Be Informed: a new video interview series for the BBMC

Episode 1: Queensland Resources Council, Ian Macfarlane 18 May 2020

The BBMC Be Informed Interview Series kicked off with Queensland Resources Council Chief Executive Mr Ian Macfarlane. Naturally, conversation revolved around the resources sector’s response to COVID-19 and the industry’s important role in the road to economic recovery. The best outcomes were that no one contracted the virus up to that time by being part of a site workforce - maintaining the safety of surrounding communities, while keeping production levels steady. Interstate FIFO was cut by approximately 65%, with crucial workers moved to Queensland, while filling up Central Queensland accommodation - good news for local businesses. Resource companies rallied strongly to the cause, getting behind medical centres, pathology laboratories and social programs to minimise isolation and keep communities connected. In an environment of wholesale job losses and an economy suddenly dependent on welfare programs, the resource industry became an even more important source of support for the government, bringing in both export and royalty income. The mining sector was not nearly as badly impacted as retail and tourism, and in recovery mode, industry’s role will be twofold. Firstly, continuing income to support people and maintain health services is key, and secondly, to ensure the economy remains resilient enough with a strong base to recover from post-pandemic. Ian reiterated that the QRC would continue to advocate strongly for cutting away red tape that holds applications back, arguing that opening up new investments such as gas fields and mines will give the state a much-needed economic boost – we never know when the next disaster will demand another major response.

Episode 2: Multicom Resources, Shaun McCarthy 4 June 2020

Shaun McCarthy, CEO of Multicom Resources, talked about the status of their St Elmo project, and the exciting future of vanadium in Queensland’s North West Minerals Province. While vanadium is traditionally used to produce a high-strength steel alloy, there’s growing excitement around emerging technology in Vanadium Redox Flow Batteries. These batteries represent an ideal grid-scale storage solution, although there’s also a place for smaller industrial demand as well as residential use. They have significant advantages over traditional storage media such as lithium.

Multicom Resources, like similar producers, are partnering with technology companies, forming joint ventures to ensure a cost-effective supply chain, driving the technology onto the market. Shaun emphasised that the next couple of years will be pivotal in this emerging market. Multicom have established a wholly-owned subsidiary, Freedom Energy, and work with a partner, StorEn Technologies who produce vanadium flow batteries. The St Elmo project, located just outside Julia Creek, was awarded major project status by the Federal government in 2019, and more recently, was similarly designated by the Queensland government. International jurisdictions looking for stable, long-term supplies of vanadium have prompted this designation. It means that government recognises the importance of getting projects like Multicom’s online by moving projects through the regulatory framework efficiently. The St Elmo project is in a strong position to be able to go to market for funding early next year, having worked hard to get ready to lodge their EIS statement, and are looking forward to the grant of their mining lease.

Episode 3: Castillo Copper, Ged Hall 24 June 2020

Ged Hall, Director, Castillo Copper, talked with Kim Wainwright, Chair of Queensland Explorations Council about the prospectivity of the North West Minerals Province. They discussed the exciting technical results on Castillo’s Aria project in the Mount Isa copperbelt. Castillo Copper is fortunate to have identified nine potential targets in the province, including several iron oxide, copper and gold targets. The Aria project is particularly significant because of the interpreted size of the deposit, which is potentially huge. Independent consultants have recently interpreted a 130m thick target, and several other large supergene mineralisations only 25m below surface. Findings imply that the whole deposit could be of quite an extraordinary size. Ged is based in London but keeps a close eye on developments in Queensland. The North West Minerals Province has world-class asset potential and as long as the government continues to focus on employment and building the economy, it will continue to attract businesses and people to the region. We’ll be seeing Ged, perhaps accompanied by some key investors, to see the drilling taking place, as soon as travel is practicable.

Castillo Copper is fortunate to have identified nine potential targets in the province, including several iron oxide, copper and gold targets.

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Photo: Bravus Mining & Resources Episode 4: New Hope Group, Andrew Boyd 10 August 2020

In August, Jodie Currie spoke with Andrew Boyd, COO of New Hope Group. Prior to the Queensland state election, the New Acland Expansion project was crying out for community support as they faced job losses due to an ongoing legal battle. Unfortunately, there was no progress prior to the election or since, and the mine’s closure is now further advanced.

Here’s our summary of what’s happened with the New Acland Expansion project:

What is New Acland Stage 3?

New Acland is an operating open cut thermal coal mine on the Darling Downs, just outside of Oakey. With a 5mtpa production capacity, it’s been running for 18 years, employing over 300 locals. As part of mine planning, in 2007 New Hope applied for an extension to their existing mining lease – the ‘Stage 3’ extension. This attracted opposition, so they modified the scope and re-applied for the extension in 2013. In 2014, the Coordinator-General approved the extension – and then the legal battles started.

What’s going on?

Quite simply, the mine is running out of coal, and legal appeals will continue to delay the project’s approval. The opposition to the mine, a group called the Oakey Coal Action Alliance, has unlimited legal backing from the Environmental Defenders Office – funded by taxpayers. The project has strong community support – over 80% of locals say they want the project to go ahead, and all of the farms neighbouring the mine are happy to co-exist.

What’s the holdup?

The State Government has said they won’t approve the mine while it’s before the courts. But the opposition tactic is simply that – to keep the mine before the courts. Environmental approvals have been granted, so appeals aren’t even on an environmental basis anymore. The case is currently before the High Court. Both the Land Court and Appeals Court have found that the project should be approved, but the legal system supports project opponents to simply keep on appealing. The High Court challenge will take 18 months. In those 18 months, the entire workforce at New Acland will have lost their jobs.

What’s happened since?

In November, the New Acland Stage 3 Groundwater Management and Monitoring Plan was approved by the Federal Government – the final sign-off at a Federal level. However, the current operations have begun to scale down, with job losses, night shift production reduced and the CHPP running just four days a week. The final hurdle is State sign-off – on the mining lease and associated water license.

Episode 5: Bravus Mining & Resources, David Boshoff 18 August 2020

Jodie Currie interviewed David Boshoff, recently appointed CEO of Adani Mining Australia (now Bravus Mining & Resources) about his goals and background. While he was born and raised in South Africa, and initially worked as an underground conveyor belt cleaner in a mine, David emigrated to Australia to pursue a career soon after finishing tertiary education. He’s grateful for the opportunities he’s had in Queensland and Australia, and for the many people who have guided him in many roles in the industry so far. Drawing particularly from his eight years with BHP as Caval Ridge Mine Manager, David maintains that project success is all about people. Success comes from having three things in place – having the right people in place, ensure people are committed to a common goal with a clear context, and keeping motivation high by having fun along with the ever-present challenges of the job. As CEO of Bravus Mining & Resources, David is acutely aware of the privilege he has to lead a company who can create benefits for people to be able to better themselves and their families in some way. In many aspects, this was his own experience, with early educational sponsorship and experiences made available that led to his family having an improved lifestyle and access to opportunity and choices. 2021 remains the target date for first coal. The company is on track to deliver, although the pandemic provided some challenges. Staff remain on high alert, although the Adani policy of regional employment reduces their interstate staff risk profile considerably. Aside from this, wet weather is the other major risk factor. As CEO, David’s objectives are firstly to deliver the project safely, deliver on time and on budget, and to ensure the company delivers on its commitments. Many people have supported Adani for a long time with their voice and resources, and the company is excited to give back to those people and communities.

Photo: BHP

Episode 6: Department of Natural Resources, Mines and Energy, Peter Donaghy 21 August 2020

Peter Donaghy, Director for Coal at the Coal Assessment Hub, Department of Natural Resources, Mines and Energy confirmed that the resources sector, and particularly our thriving coal industry continues to steam ahead, through good times and bad.

The approvals pipeline has not been adversely impacted by the pandemic, with a steady stream of new mining lease applications adding to the 15 received in 2019. About 70% of these are for metallurgical coal, although the thermal sector is also strong. The strength of the pipeline is attributed to: • some of the best enabling infrastructure in the world • the world-leading quality of our met coal • some of the smartest engineers and companies at work in our METS sector • a capable workforce with extremely high safety standards During the year major developments have been moving forward, and although some tend to fly ‘under the radar’, like Pembroke’s Olive Downs mine, they are all contributing significantly to royalties and production figures. Private capital expenditure on greenfield projects is vibrant and growing, despite the many hurdles and extended development timelines. 