WA Works summer 2020-21 by CCIWA

Supply Chain and Major Project News

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

Summer 2020-21

Gas is back New projects on the way

Resources

Iron Ore

Energy

Critical minerals talks: US backs Australia

First peek at new BHP project

Ed Kalajzic on grid revamp

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

All thethe rightnetworking connections Join for local industry

platform thatâ&#x20AC;&#x2122;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 Summer 2020

Contents

Cover Story

Beach Energy/Mitsui’s Beharra Springs gas project in the Mid West. Photo: Roger Xiang

CEO’s Desk

Economic outlook

Special Feature: Gas is back

Woodside sticks to Scarborough

A pipeline of jobs

New project for a new boss

Gas contracts on the rise

Perth’s silver-lined cloud

Rail extension anything but suburban

Getting tough on tendering

Pilbara pioneers tech

A peek at BHP’s new iron ore project

Sensing new mines

Eyes on WA’s critical minerals after China price hikes

Academia on the rise

Building hydrogen super buses

Digging deeper for skilled workers

Gas is back

Opinion Paul Moss - Policy Corner

Summer 2020-21

Major Projects List

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.

Conversion opportunities loom at BP Kwinana

Stellar robot is one out of the box

Subsea suppliers tracking well for Defence work

Craving for a graving dock

Powering up the network

Greater demand needed for Warradarge expansion

Hydrogen hopes firm in the Pilbara

Digging In: News Bites

The echidna

65 Summer 2020 WA WORKS 3

Welcome

Editor’s Letter

LNG’s new spark

ron ore may still be king as this summer edition of WA Works hits the streets, but another mainstay of the WA economy is set for a comeback. Some commentators wrote premature obituaries for gas during the COVID-19 lockdowns as the pandemic wreaked havoc on demand for fossil fuels such as oil and LNG. Yet, as we transition through the holiday period, the supply chain is now hopeful of a long list of gas ventures planning to commit to final investment decisions in 2021. At the time of writing, Mitusi and Beach Energy was poised to sanction their Waitsia Stage Two project, while Chevron’s and Woodside’s big offshore projects should follow later in the year. And APA Group’s pre-Christmas commitment to its $460 million Northern Goldfields Interconnect gas pipeline was a clear sign that utilities see increasing demand for natural gas ahead. The Australian Energy Market Operator (AEMO)’s 2020 Western Australia Gas Statement of Opportunities adds weight to this theory. “Supply is expected to exceed demand until 2026, however, we’re seeing the supply and demand balance tighten in 2027 and 2028, with potential that demand may exceed supply in the outer two years of the outlook period,” said AEMO’s Executive General Manager WA Cameron Parrotte. Dip into our special feature to identify where the new gas work is likely to stem from.

Infrastructure on a roll The State Government’s Metronet program rolls

on, including the $1.25 billion Yanchep Rail Extension/ Thornlie-Cockburn Link project — the biggest extension of the metropolitan rail network since the Mandurah line opened in 2007. The Yanchep leg is well into construction along Perth’s north coastal strip and our feature delves into some of the construction and design challenges ahead. Meanwhile, the Federal and State Government’s $1.5b Perth City Deal stimulus package, is set to give academia a lift as major universities erect campuses and learning precincts in the CBD. Edith Cowan University, for instance, says its $695m City Campus should attract more than 8000 students and 1200 staff when it opens in 2025.   Rounding out our infrastructure coverage is Perth’s latest work opportunity — the facilities needed to house our ballooning reams of data. The poster child is Next DC’s P2 data centre in East Perth, near the Northbridge Tunnel, but our feature also highlights the strategic importance of Perth to the industry’s future because of its proximity to the fast-growing Asian market. Talking about data, ‘Sensing new mines’, explains how a technology start-up is collaborating with BHP and IBM to shake up WA’s $1.7b mineral exploration industry using a “data cube” that may uncover mineral deposits hidden underground. There is plenty more to enjoy, ranging from an interview with new Western Power CEO Ed Kalajzic, to new developments in critical minerals and defence.

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 Summer 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 December 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

2020 in review

WA decision makers are faced with a choice for the coming year: can we learn the lessons of 2020 and make the reforms needed to recover, not just rebound, from the COVID-19 crisis?

020 has marked Australia’s toughest economic challenge in living memory. It also marks CCIWA’s 130th anniversary. We were founded during another economic depression, with falling property prices, drought, striking workers and failure in the banking sector.  And just as they did 130 years ago, in 2020, the WA business community innovated, made sacrifices, persevered and improved our State.  This year, we left our decision-makers in  no doubt about what the WA business community needed. Together, we worked to deliver on your priorities. Abolishing ‘change of use’ approvals. Suspending costly regulations, license fees and government charges. Reduced assessment timeframes for State agencies. Industrial relations reform. Expanded Enterprise Training, Building Construction Industry Training and apprenticeship support.   And just as we did on the GST, we mounted a sophisticated campaign to ensure that the experience of 60 per cent of WA businesses suffering due to the hard border was heard by the State Government: businesses missing out on tourism, losing bookings, suffering a competitive disadvantage compared to those in other states. Others suffered from delays and supply chain issues or couldn’t access skilled or unskilled workers.  Those businesses will be relieved that travel is finally possible between COVID-safe destinations.  Having re-joined the Australian economy, and with news of several COVID-19 vaccines emerging, household and business confidence in WA has come back.   We’ve all earned a holiday this year — but it’s critical to keep an eye on the horizon.    And as we look forward to 2021, the State election looms large. Strongly-contested elections are critical for a healthy democracy. Measuring up their economic plans, neither the Labor Government nor Liberal Opposition have, as yet, articulated a comprehensive strategy to put business at the heart of WA’s recovery.  This matters. Without a robust plan to power up business investment, to reduce business costs and headaches, and to grow and attract the very

best skills, WA will lose ground to other States and to our competitors overseas. Although the McGowan Government raised the payroll tax threshold by $150,000 this term, WA is still in the running for ‘largest jobs tax in Australia’.  The new Liberal Opposition leader Zak Kirkup also proposes a full rebate for businesses with payrolls up to $1.5 million and a tapering rebate for payrolls up to $3m. On this score, the contest is still open. While our economy has fared better than most, we shouldn’t be lulled into thinking that a rebound constitutes recovery. WA and Australia need structural reform to remain competitive, to attract businesses, to create jobs. The world is not standing still. The eastern states and others are pitching hard for business investment. NSW just slashed its jobs tax and now offers four years of zero payroll tax to businesses that create 30 new jobs or more. While WA rules out any type of reform to lower stamp duty transaction costs for home buyers, NSW has forged ahead with an innovative scheme that allows families to choose to pay stamp duty up front, or to cover those costs over a longer period. Smart stuff giving the choice to our citizens.  There’s a roll call of eminent economists and business leaders — Philip Lowe, Martin Parkinson, Rob Scott, Ken Henry and Richard Goyder — who make these same points.

WA is still dancing under a mirror-ball of unprecedented Federal Government stimulus, while our mining community, buoyed by high iron ore and gold prices, plays DJ.  At some stage the mirror-ball will be withdrawn and our miners will dial back the tempo, once Brazil and others lift their volumes. Mining accounts for 43 per cent of our gross state product — without it, our economy would have contracted 0.4 per cent in 2019-20.  We’re less diverse as an economy than we were three years ago. Left unaddressed, this exposes us to decades of boom-bust cycles, characterised by volatile and insecure job prospects, where homeowners are encumbered by financial stress as they deal with periods of negative equity.  Economic crises provide an opportunity for structural reform. So the choice is ours as a State.   Bedazzled by the mirror-ball, we can close our minds to the opportunity of reform and remain dependent on our deep but finite natural riches.  Or, we could take an early move to leverage our ‘safe destination’ credentials to ramp up international and local investment and encourage skilled people and students from around the world to work and study here.   In 2020, WA businesses saved livelihoods, saved jobs and protected people’s health.  In 2021, let’s set a new path of economic diversification, and onwards towards recovery.

Summer 2020 WA WORKS 5

6 WA WORKS Summer 2020

The Big Picture The first ore from Fortescueâ&#x20AC;&#x2122;s $1.7 billion Eliwana mine was produced in December 2020. The new mine includes a 143 kilometre rail link to the companyâ&#x20AC;&#x2122;s haulage network. Eliwana is forecast to produce 30 million tonnes per annum of iron ore for export to steelmakers.

Summer 2020 WA WORKS 7

Economic Outlook

Tax cuts needed needed to to boost manufacturing manufacturing With non-mining investment in the WA economy continuing to contract, the State Government needs to reduce payroll tax to encourage more growth in the local manufacturing sector, says Aaron Morey

8 WA WORKS Summer 2020

estern Australia’s current economic performance is being underpinned by several forces, including significant Federal fiscal stimulus and generous incentives for housing construction. The dominant force, however, is the performance of the mining sector. Commodity prices are up significantly since the beginning of the year, with copper, nickel, gold and iron ore in particular doing well. Activity in the mining sector is in turn flowing through whetherit itbebeexploration, exploration, the economy –—whether construction, transport, repair and maintenance, structural metal manufacturing, wholesale traders and even retail. Yet despite all that, WA’s economy grew slower in the September quarter than most other jurisdictions. Only Victoria with its long and harsh lockdown recorded a weaker growth outcome (figure 1). Underpinning that relatively weaker result was a significant plunge in investment within WA, falling 4.9 per cent in the quarter. Investment is a particular concern outside the mining sector, withwith non-mining investment in WA the mining sector, non-mining investment in having nownow contracted in seven of the pastpast eight WA having contracted in seven of the years.years. eight This has led to a deepening imbalance in the WA economy. In the last financial year the mining sector contributed nine times more growth than the nearest sector, growing 1.8 per cent

Aaron Morey

of $2m to $5m. A range of other sectors are also estimated to have average taxable wages close to this range, including businesses in the accommodation, food, fisheries, and social assistance sectors. To help the WA economy diversify, CCIWA is

compared to healthcare at 0.2 per cent. The upshot of that is mining now makes up a record 43 per cent of WA’s economy (figure 2). One of the State Government’s strategic economic priorities is to grow the local manufacturing sector and associated industries in order to diversify the economy and create jobs. Western Australian manufacturing businesses have struggled to grow compared to their peers in other states. They are the least likely to employ more than 200 people, and on average employ the fewest number of workers (figure 3). One significant factor behind Western Australia’s inability to scale up its manufacturing sector is the higher payroll tax burden for medium-sized businesses in WA. Despite the State Government lifting the payroll tax threshold from $850,000 to $1 million in this term of government, WA is estimated to still have the highest payroll tax burden for businesses with taxable wages between $2m and $10m. A WA business with a payroll of $5m is estimated to pay as much as $80,000 more than in South Australia and $70,000 more than in NSW. Based on survey data and discussions with individual businesses, CCIWA estimates that for many parts of the manufacturing sector (including chemical plants, machinery equipment manufacturers and metal fabricators), average taxable wages are somewhere in the range

below $4m. The rebate should taper down to zero for businesses with taxable wages at $7.5 million. In addition, the State Government should introduce reforms to ease the administrative burden of payroll tax, as outlined in CCIWA’s 2020-21 Pre-budget Submission.

“Western Australia is estimated to still have the highest payroll tax burden for businesses with taxable wages between $2 million and $10 million” is calling State Government deliver calling onon thethe State Government to to deliver a meaningful reduction for businesses in the above payroll tax range. To this end, we have recommended the State Government raise the payroll tax threshold to $1.1m and introduce a 10 per cent rebate on payroll tax liability for businesses with taxable wages

The key to growing secure, full-time, wellpaying jobs in WA is stoking business investment. WA has the strongest fiscal position in the country and must use it to achieve a lower tax burden and gain a competitive advantage over other states. Economist Aaron Morey is CCIWA’s Chief Economist.

Summer 2020 WA WORKS 9

10 WA WORKS Summer 2020

Special Feature

Gas is back The gas industry has come out of a very tough year in decent shape and there are signs of increased project activity in the next 12 months, writes Stephen Bell

here is a sense of excitement and optimism in WA’s gas industry as 2021 begins — in stark contrast to the dour mood that prevailed last March when Woodside and Santos deferred their respective big capital projects. Back then, oil prices — stung by the bruising COVID-19-incuded slump in car and aeroplane usage — crashed to below US$20 a barrel. At the time of writing, prices were more than twice that level as several countries, including Australia, eased lockdowns and allowed more freedom of movement. The price recovery, albeit tentative, is good news for WA, as LNG prices are closely linked to oil prices. More importantly for the supply chain, Woodside held its nerve after pausing its $15 billion Scarborough-Pluto project last March, insisting it will seek a final investment decision in the second half of this year. The timing of the pick-up in activity on this and other projects will depend, in part, on market conditions, including the pace of demand recovery in key markets such as China, the US, Japan, Korea and Europe. If markets remain relatively stable, helped by the roll-out of the COVID-19 vaccine, the future would brighten for several oil and gas projects up for approval in the next 12 months. Aside from Scarborough, there is Chevron’s Jansz-Io (Q2 2021), Mitsui’s Waitsia (Q1 2021), Strike/Warrego’s West Erregulla (Q1 2021) and Santos’ Dorado oil venture waiting for green lights this year. Santos is running a competition from three contractors BW Offshore, Modec, and Altera (formerly Teekay) to clinch a Front End Engineering Design (FEED) contract for Dorado’s Floating Production, Storage and Offtake (FPSO) vessel. Once FEED has been awarded, it will shore up confidence of a financial investment decision later in 2021, according to ICNWA Manager Ray Loh. “I’ve noticed in the last few weeks that a number of contractors who’ve been working

on some of the deferred oil and gas ventures have contacted us to let us know they are recommencing on these projects,” he says. “They’ve asked ICNWA to assist in some vendor identification work. “It gives me the impression that things are about to pick up and I believe early this year, in the first quarter of 2021, there should be a lot more project work packages to be listed on ICN Gateway. “These packages will not only be from the project owners, but also their main contractors,” Loh says. Turning to specific projects, Loh says operator Mitsui recently listed its Waitsia Stage 2 onshore gas venture on ICN Gateway to accept expressions of interest for development drilling packages. And, with an Engineering, Procurement and Construction (EPC) announcement imminent at the time of writing, the successful head contractor for Waitsia Stage 2 was also expected to advertise packages on ICN Gateway. Of course, looking too far into the future is a mug’s game, and COVID-19 has taught us that not everything goes according to plan when unpredictable and rare circumstances conspire against big project developers. One longer-term issue for big gas is the steady decline in the cost of power generated by renewable sources such as solar and wind, in tandem with improved battery storage. Wood Mackenzie’s latest energy report, Battle for the future 2020: Asia Pacific power and renewables competitiveness, notes that solar plus storage projects could be competitive with gas by 2026. “Over this decade, the renewables discount over fossil fuels will grow to 40 per cent on average across China, as LCOE (the levelised cost of electricity) of new wind and solar plants fall below those of fossil fuels, and also taking into consideration a carbon price,” says Wood Mackenzie Senior Analyst Rishab Shrestha. The underlying message seems to be that it won’t get any easier for big gas projects to attract investors and customers as the decade progresses.

Summer 2020 WA WORKS 11

Special Feature

Woodside

sticks to Scarborough Woodside it standing by plans to develop the Scarborough gasfield, arguing it will deliver “significant” value for the local energy giant, writes Stephen Bell

n what amounts to relief for the supply chain, Woodside has rejected calls to process the offshore Scarborough project via the ageing North West Shelf LNG plant, sticking to its long-held plan to process it through an enlarged Pluto facility on the Burrup Peninsula. The decision bodes well for head Pluto 2 contractor Bechtel and its horde of subcontractors, who were poised to begin early works on the project last March — just as COVID-19 pulled the rug out from under the industry. At the time of writing, market conditions looked more promising, though the pre-Christmas decision by long-serving CEO Peter Coleman to step down by mid-2021 stoked some uncertainty about Scarborough’s future. However, those fears were tempered when Woodside’s Executive Vice President Development Meg O’Neill emerged as one of the favourites to replace Coleman. She is regarded as a strong supporter of the $15 billion (US$11b) Scarborough-to-Pluto project, having told investors a few weeks earlier that Woodside would make a final investment decision by the second half of 2021. “We are aligned with BHP on this schedule, which is expected to provide the first LNG cargo in 2026,” she said.

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30 per cent cheaper than NWS

Woodside is the 75 per cent owner and operator of Scarborough, with BHP owning the remainder. The company is also planning to boost the capacity of Scarborough’s offshore infrastructure, mostly by enlarging part of the mooted 430-kilometre pipeline to Pluto. And it dismissed the option, argued by some analysts and commentators, of pushing Scarborough’s 11 trillion cubic feet of gas through the North West Shelf JV plant as too expensive and time-consuming compared with building a second Pluto LNG train.

O’Neill said the Pluto Train 2 concept required 30 per cent lower capital spend over the Scarborough field life, compared to taking the gas to the ageing Karratha gas plant. “The NWS facility simply is not designed to process gas with Scarborough’s composition,” she said. “If the team were to stop working towards an FID of the Pluto concept and instead focus on North West Shelf, we’d expect this to further delay FID by a couple of years.” In working towards the revised Scarborough timeline, Woodside said it continued to finetune the project design, while retaining its four key contractors, Subsea Integration Alliance (OneSubsea and Subsea 7), McDermott (floating production unit), Bechtel (Pluto Train 2) and Saipem (export trunkline). O’Neill said this work is ongoing, and the joint venture was targeting a 20 per cent increase in the upstream capacity for a “very modest capex increase”. “There’s basically no cost impact on the downstream,” she said, adding that the key contributor to the capacity boost would be modifying the trunkline. “By increasing the diameter of the shallow

Special Feature

An impression of Woodside’s floating production unit for the Scarborough project

water section, the pressure drop through the pipe is reduced and we’re able to push more gas through it,” she said. “We’ve also identified optimisation opportunities on the offshore platform, or the floating production unit, which will reduce the weight and complexity of construction.”

Show me the money In arguing the case for a second Pluto train, O’Neill highlighted the “significant value” Woodside expected to deliver from the overall project. She noted the development concept would make use of the existing infrastructure already in place at Pluto LNG, while the various infrastructure tweaks would be a “game changer”. “We estimate that the integrated project would deliver net cash flow of approximately US$35 billion ($47b) over the life of the field, based on our current participating interest,” she said. “Even at a low oil price deck of US$45 ($61) per barrel, the net cash flow is around US$25 billion ($34b). “This would set us up for long-term financial success and generate the cash to fund our next phase of developments.

“Importantly, the internal rate of return for the integrated development is greater than 12 per cent, which is a key investment metric for us,” O’Neill said. Meanwhile, Chief Financial Officer Sherry Dhue said the company was looking to reduce its stake in Pluto Train 2 from the current 100 per cent to a target of about 50 per cent prior to FID.

for Scarborough. Minister for Resources, Water and Northern Australia Keith Pitt said the licence offerings would generate many new jobs. “Developing Scarborough, through expansion of the Pluto LNG facility, is expected to create more than 3200 jobs during the construction phase, and an average of more than 1300 jobs

“We estimate that the integrated project would deliver net cash flow of approximately US$35 billion ($47b)” “This would significantly reduce our capital spend by about $US3b — this would exclude the proceeds of the sell-down itself,” she said. “We continue to engage with potential investors in Train 2, including infrastructure investors.

Jobs and accommodation Meanwhile, the Federal and WA Governments offered two production licences to Woodside

a year during operations,” he said. Woodside needs to build a new village at Karratha to accommodate construction workers. The company expects construction of the temporary construction accommodation village to begin after FID, a Woodside spokesperson said. “ATCO remains as the contractor selected to supply and build Bechtel’s construction accommodation village (CAV) for the Pluto Train 2 workforce,” she said.

Summer 2020 WA WORKS 13

Special Feature

A pipeline of jobs A giant East Coast utility aims to deliver 500 jobs during construction of its Northern Goldfields Interconnect (NGI) gas pipeline, with site works set to begin in the second half of this year By Stephen Bell

ossil fuels may be under pressure as the cost of renewable energy creeps ever lower, but natural gas is still a desirable commodity in WA’s mining sector, judging by APA Group’s recent decision to approve construction of its new $460 million NGI project. The 580-kilometre 12-inch pipeline will connect emerging gas fields in the Perth Basin to the minerals rich Goldfields region and fuel new mine developments, according to Sydney-based APA. “Our investment in the NGI will help stimulate significant economic development in WA and has the potential to unlock hundreds of millions of dollars of investment in the Goldfields region, which is rich in gold, potash and battery minerals such as vanadium, nickel and rare earths,” said APA CEO and Managing Director Rob Wheals.

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“Importantly this $460m investment creates a platform for further growth for APA as more and more resources customers seek energy solutions, including renewables and battery storage underpinned by natural gas.” An APA spokesperson told WA Works the company’s first steps will be to obtain all necessary approvals, including access agreements with landowners. “Construction is then expected to commence after June 2021, with a target for the NGI to be fully operational in mid calendar year 2022,” he said. Subcontractors and suppliers can contact the project team by email on ngiproject@apa.com.au, he added. APA does not have a specific target for local content. “However as with all our projects, APA is committed to providing opportunities for local

suppliers and contractors to participate in the NGI and encourage local participation from our major contractors.

Pipeline and compressor contracts “Once all approvals are obtained, we would expect to appoint separate pipeline and compressor station construction contractors by mid-2021,” the spokesman said. The NGI will connect to APA’s Goldfields Gas Pipeline (GGP) which in turn connects to APA’s Eastern Goldfields network — creating an interconnected gas pipeline system covering 2690km from north to south and west to east. APA said investment in the NGI would deliver double the additional capacity (about 80 TJ/day) to the Goldfields region compared with spending the same amount to expand the existing GGP, which is currently fully contracted at about 202 TJ/day. UBS analyst Tom Allen said in a note to clients that making a final investment decision (FID) with less than 25 per cent of capacity contracted was a “step-out from APA’s historical risk profile”. “While the pressure is now on APA to fill the pipeline, we believe the FID can provide an investment signal to miners in the Goldfields region, helping APA to aggregate a number of smaller gas transportation volumes from new

Special Feature

vanadium, nickel and gold projects,” Allen said. APA expects to have a strong portfolio of long term contracts in place by the time construction is complete in mid-2022, according to Wheals, who noted that over the past five years APA had expanded its network by almost 500km of pipelines servicing the eastern Goldfields region.

“The NGI responds to that market-driven demand, without the need for State or Federal Government subsidies.” “This is a market we know well and have been operating in for a long time,” he said.

It strikes a chord Strike Energy Managing Director Stuart Nicholls said APA’s move to build the NGI was an “endorsement” of the Perth Basin’s potential to be a long-term, competitive source of energy for the Goldfields. “Gas is the fuel of choice to replace diesel-fired electricity in the Goldfields,” he said. “Strike Energy’s market access continues to grow. We look forward to engaging further in discussions with potential end-users of Perth Basin gas.” Strike already has a deal with Wesfarmers subsidiary CSBP, which agreed to buy 25 TJ/day of gas from Strike’s West Erregulla project for about 11 years, expected to begin in 1H 2022. Mitsui and Beach Energy, meanwhile, plan to ship gas from the early stages of their Waitsia project north for export through the North West Shelf LNG plant.

“Investment in the NGI would deliver double the additional capacity to the Goldfields region” “Each time we have extended the system in this dynamic region, we receive more requests for connection from miners wanting a reliable and affordable energy source, complementing variable renewable energy sources such as solar and battery storage,” he said.

Key APA assets and investments APA operated assets

Carnarvan Basin

Other natural gas pipelines TGP

Resource markets

PPS

Gas storage

NGP

Wind farm Solar farm Gas-fired power station LNG plant AL

Agnew Lateral

BWSF

Badgingarra Wind & Solar Farms

APA Pipeline

GGP

EDWSF Emu Downs Wind & Solar Farms EGP

Eastern Goldfields Pipeline

GGP

Goldfields Gas Pipeline

GPS

Gruyere Power Station

KKP

Kalgoorlie Kambalda Pipeline

MMGP

Mt Morgans Gas Pipeline

MGPSF Mondarra Gas Storage & Processing Facility MWP

Mid West Pipeline

NGP

Nifty Gas Pipeline

PGP

Parmelia Gas Pipeline

PPS

Pilbara Pipeline System

TGP

Telfer Gas Pipeline

YGP

Yamarna Gas Pipeline

GPS

MWP

YGP

Proposed NGI MMGP Perth Basin

MGPSF

EGP

KKP

EDWSF BWSF

Perth

PGP

Summer 2020 WA WORKS 15

Special Feature

New project for a new boss Incoming Chevron Australia Managing Director Mark Hatfield probably won’t have to wait too long to get his feet wet, with the energy giant looking to approve its latest multi-billion-dollar gas project in coming months, writes Stephen Bell

final investment decision on the Jansz-Io Compression (JIC) project is scheduled for the second quarter of this year and will be a significant milestone given it is needed to maintain long-term gas supply to the Chevron-operated Gorgon LNG plant on Barrow Island. JIC has been in engineering design for nearly two years after Norway’s Aker Solutions won the Front-End Engineering and Design (FEED) contract in March 2019, and local suppliers and contractors are now tendering for work. Successfully executing JIC would mark a solid beginning for Hatfield, who was announced in December as the replacement for Al Williams, who’s headed back to the US as Vice President, Corporate Affairs. Currently responsible for Chevron’s deep water exploration and production activities in the Gulf of Mexico, Hatfield will bring more than three decades of experience to Perth when he assumes the role on March 1. He joined as a production engineer in New Orleans in 1982, so should feel right at home in building JIC, which will use subsea compression to enhance recovery of the low pressure field gas — an Australian first. The Jansz-Io gas fields are about 190 kilometres offshore and 1350 metres below the surface, while Barrow Island is 70km off the Pilbara coast. Aker says its compression system will boost recovery of gas more cost-effectively and with a smaller footprint than a conventional semi-submersible compressor. The contractor delivered the world’s first subsea compression system for Equinor’s Asgard field offshore Norway in 2015.

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Chevron, meanwhile, says JIC was part of Gorgon’s original development plan. The FEED work has involved all onshore components, along with further opportunities for engineering, project management, fabrication, onshore construction, subsea installation and support once the project is sanctioned. Alongside the engineering solutions, Hatfield will no doubt be mindful of the company’s local industry participation plans as tendering continues for JIC packages via the CCIWAmanaged ICN Gateway web portal. WA Works understands that Chevron’s local content plan for JIC will become clearer after FID. The development will comprise two subsea compression stations connected via a manifold structure to the Jansz-Io midline pipeline termination structure, and the installation of supporting infrastructure, including: • new power generation capacity (as required) and cross-island High Voltage (HV) power cables; • offshore (subsea) HV cables; and • a field Control Station (FCS), an offshore “normally unattended” installation semi-submersible electrical and controls distribution platform. The latest work packages advertised for JIC include provision of a module parking structure for the subsea compressor station, foundations for the station, and Barrow Island horizontal directional drilling shore crossing services. Further information can be found at the

ICN Gateway website: gateway.icn.org.au/ project/4302/jansz-io-compression

Capturing carbon Meanwhile, Chevron said the carbon dioxide injection system at the Gorgon LNG plant has reached a milestone, with more than three million tonnes of greenhouse gas emissions (CO2 equivalent,) mitigated since start-up in August 2019. “Chevron is deploying technology, innovation and skill development to deliver ever-cleaner energy and to continue to reduce our carbon footprint,” a spokesperson said. “The Gorgon emissions reduction system is one of the world’s largest commercial-scale system of its kind, reducing Gorgon’s greenhouse gas emissions by about 40 per cent over the life of the project.” This amounts to more than 100 million tonnes of the greenhouse gas injected over the life of the project. The system, which injects CO2 more than 2km into a deep geological reservoir underneath Barrow Island, has been described as one of the world’s largest greenhouse gas mitigation projects ever undertaken by industry. Once the CO2 is injected, it migrates through the Dupuy rock formation until it becomes trapped. Chevron says an on-going monitoring program, which includes observation wells and seismic surveys, will assist in managing the performance of the injected reservoir CO2.

Special Feature

The new facility is a key component of Fortescue’s Pilbara Generation project, which also requires the establishment of 150MW of Solar PV generation and a large-scale battery storage system. According to Fortescue, the construction of the solar PV generation will begin in April 2021 and battery storage in June 2021. Visit the page at: gateway.icn.org.au/ project/4643/pilbara-generation-projectcontract-power

First glimpse at Waitsia procurement

Gas contracts on the rise

Natural gas may not be as fashionable as renewables but there is still plenty of life left in WA’s favourite fossil fuel — both on the supply and demand side By Stephen Bell

he State’s best website for advertising supplier work opportunities on big projects is cooking with gas. The Industry Capability Network ICN Gateway portal, which is managed by the CCIWA, recently listed work packages for two separate gas ventures: Fortescue’s new power station at its Solomon iron ore mine in the Pilbara and the Mitsui-operated Waitsia Stage 2 LNG/gas project in the Perth Basin. More work prospects will likely be on the way soon, with both Woodside (ScarboroughPluto 2) and Chevron (Jansz-Io compression) expected to make final investment decisions later this year on their respective offshore projects. And Clough, the EPC contractor for the Waitsia gas processing plant, is also tipped to list a page on ICN Gateway. But our first project listing is in the heart of WA’s iron ore industry.

Power job generates excitement Fortescue has begun procurement for a key cog in its $620 million Pilbara generation project — a new 150MW gas-fired power station, to be supplied by Contract Power, at the Solomon iron ore mine. According to the new listing on ICN Gateway,

the new thermal power station will be run on gas from an existing high-pressure pipeline connected to the Dampier to Bunbury Natural Gas Pipeline (DBGNP). Kewdale-based Contract Power won the Solomon deal in July, saying it would install 15 Rolls Royce Bergen (RRB) gas generators to deliver low-emission, medium-speed units with market-leading fuel efficiency.

Oil and gas suppliers have an early chance to get involved in the Waitsia Stage 2 gas project after operator Mitsui listed the first work packages on ICN Gateway. The listing comes after the McGowan Government’s decision in August to allow the Perth Basin project to export part of its gas as LNG, clearing the way for 200 construction jobs. After several delays, Mitsui and joint venture partner Beach Energy were tipping a final investment decision before the end of 2020. In the meantime, contractors can register their interest in Mitsui’s early development drilling packages on the ICN Gateway site, which can be viewed at: gateway.icn.org.au/ project/4640/waitsia-gas Operator Mitsui plans to drill 4+2 development wells in the Waitsia field, located 17 kilometres south-east of Dongara in the Mid West. Drilling is expected to commence in Q4 2021 or Q1 2022 subject to State Government approvals and a Final Investment Decision (FID). Mitsui says it is committed to engaging with local suppliers where practicable and an Australian Industry Participation Plan has been lodged with the Federal Government. The project will include a new 250 terrajoules

“Contractors can register their interest in Mitsui’s early development drilling packages on the ICN Gateway site” The generation units are described as lean burn gas engines generating at 11KV. They will be housed in a purpose-built engine hall complete with an overhead crane and associated infrastructure required within a power station of this type. The early work packages included supply of a fire ring main system and associated infrastructure, concrete drainage liners, lighting and gas valving and instrumentation. Construction is scheduled for completion in the second quarter of 2022, Contract Power says.

per day gas processing plant, which will be built under an engineering, procurement and construction (EPC) contract. However, EOI’s for this aspect of the project await the EPC project award and FID, Mitsui says. Waitsia Stage Two has enough capacity to generate about 1.5 million tonnes per annum of LNG in its early years. Subject to the finalisation of various agreements and approvals, production is estimated to begin in late calendar 2023.

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Infrastructure

Brisbane-based Next DC opened its second WA data centre, P2, in East Perth last July

Perth’s silver-lined cloud Data centres around the world are accelerating their expansion plans to accommodate the rapidly increasing demand, and Perth is no exception. The city saw two new projects built in 2020, while established facilities have also grown By Claire Tyrrell

distinct plastic smell permeates the air at Pier DC’s Canning Vale data centre — a result of the hypoxic environment surrounding the whirring and blinking servers that fill its rooms. If a person were to strike a match in one of the data halls it would spark but not stay alight. Oxygen levels are reduced to eliminate the risk of a fire and protect the precious resource. Not only is it valuable, but its volume is also increasing rapidly. It means that data centres are among the fastest growing industries globally, as the popularity of cloud storage booms and more businesses shift away from storing IT infrastructure on site. ES-based Equinix’s $73 million (US$54m)

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P3 facility under construction in Shenton Park is the latest cog in an ongoing construction surge in Perth data centres, fuelled by growing demand in Asia for high speed data. The 10,600sqm phase one development will become the American multinational’s third and largest facility in WA. BHP is a foundation customer of the development, which will provide access to more than 1045 companies, including 215 networks and 395 cloud providers. Meanwhile, Brisbane-based Next DC opened its second WA data centre, P2, in East Perth last July. The conspicuous red-and-white high-rise near the Graham Farmer Freeway has the potential to house 20 megawatts of computing power in a 12,000sqm space. And Singapore-based DC Alliance runs the

5MW Pier DC facility in Canning Vale, which houses 1000 racks of data. Plans are afoot to expand the facility by adding 400 racks in 2021. Data centres are measured by their ability to move information quickly, or at low latency, between host sites; and their security and ability to keep equipment cool in an energy efficient way. One way of a ranking a data centre’s performance is through a tiered certification process, where Tier IV is the highest industry standard. Perth major data centre players largely have

Infrastructure

Tier III ranked sites, apart from Next DC’s new tier IV site in East Perth, while Pier DC has plans to build a Tier IV centre near its existing facility.

Global connectivity Perth’s connectivity to Singapore via high-speed submarine cables has made it an attractive destination for data centres treflected in the strong activity in the sector during 2020. The Australia Singapore Cable (ASC) and INDIGO cable link Singapore directly to Perth and terminate directly inside Equinix’s PE3. Next DC’s two Perth data centres will also connect to INDIGO, run by academic and research network AARNet; Google; telco networks Indosat Ooredoo, Singtel, SubPartners and Telstra; and Acatel Submarine Networks.

“Approximately 90 per cent of the world’s data has been created in the last two years alone” The recent digital economy agreement between Singapore and Australia has also buoyed data storage operators in Perth. Equinix Managing Director Guy Danskine said Sydney, where Equinix has eight data centres, was traditionally seen as Australia’s global connection hub. “That still works extremely well, and that’s not something we’re departing from (but) Perth is just standing up to compliment it in such a stronger way than it was even a couple of years ago,” he said. “It is that proximity to Singapore and Southeast Asia that’s really the start.”

Cooperation) hub … you’ve got to be connected to Singapore to get to anywhere,” he said. “Western Australia is fast catching up as a digital interface between Australia and the rest of Asia. We are here to secure the future of Pier DC (and) build our capacity to meet demand.”

Burgeoning demand Next DC Chief Customer and Commercial Officer David Dzienciol captured just how quickly the data storage industry needs to grow during a recent executive briefing video. “Approximately 90 per cent of the world’s data has been created in the last two years alone, and 18 months from now the world’s data will be recreated again,” he explained. “As companies continue to process, analyse,

and use that data, they will continue to need more data centre space and connectivity services to support the growth of their business.” Next DC’s Managing Director Craig Scroggie told WA Works that P2’s capacity was close to what the entire Western Australian IT infrastructure market held today. “That building is probably the size of the market,” he said. “We see the rapid growth in digitisation, consumer services, your Netflixes, Apple TVs — all of those on-demand consumer services (are) growing rapidly … (so) that’s why we’ve built a facility that can scale so rapidly,” he explained. Danskine explained that Equinix also attracted demand from the major Telcos, the WA Government and cloud computing providers.

Colocation Service Providers 37 Data centres (as listed on Cloudscene). Most are 10+ years 3 Tier III certified data centres. Near new facilities < 5 yrs. 2 Tier IV data centres under development. RFS < 2 yrs Facility

Tier

Build

Location

NextDC P1

III

2014

Malaga

Equinix PE2

III

2014

Shenton Park

DCA | PIER

III

2016

Canning Vale

Next DC P2

IV**

2020

East Perth

DCA | EDGE

IV**

2021

Canning Vale

* Only Tier Certified Facility - South of Perth CBD. Great connectivity and accessibility ** Build intent

The Middle Eastern link Danskine added that a subsea cable from Perth to Oman, expected to be complete by December 2021, would mean data companies could send traffic directly from Perth to Europe. “(If) you think about what a powerful proposition that is for European companies, even think about systems integrators that want to service the resource sector — this (Perth) is an ideal location for them to establish a presence,” he said. Albert Wong, executive director of DC Alliance — which fully acquired Pier DC in September — explained that Perth’s proximity to Asia was a major drawcard. “Our internet traffic is going all over the world. Singapore is the APEC (Asia-Pacfic Economic

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Infrastructure

Rail extension anything but suburban NEWest Alliance faces engineering challenges in the construction of the Yanchep extension and railway stations, but Manager Steve McGarrigle says delivering quality infrastructure to the community keeps him motivated

By Helen Shield

ight 40m corridors, stringent environmental controls and a vigorous contest for labour are just three challenges that emerged in the first year of work on the $534 million Yanchep Rail Extension. NEWest Alliance Manager Steve McGarrigle tells WA Works the 14.5 kilometre extension of the Joondalup Line from Butler to Yanchep demands high-level co-ordination and planning for its program of works.

However, McGarrigle says upside surprises include the pleasure of working close to the beach, fresh air and a healthy supply of natural materials for “onsite sustainability initiatives” such as increased material reuse and reduced waste. His team is drawing on skills from a wide range of disciplines to deliver a project that might appear simple but has underlying intricacies. The design of the stations at Alkimos, Eglinton and Yanchep are “a far cry from the steel shelters on the edge of a platform” of yesteryear. He says incorporating surrounding

“The 32km extension of Perth’s passenger rail network will generate 3000 jobs” “The job has it all,” McGarrigle says. “Bulk earthworks, haulage, bridge construction, multiple types of retaining walls, station buildings, car parks and roads and rail infrastructure.” The surge in construction activity generated by Federal and State COVID-19 stimulus measures has created a contest for strong delivery teams. Large rolling sand dunes have necessitated installing mass retaining on the boundary in some sections. And the rail corridor is relatively narrow.

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landscape and services to deliver such vital community assets is highly motivating. Co-ordinating a variety of skills from multiple disciplines to deliver world-class services is the most exciting part of his job, according to McGarrigal — a 10-year veteran of CPB Contractors, which is partnered with Downer in the NEWest Alliance. NEWest won the $1.25 billion contract for the Yanchep Rail Extension and the 17.5km

Thornlie-Cockburn Link in December 2019. The 32km extension of Perth’s passenger rail network, the biggest since the 70km Mandurah line plan was unveiled in 2004, will generate 3000 jobs, 1680 for the $716m Thornlie-Cockburn Link and 1370 for the Yanchep extension. Thornlie-Cockburn, jointly funded by the Federal and State Government, will connect communities between the Mandurah and Armadale lines with new stations at Ranford Road and Nicholson Road, creating Perth’s first east-west connection between rail lines.

Community Connection Transport Minister Rita Saffioti tells WA Works Metronet has been designed not just to deliver world-class infrastructure and public transport but create vibrant and connected communities. “People want their stations to be wellconnected,” Saffioti says. “Parking remains a key priority, but we are seeing a growing number of people who want more accessible connections through bus, cycling and walking and a station surrounded by open spaces, landscaping, retail and hospitality.” She says the three new stations at Alkimos, Eglinton and Yanchep, each to be inviting spaces, are the first to go through a design review process.

Infrastructure

Initial earthworks on the Yanchep project extension in Perth northern coastal suburbs

Pinnacles of local culture They will have shared pathways for easy access and the architecture of each draws on the immediate area, inspired by Noongar stories and the local environment. Alkimos Station, for instance, will reflect the nearby limestone pinnacles, recognised as culturally important for the local Noongar people. “Our focus is to make sure our train stations can create commercial and housing opportunities for WA,” Saffioti says. “We believe our stations should be the centre of new communities where people have more choice about where they live, how they can travel and what activities and jobs they can have, all within walking distance.” The State Government’s activity centres draft policy, designed to increase the community benefit of Metronet precincts around train stations, is open for public comment until February 12. Saffioti has said the intention of the policy is to integrate residential, economic and lifestyle opportunities near public transport or retail centres to deliver consistent results across the state. “Activity centres are the building blocks of every community,” she says. The Yanchep Rail Extension and the Thornlie-Cockburn Link are scheduled to be finished in 2022 with train services by 2023.

McGarrigle says it is still early days, but new work fronts are opening up weekly, driven by a major effort in design and procurement. In the coming year, construction will evolve from the bulk earthworks and major structures phase to detailed earthworks, station construction, rail infrastructure and finishing works.  “It requires a large range of specialist design from civil to electrical, structural and mechanical, engineering resources and skilled operators and labour,” he says.

“The station builds commence with large earthmoving equipment, detailed concrete pours and heavy lifts and finish with building trades such as plumbing, electrical and painting. “Almost every construction trade will be engaged. When awarding contracts, “we need surety of capability to deliver, local content and Indigenous engagement,” McGarrigle says. “And we get satisfaction through delivery of works.”

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Getting tough on tendering Billions of dollars of WA Government infrastructure spending over the next few years is expected to bring great opportunities for those companies able to deliver the work. But COVID-19 has also increased the expectations on the tendering process, according to consultancy BidWrite co-founder David Lunn By Claire Tyrrell

s he unveiled the State Government’s response to the economic crisis caused by COVID-19, Premier Mark McGowan listed infrastructure as a key area of focus for spending. The $2.7 billion package announced in July brought the government’s total economic stimulus to $5.5b since the pandemic began. This included a $60 million building maintenance program and $66.3m for renewable energy technologies. An $87.6m upgrade of Henderson’s Australian Marine Complex, a $159m investment in ports, significant road and rail investment, including Metronet, and a boost to manufacturing are also included. As David Lunn, co-founder of tender

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consultancy BidWrite, explained, “there is a lot of money being pumped into this economy”. “Defence is still pushing towards 2 per cent of GDP as its spend target…(and)…there is funding being brought forward in response in part to COVID-19 recovery activities. “Stimulus measures are great, but we know they are not going to last forever.”

The competitive edge Lunn explained that trust, compliance and the concept of qualification were three pillars businesses could use to give themselves the best chance of winning work. Building trust with the organisations that advertise the work has become markedly different experience during the pandemic, he added. A lack of face-to-face interaction meant that business proposals needed to be more detailed,

as contractors would not receive the same level of forgiveness for information gaps without personal rapport with project developers. “More than ever, the proposal is having to

Infrastructure

type of safety system demonstration that would be required,” he said. Understanding the health and safety risks involved in a particular project was the first step to developing an OHS plan, Butterworth explained.

“The proposal is having to take the heavy lifting that business development used to be able to deal with”

take the heavy lifting that business development used to be able to deal with,” he said. “I think we are going to see a bit of a shift in how business development works, and the traditional paradigms of relationship building are getting tested. “You’d be a brave person to assume that your traditional way of relationship building and winning work is going to be the same going forward.” The introduction of online video conferencing to replace face-to-face meetings would be a big part of that shift, he said.

Ticking the boxes Lunn said the pandemic also heightened the need for businesses to be vigilant about whether their proposals ticked all the boxes. With limited personal interaction and an accelerated pace of procurement, the chance for businesses to explain their credentials was diminished, he explained. If government agencies lacked the time to form relationships with prospective bidders, they might hit the market early with an invitation to tender. “You’ve got to respond,” he said. “What we’re seeing is they’re stepping away from the traditional first pass shortlisting and then interview process. “They might push straight through to (contract) award, so you might not even get a chance to get in front of them to talk.”

How badly do you want it? When considering applying for a tender, it is crucial to ask whether a project would be the right fit for your business. Lunn recommended four qualifying questions: 1. Is it real? 2. Do we want it? 3. Can we win it? 4. Can we do it? “Stimulus does not necessarily equal largess,” Lunn said. “Just because there’s a lot of money around it doesn’t mean you are right for it. “We would always challenge anybody who is bidding in any context to ask yourself these questions before you invest in an opportunity, especially as now you might need to put more work into the proposal.”

Safety scrutiny For small and medium businesses, understanding the occupational health and safety (OHS) requirements around tendering for projects can be daunting. CCIWA Safety and Risk Consultant Matt Butterworth explained that knowing the specifics of what different project operators required was key. “It is not necessarily a cookie-cutter approach — it would be very specific and very customised depending on the vendor, and the

“Before a tender is submitted you need to understand the risk of the scope of work — that’s by understanding and reviewing the tender document,” he said. The extent of OHS documentation required shifted in line with the levels of risk associated with a project, he added. “For high-risk contracts the tender would require the supplier to provide evidence of their OHS management system … and the supplier should also be required to develop a health and safety management plan before the work commences.” Advice about constructing an OHS management plan can be obtained from CCIWA.

History’s lessons WA Department of Finance Executive Director of Strategy and Coordination Shaun Whitmarsh gave an overview of the funding environment at CCIWA’s recent WA Works conference. He said the last time WA saw such high levels of government stimulus was during the fallout from the global financial crisis in 2009. These measures came to an end in 2013, when the Small Business Development Corporation investigated the non-payment of subcontractors. “There were some really significant improvements that came about as part of that (including) the introduction of project bank accounts to improve security of payments to subcontractors and increased financial due diligence around checking the finances of contractors,” he explained. “There are really important lessons that we can learn from what happened back in 2013 (and) as we move into this next period of stimulus it’s important to keep that in the front of our minds.”

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HP’s new South Flank project has been built as “autonomous ready” to enable personnel to control and monitor all aspects of daily operation from the company’s Integrated Remote Operation Centre in Perth, according to Project Director Simon Thomas. But he told the recent Global Iron Ore and Steel Forecast conference the global miner won’t rush the ramp-up of the $4.9 billion (US$3.6b) project, which is scheduled to produce its first ore in mid-2021 after three years of construction. It will produce 80 million tonnes of iron ore each year and is designed to replace BHP’s Yandi mine — due to run down by mid-decade. However, achieving South Flank’s long-term run rate may take “several years”, Thomas said. “Being quite a large development, you can appreciate there are a lot of components to come together,” he said. BHP’s entire mine, rail and port system in the Pilbara would need to “adjust” to cater for the 145Mtpa coming out of the Mining Area C hub — a big jump from 65Mtpa currently. “We’ll do that over several years,” he said. “The intent is to start our first production through South Flank infrastructure in 2021, and then in the course of a couple of years ramp up that operation. “Keeping in mind, too, that we need to also manage the transition of the Yandi operation.”

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we call the Dash Maintainer tool. “This effectively allows us to do that diagnostic work remote from the machine using apps on a mobile device, tablet or other connected hardware,” he said. Separately, BHP began trialling electric light vehicles at the company’s huge Olympic Dam copper-uranium mine in South Australia in 2018 and now plans to expand the trial into the WA iron ore business, Thomas said. “Early results indicate significantly reduced maintenance time and positive operator feedback on the vehicles,” he said.

Safety boost from Dash Maintainer Thomas said an innovation developed to improve safety for its South Flank maintenance crews was now in use across BHP’s entire Pilbara operation. “We have a large fleet of excavators, diggers, haul trucks and the like,” he said. “Quite often the maintenance of that equipment requires access to machines while they are still live,” he said. Some of those activities, such as temperature, pressure and wear readings, require the machines to be operating or running as workers take readings. The risk of doing this “live work” was present through the entire industry, he said “The South Flank team, along with our technology innovation centre, developed what

South Flank fun facts • There are 200 mobile equipment “maintainers” in a total workforce of 800 • The workforce is 40 per cent women and 16 per cent Indigenous • It is the biggest Pilbara iron ore mining/ processing facility built in 50 years • The mining area is 2 kilometres wide and 26km long • Each of the 41 diesel-electric Komatsu haul trucks will carry 300 tonnes of ore • It has 22km of high-speed conveyors

Not a bridge too far Meanwhile, Fortescue Metals Group expects construction at its US$2.6b Iron Bridge magnetite project to start accelerating early in 2021, said

Pilbara pioneers tech Two key players in WA’s $15 billion iron ore construction boom share insights into the technology tipped to herald a new era of safer, more automated mining in the Pilbara, writes Stephen Bell

BHP’s Jimblebar mine

Chief Operating Officer Greg Lilleyman. “Into the new year (2021) is when we’ll really ramp up the major construction activity for steel erection and process equipment installation,” he said. “The first of the process equipment is starting to arrive on site. “This project is really where Fortescue will set ourselves apart from the pack with this super-premium Australian product, at scale,” he told the conference. Fortescue is forecasting first ore on ship by mid-2022 for Iron Bridge, which will be the first magnetite operation attempted by one of the three Pilbara majors. Lilleyman said Iron Bridge, 145km south of Port Hedland, would likely take “a year or so” to ramp up to its rated capacity of 22Mtpa. “It is an innovative design, the flowsheet, from most other magnetite projects.” It would allow Fortescue to run the mine with lower capital, emissions, energy and water requirements compared with traditional magnetite projects, he said.

provide components and service to the project. The deal follows the 100m GBP ($180m) original equipment order from 2019 which included Weir’s high pressure grinding rolls (HPGRs), manufactured in Holland. Weir’s machines will grind down the mine’s hard magnetite ore fine enough to liberate the iron and concentrate it, enabling Fortescue to export a high-grade concentrate to Asian steel mills. The equipment maker claims its HPGRs enable dry processing of ore and use “at least 30 per cent less energy” than alternatives. The HPGRs are a significant departure from traditional alternatives, such as ball mills, and their performance will be critical to keeping a lid

on operating costs, which have caused massive losses at other WA magnetite mines. Weir said it will build a new service centre in Port Hedland, thereby providing employment and training opportunities in the area, with a “particular emphasis on supporting greater Aboriginal representation in the broader mining workforce”. Weir Minerals President Ricardo Garib described the support deal as a landmark for the company. “Having helped design an energy and water efficient magnetite processing plant, we are delighted to provide operational support for Iron Bridge from 2022,” he said. Iron Bridge is a joint venture between Fortescue and Taiwanese conglomerate Formosa.

Rocking and rolling in the UK The UK supplier of the huge Iron Bridge grinding rolls says it will build a Pilbara service centre as part of a new $170 million support deal. Glasgow-based Weir Group won a 95 GBP ($170m) order from Fortescue in December to

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Resources

A peek at BHP’s new iron ore project A major new iron ore work prospect has landed, with BHP seeking interest from the supply chain for developing its Western Ridge project

By Stephen Bell

ust when you thought Pilbara iron ore construction opportunities were slowing down, along comes a major new development by BHP located next to one of the world’s biggest open cut mines. According to a new BHP WA Iron Ore listing on the ICN Gateway website, BHP is studying

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options for the greenfield development of its Western Ridge site, adjacent to the giant Mt Whaleback mine near Newman. “BHP WAIO is seeking expressions of interest from contractors experienced in delivering greenfield projects under a Design & Construct or Engineering, Procurement & Construction model,” the company says. The preliminary scope for the concept phase

includes a gyratory primary crusher, a 13 kilometre overland conveyor, a radial stacker, HV and power, maintenance facilities, civil and bulk earthworks and dewatering. You can view the Western Ridge listing on ICN Gateway at: gateway.icn.org.au/ project/4642/western-ridge-project If developed, Western Ridge would be the next big cab off the rank for BHP, which is putting the finishing touches on its $4.9 billion (US$3.6b) South Flank sustaining iron ore mine — a massive extension of the Mining Area C hub. South Flank is scheduled to produce its first ore in mid-2021. Western Ridge would also be a major boost to the iron ore supply chain, and for the nearby town of Newman, as construction of several other sustaining iron ore projects wind down in the next few years. It also promises another chapter for the Newman Hub, which includes the massive Mt Whaleback open pit, which was developed more than 50 years ago. The Whaleback pit is now 5.5km long and described as the biggest single open-pit iron ore mine in the world. In 2018, BHP said that since it began mining at Mount Newman in 1967, BHP had removed 3b tonnes of material, 1b of which was iron ore.

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BHP iron ore train at Newman

Rio Tinto is up and away at Gudai-Darri Global miner Rio Tinto said the WA supply chain has played a significant role in building its new airport and other supporting infrastructure for the Gudai-Darri (formerly known as Koodaideri) iron ore project in the Pilbara. The company’s Acting Iron Ore Chief Executive Ivan Vella said the construction phase for the mine has had a focus on supporting local businesses, with contracts valued at more than $2.3 billion awarded to Pilbara and WA businesses as of early November. The recipients included Primero Group, NRW, DTMT, Pindan, White Springs, Hicks Civil & Mining and Karratha Earthmoving & Sand Supplies, Vella said. “These contracts have supported approximately 2000 jobs in the construction phase and the mining operation is expected to support about 600 jobs on an ongoing basis,” Vella said. The new airport contractors included Primero Group, NRW, Worley and GHD together with NRW subcontractors Colas, Fulton Hogan, TEC services, Brookdale Contractors, Bennco and Karlka Fencewright, Rio said. The facility, able to accept jets such as Boeing 737s, A320s, F100s and King Airs, is operating

Royal Flying Doctor Service. Rio Projects General Manager for Gudai-Darri, Anthony Radici, said a significant amount of infrastructure at the mine had been built, including a new access road, a significant amount of the rail formation, two new bridges and “now a brand new airport”. The US$2.6b ($3.5b) Gudai-Darri project is expected to become Rio Tinto’s flagship high-tech mining operation once it begins ramping up production in 2022.

A job for SCEE four flights a week with additional services expected to be added to the schedule in 2021, the company said.

Safety benefits Expected to handle more than 600 workers a day at peak operating times, Rio said the airport will deliver safety benefits in terms of minimising employees’ interaction with vehicles. It would also help to manage employee fatigue thanks to a reduction in travel time from an alternate regional airport. And the facility would provide a safer landing option for Rio Tinto’s long-standing partner the

Meanwhile, Southern Cross Electrical Engineering (SCEE) won a $65 million contract from Rio for the plant electrical and instrumentation works at Gudai-Darri. The Perth-based contractor expected to begin site mobilisation late in 2020 with completion planned for December 2021. SCEE Managing Director Graeme Dunn said: “We are pleased to secure this significant award with such a longstanding and valued client as Rio Tinto for whom we have undertaken many successful projects in the Pilbara. “This further boosts our already strong order book and will provide a solid base of construction work in the resources sector into the 2022 financial year.”

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Resources

SensOre Exploration Manager James Potter and Chief Operating Officer Robbie Rowe inspect drill core at North Darlot

Sensing new mines A Melbourne-based start-up operating out of East Perth is looking to disrupt the global mineral exploration industry by using its proprietary technology to discover the mines of tomorrow By Stephen Bell

inding new mines is never easy, especially in Australia where many deposits outcropping at the surface have either been mined or picked over by past explorers. Recent big WA finds — such as Nova (nickel) or Winu (copper) — were found under surface cover and had to be located using sophisticated targeting technology. Even these methods, involving geochemical, magnetic, gravity and electrical techniques, sometimes deliver only the dart board, not the bullseye. Enter SensOre, a small technology company with very big ambitions. It has collected all the available geological

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data from WA surveys over the last three decades and used AI and machine learning to aggregate it into a multi-layered “data cube” that guides drilling campaigns for new mineral deposits hidden underground. The company, which is collaborating with BHP and IBM among others, believes its discriminant predictive targeting (DPT) technology will eventually enable a 10-fold improvement on current discovery performance and a subsequent 10 to 100-fold reduction in discovery costs. Such improvements would be revolutionary in WA, which posted a 17 per cent climb in mineral exploration expenditure last financial year to $1.7 billion — not all of it is well spent. If DPT is proved to work, the economic spinoffs could be enormous, as more high-grade mines will be located, and at much lower cost

than the current approach, which often lacks sufficient data to target orebodies effectively. SensOre CEO Richard Taylor doesn’t believe that a handful of recent discoveries — Rio Tinto’s Winu, DeGrey Mining’s Hemli (gold) and Chalice Gold’s Julimar (copper-nickel-platinum group elements) — points to a step-change in the success rate for traditional exploration techniques.

The trend is SensOre’s friend “This past year has seen an obvious uptick in discovery, but we’re about multi-decade trends,” he explains. “Yes, last year was a good year. But it comes after many poor years in the discovery area within Australia,” he says. “The long-term trend is basically a drop in grade and discovery rate in Australia, so what we’re hoping to do is to refresh mature areas.” Taylor says much of SensOre’s time is devoted to automating a process of “cleaning data quickly and efficiently”. “In the WA Geological Survey’s publicly available data there’s probably 35,000+ different

Resources

company surface sample and drilling submissions over the last 30 years. All of them in slightly different formats, and many of them subject to different errors. All of them with slightly different ways of describing key things like gold assay detection limit.” There are plenty of technology start-ups with big plans, but SensOre already has some household names on board to bolster its effort to supercharge discovery rates.

“So our business model is very much about performance-driven remuneration — we work with lots of companies, and we do targeting on their tenements, largely, in exchange for exposure to success if those targets are drilled and they turn into projects.” The BHP deal will be a closely-watched test of SensOre’s AI technology, but Taylor urges patience. “In our industry, in machine learning, there are people who say that they can do things quickly.

“The economic spin-offs could be enormous, as more high-grade mines will be located, and at much lower cost” BHP’s deal on nickel exploration In September, the company, which employs about 20 people, signed a deal with BHP’s nickel unit to investigate the global miner’s large exploration portfolio in the Northern Goldfields region. It involves “training” the DPT technology on specific deposit types and applying the knowledge gained to a pre-determined search space. The deal came two months after BHP said it had bought the Honeymoon Well project, and 50 per cent of the Albion Downs North and Jericho exploration JVs, from Russia’s Norilsk Nickel. The combined tenement package is about 50km from BHP’s Mt Keith mine and 100km from its Leinster concentrator. The package included: • The Wedgetail deposit, which contains a high-grade nickel sulphide resource. • A high-quality disseminated sulphide resource in the style of the Mt Keith and Yakabindie ore bodies. BHP’s Nickel West Asset President, Eddy Haegel, described the acquisition as an “exciting opportunity to enhance our world-class nickel resource base in Western Australia”. Nickel is described as future facing as it is expected to be in strong demand over the coming decade from the growing uptake of heavy duty, nickel-rich Li-ion batteries used in electric vehicles and energy storage systems. SensOre stands to benefit from the BHP exploration deal through fees for the targeting exercise and potential success-based payments on certain discoveries resulting from the technology. “For large companies, BHP included, they get the benefit of what is a decade-long development of technology and application of our AI machine learning approach to targeting,” Taylor says. “We get exposure to the fee-based revenue and milestone payments that may occur, based on discovery.

“Our approach is very much about taking the time and putting in the resources do it properly — a usual targeting exercise for us is measured in six months to a year, not a matter of weeks.”

What’s up, Watson? SensOre is separately collaborating with IBM, with the two companies seeking to combine IBM’s Watson platform with SensOre’s data cube and DPT technology. Taylor says the IBM partnership will provide

an interface that works for both resource and exploration geologists making use of data that in many cases is underutilised. Meanwhile, DGO Gold — chaired by veteran explorer and geologist Ed Eshuys — bought a 40 per cent stake in SensOre’s Yilgarn Exploration subsidiary in July for $4 million. The DGO funds will pay for drilling on Yilgarn’s gold targets, including North Darlot, Desdemona and Christmas Well, over 18 months. “The three targets that we’ve drilled this year went straight into mineral systems that were previously unidentified,” Taylor says. At the time of writing diamond drill core assays were awaited, but “in terms of what the geology is predicting, it’s been pretty spot on,” he says.

Conventional exploration

SensOre Data Cube DPT

Summer 2020 WA WORKS 29

Eyes on WA’s critical minerals after China price hikes As global trading tensions cause China’s critical mineral prices to climb, the US is driving high-level discussions to shore up Australia as an alternative supplier, writes Claire Tyrrell

merica sees WA as playing a major role in diversifying its supply chain in critical minerals, decreasing its reliance on China, US Consul General David Gainer says. China accounts for 90 per cent of the world’s rare earths production and dominates the minerals’ processing and refining. Recent surges in prices of rare earths coming

30 WA WORKS Summer 2020

out of China reflect a growing push from other countries to become self-sufficient in these precious commodities, analysts say. Perth-based Gainer told WA Works in an exclusive interview that it is in the interest of both Australia and the US to lower their reliance on Chinese supplies of the minerals. “Critical minerals are a top priority for us in diversifying the supply chain,” Gainer said.

Browns Range Northern Minerals Feasibilty

Pilgangoora Pilbara Minerals Operating

Yangibana Hastings Technology Metals Feasibility

Wodgina Albemarle/MinRes Shuttered

Critical Minerals Mt Weld

“It is certainly something we discuss regularly with Australia, as well as with other key allies who recognise that there is a need to … make sure there are strong, resilient supply chains.” Critical minerals including nickel, cobalt, lithium and several rare earths are used in an array of modern technologies such as electric car batteries and engines, smart phones, robots, weaponry and renewable energy. A BMO Capital Markets analysis says the price of neodymium, a common rare earth element used in magnet production, rose 50 per cent in the year to November 2020 and 27 per cent from November to December.

Australian made Despite the impending change of Government in the US, Gainer said the economic powerhouse will continue to look to Australia as a valued supplier of the minerals. “At the end of September, our President issued an executive order on critical minerals and critical mineral supply chains which clearly mentions Australia as a key partner,” he said. >

Lynas Corp Operating Kalgoorlie Processing Plant Mt Marion

Northern Minerals Feasibilty

MinRes/Ganfeng Operating

Mt Holland Kwinana Lithium Hydroxide Tianqi Shuttered Kemerton

Kwinana Nickel Sulphate BHP Construction first product 1H 2021

Albemarle/MinRes Construction

Wesfarmers/SQM Construction 2021

Mt Cattlin Galaxy Resources Operating

Greenbushes Talison Lithium Operating

Key Rare Earths Lithium Nickel

Summer 2020 WA WORKS 31

Resources

> “There’s still work to be done, but … I believe it will continue to be a priority (with) strong bipartisan support from the United States. “We’ve certainly applauded the Australian Government for their efforts in terms of diversifying the supply chain, and we look forward to the future cooperation.” The most visible evidence of US investment in the WA sector is Albemarle’s $1 billion Kemerton

“WA’s rare earths resources are largely untapped, with a number of projects at exploration phase” lithium hydroxide construction project near Bunbury, which is linked to its share of the Greenbushes mine. The North Carolina-based chemicals giant is targeting first sales by 2022 from Kemerton while scaling back expansion plans because of the current lithium downturn. However, conditions are expected to improve because of ongoing demand for the lithium batteries used in electric vehicles. The value of the global lithium value chain is tipped to grow to about $2 trillion by 2025, according to the recent ‘Building Prosperity — The importance of the United States to the Australian Economy’ report released by Deloitte and the American Chamber of Commerce.

WA dominance WA accounts for nearly half of the critical minerals projects identified in a new report highlighting investment opportunities for the burgeoning sector. The Association of Mining and Exploration Companies (AMEC) late last year launched its Critical Minerals Investment Opportunities prospectus, outlining Australia’s key projects in the space. Global demand for these minerals has grown

strongly in recent years and is expected to continue on that trajectory for the next decade, the report says. WA Mines and Petroleum Minister Bill Johnston said WA was well positioned to meet that demand. “Western Australia is the best location to meet the demands for the ethical and sustainable production of critical minerals,” he said. “Our State already has all the minerals you need to make batteries and it was recently confirmed that building a battery cathode manufacturing hub in WA is feasible.” Nearly half of the 42 companies profiled in the AMEC report are WA-based, including Chalice Gold Mines’ Julimar project — a copper-nickel prospect 70km north east of Perth. Julimar was discovered in March and drilling has intersected high-grade platinum group elements alongside nickel-copper-cobalt mineralisation within four large zones. Chalice says it aims to define a maiden mineral resource estimate by the middle of next year.

Rare earths hopes in Gascoyne Perth-based Hastings Technology is looking at a coastal plant site for its long-promised Yangibana rare earths plant in the Gascoyne. The company plans to extract neodymium and praseodymium, which are used in permanent magnets for electric vehicles, wind turbines and robotic equipment. Hastings aims to build a processing plant at an industrial coastal location, rather than the project site, to trim capital costs by accessing a gas pipeline at an industrial estate. Construction is expected to commence in the second quarter of 2021 and a plant location was being finalised at the time of writing. The Yangibana minerals deposit is located 250km north east of Carnarvon in the Gascoyne.

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Australian Vanadium, IGO, Mineral Commodities, Neometals, RareX, Pilbara Minerals, Tungsten Mining and Venturex Resources are among the other WA resources companies mentioned by AMEC. Australia is the world’s largest producer of lithium, the second to China in rare earths and the third largest producer of cobalt. Federal Resources Minister Keith Pitt said there was an “international buzz” around critical minerals and Australia was increasingly well placed to play a significant role as a supplier. “The coronavirus pandemic has further reinforced the need to diversify the highly concentrated supply chains of many critical minerals and for Australia to seize opportunities further up the value-chain by supplying more than just raw minerals to global markets,” he said. WA’s rare earths resources are largely untapped, with a number of projects at exploration phase and only one commercial rare earths mine at Lynas Corporation’s Mt Weld operation. Sydney-based Lynas plans to begin construction of a $500 million rare earths processing plant this year in Kalgoorlie. The new plant will upgrade rare earth concentrates from the Mt Weld mine near Laverton that are currently exported to Malaysia for processing. A Lynas spokesperson said detailed engineering and procurement for the processing facility were underway and the company had ordered a rotary kiln in July 2020. The project is expected to generate about 500 construction and 200 ongoing jobs.

Technologies Materials Supply List (sorted largest to smallest)

Very high

LREEs HREEs

High

Magnesium Niobium Germanium Borates Scandium

Medium

Strontium Cobailt PGMs Natural graphite

Sectors Batteries

Fuel cells

Renewables

Wind

Traction Motors

e-Mobility PV

Low

Indium Vanadium Lithium Tungsten Titanium Gallium, Hafnium Silicon metal

Very Low

Manganese Chromium Zirconium Tellurium Nickel, Copper

Robotics

Drones

3D Printing

Defence & Space

ICT

Semi-quantitative representation of flows of raw materials and their current supply risks to the nine selected technologies and three sectors. Source: European Commission

Summer 2020 WA WORKS 33

Construction

34 WA WORKS Summer 2020 Artist impression of ECU City Campus

Construction

Academia on the rise

Bolstered by a key stimulus package, three flagship WA universities — Curtin, Murdoch and Edith Cowan (ECU) — are developing a greater presence in the Perth CBD, ranging from full-blown campuses to innovation precincts, writes Claire Tyrrell

t present Perth’s university campuses are spread throughout the suburbs, from Fremantle in the south to Joondalup in the north. But the $1.5 billion Perth City Deal, a combined Federal and State stimulus measure unveiled last September, has inspired a rush of CBD development plans by local learning institutions keen to attract a new generation of students. And they are betting that building infrastructure in the heart of Perth will attract thousands of new enrolments. ECU, for instance, expects more than 8000 students and 1200 staff to be based at its new City Campus when it opens in 2025, growing to more than 10,000 students and 1500 staff by 2030.   The $695 million project will involve moving ECU’s Mount Lawley campus, including the WA Academy of Performing Arts, business, and technology divisions, to the CBD near Yagan Square. ECU Vice President Enterprise and Development Sonia Mackay-Coghill described the project as the “start of a new chapter” of urban university education. Tenders for the project, which is expected to generate 1400 direct and 1700 indirect jobs,

are expected to go out before the end of the year. Mackay-Coghill told attendees at the CCIWA’s recent WA Works conference the build would require specialist contractors, given its arts component. “The performing arts requirements swing us straight into this specialist space (with) theatres, rehearsal spaces, acoustics, lighting considerations — there’s really, really complex delivery on what is required,” she said. In November expressions of interest were put out for the lead architect and design engineers, which are expected to be appointed in early 2021. >

Summer 2020 WA WORKS 35

Construction

> ECU City Campus Technical Architect Geoff Warn said the project was unprecedented for Perth. “It is the type of challenge that creative practices are trained for and dream about,” he said. “This is the visionary project that Perth city has been wanting for a long time, which will have definite benefits for both the arts and business, opening up a world of new possibilities.” Early works are anticipated soon, and main construction should commence in the middle of 2022. ECU will chip in $300m of the project cost, with the State ($245m) and Federal ($150m) governments tipping in the remainder.

Murdoch’s vertical campus Murdoch University, meanwhile, says it will create a vertical campus in the CBD and expand its health and knowledge precinct near Fiona Stanley Hospital within the next three years. It will receive $50m from the State Government for the project via the Perth City Deal, with an additional $200m to be delivered to the project from the university and its private partners. As the funding was announced in September 2020, Murdoch Vice Chancellor Professor Eeva Leinonen said plans for the project were “years in the making” and were now well advanced. “The new university campus will position Perth as a global hub for digital learning and entrepreneurship, supporting students with jobready skills in areas like online security, business analytics and FinTech,” Professor Leinonen said. She said the campus would have an emphasis on technology and include courses in gaming and computational and systems medicine. It would also feature flexible learning where students could accelerate course progress. The CBD development will include Perth’s first eSports stadium, which will be linked to Singapore and East Asia, and a Science, Technology, Engineering and Mathematics international college.

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WA developers Hesperia and Birchmead Property Group plan to develop a residential and commercial property project at Murdoch’s precinct. Expected to create 750 construction jobs, the project involves a 10-storey building on a 3483 square-metre site that will include 120 apartments.

“Benefits for both the arts and business, opening up a world of new possibilities” The development adds to Murdoch’s $200m Medihotel, the first stage of the university’s health precinct. Expected to generate 2000 jobs, construction of the precinct is expected to begin in late 2021 and be built by 2023.

Curtin’s ‘historical heart’ Curtin University plans to bring more than 5400 students to the CBD over the next decade via its Historical Heart Cluster. The development plan includes a new healthcare and clinical training facility, an expansion of the graduate school of business and law, and greater postgraduate capacity in business and technology. Upon securing $50m as part of the Perth City Deal, Curtin University Vice Chancellor Professor John Cordery said the university was pleased to be able to expand on its existing presence in Murray Street. He said the project supported the regeneration of the historical heart of the CBD, with a focus on Indigenous cultural awareness. Cordery described the project as a “long-term strategic investment” that would play a part in increasing WA’s appeal as an international student destination. Final costing and job creation are still being confirmed for the project. The facility is expected to be open by 2023.

Construction

Building hydrogen super buses Two established WA companies are partnering with an American start-up as part of moves to set up a hydrogen bus manufacturing hub in Perth By Stephen Bell

ocal companies WarpForge and Australian Transport Group (ATG) believe they are on the road to making hydrogen “super buses”, using technology imported by their US-based partner Hyzon Motors. Canning Vale-based WarpForge plans to use its sophisticated 3-D printing technology to manufacture an integrated bus shell made of composites and combine it with Hyzon’s fuel cells to produce a prototype of the buses. And, as part of a separate joint venture deal, Cockburn-based ATG wants to deploy the first super bus on Australian roads as it looks to decarbonise its fleet of 950 vehicles. Hyzon’s Singapore parent has built hundreds of hydrogen buses in China and is driving the WA project, which aims to realise longer ranges, reduced manufacturing costs, improved safety features and emission-free driving, says Hyzon co-founder and CEO Craig Knight. He told WA Works the prototype bus could be finished in the first half of 2021. WarpForge will build the bus platform and shell, while Hyzon’s electric motors and batteries will be imported, followed by local assembly, integration and testing. The prototype will “validate” the hydrogen bus production process for potential clients and enable the partners to begin larger scale production, Knight said in an interview. “We’d like to get to 200 to 300 buses per year reasonably quickly … within three years. “We’re negotiating with one or two off-takers of these super buses and the whole reason we want a prototype is so we can bring those negotiations to a close. “It’s our view that we’ll have one, two, or more, agreements which go through this natural

validation phase into scale rollout, starting with the demonstration of the technology from the prototype bus,” he says. The partners will then move into “fleet scale” of 10-20 buses to “validate the operation in an everyday sense and then into genuine fleet replacement”. Hyzon was established in January 2020 as a spin-off from Singapore-based Horizon Fuel Cell Technologies, which delivered about 400 fuel cellpowered commercial vehicles to China last year.

adoption of fuel cell electric vehicles, but the barrier is a lot lower if you operate out of a depot where you can fuel 100 or 200 vehicles with a single piece of infrastructure. “So you don’t need to wait for hydrogen networks to be built up,” Knight says. The WarpForge venture is separate to Hyzon’s recent deal with Fortescue to provide an initial fleet of 10 hydrogen coach buses, built in China, for the miner’s Christmas Creek site in the Pilbara. However, both projects are indicative of

“Like to get to 200 to 300 buses per year reasonably quickly … within three years” “This is not a new technology where we’ve only done one or two prototypes … there are hundreds of them out there doing their daily jobs,” Knight says.

The benefits of a predictable route Hyzon is focused on “back to base” commercial vehicles, because only a minimal investment in hydrogen infrastructure is needed compared with “trying to power vehicles that may go somewhere unpredictable — taxi fleets, for example”, Knight says. “With municipal bus fleets, corporate coach fleets, delivery vans, refrigerated delivery trucks for restaurants … you know where these things are going to every hour of every day. “Hydrogen infrastructure is a barrier to

a recent flood of WA hydrogen deals, spurred by the push from governments and industry to reduce carbon emissions from transport and electricity generation. Knight says Hyzon’s and WarpForge’s joint memorandum of understanding with ATG for deployment of the first SuperBus on Australian roads offers an opportunity for the joint venture to introduce its technology into the Australian bus market. “We see this agreement as an important step in our journey to decarbonise the country’s bus fleets, the urgency of which is reflected in the recent Transport for NSW Expression of Interest targeting zero emission bus trials that will ultimately lead to the replacement of the 8000 transit buses in NSW,” he said.

Summer 2020 WA WORKS 37

Construction

Digging deeper for skilled workers To a casual observer, it’s an oversized playground. Behind the tunnels, the kinetic sand roadworks modelling, VR goggles and arcade-game diggers is serious business. The endgame? To reduce the dramatic spike-slump demand cycle for skilled WA workers, writes Helen Shield

hether you see it as Scitech for all things building and construction, a mini-trade museum or a virtual reality training shed, there is a serious economic imperative behind the handson construction showroom operated by the Construction Training Fund (CTF) in Belmont. It exists to meet WA’s need for skilled workers. A visit to the 104 Belgravia Street centre, which hosts school groups from year six to year 12, will be the first exposure many of our State’s young people get to a trade.  CTF Chief Executive Officer Tiffany Allen has made it her mission to ensure employers, school children and their parents go on a discovery tour, not just of the centre but of the range of prospects on offer in WA’s building and construction sector. “A construction job is not just a shovel in your hand sweating in the sun — there’s —

38 WA WORKS Summer 2020

much more to it,” Allen says. “It’s a good career pathway,” she says, noting that Dale Alcock Homes founder and Fremantle Football Club President Dale Alcock, and BrownNeaves Investments founder Gary Brown-Neaves are both millionaires who “started with a trade”. Allen, who took the top job at the CTF in August, has compiled a challenging to-do list. Top of the agenda is communicating to school children, parents, employers and industry about the existence of the CTF and its purpose — to fund a skilled workforce and help with midcareer retraining, while also helping to produce a less volatile outcome for an industry plagued by boom and bust, skill gaps, price spikes and funding failures.

A pipeline of work The fund is involved in the State Government’s

Pipeline of Work project, a compilation of the $27 billion of WA projects in the offing and, optimally, a pathway to government and private industry working together to map out project and workforce needs.  “We are getting the government picture, but we don’t see the private sector,” Allen says. “By industry providing us with as much accurate information about private sector work, say in residential or private land development, it will help us build a more accurate workforce plan. “Sharing that information is one of the (big picture) benefits and what we want to build on at the CTF is being a central hub of data to forecast skills needs, so that will inform investment in training.” The CTF, a State Government initiative designed to ensure the industry can meet its need for skilled workers, is financed via a levy on all construction

Construction

School leaver Zak Groenewald-Shield ponders his future career options at the Construction Futures Centre in Belmont

jobs of $20,000 or more. Resources companies started contributing in 2018. Allen says all government agencies planning infrastructure projects are now overlaying their plans so that it’s clearer to all participants what skills will be needed to deliver on those. “We can get better at planning out what the workforce needs are and whether its just a six month gap or a four year gap we are filling,” Allen says. “We will never be a just-in-time provider because apprenticeships are four years. “We are also working with employers to work out how to best help and make it as easy as possible for them to have an apprentice.” Apprenticeship Support Australia Manager Lena Constantine says many employers are simply not aware that they are eligible for generous Federal and State government assistance for apprentices and trainees. Constantine argues that as well as “completion bonuses” Federal and State governments need to increase — not decrease — funding and training support when the economy slows to ensure that employers are still training up workers ready for the next uptick. “The cost (of funding cutbacks during slowdowns) in lost productivity when the economy picks up is huge,” Constantine says. “If projects can’t get underway because of lack of skilled labour, we lose out.

“We see wage inflation due to employers battling for skilled labour, skills being sucked up into the mining sector (which has a big impact) on other sectors’ productivity and sustainability. “WA has a small population and we are very isolated. We need to train more local people in the skills relevant to local industries, so we are shielded from the impact of (unforeseen events such as) a closed border.” Constantine says WA faces shortages in: • Construction trades – plasterers, concreters, bricklayers, carpenters and electricians; • Manufacturing and defence – welders, fabricators, plant mechanics and fitters; • Mining – heavy duty mechanics, belt

splicers and drillers. • Transport and logistics – truck drivers and warehouse operators; • Other – agricultural mechanics, hairdressers and chefs. Constantine says ideally employers would have access to a single tool that tells them all of the subsidies, State and Federal, they are eligible for. She has previously raised concerns about the dramatic fall in WA trainee numbers from 34,000 in 2012 to 17,000 in 2019, a figure compounded by a 50 per cent completion rate. The reasons for this are varied, she says, but can include lack of understanding of what the trade requires and funding support changes. Allen, meanwhile, says the CTF is working on a more user friendly portal for employers to get access to funding support for trainees and apprentices and hopes to have this working smoothly in the first half of 2021. She says there’s room for smarter use of technology and survival innovation. “Sometimes that means we need to retrain the workforce because the way that we built before will not keep pace,” Allen says. “We need to support a transition into a specialist area or to develop specialist skills. We will support the cost of that retraining, so the levy cycles straight back into the industry and feeds workforce development.”

Summer 2020 WA WORKS 39

Major Projects List

Exciting blend for new list An eclectic mix of new hospital, gas and iron ore infrastructure dominates the summer edition of WA Works’ exclusive Major Projects List By Stephen Bell

A Works has identified about $3.8 billion worth of fresh projects for the updated list — a significant sum that should bring plenty of cheer to the supply chain as it tiptoes into a new year. The latest batch is a significant increase on the projects identified last quarter. However, the State Government’s proposed $1.8b replacement of King Edward maternity hospital, accounts for nearly half the value of the 10 new listings. It is worth noting that the new hospital, likely to be built north of ‘G’ Block in the Queen Elizabeth II Medical Centre, is contingent on the McGowan Labor Government being returned to office at the March election. The supply chain impact of the hospital is significant by any measure, with the State Government estimating the project will generate more than 1400 construction jobs. Suppliers, however, await more detail on the nuts and bolts, including the building design, procurement timetable, contracting arrangements and local content. The second-biggest project by value is APA Group’s $460 million Northern Goldfields Interconnect gas pipeline — a real shot in the arm for WA’s traditional oil and gas sector that’s has been rocked by delays at big upstream projects such as Woodside’s

40 WA WORKS Summer 2020

Scarborough/Pluto (gas) and Santos’ Dorado (oil). The 580-kilometre 12-inch pipeline will connect emerging gas fields in the Perth Basin to the minerals rich Goldfields region and fuel new mine developments, according to Sydney-based APA, which tips 500 construction jobs. Site works could begin in the second half of the year.

A glimpse of BHP’s new project BHP’s exciting Western Ridge iron ore project, yet to be costed, is another emerging opportunity after the global miner listed the greenfield development at its Mt Whaleback site near Newman on the ICN Gateway website. Details are scarce, but the preliminary scope — including a gyratory primary crusher and a 13km overland conveyor — suggests that another big iron ore project will blossom in the next year or so. With the rush to renewables showing no signs of abating, there are a couple of notable projects this issue, led by Yarra/ENGIE’s $70m Yuri green hydrogen and ammonia project in the Pilbara. The French-Norwegian partnership recently published a feasibility study on the Australian Renewable Energy Agency (ARENA) website, concluding the project could kick-start a renewable hydrogen hub near Karratha. Yuri would be integrated with Yara’s existing ammonia plant, and produce renewable hydrogen

from water via electrolysis, commencing with onsite solar power. The other green energy initiative is Ecograf’s planned $100m (US$72m) spherical graphite plant, to be built in two stages in the Rockingham strategic industrial area. Site work on the first stage, tipped to produce 5000 tonnes per annum of battery-grade graphite, would begin in mid-2021, leading to a second stage ramping up to 20,000tpa, Ecograf CEO Andrew Spinks told WA Works. GR Engineering is expected to be named as EPC Contractor for the project, which would generate 275 construction jobs. The project would see WA graphite joining lithium hydroxide (Tianqi and Albemarle) and nickel sulphate (BHP) as key downstream products targeting the growing demand for the Li-ion batteries used in electric vehicles.

Apartment living Meanwhile, Perth residents’ growing fondness for apartment-style living has generated several new projects in the city and western suburbs, including Blackburne/Multiplex’s $360m The Grove Residences in Claremont, which launched in November. The project, on the border of Peppermint Grove, Cottesloe and Claremont at the site of the old Sunset nursing home, features a range of large, 1-6 bedroom residences with 51 designs by Blackburne in conjunction with MJA studios. Depending on sales off the plan, construction could begin in Q1 2021. Elizabeth Quay is also in its latest growth spurt with construction underway at CA & Associates’ $300m Elizabeth Quay West apartments project. And Brookfield Properties hopes to kick off construction this year for its $367m Elizabeth Quay Towers project, expected to include towers of 58 and 21 stories next door to Brookfield’s One The Esplanade building earmarked as Chevron’s new Australian headquarters. The new list also boasts a significant Defence opportunity — the $300m Maritime Underwater Tracking Range project, which is expected to go our to tender early this year (See feature page 46)

The Grove Residences

Construction

Conversion opportunities loom at BP Kwinana A potential $100 million construction opportunity is brewing in Perth’s south after BP flagged the conversion of WA’s only oil refinery into a fuel import terminal and a potential green energy hub By Stephen Bell

P has started planning for the conversion of its Kwinana refinery, including workforce requirements, after announcing the closure of refining operations due to a regional oversupply of products such as aviation and car fuel. The energy giant also blamed sustained low margins for the shutdown after the Australian market was “structurally changed” by the continued growth of large-scale, export-oriented refineries throughout Asia and the Middle East. Instead, it aims to initially convert the site to a fuel import terminal, a decision affecting about 650 workers — 400 permanent staff and 250 contractors. Once operational, the receival facility will employ about 60 people. WA Works understands that oil refining will cease by February/March, followed by an 18-month construction period to convert the refinery to fuel imports by 2022. The refinery operations, shutdown activities and initial terminal conversion will be completed by incumbent contractors, “predominantly with the workforce they already have on site,” a BP spokesperson said. In this phase, some “minor specialized activity will be undertaken by engaged contractors”, he said. Meanwhile, the company was progressing planning to confirm the scope for “terminal optimisation, demolition and clean energy feasibility work”. “Some of these activities may be subject to tender — details of these scopes are not expected to be finalized until at least mid-2021. “Workforce requirements are subject to further planning,” he added. It is understood the main areas of construction are likely to be around jetty improvements, tank conversions and piping. Prospective suppliers can contact BP Kwinana refinery via email to aucustcare@bp.com referencing BP Kwinana refinery in the subject line.

Clues to the cost The conversion project cost is yet to be determined, however similar work last decade at BP’s former Bulwer Island refinery in Brisbane cost more than $100 million, WA Works understands. BP Australia Head of Country Frédéric Baudry said the decision to cease refining was a difficult one and “not in any way a result of local policy settings”. “Converting to an import terminal will not impact the safe and reliable supply of quality fuel products to Western Australia; however, it will require fewer people to run,” he said. “BP is committed to playing a leading role in growing Australia’s future prosperity, making significant investments in natural gas production, as well as in convenience and mobility businesses,” Baudry said.

Ironbark drilling This would include building on its position in the North West Shelf joint venture through gas exploration at the Ironbark gas prospect.

Drilling of the prospect started on October 31 and the Ironbark-1 well was expected to take about 85 days to drill to the primary target beneath the seabed in water depths of 300 metres, according to BP’s joint venture partner Cue Energy. Ironbark-1 will test the gas prospect, which has a best estimate of 15 trillion cubic feet of prospective recoverable gas resources, according to Cue.

Clean energy Meanwhile, the company also planned to invest in retail growth, as well as progressing low carbon projects with Lightsource BP. In addition to the import terminal investment, BP said it would explore future options for the site, including a potential clean energy hub to harness the technologies required for the decarbonization of the WA economy. The hub could produce and store lower carbon fuels, including sustainable aviation and marine fuels and waste-to-energy solutions such as renewable diesel, the company said. BP is also assessing the feasibility of a large-scale hydrogen export plant in Geraldton in partnership with the Federal Government. “We are particularly excited by the shared ambitions with Western Australia to be net zero by 2050 and the opportunities this can offer,” Baudry added.

“The Australian market was “structurally changed” by the continued growth of large-scale, export-oriented refineries”

Summer 2020 WA WORKS 41

Construction

Stellar robot is one out of the box An automated and transportable power unit being developed in Perth is the latest evidence of WA ingenuity coming to the fore as industry transitions to a more flexible and lower carbon energy sector

By Stephen Bell

modest warehouse in Welshpool could be the birthplace of a new renewable energy manufacturing business if Stellar Burst Energy has its way. The recent public launch of the company’s MK1 stand-alone power system (SPS) boasted a live demonstration of what is described as

42 WA WORKS Summer 2020

sustainable renewable energy in a box — in this instance, a 6-tonne steel container. The Minister for Indigenous Australians Ken Wyatt was invited to officially launch the product, and as the crowd watched he simply pushed a button on the side of the green container. What followed resembled a Transformer movies scene, where a car or a suitcase magically turns into a giant robot.

In the case of Stellar Burst, the box unfolds slowly and safely like a mechanical butterfly gradually emerging from a cocoon: its “wings” consisting of 30 industrial solar panels. Dubbed MK1, it is the first of multiple power generation units able to be transported on the back of a truck to a remote mine site or community. The company says MK1 will be ready to use immediately from its battery supply when placed in position and start to produce its own power in 39 minutes once the solar panels are deployed — much faster and cheaper than fixing the solar arrays into the ground. Stellar Burst estimates its invention could be half the cost of installing a fixed solar-powered SPS. Moreover, the power unit can easily repack itself to be transported to other locations once the job is done all with the press of a single button or remotely via an app. A compelling feature is the ability to autonomously stow itself in high winds or adverse weather conditions. The MK1 prototype, manufactured by in-house engineers over the last three years, was produced to prove the concept and show the technology to a small pool of potential customers.

Construction

From compost to solar power in a box New and improved Director Lou Quistini told WA Works the company is now making the various components needed to manufacture three new and improved units, dubbed MK2. The new MK2 units will be lighter (at about 5.5 tonnes), more compact, and unfold in under 15 minutes — less than half the time taken by MK1.

to put into our hire fleet, to get the products out and road tested,” Quistini said. “One of our units can power a gatehouse, for example, on a remote mine site which would generally have a 20 to 25Kva diesel generator running 24/7. “Replacing one 20Kva Tier 4 generator would reduce fuel usage by more than 26,500 litres per annum and reduce

“Replacing one 20Kva Tier 4 generator would reduce fuel usage by more than 26,500 litres per annum” Stellar Burst plans to offer customers the choice of outright purchase or hire agreements. “And we're also offering the client the opportunity to hire for a period of time and then to purchase that same unit,” Quistini says. The MK2 units will be built in the Welshpool warehouse, helping the company to learn how to scale-up manufacturing and “work out the best methods of dealing with bulk orders”. “We've started manufacturing three units

carbon emissions by up to 70 tonnes per annum,” Quistini said. Other benefits include reduced land rehabilitation costs and the ability to join multiple units. In remote WA, most off-grid power installations are fuelled by diesel, so the production of renewable power from the sun is a big selling point for potential customers — many of them miners or contractors looking to reduce their environmental footprint.

The concept for the prototype was triggered three years ago when Quistini’s long-term business partner Neil Marsh was approached by a mining company to supply a composting unit to treat food waste. “I think it was a 300-person campsite in a remote North West mine site and we started down the track of wanting to purchase a unit to hire to the mining company,” Quistini recalls. “As we were sitting down discussing the composting unit, we started talking about what was going to power it, and generally in the remote North West, it’s diesel generators, so we thought that that was kind of defeating the purpose of turning food waste into compost using fossil fuels. “That’s when the penny dropped for us, where we thought, ‘Well, there’s got to be a better way of providing energy as an alternative to fossil fuel” he says. The idea soon developed into a passion and three years later Lou and Neil have realised their goal in manufacturing a renewable power source that is clean.

Summer 2020 WA WORKS 43

The Big Picture A gem of a project transitions to a five-year closure: Rio Tinto’s Argyle diamond mine has dug up the last of its precious gems, marking the start of a five year decommissioning period for the world-scale project in WA’s Kimberley region. The operation produced more than 865 million carats of rough diamonds over 37 years, becoming the world’s largest producer of coloured diamonds and virtually the sole source of the rare pink gems. The closure process will include land rehabilitation. 44 WA WORKS Summer 2020

Summer 2020 WA WORKS 45

Defence

Subsea suppliers tracking well for

Defence work A $300 million defence prospect has surfaced with a new underwater tracking range to be built in WA By Stephen Bell

A industry is expected to play a key role in the Navy’s Maritime Underwater Tracking Range, the latest program aimed at filling a gap in Defence’s Indian Ocean capability and vigilance in coming years. The range — to replace the original system that ceased operating in 2012 — will use acoustic sensors to capture and relay information on the location and movement of assets that are operating within the tracking field. “By investing in technology which will strengthen our understanding of the best and most effective way to use our weapons, decoys and platforms, we are enabling our submarines and other maritime warfighting capabilities to operate with superiority while protecting Australia’s interests,” Defence Minister Linda Reynolds said. The tracking range is expected to provide the Navy with sub-surface tracking capability and “optimised preparedness” as platforms such as the Attack submarines, Hunter frigates and Arafura patrol vessels start to be delivered. “An underwater tracking capability is also important to the development of joint and collective warfare tactics and torpedo countermeasures,” a Defence spokesperson told WA Works.

46 WA WORKS Summer 2020

The project scope, valued at more than $300m, includes delivery of three integrated elements consisting of the following tracking ranges: • Deep water (DWTR), located in the WA Exercise Area (WAXA), with support facilities ashore at HMAS Stirling; • Shallow water (SWTR), also located in the WAXA; and • Deployable (DTR) that can be deployed to provide additional capability in other geographical locations or to augment the DWTR and SWTR. The spokesperson said Defence intends to release a request for tender (RFT) before the end of January 2021. “Commencement of construction will be dependent on Government approval once the RFT process is completed,” the person said. “This capability is intended to be maintained for the next three decades, and it is expected to maximise Australian industry involvement in areas such as building construction and maintenance, underwater sensors, data cabling, underwater maintenance, software development and signal processing.”

Slow start to Attack Class Meanwhile, the Federal Government’s contentious $50 billion Attack Class submarine program is also starting to attract more industry interest after a slow first four-and-a-half years. >

Defence

Summer 2020 WA WORKS 47 The original Barracuda design for the Attack Class submarines. Photo: Defence

Defence

Minister Reynolds accepted risks associated with the design and construction of the Attack submarines. “Submarines push the boundaries of engineering excellence, there is no doubt about that, and it requires the smartest minds a nation can muster,” she said.

Docking, but no sign of full cycle

> Defence says more than 100 companies in Australia have applied to head contractor Naval Group to manufacture 23 specialised items of equipment for the submarines that are due to start rolling out of Osborne, South Australia, early next decade. “These Australian companies will compete for work that has been assessed by Naval Group as being worth up to $900m,” Reynolds told the recent Submarine Institute of Australia (SIA) conference. “They have formally lodged interest to become part of the Attack Class Submarine Program as tier one suppliers for equipment, ranging from the submarine’s main shaft line to the weapons handling system,” she said. And nearly 2000 Australian businesses have registered their interest in broader supply chain opportunities through the Industry Capability Network (ICN) portal, she added. The registrations follows a call for expressions of interest from Australian industry for work packages on the decades-long Future Submarines program, which was awarded to France’s Naval Group in April 2016. US-based Lockheed Martin also won a deal later that year to integrate the combat system with the 12 new submarines, which are now in the design phase ahead of the start of construction in 2022-23. Since these key contract awards, the program has attracted controversy because of media and politicians speculating about cost overruns and the lack of opportunities available for Australian industry to participate. Naval Group’s campaign seeking EOI from Australian suppliers remains open until February, according to a Defence spokesperson. “Depending on the response from Australian industry, it is expected that the first contracts will be entered into by Naval Group Australia in the first half of 2021,” the spokesperson said. “Equipment required ahead of the delivery of the first future submarine will be delivered

48 WA WORKS Summer 2020

in a phased manner consistent with the Attack class submarine design and build schedule. The equipment includes: Air induction mast, blowing panel, blowing valves, bridge fin panels, bulkhead doors, bridge deck fan converters, fin stabilisers; garbage ejector, heat exchangers, hull hatches, weapons handling, moving assembly, probe ejector trunk, pump jet module, shaft line, sonar array streamlining, steering gear, thrust block, vent press valves and PMS (platform management systems, software and hardware).

As for the nation’s long-serving Collins class submarines, the mystery of whether their major sustainment will move to WA — or stay in South Australia — remained unsolved at the time of writing. The vessels are based at HMAS Stirling near the Australian Marine Complex (AMC), where the Federal Government-owned ASC conducts minor repairs and mid-cycle maintenance, whereas the much more extensive (and lucrative) full cycle docking is undertaken in Adelaide. The State Government has been pushing for the shift of full cycle work to WA for about two years, but its campaign, crafted around the theme of “it’s in the national interest” appears to have had little impact to date. “By partnering with Australian industry and pursuing capability improvements, this Government is ensuring the Collins class will continue to serve our national interests ahead of the arrival of the future submarine force,” Reynolds told the SIA conference.

“Nearly 2000 Australian businesses have registered their interest in broader supply chain opportunities” On budget! The multi-decade Attack Class submarine program represents the biggest defence acquisition program or project in Australian history, according to Reynolds. In response to widespread media speculation that the Attack program is way over budget even before construction starts, Reynolds said the most effective way to measure the cost performance of any decades-long project is through “constant dollars”. “In the 2016 Defence White Paper, it had an estimated acquisition cost of the equivalent of $50b in 2016 constant dollars. “And today, with the program now well underway, the estimated cost is still $50b in 2016 constant dollars,” she said. “Let me be very clear — the Attack Class submarine program is being driven to this budget, and Naval Group has assured me they are on track to enter (the) Systems Functional review milestone in January 2021.” Though rejecting claims of a cost blow-out,

“Through three cycles of docking both in South Australia and Western Australia — with planned upgrades and also with updates — the Collins Class will continue to exceed international benchmarks,” she said. “Effectively, every 10 years they are a new boat.” Reynolds said this financial year’s budget includes $663m for Collins sustainment, with an estimated 80 per cent-plus Australian industry content. And there will be $221m in capability and other updates, she said. The life of type extension (LOTE) program, meanwhile, is set to begin in 2026. It will involve each of the six Collins boats being out of the water for two years to undergo a full cycle docking to extend the fleet life until the 2050s. Reynolds said the Government will consider LOTE works, including updates to the diesel engines, the main motor, and power conversion equipment.

Defence

Craving for a graving dock The State Government is poised for a feasibility study into building a $500 million-plus graving dock in WA to enable the repair and construction of bigger naval and commercial ships, writes Stephen Bell

f built at Henderson, a graving (dry) dock would complement the existing floating dock at the State Government-owned Australian Marine Complex (AMC) as military traffic increases this decade due to the Federal Government’s planned $270 billion splurge on defence. A dry dock — potentially part-funded by the Federal Government — would also confirm the Henderson complex as Australia’s second key marine defence hub and enable it to service allied navies. “At the moment, we don’t have a graving dock in WA — there’s only one and that’s in Sydney,” Defence West Executive Director Matt Moran told the recent WA Works Conference. “That’s going offline in the mid-2020s, so we won’t have a graving dock in Australia,” he said. “And there’s a real appetite for one in Western Australia. “A graving dock would be half a billion dollars-plus expenditure and if we could get one in Western Australia, we would be able to build larger ships. “We would be able to sustain US navy vessels,” Moran said.

Feasibility details looms Expanding on Moran’s comments, a Defence West spokesperson told WA Works the State Government’s strategic infrastructure and land use plan (SILUP), released late November, outlined a range of potential infrastructure

improvements at the AMC to enable the delivery of current and future shipbuilding and sustainment projects. “It will guide future investment in the AMC, including the potential for the future construction of a range of projects, including a graving dock,” she said. “Technical and feasibility studies will be undertaken as part of the program of 17 AMC infrastructure studies to be delivered in the next 18 months. This includes a feasibility study into a large vessel dry berth. “Future investment decisions will be subject to the outcome of feasibility studies, the capital and recurrent funding requirements, and other considerations.” The State Government flagged its willingness last year to invest in a dry dock as part of a pitch to the Federal Government to move the full cycle dockings of Collins submarines from Osborne in South Australia to the AMC in Perth’s south. The move would consolidate all the maintenance and sustainment of the submarines, which are based at Garden Island near Henderson, in WA. But the mooted shift has become politically contentious as the Federal Government drags its heels on a decision.

A large vessel berth has a basin that is flooded to allow vessel access, and then drained so that the vessel rests on cradles or support in a dry environment. Building one at the AMC would enable major maintenance activity now carried out at Garden Island graving dock in Sydney Harbour, such as the Auxillary Oiler Replenishment (AOR) vessels and the Amphibious Assault Ships (also known as Landing Helicopter Dock), to be done in WA. Spanish contractor Navantia, which is building two new AORs (and sustaining them for a period of five years) for Defence, has also previously proposed building an LNG tanker repair hub in WA, potentially using a new dry dock at the AMC. A large vessel graving dock might also attract large cruise operators to do more maintenance in Henderson rather than in Asian hubs such as Singapore. The State Government, meanwhile, has moved to upgrade other docking infrastructure at the AMC as part of its COVID-19 stimulus measures. It recently committed to spend $87.6 million on new supporting infrastructure at the complex. 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 says. The vessel transfer path should improve connectivity between the floating dock and the various shipbuilding and sustainment facilities, including BAE Systems, AMC and Civmec.

Docking bigger ships Development of a dry berth would include supporting vessels and cranage, along with the dredging of an access channel.

Summer 2020 WA WORKS 49

Powering up the network A farming background has come in handy for new Western Power CEO Ed Kalajzic as he plots a course to shift the corporation’s ageing poles and wires network towards a decarbonised version mostly built on standalone power systems, writes Peter Milne

ust over a year ago Ed Kalajzic had never worked in power, government, or a regulated industry. Now he is Chief Executive of Western Power. “Sometimes timing works for you,” Kalajzic said of his start at Western Power in September 2019 as chief financial officer and gaining the top job just five months later. “It's been a big 12 months from that point of view, but business is business,” Kalajzic said. The first business Kalajzic helped run was a farm in Cadoux until he left, aged 32. “That gave me a strong background in running a business and in the value of community,” he said. After a business degree from Edith Cowan and a few years at PwC Kalajzic returned, in a

50 WA WORKS Summer 2020

way, to agriculture with a job at grain handler CBH where he spent a decade. He sees a lot of similarities between CBH and Western Power: both have assets sprawled across the South West corner of WA to provide an essential service. “And the biggest one is...if you rebuilt the network today, it wouldn't look like the one you're operating.” Kalajzic said both operations had capital intensive assets that were now in the wrong spot. “How do you employ your capital in the right area to get the right outcome?” Kalajzic asked. For CBH, the solution was to rationalise its network of receival depots into fewer larger facilities. Western Power's problem is that half its

South West Interconnected System serves just three per cent of its customers.

Paddocks without poles The solution is to supply stand-alone power systems to small customers at the end of long and sometimes unreliable lines and get rid of the old poles and wires. Paddocks without poles that obstruct headers and aerial spraying are bonuses, as is the reduced risk of bushfires. A change in legislation earlier this year allowed Western Power to go beyond trials of the combination of solar panels, a battery and a diesel generator that makes up an SPS. The same technologies that allow Western Power to shrink its grid are also upending its business that remains connected. The old State Electricity Commission that Western Power and Synergy sprang from for decades had one job: burn coal in Collie to generate power and send it through the South-West. Gas from the North West Shelf in the 1980s weakened coal's grip, then came rooftop solar panels, wind farms and now, increasingly, batteries.

Energy

He realised when he joined Western Power that everything discussed at the executive level has a digital footprint. “The data and the digitalisation over the next five years will be a real step-change,” he says. Under Kalajzic, a chief technology officer has now joined the team of senior executives that report to him.

“The data and the digitalisation over the next five years will be a real step-change”

Installation of rooftop solar added 240 megawatts of generation capacity to the WA grid last year, and 2020 has seen the connection of two giant wind farms in the Mid-West. “This business has been set up for power going one way and then in the last five years its been turned on its head, and it's all about decarbonisation and the renewables story, and that's the exciting part,” Kalajzic said.

Harvesting the data

The technology could make Western Power's task of maintaining 278,000 streetlights much easier. Kalajzic calls the RF mesh network “a great strategic advantage” compared to east coast transmission companies that use the services of mobile phone companies. Use of the network by third parties is being considered. Similar networks overseas support gas leak detectors and, in the US, even microphones that listen for gunshots.

Kalajzic wants his people to have data they can use and trust. “How do you bring all that data in real-time and turn it into information?” “Because data for data's sake is a bloody waste of money.” One proven application is the ability of the new advanced smart meters to detect possible electrical faults. When the data from one house indicated a potential problem, Western Power sent a crew to investigate. ‘Yeah, we have been getting a little bit of a tingle,” was the response from the customer. Less dramatically, the remote monitoring of gas levels in oil-filled transformers is being trialled. The hope is that the early detection of problems will allow preventative maintenance to be done alongside planned maintenance, resulting in fewer outages for customers.

Western Power's future will also be about data, and lots of it. Much like the internet, unseen by consumers, a massive flow of data will allow a network of different elements to deliver a seamless service. One aspect customers will see is the installation of half a million advanced smart meters within five years. With little fanfare, Western Power already has put in place its own system to coordinate the data that will flow from the meters: a so-called RF Mesh network. This mesh of nodes installed on Western Power infrastructure operates on radio frequencies and communication jumps from one node to the next. “The more things you hang off it, the stronger it gets,” Kalajzic said. Streetlights are joining smart meters on Western Power's mesh with a trial in Melville of lights that report back when faulty.

Summer 2020 WA WORKS 51

Energy

Greater demand needed for Warradarge expansion The Warradarge wind farm in the Mid West has entered production, but a lack of domestic demand for renewable energy could hamstring plans to grow its supply by an additional 80MW, according to the project lead By Claire Tyrrell

he project, 30 kilometres south west of Eneabba, has powered up to 180MW — the full capacity of its first phase, but doubt has been cast over the project’s long-mooted second phase to supply up to 260MW. Tom Frood, General Manager of Warradarge owner Bright Energy Investments (BEI), told WA Works that the State would need to increase its demand for renewable energy for the expansion to proceed. “We can’t justify stage two right now, because of the lack of demand for renewable energy … in the grid at the moment,” he explained. “It’s going to be hard to get an expansion of the project unless we can find some local load.” The farm’s current capacity can supply the equivalent of 135,000 WA homes’ annual electricity needs. It is currently running 51 turbines, each weighing up to 181 tonnes with 67 metre-long blades, a hub height of 84m and height of 151m to the top of the blade tip.

He added there was great potential for WA to supply renewable energy beyond the South West Interconnected System (SWIS) and into other countries or as part of self-sustaining operations. An off grid project is exemplified in Alinta’s Chichester 60MW solar farm in the Pilbara, designed to supply energy to project

“The farm’s current capacity can supply the equivalent of 135,000 WA homes’ annual electricity needs” In 2012, then project proponent Verve Energy had plans for a significant expansion of Warradarge that included 100 turbines and a capacity of about 250 megawatts. Modelling in the State Government’s recently released Whole of System Plan indicated that renewable power generation was expected to triple by 2040, with wind power accounting for a high portion of that rise. Frood questioned this projection, stating this would only occur if there was a “massive increase in demand”. “I don’t think there is going to be that massive increase,” he said.

52 WA WORKS Summer 2020

partner Fortescue Metals Group’s mines as well as Roy Hill. The nearby Asian Renewable Hub, which was recently granted environmental approval, plans to export 26 gigawatts of wind and solar energy to countries including Japan, Singapore and Korea.

Huge export opportunities “In Western Australia, the opportunity is huge… there are technical challenges, but I think those opportunities are very real,” Frood said. At the opening of the project, Frood described Warradarge as a “world-class asset”. “The culmination of this significant milestone

is reflective of the hard work and dedication of everyone involved,” he said. WA Energy Minister Bill Johnston said Warradarge would “become one of the best, large-scale renewables projects in Australia”. More than 200 jobs were created during the 12-month construction of Warradarge. BEI is a joint venture between Synergy, Dutch Infrastructure Fund and Cbus.

Greenough solar farm shines BEI has also completed its second stage of the Greenough River Solar Farm, with 40MW of electricity now generated from the site. The renewable energy firm recently added another 10MW to the farm, initially commissioned as a 10MW facility in 2012. Juwi Renewable Energy completed the main works of the solar farm and balance of plant works, with Western Power completing the connection to the upgrade works. Frood said he was thrilled to the solar farm complete, despite the hurdles over the past 12 months. “Despite the challenges associated with COVID-19 and RCR Tomlinson going into administration, the re-contracted project has been completed substantially on time and on budget,” Frood said. The solar farm is 400km north of Perth.

Energy

Hydrogen hopes firm in the Pilbara

A French-Norwegian partnership hopes to establish a new green hydrogen export industry in the Pilbara by connecting solar power and an electrolytic plant to existing processing infrastructure By Stephen Bell

orway’s Yara and French multinational ENGIE may spend up to $70 million building a Pilbara demonstration plant to produce renewable hydrogen and green ammonia, according to a new feasibility study. Published on the Australian Renewable Energy Agency (ARENA) website, the study says the staged Yuri project, integrated with Yara’s ammonia plant in the Pilbara, would produce renewable hydrogen from water via electrolysis, commencing with onsite solar power. The hydrogen would in turn be used as feedstock to produce ammonia and support a potential future renewables-based ammonia production expansion in the Pilbara, the report says.

The two proponents consider that the demonstration plant should go ahead because of its “strategic value”, and that commercial feasibility could be achievable, subject to: • Continuing indications of a renewable ammonia market emerging, reinforcing Yara’s interest to develop Yuri and off-take the renewable hydrogen; • a tender process for the Engineering, Procurement, Construction (EPC) contract leading to a competitive EPC solution; and • competitive capital (debt and equity). Yara Pilbara General Manager Laurent Trost says Yuri will apply the company’s experience to becoming a leader in the production of renewable hydrogen and green ammonia. “We also see it as a way to kickstart a

renewable hydrogen hub in the Pilbara because it would be adding to our existing operations rather than looking for a greenfield site. “Yara Pilbara already has established supply chain infrastructure and we have a ready-made export gateway for industrial scale renewable hydrogen into potential markets including Japan, which received its first shipment of Yara Pilbara ammonia in June. >

Summer 2020 WA WORKS 53

Energy

City of Karratha staff Navah Kerr, Laurinda Timmins, Ryan Hall and Stephanie Smith with Yara Pilbara General Manager Laurent Trost

> “The addition of renewable hydrogen to our operations would also reduce our process dependence on fossil fuels,” Trost says.

The green elements Key elements of the initial plant include a 10MW electrolyser, a 35,000 MWh solar farm and a battery storage system, which would enable the plant to operate without connection to the main power grid.

hydrogen projects, while the demonstration effect of Yuri Phase 0 should provide benefits to both the remaining phases and the broader Australian sector. Yuri Phase 0 is described as “sub-commercial standalone but with a high strategic value”.

The chicken and the egg “The strategic value is in the sense that bringing real, physical renewable ammonia to the market

“The addition of renewable hydrogen to our operations would also reduce our process dependence on fossil fuels” The initial spend will be up to $70m, with later phased investment to result in the potential annual production of 700,000 tonnes of green ammonia. The study can be viewed on ARENA’s website here arena.gov.au/knowledge-bank/ Yara’s existing operation, which produces ammonia to make the explosives used by miners, is in a sensitive part of the Burrup Peninsula relatively close to heritage-listed Aboriginal rock art. However, the study notes the project has been designed so that heritage sites will be excluded from any disturbance, with solar panels avoiding the art’s locations. WA Works understands this design was achieved via Yara, a heritage consultant and Murujuga Aboriginal Corporation (MAC) collaborating to confirm the location of the sites, and then ensuring the information was acted on by the engineers. If the demonstration project (dubbed Yuri Phase 0) proceeds, an EPC tender will “activate” the Australian EPC market for renewable

54 WA WORKS Summer 2020

is a prerequisite to proceed further with real delivery negotiations with potentially interested customers,” the study says. Therefore, producing green ammonia produced by Yuri 0 will be a “very important

step in solving the ‘chicken and egg’ problem in the market today”. “Interest currently exists, but to create the demand, product must be available.” In parallel to Yuri Phase 0 development, a pre-feasibility study is now underway for Phase 1. This study is considering: • developing an improved renewable power profile by combining wind power and PV power — adding wind (and battery with reduced cost) could increase the hydrogen plant usage rate; and • moving the renewable power site further inland to reduce cyclone impact and open up greater scale of renewables development. Out of the Pilbara’s severe cyclone area, solar photovoltaic panels with a tracking system could increase the electricity output by up to 20 per cent, the study estimates. At $70m, the Yuri project would be the second-biggest hydrogen project investment planned in WA. The largest is start-up Infinite Blue Energy, which is targeting Stage One construction of its $346m Arrowsmith project at Dongara in 2021.

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 Transport Fuel Fortescue, Hyzon Completion mid 2021

Karratha - NA Japan Ammonia Woodisde/JERA Export Study Wheatstone Ashburton West Pipeline

Yuri - $70m Green Ammonia Phase 0

Telfer Gas Pipeline

Pilbara Energy Pipeline Fortescue River Gas Pipeline

DBNGP - RHF DBNGP Blending AGIG Gas Networks Denham - $8.9m Microgrid State Government, ARENA 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.

Summer 2020 WA WORKS 55

56 WA WORKS Summer 2020

The Big Picture Tracking the sun: Stage two of Bright Energy Investmentsâ&#x20AC;&#x2122; Greenough River Solar Farm in the Mid West reached practical completion in October, with the 30MW expansion now generating power. Stage Two uses single axis tracking, rather than fixed solar panels, and this will see the new expansion generate nearly four times as much electricity as Stage One, but with only twice the land footprint. The 40MW facility is expected to generate enough electricity to power 19,800 homes. Summer 2020 WA WORKS 57

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

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 58 WA WORKS Summer(NOPTA) 2020 Offshore Petroleum Titles Administrator 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

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

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

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

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

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

Lindsays

Pinnacles

Atlas–Kalpini Gordon–Sirdar

Paddington

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 Lanfranchi

Widgiemooltha The Mount

Nevoria

Southern Seawater desalination Lithium hydroxide Silicon smelter Chlor alkali

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

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

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 Summer 2020 WA WORKS 59

Policy Corner

Paul Moss

Life of Project agreements to reduce investment barriers Proposed reforms to the Fair Work act to be debated in the Federal parliament early this year aim to reduce the risk of industrial strife during construction of major projects, writes Paul Moss

n recognition of the importance of the resource and infrastructure sectors in generating economic growth and job creation, the Federal Government has announced amendments to the Fair Work Act that will allow businesses to fix wages and conditions for the duration of a major project. Currently enterprise agreements have a maximum nominal term of four years, which leaves many major projects at risk of disruptive enterprise bargaining negotiations, and the potential for industrial action, mid-way through the project. This proved to be the case for several large LNG projects during the resources boom which were all subject to union led disruptions that further damaged Australia’s already poor global industrial relations reputation. With strong competition globally for investment dollars, the Federal Government has recognised the need to reduce the risk associated with investing in major projects. During the recent industrial relations roundtables CCIWA, along with other employer associations, successfully prosecuted the need for greenfield agreements that could operate for the duration of the construction phase of a major project. In recognition of this the Government has introduced proposed legislation that will allow greenfield agreements, which can be negotiated with unions prior to the commencement of a new project or undertaking, to have a nominal expiry period of up to 8 years from the date of commencement. It will also be possible for the commencement of the agreement to be delayed to an agreed date, removing the current issue of an agreement operating while no one is employed. This has been an ongoing issue for many businesses where an agreement begins operation before work starts, further reducing the effective duration of the agreement. This is a significant increase on the existing four-year maximum term and provides scope for

60 WA WORKS Summer 2020

enterprise agreements to operate for the life of a major resource or infrastructure project. The changes will apply to projects where the total capital investment is anticipated to be greater than $500 million. However, there is scope for projects of $250m or more to be deemed “major” by the relevant minister taking into account its national or regional impact and level of job creation.

Double pay reforms Parliament is expected to debate these changes in March 2021, along with other proposed changes to the Fair Work Act. The reforms will also address the alarming Federal Court decisions which have upheld double pay claims from casuals in the resources sector seeking paid leave entitlements in addition to their casual loading.

The proposed changes will include an offset provision within the legislation which confirms that the causal loading is provided in lieu of paid leave entitlement. This will also include a new definition of casual employment which will provide greater certainty for both employer and employee regarding the nature of the relationship. Casual employees will also have the right to nominate to move to permanent employment after 12 months of regular employment, with the employer not to unreasonably refuse the request. The package of reforms also includes new penalties for underpayment of entitlements. For businesses that deliberately do the wrong thing, new criminal provisions will allow for fines of up to $5.55m for a body corporate and maximum jail terms of four years for individuals. Of more concern, the maximum penalties for unintentional underpayments will also increase from $66,000 to $99,000, and in the case of larger organisation up to twice the benefit received. Paul Moss is Principal Workplace Relations Advocate at CCIWA. For more information on the proposed reforms, visit: cciwa.com/ advocating-for-change/workplace-relations

“The Federal Government has recognised the need to reduce the risk associated with investing in major projects”

News Bites

Digging in We unearth the best tender awards, project progress and significant announcements over the last quarter

October SRG scores at Worsley

Perth engineer SRG Global will be providing services at South32’s Worsley alumina refinery late into this decade after signing two contracts with a combined value of $125 million. The biggest is a $100m contract to provide specialist refractory services, including gunning and casting and installation of refractory products and anchors at Worsley, south of Perth.

Green light for Atlas mine Gina Rinehart’s Atlas Iron has received a green light from the Environmental Protection Authority to build a new satellite iron ore mine near Marble Bar. The EPA recommended that Atlas’ proposal for the Miralga Creek project be implemented, subject to conditions that will help protect fauna habitats.

$215m freeway extension awarded to Georgiou JV The Mitchell Extension joint venture between WA’s Georgiou Group and Queensland’s BMD Construction has been named as the preferred proponent of the Mitchell Freeway extension project. Expected to create 1200 local jobs, the project involves extending the freeway 5.6 kilometres from Hester Avenue in Clarkson to Romeo Road in Alkimos.

Strike scales up $200m Mid West gas plant Oil and gas explorer Strike Energy will boost the capacity of its mooted Perth Basin gas plant from 50 terrajoules a day to 80TJ/d, capitalising on a “unique period” in the State’s gas production. Strike recently secured $28m to push ahead with the plan, following its binding agreement with Warrego to jointly develop the West Erregulla gas field — 230km north east of Perth.

Summer 2020 WA WORKS 61

Pilbara renewable hub to create 5000 construction jobs The Asian Renewable Energy Hub in WA’s Pilbara has boosted its production capacity to 26 gigawatts and promises to create 5000 direct construction and 3000 ongoing jobs, the project’s manager has revealed. The State Government recently granted environmental approval for the $22 billion first phase of the hybrid solar and wind project, comprising 15GW of renewable power.

300 job losses announced at Woodside Woodside Petroleum is the latest oil and gas producer to trim its workforce, announcing it would cut about 8 per cent of its employees. The WA oil and gas giant said it would let go 300 employees across different positions across the company.

Fortescue has awarded new construction contracts at its existing Solomon production hub along with the new Iron Bridge magnetite project in the Pilbara. The biggest is a $57.5m deal awarded to Resource Development Group (RDG) for the design and construction of central facilities at Solomon.

Pilbara gold mine to cost $120m Calidus Resources has increased the budgeted cost for its Warrawoona gold project to $120m as it paves the way for major construction from early 2021. The revised cost, contained in Calidus’ feasibility study, is a 26 per cent increase on the previous estimate of $95m from July 2019

A big battery to flatten a duck curve Synergy called for suppliers to provide information to help build one of Australia’s biggest lithium-ion batteries at the Kwinana power station in Perth’s south. The project could create 100 jobs during the two-year construction and commissioning period, with completion expected in the second half of 2022.

$968m to boost regional water infrastructure The State Government has poured $968m into hundreds of water infrastructure projects across regional WA, including $61.4m on new projects from the Great Southern to North West. The funding, allocated as part of the 2020-21 State Budget, will be spent over the next four years through the government’s asset investment programs run by WA’s three water corporations.

62 WA WORKS Summer 2020

Fortescue update: $61m of new contracts

Fresh $100m to make freeways ‘smarter’ The State and Federal governments have allocated $100m to expand WA’s Smart Freeway project to southbound lanes of the Mitchell Freeway. The extension of the project from Joondalup to Perth CBD is expected to create 700 jobs — both directly and indirectly linked to construction — and was expected to enter procurement phase before the end of 2020.

$1.1b rail project to create 6500 jobs The Morley-Ellenbrook railway project will create 6500 local jobs including 3600 in direct construction, WA Premier Mark McGowan has revealed. McGowan officially announced Laing O’Rourke’s MELconxx Consortium had won the main $700m contract to build the 21km rail line along with new stations to be built at Ellenbrook, Whiteman Park, Malaga, Noranda and Morley.

November Goldfields highway work to deliver 90 jobs Bassendean-based Highway Construction will deliver WA’s latest regional road project — the $52m upgrade of Coolgardie-Esperance Highway — after being named the preferred proponent. About 90 jobs are expected to be generated by the enhancements to a 25 kilometre section between the Goldfields Highway intersection and Widgiemooltha, known as Emu Rocks South.

Fair winds for Decmil Perth engineer Decmil has clocked up another windfarm job, this time a $51m balance of plant deal for the Ryan Corner project in Victoria. The works are Decmil’s share of a $71m balance of plant contract that was awarded to a joint venture between Decmil and RJE Global, on a split scope basis.

McGowan Government unveils its project pipeline The State Government says its $27b pipeline of work will help subcontractors and businesses win more public infrastructure work in the next four years. Released by Premier Mark McGowan, the pipeline will be a “continually updated” four-year forward work plan of WA Government infrastructure projects that have a budget of more than $1.5m.

Time up for Argyle Rio Tinto’s Argyle diamond mine has mined the last of its precious gems, marking the start of a five-year decommissioning period for the famous project in WA’s Kimberley region. After 37 years of operations, mostly remembered for Rio’s production of small amounts of the valuable pink diamonds among its huge output of mass-produced coloured and white stones, the mine celebrated the last day of production in early November.

BHP to use new Equinix data centre Digital infrastructure group Equinix is building a third data centre in Perth, capitalising on the city’s proximity to Southeast Asia and future links with Oman. The $76.6m (US$54m) project, under construction and flagged to open in the fourth quarter of 2021, will connect directly to Singapore via the Australia Singapore Cable (ASC) and Indigo Cable, while BHP has signed up as a foundation customer.

Petrofac propels plans for $350m hydrogen project  Energy services provider Petrofac’s agreement to build Australia’s largest green hydrogen plant for WA start-up Infinite Blue Energy (IBE) is a significant step forward for the Mid West development.   The multinational company last month agreed to conduct the front-end engineering and design (FEED) for IBE’s $350m hydrogen plant in Arrowsmith, 320 kilometres north of Perth near Dongara.

SRG Global Hofmann secures bogie role on railcars Perth-based Hofmann Engineering has won a key role on the $1.25b Metronet railcars project, according to the State Government. It says Hofmann will bring its bogie frame manufacturing experience to WA, to help build the new C-Series trains.

SRG Global has clinched $55m of new work, including the design and construction of a new 20 million litre water tank for the State Government’s Water Corp in Karratha. The engineer says the project — the third tank construction project it has won in the last two months — will begin immediately and is expected to finish towards the end of next year.

Summer 2020 WA WORKS 63

News Bites

December

More Rio Tinto, BHP jobs for Monadelphous Monadelphous said it secured new construction and maintenance deals with both Rio and BHP, with a combined value of about $60m. The engineer won a three-year master services deal with Rio for the delivery of sustaining capital projects across various mine sites and port operations throughout the Pilbara.

SRG to help build EQ West SRG Global has secured two construction contracts totalling about $100m, including a key role on a new apartments tower at Elizabeth Quay. The engineer said it won a structures contract with D&C Corporation for the Elizabeth Quay West development, along with a deal with Multiplex for works at the Queens Wharf residential tower in Brisbane.

SCEE scores $65m of work from Rio Tinto Brightwater for Georgiou Georgiou won a contract to build Brightwater Care Group’s $40m residential aged care, research centre and corporate head office. Georgiou Rob Monaci said the company was proud to add the project to its building portfolio for the coming year.

Southern Cross Electrical Engineering won a $65m contract from Rio Tinto for plant electrical and instrumentation works at the Gudai-Darri iron ore project in the Pilbara. SCEE expected to begin mobilisation late in 2020, with completion planned for December 2021.

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.

64 WA WORKS Summer 2020

ADCO wins Western Power’s big depot deal ADCO is expected to start building Western Power’s new $50m South Metro depot in Forrestdale in February after being named by the State Government as lead contractor. The new facility at 186 Anstey Road will bring together 850 employees from the utility’s Kewdale, Mt Claremont, Forrestfield and Jandakot depots, and a fleet of 450 heavy and light vehicles.

Hydrogen-powered grid for Denham The State Government’s Horizon Power plans to start building Australia’s first remote microgrid renewable hydrogen generation plant in August at Denham in Shark Bay. The project will be a first-of-itskind demonstration of the capability of hydrogen as a dispatchable power source in remote microgrids, said Horizon CEO Stephanie Unwin.

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

China Panda year ago we animals were warned, ‘Don’t poke

in the global resources industry was the Channar Iron Ore Mine

the Panda’. The Panda looks cuddly, but he is much

in the Pilbara. China’s first import of liquified natural gas came

bigger than most of us. If he gets angry then you

from the North West Shelf Project. And who would have thought

need to remember he has long and sharp claws.

that a private sector company out of Shanghai would be the major

We are now careful around the Panda. It seems to us that you people

farm developer on the iconic Ord River Irrigation Project in the Kimberly! We have done the hard yards.

didn’t listen to the same advice.

Don’t believe that China has no alternative sources of supply,

Sure, there are some big issues.

with the possible exception of iron ore, or that we can simply find

The Migratory Birds are worried

a replacement market. China is the world’s biggest trade market

that China’s expansion in the South China Sea may force them to change their annual flight path. We are also worried about the safety of Aussie pets in Hong Kong.

and Australia is a trade dependent economy. The wise Owl, who keeps in touch with the Chinese Snow Goose, reckons this is truly a serious matter. He thinks the Canberra Pollies need to keep to the main issues that affect us and to tone down the language.

The Pekingese Dogs and the Burmese

Right now, the best chance of re-building the

Cats reckon they will be all right.

relationship lies with the states and business. That

The Blue Healers are not so sure.

is not about getting involved in foreign policy.

The truth is that diplomatic relations between Australia and China have collapsed. When Beijing won’t even pick up the phone, then we have a problem. The Carrier Pigeon says he can still get a message to China and could even carry an olive branch. But we need much more than that. In recent weeks we have seen China impose import taxes, bans and restrictions on a range

The money wise Emu says it is just about being respectful and re-enforcing commercial contacts and contracts. A more moderate approach is far better than firing off social media threats at 10,000 kilometres. We have more hope of resolving our differences with a respectful relationship than with an antagonistic one. The Owl sums it up by saying that China might have its faults,

of Australian products including barley, beef, lobsters, coal, copper

but the Chinese people are proud of their country and what it has

and wine. Sounds like a trade war.

achieved. For us, there is no doubt that the emergence of modern

The situation is especially serious for Western Australia. China might be Australia’s top export market, but what is less well known is that around 60 per cent of those exports come from this

China is the economic and political phenomenon of this century. That is the reality we have to work with. For 2021, it is the Chinese Year of the Ox. With some heavy

State. Western Australia and Queensland have led the way in the

lifting the Ox might be able to sort out this unhelpful spat between

China trade and therefore have the most to lose.

the Panda and the Kangaroo. We animals hope so.

Western Australia has played a unique and historic role in our relations with China. The first international investment by China

THE ECHIDNA, DECEMBER 2020

Summer 2020 WA WORKS 65

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