared to some more remote projects, particularly those in Africa where all the infrastructure has to be supported by the project.” Stellar’s development plan is to drill out the resource with over 9,000m of core drilling targeting a definitive feasibility study in the middle of 2018. The first stage of the drill programme is to upgrade enough of the resource from inferred to indicated in order to underpin a DFS. Once the resource is in place the company can push ahead with testing the environmental
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MINING | Stellar Resources
Australian Business Network
performance as well as the process plant
understanding the mineralisation system and
optimisation.
development opportunities at Heemskirk.
Heemskirk lends itself best to a capital
“The point we would make is that the tin
intensive underground mining scenario,
mineralising system at Renison has a lot
however Blight and the team have devised a
of similarities to Heemskirk. They are not
‘fast start’ approach which means they can be
exactly the same but we believe the same
underground, mining and learning about the
sort of mineralising processes are at work at
deposit with a smaller plant at less than half
our project as were at work generating the
the price of a full-scale ramp up.
Renison deposit,” notes Blight.
Renison
Heemskirk has not been mined before and
The project’s proximity to one of the world’s
therefore there is the undeveloped potential
major tin mines at Renison is a great boon
of Stellar having another Renison on its
for Stellar Resources. Renison is the oldest
hands. The Rension project has produced
and largest tin mine in Australia, having
23mt at 1.4% tin since 1968 with current
operated for 50 years with at least another
reserves of 4mt at 1.39% tin and totals nearly
15 in front of it. The management team at
40% of Australia’s known tin resources.
Stellar are utilising Renison to make gains in
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MINING | Stellar Resources
Resource GlobalNetwork Network 139 Australian Business
However, the giant project started with a 10-
“We keep a close eye on what they are doing
year mine life in the 1960s and it has seen
and apply those lessons to shortcut our
ongoing expansion to be a major producer
learning experience.”
even since. That is a model Blight is hoping to replicate at Heemskirk once the company
In the same way as Renison, which did
has a true grasp of the geology. MetalsX
not show its true size from the beginning,
has broken ground recently in coming to
Heemskirk has great potential for upside in
conclusions on the geology at Renison
exploration as it progresses. The deepest drill
and Blight is looking at ways to apply that
hole is only 500m from the surface and the
knowledge to Heemskirk.
mineralising source rocks are estimated to be at least 1-1.2km from the surface so there
“Clearly understanding the influence of
is a big area to explore further. The Renison
the geological structure on the distribution
model suggests there will be continuous
of mineralisation is important. Some of
mineralisation the deeper it is drilled and
the processes they are using in terms of
Blight hopes there will be significant upside
recovering tin concentrate are similar to ours,
for the resource.
our process flowsheets are very similar and some of the modifications they have made in
“The interesting thing for us is that the size
their process are going to be important for us
of the deposit at the moment is moderate
as well.
but if you look at Renison they started with something similar and ended up building a
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MINING | Stellar Resources
very large resource over time – you can see
end use for tin with consumption at around
the potential for us,” compares Blight.
28,000t p/a in a 360,000t market and has been growing strongly in China,” Blight
The wider market for tin is changing. While
explains.
it has had applications in energy storage for some time, as the energy storage market
“The development of the use of tin in lead
develops so too will the global demand levels
acid batteries had been partly environmental
for tin.
to replace cadmium and other lead alloy elements. I think battery makers are finding
Rapidly changing technologies coupled with
that tin has other properties as well in
strong market drivers such as increased
terms of improving the charge carrying
communications, more renewable energy
characteristics in lead acid batteries. At some
and reduced carbon emissions will lead a
point in the future we may see more of a role
strong market for tin in the coming decade.
for tin in lithium-ion batteries as well.
“[Tin] is involved in the energy sector with
“It’s a very favourable metal for the energy
lead acid batteries. It is the fourth biggest
sector and we will see it used more and
Australian Business Network
more. The applications in energy use are
quicker and there is less investment tied up
quite varied and that is one of tin’s strengths,
in development.
that there are characteristics that give it an opportunity in the energy market.�
There is substantially less capital at risk and thanks to the staged approach the
However, with the drilling programme
production risk is also reduced. Once
underway, making sure the company delivers
production has been ramped up and
a DFS midway through next year is taking
established Stellar will push the project into
the front seat. Once that phase is completed,
the next phase.
Stellar will be seeking to secure financing and move into construction. Blight anticipates
“Once we have established the underground
that by the middle of 2019 the Heemskirk
mine and completed a lot more drilling we
mine could begin production.
will have an opportunity to upgrade the resource further, which could underpin an
With the fast start approach less upfront development capital is required before mining has started so therefore the entry is
expansion of the mine.
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MINING SERVICES | Chrysos Corporation
CHRYSOS CORPORATION Assays at the speed of light
Australian Business Network
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MINING SERVICES | Chrysos Corporation
Miners have been using the fire assay technique to determine how much gold they have in their ore for several thousand years. People have tried various methods to automate the process, improve it, speed it up and bring the cost down but there has been no quantum leap in advancing the process, until now. Chrysos Corporation’s new Chrysostm PhotonAssay Technology could be the assaying process the industry has been crying out for and and has the potential to redefine mineral calculation. “Assays at the speed of light,” reads the tag line on the company’s website, which is one of the major differentiators for the new technology. CEO Dirk Treasure tells RGN that the Chrysostm PhotonAssay Technology is going to disrupt the gold mining industry, based on four primary attributes; it’s considerably faster than traditional fire assays, it’s non-destructive, it takes a larger sample size and it’s clean technology. The company was launched in 2016 and has been supported by RFC Ambrian, which has assisted in capital raising, corporate structuring and management services. Treasure says this relationship has been pivotal in getting the technology off the ground.
Australian Business Network The technology itself, specifically aimed at gold projects, uses high energy X-rays applied directly to the sample to ‘excite’ the gold atoms within a rock which give off a characteristic signature that can be detected to calculate metal grade. In terms of the speed of this process, the Chrysostm PhotonAssay Technology can turnaround the results of a sample analysis in just two minutes, compare that to the current fastest analysis for fire assays of six hours and you begin to understand the impact the technology could have. “The main driver behind the speed is about improving operations of a process plant,” explains Treasure. “For a major gold project you use reagents like cyanide and you can change the rate of flow in the plant depending on analysis. If you understood at each moment in time what the gold concentration is then you can improve the recovery that comes out of the plant.” Treasure is aiming this technology at large and mid-tier gold projects for which a potential 1% improvement in recoveries, as a direct result of improved sample analysis, could lead to substantially increased profits. “It’s massive. An improvement in recovery isn’t an improvement in cashflow it’s a direct improvement in profit because none of the other costs of your plant change but you get more product at the end.”
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MINING SERVICES | Chrysos Corporation
So just how significant would the
hazardous materials and creates no waste.
improvement be for a major gold project?
Treasure says that is a stance the mining
Well Treasure estimates, “If you have an
industry has adopted over recent years
improvement of 1% recovery that could
where companies are far more conscious of
increase your profit by a huge amount, as
the health and environmental impact their
much as 10-20% in some projects.”
operations have.
As well as speed and efficiency, the Chrysostm
Finally, the technology involves very little
PhotonAssay Technology is chemistry-free
sample preparation. It is fully penetrative
and non-destructive – any sample that is
and will confidently identify the level for each
analysed will not be affected by the process.
target mineral within a solid rock, slurry,
This allows retention of any processed
conventional sample or even solution.
samples leading to better quality control in the analysis and enabling re-processing of
For fire assays, which typically take a
samples where necessary.
50g sample, a miner has to ensure each sample is homogenous to provide credible
Fire assays also employ lead in the process
results – which can be costly. The Chrysostm
which requires blood checks for employees
PhotonAssay Technology takes samples of
to regulate contamination levels by law.
500g and requires little to no preparation.
Meanwhile, Chrysostm PhotonAssay uses no
Australian Business Network
James Tickner, CTO
149
Dirk Treasure, CEO
Product delivery
has been tested on a small scale but
Chrysos is currently well underway with the
Treasure wants to see it in full scale to give
construction of its first full scale Chrysostm
the company ammunition when it hits the
PhotonAssay Max unit in a manufacturing
market.
facility in Beijing. The unit, due to be delivered back to Perth in December, will be
Following testing, Chrysos will get the
capable of processing 650,000 samples per
PhotonAssay technology accredited by
year, with a throughput rate of 80 samples
mining industry standards, first under NATA
per hour.
as a lab technique to assure all the processes, then get JORC acceptance which will bring
Australian drilling company AusDrill is
it up to the mining industry standard for
going to take the first unit when it comes to
resource analysis.
Australia and Treasure says the company has been a crucial partner for Chrysos across
Treasure expects that once the first unit is
development, R&D and marketing.
delivered from Beijing, the company can begin to bring in potential clients to show
Once that unit is fully up and running it
them the technology and demonstrate the
will undergo a rigorous validation and
tangible results Chrysostm PhotonAssay can
test programme to confirm its accuracy in
offer. The marketing and sales campaign will
comparison with fire assays. The technology
be fully ramped up from October this year.
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MINING SERVICES | Chrysos Corporation
The next year or two will prove to be
is to deploy these units onto major gold
absolutely critical for Chrysos as it launches
mining projects. A company with a large
the PhotonAssay technology. Moving from
gold project which can get a small amount
the theoretical idea of improving assaying
of recovery improvement through having a
techniques to seeing the technology fully
better technology can add significantly to the
operational in resource projects will be a
bottom line according to Treasure.
major step towards PhotonAssay becoming an industry-standard process for gold mining.
“Our real target is getting top-tier and mid-tier companies to install units. To do
“Getting the first unit up and running will be
that these companies probably need to be
a real watershed moment for the company.
running 80,000 samples a year through their
Once we have it in Perth we can show
existing labs.
clients the technology and run their samples through the units for free, show them the
Whether that is on-site or in a local
better analysis you get with our unit over
centralised lab, we would be bringing in the
existing technologies and show them the
Chrysos technology at the same cost or lower
improvements with faster turnarounds and a
than their existing fire assay costs.”
non-destructive technique,” Treasure says. Although the technology can be applied to While Chrysos will initially be deploying units
nearly half of the periodic table, Chrysos has
into assay labs in gold hubs, the real focus
targeted gold projects because currently
Resource GlobalNetwork Network 151 Australian Business
Our real target is getting top-tier and midtier companies to install units. To do that these companies probably need to be running 80,000 samples a year through their existing labs. there isn’t a competitive technology doing the
business model around the current climate.
same thing in the market. Treasure says that
The Chrysostm PhotonAssay Technology
while a lot of base metals would see benefits
will be available on a lease model, with no
of PhotonAssay it is nowhere near what a
upfront costs to clients. The technology
miner would get on a gold sample.
is installed on site for free and the client only pays per sample they put through the
Chrysos is also aiming to expand the type of
unit. Treasure calls it a ‘no-risk’ option for
projects its targeting which could have gold
potential clients.
mineralisation, “The next step is to identify where you can justify an installation on the
“The mining industry is notoriously slow at
gold side but you’d get an additional benefit
accepting new technology or innovation.
of having different elemental analysis.
We are making it as easy as possible for a
Chrysos has a near term focus on expanding
company to do that without taking on risk
into silver, copper and zinc”
and that is a key part of our business model.
A business model for modern mining
“It’s one thing to tell a mining company you need to spend $5-10 million for this
The commodity price downturn forced
technology, it’s another to say put this
miners of all size to re-evaluate their
technology in and pay us per sample and
operations.
it will cost you nothing apart from your analysis costs – that will be a big driver for
During the darkest times companies
getting these on site.”
concentrate on efficiencies, cost savings and production improvements, however
With the first unit under construction
as the industry is coming out of the
and due to be launched to the market in
downturn, Treasure says the focus returns
2018, we see a wholesale transformation
to technologies and improving the operation
of mineral sampling to the PhotonAssay
processes.
technique sooner than you think.
In that vein, Chrysos has designed its
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MINING SERVICES | RUC Cementation Mining
Australian Business Network
RUC Cementation Mining
All the answers are underground for this mining contractor
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MINING SERVICES | RUC Cementation Mining
The mining industry, particularly the companies servicing major miners, has finally navigated what appeared to be an extremely severe downturn in metal prices. Many mining services providers were forced to shut down operations and go to the banks to stay afloat. The sharp price downturn sent shockwaves through the sector and it took a combination of prudence, frugality and quality of deliverance to ensure a future beyond the downcycle. RUC Cementation Mining, led by managing director Barry Upton, did exactly that. Having guided the company through the worst times in mid-2014 the underground miner is now set to embark on a period of 35% growth year-on-year until 2020. RUC is a diversified Australian underground mining contractor which provides turnkey underground solutions including; raise drilling, shaft sinking, underground construction, mechanised mining, and specialist ground support. Upton says the company is a full service, full supply, selfperforming contractor. The private company has an extensive project portfolio which spans Australia and several countries across the Asia-Pacific region. RUC
Australian Business Network has established a reputation for excellence in the delivery of its work, ensuring complex projects are completed on time, within budget and taking responsibility to make sure the work is of the highest quality. However, this reputation did not come about overnight, RUC first came to Australia in 1991 and has spent the last 26 years building its profile.
Expansion beyond borders Upton joined the company in 2006 with the specific ambition to expand the company’s offering into mechanised mining. RUC continued to pick up contracts with a number of the big players in WA for a variety of projects and then in 2009 it entered an exclusive arrangement to sub-contract to Gammon Construction on a civil construction project in Hong Kong and that was the birth of the major international expansion of RUC Mining. It wasn’t long until operations had spread to Mongolia by 2010 and then by the end of that year RUC had been contracted to work for one of the world’s biggest mining companies Freeport McMoRan, through its subsidiary PT Freeport Indonesia at the Grasberg complex in Papua. Having picked up some raise boring work with Freeport, RUC then bid on the tender Freeport issued for a turnkey project to excavate, equip and construct the Grasberg block cave service shaft – playing a major role
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MINING SERVICES | RUC Cementation Mining in production at one of the world’s true super mines. “It was a fantastic project for us and we finished in December last year,” says Upton. “By that stage we had works in Mongolia, Hong Kong, Indonesia and the core business in Australia, which was still principally raise drilling and shaft sinking. “However, when we lost the Newmont Callie Shaft Expansion project contract due to the project cancellation, I appealed to our client in Indonesia for more work which ultimately led them to give us an opportunity in the permanent ground support area.” RUC’s involvement at Grasberg continued to grow and the company now operates with more than 650 employees on the books with Freeport. In the meantime, it was not all plain sailing. With many parts of the business going well, RUC’s order books were torn to shreds when the commodity price downturn began to bite. Upton says that at the lowest point in mid-2014 turnover fell to just $2.5 million one month. That was when the business reorganised, rebranded and began to lay the foundations for the prospering mining contractor we see today.
Weathering the storm “At the low point of our business in July 2014 we did a number of things; we reorganised our overheads and our business
Australian Business Network
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MINING SERVICES | RUC Cementation Mining structure, we established a head office in
Resources contracted RUC to undertake work
Perth and unfortunately there were a lot of
on the Karari underground operation at its
redundancies,” observes Upton.
Carosue Dam mine.
“We also decided to invest in a rebranding of
Those two projects as well as the continued
the business with the stated goal of making
work at Freeport really brought RUC back
the market more aware that our offering
from the precipice of mid-2014, culminating
wasn’t just a shaft sinking and raise drilling
in the recent announcement of winning
offer.”
a $200 million contract to carry out underground mining at Dacian Gold’s Mt
RUC was able to do that thanks to the
Morgans project in WA.
portfolio of work it had built up with Freeport - it had a strong story to tell and to sell. At
“On the grounds of those two projects
this time there were two major turning points
principally we then elevated ourselves to a
for the company.
$132 million turnover for FY2016. I suppose the fact is that the work we were doing at
Firstly it won a jumbo development contract
Karari became our advertising point and
with Panoramic Resources at its Savannah
innovation point of reference for all the other
mine and shortly after Saracen Mineral
work we have tried to win,” explains Upton.
Resource GlobalNetwork Network 159 Australian Business
“Then the Mt Morgans contract for Dacian is really the consolidation of all the efforts we have been putting in particularly on the Karari site, but more generally across the business in terms of rebranding, engaging innovation and improving our quality, safety and performance.” With Upton’s mantra that without anything on the order book you can’t survive, the Dacian contract will underpin the business for the next three years. Upton can now maintain capability and capacity and will continue to drive productivity through engaging with innovative solutions and new ideas on the Dacian contract.
“The work we were doing at Karari became our advertising point and innovation point of reference for all the other work we have tried to win.” Barry Upton, MD
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MINING SERVICES | RUC Cementation Mining His target is to achieve 35% year-on-year
back to their families each night and also so
growth for the next four years based on
the company can maintain its commitment to
the work that is either secured or on the
quality of service.
horizon, not accounting for any organic growth in that time. That trajectory would
Firstly, the physical risk of working with heavy
be a continuation of the increase in revenue
machinery and on hazardous underground
RUC has experienced since posting revenue
projects is taken with the utmost care. RUC
of $78 million in FY2014. The following year it
adopts the same rules and procedures if it
increased to $88 million, in FY2016 revenue
is working locally in WA or further afield in
hit $132 million with Upton expecting FY2017
Indonesia and Mongolia.
to reach $170 million. Then there is the commercial risk to the The Mt Morgans contract will play a crucial
business of taking on a new contract. RUC
role in achieving those numbers this year and
typically operates on a cost reimbursable
going forward. RUC mobilised on the project
basis internationally where the company is
rapidly, signing the letter of intent on April 10
incentivised for performance over and above
and by May 28 had achieved 95m advance.
Managing the risk The very nature of RUC Mining’s work comes with a number of risks that have to be managed to make sure all the employees go
“The most important aspe quality of the work we d
Australian Business Network
ect of our business is the do. Quality lasts forever.”
RUC Mining’s reputation is something the company has concentrated on building up throughout its existence and it transcends all areas of the business.
a base fee, but the entirety of the domestic
“The most important aspect of our business
work portfolio is on a full schedule of rates
is the quality of the work we do. Quality lasts
basis.
forever, we have a saying ‘the bitterness of low quality remains long after the sweetness
Working on a cost reimbursable basis
of low pricing has gone’,” Upton says.
however brings a reputational risk, Upton says you have to adopt the approach
“We don’t plan to be a low cost, low margin
and philosophy that it is still a fixed price
business we plan to be a high performance,
contract and to do that through superior
high, quality, reasonable margin business
performance.
and if we make a higher margin based on our performance that’s what it’s about because
RUC has proven its ability to provide the
then everybody wins. The Mt Morgans
highest quality service highlighted in the
contract was won more on what the client
fact it has never resorted to litigation or had
saw in the site visits they undertook rather
a case brought against it in the 25 years in
than on a price alone basis.”
Australia.
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MINING SERVICES | RUC Cementation Mining
Key innovator Upton has championed the cause of innovation at the projects RUC Mining is working on - he sees an opportunity to differentiate the company in the market - turning out to be transformative for the industry in some cases. RUC has invested heavily in digitising wholeof-mine and whole-of-fleet tracking for the Karari operations which gives the contractor full real-time visibility of all the underground assets and Upton says it is the first project in the world to do that in a 3D environment. “We pushed the limits in terms of engaging new technology. The whole Minetec proposition was done on our back, sometimes you don’t want to be first but in this case we are and we think that has created a step change in the operating environment,” asserts Upton. “As part of the Minetec proposition we are now at the point where we are doing task allocations directly to the plant item throughout the shift where the operators can log the task and we get instantaneous reporting. Overall that could be a 10-12% productivity gain. “We are very keen to engage technology. Innovation is an interesting word for it, because we are not necessarily inventing anything we are just finding new ways to apply technology for advancement.”
Australian Business Network
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Australian Business Network
Reliability is paramount Referring to Upton’s focus on quality over cost, the companies in RUC’s supply chain are a clear example. In terms of large equipment suppliers, RUC uses the major players in the industry such as Atlas Copco, Westrac, Sandvik, JCB and Normet and Upton takes into account reliability, performance and technological advancements on offer for each company. In addition, the support of companies such as Silverise, Westland Autos and Fero Group is crucial in various areas of operation. RUC’s nature as a 365, 24/7 business means the reliability of the service is paramount. Upton says that reliablility is what he looks for first, in return RUC will show loyalty and commitment to its suppliers on a long term basis which can in turn lead to priority service during breakdown situations where a provider may have a conflicting demand. “I think we are a very loyal client and have been to most of our suppliers for a long time. We’ve also remained loyal to Kalgoorlie, even though we moved procurement to Perth, we kept Kalgoorlie regional suppliers. “We could save a little bit of money by shopping around but I think loyalty and support and service is much more important than a few bucks here and there.”
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FP Relationships creating success Downer EDI Limited Triniti Business Campus, 39 Delhi Road, North Ryde NSW 2113 Phone: 1800 DOWNER (1800 369 637) 02 9468 9700 www.downergroup.com
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MINING | Macphersons Resources
Australian Business Network
MACPHERSONS RESOURCES Proving up a gold resource in Western Australia
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MINING | Macphersons Resources
When Jeff Williams co-founded Macphersons Resources with formidable Western Australian businessman Ashok Parekh and experienced private entrepreneur Ray Wright the trio had their sights firmly set on an area called Coolgardie, just West of Kalgoorlie the home of KCGM’s Super Pit gold mine. In the seven years since listing the regional focus has not changed but the company has accumulated a number of assets in Boorara, to the East of Kalgoorlie, and is now set on drilling out the Boorara gold project to identify how big the resource is and prove up a project to go to the capital markets. Williams has been around the block once or twice when it comes to bringing gold projects to production. The Macphersons managing director has spent the best part of a 40-year career in the industry developing gold projects around the world. When Williams joined Macphersons in May 2016 he was tasked with the sizeable challenge of delivering the flagship project’s bankable feasibility study (BFS) and subsequently realising commercial production at the Nimbus-Boorara mine leases. The company has made major progress under his stewardship. Parekh has also been instrumental in promoting the company, he has excellent people skills, providing any
Australian Business Network
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MINING | Macphersons Resources
assistance to source new projects and ideas
October 2016. The intention was not to
and has supported the entire management
make quick cash but to understand the
team.
geology, identify the grade of the resource and discover how complex the metallurgy is.
So the Kalgoorlie management under GM
Macphersons did a deal with a local mill to
Andrew Pumphrey could get a real grasp
process the material and the trial also threw
of the geology of the Boorara gold deposit,
up some unexpected results.
Pumphrey initiated an open pit trial in
Australian Business Network
“Before we started we thought there was
‘very nice but what on earth is going on?’.
about 1.2-1.3g/t gold (Au) in the open pit.
We mined in quick time with contract
We drilled it out on a 4mx4m tight grid using
labour from Kalgoorlie and at 2.03g/t under
reverse circulation vertical holes and an
Pumphry’s direction and we made $300,000
independent geologist said there was actually
which was great but we weren’t in it to make
2.03g/t Au,” Williams says.
money.
“That opened a couple of red flags though
“We found our gold recoveries were over
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MINING | Macphersons Resources
Resource GlobalNetwork Network 177 Australian Business 90%, which I thought was fabulous using another company’s mill. The gold grade was 1.75g/t recovered and we now had a better handle on the project.” However, the real turning point on the project came when Pumphrey suggested the company bring in a structural geologist to reassess the drilling strategy. Gerard Tripp was brought onboard as a consultant and suggested the company should re-orientate the drilling direction. Tripp said the company had been drilling the resource the wrong way and so had a number of the major miners before them. Macphersons then began the process of drilling across the three zones; the Northern stock works, the central Crown Jewel and the Southern stock works. Pumphrey identified the Northern zone as more complex than the Southern zone so drilling began there, “At the Northern end, we put two drills on the strike of the orezone, which was striking at 330 degrees Northwest. “We were trying to strike the dolerite host which hosts the mineralisation and for some reason we got bits of it but not much. We went to the Southern zone and the geologist [Tripp] said to orientate the drill azimuth at 115 degrees. The first hole we placed hit 163m @ 4.3 g/t Au uncut. That is a spectacular hole in anyone’s business. There are fights to get these sorts of project so it was a spectacular start for the company.” Following the change in tack on the drilling
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MINING | Macphersons Resources
strategy Macphersons has continued to
and everything else in one place. Boorara
release strong results on the project. Williams
is on a mine lease and we have power to
says the company is hitting good grades with
the site, we have sufficient water to process
other highlights of 158m @ 1.6 g/t Au and
a million tonnes and we’ve got all the
57m @ 3 g/t Au.
permitting so we are in a good place,” says Williams.
The project’s location in Kalgoorlie is a key strength when Williams casts his mind
Macphersons has a small but dedicated team
forward to the potential of commercial
based in Kalgoorlie who will drive the project
production operating on site. The region
towards a fully identified mineral resource
has a long history of gold mining and is
hopefully by the end of 2017.
considered a premier mining district in global terms. There is ample local skilled labour, as
Williams outlines that it is the mineral
well as simple access to equipment suppliers
resource which supplants value in the
and drills. Then there are four operating mills
company, so far it has announced 232,000
within 40km.
ounces as per JORC 2012.
“The Kalgoorlie area is a premier gold field
The company is busy undertaking a drilling
globally in terms of having skills, equipment
campaign at the project in order to get a true
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understanding of the size of the deposit.
identical dolerite system, according to
Having found mineralisation along strike of
Williams.
500m and at least 250m deep, Macphersons is going back in to try to extend the Crown
“We are hopeful that Boorara becomes a
Jewel area and expand the resource at depth
major resource and extends at depth and
along the Northwest trend.
along strike. We are hopeful we can get over a million ounces as a minimum resource,”
“That’s what we are doing right now because
Williams says. “We have a fair bit of drilling to
you have to get the company to expand
do. We are trying to understand the structure
the resource and be in a position to have
and once we do then we can drill it out
aspirations to go into production,” Williams
rapidly.”
explains. With his sights set on a million-ounce As Macphersons brings the resource through
resource at Boorara it is no wonder Williams
there is a hope that it could replicate the
is keen to get the drilling completed in time
success of KCGM’s Mt Charlotte mega-mine.
to release a full mineral resource by the end of 2017.
The historic mine has very similar mineralisation to Boorara and an almost
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MINING | Mount Burgess Mining
MOUNT BURGESS
Low cost entry to stable base meta
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MINING
als in Botswana
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MINING | Mount Burgess Mining
Mount Burgess Mining has taken a rather winding road to get to the position it is in today, with a 100%-owned base metals project straddling the border of Namibia and Botswana. When chairman and managing director Nigel Forrester listed the company in 1985 its priorities rested on gold exploration in Western Australia. Having exploited gold deposits throughout the 1990s which included the well-known discovery of the high grade Red October gold deposit in Lake Carey, Western Australia, Forrester and the team had a wealth of exploration experience which they then decided to apply through focusing on Africa.
That brings us to where the company is
Initially Mount Burgess entered Namibia
With the Dobe border gate being closed it
to focus on diamond exploration in the
was not possible to transport concentrate
Tsumkwe region of Northeast Namibia,
to the Grootfontein railhead, so that it
where it found three kimberlites. Although
could be railed down to Walvis Bay port for
these kimberlites were not diamondiferous,
shipment to a smelter. Consequently, Billiton
during this exploration it became apparent
abandoned the project which Mount Burgess
that the area being explored for diamonds
picked up in 2003. Through negotiation with
also contained a Neoproterozoic belt which
both the Namibian and Botswana Mining
spanned the border between NE Namibia
Ministries, Forrester got the Dobe border
and NW Botswana, which was highly
gate re-opened such that the project can
prospective for base metals. Forrester went
now be accessed from both Botswana and
to Botswana and secured that portion of the
Namibia.
today, driving forward with the Kihabe Base Metals Project located in Western Ngamiland, Botswana, 700km Northwest of the capital Gaborone and 350km to the nearest town of Maun in Botswana. The project had historic drilling undertaken by BHP Billiton in the 1980s before Namibia became independent and had provided some very good results. However, Forrester says Billiton ran into problems, as at the time the project was extremely remote and difficult to access from within Botswana. While the Dobe border gate between Botswana and what was then South West Africa (now Namibia) was actually on the project exploration licence, it had been closed for political reasons, as at that time South West Africa was under the control of South Africa’s apartheid government.
belt to discover it already had base metals exploration on it including zinc, lead and
Since then Mount Burgess has been well
silver.
occupied developing the Kihabe resource and the Nxuu resource, which combine to around
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MINING | Mount Burgess Mining
Australian Business Network 25 million tonnes (mt) based on JORC 2004
The Nxuu resource will take priority as Mount
compliance. The current grade reaches 3%
Burgess treads the path to production. Nxuu
but Forrester believes that number has been
is a shallow, basin shape resource with a
underestimated.
maximum depth of mineralisation at just 60 metres. In addition the ore is completely
“That grade is mainly based on reverse
oxidised for both lead and zinc. A process
circulation drilling,” Forrester notes. “Every
has already been devised to produce zinc
time we drilled the same intersections with
metal on site through solvent extraction and
diamond core drilling we got an average
electro-winning.
grade increment of close to 60%.”
Resourceful drilling
“It’s also looking likely with the next technology available that we will be able to
Mount Burgess’ forthcoming drilling
produce lead metal on site. If we can produce
programme will aim to consolidate the
those metals on site it is going to eliminate
results it is experiencing with diamond
the costs of transporting concentrate from
core drilling. Forrester’s next step at the
a country that doesn’t have a port,” explains
Kihabe project is to concentrate on the
Forrester.
Nxuu resource and press ahead with diamond core drilling so management can
Nxuu’s low cost nature is going to remove
be assured of what the ultimate grade of the
a significant barrier to reaching commercial
resource will be. If the grade increases by
production. Mount Burgess can take this
the aforementioned 60% then, as Forrester
project forward based on this deposit without
asserts, it will substantially benefit the
having to raise large sums of capital for
economics of the whole project. Secondly, the development from the financial markets. The drilling will enable Mount Burgess to define
combination of potential for open pit mining,
the resource in a measured and indicated
not having to transport double the amount
category compliant with the 2012 JORC code.
of raw material by processing on site, the low strip ratio and a production rate of around
“Then there will be no problem with
750,000 tonnes per year (tpa) results in the
financing,” highlights Forrester. “Once we’ve
project being low cost in capital expenditure
got it into that measured and indicated
and in production costs.
category it will enable us to move forward and commence a feasibility on the project
“It’s not going to be of high capital
and we can only start a feasibility study if we
expenditure, probably in the region of US$50
can show we can convert those resources
million for the whole project,” predicts
into reserves. We have to be in the measured
Forrester.
and indicated category to do that.” “Being that shallow, being a shallow plate
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MINING | Mount Burgess Mining
Resource GlobalNetwork Network 189 Australian Business and being able to produce metal on site we categorise it as low risk too.� Albeit remote, the project has access to a number of key infrastructure components necessary for a producing mine. It is located 350km from the nearest town in Botswana which is Maun, which has an international airport. The Dobe border gate between Botswana and Namibia is situated on the company’s Kihabe project prospecting licence, allowing access to Grootfontein in Namibia where there is a railhead. Also situated on the Kihabe project exploration licence is the Xai Xai airstrip. Forrester confirms that the access road to the Kihabe project has now been upgraded with the potential for it to later be sealed. If the company can produce metal on site it will eliminate the need to transport and ship large tonnages of concentrate. It will further eliminate the need to negotiate with smelters in various parts of the world. He also highlights how there are many far more isolated projects in the world which are in operation. While Botswana ranks second in Africa for doing business according to the Fraser Institute and is a stable and peaceful country, an area where Mount Burgess has had rather more fraught relations with the government is in getting access to power on site.
Powering up Grid power to the site was originally pledged for 2012, a date on which Forrester had leveraged the feasibility study. However, with
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MINING | Mount Burgess Mining
no electrification transpiring the feasibility
The government plans to refurbish the
could not be undertaken and the domino
original Morupule A 120MW coal fired power
effect saw the Botswanan authorities decide
unit. It further plans to repair three of the
not to renew Mount Burgess’ licence.
four 150 MW Morupule B coal fired power units which have caused all the problems and
Having bounced around Botswana’s courts
delays in upgrading Botswana’s grid power
for three years Forrester appealed directly
output. Contracts for the construction of a
to President Khama highlighting the fact
further two 150MW Morupule B coal fired
that it was not Mount Burgess’ responsibility
power units have been awarded to Marubeni
to install power and there was little the
and Posco Energy. However, construction
company could do to help things along.
of these two further units is awaiting the provision of guarantees from the Botswana
Forrester believes his appeal to President
Power Corporation. Forrester has not
Khama led to Mount Burgess being invited
completely ruled out that access to grid
to apply for a new exploration licence to
power could be an ongoing problem for the
cover the Kihabe project. The application was
project.
granted last year and runs for seven years, so Forrester does not expect to run into this
Accordingly as an insurance policy Mount
problem again.
Burgess has been in discussions with other companies regarding alternative power
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supplies for the project, “They say they
waiting in Botswana and in fact they will be a
can provide power, a combined LNG-solar
net exporter of power instead of importing it
process for around $0.13 per KWh. But if we
from South Africa.”
can be assured we will get power there by 2019 then we can rely on grid power. We’ve
So if, as Forrester expects and is counting on,
got the Botswana resources conference
all the cards fall into place over the next two
coming in June 2018 and that is one of the
years the project should be in production in
main issues we will be bringing up.”
2020 or before. The major tranche of work this year will be to drill out the Nxuu resource
However, Forrester does not deny that
into a indicated and measured resource
power is critical for the project to progress,
compliant with JORC 2012 and enter into a
“It’s an issue which has to be resolved. We
feasibility study in 2018.
raise money in the market and unless we can show that we can ultimately get this into
Based on the proposed production level of
production, then we won’t get the confidence
750,000tpa the project will not require heavy
of the people that are supporting us.
capital expenditure on a large plant and therefore when power is delivered on site
“The Ministry of Minerals, Energy and Water
Mount Burgess can move full steam ahead
Resources are saying that, by 2019, they will
with realising the Kihabe project to its full
have sufficient power for all the projects
potential.
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APPOINTMENTSAND ANDEVENTS EVENTS 192 APPOINTMENTS 192
APPOINTMENTS Nev Power to step down as CEO of Fortescue Metals Group Chairman Andrew Forrest announced that Nev Power will depart the mining giant in February after seven years in the role. Forrest said that Power’s move will signal the ‘next chapter’ for Fortescue and is in line with long term succession plans. “We could not be more pleased with his stewardship and respect his decision that it is time for the next chapter of Fortescue to begin,” Forrest said.
Struggling Billabong appoints Jim Howell as new CFO Loss making surfwear retailer Billabong has replaced its outgoing CFO Peter Myers with ex-Nordstrom executive Jim Howell. The Gold Coast-based firm recently downgraded its full-year earnings guidance after its first-half loss increased to AUS$16.1 million. Billabong’s chairman Ian Pollard said Howell will bring significant retail sector experience to the company and provide ‘strong oversight’.
Blackmores promotes Richard Henfrey to chief exec role NSW-based health supplements company Blackmores confirmed Richard Henfrey will be its new chief executive in a stroke of internal recruitment. Henfrey has been chief operating officer at Blackmores for the last three years and replaces Christine Holgate, who is moving on to an executive role at Australia Post. “Richard has been at the forefront of Blackmores’ strategy development for more than eight years,” said chairman Stephen Chapman.”
Former BHP executive Mike Ferraro to lead Alumina Bauxite mining and alumina refining firm Alumina has appointed Mike Ferraro as its new chief executive and managing director. The former BHP executive assumes the duties of the role from the retired former CEO Peter Wasow. Ferraro’s previous experience ranges from roles as an investment banker across Australia and in London, while recently serving as a director on Alumina’s board.
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EVENTS Schneider Electric Innovation Summit February 12-13 2018 Sydney
Professional Development Strata Outlook February 15 2018 Perth National Sustainability in Business Conference March 08-09 2018 Brisbane Future of Mining May 14-15 2018 Sydney CeBIT Australia 2018 Business Technology Conference & Exhibition May 15-17 2018 Sydney
Want to promote your event? E-mail your event to jacob@ausbn.com.au
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