Bowen Basin Mining Club Yearbook 2019 by bbminingclub

YEARbook 2019

A voice for the resources sector, alternative energy technologies explored, the future of coal demand, technology transformations and automation, attracting the next generation of talent, maintaining social licence and more BBMC Yearbook 2019

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BBMC Yearbook 2019

EDITOR Jodie Currie jodie@bbminingclub.com CONTENT CURATORS Sarah-Joy Pierce sarahjoy@strategicminingcomms.com Debbie Wolhuter deb@joyfulcommunications.com.au GRAPHIC DESIGN Holly Williams holly@kingstcreative.com.au ADVERTISING yearbook@bbminingclub.com WEBSITE www.bbminingclub.com

CONTRIBUTING WRITERS Ian Macfarlane, Tania Constable, Senator Matthew Canavan, Kim Wainwright, David Kiefer, James Palmer, Mick Buffier, Peter McCarthy, Dan Sutherland, Darryl Cuzzubbo, John McCarthy, Andrew Cole, Sharna Glover, Dr Benjamin Heard, Nicole Ireland, Michelle Gane, Renee Wall, Nikky LaBranche, Liam Davis, Claire Meiklejohn, Ngaire Tranter, Professor Anna Littleboy, Christian Young, Martin Vasilescu, David Reddin FIND US ON FACEBOOK AND TWITTER @bbminingclub ON THE COVER Image credit: Craig Milne Sunrise at Anglo Americanâ&#x20AC;&#x2122;s Moranbah North Mine Images throughout supplied by Anglo American, BHP, Glencore, Hastings Deering and Ryan Magill

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DISCLAIMER The Bowen Basin Mining Club Yearbook is published by the Bowen Basin Mining Club Pty Ltd, PO Box 2620, Chermside Centre QLD 4032. Every effort has been made to ensure that the information contained in this publication is accurate at the time of publication (December 2019). The Bowen Basin Mining Club and its agents accept no responsibility for the accuracy or completeness of the contents and accepts no liability in respect of the material contained in the yearbook. The Bowen Basin Mining Club recommends that users exercise their own skill and care in evaluating accuracy, completeness, and relevance of the material and where necessary obtain independent professional advice appropriate to their own particular circumstances. In addition, parties, their members, employees, agents and officers accept no responsibility for any loss or liability (including reasonable legal costs and expenses) or liability incurred or suffered where such loss or liability was caused by the infringement of intellectual property rights, including the moral rights, of any third person.

BBMC Yearbook 2019

Contents From the Editor

Resources lifting Queensland’s prosperity

Careers in the modern mining industry

Australia’s energy powerhouse does the heavy lifting for the Asia Pacific region – while reducing emissions

We’ve barely scratched the surface

On the Horizon

Building a sustainable industry through technology, people and culture

Focus turns to Bowen Basin gas

Unlocking value through transformation

Supporting research into low emission technology

‘Fit for Change’ at Jeebropilly Mine

Peabody proves the power of people

QCoal’s million metres breaks new ground in exploration

2019 BBMC Luncheons: Reviewed

Where do our speakers operate?

Spotlight: Anglo American’s Futuresmart™ Mining Here to Stay

Spotlight: Thiess creating lasting value through a strong focus on community partnerships

Spotlight: Glencore Group reveals growing community footprint

Spotlight: Safety gains and shared value – BMA’s bright future

Spotlight: Mining projects moving forward as the sector gets smarter

Panel Discussion: 2020 and beyond

The Adjacent Possible: technologies to change our future

Commercial Mathematics for the resources industry

Preparing for unprecedented, unpredictable change

Innovation thrives on a strong ecosystem

Unlocking the 'Lucky Country’

Long-term partnership delivering outcomes step by step

Hydrogen: hype or opportunity?

Social Licence to Operate the key to success?

Closing the gaps in mine dust knowledge

Mining legislation changes in 2019: What you need to know

EIS timeframes doubled this decade – can policy pragmatism prevail?

Thinking beyond closure – a ‘wicked’ problem for the Bowen Basin

102

Time for a paradigm shift in safety thinking

104

Understanding Activism – the key to fighting back

Why blockchain technology is relevant to mining

107

Changing mindsets for a modern mining company

How can the mining industry win the war for talent?

108

Mining Services Directory

111

BBMC Yearbook 2019

From the Editor jodie currie

019 has been a big year for the resources industry. In an increasingly loud political, social and economic environment, our voices have finally begun to be heard. This Yearbook covers plenty of topics and developments that have been the focus of conversations in our industry this year, from social licence to operate to sustainability, alternative energy to law reform. We’ve found experts from all corners of the industry and the state to explain and illuminate the ‘big ticket’ discussion items that you need to understand, whether you’re at a backyard BBQ or a boardroom table. When you’re reading, keep in mind how important it is for every single one of us to continue as advocates for our industry. The best way to do that? Be armed with the facts. So, what shaped 2019? The Bowen Basin Mining Club started the year with our 50th luncheon, held in Mackay in the first week of February. This luncheon marked the same week as the devastating floods in Townsville. Following the natural disaster, it was fantastic to see companies like Glencore and Adani step up to support the communities they live and work in, with human and financial resources to help in the cleanup effort.

It wouldn’t be a roundup of the year without mentioning the Federal election in May. The result came as a surprise to some, yet overwhelmingly demonstrated how important regional Queensland is to all of Australia. Our industry effectively vocalised what is important to us, particularly that we need representation equal to our economic contribution. The momentum of these voices carried over to the Queensland Resources Council’s Queensland Day rally in June. Hundreds of mining company employees, along with local councils, suppliers and supporters, peacefully marched in Brisbane to demonstrate the importance of the resources sector to Queensland. The Bowen Basin Mining Club was proud to support this rally alongside sponsors, members and colleagues. Also in the first half of 2019, the Bowen Basin Mining Club partnered with Austmine to promote their Mining Innovation: The Next Horizon conference, now in its 20th year. A huge congratulations to Austmine this year on their 30th year of championing the METS sector - we’re proud to partner with them. Supporting and attending major conferences is part of what we do to advocate for you we’re always looking and listening for what’s next in the industry, plus networking to bring you the best possible speakers and insights.

BBMC Yearbook 2019

To sum up what the year’s events mean for us in just a few words: it’s our time to stand up and be counted. We also supported Melbourne’s IMARC conference in November as an industry partner. Unfortunately, this year’s IMARC showed the ugly side of the protest movement that has hovered over the resources sector all year, as the protesters moved from passive to menacing. Inside the conference, it was a totally different story as delegates discussed the future of the industry, including important topics like social licence to operate, sustainability, and our part in a loweremissions future. Finally, we rounded out the year with Prime Minister Scott Morrison at the Queensland Resources Council’s State of the Sector forum and luncheon, where we launched the 2020 Queensland Mining Awards in front of 1000+ industry leaders. It was extremely inspiring to hear in person just how strongly the PM supports our industry, including his announcement to focus on skills for the sector and strengthening training pathways for young Australians to find a career and a future in resources. 4

BBMC Yearbook 2019

To sum up what the year’s events mean for us in just a few words: it’s our time to stand up and be counted. The Bowen Basin Mining Club have long been advocates of the sector’s importance, but now the collective industry realises that our voices are stronger and louder when they’re together. Coming up on our 10th year in 2020, we’re more committed than ever to hear those voices, discover what’s next for the sector, connect you with opportunities and information when new players enter the market and advocate for our industry. If you hold one of the one in seven jobs in Queensland’s resources sector, you’re one of us, and this Yearbook is for you. Be informed, and don’t be afraid to speak about the positive things that our sector is doing in Australia and around the world. 

BBMC Yearbook 2019

Resources lifting Queensland’s prosperity Ian Macfarlane, Queensland Resources Council

hen it comes to the resources sector in Queensland, the economic influence spans thousands of kilometres in delivering jobs and investment. This was again highlighted with the release of the Queensland Resources Council’s (QRC) economic contribution data for 2018-19 which found the sector supported more than 372,500 jobs and invested $74.3 billion into the state’s economy.

You can’t overestimate the importance of a sector which powers employment on this scale. Resource jobs are not just highly paid, but they are long term jobs including in high tech fields. Directly the sector employed 52,295 people which is a lot of truck drivers, diesel fitters, environmental scientists and port workers. While there has been significant international headwinds over the past 12 months which have had an impact on 6

BBMC Yearbook 2019

trade exposed industries, the resources sector was still able to account for one in five dollars in Queensland’s economy and one in every seven jobs.

sector adheres to some of the strictest environmental laws in the world and prides itself on its ability to extract resource responsibly.

Every Queenslander – regardless of where they call home – shares in the wealth of the sector through the royalty taxes it pays to the State Government. This year alone those royalty taxes are worth over $5.4 billion to the State Budget. These royalties provide funding for new hospitals, police stations and schools, or the equivalent wages of 100,000 teachers or 98,000 police, 86,000 nurses.

Regional Advocacy

It’s important our industry stays ahead of the pack internationally by competing for every contract, innovating to stay globally competitive, and earning the support of our governments, and the people who elect them. Our coking coal will continue to provide an essential ingredient into steel making, our gas will feed the energy needs of Asia and Europe while our alumina, bauxite, copper, gold, lead, mineral sands, silver and zinc will be much sought after in a rapidly urbanising Asia. Something that may surprise people is that all the industry’s economic contributions are achieved while operating within a strict environmental management framework and using only 0.1% of Queensland’s land mass. Our

This year we saw both the south east of Queensland and the regions come together to support the resources sector and resources communities. In regional Queensland the Go Galilee campaign galvanised mining communities in a show of solidarity for the economic benefits of opening the Galilee Basin to mining. The campaign received significant media attention with front pages supporting the campaign in the local papers of Rockhampton, Mackay and Townsville. Figures from the Office of the Chief Economist show that if the six major coal projects in the Galilee Basin were to proceed they would create 13,900 construction jobs and 12,803 jobs during operations. The Go Galilee campaign was a significant contributor during the Federal election, with the seats of Dawson, Townsville and Capricornia going towards candidates who were very vocal in their support of the campaign. Prime Minister Scott Morrison returned the Coalition Government to power with the help of these seats and it probably came as no surprise when he said “how good is Queensland?!” in his victory speech.

Having said that, the QRC always has and always will work with both sides of government to ensure we continue to deliver benefits for regional communities and the economy. The people in the south east of Queensland also took part in a separate “Rally for Queensland” prior to the election, calling for all resource projects to be given a fair go and for politicians to publicly support our sector. Safety Tragically in the last 12 months, there have been five workers who have died in incidents on mine sites and two quarry workers also lost their lives in what was a very difficult time for both industries. In response the sector supported swift action from the Queensland Government to carry out safety resets on all mine sites.

Safety is the number one priority in the resources sector. It’s not just words, it’s the reality for everyone who works in or with our sector. From day one when the reset was first proposed at a meeting with industry, government and unions, resources companies had made it their top priority. Each safety reset was implemented according to site-specific circumstances and specific fatal risks. The resources sector always strives to implement the best practices and best technologies to maximise site safety. Every measure we put in place to enhance safety is time well spent. Our industry will continue to make sure people are fully aware of the serious risks they face at work and they will have an opportunity to raise any safety concerns that they have.

Industry has been improving its safety and improving the way it goes about increasing the knowledge of all the workers in the industry. We will continue to work with all unions and the Queensland Government to ensure that safety remains the number one priority for all companies. Everyone who works in a mine – or any other workplace for that matter – is entitled to leave for work and return home safely to their loved ones. Investing in New Technologies Resource companies continue to invest in new technologies to reduce emissions and want an agnostic approach to the energy mix. A recent report commissioned by the QRC – State of the Sector – a quarterly survey of resource CEOs in Queensland – found companies were already investing in a lower carbon world.

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BBMC Yearbook 2019

In Weipa, Rio Tinto’s 1.7-megawatt solar farm generates 20% of the town’s daytime energy demand saving up to 2.3 million litres of diesel and 1,600 tonnes of carbon dioxide annually.

Across commodities 40% of surveyed CEOs are currently investing in the research and development of low emission technologies from carbon capture and storage to energy efficiency projects. This expenditure will grow further with 53% planning to spend more on reducing emissions and 20% to substantially increase spending. Energy efficiency, sometimes called the fifth fuel, is the cheapest and cleanest energy of them all. For the past nine years Aurizon has reduced emissions from trains by 19% by transitioning its fleet from diesel to electric. In another example, Anglo American has partnered with sustainable energy producer EDL to use excess gas released from coal seams to generate 108 megawatts of power from what was once a waste product. When asked about renewables 90% view the energy source as an opportunity but are equally concerned that without careful planning, intermittent generation can risk energy security and affordability. Queensland’s economy was built on reliable access to low-cost energy and it remains a vital ingredient for the success of the resources sector. Small increases to energy costs have a large impact on trade exposed industries and lowers our international investment profile. Queensland’s energy mix must be affordable, reliable and help lower emissions. Resource companies are also doing their part to reduce emissions by incorporating more renewables into their 8

BBMC Yearbook 2019

own operations. In Weipa, Rio Tinto’s 1.7-megawatt solar farm generates 20% of the town’s daytime energy demand saving up to 2.3 million litres of diesel and 1,600 tonnes of carbon dioxide annually. South32’s Cannington mine— one of the world’s largest producers of silver and lead— opened a 7,200-panel, three-megawatt solar farm in December last year which powers the mine’s accommodation, airport and sends additional power to its mining operations cutting emissions by up to 6,000 tonnes per year. Adani is also investing in renewable capacity. Rugby Run Solar Farm near Moranbah supplies 65 megawatts of renewable power – the equivalent of powering 23,000 regional Queensland homes and businesses each year using more than 247,000 solar panels. Renewables also provide an important new source of demand growth for Queensland’s minerals. Energy from coal generation requires about two kilograms of copper per kilowatt whereas solar requires five kilograms per kilowatt. Queensland’s resources industry is clearly committed to being part of the global effort to reduce emissions by improving energy efficiency, adopting renewable energy and investing in cogeneration and low emissions research.

Queensland Minerals and Energy Academy Our education arm, the Queensland Minerals and Energy Academy (or the QMEA, as it is more commonly referred to) has expanded to 74 schools which cover south east Queensland out to Mt Isa and Townsville in the North. The Queensland resources industry is actively engaged with these schools and teachers along with the Queensland Government to ensure the QMEA – Australia’s largest industry and government education partnership – plays a vital role in lifting participation levels in science, technology, engineering, maths (STEM) and trades. We all need to do our part, especially the private sector to encourage young minds to embrace STEM fields if we are to deliver a workforce ready for tomorrow’s world. Our industry is already shifting towards a full range of advanced equipment ranging from automated vehicles to virtual reality tools. We’ll still need truck drivers, but we’ll also need people who can read and write code. Also, QMEA deploys trade experts into the schools who provide hands-on training to the students. From welding to electrical work, the students are given the opportunity to explore a trade and understand which career opportunities there are in trade related fields.

BBMC Yearbook 2019

We know weâ&#x20AC;&#x2122;re having an impact through the QMEA with Queensland Government data showing that over the 14-year life of Academy approximately 20% of students have undertaken a study or employment pathway into engineering and related technologies compared to 13% from non-QMEA schools.

Michael Roche was a fearless leader and vocal advocate for the sector who championed new ideas that changed the industry forever.

VALE MICHAEL ROCHE

Michael served as the Chief Executive of the Queensland Resources Council for 11 years before stepping down in 2016. Michael was a fearless leader and vocal advocate for the sector who championed new ideas that changed the industry forever.

On behalf of the Queensland resources industry and the hundreds of thousands of men and women who work in it, I pay tribute to the late Michael Roche for his tireless commitment and passion for the resources sector.

He led the organisation through one of the most severe downturns in recent history with determination and professionalism. Michael was a founding member of the Queensland Exploration Council and an honorary life member of the QRC. ď Ž

And we know the message is spreading far and wide, with huge media interest across the regions, reaching an audience of around a million people.

BBMC Yearbook 2019

Careers in the modern mining industry

Tania Constable, Minerals Council of Australia

or decades, mining and resources have been the backbone of the Queensland economy. More than 300,000 Queensland jobs are supported by resources and in 2018-19 alone, mining and resources contributed $6.1 billion in wages for Queensland workers, $5.4 billion in royalties to pay for teachers, nurses and police and a total of $74.3 billion to the Queensland economy. That's one in every five dollars of the Queensland economy and one in every seven jobs, thanks to mining and resources. So it's not hard to see why mining is so important to Queensland. And on top of this, the mining and resources sector has a supply chain of more than 14,000 Queensland businesses and assists with 1,395 community organisations. The mining and resources sector continues to provide stability not only in Queensland, but right across the country. In 2018-19, Australia's worldclass resources sector generated a record high of $273 billion in export earnings for the nation, up 24% from 2017-18, and accounted for 58% of Australia’s total export revenue.

BBMC Yearbook 2019

This increase in export values was across a number of commodities too. Iron ore exports increased 26% to $77 billion; coal exports increased 15% to $69 billion; and LNG exports increased 61% to $49 billion. The value of resources exports has in fact doubled since 2009-10. The mining industry (including oil and gas) accounted for 8.5% of Australia’s GDP in 2018-19 which was the second highest share of any industry. Of all industries in Australia, mining has been the largest contributor to economic growth over the last decade. Despite all of these facts and figures, the myth that the mining boom is behind us still persists in some parts of Australia. The mining industry has undergone a period of significant expansion in the past decade, with a period of massive investment supporting many construction jobs in the industry as new mines, processing plants and infrastructure were built. Now that these projects have been built, Australia is producing new record volumes of coal, iron ore, bauxite, gold and lithium. This production phase of the boom will last for a much longer period, because mines typically take a few years to build but can run for considerably more than 20 years.

Most of the things we use in daily life are made from mined materials. With global population growth and rapidly escalating demand for energy and infrastructure, we are using more minerals and metals than ever. So you can expect the appetite for our world-class Australian resources to remain strong. This in turn creates a demand for first-class people to work in the industry. These operating mines are offering many new positions in the industry. More than 17,000 new jobs in the resources sector have been created since 2016. There’s no doubt we have an outstanding workforce in Australian mining. Our miners are younger than the all-industries average, highly paid, highly skilled and totally committed to be the best in the world at what they do. They also look after the environment, their mates and put a huge amount back into their local communities. The Minerals Council of Australia’s (MCA) member companies such as New Hope are doing great work in mining rehabilitation and securing more opportunities for young people. With the growth and resurgence in coal and our other world-class commodities across the Bowen Basin, Queensland more broadly, and Australia, the industry will be looking for more people from

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diverse backgrounds to join the sector, develop their skills and forge a career in Australian mining.

Our miners are younger than the all-industries average, highly paid, highly skilled and totally committed to being the best in the world at what they do.

As a global technology leader, Australiaâ&#x20AC;&#x2122;s mining sector places a priority on investing in people and giving them the skills and knowledge to provide opportunities in the minerals workforce of the future. Mining is an exciting and vibrant sector, with so many different jobs and opportunities on offer for school leavers, apprentices and trainees, trades people and university graduates. MCA members such as BHP, Downer Mining, Anglo American, Peabody, Glencore, Whitehaven and the CIMIC Group are making a huge contribution to building the workforce of the future through training, apprenticeships and investments in technology and innovation. Investing in our people, skills and innovation means we can stay at the top of the world league in mining competitiveness, and deliver fulfilling careers for people in highly paid, highly skilled jobs.

The MCA recently put together Australiaâ&#x20AC;&#x2122;s first More to Mining Careers Guide to show the world the job opportunities on offer in the modern, innovative minerals industry. This includes cutting-edge roles in innovative tech-driven fields such as data scientists and mechatronic engineers, as well as new opportunities for the existing workforce to upskill and take on new roles. Advances in technology are making our industry safer, more competitive and more sustainable. New technology such as robotics, drones, data science and virtual and augmented reality is being rapidly adopted by Australian mining companies, who have always been on the cutting edge of innovation. This creates a different skills mix for our future workforce. Within five years, 77% of jobs in Australian mining will be different thanks to technology â&#x20AC;&#x201C; and the people who make the most of it. BBMC Yearbook 2019

Across the mining process – from exploration through to operations, processing, transport and trading – technology is transforming the way we mine. In some industries, that would mean losing jobs to robots and automation. In mining, technology means safer and more productive jobs. Most jobs in mining will be enhanced by technological innovation. For example, a shot-firer working on a drilling team will have the opportunity in Australia’s future minerals workforce to use drone technology to monitor automated rigs. Mining engineers are already upskilling to include areas such as change management and communication. Our mining operations are already more data-driven, requiring programming and analytical skills. Today’s underground drill and blast engineer will be tomorrow’s geotechnical engineer, technology and systems support, working remotely on autonomous underground machinery.

BBMC Yearbook 2019

Future working arrangements will also be more flexible, giving more incentive for prospective applicants from more diverse backgrounds to consider a career in the mining industry. People might want to live away from site and work at a Remote Operations Centre. These centres also offer people with disabilities a chance to enter the minerals industry. The composition of the current and future minerals workforce will continue to evolve with the increasing need for technical skills in data analytics, robotics and artificial intelligence. Future university degrees will need to have a mix of the latest scientific, technical and trade skills. There will also be greater collaboration, creativity, and social science skills required to deal with changing community expectations. As our industry continues to evolve to meet the needs of a rapidly changing world, one thing remains constant – our need for the best people who want diverse and challenging careers to last a lifetime. The modern mining industry is much more than big machines, hard hats and high vis.

We interviewed workers, students, industry experts and researchers in Queensland and around Australia when putting together our More to Mining Careers Guide. Everyone had two things in common: they love their job and are proud of their industry. We heard some great stories, especially from Queensland. For example, did you know that the University of Queensland is ranked first in the world for Mining and Mineral Engineering? It’s one of eight Australian universities offering mining engineering degrees. There are also associate engineering degrees, a fast and flexible alternative for students or those already working in the sector who are looking to upskill or change career paths, offered at Central Queensland University and the University of Southern Queensland.

It’s our mission at the Minerals Council of Australia to take Australians beyond the stereotypes and into the real world of mining.

Engineering is more than just machines and equipment. Mine planning and design is some of the most fascinating, complex and rewarding work a mining engineer can do. And getting it right – which also means working out what goes on after a mine has closed – is the most important factor in whether a mine is a success or failure. “Mine design is something that dictates the strategic direction of a mine all through its life,” says Peter Knights, a professor at University of Queensland’s School of Mechanical and Mining Engineering. Now, more than ever, engineers are planning how to measure and mitigate the environmental impact of a mine. “Mine design covers the whole life of mine, and that includes closure,” Peter says. “There is more and more work for mining engineers in looking at the sustainable closure of existing mining operations and cleaning up legacy ones.” The variety of careers on offer in the mining industry is something that came through loud and clear from the More to Mining Careers Guide. A quick look at a few of the Queenslanders featured paints a diverse picture. Sarah Coughlan, a graduate mining engineer with Anglo American and part-time farmer, loves working underground as a coalminer and being able to live in regional Queensland and get out in the field and get dirty. And then there’s Don Cameron, Project Manager for Remotely Piloted Aerial Systems (RPAS), who works across Glencore’s operations in Queensland piloting drones monitoring blasts, surveying mine sites and even rehabilitating old sites by spraying seeds to begin the process of revegetation.

You don’t have to be on a mine site to have a career in the industry. Lara Garth is an accountant who works as a Financial Controller for Idemitsu Australia Resources. She is based in an office in Brisbane CBD and loves the tangible nature of the industry and the assets she is responsible for. It’s our mission at the Minerals Council of Australia to take Australians beyond the stereotypes and into the real world of mining. Choosing a career can be a daunting experience made easier with access to good information and first-hand experiences. Many of the people we spoke to didn’t know what to expect from mining and couldn’t imagine the opportunities that came their way for world and local travel, new discoveries, lifelong friendships and challenges. There’s so much more to Australian mining careers than many people realise! You can find our More to Mining Careers Guide and other great stories on the MCA’s website: www. minerals.org.au/careers  BBMC Yearbook 2019

Australia’s energy powerhouse does the heavy lifting for the Asia Pacific region – while reducing emissions Senator the Honorable Matthew Canavan Minister for Resources and Northern Australia

he thing I enjoyed the most about the Federal Election campaign in 2019 was that I got to visit lots of coal mines in the Bowen Basin. I have such great respect for the men and women in our coal industry that work so hard to provide wealth for our nation. They often spend weeks away from their loved ones but do honest work to provide for their families and power the world. It is a noble pursuit.

Tragically, over the past year, some have also paid the ultimate price and won’t return home. Our number one priority must always be the safety of workers and I applaud the efforts of the Queensland Government and trade 16

BBMC Yearbook 2019

unions in refocusing on this issue of paramount importance for the men and women of the industry. As I turned up at crib rooms, I was impressed by both the quiet diligence of the average coal miner, plus their smarts. One of the questions I most often received was if the Adani mine was going to happen. This surprised me as many of the miners with a job at an existing mine will likely not work for Adani. But they understand the common sense notion that if an industry does not grow it will die. That was the clear choice at the 2019 Federal Election. On their petrol and diesel-powered journey up to Central Queensland a member of Bob Brown’s convoy tweeted a photo of the Springsure ranges. Their caption read “I didn’t realise that Central Queensland was so beautiful.” It was clear that they had one, probably never visited Central Queensland before, and two, their preconceived vision of Central Queensland must have been very different from what they actually experienced. Perhaps they thought that Central Queensland was a

Mordor-like landscape, strewn with coal mines emitting dark clouds of sulphur, while orc-like creatures emerge from the pits. I got the feeling something was brewing when I got a call from the owner of a business in Yeppoon. This person didn’t even work in mining, but he understood that if these ill-informed activists stopped Adani, that would hurt all of Central Queensland and it would hurt his business. He organised hundreds of people to rally alongside the Stop Adani team within 24 hours. Things remained peaceful but they were a little chaotic. My favourite picture of the election is one of Bob Brown looking very cross with arms folded while someone holds a sign behind him declaring ‘COAL Australia’s biggest export’. That night on the TV was the first moment I thought we could win the election. But bigger things were to come. Just after I got that call, I got a call from Kel Appleton, the publican at the Grand Hotel in Clermont. Kel was enraged that Bob Brown’s activists were calling Queenslanders rednecks and comparing

coal mines to Nazism. I learnt later that he and some other publicans had met the night before and decided to stand up. They sent a letter off to the Courier Mail which gave rise to a series of stories that helped promote their plans for a rally in Clermont. I knew something big was going to happen as I made my way out to Clermont that morning of the rally. I met a lot of people at petrol stations heading the same way. By the time I got out there, I asked Kel what the plan was. He explained that they were going to do the speeches from the balcony of his pub. That would go for a few hours and then they would head down the road to welcome the convoy. I was a bit concerned that people might be drinking and that could allow emotions to get too heated as the activists came to town. In the end, everyone was perfectly behaved, bar a lone, troubled individual the day after the Clermont rally who rode a horse into the convoy’s campsite. While the rally was on, a few guys from my campaign got stuck in the middle of the convoy. One of my team jumped on the CB radio and said “just letting everyone know that the Bob Brown convoy is about 20 km from Clermont”.

The response came back: “is that what all these ‘effin flags are for?”. Our team responded “yep, they’re part of that convoy that wants to stop that Adani mine.” Well, then the CB radio really blasted off. “Look at these hypocrites, they’re driving cars, made of steel, using petrol!” And much more that I can’t print. There is often much more common sense on channel 40 of the UHF than whatever is on your favourite social media channel. I joke that Bob Brown helped us win the election, but the real heroes are the locals who rallied their troops, put their foot down and showed democracy at its best. The events that unfolded at Clermont and around Central Queensland were a demonstration of that democracy. You can have lots of Twitter accounts, but in the end, everyone only has one vote. The greatest thing about the Clermont rally was that it brought us all together. Unionists, publicans, businesses, farmers, the Wangan & Jagalingou people, councils and political parties all rallied to the cause. If Central Queensland can stay united, we can keep changing Australia for the better because there is no doubt these actions helped change the country.

Bill Shorten and Labor didn’t see it coming. I underestimated its impact, but it is there in statistical fact. The swing to the LNP was five times higher in areas with above average coal employment and three and a half times higher in areas with above average mining employment - a statistically significant relationship. I do think the unexpected election result will go down as a major turning point for Australia. We were at a fork in the road. Under a Labor Government we could have turned our back on 60 years of economic development backed by increasing partnerships with the growing economies in the Asia Pacific region, and there would be no new coal mines anywhere. There is still a growing demand for coal, confirmed recently by the International Energy Agency’s latest World Energy Outlook. That report shows that coal demand in our region will grow by an extra 408 million tonnes by 2040, and Australia’s coal production is set to grow by 42 million tonnes over that period. The increased use of Australian coal is good for the world because it helps the growth of economies, produces better social outcomes and leads to enhanced environmental outcomes.

BBMC Yearbook 2019

If we truly want all countries to reduce emissions, we must work towards making all countries rich enough to afford to do so first. We should reduce carbon emissions and the Australian Government is strongly committed to that. However, it is just one of many global goals to help the world. We also believe in making progress on the sustainable development goals of the United Nations. These goals include No Poverty, Zero Hunger, Decent Work and Economic Growth. The greater use of high-quality Australian coal gets us closer to every one of these goals. Whether it is the need to reduce poverty, improve air quality or reduce carbon emissions, the greater use of clean Australian coal, gas and other resources helps achieve all of these admirable goals. Our resources also help improve air quality because they so often replace poor quality fuels in energy production methods. For example, India still relies on biomass for more than 20% of its energy needs. A less diplomatic term for biomass is straw, wood and sometimes dung. All of these, when burnt in household stoves, produce toxic concentrations of particulates that create smog. And often, when coal is burnt, it’s in domestic or small business boilers without modern scrubbing techniques that remove soot first. Australian coal is not burnt in such facilities. Those that pay the cost of importing Australian coal over vast oceans don’t then drop it into primitive boilers – rather, our coal is used in modern coal-fired power stations. You don’t need to believe the theory to understand this. You just have to visit Japan, which is powered by Australian coal and gas but has good air quality because it has become rich enough to afford modern energy production techniques.

BBMC Yearbook 2019

In the case of poverty, we have seen the evidence very clearly over the past 30 years. In our generation and in our region, we have witnessed the most remarkable event in economic history. In the mid-1980s, twothirds of people in the Asia-Pacific region, our home, lived on less than US$1.90 per day, a well-established poverty line. Today, less than 5% of people in our region live on less than US$1.90 per day. Over that same time, the use of fossil fuels in the Asia-Pacific region has grown by more than six times. The use of affordable and reliable energy has helped fuel the economic growth that has propelled so many out of poverty. On these numbers, around two billion people are no longer in poverty thanks to the industrial and economic development of the Asia-Pacific, in part fuelled by Australian resources. For similar reasons, our coal and gas help lower carbon emissions too. Coal from the Galilee Basin will be over 5000 kilocalories per kilogram. Indian coal is as low as 3100 kilocalories per kilogram. So, when a tonne of Galilee coal is used compared to Indian coal, it can produce more than 50% extra energy with fewer emissions. India plans to continue to use coal for decades, so if we don’t use Australian coal, global emissions will be much higher. There is a broader reason why those who truly want action on climate change should support the development of Australian resources. Other countries are not going to prioritise reducing carbon emissions before providing nutrition or housing to their people. We can see that in-built in the Paris agreement, where developing countries have much lower obligations to reduce emissions.

If we truly want all countries to reduce emissions, we must work towards making all countries rich enough to afford to do so first. If we restrict the use of Australian coal and gas that will make it harder for other countries to grow and develop, meaning a longer time before they take emissions reductions seriously. Economists have a word for things like climate change action - they are ‘luxury goods’. People demand more of these types of goods when their income increases. We have seen around the globe that as income increases, demand for climate change action increases, so it is clearly a luxury good on these terms. That means to get more action on climate change we need to increase incomes. We have a moral, economic and environmental duty to responsibly develop our resources to help deliver better outcomes for all people in the world. Thanks to the election result we are more likely to live up to that moral obligation than before, despite certain protest groups who want to enjoy the benefits of the modern world while seeking to deny people poorer than them the same benefits. Their self-indulgence is in stark contrast to the sacrifices made by the men and women of our coal industry. Australia’s coal miners tend to go about their job quietly, but they stood up this year. It is incumbent on governments now to back them and support their jobs. We must also do everything we can to improve safety. In what has been a good year for the coal industry, the loss of life has been unacceptable. Let’s all work hard to build a safe and growing coal industry for the future. 

Patent Pending 2018

Austin Two Piece Excavator Bucket

The worldâ&#x20AC;&#x2122;s first two piece excavator bucket BBMC Yearbook 2019

www.austineng.com

We’ve barely scratched the surface

Kim Wainwright, Queensland Exploration Council Optimism is set to continue among Queensland’s minerals and energy explorers. That’s the headline result from the ninth annual QEC Exploration Scorecard launched in December 2019.

Over the past three years, confirmation of Queensland’s reputation as a worldclass resources jurisdiction combined with more buoyant commodity prices has driven exploration activity.

The scorecard analyses the critical drivers of exploration activity:

In addition, there is strengthening interest in Queensland’s potential to host rare earths, critical and strategic metals seen as building blocks for 21st century technologies.

• • • •

prospectivity and resource endowment the price and outlook for key commodities explorer and investor confidence policy and regulatory stability

As the market drives commodity prices, the scorecard concentrates on lead indicators that can be influenced. These are explorer and investor confidence and access to the essential factors of production.

Queensland’s exploration optimism in 201819 is illustrated by expenditure increases across all major commodities – including a 25% increase in exploration expenditure for coal, 19% for petroleum and 10% for gold and copper.

Table 1: Scorecard snapshot: resource prospectivity/endowment sentiment 2011-19

Queensland’s world-class prospectivity continues as a net positive, with sentiment positive since the first scorecard published in 2011. 20

BBMC Yearbook 2019

This outlook is forecast to continue with 60% of Queensland explorers surveyed planning to increase expenditure or activity, and just 6% looking to downsize. It’s a similar story for drillers, with 92% of those surveyed saying their activity would stay the same or increase in 2019-20. And for the first time since the scorecard’s debut in 2011, explorers were forthright in their appreciation of the assistance provided by the Department of Natural Resources, Mines and Energy. One explorer summed up industry sentiment perfectly saying DNRME is “extremely helpful and a great department to deal with.” The state government’s Queensland Exploration Program has been a welcome boost for industry through its proactive approach to opening new areas for exploration. Importantly, the program recognises that resources companies are best placed to identify the most prospective and potentially commercial areas for investigation. Petroleum and gas exploration opportunities offered in 2019 covered 43,200 km2 - more than double the acreage released at any time in the past.

For the government, the focus is future energy security. They aim to increase Queensland gas supply by earmarking selected land releases for domestic gas only. Potential coal land released comprised ten areas covering 1,100 km² in the Bowen and Eromanga basins. Nine of the areas are in the Bowen Basin, acknowledging the government’s longterm commitment to the development of the state’s premium metallurgical coal reserves. The Geological Survey of Queensland (GSQ) continued working to make its pre-competitive geoscience data among the best in the world. GSQ’s industry support is evident in highly popular initiatives such as the Collaborative Exploration Initiative, now in its twelfth year. GSQ is also working to put Queensland at the forefront of data-driven exploration with its Geoscience Data Modernisation Program to improve access to geoscience data.

The foundations form around a $9.6 million geo-data investment to bring together exploration, geophysical, geochemical and geological datasets to help better understand Queensland’s resource endowment. This includes making a century of geological data more accessible to explorers. The focus is on the North West Minerals Province where, despite the presence of Australia’s second-largest copper mine at Mount Isa and a diverse range of other minerals including zinc, lead and silver, few substantial new discoveries have been made in the past 25 years. Projects include new pre-competitive geophysical surveys (aeromagnetic, radiometric, gravity and magnetotelluric), with data produced over new areas at a higher resolution than ever before. The goal is to ensure that new research, data, technology and products effectively reach those who are actively exploring. All that said, it wouldn’t be exploration if it were plain sailing.

BBMC Yearbook 2019

Table 2: Scorecard snapshot: Labour/skills availability 2011-2019 Once more, increased activity revived familiar challenges such as the limited availability of equipment and labour. Meantime, prices for some of Queensland’s major commodities have softened and policy uncertainty continues to dampen growth. And despite dropping from third to twelfth spot in Canada’s Fraser Institute Best Practice Mineral Potential Index, explorer sentiment towards Queensland’s prospectivity remains strong. Looking to the longer term, it’s an exciting time for Queensland exploration against a backdrop of rising global interest in critical minerals. We broadly define critical minerals as those metals and non-metals vital for the development of new technologies, but subject to supply chain limitations that might include geological scarcity, geopolitical issues, trade policy or other related factors. Among these minerals are building blocks for the manufacture of mobile phones, flat screen monitors, wind turbines, electric cars, solar panels, and multiple high-tech applications, especially in fields such as defence and cyber-security. The importance of rare earth elements and other critical minerals stems from their unique catalytic, metallurgical, nuclear, electrical, magnetic, and luminescent properties. As the demand for critical minerals grows, there are significant economic opportunities for Queensland. 22

BBMC Yearbook 2019

Along with existing projects and significant geological reserves of minerals deemed critical by other nations, Queensland, and Australia are well-placed to capitalise on rising global demand for secure supplies of critical minerals. We are also attracting attention because of world-class expertise in resource extraction and processing, high-tech engineering and renewables research, making us an appealing investment destination with competitive advantages across the spectrum of technical, capital allocation and risk considerations. Such opportunities are in addition to commodities that Queensland is already producing. While not featured on many critical mineral lists, nickel and aluminium are major components of lithium-ion batteries and lightweight metals. The latest reports suggest Australia has moderate to high geological potential in 24 minerals deemed critical by many countries. With the world’s population growing faster than at any time in history, minerals and energy consumption is more than keeping pace as more consumers enter the market and as the global standard of living increases. Technological innovation and exploration are obviously going to play increasingly important roles in meeting new and existing demand. And to be honest, we don’t know what that demand will target.

Exploration is crucial to the long-term success of Queensland’s resources sector, laying the groundwork for long-term investment. With minerals and energy commodities also making up 82% of Queensland’s export value, exploration is profoundly important to the future of the state and national economies.

One historical example is strontium, not widely used until the 1960s when it was found to be the most costeffective means of preventing radiation escaping colour television picture tubes. This new market stimulated extensive exploration and the discovery of many new strontium deposits. And that’s where the Queensland Exploration Council (QEC) fits into the picture covering a diverse and resourcesrich state covering more than 1.8 million square kilometres. The QEC brings the key elements of the exploration sector together in the shared interest of promoting Queensland as a leading, world-class destination for exploration investment. With the ongoing support of QEC’s members, corporate partners (EY, McCullough Robertson, Queensland Government) and the Queensland Resources Council, we are looking forward to playing an increasingly important role in Queensland’s future. From a geological perspective, we have barely scratched the surface of the state’s true resource potential. 

BBMC Yearbook 2019

On the Horizon Bowen Basin mining lease grants, upcoming projects and new players in 2019

BARALABA SOUTH

BLUFF

Fast Facts

Proponent: Baralaba Coal Coal Type: Pulverised Coal Injection (PCI) Production: 3.5 – 5 Mtpa

Proponent: Bluff PCI Management Coal Type: Pulverised Coal Injection (PCI) Production: 1.2 Mtpa

Fast Facts

Baralaba South is a greenfields project by the owners of the existing Baralaba North mine. With the EIS due in early 2020, and production ramping up by 2022, the project will be significantly larger than Baralaba North, employing up to 600 people in operations.

The Bluff project shipped their first coal in mid-2019. The mine, just south of the Bluff township, produces a low-ash PCI product for export and focuses on local employment. In a collaborative venture, the coal is processed at nearby Cook Colliery before being railed to Gladstone for shipment.

The Central Queensland Coal project is a greenfield open-cut coal mine, with a mine life of 20 years. Located 130km northwest of Rockhampton, the project would employ 275 in construction and up to 500 in operation. The two open cut pits will feed two CHPP’s and be transported via a new load-out facility to Dalrymple Bay for export.

DYSART EAST

GREGORY CRINUM

Fast Facts

GREVILLEA (SARAJI EXTENSION)

Proponent: Bengal Coal Coal Type: Metallurgical Production: 1.9 Mtpa

Proponent: Sojitz Coal Type: Metallurgical Production: up to 3.5 Mtpa

Aiming for first coal in 2019, with a mining lease until 2039, Bengal’s Dysart East operation is a bord and pillar underground mine, with 96.2mt of JORC resources. The project employed 200 people in construction, dropping to 180 operational roles.

After BMA ceased open cut operations in 2016, new owners, Sojitz, restarted production in late 2019. The mine, both open cut and underground, is north-east of Emerald and will employ around 300 people at full capacity.

IRONBARK NO. 1

OLIVE DOWNS SOUTH

WINCHESTER SOUTH

Fast Facts

Proponent: Fitzroy Resources Coal Type: Metallurgical/Thermal Production: Up to 6 Mtpa

Proponent: Pembroke Coal Type: Metallurgical Production: up to 20 Mtpa

Proponent: Whitehaven Coal Coal Type: Thermal/Metallurgical Production: up to 15 Mtpa

An underground longwall operation near Moranbah, Ironbark No. 1 will produce 2.6 Mpta of predominantly coking coal, sharing major infrastructure with nearby Carborough Downs. Once operational, the mine will employ more than 350 people.

With an 80+ year mine life, Olive Downs South (near Moranbah) is set to commence in 2020, with 500 employees in the construction phase and 960 once operational. The mine will maximise the use of existing infrastructure, but will construct a CHPP, a rail link, plus water and power transmission lines.

Whitehaven Coal purchased Rio Tinto’s 75% stake in the Winchester South project in mid-2018. The project has a 20-30 year open cut mine life, with coal to be exported via Dalrymple Bay or Gladstone. It is expected the mine will deliver 500 construction jobs, and around 450 operational jobs.

BBMC Yearbook 2019

CENTRAL QUEENSLAND COAL Proponent: Mineralogy Coal Type: Thermal/Coking Production: up to 10 Mtpa

Fast Facts Proponent: BHP Coal Coal Type: Metallurgical Production: Continuation of 55 Mtpa (whole of project) As an extension of the existing Saraji open cut project, the extension will continue to employ approximately 500 people.

Galilee Basin pipeline

ALPHA

CARMICHAEL

CHINA STONE

Fast Facts

Proponent: GVK/Hancock Coal Resource Potential: >1000 Mt Coal Type: Thermal

Proponent: Adani Australia Production: 12 Mtpa Coal Type: Thermal

Proponent: MacMines Austasia Resource Potential: >1000 Mt Coal Type: Thermal

The Alpha Coal project is proposed for the Galilee Basin. In combination with the nearby Kevin’s Corner project, the established JORC resource is 7.9 billion tonnes of thermal coal. The six open-cut pits will produce up to 32Mtpa, with potential for future underground development. The project will employ 3,600 with construction jobs, and 1,700 operational FIFO staff.

After final approvals were granted in June this year, Adani have been full steam ahead with the Carmichael Mine infrastructure, CHPP and mine construction, and 189km of rail line. Six open cut pits and five underground mines will supply markets in Asia, employing 900 people in construction and 700 in operational phases.

China Stone received CoordinatorGeneral approval in November 2018. This project is in doubt after mining lease applications have not progressed, with the project's future 'under discussion' as of May 2019. The project will utilise both open cut and underground mining, with up to three longwalls and an on-site CHPP, with 60 Mtpa ROM coal production.

GALILEE PROJECT/ NORTH ALPHA

KEVIN’S CORNER

SOUTH GALILEE

Fast Facts

Proponent: Hancock Galilee Resource Potential: n/a Coal Type: Thermal

Proponent: AMCI Resource Potential: > 250 Mt Coal Type: Thermal

Located 50km north west of Alpha, two open cut pits and the longwall underground operation will produce thermal coal over 30 years, with the possibility of a time extension.

Thermal coal will be initially mined through an open cut truck and shovel operation and then exported through the Port of Gladstone. South Galilee also has a planned expansion once market demand and the Abbot Point railway system develops.

Fast Facts Proponent: Waratah Coal Resource Potential: >1000 Mt Coal Type: Thermal The project will commence with a 10Mtpa operation. In full operation, North Alpha will consist of two open cut and four underground longwall mines, CHPP’s and a rail spur connection to the Galilee rail network.

BBMC Yearbook 2019

Building a sustainable industry through technology, people and culture Tyler Mitchelson, Anglo American Metallurgical Coal

here is no doubt societal expectations and perceptions are shaping the future of our industry. Over the past decade, we have seen many examples where they have influenced government regulations, approvals, public opinion and company decisions.

We understand the importance of working closely with the communities where we operate and demonstrating how our businesses are responding to social challenges. But we are also looking to the future, and how these expectations will continue to shape our industry in the years to come. The world is going through unprecedented change at extraordinary speed thanks to a revolution affecting markets, technology, demographics, development and social values. Society is facing challenges and risks that are being amplified around the world in a more connected way than ever

BBMC Yearbook 2019

before and our industryâ&#x20AC;&#x2122;s stakeholder ecosystem is becoming increasingly complex as a result. Environment-Social-Governance expectations We expect that the next decade will bring fundamental changes in stakeholder expectations about the way we develop and operate our businesses. This is already becoming apparent in investor discussions, as Environment-Social-Governance (ESG) factors become more prominent. A recent Deutsche Bank study has estimated that by 2020, half of all investment industry assets will undergo ESG screening - up from just 25 per cent in 2015. Consumer behavior is mirroring these shifts in societal beliefs and expectations. For commodities businesses, this is resulting in new initiatives with third party assurance of ESG factors, not only reflecting what is todayâ&#x20AC;&#x2122;s good industry practice, but responding to evolving stakeholder values. Anglo American is at the forefront of this movement, with our De Beers business having helped establish the Responsible Jewellery Council and committing to the sustainable and ethical sourcing of diamonds.

FutureSmart MiningTM We recently we announced our membership of ResponsibleSteelTM – the steel industry’s first global multi-stakeholder standard and certification program – and our Unki platinum mine in Zimbabwe is the first mine in the world to publicly commit to being audited against the Initiative for Responsible Mining Assurance’s (IRMA) Standard. All of our managed mines, including our metallurgical coal mines here in Australia, will be certified through independent rigorous certification processes by 2025. This will provide our customers with the ability to satisfy their ethical sourcing responsibilities, which undoubtedly will become more and more prevalent throughout the world. In recent years, Anglo American has been on a rapid journey in the area of sustainability, in the fullest sense. We are building an organisation that is purposeful, competitive, resilient and agile - and we are doing it through technology, people and culture.

Technology, and innovation more broadly, is already playing a key role in helping our industry become more sustainable. Mining is now one of the most technologically advanced industries in Australia and at Anglo American, we are embracing innovation to drive the next level of mine safety, performance and sustainability as part of our innovation-led approach to sustainable mining, FutureSmart MiningTM. FutureSmart Mining™ applies innovative thinking and technological advances to address mining's major challenges: to be safer, to use less land, water and energy and to be more productive. Across our metallurgical coal business, we are investing in technology that will help us be more sustainable and achieve our goal of zero harm to our people. This includes the current rollout of specialist vehicle alertness technology on haul trucks and water carts at our open cut mines, following a detailed assessment and pilot operation earlier this year.

At our underground sites, we are leading the development and implementation of remote longwall operation from the surface of our mines to remove our people from harm’s way and have also delivered Australia’s first electronic tablet device certified for use in underground coal mines, which provides direct access to our Safety Health Management System and enhanced communication capabilities. But technology cannot be considered in isolation. BBMC Yearbook 2019

2030 Sustainable Mining Plan That’s why sustainability is a key part of our approach, through our 2030 Sustainable Mining Plan. The plan aims to foster innovation and deliver step change results across the entire mining value chain, from mineral discovery right through to marketing our products to customers. It was developed through extensive internal and external engagement and analysis of critical opportunities and risks, including the UN Sustainable Development Goals. Our approach goes far beyond regulatory requirements – it will transform how our stakeholders experience our business, both locally and globally. Anglo American’s Sustainable Mining Plan has three pillars – Trusted Corporate Leader, Healthy Environment and Thriving Communities and it sets global stretch goals designed to challenge us to lead and innovate.

When I look to the future of our industry, I envisage people doing valued work in a cleaner, smarter and more socially responsible way, providing the essential ingredients for modern life.

In the environment pillar, these goals include a 30% improvement in energy efficiency, an absolute 30% reduction in greenhouse gases by 2030 and a 50% reduction in the abstraction of freshwater in water-scarce regions by 2030. Each of our operations is developing a five-year plan to contribute to the achievement of these global stretch goals. We recognise that in order to achieve our vision we must connect with our people through values and purpose. During our conversations about sustainability, it was apparent that if we were going to be able to transform our business in the way that we had set out, we needed to connect with our workforce in a different way than before. We had to connect to the “why?” After an intensive consultation process, with our people and stakeholders, we developed Anglo American’s purpose – which is to re-imagine mining to improve people’s lives. Our purpose recognises that where we are going not only involves a shift in how we mine, but also why we mine. We are embedding this purpose in how we connect with our people and our stakeholders and how we plan and run our business.

BBMC Yearbook 2019

The transformation in our industry over the next ten years will be enormous. And we can’t afford to limit our thinking to ensuring that we have the right skills and the right culture to support the shift to a more technology centric environment. We will need to think about technology, people and culture in the context of reshaping the way we do business. In our metallurgical coal business in Australia we have around 5,500 people across our five mines in central Queensland and we produce approximately 23Mt of hard coking coal per annum (attributable share), which is used in steel production for critical building and infrastructure around the world. Over the past five years, at our largest mine, Moranbah North, we have more than doubled productivity. This is a great achievement from our team, drawing on better systems and processes and an ambitious technology plan. We have been able to integrate this approach into our other mines and have driven significant improvements as a result. The key question for us then becomes where to next? How do we find the next level business improvement as well as embed our ambitious sustainability agenda in an increasingly complex environment? The Anglo American Operating Model We believe the answer is in systems thinking and design. In our organisation we have developed what we call the Anglo American Operating Model. This is essentially our approach to integrating all our business processes and routines to plan, execute, measure and continuously improve our work. We know that planned work is safer, more productive and cost effective than unplanned work. But if you understand your purpose and translate that into plans, I would also say it’s more sustainable work in all senses of the word. In our planning, we have taken the necessary shift required to embed sustainability plans into our traditional mining model. The Anglo American Operating Model will be the way we achieve this as well as our next phase of productivity and safety improvements. If work is not planned, it shouldn’t happen.

But this is only part of the story. We also need an organisational model to ensure the right people in the right roles doing the right work. Supporting a positive culture where our people understand and are equipped to do their work. This starts with understanding where we are today and listening to our workforce’s views on elements of culture, structure and leadership. And the third element is technology – particularly digitisation and integrated mobile technology, which will underpin our broader technology and innovation pathway. Our transformation agenda These three elements – operating model, organisational model and culture and technology development are brought together under one transformation leader reporting to me, with the full support of my leadership team. This transformation program builds on our recent achievements in the technology area, particularly in underground mining where we have recently pioneered advancements in automation, digitisation and health and safety here in Australia. It provides a roadmap for what our business will focus on over the next five years, to achieve our next step change in performance. It recognises that people, technology and culture overlap as essential enablers for sustainable business performance. The program provides me with the comfort that our business is meeting our challenges in a systematic way, where we can work with our people to grow and develop their capability and expertise and attract new people to our business – and ultimately achieve our strategy in a way that is consistent with our purpose – to re-imagine mining to improve people’s lives. Our people are critical to this. As the largest underground coal miner in Australia, we are acutely aware of changing workforce needs, and are driven to create pathways, training and technology that supports mining careers of the future. We are looking at how we create the workforce of the future, through retraining our current workforce and encouraging new skills and experience into our industry - as well as ensuring our organisational cultures encourage diversity of both people and ideas. As an industry it is our responsibility to present a compelling picture about where we are heading, with people and communities as part of the solution.

The solution doesn’t just lie in technology, but looks at what we are trying to achieve through technology in a way that encourages new opportunities and recognizes human impacts, in a way that does not disenfranchise a workforce that has helped us to do some extraordinary things that we can be proud of as miners. This is about improving people’s lives. In my 25 years in mining, never has it been so interesting or exciting to be in mining. Innovation and collaboration are allowing us to solve problems and explore opportunities where we have never before had the tools and the focus to address some of mining’s greatest challenges. When I look to the future of our industry, I envisage people doing valued work in a cleaner, smarter and more socially responsible way, providing the essential ingredients for modern life. It’s a future that is sustainable, and is supported by the critical elements of technology, people and culture.  BBMC Yearbook 2019

Focus turns to Bowen Basin gas

David Kiefer, Arrow Energy

he Surat Basin has been Queensland’s natural gas powerhouse – supplying the east coast gas market and underpinning a massive LNG export industry – but the Bowen Basin has a longer gas history and a significant gas future.

International Energy Agency data shows: • Natural gas supplies 22% of energy used worldwide, and makes up nearly a quarter of electricity generation, as well as playing a crucial role as a feedstock for industry. • World natural gas consumption grew by an estimated 4.6% in 2018, its largest increase since 2010 when gas demand bounced back from the global financial crisis. • The growth was driven by growing energy demand and substitution from coal. The switch from coal to gas accounted for over one-fifth of the rise in gas demand. 30

BBMC Yearbook 2019

Natural gas is predominantly methane, and coal seam gas (CSG) has one of the highest proportions of methane of any natural gas. The Bowen Basin is already producing CSG for power generation and industrial use. The Moranbah Gas Project has been producing gas since 2004. Owned 50-50 between AGL and Arrow Energy (Arrow is the operator), it feeds the North Queensland Gas Pipeline that supplies large industrial customers in Townsville, including the Yabulu gas-fired power station.

The Bowen Basin stands, potentially, as Queensland’s next natural gas powerhouse, supplying a valuable transition fuel towards the looming lower-carbon future.

Coal seam gas advantages

must come from the gas.

CSG is a very portable energy source, transportable as gas via pipelines or, if cooled to minus 161 degrees, then as liquefied natural gas (LNG) that can be carried in ships to anywhere in the world. That’s why CSG is an important Queensland export commodity.

To illustrate the comparative energy, a tonne of good, black Bowen coal – roughly threequarters of one cubic metre – has around 27GJ of energy, so about 36GJ per cubic metre. To get the same amount of energy from natural gas requires the production of about one thousand cubic metres of CSG.

CSG is an industry that can co-exist with Central Queensland’s two great pillars – agriculture and mining. With CSG, the wells go in the ground, drain the gas for 15 to 25 years and, afterwards are plugged with cement, cut off below-ground, and normal activity resumes above. Or below. While the wells are running, they mean additional income from the same land. CSG is a transition fuel that can help carry the world through to nextgeneration technologies like renewable power and clean coal power generation. Coal seam gas challenges Against global LNG competition, CSG suffers the economic disadvantage of being quite a pure energy source. A CSG well produces no commercial liquids, like oil, unlike other LNG projects where up to 50% of the income can come from liquids produced from the gas wells. With CSG, all the revenue

Accordingly, a CSG project needs a large tenure. For example, the Moranbah Gas Project has 600km2 of petroleum leases – and this is a domestic-scale CSG project. Arrow Energy’s proposed world-scale Bowen Gas Project has about 5600km2 of exploration tenure. It’s a large area, and that’s what’s needed to get enough energy from the ground to make a viable project. Whereas a coal mining lease might overlap one CSG proponent’s tenure, about 90% of Arrow Energy’s Bowen Basin tenure overlaps mining tenures, including all the big coal mining operations like Rio Tinto, BMA, Yancoal, Vale, Glencore, New Hope and Pembroke. Arrow presently has 37 co-development agreements with 23 major coal parties across the Bowen – some detailed and complex, and some simple and straightforward, but all fit-for-purpose.

CSG and coal – taking advantage of synergies On the face of it, it’s a great match - coal and CSG have areas of common interests with drilling, degassing, subsurface data and water, so the way is open to share and combine for mutual benefit. Coal companies need to degas before mining, and the CSG industry wants to extract that gas. The devil is in the details – sequencing, access, health and safety, pipelines being affected by subsidence, and so on. However, both sides have approached the issue with goodwill and, a few years ago, hammered out an excellent win-win structure that acknowledged and balanced the interests of both parties. The existing Arrow/AGL Moranbah Gas Project, and Arrow’s proposed Bowen Gas Project, target the Blackwater Group of coals – the Rangal, the Fort Cooper and the Moranbah coal measures. This means wells down to 750 to 800 metres, although the shallowest ones will only be to about 350 metres below the surface. From a CSG point of view, the target coals in the Bowen are quite different to the Surat Basin and require different drilling techniques.

BBMC Yearbook 2019

The Bowen seams, while much thicker than in the Surat, are deep and dense, and not particularly free-flowing for normal, through-seam, vertical CSG wells. Typically, hydraulic stimulation – fraccing – would be used in this situation to get sufficient gas to flow. But that’s expensive. Introducing multi-lateral well techniques For some years, Arrow has been developing and refining deviated, in-seam wells – drilling a bore that angles away from the vertical it descends, until it runs horizontally along the target coal seam, for maybe a couple of kilometres. This method exposes much more of the seam than a fracced, vertical well, so flows more gas. Its use means less wells in total, and wider spacings between them, with resulting lesser impact on surface activities like farm operations. And it reduces the need for the expensive fraccing option. Arrow has extended the basic idea to drilling multiple side-branch bores off the main bore, exposing even more of the coal. These new well types – known as ‘multilaterals’ – can be less expensive than fraccing and reach more coal per well. The design is evolving as techniques are proved and disproved, and lessons are learned from long-term operation. This evolution of design is one of the strengths of CSG. Whereas traditional oil and gas operates very much in the bespoke development, one-shot, right-firsttime, major-spend-up-front space, unconventional development does not. CSG business growth is not about gas volumes; it’s about extraction costs - about proving an ability to drive down unit costs everywhere. A project can begin at a current best point and then improve with techniques, experience and equipment that aren’t available at the beginning. This drives business growth – from a start-up production hub, a field development can then radiate outwards as incremental investment opportunities are proved. A resource that is marginal or unviable today might become core production in 10 years’ time. Or 20 years, or 30 years, as technology and technique is refined. The Bowen Basin stands, potentially, as Queensland’s next natural gas powerhouse, supplying a valuable transition fuel towards the looming lower-carbon future.  32

BBMC Yearbook 2019

Unlocking value through transformation

James Palmer, BHP Mitsubishi Alliance (BMA)

ith a workforce of over 10,000 proud, passionate people, we know that what we do as a business today will determine how our people and the communities where we operate are prepared for the decades ahead.

That’s why we have committed to investing more in our people to create a stronger foundation to realise the future. That means more investment in training and skills development, growing a better culture at BMA and empowering our people and our partners to help us find better ways of working. This also means more permanent jobs. Creating permanent roles We’ve heard the strong calls from our workforce and the local communities to reduce long-term labour hire and create more permanent employment. BHP’s Operations Services has been developed specifically to help answer those calls and is one of the key ways that we’ll do that. 34

BBMC Yearbook 2019

Operations Services continues to create both permanent roles and operational stability for us, to date delivering more than 700 full time jobs within BMA; and we’re recruiting for hundreds more across our operations in Queensland. We’re proud of this achievement and are excited to be welcoming hundreds of new people who are supporting the delivery of a safe, stable and sustainable performance. Importantly, we expect that around half of those people will live in regional communities. While we’re transitioning to a more permanent workforce, at the same time we’re also steadfastly focused on

preparing our people for the future of work. We are keenly focused on helping our existing and future workforces make the most of the opportunities in front of us. We have partnered with the Queensland Resources Council, TAFE and the State Government to deliver training programs to enhance foundational digital skills. At our sites, where the changing nature of work will perhaps be most significant, we have also launched a concerted development program focused on preparing people for the roles of the future. Through this program we’re creating the environment and providing

At BMA, we have a transformation agenda underway that is designed to unlock potential by delivering the next wave of productivity gains, which will in turn further increase capacity across our operations.

people with the tools to be prepared for change so everyone can take control, make their own decisions and shape their futures. This includes learning more about autonomous equipment and operations, transition pathways, training and reskilling requirements. We are also partnering on a number of fronts to tackle the STEM skills gap. BHP has contributed more than $55 million to STEM programs across Australia and we’re proud to see the positive impacts this is already having in Central Queensland. We’re seeing the benefits flow through, with high school students completing Remote Pilot certificates as part of their senior studies and regional school principals touring some of Queensland’s best schools for automation and robotics. Now, they are embedding learnings in their own communities, ensuring students at their schools have access to cutting-edge curriculum. Soon, we’ll see students have the option to study automation at TAFE in Queensland – when, as part of a collaborative effort, we replicate a course that has been created in Western Australia. As we continue to invest in our people and local communities, we’re also looking

to generate more value from our existing operations. It’s vital we do this to in order to keep pace with the progress we’re seeing from our competitors – both in Queensland and around the world. At BMA, we have a transformation agenda underway that is designed to unlock that potential by delivering the next wave of productivity gains, which will in turn further increase capacity across our operations. For an organisation the size and scale of BMA, it’s critical that our operations are competitive at every point in the cycle. We must be safe, stable; and sustainable in order to get the most from our portfolio of seven operating mines in the Bowen Basin, as well as the Hay Point Coal Terminal near Mackay. It’s about maximising the value of our world-class coal assets with best-in-class operational capabilities to create long-term competitive advantage. When we achieve that competitive advantage, it flows into the creation of jobs in Central Queensland as well as regional contracting, procurement and other business opportunities – something BMA is invested in for generations to come.

BBMC Yearbook 2019

Advancements in technology are playing a key role in enabling these opportunities as well as being a major driver of our transformation. For BMA, it will mean everything from increased automation through to greater integration across the value chain. While we’re early on in our transformation journey, we’re already seeing the safety and productivity gains delivered through the latest technologies. Across our operations, geospatial technology using drones now allows us to gather more information about our sites than ever before. We can quickly and accurately measure many things, from bund heights, to stockpiles, review compliance to plan and understand where we need to make changes to improve safety or boost productivity. Most importantly though, drones are making mining safer by deploying technology that removes surveyors from our pits. Now they are out of harm’s way and spending less time driving utes and more time driving improvement and results. Our Coal IROC is another great example of technology transforming the way we work that has created an extensive suite of training and upskilling opportunities for our people – many of whom are long-term miners. Over 50% of the IROC’s mine control team have formerly operated heavy vehicles and now help drive our entire coal supply chain - from pit to port. The IROC has also achieved gender balance from the outset, and above average participation for Indigenous Australian employment – which is important as we play our part in changing the face of mining. As we continue to explore and deploy the latest transformational technologies, we remain deeply committed to preparing our workforce - and the workforce of tomorrow. As we progress it will likely mean fewer operators physically on the equipment, but it will mean more controllers, builders and technicians performing roles that are less routine or physically demanding. Importantly, it will also mean more dynamic and fulfilling careers for our people. Supply chain collaboration There’s no doubt that one of the greatest contributions BMA makes to the places where we operate is engaging our suppliers to solve our challenges and, in turn, stimulate innovation. 36

BBMC Yearbook 2019

These days, we are focused more on establishing a supplier relationship model based on sustainable mutual commercial value, built on long lasting partnerships that unlock value for everyone involved. Developing smaller businesses with us creates shared value for the local communities. We also know that many of the best ideas come from those who are either more agile than us or further advanced on the journey than we are. As we accelerate on our transformation journey we know that we have to embrace new ways of working and new partners to do it with. The BHP Local Buying Program is a great example of this contribution in action. Since its inception in 2012, BMA and BHP Mitsui Coal (BMC) have spent well over 400 million dollars with local businesses through this vital program. We’ve also made it easier for local businesses to competitively bid through a streamlined procurement and payment process that includes 21-day payment terms. We strongly believe that as we work together to partner towards more productive and sustainable relationships we will create a competitive advantage and opportunities that will be hard to replicate. While this is an exciting time for us, we must not lose sight of the need for others to also benefit from the work we do - this is especially relevant in Central Queensland, whether it’s ensuring that everyone goes home safe every day, creating more permanent employment opportunities, investing in training to prepare for the future of work, or prioritising local contracting and procurement. All of these are vital factors in ensuring that we can and will thrive for the long-term and we all have a role to play. We have entered an era that will present significant opportunities for those who create shared value – and significant challenges for those who don’t. At BMA, our greatest priority is to create a safer business that is competitive at every point in the cycle with safe, stable and sustainable performance. We have the future in our sights and I hope this is something we can all focus on together as a collective with an emphasis on creating shared value. 

Supporting research into low emission technology

Mick Buffier, Glencore Coal

lencore’s wholly-owned subsidiary, the Carbon Transport and Storage Corporation Pty Ltd (CTSCo), is continuing to progress its carbon capture and storage (CCS) project in Queensland’s Surat Basin. The project has received grant funding from the Australian black coal industry via the Coal 21 Fund and the Commonwealth Government. Since the project’s inception in 2010, CTSCo has brought together a range of scientific and technical experts from University of Queensland, University of Melbourne and University of Texas to provide independent reviews of our detailed modelling, testing and analysis to determine the suitability of storing carbon dioxide (CO2) more than 1.2km underground. The project will be subject to rigorous Government

environmental assessments and approvals. The CTSCo Project is currently in the final stages of completing a feasibility study and will be seeking regulatory approval to test inject up to 180,000 tonnes of CO2 over three years. This is equivalent to storing / removing emissions from 10,000 Queensland households*. According to the Australian Government’s CCS Storage Atlas, the Surat Basin in Queensland is one of the most prospective locations in Australia capable of storing industrial scale volumes of

CO2, making it a priority area for conducting detailed CCS studies and demonstration projects at scale. As such, the CTSCo Project can contribute to the accelerated development of CCS technology globally as well as providing a pathway for Queensland and Australia to significantly reduce emissions from coal and gas baseload power generation for decades to come. The CTSCo test injection is the first step in proving that CCS technology can be safely, effectively and sustainably deployed in the region.

BBMC Yearbook 2019

Beyond successful test injection, CTSCo is working to apply the learnings, protocols and data from this project to prove up an industrial scale CCS storage site further south in the Surat Basin to store CO2 captured from a nearby coal power station using high efficiency low emission technology. CTSCo has also partnered with Huaneng, who have been successfully operating High Efficiency Low Emission (HELE) technology for over 10 years in China, to equip an existing coal power station in Queensland with post-combustion capture (PCC) technology to capture CO2 for storage in the Surat Basin.

The CTSCo test injection is the first step in proving that CCS technology can be safely, effectively and sustainably deployed in the region.

PCC is part of the group of HELE technologies. A number of technical studies are underway to explore both options. We believe this will provide a technology pathway for materially reducing Australia’s overall carbon footprint, help Federal and State Governments achieve their stated emissions reductions targets, benefit many other industrial CO2 emitters and extend the life of many of the country’s youngest and most efficient coal-fired power generators, leading to considerable cost benefits for households and businesses. The CTSCo project team is continuing to engage openly with the local communities and assess the economic, environmental, social and cultural implications of the project. This has included public consultation sessions in Wandoan to provide information, answer questions and encourage feedback from local stakeholders. Glencore’s participation in a number of low emission technology projects in Australia reflects the International Energy Agency’s (IEA) view that CCS is a vital technology if the world is to meet its greenhouse gas reduction targets. For more information about CTSCo, visit www.ctsco.com.au  * According to the Victorian Government Environmental Protection Authority Australian Greenhouse Calculator, each Australian household generates more than 18 tonnes of greenhouse gases every year: https://www.epa.vic.gov.au/ agc/r_emissions.html#/

BBMC Yearbook 2019

Proud to be part of the Bowen Basinâ&#x20AC;&#x2122;s coal mining tradition.

www.glencore.com.au BBMC Yearbook 2019

‘Fit for Change’ at Jeebropilly Mine

C The ‘Fit for Change’ program transformed the outlook of New Hope’s Jeebropilly employees, in spite of the pending closure of the mine, with a remarkable 100% participation rate.

BBMC Yearbook 2019

oal mining has existed in the Ipswich region for more than a century, providing a livelihood for many generations of miners. But December 2019 will bring with it the end of an era for the Ipswich region with the last operating coal mine, New Hope’s Jeebropilly Mine, shutting its gates after almost 40 years of operation.

With an embedded workforce of 87 people, most of whom have only ever worked in coal mines, a major focus for New Hope has been ensuring that these workers had the skills to move on after the mine closed. Customising a program for Jeebropilly It was clear that no single program would be suitable, given the broad demographic - some workers were looking towards retirement, others were committed to staying in the industry, while some were interested in transitioning into other fields. And of course, it was not only the direct workforce but their families too, as well as the entire community impact that needed to be addressed.

Although Jeebropilly had built a culture that encouraged its workers to be healthy, happy and safe both at work and at home, it was clear there was an air of impending doom as the mine closure loomed large, with many workers at a loss as to what was next. While technical skills were a consideration, the main focus was to ensure all workers had the emotional, mental and life skills to not only survive, but to thrive, after the closure of the mine. Jeebropilly’s Health and Safety Committee, made up of volunteers from every area of operations, took charge of the situation and quickly surmised they needed to hear from the workforce about what was important to them. A comprehensive survey of each worker set up the knowledge base regarding the preferred direction of each person, and what resources they needed to get there. Given the uncertainty around their futures, the Committee decided to take their award-winning ‘Live Well, Work Well’ program to another level, to better suit the diverse needs of the workforce. The original ‘Live Well, Work Well’ program leveraged six key strategies, Movement, Treatment, Thinking, Eating, Ergonomics and Living, to boost awareness of healthy behaviours.

Armed with a wealth of data from the workforce, detailing their hopes and dreams along with their fears, the Committee created the ‘Fit for Change’ program which would not only address the workforce’s concerns but help them thrive after the mine closure. They chose to expand the program to incorporate a Wellness Wheel which, when used effectively, helped create balanced wellness, something the Jeebropilly employees were hungry for.

A highlight of the ‘Fit for Change’ program was the Finishing Well dinner. Former rugby league players Chris Walker and Isaak Ah Mau spoke about life after football, former Australian Women’s Weekly Editor Susan Duncan described her transition into retirement, and FIFO Supervisor Scott Perina discussed transitioning within the mining sector. As the program progressed, the benefits became obvious.

The ‘Fit for Change’ progam

Program benefits flowed

The ‘Fit for Change’ program incorporated a variety of tangible tactics to boost morale and give employees the information and skills they requested. These included:

The ‘Fit for Change’ program transformed the outlook of New Hope’s Jeebropilly employees, in spite of the pending closure of the mine, with a remarkable 100% participation rate.

• monthly toolbox talks with call to action information and handouts • daily pre-start activations, stretches and tools to motivate employees to be in a healthy, happy and safe mindset before shifts • access to onsite physiotherapy and other allied health and wellness professionals. The Health and Safety Committee also brought in subject matter experts to bolster the ‘Fit for Change’ program. Sessions included discussion on health and attitude, finance, the importance of sleep, relationships and family as well as preparing for a change in career. For example, speaker James Woods shared his remarkable story of being left a paraplegic following a mining accident and talked about the importance of staying focussed and making every day count. Other talks and discussions covered men’s health issues, being financially fit for change, the importance of your relationship with yourself and practical sessions on resume writing, cover letters, online job searching and interview preparation and practice – what to do and what not to do.

More than 70% of the Jeebropilly workforce prioritised their health and wellbeing, undergoing bioelectrical impedance analysis and regular health checks, more than double best-practice industry benchmarks. From a health perspective, workers came away with a greater understanding of prostate cancer and its associated risks, as well as a heightened awareness of drug and alcohol dependence. They also gained better practical skills in budgeting and cash flow when transitioning to a new job, how to craft a resume and cover letter and new ways to search for jobs in a digital landscape. Above all, the ‘Fit for Change’ program demystified uncertainty surrounding the employees’ future and gave them a clear roadmap and the tools to either retire, stay in the industry or transition into another field. In fact, the majority of Jeebropilly employees had plotted their next steps well in advance of the closure, including a number of employees who have already launched their own small businesses in preparation for life after the mine closes.

Created on a foundation of transparency and regular communication, the ‘Fit for Change’ program has also allowed the wider community to prepare for the Jeebropilly closure, secure in the knowledge that New Hope was doing everything it could to support employees through the transition. The ‘Fit for Change’ program suspended the forecast dip in morale, with spirits at Jeebropilly acceptably high. The program emphasised the importance of staying focussed on the most important things, particularly prioritising safety. Records show there have been no serious incidents or claims in the period leading up to the closure. Industry potential From an industry perspective there is enormous potential for the ‘Fit for Change’ program to be used, modified or implemented throughout the resources sector. The program is effectively a blueprint or step-bystep guide, allowing organisations the ability to glimpse into the future and see the remarkable potential for lifechanging benefits that are possible after a mine-closure. There are more than 400 mines currently operating in Australia, many that will reach the end of their working life in the coming decade. Repercussions for employees, many of whom have only worked in the mining industry, are inevitable and mine managers will quickly discover there is no one program which upskills employees for all the possible life options after a mine closure.  BBMC Yearbook 2019

Peabody proves the power of people

D Peabody is passionate about smashing the myth that mining is a man’s world. We know that the more diverse and inclusive we make our workplaces, the more productive our employees are.

BBMC Yearbook 2019

espite a challenging year for our North Goonyella underground mining operation, Peabody is powering ahead at our other Bowen Basin mines, employing more locals, recognising key women and celebrating exciting milestones with valued community partners.

our Australian platform. Peabody is passionate about smashing the myth that mining is a man’s world. We know that the more diverse and inclusive we make our workplaces, the more productive our employees are. Not only is it the right thing to do, it makes good business sense.

The company recently welcomed a new President of Australian Operations Marc Hathhorn who will be firmly focused on maximizing the performance of Peabody’s Australian platform to create a strong, sustainable business that can capitalize on the opportunities and weather the headwinds the market delivers.

The Wambo open-cut mine took out the NSW Mining Council’s Excellence in Diversity Programs and Performance Award for a recent employment drive that resulted in 40% female recruitment of new open-cut operators. In NSW we welcomed Rae O’Brien to the General Manager’s position at our Metropolitan underground mine near Wollongong, the company’s first female mine GM. In Queensland we also celebrated the appointment of engineer Megan Kline to one of the most senior operational roles in opencut mining - Site Senior Executive at our Moorvale mine near Moranbah - the first woman in the company to assume an SSE role.

2019 has been a proud year for Peabody’s concerted efforts to improve gender diversity across

“Rae has made an outstanding contribution in various senior roles across the mining industry over the

this year,” Peabody’s President of Australian Operations Marc Hathhorn said. Megan is an impressive mining manager who is not only a strong leader for our Moorvale team, but is also determined to create pathways to encourage other women into mining.

past 25 years and has led the way as the first female in NSW to gain the 2nd Class Mine Manager’s Certificate, the first female Underground Production Superintendent, and the first female to gain her Underground Coal Mine Manager’s certificate earlier

“I believe the sky really is the limit for women who want to pursue trade and professional roles in the resources sector. At Moorvale we have women working in just about every facet of the business, from the workshop, to driving trucks and excavators or playing key roles in finance and travel,” Megan commented recently. “I’ve told my team that I want to see capable women short-listed for roles and go through the recruitment process so that Peabody can reap the rewards of a diverse workforce.”

2019 has also seen Peabody formalise its strong commitment to offer young people from the local communities in which we operate career paths into mining. We’ve committed that apprentices employed at a number of our mines will come from local communities, and recently welcomed twelve people to entry-level positions as truck operators at our Coppabella and Moorvale Mines. We were excited this year to mark over a decade of financial support to key community partners the CQ Rescue Service and the Queensland Youth Orchestra (QYO). Peabody understands how fundamental music can be in training young minds for the jobs of the future and have been proud supporters of the QYO’s regional performances for the past 15 years. We

were thrilled to once again sponsor the Orchestra’s annual tour of mining communities, delivering world-class musical performances to more than 1,200 regional school students in communities like Mackay, Moranbah, Nebo and Glenden. What better way to mark our tenth year supporting the lifesaving work of the Rescue Service than to arrange a special September chopper landing on the sports oval at the tiny Coppabella State School. Coppabella and Valkyrie State School kids were invited inside the high-tech machine and asked questions of the dedicated pilots and emergency medical crews of the Rescue Service. We thank Peabody’s employees, their families and our community partners for their loyal support in 2019. 

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BBMC Yearbook 2019

QCoal’s million metres breaks new ground in exploration

An interview with Christopher Wallin, QCoal Group

Coal Group is an independent Queensland-based company that has been active in coal exploration, discovery and development for over 30 years. While the group is well known for opening several new mines in the northern Bowen Basin, QCoal is proud of its beginnings as a small exploration company. In 2019 the QCoal exploration team drilled its millionth meter of exploration drill hole in the Bowen Basin. While mine openings and the contribution of coal exports to the economy often grab headlines, both are built on the back of years of scientific exploration. We had an opportunity to learn more from Christopher Wallin, Managing Director of QCoal Group, about how QCoal has achieved the incredible milestone of the millionth meter. A million meters of exploration drilling is a huge achievement. Can you explain the process of drilling an exploration hole for those of us unfamiliar with it? There is a lot of work that happens before drilling in any exploration program – engaging with property owners, cultural heritage and extensive desktop and ground studies. We conduct drilling as part of an advanced exploration program. The drilling method deployed depends on the type of rock and the information sought. The degree of disturbance around the hole varies with each method, and strict environmental safeguards ensure drill sites are rehabilitated after the completion of drilling. At QCoal we deploy truck-mounted rigs and a combination of air drilling (for chip holes) and diamond drilling (for core holes). In all drill holes, the loose soil or weathered rock at the top is ‘cased off’ with PVC or steel pipe to stop caving of loose material into the drill hole. It’s important to appreciate how challenging drilling can be, in particular, if part of the core is lost or becomes stuck in the hole. Also, surface sand or gravel can make the task of setting the casing very difficult. Our drilling contractors are a critical part of our exploration team. Many have worked with us for over 20 years and have an amazing knowledge of the geology we work with. 44

BBMC Yearbook 2019

You are clearly passionate about coal exploration, but it seems like an expensive and difficult process. What prompted your decision to start your own business? I started my career with the Coal Section of the Queensland Mines Department conducting exploration programs across Queensland. Once I left the Government, I worked for a small mining company managing their exploration programs. After many years, it prompted me to start my own business so I could focus on exploration in the Bowen Basin. I saw large, public companies make decisions about exploration that were often made for financial reasons, meaning the focus was generally on short-term results. Whenever there was a downturn in the coal price, the exploration team would be amongst the first to lose their jobs. I felt that they were missing many large discoveries because they didn’t spend time to really understand the geology. At QCoal, we have a worldclass exploration team. What people often miss when new mines open is how many years of exploration and scientific research go into that moment. We ensure the geology of a deposit drives our approach. It may take longer to understand a deposit fully, but that is why we have been able to discover deposits that others have missed.

How has the QCoal approach to geology impacted on the business? I think achieving the milestone of a million meters of exploration drill hole answers that question. For an independent, Queensland company to achieve a million meters of exploration drilling demonstrates our commitment to exploration in all economic conditions. As far as I am aware, we are the only company in the Queensland coal industry who has maintained our geological team throughout that period and continued with an uninterrupted exploration program. This has certainly meant challenges. Exploration is expensive, and the odds of discovering large, undeveloped, open-cut coal deposits located in close proximity to infrastructure in the Bowen Basin are very slim. New discoveries are typically small and generally in structurally challenging coal measures. We undertook an exercise to try and calculate those odds some years back. We looked at all of the exploration projects in Queensland over a 20-year period and worked out the likelihood of them transitioning to operating mines. Fewer than 1% made the transition.

For an independent, Queensland company to achieve a million meters of exploration drilling demonstrates our commitment to exploration in all economic conditions.

The QCoal team has been exploring in the Bowen Basin for over 30 years. What changes have you seen in exploration over that period? As is the case across the mining industry, the past three decades have seen a very positive increased focus on safety in exploration. Technological improvements have also meant our exploration team can locate and map drill sites and model geological data much more quickly than was historically possible. Now that you have several mines operating, will QCoal continue to invest in exploration in Queensland? Our geological team are actively exploring today and will continue to do so. The tenure regime has changed so that areas for coal exploration cannot be simply applied for any longer. Rather the Government periodically offers areas for expressions of interest and this is a much slower process. Fortunately, we have a number of highly prospective areas to keep our team busy for now. We often hear that there is a shortage of exploration geologists. How are you dealing with this? Across the board, there are fewer and fewer students studying geology, and within that shrinking cohort there are very few who go on to be exploration geologists. The challenge is that exploration

geology is a very specific skill set, and it can be difficult to train someone who doesn’t have a passion for it. Our geological team are passionate about scientific discovery and mapping the earth’s geology. We need to ensure we capture an accurate picture of the geology premining because this is the geological history of the planet that can’t be replicated. We are fortunate that our team has been stable across the last 30 years, allowing us to preserve our geological understanding in-house. We also maintain external networks with various universities and the Geological Society to support the profession. We also support students in geology and other scientific disciplines through the QCoal Foundation Scholarship with James Cook University. How has your experience as a geologist informed other parts of your life? The first time I travelled in regional and remote Queensland for any real length of time was as a young geologist. There was much time spent working alone in the bush or working with a drill rig and a small team in hot and challenging circumstances. I love the natural landscapes in Queensland, but the isolation was always a factor, and we had to be careful because if you are injured on an exploration

program, you are generally a long way from help. I think this experience has really informed both my respect for the individuals that live and work on the land, as well as my keen awareness of the varying levels of availability of services in rural and remote communities. As a result, I have been a long-term supporter of the Royal Flying Doctor Service in Queensland. I also harnessed this experience in my role as Chair of the QCoal Foundation and really champion programs that bring additional services to regional communities, like the RFDS Dental Service. 

What is air drilling? Air drilling uses compressed air to drive a rotating percussion drill bit, which operates in a similar manner to a jackhammer. The drill bit is typically fitted with numerous hardened protrusions that crush the rock at the bottom of the hole. It produces rock chips that are lifted to the surface by compressed air. The rock chips are then logged by our exploration geologists to give us an understanding of the underlying rocks and coal seams. What is diamond drilling? Diamond drilling is required to take core samples (a continuous cylinder of rock) for resource mapping, mine planning and quality analysis. Diamond drilling uses a rotating drill bit that uses water and drilling fluids to cool and lubricate the drill bit. As the drill rods advance, the cylinder of remaining rock gradually becomes enveloped by the drill rods. The core of rock is logged by an exploration geologist, and samples are sent for laboratory analysis.

BBMC Yearbook 2019

2019 BBMC Luncheons: Reviewed

e kicked off 2019 by celebrating our 50th luncheon in Mackay. With the year’s luncheon series spanning five Mackay events plus our annual Rockhampton luncheon, there was plenty of new information flowing from all levels of the industry.

Our speakers were experts in engineering, procurement, operations, asset management and technology, speaking to topics ranging from the future of the Bowen Basin to the importance of safety and community engagement. Joining our ever-growing list of speakers in 2019 were: • Dr Paul Buddery, Principal Underground Geotechnical Engineer, Anglo American • Maryanne Webb, Sourcing and Contracts Manager, Anglo American • Chris Bourke, General Manager Mining – Queensland, Thiess • Glenn Prosser, Manager Group Supply Chain Contracts, Thiess • Joshua Harris, Procurement Manager, Glencore • Stasia Willoughby, Hail Creek Contracts Co-ordinator, Glencore • James Palmer, Asset President, BHP Mitsubishi Alliance (BMA) • Peter Donaghy, Queensland Director Coal GeoResources, DNRME • Stephen Broad, General Manager Asset Management, Yancoal • Peter Burton, Procurement Manager, Yancoal • Michael Gray, Project Director, Bluff PCI Management • Fernando De Mattos, Head of Technology Coal, BHP • Darren Walker, General Manager Resources Development, U&D Mining • Brett Garland, Director Minerals Industry Safety & Health Centre, UQ Sustainable Minerals Institute If you missed one of our luncheons, we’ve provided wrap-ups over the next few pages. Keep in mind that members of the Bowen Basin Mining Club have access to the actual presentations from past speakers (when we are authorised to release them), a valuable source of industry intelligence and information. Join for free at bbminingclub.com, and then find the Past Events page. Don’t miss our 2020 luncheon series, which is already shaping up to be bigger than ever as we celebrate 10 years. Make sure you’re following the Bowen Basin Mining Club on Facebook or LinkedIn to get up-tothe-minute alerts on speaker announcements, ticket sales and event wrap-ups. We can’t wait to connect you with the information you need to know in 2020. 

BBMC Yearbook 2019

Airlie Beach Collinsville QCoal Northern Hub

Newlands

Mackay

Hay Point Coal Terminal

Hail Creek Broadmeadow

Goonyella Riverside Moranbah North Grosvenor Poitrel Caval Ridge

South Walker Creek Daunia Peak Downs

Clermont

Lake Vermont Saraji Middlemount

Norwich Park Gregory Crinum Blackwater

Yarrabee Curragh

Capcoal Open Cut Grasstree Jellinbah Plains Bluff PCI

Rockhampton

Rolleston Dawson

Bundaberg

Where do our speakers operate? Glencore BHP

Sunshine Coast

Anglo American Thiess Yancoal

Brisbane

Bluff PCI

BBMC Yearbook 2019

Spotlight: Anglo American’s Futuresmart™ Mining Here to Stay February BBMC Luncheon Presentation

nglo American’s Futuresmart™ Mining, their innovation-led approach to sustainable mining, started the year’s luncheon presentations in style, addressing a record turnout at the BBMC’s 50th luncheon event. Dr Paul Buddery, Principal Underground Geotechnical Engineer, and Maryanne Webb, Sourcing and Contracts Manager from Anglo American outlined a clearly articulated path to Anglo American’s future, improving their company-wide processes and aligning their values for game-changing leadership in the industry. In response to the global drive for a more sustainable approach to mining – economically, socially and environmentally, Anglo have articulated a new approach to innovation and technology that addresses mining’s major challenges. The focus is to identify where value can be realised quickly through the smart application and adaptation of technology. To illustrate how this is working on the ground, Dr Buddery detailed collaborations already underway at Anglo American’s underground sites in the Bowen Basin where the company was partnering with suppliers to test and refine innovative ideas. Demonstrating collaboration in action with their suppliers Jennmar and Nome Services, Anglo American were finalists in the Collaboration Category at the 2018 Queensland Mining Awards.

In Anglo American’s open cut operations, the company is constantly challenging benchmarks. Improving shovel performance, optimising dragline operation and increasing truck available hours is an everyday occurrence. Dr Buddery threw out a challenge to suppliers and contractors in the audience to bring forward all and any proposals for not just cost savings and efficiencies, but new and radically smart, transformational ideas in both open cut and underground operations. “If you’re a supplier with a smart idea, come and talk to us about it, because we know we don’t have the monopoly on good ideas. If your idea will drive step-change improvements across our business, we’re all ears.” Ms Webb highlighted Anglo American’s determination to make a difference in local communities and areas of operations powering the world and improving lives. “We’re working with our suppliers and business partners to help achieve our purpose of reimagining mining to improve people’s lives. We strongly believe success is about a diverse supplier base with businesses of all sizes, and linking the right ideas together to make a difference,” said Ms Webb.  BBMC Yearbook 2019

Spotlight: Thiess creating lasting value through a strong focus on community partnerships March BBMC Luncheon Presentation

ining industry corporate sponsorships change lives. In March, Thiess highlighted the importance of innovative social responsibility programs, and the need to build strong foundations in communities to sustain labour supply to the industry in the long term.

Chris Bourke, then General Manager Mining – Queensland, shone the spotlight on Thiess’ strong community partnerships, which include: 1. ‘Hear and Say’ delivers the Hear to Learn – School Hearing screening to primary schools in regional Queensland. So far, the Thiess partnership has helped the organisation to screen 1000 children in 16 schools and have discovered that more than 30% of children are experiencing some level of hearing loss. This can manifest in learning and behavioural difficulties as childhood progresses, so early diagnosis and treatment is key to helping children to reach their full potential in their school years. 2. The Clontarf Foundation supports young indigenous men to get into schools and commit to completing their education. This leads to further training and employment opportunities and allows them to reach their full potential in the workplace. Since 2000, the Foundation has assisted 6,500 boys in 97 schools across Australia. 50

BBMC Yearbook 2019

3. Sisters in Mining Program assists local indigenous women to play their part in the mining industry, with the co-operation of The Salvation Army Employment Plus. Through a pre-employment program and traineeships, women are able to gain experience in haul truck operations at Curragh. The Program has won several national awards. Denika Sticklen, a graduate of the Sisters in Mining program and Thiess operator also took the stage and passionately outlined the changes in herself and her community as a result of her participation – and where it will take her in the future. Attendees gained an appreciation for the benefits that flow to not only the individual, but whole communities where the ‘Sisters’ live and work. Thiess Supply Chain works locally Glenn Prosser, Manager, Group Supply Chain Contracts for Thiess encouraged suppliers to talk with the company about ways that Thiess can increase local spend. In 2018, more than 300 Bowen Basin suppliers were engaged for work and Thiess is keen to engage with even more suppliers going forward. Although Thiess identify as an international business with a global supply chain, they aim to work locally if possible, recognising the value of face to face relationships. Glenn stressed local support and relationship-building is what produces sustainable business and encouraged suppliers to understand their own intellectual property – what it is that makes them unique and innovative. 

Spotlight: Glencore Group reveals growing community footprint May BBMC Luncheon Presentation

oshua Harris, Procurement Manager with Glencore’s Australian coal business, revealed the impressive results of Glencore Group’s intensive internal research project to May’s sold-out luncheon event. He revealed that suppliers represented in the room accounted for almost a billion dollars of direct spend by the coal business in 2018. Joshua explained, “We’ve undergone a major change in mindset as a result of our research. We understand and accept that to help maintain our social licence to operate, we need to better demonstrate our contributions to communities.” Research Results Although Glencore have been operating in Australia for 20 years, until recently there was only a superficial understanding of the company’s relevance to the everyday lives of the communities where Glencore operates. Drilling down to postcode level, data was mined across Glencore’s geographical spread, and aggregated at local government, regional, state and national levels. The resulting numbers took many by surprise, including the fact that Glencore buys goods and services from more than 1400 companies in the Bowen Basin, with almost 1000 of these in the Mackay Local Government Area.

Glencore’s Community Investment Program Joshua also provided a snapshot of the Glencore coal business’s Community Investment program, under which 40-plus community partners in health, environment and education benefit from almost $5 million invested annually in Queensland and NSW. Joshua detailed Glencore’s procurement and payment processes, emphasising the autonomy of each site in a decentralised structure to do business locally wherever possible. Hail Creek Mine development Stasia Willoughby, Contracts Co-ordinator at Hail Creek Mine, Glencore’s 2018 acquisition, also outlined the next 18 months of planned development for the site. Terracing will replace dragline operations, and expansion operations along the Eastern Margin of the site are about to commence tenders for early works. Both initiatives will result in significant cost savings, and major opportunities will be available for contractors and suppliers. BBMC Yearbook 2019

Spotlight: Safety gains and shared value – BMA’s bright future July BBMC Luncheon Presentation

he industry-wide safety reset was at the forefront of the conversation at July’s BBMC luncheon, following the tragic loss of six lives in the Queensland mining and quarry industries over a 12-month period.

PHONE: (07) 4998 5696 EMAIL: conveyors@mcequip.com.au

BBMC Yearbook 2019

Safety never stops – but, at BMA, we are encouraged by the statistics for the last quarter, which tell us that we are improving, by setting standards we can be proud of!

James Palmer, Asset President BHP Mitsubishi Alliance (BMA), who addressed a full house, shared how BHP had held nearly 1,200 safety sessions as part of the resets, reaching over 11,600 people across BMA and BHP Mitsui Coal. The resets also provided an opportunity for BMA to review their own safety standards and refocus on its life-saving critical controls. “To be candid, we recognise we have more work to do – and we can’t ever be complacent about safety,” James said. “Safety never stops – but, at BMA, we are encouraged by the statistics for the last quarter, which tell us that we are improving, by setting standards we can be proud of! “As we always say to our people, our achievements and performance mean nothing if we don't all go home safe at the end of the day.” Performance During the luncheon, James also shared that BMA, the world’s largest seaborne provider of metallurgical coal, had a very strong year in FY18, with $1.5 billion paid in royalties in Queensland. James also talked about BMA’s focus on unlocking latent capacity within its existing portfolio and how an

Asset-wide transformation agenda will make it possible. ‘People’ was the first, and most important, element of this agenda. “We know that what we do today will determine how our workforce and our communities are prepared for the decades ahead,” James said. “That’s why we have committed to investing more in our people, to create a stronger foundation to realise the future. “That means more investment in skills building and training, spending to build a better culture at BMA, and empowering our people and our partners to help us find better ways of working, and it also means more permanent jobs.” The Future The second element of BMA’s transformation agenda that James spoke about was ‘technology’. In particular, increased automation and greater integration across their value chain. He shared many examples where technology is already delivering safety and productivity gains – including drones that are now quickly and accurately measuring and monitoring everything from bund heights to stockpiles. “By deploying technology that removes surveyors from our pits, they are out of harm’s way,

and spending less time driving utes and more time driving improvement,” James said. BMA’s study into the potential to implement autonomous haulage across its open-cut operations was also a key focus. “Critically, we also see immense potential for this technology to make our people safer,” James said. “It’s also vital for us to keep pace with progress we are seeing from our competitors around the world – including here in Queensland.” As part of its transformation agenda, James also spoke of the need for BMA to engage more with its suppliers and contractors to solve challenges and stimulate more innovation. “Growing smaller businesses – like yours– with our own, creates shared value for our local communities,” James said. “We also know that many of the best ideas come from those who are either more agile than us or further advanced on the journey than we are. “As we accelerate on our transformation journey, we know that we have to embrace new ways of working and new partners to do it with. “Looking, listening and learning beyond our business and industry.”  BBMC Yearbook 2019

Spotlight: Mining projects moving forward as the sector gets smarter September BBMC Luncheon Presentation

he enthusiastic turnout of 240 contractors, suppliers and industry leaders, gathered at the standing-room only luncheon at the Rockhampton Leagues Club, clearly illustrated the importance of the mining sector in Central Queensland.

Peter Donaghy, Queensland Director of Coal GeoResources for the Department of Natural Resources, Mines and Energy (DNRME) detailed activity around mining lease applications in Queensland in 2018, which soared to 19 in comparison to single digit numbers in the previous few years, signalling a positive future for the sector. Peter outlined growing investor confidence for both long-term brownfields expansions and greenfield operations, evidenced by the 25 Queensland-based advanced projects now in the exploration and construction pipeline. See our ‘On the Horizon’ spread on pages 24 and 25 featuring upcoming projects in both the Bowen and Galilee Basins. Peter urged the audience to actively promote their good news stories through all communication channels. The effect of social media on the industry is increasingly important, as Adani’s story so well illustrates, and from a DNRME perspective, positive and constructive media management and a united front have proven to be the most effective strategies for gaining a social licence to operate. 54

BBMC Yearbook 2019

Stephen Broad, GM Asset Management and Peter Burton, Procurement Manager for Yancoal treated the bumper audience to an insider’s look into the ways in which the company has turned around assets and innovatively managed FOR costs on every site. Yancoal is now in the top 10 of lowest cost producers in Australia and is firmly focused on the coveted No. 1 spot in coming years. Yancoal’s determined approach to taking Tier 3 cost control mindsets into Tier 1 operations has seen Yancoal ‘shift the needle’ positively over the medium term and is a strong strategy to buffer the company against fluctuating prices and demand. One example is pushing equipment availability to higher levels, through clever maintenance, shutdown and shift arrangements. A study of shift practices alongside maintenance schedules, for example, resulted in changed arrangements for scheduled maintenance which reduced unplanned breakdowns. Changes to refuelling, shift change over, and hot seating activities combined to contribute to an extra three hours of production per 24 hours. Yancoal’s Group Procurement Team, headed by Peter Burton, Procurement Manager, strives to ensure that the business is wellplaced to take advantages of the synergies of being Australia’s largest pure play coal mining company. At the same time, the team is mindful to ensure support for the regions where Yancoal is operational. Shared value is a core concept that drives Yancoal procurement decisions, from identifying the source through to supplier payment. Yancoal quantifies value as:

• •

Hard Metrics • price • timeframe • capacity Soft Metrics • experience on similar scopes • innovation • risk mitigation • scale of supplier • quality, safety and environmental record • acceptance of commercial terms • local workforce • community engagement programs

Yancoal’s external spend for the Bowen Basin exceeds $190 million per annum, spread across 450 different suppliers, 75% of whom are Queensland-based. Procurement activities are spread over strategic and operational streams. Category Management teams, comprising Category Managers, Procurement Specialists and site stakeholders manage source to pay processes, to support and improve supplier relationships. 

Yancoal’s external spend for the Bowen Basin exceeds $190 million per annum, spread across 450 different suppliers, 75% of whom are Queensland-based.

BBMC Yearbook 2019

Panel Discussion: 2020 and beyond November BBMC Luncheon Presentation

ntroducing an end-of-year change of format, BBMC closed out a successful program of events for 2019 with a panel discussion, addressing the enthusiastic audience at Souths Leagues Club.

The Panel Fernando De Mattos Head of Technology Coal, BHP Brett Garland Director, Minerals Industry Safety & Health Centre, UQ Sustainable Minerals Institute Darren Walker General Manager Resources Development, U&D Mining, and Deputy Director, Queensland Exploration Council Michael Gray Project Director, Bluff PCI Management The Discussion Innovation First up, the panel considered the opportunities and challenges created by emerging innovation and technologies, particularly those that stand to alter the mining industry’s future. From Fernando’s perspective, the opportunities arising from initiatives like the Driver Safety System offer exciting possibilities. Fernando also noted that BMA’s plans to implement autonomous haulage at Goonyella Riverside had been met with support at the site, particularly the safety benefits and career opportunities. He also said no staff would lose their job as a result. In discussing the difficulties for smaller suppliers and contractors to gain a foothold in the industry with their innovations, the panel stressed the importance of placing a priority on involvement in METS hubs and facilities. Another suggestion was that it could

BBMC Yearbook 2019

sometimes be more viable to test new products and innovations through smaller, greenfield projects. Safety The paramount importance of safety has been at the top of the industry’s agenda this year. Ensuring our people get home safely has never been more important. The panel shared their outlook on this year’s industry-wide safety reset, reflecting that: • In everyday practise, we need to be asking the fundamental (aka ‘stupid’) questions on-site and at every opportunity – this creates the inclusive culture that allows an authentic safety conversation. • Safety training needs to move from a ‘tick and flick’ exercise to ensuring people absorb the learning and can apply it in the field. • People’s personal circumstances are not taken fully into account as part of operational safety, and this is an area for improvement.

• The industry needs to move from a ‘blame’ culture to one of learning from an incident, then pushing out the information to the workforce, to prevent recurrences. • Safety procedures are necessary and laudable, but can’t replace constant vigilance, and the awareness that probabilities, no matter how obscure, do happen.

those extended timelines are key to long term success.

Approvals

Skills shortage

An overarching theme emerged from the panel that, although the approvals process is notoriously rigorous and long-winded, (and nobody appreciates moving goalposts), the overall outcome for Queenslanders is world-leading standards in environmental stewardship and community safety. In many other countries, people are still losing their livelihoods and even their lives due to unregulated coal production practices.

The industry is acutely aware of the current scarcity of graduate engineers, the fact that mining engineering faculties around the world are closing, and the resulting future shortages. The panel agreed that fundamental changes are needed in employment policies that embrace and address current and future generations mindsets, in order to attract talent.

That said, throughout the process, it’s vital to be relentless in knocking on doors, always keeping the end goal in mind, and remain realistic about the inevitable extended timelines. Developing relationships with suppliers and collaborators that will withstand

The importance of maintaining a positive social licence during development is becoming increasingly paramount. The panel urged each individual to stay aware of the positive facts and be ready to tell their story with pride, to combat the pessimism and emotion that tends to bury the facts in negative social interactions.

For example, having more than one set of skills to be able to move careers over several sectors is seen as a critical priority for today’s graduates. One employer or one job for life is no longer a desired scenario, and loyalty which goes both ways is not an essential attribute. Several panel members stressed the

imperative for attendees to champion the mining industry in their own worlds. This means taking opportunities to talk in schools and other student bodies about the realities and possibilities that the sector offers, and that an engineering degree doesn’t necessarily lead exclusively to an engineering career. Looking to 2020 Fernando de Mattos – “We’re all becoming technologists in some way. 2020 is going to be more productive – it’s back to the future for us.” Brett Garland – “Human factors in automation is going to be a growth point. Technicians who fix and maintain our automations are going to need specialised skills, including how to work in hazardous situations.” Darren Walker – “The boom in critical minerals is on the way, and there’ll be money flowing for development and rollout. Buckle up!” Michael Gray – “There will be a swing back in price and interest in coal (and other commodities), as a result of the realisation that there is a distinct shortage and delay in new supply.” 

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BBMC Yearbook 2019

The Adjacent Possible: technologies to change our future Peter McCarthy, AMC Consultants Pty Ltd This article is adapted from the October 2019 AusIMM Bulletin.

he greatest challenge our industry faces today is the growing public antipathy to mining projects, exacerbated by events such as tailings dam failures and facilitated by social media.

We can overcome this challenge by changing the way we operate through technical innovation and better two-way communication with our community. We also need to revisit the concept of value, and to question the drive for large developments to achieve economies of scale. To understand the opportunities, we must explore the concept of the ‘adjacent possible’ - the new and emerging technologies that have not yet been adopted by the minerals industry. What is ‘adjacent possible’? Biologist Stuart Kauffman introduced the idea of the ‘adjacent possible’ in relation to prebiotic chemical combinations, which are all the possible combinations that could arise from a primordial soup. Author Steven Johnson took this further in his 2010 book Where good ideas come from, saying the adjacent possible is “a kind of shadow future hovering on the edge of the present state of things, a map of all the ways in which the present can reinvent itself.” 58

BBMC Yearbook 2019

The electric battery revolution and digital transformation of industry (Industry 4.0) are two parallel streams that are coming together. High-capacity batteries and smart communication will rapidly change the way we operate. It’s like bringing together gliders and internal combustion engines in 1903 to create powered flight. Past innovation in mining Sometimes, several important micro-innovations combine into what amounts to a single new concept. In the minerals industry, we can highlight some of the many examples: • 1712: Thomas Newcomen, an ironmonger who knew what was possible with new iron technology, developed the first practical steam engine for mine pumping. • 1831: William Bickford, a Cornish merchant, invented safety fuse from an idea he got by visiting a rope maker. • 1904: Daniel Jacklin, at Bingham Canyon in Utah, applied railway technology, including locomotives and steam shovels, to revolutionise open pit mining. • 1956: Robert Acre developed ANFO following analysis of the accidental 1947 Texas City ammonium nitrate explosion. • 1971: Boliden mine operated the first autonomous diesel trucks underground, using mainframe computer technology that had just become available.

To understand the opportunities, we must explore the concept of the ‘adjacent possible’ the new and emerging technologies that have not yet been adopted by the minerals industry.

Importantly, in each case, the innovation came from observation or application of an existing technology in the adjacent possible.

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BBMC Yearbook 2019

Today’s adjacent possible In January 2019, Rio Tinto announced that they would be establishing a think tank to be named the Pioneer Hub in Brisbane and will consider partnering with technology companies like Microsoft and Apple (Gray, 2019). When looking at broader innovations around the world, we have recently learned that: • The use of hydrogen as a fuel for mobile equipment is becoming practical. • A Birmingham, UK team is part of a consortium of academics and businesses developing quantum gravity sensors or gravimeters that will be twice as sensitive and 10 times as fast as current equipment. According to the team, quantum technology could ‘transform the world in ways we can barely imagine’ (Bowler, 2019). • Bill Gates is leading a coalition of billionaires to create a ‘Google Maps for the Earth’s crust’, specifically for mineral exploration (Farchy, 2019). • Photon assay technology provides a chemistry-free, non-destructive assay in minutes. It has the potential to replace conventional fire-assays. Now imagine drones carrying ore, flying out of a portal high on a mountainside, across some jungle and a wide river, to a plant or railhead! It would look like a European wasp nest. We have drones today that could do that job, and the costs are not outrageous. We would need continuous mining machines producing finely broken ore and loading it into containers for the drones to carry. Is that the adjacent possible? Emerging technological solutions Many of the operational problems the sector faces have emerging solutions: • Highly selective mining, using rock cutting machines and belt sorting, will reduce the amount of rock going to processing and tailings storage. • New dry processing techniques will reduce the size of wet tailings dams (though they may bring new dust control challenges). • New processes will be found to turn some rejected material into useful products such as bricks, pavers and tiles. 60

BBMC Yearbook 2019

• Selective underground mining will greatly reduce the surface impact of mines and their associated waste dumps. • Mining orebodies slowly, over several decades instead of as rapidly as possible, will establish community support and reduce initial capital costs. The need to manage project risk was well understood in the past. A small mine was built, often with second-hand plant, and then cash flow from the operation, or equity funding from the now-reassured investors, was used for a series of expansions and optimisations. If there was a problem with the initial ore reserve or cost estimates, the exposure of shareholders to this problem was minimised and managed. We can maximise net present value (NPV) by going in big, but that is the approach that has alienated society. Smaller mines need fewer workers and less accommodation, making on-site living more feasible. They use less power and have less impact on the environment. In recent years, many project investment decisions were made on the assumption that unlimited project finance was available. Due to global economic circumstances this is no longer the case, and a more traditional approach to project optimisation is needed. After considering risk, a modest-sized, staged development may provide better shareholder returns than the largest project that an orebody can theoretically support. Staged development may require multiple parallel processing circuits and smaller, more selective mining machines operating at higher cut-off grades. Tailings dams Our biggest unsolved issue is the use of tailings dams. History keeps reminding us that tailings dams can cause massive environmental damage and they can fail. Even the biggest and best mining companies cannot manage them safely all the time. Bigger mines mean bigger tailings dams, and this uninsurable risk of loss has increased by a factor of 20 every third of a century. Bowker and Chambers predicted more than 20 failures from 2010-2019 with a total unfunded public cost of $6 billion. They were right,

and by 2019 we have exceeded that estimate. Bowker and Chambers say that the cause of tailings dam failures is not only a technical problem. They say that the combination of falling grades and higher throughputs have created large, fast-growing tailings dams at mines with slim operating margins, where safety factors may be pushed below an acceptable limit. Objections to innovation Gavin Yeates, speaking at the AusIMM Melbourne Branch in 2019, pointed out that the only way to overcome inertia, created by mindsets such as ‘upfront costs’ and ‘prove it elsewhere first’, is to create a business case for innovation. How do we do that? In mining we already have a process for making a business case: the feasibility study process. We proceed through a series of stages, from conceptual, to pre-feasibility and then feasibility, each becoming more detailed and costing more than the previous stage. In that way, we limit our exposure and can reject the innovation if it is proving to be commercially impractical. However, sometimes mining companies and collaborative research groups don’t show a nibble of interest, even at the early proposal stage. Why is that?

• Consultants who have ideas that could lead to innovation but are too bound up in the daily grind of timesheets and monthly invoices to pursue those ideas. • Mining contractors who are innovators, always looking for the edge over their competitors, however, they need payback within a year or two. On-the-job training The adjacent possible is too close, and is moving too quickly, for traditional career paths to remain viable. Technological innovation will create opportunities for young people, but university education usually lags well behind the changes happening in our high-tech industry. For some jobs, a background in computer games may be more valuable!

Adoption vs. commercial interests While today’s mining innovations seem valuable to us in retrospect, some took many years to be adopted by the mining industry. Safety fuse, an obvious winner, was unpopular for decades because of cost, and people continued to pour gunpowder into goose quills. Autonomous underground trucks are yet to catch on. Some of the reasons given for slow adoption have been: • it will be more expensive than the status quo • it is difficult to retrofit in an existing mine • the workforce will need re-training • there is a lack of supporting infrastructure and spares. Gavin Yeates concluded that we only get one chance per orebody to choose the technology that will be used. It is too difficult to make changes, other than minor changes, once the mine is operating. History shows it can take 20 years for a new idea to achieve widespread acceptance, so who will support the development of such plans? Feasibility studies for new technologies are expensive, but to be convincing, they need to be conducted with the same detail and rigour that we apply to established technologies. Who will fund

the work required to make the business case for the research to be done? I believe that the change will come from wealthy investors and innovators. In other words, from the likes of Bill Gates, Elon Musk, Mark Zuckerberg and Jeff Bezos. Mining innovation also needs passionate advocates who can influence investment decisions. That means having experienced mining engineers, geologists and metallurgists in senior management and board positions where these decisions are taken. Even with the best will in the world, a lawyer or banker may struggle to recognise a complicated technological opportunity. Within the industry, and with a few exceptions, research and development are limited by: • Mining companies who need to derisk development studies for any new mineral deposit. • Equipment manufacturers, traditionally based in Scandinavia and the USA and more recently in China, who have no incentive to change current paradigms. • Universities and collaborative research organisations, including those that are notionally governmentowned and funded, who are heavily dependent on industry funding.

The field has grown beyond a generalised undergraduate syllabus. Employers, be they mining companies, contractors or consultants, should accept the cost of providing undergraduate cadetships and structured graduate training as part of the cost of doing business, to a much greater level than they do at present. Meeting challenges with the adjacent possible We certainly can rise to the challenges facing our industry, meeting community expectations by changing the way we operate, such as: • making changes through technological innovation and more effective training of our professional people • funding research programs that run for longer than one or two years • properly evaluating opportunities using the staged feasibility study process Future mines will be highly selective, moving smaller tonnages, and increasingly they will be underground. They will apply technologies that exist today that are hovering at the edge of the adjacent possible. Expenditure on innovation around the adjacent possible is like expenditure on exploration. It ensures the business will continue beyond the life of existing activities. That is what true sustainability is all about.  BBMC Yearbook 2019

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BBMC Yearbook 2019

Bowen Basin mining services contractor gets 50% more wheellife before section replacement. A prominent Queensland mining services contractor is reaping the rewards of selecting high-performance Topy Hitachi EH3500/4000 wheels. Operating a fleet of machines in the Bowen Basin, the fleet provider is consistently getting 5,000 more hours longer than a major competitor’s offering, at a lower upfront cost. One of Australia’s leading suppliers of off-the-road (OTR) solutions, Bridgestone Mining Solutions Australia (BMSA), is the exclusive Australian distributor of the entire range of Topy wheels and rims. Topy is the world’s largest maker of OTR wheels to original equipment manufacturers and the after-market. They have a complete range of rims designed to meet the demanding efficiency and reliability needs of today’s mining industry. The brand enjoys an excellent reputation in the mining and construction sectors for design excellence and durability, so the results being realised in the Bowen Basin comes as no major surprise. “Historical data from multiple customers shows an average 10,000-hour life before scrap or section failure on standard demountable EH3500/4000 rim assemblies” says Jonathan Huntley, Senior Wheels Specialist with Bridgestone Mining Solutions Australia. “This particular customer is achieving 30,000 hours out of the same rim base with just one

double section replacement,” explains Mr Huntley. “That’s because they not only chose hard-wearing Topy Hitachi EH3500/4000 rim assemblies, they also ensured that they got them repaired within the prescribed interval.” Many experts in the industry believe that highperformance repairable rims are an astute, valuefor-money choice over ‘disposable’ alternatives that are scrapped to avoid BTP or repair. BMSA wheel specialists in the field see first-hand that the results speak for themselves. The great outcomes that this contractor is getting in the Bowen Basin provide cost savings and onsite time savings too, using the only specificallydesigned EH3500/4000 rim to avoid ‘bead seat hang up’ which is Hitachi’s OE choice. Bridgestone Mining Solutions Australia has a busy Brisbane branch as well as operating a state-of-the-art wheel engineering facility in Mackay, which is staffed by a team of highly trained specialist personnel and support staff. They provide high-quality repair and maintenance services, as well as arranging for deliveries of new Topy wheels and rims to sites all across Queensland. Many BSMA clients believe that Topy Wheels, combined with Bridgestone Mining’s leading management and repair system, deliver a strong value proposition that is hard to beat. Judging by the usage results being achieved by the Bowen Basin mining services contractor it’s easy to see why they feel that way.

Short videos on OTR wheel maintenance, testing and repair Mining trucks operate in some of the harshest possible conditions. Grit, chemicals, heat and moisture can accumulate and impact on the operating life of wheels and the tyres fitted to them. BMSA contributed to the development of the industry standard on wheel testing and repair and provide solutions that are focused on operator safety and return on investment. The company has put together four short videos on the importance of wheel maintenance and repair, the case for repair and maintenance, the wheel repair process, and the process of wheel testing.

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BBMC Yearbook 2019

Commercial Mathematics for the resources industry Dan Sutherland, Biarri Energy, Mining and Infrastructure

ears ago, I flew into my first mine site - a gold mine in WA - and marvelled at the size and complexity of the operation. To my mathematics-oriented brain, there were potentially millions of dollars per annum sitting there waiting to be saved - and that was just the opportunities I could see with limited mining knowledge. Fast forward to 2019 and the opportunity is even more significant - but so is the complexity and challenges with unlocking the opportunity. Years later, I still believe the resources industry is a perfect fit for commercial mathematics.

BBMC Yearbook 2019

A Perfect Fit Everything in the resources industry has a high cost - whether it is capital cost of trucks, loaders, wash plants, mines themselves, auxiliary services, draglines (a Bowen Basin favourite) or the operational expenses required to run these massive operations. But everyone knows that - so why am I going back to basics? Because it is also the reason that mining and other resources projects, including oil and gas, are prime targets for Commercial Mathematics.Â Commercial Mathematics - the practical and commercially appropriate application of mathematics, statistics and algorithms to commercial operations - benefits operations through percentage reductions in cost. Typical figures are around a 5 - 10% reduction in the cost area of focus (when compared to embedded approaches). It doesnâ&#x20AC;&#x2122;t take a degree in mathematics to work out that a 5-10% reduction in the costs associated with a mining operation results in substantial savings. Add to this the typical margin of 10% and a 5% cost reduction translates to an almost 50% margin increase.

Now obviously there will be costs associated with delivering that saving but even working on a low 100% ROI (conservative in my experience) and a 5% reduction, again conservative, you end up with a 22% margin increase - not insignificant. Consider then that some areas can have 20 - 30% cost reductions and the automation benefits can be over 80%, and you can see why Commercial Mathematics is not just a perfect fit, but also a prime target for miners. How does Commercial Mathematics deliver value? There is a multitude of examples, but letâ&#x20AC;&#x2122;s break it down to three areas: schedule optimisation, network design and statistical analysis (and closely related machine learning methods). 1. Schedule Optimisation Schedule optimisation is the standard example of mathematics applied to industry. Specific examples of schedule optimisation include maintenance scheduling, pit to port scheduling, charter flight scheduling and production scheduling. Of course these tasks are happening on a daily, weekly or monthly basis within any mining organisation already. So where does Commercial

generates the schedule. Constraints are used to define what constitutes a valid schedule, e.g. a maximum number of bays available), and objectives are determined to say what makes a good schedule, e.g. minimise the total truck downtime.

Mathematics fit? We’ll use maintenance scheduling as an example – specifically, the scheduling of trucks for monthly maintenance. In this case, a mathematics algorithm (often using techniques called Mathematical Programming or Metaheuristics) automatically

Typically, there are two major areas in which Commercial Mathematics for scheduling delivers benefits - automation and optimisation. The algorithm automatically creates a schedule from the data provided, such as duration of activities and skill requirements instead of a scheduler having to painstakingly create a schedule from scratch. For this automation benefit, we can often see an 80% reduction in the time required to create a schedule, with people reviewing and managing exceptions only.

Optimisation then provides another benefit by making the best possible schedule according to the defined objectives. This is where we typically see a 10% benefit, but on a much larger cost base. For example, with maintenance scheduling, it is not uncommon to see a productivity improvement in the maintenance team of over 10% by reducing the amount of lost time between activities and trucks. The same techniques apply to most scheduling problems. If someone is manually creating a schedule, there is a good chance it can be automated and optimised using a mathematical algorithm. 2. Network Design Network design is another optimisation problem – but quite different in focus. Network design is the

process of designing the layout and components of a network. This is split up into two broad categories - direct physical networks, such as fibre networks, gas pipes, electrical networks and logical networks, such as supply chain and haulage/drive networks in underground mines. While the mathematics for each of these are quite similar the business applications are entirely different. For mining the most easily applicable area for network design is in the design of services networks for underground mines. Encoding the engineering rules into the algorithm allows you to automatically design the services for a given mine design and demand requirement, for example, we need to have at most three trucks in this area simultaneously.

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BBMC Yearbook 2019

Similar to scheduling, applying Commercial Mathematics to network design gives benefits of automation and optimisation at similar rates of return to scheduling. This again means saving time on the initial design creation and reducing the cost to build the network. Automated network design has two other possible benefits though: scenario analysis and improved network performance. Once the network design process is automated, it is trivial to run scenarios changing parameters and see how the cost changes. An example use case would be running a scenario to see in a few minutes what the difference in cost of an underground fibre and wifi network is when covering all or 90% of the mine. Finally, algorithms are also much better at running complex calculations than humans. This means a network design algorithm is much better able to consider the performance of the built network while designing - delivering another area of value. 3. Statistical Analysis Statistical analysis is a broad and varied category in itself, but in all cases, it shares at least one common trait. It is always about leveraging existing data to better understand what is happening. Unlike optimisation, statistical analysis rarely tells you directly what you should do, but instead gives you more information about what is happening. It can also be used to predict what is most likely to happen in the future based on historical data. For those with experience in ‘big data,’ this sounds a lot like machine learning (ML) - and it is! Many machine learning and statistical techniques are actually the same, just framed differently. For that reason, we often class machine learning with statistical analysis. What are some examples in mining? Two great examples are failure prediction and consumables (e.g. fuel and tyres) usage. Failure prediction uses Skada data and stats/ML techniques to predict equipment failure 66

BBMC Yearbook 2019

prior to occurrence, providing an opportunity for early intervention. A significant use case is gyratory crusher failure prediction where entangled rebar can cause major issues if not removed quickly. Fuel and tyre consumption analysis uses truck control data and historical fuel (or tyre) consumption combined with statistics and ML techniques to identify drivers of increased consumption. These can be engine specific (e.g. a defective part), environmental (e.g. poor placement of intersections), or behavioural (a ‘lead foot’). In either case, the output is information that a human then uses to decide the right action (intervene in some way). Regardless of the use case the most important thing to remember is the value of the data. If the data exists, then it’s likely possible to process it and investigate relationships - but without any historical data there is nothing that can be done. So, if you’re thinking about using this kind of analysis for value, then a good place to start is data capture. Challenges While it is true that Commercial Mathematics can likely transform your business, there are a few pitfalls to be consider. These pitfalls aren’t any reason to avoid implementing Commercial Mathematics, but like anything worth having there is work required. Direction and communication The number one challenge to overcome in applying any mathematics or analytics solution is the direction and communication component. There are all too many examples of smart people creating technically fantastic analytics solutions that are just not relevant in the real world. This usually boils down to a lack of direction and communication between the analytics and business users. In our experience, the two most successful ways to avoid challenges are using industry-experienced technical resources and having

project leaders with a breadth of knowledge across both the mathematical and the business domain. Finding the right people to align and direct your analytics efforts is critical to getting a practical - and commercially viable - outcome. Data It’s been said countless times - data is critical to any form of data-driven decision making. The number one rule, no matter the industry is: ‘garbage in, garbage out’. This means there is care needed in how data is created, stored, transferred and used. When the data is not readily available or not accurate, there are techniques to improve results such as smart data validation and correction algorithms, but only if it’s identified and singled out. User interfaces One of the most overlooked pitfalls of mathematical, algorithmic and analytical solutions is the user interface. Despite having an automated solution, the user interface is critical to executing the solution. For example, in maintenance scheduling it is critical to have an interface for schedulers to tweak the schedule and input data. While they’ll likely use the interface much less than before automation, failing to have an application where it’s possible to change schedules will hinder adoption. The same applies for an inability to interrogate the generated schedule. A good rule of thumb is that the user interface should be of a similar standard to whatever tool or application users were using for the manual scheduling (or respective manual process). Using this rule gives the user the ability to reap the benefits while still managing any exceptions that come up - and if one thing is true, it’s that there will always be exceptions! Change management If the user interface is one of the most overlooked components, then change management is the most overlooked area. Looking back on that first flight into site, the biggest hurdle I missed associated with the opportunities presented

was the sheer effort required in change management. Change management is hard in any industry, but the mining and broader resources industries have some enhanced difficulties: • With a substantial proportion working FIFO (or DIDO) shifts, the time taken to reach all employees is increased substantially - often taking over a month just to sit with each shift of the same role. This extends the time and effort required for requirements gathering, initial engagement and training and socialisation of changes, thereby significantly increasing the change management effort. • Similarly, the remoteness of many mine sites further increases change management complexity. Mine sites are often not easy for day trips and almost always require travel from change management staff. On-going check-ups and embedment often gets missed for the same reason or diverted to a low-value online check-up. • Given the amount of domain

knowledge and expertise developed ‘on the tools’ many users of these solutions in-field are not ‘tech native’. These users aren’t office-based workers accustomed to a computer or mobile, and this needs to be considered when designing the systems and approaches to change management and training. A healthy avoidance of complex Excel formulas is a must! What would I tell my past self now? Firstly - read this article. Secondly - hang those hi-vis shirts in the sun for a week or three and get some dirt and grease on those steel caps. Then I’d tell him that the boundless opportunity is there - but so is the work required to unlock it. Years of working with resources customers have proven that Commercial Mathematics does have clear benefits and value to deliver - perhaps even more than I previously realised. But it’s not as clear-cut and easy as it first appears. Fortunately, every challenge faced is just a barrier keeping the easily dissuaded out and for those that pursue solutions, the reward at the end is well worth it. 

BBMC Yearbook 2019

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BBMC Yearbook 2019

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Preparing for unprecedented, unpredictable change Darryl Cuzzubbo, Orica

here is the mining sector heading?

We can predict with some confidence how some aspects of the technological trajectory will look. There will be much more automation. We will be separating ore and waste earlier in the mining process. Planning and execution cycles will be compressed from days and weeks to almost real time, and we will need a workforce better equipped with technological and analytical skills. Miners will also become data miners. But to assume that this is where it stops is to presume that new technologies and capabilities will not continue to develop even more rapidly, and that they will not open up new horizons that we simply cannot see today. This is well captured by Bill Gates in his book ‘The Road Ahead’ where he says, “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction”. Reflecting on this, we are likely to underestimate the value of this change because we just cannot anticipate all the sources of value from our current vantage point. You can see this phenomenon unfolding everywhere – where one trend feeds from and then amplifies another trend, making the rate of change both

unprecedented and unpredictable. Take, for example, urbanisation and globalisation. Globally, every week, 1.5 million people are moving into cities – the equivalent of 30 times the capacity of Suncorp Stadium moving into cities. This trend has enabled a structural improvement in productivity which has helped lift 1.2 billion people out of extreme poverty since 1990. It is important to recognise that pulling 1.2 billion people out of extreme poverty could not have happened without the resources sector providing the necessary energy and raw materials for building infrastructure. Globalisation, with the productivity benefits of urbanisation, is enabling the progress of developing countries to leapfrog that of developed countries. Therefore, the future might not be defined by the countries that we would typically look to. For example, India has 10 of the 30 fastest-growing cities in the world, but today three quarters of its 1.2 billion population still lives in rural areas. The United Nations believes that over 400 million of these people will move into urban areas by 2050. That is 16 times the population of Australia becoming urbanised in the next 30 years – in one country alone. Such a massive population movement obviously has a flow-on effect for steel raw materials and copper demand. China, another obvious

example with 50% of the world’s electric vehicles, is growing its fleet at 2,800 vehicles per day compared to U.S. at 1,000 vehicles per day. When we consider this in the context of mining, we are starting to see influential, interconnected trends that will impact our sector. Technological enablers - such as cheap RFID sensors and high-speed 5G networks combined with advances in automation and analytics - will allow mine planning and operations to be optimised in real time. Such interconnected trends can be somewhat daunting, particularly when we don’t really know where they will ultimately take us. We can learn from other sectors, where success has not been dependent upon being able to predict the future but instead has rewarded those who set themselves up to manage and capitalise on a forever-changing environment. The maturity of digitisation in other sectors is a prime example. While digitisation may only be one dimension of change, we would all agree that it is an enabler for many other aspects of change. For companies in the media, logistics, and retail sectors, the entire value chain is now dominated by digital – just think of the importance of technology to companies such as Netflix, DHL and Amazon. BBMC Yearbook 2019

had constraints removed, allowing us to mine much more efficiently.

In metals & mining, digitisation is just entering the scene

Understanding our role as the global leader in explosives, Orica has invested three times as much in research and development compared to our closest competitor over the past five years.

Media Logistics & Mobility

Digital dominates value chain

Retail

Consumer Goods

CURRENT DIGITAL PROCESS

Banking Telecom

This significant investment in the future is starting to produce fruit with the concurrent introduction of a number of ‘game-changer’ technologies.

Digital attacks value chain

Agriculture Healthcare Energy

Metals & Mining

The key areas are:

Additive digital value

Construction & Building Materials

Source: BCG Digital Acceleration Index (DAI), December 2018

Mining is at the beginning of this journey, having so far only captured incremental value from its application of digital technologies. I believe that we are now moving into the second phase, as evidenced by remote operating centres with an increasingly end-to-end view of the full value chain. Some may think that just because sectors like media, logistics and retail have gone through disruptive change doesn’t mean that the mining sector will. But we don’t want to fall into a similar trap as the CEO of Blockbuster when he said in 2008 that, “Neither RedBox nor Netflix are even on the radar screen in terms of competition”. Just two years later, Blockbuster went bankrupt, and Netflix is now worth over $130 billion. Or more recently in 2015, when the CEO of hotel chain Hilton said of Airbnb, “I strongly do not believe that they are a major threat to the core value proposition we have”. It took just three years for Airbnb’s U.S. sales to overtake Hilton in the leisure segment. The other reason why we will see this change occur in our sector is the sheer size of value on offer. The World Economic Forum values the potential benefit of digital transformation in the global metals and mining sector at $320 billion annually over the next decade. If we look at this opportunity for just the Australian mining sector, it equates to a digital dividend of $40-80 billion in EBITDA annually, representing a 3060% improvement in EBITDA. We have seen this in our sector with autonomous haul trucks. Their benefits go well beyond the labour productivity benefits initially envisaged over 10 70

BBMC Yearbook 2019

years ago when the programs started. Since then we have also seen substantial improvements in safety, utilisation, cycle times and maintenance costs. The question is - how do we prepare ourselves to thrive and not just survive in this change when we don’t know with a high degree of certainty where it is taking us? There has been much research on this particularly around digitisation. Still, there are two critical success factors that keep on coming up, which are the ones that Orica has been focused upon as we position ourselves to offer the most value to our customers today and into the future. These are: 1. Chasing the value. While obvious, how many of us deliberately and methodically focus our organisational energies on transformational change rather than incremental change. 2. Developing the necessary partnerships – do not do it alone. Transformational technology in the blasting sector embraces both digitisation and automation. Why? Because with these: 1. We get analytical capability – discovering where our clients’ biggest opportunities lie. 2. We get control – not only can we quantify what we achieved against what was planned, but through control algorithms and systems we can control the physical execution process. 3. Perhaps most importantly, we can fundamentally change the way that mining is done. Steps that used to have some form of constraint or had to be carried out in sequence have

1. BlastIQ, our digital platform which integrates blast design with explosive loading and outcome measurement and analysis, including fragmentation measurement and tracking ore to the point of milling. 2. Wireless detonation, enabling detonation without any wires through up to 800m of rock. 3. Semi-autonomous loading of bulk explosives, which is a stepping stone to fully autonomous loading. If we dig into the second area of wireless detonation, the associated transformational value propositions are, most importantly, the improvement in safety. We can eliminate the 90% of known misfires which are currently due to downline damage. The wireless detonator is also the first detonator to achieve an International Standard Safety Integrity Level 3 rating – the same safety rating at which car airbags operate. We can also significantly reduce the impact of exclusion zones when there is the potential for lightning strikes, as we are removing the primary mechanism where lightning can trigger a blast. BMC, operated by BHP in the Bowen Basin, is leading the way globally. In October of this year, they successfully set off the largest ever wireless blast globally using nearly 2000 wireless detonators. As we have deployed this new technology at an increasing rate, we have come to realise that the associated value propositions are much larger than we had first imagined. For example, we can potentially do what we call multi-layer blasting, which means we can materially lift drill rig utilisation, use fewer loading trucks and offer the mine

Wireless detonators – a transformative technology

Change in open cut extraction methodology:

Change in underground extraction methodology:

●

Safer

●

Safer

●

Significantly more efficient (less constraints)

●

More resource recovery

●

More flexibility

much more flexibility. We can always be ready to blast if the mine plan changes for any reason. We foresee similar transformational value propositions with wireless blasting in underground applications. In particular, where it enables us to mine otherwise non-recoverable areas that today cannot be safely pre-charged, because the leads would be damaged in a preceding blast. Turning to the second area of focus - developing the necessary partnerships is best illustrated by the following story. Before joining Orica, I ran a large mine in South Australia. About two months after starting at Orica I was more than mildly disappointed as I realised that Orica could have been having a much bigger impact than it was. When I was the person running the mine, I did not know the full range of Orica’s technical capabilities and Orica didn’t really know how I made money. Orica was certainly doing things that were helping the mine in a narrow blasting sense, but was not working on the things that would have pushed more volume through the mine’s production bottleneck - which could have materially moved the dial on the mine’s revenue line.

We have found that developing the necessary partnerships has made Orica much more impactful on our customers’ mine planning in recent years. We live the understanding that we are all part of an integrated value chain – miners, service companies, suppliers and customers. If we each work in independent silos, trying to transform our individual parts of this value chain, the best we can do is each increase mine profitability incrementally in our respective parts of the value chain. However, by working collaboratively to optimise the application of new technologies across an integrated value chain, the overall improvement in mine profitability is significantly higher.

The question is - how do we prepare ourselves to thrive and not just survive in this change when we don’t know with a high degree of certainty where it is taking us?

BBMC Yearbook 2019

To enable this improvement, our first action was to make accountabilities around customer performance delivery very clear, and we provided a higher level of empowerment to our people to improve customer responsiveness. Secondly, we have been changing the nature of our commercial agreements toward gain share/pain share agreements that incentivise partnership behaviours. This change brings a sharper focus on the most critical things that we collectively pursue with urgency. In just over 12 months, we are already close to having 30% of our contracts in Australia reflecting a partnership-type approach. We are also developing our technology roadmaps together with like-minded customers. As the functionality of our technologies develop, it is prioritised in a way that quickly unlocks the most value for these customers.

BBMC Yearbook 2019

These first-mover customers receive the benefit of having the technology developed that is biased towards their requirements. The nature of these technology partnerships varies from customer to customer, but what is very clear is that they are enabling rapid introduction of new technologies and value realisation at a pace that we just haven’t seen before. In just the last 12 months: • Orica’s 3-year technology roadmap for open pit blast automation is being heavily influenced by a number of value workshops with Roy Hill, WA, where we have been integrating our respective technology roadmaps. • We have also introduced over 20 semi-autonomous loading mobile manufacturing units in our region. • Northparkes in central NSW was the first mine in Australia to move to wireless detonation and just the second globally. • Olympic Dam has successfully fired the world’s largest underground wireless detonation blast.

• In Queensland, BMC performed the world’s first wireless detonation for an open pit mine and very recently fired a very complex through-seam blast which was even bigger than the blast at Olympic Dam. The world record now sits in Queensland - at least for the moment. We believe that the rate of change in the mining sector will increase exponentially over coming years. Although we intuitively plan knowing where our desired destination is, in today’s world that just isn’t feasible. Orica has invested heavily in transformational technologies. We are now focused on building the effective customer partnerships that we believe are the key to safety and prosperity, for both the mining sector and the many communities that depend on us. 

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Understanding Activism – the key to fighting back John McCarthy

f you own a resources project in Queensland, about 30 different activist groups have the willingness and capacity to attack you.

Just one or two can destroy the prospects of a project or the company’s reputation. Some groups are likely to be little more than an annoyance, but the more prominent groups are now very professional and good at what they do. They can rally thousands of people into action and raise huge sums of money overnight via crowd funding. That means the backers of resources projects need to be energetic in fighting back. Activism is no longer a passion at the fringe of society. There are full-time activists and skilled part-timers - lawyers, researchers, economists, journalists, politicians and thousands of volunteers on hand to help campaigns. They even have a finishing school, Counteract, which teaches activists how to protest and reduce the risk of arrest. In many cases, the activists are far better equipped to deal with a campaign than the companies are to respond to them. Most of all, they are fuelled by an undying passion and belief that they are in the right.

BBMC Yearbook 2019

That doesn’t mean the company’s hopes are lost before they start, but what it does mean is that the way companies have operated in this space does not work anymore, and a new way of dealing with the issue is needed. Too often, the problems projects face are: • companies are unprepared for what awaits them • companies are too slow to adjust and respond • companies fail to have a media or stakeholder strategy If the activists know just one thing, it’s how to generate media and get stakeholders either on-side or too scared to speak out. Their tactics are sometimes questionable, but they rationalise the impact by claiming that it’s for the ‘greater good’. Evolution of activism Adding to the difficulty for resources companies is that the evolution of activism means that, in some cases, activist groups like the Australian Conservation Foundation, Greenpeace, Environmental Justice Australia, Doctors for the Environment and

Animals Australia have a new level of credibility within parts of the media. It is not unusual for activist groups to act as the de facto research arm for media outlets. This is not a new strategy. Political parties have been doing it for years, but the environmental groups have brought a higher potency to the activity. The polarised media landscape means that much of what gets published on both sides of the debate goes unchallenged. The activists also don’t care too much about the consequences of getting arrested or abused by the public, as long as they keep the issue of climate change in the national conversation. The federal election was a failure for them, the one they called ‘the climate election’ and the one they lost. It stopped the conversation being told on their terms. But there have been many victories - the electoral victories in Brisbane City Council and State Government are two cases in point.

The crucial problem with the rise of activism is that while protests are a central part of a thriving Australian democracy, there is only one side talking. Apart from a few exceptions, corporate Australia has vacated the field at the cost of billions of dollars. That’s not the fault of the activists. In recent years activism in its various forms has delayed the development of the Galilee Basin, the Rocky Hill coal project in NSW as well as coal seam gas developments in NSW and Victoria. The Adani experience And of course, there is Adani, a company that took about eight years to get approval for its Galilee mine and, quite unfairly, was painted as a company about to bring about the next wave of extinction. Despite Adani’s eventual victory, the way activism attacked it will be used as a template for future campaigning. First, it was a foreign company not used to the more in-your-face style of debate in Australia, and the activists were able to easily separate Adani from the pack because mining companies refuse to defend each other. It wouldn’t be quite so easy against the likes of Glencore or BHP. Adani’s product was also easily painted as a poison and yesterday’s technology, and the company was slow to fight back. So demonised was Adani that activists made it into a business model allowing them to raise funds, recruit supporters and lift their profile.

It’s history now, but when Adani was forced so far into a corner there was really only one option left, it came out swinging and started hitting anyone in its path, politicians included.

Adani eventually won, not because its campaign persuaded politicians, but because it convinced the public and their votes persuaded the politicians.

It was not a strategy that many companies would have adopted, but it was effective in getting the people of northern and central Queensland activated. Adani eventually won, not because its campaign persuaded politicians, but because it convinced the public and their votes persuaded the politicians. What strategies should companies adopt? It’s unlikely that the phenomenon that changed the course of the federal election will occur again, and that means resources companies wanting to establish in Queensland will need a well-crafted strategy. Understanding the opposition is the first step. Primarily, they have to understand what the activists’ goal is and how they intend to achieve it. There is enough history of activism in Queensland now to understand how they might structure their campaigns. It’s important to know which groups will do what. For instance, an environmental group that operates as a charity is not going to risk direct action because it would endanger its charity status. The actions that include protesters glueing themselves to the road are outsourced to the smaller, more militant groups like Front Line Action against Coal (FLAC).

It’s also important to know what has worked for them in the past and if it will work in the future. In the Adani campaign, context counted for little. The strategy was to paint the company and the project as the fount of all evil, particularly in relation to climate change. It was an effective strategy because it meant the campaign could spread across Australia and not remain localised to Queensland. It also meant there was a single focus - climate change - that could be used to raise funds and support. The campaign is still being waged against Adani. It is still a war of attrition, using tactics to disrupt and delay for as long as possible. Companies now have to be prepared for a long fight.  BBMC Yearbook 2019

Changing mindsets for a modern mining company Andrew Cole , OZ Minerals

Article adapted from the 2019 Austmine Keynote Presentation.

o be provocative, I state up front that our industry is an ‘old world’ industry that is slow-moving and not changing at a similar rate to other sectors. We’re not seen as ‘sexy’ or ‘modern’ and we’re certainly not on the career priority list for young people. In the last four years, since OZ Minerals rebuilt our company strategy, we have asked the question – “how do we change our reputation to be seen as a ‘new world’ industry that belongs in modern society?”

For our company, some of the physical changes that personify our ‘modern mining company’ mindset have included a move to an Adelaide warehouse out of the Adelaide CBD. There are no dedicated offices or desks, we operate digitally in the cloud and work collaboratively with no hierarchy. These symbolic and cultural changes pave the way for: • increased agility and ability to make faster decisions • fostering diversity and inclusion • making the company and our remote work sites attractive to young people • having our communities be our ambassadors • better stewardship of resources 76

BBMC Yearbook 2019

Why are we talking about this? We know that transformational innovation is necessary in a world where change is a constant. We must unlearn set patterns and challenge traditional mindsets – shifting our views on risk, partnership and even competition to create value. Only by taking these actions can we unlock the current constraints of what and where we could be as an industry. Partnerships – a key enabler There are many components; we’ll focus on just one important enabler – partnerships. The mining sector over-uses the word, attributing no real depth to it, and there are actually few

true partnerships – in truth, we have competitors, suppliers and take-over targets. In most cases: • third party access is difficult and is through closed doors • tenders define scopes to the companies we know and assess using traditional attributes • we rarely allow non-conforming submissions • we negotiate contracts until we ‘win’ • we submit variance claims and trigger disputes when events go off-plan • we don’t sole source because we don’t fully trust one another.

Partnerships – a way to make 1+1=3 There are models which suggest that strategic partnerships are a material way to create higher value faster. If all goes perfectly, this could speed up development, reduce costs and risk and yes, even effect transformative change.

This approach won’t foster industry transformation, and if we want to work together, why do we have procurement processes that don’t support this? I suggest that our organisational cultures need to change three levers – leadership behaviours, symbols and systems. We can’t ask people to create partnerships but require them to use conventional procurement processes. Partnerships are created from trust and respect and require us to walk together into the unknown. While there are a few good examples, to bring about transformational change to the industry we need true partnerships to be the norm, not the exception. In other sectors there are some good examples of partnerships between former arch-rivals. • BMW and Daimler – a €1bn partnership to develop driverless vehicles and pay-per-use cars • IONITY – six car companies who formed a European high-power charging (HPC) network for electric vehicles • EDX - 30 of the best universities in the world partnered to implement free online college courses • Microsoft and Apple - a partnership with cross-licensing • Disney and Pixar – partnered to bring us the successful Toy Story franchise • Pfizer and Merck – pharmaceutical companies partnered in the search for a cure for cancer It’s a challenge to consider whether there are partnerships like these in our industry?

However, the big drawback is that a partnership set up with the wrong mindset and infrastructure won’t result in synergies. These models also (not always accurately) assume that you have: • a reflective organisation • cognisance that you don’t have all the smartest people in your company • a risk appetite that accepts failures and mistakes • a willingness to see others become successful as well as you • no motive to kill your competition • the mindset that you don’t have to win Unfortunately, we are largely technically-led organisations. Always being right is what we have been taught and it’s hard-wired into who we are. The expectation is that we negotiate until contracts are watertight, nothing can go wrong and there’s no recourse on us. If something goes wrong, we investigate then plug the gap to make sure it won’t happen again. We are taught to believe we have the best explorationists, mine designers and operators – who could possibly do it better than us? We largely believe that our company IP is still our technology, and our technical know-how. But technology-based IP and technical know-how is not sustainable. It literally lasts months before someone else has done it better or the people who were part of it have moved on and taken their knowledge with them. Our intellectual property is now our company culture. Do we embrace change or not, do we push the boundaries or not, do we want to be agile and innovative or steady and predictable?

To illustrate modern partnership thinking, consider OZ Minerals’ Explorer Challenge, partnering with Unearthed and the 7.7 billion people on the planet. In the process of exploring for mineral deposits, we found only ‘smoke’. Taking a new approach, we decided to ‘crowdsource’ and open up over 6TB of exploration data on our target tenement of Mount Woods. Who could best ‘mine’ the data to find the resource? In three months, the Challenge generated over 1,000 participants from 62 countries. The winners shared a $1M prize pool, some having the chance to test their concepts on the ground. This partnership is still in play, and we are confident that it will lead to a new minerals discovery with new people and new possibilities. The Journey Ahead It’s clear our continuing challenge is how we think about and frame how we work and who we work with. There is value in collaboration and open sourcing problems and solutions. Diversity of thought is best cultivated through partnerships. True partnerships must: • tap diverse ideas and not be limited by people who think the same way • be strong and direct for maximum impact and productivity, not always staying within industry boundaries • never assume we already have all the IP and skills we need within our companies Our next step will be to use the world’s 7.7 billion people to help us design a modern mining operation, build it together, fund it and share in the benefits.  BBMC Yearbook 2019

Innovation thrives on a strong ecosystem Sharna Glover, Imvelo

he digital age is upon us and the Queensland resources industry is well-placed to take advantage of it - and weâ&#x20AC;&#x2122;ll use this opportunity to apply innovations that move our people out of the line of fire.

Over the last few years there has been an increasing rallying cry for business to integrate social impact into their day-to-day activities and long-term strategies. Social impacts are reshaping businesses for the better, and digital technologies are a key enabler of the transition to real-time transparency of business performance for all stakeholders.

are for this negative productivity trend to further deteriorate as Australiaâ&#x20AC;&#x2122;s economic investment intensity slows. This outlook is sobering and reminds us that innovation leadership and speed of adoption within the Queensland resources sector is critical.

The digital age has brought industries together like never before with technology platforms common across mining, oil and gas, agriculture and forestry. This presents an amazing opportunity for Queensland to leverage innovation and capability across its full suite of industries. Due to the scale of its mining and agriculture, Queensland is best placed to be the world leader in industrial field robotics. We must seize this opportunity with both hands, obtain global recognition, and seek export opportunities. Alongside this, however, we must acknowledge that our efforts need acceleration by orders of magnitude. Australian productivity is lagging OECD countries, particularly labour productivity, as leading countries embrace digital and automation capabilities more quickly. As an example, Australia has 83 robots per 10,000 employees while South Korea has 631. The forecasts 78

BBMC Yearbook 2019

Table 1: The Industrial Revolution 4.0

Our ability to build and sustain technology partnerships across a diverse innovation ecosystem will be the defining approach by which we disrupt the status quo and redefine the future for Queensland resources.

Industry 4.0 It’s recognised that Industry 4.0 technologies are creating step-changes in both safety and productivity, two challenges shared by every operation in the industry. Examples of relevant technologies are: • Robotics and autonomy – we’re seeing automated equipment now become smart - being situationally aware and able to make decisions. • Sensor technology - the cost of sensors has come down by orders of magnitude, giving rise to many applications that generate real-time insights across an entire operation. • Edge and cloud computing – the right combination of both, enabled by communications technologies such as 5G and LTE will underpin the Internet of Things. Individually, these technologies offer incremental value. The step-changes occur when the technologies are integrated, taking an ecosystem approach where we re-think the business process. Re-thinking a systems approach to automation People and machinery simply don’t mix. We have seen first-hand that automation offers significant safety benefits by reducing exposure risks to dangerous tasks. This is achieved through tele-remote operations, increased situational awareness and full automation of tasks. Leading mining companies have reduced their LTIFR below 2.0 from above 10 since 2000. Most companies take an ad-hoc approach and implement point-solution automation as it becomes available on the market. This market matching approach only captures a small portion of the full benefits of automation and is unlikely to deliver a competitive advantage. Consciously adopting a systems approach to automation enabled by commercial innovation – a whole of business approach – creates the opportunity to capture significant upside, and ultimately, a competitive advantage. This approach builds a differentiated operating and functional capability, accelerating the safety and productivity benefits of investments in automation. Adapting cross-industry automation solutions permits a fully integrated ecosystem of automated processes, decisions and equipment across sites, supply chains and functional support. Artificial intelligence, predictive analytics and machine learning can be applied to the vast amounts of data, and become central to planning, maintaining and operating a fully integrated business. The recipe for success We have highlighted that the Queensland resources sector has a unique opportunity to leverage technologies across its industries. So what will be the recipe for delivery success? The answer is the ability to foster a strong innovation ecosystem - this will make or break the sector’s adoption of Industry 4.0.

Technology is only one integral piece of an innovation ecosystem. Consider universities, government, corporations, startups, venture capitalists, private investors, foundations, entrepreneurs, mentors, and the media. Each plays a significant role in creating value in the larger ecosystem by transforming new ideas into reality through access and financial investment. Queensland has made a strong start in establishing its innovation ecosystem. This includes our R&D Robotics Cluster in South East QLD (QUT, CSIRO, UQ) and our Mining and Engineering Technology Services Clusters (METS), supported by our regional capabilities to maintain robotics in the field for both mining and agriculture. Work must continue to connect Queensland Clusters with their global sister counterparts. There is tremendous opportunity for the resources sector to transfer technology in from other sectors. For example, we must accelerate the move from equipment automation to the use of autonomous systems that can integrate and work collectively. The self-driving car industry is experiencing a global technology race never seen before. There is $80B in research going into self-driving cars numbering 1.32 billion worldwide, and counting. The resources sector must leverage this investment. However, the technologies themselves are not enough. Our people are at the heart of this change and we need to support them through changing roles and processes that come with step-change technology. It is human nature for people to look for the paths of least resistance and risk. However, innovations and revolutions are precisely the opposite of that. Each of the industrial revolutions has shown that the adaptation process follows this pattern: 1. rejection and critique - led by the media and everyday people 2. soft adaptation path - led by early adopters focused on the economic impact 3. hard adaptation path - led by business visionaries focused on disrupting the established 4. embrace change - a mass adoption of the technology The question for the sector is whether we can shift ourselves to the hard adaption pathway and take a leadership position? Our ability to build and sustain technology partnerships across a diverse innovation ecosystem will be the defining approach by which we disrupt the status quo and redefine the future for Queensland resources.  BBMC Yearbook 2019

Unlocking the ’Lucky Country’

Dr Benjamin Heard, Frazer-Nash Consultancy

‘A

ustralia is a lucky country run mainly by second rate people who share its luck. It lives on other people's ideas, and, although its ordinary people are adaptable, most of its leaders (in all fields) so lack curiosity about the events that surround them that they are often taken by surprise’. Donald Horne, ‘The Lucky Country’, 1964

The future is never here; it is always coming. Over and over, we must rethink, review and reinvent in light of new knowledge, experience, and expectations. Change is constant, but its rate and scale are not. The decades of the information and communications technology revolution have delivered relentless disruption. The Internet of Things, the resulting big data and the advent of blockchain promise ever more rapid evolution of business, industry and society. It’s impossible to know whether we are doing enough to prepare for the future. However, the quality of the questions we’re asking provides a useful yardstick. Occasionally we will be faced with a new paradigm around a fundamental – and it doesn’t get more fundamental than energy. On that front, the Australian mining sector is already late in asking an important question:

“What would it mean if mining operations could own and control megawatt-decades of clean energy – right at the minehead?”

BBMC Yearbook 2019

It’s a transformative concept. Grid connections, transmission lines, diesel deliveries, spurs from gas pipelines – what if these ceased to be relevant? What if mining developments became so much more about the quality of the resource, not the constraint of energy, because plentiful, clean energy was simply available, at a reasonable price, in any location, at any scale? This is one potential implication of the new class of energy technology known as small modular reactors (SMR). SMR is an evolution of the nuclear technologies that are already mature participants in the global power sector, providing around 10% of global electricity from approximately 450 operable reactors in 31 nations. That sector has proven itself reliable, robust, dependable, affordable and long-lived. What is has not been to date is small, nimble, flexible, versatile, and even portable. The stereotypical image of nuclear technology is a huge power station, made up of one or more very large reactors. This traditional image represents the apex of centralised power generation. That’s ironic, considering how nuclear fission can change our very relationship with fuel. Ever since the humble campfire, the contained energy we call ‘fuel’ has been desirable for its reliability, its controllability and crucially, its portability. However, that portability has limits. The dominant fuels of coal, oil and gas offer differing portability but are the same order of magnitude of energy density. The poorest of these fuels, lignite, might provide 10 MJ of usable energy per kilogram. We can do better with good firewood (16 MJ), and good quality black coal is much denser again. Diesel fuel offers us about 45 MJ per kilogram, and natural gas is king with perhaps 55 MJ – over five times more than the lignite and

the benefit of being suitable for moving in pipelines. These differences are material, but no longer transformative. Uranium, enriched into fuel for a light water reactor brings 3,900,000 MJ of energy per kilogram. Not a doubling or a tripling, but five orders of magnitude of difference of energy density. Our control of nuclear fission has brought us the only fuels in existence that do not combust, so the process is free of greenhouse gas and air pollution. This is the sort of fundamental change by which transformation occurs. Table 1: The energy density of uranium fuel is vastly higher than any other commonly used fuel. FUEL Petrol/gasoline Diesel fuel Crude oil Liquefied petroleum gas (LPG) Natural gas Hard black coal (Australia & Canada) Lignite/brown coal (Australia, electricity) Uranium (3.5% enriched in light water reactor)

APPROXIMATE ENERGY DENSITY (MJ PER KG) 45 43 44.5

COMPARED TO BLACK COAL 1.8 1.7 1.8

48.5

1.9

48.5

1.9

1.0

0.4

3,900,000 MJ/kg

156,000

Nuclear fission, therefore, offers all the reliability and versatility benefits of fuel-based energy supply, while being virtually decoupled from the physical portability constraints of the fuel itself. Today’s fleet of power reactors are not refuelled day-long via a conveyor of pulverised coal or a pipeline of gas, but every two to three years with a fresh fuel assembly. With this decoupling, the beneficial output of clean, reliable energy can, in principle, move to wherever it is needed. So why doesn’t it? Historically, nuclear power plants were conceived for centralised power generation to be fed into electric grids. The transformative portability advantage of the dense fuel was obscured by an approach to design that sought economy of scale from larger, and ever larger, plants. So, they were built large, centralised and stationary, quietly providing zero-emissions power well before climate change was even conceived as an environmental threat. Except, of course, for the nuclear reactors that weren’t – the small reactors aboard submarines, aircraft carriers and icebreakers. Today, there are over 200 small nuclear reactors at sea. The latest generation of UK naval reactors don’t require refuelling for 25 years – energy was simply eliminated as an operating constraint. After the British navy transitioned to nuclear propulsion for submarines in 1960, one of the

Artist’s rendering of plant layout first demonstrations was to cruise 42,000 km, submerged, from Scotland to Singapore. That incredible energy density transformed the capability of those ships and submarines. Like the classic image of the evolution of life, the next great leap in the evolution in energy might be the move of small nuclear reactors from the ocean to the land, with the potential to transform capability in the mining sector. So, how good might the technological fit be? Consider four technologies, currently in development, shown in Table 2 below. They range from 195 MWe all the way down to 2 MWe. Contrasted against the demand of the existing Olympic Dam operation, its proposed expansion, and a large copper/gold mine, the table illustrates that small and micro nuclear reactors might soon be suitable to power everything from multigenerational ore bodies to 20-year mining operations. This encompasses exploration and small tenements, without the need for transmission connection and constant fuel delivery, and without the impact of greenhouse gas emissions. Clean, reliable, virtually limitless power, right to the resource. Table 2: SMR supply possibilities against mining and settlement demand MWe per unit SMR Supply Oklo 2 Westinghouse 15 eVinci NuScale 60 Terrestrial Energy 195 IMSR Mining Demand Olympic Dam (Current) Olympic Dam (proposed expansion) Large copper/gold mine Settlement Demand Alice Springs -

MWh p.a

Refuel (years)

17,000

125,000

499,000

1,623,000

900,000

3,588,000

323,000

459,000

BBMC Yearbook 2019

The NuScale Power module, at 60 MWe, can be installed in arrays of up to 12 units for a maximum of 720 MWe. While that size is intended for competitive, grid-scale substitution of fossil fuels, a tailored number of units might offer a compelling option for large mining operations. The full 12-pack holds the potential to power the world’s largest mine, as well as associated settlements and support infrastructure. An unassailable advantage of nuclear technology options is they are not limited to providing electricity. Indeed, the Terrestrial Energy IMSR is largely marketed as a heat plant, offering a loop of 600 °C salt up to 5km from the nuclear island, for the consumer to apply to whatever the energy is required for - electricity, desalination, or it might be direct heat consumption in mineral processing and beneficiation. The smaller end of the scale, the micro-reactors, offer a truly portable energy future for mining. With units ranging from 2-20 MWe, designed for containerised transfer, microreactors can bring energy independence to exploration, earlystage development, and whole-of-life operation for small to medium-sized mines and settlements. So Australian mining might have the opportunity to detach from the volatile lifeline of the Australian energy market - no need for power contracts, no exposure to fluctuating gas prices, no vulnerability to falling grid stability, no risk from transmission corridor failure, and barely any greenhouse gas emissions in the annual sustainability report. The deployment of SMR would, for example, eliminate 460,000 t CO2-e per year from the operations of Olympic Dam. Matching the impact of that single point-source solution would need 230,000 cleanly-charged electric vehicles. Miners using SMRs could rightly and proudly claim to have transcended shortcomings in climate policy and taken control of their carbon destiny. Small reactors could operate either stand-alone or as hybrid solutions with renewable energy supplies and storage technologies. With so much of Australia’s potential mineral wealth in areas of excellent solar resource, solar PV already offers an increasingly compelling option for part of the supply. Given mine sites have fewer space constraints than metropolitan areas, larger volume, long life, deep-cycling flow batteries also present useful functionality. Assessing the optimal package of solutions is delivered through power options analysis. The results, of course, are only as powerful as the available options. Modelling the performance of solar and batteries alongside flexibly operating micro nuclear reactors would present the opportunity to cost-optimise a fully reliable power supply that is contained and operated on site. Such as system would entirely negate the need for ancillary network connection or continual delivery of fossil fuels. The idea of bringing thermal power supply to remote Australian mining naturally raises the matter of water availability for condenser cooling. ‘Where will the cooling water come from?’ is an important question. It’s also a potentially limiting one, borne from the default mindset of scarcity that has made sense until today. But energy is the universal substitute, and from energy plus human ingenuity comes solutions. So a more powerful question is this: ‘How could a fully reliable power supply, with a near-zero financial and environmental marginal cost of production, change the way we use water across the whole operation?’ Water is already an essential feedstock in mining, used in very large quantities, and it must be managed 82

BBMC Yearbook 2019

carefully and responsibly. SMRs could provide a fresh platform for reinventing the sustainability of mining beyond the energy itself. Desalination, treatment, recycling and re-use of water might be available at hitherto implausible scales, leading to a substantial net improvement in sustainable water management in mining. At the minimum, small modular reactors are readily air-cooled, at the cost of an energy-loss penalty. How that penalty might impact the viability of this solution is a job for the power options analysis. At early stages of exploration and establishment, the hybridisation of solar for daytime running when temperatures are highest, with nuclear and batteries, might provide an elegant solution. The transformative energy independence of small and micro reactors is, at the time of writing, a futuristic prospect - but not that far in the future. NuScale are on track to commission their first 12-pack SMR in Idaho in 2025. Terrestrial Energy expects first power in the late 2020s. Rosatom recently delivered its floating SMR to an arctic mining community, and the Canadian mining industry at large is actively considering how these technologies will be deployed to their advantage. Mining, as an industry, has the cultural resources and capability to think long-term. That thinking is needed now, especially if the Australian mining industry wants to see these benefits available sooner and not later – to retain and extend competitive advantage, rather than claw it back from other jurisdictions. Australia has, to date, done much to raise barriers to these emergent energy technologies. Our economy operates under state and federal prohibitions on nuclear power production dating back to the 1980s and 1990s. SMRs will, in due course, become available, and we are not ready to use them. We have not prepared ourselves with full regulatory capability, operator experience, or best-practice waste management for radiological waste. Neither corporate Australia nor the public service operates with the base level of familiarity found in the USA, France, Great Britain and dozens of other nations. Our nuclear expertise is concentrated mainly in and around the operation of what is arguably the world’s best multi-purpose research reactor, producing nuclear medicine, high-end doped silicon, and operating world-class neutron research instrumentation. But that capability virtually halts at the gates of ANSTO. These self-imposed limitations might be of mounting consequence. In the Australian Financial Review, Aaron Patrick recently wrote that Australia is ‘rich, dumb, and getting dumber’, with Australia’s economic complexity falling from 57th to 93rd worldwide. Our nascent relationship with nuclear technologies is arguably emblematic of our determination to resist challenging paths that hold great rewards. Perhaps we presume the luck of ‘the lucky country’ can hold indefinitely. Meanwhile, 20 African nations have signed memoranda of understanding to develop nuclear sectors. Kenya, Zambia, Rwanda and Ethiopia are positioning to deploy small nuclear reactors ahead of Australia, with mineral exploration and export surely on the development agenda. Moving from where Australia is today with nuclear technologies to where we might be tomorrow will not be easy. There will be many reasons to defer, delay and prolong the reforms, the learning and the hard conversations. In the face of these reasons, the Australian mining sector would be wise to ask those high-quality questions, sooner not later, if it wants the coming transformation to be in its favour. This time around, the lucky country might need to make its own luck. 

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BBMC Yearbook 2019

Long-term partnership delivering outcomes step by step Nicole Ireland

cross Queensland, mining companies and their contractors and subcontractors are working to deliver real benefits, outcomes and opportunities to Indigenous people. Recognising the strong, long-term relationship Indigenous people have with their country, companies are developing and fostering partnerships that will stand the test of time and go further than acknowledging connection to country, by providing opportunities for that connection to deliver employment, training and business success. As an example, independent Queensland-based company QCoal Group (QCoal) has been working with its Indigenous stakeholders since 2008 to create and sustain employment and training opportunities across its business. Collaboration with Jangga Operations In recent years, a pipeline of new QCoal projects created an opportunity to embed Indigenous participation across the business and gave all stakeholders the opportunity to revisit initiatives, review outcomes and plan for the future. This process identified Jangga Operations as a potential collaborative partner for QCoal to drive Indigenous participation. This Indigenous-owned business is a registered cultural heritage body, providing cultural heritage and environmental services, as well as supporting the Jangga People and other Aboriginal and Torres Strait Islander (Indigenous) communities with prevocational support, career guidance, job 84

BBMC Yearbook 2019

placement and workforce mentoring. Through a participatory co-design process between QCoal and Jangga Operations, a new employment and training initiative was developed and implemented - the Thida Bullaroo One Foot After the Other program (thida bullaroo means ‘one foot after the other’ in Jangga language). This initiative utilised a people-centred, strengths-based approach to identify and assess potential candidates through an intensive pre-employment screening process and support program. The pre-employment screening process undertaken by Jangga Operations, their ‘Step-by-Step’ program, included: • one-to-one interviews and career planning • identified prior experience, training and qualifications • preliminary health and drug and alcohol checks to assess suitability for moving into the next phase of the program • working with the candidates and their immediate families for a better appreciation and understanding of the reality of a DIDO lifestyle for those not residing in towns close to operations.

When genuine engagement is underpinned by respect and recognition, resources companies and Indigenous peoples can, and do, work together for mutual benefit.

The rationale behind investment in a rigorous pre-employment process was that candidates who were motivated, socially stable, healthy and suitability qualified would be identified quickly. These candidates would then receive further individual support to prepare resumes and undertake mock interviews. Once fully prepared, this pool of candidates would then be put forward to site contractors for roles for which they were suitably qualified and given preference over non-Indigenous applicants if they met all the position description criteria. QCoal worked closely with existing and new site contractors to understand their current and future workforce requirements. A recruitment process was designed and implemented where all new roles with contractors were passed on to Jangga Operations and other Indigenous stakeholders to match with the candidate pool. This early notification process was written into contracts, along with commitments to employ Indigenous candidates where they were as equally qualified as non-Indigenous candidates. This initiative was developed with a view to: • quickly increasing Indigenous participation numbers at QCoal’s existing operations with identified experienced personnel

• recruit a pool of experienced personnel who would support each other through this new initiative and later become mentors to newer Indigenous candidates • create a pipeline of experienced personnel for movement between sites • identify training / experience gaps and continue to work with candidates who did not meet all criteria • direct future training investment • establish a direct relationship between contractors, Traditional Owner stakeholders and/or their organisations for those parties to directly support each other and the personnel through any ‘teething’ problems The initiative and process also provided a sufficient lead time to employment opportunities for those candidates requiring further training, more practical experience and personal support. This people-centred, strengths-based approach, along with strong stakeholder relationships, provided an agile and responsive recruitment environment which delivered 14% Indigenous employment at QCoal’s Northern Hub operation within two years. The QCoal approach of having the individual at the centre of the recruitment process; of working holistically across the business in trialling a training and recruitment model and

monitoring the model and outcomes through contractor reporting has provided statistical and anecdotal data to inform the success of the program. Byerwen Mine recruitment In the lead-up to construction on QCoal’s Byerwen Mine, the partners worked in preparation to replicate the model established at Northern Hub as the foundation for Indigenous recruitment and retention across the business. The model was refined and transferred into the new site operations at Byerwen Mine and has resulted in 5% Indigenous employment across the operation and construction workforces. QCoal continues to work with all stakeholders to ensure sustainability and stability of current employment outcomes, as well as finding ways to increase Indigenous participation across all sites. Based on the program, in February 2019, QCoal sites employed a total of 5% Indigenous personnel vs. the ABS Mining (Qld) figure of 4.1%. Of those: • 16% have been working for 5 years or more • 37% have been working between 1 – 3 years

This is just one example of the outcomes of companies and their contractors working in partnership with Traditional Owners and one which was recognised as Best Company Indigenous Employment and Training Initiative at the 2019 Queensland Resource Council (QRC) Indigenous Awards. “Not only do these awards celebrate the high level of talented Indigenous employees in our sector across all commodities but they encourage new participation into the workforce which further enhances the diversity of our sector,” QRC Chief Executive Mr Macfarlane said. “Queensland’s Indigenous population is 4%t and current census data shows the sector’s Indigenous participation has grown to 4%, which places the sector as one of a few industries with a genuine representation,” Mr Macfarlane said. The Queensland resources industry recognises the unique rights and interests of Indigenous peoples to the lands and waters to which there is a special connection. When genuine engagement is underpinned by respect and recognition, resources companies and Indigenous peoples can, and do, work together for mutual benefit. 

BBMC Yearbook 2019

Hydrogen: hype or opportunity?

Michelle Gane, Queensland University of Technology

ydrogen is one of the most abundant elements on Earth, and one of only a few potential near-zero emission energy carriers. It’s important to note that hydrogen is an energy carrier and not a source of energy. Using hydrogen in place of fossil fuel offers a pathway to decarbonise energy systems. However, the decarbonisation impact depends on hydrogen production method. Hydrogen in nature is most often combined with other elements to form molecules such as water (H2O), ammonia (NH3) and methane (CH4). Energy is required to extract or generate pure hydrogen (H2), and once it is in a pure form, it can be used as a fuel, e.g. in fuel cells to produce power for use by consumers in households or vehicles. Hydrogen’s key advantages Hydrogen has one of the highest energy density values per unit mass at 120-140 MJ/kg - three times more than natural gas or LNG. Hydrogen contains no carbon, and when it is used in a fuel cell or heat engine, water vapour is the only emission. Renewable hydrogen or green hydrogen is produced by using an electrolyser to split water into hydrogen and oxygen using solar, wind or hydro (renewable) electricity. The electrolysis process has the potential to produce a carbon-free or, at most a low carbon energy source. Hydrogen integration into energy systems The production or use of hydrogen is not a new concept. The chemical industry has been using hydrogen for years in the production of fertilisers and in oil refining. The idea of 86

BBMC Yearbook 2019

hydrogen as an alternative source of energy was floated in the 1970s, but until recently it was not economically viable to do so. Currently, most hydrogen is produced from fossil fuels, specifically natural gas, using processes such as steam-methane reforming. Hydrogen can be produced from many primary or secondary sources such as biomass, water and coal (sometimes referred to as ‘brown’ hydrogen).

electricity further when needed.

Hydrogen produced by renewable electricity has the potential to facilitate the integration of high levels of variable renewable energy into the energy system. Electrolysers can add demand-side flexibility by rapidly responding to variations in generation output. Hydrogen, once produced, can be stored or used in fuel cells to generate

There are three main types of electrolysers:

This can, in turn, provide energy to industry sectors that are struggling to decarbonise through electrification. The most obvious of these is the transport sector for hybrid fuel cell electric vehicles (FCEV) and for the injection of hydrogen into existing natural gas grids (thereby reducing natural gas consumption).

• Alkaline electrolysers – these have been used for more than 100 years and have an extended equipment life. • Proton exchange membranes (PEM) thought to be more flexible and respond rapidly in comparison to the others, allowing utilisation

with energy markets or when renewable energy is abundant. They can be programmed to respond within minutes to fluctuating inconsistent energy without apparent consequence, and hence can contribute to the frequency control services in the electricity grid. • Solid oxide electrolysers - a less mature technology but hold the promise of greater efficiencies compared to alkaline and PEM types. Electrolysers are approaching technical maturity and economies of scale, moving rapidly from megawatt to gigawatt capacities while the cost continues to fall. There are challenges to be faced with the integration of renewables into the existing energy network: • Splitting water molecules

requires much energy and clean water. • Clean drinking water is one of Australia’s most precious commodities. • Hydrogen production in central Australia is not a viable option; however, in a coastal area with appropriate desalination, it is. • There are opportunities to use non-potable water as a source; however, this will increase the cost of pretreating of water and will produce by-products. Hydrogen should, therefore, be considered as part of a larger energy transition effort, most likely focusing on specific applications such as transport. Diversifying the Australian energy mix for transport could significantly reduce greenhouse gas emissions by reducing reliance on imported fuels.

Commodity trading prospects Hydrogen offers the possibility of a new commodity to be traded. The global market for hydrogen is projected to expand rapidly - from an existing base of $150 billion in sales to a trillion dollars by 2050. This escalation is predominantly due to the drive to decarbonise industries such as transportation, electricity generation and chemicals. The bulk of this hydrogen market will be for ‘green’ hydrogen, produced by lowcost producers in regions with high penetration of renewable energy in the energy network. Queensland already has a high penetration of renewable energy within its system and will continue to increase with a plentiful supply of new solar installations. The key export markets of Japan, Korea and China

are rapidly converting to a hydrogen mobility economy for FCEV mass transport and private vehicles. These nations currently depend heavily on imported fossil fuel energy but are moving to a decarbonising energy system by importing renewable hydrogen. Determining the most cost-effective export supply chain pathway is still in its infancy, with several options under investigation. The most developed are liquefied hydrogen, methylcyclohexane (MCH) and ammonia, each having disadvantages and advantages. Australia is the world’s biggest exporter of coal and second biggest exporter of natural gas. As a result, there is port infrastructure that could be refurbished for hydrogen export. Development of export

capacity for hydrogen in Queensland particularly has excellent potential. The fundamental raw resources and infrastructure exist or are developing to rapidly expand an export industry, utilising existing infrastructure at major ports such as Gladstone, Brisbane and Townsville. Furthermore, experience with building an LNG gas export market in the state provides reliable guidance on best practices (and the problems to avoid) for an expanded industry sector. ‘Green’ hydrogen is gaining political and business momentum, with policies and projects expanding rapidly around the world. The urgency to mitigate against GHG emissions has increased, and many countries are looking to renewable hydrogen to decarbonise their economies. 

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BBMC Yearbook 2019

Social Licence to Operate the key to success? Renee Wall, Wall Planning & Environmental Consulting

he resource-rich region of the Bowen Basin, containing some of the largest coal reserves in Australia, is showing no signs of slowing down. Is Social Licence to Operate (SLO) the key to success in the Bowen Basin?

The SLO, while not a visible piece of paper, absorbs much attention and money – yet the return on investment may still not be clear. The phrase ‘SLO’ was first coined in 1997. It highlights the difference between a legal permit to mine and the social acceptance of a project. The emerging view is that the achievement of social licence can be useful for long term financial performance and shareholder value. Increasingly, it’s thought that the company’s performance, overall governance and measure of social licence are all interconnected. When a company has social licence, there is low and infrequent conflict between stakeholders and the company. The company is regarded as an inextricable and valued component of the social and economic fabric of the community. Conversely, where there is a failure to gain and maintain social licence, this can lead to conflict, delays or extra costs for the proponents of a project. Rio Tinto’s CEO recently discussed, “… an opportunity for all of us to turn our social licence into a stronger social bond or construct. I believe this is a ‘make or break’ for companies and it’s especially important for those of us in the extractive sectors”.

Emerging SLO applications Mining companies must find and use innovative strategies to ensure the continued success of their economic sustainability and social licence. One emerging trend in SLO is the focus on ‘collective impact’ which refers to a common agenda to solve a specific social problem. Social and community investment from the mining sector is collective in its approach to solve the endemic local issues faced by communities. A ‘place-based approach’ is where industry can foster leadership and provide resources and funding to empower a community to solve its own problems. Social licence initiatives are becoming more focused on liveability and services in the community and less about specific brick and mortar initiatives, such as a roof structure for a community building or a public swimming pool. SLO is about community empowerment where communities are enabled (via funding and support) to address the social and economic problems in their community that underpin health and seek to build partnerships with other sectors in finding solutions. For example, Glencore, operator of Clermont Mine, has a comprehensive community partnership program across its Australian coal business. One focus of the program is on health initiatives within the local communities in which Glencore operates. In Clermont, Glencore is investing in a “Clermont 4 Doctors” campaign to help address the shortage of GPs in the local area, modelled on Glencore’s successful “Mudgee 4 Doctors” campaign in New South Wales. The “Clermont 4 Doctors” campaign seeks to work with Clermont’s community leaders, Queensland Health and private practice to recruit and retain doctors in Clermont. The funds provided by Glencore are intended to establish a sustainable ‘grow your

…an opportunity for all of us to turn our social licence into a stronger social bond or construct. I believe this is a ‘make or break’ for companies and it’s especially important for those of us in the extractive sectors.

BBMC Yearbook 2019

own’ model to help Clermont attract and retain doctors. This will build the capacity and capabilities of the community for the benefit of all residents. Another successful initiative is the Adani Small Business Scholarship program that provides small businesses within the Isaac Region with the opportunity to build their skills and boost their strength, thanks to Adani and the Greater Whitsunday Alliance (GW3). The fund supports small business owners to further their professional development by providing a contribution to go towards the cost of attendance in a professional development class, forum or event of their choice. Alternatively, funds can cover the cost of a temporary office resource while the business owner is attending a course. The Local Buying Foundation, established in 2012, is a critical element of BHP's Local Buying Program, which is BHP's local procurement program. The buying program, administered by C-Res, is now expanding into South America. Over $4.7 million has been invested in the Local Buying Foundation across the Central Highlands, Isaac and Mackay local government areas. The Foundation

BBMC Yearbook 2019

supports and builds the capabilities and capacities of small to medium enterprises in the Bowen Basin and Mackay region. For example, the Isaac Business Support Program and Business Facilitator in the Central Highlands has injected investment of over $1 million over three years to directly support small business in the region. Understand the ‘Local Rules of the Game’ The first and most vital step is to understand the ‘local rules of the game’ and what makes up social licence in each community (which may differ significantly). The ultimate goal is to work in partnership with the community to understand the problems the community may be facing and to create a common approach to address them. From a community perspective, this simply translates to: • respect • dialogue • participation • transparency • trust • responsiveness

The future of ‘Social Licence to Operate’ SLO is a crucial driver in the ability of a mining project to do business successfully. It’s linked to general business reputation risk, financial risk, marketing and branding, political and regulatory concerns and corporate social responsibility. If well-managed, SLO can drive a project forward when supported by greater community engagement and support. It’s essential to develop a robust approach to gaining and maintaining social licence. Effective engagement can drive community investment decisions and ultimately assist companies in mapping out the future of their social licence activities and initiatives. Industry professionals need to focus on how to best engage the community in the benefits and capabilities that the mining industry can bring. Social Licence to Operate may just be the key to success. The return on investment of productive engagement and social licence initiatives will be clear when the company is seen as an inextricable and valued component of the social and economic fabric of the community. 

Closing the gaps in mine dust knowledge

Nikky LaBranche, The University of Queensland

ince the resurgence’ of Coal Workers Pneumoconiosis (CWP) in Queensland, much work has been done to improve exposure monitoring and health surveillance in coal miners. It is now recognised as inadequate to talk about coal dust in general terms, because size, shape and chemical content can affect the adverse consequences of excessive exposure. To that end, the term coal mine dust lung disease is now used, not simply coal dust lung disease, as silica and bio-available iron are examples of non-coal components of dust in coal mines. Despite its prevalence, there are major gaps in our understanding of particulate matter and its impacts upon human health. In previous decades disease severity was thought of only in terms of the magnitude of exposure and career duration. However, studies in both the United States and United Kingdom have detailed regional differences in the workers diagnosed with different lung diseases. Another interesting factor highlighted in research by David Coggon suggested the risk of chronic bronchitis and emphysema may

not be directly determined by the measure of exposure but rather the result of larger particles of dust, in the inhalable size fraction, depositing in the tracheobronchial region. The number of coal mine dust lung disease cases continues to climb in Queensland, where 118 have been diagnosed as of 31 August 2019. Nine of these reported cases have progressed to the most severe category of progressive massive fibrosis (PMF). There are also 28 cases of chronic obstructive

pulmonary disease (COPD), which is an umbrella term including emphysema and chronic bronchitis. On 1 November 2018 the occupational exposure limit for respirable dust at coal mines in Queensland was reduced from 3 mg/m³ to 2.5 mg/m³. Safe Work Australia (SWA) has recommended a standard of 1.5 mg/m³ for respirable coal mine dust, which the State Minister for Natural Resources, Mines and Energy, Dr Anthony Lynham committed to

BBMC Yearbook 2019

matching. Safe work Australia is also proposing the exposure standard for respirable crystalline silica be reduced from 0.1 mg/m3 to 0.02 mg/m3. Industry has been discussing a 0.05 mg/m3 standard, as the limit of reporting on much of the laboratory equipment performing the measurements is 0.01 mg/m3. Correct sample measurement When sampling for personal exposure to respirable dust, it is important to know what you are measuring. Gravimetric samplers work by a pump drawing a current of air through a cyclone elutriator and collecting a mass of dust on a filter of a certain size fraction determined by the cyclone type and flowrate of the pump. In August 2018, a manufacturer of gravimetric cyclones for respirable dust sampling announced their Higgins-Dewell type plastic cyclones, used by industry for compliance sampling, were collecting up to 30% more dust than intended. This over-collection of dust on the filter necessitated a change in the flowrate of the pump collecting the sample to collect the proper size fraction of dust. Sampling compliance Historically cyclones were not required to have third party certification to the size-selective curve in the ISO standard they are meant to comply with, and so far only one brand of Higgins-Dewell gravimetric sampler, commonly used in Australia, has produced test results that show compliance. The conformance of other cyclones currently in use in Australia is still in question. Similarly, pumps have not been independently tested and overseas testing has identified a number of models that fail to meet the less than 10% pump pulsation criteria in the ISO standard. It is imperative that compliance monitoring equipment used in Australia is tested to ensure it meets the relevant standards. Real-time sampling compliance The gravimetric sampling for compliance monitoring currently used in Australia can take up to three weeks to return results, For compliance monitoring, the US has adopted mass based real-time monitoring, using a tapered element oscillating microbalance (TEOM), so miners know how much dust they are exposed to during their shift. Importantly, the cyclone used in this monitor has been tested for conformance to the sizeselective curve in the ISO standard. Australia needs to embrace the latest technology by moving to real-time monitoring for compliance sampling. This would require a change in legislation from AS2985 to a new standard. There are also optical real-time devices approved for underground use that can be extremely useful in identifying dust sources and their magnitudes and looking at the effectiveness of dust controls. 92

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While Australia needs to embrace new technology for compliant measuring of mass of dust in real-time, the size of particles may even be more important to the health hazard the dust poses. Particle size is also significant While Australia needs to embrace new technology for compliant measuring of mass of dust in real-time, the size of particles may even be more important to the health hazard the dust poses. Testing performed at the National Institute of Occupational Safety and Health (NIOSH) in the US found lung tissue was more reactive to ultrafine crystalline silica particles (mean particle size 0.3 microns) than the commonly measured respirable fraction (mean particle size of 4.1 microns). The number of particles present may also affect the health hazard of the dust. The gravimetric sampling techniques currently in use measure the total mass of the dust collected on a filter. This total dust mass does not consider the number of particles present and, assuming a constant density, it would take 2,578 particles of a 0.3 µm diameter to equal the mass of one particle of 4.1 µm diameter. This means it may be possible for a worker to be exposed to a significant number of ultrafine particles that do not add up to enough mass to exceed the 8-hour time-weighted average exposure limit, but still pose a significant hazard. How do we close the gaps? • New national standards for time-weighted average (TWA) exposure limits are expected to be released before the end of 2019. • Current monitoring equipment needs to be tested to ensure that it meets the relevant standards. • Updates in legislation are also needed to allow for dust monitoring technology to evolve. • Technology will play an increasing role in identifying dust sources and putting effective controls in place. Ultimately, more work is needed to characterise the dust present in different mining environments in order to better understand how the chemical components, particle sizes and shape contribute to the health effects. The University of Queensland has begun this important characterisation work starting with the underground coal mines. 

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Mining legislation changes in 2019: What you need to know

Liam Davis and Claire Meiklejohn, McCullough Robertson Lawyers

his year has seen multiple changes to the legislation that affects exploration, rehabilitation and environmental aspects of mining. Here’s what that means for you: Changes to exploration permits and work programs On 15 May 2019, the Natural Resources and Other Legislation Amendment Bill 2019 (Qld) (NROLA Act) was passed. The NROLA Act improves the regulatory frameworks within Queensland’s Natural Resources, Mines and Energy portfolio, by amending a broad range of legislation, including the Mineral Resources Act 1989 (Qld) (MRA). Exploration permit reviews will be capped Currently, exploration permits can be renewed an unlimited number of times. Under the NROLA Act, the total life of exploration permits will be capped to 15 years, with a three year extension in exceptional events. These ‘exceptional events’ include events affecting the whole resource exploration industry or a geographic region, such as natural disasters or a global financial crisis. The cap prevents exploration areas being ‘locked down’ and inactive for too long, delaying production and the associated benefits. The reforms intend to encourage timely development of exploration activities. This cap will apply to all new permits once the legislation comes into effect, expected by 25 May 2020 (unless proclaimed earlier). Existing permits may be renewed for up to 10 years after commencement.

Streamlining relinquishment requirements The NROLA Act also seeks to streamline relinquishment requirements. These will be amended to: • increase the time before the first relinquishment due date; and • reduce the total area required to be relinquished before the expiry of the exploration authority. These changes are summarised in the table below: CURRENT REQUIREMENT Area of exploration permit must be reduced by 40% of the original permit area by the first 3 years. A further 50% of the remaining area must be reduced at the end of the following 5 years.

NEW REQUIREMENT Area of exploration permit will be reduced by 50% of the original permit area by the first 5 years. The remaining 50% of the permit by the end of 10 years after the permit is granted.

BBMC Yearbook 2019

Importantly, if an exploration permit holder has applied for a mineral development licence (MDL) or mining lease (ML) in the area of their permit, and that application has not been decided by the end of the 15 year cap referred to above, the permit does not need to be reduced until the MDL or ML application is decided. If a permit holder voluntarily reduces the area of their permit, or any area of the permit is reduced because a MDL or ML is granted over that permit area, the reduced area may be counted towards the required reduction. Despite these requirements, the Minister has discretion to reduce the area of the permit by more or less than outlined above if considered necessary. These changes are also expected to come into force on 25 May 2020, unless proclaimed earlier. Work programs Currently, holders of exploration permits for minerals other than coal (EPMs) must comply with a prescribed activities-based work program. To adjust this work program in response to unexpected exploration results, the holder must seek the Department of Natural Resources, Mines and Energy’s approval to vary it. The amendments introduce two types of work programs for EPM holders, being: 1. activities-based programs, and 2. outcomes-based programs. Activities-based program The activities-based work program: • maintains the current work program requirements, but • no longer includes the need to provide yearly descriptions of the

BBMC Yearbook 2019

financial and technical resources to be committed to the exploration work. Outcomes-based program An outcomes-based work program includes the: • proposed outcomes and strategy to achieve the outcome; • proposed data to be collected during the term as an indication of mineralisation, and • existing resources proposed to be committed. The changes are designed to allow permit holders to change the on-ground activities to accommodate exploration results as they become apparent. The outcomes-based work program will generally only be accepted for noncompetitive, non-tender applications, but the Minister will have discretion to change the type of work program for a competitive process. An example of this discretion could be in the competitive process for a greenfield land project. EPMs awarded through competitive processes, such as a tender process, will specify whether an activitiesbased or outcome-based work program is required. Rollout of rehabilitation reforms The Mineral and Energy Resources (Financial Provisioning) Act 2018 (Qld) (MERFP Act) passed in November 2018. The legislation has been rolled out in two parts: 1. a new financial provisioning regime commenced on 1 April 2019, and 2. a progressive rehabilitation and mine planning overhaul commenced on 1 November 2019.

Financial Provisioning The MERFP Act replaces the old concept of financial assurance with a new financial provisioning scheme, where environmental authority (EA) holders must either pay an annual contribution to a pooled fund, or provide a surety for the estimated costs of rehabilitating a project site. The nature and amount of financial provisioning will be determined on the basis of: • the estimated rehabilitation costs (ERC) for the EA; • the risk category allocated to the EA, and • whether surety is required to preserve the financial viability of the pooled fund. Queensland Treasury is transitioning existing EA holders into the new scheme over three years. Further detail about how the financial provisioning regime operates is available in our article, Don't be an April Fool commencement of the MERFP Act.1 Progressive Rehabilitation and Mine Planning The MERFP Act also introduced changes to progressive rehabilitation requirements by requiring holders of a site-specific EA for a mining activity to prepare a:

structurally stable, nonpolluting, and able to sustain a post-mining land use). The most common NUMA is a residual void. The PRCP framework replaces the plan of operations under the Environmental Protection Act 1994 (Qld) (EP Act). EA holders will be transitioned from 1 November 2019. A PRCP Guideline2 has been published to assist in developing a PRCP and PRCP Schedule. The Environmental Protection (Rehabilitation Form) Amendment Regulation 2019 (Qld) also recently commenced, amending the Environmental Protection Regulation 2019 (Qld) (Regulation) to complement the progressive rehabilitation regime. Among other things, the amendments clarify that the Department of Environment and Science (DES) must consider ‘PRCP objectives’ and corresponding ‘PRCP performance outcomes’ when making a decision about a PRCP schedule. Different outcomes apply for areas that are a NUMA to those with a post-mining land use. Public Interest Evaluation Requirements

• progressive rehabilitation and closure plan (PRCP), and • schedule to the PRCP (PRCP schedule) which will contain binding rehabilitation milestones.

A public interest evaluation report (PIER) will be required for an application that includes a NUMA in a PRCP and PRCP schedule. The purpose of the PIER is to provide a recommendation on whether the NUMA is in the public interest and should therefore be approved by DES.

The MERFP Act introduced the concept of ‘nonuse management areas’ (NUMAs). These are areas of land that cannot be rehabilitated to a ‘stable condition’ (that is, safe,

The PIER needs to address the benefit to the community resulting from the proposed project, any impacts that may reduce that benefit, and whether there are alternative options available for the land.

Entities carrying out the evaluation must have qualifications relating to, and at least 10 years experience in, a wide range of fields including environmental risk assessment, financial impact assessment, rehabilitation planning and management, and resource project planning and management. The PRCP Guideline (released on 4 November 2019) provides more detail on how the public interest evaluation must be carried out, including: • review and appeal processes; • interaction with the PRCP Guideline; • process flow charts when a PIER applies, and • timeframes and procedures by which the evaluation must operate. You can read more about the progressive rehabilitation regime in our article, PRCP Guideline released to assist rollout of new rehabilitation regime.3 Waste reforms in Qld Changes have been made to Queensland’s waste regulations to reform to improve the way waste is classified and managed. Mining projects should ensure that the handling and disposal of all waste from its operations complies with all relevant legislative requirements. In February 2019, the Environmental Protection (Regulated Waste) Amendment Regulation 2018 (Qld) (Regulated Waste Regulation) commenced, which amended the Environmental Protection Regulation 2008 (Qld) (EP Regulation). The Regulated Waste Regulation introduces a new waste classification

framework to enable hazardous waste to be assessed, so that appropriate risk-based classification and controls can be put in place. Specifically, the Regulated Waste Regulation made amendments to: • improve the classification and management of wastes based on up-todate scientific values for the protection of the environment and human health; • no longer classify low-risk wastes as regulated waste; • reduce regulation and associated management costs for low-risk wastes which are not regulated; • provide greater incentive to treat waste to reduce the level of potential risk and therefore the associated regulated waste classification category; and • provide a framework that does not impact on the viability of established industries and encourages capital investment, economic development and employment. Note: these amendments have since been translated over to the new Environmental Protection Regulation 2019 (Qld), which came into force on 1 September 2019. Environmental Offsets Framework On 19 February 2019, Minister for Environment Leeanne Enoch released a discussion paper on the Queensland environmental offsets framework. Environmental offsets are areas that secured and managed to compensate or replace areas where significant environmental matters have residually impacted. The discussion paper sought community and industry

feedback on the how well Queensland’s offsets policy currently operates under the Environmental Offsets Act 2014 (Qld), with an aim of undertaking future reform. The broader review hopes to explore ways to achieve conservation outcomes, increase landholder participation and improve social, cultural and economic benefits. DES is currently considering the results of its targeted stakeholder consultation, and expects to report the results to the Government in the second half of 2019. The Government expects to release a draft ‘Action Plan’ regarding any proposed changes identified in the submissions for consultation towards the end of 2019. Any potential amendments to the environmental offsets framework are expected to be introduced in 2020. Looking forward Reforms for the mining sector will continue into 2020, at least until a caretaker period is called before the scheduled State election. In particular, DNRME is amending the way resource data is required to be provided by explorers and miners alike, and the way and timing in which that data will become available to others. A review of administrative efficiencies is also being proposed, looking at items such as the prescribed forms for some types of mining and means and effectiveness of communication with the regulators. 

1 https://www.mccullough.com. au/2019/03/29/dont-be-an-aprilfool-commencement-of-the-merfpact/ 2 https://environment.des.qld.gov.au/__ data/assets/pdf_file/0026/95444/ rs-gl-prc-plan.pdf 3 https://www.mccullough.com. au/2019/11/06/prcp-guidelinereleased-to-assist-rollout-of-newrehabilitation-regime/

BBMC Yearbook 2019

EIS timeframes doubled this decade – can policy pragmatism prevail? Ngaire Tranter, Nitro Solutions

n 2010 I completed my first Environmental Impact Statement (EIS). We studied all the usual suspects, had town hall meetings, negotiated access and had many productive discussions with the regulators. Climate change had first appeared in our study requirements, and I recall considering how on earth we would factor that into the plan. In a total of 75 weeks, we had our EIS submitted and were moving on.

In 2019 we now spend a minimum of 156 weeks on the EIS and approvals process. In some well-known cases, approvals have spanned almost the entirety of this decade, bringing with it the frustration with the ongoing costs and increasing timeframes. During this decade, we have seen the introduction of nested governance structures which see projects assessed and approved by all levels of government, independent committees and experts. Assessments address the entire project lifecycle from construction through to rehabilitation and closure planning. We study every aspect in exhaustive detail, guided by Australian Standard risk assessment processes. There are multiple legislated stakeholder engagement processes and regulatory 98

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reviews which continue past the approvals process right through operations and into closure planning. At the start of the decade, compliance costs would be estimated at 1-2% of capital value of the asset, for the life of the mine. Today this figure ranges from 2–5 %. Yet despite this increasing focus upon compliance and ongoing technical work, the broader Australian community remains disapproving. As an industry, we are complicit in this outcome because we have remained quiet, with a ‘business as usual’ approach. After all, we assume people understand that their entire modern lives are established via mining - not only are our homes, workplaces and surrounds established through mined products, our economy relies upon mining.

On the cusp of this decade and the new decade, fresh with possibilities, we have a choice.

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BBMC Yearbook 2019

On the cusp of this decade and the new decade, fresh with possibilities, we have a choice. We can continue to hope for quiet acceptance of our contribution to Australia’s (and the world’s) sustainable future. Or we can do what we do well and dig deep, creating and explicitly communicating our value, while developing and executing our plans to engineering perfection. Here’s how: Communicate our contribution to scientific knowledge Communicating value means every individual speaking up about our industry and our immense contribution. Leaving aside the low-hanging fruit of billions of dollars in royalties and taxes, let’s talk about our contribution to Australia’s scientific knowledge. I would suggest that the mining industry collectively has delivered more scientific knowledge about plant and animal species, water resources, air quality, transport, infrastructure, safety and maintenance to the nation than our universities.

for individuals right through to entire communities. Without mining, I know many people who would not have had access to new levels of education. We offer a truly equal opportunity to reach for the Australian dream, for people of all shapes, sizes and backgrounds to develop their careers. We offer social value, which may not seem like much but it’s often the lifeline of regional communities. We support the sports club, charitable causes, the local school and completely unrelated business opportunities. Our industry quietly works with these causes and creates value as part of our commitment to social responsibility.

Communicate how we change lives

We also change lives by bringing technological advancements to the table. The development of better data for the environment is being pursued through machine learning environmental monitoring systems - thanks to the mining industry. Our cumulative impact assessment models are growing in complexity, and with the near-future use of quantum computing, we will be able to truly consider regional-scale impacts which consider not only our demands but that of the collective system. Given the current focus on understanding and developing resilience within our communities this is a critical area of development which will truly enable adaptive policy and management to occur, and one that would not be able to occur without the scientific and economic support of our industry.

We provide catalytic opportunities for change

Thanks to all of this, we now work with increasingly

Communicate our safety commitment We have created a culture of safety within our communities. That person wearing shoes and safety glasses while they’re mowing - I’ll hedge a bet that they work in our industry. They’ll also be the person who holds the ladder for you if they see you climbing it. We care about people doing what they do safely.

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complex technical and highly detailed information to complete an EIS, it’s no surprise that approvals timeframes and costs have risen during this decade. I believe that the continued adoption of technologies will counter this to see the timeframes and costs stabilise over the next decade. We can contribute to this time and cost stabilisation by communicating our value proposition effectively through an EIS. Using the EIS to communicate value The Terms of Reference guiding the legislative review of the EPBC Act states explicitly that the Commonwealth is focused on ‘making decisions simpler, including by reducing unnecessary regulatory burdens for Australians, businesses and governments.’ Perhaps this is a recognition of the colonisation of risk we have seen within this policy for most of this decade. In the lead up to this review, it has been positive to see that strategic approaches and new initiatives for management of Matters of National Environmental Significance have been listed on the agenda. However, what offers a true opportunity is the recommendation that proponents should have the right to request amendment or removal of approval conditions where there is a more cost-effective way to achieve the requirements of the Act. Should this recommendation be adopted, our industry’s collective knowledge will have a great opportunity to shine. I’m calling this decade the rise of policy pragmatism - we have a wealth of knowledge

about what works and what doesn’t when it comes to environmental management practices. The EIS offers us an opportunity to demonstrate in an evidence-based manner what works for environmental management in mining and the linkage of these practices to broader economic, social and environmental value for the regions and our communities as well as at a collective national level. However, we cannot achieve this pragmatic approach if we do not communicate our true value to our society. Modern policy is based upon public participation, and we must be cognisant that we need to adapt to the current societal expectations around knowledge and its availability. 

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Thinking beyond closure – a ‘wicked’ problem for the Bowen Basin Professor Anna Littleboy, University of Queensland Sustainable Minerals Institute

iscussing mine closure in the context of the Bowen Basin is a fraught business. In 2019, it’s nigh on impossible to separate discussions of coal mine closure from the policy debate around climate change. But they are separate issues.

A divisive conversation ‘Stop Adani’, the Extinction Rebellion protests around Australia, and the blockade of the recent IMARC conference in Melbourne remind us that sectors of the public make a strong and visceral connection between coal mining and climate change. A wedge is being driven into the Australian policy debate around climate change that is becoming increasingly polarised as a result. Although the need to gear up for closurerelated socio-economic transitions in the Bowen Basin is freely acknowledged (for example, by the International Council of Mining and Metals (ICMM) in their Mining with Principles Strategy 2018 – 2921), it’s increasingly difficult even to use the word ‘transition’ without it being associated with climate change and a move away from coal. This does not help to foster rational discussion, with foresight, of the needs of the Bowen Basin as coal mines close. Closure is a complex issue, even without the surge of adrenaline that accompanies the climate change debate. Mines close, typically after many decades of operation. Regardless of the outcome of Australia’s climate policy and the directions of its future energy mix, many communities in Australia and around the world have to face the issue of mine closure. The Sustainable

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Minerals Institute is developing a closure database (Svobodova et al. 2018) based on data extracted from the S&P Global Market Intelligence database (S&P 2019), and complemented by other global data sources such as World Bank Open Data (World Bank, 2019), World Database of Key Biodiversity Areas (KBA, 2019), HydroATLAS (HydroLAB, 2019). The Bowen Basin is a hotspot for closure.

Managing mine closure well So what’s the problem? The ICMM has identified mine closure as a priority area for their membership, which includes BHP, Anglo and Glencore. Examples of successfully-closed mines can be found around the world, and it is 10 years since the publication of Georgina Pearman‘s book ‚‘101 things to do with a hole in the ground‘. For many years the major mining companies have established specialist closure teams to support their operations. The issue is that many mines were opened with little thought of closure, and it is only now that we are starting to see the true cost of this lack of forethought. And the cost of closure is significant in more than merely financial terms. For every example of good mine closure there are higher profile examples of poorlyclosed or abandoned mines. There is no single policy jurisdiction in the world that provides an ideal model for mine closure. Closure issues are considered on a site-by-site basis, and two decades of research on mine closure has highlighted a range of factors that companies, communities and governments face in designing mine closure. A 2018 Senate Inquiry into Mining Rehabilitation highlighted the lack of capacity to close mines as a challenge to both existing operations and future sector investment. Uncertainty in our ability to close mines is beginning to impact our ability to open them in the first place. None of these issues can be solved solely by science and engineering. Closure brings us face to face with the uncomfortable topics of managing risks, potential risks, distribution of risk and risk perception. Closure introduces new risks to regional mining economies and post-closure ecosystems. It’s risky for the mining company - what if they are unable to relinquish the site and remove the liability from their books? It’s also risky for those in government - what if they are left with an abandoned site to clear up?

Mine closure - a classic example of a ‘wicked problem’. A wicked problem is a social or cultural problem that is difficult or impossible to solve due to: • • • •

incomplete or contradictory knowledge the number of people and opinions involved the large economic burden the interconnected nature of these problems with other problems.

Wicked problems have not been experienced before and take us to places we don’t know. Solutions to wicked problems are not obvious and are often described as ‘messy’ – meaning that there can be a forward movement towards a solution but not necessarily a clear fix. Wicked problems cannot be engineered away. An opportunity to lead the way So what does this mean for the Bowen Basin? A disruptive time - even without the overlay of climate transitions superimposed on the closure discussion. And while we certainly have high levels of skill in the different aspects that require consideration in mine closure, it still tends to be segregated along disciplinary lines, steps in the mining value chain or between various stakeholders. More significantly, these pockets of knowledge continue to argue about who has the right view on the potential risks arising from closure. Throw coal and climate change into the mix as well, and we have a simmering pot for unresolved tensions, entrenched positions and intransigent echo chambers. Mature and collaborative leadership is emerging. Still, we are struggling to find mechanisms that can connect expertise, look at the systemic technical, sociological and institutional interactions around closure, and accept that wicked problems have messy solutions. For this, we need courageous leadership, and we need to embrace what we often tell ourselves – that there is no silver bullet.

Solutions to wicked problems are not obvious and are often described as ‘messy’ – meaning that there can be a forward movement towards a solution but not necessarily a clear fix. Wicked problems cannot be engineered away.

Where do we look for the leaders of the future that can work together to help chart a path forward? And how do we address the conundrum that, as our world gets increasingly complex, our public policy debates seem increasingly simple? Perhaps the Bowen Basin, with its long history of development through mining and its mature regional, community and mining institutions can lead the way to best practice through closure, relinquishment and beyond to a postmining future. 

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Time for a paradigm shift in safety thinking Christian Young, Impress Solutions

’ve been in the mining industry nearly all my professional life. As a safety specialist, I’m passionate about creating meaningful relationships within the industry to effect real change.

The answers, if we are honest with ourselves, are both no.

Those who have been around the mining industry long enough would be familiar with these traditional views of safety:

Traditionally, people are the problem and the safety management system is designed to treat people accordingly. Golden rules, blanket rules such as JSAs for all tasks, retraining in procedures following an incident, safety interactions focussing on what people are doing wrong – these are all examples where people are the problem, not the solution.

• Incidents = poor safety performance; no incidents = good safety performance. • People involved in the incident are seen as the cause of the incident. If they had behaved differently, then the incident likely would not have occurred. • All incidents need to be investigated, and new controls need to be identified to prevent a recurrence, regardless of how many layers we are adding to the safety management system. • Proactive safety means performing activities like Visible Felt Leaderships, Safety Interactions, audits and inspections. A good safety interaction is one where we’ve observed a non-compliant behaviour or condition and made it safe. But is this working? Will the way we are currently managing safety trigger a step-change in safety performance over the next year, two years, or five years? If we talked to the workforce about their thoughts on how safety is done on their site, would they say, “Sure, we believe in the way safety is managed, and we are inspired to collaborate further.”? 104

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The way we ‘do safety’ has been sufficient up until now; however, if we want a stepchange in performance, something needs to change. A starting point could be changing some of our underlying beliefs about how we view safety. I’ve outlined three nontraditional beliefs: People are the solution and not the problem

Imagine if we saw people as the enablers, operating in the grey areas between what the procedure says (work as we imagine it should be done) and what the task actually demands (work as done). Our Visible Felt Leadership discussions would focus on: • what is working well • what have been past successes • what ideas they have to make it even better Envisage our incident investigations involving our people through the entire process - even the development of recommendations and implementation of actions. If you asked the workforce their thoughts on this approach to safety, how would they respond, and would safety performance improve? An extension of this thinking is also to revaluate how we measure safety.

Safety is the presence of positives, not the absence of negatives. The traditional view measures safety on incidents and other similar adverse outcomes.

When we view safety as the presence of positives, we are encouraged to expand our thinking on how we could measure it.

Comparing two organisations that perform the same work, where one organisation has more incidents than the other, this organisation is viewed as being ‘less safe’ than the other. However, from a risk management perspective, the hazards that need to be managed daily are no different - the risk remains regardless of the number of incidents. Measuring safety based on incidents is like measuring production based on how much coal there is left in the ground. It’s reactive, backwardlooking, and only looks at a fraction of the total performance. When we view safety as the presence of positives, we are encouraged to expand our thinking on how we could measure it. For example, an incident analysis for any given work activity would identify

that unwanted outcomes account for less than 1% of the activity time, which means things go right 99% of the time. Looking for, measuring, and talking about how often things go right is a step in the right direction. Quantitative vs qualitative measures The traditional view also measures safety on reactive quantitative measures, such as numbers of High Potential Incidents (HPIs) and Total Recordable Injury Frequency Rate (TRIFR). A different view encourages us to reflect on qualitative measures that can positively influence safety performance. Often referred to as higher-order goals, these qualitative measures have a positive impact on safety performance: • trust • care • commitment • listening • relationship • hope

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If you walked into any workplace that displayed a high level of one or more of these goals, what would the safety performance and culture look like? The opportunity and challenge for the industry is to have the courage to develop and measure these attributes to bring about a positive impact on safety performance. Safety is an ethical responsibility to those who perform the work on the frontline, not a bureaucratic activity. Do your frontline supervisors see safety as a value-add or just more paperwork? The Four Aspects of Operational Safety framework could be a catalyst to a changed attitude: 1. social safety – seeing safety as a value and promoting it as such, e.g. safety shares 2. administrative safety – the administrative aspects of safety, e.g. incident investigation 3. demonstrated safety – demonstrating to internal and external stakeholders, e.g. submitting safety data to external regulators

4. physical safety – ‘on the job’ safety, e.g. installation of handrails on working at height platforms Consider which of these aspects actually help those on the front line, and how much time and effort goes into these. There may well be some improvements to be made. It’s obvious that all stakeholders unions, regulators, mining organisations and contractors are, to differing degrees, exploring initiatives to enable improvement in safety performance. The three principles discussed require no cost to implement, merely a paradigm shift in thinking that encourages us to step into the next era of safety. The current system is not broken; let’s leverage off the best of what has come before us and move forward with courage. 

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The current system is not broken; let’s leverage off the best of what has come before us and move forward with courage.

Why blockchain technology is relevant to mining Martin Vasilescu, Davey Bickford Enaex

here was a time when terms like ‘smart shunt’ and ‘remote blaster’ held no meaning at all in the mining industry. Today, these words are commonly heard at mining sites, in boardrooms, and in conference halls where industry leaders discuss the latest blasting techniques.

New terminology constantly appears in our industry, and it takes time to sort out what’s relevant from what’s not. For instance, we usually hear the word ‘blockchain’ about cryptocurrencies like Bitcoin and Ethereum, but the scope of blockchain technology goes far beyond that. Blockchain has serious potential to improve transparency and accountability across many industries, including mining and METS. But to find out how, we need a simplified understanding of what blockchain technology is. What is blockchain? We’re talking about a digital ledger that is time-stamped, inalterable, and is beyond the control of any one entity in the network. Each transaction in the ledger is called a ‘block’. Blocks are bound together by a cryptographic process known as ‘hashing,’ which involves the conversion of any set of inputs to a unique fixed-length output. Attempts to change one record in the ledger would require all of the other

records to be changed simultaneously, which as far as we know is impossible. The transparency and security made possible by blockchain comes at a time when the world is fraught with cybersecurity concerns. That’s why billions of dollars are flowing into a multitude of potential applications. Applications to the mining industry The question is, how could blockchain technology be applied to the mining industry to achieve a more seamless production chain, eliminate drags on performance, and maybe even improve social licence? The Bangalore-based IT consultancy Wipro has published a paper on this topic. Mining.com has even more to say, detailing thirteen different areas in which resource companies “are using the blockchain.” An example would be the reconciliation of ore quantities that are sent to processing plants. Before blockchain, this information would have to exist in and be processed by, several different systems in the production chain (e.g. the databases of mining, transport, and manufacturing companies). Now the information can exist in one place and be visible to everyone in the production chain, thereby eliminating questions around those particular inputs. Of course, the values themselves have to be consistent and accurate – but the nature of blockchain is such that wrong inputs are visible to everyone and are therefore rooted out. This is why major financial institutions are reticent to embrace blockchain technology completely. The level of accountability is scary for organisations that would rather keep certain things out of view.

But for the mining industry in the 2020s, accountability is a valuable currency. Not only does it feed into social licence, but it also feeds into more efficient operations in which errors, deceptions, and pressure points are clearly identifiable. The various entities involved in the extraction, processing, shipping of ore – all the way to manufacturers of end-user products – can theoretically be a part of this transparency, with valuable social and economic effects. IoT data processing, contract automation, lease management, cargo-hiring, inventories, regulatory compliance – these are just a few of the areas that mining companies are looking at concerning blockchain technology. The critical thing to realise is that transparency and immutability are the real currency here. Why does blockchain interest Davey Bickford Enaex? One of the reasons why blockchain interests us is that digital blasting shares many of the same characteristics. A meticulous blast-design that makes use of cutting-edge hardware can relieve pressure at multiple points along the production chain, from excavation to circuit-crusher throughput. A good blast improves flow across the chain while reducing the time and materials involved. In the mining industry, we hear a lot these days about systemic success. This is due in large part to the acceleration of technology, the rising awareness of environmental realities, and the millennium mining boom which exposed specific systemic weaknesses. Like digital blasting, this is something simple that could elevate performance throughout the system. 

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How can the mining industry win the war for talent? David Reddin, DavidReddin.com

he things in life that never change – water is wet, dogs are loyal companions, exercise is the key to weight loss – seem to be dwarfed by things that change constantly. We live in a world where technology, politics, and social trends are as variable as the weather.

In business, for example, the need for talent is constant. Whatever corner of industry you focus on, success depends on finding and keeping talented people. The ways and means of doing this, however, are always changing. Organisations that ignore the trends will miss out on people who add significant value. This ‘war for talent,’ as McKinsey & Company first described it back in 1997, is forever being waged – but the rules of engagement are in a state of flux. A defensive position in the face of uncertainty To plan for the future, mining leaders need an element of predictability. They need to be confident in economic trends before they can justify the exploration of new mining sites, new technologies, and top talent. But if we’re honest, predictability and confidence are in short supply these days. Business leaders tend to hold off on progressive decisions and investments. They opt for a ‘wait and see’ approach, holding on to established ways in a bid to ensure survival. 108

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Listening to the internal dialogue of mining leaders This approach is not outlandish. The globalisation of business has amplified metrics of risk and reward - policies change, then change again. It seems less and less certain that the policy of today will be in place tomorrow. Meanwhile, here in Australia, government infrastructure projects are propping up the economy, drawing talent that would otherwise be available to mining and associated industries. It also makes top talent more expensive to procure. Inexperience with downcycles is another factor. In the past, we had a halfwayreliable seven-year cycle of good times, followed by a period of lean times. Leaders could plan around this with some level of confidence. But the Australian economy has not experienced recession for 28 years, and many of our younger business leaders have never been forced to navigate that terrain. The result is a degree of stasis. Instead of adapting to shifting circumstances, executives and managers often stick to what they know. When we invited an analyst from a major bank to speak at one of our client breakfasts not long ago, he outlined many of the ideas mentioned above and concluded that a ‘short, sharp recession’ might do us all a lot of good. The audience was mostly comprised of seasoned leaders who have been through lean times, and there was a collective groan. But was the speaker on to something? And what does all this uncertainty mean for the mining and resources sector?

Australia’s days of riding the sheep’s back are over, and the state of our economy rests heavily on the minerals we harvest. To say that the millennium mining boom was lucrative is putting it lightly. Investment was robust, growth seemed limitless, and commodity prices were high. Then, suddenly, it was over. The industry went into decline – along with its job opportunities, investments, returns, and talent. A lot of bright people sailed for safer shores, taking their experience and knowledge to industries that felt stable. Some who stayed in the mix were in no position to step up as top talent or to contribute boldly in ways that led the industry back to growth. In short, the resources sector began to cope rather than lead. We can’t understand these problems unless we examine some of the internal dialogue mining leaders are wrestling with. For starters, it’s often a struggle to find top talent, especially for remote locations. As a result, we have to pay more to bring in good people. Even if we land the right people, it’s a struggle to keep them. Their value in the industry is proven. There is often someone out there who is willing to pay more. If we lose confidence in our ability to retain top talent, we start to cut back on training and development. Why invest if the person isn’t going to stay or devote resources to building someone up and making them more desirable to others, resulting in their departure? Talented people are a quagmire for business leaders; their curiosity is a double-edged sword. They’re interested in new things.

They push the envelope and deliver exceptional value. When they start to lose that spark of inspiration, they look for the next step in their journey. Given these challenges, do we turn to contractors who have the technical expertise we need? It’s an option – but how does it impact our operations in the long-term? Does it wear away at our work culture and limit our focus to the purely technical aspects of mining? If the revolving door of mercenaries isn’t the culture we envision, another set of questions presents itself: • Do we develop strategies to overcome stereotypes about the mining industry? • Do we train our hiring managers to select for that elusive combination of traits known as ‘fit’? • Perhaps we lower the barriers to certain jobs. • Perhaps we shift our focus to the idea that skills can be taught and knowledge accumulated. • Perhaps we buy into the idea that candidates who bring less knowledge but more ‘fit’ will ultimately be more helpful to the organisation and its culture. All of these questions are circulating in between the ears of today’s mining leader, and they’re only the tip of the iceberg. Shifting attitudes and new generations In addition to addressing the instability of boom-and-bust cycles, the mining industry has to model its talent strategies around the seismic shifts in how people think about work and career, including: • Increased cynicism about employers, how they treat their people, and the demands they make. • An understanding that

many companies are no longer loyal to their people but use them as a commodity according to the economic need. • A consequent treatment of employers as a commodity and greater preparedness to move on if things get tough or uncomfortable. We can’t forget that many young professionals and students have witnessed their parents or grandparents lose a job despite years of loyalty and are determined to avoid a similar fate for themselves. Meanwhile, parents often steer their kids away from traditional or trade employment because they ‘want more for them.’ Remember also that GenXers and millennials are information-savvy. They gather intel on prospective employers like secret agents, using sites like Glassdoor and LinkedIn to increase their knowledge of the various industries, employers, and career prospects available to them. In their eyes, the dollars and cents of a traditional career path simply don’t add up. Work-life balance The idea of work-life balance, for example, has new relevance today. In the past, work was work. For many people, long hours and weeks away from home were actually a badge of honour. There are still people who feel this way, but their number is falling. Our executive recruitment work has shown us first-hand that a growing number of executives want to step their responsibilities down to achieve a more balanced life. Nor can we forget the high standard (and cost) of living in Australia. It’s common for both partners to work, and stress plays a growing role in household decisionmaking as families strive

for equilibrium. We’ve seen people make conscious decisions to limit their ambitions due to their 8:6 roster, or solid pay for a role with limited responsibility. For business leaders, this instinct represents a blockage in the talent pipeline. When we can’t get the most out of people in the long-term, we end up recruiting around them. This is expensive. Granted, we also run into many people who are passionate about the resources sector and don’t want to work anywhere else. But consider this - when the millennial mining boom came to a screeching halt, there were suddenly far fewer students in mining engineer courses. Those that did enter the field landed their first roles before graduation, and their starting salaries were above historical norms. The point is not to preach doom and gloom, but to create strategies informed by realism. Talented people are exactly what the resources sector needs to drive change, manage big projects, and lead companies through good and bad times. The mining industry has many technical issues to address. Still, the overarching challenge is to deepen the pool of emerging talent available to us, regardless of where we sit on the economic cycle. Deepening the pool - 12 practical steps Mining is vital to Australia’s future, and it has excellent potential to develop exactly what the talent pool wants. The task faced by mining leaders is not only to access this talent pool but to deepen it by building the interest of candidates who previously couldn’t see themselves as contenders for roles in the sector. BBMC Yearbook 2019

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It’s good when talented people stay with an organisation, but it’s also useful when they stay within our industry. With strategy and clear thinking, we’ve helped clients at all stages of growth develop and implement a reliable long-term talent plan in 12 practical steps: 1. We looked at how jobs were described – for example, shifting emphasis from what had to be ‘done’ to what could be ‘achieved’. 2. We emphasised how things had to be achieved – not only technically, but in terms of the company’s values and culture. Based on established research on what separates high achievers from ‘also-rans’, we identified and emphasised six Critical Success Factors (CSFs) within the specific company culture. 3. We used these CSFs to drive recruitment exercises at every level – including blue collar, junior office, technical/professional and management positions. Too often, companies throw their weight into recruiting people up the line and forget to look in the opposite direction. The junior person of today is the mid-level person five years from now, and the senior level person seven to ten years after that – but this development can only take place if we recruit and manage the right people at every level with care and attention. 4. Managers at all levels were taught how to assess talented people, rather than just interview. They were given techniques to help them understand the choices candidates make in their lives, and the motivational patterns underpinning those choices. They were shown how to identify patterns that helped them predict how a given prospect might perform in the job, in the culture, in the business. They were shown how to uncover career aspirations, strengths, weaknesses, and development needs – and how to apply the CSF’s. ‘Right’ hires began to follow. Staff turnover dropped, and the cost of recruitment with it. 5. Managers were well-trained in how to give and receive feedback. They learned how to use feedback as a developmental tool for their teams – and themselves. 6. Performance management was tied to the KPIs for each role and became a two-way process. Time was spent on aspirations, development needs and career plans, with resultant individual plans and agreed directions. 7. Investment in relevant training was bumped up. This included programs for aspiring managers and leaders, technical training for engineers, and soft skills training for technical team members who also had selling and account management skills. 8. Leaders and managers were given KPIs around the attraction, development and retention of top talent. A proportion of bonus was paid against those measures. 110

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9. A talent pipeline was developed both internally and externally. Efforts were made to identify the next generation of talent the company would be targeting. This effort was backed with a professional communications plan to evolve the company image. In many cases, this was so successful that top talent began to apply directly. 10. An investment was made in HR systems, processes and expertise. A succession plan was prepared and managed. As a result, people could see the trajectory of their career path, knowing they had a part in shaping it. Increased feelings of engagement were observed through annual 360-degree feedback. 11. Leaders and managers did more to remove barriers to their team’s performance. They went out into the field with their teams and put themselves in front of customers with team members. They made themselves available, listened to feedback, and held their teams accountable. 12. Each quarter, the Senior Leadership Team (SLT) reviewed progress against the business plan. There was an annual resourcing plan, developed in collaboration with HR, that could be adjusted to reflect changing requirements and demands. The plan often indicated promotion from within and subsequent recruitment at a lower level – or dipping into an externally managed talent pipeline of qualified and screened candidates. Our clients have developed an understanding that ‘fit’ is not just a fashionable concept – it’s the X-factor that makes their people successful and makes their work cultures desirable. It results in a top talent team that kicks goals consistently. They also learn that certain roles need to be reinvented to reflect the modern market and their own changing needs. Talent management is mission-critical, and they must have the courage to step outside the mould. They don’t play around the edge. Instead, they actively predict their needs and are able to address them quickly and effectively. In an age where bottom lines and shareholder returns drive everything, the mining industry must sharpen its focus on talent management. If we develop the right mix of people, business performs better. If we overcome negative stereotypes and promote diversity, our work cultures are elevated. If we push the envelope and embrace new methods, we will find and keep the talent we need. As leaders in this great industry, we need to understand our responsibility around bringing talented individuals into the sector, and not just our own company. Let’s adopt a big-picture view of talent, and make people want to join us and stay. There is a war for talent being fought and winning is up to all of us. 

Mining Services Directory ACCOMMODATION & BUILDINGS

ACCOMMODATION & BUILDINGS

Lloyds

AUCTIONEERS

Capricorn Villas - feel at home when you’re away from home. Need accommodation in Middlemount? You can’t go past Capricorn Villas. As well as being great value for money, villas are modern in style with a fabulous range of amenities, including a swimming pool, BBQ and Rec Hall. For more information visit www.capricorn151.com.au

ACCOMMODATION & BUILDINGS

Civeo is a global workforce accommodation specialist dedicated to helping people maintain healthy, productive, connected lives while living and working away from home. With villages at Coppabella, Dysart, Middlemount, Moranbah and Nebo, there’s a Civeo solution near your site.

AND

VALUERS

To discuss long term opportunities contact Bradley.Morgan@civeo.com

We partner with leading banks, financiers, insurance companies, corporate recovery and insolvency companies. We are also endorsed for State, Commonwealth and Local Government Departments.

Make a reservation or find out more at civeo.com

Visit www.lloydsauctions.com.au or call 1800 456 588.

ACCOMMODATION & BUILDINGS

COFFEE HOUSE APARTMENT MOTEL

Conveniently located in the heart of Mackay, Rydges Mackay Suites offers business and leisure travellers a deluxe accommodation experience in a prime locale. Our 90-room hotel offers complimentary onsite parking, free Wi-Fi, 24-hour reception and 24-hour room service. Visit www.rydges.com or call us on (07) 4969 1000

Southern Cross Motel Group brings the luxury of big city hotels to regional Australia, offering a blend of stylish, practical design and honest old-fashioned service. With properties from Mackay in northern QLD to Junee in southern NSW, comfort is never far away under the Southern Cross. Call us on 1300 979 746 or visit www.southerncrossmotelgroup.com.au

ACCOMMODATION & BUILDINGS

CIVIL CONTRACTORS

THE WINDMILL MOTEL AND EVENTS CENTRE

A proud Queensland-owned civil construction operation, the Allroads Group encompasses Allroads, Allpower & Lighting, Australian Pavement Specialists and Pink Plant Hire & Haulage. Our clients benefit from our integrated multidisciplinary approach to delivering projects across mining, commercial building, transport and urban development; offering a range of earthworks, road and concrete construction, water, wastewater, electrical and surveying solutions.

Positioned on the quiet banks of the Pioneer River you’ll find Windmill Motel & Events Centre - a convenient location for the Mackay CBD, Airport and Harbour. Whether you need a relaxing place to sleep, a delicious meal to eat or a fabulous space to hold your next event we’d love to help! Call us on 07 4944 3344 or visit www.windmillmotel.com.au

Conveniently located at the corner of William and Bolsover Streets, we’re in easy walking distance of Rockhampton’s CBD with its local bars, public transport and shopping. With a fantastic onsite restaurant and a combination of Executive Rooms and Self-Service Apartments to suit short and long stay requirements, you’re always welcome. Call 07 4927 5722 or visit www.coffeehouse.com.au

CIVIL CONTRACTORS

Leader Earthworks are proud experts in the excavation & earthmoving industry, specialising in bulk earthworks, civil construction & plant hire. Leader utilises a modern fleet of dump trucks, excavators, dozers & graders equipped with the latest GPS machine guidance systems. Leader prides themselves on their commitment to safety and service. Visit our website www.leaderearthworks.com.au or call 0415 811 481

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Mining Services Directory CONSUMABLES

CONSUMABLES

ELECTRICAL

Dulux Protective Coatings use of world class technologies, local market presence, depth of experience and technical expertise, enables us to work with our customers to provide long term and sustainable solutions for the protection of new and existing infrastructure, facilities, plant and equipment.

In 2019 we have been operational for 39 years. Our clients are across the board from large industrial companies, contractors, small business operators to individuals.

MAICON is a local Moranbah business providing specialised electrical services to the mining sector; BMA Compliance Inspections, Thermal Imagery, Cable Locating, Brake Testing, Soil Resistivity Testing.

Visit our website at www.duluxprotectivecoatings.com.au

We pride ourselves on our excellent customer service, second to none quality (we hold Quality Management System ISO9001:2015) - and we promise to deliver on time. Visit www.gladstoneprinting.com.au or call (07) 4979 2466

Supporting Tier 1 companies on mine sites across the Bowen Basin with site establishment and statutory compliance; including Test & Tag and HVAC/Refrigeration services. Visit www.maicon.net.au or phone 1300 624 266

ELECTRICAL