WA Works winter 2020

SU

Supply Chain and Major Project News

Pr Maj BS Lif oje or CR t O cts IB ut ER ON LY

Winter 2020

Green Hydrogen Gas Fuels Project Hopes

Defence

Exclusive

Resources

A trio of Henderson opportunities

Nev Power on the road ahead

How FIFO saved the day

News, Profiles, Major Projects List, Opinion and more Winter 2020 WA WORKS 1

All thethe rightnetworking connections Join for local industry

platform that’s helping Australian business grow If you are looking to connect with mining, construction, infrastructure, defence and other major projects in WA, you need the Industry Capability Network of Western Australia (ICNWA).

ICNWA offers access to project information and opportunities and is a FREE service for both Chamber of Commerce and Industry of Western Australia Members and non-members.

By using our online platforms, you can register your interest as a supplier for major projects. Projects and procurement teams can use the service to access an extensive supplier base.

To find out more about ICNWA, for assistance in listing your project and using our service or registering your business on our platforms, please contact the team today on (08) 9365 7543 or visit cciwa.com/icnwa

2 WA WORKS Winter 2020

Contents

Cover Story

Wind farms will be important in powering green hydrogen plants

12

Can hydrogen supercharge WA?

Opinion

Winter 2020

CEO’s Desk

5

Economic outlook

8

A day in the life - Natalie Busch, Hassel

10

On the Ground - LNG turnaround time

11

Special Feature: Change for the better

18

Charged up about battery storage

19

Mark McGowan – Coming out of hibernation

9

Fighting a skills crunch

21

Mathias Cormann – Building jobs

17

A powerful agenda

22

Louise Thomas – Regulatory sandboxes

35

Piloting a course for mine trainees

24

Andy Graham – Cleaning up procurement

42

The nuts and bolts of 3D printing

26

Rekindling the place of the big fire

28

Under the dome - Tellus Holdings

30

Changing offices

32

Tech Talk - Shipshape and seeing red

34

A road-worthy recovery

36

Fresh start for MAK Water

38

East Rockingham Corrections Our story last issue on the East Rockingham Waste to Energy plant contained incorrect ownership details due to a reporter’s error. John Laing, Masdar, Acciona and Hitachi Zosen Inova will own the plant that is being built by Acciona and HZI. It will be operated by HZI and Suez.

Also, the East Rockingham plant’s capacity to recover about 6000t of metal missed by conventional recycling was incorrectly attributed to Avertas Energy’s plant under construction at Kwinana.

Lastly, Marc Stammbach is Australian managing director of HZI, not its CEO.

Do you employ workers in the construction industry?

If you employ workers in the construction industry you may be required by law to register in the Construction Industry Long Service Leave Scheme.

Find out by visiting www.myleave.wa.gov.au and looking through the FAQ section or by calling 08 9476 5400 and follow the prompts for employers.

Major Projects List

40

Mitsui gas project edging closer

41

Hundreds of jobs at Robe Valley

41

ICN Update - Golden rail opportunity

43

Gas in the pipeline

46

Less dust, more exports for BHP

49

How FIFO saved the day

50

Navy build opportunity

52

A glimpse into the future of OPVs

54

Cape build ensures Austal jobs

57

L3 Oceania’s magnetic attraction

58

Major Resource Project Maps

62

Digging in

64

The echidna

69 Winter 2020 WA WORKS 3

Welcome

Editor’s Letter The future looks greener

N

ormally WA Works is strongly focused on what lays ahead in terms of up-and-coming supply chain prospects.

That remains so for this issue, which includes a special feature on opportunities like hydrogen, battery storage and 3D printing that are expected to be accelerated during the road to recovery.

But sometimes it’s instructive to glance in the rear view mirror before plotting your path forward.

Three months ago, our autumn issue revealed an industry rocked by major oil and gas project deferrals, unprecedented measures to flatten the curve, and concerted efforts to keep essential parts of the economy open and limit job losses.

Mining was deemed critically important in this respect and WA’s resources sector duly delivered, assisted by amazingly solid cooperation between normally fierce industry competitors, state and federal governments, small businesses, and workers.

Fly-in fly-out workers were critical to this delivery, and our FIFO feature is a salutary reminder of the importance of big export industries to WA as efforts continue to diversify the economy in the longer term.

Fast forward three months and there is light at the end of the tunnel as COVID-19 restrictions ease and new projects emerge.

Our latest Major Projects List identifies $1.5 billion of new proposals, and these exclude the bundle of road and railway projects being fast-tracked by government to reboot construction jobs.

Don’t miss our latest list (including Main

Roads’ major projects) starting on page 40, produced exclusively for subscribers to help tailor their business plans as the project pipeline grows larger.

Speaking of pipelines, energy has emerged as a key theme as the nation looks to rebuild jobs and the economy.

In WA, much of it is gas, but not gas as we generally know it.

Our special hydrogen feature reveals there is more than $3b worth of green hydrogen projects nationally lining up for the latest federal funding package, with dozens of studies and new ventures underway in WA. Meanwhile, renewable energy in all its guises continues to make inroads amid falling costs and rising demand for non-fossil fuel sources.

In this context, our article on an often overlooked renewables opportunity, supplying the fast-growing demand for battery storage systems, is extremely timely.

Nevertheless, conventional energy such as gas and LNG will likely remain important for the economy for decades to come.

National COVID-19 Coordination Commission Chairman Nev Power has rekindled the old idea of building a massive West-East natural gas pipeline to move some of WA’s surplus energy to the east coast.

In an exclusive interview, the former Fortescue chief explains why the concept is still relevant to a Federal Government seeking cheap energy to drive the economic revival.

Finally, our bumper defence section showcases three significant WA project opportunities, all of them located on the Henderson industrial strip.

Stephen Bell

We hope you enjoy reading WA Works as much as we do producing it.

Share your thoughts at editor@cciwa.com

4 WA WORKS Winter 2020

Visit cciwa.com/waworks

Published quarterly by Chamber of Commerce and Industry of Western Australia Limited 235 St Georges Terrace, Perth, WA 6000 (08) 9365 7555 info@cciwa.com www.cciwa.com President Nicolle Jenkins Chief Executive Officer Chris Rodwell Editor Stephen Bell (08) 9365 7445 editor@cciwa.com Chief Editor Elva Darnell (08) 9365 7437 elva.darnell@cciwa.com Graphic Designer Katie Addison (08) 9365 7518 katie.addison@cciwa.com Advertising 1300 422 492 advertising@cciwa.com

Disclaimer: This information is current at June 2020. CCIWA has taken all reasonable care in preparing this information, however, it is provided as a guide only. You should seek specific advice from a CCIWA adviser before acting. CCIWA does not accept liability for any claim which may arise from any person acting or refraining from acting on this information.

The views and opinions expressed are not necessarily the views of CCIWA. Reproduction of any CCIWA material is not permitted without written authorisation from the Editor. © Copyright CCIWA. All rights reserved

CEO’s Desk

Chris Rodwell

Need to keep up reform momentum To fully recover from COVID-19 the economy needs to be fuelled by more reforms such as the very big prizes of tax and industrial relations, writes Chris Rodwell

M

any in our state right now are revelling in WA’s relatively early emergence from COVID-19, full of gratitude and self-congratulation.

There is a palpable sense of relief. This stems not only from the fact that we have so far avoided a major health crisis, but also because, at the urging of the business community, WA has managed to incrementally phase out restraints on business that badly impacted health and leisure, recreation, accommodation, food and dining, and many other sectors.

There’s also good news on other fronts.

Longstanding CCIWA policy recommendations have been taken up, supporting businesses to keep costs down and to make it easier to invest and create jobs.

This is because governments at all levels have been persuaded that many of our laws ran contrary to common sense and good business.

For example, WA businesses have been spared many planning requirements — most critically, change-of-use approvals. This has enabled businesses to make simple but critical adjustments, like to expand, change or vary their mode of delivery, provide alternative parking and accommodation, develop new products, or move premises, without imposing additional fees and delays.

The changes serve to highlight how unnecessarily complex, time-consuming and counterproductive many local planning schemes and approval requirements are, even in ordinary times.

Supporting emerging technologies

with steps to address the longstanding issue of administrative delays caused by state and Commonwealth environmental protection and biodiversity conservation processes.

These changes remove duplication and inefficiencies which routinely delay the start of major projects, and the thousands of associated jobs, by up to four years. We are also hopeful the State Government will act on some additional recommendations that we’ve pushed hard through the Streamline WA initiative, not only in the resources sectors, but also in tourism. Watch this space.

And in April, CCIWA called for the abolition of the Council of Australian Governments in favour of the National Cabinet, one of the best advances of the Australian COVID-19 response.

That the Government shared our view offers a real chance to apply a more efficient model of national leadership to the task of addressing our economic challenges.

So, it is right to acknowledge that our state and our nation are ahead of the pack in some respects.

Now is not the time to lose momentum, however. These are early wins, but business requires much more if it is to increase productivity and take on competition from around the globe.

Glittering prizes We need to cast our gaze to the very big reform prizes: tax and industrial relations reform.

Another decade of incrementalism will undermine business confidence, drive capital to other markets, dampen job creation and compromise our standard of living.

WA is not yet halfway done in managing the impacts of COVID-19.

It’s too expensive to buy a home. It’s too expensive to create a job. If we want to fix these things, we have to go to the source.

CCIWA has been urging our decision-makers to replace bad taxes like stamp duty and payroll tax, with broad-based ones like land tax. With reforms to our tax, skills and regulatory system, our Recovery Reform Roadmap offers more ways to promote WA’s competitive advantage, to bring in business investment and to attract more people to WA. Right now, WA is set to lose one of our seats in Federal Parliament due to our draining population. Our loss is Melbourne’s gain.

Though stimulus measures for key sectors like construction do provide relief, they do not solve the fundamental problems of population growth and low business investment We also need to see the Government’s formula for re-opening our state and international borders. Thousands of Western Australians rely on other markets for their livelihoods, and they cannot remain in a holding pattern with no comprehension of when they might be able to properly rebuild their business.

Whatever the criteria — community transmission, testing and tracing, quarantine and social distancing measures — this should not be more art than science.

So, as we set out towards recovery, you can expect CCIWA to always remain at the forefront of economic debate, pushing our leaders to shape an economy with more jobs, more opportunity and more horsepower.

There’s much more to do beyond this current tranche of work. Reform to our regulations could also occur through specific measures to facilitate innovation in emerging technologies like automation, drones, artificial intelligence, machine learning and 3D printing.

We secured a waiver of payroll tax obligations for 10,700 smaller businesses and license fee waivers for builders, plumbers, electricians and commercial fishing businesses. Small businesses received electricity fee relief and were shielded from being disconnected for non-payment of water and power bills.

Taking up another CCIWA recommendation, the Federal Government put major road, rail and resources projects in WA on a ‘fast-track’,

Winter 2020 WA WORKS 5

6 WA WORKS Winter 2020

The Big Picture A fully loaded Fortescue iron ore train makes its way to the company’s export facilities at Port Hedland. The ability of Fortescue and the other big iron ore miners to continue operations during COVID-19 was critical for the WA and national economy. The value of iron ore exports was expected to exceed $100 billion in the financial year ended June 30, 2020.

Winter 2020 WA WORKS 7

Economic Outlook

Aaron Morey

Fast bounce-back needs more people WA needs to attract more capital and skilled people to its shores, helping to boost residential construction and the economy, says Aaron Morey

A

s the Western Australian economy begins its recovery from the brutal blow inflicted by COVID-19, one of the questions most often asked is: how quickly can we bounce back?

In large part, the answer to that question is up to governments.

If governments have the political courage to tackle meaningful policy reform to make Australian and Western Australian businesses more globally competitive, our economy will have the strength to drive us forward.

The Chamber of Commerce and Industry WA’s COVID-19 Recovery Reform Roadmap provides a detailed reform agenda to bolster WA’s economic recovery. The plan offers policy actions to keep costs low, improve regulation, strengthen skills and infrastructure, and re-enter the global market. In the coming recovery phase, the greatest imperative will be to make businesses stronger, our economy more competitive and better positioned to create jobs.

Another important piece of the recovery puzzle is population.

A bigger population brings with it a number of benefits, many of which are under-appreciated.

It helps to drive down prices across the economy due to scale economies. And a larger and more diverse population creates opportunities for businesses to develop new products and services to serve niche markets, making for a more interesting retail and service economy. Think of all the unique shopping experiences in places like London, New York and even Melbourne.

Population growth is also one of the few

sustainable drivers of housing and construction.

As such, it is important that we have a strategy to sustainably grow our population once international borders are reopened.

So how do we grow our population? A growing economy is a good place to start.

The more economic opportunities we create, the more we will attract people to our state, creating a virtuous circle.

To this end, the Chamber of Commerce and Industry WA is calling for generational reform of our tax system, to make investing in Western Australia more attractive. The need for this reform existed well before COVID-19, as evidenced by weak business investment in Western Australia outside the mining sector (see chart).

the risk from having parts of those chains concentrated within a single geographic region. With the current disruption, and the likely reticence of some countries in the recovery phase to fully re-embrace global trade, there is a significant opportunity for Western Australia to conduct a forward press into international markets.

Western Australia’s management of COVID-19, both in respect of health and economic aspects, has sent a clear message to the world that its institutions have a better grasp than most on how to support the health of its people while still being able to foster a modern, complex economy. This achievement is like honey to bees for a global investment community seeking safe havens.

“The greatest imperative will be to make businesses stronger, our economy more competitive and better positioned to create jobs” Tax reform has to be complemented by a concerted effort to attract international investment into Western Australia.

COVID-19 has disconnected countries and their economies from the global marketplace.

The pandemic has also laid bare some of the risks inherent in global value chains, including

And it is not just about investment. It will also be the case that people with both capital and higher skills will be drawn to WA. This would serve not only to support stronger residential construction, but to deepen the state’s skills base for stronger economic growth.

To this end, we need measures to strengthen the value proposition for investing in WA, including the development of a WA investment prospectus and a single deal book. We also need clear strategies for making hard presses into key investment markets, and to recalibrate the resourcing of overseas trade office to see how they can leverage existing resources.

Beyond specific measures like these, it is also vitally important to recognise that a general openness to investment and movement of people will go a long way to helping WA take its opportunities in the global economy, grow its population, and in turn support our housing and construction sectors.

Aaron Morey is CCIWA’s Chief Economist.

8 WA WORKS Winter 2020

Memo from the Premier

Coming out of hibernation The State Government is moving quickly to lift COVID-19 restrictions and rebuild a prosperous economy “full of opportunity” for all Western Australians, says Premier Mark McGowan

T

he past five months have been nothing short of tumultuous for the whole business community. It has been a rollercoaster for every sector of society, as we have had to come grips with the impacts of the COVID-19 pandemic, from the changes in domestic and global demand from the pandemic itself, to the economic consequences from the measures put in place to halt the spread.

Australia, and indeed Western Australia, has been spared the kind of devastation seen in the US, UK and Italy, thanks to a strong policy response that has leveraged our isolation and the cooperation and resilience of the community.

It puts us in a position to be able to safely fire back up the economy far sooner than many other parts of the world.

My Government’s economic response for much of the crisis so far has been aligned with the federal strategy of ‘hibernation’ — assisting businesses and households to ride out the period of time where restrictions on life and commerce would be required to supress

the pandemic. The WA Government alone has invested $1.8 billion in support measures, including payroll tax grants, credits to power bills and a moratorium on evictions.

Now, as we increasingly lift restrictions inside Western Australia as the health advice allows, we move into the recovery phase, where the focus shifts from ‘hibernation’ to stimulus.

Mark McGowan

There has been an overwhelmingly positive response to our stimulus initiatives already.

Our proposed planning reforms dramatically reduce red tape to increase activity, whether minor renovations on the family home, or making it easier to get major, job-creating developments off the ground.

We have also announced a $444 million stimulus package for the residential construction sector that will support about 4300 jobs across the city and the regions. The centrepiece is the Building Bonus package, a $117m program for $20,000 grants provided to homebuyers who build new homes. Our grant is not means tested, nor does it have a cap on property price in order to create as many jobs as possible. But it can be combined with the federal HomeBuilder grant and existing incentives, meaning certain West Australians building their first home will be eligible for a nearly $70,000 benefit.

Complementing this is our Social Housing Economic Recovery package: $319m to build, buy renovate and maintain social housing right across WA. It begins immediately and will run into next financial year, providing certainty to tradespeople and material suppliers with an ongoing pipeline of work.

These are the initial steps on the long road to recovery. A lot of work and some very expeditious consultation is currently underway to develop the State’s Recovery Plan — the short and medium-term plan to get WA back to a new normal. The plan will consider the economy, industry policy, healthcare, our regions and social impacts, recommending policy measures, stimulus and infrastructure to pursue.

CCIWA is a member of my State Recovery Advisory Group, and I trust they will work hard and selflessly in the interests of all West Australians.

Success will require hard work, cooperation and vigilance against the pandemic, which despite our state’s success in suppression,

“The WA Government alone has invested $1.8b in support measures, including payroll tax grants, credits to power bills and a moratorium on evictions” We will be moving very quickly and there will likely be additional measures put in place by the time you read this, so I encourage every reader to stay informed of the announcements and how it may benefit their industry.

still rages around the world. But I have every confidence, with the muscle of State Government and the cooperation of the community, we will build a Western Australia that’s prosperous, fair and full of opportunity.

Winter 2020 WA WORKS 9

On the ground

The importance of the public realm A day in the life of … Natalie Busch, Hassell Perth Principal Landscape Architect

I

am a Principal Landscape Architect in the Hassell Perth studio. I am also the practice leader for our business unit; alongside project work, I manage the people in my team, financial reporting and design quality.

I’ve been at Hassell for nearly 15 years.

I like getting to work on some big, exciting construction projects. It can be complex and stressful, but I thrive in that sort of environment.

I also enjoy working alongside architects, developers, contractors and engineers on the same team to get to a great built outcome.

Before COVID-19, I had a typical sort of consultant/construction day — dropping my kids off at school and getting to the office by about nine o’clock. I’d check in on the team over coffee, and then head about my day preparing design propositions, meeting with clients, or heading out to site to inspect progress. Pretty standard really, but now I’m in yoga pants and ugg boots!

Hassell was one of the first companies to move to working from home and restrict staff from going to any external meetings. I’ve improved substantially at presenting to clients and team members using video but have still been to some construction sites because of contractual obligations.

Recently we had practical completion for the $80 million EZONE UWA engineering building.

Working with Perkins Builders, we had some good social distancing practises in place. I’m lucky being a landscape architect as most of my sites are external and the team tried to visit late in the afternoon, when fewer people were on site.

10 WA WORKS Winter 2020

At the Chevron Tower project, we have been working with head contractor Multiplex and their client Brookfield. I’m looking mostly at the ground plane — the public realm.

It is going to bring a much greater population of people to the area, so the ground plane is really an important extension of Elizabeth Quay for people to move through, have meetings, eat their lunch or go alfresco.

more informal areas for people to gather and socialise. Everyone’s now really valuing those sorts of spaces to connect. I think they’re going to be more important than ever.

I’m not an interior designer, but I think COVID-19 has really been an ‘aha!’ moment for those companies using traditional workplace environments who haven’t embraced a culture of flexible practices, such as working from home. The pandemic has shown us things won’t necessarily break if people aren’t in the office together.

Aside from my regular job, I also chair the WA committee for the National Association of Women in Construction, which I am passionate about. Women represent just 11 per cent of the total construction industry and we at NAWIC genuinely believe that you can’t be what you can’t see. And so, through our annual awards we showcase people, mostly women, but also men supporting women, and diversity within the industry.

We’ve found over the years the awards have really helped to inspire people to find mentors, and reach out to them. It also gives people confidence within their own organisations to promote change.

It’s been a successful program and something that we will do this year. The format may not be a big lunch or breakfast event. It may be

“I think COVID-19 has really been an ‘aha!’ moment for those companies using traditional workplace environments” I think Brookfield is invested in making sure that this is a world-class building. And everybody involved, the whole supply chain, will benefit from this being such a quality build.

Brookfield and Chevron have a big commitment to the Whadjuk people, the traditional owners of the site at One The Esplanade. I’ve been really fortunate to be involved in that process and work with them to design a ground plan, which has been great, and I think it will be a really important part of how the project is accepted by the community.

We are yet to see how the impact of COVID-19 will play out in landscaped places. But the market is telling us people are valuing those external places a lot more than in the past. They also offer

online, but we genuinely believe that showcasing those leaders and companies who support diversity is a huge part of the change.

We also run an education committee, and through that we offer a mentoring program for women. One of the great outcomes is we’re connecting senior industry leaders to up-and-coming women, and most of those mentors are men.

They are managers and project directors of the most senior companies in our industry. And it’s a two-way learning process. The mentored women are obviously receiving incredible support, but at the same time, these amazing industry leaders are learning firsthand about some of the struggles within the construction industry.

On the ground

Downer ready to ramp up $450m contract

The Chevron-operated Gorgon LNG plant

Turnaround time

I

t is turnaround time for WA’s two LNG giants. Chevron’s maintenance shutdown of Train 2 at its Gorgon LNG plant will continue through to next month, while Woodside is engaging with suppliers ahead of a Karratha turnaround in September.

Chevron’s T2 turnaround, involving a shutdown of the Gorgon plant to undertake numerous inspections, repairs and equipment changeouts, started last month and is due to run until July 11, the company said.

“It is a timely boost for LNG workers and suppliers” It is a timely boost for LNG workers and suppliers amid several COVID-19-driven maintenance and construction deferrals elsewhere in the oil and gas industry.

Chevron said about 700 workers and more than 50 contractors and sub-contractors are involved in the current work on T2, which had been planned for more than four years.

Modifications were made to the turnaround in early 2020, aligned with the advice of government health authorities relating to the pandemic.

Chevron Australia Managing Director Al Williams said the turnaround is “one of the most challenging and critical tasks we undertake in the oil and gas industry”.

The work scopes require tens of thousands of work hours and thousands of inspections of electrical and fixed equipment. More than 4000 fin-fan plugs, used to keep the LNG trains cool, will be removed, inspected and cleaned.

The logistics include accommodation services, catering and a daily bus service to shuttle workers around Barrow Island.

Gorgon, a three-train, 15.6 million tonnes per annum LNG facility and domestic gas plant, exported its first LNG cargo in March 2016 following a six-year construction program.

The Chevron turnaround comes a few months after two other big Pilbara oil and gas operators announced the deferral of some maintenance activities amid the plunge in energy prices caused by the COVID-19 outbreak.

Woodside’s engagement Woodside, as part of a $100 million cut in operating expenditure, said in March that non-essential activities for its 2020 work plan had been cancelled or deferred.

This resulted in major turnarounds for LNG Train 3 at the North West Shelf Karratha Gas Plant (KGP) being deferred until September 2020 and Train 4 deferred to August 2021.

For the upcoming maintenance shutdowns, Woodside and its contractors would “continue to engage directly with local suppliers to understand capabilities and maximise local participation”, a Woodside spokesperson told WA Works.

The company was also working with its contractors to manage the impacts of COVID-19, including maintaining ongoing employment “wherever practicable”.

“A significant number of contractor employees have been remobilised to site to carry out maintenance work under the next phase of our COVID-19 operating model, the spokesperson said.

Santos, meanwhile, cut $200m from its forecast capital expenditure in its base business in 2020, while maintaining production.

Discretionary expenditure and exploration programs had also been deferred where appropriate, the Adelaide-based company said.

In one of the biggest supply chain deals of the current iron ore boom, Downer has won a $450 million contract for early mining and maintenance services at Fortescue’s Eliwana project.

Under the terms of the five-year deal, Downer will complete early works operations over two years as the $1.8 billion (US$1.27b) Pilbara mine site is established.

After the initial term, the operations will transition to Fortescue’s autonomous mining fleets, with Downer to remain on site for another three years to provide maintenance services.

It is the second Eliwana project package to be executed by Downer after a bulk earthworks contract which began late last year, the company says.

From July, the contractor will start ramping up to about 220 people, said Andy Haslam, Downer’s General Manager Open Cut West.

“Downer will use a small number of specialised subcontractors, mostly in the equipment maintenance area, but this can change depending on project requirements and client requests,” Haslam told WA Works.

The company also had an “extensive database of local subbies whom we have built up a long-term relationship with over many years working in the Pilbara,” Haslam said.

“Downer first started working with Fortescue at Christmas Creek in 2010 and that association has been extended to working with local companies throughout the region,” he said.

In its recent March quarterly review, Fortescue said it was working with its contractors and suppliers to “mitigate any impact of COVID-19” on Eliwana’s project schedule.

Site works were ramping up with the construction peak still expected in the middle of this year, in accordance with the schedule of first ore on train in December, it said.

Eliwana achieved several milestones in the quarter, including the first steel erection for the Ore Processing Facility, and finishing the permanent village and aerodrome.

The first charter flight was expected in the June quarter, while pre-strip mining is scheduled to commence in the first quarter of FY 2021.

Winter 2020 WA WORKS 11

Can hydrogen supercharge WA? The $3 billion worth of national projects lining up for the latest found of Federal funding is the most convincing argument yet that green hydrogen may soon become a serious alternative to fossil fuels.

And in WA, we have more than a dozen projects in the pipeline, writes Stephen Bell

D

ongara, a windy coastal town just south of Geraldton, is known for tourism and agricultural industries such as crayfishing, alongside a smattering of oil and gas production from the Perth Basin.

But the Mid West holiday spot may soon become better known for “green” hydrogen than spiny crustaceans if Perth start-up Infinite Blue Energy has its way.

IBE says it has signed a term sheet with a China Hydrogen-led consortium of international investors for $300 million (in equity and debt) for the first stage of its Arrowsmith project at Dongara. The plant is expected to produce 25 tonnes of hydrogen per day by electrolysing water using solar and wind power.

The first stage could generate about 300

12 WA WORKS Winter 2020

construction jobs, most of them sourced from the Mid West, and around 50 in Perth’s CBD, says IBE co-founder and CEO Stephen Gauld.

“The initial build is $300 million, however, additional investment is required for pipeline connections and an offshore jetty,” Gauld told WA Works.

“We’re working with a large energy company to connect the Arrowsmith hydrogen plant into one of the natural gas trunk lines to Perth for domestic distribution at a 5 to 10 per cent blend and also looking to invest in the project as part of the build,” he says.

There’s definitely something in the air this year when it comes to hydrogen, with IBE just one of the many WA hopefuls itching to step on the gas.

Dozens of projects and deals are springing

up with both federal and state funding programs underpinning most of the action.

In March, for instance, the $162m industry-backed Future Energy Exports Cooperative Research Centre (FenEx CRC) was established after the Federal Government tipped in $40m. The national collaboration of 28 industry, government and research partners — including Chevron, ITM Power, Mineral Resources, UWA and Curtin — is charged with developing technologies to improve LNG processes and develop new exports like hydrogen.

A few weeks later Fortescue said it had

Wind power is set to play a major role in producing “green” hydrogen in WA

BP joins the hydrogen party

teamed with utilities company ATCO to build and operate a combined hydrogen production and refuelling facility at Jandakot in Perth’s south, with the possibility of wider deployment across the state.

For Fortescue, which recently approved several solar power installations at its Pilbara mines, running a portion of its mobile equipment on zero emissions hydrogen appeals as another step in greening its business.

The initial Jandakot plant will provide Fortescue, ATCO and third parties with the opportunity to refuel vehicles capable of using hydrogen as the primary fuel source, including a fleet of Toyota Mirai fuel cell electric vehicles.

ATCO and Fortescue have sought funding under the State Government’s $10m Renewable Hydrogen Fund to support the development of the infrastructure.

“As the world moves towards a lower carbon future, hydrogen has the potential to play a key role in the future energy mix and we want to ensure we remain at the forefront of Australia’s renewable hydrogen industry,” said Fortescue CEO Elizabeth Gaines.

ATCO’s Australian Managing Director Pat Creaghan said the company’s Clean Energy Innovation Hub has been generating and testing

the use of renewable hydrogen for more than six months in gas blending and power applications.

To illustrate the pervasiveness of hydrogen this year, Woodside announced its latest deal — an agreement with JERA Inc., Marubeni Corporation and IHI Corporation to undertake a joint study into the export of hydrogen as liquid ammonia for use in “decarbonising” coal-fired power generation in Japan — on the same day as Fortescue’s ATCO agreement.

But the rolling maul of deals also includes smaller companies with big plans, like IBE at Dongara, or Hazer Group, which wants to turn biogas from Perth’s sewerage at Woodman Point in Muster into clean hydrogen via a $16.7m demonstration plant.

And then there’s the established players such as Chinese-owned Pacific Hydro, which is studying the feasibility of co-locating a hydrogen plant at its Ord Hydro power station in the Kimberley.

French multinational ENGIE, meanwhile, is teamed with Yara looking at using renewable hydrogen to produce “green” ammonia in the Pilbara.

And, in May, energy giant BP also revealed plans to investigate using hydrogen to produce green ammonia in Geraldton (See Box). >

When one of the world’s biggest oil and gas companies starts looking at a green energy export facility in the Mid West, you come to realise that the WA hydrogen chatter is not all hot air.

BP says its $4.4 million feasibility study, partly funded by ARENA, will help it better understand the possibilities of using hydrogen to export renewable energy at scale.

Engineer GHD will support BP and deliver a study evaluating pilot and commercialscale green ammonia production plants in Geraldton. GHD will also assess the different technologies and process configurations required to manufacture green hydrogen and green ammonia.

The mooted pilot plant will look to produce hydrogen using onsite and/or gridsourced renewable power. This will then be converted into around 20,000 tonnes per annum of green ammonia. Once developed to commercial scale, this is expected to increase to about 1 million tonnes per annum of green ammonia, targeted at domestic and export markets.

The commercial plant would require around 1.5GW of power that would be sourced from greenfield renewable power generation.

Frédéric Baudry, BP’s Chief Operating Officer for Asia Pacific, said: “Western Australia is the study location due, in part, to its vast solar and wind resources, existing port infrastructure and proximity to large, long-term markets for green hydrogen.

“The study further demonstrates BP’s long-standing investment and commitment to the region. I would like to thank the Australian Government for their support for this important project and the development of advanced fuels in Australia.”

Winter 2020 WA WORKS 13

Energy

Hydrogen

on the boil

South Korea $120m(USD) HyNet Refuelling1 Woodside/Kogas etc Charging,refuelling

Karratha - NA

Karratha - $3.8m

Japan Ammonia Woodisde/JERA Export Study

Pilbara Hydrogen Yara, ENGIE Feasibility

Wheatstone Ashburton West Pipeline

Lake Argyle - RHF Ord River Hydrogen Pacific Hydro Co-production

Telfer Gas Pipeline

Pilbara Energy Pipeline Fortescue River Gas Pipeline

DBNGP - RHF DBNGP Blending AGIG Gas Networks

Geraldton - $4.4m UWA - $162m FenEx CRC Chevron-led Hub Research Centre

Murdoch - RHF Pilbara Hybrid PV Murdoch University Standalone Power Coogee - $16.7m Woodman Point Hazer/Water Corp.

Production Q2 2021 Mandurah - RHF Mandurah Hub Hazer Group Feasibility refuelling

Midwest Pipeline

Geraldton Ammonia BP, GHD Feasibility Dongara - $300m Arrowsmith Infinite Blue Energy Build target 2021

Goldfields Gas Pipeline

Parmelia Pipeline

Goldfields - RHF

Wheatbelt - RHF Jandakot - RHF2 Jandakot Fortescue, ATCO Refuelling Cockburn - RHF

Hybrid Power EDL Remote Applications

Transport/blending ATCO Feasibility 10MW

Key

Solar Hydrogen City of Cockburn Transport

Source: Company and government announcements 1. Total amount invested by 13-member consortium for 3-year roll-out in South Korea.

2. RHF, the State Government’s Renewable Hydrogen Fund, had allocated a total of $1.7m to seven hydrogen feasibility studies as of January 2020.

14 WA WORKS Winter 2020

Hydrogen Projects Active Projects Dampier Bunbury Pipeline (DBNGP) Other Pipelines

A Toyota Mirai hydrogen fuel cell electric car

> Much of the fresh hydrogen hullabaloo stems from Canberra, where Federal Government agencies are dangling big funding packages for companies able to support the aim of developing an Australian hydrogen industry.

In May, the Federal Government’s Clean Energy Finance Corporation (CEFC) welcomed the launch of the Advancing Hydrogen Fund, whereby the CEFC will make available up to $300m in finance to support hydrogen projects.

Initially CEFC will look to invest in projects included in the Australian Renewable Energy Agency (ARENA)’s renewable hydrogen deployment funding round — a $70m program aiming to demonstrate the viability of large-scaled hydrogen production using electrolysers powered by electricity from renewable sources.

Last month ARENA said renewable hydrogen projects with a total value of more than $3 billion were competing for a slice of the grants.

Collectively the 36 applications received were touting more than 500MW of electrolysis

The case for H Hydrogen is expected to be a major pathway for decarbonisation in Australia’s “hard-to-abate” sectors such as transport and manufacturing.

Hard-to-abate sectors are those that: • Are energy intensive • Sometimes emit CO2 in the production process • Where electrification is challenging About 30 per cent of Australian greenhouse gas emissions today are in these sectors.

Source: Clean Energy Finance Corporation

capacity, from projects ranging in size from 5MW to 80MW. The agency hopes to award funding by the end of the year.

“It is early days in the hydrogen journey but this is an important step for the sector and it looks like we have many companies now interested in building large-scale renewable hydrogen projects across a range of industries and end uses,” says ARENA CEO Darren Miller.

Deloitte, meanwhile, estimates an Australian hydrogen industry could generate about 8000 jobs, many of which will be in the regions, and about $11b a year in GDP by 2050.

the growth in heavy vehicles, such as prime movers and buses. In addition, the company aims to freeze the hydrogen into a liquid for export markets in Asia Pacific similar to the LNG markets today.

Building in the wind belt Dongara is well suited to green hydrogen production, as it boasts regular strong winds and warm sunny days for most of the year — features that have already secured major wind and solar farm investments in the region.

The plan is for IBE to sell spare electricity

“IBE says it is also making progress on a proposed second stage investment that could produce up to 75 tonnes of hydrogen per day” With the amount of funding on offer, it’s no surprise that IBE, a private company backed by a Hong Kong-based renewable energy firm, is talking to the Federal Government about a potential contribution from ARENA. IBE says it is also making progress on a proposed second stage investment that could produce up to 75 tonnes of hydrogen per day.

Most current industrial-scale hydrogen today is classed as “blue”, meaning it is produced using fossil fuels such as methane. But demand for green hydrogen, produced using renewable sources alone, is tipped to grow rapidly in coming years as regulators continue to enforce the use of lower carbon fuels.

IBE plans to produce pure hydrogen gas, for injection into a domestic gas pipeline and tap

during daylight hours and purchase some of it back at night with a green certificate to keep the hydrogen plan running when solar is unavailable.

The current development timeline, subject to approvals, is: • Geotechnical work: Q2-Q3 2020 • Major earthworks: Q1 2021 • Civils/concreting: May 2021 • Long-lead items arriving: Late 2021 • Installation: late 2021-early 2022 • Commissioning: Q2-Q3 2022 IBE has support from the Mid West Development Commission, the Shire of Irwin and Main Roads Geraldton, however regulatory approvals such as development, department of water and environmental are all required prior to starting major earthworks. >

Winter 2020 WA WORKS 15

Energy

> Gauld says IBE is looking at a build-ownoperate model for construction.

“As a new independent you want to control your costs,” Gauld says. “And normally controlling your costs means building, owning and operating your own assets.”

The company has three former oil and gas executives among its management team, including Gauld, who has worked at ExxonMobil, Chevron and Woodside.

He says IBE plans to take on more staff, while also going to the market to hire contractors, who would likely be appointed late this year.

We’re looking to give as much work to local (Mid West) contractors as possible,” he says.

“There’s plenty of good people who live in the area and who are more than capable. And anything we can’t get there will be coming from Perth,” he says.

Will industrial-scale hydrogen production be the next energy sector to take off in WA?

The embryonic industry still relies heavily on government subsidies and cheap loans, but so did most wind and solar projects until recently. Now their costs are starting to beat traditional fossil fuel options such as diesel.

The federal agencies are taking some of the credit for this.

CEFC says it and ARENA have previously worked together to accelerate clean energy developments, including through the successful large-scale solar funding program.

“The program delivered grant and/or debt finance to 12 developments contributing to large-scale solar becoming cost competitive with wind energy and cheaper than new-build coal and gas,” it says.

But Woodside CEO Peter Coleman, who sat on a panel session at the Resources Technology Showcase late last year, says the time for hydrogen to shine may be still be a decade away.

Coleman said hydrogen could be

complementary to what LNG producers do.

“It’s a cold product, moved in large volumes,” he said. “And we have some natural advantages in WA with respect to, if that hydrogen is made using energy from renewables … we have large areas of land we can use where we can create renewable power generation,” he said.

Japan was leading the way in creating a market for the gas and, if the Japanese Government was focused on this, “I’ve got confidence it will happen.”

“But it’s still a long way off — maybe 10 years, or maybe 15 years off before its truly commercial.

“And there are things we need to remember.

Hydrogen’s energy density is a lot lower than competing fuels.

“Hydrogen molecules are very small, so they like to escape the vessels that they are in.”

In discussing the potential for hydrogen replacing the current energy mix, Coleman said it probably needed to be “complementary for a while”.

Coleman turned to Woodside’s Pluto LNG Train One at Karratha as an example of the technical and logistical challenges of replacing the energy produced from LNG with hydrogen.

“The amount of energy input that you’d need to put into it if you used renewables is about 60GW,” he said.

“Now 60GW for a solar array or panels would cover all of greater Sydney. These are mammoth, and that is just one (LNG train),” he said.

“If you multiply that out by all of the trains we currently have operating, you can see that we are going to have to solve this problem in a different way, because we are not going to have that many solar array farms.”

Woodside CEO Peter Coleman (R) with Chevron Australia managing director Al Williams and Shell Australia Chairman Zoe Yujnovich at the Resources Technology Showcase

16 WA WORKS Winter 2020

Minister’s Memo

Mathias Cormann

Building more jobs The Federal Government is prioritising lower taxes and deregulation as it looks to grow the economy and get businesses hiring again, writes Mathias Cormann

T

he task our country faces, and what the Federal Government is totally focused on, is to emerge from the COVID-19 pandemic with a stronger, more resilient and more competitive job-making economy.

Our JobMaker economic recovery strategy places the highest priority on getting Australians back into work. That is the battle that we now need to fight and win.

The aim going into this crisis was always clear — save lives and save livelihoods. Our decisive early action means that Australia has been able to avoid the scale of devastation and death suffered by many countries.

This places us in the best possible position to emerge strongly from the crisis.

The JobMaker strategy will drive our recovery.

It has five key principles at its core. They are: • Remain an outward-looking, open and sovereign trading economy.

• Caring for country. We must not borrow from generations in the future what we cannot return. Governments must live within their means.

• Leverage and build on our strengths.

An educated and skilled workforce that supports a thriving and innovative services sector and a modern, competitive and advanced manufacturing sector. Resources and agricultural sectors that fuel and feed global populations including our own.

• Equality of opportunity and reward for effort.

• Productivity to drive prosperity.

Focusing on key reform priorities including; skills, industrial relations, deregulation and tax, as well as infrastructure spending, will help to strengthen the hundreds of thousands of small, medium and large businesses that drive our economic success.

Western Australia will play a vital role in the economic turnaround of the country. I have said for some time that WA is well positioned to bounce back strongly from this crisis and I still believe that.

We are a commodity-based trading economy used to riding out the highs and lows of economic cycles and our recovery will benefit from the solid foundations of our resources and agricultural sectors.

Our Government has an ambitious

infrastructure investment program which we will continue to roll out and which will be a key in driving our jobs agenda.

Since coming to government, we have committed more than $13.6 billion to support road and rail infrastructure in Western Australia.

Many of those projects have been delivered.

For example, the biggest road infrastructure project in WA’s history, the $1.02b NorthLink between Morley and Muchea, was opened in April this year.

$5.4b investment in WA Late last year we announced a further injection of $868 million which will increase the total federal infrastructure investment in WA from about $4.5b to about $5.4b over the next four years.

Our commitment of $2.3b to the Metronet rail project will provide jobs for thousands of West Australians during and beyond the COVID-19 recovery phase.

The road and rail projects we have backed will guarantee work for local trades and keep money flowing to local businesses throughout

the construction phase and beyond.

And we will continue to invest in infrastructure projects that improve the lives of West Australians and provide more vital jobs.

We remain committed to the Perth Freight Link with our offer of $1.2b additional Federal funding for any West Australian government that wants to build the project.

It is a critically important piece of transport infrastructure for Perth and WA. Not only will it bust congestion while dramatically improving road safety, but it will reduce the cost of moving freight across Perth to and from Fremantle Port.

The project would deliver 10,000 direct and indirect jobs.

Our ambitious JobMaker plan is a business growth strategy. It prioritises lower taxes and a big deregulation effort to reduce the cost of doing business.

It aims to encourage businesses to start investing, growing and hiring again.

Mathias Cormann is Federal Minister for Finance and a Senator for Western Australia

“I have said for some time that WA is well positioned to bounce back strongly from this crisis”

Winter 2020 WA WORKS 17

Special Feature

Change for the better As the dust settles from the downturn, prospects are beginning to emerge for the supply chain, particularly in the fast-changing energy sector, writes Stephen Bell

W

hen there is dramatic change, there is also opportunity.

The old saying is worth remembering amid the pandemic shockwaves, particularly for suppliers exposed to the worst-affected sectors such as commercial construction, tourism, or oil and gas.

There’s no doubting that the oil and gas industry has taken a beating since COVID-19 emerged, with all the big players trimming costs, shedding staff and deferring non-essential maintenance.

According to the Australian Bureau of Statistics, the number of jobs in the oil and gas sector fell 40 per cent in the period between the week ending March 14 (the week Australia recorded its 100th confirmed COVID-19 case) and April 18.

This compared with a drop of just 2 per cent in hard rock mining.

Moreover, Woodside and Santos both deferred major projects in WA and the Northern Territory amid the crash in oil prices.

The WA oil and gas sector is nothing if not resilient and will rebound when energy prices and investor confidence improves.

In the meantime, the Nev Power-chaired National COVID-19 Coordination Commission is looking at ways to use WA resources to help fuel new manufacturing ventures across Australia.

As part of this study, the NCCC has spoken to multiple proponents considering a West-East gas pipeline, a long-touted idea that was studied, and quietly shelved, two years ago.

gained momentum in the past few years and received further impetus during COVID-19 as demand for crude oil slumped.

Last month Fortescue said it would strive to achieve “net zero operational emissions” by 2040 as part of its climate change strategy.

Its “pathway to decarbonisation” includes a 26 per cent cut in current scope 1 and 2 emissions from the company’s existing operations by 2030.

And big contractor Worley noted that renewables had been the energy source “most resilient” to COVID-19 lockdown measures, while energy efficiency and decarbonization of assets

“The number of jobs in the oil and gas sector fell 40 per cent in the period between the week ending March 14” Though only one option and an unlikely starter, the “resurrection” of the pipeline idea does focus attention on a critical theme in coming years — how to transport energy to the parts of Australia that need it.

The other side of the coin is what fuel source is best used to generate the energy in the first place.

Power adopts a mainstream approach, saying he agrees with Chief Scientist Alan Finkel, whose view is that there is a “role for gas in firming up renewables as we transition to lower emissions”.

But renewable energy sources have certainly

18 WA WORKS Winter 2020

would “continue to drive operating expenditure”.

In a recent presentation to investors, it identified this energy transition as one of the “mega trends” providing new opportunities to help its customers, alongside digitisation, climate change and the circular economy.

There is an “accelerating wave of renewable energy investments, supported by energy storage, decarbonization projects and gas as a transition fuel”, Worley said.

UBS analyst Nathan Reilly attended the investor day briefing and noted that Worley’s

key medium to long term opportunities included offshore wind, distributed energy systems and low carbon hydrogen, as well as plastics recycling projects, where majors continue to invest.

The sharpened focus on energy during COVID-19 generates both a heartache (deferred gas projects) and hope (green investment accelerating) for work-starved suppliers.

Peter Milne’s story reveals that spending on stationary energy storage from batteries is tipped to increase dramatically in the next two decades, generating significant opportunities for the supply chain.

Much of the technology for the increasingly powerful batteries is developed in WA by the likes of Bibra Lake-based Magellan Power, hinting at the manufacturing prospects on the offer if WA continues to move further downstream into battery components.

3D printing is the other emerging technology under the spotlight in our feature. Long promised, the technique known as “additive manufacturing” is gaining new impetus following the supply chain disruptions of recent months.

Finally, our story on mining contractor MACA demonstrates the importance of ensuring your business has enough talent to grasp opportunities when they come up.

MACA explains how it uses ongoing training programs to help attract and retain staff, even during a pandemic.

It is a lesson worth remembering as we continue to navigate through turbulent times.

Special Feature

Charged up about battery storage Spending on stationary energy storage is tipped to increase dramatically in the next two decades and home-grown technology providers in Perth are eager to capture the opportunity

By Peter Milne

N

o one in WA could not know of the opportunity offered the State by the massive switch of the world’s car manufacturers to battery electric vehicles. The focus has been on expanding the mining of lithium and other battery minerals and maximising the amount of processing done here before the product is shipped overseas to battery manufacturers.

Interest from WA businesses at the other end of the battery value chain is now also rising, this time to support local power needs, not foreign carmakers.

A combination of technology, economics, climate concerns and local regulatory changes is turbo-charging interest in how to best use battery energy storage systems to support renewable energy.

Global annual spend on stationary energy storage will increase more than 100-fold over the next two decades, according to energy consultant BloombergNEF.

While batteries have become better and cheaper and calls for cleaner energy louder, the State Government has been steadily removing impediments to the use of more batteries.

In April, legislation was changed to allow Western Power to recoup the cost of installing standalone power systems for customers to give a less expensive and more reliable service to customers on the edge of its grid. In the same month, the Energy Transformation Taskforce released a roadmap for the better integration of behind-the-meter batteries and rooftop solar.

Proposed changes to the rules for accessing the south-west power grid released in May will clarify how batteries on the network can provide services beyond Western Power’s standard offering and open the market to third-party suppliers.

One WA company chasing the opportunities is Magellan Power.

Photograph: Graz Prinsloo

years ago to make back-up power systems to cover network outages. Ten years ago, Magellan started supplying storage batteries for use in homes, businesses, and power stations.

Abshar describes the battery value chain as going from mining, processing, then making so-called precursor materials, individual battery cells, full battery modules and finally developing applications for the use of batteries.

He sees Magellan’s strength in the final two steps while larger mining companies are pushing up the value chain from the other end.

“Cell manufacture will be the hardest to do in WA,” he told WA Works.

Abshar likened a good battery to a high-quality spring that can keep compressing and expanding without losing its strength. >

Bibra Lake battery guru Power electronics engineer Masoud Abshar founded the Bibra Lake company almost 30

Winter 2020 WA WORKS 19

Special Feature

Magellan Power’s Bibra Lake factory. Photograph: Graz Prinsloo

> “That storage and release of the energy is crucial, and it’s the electronics that allows that to be done in the most efficient way without degrading the battery,” he said.

More than half of Magellan’s 65 staff are engineers, some of whom joined after completing at Perth universities PhD projects linked to Magellan’s technology.

Magellan develops and manufactures its

offshore platform to remove the need to run an extra gas turbine continually. Western Power has a battery in Perenjori to halt what were frequent power outages on the long feeder line to the town.

By 2020 carbon emissions from power to Esperance will halve due to a new wind, solar and diesel system that only works because the battery energy storage system can manage the fluctuating output from the three power sources.

“If you want an industry to thrive, you need to look after that industry, you can’t just chuck it against giants that are coming from overseas” technology in Perth to control the batteries.

“I did a lot of the early design myself, but now I have people much better than me,” Abshar said.

Magellan supplied batteries to Western Power’s first round of solar, battery and diesel standalone power systems.

Magellan started with back-up power and moved organically into standalone power systems.

Pacific Energy, a Perth-based supplier of power to remote mine sites recently took a shortcut into SPS and bought another local company Hybrid Systems.

At the time Pacific chief executive Jamie Cullen said the purchase was driven in part by a desire to enter the growing SPS market.

A smart move given Minister for Energy Bill Johnston has said thousands of the systems will be rolled-out across WA. “We gain home-grown, in-house experience in the integration of renewable energy with traditional remote power generation technology,” Cullen said.

WA has many examples of the innovative use of batteries beyond standalone power systems.

Woodside installed a battery on its Goodwyn-A

20 WA WORKS Winter 2020

Avoiding a solar-like outcome Magellan’s Abshar sees the opportunity for Australia from batteries but is worried the result may mirror solar energy.

Photovoltaic cells and tracking systems for new commercial solar farms are generally

imported, such as the Chinese panels used for Risen Energy’s newly commissioned Merredin project.

“We were doing very well 30 years ago in its infancy. A lot of hard and intelligent work was being done and that industry just moved overseas, and now we are a net user,” he said.

“If you want an industry to thrive, you need to look after that industry, you can’t just chuck it against giants that are coming from overseas,” he said.

“You’ve got to protect these industries until they are big enough to compete naturally.”

Abshar hopes that supply chain interruptions caused by the pandemic will prod large companies not to default to large international suppliers.

“Bigger companies have got a responsibility to support the industry that’s going to support them later on,” he said.

Chief Scientist of WA Peter Klinken has also linked COVID-19 with WA’s battery ambitions.

“It’s a crucial time for Australia ... to have a really good hard look at our sovereign capability, and I’d be suggesting we look at going as far down as we can to making batteries,” Klinken said.

Special Feature

Fighting a skills crunch The big iron ore miners supported up to 500 new WA trainees and apprentices during the peak of the pandemic the company to out-of-trade apprentices during the pandemic.

ASA was also referring many displaced apprentices and trainees to enrol in the automation micro-credential to “ensure upskilling continues in these uncertain times”, said ASA Manager Lena Constantine.

BHP onboards 250

By Stephen Bell

O

ne of the early casualties of the COVID-19 outbreak was non-essential maintenance work on resources operations in the North West as big companies tightened their belts.

Big LNG and oil operators shed staff and deferred non-critical work programs, leaving many engineering contractors short of work, while iron ore miners reined in maintenance spending to focus on production.

As one observer commented: “The industry downsizes dramatically in the downturns and then faces skills shortages when the tide turns — we never learn!”

Or, as an oil and gas participant said, “We may find a ‘crunch’ comes when we come out the other end of this (pandemic) and deferred activities like maintenance need to be done.”

The timing of any skills crunch was unclear, with oil and gas operators expected to face much bigger re-skilling requirements than miners because of the extent of their cutbacks during the pandemic as oil prices plunged.

The big end of iron ore, in contrast, enjoyed buoyant commodity prices and was hiring workers.

Rio Tinto’s $10b program Rio Tinto recruited for skilled roles, apprentices, graduates and Aboriginal trainees to fill vacancies as the company progresses its $10 billion mine construction program in the Pilbara.

Alongside more than 300 FIFO roles in skilled jobs such as frontline supervisors and machinery operators, the company was hiring about 160 apprentices, graduates and Aboriginal trainees from the Pilbara, Perth and other regional centres.

The 2020 intake of apprentices and graduates was up 25 per cent from last year.

Rio also committed funds to the upskilling of out-of-work apprentices across various industries by covering their fees for a course in automation.

This would allow for the enrolment of up to 200 apprentices who had their apprenticeships suspended or cancelled due to COVID-19.

Starting in June, successful applicants were to complete the micro credential course on working in an automated environment qualification, which Rio Tinto developed in partnership with South Metropolitan TAFE and the State Government last year.

Rio Tinto Iron Ore CEO Chris Salisbury said it was an important time for the company to deliver on skills for those apprentices and trainees whose future employment prospects would benefit from extra training.

“Our strong partnership with SM TAFE and regional TAFEs in Western Australia will increase the number of apprentices in the State with the skills and knowledge to work in an automated environment, thereby increasing the likelihood of their employment in the resources sector.”

Rio Tinto is a client of the CCIWA-managed Apprenticeship Support Australia (ASA), which assisted Rio with recruitment and connected

On a national level, BHP welcomed 250 apprentices and trainees into its ranks as part of a new training program designed to bolster Australia’s skills base and create new career pathways.

The program, delivered through the new BHP FutureFit Academy, is being developed in conjunction with North Metropolitan TAFE (Perth) and CQ University.

BHP said the first two campuses were established at existing BHP repair and warehouse facilities in Welshpool in WA and Mackay in Queensland. By May, about 125 people had started their training in each facility.

Edgar Basto, BHP’s new President Operations Minerals Australia, said the company was “investing in the workforce of the future”, and creating new employment opportunities in the communities where it operates.

“This new program will help develop Australia’s next generation of tradespeople and support local jobs,” he said.

Trade apprenticeships are initially being offered for heavy diesel fitters and mechanical fitters, with additional streams to be introduced according to business demand. In addition, the program is offering a new one-year Certificate II maintenance traineeship.

Meanwhile, Fortescue celebrated the 900th Aboriginal person to be offered full time employment under the company’s Vocational Training and Employment Centre (VTEC) program, with the latest cohort of graduates starting work last April.

After successfully completing the program in Karratha and Port Hedland, the 17 graduates of 2020 secured employment at Solomon, Cloudbreak and Fortescue’s Port operations in roles spanning drill and blast, dewatering, ore processing facilities (OPF) and production.

Fortescue CEO Elizabeth Gaines said VTEC was established in 2006 to drive economic and generational change in the regions and the company was committed to “adapting the program to ensure its growth and relevancy”.

Winter 2020 WA WORKS 21

A powerful agenda WA’s gas sector and value-adding industries will play an important role in the nation’s recovery from the pandemic, according to Nev Power

By Stephen Bell

E

nergising the manufacturing sector has emerged as a key theme in the Federal Government’s plans to reboot the economy, and its one that may benefit the WA supply chain.

That’s because former Fortescue CEO Nev Power, a man with intimate knowledge of WA’s mining and energy markets, now has the ear of Prime Minister Scott Morrison.

As Chairman of the National COVID-19 Coordination Commission (NCCC), he is investigating how best to grow local manufacturing by using natural gas as the fuel.

And most of Australia’s less expensive gas resources are in WA. After his appointment in March, Power and his

22 WA WORKS Winter 2020

team were busy speeding up urgent manufacturing of personal protective equipment (PPE).

Now they are trying to unearth more long-term job-building opportunities.

Power estimates his team of six commissioners — drawn from a diverse array of industries — has talked to more than a thousand individuals and organisations about ways to accelerate the economic rebound.

An advanced manufacturing task force headed by NCCC commissioner and former Dow Chemical CEO Andrew Liversis focused on themes such as infrastructure, energy, the not-for-profit sector and structural reform.

One key aspect was how to increase the supply of gas on the east coast to provide more competitively priced gas to businesses there, he said.

The pipeline option Inevitably, this has dredged up the old idea of building a gas pipeline from the North West Shelf to as far as the eastern seaboard, a plan that was looked at — and quietly shelved — by the Federal Government in 2018.

A prefeasibility study by ACIL Allen found that while a West-East pipeline was technically feasible, commercial and market risks presented major challenges, and it did “not appear to be the best or most economical option for dealing” with gas shortages on the east coast.

In a statement to the Senate Select Committee on COVID-19 in June, Power did not raise the issue of the pipeline directly.

But he said Australia should be looking at competitive gas supply as a “raw material for both existing and new manufacturing industry to preserve and create jobs”.

“Australia has an abundance of energy sources and I agree with the Chief Scientist, Dr Alan Finkel, whose view is that there is a role for gas in firming up renewables as we transition to lower emissions,” he said.

Special Feature

and nickel as opportunities which will be “pertinent” for WA as industry tries to capture more of the value.

But he cautioned that the NCCC doesn’t make formal recommendations to the Government; rather it offers advice and acts as a business advisory.

Disrupted supply chains Meanwhile, COVID-19 had reminded us how reliant we are on global supply chains.

“We’ve got a situation now where we’ve got disrupted international supply chains, a relatively low Australian dollar and a low cost of capital,” Power said.

“And that’s a very good environment for us to look at if there is an opportunity to ramp up our local manufacturing.”

manufactured goods that are required in the sorts of volumes that would support local manufacturing in, say, the mining industry or oil and gas and LNG. “I guess the second part of that is, where there are manufacturing businesses (in WA), how can we help them access larger markets to scale those up and get through that next critical phase.”

Home on the range Food represents another opportunity for manufacturing value-added products.

At present WA does a lot of meat processing via companies such as Harvey Beef and Craig Mostyn Group, but this could be taken further to “do further processing of our grain products”, Power said.

“During the peak of the coronavirus, Power was impressed by how “flexible and agile” Australian manufacturing was”

In an exclusive interview with WA Works, Power clarified that the pipeline was one of “many options” for supporting manufacturing and boosting jobs.

“We’re not studying that (pipeline) specifically but we’re aware that a number of groups are looking at that,” he said.

Those proponents have had “confidential conversations” with the NCCC, which intended to “put those groups together and see if there’s a viable alternative”, Power added.

The pipeline had been looked at by several groups in the past, “including myself when I was at Fortescue”, he said.

“And to me it remains an alternative as has happened in other countries. Europe and the US have made extensive use of quite long pipelines to supply gas around the country.

“Whether it’s the most cost effective and best option, I guess, is going to be determined by the range of solutions that come up, but we’re not promoting it or recommending it.

“Maybe it’s better to look at the transportation of finished product, build more of those downstream processing industries in Western Australia, improve our logistics across the Nullarbor and use that as an alternative,” he said.

Power nominated the processing of battery minerals such as and lithium, rare earths

During the peak of the coronavirus, Power was impressed by how “flexible and agile” Australian manufacturing was, with several businesses switching their focus to make healthcare equipment.

In WA, Malaga plastics and metal fabricator Ardash was able to begin making up to 10,000 face shields for surgeons and other medical specialists.

And ICNWA helped the State Government find local businesses able to step up to meet new supply demands for PPE via ICN Gateway.

Power said the overall economy could benefit from “building on” that type of activity that has been identified as a capability in parts of industry.

“How can we look at products and

“Maybe instead of sending grain offshore, re-importing pasture and so on, and selling, is there opportunities for us to do more of that in Australia, to capture that value-add,” he said.

In addition, there were some high-tech, small volume, but flexible manufacturing segments to be nurtured in the state, he said.

“We don’t have a lot of those in WA, traditionally, but there’s an opportunity there as much as there is anywhere in Australia, for us to look at that.

“And this is epitomized by 3D printing, I suppose.

“Also, robotics manufacture — we’ve got some very capable steel fabrication centres, for example, is there an opportunity to expand on that?”

Winter 2020 WA WORKS 23

Special Feature

Piloting a course for mine trainees A strong history of training and onboarding helped mining contractor MACA train new people into the mining sector, even during the pandemic

By Stephen Bell

T

he COVID-19 crisis has been a tough time for thousands of WA workers stood down because of measures introduced to limit the spread of the virus.

But one Perth company has done its best to integrate some of those unemployed people back into the workforce by training them for mining work, whatever their current skills.

Kylie Webb, Learning and Development Manager at MACA, says the contractor has continued its strong history of sourcing, onboarding and training new people into the

24 WA WORKS Winter 2020

mining industry, even during the pandemic.

“We’ve just taken on a couple of pilots who lost their jobs due to COVID-19,” Webb says.

“They have talents in operating heavy machinery and moving it into tight spots, so we’re capitalising on this and requalifying them as drillers,” she tells WA Works in an interview at MACA’s Welshpool head office and maintenance workshop.

Another non-mining pool MACA will regularly seek talent from is ex-military personnel, who are trained in partnership with the WA-based “Working Spirit” group, which helps armed services veterans re-enter the workforce.

The quarter ended March 31 was an incredibly busy period for MACA. The company filled 392 job positions, nearly 30 per cent of them either dump truck or excavator operators, as it ramped up activities at the Ravensthorpe nickel site.

The Edna May (gold) and Pilgangoora (lithium) mines also restarted, while MACA won two new contracts in the space of four days, one of them a $38m road works contract for Atlas Iron’s Corunna Downs project, which required 80 people.

Mobilisation of workers for MACA’s US$230 million ($350m) contract at Emerald Resources’ Okvau gold project in Cambodia is due to begin in August.

At the time of writing, the contractor reported $2.4 billion of work in hand, nearly double the amount of two years ago.

However, from a longer-term perspective, MACA understands it can’t rely solely on pretrained and qualified people in the industry.

As part of its HR strategy, MACA devotes time and resources to upskilling of existing personnel and new-to-industry trainees and apprentices.

Of the some 2000 people employed by the company Australia-wide, about 200 are trainees and apprentices.

“We’re not an owner-operator,” Webb says.

Special Feature

MACA dig, load and haul operation. Right: Two MACA apprentices

“But we can attract good people if we’re offering them training opportunities.”

This strategy has the added benefit of bringing more people, many of them mature workers from a range of backgrounds, into the mining industry.

“There’s a lot of people who have been in white-collar professions and are looking for a change, they want to stay on good money, but don’t know how to crack into the industry,” Webb says.

“So, offering traineeship programs where people can transfer across helps us build a pipeline and grow the sector.”

“The need for drillers was becoming a very hot topic,” Webb recalls.

“And there was a real tightness in the market for this skill, so contractors and mining companies were purely bumping hourly wages.

We decided to put in place a traineeship program that would offer people a level three certificate in drilling operations.

“We’ve successfully put 33 trainees through in the last couple of years in different cohorts and that’s helped us to bolster the entire industry.

“And I think we’ve only lost three or four of those — a lot of them came from working

people coming from “driving a Hyundai on the freeway, to operating a Komatsu 785 dump truck”, says Webb.

Most of these skills are accumulated in controlled, dedicated training areas of operating mines.

“We can show them how to regain control of the truck in wet areas, how to go down or up ramps, how to reverse back to the excavator, how to get around cones, things like that,” Webb says.

“They’re doing their training in a proper dump truck, and, in those controlled areas, we find they learn fast.”

“Offering traineeship programs where people can transfer across helps us build a pipeline and grow the sector” A hot topic MACA’s training expertise became a valuable tool about three years ago when the labour pool for the drill and blast industry was shrinking alarmingly. A lot of operators were getting to their late 50s/early 60s and looking at retirement.

at supermarkets and in retail,” she says.

A skilled pipelined of dump truck operators is another priority for a company devoting much of its time to moving dirt and mineral ores across the state and as far away as Cambodia.

MACA offers a six-month program that trains

Winter 2020 WA WORKS 25

Special Feature

The nuts and bolts of 3D printing The ability to print heavy machinery parts for the resources sector on demand may be coming soon and facilities operators should consider planning for it now

By Peter Milne

F

or operators of WA’s vast, technically complex, mining and oil and gas operations, the prospect of printing spare parts on demand was never more attractive than at the height of the global pandemic when factories across the world shuttered, and international air freight almost ground to a halt.

Unfortunately, when a spare part is needed to keep production going, it is not as simple as ringing a 3D printing company and providing the part’s details.

However, according to AdditiveNow General Manager John Bolto, now is the time for operators of facilities to begin planning how they can benefit from 3D printing, known within the industry as additive manufacturing.

AdditiveNow, a joint venture between Worley subsidiary Advisian and Perth 3D printing technology developer Aurora Labs, has just started a review of hundreds of thousands of inventory items for a WA company.

Using in-house data analysis tools, AdditiveNow will determine what parts can be printed now, and how that list will grow as printing technology advances.

“That will be based on size, part risk, part complexity, the material it is made out of and in some cases the original equipment

26 WA WORKS Winter 2020

manufacturer (OEM),” Bolto told WA Works.

“There are laws in most countries (including Australia) that say if you are making a replacement part which is not a complete assembly, and the client owns that assembly in the first place, that you have the right to source that part from wherever you want to.”

Bolto warned that in some cases using nonOEM parts could sour the relationship with the OEM and invalidate a warranty. However, the life of a part usually surpassed the warranty period.

For the manufacture of high-tech items such as gas turbine blades, OEMs are unlikely to support virtual warehousing as the intellectual property involved is too valuable.

To produce certified parts, companies will need to conduct prequalification well before they need a part.

“If you want a 10-inch elbow you would have needed to do an elbow between 6 and 20 inches out of the same material in the same printer brand and model,” Bolto said.

“Now is the time for operators of facilities to begin planning how they can benefit from 3D printing” Cooperation with OEMs An alternative is for operators and OEMs to cooperate. Instead of parts sitting in storage, they could be held virtually in a database and produced by the operator as required. The OEM would be rewarded for its IP. “That’s a world of the future we haven’t got to yet, but everybody is starting to see that that is going to be a reality in the not too distant future,” Bolto said.

“Once that’s done then the task of taking an existing design, converting it to be able to be printed and then printing it is a fairly quick process.”

Despite being part-owned by Aurora, AdditiveNow is open to using a range of solutions.

Aurora’s strengths “There are about 15 different additive manufacturing technologies, but each of them has their niche where they provide a

Special Feature

Technicians examine a machinery part produced by selective laser melting, a type of 3D printing

better solution than any of the other technologies,” he said.

Bolto said, if fully proved commercially, Aurora’s technology will significantly disrupt not just additive manufacturing, but traditional manufacturing.

Aurora’s RMP-1 printer’s strengths are that it can print complex parts of a high metallurgical quality that improves strength and fatigue life.

The restriction, according to Bolto, is a limit to the size of printed parts as the process must occur in a sealed argon atmosphere at an elevated temperature.

“That box that the printer is being done inside is technologically advanced and absolutely essential to the process, and you can’t print anything bigger than the box,” he said.

While Aurora’s engineers continually tweak about 160 hardware and software parameters on the beta version of the RMP-1, the broader world of additive manufacturing is also moving forward.

Bolto said printers have not become significantly cheaper as designs have become increasingly sophisticated to ensure parts consistently meet specification.

“Ten years ago, you could push the button and get a great part out one time, and the next time oops, it didn’t work.”

“That’s a rare event now.”

That leaves increased printer speed as the most feasible way to cut the unit cost of a part.

“If Aurora’s technology becomes a reality in

the next one to two years that would be a step change,” Bolto said.

If the additive manufacturing industry achieved a ten-fold speed increase, it would match traditional manufacturing for parts most suited to AM due to their complexity, or the new technology allowing the design to be optimised.

Additive manufacturing would significantly disrupt traditional incumbents when printing speeds increased 25-fold, Bolto said.

Keep your powder dry Some powders cost six to ten times more than the corresponding metal, but powder prices have halved in two-and-a-half years, and Bolto thinks economies of scale will continue to push prices lower.

The cost of the printer and powder accounts for 70 to 80 per cent of the cost of a printed part.

Winter 2020 WA WORKS 27

Construction

Rekindling the place of the big fire The old East Perth Power station site has been a blot on the city landscape for many years, but the State Government believes a partnership of two of the biggest names in WA business will transform the derelict site into the CBD’s eastern gateway, writes Stephen Bell

N

early four decades after ceasing operations, redevelopment of the old East Perth Power Station is a step closer after the State Government chose its preferred developer.

Kerry Stokes’ Australian Capital Equity and Andrew Forrest’s Minderoo Group are the joint preferred proponents to progress the $218 million makeover of the derelict industrial site over the next four years into a mixed-use precinct.

The State Government says the long-awaited project will support 1900 construction jobs, while about $50m has been allocated to begin site works.

“The mix of residential, social and tourism opportunities this project is expected to offer will support local jobs and transform the area into the CBD’s eastern gateway,” says Treasurer and Aboriginal Affairs Minister Ben Wyatt.

“Australian Capital Equity and Minderoo Group will now enter into an exclusive working period with DevelopmentWA, to refine details of their joint proposal for the precinct,” he says.

Energy Minister Bill Johnston also welcomed the announcement, saying he’d like to thank Western Power, which has the “huge task of decommissioning the 66 kV switching yard, which will open up the entire site for redevelopment works.”

Switching yard work prospects A Western Power spokesperson told WA Works the switching yard decommissioning forms part of the

28 WA WORKS Winter 2020

State-owned utility’s planned works program.

It is, “majority funded by Western Power however a portion of the $50 million is allocated to bring forward these planned works”, he said.

“Enabling projects are already underway and overall completion for Western Power is expected by June 2024.”

He confirmed that Western Power will be subcontracting portions of the switching yard work.

“These packages will be available through our normal EOI and tendering processes available to view online,” the spokesman said.

Western Power’s future tenders and procurement opportunity pipeline can be viewed at westernpower.com.au/industry/ suppliers-materials/tenders/.

The State Government says the old Power Station site is in walking distance of the East Perth train station and presents new housing opportunities with access to both public transport and the Swan River.

In recognition of the cultural significance of the location for Whadjuk Noongar people, the development will be given a Noongar name — Koomba Kalark, which translates to “the place of the big fire”, a reference to the former power station, which was decommissioned in 1981.

The refurbishment of the power station building will be guided by DevelopmentWA’s Kaart Koort Waarnginy (Head Heart Talking) framework to culturally engage with the Whadjuk Noongar traditional owners.

Winter 2020impression WA WORKSof29 Artist’s the interior of the rebuilt East Perth Power station.

Image courtesy of “KHA Architects.”

Construction

Under the dome The biggest air dome in the southern hemisphere has been commissioned at a remote Goldfields location, as the Sandy Ridge waste storage project prepares for operations

An artist’s impression of two air domes at Sandy Ridge, showing the waste emplacement ‘cell’, accessed by dump trucks on the pit ramps

By Stephen Bell

I

n launching a new industry in the WA outback, Sydney-based Tellus Holdings chose air dome technology to encase Australia’s first commercial geological repository for hazardous waste at Sandy Ridge, about 240 kilometres west-north-west of Kalgoorlie.

The company says its eight-storey structure — as big as two soccer fields and one of the world’s largest industrial air domes — is cheaper than conventional alternatives, improves safety and eliminates water ingress during the waste emplacement operations in a kaolin clay pit, or cell.

At the time of writing, the digging of the first cell was underway (see “Mining the Cell”) and was expected to be ready to accept waste

by August/September.

Tellus had completed a permanent village to house its staff and was deep into the final surface construction. This included workshops, laboratories, a hard stand area, and offices that the company will use when the site is operational, “which we are planning for September”, says Tellus Managing Director Duncan van der Merwe.

“At that point there will be a big ribbon-cutting event, and we look forward to bringing in a piece of infrastructure to the Australian market,” he says.

Sydney-based Tellus teamed with GR Engineering Services as lead construction contractor, US-based Arizon Building Systems as the dome provider, and project manager Turner & Townsend.

The project cost hasn’t been disclosed. Perthbased GR Engineering announced its $50 million

Mining the cell To establish its hazardous waste facility, Tellus Holdings needs to excavate a 30-metre-deep pit, or emplacement “cell”, under its air dome at Sandy Ridge.

WA sub-contractor B&J Catalano supplied two surface miners used to break through a 4m-thick silcrete layer, roughly as hard as concrete, at the project.

Digging then returns to conventional truck and excavator mining of the kaolin clay to the final cell depth.

Tellus expected to have the first pit mined and ready for waste emplacement at the end of Q3, 2020.

The initial cell will be about 160m long and 80m wide, with about 230,000 bank cubic meters to be mined from within the air dome and stockpiled at the site.

30 WA WORKS Winter 2020

contract with Tellus in January last year, but van der Merwe says the total cost is a “lot higher”.

Tellus also has a strategic alliance with Toll Holdings for waste. The delivery of containerised waste from Fremantle will mostly be via rail.

“We do have a railway line passing relatively close to our site, but there will be road leg, predominantly from Kalgoorlie to Sandy Ridge, if the waste is coming in from the east,” he says.

A healthy order book Van der Merwe describes the project as “predominantly a hazardous chemicals facility”.

“Our clients typically represent the ASX 200-type of company — big blue chips, mining, oil and gas, heavy industry, remediation, etc.

“Many of them are sitting on legacy stockpiles because there hasn’t been an easy-to-use, low cost, world’s best practice facility available in the market.

“We’ve got a very healthy order book from clients already contracted and wanting to use our services,” he says.

Unlike landfills, which rely on man-made containment barriers that ultimately fail over time, Tellus says its repository relies on geological barriers to isolate the waste from the biosphere for “hundreds of thousands to millions of years”.

At Sandy Ridge, those barriers are a

Construction

Dome facts

2.7 billion-year-old granite bed, the Yilgarn Craton, topped by a “fantastic clay bed called kaolinite”, van der Merwe says.

The clay removed from the storage cells is a relatively low-value bulk commodity and represents a “minority” of the company’s revenue, he says. “The void left over from mining is more valuable for us as a geological repository.”

Tellus has a patent pending for the “permanent isolation system for hazardous waste in a geological repository” that includes an industrial air dome.

“Our project life is approximately 25 years.

This could potentially be one of Australia’s longest-life projects and will more than likely be

intergenerational in terms of the workforce,” van der Merwe says.

During that long life, Sandy Ridge will become a unique site in WA, one relying on an air dome to keep the weather out of the ongoing operation while protecting the outside environment and workers.

Cheaper construction The cost of the structure — 180 metres long, 90m wide and 28m high — was about 30 per cent of the equivalent conventional building solution, with a construction time of just 60 days, according to Tellus.

It took three hours to inflate and takes between 24 to 48 hours to deflate when the company is ready to move it on, Van der Merwe says.

“That was another reason why we chose the air dome.

“Our original plan was to have a hard frame around the dome, similar to what you see in the grain industry.

“For us, that would have been an up to 700-tonne system, very difficult to move, while the air dome is lighter, safe and easy to move.”

“If you go down to St Georges Terrace and you look at any one of the eight-storey buildings there, it’s more efficient from an operating and capital cost (perspective) to keep air flowing around the air dome, than it is in a traditional

Area: 16,200 sqm, equal to two soccer fields Height: 28m, or eight storeys Key features: • Relocatable anchor foundation system • 3 air handling units • 2 fans per air handling unit • Vehicle air interlock • Personnel air interlock and emergency egress • Wind sensors and digital command controllers • Full bias (grid) cable system and heavy-duty membrane • Air quality and ventilation monitoring.

warehouse or multi-storey building.”

Key features include a relocatable foundation system, air handling units, vehicle interlock, and heavy-duty membrane. Wind sensors and an integrated air quality monitoring system have also been installed.

Currently the dome uses diesel-powered fans to keep inflated. But in operating mode, the fans will hook up to a solar/diesel/battery hybrid power station.

“We’ll mostly be using solar to keep the dome inflated, and as backup we have diesel and the battery. That will be commissioned later this year,” he says.

The air dome is rated to withstand a category four (winds up to 180km/hour) cyclone.

Eventually it will have a sister on site looming over a yet-to-be-developed second waste storage void.

“We intend building two of them (domes),” van der Merwe said.

“The first has been built and commissioned and the second one we’ll build later.”

Winter 2020 WA WORKS 31

Changing offices Future office fit-outs will incorporate learnings from the working-from-home “experiment” conducted during the pandemic, say two leading Perth architects

By Peter Milne

O

ffice workers across WA and the world have unwittingly participated in a massive study into whether businesses can function with many employees working from home — and the answer is a resounding yes.

The accountants, engineers and salespeople tapping away on laptops on dining tables and listening to team meetings on Zoom did not think they were lab rats in an organisational experiment, just practising social distancing to slow the spread of COVID-19.

This may seem an odd perspective on recent workplace upheaval, but architectural firm Hames Sharley Principal Stephen Moorcroft’s message to employers is to treat the past few months as a big test, “and make sure you grab the learnings.”

“I think it has removed the excuses; there

32 WA WORKS Winter 2020

were some traditional organisations that were saying ‘we don’t like working from home’, ‘everything is going to disappear’, ‘our output will collapse’,” Moorcroft said.

“I think that has probably been largely disproved.”

behind many recent office fit-outs that encourage openness and the intermingling of workers.

However, to reap the rewards of collaboration without the distractions, employers need to balance the separation of people when they need to concentrate against bringing them together to share and create ideas, according to Moorcroft.

It became easier to be focussed at home as collaboration was often in discrete and planned chunks of time such as phone calls and teleconferences.

In the office, however, the layout can prioritise collaboration to such an extent that time to focus is a rare opportunity.

“The COVID-19 lockdown has been the accelerator many organisations needed to test working from home” Moorcroft thinks the COVID-19 lockdown has been the accelerator many organisations needed to test working from home.

A push for improved collaboration, especially across different teams, has been a strong driver

Collaboration versus interruption Moorcroft differentiated between useful collaboration and “deeply-irritating collaboration or interruption”.

The Perth architect thinks the answer is

Construction

activity-based working (ABW), but not the default to hot-desking to reduce office costs often associated with the term.

To Moorcroft, ABW means giving employees the right workspace for what they need, and that will change with time and between individuals.

For a team of lawyers that consistently need to focus on confidential work, individual offices with doors, now regarded as old-fashioned, might be the right solution.

Where some working from home becomes established practise, fewer workstations could free up areas to be set aside for use when concentration is required.

There will be no one right answer, but Moorcroft is clear on the first step for employers.

“Now is the time to absolutely consult... your staff,” he said.

“Interrogate what everyone has learned, find out how everyone feels they performed, what worked and what didn’t.”

Moorcroft said the recent success of working from home was in part due to the understanding between employees built up from years of working together.

“There is still a difference between a face-to-face conversation where you can see people’s body language; you can look into their eyeballs, and see if they understand what you are saying,” he said.

Plus Architecture Director Patric Przeradzki has seen the impact of COVID-19 both as a consultant to his clients and an employer himself.

Przeradzki, like Moorcroft, thinks employers have learnt that employees can be trusted.

The heart of a company “There was a lot of suspicion that people would just sit at home and watch Netflix, when in fact staff often work harder from home as it is easier to focus,” he said.

He sees the role of the office as remaining the heart of a company where colleagues meet but no longer the exclusive place to do work.

Flexibility for employees can also create more options for the employer, according to Przeradzki.

A company could reduce its leased area and use part of the savings to provide computers and ergonomic chairs for use at home. Future surges in work could be covered by asking more people to work from home for a time instead of committing to space that may never be used.

Not only do offices have to adjust to the opportunities and challenges of an increased amount of working from home, but they must also be safer.

Przeradzki said office rearrangements could address both problems with small teams spaced around the office.

“What you don’t want is a series of banks of desks, the toast rack arrangement of desks after desks, you want to break up the workplace into smaller zones through meeting spaces and reduce overall density,” he said.

Spacing is not enough to stop COVID-19 spreading if the workers have common touch points. Przeradzki expects renewed interest in fittings such as automatic doors and taps operated by sensors.

However, he is clear that the best path to efficiency and safety is not layout and gadgetry.

“It’s the overall office culture that deals with this far better than any purchase,” he said.

“It’s about communicating with your staff, listening to their concerns.”

Winter 2020 WA WORKS 33

Tech Talk

Tech talk WA Works goes on the technology trail for the latest and greatest advances and announcements that will help drive the State’s future Seeing red at mine stoppages

Shipshape after a cold spray

A

ustralia’s ageing fleet of Collins submarines will be able to stay at sea for longer if a two-year research program to develop ‘cold spray’ repairs succeeds.

The program is being delivered by dedicated submarine sustainment organisation ASC, which is partnering with CSIRO and DMTC to pioneer additive manufacturing, or 3D printing, for the repairs.

Cold spray is an additive manufacturing and repair method that uses a stream of supersonic gas to accelerate metal powder particles at a surface, building up a dense deposit.

The process occurs below the melting temperatures of the metals involved, which avoids damaging the structural integrity of the components and surrounding area.

“The use of additive manufacturing for the repair of critical submarine components, including the pressure hull, will mean faster, less disruptive repairs for our front line Collins class submarine fleet,” said Peter King, the Research Team Leader at CSIRO.

A spray of nickel “CSIRO and ASC have been working together for a number of years, exploring ways to use cold spray of nickel to repair corrosion,” King said.

“CSIRO has spearheaded the adoption of

34 WA WORKS Winter 2020

cold spray by Australian industry since first introducing the technology 18 years ago. We have developed unique cold spray-based solutions for the printing industry, aerospace, rail and for combating marine biofouling.”

The project seeks to deliver breakthroughs in submarine repair and cost-of-ownership reductions for the Royal Australian Navy, through expert contributions from industrial and research partners.

It will see ASC engineers working with CSIRO’s Lab22 research facility for additive manufacturing of metals to develop portable equipment for insitu repair in the confines of a submarine.

Once proven and certified, ASC will be licensed to use cold spray to support its work as Australia’s submarine sustainment organisation, primarily in supporting the Collins fleet.

Some maintenance of the six Collins submarines is undertaken at Henderson, WA. The oldest vessel, HMAS Collins, was mostly built in the 1980s and launched in 1993.

ASC is now planning to integrate new technology into the old Collins platform — via the Life of Type Extension (LOTE) program.

Starting later this decade, LOTE will extend the operational life of the submarines until they are replaced by the Attack class submarines, starting in the mid-2030s.

Perth-based RCT has developed a smart traffic signal designed to prevent oversized equipment from getting stuck inside underground mining portals in the Goldfields.

Staff from RCT’s Kalgoorlie branch were separately approached by two major mining clients and asked to devise a solution to prevent portal blockages, which can severely disrupt regular mining operations.

The branch technicians came up with the Over Height Portal Warning System, which consists of a laser mounted at height connected to a unit placed at the portal entrance.

“RCT’s device has been sold to 10 mine sites” The unit will produce an audible alarm and flash the word “STOP” to alert machine operators and nearby site personnel there is a potential over-height hazard.

RCT Kalgoorlie Branch Manager Rick Radcliffe said the local technicians were happy to rise to the challenge set by the company’s clients.

“The system was designed and built in our workshop here in Kalgoorlie and we supplied it to our clients who were quite happy with the result,” he said.

“Occasionally underground haul trucks try to re-enter the portal with their trays accidentally in a raised position and this causes the trucks to get wedged in the portal.”

“The time needed to dislodge the haul truck from the portal is very costly to the mining operation.”

Since its development, RCT’s device has been sold to 10 mine sites throughout the Goldfields.

Policy Corner

Louise Thomas

Innovation needs a fresh approach to thrive Industry would benefit if the State Government is willing to set up a regulatory ‘sandbox’ to enable businesses and regulators to try out innovative products, services, and business models, writes Louise Thomas

I

nnovation can help propel the economy through recovery by increasing productivity, contributing to economic growth, and creating jobs.

The difference between a thriving innovation economy and one that flounders, is often in the enabling environment created by governments.

Inflexible regulations act as a handbrake on investment in new technologies and emerging industries. This is because new technologies often do not fit neatly into existing regulatory models, making it difficult for businesses and entrepreneurs to gain the required approvals to bring their technology to market. This is a significant barrier to entry and creates a first-mover disadvantage. Innovation is stifled in these conditions.

A fresh approach is needed to harness the economic opportunities innovation can bring. Governments and regulators across the world are using ‘regulatory sandboxes’ to boost investment in new technologies and enable innovation to flourish.

What are the benefits?

The use of regulatory sandboxes is at an early stage worldwide, but there is emerging evidence of their usefulness. Evidence from the UK suggests these models can help start-ups by providing important guidance about the application of regulation, enabling the fine-tuning of business models, and increasing the credibility of companies with investors and customers.

Sandboxes also offer benefits to regulators themselves. By becoming more familiar with regulation at the early stages of innovation, regulators are better placed to identify the potential risks associated with the technology, and whether there is a need to reform the existing policy or regulatory framework.

How could it be applied in WA? There are several areas where this approach could be applied in WA. In the energy sector, regulatory sandbox arrangements could be used to facilitate

innovation and investment in microgrids, distributed energy resources and the integration of this technology.

They could be applied to emerging energy technologies with regulatory challenges that do not sit clearly within a defined regulatory framework, including hydrogen and bioenergy technologies.

In agri-business, regulatory sandbox arrangements could help to remove barriers to the use of biotechnology. The cost of developing new gene technology is a significant barrier to entry due to the extensive regulatory requirements involved.

They could also be used to facilitate trials of disruptive technology such as automated vehicles in the transport sector.

Setting up a regulatory sandbox pilot program in WA is an opportunity for the State Government to realise the enormous potential of innovation across the economy at a time when it needs a boost. The regulatory sandbox pilot should be co-designed between government and industry; and it should account for risks, be open to any industry participant and be time-limited.

If you have any thoughts on regulatory sandboxes and the sectors that could benefit from this approach, please drop me a line: Louise.Thomas@cciwa.com Louise Thomas is CCIWA’s strategic industry policy adviser.

What is a regulatory sandbox?

A regulatory sandbox is a ‘safe space’ or testing environment that allows businesses and regulators to try out innovative new products, services, and business models for a limited period with appropriate safeguards. This reduces excessive up-front regulation so that companies can complete proof of concept trials with real users. The concept can be extended to pre-launch and pilot phases.

Within Australia, these arrangements are currently used by the Australian Securities and Investments Commission and the NSW State Government. The Australian Energy Market Commission has also published advice for implementing regulatory sandbox arrangements in the national energy and gas markets.

Winter 2020 WA WORKS 35

A road-worthy

recovery The State Government says it will fast-track major road projects worth $2.4 billion to help WA’s economic rebound from the COVID-19-driven upheavals, writes Stephen Bell

T

here’s nothing like building publicly funded new roads to prime economic development, open new territory and get the blood of under-worked contractors stirring.

It is a tried and tested recipe, perfected two thousand years ago in Europe and Asia by the Roman emperors.

Now their current Australian equivalents, Premier Mark McGowan and Prime Minister Scott Morrison, are betting it will work just as well here in the aftermath of a 21st century pandemic.

A list provided to WA Works by Main Roads WA shows 11 projects worth $2.37b that the McGowan Government plans to fast track. The projects will be bankrolled by the Federal and State Government, who are forecasting 13,000 jobs will be created by their construction.

These include the $852 million Bunbury Outer Ring Road, slated to begin construction early next year, alongside two other regional and eight metro road projects.

Premier Mark McGowan says major infrastructure projects will play a huge part in WA’s economic recovery.

“We have projects across a range of industries that are shovel ready and we can start immediately, that will support our economy

36 WA WORKS Winter 2020

and create Western Australian jobs,” he says.

In terms of transport infrastructure, the State already has six Metronet rail projects underway, in addition to the railcar manufacturing facility in Bellevue.

“But what we want to do is unleash even more work across our infrastructure program, by speeding up the procurement process on a number of projects,” McGowan says.

“We have done the planning — now we need to fast track the approvals and get the money flowing.”

The road projects identified for fast-tracking are:

Metro • Leach Highway/Welshpool Road Interchange, $93m • Stephenson Avenue, $125m • Fremantle Traffic Bridge, $230m • Roe Highway/Great Eastern Highway/ Abernethy Road, $180m • Lloyd Street Extension, $40m • Tonkin Highway Gap project, $290m • Mitchell Freeway Extension to Romeo Road, $215m • Mitchell Freeway Hodges to Hepburn widening, $76m

Regional • Bunbury Outer Ring Road, $852m • Albany Ring Road, $175m • Great Northern Highway Ord River North Stage 3 & 4, $89m Several of the projects are at the alliance shortlisting stage of tendering.

For instance, the race to win the Bunbury Outer Ring Road (BORR) heated up recently after rival consortia headed by CPB Contractors and Acciona were invited to submit detailed proposals to Main Roads.

Fulton Hogan has been awarded the early works contract for BORR, including earthworks preparation, planting and fencing, with local businesses engaged for these works, according to the State Government.

Densford Civil, meanwhile, is the preferred tenderer for the first phase of the Stephenson Avenue extension, with construction — due to begin in August — expected to create 100 jobs.

And Transport Minister Rita Saffioti said that two contracting consortia — NRW/WBHO Infrastructure and BMD/Georgiou — had been shortlisted to kick start the $215m Mitchell Freeway extension to Romeo Road in Alkimos.

A northern section of the recently completed NorthLink highway project. Photograph – Main Roads WA

Tendering for the interchange Other projects on the list are just starting procurement.

The $93m Leach Highway/Welshpool Road interchange project, for instance, is expected to be contracted out as an alliance following a two-part request for proposals (RFP) process.

Fast tracking it makes sense, given the intersection is ranked as the second worst in WA for crash frequency and cost. In the five years from 2014, 224 crashes were reported in the area.

The first part of the RFP, launched in late May aims to shortlist two or three proponents, who will then participate in the commercial second stage.

An interim agreement will be reached with the preferred proponent, which will then have 16 weeks to prepare and agree the target outturn cost.

Once a final sum is agreed, Main Roads will enter an alliance deal with a view to awarding the contract before the end of 2020.

Federal Member for Swan Steve Irons says the project will improve safety and efficiency for commuters, heavy vehicles, cyclists and pedestrians.

“A new road bridge will carry Leach Highway over Welshpool Road and an additional road bridge on Leach Highway over the Armadale

railway line, Railway Parade and Sevenoaks Street,” Irons says.

Outside the 11 major projects, the Federal and State Government also prioritised $223m of “shovel-ready” regional road projects, including the $85m Bussell Highway duplication near Busselton in the South West.

The other WA funding included $20m for two Exmouth packages, Minilya to Exmouth and Yardie Creek road, while $100m of the total package was dedicated to national road safety upgrades.

Meanwhile, a new state-wide Construction Panel aims to “streamline” tendering for transport construction contracts worth up to $20m.

The panel will include buying rules,

designed to minimise tendering costs and maximise the spread of work among small and medium sized contractors.

About $140m of road and maritime projects will be expedited under the panel, with more than 1000 local jobs across the 24 projects to be “brought forward”, the State Government says.

The bigger Main Roads projects in this category include the $15m Churchill Road bridge widening at Denmark in the Great Southern; while the $13m upgrade of the Great Eastern Highway/Old Northam Road (east) intersection, and the $12m construction of a principal shared path alongside the railway line in North Fremantle are both in the metro area.

Winter 2020 WA WORKS 37

Infrastructure

Fresh start for water company A home-grown manufacturer of water treatment plants hopes to extend a decade-long growth spurt at its new premises in Malaga

By Stephen Bell

W

hen MAK Water booked a March date for its move around the corner to a new office and warehouse in the northern suburb of Malaga, the company didn’t expect it would coincide with a global pandemic.

But, amid the upheavals of WA’s COVID-19 response, the new digs showed their worth almost immediately to the fast-growing water plant manufacturer.

The original intention was for MAK Water to occupy half of the new 1200 square metres office space and lease out the remainder, according to CEO Andy Byk. “As a result of COVID-19 we kept the whole 1200 square meters to ourselves and spread out, putting some people in the part that we were going to rent out,” he told WA Works.

“Therefore, we’ve been able to provide the social distancing that people need to come to work.”

As MAK Water’s previous premises were vacant after the move, and there was still some time left on the lease, MAK Water loaned it to local fabricator Adarsh Australia to manufacture COVID-19 face shields for the WA Health Department.

38 WA WORKS Winter 2020

“I know (Ardash Director) Faz Pollard personally, and he was looking for some space to manufacture face shields,” Byk says.

“So, I donated the factory to the cause, as it were, and he borrowed that for a few weeks to make face shields.”

Chicken Run As restrictions started to be wound back in May, MAK Water was progressing several jobs — including a water plant for a chicken farm in NSW. Quite a few livestock producers have sought out the company’s services as using treated — as opposed to ‘dirty’ or bore — drinking water

is said to boost the chickens’ growth rate by about 3 per cent.

Those birds aren’t the only ones growing fast.

The 3,500 square meters of floor space at the Beringarra Ave factory is three-times bigger than the old one, providing MAK Water the means to extend an 11-year growth spurt under the current management.

Byk, a UK-educated mechanical engineer who migrated to Australia in the 1990s, owns half of the company. Chairman Peter Hood and Directors Gary Steinepreis and Tom Henderson own most of the remainder.

The foursome bought the business in 2009, six years after its founder, a desalination plant service technician, “bought a white ute, got his bag of tools, and went out and started up in competition to his previous employer”, Byk explains.

To this day, desalination plants remain an important part of the business, alongside several other water and wastewater treatment technologies, with most plant types recording strong sales in the past decade.

“Typically, we’ve been growing 15 or 20 per cent every year on the compound growth rate,” Byk says.

Whether the company can continue that rate depends partly on how fast the economy rebounds after COVID-19.

Infrastructure

A MAK Water processing plant at a regional mine site

Work in Hand Generally, MAK Water builds plants to order with a delivery timeframe of three-to-six months.

“We’ve got work planned or scheduled, now until October/November,” Byk says.

“That’s work in hand, but what’s going to happen beyond October into next year, is another question. The pandemic certainly has made people hesitate about their large capital decisions, so their projects are being reconsidered.”

“The mining part of the market still seems to be progressing, though it’s going at a slower pace than it used to before the pandemic,” Byk says. “But we’ve also got a lot of applications in industrial processes in factories, hotels, infrastructure projects, hospitals, and tourist parks.”

Many of these installations are interstate, with MAK Water running offices in Brisbane, Sydney, Melbourne, and Adelaide, along with a regional WA site in Karratha.

“MAK Water builds plants to order with a delivery timeframe of three-to-six months” The company has a strong focus on mining, with up to 60 per cent of the equipment supplied to sites across Australia and overseas.

Currently, it is building two big sewage treatment plants: one for a Queensland coal mine and the other for the Rio Tinto-managed Oyu Tolgoi copper mine in Mongolia. MAK Water is also designing a process water treatment plant for a WA lithium mine, a sector that it has built a strong presence over the last half-decade.

Most of its 80-plus employees are in WA where the plants are built and there is a large installed base of equipment on site. About 30 per cent of the team are on the east coast, and many of those are dedicated to maintaining relationships with existing clients.

“We don’t just sell water treatment plants, we service and maintain them,” Byk says.

Among the resources clients, Woodside is the name that “stands out”.

“They would have bought more than a dozen plants from us over the last 10 years.

And we continue to provide ongoing service on their sites as we do many others.”

What next?

As for new business, MAK Water is taking a “wait and see” attitude to the challenges ahead, and Byk is sure there will be several.

“I think everybody is hoping that we can snap back into reality, that everything goes back to how it was before, that everybody is jovial, happy and fully employed. The reality of life is that’s probably not going to happen.”

He says the other reality is that the JobKeeper payments system is creating an “artificial marketplace” for products.

“Companies we’re competing with potentially will have people on JobKeeper payments and, as such, can price the supply of equipment much cheaper than those who don’t get these payments.

“We’re going to see a lot of competitive behaviour in the marketplace, with JobKeeper creating a short-term, highly-competitive marketplace — it’s not sustainable.

“Obviously, JobKeeper has been an essential, necessary and encouraged scheme, but we’ve got to get back to a level playing field at some point.”

Winter 2020 WA WORKS 39

Major Projects List

Artist’s impression of the completed Spoilbank Marina project at Port Hedland

$1.5 billion of new projects Onshore gas and Defence projects dominate new entries for the latest edition of WA Works’ exclusive WA Major Projects list

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he winter list has more than $1.5 billion worth of new entries, showing there is still a bit for the supply chain to smile about in a fragile WA economy coming out of COVID-19.

Gas accounts for about a third of the project value.

In WA, gas generally refers to methanedominated gas extracted from underground geological formations.

But Chinese-backed start-up Infinite Blue Energy will be producing a very different type of gas at its $300 million Arrowsmith project near Dongara.

It aims to produce 25 tonnes of “green” hydrogen per day by electrolysing water using solar and wind power.

IBE says it has secured funding to build the plant, starting with major earthworks early next year and plant commissioning in the second half of 2022.

Arrowsmith would be a welcome addition to the WA gas industry supply chain, given that Woodside recently deferred its two huge Burrup Hub LNG projects, Scarborough and Browse.

However, contractors would be justified in being wary about the forecast timing and costs of Arrowsmith, given it would be the nation’s first commercial electrolysing hydrogen plant.

Should the plant proceed, it will certainly be a boon for suppliers, with IBE forecasting 300 construction workers.

Strike Energy, meanwhile, is on more familiar turf with its $200m West Erregulla project, also near Dongara, having selected infrastructure titan Australian Gas Infrastructure Group, to design, build, own and operate a 50TJ/day gas plant at the conventional onshore gas discovery.

A trunkline will process raw gas before delivering it into WA’s pipeline network, with

40 WA WORKS Winter 2020

Strike anticipating 100 jobs will be created in the building of the plant and associated pipelines. A final investment decision is due by the end of this year.

Defence, meanwhile, has staged a comeback this issue with two significant new projects at or near Henderson now in the pipeline.

“$1.5 billion worth of new entries, showing there is still a bit for the supply chain to smile about” Lendlease won a $365m contract to build naval training and accommodation facilities, with trade packages to be advertised on ICN Gateway (gateway.icn.org.au) later this year.

Defence anticipates an average workforce of 640 onsite during construction, peaking at 750 for about six months in early 2022. The works at HMAS Stirling at Garden Island are anticipated to begin in late 2020, and in mid-2021 at Henderson.

Separately, Fremantle defence contractor L3 Oceania is in the running to lead the design and construction of a new naval facility at Garden Island costing as much as $200m.

This follows the announcement of an alliance deal by the company’s parent, L3Harris Technologies, for the development of the Royal Australian Navy’s new Magnetic Treatment Facility (MTF).

The new alliance was formed to bid for the RAN’s SEA 1350 Phase 2 program, which aims to enhance the stealth capacity of the Navy’s Collins submarines by replacing and upgrading the existing MTF at Fleet Base West. Tenders were expected to close in August.

The $121m Spoilbank Marina project, meanwhile, also offers plenty of opportunities, albeit much further north at the port of Port Hedland.

The State Government expected to begin procurement in July for the long-promised venture, designed to provide a facility for local boaties to launch via a separate channel to the large commercial vessels servicing the iron ore port.

About 220 direct jobs are needed for the two-year build, with the Pilbara Ports Authority running both procurement and construction, which includes a four-lane boat ramp and a 21 boat-pen marina with capacity to expand to 80 pens.

Potash fertiliser in the Goldfields and copper in the Pilbara round out the latest list.

GR Engineering will build the process plant and other infrastructure for Salt Lake Potash’s $264m Lake Way project near Wiluna.

GR’s contracts are valued at $107m, including an $85m EPC component covering the provision of plant, labour, materials and construction services for the process plant and non-process infrastructure.

Salt Lake said construction of a permanent 100-person village was completed in April, with an additional 160 rooms recently installed in preparation for construction ramp up this year.

Finally, Metals X plans to spend up to $60 million restarting its shuttered Nifty underground copper mine in the Pilbara as a big open cut operation, with a final investment decision due in the first half of next year.

Infrastructure upgrades will likely be required for the mine village, power station and airstrip, along with “additional sustaining capital” to maintain the infrastructure in a fit-for-purpose condition, the company says.

Mitsui gas project edging closer

A

The biggest of WA’s new batch of onshore gas projects, the $500 million-plus Waitsia Stage 2 venture near Dongara, is “progressing”, says operator Mitsui.

Mitsui’s statement to WA Works, alongside recent public comments by its joint venture partner Beach Petroleum, suggest the owners are still keen to develop what will be the biggest Perth Basin gas project in decades, despite ongoing delays and an uncertain energy market.

“Waitsia Stage 2 is progressing and the Waitsia joint venture recently responded to the comments provided to the EPA through the public review under the environmental impact assessment process,” a Mitsui E&P Australia spokesperson said.

Mitsui and Beach originally had hoped to approve Waitsia Stage 2 last December.

It would have triggered construction this

Personnel at the Xyris production facility, the hub of the Waitsia Stage 1 expansion

year of a new gas plant with a maximum export capacity of 250 terajoules per day — a project tipped to generate at least 150 construction jobs.

There have been some notable milestones, such as the appointment of Clough in January as EPC contractor, however progress otherwise has been slow.

Last month Beach reported “tangible progress” on Stage 2, and said the partners were targeting a final investment decision by September 30.

It is unclear what this progress involved, although it is understood Mitsui has been seeking permission from the State Government to export some of Waitsia’s gas as LNG via a tolling arrangement with the North West Shelf partners at Karratha.

In the meantime, the joint venture expects to complete its $30m Waitsia Stage 1 project in August, the spokesperson said.

“As the workforce is 100 per cent Western

Australian there is no impact from the State’s border closure however there have been some minor delays in accessing the required materials,” he said.

Stage 1 will double the capacity of the ageing Xyris production facility to 20TJ per day and connect it to the Dampier to Bunbury pipeline (DBNGP) via a 4 kilometre lateral pipe.

The expansion is being managed by Enscope on behalf of Mitsui. Local sub-contractors used include Dongara based In-Situ Construction and Maintenance (ICM) for earthworks and civil, and Geraldton based GCo Electrical for electrical and instrumentation work.

“We also continue to use other local suppliers for accommodation, equipment hire, cleaning and other supplies,” the spokesperson said.

Mitsui estimates about $2m has been spent to date on local sub-contractors and suppliers for the Stage 1 project.

Hundreds of construction jobs for Robe Valley Civmec has won $165 million of work from Rio Tinto including a major job at the Mesa ‘A’ hub in the Robe Valley — a contract expected to employ hundreds of construction workers.

Part of Rio Tinto’s Robe Valley sustaining project, the Mesa A package includes the fabrication and supply of the mine’s wet plant, Civmec says.

The other elements are modularisation, transportation to site, erection, modification, installation, and commissioning of structural, mechanical, piping, electrical and instrumentation, and communication work.

Fabrication of the wet plant at the company’s Henderson facility will employ about 200 people.

The on-site structural, mechanical and piping component will need about 240 people to mobilise to site at peak construction late this calendar year, while the electrical discipline will require another 100 in early 2021, the company says.

The components for the job include: • screening, surge bin and scrubbing facilities and associated conveyor systems, transfer towers; and • sub stations and all piping and cabling, including trenching for underground services.

Mesa A was the latest resources win in what was a good first half for Civmec, which recently disclosed new contracts with key clients Roy Hill, Alcoa and Woodside via Worley.

And Civmec is already executing contracts at other iron ore sustainment projects, including Fortescue’s primary crushing and ore processing facility at Eliwana, while fabricating modularised components for BHP’s South Flank, with the latter contract due for completion mid-2020.

Civmec CEO Pat Tallon says the contractor has a long history of supporting the delivery of Rio’s projects in WA and Queensland, across construction, manufacturing and maintenance.

“We are very pleased to have secured this opportunity to partner with them again,” he says.

Civmec says its relationship extends across other Rio mine sites via the contractor’s maintenance division.

The Mesa A job combined with recent maintenance orders from Rio have a combined value of about $165m, while Civmec’s order book stood at $895m as of mid-May.

Winter 2020 WA WORKS 41

Construction Memo

Cleaning up procurement The State Government’s pace of legislative reform hasn’t slackened this year and it’s been mostly good news for WA’s construction sector, writes Andy Graham

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efore being elected, this Government had made several promises related to procurement of capital works and has been working hard to fulfil them, despite the pressures of competing policy priorities and more recently, COVID-19.

Industry recently welcomed the introduction into State Parliament of the Procurement Bill 2020, which aims to modernise government procurement processes. Reading the bill into Parliament, Finance Minister Ben Wyatt rightly noted that the current fragmented framework is particularly onerous on construction contractors, as works procurement — unlike the procurement of goods and services — is not coordinated under the State Supply Commission Act 1991.

The construction industry has long called for greater consistency in government prequalification requirements, tendering processes and contract forms. It’s a huge red tape issue that has been consigned to the ‘too hard’ basket for too long. There’s no good reason why different state government agencies use different contracts with differing approaches

42 WA WORKS Winter 2020

to risk transfer — it’s just a situation that has evolved over time, and up until now no one was willing to tackle it.

Standardised contracts would allow everybody in government and industry to become more accustomed to their rights and obligations. This would mean less time managing and interpreting

Andy Graham

would join in and ride this wave of reform.

We’ve already seen a welcome move to a more uniform approach within the Transport portfolio, with the recent merging of the major project teams within Main Roads WA and the Public Transport Authority to create a new Office of Major Transport Infrastructure Delivery (OMTID) — a great initiative from new Director-General of Transport Peter Woronzow and his team.

The Government went to the last election with some strong commitments to improving protections for subcontractors in the construction industry, and we have seen a couple of major developments on that front this year. The first was the passing of new laws giving the Small Business Commissioner more wide-ranging powers to investigate payment disputes, particularly those involving subcontractors alleging unfair treatment on major government projects.

Many subcontractors’ woes can be traced directly back to agencies accepting a low bid from a head contractor who is looking to ‘buy’ some work to keep busy. The Government knows this and in fact made a pre-election commitment to “a more reliable process of pre-tender assessment for head contractors … to minimise the risk of underquoting on projects”. They need look no further than the Unusually Low Bid mechanism used by Queensland’s Department of Transport and Main Roads, which disregards bids if they are more than a prescribed percentage below the median.

The Government is well on track to achieving its major commitment to reforming WA’s security of payments legislation, recently releasing a draft Building and Construction Industry (Security of Payment) Bill 2020 for industry comment. There are some very positive reforms, including a significant narrowing of the exemption for some types of resources-related construction work, and reduced payment times for head contracts. A new payment schedule regime, modelled on east

“There’s no good reason why different State Government agencies use different contracts” contracts and more time focusing on the safe and efficient delivery of infrastructure.

The big Government Trading Entities — including Water Corporation, Western Power and DevelopmentWA — fall outside the scope of the Procurement Bill, but we’re hopeful that they will choose to participate. These GTEs are all major procurers of capital works, and all 100 per cent Government owned, so it makes sense they

coast legislation, should ensure a fairer and more consistent approach to progress payments, while tighter rules around adjudication proceedings should address widespread concerns about the high costs of adjudication of payment disputes under the current legislation.

Andy Graham is the WA CEO of the Civil Contractors Federation

ICN Project Update Golden rail opportunity Suppliers have a golden opportunity to get involved in the $1 billion Morley-Ellenbrook Rail project, with two consortia seeking expressions of interest from the market

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llenbrook Alliance, the bidding consortium for CPB and Downer, and the competing Laing O’Rourke-led MELconnx consortium now have separate listings on CCIWA’s ICN Gateway website, which connects suppliers to project proponents and their contractors.

The two consortia were shortlisted by the State Government in April and are heading into the competitive bid phase, where they will show how they would deliver the project. The contract is set to be awarded at the end of this year, enabling construction to begin in 2021.

Both consortia are tendering for the new 21 kilometre railway line, along with new stations to be built at Ellenbrook, Whiteman Park, Malaga, Noranda and Morley.

The main works contract include the design, construction and commissioning of rail track, systems and the stations. This will include bulk earthworks and retaining, structures, grade separations, roads and drainage.

Ellenbrook Alliance “The Ellenbrook Alliance is submitting a proposal, and in support of the industry objectives for this project we wish to engage early with the local and Indigenous supply chain to maximise local participation”, it says.

“We are inviting expressions of interest particularly from Western Australian companies interested in supplying to, or in participating in, this project.

“If shortlisted for the next stage, we will use the information from this expression of interest to assist in engaging with the local supply chain, after the Alliance Development phase.”

While the project provides a great platform for work opportunities, MELconnx says it is “determined to solidify the health of local industry supply well into the future and intends to set new best-practice standards in procurement and payment models” “They will maintain Laing O’Rourke’s existing record for average supply chain payment periods of 40 days, compared to an industry average of 87,” it says.

“This is the beginning of an era of possibility for local industry, who stand to benefit from the construction of the rail line and the lasting legacy this will leave.”

Above ground stations According to the State Government, the new rail line will travel from Ellenbrook’s town centre, down the western side of New Lord Street, through land north of Marshall Road and down the middle of Tonkin Highway, connecting at Bayswater Station on the Midland Line.

Stations on the line will be located above ground due to the high water table along the alignment.

Work is being undertaken to consider how development can best integrate with the stations, including building up the surrounding land or elevating rail to reduce segregation, it says.

Station access including parking, feeder bus services, cycling and walking will be considered as part of the design process.

The Morley Station will be built within the

Tonkin Highway median at the Broun Avenue bridge and link to the Morley Galleria shopping centre, surrounding businesses and local community through high-frequency bus services.

The station location and a 400-bay multi-storey car park will require some “minor changes” to the edge of Wotton Reserve, and relocation of the skate park, the Government says.

A future sixth station is also planned at Bennett Springs East, as population levels increase and development progresses in the surrounding rural area.

The station names are current working names based on location and will need to be reviewed by the Geographic Naming Committee before being confirmed.

“At this point, alternatives, including appropriate Noongar names, will be considered,” the State Government says.

Suppliers can register their interest in working on the Morley-Ellenbrook line project with either consortium by visiting gateway.icn. org.au and typing ‘Metronet’ into the ‘Find Work’ search box.

ICN consultants actively work with both project owners and suppliers to identify capable Australian suppliers for these projects. If you experience any difficulties, or have questions, please contact Ray Loh, manager of Industry Capability Network WA, on 9365 7499. ICN works with project owners who list their projects on ICN Gateway.

MELconnx To support the industry objectives of the project, the MELConnx consortium says it intends to maximise opportunities for local industry and Aboriginal businesses.

It will adopt an approach similar to that used on Laing O’Rourke’s successful Perth Stadium Station project and offer a broad range of opportunities.

In addition, MELconnx has set ambitious Aboriginal participation targets for contracts awarded to Aboriginal businesses in line with Metronet’s Gnarla Biddi Strategy.

Winter 2020 WA WORKS 43

The Big Picture The North West Shelf JV’s North Rankin Complex (NRC) includes the A and B platforms. Connected by two 100-metre bridges, the platforms operate as a single integrated facility.

Located 135 kilometres north-west of Karratha, NRC stands in 125 metres of water and is Australia’s largest offshore gas processing facility. Photograph – csfoto, Christian Sprogoe.

44 WA WORKS Winter 2020

Winter 2020 WA WORKS 45

Resources

46 WA WORKS Winter 2020 Drilling at Strike Energy’s West Erregulla project

Resources

Gas in the

pipeline Onshore gas could soon be fuelling the next big energy supply chain opportunity as several projects north of Perth line up for investment decisions, writes Stephen Bell

T

he next 12 months promises to be an exciting time for economic progress in the Mid West region, with three gas projects worth more than $1 billion combined edging toward final investment decisions.

One of these is Chinese-backed Infinite Blue Energy’s planned $300 million Arrowsmith plant near Dongara. It aims to commission Australia’s first commercial hydrogen plant in 2022 by electrolysing water using solar and wind power.

In contrast, Mitsui/Beach Energy’s $500m-plus Waitsia Stage 2 and Strike Energy’s $200m West Erregulla projects, also near Dongara, are looking to produce conventional gas from geological formations underground.

Both appear well-funded but are still awaiting final investment decisions amid a chaotic energy market spooked by the COVID 19-induced slump in crude oil demand.

However, they may be favoured by local gas market dynamics, with independent consultancy EnergyQuest estimating there are now five major LNG projects in “limbo” — Crux, Barossa, Scarborough, Pluto 2 and Browse — representing $60 billion in investment.

Given that LNG projects are required to reserve 15 per cent of their production for the domestic gas market, EnergyQuest argues that the delays in these projects will cause gas supply to tighten in WA over the next several years.

Waitsia Stage 2 would be the biggest Perth

Basin project in decades, with operator Mitsui seeking to build a new plant with a maximum export capacity of 250 terajoules per day — a venture tipped to generate at least 150 construction jobs.

16-year project Mitsui says the new processing plant will export conditioned gas into the nearby Dampier to Bunbury gas pipeline, with operations expected to continue for 16 years.

The proposal also includes: • Drilling up to six new wells, supplementing the existing two suspended appraisal wells; • Installing a gathering system of flowlines and hubs to convey the extracted gas to the plant and the gas distribution network; • Installing a flowline from the Waitsia plant for water re-injection to the formation via disused petroleum production wells.

There have been some milestones since Mitsui lodged its referral documents to the EPA in September 2019, such as the appointment of Clough last January as the EPC contractor.

However, overall progress has been slow — the project was originally due to be approved late last year.

In May, half-owner Beach reported “tangible progress” on Waitsia Stage 2, with the partners targeting FID in in the current quarter ending September 30. >

Winter 2020 WA WORKS 47

Resources

Strike’s facility will be built adjacent to the West Erregulla field. A trunkline connecting to the upstream development will process raw gas before delivering it into WA’s gas transmission network.

The Stage 1 project is expected to generate more than 100 jobs from building the gas plant and associated pipelines.

> It is unclear what this progress involved, although it is understood Mitsui has been seeking permission from the State Government to potentially export some of Waitsia’s gas as LNG via a tolling arrangement with the North West Shelf partners at Karratha.

“Waitsia Stage 2 is progressing and the Waitsia joint venture recently responded to the comments provided to the EPA through the public review under the environmental impact assessment process,” a Mitsui E&P Australia spokesperson told WA Works.

In the meantime, the joint venture expects to complete its $30m Waitsia Stage 1 expansion in August, the spokesperson said.

“As the workforce is 100 per cent Western Australian there is no impact from the State’s border closure however there have been some minor delays in accessing the required materials.”

Stage 1 will double the capacity of the ageing

Xyris production facility to 20TJ per day and connect it to the Dampier to Bunbury pipeline via a 4km lateral pipe.

The expansion is being managed by Enscope on behalf of Mitsui. Local sub-contractors used include Dongara based In-Situ Construction and Maintenance (ICM) for earthworks and civil, and Geraldton based GCo Electrical for electrical and instrumentation work.

Gas strike Strike Energy, meanwhile, has selected infrastructure titan Australian Gas Infrastructure Group to build a $200 million gas plant at its West Erregulla discovery, also near Dongara, with first production targeted for the first half of 2022.

The Perth-based company says AGIG will design, build, own and operate a 50TJ/day gas plant at the proposed development. A final investment decision is due by the end of this year.

“We’re excited about the longterm future of the WA domestic gas market” In preparation for FID, AGIG had begun front end engineering (FEED), long lead procurement and other early works necessary to secure the requisite tenure and project approvals prior to starting construction.

Strike Managing Director Stuart Nicholls said the company was pleased to be partnering with AGIG, the owner and operator of the Dampier to Bunbury gas pipeline.

“We’re excited about the long-term future of the WA domestic gas market and, with our forecast low cost of production, believe we are in a prime position to move forward with confidence at a time when many in our industry are deferring or cancelling projects.

“West Erregulla is one of the largest and lowest cost onshore conventional gas resources in Australia,” he said.

Waitsia Stage 2 Organisations: Mitsui, Beach Energy, Clough Value: $500m Jobs: 150 When?: FID Q3 2020

48 WA WORKS Winter 2020

Removal of the old gas compressor in preparation for Mitsui’s Waitsia Stage 1 expansion

Resources

The Pilbara’s second-biggest iron ore producer will spend additional funds on dust suppression, as it unveiled plans for the biggest capacity upgrade in years at its Port Hedland export facilities

“BHP has reviewed global best practice dust management and air quality control methods and identified new opportunities to further improve our approach,” says BHP General Manager Port, Nilson Davila.

“We recognise we have a shared responsibility to address dust issues in the Pilbara.

“We have worked, and will continue to work, closely with government, industry and the community to further improve air quality controls at our operations and for the communities in which we operate.”

The Pilbara air quality program involves: • the construction of wind fences at port operations, a method that has been proven to reduce the potential for dust lift-off from stockpiles significantly.

• trialling construction of vegetation barriers to capture dust in the West End in Port Hedland, in partnership with Curtin University and Greening Australia; • Implementation of dust control projects across BHP’s Pilbara supply chain, such as moisture management, ore conditioning and monitoring infrastructure, and improvements to existing controls at mines and port.

“The planned investment signals BHP’s strong commitment to the Pilbara, and particularly to the revitalisation of the West End into a vibrant commercial hub,” Davila says.

“In consultation with the community, we want to ensure we help to improve local amenity while also continuing to provide jobs and economic opportunity for the region.”

By Stephen Bell

Hiring off to a flying start

Less dust, more exports for BHP

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HP will spend up to $300 million on reducing dust emissions from its Pilbara iron ore operations, while studying options to expand its annual export capacity at Port Hedland by 40 million tonnes.

The global miner, which is the biggest user of Port Hedland’s port ahead of Fortescue and Roy Hill, says it is consulting with stakeholders on the potential options to increase “licensed export capacity” beyond the approved 290Mtpa, a level it is yet to achieve.

In May, BHP reiterated its guidance of producing between 273Mt and 286Mt from its Pilbara iron ore operations in the financial year that ended June 30, 2020.

WA Works understands the global miner is looking at upping the nominal capacity to 330Mtpa, which would largely be achieved by upgrading existing infrastructure.

BHP Acting Asset President Western Australia Iron Ore, Tim Day, says that while BHP’s focus remains on reaching 290Mtpa in the medium term, improvements across its supply chain have provided options to potentially increase future productivity, if market conditions allow.

“Any future increase to licensed throughout

would be submitted to the Department of Water and Environmental Regulation for approval,” he says.

“BHP is committed to the long-term sustainable future of the Pilbara as an economic powerhouse, both during and post the COVID-19 recovery.

Meanwhile, a BHP spokesperson said the company had made good progress in fulfilling its mid-March commitment to hire an additional 1500 workers nationally to support the company’s operations during the pandemic.

“BHP is committed to the long-term sustainable future of the Pilbara as an economic powerhouse” “Any increase in our production has the potential to deliver flow-on benefits for local jobs, local business and additional royalty revenues for the state, and we want to ensure we remain open and transparent about our planned footprint in WA,” Day says.

Clearing the air BHP also revealed plans to invest up to $300m over five years to improve air quality and reduce dust emissions from its operations.

The investment follows $400m in projects delivered by BHP over the past decade to minimise dust emissions across its supply chain.

“So far we’ve now filled 1100 of those roles with about 450 in WA,” the spokesperson said.

“We’ve also taken on about 45 Qantas and Virgin staff (about 35 in WA) to help us out at airports.”

The new jobs are six-month contracts.

However, at the end of the initial-term, BHP says it will offer some permanent positions.

To fill its short-term needs, BHP has also been seeking machinery and production operators, truck and ancillary equipment drivers, excavator operators, diesel mechanics, boilermakers, trades assistants, electricians, cleaners and warehousing roles.

Winter 2020 WA WORKS 49

Resources

Social distancing of FIFO workers at a Rio Tinto mine site during the peak of COVID-19

How FIFO saved the day Fly-in-fly-out is an oft-maligned method of populating remote mine sites with shift workers.

But FIFO became an extremely valuable tool during the peak of COVID-19, providing a multibillion-dollar lifeline to the economy, writes Stephen Bell

P

eople in high-vis uniforms, bleary eyed as they go onto shift, or with a touch of spring in their step coming off, are a familiar sight at WA airports.

But this potent symbol of WA’s resourcesdriven economy, the hardy FIFO worker, was at risk of being grounded during COVID-19 as governments moved quickly to limit most forms of air travel in and around the nation.

As we now know, FIFO not only continued after mining was recognised as an “essential” industry, but also became an economic saviour.

For WA, the financial repercussions of shutting, or even slowing, the iron ore sector would have been massive during the peak of the crisis in April and May. With Chinese demand remaining strong throughout the period, the roughly 140 million

50 WA WORKS Winter 2020

tonnes of iron ore shipped out of WA during the two-months would have fetched more than $16 billionbillion — about $260 million a day — basedbased on calculations by WA Works.

When you consider the value of exports was forecast by the Federal Government to exceed $100b in the 2019 financial year ended June 30, it is no mystery why it became a top priority to keep the iron ore money-making machine well oiled.

While most of us bunkered down at home, unprecedented cooperation between governments, workers, mining companies, airports, airline carriers and the industry enabled thousands of critical FIFO workers to keep doing their thing on the remote Pilbara sites.

In the process, they ensured a continued flow of iron ore export receipts and royalty payments to help the shell-shocked WA and

Australian economy keep ticking over.

It was no empty gesture, with some people having to remain on site for up to four weeks, working 12 hours a day — once common but rare in this age, following the release of several reports a few years ago linking the activity to higher risks of suicide and mental health problems.

Those concerns helped drive more flexible rostering and improved onsite facilities, such as providing workers with better communication links to their families.

Most members of the fluoro army accepted they would need to endure, temporarily, the return to longer rosters, along with invasive measures such as pinprick blood testing at airports.

Those measures seemed to work, given there were no outbreaks at Pilbara iron ore mine sites.

The only reported positive case in the sector was in April, when a contractor who’d travelled to Bali was picked up by Rio Tinto’s screening at Perth Airport.

Meanwhile, new research being done by a team of experts from Curtin University and University of Western Australia will study the experiences, mental health and wellbeing of FIFO workers during the pandemic.

Resources Lessons learned By late June, the tougher FIFO rosters of Rio Tinto, BHP and Fortescue were all being wound back to pre-pandemic levels as the state’s infection rates dwindled to near zero.

However, it is instructive to look back on what happened, and take away some learnings.

At the peak of the pandemic, Rio Tinto lengthened its FIFO swings to two weeks on/two weeks off, when most were accustomed to one on/one off stints.

According to Rio Tinto CEO Jean-Sébastien Jacques, the changes, to limit the amount of worker movements to and from the Pilbara, were made in quick time.

“We moved all of our iron ore employees to different rosters in a week, where previously it may have taken a year,” Jacques said.

22, saying the move would be supported by the introduction of an additional screening measure, Polymerase Chain Reaction (PCR) testing.

“Fortescue has been in a privileged position to continue to operate during this time of unprecedented disruption,” Gaines said.

“Our primary focus is the health and safety of the Fortescue family and the wider community, and the PCR testing supports our return to normal rosters, while also contributing to the broader community understanding of this virus.”

Back to being flexible BHP, meanwhile, said it would begin transitioning its FIFO and residential workforce back to regular rosters from late June.

WA Iron Ore Acting Asset President Tim Day said the company was taking a “considered” approach

“I am absolutely loving the agile new Rio Tinto and there are some recent gains we want to lock in” “We screened 9000 of our employees in a few weeks through testing facilities at Perth airport which we set-up from scratch, with the full support of the government both at the federal and state levels.”

“I am absolutely loving the agile new Rio Tinto and there are some recent gains we want to lock in,” he said, referring to: • increased collaboration across the business and with partners; • a closer partnership between commercial and the operations; and • greater regional and locally empowered decision-making.

Fortescue, meanwhile, had moved its 9000 FIFO workers from two weeks on/one week off rosters to four on/two off starting March 27 — reducing travel to its sites by 40 per cent.

“We recognise our role in reliably delivering iron ore shipments and the flow of taxes and royalties which contribute to economic activity, at this time of critical national need,” Fortescue CEO Elisabeth Gaines said at the time.

Two months later, the company announced a return to shorter swings starting from June

to returning its workforce to regular rosters and flexible work arrangements and anticipated the transition would take “some months”.

“For the past couple of months, many of our employees have had to change the way they work.

“This includes FIFO employees staying on site for extended rosters and not entering local communities, all while being away from their family and friends.

“Throughout July we anticipate starting to mobilise FIFO roster employees currently working from home back to site and would anticipate most of our Perth-based workforce returning to the office.

“BHP has embraced flexible work arrangements and rosters for many years now and we anticipate that flexibility will continue as we transition into the recovery phase of this pandemic,” Day said.

What next?

During the peak of virus fears, some commentators wondered if resources companies, alerted to the dangers of relying heavily on FIFO during a pandemic, would try to source employees from regional towns close to their mine sites.

Rio Tinto Iron Ore CEO Chris Salisbury pointed out the fallacy of the argument, stating that FIFO was part of the division’s business footprint.

“We offer a number of residential communities — Paraburdoo, Tom Price, Karratha and Pannawonica — and all of those towns are full,” he said.

In contrast, the company’s FIFO workforce focused on operations — such as Yandi, West Angelas and Hope Downs — that were remote even from those towns.

“There’s no option there — there is no town — so a FIFO operation is actually the only way to go. As our operations move further away from regional centres, I think we’ll see it continue.”

But Salisbury did say that some changes might become permanent, with a team looking at how Rio could lock in the benefits of different practices caused by COVID-19, and “what work should be based in the Pilbara and what could be moved back into Perth”.

Changing planes: iron ore rosters (in weeks) Prepandemic BHP

April/May June/July

Flexible

2 on/2 off

Flexible

Fortescue

2 on/1 off

4 on/2 off

2 on/1 off

Rio Tinto

Mostly 1 on/1 off

2 on/2 off

Mostly 1 on/1 off

Winter 2020 WA WORKS 51

Defence

Navy build opportunity A hefty supply chain opportunity has arisen on the Henderson industrial strip, after the Federal Government contracted Lendlease to build new naval facilities Naval Facilities Organisations: Defence, Lendlease Value: $365m Jobs: 750 When?: Late 2020

By Stephen Bell

A

spectacular 70-metre high assembly hall at Henderson is now the home of Australia’s $3.6 billion offshore patrol vessel program, after construction started recently on the first of ten OPVs to be built over the next decade.

Civmec’s vast $85 million building towers over all other structures at the Australian Marine Complex (AMC) on the Cockburn Sound shoreline. The local company is building the OPVs inside the workshop on behalf of Luerssen, the Navy’s prime contractor.

will support the Navy’s Perth-based ships, as well as the increased number of Navy personnel living and training on Garden Island.

750 jobs coming soon The Lendlease facilities project is forecast to create up to 750 construction jobs.

A Defence spokesperson told WA Works Lendlease expects to release requests for tenders for the initial trade packages from October on the CCIWA-managed Industry Capability Network (ICN) gateway site (gateway.icn.org.au).

“ICN will be used to advise industry of (an) Invitation to Register Interest (ITR) process,

“Lendlease facilities project is forecast to create up to 750 construction jobs” But more structures will soon be springing up elsewhere in the AMC and the nearby HMAS Stirling naval base on Garden Island, as the OPV program gathers pace.

The Federal Government recently awarded a $365m contract for this building work to Lendlease, which is now in a design phase ahead of construction beginning late this year.

Defence Industry Minister Melissa Price said the new accommodation and training facilities

52 WA WORKS Winter 2020

including where they can find additional information at a Gateway website to be created for the project,” the spokesperson said.

“The website will include details of the project and directions on where to find ITRs, contact details for someone they can speak to and any other relevant information.

“Lendlease will also engage with local industry groups such as Master Builders WA and local chambers of commerce to assist in identifying

and connecting with suitable local businesses.”

Quoting advice from Lendlease, Defence anticipates an average workforce of 640 onsite during construction, peaking at 750 for about six months in early 2022.

The works at HMAS Stirling are anticipated to begin in late 2020, and in mid-2021 at Henderson, with all works due to be complete by mid-2023, the spokesperson said.

Lendlease on the job Lendlease Building CEO Dale Connor said the company was committed to helping the Federal Government increase its sovereign defence capability.

Japanese Ship Chiyoda and MV Mega Bakti alongside Diamantina Pier prepare to depart HMAS Stirling on Garden Island for the start of the sea phase during Exercise Pacific Reach 2019. Photograph: Defence

“Our Western Australian building workforce is the largest it has ever been, and this project continues on the strong work our team is doing for Defence in the state,” he said.

“It will allow us to deliver more local jobs and build local industry capability at a time when our economy needs it most.

“With a focus on local industry, Indigenous and veteran participation, the project is particularly meaningful for us to be delivering critical accommodation and training infrastructure for Defence personnel who protect our shores.

“Work is underway now, with up to 100 jobs in the planning phase and 750 jobs in the delivery phase,” Connor said.

Naval capability Price, meanwhile, said the new works are the third package to be delivered under the Navy Capability Infrastructure Sub-program, which will total about $2.1b of facilities and infrastructure to be delivered across Australia over the next six years.

The HMAS Stirling facilities will include living-in accommodation and a specialist training centre to train crews in operating and maintaining the Arafura OPVs. The State Government-owned AMC site, meanwhile, will be used by Navy, in concert with key industry partners, for operational

maintenance and through-life support of the Arafura class, Price confirmed.

The first of the Arafura class vessels, the Adelaide-built HMAS Arafura, will be based at HMAS Stirling. It is scheduled to begin trials next year and operational activities from 2022.

Civmec said major construction of the third OPV started in May, with the processing and welding of first steel.

It said the consolidation of the ship’s blocks will commence in the new assembly hall in the coming months and become a “continuous process” for the 10 vessels to be built at Henderson.

As well as the OPVs, the AMC is also the base for existing maintenance and sustainment programs for the Anzac warfare frigates and Collins submarines.

Winter 2020 WA WORKS 53

54 WA WORKS Winter 2020 Photograph – Defence

A glimpse into

the future cont. p56

Winter 2020 WA WORKS 55

Defence

Photograph – Defence

The Royal Australian Navy’s first offshore patrol vessel is coming together in South Australia, offering a glimpse of what WA industry can expect in coming months as the $3-4 billion construction program moves to Henderson

T

he two halves of the first Arafura class vessel, built by Luerssen and its SA partner ASC as part of the SEA 1180 program, were joined in May to form a complete hull.

It marks the largest industrial manoeuvre at the Osborne naval shipyard on the Lefevre Peninsula, about 25 kilometres north west of Adelaide’s CBD. Defence Minister Hon Linda Reynolds said the Australian Naval Infrastructure operations team manoeuvred the two mega-blocks of the ship together, weighing 1000 tonnes in total, with only millimetres between them.

“It is a source of great pride to see a unified purpose among industry partners Luerssen, ASC and ANI, with defence industry continuing to show resilience to deliver during these challenging times,” Reynolds said.

The Morrison Government was not only

56 WA WORKS Winter 2020

delivering the capabilities needed by Defence, but also providing a significant impact to the economy while boosting jobs, she said.

The program of 12 offshore patrol vessels will replace and improve upon the capability delivered by the Armidale class and Cape class patrol boats.

The first vessel, Arafura, is planned to enter service from the early 2020s and will conduct border protection and maritime patrol missions alongside other Australian and regional partners.

Defence Industry Minister Melissa Price, meanwhile, was pleased to see “new investments and innovations made as part of this program, with ANI undertaking significant expansion and modernisation” of the Osborne shipyard.

The first two vessels are under construction at Osborne, with the remaining 10 to be built at Henderson in WA.

Luerssen is the prime contractor working with shipbuilding partners ASC in South Australia and Civmec in WA to deliver the offshore patrol vessel capability for Defence.

Civmec’s new $85 million assembly and sustainment hall, with 53,000 square metres of usable floor area, is now ready to house the construction of the remaining 10 vessels.

Construction of the facility at the Australian Marine Complex in Henderson began in April 2017, a year before Civmec’s bidding partner Luerssen was awarded the contract.

The significant capital investment was a leap faith by Civmec as it sought to diversify into defence. The shed is also big enough to accommodate large oil and gas modules.

Civmec’s role in SEA 1180 so far has included the preparation and profile cutting of steel plates at Henderson for the first two vessels being built in SA. And, earlier this year, Civmec processed and welded the first steel for the third vessel, the first that will be built at Henderson.

At the time of writing, the company said the consolidation of the ship’s blocks would begin in the assembly and sustainment hall “in the coming months” and become a continuous process for all the 10 WA vessels to be built this decade.

Civmec says the Federal Government’s shipbuilding plan is supporting an Australian naval shipbuilding and sustainment industry that will provide “long-term opportunities”.

Henderson is also designated a shipbuilding and sustainment precinct, which promises more work for the company’s marine, defence and infrastructure division.

Defence

Cape build ensures Austal jobs Naval shipbuilding remains a bright spot for the Henderson industrial strip, with three different classes of patrol boats now under construction following Austal’s latest contract win, writes Stephen Bell

H

undreds of jobs will stay in WA after Austal won a contract to design and build six “evolved” patrol boats for the Royal Australian Navy’s new $350 million Cape-class program.

Austal’s share of the deal: $324m.

Construction began in May at the company’s Henderson shipyard.

The new vessels will add to the Navy’s existing patrol boat fleet. Austal expects deliveries to start from September next year, then successively through to mid-2023.

CEO David Singleton said the deal reaffirmed the Cape-class as Australia’s pre-eminent patrol boat platform, which had proven to be a reliable and effective maritime asset since its introduction in 2013.

“These new, evolved Capes add even greater national security at this critical time during the COVID-19 pandemic by ensuring at least 700 jobs are maintained at Austal, and supply chain opportunities continue for Australia’s shipbuilding industry,” Singleton said.

The plan to replace the Navy’s existing fleet of 13 Armidale-class patrol boats with evolved Capes was first proposed by Robert Jackson, Head of Business Development — Sustainment at Austal.

A clever idea “The Defence Department is always seeking smart cost-saving ideas, and I knew that jobs in the industry was a critical issue for everyone, so I proposed replacing older Armidales with newer, larger, more efficient Capes,” Jackson said.

into service starting from next year.

“These (Cape) vessels will not only enhance national security but provide important economic stimulus and employment continuity during the COVID-19 pandemic,” Defence Minister Linda Reynolds said.

She said the program would deliver Australian industry content of more than 65 per cent, providing opportunities for local industry as well as more than 1200 workers in the broader supply chain.

Defence Industry Minister Melissa Price, meanwhile, said the new Cape boats would help to ensure continued employment opportunities for

“The new vessels will add to the navy’s existing patrol boat fleet” Based on Austal’s 58-metre aluminium monohull design, the new Cape enhancements will include an increase in crew capacity by 10 to 32 people.

The Australian Border Force (ABF) currently operates eight Cape patrol boats, while the Navy runs two leased Capes.

The six new Cape boats will grow the patrol boat force to 16 vessels, while the new, larger Arafura-class offshore patrol vessels — now under construction at Civmec’s facility at the Australian Marine Complex — are introduced

400 of Austal’s commercial shipbuilders in WA, with benefits flowing down to the supply chain.

“Austal is an Australian industry success story, with the company already building variants of the Cape-class patrol boat for international customers, including the government of Trinidad and Tobago,” she said.

Austal is also building the Guardianclass patrol boats in support of the Morrison Government’s 21-vessel Pacific patrol boat program, whereby the finished vessels are gifted to several Pacific nations.

Changing of the guard Separately, Austal announced that Singleton would depart the company at the end of 2020 after nine years as a director, including five as CEO. During the transition, Singleton would work closely with current Chief Operating Officer Patrick Gregg, to be promoted to the position of CEO on January 1, 2021.

Gregg’s work experience includes UK-based BAE Systems, where he was project director for the second-of-class Hunter killer nuclear submarine build.

Austal Chairman John Rothwell said Gregg was appointed three-and-a-half years ago with a view to him being a natural successor for the CEO role.

Since his appointment, the company had set up operations in Vietnam, expanded its operations in the Philippines, and won the new Cape-class contract.

“Our shipyards in Australia, the Philippines, Vietnam and China are working incredibly efficiently while producing quality defence and commercial vessels,” Rothwell said.

Suppliers interested in working for Austal can email suppliers@austal.com and should also visit the suppliers web page at australia.austal.com/supplying-austalaustralia for more information about contract categories, purchase order terms and conditions, and HSE requirements.

Winter 2020 WA WORKS 57

Defence

L3 Oceania’s magnetic attraction A long-standing Fremantle defence contractor is in the running to lead the design and construction of a new naval facility at Garden Island costing as much as $200 million

By Stephen Bell

A

new alliance deal struck by US defence industry giant L3Harris Technologies could engender new technology jobs and construction work for the company’s L3 Oceania subsidiary if a bid for the Royal Australian Navy’s new Magnetic Treatment Facility (MTF) program succeeds.

The alliance, which includes Hendersonbased SME Indianic Group and UK-based Ultra Electronics, was formed to bid for the RAN’s SEA 1350 Phase 2 contract, which aims to

58 WA WORKS Winter 2020

enhance the stealth capacity of the navy’s Collins submarines by replacing and upgrading the existing MTF at Fleet Base West.

A request for tenders is scheduled to close August 14, and the preferred tenderer for the MTF upgrade is expected to be announced next year, according to Defence.

“SEA 1350 Phase 2 remains within the budget advised in the 2016 Defence Integrated Investment Plan,” a Defence spokesperson told WA Works, referring to a published range of $100-$200m.

The new MTF, due to begin operating in 2023,

would enable the submarine fleet to undergo a pre-deployment process, which aims to reduce or eliminate the magnetism of a steel hull to enhance stealth capability. This would prevent submarines from triggering magnetic mines or attracting certain types of torpedos.

L3Harris’ Oceania business already supports the Navy’s Collins submarines, which are based at Fleet Base West and maintained at ASC’s facility in the Australian Marine Complex (AMC) at Henderson.

L3 Oceania provides the acoustic undersea range systems supporting signature management and live firing exercises and supports many other RAN systems including maritime navigation and hydrographic mission systems.

Subcontract experts “Reducing ships’ magnetic signatures is a key capability for the RAN,” said Alan Titheridge, Managing Director of L3Harris Australia Group.

“If we’re successful, we would also subcontract a number of other WA-based subject matter experts to support the design, construction and maintenance of the new facility — delivering sovereign superiority in the region.”

Indianic, which specialises in marine and

Defence

HMAS Newcastle docks at the Magnetic Treatment Facility (MTF) at Fleet Base West

Collins submarine HMAS Farncomb prepares to berth alongside it’s home port of Fleet Base West at Garden Island. Photograph- Defence

subsea infrastructure, maintains and operates the existing magnetic measurement and deperming facilities at Fleet Base West.

“We have been involved with the magnetic treatment facility for the past 15 years, maintaining and sustaining the facility on a daily basis,” said Indianic Managing Director Michael Gray. “We look forward to joining forces with L3Harris and Ultra to provide a combined and enhanced support offering to the RAN.”

Sods turned on Civmec submarine shed In another positive development, the navy’s $388 million program to acquire a new rescue service for submariners has surfaced at Henderson with Defence Minister Linda Reynolds turning the sods for a facility to be built by Civmec.

US-based Phoenix International won Defence’s contract last year to supply the total rescue

“If we’re successful, we would also subcontract a number of other WA-based subject matter experts” Ultra’s PMES business, meanwhile, supplies the RAN’s existing MTF as well as all in-service open sea magnetic ranges.

Under a memorandum of understanding, the partnership will extend to the SEA 1350 Phase 3 Maritime Underwater Tracking Range, covering the upgrade of the fixed and portable acoustic tracking ranges, which is planned to be tendered in late 2020.

service, which is designed to support both the Collins and yet-to-be-built Attack Class submarines for 25-plus years.

The $12.5m facility is part of the program’s $279m acquisition phase, expected to create up to 40 jobs during construction and at least 55 ongoing roles.

The one-hectare site on Stuart Drive near the AMC’s Common User Facility will house

Inductance cables wrapped around HMAS Melbourne in order to conduct a deperming treatment in the Magnetic Treatment Facility at HMAS Stirling – Photograph Defence

a rapid launch and recovery system, hyperbaric treatment unit, and maintenance training and testing infrastructure with a seven-metre deep pool.

Construction is scheduled to finish in February 2021, while the sea and air rescue service is due to begin operating by 2022.

While Civmec is building the shed, Bibra Lake-based Total Marine will design and fabricate a remotely operated vehicle (ROV) as part of Phoenix’s contract.

Phoenix, meanwhile, is building a 600-metre (depth) capable remotely operated rescue vehicle and a rescue bell, with some fabrication and outfitting of both taking place in WA at the rescue facility.

While the primary mission is to deliver a rescue capability for Australia’s submarine fleet, the system will also be capable of “supporting other submarines operating in our region”, Reynolds said.

WA Defence Issues Minister Paul Papalia said the new service would ensure WA remained the home base for Australian and international submarine rescues in the region, “boosting our reputation as a defence industry, manufacturing and maintenance hub”.

Winter 2020 WA WORKS 59

The Big Picture A haul truck drives past wind turbines at Gold Fields’ $112 million hybrid energy project at the Agnew gold mine. Five turbines are integrated into what is Australia’s largest hybrid renewable microgrid, and the first to power a mine with windgenerated electricity. In favourable weather, the project has delivered up to 70 per cent of Agnew’s power requirements.

60 WA WORKS Winter 2020

Winter 2020 WA WORKS 61

North West Shelf Perseus North Rankin Goodwyn Rankin Dockrell

Chandon

Jansz–Io Scarborough

Pluto

Major Resource Projects

Hermes Lambert Angel Cossack Wanaea

Athena

Project labels:

Pemberton

Iago

Major mineral and petroleum projects operating and under development are shown in blue

Reindeer

Xena Brunello Chrysaor/Dionysus Julimar See West Tryal Rocks Barrow Island Achilles Clio enlargement Gorgon Satyr

Proposed and potential major projects are shown in red

Wandoo

Mineral projects under care and maintenance and petroleum projects that are shut-in are shown in purple

Stag Ammonia/Urea NWSV LNG Yara Pilbara Fertilisers Pluto LNG Yara Pilbara Nitrates Anketell

Dampier

Halyard

Dampier Salt

Cape Preston

Cape Preston East Cape Lambert Devil Creek Gas Eramurra Salt Maitland River Radio Hill Plant Sino Iron Whundo Zn Cu Balmoral South

Torosa Brecknock

Prelude Ichthys

Cape Bougainville

Blacktip

Calliance

Mardie Salt K Coniston Novara Vincent Stickle Moondyne Enfield Laverda Macedon Ravensworth Crosby

Ashburton North

Cape Range Lst

0

50

10 km

Onslow

Tubridgi Gas Storage

100

14 Dorado

SOD

Oil

PROPOSED -19.0336 118.7338WA-437-PQuadrant

Dorado 1

Excellent

Quadrant

R Bruce 23/8/18

Announced 7/2018

Kilometres

Ag........... Silver Al............ Alumina Au........... Gold Co........... Cobalt Cu........... Copper Dmd........ Diamond Fe........... Iron Fl............ Fluorite Gp........... Gypsum Gr............ Graphite Grt........... Garnet K............. Potassium Kln.......... Kaolin Li............. Lithium Lst........... Limestone LNG........ Liquefied natural gas Mag......... Magnetite Mn.......... Manganese Nb........... Niobium Ni............ Nickel Pb........... Lead Pd........... Palladium PGE........ Platinum group elements Pt............ Platinum REE........ Rare earth elements Ta............ Tantalum Ti............ Titanium V............. Vanadium W............ Tungsten Zn........... Zinc Zr............ Zirconium

Mineral symbols

Precious mineral

Broome

Savannah North Savannah McIntosh Gr Copernicus Panton Pt Pd

India Bore

Ungani

Duchess–Paradise Pillara Zn Pb

Nicolsons

!

Kapok West Pb Zn Ag

HALLS CREEK Brockman REE Nb Zr

Browns Range REE

Admiral Bay Zn Pb

Port Hedland

Cummins Range REE

Asian Renewable Energy Hub wind & solar Winu Woodie Woodie Mn

Citadel Au Cu Minyari–WACA Au Cu Co Telfer Au Cu O'Callaghans W Cu Zn Pb

Nifty Cu

Maroochydore Cu Co Kintyre Lake Mackay K

Nicholas Downs Mn

See North West Shelf enlargement

Lake Disappointment K See Pilbara enlargement

Yangibana REE Cape Cuvier

Butcherbird Mn

Lake MacLeod Gp Lake MacLeod Salt

Glenburgh Yalbra Gr

Shark Bay Salt Coburn

Au (or as shown)

Steel alloy metal

Ni (or as shown)

Speciality metal

Port Gregory Grt

All sites are bauxite

Balline Grt

Geraldton

Ilgarari Cu

Abra Pb Cu Zn

CARNARVON !

Precious metal

Ti–Zr (or as shown)

Thunderbird

Dorado

Dmd

Base metal Iron Alumina

Ord River Hydro Energy Speewah V Ti Fe Al Speewah Fl Smoke Creek Matsu Argyle

Derby

Browse LNG Precinct

Paulsens

Commodities

Ord–Mantinea Flats Ord Stage 1 !

KUNUNURRA

Cockatoo Island Irvine Island Koolan Island

Wonnich Wonnich Deep

Bambra Linda Lee Rose Harriet Monty Josephine Baker Ginger Agincourt Simpson Barrow I South Plato Little Sandy Pedirka Victoria Gorgon LNG Barrow Island West Cycad

Onslow Salt Wheatstone LNG Macedon Gas

Ashburton Salt

Exmouth

Sorby Hills Pb Zn Cu Ord Stage 2

Wyndham

Barrow Island

Beyondie K

Plutonic Dome Horseshoe Lights Cu Au Ag Plutonic Fortnum Hermes Thaduna Cu Ag Telecom Hill DeGrussa Monty Cu Au Cu Au Jack Hills

Wiluna Jundee–Nimary Paroo Station Pb Meekatharra Wiluna/Toro Matilda Parks Reef PGE Au Gabanintha/TM V Ti Wiluna Lake Way K Weld Range Honeymoon Well West Yeelirrie Mt Keith Cue JV – Hollandaire Cu Au Ag Australian Vanadium Kathleen Valley Li Ta V Ti Gidgee Cliffs Big Bell Barrambie Bronzewing Yakabindie V Ti Fe South Fingall Comet Dalgaranga Mt Magnet Yogi Mag Windimurra V Fe Youanmi V Ti Kirkalocka

Coal and lignite Uranium Industrial mineral Processing plant

Succoth Cu PGE West Musgrave

Wingellina Tollu Cu

Lake Wells K / Salt Lake Potash Lake Wells K / Australian Potash

Gruyere

Cyclone Tropicana

Mulga Rock

Petroleum symbols

Gas Oil Oil and gas Processing plant Oil / gas pipeline, operating Oil / gas pipeline, proposed

Edna May

PERTH Fremantle

!

Wickepin Kln

Cosmic Boy Concentrator

See Goldfields enlargement

Bunbury Katanning Mt Cattlin Li Ta Great Southern Au Cu

Ravensthorpe Munglinup Gr Springdale Gr

Esperance

See South West / Mid West Coastal enlargement

Enquiries for latest information for Commonwealth controlled waters is available from the National 62 WA WORKS Winter 2020 Offshore Petroleum Titles Administrator (NOPTA) at <info@nopta.gov.au>

EUCLA !

Tampia

Infrastructure

Power plant Irrigation / water / desalination Port

Silver Knight Nova–Bollinger

Collgar wind

Southdown Mindijup Albany & Grasmere wind

Albany

Scaddan

0

100

200

Kilometres

300

400

Major Resource Projects Reindeer Port Hedland Salt

Wandoo

Port Hedland

Stag Ammonia/Urea Yara Pilbara Fertilisers Yara Pilbara Nitrates

Dampier

Dampier Salt

Cape Preston Eramurra Salt Sino Iron

NWSV LNG Pluto LNG

Cape Preston East Devil Creek Gas Maitland River

Cape Lambert Anketell Cape Lambert

Mineral symbols

Balla Balla

Whim Creek Cu Pilgangoora/Altura

Radio Hill Plant

Pilgangoora/Pilbara

Whundo Zn Cu

Balmoral South

Wodgina Li

Spinifex Ridge Mo Cu

Miralga Creek

Speciality metal

McPhee Creek

PANNAWONICA Pilbara Energy Transmission Line

PIOP/Flinders

Serenity

Paulsens

Beasley River Rocklea CID

Marandoo

50

Oil / gas pipeline, operating Oil / gas pipeline, proposed

Roy Hill

Koodaideri

Marillana

Extension Nyidinghu Yandi/BHPB Iron Valley Yandicoogina/HI Hope Downs 1 Mining Area C Jinidi South Flank Rhodes Ridge

Infrastructure

Power plant Irrigation / water / desalination Port

Ophthalmia Hope Downs 4 Mt Newman 24-25 Wheelarra Mt Whaleback !

Davidson Creek NEWMAN Mt Newman 29, 30, 35 Mt Newman 18 Jimblebar Coobina Cr

Wonmunna West Angelas

PARABURDOO Turee Syncline !

Western Range Eastern Range Paraburdoo Channar

Pilbara 100

Robertson Range

Kilometres

Prairie Downs Zn Pb Ag

Oakajee

Major mineral and petroleum projects operating and under development are shown in blue Proposed and potential major projects are shown in red

Deflector Au Cu Ag Golden Grove Cu Zn Pb

Mineral separation

Narngulu synthetic rutile Alinta–Walkaway wind Mumbida wind

Shine Golden Dragon

Greenough River solar

Mineral projects on care and maintenance and petroleum projects that are shut-in are shown in purple

Mungada East Extension Mt Mulgine W Mo

Irwin River

Centauri 1 Dongara Waitsia Xyris South Mondarra gas storage Jingemia West Erregulla 2 Tarantula Cliff Head Dongara Redback Beharra Springs Eneabba/Sheffield

Enquiries for latest information for Commonwealth controlled waters is available from the National Offshore Petroleum Titles Administrator (NOPTA) at <info@nopta.gov.au>

Karlawinda

Project labels:

South West / Mid West Coastal Geraldton

Christmas Creek

Cloud Break

Hardey

0

Gas Oil Oil and gas Processing plant

Mesa – Ant Hill Mn

Kings

Western Turner Syncline !

TOM PRICE Tom Price

Brockman 4

Coal and lignite Industrial mineral Processing plant

Petroleum symbols

Mulga Downs

Nammuldi Eliwana

All sites are bauxite

Nullagine

Silvergrass

West Pilbara

Base metal Iron Alumina

Nullagine CID

Investigator

Weelumurra Firetail

Ti–Zr (or as shown)

Big Hill W

!

Caliwingina

Ni (or as shown)

Corunna Downs

Mt Webber

Mesa J Mesa A – Warramboo

Steel alloy metal

Sulphur Springs Zn Cu Pb !

MARBLE BAR Iron Bridge Mag Warrawoona

Mardie Salt K

Bungaroo Creek Bungaroo South

Ag........... Silver Al........... Alumina Au........... Gold Cr............ Chromium Cs........... Cesium Cu........... Copper Fe........... Iron K............. Potassium Kln.......... Kaolin Li............. Lithium LNG........ Liquefied natural gas LPG........ Liquefied petroleum gas Mag........ Magnetite Mn.......... Manganese Mo.......... Molybdenum Ni............ Nickel Pb........... Lead Phos....... Phosphate REE........ Rare earth elements Sisd......... Silica sand Sn........... Tin Ta............ Tantalum Ti............ Titanium Tlc........... Talc V............. Vanadium W............ Tungsten Zn........... Zinc Zr............ Zirconium

Au (or as shown)

Balla Balla Fe V Ti

Sherlock Bay

Commodities

Precious metal

Karara Mag

Oxley K

Rothsay Magnetite Range

Three Springs Tlc

0

Goldfields 50

Extension Hill Mag

Odysseus Bellevue Leinster

100

Darlot

Vivien

Lawlers Agnew–Emu

Kilometres

Moolart Well

Rosie

Garden Well & Rosemont

Ben Hur – Epsilon

Thunderbox

Eneabba/Iluka Warradarge wind

Bentley Zn Pb Cu Mt Forrest JURIEN BAY !

Badgingarra wind

Dandaragan K Phos

Emu Downs wind and solar Atlas Cooljarloo

Moora Silica Waddi wind Yandin wind

Neerabup/Newgen

Kilometres

Lake Carey

Darling Range Lake Giles

Deception

Chandala mineral separation and synthetic rutile NORTHAM Meckering/Dana Kln Felicitas !

Wesbeam timber Fortuna Meckering/Altech Kln Gnangara Sisd

Windarling

Davyhurst

Marda Sandy Ridge Kln

!

Carina

G

Lake Deborah Salt Keysbrook Huntly

Pinjarra Alumina Boddington Au Cu Marradong Willowdale

Koolyanobbing

Athena Corinthia !

Boddington

Kemerton Sisd Titanium pigment Worsley Alumina Bluewaters 1-2 Collie Bunbury !

Ewington Cristal mineral separation Doral mineral Premier Wesfi timber separation Muja Capel North synthetic rutile Wespine timber Wonnerup North Tutunup Wonnerup South Yalyalup Yoongarillup 100 Ta Greenbushes Li Ta Sn

SOUTHERN CROSS Marvel Loch

Comet Vale Goongarrie Scotia Bardoc Ora Banda

Anglo Saxon–Trouser Legs Karari Black Swan

Paddington

Lindsays

Pinnacles

Atlas–Kalpini Gordon–Sirdar

Kanowna Belle Millennium Castle Hill Bombora – Lake Roe KALGOORLIE–BOULDER Jaurdi Kundana Superpit !

Frogs Leg Boorara Ag Au Zn White Foil Lithium Refinery Geko Nickel smelter Blair COOLGARDIE !

Coolgardie South Kal Bullabulling Mt Monger Aldiss Burbanks Randalls Carnilya Hill Mt Marion Li Ta Nepean Long–Victor Beta Hunt Nickel concentrator St Ives Widgiemooltha The Mount

Nevoria

Southern Seawater desalination Lithium hydroxide Silicon smelter Chlor alkali

50

Sunrise Dam Red October

Ulysses

Second Fortune

Fremantle Henderson Graphite

Wagerup Alumina

Burtville Mt Weld Phos Mt Weld REE

Murrin Murrin

Mt Mason Mt Ida

Calingiri Cu Mo Ag Au

Mt Jackson

PERTH

Wallaby

Deep South

Boonanarring

0

NiWest

Sons of Gwalia Mt Bevan

Cadoux Kln Al

Yerecoin

Alumina refinery Ammonium nitrate Cement and lime Chlor alkali Desalination Fused zirconia Kwinana HPA Lithium hydroxide LNG LPG Nickel refinery Nickel sulfate Oil refinery Power plant Sodium cyanide Titanium pigment Zirconia

Mt Morgans

Leonora/Kin LEONORA

Cashmere Downs

!

Cataby

Kwinana–Rockingham

Windarra

King of the Hills

Lanfranchi Miitel Mariners

Bald Hill Li Ta

Polar Bear Pioneer Dome Li Cs Blue Vein – Mt Holland

Earl Grey Li

Mt Thirsty Lake Johnston

Flat Rock wind New Morning

Flying Fox Spotted Quoll

!

NORSEMAN

Mt Henry Winter 2020 WA WORKS 63

News Bites

Digging in We unearth the best tender awards, project progress and significant announcements over the last quarter

April

Get on board Bayswater

Another Pilbara project for Kerman Kerman has won its second role on a Rio Tinto Pilbara construction site in a couple of months, this time to build an automated iron-ore sample processing laboratory at Koodaideri.

The Perth family-owned outfit says it was awarded a “significant” contract by New Zealand’s Scott Technology, which is supplying the automated laboratory and equipment for the new mine.

Technip wins “significant” Woodside job UK-based TechnipFMC will help Woodside execute its latest North West Shelf satellite project, Greater Western Flank Phase 3, after winning a contract worth up to US$250 million ($390m).

The company says it won a “significant” integrated engineering, procurement, construction and installation contract for the Lambert Deep and Phase 3 of the Greater Western Flank fields.

Subcontractors have a chance to find early work on the $253 million Bayswater Station project after the State Government announced the Acciona-led Evolve Bayswater Alliance as its preferred proponent.

Transport Minister Rita Saffioti says Evolve — an alliance headed by Acciona’s Coleman Rail — will build the new railway station, surrounding precinct works and the new platforms and rail infrastructure to support the Forrestfield-Airport Link and a connection with the Morley-Ellenbrook Line. The project will support 350 jobs.

Ground-breaking milestone

Waste-to-energy ploughs ahead The COVID-19 upheavals didn’t slow Perth’s second commercial waste-to-energy project, with initial site works underway and concrete due to be poured by mid-year.

Site-clearing activity began for the $511 million East Rockingham project was given the go-ahead in December. John Laing, Masdar, Acciona and Hitachi Zosen Inova (HZI) will own the plant that will be built by Acciona and HZI, the joint engineering, procurement and construction contractor.

64 WA WORKS Winter 2020

The State Government hailed a milestone for the $1.86 billion Forrestfield-Airport Link project after tunnel-boring machine Sandy broke through at the Bayswater dive structure on April 20.

Sandy’s arrival at Bayswater completed 16 kilometres of tunnelling — twin-bored tunnels each 8km long.

Two-horse field for $1b rail contract The battle to win the State Government contract for the $1 billion Morley-Ellenbrook rail construction project has been narrowed to two big consortia.

Following the recent request for proposal, Ellenbrook Alliance (CPB Contractors and Downer EDI) and MELconnx Consortium (Laing O’Rourke) will progress to the competitive bid phase.

May RFP for Lakelands Station Construction is tipped to start on the new Lakelands railway station near Mandurah early next year, after the Federal Government agreed to fund 80 per cent of the project.

The State Government has invited contractors to respond to a Request for Proposal (RFP) process, which will lead to design and construction contract for the new station, including a bus interchange and car park.

Pindan continues East Coast expansion

Hancock plans second Atlas iron ore mine Gina Rinehart’s Hancock Prospecting is seeking approvals to build a second satellite mine in the Pilbara under its Atlas Iron banner.

Atlas told the Environmental Protection Authority that it hoped to secure key environmental and mining approvals by the third quarter for its Miralga Creek project near Marble Bar, to enable site construction to start early next year.

Pindan has been awarded two new contracts in NSW, including a $13.5 million contract to build an office and storage facility in Belmont for Green Capital Belmont Trust, which encompasses the construction of four industrial buildings on two sites.

Pindan Business Development Manager James Allingame said the group also won a $6.4m job for Winim Developments to design and construct the Otto Apartments in Cremorne

NRW, Georgiou in running for freeway extension Local civil construction icons NRW Holdings and Georgiou Group are pitted against each other in a battle to win the $215 million Mitchell Freeway extension Alkimos.

The locals are in the two opposing consortia shortlisted to kick start the extension from Hester Avenue in Clarkson to Romeo Road. NRW is partnered with WBHO, while Georgiou is sided with BMD Construction.

FEED competition for Dorado oil Santos and Canarvon Petroleum hope to award a front-end engineering design (FEED) contract for their US$2.2 billion ($3.4b) Dorado oil project in the Pilbara “later this calendar year”.

This will follow a design competition between “three leading contractors” for the floating production storage and offtake (FPSO) vessel.

Green milestone for gold mine Decmil on board Bayswater Decmil confirmed it will play a role in the $253 million Bayswater Station project that will be delivered by the Acciona-led Evolve Bayswater Alliance.

The Perth engineer’s component of the new railway station will be worth a minimum of $25 million, with work expected to continue into the 2022 financial year, it said.

One of WA’s biggest gold mines is securing 70 per cent of its power from renewable energy during favourable weather after the installation of a $112 million hybrid system.

South Africa’s Gold Fields said power producer EDL recently completed construction of the 56MW system at the Agnew mine near Leinster in the Murchison.

Winter 2020 WA WORKS 65

News Bites

Federal tick for Morley-Ellenbrook The State Government’s plan to build a $1 billion railway linking the metropolitan rail network to the north eastern suburb of Ellenbrook received a shot-in-the-arm from the Federal Government’s Infrastructure Australia (IA).

After considering a business case from the McGowan Government, IA included the Morley Ellenbrook Line (MEL) as a priority project.

PS Structures clinches Mandurah station Balcatta-based PS Structures is the preferred proponent to build a multi storey car park, increasing capacity at Mandurah Station by about 700 bays, according to the State and Federal governments.

The $32 million project will be built on the footprint of the existing northern car park and increase overall parking capacity at the station to about 1800 bays.

Major status for Pilbara potash hopeful The Federal Government wants to smooth the waters for potash hopeful Agrimin after granting major project status to its remote Mackay venture in the East Pilbara.

Located near the town of Kiwirrkurra near the Northern Territory border, Agrimin aims to produce sulphate of potash fertiliser from large salt lakes. The company was due to complete a feasibility study by the end of June.

Civmec loads up on resources Civmec capped off a fruitful first quarter with the Henderson-based outfit winning new contracts with Roy Hill, Woodside and Alcoa, resulting in a “robust” order book of $767 million at March 31.

The company secured several run-of-mine packages from Roy Hill; the Larego conveyor package from Alcoa, and a contract from Woodside for a Pluto LNG module.

EPA tick for renewables hub

GR shines light on Timor Sea win GR Engineering has secured a $32 million Federal Government contract to continue maintaining the Northern Endeavour floating production storage and offtake vessel in the Timor Sea. The short-term deal was awarded to GR’s Upstream Production Solutions subsidiary to provide operations and maintenance to the FPSO and associated infrastructure.

66 WA WORKS Winter 2020

A proposal from the Macquariebacked Asian Renewable Energy Hub consortium to build a $22 billion wind and solar energy project in the Pilbara received a tick from the Environmental Protection Authority (EPA) but its development is still at least half-adecade away.

A final investment decision for the construction of up to 1743 wind turbines, solar panels, above and below ground transmission cables and four subsea power cables is due in 2025.

Georgiou seeks interest in Tonkin Gap Perth-based Georgiou sought expressions of interest from suppliers interested in working on its latest road job — the Tonkin Gap project — expected to be worth up to $500 million once Metronet railway enabling works are included in the final contract.

The Tonkin Gap Alliance — Georgiou, BMD, WA Limestone, BG&E and GHD — was named as the preferred proponent to work with Main Roads in delivering the road project, which is designed to fix a major bottleneck on Tonkin Highway between Morley and Redcliffe.

News Bites

June

Engineer’s big three iron ore wins Monadelphous shored up work with the state’s three biggest iron ore miners as part of new contract wins worth $150 million.

The wins included a BHP contract related to dewatering at Mining Area C; a deal with Rio Tinto for maintenance services and minor projects on its Pilbara marine infrastructure; and extensions of two fixed plant maintenance and shutdown crane services contracts with Fortescue.

In addition, the contractor was appointed to BHP’s WAIO site engineering panel for a further term of two years, to provide civil, structural, mechanical, piping and marine services at BHP’s mine site and port operations.

RFP for Leach Highway interchange P​ rocurement has begun for the Leach Highway and Welshpool Road interchange project, one of 11 big road jobs the State Government is trying to fast track in the wake of the COVID-19 upheavals.

Federal Minister for Population, Cities and Urban Infrastructure Alan Tudge said the $93 million project would improve critical connections to one of Perth’s major industrial areas and bust congestion across the freight network.

Main Roads aims to short-list two or three proponents and award a contract before the end of the year.

Worley extends Alcoa connection Waste-to-hydrogen plant nears go-ahead Construction of a $16.7 million hydrogen plant in Munster could begin in the next few months after Water Corporation agreed to supply sewage biogas to Hazer Group.

Perth-based Hazer says engineering, procurement, and commercial activities required to reach a final investment decision are underway, with a decision expected by mid-2020.

Yara concludes plant rebuild Yara says it is confident of delivering reliable supplies of explosives to Pilbara miners after completing a major rebuild of its technical ammonium nitrate (TAN) plant near Karratha.

The Pilbara TAN recovery project included 50 individual repair scopes.

“We now have a plant which I am confident will deliver a reliable supply of top quality ammonium nitrate to the Pilbara iron ore market,” project director Stewart Thatcher said.

Sydney-based Worley says it won a three-year services contract for Alcoa’s integrated mining, refining and smelting operations, continuing its existing relationship with the alumina and aluminium producer.

Under the contract, Worley will provide engineering and project delivery services for Alcoa’s site-based sustaining capital program of works, including alumina refineries at Wagerup, Pinjarra and Kwinana, Bunbury port terminal, and the Willowdale and Huntley bauxite mines.

Winter 2020 WA WORKS 67

News Bites Elevating rail work BAE Systems frigate milestone The Navy’s HMAS warfare frigate began sea trials off Garden Island after completing an 18-month maintenance upgrade at Henderson.

The second frigate completed under the BAE-managed $1.2b Anzac Midlife Capability Assurance Program recently departed Fleet Base West for the trials. HMAS Anzac, which received upgrades to the platform, communications and phased array radar systems, was joined by sister ship HMAS Arunta, which completed its upgrade last year.

Procurement is expected to start late this year for the next big Metronet project — the removal of as many as six vehicle level crossings on the Armadale railway line, the State Government says.

Up to 2.8 kilometres of elevated rail could be laid along the inner Armadale line to remove crossings at Mint Street, Oats Street, Welshpool Road, William Street and Wharf Street, while New stations are to be built at Carlisle, Oats Street and Beckenham as well as potentially Queens Park.

GR Engineering jumps into Salt Lake Salt Lake Potash has contracted GR Engineering to build the process plant and other infrastructure for its Lake Way project near Wiluna, the latest sign the $264 million potash proposal has legs.

The total value of GR’s contracts amounts to $107m, including an $85m EPC component covering the provision of plant, labour, materials and construction services for the process plant and non-process infrastructure.

Meanwhile, Salt Lake said construction of a permanent 100-person village for Lake Way was completed in April, with an additional 160 rooms recently installed in preparation for construction ramp up.

Densford wins phase one $60m restart plan for Nifty mine Subject to a final feasibility study, Metals X plans to spend up to $60 million next year restarting its shuttered Nifty underground copper mine in the Pilbara as a big open-cut operation.

A scoping study by the company estimated pre-production capital at $40-$60 million, including studies, preproduction drilling, concentrator and infrastructure refurbishment, open pit pre-strip, and commissioning.

Construction of the $125 million extension of Stephenson Avenue will begin in August after local contractor Densford Civil was named as the preferred tenderer for the first phase in Osborne Park.

The first phase, managed by the City of Stirling, will see Stephenson Avenue extended from Scarborough Beach Road to Sarich Court, including new connections to Ellen Stirling Boulevard at Howe Street and Oswald Street.

The second stage, including the connection of the extended road to Mitchell Freeway, is due to begin construction early next year under the management of Main Roads.

Compiled from WA Works digital fortnightly newsletter. Your subscription entitles you to nominate 10 email address to receive the newsletter. Contact waworks@cciwa.com.au to add or update emails.

68 WA WORKS Winter 2020

Echidna Tales A fascinating bush yarn was delivered recently to WA Works’ offices by snail mail, handwritten, no less, by quill pen.

Once the bona fides of The Echidna were established, it was agreed the pointed observations should be shared

W

A Changed World

e animals think you people have done a great job

The retired Possum Servant from Canberra agrees, adding

in containing the coronavirus health scare. Dealing

that the amount of government debt is scary. He makes the point

with the economic crisis may prove to be more

that if you need to provide financial support, which is fair enough,

difficult. We are in a recession due to the shutdown

then you also need to make sure there is something to show for

and we don’t know how bad it will be or how long it will last.

The awkward Turtle summed it up by saying that if you fall into

a hole you go down fast, but climbing out

it. The Seagull says Sydney has a Harbour Bridge because of the Great Depression of the 1930s.

The watchful Dove has noticed a big change in human

takes time. The old Owl has seen it

behaviour. The virus seems to have accelerated changes that

all before and reckons there will be

might have been coming in any case. You can expect the shift to

a bounce in confidence and jobs

on-line shopping and home delivery to continue even after the

as the restrictions are lifted, but

crisis is over. The same applies to working from home and the

things probably won’t get back

growth of part- time work and short- term contracts. And the

to where they were for much longer. This will certainly be the case for exporters, with most other countries having been hit far harder than Australia. The deterioration in relations with the Chinese Panda won’t help either.

Mind you, animals have also been affected. News from Africa is that the Elephants can’t find a face mask that fits.

Closer to home the Dogs are exhausted by all those daytime walks and can’t wait for their owners to go back to work. And the travelling Flamingos are grumpy at having to holiday at home.

cashless society has effectively become a reality.

For now, it is still a year to survive. Sadly, many businesses and the jobs that go with them have already gone. Others will probably employ less people than they did before.

For governments, it is going to be a tough time as they try to unwind what is an incredibly expensive and overlycomplex set of rescue measures. It is hard to take something off people once they get used to having it.

But it is not all bad news. There are signs that Australia might be about to have a sensible look at our economy. And while every interest group might also be trying to get something for themselves, there are wider issues to consider.

The far-sighted Eagle suggests greater self-sufficiency, fixing

The loud-mouthed Kookaburra from the bush reckons at

the east coast energy shortage, raising the status and quality

least the health crisis has given the media Rabbits something

of trade training, adding more value to our mining and farm

else to talk about. Out here we are sick of them writing about

production, getting serious about regional development, and

themselves and interviewing each other.

stopping the wasteful duplication and overlap between the

The more serious and money-smart Emu is worried about his grand chicks and their generation. He thinks it will be harder for them to get a job or to buy a house. We need to be careful not to bury them in debt as we try to save ourselves.

different levels of government. We need to be smarter and trimmer than we have been. This is now a changed world.

THE ECHIDNA, JUNE 2020

Winter 2020 WA WORKS 69

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