AUSTRALIA • CHINA • INDIA • JAPAN • NEW ZEALAND • ASIA PACIFIC
NoV 2014 - JAN 2015 • Issue 10
AUSTRALASIA AustralaSIA’s QUARTERlY Oil , Gas & Mining Magazine
AUSTRALIA’S LARGEST FUEL TERMINAL BEGINS SERVICE WORLD EXCLUSIVE - REMOTE EXPLORATION ANOMALY DETECTOR R.E.A.D NEW DISRUPTIVE TECHNOLOGY
Subscribe & Win Quad Bike Winner!
Sasa Kalat, (seated on quad bike) with Les Sharpe, PMX Moto Sales Manager.
Congratulations to our Subscribe and Win competition prize winner, Sasa Kalat from Ballajura in Western Australia. Sasa works as an Auto Electrician and has a 3-year old son that he will eventually give the Quad Bike to. WARR asked Sasa if he subscribed to WARR hoping to win the quad bike. His answer was that he wasn’t usually very lucky and didn’t think he would win it. He went on to say he has always liked magazines and subscribed to WARR because he especially liked that it has a good mixture of different types of vehicles and is interested in both racing and vehicle restoration projects. He said “WARR Magazine has something for everyone.” Sasa is hard working guy with a young family and is definitely a worthy winner. Thank you for subscribing to WARR Magazine and enjoy your new quad bike Sasa!
2 DIGGING & DRILLING MAGAZINE NOV 2014 - JAN 2015
Editor’s Letter Congratulations to the Federal Coalition Government for keeping their election promise to abolish the Mining Tax. On the 2nd of September, 2014 the Hon Tony Abbott MP, Prime Minister of Australia and his coalition government negotiated an agreement with the Palmer United Party and three other crossbenchers to abolish the tax.
Len Fretwell Publisher / Managing Editor Digging & Drilling Australasia and WARR Magazine
Australian Prime Minister Tony Abbott visited Bunbury, Western Australia in November, 2014 and made the following statement in a media conference. The Prime Minister said “I am pleased that this federal government has been able to help Western Australia and the South West by abolishing the carbon tax, abolishing the mining tax and trying to ensure that we get spending out of short term consumption and into long term investment.” In a recent speech made in Hong Kong, Reserve Bank of Australia Governor Glenn Stevens said “There are encouraging early signs of a handover from mining-led demand growth to domestic consumption and Australia’s economy may strengthen later this year”. And Christopher Kent, Assistant RBA Governor (Economic) made the following statement in an Address to the Bloomberg Economic Summit in Sydney in September, 2014. “It now looks like mining investment peaked in late 2012. Despite a substantial decline in mining investment since then, growth of the economy overall picked up to a pace that was around trend over the course of the past year. Much of that improvement is owed to a sharp rise in resource exports”. In my view, there is an obvious balance between the negative force of declining mining investment and other areas of demand assisted by very low interest rates and Australian resource exports so, Australia’s near future will probably not be as bleak as mainstream media might speculate. The Prime Minister of Australia Mr Tony Abbott paid a State Visit to India from 4-5 September, 2014 at the invitation of Prime Minister Shri Narendra Modi. In a joint statement from New Delhi, the Prime Ministers welcomed the signing of the bilateral Civil Nuclear Cooperation Agreement as a concrete symbol of their bilateral partnership. They noted the Agreement would enable the sale of Australian uranium to support India’s growing energy needs and directed the negotiators to conclude the administrative arrangements at an early date. Both Prime Ministers agreed to develop a strategic partnership on energy and resources based on long-term, sustainable and reliable supply of Australian resources based on India’s energy needs. They agreed that cooperation on energy - extending to coal, LNG, renewables and uranium and on resources such as iron ore, copper and gold were key elements of the relationship and committed to intensifying these links. Prime Minister Tony Abbott, said Woodside could be making its first LNG exports to India in five years. Cooperation in the Peaceful Uses of Nuclear Energy was included in a bilateral memoranda of understanding which was signed in the presence of the two Prime Ministers: One of my good friends, Gary Carvolth recently introduced me to Kalorra Mining and Exploration Pty Ltd Managing Director and inventor, David Nore. We have now had numerous conversations about how his new REMOTE EXPLORATION ANOMALY DETECTOR (R.E.A.D) Disruptive Technology is able to determine the exact location of an ore body without having to leave his Perth office and without satellite or aircraft assistance. This new technology may seem difficult to believe but if you are currently spending hundreds of thousands of dollars on land based resources exploration, I suggest you read David’s article on page-11. Congratulations to Mr Sasa Kalat for winning the quad bike in our new sister publication, WARR Magazine Subscribe & Win competition. If you would like to pick up a print copy, WARR Magazine is free and available from all WA AUTO ONE stores, TOOLMART stores, Alberts Car Stereo stores, Barbagallo Raceway and Kwinana Motorplex and free e-copies can be downloaded from our website which is listed below. We are always looking for interesting energy & resource sector innovation and news content so, please feel free to contact me with any news or content that may be of interest to our industry readers. I hope you enjoy reading this tenth quarterly edition and as always, I look forward to your comments and feedback. Best regards
Len F retwell www.diggingdrilling.com
www.warrmagazine.com
WHAT’S IN THIS ISSUE 06»
IN THIS ISSUE 3 EDITOR’s LETTER 6 MOMENTS IN PICS: APPEA Conference 2014 10 News in Brief: Oil, Gas & MINING News highlights for the QUARTER 11 REMOTE EXPLORATION ANOMALY DETECTOR R.E.A.D 17 Australia’s largest fuel terminal begins service to customers 18 Project PostCard: Caltex Australia’s Kurnell Terminal 22 An Emerging Australian Icon - Chevron Gorgon Project 26 Track and report surface movement with Maptek Sentry 31 Kan Tan IV Arrives in New Zealand for Drilling Campaign
Digging & Drilling AMP TOWER - LEVEL 28 Australasia 140 St Georges Terrace Perth WA 6000 Tel: +61 1300 284 637 Fax: +61 (8) 9300 9435 Feedback info@diggingdrilling.com News inquiries editor@diggingdrilling.com Advertising inquiries len.fretwell@diggingdrilling.com • Mobile: 0417 001 080 Editor Writers GUEST Writer SPECIAL FEATURES
Len Fretwell Robin whitlock, Stephen Dawson, ANDREW BURRELL NATASHA (KITTY) CANN, Lesley Kemp, Giles Dutfield EMMANUEL SOLOMON, DAVID NORE
Graphic DESIGNER wATER LI Subscription SUBSCRIPTION@diggingdrilling.com Publishing Digging and Drilling is a Trading name of LF Family Trust Information ABN: 97 893 623 301 VISIT US AT www.diggingdrilling.com Follow us on twitter @DiggandDrill SISTER PUBLICATION WARR MAGAZINE WWW.WARRMAGAZINE.COM COVER SA Mine Site Image Courtesy of SACOME Digging & Drilling Australasia welcomes comments and suggestions, as well as information about errors that call for corrections. We are committed to presenting information fairly and accurately. Disclaimer: Reasonable care is taken to ensure that Digging & Drilling magazine articles and other information are up-to-date and accurate as possible, as at the time of publication, but no responsibility can be taken for any errors or omissions contained herein. The opinions expressed are those of the authors and do not necessarily reflect the views of Digging & Drilling Magazine. The publisher, editors, contributors and related parties shall have no responsibility for any action or omission by any other contributor, consultant, editor or related party.
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Moments
MOMENTS IN PICs »
APPEA Conference 2014
6 DIGGING & DRILLING MAGAZINE NOV 2014 - JAN 2015
NOV 2014 - JAN 2015 DIGGING & DRILLING MAGAZINE
7
The Three C’s for a successful career in mining:
Commitment, Contribute and Collaborate Mining is one of those industries where team work really is critical. Number one, it’s vitally important for safety. And at an individual level, team work is essential to holding our at-work lives together. When we are working in what are often isolated locations, close collaboration with a team can make the difference between a fulfilling, satisfying work experience and a lonely one. One of my life mottos is Commitment, Contribute and Collaborate, which I also call the 3 C’s. I have used this motto many times when mentoring people new to mining as well as those with extensive industry experience to stay focused and on-track with their careers. Having worked in mining for more than a decade, I’ve seen firsthand how collaboration achieves great workplace outcomes. It not only creates a more productive workplace for employees and consequently for their employers, it builds camaraderie, mutual support and respect; friendship even. This became apparent to me when I was leading teams at multi-national resources and mining companies. I witnessed the outstanding productivity and efficiency results that came from building effective, efficient and harmonious teams, and how this added value to my employers’ businesses.
takes commitment. As the author Tom Clancy said, “An overnight success is ten years in the making”. When you consider that for many people in mining, work means regular stretches away from home in a far-off location, there has to be a point to the sacrifices we and our families make. Hence, I believe that everyone who works in the industry, or who is seeking to work in the industry, needs to have a purpose or goals that their work will help them to achieve. And that means making a plan and sticking to it. Easier said than done perhaps, but the only way to get results is to put the effort in.
improvements to a process or procedures, to how a team is managed, or how information is communicated. Basically, it’s about adding value to your employer. Keep a record of what you have achieved so you can discuss your outcomes with your boss or at your performance appraisal. Contribute at meetings, too. And keep up with what’s happening in mining. Stay connected through social media, websites and events, learn about emerging technologies, and share ideas and experiences.
I recommend having clear two, five and 10 year life plans, which you commit to with your partner, friends or family. You probably have heard of SMART goals: Specific, Measurable, Achievable, Realistic, Time Limited. SMART is an easy way to set goals, and it really works. My last of the three C’s is about the contribution we make in our working lives. When I am mentoring, I advise my mentees to actively seek to make a difference in their workplaces by contributing to the productivity of the business they work for. This could be identifying
Yet, at the same time, I saw the hesitation women (and some men, too) had about pursuing their careers. Building a career, like all things in life,
Guest Writer: Natasha (Kitty) Cann 8 DIGGING & DRILLING MAGAZINE NOV 2014 - JAN 2015
NEWS IN BRIEF »
Oil, Gas & MINING News highlights for the QUARTER
China to scrap tariffs on Australian Coal The Chinese government has decided to scrap tariffs on Australian coal imports announced earlier this month once ongoing negotiations on a free trade agreement (FTA) between the two nations is finalized. “The news is very surprising because just like the implementation of the tariffs, no one expected it to happen so quickly,” ICIS coal analyst Deng Shun told The Australian. Canberra and Beijing are trying to seal a FTA before the end of this year after nearly 10 years of negotiations, in a bid to boost two-way trade already worth more than $132 billion (A$150 billion). But China jeopardized the talks on Oct.8 by introducing a new duty of 3% for coking coal and 6% for thermal fossil fuel coming from Down Under, which shocked and angered Aussie producers, responsible for a quarter of Chinese coal imports. Those levies put Aussie coal exports at a disadvantage to its biggest rival, Indonesia, which is exempt under China’s free trade pact with the Association of Southeast Asian Nations. Coal tradition China’s dependence on coal is well known. Annual consumption exceeded 1 billion short tons per year in 1988 and has exploded since then, to about 4 billion tons last year. This means the Asian giant gets about 70% of its energy from the fossil fuel, a number the government hopes to reduce to 65% by 2017. In the past three years Australia’s coal industry has experienced challenging times with prices for thermal coal, which consumed by power stations to generate electricity, dropping over 40%. More than 10,000 coal jobs have been lost in Australia since 2011 as companies slash costs and idle mines amid a global supply glut.
Emas AMC bags USD 70 Mln Worth of Contracts Ezra Holdings Limited’s Subsea Services division, EMAS AMC, has won multiple new contracts from various energy companies valued at over US$70 million. The scope of work includes subsea installation of umbilicals, flowlines and jumpers, as well as provision of services to support rigs. Work has commenced for several projects, with the others slated for offshore execution from Q4 2014 to Q2 2015. “I am delighted to see that our customers are leveraging our subsea expertise and placing their trust in our solutions and services. With this slate of multiple contracts that span across the US Gulf of Mexico and Asia Pacific regions, EMAS AMC is continuing its winning momentum and reaffirming our strategy on growing our subsea business,” said Mr Lionel Lee, Ezra’s Group CEO and Managing Director.
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Space Miner Loses Satellite in Rocket Explosion Planetary Resources, the U.S.-based start-up aiming to mine asteroids lost its first test satellite aboard a commercial rocket that exploded only six seconds after take-off Tuesday. The unmanned rocket, contracted to Orbital Sciences Corp. by NASA, was carrying supplies to the International Space Station. Among the cargo was Planetary Resources’ Arkyd A3, a test vehicle that was to orbit Earth. Shortly after the explosion, the company Tweeted: “Live to fly another day. Onward!,” followed by a “Cheer up everybody – A3 was just a robot! We are making more.” Competitor Deep Space Industries took the defeat to heart and issued a press release saying that “a loss for one of us is a loss for all.” “We know how hard they have been working, and the high expectations we all had for their first mission.” Arkyd A3 had been designed to test and validate technology and software for the asteroid miner’s planned Arkyd-100 space telescopes. It would have been the first of a series of orbital test flights scheduled for Planetary Resources, while Deep Space Industries’ test flights will begin in 2015. Asteroids are rich in valuable minerals. An M-type asteroid, the third most common type, just one km diameter could contain more than two billion tons of iron ore and nickel, not to mention other riches such as platinum and diamonds.
Polarcus in Capreolus 3D Survey Polarcus Limited has announced the imminent start of a major new RightBAND multi-client project over the Roebuck Basin, offshore North West Shelf, Australia. The Capreolus 3D survey, supported by industry funding, will comprise approximately 15,000 sq. km and is designed to provide exploration companies with an extensive basin-wide high quality broadband 3D seismic dataset over and adjacent to the recent Phoenix South oil discovery. The discovery announced by Apache Corporation on 18 August 2014 has the potential to open up a major new oil province within one of the few remaining underexplored parts of the North West Shelf. The Capreolus 3D survey is specifically designed in conjunction with the project sponsors to enable companies to explore the petroleum potential within the primary Triassic and Jurassic reservoirs. The project will begin in Q4 2014 utilizing two Polarcus A-Class 3D seismic vessels towing super-wide 12 x 120m long offset receiver arrays. The acquisition phase is estimated at approximately eight vessel months (four calendar months) duration, optimally placing these vessels for the previously announced two vessel program for a major energy company offshore Sakhalin in Q2 2015. The resultant data from the Capreolus 3D survey will be processed through a pre-stack depth migration routine by DownUnder GeoSolutions in Perth, Australia, with final data products expected to be delivered within Q2 2016.
REMOTE EXPLORATION ANOMALY DETECTOR
R.E.A.D
WORLD Exclusive FEATURE <<ARTICLE
A DISRUPTIVE TECHNOLOGY Kalorra Mining and Exploration Pty Ltd are able to determine the exact location of an ore body without having to leave our office in Perth and without the assistance of satellites or aircraft. The distance of the anomaly from our office is of no consequence. Gold, silver, iron ore, copper and mineral sand deposits, to name a few, can be located as far away as Tasmania, Angola, or Madagascar. We have developed the required technology. We call it READ…Remote Exploration Anomaly Detector With it we can now see ‘over the horizon’. Our mineral targeting technique is the result of many years of field exploration conducted by the team lead by Peter Randles and Tristan Randles. Specific studies have been conducted over all previously known mineral discoveries in Western Australia. This extensive research has found that all historic mines and mineral deposits (without exception) are associated with a magnetic field anomaly. R.E.A.D has now reached a level whereby undiscovered magnetic anomalies can be easily and accurately targeted, regardless of the geological terrain or absence of existing geological research or data.
UNIQUE FEATURES OF R.E.A.D Not being sure of the target, most mineral exploration groups must apply for tenures over large areas of land thereby attracting huge compulsory expenditure commitments as scheduled by the West Australian Department of Minerals and Petroleum. Furthermore, the added obligation of exploration programs over these extensive areas demand monstrous budget allocations. This is necessary in order to progressively narrow down targets. Our simple and dynamic mineral exploration technique reduces unnecessary expenditure. We can hit the target from our desk. In fact we can read the hidden blueprint beneath the surface of the landscape and identify with GPS accuracy both the exact coordinates of an anomaly and the identity of the specific mineral(s). We can read the planet. We are not confined to Western Australia. Nobody to our knowledge has discovered this blueprint. All miners even BHP Billiton, Rio Tinto and Anglo Ashanti for example, spend millions of dollars each year searching the sand covered terrain of Western Australia, handicapped with a virtual blindfold, stumbling over virgin territory the size of Europe. Normally electromagnetic studies are undertaken for oil, gas and mineral exploration at the actual site using either onground equipment or calling upon satellites or aircraft to help indicate the possibility of anomalies. By the combining and fusing of new sensors, our incredible technology allows the same results to be achieved remotely, covering larger areas of land more cost effectively than traditional technologies.
NOV 2014 - JAN 2015 DIGGING & DRILLING MAGAZINE 11
REACTION TO OUR TECHNOLOGY As with all ‘disruptive technologies’, reactions to our proprietary invention has met with a mixed, and at times, emotional response. From genuine interest to outright hostility, I have seen it all. With persistence I have attracted the curiosity of some major players in the industry and demonstrated that we can indeed locate an ore body from a distance. Confidential agreements prevent the publication of these results, however case study examples of our ‘over the horizon’ technique are available.
(iii) The specific principal mineral(s) contained within the ‘sub anomaly’. (iv) The location of any cross-cutting faults From Beneath the Surface with Cross Sectional Slicing This feature is relatively new to us and has been developed over the last two years. We can now view the ore body in cross section to determine the shape and angle of dip. Again it must be stressed that no fieldwork has taken place,
TARGETED EXPLORATION Service Provider Our aim is to now exploit our technology as a service provider to the industry. Given a map of the area where exploration is contemplated, we can provide the following:
From a Birds Eye View (i) The location of the ‘parent anomaly’. This gives a general indication that mineralization is evident.
nobody has visited the site, no satellite or aircraft has provided assistance. This is all done in situ from our office in Perth.
Exploiting our Own Anomalies We also aim to become a Mining Exploration company in our own right. From an initial file of over 100 potential sites we have identified 35 exciting anomalies collectively worth tens of billions of dollars. The 35 identified anomalies include five iron ore deposits, two
(ii) The location within the ‘parent’ anomaly of a ‘sub-anomaly‘
mineral sands deposits, and twenty eight anomalies containing
which is more specific in terms of the coordinates and narrows
gold, nickel, copper, silver and other precious minerals in a variety
the centre of the target in some cases to within a few metres.
of concentrations.
12 DIGGING & DRILLING MAGAZINE NOV 2014 - JAN 2015
Some of these anomalies are close to roads, others are more remote. We have identified the graticular sections which need to be secured and the exact location of the ore bodies contained within the boundaries of those graticulars. We have checked with the Department of Mines in Western Australia for availability and so far no multinational or lucky junior miner has stumbled upon and pegged any of these locations. We invite mining companies to contact us regarding their mineral search. We also invite investors to discuss our plans to validate the secret, and as yet unpegged anomalies which we know lay hidden in the ground both in Australia and overseas.
Author and inventor: David Nore B.A., B.Ed., Cert IV Fin.Serv., A.A.I.M.
Managing Director Kalorra Mining and Exploration Pty. Ltd. Contact Mobile: +61 (0) 402 328 450
NOV 2014 - JAN 2015 DIGGING & DRILLING MAGAZINE 13
Dollars and Sense:
Corporate Travel Management Today for anyone with an internet connection a world of travel options is just a click away. Given this accessibility many would question the need for a travel agent. But if your business is involved in the mining, exploration and resources (MER) industries, the value of a professional corporate travel manager is much more than the price paid for your airline ticket.
REAL PEOPLE Travel can be a significant cost centre for your business and it may be tempting to save on agent’s service fees by arranging your own travel but simply booking the cheapest fare online is often a false economy – especially for those in the MER industry where things REAL SERVICE often change day to day and hour by hour. Most fares don’t accommodate these changes and LOCAL FOCUSchanging your flights/dates can be a very costly exercise. According to Flightworld’s Jann Tully, you not only have access to all retail fares on offer GLOBAL REACH but often also to exclusive corporate fares – many of which have rules that are designed for business travelers who need total flexibility.
“A good agent helps the client to choose the best fare for their needs. Simply understanding the myriad of fare rules means that the agent is best placed to recommend a route and fare that is the most flexible. This can save your company a lot of time, hassle and money. Explaining the rules to your travellers succinctly is also important so that your staff understand what is and isn’t possible should they need to change their plans,” said Ms Tully. Using a corporate travel manager (CTM) to handle your travel affairs is often the best way to get preferred rates. Agents have access to a comprehensive range of travel products – air (commercial and charter), hotels, cars, ground transport, insurance – and can work with your staff to get the best deals. “Not only can a good CTM agency generate comprehensive reports on your company’s travel spend, it can analyse the figures and work with you to identify where cost savings could be made. One of the best ways is by negotiating route deals with airlines or preferred rates with hotels. But even if your company doesn’t have the volume necessary for an exclusive deal, we can often tap into a corporate deal that the agency has with a travel partner, for example American Express preferred rates,” advised the Sales and Marketing Manager. Having had to coordinate the flights of a board of directors from across the globe to a potential mine site in Africa, re-scheduling entire crews travelling to and from off-shore oil rigs because of weather changes and having to re-route senior gas engineers on-site in Azerbaijan to Alberta to deal with an emergency, Ms Tully and her team is familiar with the ever-evolving travel needs of the dynamic MER industry. This industry knowledge is an invaluable resource – not only for managing the travel requirements of global oil, gas and mining companies, but also for responding to your evolving and changing needs. “When your travel plans suddenly change, having someone on the end of the phone who knows your business and understands your priorities is imperative. Support 24/7 from senior consultants helps to minimise disruption and get travellers to their destinations as efficiently and cost-effectively as possible,” said Ms Tully. By partnering with a CTM, businesses can be assured that any travel policies they have in place are enforced. Or if your company doesn’t have a formal policy, Flightworld can help create one to cover the specific requirements of your business. Jann said “There’s a lot to be considered, from visas to safety, the best routes for your traveller comfort. And having a travel management partner that can make it all happen seamlessly is invaluable. Also, some good corporate travel agencies have a leisure travel division – so when it’s time for some R&R you can entrust your holiday to the agency that looks after your business travel”.
Call Jann on 0400 380 380
Partnering with a professional corporate travel agency is a prudent business decision and often represents an excellent ROI. Just ask anyone who’s had to call on the knowledge, expertise and experience of a good agent when things have gone awry!
jann@flightworld.com.au Flightworld is a division of Interworld Travel Pty Ltd Licence No. 9TA00796 Established 1981
1138 Hay Street, West Perth WA 6005 jann@flightworld.com.au 1138 Hay Street West Perth WA 6005 Tel +61 (8) 9322 2914 61+8+9322 2914 Fax +61 (8) 9322 2915 ABN:21 061 625 027 www.flightworld.com.au ACN 061 625 027 Lic. No. 9TA 796
REAL PEOPLE REAL SERVICE LOCAL FOCUS GLOBAL REACH
Call Jann on 0400 380 380
Flightworld is a division of Interworld Travel Pty Ltd Licence No. 9TA00796 Established 1981
1138 Hay Street, West Perth WA 6005 jann@flightworld.com.au Tel +61 (8) 9322 2914 Fax +61 (8) 9322 2915 www.flightworld.com.au
The holiday countdown a hot spot for accidents on site We will soon be getting into the run up to Christmas and attention will move away from the daily grind and towards the activities we have planned for the festive period. But, despite the fact that people are looking forward to the break, many will spend it in hospital or, worse yet, not be there at all. Accident rates increase in the weeks leading up to a holiday. Why is this? And, more importantly, how do you stop it from happening? A few years ago we were posed this exact series of questions by one of the top tier mining companies in WA. The company was aware that more people were getting hurt in the run up to holidays and they were determined to reverse the pattern. Interventions and programs were already in place but they were having minimal impact. We were called in to assess the situation and create an intervention that would be effective.
This pattern is often made worse by the well-meaning actions of OH&S departments who, in a bid to reverse the trend, tend to ‘over message’ and dilute the impact yet further.
more cost effective. We know this because at GDA we have spent the last 18 years doing exactly this. GDA – investing workforce safety
in
your
The issues we discuss in these articles reflect primary concerns The OH&S initiative we devised for within your industry. Given the the company concerned was rolled nature of these we are offering out across all operations with readers of Digging and Drilling one driving message each week. Australasia the opportunity to join The program ran for 8-weeks and us for a free workshop where we will show you how to improve your achieved two staggering results: health and safety communications. 1. A marked drop in incidents Details of this offer will be in the compared to previous years next edition. Places will be limited to 10 people. 2. The best positive feedback rate that the company has ever For more information go to: received from its workforce www.gdadesign.com The solution
Delivering safety messages effectively requires the right blend Guest Writers: of what to say and when to say Lesley Kemp and Giles Dutfield it. In their concern to protect their workforce, many companies ‘over message’. They give out too Our findings many messages and, rather than increasing the effectiveness, this We discovered that there was a actually dilutes the power of the marked saw tooth pattern emerging message resulting in very little with peak points for accidents impact at all. coinciding with particular holidays. The highest peaks occurred in the Breaking the saw tooth pattern final days before long holidays like Rather than trying to ‘snap off’ the Christmas and Easter. high points in a saw tooth pattern, it The reason is simple. People are is more effective to smooth out the tired. They have worked hard all entire pattern over a longer period. year and although they are looking To do that you need to speak forward to spending time on to people who have extensive holiday, they are still mentally tired experience in delivering difficult and in need of a break. As they messages to audiences who are get busier they have to prioritise hard to engage. where to focus their attention. Unfortunately, they often choose This type of proactive approach to OH&S communication is also far to areas other than safety. 16 DIGGING & DRILLING MAGAZINE NOV 2014 - JAN 2015
FEATURE
<<ARTICLE
Australia’s largest fuel terminal begins service to customers
Caltex Australia’s Kurnell Terminal in Sydney has this week “We are pleased to have now transitioned to a modern commenced operation, reaching a significant milestone import facility well-equipped to handle this important role in the $270 million project to convert the historic refinery for many decades to come.” site to Australia’s largest fuel import terminal. The terminal provides 750 million litres of storage capacity Andrew Brewer, Caltex Australia’s General Manager for and will supply fuel to retail sites and commercial customers Supply Chain Operations, said all of the refinery’s major across New South Wales and the ACT. processing units had now been shut down for the final Mr Brewer said the successful transition to a terminal had time after almost 59 years of service. occurred thanks to the dedication of Caltex’s Kurnell team. “This week Caltex marks two important events in its history: the safe, on-time and on-budget completion of Australia’s “We are immensely proud of the contribution made by all newest and largest fuel import terminal, and the final our employees – past and present – in refining the fuel shutdown of a great Australian refinery after many decades that has kept Australia moving for almost 59 years,” Mr Brewer said. of service,” Mr Brewer said. “The market has changed over the refinery’s lifetime but “This professionalism was again evidenced as we carried for some time now – despite all our best efforts to make out the project to safely transition to a new terminal. it as competitive as possible – it has been at a clear “Some of our people have now transitioned elsewhere in disadvantage compared with more modern, larger scale the Caltex business as part of our commitment to find and more efficient refineries in the Asia region. redeployment opportunities where possible. “Caltex’s priority is the safe and reliable supply of fuel to “Our Kurnell people have also responded positively to customers across Australia. an extensive program of ongoing employee support After many decades of faithful service to New South Wales we launched in 2012 to help them make a successful and the ACT, the Kurnell refinery’s substantial contribution transition to a new career opportunity or, for many, into a well-deserved retirement. is coming to an end. NOV 2014 - JAN 2015 DIGGING & DRILLING MAGAZINE 17
Pr OSTCARD My Africa: Kenya PROJECT»
Caltex Australia’s Kurnell Terminal
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“About 75 Caltex employees are involved in work to Fast facts decommission the Kurnell refinery, which will take until • Constructed in the early to mid-1950s by a workforce of over 3,000 people the third quarter of 2015.” • Opened in February 1956 – Official closure October Further site works, including demolition of redundant plant 2014 and remediation, will take a number of years. • Last delivery of crude oil – Seastar, 21 September 2014 Mr Brewer said Caltex was proud of the refinery’s history. • Products manufactured: regular and premium petrol and diesel, jet fuel and fuel oil. By-products “We have consulted with the New South Wales Heritage manufactured included: gases, bitumen and sulphur Council and the Australian Museum to ensure that this • Production capacity history is preserved for future generations,” he said. o Original - 22,000 barrels per day (3.5 million litres / day) o Peak - 135,000 barrels per day (21.5 million litres / day) “Caltex has been collecting memorabilia from the site and • Current Caltex employees – 306 (430 at closure has commissioned a short film. announcement in July 2012) “This month we are releasing a 400-page colour • Regular workforce including contractors of up to 1,000 commemorative book and will be providing this to our • Number of process units: 14, plus infrastructure workforce as well as to the State Library of New South including tanks, pipelines and utilities Wales and libraries in the local community. • Production will cease in mid-October with the shutdown of the final process unit “As we look back and celebrate the refinery’s immense contribution over more than half a century we also look How Caltex supplied fuel (1956 – 2014) forward and know that the economic prosperity of New • Caltex purchased and shipped crude oil from Africa, South Wales will continue to be underpinned by Caltex’s Middle East, Asia and Australia safe and reliable fuel supply for many decades to come.” • The crude oil was pumped into large crude oil tanks Caltex Australia With more than 3,500 employees across Australia, Caltex is the nation’s leading fuels marketer and • is underpinned by a flexible and reliable supply chain. The integrated business incorporates supply, refining, logistics and marketing. With about 22,000 shareholders, including institutions, retail investors, employees, and Chevron • Global Energy Inc., Caltex is the only oil refining, fuel and convenience marketing company listed on the Australian Securities Exchange. Caltex’s vision is to remain the • outright leader in transport fuels across Australia.
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and then processed by the refinery to make different fuel products (e.g. petrol, diesel and jet fuel). Refinery supplies were supplemented by imported shipments of petrol, diesel and jet fuel from other refineries in the region Petrol and diesel were distributed by pipeline to other terminals across Sydney before being loaded onto trucks for delivery to service stations and commercial customers (e.g. mines, farms and other industrial uses) Most jet fuel was pumped directly to tanks at Sydney Airport
Looking after our people In 2012, we made a commitment to retain, retrain and redeploy our Kurnell people where possible, as well as provide generous redundancy entitlements. To date: • About 85 employees (approx. 20% of employee numbers when closure announced) placed in other roles within Caltex including the Lytton refinery in Brisbane and ongoing roles in the Kurnell terminal • About 75 employees placed in transitional roles for refinery decommissioning and demolition
•
At the peak of the conversion project the Kurnell workforce reached over 1,000
How Caltex will supply fuel (2014 – beyond) • Storage capacity of 750 million litres • Imports, stores, and distributes fuel products, including petrol (regular and premium grades), diesel (regular and premium grades) and jet fuel • Fuels are delivered by ship, pumped into tanks, then distributed to other terminals and Sydney Airport using the same pipelines as used by the refinery • More than 45 tanks to hold three major transport fuels: o Petrol products (largest tank holds up to 25 million litres) o Diesel products (largest tank holds up to 74 million litres) o Jet fuel (largest tank holds up to 33 million litres) • 21 kilometres of new pipelines • Maintaining highest quality fuel products through stringent laboratory testing • Employs about 45 operations, maintenance and support staff
For those leaving our organisation, we have continued to assist them in this transition through: • Providing a training allowance of up to $8,000 to each employee to help them prepare for their next career • Hosting a Careers Expo featuring over 50 potential employers (attended by over 500 employees and contractors) • Offering generous redundancy packages • Providing outplacement services for all employees (e.g. assistance with job searches, resume writing, interview Shipping fast facts skills, retirement planning and financial advice) • Three shipping berths • Fuel is pumped two kilometres from the berths to the Construction fast facts terminal via seven pipelines • Project commenced in July 2012 • Accommodates ships up to 245 metres in length or • $270 million conversion cost – delivered safely, onup to 100 million litres of fuel time and on-budget • Average of 180 ship visits per year
Caltex Australia Limited ACN 004 201 307
FEATURE ARTICLE»
Chevron Gorgon Project
An Emerging Australian Icon Gorgon is a story of energy and the environment as well as technology and expertise. It is one of the world’s largest natural gas projects and the largest single resource development in Australia’s history. The Gorgon Project is developing the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 130 and 220 kilometres off the northwest coast of Western Australia. It includes the construction of a 15.6 million tonne per annum (MTPA) liquefied natural gas (LNG) plant on Barrow Island and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia. Gorgon LNG will be off loaded via a 2.1 kilometre long loading jetty for transport to international markets. The domestic gas will be piped to the Western Australian mainland. The Gorgon Project is operated by Chevron. It is a joint venture of the Australian subsidiaries of Chevron (approximately 47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent). The Gorgon joint venture is investing approximately $2 billion in the design and construction of the world’s largest commercial-scale CO2 injection facility to reduce the project’s overall greenhouse gas emissions by between 3.4 and 4.1 million tonnes per year. The Australian Government has committed $60 million to the Gorgon Carbon Dioxide Injection Project as part of the Low Emissions Technology Demonstration Fund.
Chevron Gorgon Project
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Balancing Energy Demands with Environmental Objectives Barrow Island is Gorgon’s home. Although a Class A Nature Reserve, it is recognised internationally as a location where industry and the environment co-exist. History More than 200 exploration wells have been drilled in the Barrow sub-basin over the past 35 years, including West Tryal Rocks in 1972, and Spar in 1976 - both discovered
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by West Australian Petroleum which had been a pioneering company in the development of the West ernAustralian Petroleum industry. WAPET was the operator on behalf of various joint ventures comprising Chevron, Texaco, Shell and Ampolex (the exploration division of Ampol). Chevron and Texaco merged in 2001, Mobil took over Ampolex, and later merged with Exxon to form Exxon Mobil. In 2000, Chevron became the operator of all WAPET’s petroleum assets. WAPET discovered Gorgon in 1981 with the drilling of the Gorgon 1 well. Later discoveries included Chrysaor (1994)
and Dionysus (1996). The Jansz-Io gas accumulation, discovered in January 2000, contains an estimated 566 billion cubic meters of recoverable reserves. The project received preliminary environmental approvals from the West Australian government in September 2007 and from the Federal Minister for the Environment in the following month. The project developers then submitted revised plans to cover an expansion in the size of the project. Final environmental approval was received from the state government on 11 August 2009. On 26 August 2009, the Federal Environment Minister announced that
the expanded project on Barrow Island had been given conditional environmental approval. During the 2007 Australian federal election campaign, the Australian Labor Party announced that a future Labor government would set aside 25% of future Petroleum Resource Rent Tax from the Gorgon project to establish a Western Australian Infrastructure Fund.
The US$33 billion expansion plan was shelved in 2012. Image courtesy of BHP Billiton
Chevron Gorgon Project
FEATURE ARTICLEÂť
Track and report surface movement with Maptek Sentry Maptek has announced Maptek Sentry - a new system that will help site personnel keep track of surface changes.
‘Sentry works with the I-Site 8820 laser scanner to monitor and report on movements that have the potential to interrupt mining activity,’ said Maptek Laser Imaging Solutions Manager, Athy Kalatzis. Mining customers provided input and experience that helped enhance the Sentry system, which takes advantage of the latest sensor technologies in the I-Site 8820 laser scanner. Sentry offers significant advantages for monitoring low wall stability and is a cost-effective solution for acquiring fast and responsive surface change data over large areas. ‘Ease of use is important for busy survey teams. Once the laser scanner is set up, an overview scan provides a starting point to establish multiple zones in an area of interest. The user controls monitoring frequency and site tolerances for notification alerts,’ added Kalatzis.
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FEATURE ARTICLE »
Displacement, velocity and inverse velocity can be used to trigger notifications, which are automatically sent when network connections are available. A heat map provides an instant overview of surface movement in the selected area. Sophisticated algorithms in Sentry decrease scan noise and improve accuracy. Sentry data is stored in a reduced format to allow for quick analysis and processing. Time lapse videos and other reporting outputs are easily created. The original laser scan data can be exported to Maptek I-Site Studio to calculate volumes, generate surface models and conduct geotechnical analysis. ‘We’ve thought hard about operational workflows and the need for flexibility alongside a safe, remote sensing solution,’ said Kalatzis. ‘You can leave the Sentry laptop in the field and control the system remotely to set new zones for monitoring. Or bring the data back to the office for further analysis and watch movement in real time.’ ‘Sentry can be used to monitor multiple areas at specific intervals. Operations can also deploy the I-Site laser scanner for other site survey applications,’ concluded Kalatzis. Maptek Sentry will be available from November 2014. It will complement the I-Site 8820 laser scanner and version 5.0 of I-Site Studio software, in Maptek’s line up of decision support technology.
About Maptek Maptek™ is a leading provider of innovative software, hardware and services for the mining industry. Founded over 30 years ago, Maptek develops products which are used at more than 1700 sites in 65 countries. Products cover the whole mining cycle from exploration to reclamation. Vulcan™ is one of the longest standing 3D mine planning and modelling packages. I-Site™ is an integrated hardware and software system for 3D laser scanning, surveying and imaging. BlastLogic™ provides intelligent 3D drillhole validation and load design software. Eureka™ features an interactive 3D environment for visualising and interpreting geophysical and seismic data. PerfectDig is an intuitive system to rapidly compare excavations against designs in the field, improving decision making and resource recovery.
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Nationwide Auto Electrical Top Quality Service With A Difference
Nationwide Auto Electrical uses the latest electronic diagnostic tools and a computer database of wiring systems to diagnose and repair electrical faults quickly and easily. We repair all types of electrical problems, from auto and air conditioning components to industrial and healthcare applications – if it’s got a wire, we can fix it! If you can’t come to our Malaga workshop, no worries! We can arrange for one of our mobile service vans to come to you.
Our Services • Air Conditioning • Alternators • Mobile Phone Car Kits • Marine
• Custom Control Systems • Starter Motors • Fuel Injection • Alarms
Unit 2/726 Marshall Road Malaga WA 6090
• Immobilisers • Central Locking • Rewires • Reversing Safety Systems
Phone: 08 9248 5324
www.nationwideautoelectrical.com.au
For more information visit: 30 DIGGING & DRILLING MAGAZINE AUG 2014 - OCT 2014
Kan Tan IV
FEATURE
<<ARTICLE
Arrives in New Zealand for Drilling Campaign The Kan Tan IV (mid-water semisub) arrived Monday at Admiralty Bay in the Marlborough Sounds as it prepares to commence a multiple well drilling campaign in the Taranaki Basin off New Zealand. Kan Tan IV was transported from Malaysia to the Taranaki Basin by Dockwiseâ&#x20AC;&#x2122;s heavy transport vessel. Local engineers are removing fastenings attaching the semisubmersible to Blue Marlin before getting Kan Tan IV ready for tow to the Matuku-1 oil field in exploration permit PEP 51906, local daily The Marlborough Express reported. The semisubmersible will drill the Makutu-1 well to 15,912 feet (4,850 meters) after being moored in 443 feet (135 meters) of water. Matuku is located to the west of the New Zealandâ&#x20AC;&#x2122;s offshore Maui gas field and southwest of the Tui field. Joint venture partners in PEP 51906 exploration permit comprised operator OMV Group (65 percent), Octanex N.L. (22.5 percent) and New Zealand Oil & Gas Limited (12.5 percent).
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OMV Plugs Taranaki Basin Well Austrian oil company OMV has plugged a well in the Taranaki Basin after the presence of commercial hydrocarbons could not be confirmed. OMV, New Zealandâ&#x20AC;&#x2122;s biggest oil producer and third-largest gas producer, said today that it had completed drilling operations at the Whio-1 exploration well. It had drilled to a depth of 2824 metres, and while it encountered sandstones as expected, it could not confirm the presence of commercial hydrocarbons. The well was being abandoned before the rig was moved. OMV New Zealand managing director Peter Zeilinger said the well marked the end of the companyâ&#x20AC;&#x2122;s current exploration campaign.
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“Although unsuccessful in making a commercial discovery at Whio-1, the data obtained is a valuable piece of the puzzle as we work to understand the generation and accumulation of hydrocarbons in the Taranaki Basin,” he said. Whio-1 was the third well drilled by the company with the Kan Tan IV semi-submersible rig over the past year. In June, it announced its profits in New Zealand almost halved in the past year to $97 million, down from almost $180m in the previous year. The drop was because the big Maari oilfield was out of production for more than four months while its tanker ship was repaired. OMV’s total production in New Zealand last year was equal to about 6 million barrels of oil. For the December 2013 year, OMV New Zealand posted total revenues of about $510m, down from $676m in the previous year, reflecting the long shutdown of Maari and slightly lower world oil prices.
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OFFICE & WORKSHOP 49 Candlewood Boulevard, Joondalup 6027 Tel: (08) 9300 3135 Fax: (08) 9300 3236 Email: mark@mechbro.com.au
MechBro Australia has been set up to respond to the demand for Heavy Duty Diesel Mechanics and Fitters involved in the repair, maintenance and servicing of earthmoving, mining and transport equipment as well as light vehicles. Our business is based in Perth and also services regional areas, including the Pilbara. Our people are highly skilled and motivated to provide the highest level of service to companies throughout Western Australia. With a fleet of mine specifi ed and f ully equipped service utilities, w e are unique in that w e are not simply a labour hire company. Because with MechBro you don’t just get a capable individual, you get the strength of our entire team! MechBro’s team of mechanics and fitters are committed to the economic success of our customers. And so, before joining us, must demonstrate they possess the passion, skills and attitude required to satisfy our customers. Accordingly, we believe this set of values will help to ensure the mutual economic success of all parties.
OUR PEOPLE
Whether it be a civil or mining project, every person on our team knows that to keep plant operating means productivity. We work hard and use our heads! As a collective, our team of highly skilled mechanics diagnose, repair and maintain a wide variety of plant and equipment, dozers, excavators, graders, scrapers, profilers, dump trucks, bobcats, heavy haulage road transport, etc. Our team has the experience, qualifications and equipment to work on all aspects of these machines including engine rebuilds, hydraulics, track and frame, electrics and air conditioning and on all brands, including, but not limited to; CAT, Hitachi, Komatsu, Terex, O&K, Volvo, Bell, Vermeer, Cummins. As a team of mechanics, fitters, servicemen and fabricators we keep machines going, as well as being involved in site mobilization where we establish containerized workshops complete with domes and commission machinery ready for operation. Upon project completion we demobilize workshops and plant and are often the last to leave site.
Throughout a project we are able to REFRIGERENT TRADING manage all parts ordering and delivery, AUTHORISATION including urgent hot shots. Our tilt tray MechBro has the capability and can pick up and deliver parts and 20’ authorisation to repair your air containers up to 8.5T. conditioning units.
WHERE WE’VE WORKED
MACHINERY AND VEHICLE HIRE
During the last 18 months we’ve worked at many major mine sites owned by BHPB, RIO, FMG, Sandfire Resources and more recently Onslow Quarry. Our people understand the rigorous requirements of working on these sites and act accordingly.
Mechbro can provide a variety of machinery and vehicles to suit your needs. MechBro currently have 6 mine specified service vehicles supported by a tilt tray truck capable of loading and unloading 20’ sea containers and moving items of plant up to 8 Tonne.
SAFETY FIRST
Having established MechBro Pty Ltd on May 9th 2011, with 2 mechanics we have experienced rapid growth and now have a great team of mechanics and service men. In 2012 we also acquired a light vehicle w ork shop in Joondalup. Within the next 12 months we will be establishing a heavy duty workshop where we can service, repair and store larger equipment.
Our aim is to conduct our business using systems and practices which will ensure that our workforce and the community are protected from injury and harm. Safety and productivity go hand in hand with our people working as problem solvers to get the job done.
WORKSHOP & ONSITE SERVICE
We have the equipment and the facilities to service your machinery and vehicles. We will also invest in our business and tailor to your requirements.
For more info, contact Mark Nielsen
Mobile: 0438005655
www.mechbro.com.au
MINE-SPEC
VEHICLES To drive your dollar further
Specialised provider of quality mine safety vehicles Short and long term hire ROPS and IVMS, two way radios and other mine safety equipment available Trays, dual cabs and wagons, plus other vehicles including buses Budget services all of Australiaâ&#x20AC;&#x2122;s major mining regions
Call us on 13 27 27 today
CT10006
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