SU
Supply Chain and Major Project News
Pr Maj BS Lif oje or CR t O cts IB ut ER ON LY
Spring 2020
Automation Iron ore leads the way
Infrastructure
Exclusive
Resources
John Langoulant on project priorities
First steps in making batteries
New gold boom looms
News, Profiles, Major Projects List, Opinion and more Spring 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 Spring 2020
Contents
Cover Story
13
An autonomous, haulage truck at Fortescue’s Pilbara operations
The robot revolution evolves
Opinion
Spring 2020
CEO’s Desk
5
Economic outlook
8
A day in the life of Tom Rudas
10
On the ground - Waitsia gas deal
11
Special Feature: Riding the iron ore cycle
12
The robot revolution evolves
13
Fortescue’s hive of robotic activity
14
Bird’s eye view of automation
16
BHP’s remote fixes
19
Augmented architecture
20
New gold boom looms
22
Championing Indigenous business
26
Rita Saffioti – Peak spending for infrastructure
9
Apprentice numbers an economic handbrake
29
Andrew Naude – Engineering the gold boom
28
Charging up the battery value chain
30
Pascal Everingham/Warren Pearce – Lithium
33
Big wind farms go live
34
Louise Thomas – Spurring innovation
58
The race to supply hydrogen
36
Pilbara’s diversity drive
38
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
ICNWA update - Fortescue power
42
A more salubrious Subi
44
Kwinana is a port of call
47
Breaking Bureaucracy: Langoulant’s vision
48
The South West road to jobs
50
Jobs boost from AMC upgrades
54
Eyes on Exmouth space job
56
Sign up for Defence work
59
Digging in
60
Major resource project maps
66
The echidna
68
Spring 2020 WA WORKS 3
Welcome
Editor’s Letter Iron ore and gold humming
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elcome to the spring edition of WA Works, a magazine with a steely focus on major projects and the supply chain. And as far as major projects go, the iron ore sector is currently the biggest game in town as BHP, Rio Tinto and Fortescue dig deep into their combined $17 billion construction boom in the Pilbara. As noted by CCIWA Chief Economist Aaron Morey in this issue, the resources building binge is having a major impact on the State’s finances and jobs market as WA continues to grapple with the impact of COVID-19. For instance, a growth spurt in WA’s domestic economy for the quarter ended March 31 was due to a significant amount of mining investment in projects such as Rio Tinto’s Koodaideri and Western Turner Syncline, Fortescue’s Eliwana and BHP’s South Flank. And the Federal Government recently confirmed that iron ore exports from Australia — nearly all of them from WA mines — hit $102 billion in 2019-20, contributing greatly to record commodity exports of $287b. Iron ore is also contributing to the State’s innovation as both an early adapter and creator of impactful technology, as the industry’s relentless quest for efficiency and product quality continues. Our special mine automation feature is centred on iron ore, but also peeks at new augmented reality hardware making a big impact in architecture and construction.
Go for gold Gold mining, another eager adapter of automation and big data, has been rejuvenated by record high bullion prices and heightened interest from financiers and investors. The latest WA Works major projects list contains three new gold projects in various stages of development, while our features also identify several projects waiting in the wings. Moreover, major existing mines such as the Kalgoorlie Super Pit are preparing the foundation for a huge production increase. In fact, the Federal Government is forecasting Australia to become the world’s largest gold producer in 2021-22. Our energy section, meanwhile, is again dominated by renewables as big investment funds continue to agitate for better environmental, social and governance (ESG) outcomes. Amid the push for more electricity produced from solar and wind installations, a factor sometimes overlooked is the ongoing requirement for bigger and better batteries to store the green energy until it is needed by consumers. “Charging up the value chain” addresses these issues and reveals how steps are being taken to enable WA companies to compete in a race to capture more value from the fast-growing demand for lithium batteries. There is plenty more to enjoy, including an update of the WA hydrogen map with accompanying feature by Claire Tyrrell; an exclusive interview with Infrastructure WA Chairman John Langoulant; and the latest defence industry developments.
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 Spring 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 September 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
The Da Vinci code for our post-COVID economy As JobKeeper winds downs, WA’s economy and businesses need policy that fosters innovation, writes Chris Rodwell
B
ack in 1472, the city of Florence, inhabited by the polymath Leonardo da Vinci and many other luminaries, was the envy of the world. In his biography on Leonardo, Walter Isaacson relates the established view that Florence could lay claim to seven fundamental things: complete liberty; a large, rich and elegantly-dressed population; a river; rulership over a wide land, towns and people; a university; masters in every art; and banks and business agents all over the world. Some benchmarks stand the test of time. And by any measure, despite recent tightening of our liberties to deal with COVID-19, Perth (and Western Australia) could make a decent claim on most of these fundamentals — barring summer standards of dress. There is no room for complacency, however. Recent good fortune could easily turn bad if we fail to take the opportunity to forge a stronger city and a State more deeply engaged with the world, propelled on a deepened commitment to ideas and innovation.
Transition times WA is nearing another transition in the march back to normalcy, when we will once again be an economy that stands on its own two feet. By the end of this month, more than half of the businesses in WA receiving JobKeeper expect to cease qualifying. By March next year, roughly $10 billion from Canberra will no longer be washing through the WA economy. It will be revealing to see how many voices continue to call for WA to “go it alone” when that reality hits. This reality should be foremost in our minds right now, whether it be our plan for the CBD, for our manufacturers or the broader economy. We need the best possible settings to foster stronger businesses and to support innovation. Governments around the world have become more focused on cementing sovereign manufacturing capability. It is appropriate that procurement policies should reflect supply risk attached to unforeseen events like pandemics. However, this is not a reason to
turn the clock back on industry policy. In days gone by, we spent billions of dollars on direct industry assistance, absent of any evidence that this improves the competitiveness, growth or innovation of these industries. Indeed, we unravelled this approach for the very reason that it makes it harder for other industries by draining skilled workers away from what might otherwise have been more competitive endeavours. So it’s critical that we find ways to leverage WA’s best advantage and opportunities.
Technology to the fore Our businesses and community have become more literate in online and digital communication technologies, which are advancing and growing more user-friendly at a profound rate. The present technological leap is referred to as ‘Industry 4.0’, encompassing Computer Numerical Control (CNC), pre-programmed software to guide the movement of factory equipment and tools, laser beam welding and 3D printing. These technologies could form the base of new industries in WA. We should be cultivating the take-up of these new technologies, to provide every opportunity for emerging industries to find their feet and grow. Any support can take the form of a ‘nudge’ rather than a handout. Since new technology doesn’t always fit neatly into existing frameworks, that should include giving new technologies a temporary reprieve from regulation while businesses find a place for it in the market. Piloting “regulatory sandboxes,” would remove a barrier to commercialising new technologies and should form part of an explicit government strategy to foster innovation. The German government — always farsighted when it comes to manufacturing — has facilitated networking and knowledge-sharing within businesses since 2011. Israel, a country of just nine million people, now attracts more venture capital per person than any place on earth. It has been transformed by its pursuit of a knowledge-based, technologically-advanced
economy, and the cultivation of start-ups and entrepreneurship, including through tax incentives. So much so, that Tel Aviv tied with Los Angeles at 6th place in the Global Startup Ecosystem Ranking 2020. Sydney ranked 26th and Perth did not rate a mention. Indeed, Perth lags comparable cities on measures of innovation, filing half as many patents last year as Brisbane and Adelaide. We were 156th in the 2Thinknow Innovation Index, while Sydney and Melbourne were 18th and 33rd. Apart from our formidable resources sector, business investment is weak, set to contract in WA by 4.5 per cent in 2020-21. This is not a critique, but rather a call to arms.
Global gaze With global confidence rattled, WA also has a chance to seize the initiative in the contest for investment, by defining a path back into global markets post-COVID. This should mean sector-level initiatives with regional partners like China, Singapore, India and Vietnam, but it should include traditional markets like the United States, mainland Europe, and the UK. Australia’s successful management of COVID-19 positions us to steal the march on competitors, whether as an attractive and safe destination for foreign students to study, or to build relationships to attract investment. CCIWA is eager to partner with the State Government in advancing an ‘Investment Portfolio Deal Book’, to proactively draw investors to key opportunities in WA. WA’s challenges will require an attitudinal shift, away from the closed-off mindset this pandemic has stoked. This must be led by the business community. From Da Vinci’s checklist, our “liberty” is incomplete so long as borders separate us from the rest of our nation. WA has forged our own prosperity, by winning trade and foreign investment. Soon enough, we will have to unshackle our minds from the current constraints and reassert our State as an open, outward-looking economy. And the business community has a responsibility to lead.
Spring 2020 WA WORKS 5
6 WA WORKS Spring 2020
The Big Picture Catching the breeze: construction of Alinta Energy’s $400 million Yandin Wind Farm near Dandaragan in the Mid West. At full capacity Yandin’s 51 wind turbines will produce up to 214 MW for the grid. Photograph: Jason Thomas Spring 2020 WA WORKS 7
Economic Outlook
Aaron Morey
The true state of the WA economy Claims that the WA economy is still growing amid the pandemic restrictions are too serious not to call out, says Aaron Morey
A
s we navigate a path out of the wreckage wrought by COVID-19, it is vital we have a clear and accurate picture of the state of Western Australia’s economy. The recently-released national accounts data provides the most recent health check on our economic fortunes. Like a Picasso, the data can be interpreted in a number of ways. One of the measures used to report on the health of Western Australia’s domestic economy is the ‘annual average’ growth rate. According to this measure, the size of our economy was 1.1 per cent larger in 2019-20 compared to the previous financial year. Using this growth rate, it is an easy and fair conclusion that the WA economy was growing prior to the COVID-19 pandemic hitting. No quibble there. Growth in 2019-20 was driven by government spending on infrastructure and payments, as well as a significant amount of mining investment in the March quarter. That investment occurred in projects like Rio Tinto’s Koodaideri and Western
Turner Syncline, Fortescue’s Eliwana and BHP’s South Flank. At the same time, bushfires at the beginning of the year weighed on the performance of some other states. What is a concern, however, are claims that the recent data shows the Western Australian economy is growing — as in, right now. It is not. Even in the best of times, annual average growth measures provide a poor indication of the current state of an economy. In the current volatile and dynamic environment generated by COVID-19, these measures are more out of date than a Nokia 6210. Why? Because annual average growth measures use old data, comparing the average size of the economy over the previous 12 months, with the average size of the economy in the 12 months before that. So the 2019-20 growth rate of 1.1 per cent reflects how much bigger our economy was in 2019-20, compared to its size in 2018-19. As such, the data series for this measure begins 26 months ago (July 2018). Claiming the economy is currently growing
using this measure is somewhat akin to saying the Dockers are in good form because they made the 2013 Grand Final. Annual average growth measures do have a role — mainly in budget forecasting due to their longer-term focus, and the fact they are easier to predict due to being less volatile. For an accurate read on the current state of the economy, the better approach is to compare the most recent quarter of data with either the prior quarter (quarterly growth rate), or the corresponding quarter last year (year-on-year growth rate). For the most recent data, the quarterly growth rate would involve comparing the June 2020 quarter with the March 2020 quarter, while the year-on-year growth rate would involve comparing the June 2020 quarter with the June 2019 quarter. As you can see in the chart, these more contemporary measures tell a vastly different story. Compared to the same quarter last year, our economy has contracted by 4 per cent. Compared to the March quarter, it is down 6 per cent. After that contraction, our domestic economy is now back to the same size it was in 2010. Economic data can be over-analysed, and some of the debates over some of the more obscure measures are out of touch and irrelevant. But claims that suggest our economy is currently growing are far too serious not to call out, especially at a time when, for many of us, we face the most serious economic challenge of our lifetime. The Chamber of Commerce and Industry WA will continue to provide the business and broader community a clear-eyed assessment of the true state of our economy. Aaron Morey is CCIWA’s Chief Economist
8 WA WORKS Spring 2020
Minister’s Memo
Peak spending for rail and road works The State Government aims to boost local employment and training opportunities as its transport infrastructure spending nears record levels, writes Rita Saffioti
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estern Australia has never had a transport infrastructure boom of this scale. Projects that used to be distant hopes — train lines, underground rail, major road projects, level crossing removals, bridges, boat harbours and cycling infrastructure — are now either approaching completion, under construction or starting soon. Many of these projects, with already-ambitious timelines, are being streamlined further as we band together to bolster our great state’s economic response to the pandemic. But what does this mean for local businesses and subcontractors? The sheer amount of transport infrastructure expenditure is set to peak at record levels in coming years and there will be many opportunities for local businesses to leverage. Over the next two years we will be spending more than $260 million every month on transport infrastructure all across Western Australia.
To put that into perspective, five years ago the former State Government was spending about $150 million on transport infrastructure per month. We are now investing over 70 per cent more on our transport network each month.
Rita Saffioti
This new office has pooled staff from Main Roads and the Public Transport Authority in the same location at the former Sunday Times building on Stirling Street. This office has pooled a highly-adept team of construction contract experts and project directors. The new office is responsible for delivering the majority of transport projects over the value of $100 million. We also simplified tendering processes for minor projects and are bringing forward hundreds of millions of dollars of new works. The opportunities that will flow on to local businesses from this large-sale investment are already being realised, while the training opportunities are also ramping up. Metronet is well and truly underway with construction progressing on the Airport Link, Thornlie-Cockburn Link, Yanchep Rail Extension, Denny Avenue level crossing removal, New Bayswater Station and Mandurah multistorey car park, while further projects are also starting soon. Meanwhile the new Bellevue Railcar Facility is being built, which will provide ongoing training and job opportunities across the rail industry and help leverage WA’s rail expertise. When it comes to roads, we have also brought forward more than $2 billion worth of road projects. Procurement for 11 major road projects have been fast tracked across the State, some brought forward as early as 18 months, and are estimated to create more than 13,000 jobs. For example, we announced the preferred contractor for Leach Highway and Welshpool Road, with final negotiations now underway with local company Georgiou. Works will also start soon on the Albany Ring Road — several months earlier than originally planned. While we must and will remain focused on not
“Projects that used to be distant hopes are now either approaching completion, under construction or starting soon” To help coordinate the infrastructure investment and development, we have made some structural changes and have created a new Office of Major Transport Infrastructure Delivery. The aim of this office is to deliver many of our major job-creating projects while also working closely with industry to achieve better infrastructure outcomes.
allowing community spread of the virus, we have very much turned to economic recovery. Across Government, we have been focussed on ensuring we have the right levers to encourage economic activity and job creation. Rita Saffioti is the Minister for Transport and Planning
Spring 2020 WA WORKS 9
On the ground
Waste management is a gas A day in the life of Tom Rudas, CEO and Managing Director of M8 Sustainable
I
started in waste management in 1996 after finishing university and have never looked back. I’ve worked in the private sector, in small waste businesses and major waste companies as well as in local government. I was involved early in recycling and composting of organic waste in one of the first projects of its kind in Australia and have invented and patented recycling technology. Now I’m the CEO of M8 Sustainable, which has only been trading actively since January. We now employ 14 permanent and contract staff. Our head office adjoins the Maddington site, and our boardroom has cameras that oversee its operations. From my office window I can see customers coming to Maddington either to drop off waste or pick up recycled products. My visits to the Gingin site, north of Perth, are typically weekly when construction is most active. M8 is in the process of developing a new landfill facility at Gingin, designed to process 150,000 tonnes per annum of household municipal solid waste and restaurant waste. There is increasing demand for a tier-one landfill service — a current shortage of facilities in Perth’s northern corridor is seeing waste being diverted to distant landfills. Gingin is designed as a bioreactor landfill to accelerate the biological degradation of the organic fraction of waste to maximise biogas production, which can be utilised for renewable energy production. In addition, currently non-recyclable plastics can be encapsulated within the landfill until technologies and/or markets are developed to recycle them, unlike in a waste-to-energy facility where these plastics are burned and
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“A current shortage of facilities in Perth’s northern corridor is seeing waste being diverted to distant landfills” the CO2 emitted, contributing to greenhouse gas emissions. We are interested in looking at opportunities to go further downstream in waste-to-energy, as our major shareholder, Thai-based SBANG Group, has built and/or owns 15 biomass-toenergy facilities in South East Asia. Gingin would be ideally placed to accommodate a northern corridor biomass-toenergy facility, although on a more manageable scale than the two plants currently being built at Rockingham and Kwinana. The site also has power lines (Perth to Geraldton) running through it and, as such, interconnection to the grid would be relatively simple. As we are still a growing company, I’m involved in all aspects of the business, working with our team on a day-to-day basis on business development, tenders, customer interactions and site operations, as well as developing and implementing a broader strategy for growth. During the COVID-19 lockdown phase in April, we sent most of our office staff to work from
home — all board meetings were held via Zoom. I remained in the office as the site was still open. There was certainly a drop off in waste volumes during the most active stages, but it has since recovered, and the construction and demolition sector of waste management is doing quite well. The next six months appears to be quite favourable in terms of the customer feedback around project activity, as these projects drive the waste volumes coming to our site. Beyond that it’s not as clear, so we have begun diversifying the waste types that we are processing — to expand the services that we can offer customers beyond just construction and demolition waste. Once sorted, demolition waste is turned into road base. Unfortunately, it’s not sold to Main Roads, as government policy around recycling is not matched by policy to actively encourage Main Roads to use recycled products. This is one of the main issues this industry faces. WA is still far behind the rest of Australia in this respect.
On the ground
200 jobs to flow from Waitsia gas export deal
T
he delays to Mitsui’s proposed $500 million Waitsia gas plant expansion look to be over, after the Japanese company was given the green light to export half of the project’s gas reserves as LNG from the Woodside-operated North West Shelf JV. The McGowan Government’s decision to exclude Waitsia from a “tightened” domestic gas policy, aimed at stopping local gas being shipped interstate or offshore, is expected to generate 200 Mid West construction jobs. The onshore project, near Dongara, was originally tipped to reach a final investment decision (FID) late last year. In January, WA Works was the first to reveal that FID would be delayed because of Mitsui’s ongoing negotiations with the State Government over exporting some of Waitsia’s gas via LNG through the North West Shelf. The Kerry Stokes-backed Beach Energy, the other 50 per cent owner of Waitsia, is now forecasting FID for the Stage 2 development by December. It said the Waitsia JV was “closing in” on a deal that would see 250 TJ/day of processing capacity developed to supply gas and produce LNG, while also committing to ongoing supply to the WA domestic market. Waitsia Stage Two has enough capacity to generate about 1.5 million tonnes per annum of LNG.
Subject to the finalisation of various agreements and approvals, production is estimated to begin in late calendar 2023, the company said. Beach said a large diameter (280 TJ/d) connection to the Australia Gas Infrastructure Group-owned Dampier to Bunbury natural gas pipeline is already in place, while transportation arrangements with AGIG are being finalised. The JV also was concluding arrangements with the WA Government to support both the domestic gas commitment and export of 50 per cent of project reserves via the NWS. Beach added that a final engineering, procurement and construction bid for a 250 TJ/d gas processing facility is due in September. Perth-based Clough was named as the project’s EPC contractor early this year.
McGowan defends decision Premier Mark McGowan defended the unusual exclusion of one project from the State Government’s updated gas reservation policy. “The Waitsia gas project Stage 2 in the Mid-West is an exception to the policy,” he said. “Once sanctioned, it will provide urgently needed jobs, royalties and economic stimulus for the region and the State.” The State Government had given in-principle support to allow Waitsia to fill available capacity at the Karratha Gas Plant (KGP) and
export some of its gas as LNG for a “short” time, he added. This arrangement would help ensure the Waitsia Stage 2 proceeded to construction. The decision could provide a significant economic boost to the Mid West region, which is now facing the end of a three-year, $1.1 billion boom in the construction of new wind farms. APA Group’s $315m Badgingarra project was finished in 2018, while Bright Energy Investment’s $500m Warradarge and Alinta Energy’s $400m Yandin projects are both expected to be completed by the end of the year.
Woodside welcomes tolling deal Woodside, meanwhile, said it had agreed “key principles” with the NWS participants for processing third-party gas, both from its Pluto fields and Mitsui’s Waitsia Stage 2. The agreements advance the NWS project’s plans to toll third-party gas at the KGP as more processing capacity becomes available this decade. Gas produced from the offshore Pluto fields would be transported to the NWS project facilities through the proposed Pluto-KGP Interconnector, which is targeting ready for start-up in 2022. The agreement with Mitsui and Beach, meanwhile, contemplates the tolling of gas from Waitsia Stage 2 from 2023.
Laing gets tick for Morley-Ellenbrook rail A Laing O’Rourke-led consortium will build the $1 billion Morley-Ellenbrook railway line after being named as the State Government’s preferred proponent. Laing’s MELconnx consortium won the right to design and construct the 21 kilometre rail line along with new stations to be built at Ellenbrook, Whiteman Park, Malaga, Noranda and Morley. Spurring off the Midland Line at Bayswater Station, the line will run up the middle of Tonkin Highway, through land north of Marshall Road, along Drumpellier Drive and finish in the Ellenbrook town centre. One of the McGowan Government’s key pre-election promises in 2017, the project is designed to connect Perth’s growing north-eastern suburbs with the metropolitan rail network. It shapes as an iconic infrastructure project for Laing, which says it will use a similar procurement strategy to the one used on its Perth Stadium railway station build in 2016-17. 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. Laing has listed the project on the ICN Gateway website and is requesting registrations from interested businesses. The project is joint funded by the State and Federal Governments, with the latter confirming it has committed $500 million.
Spring 2020 WA WORKS 11
Special Feature
Using technology to ride the iron ore cycle
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he continued automation of our iron ore mines is showing no sign of slowing, and that’s a good thing for WA’s latest $100 billion-a-year export industry. Rio Tinto, BHP, Fortescue and Roy Hill can’t rely on US$120-a-tonne iron ore prices to stick around forever, so continued efficiency and productivity enhancements will be needed to retain WA’s competitive edge in the global market. Iron ore is very much a volume game, so even small, incremental cuts in production costs — some of them generated by technology improvements — can translate to much fatter profits and a stronger industry. Of course, that doesn’t mean technology is a panacea. As Fortescue Chief Operating Officer Greg Lilleyman says in our special feature: “While autonomous technology is being applied to more assets and processes, we can’t lose sight of the fact that automating a poorly-run mine just leaves you with a poorly-run automated mine.” It is an appropriate message for an industry that, while enjoying boom times, faces several challenges. One of those is trying to figure out the ramifications of the current COVID-19 pandemic on the global economy. The disruption to global supply chains has been well documented, making it increasingly important for the Pilbara miners to source more of their materials, skills and consumables locally. This is happening already in some processes, with BHP using off-the-shelf VR technology to enable critical Pilbara equipment repairs to be
12 WA WORKS Spring 2020
done quickly by onsite workers, rather than flying in experts from Perth, interstate or overseas. Another bogeyman is the looming presence of a giant high-grade iron ore development in West Africa. In June, a Chinese consortium committed to develop the jungle-crossing rail infrastructure and an 80 million tonnes per annum iron ore mine on part of the Simandou deposit in Guinea, which could be starting up as early as 2026. Rio Tinto, meanwhile, needs to decide whether to exit its share of the Simandou
improve safety will become mainstream. Rio Tinto, the biggest WA producer, recently celebrated the 10th anniversary of its operations centre (OC) at Perth airport. Our story reveals the OC has progressed from controlling big pieces of equipment to increasing productivity and understanding algorithms produced by super computers — knowledge that will be especially important for Rio’s new Koodaideri mine. Meanwhile, the other big miners have built their own OCs and, like Rio, are continuing to automate. Fortescue recently opened its ‘Hive’ in East Perth and our Q&A with Greg Lilleyman digs into the detail of FMG’s technology approach as it prepares to bring online the new Eliwana and Iron Bridge mines. We offer a bird’s eye view of Roy Hill’s current project to automate its truck fleet using open software technology, with the help of Swedish service provider Epiroc. Roy Hill believes the program will be a game changer, as the software can be retro-fitted to all makes and models of mining fleet. Lastly, we venture beyond state borders and iron ore to reveal how hybrid virtual reality technologies are starting to make waves in the architectural design and construction industries, according to University of South Australia Professor in Architecture Ning Gu.
“We can’t lose sight of the fact that automating a poorly-run mine just leaves you with a poorly-run automated mine” deposit (Blocks 3 and 4), or develop it as a high-quality iron ore project. Investment bank Morgan Stanley notes that China has plenty of incentive to push ahead with its part of Simandou, even at a forecast capital cost of $US15b, as it would reduce the country’s heavy reliance on Australian supplies and help push iron ore prices lower — potentially saving China's steel industry US$7b ($9.5b) per year. So, with more offshore competition and increased global production (Brazil is also starting to reboot shipments after COVID-19 disruptions) likely, using automation to boost profits and
Special Feature
Rio Tinto’s interim iron ore CEO Ivan Vella at the company’s operations centre at Perth Airport
The robotics race evolves A 10-year anniversary for Rio Tinto’s operations centre has shone a light on how far the robot revolution has evolved in WA, writes Stephen Bell
I
t is hard to pinpoint when the automation of the massive Pilbara iron ore industry ‘began’. After all, technology has been steadily evolving since iron ore was first shipped out of WA in the mid-1960s. Nowadays there are four big competitors — Rio Tinto, BHP, Fortescue and Roy Hill — and each can highlight milestones in the journey that has enabled people to operate and monitor trains, trucks, drilling machines and other equipment from comfortable Perth offices. And there has always been a bit of one-upmanship in their various claims and counter-claims about technology. Fortescue was the “first mining operation in Western Australia to control a railway from a remote location when we unveiled our Train Control Centre in Perth in 2009”, according to Chairman Andrew Forrest. Since those pioneering times, Fortescue has integrated all its equipment and processes into a ‘Hive’ in its East Perth headquarters (see ‘A hive of robotic activity’ page 14). Rio, meanwhile, had an early operations centre running in 2007 to coordinate automated truck trials. But the official launch of Rio’s Operations Centre (OC) at Perth Airport on June 28, 2010 was probably the first manifestation of a robotic future that is still growing and evolving a decade later. The OC brought together for the first time hundreds of controllers, schedulers and production system team members into one large ‘never centre’ for the company’s network of mines, rail and ports. BHP, Rio’s traditional rival, launched its own
Integrated Remote Operations Centre (IROC) in 2013 at its Brookfield Place office tower. Fortescue and Roy Hill followed suit in the years to come. Early fears that automating the mining process would make humans extinct on mine sites proved misplaced, though haul truck drivers are a lot scarcer these days. However, many have been retrained and moved to other parts of their organisations.
“Never about job losses” As Rio Tinto Iron Ore’s new interim CEO Ivan Vella pointed out last year at the official launch of the US$940 million AutoHaul train automation project, Rio hadn’t made any drivers of the 2.4 kilometre-long robotic trains redundant because of the changeover. Their skills were needed to investigate and fix train stoppage issues, help operate the maintenance yard, and pilot trains on a small part of the rail network that doesn’t use AutoHaul, he said. “This project was never about job losses or cost savings in labour,” Vella said. “It was all about the efficiency of our network.”
And that efficiency boost is not small beer. Rio believes the OC has added $100m per year worth of value to the business, which equates to $1 billion over the last 10 years since its commissioning. The centre continues to run around the clock, 365 days a year, fine-tuning the system and allowing the company to make safer, and faster, on-the-spot decisions. More recently, its importance was heightened as Rio Tinto relied on the OC for continued operations and shipments of iron ore throughout the early pandemic lockdowns. Indeed, the OC led the business in introducing COVID-19 controls as early as February, including strict physical separation rules between the control centre and the rest of the operations centre building on George Wiencke Drive. Rio’s workforce at the OC were regularly subject to rapid virus screening, including finger-prick blood samples and temperature checks, to help prevent outbreaks. To keep the almost 400 people who run the control centre safe, the crews were split into three rotating teams — a strategy which essentially gave Rio access to an extra 100 people at any given time if it was required to quarantine a whole crew, or parts of a crew. Over the past 10 years, the OC has progressed from a focus on big pieces of equipment to increasing productivity and understanding algorithms produced by super computers.
Quirky facts about an iron ore nerve centre External interest in Rio Tinto’s OC has grown exponentially since commissioning, with 770 groups touring the control centre in 2019, including representatives from government and a former astronaut from NASA. As of June 2020, Rio’s robotic trains — monitored from the OC in Perth — had travelled more than 12 million kilometres — equivalent to 15 trips to the moon and back. Speaking of the moon, the remote operations technology pioneered in WA is now being adapted by NASA as it prepares to land astronauts on the lunar South Pole in 2024.
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A hive of robotic activity Some people at Fortescue Metals Group must be avid readers of science fiction in dubbing the company’s new and expanded remote operations centre at East Perth the Fortescue Hive, writes Stephen Bell
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he space on level 2 of the Fortescue Centre encompasses the company’s application of AI and robotics to an enormous mining supply chain, so calling it a “hive” makes perfect sense. That’s because it recalls SF’s ‘hive mind’ trope — a “unified consciousness or intelligence formed by a number of alien individuals, the resulting consciousness typically exerting control over its constituent members”, according to Oxford Languages. What better name, then, for a room full of human intelligences and machine algorithms monitoring and controlling trucks and other heavy equipment 1300 kilometres away? The purpose-built facility includes Fortescue’s planning, operations and mine control teams, together with port, rail, shipping and marketing.
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The refurbished space allows 330 people to work together, 24 hours a day, seven days a week. CEO Elizabeth Gaines said the Hive links Fortescue’s core exploration, metallurgical, mining and marketing expertise to deliver value to its customers, shareholders and the community. “Importantly, the Fortescue Hive will underpin our future use of technology including artificial intelligence and robotics, and will expand to include the generation and integrated distribution network for the Pilbara Energy Connect, our hybrid solar-gas power solution,” Gaines said.
Lilleyman’s Hive To delve more into this hive mind, WA Works fired off several questions to Greg Lilleyman, Chief Operating Office of Fortescue.
Remotely-monitored trucks and other equipment are now common, while Rio Tinto has automated trains. What technology will be commonplace at the end of the decade? Greg: The world-leading technology deployed in the mining industry in WA is the envy of many. Fortescue was the first company in the world to deploy CAT autonomous technology on a commercial scale. Today, our Autonomous halage system (AHS) deployment represents the largest fleet conversion to autonomous haulage in the industry and demonstrates our unique capability to manage and operate a multi-class truck size autonomous haulage site. While autonomous technology is being applied to more assets and processes, we can’t lose sight of the fact that automating a poorly-run mine just leaves you with a poorly -run automated mine. That is why we are focused on ensuring our operations are safe, efficient and productive while also exploring more opportunities for automation.
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Hive essentials • Floor space of 2500 square metres • Over 15 weeks, 6.5 tonnes of concrete was removed from the building, while 2.1t of steel was installed • The fit-out included 162 workstations and 996 computer monitors, connected by 64 kilometres of underfloor cables.
How will VR and augmented reality (AR) technology affect WA mining? Greg: There are significant safety and productivity benefits to be gained from using virtual reality (VR) and AR technology. From a safety point of view, VR can be used to carry out inductions and training, ensuring team members are familiar with the site before flying out. There are also applications in incident management with specialist medical resources able to get involved early and advise site team members of a course of action until assistance arrives.
Does Fortescue use VR to maintain and repair Pilbara equipment?
‘Data sets’ and ‘advanced analytics’ are buzz phrases. What do they mean in terms of automating more of the mining and processing industry? Greg: Our operations are more connected than ever before and the data that we generate can be quickly accessed and analysed to paint an accurate picture of our operations. This allows us to focus on the best opportunities for improvement. For example, by using data from our autonomous haulage fleet, we have been able to pinpoint areas along our road network that cause higher levels of chassis stress to our vehicles than others, enabling us to target our haul road design and maintenance accordingly. Our autonomous haulage system is a foundational tool and now it’s in place and working effectively, we can streamline more processes and improve more outcomes, ultimately delivering increased value for our shareholders.
safety incidents relies on individuals’ memories, or a manual review of systems and processes. We have started using AI algorithms to identify repeated incidents based on a combination of validated parameters. Identifying unsafe, repeated behaviours helps us to understand the effectiveness of previous preventive controls. Using lead indicators and algorithms, we are also able to identify locations with a high potential of a significant incident, which enables us to proactively target safety efforts.
Greg: Our geospatial information services (GIS) team is working with several teams across the business. We are using VR to streamline maintenance procedures, as an engineer or specialist can speak directly to a maintainer on site, provide advice and assist with the repair without the need to travel to site. Fortescue Sky, our 3D mapping tool, has been upgraded to be VR compatible, while the team have recently commissioned the build of a 3D model of our Christmas Creek Fixed Plant infrastructure using VR. The VR 3D model gives us the potential to create digital twins, run training and development, and predict maintenance programs, as well as explore automation opportunities.
What are the most urgent priorities for mine automation to create a safer workplace? Greg: We are using artificial intelligence (AI) to expand the analysis of health and safety data and improve business processes. For example, identifying repeat significant
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A bird’s eye view of
automation Roy Hill’s project to automate its truck fleet using open software technology is now in full swing, as told by one of its ‘auto mates’, writes Stephen Bell
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ack in February iron ore producer Roy Hill unveiled a pathway to “end-to-end automation” by signing a contract to automate truck haulage at its Pilbara iron ore mine. The deal involved Swedish service provider Epiroc, in partnership with automation specialist ASI Mining, agreeing to convert the miner’s mixed fleet of 77 haul trucks from manned to autonomous use. WA’s mining sector is a leader in automation and the realisation of its safety and productivity benefits. While those two factors will be a driver for Roy Hill, the solution will also bring a new level of innovation as an OEM-independent offering that the company says will be a game changer. Able to be fitted to all makes and models of mining fleet, and based on an open software platform, it will provide new opportunities for local businesses to contribute their expertise, Roy Hill believes. Fast forward half a year from the contract signing and the project is now in full swing, with both technology and people programs setting up Roy Hill to transition into an autonomous haulage environment. Truck driver Sonia Garratt is part of the change team, taking on the role of an ‘auto mate’, representing her crew alongside several fellow truckies. While excited about the future,
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she is also realistic that with any change there will also be some apprehension and is doing everything she can to make sure the Autonomous halage system (AHS) is a success on all fronts. Read on to share her bird’s eye view of how an iron ore mine goes about transforming its manual trucks into giant mobile robots.
Roy Hill’s AHS ‘Auto Mate’ Sonia Garratt “Two years ago, I hadn’t stepped foot on a mine site. I began as a green truck operator learning the ropes at Roy Hill. I didn’t really know what to expect, but I wouldn’t change it for anything, I absolutely love driving trucks. Roy Hill has been open and upfront about wanting to introduce autonomous trucks, so I had a good understanding that at some stage that would be a reality. It wasn’t a surprise when the contract was signed, but it did mean it became real. That brought a few things into focus and I was delighted when I was selected to be a representative for my crew. I see my job as helping my workmates understand where the project is sitting. Six months in, and there is a lot happening. We’re into the second part of a three-stage program to help determine a future career path for our truck operators. That’s one of the key commitments of the AHS project at Roy Hill, >
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Spring 2020 WA WORKS 17 Roy Hill ‘Auto Mate’ Sonia Garratt and an automated Caterpillar haul truck
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> finding opportunities for truckies to further their career in different areas of the business. There are already plenty of examples of people moving into new roles, which is something that has been really positively received. People come first and foremost, but of course there is a large organisational change and the implementation of some world-class technology. For me personally, I am very interested in the system we’re implementing. The whole project team have been very welcoming and willing to share details about each step and the progress we’re making. I had the privilege of driving the first truck installed with autonomous kit from the workshop to the mine’s calibration pad for testing. People ask me why the truck didn’t drive itself and I have to chuckle! It’s a good question, and I guess it could have done, but the road isn’t designated as an autonomous zone — yet!
From “greenie” to auto mate That was a really proud moment. The fact that I had gone from a greenie a couple of years ago, to being entrusted to take our first autonomous truck to the test area highlights to me the trust that Roy Hill puts in its people, as well as the opportunities that are on offer if you want to take them. To sit in the truck and see all of the equipment that has been installed brought some reality to it, and that’s a good thing. The amount of work that has gone into setting up the autonomous trucks is impressive. It’s not just putting a few wires here and there — it is so intricate what the project team is doing — and really innovative being able to apply the technology to different types of trucks. As expected, some small technical design revisions have been required given this is the early part of the test phase, but the way the business has come together and supported the implementation has been outstanding and kept everything on schedule.
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With both a CAT 793F and Hitachi EH5000 trucks running around the calibration pad, it has promoted plenty of discussion on site. We talk about it in a lot of different forums, like pre-starts, or over a drink at the wet mess. We’re encouraged to ask questions.
“The amount of work that has gone into setting up the autonomous trucks is impressive” In mining, the terrain changes all the time as we move to extract the ore, and the calibration pad is another new space that has come together pretty quickly. Essentially it is a dedicated test area, and as the name suggests, will be used to calibrate and examine the full range of the AHS system in a controlled, safe environment.
It is only a short drive from the automation workshop and measures about 150,000 square metres — I’m told that’s about eight times the size of Optus Stadium! It is a designated ‘Autonomous Operating Zone’. Entry is managed by smart boom gates, there is dedicated communications infrastructure, a control room, space for service trucks, while visitors have their own viewing platform as well! The longest side measures 500 metres, which will allow the trucks to reach full speed and stop again safely. Inside, different road conditions and obstacles can be added or adjusted depending on the testing requirements. There is another month or two of the calibration testing before the first production tests get underway. Seeing the trucks interact with an excavator and having the first tonnes moved will be another really big milestone, and I’m looking forward to being part of it. The Roy Hill conversion project will see a phased implementation, with testing and production verification of up to eight trucks, followed by full fleet expansion from mid-2021.
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BHP amps up remote fixes BHP is adapting off-the-shelf hardware to enable teams in Perth to remotely assist auto electricians and mechanical fitters as they repair equipment in the Pilbara, 1300 kilometres away, writes Stephen Bell
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HP’s experimentation with augmented reality goggles has proved so useful that the global miner is now trialling the system for its rail teams at the Mooka Ore Car Repair Shop near Port Hedland. Alex Bertram, Manager of Digital Transformation at BHP’s WA iron ore division, said distance would soon no longer be a boundary thanks to wearable mixed reality devices like Microsoft’s HoloLens. “When COVID-19 struck, our teams couldn’t travel from Perth to our sites in WA, so we improvised,” he said. “In mining, people FIFO (fly-in, fly-out). Some DIDO (drive-in, drive-out). Soon our teams will be able to RiRo — which stands for Remote-In Remote-Out. “RiRo is essentially our teams providing remote assistance via live point-of-view video calls to our personnel on site. “Utilising cloud services and a mixed reality headset device, our technicians on the frontline can call for help and technical support when they need it most — during critical breakdowns and when undertaking new or complex tasks,” he said.
RiRo, in contrast, allowed the company’s engineers, integrated planning and remote operations (IPRO) operators and technical experts in Perth to see exactly what people in the field are seeing, in real time.
“When COVID-19 struck, our teams couldn’t travel from Perth to our sites in WA, so we improvised” Sometimes a phone call or video conference is not enough to solve unexpected breakdowns, which requires BHP to fly people to site, according to Bertram.
They can then provide step-by-step guidance directly to the operator wearing the headset device, even sending schematics or technical manuals straight to the technicians.
An augmented view HoloLens is a relatively inexpensive and portable example of augmented reality technology, or AR. Retailing for about $5000, it is a ‘hybrid’ system with translucent lenses, allowing the viewer to see a digital model transposed on the physical surrounds. Iron ore mining is just one example of an industry that has adapted the device for a specific need. Cristina Perbellini Silva, BHP’s Manager Decision Automation in Technology, is now trialling it with rail teams at Mooka. “During COVID-19, we have been able to
move at an amazing velocity because we all have a clear goal and are empowered to make the right decisions — this helped us cut through the bureaucracy and red tape and implement solutions faster than we thought possible,” she said. Meanwhile, BHP Minerals Australia Vice President of Technology Pat Bourke said the strength of HoloLens was its simplicity. “We are using standard platforms and hardware that already exist,” Bourke said. “What we are doing differently is thinking creatively. That’s where you can gain a competitive advantage, and I can see the RiRo way of working being a real game changer.” BHP’s use of the technology caught the eye of Amanda Healy, the CEO of engineering company Warrikal, one of WA’s biggest Aboriginal contractors. Speaking at a recent WA Mining Club panel on Indigenous relations and female representation Healy said technological improvements were influencing many Aboriginal businesses in WA. BHP’s RiRo adaption of the technology enabled real-time management of maintenance issues, “which for a business like ours is fantastic”, Healy said. Once it was common to fly people from overseas supplier companies such as ThyssenKrupp in Germany to look at, for instance, a stacker and reclaimer issue in Port Hedland. “You might not need to do that anymore — it is such as different world,” she said.
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Augmented architecture Taking a virtual reality (VR) tour of a building before it’s constructed is becoming commonplace but new developments in VR and augmented reality (AR) are poised to shape the future of design and construction, according to a leading researcher
By Stephen Bell
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decade ago, VR goggles were the familiar tools of geeks and gamers. Nowadays, sophisticated digital viewing and design technologies are increasingly finding applications in industries such as architecture. Their promise includes more accurate and efficient designs, ensuring less fix-ups and delays after construction begins. Many would be familiar with the use of VR goggles to gain a 3D perspective on designs for construction projects ranging from domestic dwellings to commercial office towers. And Microsoft’s HoloLens system offers goggle wearers a ‘hybrid’ view of the physical and digital worlds that is proving useful to both architects and mining companies such as BHP for remote maintenance work. The latest buzz is around augmented reality (AR) — a more interactive experience where the real environment is integrated with digital enhancements such as graphics, text and audio. HoloLens is indeed an example of AR. For the past three years, AR has been consistently identified at the World Economic Forums as among the top 10 emerging global technologies, according to Ning Gu, Deputy Director from the Australian Research Centre for Interactive and Virtual Environments (IVE) at the University of South Australia.
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“It shows a lot of potential, but a lot more of that potential is yet to be explored,” he says in an interview with WA Works. A professor in architecture at UniSA, Gu is part of a team of researchers — led by Director Professor Bruce Thomas — who are pioneers in AR and VR research, including wearable computing, interface design, empathic computing, 3D visualisation, perception, and telepresence. Gu currently is partnered with Leon Gouws, South Australian studio leader for Hames Sharley, in exploring ways to integrate VR and AR into architectural practice. They are experimenting with new VR infrastructure recently acquired at IVE called Hyve-3D — a room-sized system that allows
the creation and viewing of 3D models and sketches, both co-located and remotely. This technology is seen as a breakthrough in design as it removes the need to wear VR goggles, enabling everyone in the room to immerse in the virtual environment and directly interact through 3D sketching. “Traditionally in the (design) life cycle, we rely on a much slower process to develop and communicate ideas, through various prototypes, from perspective drawings, mock-up models and, more recently, digital models,” Gu says. “But they always have this sense of separation from what is real, and what is being proposed. “The most innovative aspect of this technology is to bring the digital and physical worlds together. And we create this sense of hybrid reality. I think this is the most powerful aspect of it.” The other benefit is enabling more precise and efficient work. Like most new technology, the rate of uptake of the various VR, AR and hybrid platforms depends on how costly and practical they are. Microsoft’s popular HoloLens AR hybrid system, for instance, uses translucent goggles, allowing the viewer to see a digital model transposed on the physical surrounds. It has the advantages of being compact, portable and relatively affordable (about $5000). The system is making inroads into all kinds of industry — BHP teams in Perth, for instance,
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PhD students Sahar Soltani and Pan Liao using the Hyve-3D facility at the Australian Research Centre for Interactive and Virtual Environments at the University of South Australia
are using HoloLens to remotely assist auto electricians and mechanical fitters as they repair equipment in the Pilbara, 1300 kilometres away. (See story page 19). Hyve-3D, in contrast, doesn’t require goggles and immerses participants in a virtual reality that superimposes digital images and other media onto the interior surfaces of a room-sized (5 metres x 5 metres) shell to create the 3D experience. Yet the Canadian-developed system (which retails for about $50,000) is a world away from the easy mobility of hand-held or wearable devices, and the buyer also needs a space big enough to house it. On the plus side, three people (complying with social distancing requirements) can easily fit into the enclosure at the same time, enabling a shared immersive experience. With its remote license, they can also connect in real time with partners from distant locations either in other Hyve-3D environments or via conventional desktop or laptop computers. And it includes a sketching feature, which can prove very useful in viewings for the client during design review sessions. “If they have any questions, or want to make any alternative suggestions, you can actually sketch over this digital environment,” Gu says. “In the current scenario, using conventional VR goggles, you may experience it and talk about it. “But in this particular environment, you can
use the design tools to highlight a problem area or to mock-up different options, and then compare and test them,” he says. Ultimately, it is about finding the right tool for the right task. For instance, Gu’s team is collaborating with other industry partners on a major public building upgrade in Adelaide’s Riverbank precinct, and HoloLens has been identified as being more suitable for assisting clash detection in construction.
The new technologies are competing with the current mobile AR/VR applications which, although more affordable and convenient, are sometimes not as effective in supporting advanced design simulation and interaction, he says. Gu believes the further development and adoption of AR and VR will significantly improve the design of the built environment through enhanced design simulation and interaction. Further, the merged or mixed realities of
“This technology is seen as a breakthrough in design as it removes the need to wear VR goggles” “You have this new design to be constructed, which is already quite complex, but also the existing building components and services are there,” he says “With HoloLens, we can insert the new design digitally on the construction site and, for example, virtually see through the wall surfaces to reveal the services behind for clash detection. “This virtual building, placing in the physical context, is giving you a much more tangible and precise understanding about the actual impact of the constructions.”
the virtual and the physical as enabled by the technology will require us to re-consider the definition of the “environment” we live in. “With more and more people spending increasing amount of time in virtual and mixed realities, as we have experienced recently, what is the role of architects? “How can we contribute to the design of this holistic environment across both virtual and physical realities? “This is a challenge and opportunity for us all,” Gu says.
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Exploration drilling at DeGrey Mining’s Hemi gold prospect near Port Hedland
New gold boom looms The WA gold industry is preparing for a growth spurt in the next year or two, as high international prices encourage new project go-aheads and expansions of existing operations, writes Stephen Bell
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ith COVID-19 ravaging many parts of the world, the demand for gold — a traditional haven in times of great upheavals — has never been stronger. The pandemic is bad for people, airlines and economies but generally good news for gold. So, if corporate plans and economic circumstances line up, contracting businesses could soon be mining a rich vein of golden opportunities as new projects build their
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way toward production. Gold mining can be a tough business for the asset owner, when your deposit only boasts a gram or two of the precious metal in each tonne of ore dug from the ground. It requires spot-on sampling, mining and processing techniques to make it work, which is where the supply chain comes in. WA boasts some of the world’s leading contractors, engineers and consultants, whether it be drilling, mine design, digital
mapping or processing technology. In this boom period, there are no giant-sized mines on the near-term horizon. The last big one was Gold Fields/Gold Road Resources’ $621 million Gruyere operation east of Laverton, which poured its first ingot last year. But the collective opportunity is growing. Gold hit a record US$2067 per troy ounce in early August, while the Australian dollar gold price reached a record of $2868/ozt on the same day. At the time of writing, prices had retreated to the US$1900s. Those prices were still easily high enough to encourage asset owners to rejuvenate old mines, expand existing operations and build new ones, while the dramatically-increased exploration activity has started generating a few promising discoveries.
Hemi De Grey Mining Drilling, pre-feasibilty Warrawoona DFS
Havieron
Calidus Resources Construction Q1 2021
Newcrest Mining Resource definition
Karlawinda - $170m Capricorn Metals First gold 2021
Glow on gold The new kids on the block To illustrate how quickly opportunities can emerge, two notable supply deals came to light on the same day in late August: MACA’s $410m, five-year deal as preferred mining contractor for Capricorn Metals’ Karlawinda project; and Macmahon’s underground mining contractor GBF engagement by Bellevue Gold for the first stage of its namesake project in the Eastern Goldfields (See page 25). Capricorn plans to spend as much as $170m building Karlawinda and has signed up several key suppliers, including pipeline group APA and Contract Power, with the aim of starting gold production in mid-2021. APA will build, own and operate a lateral pipeline linking the Goldfields Gas Pipeline to the mine. It is expected to transport 3 terrajoules of gas per day for power generation. Contract Power, meanwhile, has agreed to build, own and operate a 16MW gas-fueled power station with 2MW of diesel back-up for Capricorn, which aims to begin plant commissioning in the March 2021 quarter. >
Bellevue Gold Mine $143m Bellevue Gold Pre-construction spending
Kalgoorlie Super Pit $468m
King of the Hills $226m Red 5 Construction tendering
Saracen, Northern Star (KCGM) Two-year pit cutbacks
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KCGM workers at the Kalgoorlie Super Pit processing facilities
> At the time of publication, there were several other project opportunities waiting in the wings: • Calidus Resources began initial activities to provide base infrastructure for its Warrawoona project ahead of major construction in Q1 2021. Macmahon was awarded preferred tenderer status for open pit mining, while GR Engineering was named as the preferred EPC process plant contractor. • Red 5 issued construction tenders and completed a final feasibility study for its $226m King of the Hills project near Leonora. An engineering, procurement and construction contract for a new 4Mtpa processing plant was due to be awarded in October.
• De Grey Mining had six drilling rigs running at its Hemi project near Port Hedland, after uncovering a second discovery — the 1.8 kilometre-long Falcon zone — south of the Aquila prospect. The former 5c-ashare junior company was valued at about $1.8 billion at the time of publication. • Newcrest Mining was on track to deliver a maiden resource for its Havieron gold-copper project, near Telfer, in the December quarter. Sandra Close, Director of Melbourne-based, independent consultancy Surbiton Associates, said she couldn’t recall so much interest in gold since the modern Australian industry sprang into life nearly four decades ago. “There is a high level of activity overall, from investment, increased capital raisings
and initial public offerings, to greater exploration and drilling and a scramble to peg new ground,” she said. Nevertheless, the heightened activity has been building for decades, Close told WA Works. “In many respects Australia has been in a gold boom for 40 years,” she said. “In 1980, the production was less than 20 tonnes a year. Now it is 328 tonnes.” The rise in gold’s fortunes is starting to make a big difference to WA’s and the nation’s financial health.
“Australian gold exports reached a record $24 billion in 2019-20, more than 29 per cent higher than a year ago” Australian gold exports reached a record $24b in 2019-20, more than 29 per cent higher than a year ago, said Resources, Water and Northern Australia Minister Keith Pitt. Gold exports are forecast to reach $32b in 2020–21, with gold set to become the third largest commodity export behind iron ore and LNG. In fact, the Federal Government is forecasting Australia to become the world’s largest gold producer in 2021-22, ahead of China and Russia, with output expected to peak at 381 tonnes. Leaping to the top of the international pecking order would be pure gold for all concerned.
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Resources Bellevue keeps finding more gold
Gold fix-ups The increase in exploration brought about by high gold prices is starting to generate promising discoveries, but reviving or fixing up old mines is still very much on the menu for asset owners By Stephen Bell
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ld gold mines usually don’t get any easier to manage as they go deeper. But sometimes all it takes is a change of ownership and a fresh pair of eyes to rekindle tired or mothballed assets. Such is the case for two notable mines in WA’s current gold surge: the Kalgoorlie Super Pit and the Bellevue Gold underground project between Leinster and Leonora. In 2018-19, WA produced about 70 per cent of Australia’s gold. And two WA gold mines, Newmont’s Boddington operation (673,000 troy ounces) and AngloGold Ashanti/IGO’s Tropicana (463,556ozt) were among the nation’s top five gold mines in FY2020, according to consultancy Surbiton Associates. There was an unusual absence in the top five. For many years it would have included the Kalgoorlie Super Pit, which poured its 20 millionth ounce of gold in 2017. The mine’s Fimiston Open Pit, at 3.5 kilometres long, 1.5 kilometres wide and more than 600 metres deep in the middle of Kalgoorlie-Boulder, draws thousands of tourists to the Goldfields each year. But for mine operator KCGM, digging up gold from Kalgoorlie’s famous ‘Golden Mile’ has been getting harder as the pit pushes ever wider and deeper.
Dangerous and destabilizing pit wall slippages in 2017 and 2018 spurred worries about worker safety and forced significant production cuts at the huge operation. Then, late last year, the North American owners sold out to two established and wellcredentialled WA miners — Northern Star Resources and Saracen — who recently extended the mine life to 2035 after strategic review. “After the problems with the large wall slip are resolved by the cut-back now underway, production should return to more usual levels, with the Super Pit probably once more joining the list of top five Australian gold producers,” Surbiton Director Sandra Close said. The new equal owners, operating via KCGM, plan to spend as much as $468 million over the next two years, mostly on earthmoving, to enable increased production later this decade. They have also launched a recruitment campaign to attract open pit operators to Kalgoorlie to allow the expansion of material movement to 70-80 million tonnes per annum. The massive dirt moving exercise will see KCGM eventually grow its production to 675,000oz per annum by 2028, up from an estimated 440,000 to 480,000ozt in the 2021 fiscal year, the two companies forecast. KCGM says it will construct a new tailings storage facility with a capacity of 144Mt to support the expanded life of mine requirements.
Bellevue Gold plans to spend $143m on underground exploration and initial infrastructure at its namesake project ahead of a forecast go-ahead for major construction in the middle of next year. The Perth-based company also wants to finalise economic studies by the first quarter of 2021, while procurement and contracting would begin around that time, leading to the start of construction in May-June 2021. According to Bellevue CEO Steve Parsons, the future looks bright for a major renewal of the former underground mine that last produced gold more than two decades ago. “It is one of the highest-grade undeveloped orebodies globally,” Parsons told a packed WA Mining Club luncheon. The historical mine produced about one million ounces of gold at 15 grams per tonne, over 11 years to 1997. It closed because the mineralisation supposedly petered out due to a faulting of rock layers, which convinced geologists at the time that no more gold would be found in economic quantities. Twenty years later, Bellevue Gold acquired the property. It drilled holes on the other side of the fault to test whether the mineralisation did, in fact, continue. “The first drill program we did in Christmas 2017 was to prove our theory right, with seven metres at 27 grams per tonne gold, pretty much from the surface on the other side of the fault,” Parsons said. “We’re up to about 200,000 metres of diamond drill core already and we discover about 75,000oz of gold every month on the project.” The company has now uncovered 2.3 million ounces of the precious metal, with more ounces expected to be proven up as drilling shifts to underground platforms to be built in tunnels accessed via the Paris portal. The entrance passageway will join up to one of the existing tunnels — recently dewatered — after descending about 50 metres. “We are cashed up — $151m will certainly get us a long way … all the way through development and feasibility and getting us down to access the high grade ore,” he said.
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The women championing Indigenous business The representation of women and Aboriginal people in mining is steadily increasing but the challenges remain daunting for small Indigenous businesses looking to secure regular work contracts, according to a group of women with long industry experience
By Stephen Bell
F
ive women playing pivotal roles in the fast-growing field of Indigenous business have shared some of their tricks of the trade. Speaking at a WA Mining Club luncheon, the five panelists agreed there had been a big shift in mining’s attitude to female employment (now representing about 20 per cent of the industry’s total workforce) and Aboriginal business engagement in the past decade. But there was still plenty of work to be done in educating young people and businesses about mining and how to win and retain contracts with the major players, they said. Amanda Healy, CEO of engineering contractor Warrikal, also floated the idea of creating a louder voice for Aboriginal businesses to get out a united message to governments and the industry. “We do have things like CCIWA and organisations like that who are fantastic, and mining organisations who represent us,” she told the 200-strong lunch crowd. “But because we don’t put as much into it as the bigger companies, we don’t get as much out.” Healy said she’d built her life and career around big companies and was “very appreciative” of their support. “But the fact is, I’m a small business and I don’t have as much voice”.
26 WA WORKS Spring 2020
Independent voice Neither did Aboriginal businesses have a direct, independent voice to government. “Do we need some sort of Aboriginal business council … or small independent mining companies and businesses gathering some momentum together and creating a voice, a place for ourselves?” Healy is a Koori woman with more than 20 years of direct mining experience in Australia and Canada, including a long stretch with BHP in the 1990s followed by a consultancy role
averages. A few weeks after Healy spoke, Fortescue reported that, as of June 30, Aboriginal people represented 10 per cent of its Australian workforce and 14 per cent of Pilbara-based employees. The company’s female employment rate was 19 per cent, with 26 per cent of senior leadership roles held by women. Healy, meanwhile, said Warrikal regularly employed 20 per cent Aboriginal people out of its workforce of about 350, with recent clients including Fortescue and Rio Tinto.
“There had been a big shift in mining’s attitude to female employment and Aboriginal business engagement” with Rio Tinto’s Argyle Diamonds. She said it was unusual to see a woman in mining at that time, “let alone someone like me who had an Aboriginal background”. There had been a “huge shift” in the industry since then, though the current female representation of about 20 per cent and Aboriginal people at four per cent overall was “not fantastic but improving”. Some big miners are exceeding the industry
She said it important for Warrikal to maintain a high ratio of Aboriginal employees, noting that it is still “difficult to get through some doors here”. “It is very difficult to work for big companies when you are a small company. “One of the biggest hurdles is your very first contract with your new client … and then to make sure you’ve got the right people in the right place at the right time.
Resources
Warrikal CEO Amanda Healy
Florence Drummond, Andrea Maxey, Jarni McGuire, April O’Reilly and Amanda Healy at the WA Mining Club
Time to grow “The first really big issue for us is getting businesses to understand how important it is to start off with small contracts and to allow a business to grow.” Healy said many Aboriginal people engaged in mining don’t come from a time of “generational wealth”. “I never grew up expecting to own a house, my family never owned a house … and I certainly didn’t know anyone who owned a business.” Nowadays, Healy marvels at the huge range of businesses that are operating in WA from offices service companies such as Kulbardi, to major contracting businesses like Warrikal and Carey Mining. “Warrikal is currently, I think, the largest Aboriginal business in Western Australia,” she said. “Although we are a relatively new business it has taken all of us 20 or 30 years to get to that place.” “I’m old enough to remember a time when several homegrown engineering companies were still really small. “I was working for BHP in those days and I remember seeing organisations like UGL and Monadelphous and others grow their businesses in time and become these massive organisations they are today.” That willingness to persevere and grow over a long period was critical to the ability of
Fortescue Manager Organisational Development April O’Reilly
Aboriginal enterprises to succeed, she said. “And being prepared to listen to the stories and understand where people are from.”
The view from AngloGold Co-panelist Andrea Maxey, Vice President Corporate Affairs, Community and HR at AngloGoldAshanti, also emphasised the advantages of Indigenous contractors staying the course in dealing with big mining companies. One of AngloGold’s longest and most enduring relationships, with contractor Carey Mining, dates to 1996. “For us, it shows the real benefits of building long-term partnerships and collaborating with Aboriginal businesses,” she said. “The other thing is using the joint venture mechanism as a way to help small businesses get a start with mining organisations.” Companies as large as AngloGold had multiple health, safety and environment (HSE), governance and business systems, and it is “very difficult for all small businesses to break into the mining sector”. To mitigate these hurdles, the global gold miner had restructured contracts in a way that allowed participation by smaller, local businesses. “That’s a mechanism that has worked well,” she said.
Fortescue’s focus April O’Reilly, Manager of Organisational
Development at Fortescue Metals Group, highlighted the iron ore miner’s Vocational Training and Employment Centre (VTEC) program in the Pilbara as a key element in Aboriginal engagement. VTEC had been operating for more than a decade and was providing sustainable pathways and employment for Aboriginal people, she said. “We can proudly say that this year we onboarded our 900th Aboriginal person through the VTEC program.” At the Solomon mine, Fortescue offered the opportunity for young people to connect with onsite leaders and then to get into the community to work with VTEC teams in Roebourne and “create synergies between the two”. “An example of that was we took our onsite leaders off the mine site and into the community and participated in the training with our trainees. “The benefit of that was they built really strong relationships before even reaching the mine site and their jobs — it was very effective towards retention of those individuals.” In her current role, O’Reilly is developing leadership programs for Fortescue. And one of the more rewarding aspects was seeing the people who’d come through the VTEC program now “funnelling through our leadership programs, stepping into leader roles”. “That’s how we know that (program) has been successful”.
Spring 2020 WA WORKS 27
Supply Chain Memo
Andrew Naude
Engineering the gold boom There is no substitute for innovation and experience as miners chase golden returns, says DRA Global CEO Andrew Naude
T
he COVID-19 pandemic has had far-reaching and profound impacts across countries and industries — impacts we never could have imagined. The gold market, like every other sector, has experienced enormous disruption because of the pandemic. However, unlike many others, gold has benefited from the global uncertainty as investors turned to the precious metal as their safe haven. Therefore, gold rose from $US1500 a troy ounce at the start of this year to a new record just above US$2000/ozt in August, a truly phenomenal run even by the standards of this millennia-old store of value. In Australia, the high gold price is a welcome lifeline for some companies amid studies into the technical and financial viability of mine life extensions by extracting ore that was regarded as sub-economic. The surge in the gold price is promoting a relook at projects previously deemed marginal, be it because of depleting grades, the necessity to move underground or much deeper. Consideration will also be given to the transition from oxide ores to more challenging refractory ore types, which need more complex technology and process and therefore additional capital expenditure.
debt and unnecessary risks to drive production. This does not mean new or extended projects cannot prove to be highly viable developments and worth the capital investment. But as gold mines go deeper, head grades reduce and ore quality changes, emphasis needs to be placed on adopting the best and most up-
“Gold has benefited from the global uncertainty as investors turned to the precious metal as their safe haven” With the adoption of a higher gold price assumption, many mining companies could potentially extend the previously forecast lifespan of their mines by allowing for less viable geology to become part of their asset’s official reserves. Before the pandemic, the trend throughout the industry was on management of all-in sustaining costs. But the world’s soaring love affair with gold may cause some operators to lose sight of the lessons of the last boom of 2011. Mining companies and their investors are undoubtedly reaping the rewards of the gold price uptick but should heed the warnings of the last boom and avoid on-boarding major
28 WA WORKS Spring 2020
to-date practices, from mine design to production and processing flow charts and construction execution as well as operations strategies. Innovative approaches to project studies and financing need to be accompanied by an equally cutting-edge approach to mine development. As a long-term contributor to a vibrant and successful global gold sector, DRA Global undertakes the design of underground and open pit mines and processing plants for any application, size and complexity. DRA is geared to partner with gold miners and developers, having previously been involved on some of the most iconic projects in the
industry. Our knowledge and insights are based on the accrued experience of carrying out more than 4500 studies and projects across the globe over the past 30 years. We have more than 15 gold projects on our books at the moment, for some of the industry’s largest players, so we have a fair handle on the challenges facing this important sector — notwithstanding the soaring gold price. Some analysts project that the gold price could top $US3000 by the end of next year and well-considered investment into gold mining and production is anticipated to yield positive returns. This latest boom presents gold miners the opportunity to create a sustainable business plan and invest in the future. But as industry players who have been around for a while — like the Perth-based DRA team — know only too well, a high spot commodity price is no guarantee of long-term financial success. Using an innovative technical approach to planning, built on a foundation of long and varied experience, will be critical to ensuring that future mine operating costs do not run away like the gold price has. DRA Global is an engineering, project delivery and operations management group headquartered in Perth.
Apprentices
Low apprentice numbers a ‘handbrake’ on growth Recent data reveals an alarming decline in Australians undergoing vocational workplace training, while WA businesses are taking on fewer apprentices, writes Claire Tyrell
T
rainees and apprentices are widely recognised as being key to the State’s continued economic success, but many industries are not taking on enough of these developing workers. Nationwide, there were 11 per cent fewer people commencing apprenticeships or traineeships in the 2020 March quarter compared with the same period last year. And in Western Australia, 28,825 people were undergoing vocational workplace training in the March quarter this year, compared with 30,093 12 months ago — a 4.4 per cent drop. Apprenticeship and traineeship commencements in WA followed a similar pattern, from 16,768 in March last year to 16,015 this March. WA’s decline, which continues a downward since at least 2016, has prompted experts to call on businesses to put an added emphasis on training. As eligibility requirements for the JobKeeper scheme tightened in late September and thousands of businesses were left without the government support, Apprenticeship Support Australia (ASA) called on employers to safeguard the positions of their apprentices and trainees. ASA Manager Lena Constantine describes
the NCVER numbers as “shockingly low” and says WA’s economy is “in no position to sustain further loss of apprenticeship numbers”. “Just because a business is no longer suffering a 30 per cent decline in turnover, doesn’t mean they’re in good shape,” Constantine says. She explains that mechanisms including the Federal Government’s Supporting Apprenticeships and Trainees Subsidy, which many employers were unaware of, could help keep business afloat. “If businesses don’t know they can still access support to help pay their apprentices, those apprenticeships can be at risk,” she adds. Future implications of skills shortages on businesses could be wide-reaching, according to Constantine, who says WA was hit hard by this phenomenon during the mining boom in 2010. “Last time we experienced severe skill shortages we saw many resource projects come online at once, putting demand on labour. This caused widespread skills shortages across industries as we scrambled to meet demand,” she says. “Flow on impacts included wage inflation as employers across the state competed for needed labour and skills. Projects were delayed and productivity lost, as we scrambled to find ways to get access to labour.”
A solid base Richard Argus, owner of WA hydraulics systems company Fluid Line Services, says maintaining a solid base of apprentices was key to the success of his business. “We’ve always committed to apprentices and the pains that brings you because hopefully it also brings you rewards — it is investment in people,” he says. “Young people, they’re going to have their ups and downs, and they’re going to need some support in the workplace and outside of it, they’re going to need some understanding. But you get through that…and you breed a lot of loyalty.” He says the drops in people starting apprenticeships in his industry would stifle its growth. “I see it as less of a cost blowout but more as a handbrake on the business. Ours is a specialized technical industry and it takes 10 years of training before you have a technician that’s going to be giving you very high cost recovery,” he explains. “For every apprentice we don’t employ, in five or six years’ time that’s one less person we can have bring in money for us,” he says. Argus, who started the company in 1989 after being hired as an adult apprentice in the late 1970s, tries to employ at least one apprentice a year in both his Perth and Kalgoorlie workshops. “Our policy is we would put on an apprentice in each branch every year, but we haven’t been able to achieve it enough, because we sometimes don’t have enough tradesmen to give the apprentice the training they require,” he says. If there are not enough fitters to supervise new starters at the time Fluid Line Services would normally be taking on apprentices, Argus may hold off for up to 12 months or until the company’s hiring capacity improves.
Spring 2020 WA WORKS 29
Charging up the
value chain WA’s long talked about transition from battery minerals miner to value-adding manufacturer is about to take its first tangible steps at CSIRO’s Waterford facility in Perth’s south, writes Stephen Bell
I
t might be baby steps, but could this be the genesis of a WA battery materials production and trading hub? The Curtin University-based Future Batteries Industry Cooperative Research Centre (FBICRC) says it will fund a $10 million pilot operation that will “repurpose” BHP’s nickel sulphate test plant at CSIRO’s Waterford laboratory facility to produce battery precursor materials. An FBICRC spokesperson told WA Works the design, construction and commissioning of the pilot plant — to be operated by CSIRO — is due to be completed Q1 2021 and “up and running Q2 2021”. It will be bankrolled via the FBICRC’s Federal Government funding alongside four research organisations, 11 industry participants and State Government contributions. The industry participants include German chemicals giant BASF, BHP Nickel West, and the Wesfarmers-backed Covalent Lithium. The pilot facility was a key recommendation of a new report, ‘Li-ion battery cathode manufacture in Australia’, which says the CSIRO plant will become a pathway to commercial production of the cathode active materials (CAM) used by global companies to make lithium ion batteries. The report, by the FBICRC and undertaken by the Queensland University of Technology, with support from Hatch Engineering and Curtin University, has been backed by Mines and Petroleum Minister Bill Johnston. It demonstrates that WA has the potential to become a “major processing, manufacturing and
30 WA WORKS Spring 2020
Exporting so-called precursor compounds for battery making would add substantial value to the WA’s battery mineral production. With global precursor output set to increase about 17–fold by 2025, producing battery precursors is a crucial step to add value to the Australian battery industry, the report says. The Waterford plant will provide technical knowledge of how to build an industrial scale plant capable of capturing some of the rapidly expanding market for nickel-rich Li-ion batteries used in electric vehicles.
Plant courtesy of BHP trading hub for battery materials,” Johnston says. “This will help diversify the WA economy, create jobs and place Australia at the forefront of the global battery revolution.” Of course, it is not about to happen overnight. The FBICRC report calls for a “gradual ramp up” in processing capability to ensure the manufactured material is comparable with existing competitor products. And there will be plenty of new competitors angling to swim in the growing tide of lithium battery products. The global automotive Li-ion battery market, for instance, is projected to reach US$95.3 billion ($134b) by 2030 — an annualised growth rate of about 11 per cent. Australia currently produces nine of the 10 mineral elements required to produce most Li-ion battery anodes and cathodes and has commercial reserves of graphite — the remaining element.
BHP’s existing nickel sulphate pilot plant at Waterford led to the construction of its yet-to-be-commissioned industrial-scale facility at the Kwinana nickel refinery. To repurpose the plant for production of battery precursors, researchers will likely use the ‘co-precipitation’ technique for manufacturing CAM at a laboratory scale. (See Box: A recipe for battery cathode precursors). The new processing initiative comes amid a prolonged slump in the global lithium market caused by overproduction of the mineral in Australia and South America, along with weaker demand from China due to overstocking. The downturn has caused major ramifications in WA, with Tianqi pausing the commissioning of its $400 million Stage One lithium hydroxide plant at Kwinana, which is not expected to be begin production until next year. Nevertheless, FBICRC Chief Executive Stedman
Inside Alinta Energy’s storage battery at its Newman Power Station
Ellis is confident WA can successfully make value-added battery-grade materials despite the lack of production, at the time of writing, from Tianqi and BHP’s nickel sulphate plant at Kwinana. “Getting these processes and plants working effectively, getting them right at the start, can sometimes take more time than first anticipated,” Ellis told WA Works. “But in this case, unlike a lot of the other value-adding strategies being pursued in WA’s resources sector, there is a compelling commercial reason to seek to move downstream. “Clearly, we’re in a stage now where they are being constructed. They’ll be commissioned — they will be very significant stepping-stones to the next stage … the development of cathode active material.”
Race on! Nevertheless, analysts warn that WA risks losing a global race to supply responsibly-sourced battery materials to a global market looking for alternatives to dominant and problematic major players, including the Democratic Republic of Congo and China. Some mineral-producing countries are putting up hundreds of millions of dollars in public funds to accelerate and expand battery-related exports. “Australia has traditionally adopted a relatively laissez faire approach to the facilitation of new industries — we’ve been reluctant to pick winners,” Ellis said. “But if you look at what is happening in
other countries around the world, who share the same opportunities as us, they’re being more aggressive.” Finland, for instance, in June said it planned to allocate 450 million Euros ($740m) to its state-owned battery metals company to increase the degree of processing of Finnish minerals by strengthening the battery value chain. Germany, meanwhile, was attempting a kind of “world domination” in its efforts to subsidise and protect its massive electric vehicle and chemicals industries, Ellis said. “The scale of government investment and involvement really is more strategic and of a much larger size than we see in Australia, so I think this is a race to capture this opportunity,” he said. Perth US Asia Centre Research Director
Jeffrey Wilson said Australia had a unique opportunity to partner with countries looking to secure their supply chains amid growing global protectionism, alongside rising concerns about the social and environmental costs of producing battery minerals. “Most of the world’s cobalt is mined in the Democratic Republic of Congo, and the labour and environmental standards of that mining are quite despicable by any standards of human decency,” Wilson told a Perth US Asia centre webinar. Global corporations, including Apple, Hewlett Packard and car manufacturers were trying to do something about these supplier shortcomings. But he said there is little transparency in international supply chains as to how particular products are manufactured. >
A recipe for battery cathode precursors The ‘co-precipitation’ technique has been identified as the most suitable candidate for manufacturing of cathode active material (CAM) in WA. The processing steps in the production of nickel-rich NCM battery CAM is the mixing and reaction of nickel, cobalt and manganese sulphate solutions with caustic soda and aqueous ammonia under inert conditions to produce a mixed hydroxide precipitate. This is then washed, dried, combined with lithium hydroxide, calcined, ground, coated and re-calcined, before packaging. Some cobalt chemical inputs will be available from BHP’s nickel refinery, while additional cobalt sulphate is made available by Cobalt Blue, a producer from NSW, the report says. Manganese sulphate is to be provided by Mandurah-based Pilbara Metals Group (PMG), or equivalent lithium hydroxide will be sourced from Tianqi’s partly-commissioned industrial plant at Kwinana.
Spring 2020 WA WORKS 31
Energy
> Paddock to Plate “You may have heard of paddock-to-plate agriculture in the farming sector. We don’t have a mine-to-battery process for battery minerals, and so companies can only do so much in trying to shine a light on these things,” Wilson said. “It is the proper purview of government to do something. We’ve known about these problems for over 20 years, the private sector has done a lot, but it’s the limits of what that’s capable of”, he said. “I think it is time for the Australian government, but for others as well, to actually say this is something that requires government involvement in regulation.” Wilson also stressed more targeted funding from governments in Australia was needed to encourage more research and new ventures. “The world cannot address climate change without renewables, and we cannot achieve renewables without batteries, but batteries gets a fraction of the attention, the policy time, and the funding that renewables do,” he says. Ellis agrees, saying it is time for the Federal Government to devote more time and funding to batteries, similar to how it fosters renewable
AUS
2017
$1.13b $740m
Hard rock vs brine $10.1b $16.2b
Luring a big fish The State Government’s recent $92.4 million suite of initiatives to activate new industries — part of its overall COVID-19 recovery plan — includes a tasty lure for a battery materials heavyweight to set up a production plant in WA. The lure includes $13.2m in project funding to attract a “global cathode active materials (CAM)” manufacturer to our shores. The CAM initiative includes incentives to offset project costs, such as land lease rates on industrial land to help businesses establish and keep jobs in WA. The McGowan Government says the move will strengthen WA’s position as a leader in future battery minerals, materials, technology and expertise in global battery supply chains.
A Korean connection? Despite the economic hardships caused by COVID-19, the demand for electric vehicles is still running strong — most would have heard about US-based Tesla’s share price hitting record highs this year. But electric vehicle sales are also booming in South Korea, which exported a record 11,496 EVs in May, according to Kyungjin Song, Director of Consultancy FN Global Issues Centre. This was despite a decrease in the level of overall automobile exports.
0.53% of value chain realised by Australia
Rest of world $0m
Mine/Concentrate
2025
energy through agencies such as ARENA and Clean Energy Finance Corporation (CEFC). “It’s not hydrogen or batteries, it’s all of the above,” he says. “And we’d want to be pursuing the opportunities in batteries as aggressively as we are in hydrogen. Both offer big growth prospects, he said, as highlighted in the International Energy Agency’s recent Sustainable Recovery Plan that aims to boost innovation in “crucial technology areas including hydrogen, batteries, carbon capture utilisation and storage, and small modular nuclear reactors”.
“I can’t stress enough the growing importance of batteries in the Korean economy,” she says. “It is highly desirable for Korean manufacturers to seek and strike a long-term strategic partnership deal with our producers of critical minerals and materials.” Industrial conglomerate POSCO had invested in WA lithium producer Pilbara Minerals a few years ago, while the South Korean Government was looking to strengthen cooperation with Australia and Indonesia by supporting local companies to develop their capacity in battery value chains. “So, building upon this policy initiative … I would say Korea and Australia can think of setting up a joint venture to produce cathode in Australia, given that the battery industry has relatively high technological entry barriers, and also given that Australia wants to develop this mid-stream capacity in the value chains,” she said. Song said Korea was organising a taskforce, including government, corporations and academia, which was scheduled to come up with a roadmap for securing critical minerals and materials by next year.
$2b
$0m
$2.6b
$0m
$0m
Precursor/ electrochemical production
Refine/Process
LiOH,Li2Co3
$22.1b
Li(NIxMnyCo2)02 Graphite $0m
$385b
$31.1b
$0m
Battery cell production Sinter/Assemble $0m
$550b
$156b
Battery pack system assembly Manufacture, deploy, manage $0m
$1.68t
0.47% of value chain realised by Australia Graphic: FBICRC
32 WA WORKS Spring 2020
An illustration of Australia’s limited participated in the value-added stages of battery manufacturing
Memo from mining
Paul Everingham and Warren Pearce
Building a lithium industry for WA The prolonged downturn in raw lithium prices means ongoing government support will be vital for the WA mining and processing sector to remain sustainable and take advantage of growing global demand for Li-ion batteries, say Paul Everingham and Warren Pearce
I
n the last three decades, the number of mobile battery-powered devices in the world, such as mobile phones, has risen from zero to over seven billion. The growth in the use of mobile phones and other mobile gadgets, is matched only by projected increases in electric vehicles and renewable energy over the next few decades, all driving a near-exponential growth forecast in the global battery market and fuelling the world’s electric revolution. And while it is still not commonplace to see electric vehicles on Perth’s suburban streets, the electric vehicle revolution is now starting to take off around the world, led by the United States, the European Union and China. This electric revolution is made possible by the lithium-ion battery, and of course the raw material lithium. Today, Western Australia produces more than 50 per cent of the world’s hard rock lithium and over the last several years, the WA mining industry has been developing new lithium mines to meet the oncoming wave of demand. Processing facilities are also being built in Kwinana and outside Bunbury to process lithium into the chemical material required for the lithium-ion battery, delivering even more local investment and employment opportunities. In 2019, WA’s lithium industry had already expanded to support just under 4000 full-time jobs onsite. These efforts have been ably supported by the WA Government’s Future Battery Industry strategy, which aims to capitalise on this major economic opportunity for the State. Together, these efforts are establishing Western Australia as a global strategic player in the battery supply chain. A new report, titled ‘A case for building resilience into Western Australia’s lithium industry,’ was commissioned by The Chamber of Minerals and Energy of Western Australian (CME) and The Association of Mining and Exploration Company (AMEC) to investigate what was needed to ensure the immediate viability, growth and longer-term sustainability of WA’s burgeoning lithium industry. Although the future is bright, the reality of any new developing industry, especially those with complex and diverse supply chains, is that they
rarely grow at an even and predictable rate. The complicated nature of the lithium supply chain, from raw materials, to chemical processing, to componentry and ultimately battery manufacture, all developing at different speeds, has created a range of challenges for suppliers into this market. A volatile global market, the currently low hard rock lithium price and the impact of COVID-19 on demand, is impacting the competitiveness of WA’s upstream lithium sector, and by extension, the viability of downstream opportunities in lithium chemical manufacturing. The report warns ongoing government support will be vital for the sector to remain sustainable to take advantage of this growing global demand, and to preserve WA’s leading position in the global market. Other policy options recommended by the report included industry support, infrastructure development, port access, approval timeframe improvements and better connectivity. It is difficult to see market conditions improving substantially in the short-term that
would support further significant investment in lithium projects and chemical manufacturing in Western Australia. However, the opportunity is not lost, only somewhat delayed. But without a sustainable up-stream sector, WA simply won’t be in a position to capitalise on future downstream opportunities. The WA Government should rightly be recognised for its effort in helping to secure these opportunities for the State. But there’s more to be done. Government and industry must now work together to ensure that our lithium producers can weather these short-term economic challenges, so that Western Australia can ultimately win a larger share of the supply chain powering mobile technologies, energy storage and electric vehicles, and keep more of the economic benefits here in WA. Paul Everingham is Chief Executive Officer at CME and Warren Pearce is Chief Executive Officer at AMEC
“Western Australia produces more than 50 per cent of the world’s hard rock lithium”
Spring 2020 WA WORKS 33
Energy
Big wind farms go live as boom runs out of puff Two giant Mid West windfarms will begin delivering nearly 400MW of combined wind power capacity into the South West Interconnected System this spring, but new projects may be thin on the ground
By Stephen Bell
B
right Energy Investments is nearing completion of its $500 million Warradarge wind farm in the Mid West but warns it will be “tough” justifying new SWIS-connected renewables projects in the next couple of years. BEI — the partnership between State Government-owned Synergy, Dutch Infrastructure Fund and superannuation giant Cbus — started building Warradarge 12 months ago and had forecast the first energy production by the end of this year. But BEI General Manager Tom Frood told WA Works the company had achieved first power generation in August, with three of its turbines powering up to 10MW. Over the next month, the 51-turbine wind farm was expected to ramp up to a total generating capacity of 180MW through a staged commissioning process. And technicians were running tests on each of the turbines in preparation for the generation and export from the entire wind farm into the SWIS following commissioning, which was due to be achieved as WA Works went to press. The project’s full generating capacity of 180MW is enough to supply the equivalent of 148,500 homes.
34 WA WORKS Spring 2020
“We are pretty happy, given all the challenges we’ve had this year with coronavirus and so forth. The fact we’ve been able to maintain schedule — its good news,” Frood said. The construction challenges included the installation of the 51-turbine foundations, each about 20 metres deep. Each wind turbine tower is then erected out of three sections using crane lifts. The drive chains and turbine nacelles — the covers housing the generating components — were then placed atop the towers, which have hub heights of 84m.
“The towers have a little bit more flexibility … more of a solid lump… but particularly when you get to the lifting the blades and so forth.”
Substation connection Western Power, meanwhile, was completing works at a new substation for Warradarge’s grid connection. The Warradarge substation is “very similar” to the one the State-owned utility built for Alinta’s nearby Yandin wind farm, Frood said. Yandin’s substation had a construction cost of about $46m.
“The project’s full generating capacity of 180MW is enough to supply the equivalent of 148,500 homes” Warradarge’s 66m-long turbine blades were then lifted — carefully — one at a time. Frood said it usually took one or two days to complete a full erection of a single tower, but you “have to wait for the right weather conditions”. “If the wind’s blowing too hard it’s not possible to do all of the lifts,” he said.
Warradarge’s workforce peaked at 150 people, with the majority of local subcontractors hired by balance of plant contractor Decmil engaged in civil construction activity, Frood said. The imminent grid connection and commissioning was good news for the State Government’s experiment to develop new WA
Energy
Bright Energy Investments Warradarge wind farm
renewable energy projects in partnership with the private sector. It also contributed to a three-year, $1.1 billion boom in new Mid West wind farms. APA Group’s $315m Badgingarra project was finished in 2018, while Warradarge and Alinta Energy’s $400m Yandin project both started construction last year. The boom saw hundreds of massive components trucked from Perth along the Brand Highway to the individual sites. Yandin’s 75m-long individual blades — the biggest every transported in WA — were trucked about 200 kilometres from the port at Henderson to the project site near Dandaragan, north of Perth. Alinta turned the first sods at Yandin in August 2019, with EPC contractor Vestas and Decmil beginning peak construction late the same year. WA Works understands Yandin is expected to begin commissioning in November 2020. In total, Yandin and Warradarge will bring in nearly 400MW of wind power combined into the SWIS grid.
Frood said BEI is studying a number of new projects, but a recent whole-of-system plan by economic regulator AEMO painted a “fairly realistic picture that it’s going to be tough building new renewables stuff in WA in the next couple of years”. The continued growth of rooftop solar on the SWIS was slowly cutting into demand for new commercial projects.
“I also think there are a few grid challenges that are being grappled with, and they’re also some regulatory challenges to facilitate further renewable builds in WA … to be connected into the SWIS.” Frood expects to see continued construction of off grid solar and wind farms for mine sites, however the projects primarily of interest to Bright Energy are those connected to the SWIS.
End of the boom? Despite the increasing popularity of renewable power in the Australian economy as a means of lowering carbon emissions, it seems the current crop of wind projects may be the last for some time in WA.
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Energy
Gas supplier ATCO is developing a hydrogen refueller project in Jandakot as part of its $3.3m clean energy innovation hub. Backed by $1m of State Government funding, the Jandakot H2-Fuel project could eventually help supply more than 1000 fuel cell electric vehicles in metropolitan Perth.
Woodside goes green
The race to supply the world’s hydrogen WA is only just beginning to unlock its potential to supply renewable hydrogen to many parts of the globe, and its recent export discussions with Germany is just the tip of the iceberg By Claire Tyrrell
I
ndustry and government are going to great lengths to accelerate the growth of renewable hydrogen in Western Australia. The McGowan Government’s ambitious pledge to bring forward its renewable hydrogen strategy an entire decade reflects the rapid acceleration in demand for the alternative energy source. And as Regional Development Minister Alannah MacTiernan pledged an additional $22 million towards the strategy to achieve its targets by 2030, what is shaping to be the nation’s first commercial green hydrogen supplier, Infinite Blue Energy, was hastening its plans. The Perth start-up behind the $346m hydrogen plant in Arrowsmith near Dongara is building a smaller facility to help cater to demand while its bigger plant is built. Infinite Blue Energy entered into an agreement with roadhouse owner Top Group to supply green hydrogen to three existing fuel stations by late 2021. The $50m project would allow it to deliver the fuel source well ahead of the Arrowsmith plant competition due date in Q4 2022. The company’s Managing Director and CEO Stephen Gauld told WA Works the smaller facility, which would produce 4.5 tonnes a day of green hydrogen, would plug a supply gap.
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“We have got so much demand for hydrogen… so what we are doing is getting a smaller plant up and running next year [while] they’re still building the bigger one,” he said. Renewable hydrogen, which is a mechanism for storing renewable energy in the form of hydrogen gas, is fast becoming seen as a viable alternative to fossil fuels. As early as the middle of next year, hydrogenpowered coaches will be transporting workers
LNG giant Woodside has joined the green hydrogen race, signing an agreement with Japanese companies JERA, Marubeni and IHI Corporation to examine the large-scale export of hydrogen as ammonia, to decarbonise coal fired power generation in Japan. At Woodside’s half yearly results briefing in August, CEO Peter Coleman told investors it was investigating the transition from more emissions intensive blue hydrogen into green hydrogen for export. He also spoke about Woodside’s involvement in two potential hydrogen projects in Badgingarra and Launceston, backed by the Federal Government’s Australian Renewable Energy Agency. Minister MacTiernan recently announced a joint declaration of intent between the Australian and German governments to deliver a hydrogen supply chain feasibility study focusing on renewable hydrogen. MacTiernan said the study would complement the work underway to develop the State’s renewable hydrogen export industry. “Germany currently imports up to 70 per cent of its energy and is eyeing renewable hydrogen for its future energy needs,” she explained. “Our Government has already undertaken significant work over the past two years with the German Government and industry to lay the foundations for our fledgling hydrogen industry.” Speaking at a recent CCIWA Levelling Up event, MacTiernan highlighted the opportunities renewable hydrogen presented for the growth of regional WA.
“Renewable hydrogen is fast becoming seen as a viable alternative to fossil fuels” of mining juggernaut Fortescue Metals Group to and from its Christmas Creek mine site. The $32m project will utilise solar hydrogen to deploy 10 coaches and is part of the company’s plan to decarbonise its operations by 2040. The State Government’s $5.7m renewable energy microgrid in Denham near Shark Bay is set to be the first of its kind in the nation and will harness solar power to produce hydrogen from water. The Denham project is designed to be a catalyst for similar microgrid set-ups across regional WA, incorporating renewable hydrogen.
“I certainly think that this will be incredibly good for regional development. In the Mid West around Geraldton, we could see a real hydrogen production industry develop around there,” she said. “I think it could be quite transformative for the Pilbara to actually be having so much of that energy produced remotely and then having those manufacturing opportunities.” MacTiernan said the Oakajee industrial area in the Mid West could act as a potential hub for renewable hydrogen, and the Government had received expressions of interest using that area to store energy.
Hydrogen
South Korea $120m(USD) HyNet Refuelling1 Woodside/Kogas etc Charging,refuelling
Lake Argyle - RHF Ord River Hydrogen Pacific Hydro Co-production
continues to rise
Christmas Creek $32m Karratha - NA
Karratha - $3.8m
Japan Ammonia Woodisde/JERA Export Study
Pilbara Hydrogen Yara, ENGIE Feasibility
Wheatstone Ashburton West Pipeline
Transport Fuel Fortescue, Hyzon Completion mid 2021 Telfer Gas Pipeline
Pilbara Energy Pipeline Fortescue River Gas Pipeline
DBNGP - RHF DBNGP Blending AGIG Gas Networks Denham - $5.7m Microgrid State Government Geraldton - $4.4m UWA - $162m FenEx CRC Chevron-led Hub Research Centre
Geraldton Ammonia BP, GHD Feasibility
Badgingarra - NA Dongara - $346m Arrowsmith Infinite Blue Energy Build target 2021
Murdoch - RHF
Jandakot - $1m
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
Goldfields Gas Pipeline
Jandakot Fortescue, ATCO Refuelling
Green Hydrogen Woodside/APA Group Goldfields - RHF
Parmelia Pipeline Wheatbelt - RHF
Hybrid Power EDL Remote Applications
Transport/blending ATCO Feasibility 10MW
Cockburn - RHF Solar Hydrogen City of Cockburn Transport
Key New Projects Hydrogen Projects
Kwinana - NA Green Hydrogen BHP Nickel West Electrolyser
Active Projects Dampier Bunbury Pipeline (DBNGP) Other Pipelines
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. 3. The hydrogen industry’s growth is demonstrated by the new projects (shaded ) since our last edition of WA Works.
Spring 2020 WA WORKS 37
Pilbara diversity A diverse range of new projects, including renewable energy ventures, are adding depth and breadth to the Pilbara’s current iron-ore driven economic revival, writes Stephen Bell
T
he Pilbara is often described as Australia’s economic “engine room”, given that its iron ore and LNG exports in the 2019-20 financial year had a combined value of well over $100 billion. Nobody is suggesting we do anything to endanger the wellbeing of this golden goose. But there is no harm in developing alternative commodities and industry sectors that would help to diffuse the impact of the region’s notorious ‘boom-bust’ cycle driven by iron ore and energy price movements. After extremely lean times during 2016-17 — the depth of the mining downturn — Karratha and Port Hedland have bounced back, mostly because of the new iron ore mines now under construction. And Karratha could receive an added boost next year should Woodside proceed with its multibillion dollar expansion of the Pluto LNG project to process offshore gas from the Scarborough field. That decision could trigger a green light for a welcome diversification into downstream chemicals production — Perdaman’s $4.6b urea project that would use Scarborough gas as feedstock. There is plenty else happening in the wings, including salt and copper, with the latter commodity the focus of Rio Tinto’s mooted Winu development in the east Pilbara.
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Golden glimmer But two of the major up-and-comers this year are gold and salt. At the time of writing, there were four gold projects on the boil: Calidus Resources’ Warrawoona near Marble Bar, Capricorn Metals’ Karlawinda near Newman, De Grey Mining’s Hemli near Port Hedland and Newcrest’s Havieron east of its Telfer mine. You can read more about these in our gold feature from page 22. Gold is nowhere near as capital intensive as oil and gas or iron ore, but one of these projects, De Grey’s Hemi discovery, showed potential to become a major, long-term mine based on exploration results. At the time of writing, the share market was valuing Hemi at an incredible $1.8b, despite the absence of any significant mine feasibility work.
Salt on the table Another intriguing venture is BCI Minerals’ $779 million Mardie salt project, which could be approved early next year. The Kerry Stokes-backed company plans to build a new transhipment port on the Pilbara coast as part of the project, which would target production of 4.4 million tonnes per annum of high purity salt and 120,000tpa of sulphate of potash (SOP) fertiliser via solar evaporation of seawater.
Contractors Worley and GR Engineering were both involved in the company’s $20 million feasibility study for Mardie, which estimated a peak construction workforce of 470 is needed to build a major processing and export operation over three years. The current development schedule is for a final investment decision in the first quarter of next year, construction starting in Q2 2021, first salt sales by mid-2024, and first SOP sales by mid-2025. “We believe Mardie will be a multigenerational asset for northern Australia, delivering new multi-user export infrastructure, tax and royalty revenues, jobs and Indigenous engagement,” said Chairman Brian O’Donnell.
A greener footprint The Pilbara is starting to bloom as an adopter of renewable energy, with the region’s hot sunny weather amenable to solar installations. Both Fortescue (Chichester) and Rio Tinto (Koodaideri) are installing new photovoltaic solar plants, while Alinta Energy is now spending $95m on upgrading and modernising its gas-fired Newman power station to support more renewables on the grid. Alinta’s Executive Director Merchant Energy Ken Woolley said the Newman investment was another step in the company’s plans to support the transition towards a renewables-heavy generation mix in the Pilbara.
Drilling at Rio Tinto’s Winu copper project
He said the company had installed WA’s biggest battery at Newman in 2018 and launched the Chichester solar gas hybrid project with Fortescue in 2019. “Now we’re expanding the Newman power station with the latest technology to generate more flexibly, efficiently and affordably, while securing our expanding high voltage network.” The power station supplies customers including the Roy Hill mine and, on completion of the Chichester project, Fortescue’s Christmas Creek and Cloudbreak mines. And Fortescue’s $615m (US$450m) Pilbara generation project includes 150MW of solar generation to accommodate its new Iron Bridge magnetite mine, due to fire up in 2022. Meanwhile, Clarke Energy Australia says its contract with Alinta to upgrade the Newman power station will employ about 50 people at peak construction. Site work for the Newman upgrade was due to begin this month, with Clarke to eventually install 14 Jenbacher gas reciprocating engine generating units as part of its engineering, procurement and construction contract. The contractor, a global division of US-based conglomerate Kohler, told WA Works it would identify local supplier services for the Alinta project where feasible.
The elephant in the room In talking about new Pilbara ventures capable
of making a real difference, the elephant in the room is Rio Tinto’s Winu copper project, about 45 kilometres from Newcrest’s Telfer mine. In late July, Rio said it was close to submitting an Australian Industry Participation Plan to the Federal Government after the company reported an initial 2.3 million-tonne resource estimate for Winu. The company also unveiled a nearby gold find that could broaden its development options for the copper discovery that inspired a pegging rush last year in the emerging Paterson Province.
Subject to approvals, Rio could start developing a 7Mtpa copper mine as early as March. It planned to start production in 2023, with a copper/gold concentrate to be transported by road to Port Hedland for export. However, Winu’s future was clouded somewhat following Rio Tinto’s partial destruction of rock shelters at the Juukan Gorge heritage site in May, which is forcing the departure of three Rio executives, including CEO Jean-Sebastien Jacques. Jacques, who will remain in his role until the appointment of his successor or March 31,
“No harm in developing alternative commodities and industry sectors that would help to diffuse the impact’” Winu has an inferred mineral resource of 503 million tonnes grading 0.45 per cent copper equivalent, representing 2.26Mt of contained copper when gold credits are included. The resource includes a higher grade component of 188Mt at 0.68 per cent copper equivalent. Rio said the copper mineralisation would likely support the development of a relatively shallow open-pit mine, combined with industrystandard processing technology.
whichever is earlier, was a fan of Winu. There is no guarantee his successor will hold the same view about the project, which will require significant engagement with the local Nyangumarta and Martu traditional owners. That process may no longer be straight forward, given the damaging fall-out from Juukan. The scale of Winu’s copper endowment will likely ensure its development in some form. The question is, ‘when’?
Spring 2020 WA WORKS 39
Major Projects List
New projects top $3 billion The COVID-19 pandemic may still be causing havoc in our economy, but it hasn’t prevented a dozen new projects, mostly in the resources sector, coming to light in the past quarter, writes Stephen Bell
W
A Works has identified about $3.2 billion worth of projects for the new Major Projects List, and that sum significantly understates the proposed total investment. That’s because Rio Tinto, at the time of writing, was yet to announce the capital cost for its big Winu copper project in the Pilbara, which could be given the go-ahead in the first half of next year. However, the timeline is not solid, given the company is in a transition period, with a new CEO due to replace the outgoing JeanSébastien Jacques before the end of March. It is not unreasonable to assume the development pathway for Winu may be slowed until the new Rio boss finds his or her feet. The costliest project in the new dozen is BCI Minerals’ Mardie salt project, which has forecast production of 4.4Mtpa of salt and 120,000tpa of sulphate of potash fertiliser. A recent feasibility study estimated capital expenditure of $779 million, though stockbroker Bell Potter says the project will have a capital requirement of more than $800m. The Kerry Stokes-backed BCI aims to finance the development in the first half of next year to enable development from mid-2021 and first
production in 2024. The project will generate 450 construction jobs.
Smarts in the city The second most expensive new project, and one destined to be a cultural landmark, is Edith Cowan University’s $695m Creative Industries, Business and Technology Campus in the centre of Perth. ECU will contribute $300m of the total cost, the Federal Government $245m as part of the overarching Perth City Deal, while the State Government is providing in-kind support through the provision of land. Under the deal, ECU will develop a vertical campus at the central Perth City Link, next to Yagan Square, offering programs in technology, business, creative and performing arts. More than 8000 students and 1200 staff are expected to be based at the new campus when it opens for Semester One, 2025, growing to more than 10,000 students and 1500 staff by 2030.
Gold shines Gold is the big mover this issue, with three projects joining the list: Red 5’s King of the Hills, Capricorn Metals’ Karlawinda and Bellevue Gold.
“About $3.2 billion worth of projects for the new WA Works Major Projects List’”
40 WA WORKS Spring 2020
Red 5’s $226m King of the Hills venture typifies much of the latest gold boom, with the development involving an expansion of an old mine into a new 4Mtpa bulk mining and processing operation. The company aims to appoint an engineering, procurement and construction contractor in the December quarter ahead of “full on-site construction” early next year. Bellevue Gold’s project, meanwhile, is also based on an old Eastern Goldfields underground mine — the Bellevue mine that was closed in 1997 after producing about a million ounces of gold. It joins the new list courtesy of a $143m spending program to build initial infrastructure and prove up more underground ounces ahead of a go-ahead for major construction in the middle of next year. The last of the new trio is Capricorn Metals, which says it it will spend up to $170m building its Karlawinda gold mine in the Pilbara after upscaling the processing facility. The Perth-based company, which started construction of the long-mooted project earlier this year, is building a new $5m airstrip at Karlawinda, near Newman, and is due to produce its first gold in June 2021.
Shark Bay sands Elsewhere in resources, Strandline Resources is targeting a go-ahead late this year for its $260m Coburn mineral sands project near Shark Bay. The project, tipped to generate 315 construction jobs, received a major boost in July when the Federal Government’s Northern Australia Infrastructure Facility (NAIF) confirmed it will loan up to $150m to the venture. Strandline wants to supply about five per cent of the global market by producing 58,000tpa of zircon, 110,000tpa of chloride ilmenite and 24,000tpa of rutile. The other new entries are mostly publicfunded infrastructure projects, including the State Government’s mooted $256.7m expansion of the Joondalup Health Campus Multiplex, Lendlease, Georgiou and Built were selected to progress through to the tendering stage for major construction, with a decision on the successful contractor expected in October. The entire build is scheduled to be completed by late 2025.
Construction
Alltype Managing Director Kevin Andrijich (L) with Kwinana Mayor Carl Adams and her team at Alltype’s workshop
From sky walks to smart freeways A Naval Base engineering contractor is looking to spread its wings after contributing to some of WA’s most recognisable structures, writes Stephen Bell
I
f you’ve driven on Perth’s smart freeway or walked on the Kalbarri Skywalk, you’ve encountered the products of one of WA’s more unheralded fabricators. But Alltype Engineering is now coming out of its shell. Earlier this week, WA Works accompanied Kwinana Mayor Carol Adams and her team in touring Alltype’s 7000 square-metre workshop at Naval Base to celebrate 35 years in business. And last month Alltype’s parent — ASX-listed WestStar Industrial — said its subsidiary is well positioned for this financial year having secured about $7 million of new work, including contracts with Primero and the Kwinana Waste-to-Energy plant. Despite the recent wins, and its ongoing employment of 120 people, the company had “probably flown under the radar” in terms of its industry profile, Alltype Managing Director Kelvin Andrijich said. “Our aim is to become better known, especially for our site capability” Andrijich said. Thousands of Perth commuters drive past the company’s handiwork each day on the ‘smart’ section of Kwinana Freeway south of Canning Bridge. The huge steel gantries are hard to miss — they overhang the freeway to house digital information such as speed limits and closed lanes.
They were also built to last, with the steel being selected to “almost aerospace quality control standards”, according to Andrijich. Alltype also fabricated the twin cantilevered walkways for the Kalbarri National Park Skywalk that projects 25 metres and 17 metres beyond the West Loop gorges. They were manufactured from high strength architectural Corten plate and steel components that have long lead and technical assembly and welding requirements.
“Our aim is to become better known, especially for our site capability” The eye-catching structures were opened mid-year and already have been trodden on and photographed by thousands of tourists and locals alike. They were also fabricated in Alltype’s
workshop. It was built in 2011 and now contains an automated processing bay, including a Python Coping Robot that cuts, drills and copes steel. Andrijich said the company is now fabricating and constructing an above-ground gas offtake, metering and custody transfer facility for energy infrastructure company APA Group. APA is building a 79 kilometre-long lateral gas pipeline from its Goldfields Gas Pipeline that will connect to Kalium Lake’s Beyondie sulphate of potash project in the Pilbara. Alltype also recently secured a new contract for process piping fabrication works from Primero Group for Fortescue Metals Group’s WHIMS project at the Christmas Creek iron ore hub; and a job for fabricated structural steel and modules at the Kwinana Waste-to-Energy project amongst others. Once a significant contributor to the upkeep of Defence’s HMAS Stirling naval base and vessels at Garden Island, Alltype is also looking to “get more visibility” in the defence sector, Andrijich said. “We’re keen to re-establish those links.” Meanwhile, the contractor is keeping its eye on the supply of labour as more work comes in. In the midst of the COVID-19 lockdowns, Alltype received 200 applications for a single advertised position. Just recently, however, an advertisement for a new position drew just ten applicants, none of them with the skills needed — a reflection of the uptick in resources and public infrastructure work. Alltype filled the role subsequently and has been able to hold the position. “In contracting, everyone is monitoring the labour issue at the moment,” Andrijich said. The company employs about nine apprentices at Naval Base and is actively looking for electrical apprentices.
Spring 2020 WA WORKS 41
ICNWA Update
Fortescue iron ore train
A new directory and more power for FMG The CCIWA-managed Industry Capability Network WA has enjoyed a busy few months after relaunching its Aboriginal Business Directory WA and listing a major Fortescue energy project on the ICN Gateway website By Stephen Bell
W
irra Hub is encouraging Indigenous enterprises to list on the new-look Aboriginal Business Directory WA to take advantage of attractive State Government procurement terms offered as a COVID-19 stimulus measure. Speaking at a relaunch of ABDWA at business advisory Wirra Hub, General Manager Shane Devitt said the register was now integrated with the CCIWA-managed ICN Gateway web platform, making it even more useful for businesses looking for work prospects. “It is another channel, another source of opportunity,” he said. ABDWA, which currently has 675 registered businesses, is widely used by procurement entities to find Aboriginal businesses that
42 WA WORKS Spring 2020
may be suitable for project tenders. Devitt urged suppliers on this directory to ensure that their profiles are up to date and use the right key words to be effectively identifiable to potential buyers. He said another reason to register, and update existing profiles, was to take advantage of the temporary streamlining of State Government agency procurement policies enacted last month by Treasurer Ben Wyatt. Wyatt said the Department of Finance would provide a co-ordinated response with agencies to introduce changes to works procurement that includes: • allowing agencies to purchase direct from a local business up to $250,000; • lifting the threshold for public tender processes up to $500,000 when at least one local business is involved; and
• enabling agencies to obtain written quotations — in place of a tender — between $250,000 and $500,000, where one or more local businesses can supply. The changes apply until at least December 31. CCIWA Manager Ray Loh said integrating ABDWA with ICN Gateway meant it was easier for suppliers to participate in the opportunities listed on the site, including major resources, Metronet and Main Roads projects. Loh said the new-look directory was much easier to use and more contemporary than its previous incarnation on the old Project Connect platform.
New regional and Indigenous site “One of the things that we also set up is a site on ICN Gateway specifically for Regional/ Indigenous opportunities in WA,” Loh said. “It enables businesses in ABDWA and regional directories to be notified of new opportunities for them to register an EOI within the portal.” “If you’ve got any work opportunities that you’d like to advertise on these sites, we’re happy to work with you,” Loh said. “I’m talking about government agencies, major project operators or major contractors, for any work opportunities at all for regional or Indigenous companies, please reach out to me,” he said. Ray Loh can be contacted at: ray.loh@icnwa.org.au
ICNWA Update Joint ventures analysed Meanwhile, Jackson McDonald partner Luke Paterson said Aboriginal businesses forming joint ventures with non-Aboriginal parties needed to go into the deals with their “eyes wide open”. A JV basically was a relationship with another person or business. “You can throw as many words as you want, but if the relationship’s broken there is only so much the words can do”, Paterson said. Common complaints from Aboriginal participants in JVs struck during the last mining boom were excessive management fees levied by the other party, lack of planning and an excessive workload for the Aboriginal partner. However, Kim Collard, CEO of office stationery supplier Kulbardi, said his company’s long-term joint venture with Quick Corporate Australia showed how successful a JV structure could be. But he agreed that businesses going into JVs needed to do their due diligence in finding a partner that was both corporately and culturally aligned. “They are out there, but I can tell you it doesn’t come easily — it is a lot of hard work.”
Fortescue kicks off $620m power project Fortescue’s construction of new energy infrastructure is heating up after the iron ore giant listed the first work packages for its Pilbara Generation Project on ICN Gateway. The US$450m ($620m) project will bolster Fortescue’s generation capacity through the inclusion of 150MW of gas-fired power, together with 150MW of solar PV, supplemented by 50MW of battery storage. The new infrastructure, to be built, owned and operated by Fortescue, complements the existing US$250m ($345m) Pilbara transmission project now underway, which consists of 275 kilometre of high voltage transmission lines connecting Fortescue’s existing mine sites. Together, the generation and transmission initiatives form the overarching Pilbara Energy Connect (PEC) project, which will enable low-cost power delivery to Fortescue’s US$2.6b ($3.6b) Iron Bridge magnetite project. According to CEO Elizabeth Gaines, PEC will also link in with the Fortescue Hive — the company’s expanded and upgraded remote operations centre in its East Perth headquarters. The Hive will “underpin our future use of technology, including artificial intelligence and robotics and will expand to include the generation and integrated distribution network for Pilbara Energy Connect, our hybrid solar-gas power solution,” Gaines said at the Hive launch in June. Pilbara Energy Connect: • leverages Fortescue’s existing gas pipeline and latent generation capacity at the Solomon Power Station; • will provide Fortescue with a hybrid solar-gas energy solution;
• enable Fortescue to supply additional power to be delivered to its mine sites; and • supports the incorporation of additional large-scale renewable energy in the future.
The scope The generation project will require the: • establishment of a thermal power station to connect to the existing Solomon Power station; • establishment of solar PV generation to produce power and connect to the transmission network; and • establishment of a Battery Energy Storage System to connect to the transmission network. Construction activities for the thermal project were scheduled to begin last month, while solar generation work is slated for April 2021, and battery energy storage in June. “In line with Fortescue’s commitment to supporting local WA communities, requirements relating to the engagement of local and Indigenous vendors will be included in the selection criteria for Pilbara Generation Project tendering opportunities,” the company says. To view the listing and the initial work packages, go to gateway.icn.org.au or contact ICNWA manager Ray Loh.
Register with Decmil for Stephenson Avenue Decmil is seeking registrations from local suppliers as part of its response to Main Roads’ expressions of interest (EOI) process for the $125m Stephenson Avenue extension project. The Perth-based engineer wants to hear from experienced companies able to provide civil and road formation capabilities with local suppliers and supply chain partners who are interested in participating. Companies and businesses who register on the ICN Gateway listing are in the running to be included in the final list of potential tenderers. Decmil says it will assess all supplier expressions of interest and choose a short list prior to issuing an invitation to tender.
On the new web page, Decmil says it is responding to Main Roads’ EOI for the Stephenson Avenue extension, which is the first part of the City of Stirling’s broader plan to transform the Stirling City Centre. The road project area is bounded by Karrinyup Road, along Cedric Street and Ellen Stirling Boulevard to Scarborough Beach Road. The project scope of works includes a Stephenson Avenue grade separated interchange, bridge over Mitchell Freeway and Joondalup Railway line, and a bridge over the Sarich Court Connection. The general scope items and indicative quantities of the proposed contract are available on the listing, but include items such as cranage, concrete supply, storm water drainage, piling and landscaping. The Stephenson Avenue extension project started in August after local contractor Densford Civil was named as the preferred tenderer for the initial works in the Osborne Park area. This phase, which will see the road extended from Scarborough Beach Road to Sarich Court, including new connections to Ellen Stirling Boulevard at Howe Street and Oswald Street, is managed by the City of Stirling. The second stage is due to begin construction early next year under the management of Main Roads.
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Construction
44 WA WORKS Spring 2020 Artist impression of Blackburne’s One Subiaco development
Construction
A more salubrious Subi The start of construction at a new luxury apartment project in Subiaco is evidence of a strong residential construction market, but the commercial side of the industry is still struggling, says Multiplex By Stephen Bell
W
hen giant contractor Multiplex broke ground last month on its latest Perth construction project, hundreds of Subiaco baby boomers would have celebrated with a collective cheer. After two years of planning, approvals, and off-the-plan sales, the $300 million One Subiaco development of the old Pavilion Market site was finally starting to take shape. Multiplex has a $130m contract with developer Blackburne to deliver the Hames Sharleydesigned residential and retail complex, set to become a landmark for the ongoing rejuvenation of the tired-looking core of the western suburb. One Subiaco, on the corner of Rokeby and Roberts Roads, is the poster child for this hoped-for revival, which gained new urgency after 2018 when AFL football moved to Optus Stadium (another notable Multiplex project). The two other big Subiaco projects, both steered by the State Government, are the $128m Bob Hawke College on part of the old Subiaco Oval site, where Stage 1 opened in February; and the $227m Subi East project aimed at attracting developers to the Princess Margaret Hospital site. But for the time being all eyes are on One Subiaco, which was more than 80 per cent presold by the time construction began, according to Blackburne Managing Director Paul Blackburne.
Speaking at the official sod-turning ceremony in front of Premier Mark McGowan and other dignitaries, Blackman said local Subiaco residents and businesses had “got behind” the project, which includes 245 apartments. More than 60 per cent of the buyers were the “baby boomers of Subiaco and Shenton Park”, he said. The project consists of three buildings, with the 24 storey tower offering views to the city, King’s Park, the Swan River and the ocean. The ground floors are set aside for a retail area including shops, cafes, bars and restaurants. Residents will have access to a 19.5 metre by 4.5 metre rooftop pool, cabanas, BBQ area, urban orchard, gardens, fitness centre, sauna, private dining room and cocktail lounge.
Up in the air Multiplex WA Managing Director Chris Palandri singled out the pool as one of the construction challenges lying ahead for the contractor. “The pool is sitting up in the air — it is always challenging putting a swimming pool up on the podium,” he told WA Works on the sidelines of the ground-breaking ceremony. “One, you want to make sure that it doesn’t leak, which we are very good at. And it also creates a lot of weight, so there’s an engineering challenge there. >
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Construction
> “We are actually building three buildings at once, and there is a basement that goes into the water, so we are doing top-down construction in a certain part of the building. “We’ll be building the ground floor slab, then excavating underground and we go into the water very early in the piece,” he said. By late August, Multiplex had let about 75 per cent of the supply contracts, having gone through an early contractor involvement process with Blackburne for the last year. The remaining subcontracts were expected to be finalised as WA Works went to press. “We canvassed the market widely to make sure everyone had an opportunity to price the project,” he said. Major construction, which followed early works on service relocations and test piling, was due to begin on September 18. The construction workforce will peak at about 320 people for the two-year project. Palandri anticipates that 100 per cent of the people working on it will be West Australians.
The nick of time “Starting this project has come just in the nick of time — it is very important for Multiplex and very important for subcontractors and it does create a lot of growth and opportunity,” he said. Despite the hot housing market, the commercial building market is “not going that well” and remains “quiet”. “If you stood down at Elizabeth Quay, you’d think it wasn’t,” he said, referring to Multiplex’s ongoing $360m contract to build the Chevron office towers at One the Esplanade for Brookfield. “But that’s about the only big commercial project that is going on in WA,” Palandri said. “Think about what’s happened over the last few years, taking the State Government as an example. “They did the stadium, they rolled onto the museum and they did a couple of other big projects, and they’ve all finished.
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“They’ve put a lot of stimulus into roads, tunnels and rail, bridges and the housing market, but the commercial building market has missed out,” he said. “For the industry, at the big end, there is not a lot of commercial building going on. “There are lots of projects starting, but the big test for the industry and the market will be early next year,” he said. Multiplex’s current project portfolio consists of: • Blackburne’s $300m One Subiaco (Multiplex contract value $130m) • Oryx Community’s Queenslea aged care facility in Claremont • Brookfield’s $800m Chevron Towers at Elizabeth Quay ($500m) • The WA Museum fit-out • AMP Capital’s $800m Karrinyup Shopping Centre expansion ($525m) “Karrinyup is one of those projects that has benefited from COVID,” Palandri said. “Because when they shut down the shopping centre for a period of time, there was no-one around and we kept building, and some of the work we had to do inside the existing centre — we could do it all day and night. “Karrinyup has got a wriggle on as a result.”
Where to next? Multiplex is also hoping to be involved in Blackburne’s next big venture, the $360m The Grove Residences project in Claremont, where construction is pencilled in for next autumn. “Hopefully that will be sold out by Christmas,” Blackburne said at the One Subiaco opening. “And we start construction in March, hopefully with Multiplex.” The project features will include a range of large, one-to-six bedroom residences with 51 designs by Blackburne in conjunction with MJA studios. It will also boast “6-star” resort-style facilities including a 30 metre heated pool, 220sqm gymnasium & yoga studio, European-inspired
thermal bathhouse, sauna, steam room, poolside private dining room, luxurious residents lounges and high-tech golf simulator. The project, on the border of Peppermint Grove, Cottesloe and Claremont at 1 Airlie Street, is the site of the old Sunset nursing home. Multiplex is working with Blackburne on The Grove under an early contractor involvement process. Palandri said demand for these types of luxury residential projects was “strong”. “The western suburbs, and many suburbs in WA, are starved of housing variety,” he said. “You can buy a quarter acre block, if you feel like it, in Peppermint Grove, but if you don’t want a quarter acre block, you can’t buy an apartment.” Nedlands, another prime western suburb, had similar restrictions. A person may have been living in the suburb for decades and was now seeking to downsize to an apartment, but “you can’t do that — you’ll have to move out of Nedlands”, he said.
A small pipeline of hope While the Perth commercial construction market remains quiet, Multiplex points to a small pipeline of projects that could help improve conditions next year. Murdoch University’s new academic building, involving the construction of WA’s largest mass engineered timber building, will likely get off the ground, Multiplex WA Manager Chris Palandri believes. The building would kick off a five-year program of works at Murdoch that includes plans for a vertical campus in the Perth CBD, and energy project to install a 5.7MW solar PV system on the South Street campus. Meanwhile, the State Government has short-listed four builders to progress to the final tender stage of the proposed $256.7m expansion of the Joondalup Health campus. And Lendlease has already started on its $365m Naval accommodation building works at the HMAS Stirling Naval Base. “There is a little pipeline of work,” Palandri said. “The risk is that some of those developments won’t proceed. “We won the timber building for Murdoch University, but they’ve asked us to hold for the moment while they get their funding and finance together.” “So there’s that side of things, and then there’s the other side, where developers have got more of the pieces of the puzzle solved, like One Subiaco, and are able to get on with these projects. “The market could be a bit busy next year, but my crystal ball will be less fuzzy in April.”
Infrastructure
Kwinana is the port of call It is one of the more politicised infrastructure projects and some of its economic assumptions have been questioned. But building a new $4.7 billion container port later this decade at Kwinana could set WA up for the next century, the State Government says
By Stephen Bell
T
he long-awaited arrival of the Westport taskforce’s final report outlining the long-term solutions for Perth’s future freight needs didn’t contain many surprises. Released in August after two years of studies and consultation, the final report recommended a land-backed port be built in the Kwinana Industrial Area — an option long favoured by the State Labor Party. Colin Barnett’s former Liberal-National coalition government, in contrast, launched its freight solution — the $450 million Roe 8 highway project — in late 2016. The McGowan Government scrapped Roe 8 after its landslide election win in March 2017 and established Westport to investigate freight needs and port options in September of the same year. Westport’s recommendation to build a Kwinana port — it ruled out Bunbury as a location early in the process — could spell the end of Fremantle as the State’s major container port from early next decade. According to Westport, the new port would cost an estimated $4-4.7 billion, depending on how fast container cargo is shifted from the Fremantle to the new location. The cheaper option, in which Fremantle and the new port split the container business before
transitioning all freight to Kwinana over time, would cost $4b. The $4.7b option involves moving all freight from Fremantle to Kwinana in “one step” by 2032. Both choices involve building the new land-backed port in Kwinana, serviced by an upgraded Anketell Road freight route. Premier Mark McGowan said it was “imperative that we plan for Perth’s long-term future, beyond the capacity limits of Fremantle Port and its road and rail links”. “Fremantle Port has served our State for the last one hundred years, it’s now time to plan and build the next big piece of economic infrastructure that sets our State up for the next century.” Westport Chair Nicole Lockwood said Kwinana made sense as the as it would accommodate rail and road links to move heavy container traffic around the city away from the suburbs. “Westport’s job now is to work very closely with industry, interest groups and affected landowners to achieve the best possible outcomes in relation to land use, the environment in and around Cockburn Sound, job-creation and economic growth, and outcomes for Aboriginal people and the general community,” she said.
Fremantle Port, albeit significantly below capacity today, may not sustain WA’s container trade beyond the next 20 years. “It is therefore a prudent step from the State Government to do some preliminary planning work on such an important issue,” he said. “At the same time, CCIWA looks forward to the Westport Taskforce sharing modelling that outlines evidence on the merits of a new port. CCIWA is particularly keen to see scenario modelling of the costs of trade borne by the business community under alternative levels of future container trade.” Morey said key assumptions made by the taskforce include trade volumes increasing by a factor of five, and WA’s population exceeding five million. “If these and other projections do not eventuate, there is a significant risk that the cost of using a new port will be higher for the business community,” he said. “Although there will undoubtedly be cheerleaders for this project, it remains critical to our Members that a sober assessment is made of whether costs of trade will be lower or higher under an alternative port option.” “We are currently in one of the most uncertain periods of our economic history. As such, it is vital that government continues to update its forecasts for future container trade and evaluates potential costs of trade for the business community as part of developing a business case, and takes a cautious approach to future decision making on the Westport project.” The Westport Taskforce’s final report is available at: transport.wa.gov.au/projects/ westport.asp
The view from CCIWA CCIWA Chief Economist Aaron Morey said
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Infrastructure
Breaking bureaucracy In an exclusive interview with WA Works, inaugural Infrastructure WA Chairman John Langoulant explains how he will try to cut red tape and take some of the political heat out of infrastructure planning
By Peter Milne
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t company meetings, workers can be loath to identify a problem in case they leave the room with the responsibility to fix it. On a much larger scale, veteran WA public servant and businessman John Langoulant made that mistake with WA’s $6 billion-a-year infrastructure budget. Langoulant, in early 2018, delivered to the McGowan Government his inquiry into the spending on projects by the previous Liberal Government.
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Last July, he became the inaugural Chair of Infrastructure WA, an entity that was his report’s first recommendation. “In WA, we so often fall into the trap of the short term: limiting our thinking to the next financial year, next economic upswing, the next election,” Premier McGowan told Parliament when IWA was established. To guard against that limited outlook, IWA will deliver the State’s first 20-year infrastructure strategy mid next year. The plan will provide detail for the first 10 years and outline the second decade with a broader brush. The strategy will focus on what State
Government departments and entities such as the Water Corporation, Synergy and Western Power build. Langoulant said IWA could disagree with projects already announced by the Government, such as WestPort, but “we’d have to have a damn good reason.”
Lessons from the boom The resources boom showed the need for long-term planning. “In the Pilbara at the time when mining industries were building Gorgons and were developing iron ore capability inland and at the port, along we come and decide to develop Karratha, right at the time when labour was just red hot,” he said. “We kept building … when everyone said if you had a heartbeat, you’d get a job.” Langoulant said a plan similar to what IWA will produce would have identified the massive demand for accommodation in the north as early as 2004 and allowed the Government to move earlier. While IWA’s principal role is to plan Government infrastructure, it is the private sector that often drives the demand, such as during the resources boom, and it is the private sector that delivers the infrastructure. For that reason, the number of government employees on the IWA board cannot exceed those from the private sector.
Infrastructure
Artist’s sketch of the new Bayswater Train Station. Image courtesy State Government
A lesson in cutting red tape
Whichever party is in power late next year in required by the Infrastructure WA Bill to respond to the strategy within six months of receiving it and explain why it does not fully support any of the recommendations. Then within three months of each State Budget, the Government of the day must prepare a 10-year State Infrastructure Program. IWA will refresh its infrastructure strategy at least every five years, and the Government will update the infrastructure program annually.
Getting it right in the regions The scope of the strategy goes beyond the traditional connectivity infrastructure of road and rail to include other State expenditure such as hospitals and courts, with a strong focus on the regions. “If we’re going to see this State develop… and see the regions grow, we’ve got to give those people who want to live in the regions the same opportunities and service delivery as here (Perth),” Langoulant said. Coordination is critical, including looking well beyond the end of construction. “Royalties for Regions was one of those classic cases where the planning was five minutes ahead of the delivery of the service, and as a consequence, you ended up with facilities which didn’t have an operating budget.” Langoulant also wants development in regions to move at a steadier pace that gives a chance for local contractors to be economically
sustainable, “rather than just having construction companies come into regions, build the infrastructure and then leave town.” One lofty goal of McGowan’s is to make infrastructure decisions “on robust and evidence-based planning, and not on short-term political gains.” “Were a liberal democracy, you’re never going to take politics out,” Langoulant said. However, he thinks the ten-year program of works will support a better debate come election time, with both sides having to name what comes out of the plan when they make additional promises. Better planning will also help WA secure a greater share of Commonwealth infrastructure funding.
Langoulant said a lesson from the need to respond rapidly to COVID-19 this year was that “we’ve got plenty of red tape.” “What these sorts of times have done is alerted us to how do we get things out of the way, so we actually get on and get things done.” Since releasing a discussion paper in July, IWA has held workshops across the State to hear the priorities of different regions and industry sectors. Key themes included transport, telecommunications, energy, industry, and governance. Langoulant said while some vital infrastructure, such as telecommunications and air flights, were not controlled by the Government, IWA could still identify gaps. “We can’t solve every problem, but we’ll be shining a light on them.” The formal consultation process is closed, but IWA encourages any business with thoughts on what infrastructure is required, how it should be delivered, or red tape to cut, to propose it through their industry associations. And, yes, Langoulant has watched the ABC comedy Utopia about the fictional Federal Government National Building Authority. “It’s close to home,” Langoulant said. “Whoever does the scriptwriting has obviously worked in large organisations.”
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Infrastructure
The South West road to jobs A giant South West bypass road conceived in the 1970s has finally moved into the execution phase, and Main Roads is seeking help to build it By Stephen Bell
A
consortium led by one of the world’s biggest infrastructure companies, Spain’s Acciona, has been chosen to build the long-promised $852 million Bunbury Outer Ring Road. But the State Government insists that thousands of small South West businesses will still get a decent piece of the action on the three-year construction project after Main Roads was granted a $300 million target to engage local subcontractors. Southwest Connex — Acciona, NRW Holdings, MACA, AECOM and Aurecon — was named in August as Main Roads’ preferred proponent to design and build WA’s biggest road project.
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A contract award was expected in September for the $852m Bunbury project, while construction will kick off in early 2021, pending environmental approvals. Works are expected to be completed in early 2024. Main Roads is participating in a new Local Business Advisory Group, which aims to achieve the $300m local spend target via “regional preferencing”. The group includes the South West Development Commission, the Bunbury Geographe Chamber of Commerce and Industry, and the Civil Contractors Federation, along with representatives from local contractors and businesses, local government and the project’s Aboriginal Participation Advisory Group.
BORR’s target for Aboriginal employment is equivalent to 60 full-time positions over the life of the project, while the advisory group will confirm “additional minimum targets” for business spend and number of contracts awarded to Aboriginal businesses.
Spreading the work Main Roads also believes local sub-contractors will benefit from “measures being explored to minimise the costs of tendering, reduce risk exposure and maximise the spread of work among small and medium-sized businesses”. “It is anticipated that local businesses will be involved in sustainably sourcing materials, processing and recycling waste from the project, and providing traffic management and other ancillary services during construction,” a spokesperson said. WA Transport Minister Rita Saffioti says setting a local content target of 50 per cent of the $600m civil construction cost is an incentive for
Infrastructure
The Forrest Highway, on the outskirts of Bunbury
local businesses to get involved in the project. “The Local Business Advisory Group is a great example of collaboration to achieve shared goals and I applaud all of the member organisations and representatives on their initiative,” she said in a statement to WA Works. Businesses seeking work on the project are encouraged to register via the Information Centre — BORR Expression of Interest section at www. swdc.wa.gov.au.
Crushed Rock Base Meanwhile, commercial negotiations are underway to finalise local contracts for the supply of initial quantities of crushed rock road base, Main Roads says. Both granite and basalt will make up the base, with one supplier in the northern section and one in the south. The crushed rock basecourse will form the layer of material immediately under the bitumen seal layer, providing the primary strength and durability for the road. Once confirmed, the contractors will start to quarry, crush and grade the crushed rock to enable an immediate start to works when construction gets underway early next year.
NRW building capability The BORR announcement marked a milestone in NRW’s evolution to an Australian Tier One contractor, “and specifically our desire to build a large delivery capability across the government infrastructure works sector,” NRW CEO Jules Pemberton said.
to Bussell Highway at Gelorup. It includes grade-separated interchanges, rail and river crossings and 20 kilometres of new and upgraded local government roads. Main Roads says the key benefits of the road are: • it will save up to 15 minutes travel time by avoiding 13 traffic signals and a level crossing;
“Setting a local content target of 50 per cent of the $600m civil construction cost is an incentive for local businesses” “The recent acquisition of BGC Contracting, together with our existing capability in civil construction, has both significantly accelerated and enhanced our ability to participate as a large construction partner in public works projects,” he said. Perth-based NRW, a 40 per cent partner in the Alliance, said the BORR project scope included the investigation, design and construction of 27 kilometres of four-lane, dual carriageway, rural highway connecting Forrest Highway at Australind
• local roads will be safer, with a significant number of trucks removed; • improved access to Bunbury Port — strengthening Greater Bunbury’s position as a regional industrial hub for the South West; and • deliver more opportunities for tourists to discover the South West. The project is fully-funded, with the State Government allocating $170.4m (20 per cent) and the Federal Government $681.6m (80 per cent) for its construction.
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The Big Picture A question of perspective: it may look like a conveyor belt or perhaps a centipede-like robot. But rotate the image 90 degrees and it becomes an access ladder inside one of Alinta’s giant wind turbines at the $400 million Yandin project in the Mid West. Photograph: Jason Thomas
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A
n upgrade of mostly defence-related infrastructure at the AMC heads the State Government’s splurge on new port facilities, with defence industry giant BAE Systems among the beneficiaries. Part of the McGowan Government’s COVID-19 recovery plan, the $87.6 million AMC investment aligns with recommendations in a draft infrastructure plan for the shipbuilding and industry hub — at Henderson in Perth’s south. Tipped to create up to 600 local jobs, the AMC spending will include a major wharf extension and upgrade, the design of a new finger wharf, a new vessel transfer path, three road intersection improvements and a new shipbuilding hall. The extension to AMC Berth 1 will enable the facility to accommodate all Naval vessels, including Anzac frigates, Arafura offshore patrol vessels, and the future Hunter frigates, the Government said. The design also includes a new finger wharf to support Collins and Attack submarines,
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and the capacity to support larger classes of naval vessels; while the vessel transfer path should improve connectivity between the floating dock and the various shipbuilding and sustainment facilities, including BAE Systems, AMC and Civmec.
“This sort of collaboration will help position Western Australia for future, highly-complex ship maintenance and upgrades. “Major defence projects and the investment in critical infrastructure is a catalyst for economic growth, providing valuable jobs and
“Major defence projects and the investment in critical infrastructure is a catalyst for economic growth” BAE cheers upgrades BAE Systems, which runs Defence’s $2 billion Anzac Midlife Capability Assurance Program out of its Henderson shipyard, welcomed the State Government’s “investment in infrastructure in maritime sustainment”. “Industry and government have invested heavily in maritime sustainment in recent years,” a BAE spokesperson told WA Works.
opportunities for our Australian ecosystem of small and medium-sized companies,” she said. Enhancing infrastructure and support services would also improve the efficiency of ‘in water’ sustainment work and provide opportunities to accommodate higher sustainment volumes within the AMC, she said. BAE has a long history of upgrading the Anzac class frigates at Henderson.
Jobs boost from
AMC upgrades Defence heavyweight BAE Systems has welcomed a planned investment in new port infrastructure at the Australian Marine Complex at Henderson, writes Stephen Bell
HMAS Anzac departs Fleet Base West for sea trials. Photo: BAE Systems
In the last decade the UK-based company has invested about $70m in its local facilities, including the installation of additional hard stands, ship transportation rails, and support infrastructure and equipment. “We will continue to drive productivity and efficiency improvements across our local maritime sustainment operation, investing in facilities and capabilities that optimise performance and provide best value for our customers,” the spokesperson said. Meanwhile, the new shipbuilding hall in the northern shipbuilding precinct of the AMC will help activate underutilised waterfront land to support commercial shipbuilding and sustainment, according to the State Government. The infrastructure boost demonstrates WA’s commitment to securing more Federal Defence work, such as Collins class submarine Full Cycle Docking, according to Defence Issues Minister Paul Papalia. “The State Government is fast-tracking these projects to ensure we have the infrastructure in
place to meet the needs of Defence and continue to enhance the AMC’s reputation as Australia’s key defence industry hub,” he said.
The ports Outside the AMC, WA ports and harbours will benefit from $158.8m worth of improvements, however the sum includes previously announced spending on an LNG bunkering hub in the Pilbara, works at Geraldton Port, and the Turkey Point access bridge at Bunbury. The bigger of the new port projects are: • $51.2m for the Nelson Point tug haven for retaining and sheet pile walls; • $31.3m to resurface and upgrade the stockyard area, for structural repairs, electrical upgrades and a new clinker storage facility at the Kwinana Bulk Terminal; • $20m for Port Hedland’s Inner Harbour for retaining and sea walls; and • $10.2m towards priority works at Esperance Port to increase import and export capacity; A further $3.8m has been committed to
prepare a feasibility study for upgrades and new infrastructure at the Bunbury Port and Kwinana bulk terminal to support the possible reopening of the Greenbushes rail line to carry lithium concentrates from the Talison mine. Ports Minister Alannah MacTiernan said investing in publicly-owned port infrastructure was critical to maintaining and expanding the State’s export industries. “We are a trading State, and our economic prosperity relies on our ports: iron ore, gas, grains, alumina and woodchips are driving our export opportunities and underpinning employment,” she said. Beyond the ports, a further $100m was pledged for several industry developments, including $20m towards a robotics and automation physical test facility — part of a 94-hectare precinct north of the current Neerabup industrial estate; The others include separate $7.5m investments at both the Kemerton Industrial Park near Bunbury and the Bentley Technology Park in Perth.
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Defence
The Space Surveillance Telescope. Photograph: Defence
Eyes on Exmouth space job Local companies will have a chance later this year to participate in Defence’s newest WA space venture — an upgrade of a critical surveillance telescope near Exmouth, writes Stephen Bell
I
t may not be the biggest project on the Department of Defence’s ‘to do’ list, but a telescope refurbishment near a WA holiday spot is vitally important to the safety of the nation’s growing number of strategic satellites in orbit. Defence Minister Linda Reynolds recently announced an $87 million investment in the joint US-Australian Space Surveillance Telescope (SST) at the Harold E. Holt naval communications station on the tip of the North West Cape — a part of the State better known for tourists swimming with whale sharks than military assets. This sophisticated optical instrument, a symbol of US-Australian cooperation in space, now needs some tender loving care.
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“The telescope uses three large mirrors that periodically require a new coat of aluminium to maintain performance,” Reynolds said during a recent tour of the Harold E. Holt station. “This investment will be used to build a new mirror recoating facility and sustain the telescope through to the middle of 2025.” A Defence spokesperson told WA Works the investment will also cover local site management at the SST and initial funding for operations and sustainment once the telescope is completed in 2022. The new capability would enable the mirrors to be re-coated on site, ensuring the telescope maintained “optimum performance with minimal downtime as the mirrors will not need to be
shipped overseas for re-coating”, she said. Subject to Parliamentary approval, the project would also seek to maximise local companies, through Defence’s Local Industry Capability Plan. “An approach to market is expected in late 2020 with construction planned to be carried out from late 2020 and continue through 2021,” the spokesperson said.
Space debris Reynolds, meanwhile, said the telescope upgrade is part of the $7 billion Defence Strategic Update and Force Structure Plan over the next decade. “This world-leading, 360-degree telescope enables Defence to better track and identify objects and threats in space including space debris, as well as predict and avoid potential collisions,” she said. “This Government recognises the importance of developing technologies locally to protect our space assets and offering opportunities to export these space capabilities to our allies and international partners.
Defence
A re-dedication ceremony in 2017 at the Harold E. Holt station, home of the SST. Photo Defence
“Our national security, industry and population rely on satellite communications to connect businesses across the country, and around the world,” she added. Construction of the mirror coating facility is the latest spending on the cutting-edge telescope, which was moved in 2018 from its previous home in New Mexico, USA, to Exmouth.
and tracking objects — such as space junk — in near space. Defence’s estate and infrastructure group handed over the $97.2m SST support facility, including a 270-tonne rotating dome enclosure, in May last year to the Defence Capability Acquisition and Sustainment Group (CASG). After capturing its first images of space in
“Telescope enables Defence to better track and identify objects and threats” The design and manufacture of the track and bogie mechanisms for the telescope dome was undertaken by Perth-based Hofmann Engineering, while Fremantle-based L3 Oceania helped with transport logistics and technical aspects. The US was responsible for the $80m relocation while Australia agreed to the construction role. Exmouth was chosen because it has an ideal combination of favourable weather conditions, minimal light pollution, access to utilities and site accessibility. The SST has one of the widest fields of view in the world and is excellent at identifying
April this year, the telescope will undergo extensive testing, and is expected to be fully operational in 2022.
Building WA’s space capability Minister for Industry, Science and Technology Karen Andrews said the SST investment would build on the already strong space capability in WA. “WA has knowledge that is in demand right around the world, including NASA which is interested in the automation and robotic skills that have been developed and honed in our mining industry,” Andrews said.
“By investing in our space capability, we are enhancing our nation’s reputation as a trusted global partner, which will be central to our goal of tripling the size of the space sector to $12b and creating an extra 20,000 jobs by 2030. “It’s also about investing in technologies that have return benefits for other industries, whether it be mining, agriculture or advanced manufacturing.” Defence Industry Minister Melissa Price, meanwhile, said Defence would provide opportunities to grow the Australian space industry through its space domain awareness project. “Space is a truly global endeavour and Australia is now looking to make a strong contribution to space safety and security using home-grown technologies and systems,” Price said. “Defence will continue to work alongside Australian industry, including in regional Australia like right here in Exmouth, to develop world-leading technologies.” “Supporting cutting-edge technology development will allow Defence to participate more actively in space activities and do more to monitor and protect our vital space systems from threats,” she said.
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Policy Corner
Louise Thomas
Over 40 recommendations to spur innovation and investment CCIWA’s 2020-21 Pre-Budget Submission calls on the State Government to develop an overarching manufacturing industry 4.0 strategy and make it easier for businesses to bring new technologies to market, writes Louise Thomas
S
ix out of seven WA jobs are created by business. WA relies on business investment for a thriving society. If we want to grow our economy and create more opportunities for future generations, we need policies that allow WA businesses to be more innovative and that encourage investment. CCIWA’s 2020-21 Pre-Budget Submission has been lodged with the State Government. It outlines more than 40 recommendations which, if adopted by the State Government, will build a more exciting and dynamic economy. Several of our recommendations focus on what can be done to make it easier for businesses to invest in new technologies and bring them to market. We are calling on the State Government to develop an overarching manufacturing industry 4.0 strategy, pilot a regulatory sandbox, drive down energy costs, and lead a strategic push into global markets.
Power up manufacturing WA has a host of manufacturing businesses focused on niche products. Greater adoption of Industry 4.0 technologies like Computer Numerical Control, laser beam welding and 3D printing could see these businesses capture
greater global market share and grow jobs. To power up our manufacturing sector the State Government should establish an overarching manufacturing Industry 4.0 strategy, focused on accelerating the adoption of I4.0 technologies. Specific initiatives should focus on facilitating the transfer of knowledge to local firms and networking opportunities, as well as an online portal that consolidates information on government incentives and programs.
Pilot a regulatory sandbox One of the barriers to the application of new technologies is that they may not fit neatly into regulatory frameworks. According to a recent survey by CCIWA, of the businesses that had a view on the issue, 93 per cent indicated that government regulations that are not fit-for-purpose hinder innovation and investment in new technologies. As a result, some sectors have struggled to capture the benefits that disruptive innovation could deliver for the economy. Even before the pandemic, the rate of R&D expenditure and market entry in WA were at historically low levels. To overcome this, one of our key pre-budget submission recommendations is for the State Government to pilot a regulatory sandbox as
an opportunity to propel innovation and investment in emerging technologies.
Drive down energy costs WA businesses are facing rising cost pressures that act as a barrier to investment and growth. Around 75 per cent of businesses surveyed by CCIWA prior to the pandemic agreed that enhancing competition among energy providers to drive down power prices would help their business to invest and grow in the next five years. The WA Government should lower the retail contestability threshold and allow small and medium-sized businesses in the South West Interconnected System to choose their electricity retailer, so that competition will drive a sustainable reduction in energy costs for those businesses.
Reduce the tax burden on business WA relies on international capital more than any other state. If we want to grow our economy, we need a more competitive tax system, particularly as competition for international capital intensifies post COVID. The State Government should signal it is prepared to identify ways to reduce the tax burden on business and be open to exploring transitioning from stamp duty to broad-based land taxes.
A strategic push into global markets Some countries will be reticent to re-engage with global markets once COVID19 begins to fade. There is a significant opportunity for Western Australia to fill this vacuum. However, without a strategy, our efforts to re-integrate into the global economy will be reactive and opportunistic, and we will fall behind countries that take the initiative. As it currently stands, there is a low level of international awareness about medium-to-large scale commercial investment projects in WA. CCIWA recommends that the WA Government make an aggressive and strategic push into global markets by developing a global re-engagement strategy that frames our State’s overall goals for trade and investment. To read our full position visit statebudget.cciwa.com Louise Thomas is CCIWA’s strategic industry policy adviser.
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Defence
Sign up for Defence work The Federal Government will spend $2.5 billion over the coming decade on refreshing and redeveloping Defence facilities in WA, including several key air force assets By Stephen Bell
W
hether it’s in the outback or off the Perth coastline, there’s plenty to choose from in the Federal Government’s latest grab-bag of promised defence work stretching over the next decade. The facility upgrades, part of the Morrison Government’s 2020 Defence Strategic Update, will include Irwin Barracks, Defence Establishment Harold E Holt, RAAF Base Curtin, RAAF Base Pearce, RAAF Base Learmonth, Campbell Barracks, Yampi Sound Training Area and HMAS Stirling. The investment will include redevelopment and expansion of HMAS Stirling in support of the Collins and Attack submarine programs, Hunter frigates, and Arafura offshore patrol vessels, the Government says. Money will also be invested to “harden” the State’s northern airbases, such as Curtin in the Kimberley and Learmonth in the Pilbara. The promised WA investment is a small fraction of the record $270 billion in Defence capability and infrastructure spend across Australia in the next 10 years. However, Defence Minister Linda Reynolds noted that her department invested $1.4b in WA in the 12 months to March 2020, including: • the sustainment, upgrade, maintenance and support for the Anzac frigates, supporting 205 jobs; • operation of the C-band radar and space telescope at Exmouth supporting 215 jobs; and • the delivery of fast jet flight training at RAAF Base Pearce supporting more than 185 jobs And the Government is already progressing. the build of up to 45 naval vessels in WA at Henderson, which over the decade is expected to support 700 direct jobs in the build phase, she said. These include: • 10 Arafura OPVs; • 6 Cape patrol boats; • 21 Guardian Pacific patrol boats; and • up to eight mine hunters and hydrographic survey vessels. From a strategic perspective, the national update reflects the faster-than-anticipated regional changes since the Defence White Paper was released four years ago, alongside the uncertainty generated by COVID-19. “While the long-term impacts of the coronavirus pandemic are not yet clear, it has
deeply altered the economic trajectory of the region and the world with implications for Australia’s prosperity and security,” Defence says. The strategic update provides three key objectives: • shape Australia’s strategic environment; • deter actions against Australia’s interests; and • respond with credible military force, when required.
New $70m wharf project for HMAS Stirling As part of its commitment to marine sustainment, the Federal Government recently sought expressions of interest from contractors to design and build a $70 million extension of HMAS Stirling’s Oxley Wharf. The upgrade, expected to be complete by 2023, will support the Royal Australian Navy fleet, including the future frigates and offshore patrol vessels. The construction brief includes: • an in-line, 138 metre long by 25m wide wharf deck supported by tubular steel piles; • one mooring dolphin at the end of the wharf extension with walkway access; • access and egress including turn around points for safe movement and operation of a 12.5m long heavy rigid design vehicle and a 100 tonne mobile crane; • cathodic protection; and • a structural design life of 100 years. Defence is also seeking wharf services, including:
• installation of firefighting, potable water and electrical (lighting) mains along the extent of the wharf; • provision of wharf lighting; and • installation of security systems. The winning contractor is also expected to provide wharf furniture, including fender systems to support the berthing of the Hunter frigates and Arafura patrol vessels; a gangway to provide safe access and egress for personnel to vessels at all tides; and safety ladders. Defence says the contract, with an estimated value of $50-70m, is expected to be awarded by April 2022, with completion July 2023. The Oxley Wharf job is part of a rush of new infrastructure work at Henderson and HMAS Stirling to cope with the extra sustainment work likely to flow from the new patrol vessels, the warfare frigates and, potentially, full cycle docking of the Collins submarines. The State Government, as part of its COVID-19 recovery plan, recently announced it would invest $87.6m in the Australian Marine Complex at Henderson. The investments, which include an extension of AMC Berth 1, are in line with recommendations made in June from the Government’s draft infrastructure plan for the AMC, prepared by Worley’s consulting arm Advisian. Defence Issues Minister Paul Papalia said the infrastructure boost would also demonstrate WA’s commitment to securing more Federal defence work, such as the full cycle docking program currently located in South Australia.
Spring 2020 WA WORKS 59
News Bites
Digging in We unearth the best tender awards, project progress and significant announcements over the last quarter
July
Lynas pledges WA supplier focus
Civmec to build civils at Iron Bridge Civmec has found civil construction work on one of the biggest new Pilbara iron ore projects — Fortescue’s Iron Bridge magnetite venture near Port Hedland. The Henderson-based company says it won a “substantial” stand-alone civil contract — the dry plant detailed earthworks and concrete package.
BHP flags new nickel development BHP has flagged a new nickel mine development in WA after purchasing the Honeymoon Well project from Russia’s Norilsk Nickel. It reaffirms the global miner’s renewed commitment to nickel, which is expected to be in strong demand over the coming decade from the growing uptake of nickel-rich batteries used in electric vehicles.
Lynas Corporation says it will give priority to “buying and hiring locally” after kicking off procurement for its $500 million Kalgoorlie rare earths processing plant by awarding a major equipment contract to a European supplier. Finland-based Metso Outotec won a US$15 million ($20m) deal to engineer and supply a 1500-tonne kiln — the longest lead time piece of equipment for the Kalgoorlie project that is due to begin major construction next year.
$223m for WA roads
First packages for Woodside tieback The first work opportunities have emerged at Woodside’s latest North West Shelf offshore satellite development, Greater Western Flank Phase 3. TechnipFMC has published a dozen packages for its subsea contract with Woodside, the operator of the North West Shelf JV, on the ICN Gateway website.
60 WA WORKS Spring 2020
The Federal and State Governments have prioritised a new group of $223 million regional road projects, including the $85m Bussell Highway duplication. The Bussell Highway funding is the biggest prize, with construction of stage one now due to commence in October.
MinRes to build BHP crusher Mineral Resources’ contract to build a new crushing plant for BHP’s Mt Whaleback iron ore mine is expected to generate more than a hundred local jobs. MinRes subsidiary CSI Mining Services won the contract for the supply, construction, installation and operation of the so-called NewGen relocatable 15Mtpa plant.
News Bites Downer adds $324m of new work
TAFE upgrades in the pipeline
Downer EDI has won new work across Australia from several clients, including BHP, Santos, and Wesfarmers, with a combined value of $324 million. The company’s two-year contract with BHP Iron Ore is for the delivery of sustaining capital projects, with services covering mechanical, electrical and rail aspects. It will also provide Wesfarmers’ Chemicals, Energy and Fertilisers division with electrical maintenance and shutdowns.
The State Government says it will spend $167.4 million on capital works to upgrade technical and further education colleges across the state. Two North Metropolitan TAFE campuses will receive significant upgrades as part of the program announced by Premier Mark McGowan and Education and Training Minister Sue Ellery.
Main Roads calls for proposals The search is on for a contractor to deliver a $180 million package of road works in Perth’s eastern suburbs after Main Roads called for proposals to build the Great Eastern Highway Bypass Interchanges project. WA Works understands the State Government aims to award a contract by late 2020/early 2021. Subject to environmental and statutory approvals, Main Roads expects to begin construction next year, creating about 1200 jobs.
SRG adds $55m of fertilizer, water work SRG has secured two separate contracts — with Water Corporation and Yara Pilbara — boasting a combined value of $55 million. The Water Corp deal includes the design and construction of two water tanks — a 42 million litre tank at Merredin in the Wheatbelt and a 32ML tank at Dedari in the Goldfields.
A thousand jobs for Albany road project Decmil has scooped one of WA’s biggest regional road projects after being named as the State Government’s preferred proponent to build a $175 million ring road around Albany in the Great Southern. The Perth-based engineer says construction is scheduled to begin in September and run through to 2023, with the project expected to support 1000 jobs.
Increased spend to build Pilbara gold mine Capricorn Metals says it will spend as much as $170 million building its Karlawinda gold mine in the Pilbara after upscaling the processing facility. The Perth-based company, which started construction of the longmooted project earlier this year, now estimates the development to cost $165–170m, up from the previous range of $145–155m.
Eliwana costs extra Fortescue blamed COVID-19 impacts and “access delays” for a cost increase of up to $US100 million ($140m) in building its Eliwana iron ore replacement mine in the Pilbara. The company’s forecast investment in the Eliwana mine and rail project was revised to US$1.325-1.375 billion, up from the original US$1.275b forecast from 2018. First ore on train is due by the end of this year.
Whittens wins at WTS2 Civils specialist Whittens will help Rio Tinto build its Western Turner Syncline Phase 2 iron ore mine after winning a $20 million subcontract from Mondium. Under the deal, Whittens will complete detailed earthworks and structures for the new processing plant at the WST2 site, near Tom Price.
Spring 2020 WA WORKS 61
August Proposals for new Fremantle bridges Main Roads is seeking industry proposals to replace the Fremantle traffic bridge with two new Swan River Crossings — a project valued at $230 million. Construction is expected to start by late next year, supporting 1400 jobs over the life of the project, according to the Federal and State Governments, who are splitting the cost equally.
Contractors strike gold MACA says it has been selected as preferred mining contractor for Capricorn’s Karlawinda Gold Project, near Newman in the Pilbara, with the job valued at $410 million over the initial five-year term. Separately, Macmahon’s underground mining contractor GBF has been engaged for Stage 1 at the Bellevue Gold project.
Diesel in the tank The State Government’s $5.5 billion COVID-19 recovery plan featured a $92m suite of initiatives to “activate new industries”, including $40.1m for a diesel railcar maintenance facility alongside the C-Series electric railcars assembly hall being built at Bellevue. Underpinned by the State Government’s $1.3 billion Metronet railcar program, which is being run by Alstom, a contract to build the diesel facility will be awarded next year.
First power at Warradarge Bright Energy Investments’ $500 million Warradarge Wind Farm in the Mid West has produced its first electricity, with three of its turbines powering up to 10MW. The 51-turbine wind farm will ramp up to a total generating capacity of 180MW through a staged commissioning process, BEI says.
Wind deal at Esperance Chinese-owned Goldwind Australia secured a deal with German renewables developer Juwi to provide wind turbines for a new hybrid power station at Esperance on the south coast. Goldwind will supply two 4.5MW wind turbines to Juwi, which was subcontracted by Contract Power to build the project. State-owned Horizon Power will buy and distribute energy generated by the power station.
Georgiou road win A Georgiou alliance is Main Roads’ preferred proponent to deliver upgrades to the Leach Highway and Welshpool Road intersection, a project expected to generate 600 jobs. The $93 million project involves construction of a new bridge taking Leach Highway over Welshpool Road.
62 WA WORKS Spring 2020
Monadelphous wins Pilbara, Chile roles for BHP Perth engineer Monadelphous has continued its run of new Pilbara work after securing construction and maintenance contracts in resources and energy with a combined value of $100 million. The company won infrastructure work for BHP at several sites, including Jimblebar.
Hundreds of jobs for Claremont Station work John Holland will undertake an upgrade of the Claremont train station after securing a variation from the Public Transport Authority, taking its total PTA contract value to $95 million. The variation to John Holland’s existing five-year maintenance contract, awarded last December, is worth $36m, the engineering contractor says.
News Bites
September Spoilbank tender goes live
The State Government’s Pilbara Ports Authority advertised a bulk earthworks tender for the $121.5 million Spoilbank Marina project. The successful tenderer will be tasked with excavating the marina basin, selected breakwaters and revetments for the project using land-based equipment. The tender was scheduled to close in October, while the earthworks are expected to begin in January 2021.
Barminco wins in two continents Perenti’s Barminco underground division enjoyed a start to September after winning $400 million of mining work. In WA, Barminco extended its long relationship with Western Areas after winning a $200m contract at the Odysseus nickel project. And in West Africa, Perenti’s AUMS — a division of Barminco — won a contract extension at Roxgold’s Yaramoko gold mine in Burkina Faso.
Navantia AOR ship heading to WA
Help for $280m salt project Privately-owned Leichhardt Industrials is looking to capitalise on an expected shortage of industrial salt in Asian chemical markets by developing a Pilbara export project that includes a new trans-shipping port.
Defence West said that NUSHIP Supply, the Royal Australian Navy’s lead ship for the Auxiliary Oiler Replenishment (AOR) vessels, had departed Navantia’s Ferrol port in Spain and begun its journey to WA. NUSHIP Supply was scheduled to arrive in October at HMAS Stirling, where the installation and testing of the combat and communications systems will be completed by the local defence industry.
More BHP work for Monadelphous Monadelphous has won about $120 million worth of construction and maintenance contracts on BHP mines across Australia, including the company’s WA iron ore division. The contracts include structural, mechanical and electrical upgrades at BHP’s Newman Hub in the Pilbara, with the work expected to be completed before the end of 2021; and work associated with the dewatering of surplus water at the Jimblebar mine near Newman.
Warfare frigate welcomed at Henderson BAE Systems has welcomed a fifth Anzac class warship to its Henderson facility as part of the fleet upgrade that will keep the ships in service until they are replaced by the Hunter class frigates. The Anzac Mid Life Capability Assurance Program (AMCAP) upgrade is being undertaken by the Warship Asset Management Agreement (WAMA) Alliance. HMAS Toowoomba joins sister ships, Warramunga and Perth.
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.
Spring 2020 WA WORKS 63
64 WA WORKS Spring 2020
The Big Picture The 3.5 kilometre-long Kalgoorlie Super Pit owners Northern Star Resources and Saracen are spending up to $468 million over the next two years on cutbacks to enable a big increase in gold production. Photo KCGM
Spring 2020 WA WORKS 65
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 66 WA WORKS Spring 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 Spring 2020 WA WORKS 67
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
T
It will get better
he Coronavirus Bug came in a rush and is hanging around.
countries and we do have our differences, but the current spat needs
Just like the Cane Toad it is nasty and hard to get rid of.
to be toned down.
A great deal of government money has been spent to help
people and business get through the crisis. The financially
savvy Emu says that can’t go on for much longer. The truth is that the Reserve Bank has run
out of ideas and the Treasury has run out of money. It will be even more painful
We Aussie animals agree. If we isolate ourselves from China we lose trade now and in the future we lose influence across Asia. The cuddly and look-alike Koala says our differences are more likely to be sorted out under a respectful relationship than an antagonistic one. The only animal that is celebrating all of what is going on is the sly Dingo in Canberra. What better habitat can a Dingo have
as the assistance is wound back.
than disagreement and confusion. His job is safe as he slinks
The day-to-day management of the
around the corridors of power, dusts off the dirt files and
health crisis has also shifted from the Commonwealth to the states. The Kumbaya harmony of National
leaks gossip to the media Rabbits. Happy days for a Dingo. While things should gradually improve, we are going to be dealing with this virus for some time. There won’t be
Cabinet also seems to be a thing of the past.
a quick fix, unless a miracle vaccine comes along. Even
The tragic loss of life in Victoria has seen
if we get it under control in Australia, it is still going to
different approaches in different States and a
be raging around the world. For Western Australia, as an
return to useless argument between political leaders.
export state, that is an ongoing problem.
For the smaller and more distant states the hard
The money-wise Emu adds that there is also a risk that
borders have certainly been effective in containing the
all of this spending and borrowing by world governments
spread of the virus. For the bigger states with populated
could easily trigger a future financial crisis. We could
borders the situation is much more difficult. The wise
do without that. Perhaps the warning is that if you are going to take a financial hit, it might be
Owl says if something works then stick with it.
better to take it sooner rather than later.
Out on our desert border, the Camel Patrol reckon
The more optimistic Eagle points out that
we are lucky to be on this side of the Nullarbor. They
a changing economic landscape can also bring
also reckon the Rabbit Proof Fence was a good idea, it just didn’t work. The Owl does believe that we need to keep the effort on beating
new opportunities. The ban on overseas travel has brought a boom to country towns. For us, the tough times in
the virus. Fix that and the economy will look after itself, even if it
Africa have led to the recruitment of a couple of Giraffes for our animal
does take a fair time. However, he is worried about the hardship being
basketball team. Once again, the Echidna misses out.
suffered by separated families and especially so when children and elderly parents are involved. So long as there isn’t another virus outbreak, we can make it much
As hard as things are, don’t despair. Australia is a strong nation and Western Australia still has a great future. What is missing is a long-term plan and an iconic project to build confidence and inspire
easier right now for family reunion without the threat of strict hotel
people. The 1930’s depression gave us the Sydney Harbour Bridge and
quarantine. There is room for a little more compassion and especially
the post war recovery gave us the Snowy Mountains Scheme and the
so for people wishing to return home from areas of low infection.
Holden car. What now?
Meanwhile, we got a message the other day from the Panda to say that he is feeling unloved. He points out that we have very different
68 WA WORKS Spring 2020
THE ECHIDNA, SEPTEMBER 2020
WA Works Conference Thursday, October 29
The annual WA Works Conference 2020 will provide delegates with unique insights into some of WA’s key current and future major resource and infrastructure projects. Join CCIWA for a full day of presentations and quality discussion on this year’s topic The Projects Pushing Us Forward from senior industry leaders, WA Government Ministers and project executives. Our outstanding keynotes will deliver updates on and insights into key projects worth tens of billions of dollars, including the supply chain opportunities. You will learn what projects are in the pipeline so that you’re better placed to capitalise on the business opportunities being created.
Held at the Crown Perth with event tickets from $440 Book your tickets now at www.cciwa.com/events
Construction Industry Dinner Thursday, October 29
With a history spanning 30 years, the CCIWA Construction Industry Dinner is Western Australia’s largest and most prestigious annual event for the resources, construction and infrastructure sectors. Held in the lavish Crown Towers Ballroom, this premier event brings together more than 200 representatives from major resource, construction and infrastructure projects and is a must attend for anyone involved in WA’s resources and constructions industries. Joining us is British comedian, author, playwright, musical librettist, actor and director Ben Elton and Paratriathlete and elite athlete Brant Garvey. This high-profile dinner includes an excellent three course meal, premier Western Australian wines, top quality entertainment and extensive networking opportunities throughout the evening. Proceeds of the evening’s silent auction will be donated to our charity partner, Cancer Council WA.
Held at the Crown Perth with event tickets from $295 Book your tickets now at www.cciwa.com/events
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News, Profiles, Major Projects List, Opinion and more Autumn 2019 WA WORKS 1
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