DIGGING & DRILLING Magazine by Digging & Drilling Australasia Magazine

AUSTRALIA • CHINA • INDIA • JAPAN • NEW ZEALAND • ASIA PACIFIC

D&D OCT – DEC 2020 • ISSUE 30

AUSTRALASIA

AUSTRALASIA’S QUARTERLY OIL , GAS & MINING MAGAZINE

BHP 2020 WOMEN IN RESOURCES NATIONAL AWARDS WINNERS BHP APPRENTICESHIP PLEDGE & METS BUSINESS SUPPORT PACKAGE EPS INKS WORLD’S FIRST DRY BULK LNG DUAL FUEL CHARTER WITH BHP GAS EXPORTING COUNTRIES FORUM JOINS G20 ENERGY MINISTERIAL MEETING

Editor’s Letter COVID-19 has hit commodities hard, but the sky is not quite falling. Demand for energy has fallen, hitting Western Australia’s $35 billion energy sector, but iron ore, now worth $95 billion is booming. As other countries invest in infrastructure projects the Australian economy will grow. Prior to the Federal Budget announcement this year, Mathias Cormann, Australian government Finance Minister highlighted the key contributions of the mining and resources sector to Australia’s economic recovery from the COVID-19 pandemic. Minister Cormann said; “The mining sector has made a strong contribution. That has been one of the reasons why we

LEN FRETWELL Publisher / Managing Editor Digging & Drilling Australasia Magazine

have been able to get through the economic impact of the pandemic in a better fashion than we otherwise might have. I am very confident that mining has a strong future.” Primarily due to the resurgent iron ore price, strong iron ore revenue will help fund a $27 billion infrastructure spend by the Western Australian Government over the next four years. His revenue will help to offset the $5.5 billion the State Government has spent on recovering from COVID-19. The Economist Intelligence Unit (The EIU) released its Industries in 2021 report in Q4, 2020 which forecasts growth and assesses key risks in six business sectors, including energy, for 2021. Peter Kiernan, principal analyst for energy at The Economist Intelligence Unit, says: “The years 2020 and 2021 will be lost years in terms of demand for the three fossil fuels – oil, gas and coal. Of the three, gas will be the least. Oil will take slightly longer to bounce back to the 2019 level, while coal is the most likely to have seen its peak. Renewables, meanwhile, will suffer in the shorter term from a slowdown in investment and capacity growth, but will be more resilient to the impact of COVID-19. Key takeaways from the EIU Industries in 2021 report for the energy sector include: Demand for oil and gas will recover only partially from 2020’s slump, with the weakness of the rebound keeping a lid on prices. Solar and wind combined will record the strongest growth among all sources in 2021, while coal consumption will be weak. Climate-friendly approaches to economic growth will dominate but not everywhere. All eyes will be on China in the light of its recent announcement to target carbon neutrality by 2060. This is likely to fuel the growth in renewable energy, particularly in Asia. You can read the full report here; https://www.eiu.com/n/campaigns/industries-in-2021/ Federal Resources Minister Keith Pitt said Australia was on track to become the world’s biggest gold producer by 2021. China is currently the world’s largest gold producer followed by Australia and then Russia. This is good news for gold producers, the Australian economy and national job seekers. It is also predicted that Australia’s gold industry to grow even stronger in 2020-21, with experts forecasting gold to be worth AUD31 billion, making it the third largest export commodity after iron ore and LNG. Fortunately, the Federal Budget’s focus on tax cuts and job creating infrastructure projects should also help restart greater air travel as business and consumer confidence grows. Best regards

Len F retwell Len Fretwell Publisher/Managing Editor

www.diggingdrilling.com

@DigandDrill

OCTOBER – DECEMBER 2020 DIGGING & DRILLING MAGAZINE

WHAT’S IN THIS ISSUE »

IN THIS ISSUE 3

EDITOR’S LETTER

BHP 2020 WOMEN IN RESOURCES NATIONAL AWARDS WINNERS

NEWS IN BRIEF: OIL, GAS & MINING NEWS HIGHLIGHTS FOR THE QUARTER

EPS SIGNS WORLD FIRST DRY BULK LNG DUAL FUEL CHARTER WITH BHP

INPEX-OPERATED ICTHYS LNG PROJECT ACHIEVES FINANCIAL MILESTONE

BHP APPRENTICESHIP PLEDGE & METS BUSINESS SUPPORT PACKAGE

EXPORTING COUNTRIES FORUM PARTICIPATE IN G20 MINISTERIAL MEETING

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OECD upgrades Australia’s economic growth outlook The OECD has upgraded Australia’s economic growth outlook for 2020 in its latest Interim Economic Outlook Report despite the global economy being hit by “an unprecedented sudden shock in modern times” as a result of the coronavirus crisis. According to the OECD, global GDP will contract by 4½ per cent in 2020 before picking up by 5 per cent in 2021, as the world deals with the economic fallout from the coronavirus. To put this in context, global growth fell just 0.1 per cent in 2009 during the Global Financial Crisis. Economic growth in Australia is projected by the OECD to fall by 4.1 per cent in 2020, representing an improvement of 0.9 percentage points compared to the OECD Economic Outlook from June. Australia’s economic outlook compares remarkably well to other nations with the United Kingdom forecast to contract 10.1 per cent, Italy 10.5 per cent, France 9.5 per cent, Canada 5.8 per cent and Germany 5.4 per cent. The OECD also sends a warning that “localised lockdowns, border closures and new restrictions being imposed in some countries to tackle renewed virus outbreaks are likely to have contributed to the recent moderation of the recovery in some countries, such as Australia.” Put simply closed borders cost jobs and put the economy in a weaker position to recover.

Only by working together will we beat this virus and ensure that our economy comes out stronger on the other side with the OECD calling on “enhanced global co-operation to maintain open borders and the free flow of trade, investment and medical equipment which is essential to mitigate and suppress the virus in all parts of the world and speed up the economic recovery.” Australia approached this crisis from a position of economic strength. The Federal Budget returned to balance for the first time in 11 years which underpinned our capacity to respond to this unprecedented shock with more than $300 billion in economic support. State Governments will also play an important role in the recovery with the RBA Governor proposing to National Cabinet that States Governments commit a further $40 billion in areas such as infrastructure over the next two years. The Morrison Government will continue to do what is necessary to cushion the blow and help all Australians get to the other side of the crisis.

Tania Constable, CEO

Budget confirms mining is key to recovery, jobs and essential services Mining has sustained the Australian economy as the 2020 pandemic hit and will be the bedrock for driving a recovery in investment, jobs, and hope for Australia’s youth. The federal Budget delivered today confirms that mining will contribute strongly to Australia’s return to growth, continuing its significant contribution to the tax income that funds health, education, and security.

Additional funding to ensure timely approvals and progress reforms to the Environment Protection and Biodiversity Conservation Act 1999 will support industry investment and expedite projects.

Mining investment is forecast to grow 5.5 per cent this financial year, carrying the load while other parts of the economy reset for the future.

The industry will continue to support investments expanded in the budget for specific training for Indigenous youth.

Mining companies had already mapped new opportunities for education and training of existing and future workers, and the industry welcomes the support in the Budget for this response. The government’s employment support scheme, JobMaker, provides welcome initiatives, notably the temporary full expensing of capital assets, temporary loss carry-back, wage subsidy for apprentices and changes to the research and development tax incentive. This will accelerate job creation and investment. And the significant role of mining in innovation and future industries is recognised through co-investment in resources technology and critical minerals processing, support for low emissions technology including carbon capture and storage, and targeted initiatives to support the energy market.

The Australian mining industry is the nation’s largest exporter, generating $283 billion in 2019-20. Mining also pays the highest average earnings – $140,000 a year – and employs 240,000 people in highly skilled jobs across Australia. Australian minerals companies paid $39 billion in company tax and royalties in 2018-19. Staying the course on structural reform, including more competitive taxation, faster project approvals, more flexible workplace relations and industry-led skills and training, will enhance the effectiveness of the government’s fiscal measures and enable more rapid and sustained Budget repair. Statement from Tania Constable, Chief Executive Officer.

OCTOBER – DECEMBER 2020 DIGGING & DRILLING MAGAZINE

BHP 2020 WOMEN IN RESOURCES NATIONAL AWARDS

Winners of the BHP 2020 Women in Resources National Awards Dyno Nobel Exceptional Woman in Australian Resources Award

Newcrest Exceptional Young Woman in Australian Resources Award

Rio Tinto Gender Diversity Champion in Australian Resources Award

Renata Roberts

Kathryn Young

Brett Robins

Renata Roberts, Chief Corporate Services Officer, The Bloomfield Group in Singleton New South Wales for the extensive examples of her leadership across a number of areas, her capability and agility throughout her career, and for her community outreach particularly through the HR Hub and Educators Forum initiative.

Kathryn Young, Geotechnical Engineer at BHPâ&#x20AC;&#x2122;s Peak Downs Mine in Moranbah Queensland for her impressive technical leadership, mentoring and strong advocacy on gender diversity.

Brett Robins, Crew Leader, Bell Bay Aluminium in Tasmania for his strong personal commitment to diversity and for achieving a 50 per cent increase in female participation as well as sustainable cultural change in the workplace.

The winners of the prestigious BHP 2020 Women in Resources National Awards highlight the diversity, calibre and skills of people working in Australia’s worldleading resources industry. These awards celebrate initiatives that create a more diverse, safer, fairer and stronger sector. And as ambassadors and role models, the award winners will inspire more women to enter the resources workforce. While the number of women participating in the resources sector has improved in past decades, there is still a way to go to lift female participation in the industry.

These awards clearly demonstrate that women play a significant role in improving the industry at all levels. Sharing the stories of the winners and finalists also helps to raise awareness of the diverse resources sector careers in science, technology, engineering, mathematics, social sciences and the trades. The awards ceremony, hosted with news anchor Chris Bath, can be viewed on YouTube (https://youtu.be/tOff6tfbnRY) including interviews with all six winners as well as Edgar Basto, President of Minerals Australia from awards principal sponsor BHP and the Chair of the MCA, the Hon Helen Coonan.

The BHP Women in Resources National Awards help raise awareness of the diverse resources sector careers in science, technology, engineering, mathematics, social sciences and the trades.

Maptek Women in Resources Technological Innovation Award

St Barbara Excellence in Company Programs and Performance Award

Thiess Outstanding Australian Tradeswoman, Operator or Technician Award

Larnie Mackay

Vanessa Davies

Jennifer Ward

Larnie Mackay, Digital Transformation: Underground Project Lead, Anglo American in Moranbah Queensland for her innovation and perseverance in leading the development of the first and so far only electronic tablet device certified for unrestricted use in underground coal mining in Australia.

Vanessa Davies, National General Manager, Diversity, Inclusion & Indigenous Engagement at Compass Group in Perth for the Launch into Work program which supports long-term unemployed women.

Jennifer Ward, Open Pit Supervisor at Newmont’s Boddington gold mine in Western Australia for her strong leadership and influence on-site and in the community.

OCTOBER – DECEMBER 2020 DIGGING & DRILLING MAGAZINE

NEWS IN BRIEF »

Shell invests in Arrow Energy’s Surat gas project

Shell Australia (Shell) has taken a final investment decision to develop the first phase of Arrow Energy’s Surat Gas Project in Queensland, Australia. This decision will bring up to 90 billion cubic feet per year of new gas to market at peak production, which will flow to Shell-operated QGC to be sold locally and exported through its plant on Curtis Island. “The utilisation of QGC’s existing upstream pipelines and treatment facilities enables Arrow to significantly reduce development costs, making the project competitive and economically attractive,” said Maarten Wetselaar, Integrated Gas and New Energies Director at Shell. “The Arrow joint venture partners’ decision not to build another two trains on Curtis Island provided the opportunity to create this alternative pathway to market for the resource. The approach we have taken to this investment is aligned with Shell’s focus on actively managing all operational and financial levers to deliver sustainable cash flow generation. It reflects our disciplined approach to capital spend, which takes a long-term view of the fundamentals of supply and demand.” “QGC has reached strong and stable production since its start up in December 2015, and Arrow has the strong technical capability to develop the Surat Basin fields innovatively and efficiently,” said Shell Australia Chairman Tony Nunan. “QGC supplied 16 percent of the demand in the Australian east coast domestic gas market in 2019 and celebrated its 500th LNG cargo. Gas from Arrow will provide more supply to both Australian domestic customers and export markets.” Construction of the project will commence in 2020, with first gas sales expected in 2021.

Fortescue joins Lifeline WA for Pilbara operations mental health roadshow Fortescue Metals Group (Fortescue) team members across the Pilbara are being encouraged to have healthy conversations about mental health, as part of the Company’s annual mental health roadshow. To mark World Mental Health Day and WA Mental Health Week, Fortescue’s Chaplains embarked on a month-long roadshow across the Company’s Pilbara operations, featuring guest speaker and Lifeline WA’s suicide prevention community advocate Dave Kelly, to raise awareness of mental health and wellbeing and provide direct access to support services. Fortescue Chief Executive Officer Elizabeth Gaines said, “Safety and family are at the core of our values and the mental health roadshow is an important reminder to our team members of the importance of looking out for their mates and themselves. 2020 has been a year of unprecedented disruption, especially for our fly-in, fly-out team who have experienced the additional pressure from longer rosters during the height of COVID-19 restrictions and East Coast team members who are temporarily separated from family and friends as they continue to work in WA. “We are proud of how the entire Fortescue family has come together during these challenging times and it is our responsibility to ensure our team members feel physically and mentally supported at all times,” Ms Gaines said. Lifeline WA Chief Executive Officer Lorna MacGregor said, “After an incredibly unsettling year for the whole community, raising awareness of mental health issues on World Mental Health Day seems more important than ever. Lifeline WA is proud to join forces with Fortescue Metals Group in October to share real-life stories and encourage everyone to reach out when they need help.” Lifeline WA provides all Western Australians experiencing a personal crisis or thinking about suicide with access to 24-hour crisis support and suicide prevention services. If you or your loved one needs to talk to someone, please call Lifeline WA on 13 11 14.

Record jobs and sales in WA’s resources sector • $ 22 billion increase in mineral and petroleum sales in 2019-20 • A record 135,000 people employed in WA’s resources sector Western Australia’s resources industry experienced record sales of $172 billion in the 2019-20 financial year, according to statistics released by the Department of Mines, Industry Regulation and Safety. Iron ore sales reached a record $103 billion on increased output and an eight-year price high. Gold sales also soared to an all-time high of almost $16 billion, with prices averaging more than $2,300 per ounce. Mineral exploration expenditure hit $1.7 billion, an increase of 17 per cent from $1.4 billion in 2018-19.

Oil sales increased to $2.6 billion on higher volumes, despite lower prices across the first half of 2020, while nickel sales recovered to more than $3.1 billion, a four-year high. A record average of 135,000 people were employed in the resources sector during 2019-20, up from 128,374 the previous year. Iron ore and nickel construction activities accounted for most of the growth, while exploration employment also increased 12 per cent. Almost $19 billion was invested in WA’s resources sector, up from $17 billion in 2018-19. This represents the first year-onyear increase in mining and petroleum investment since the 2012-13 iron ore and LNG boom. There are currently more than $100 billion worth of projects in the pipeline.

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WesTrac Technology Training Centre opens for business Western Australian Premier Mark McGowan and Minister for Regional Development Alannah MacTiernan officially opened leading Caterpillar dealer WesTrac’s new Technology Training Centre near the South West town of Collie.

The centre is only the second such training facility in the

“We are also planning to expand the range of courses on offer

world focusing on the technical skills required to operate

to ensure the facility caters for the skills that will be in demand

autonomous equipment for use in the resources sector. The

as the resource sector evolves and the roles associated with

State Government contributed $2.7m through the Collie Futures

that evolution become more technically advanced.

Fund towards the project.

“WA has the highest number of automated haulage fleets

Mr McGowan said the facility complemented Collie’s rich history

anywhere in the world and the WesTrac Technology Training

as a mining and industrial hub and was significant for the State.

Centre is a vital resource to support automation projects, as well

“The WesTrac Technology Training Centre is a key contributor to ensuring Western Australia becomes a global centre for excellence in mining technology,” Mr McGowan said. Joining Mr McGowan, Ms MacTiernan and retiring local MLA Mick Murray at the launch were board and executive members from WesTrac as well as numerous major mining companies. WesTrac CEO Jarvas Croome said training had already commenced at the facility and interest from major mining operators was strong. “The initial focus is training in fit-out, calibration and maintenance requirements for the conversion and operation of existing Caterpillar haulage vehicles, which are used at most major mine sites around the country,” Mr Croome said.

as equipping existing and future workers with essential technical skills to drive the industry forward. “We are excited to have been able to build this facility in Collie and look forward to working with the local community to make the experience for visiting trainees one they will remember. “We have already partnered with various local operators to provide catering, cleaning and various other required products and services, and will continue to buy locally wherever possible. “We also see plenty of opportunities for local businesses to get involved providing tourism and other experiences to trainees visiting the area.” Image Source: WesTrac

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FEATURE ARTICLE»

EPS inks world’s first dry bulk LNG dual

Both companies credit a shared commitment to industry-wide decarbonisation as a driving force behind the five-year contract for five LNG dual fuel Newcastlemaxes. Eastern Pacific Shipping (EPS) has been awarded the world’s

resonated with our decarbonisation mission and our culture of

first LNG Dual Fuel Newcastlemax bulk carrier contract by global

environmental protection.

resource giant BHP. The five vessels, which will be carrying iron ore between Western Australia and China, are scheduled to be delivered throughout 2022.

This deal also sends a clear signal to the industry that progressive companies, like BHP, have viable options to lower their carbon footprint today. When these vessels deliver in 2022, they will

The fleet of 209,000 DWT vessels will be powered by LNG, an

be the cleanest and the most efficient in the entire dry bulk

alternative marine fuel proven to significantly lower greenhouse

shipping fleet and will be IMO 2030 compliant eight years ahead

gas (GHG) emissions. LNG has emerged as a viable and readily

of schedule.”

available solution that reduces sulphur oxide, carbon dioxide, nitrogen oxide and eliminates particulate matter. In addition, these vessels will be fitted with high-pressure MEGI engines which reduces methane slippage to negligible levels. EPS CEO Cyril Ducau states, “We are thrilled to partner with BHP, one of the world’s largest dry bulk charterers on this landmark deal. When discussions began, it became evident that our values and sustainability agendas were aligned. BHP’s commitment to making a positive change for the industry

BHP recently released the world’s first bulk carrier tender for LNG-fuelled transport for up to 27 million tonnes of its iron ore. BHP Chief Commercial Officer, Vandita Pant said, “As an established provider of marine transportation to the energy market for 60 years, EPS shares BHP’s commitment to lowering emissions in the maritime supply chain and we look forward working with them to align with the GHG goals of the International Maritime Organisation.”

fuel charter with BHP

Vice President, Maritime and Supply Chain Excellence, Rashpal

“We are fully supportive of the International Maritime

Bhatti said emissions resulting from the transportation and

Organisation’s (IMO) decision to impose lower limits on sulphur

distribution of BHP’s products represent a material source of

levels in marine fuels,” Mr Bhatti said.

its value chain emissions (Scope 3).

“While LNG may not be the sustainable homogenous fuel of

“This new tender adds to the work BHP is doing with customers,

choice for a zero carbon future, we are not prepared to wait for

suppliers and parties along our value chain to influence

a 100% compliant solution if we know that, together with our

emissions reductions from the transport and use of our products,”

partners, we can make significant progress now.”

Mr Bhatti said. Introducing LNG-fuelled ships into BHP’s maritime supply chain

As well as investments in emerging technologies, BHP sets greenhouse gas emissions reduction targets for its operations,

will eliminate NOx (nitrogen oxide) and SOx (sulphur oxide)

builds the resilience of its operations and communities to the

emissions and significantly reduce CO2 emissions along the

physical impacts of climate change, and works across sectors

busiest bulk transport route globally.

to strengthen the global policy and market response.

“We recognise we have a stewardship role, working with our

Image Source: Eastern Pacific Shipping

customers, suppliers and others to influence emissions reductions across the full life cycle of our products,” Mr Bhatti said.

OCTOBER – DECEMBER 2020 DIGGING & DRILLING MAGAZINE

INPEX-operated Ichthys LNG Project

FEATURE ARTICLE»

INPEX recently announced that the INPEX-operated Ichthys LNG Project (the Project) has successfully achieved an important milestone with financial completion under its project financing agreements. The achievement releases INPEX and its joint venture participants from completion guarantee obligations to the lenders of the Project. A key part of financial completion involves satisfying a 90-day operational completion test where Operator needs to demonstrate the performance of the Ichthys liquefied natural gas facilities with the cumulative production volume calculated over the 90-day period continuously. The Project’s 90-day completion test ended successfully on 7 December 2019 with no shutdowns and having recorded a production volume well exceeding figures required by the project financing contract. The timespan of approximately 14 months from the Project’s first LNG shipment in October 2018 until financial completion is shorter than the average for LNG projects of a similar scale, which demonstrates how the Project’s production ramp-up has been progressing smoothly and steadily. INPEX will continue to lead efforts to sustain stable operations at Ichthys LNG with the understanding and cooperation of all its stakeholders, including the Project’s joint venture participants,

local

communities,

the

Commonwealth

Government and the governments of the Northern Territory and Western Australia. Approximately 70 per cent of the LNG produced is scheduled to be supplied to Japanese customers. Through the Project, INPEX is poised to contribute further to the stable supply of energy to Japan and Taiwan while responding to energy

About INPEX INPEX CORPORATION is Japan’s largest exploration and production (E&P) company, and a midtier E&P player just behind the world’s oil majors. INPEX is currently involved in approximately 70 projects across more than 20 countries, including the Ichthys LNG Project in Australia as Operator. Through sustainably growing its

demand in Asia and around the world.

oil and gas development business, developing a global

The impact of this matter on the Company’s consolidated

energy initiatives, INPEX aims to become a leading

financial results is nil.

energy company and continue providing a stable and

gas value chain business and reinforcing its renewable

efficient supply of energy to its customers. For more information, visit www.inpex.co.jp/english/ Image: Icthys Field Development Image Source: INPEX CORPORAION

index.html.

achieves important financial milestone

About the Ichthys LNG Project The Ichthys LNG Project is a project led by INPEX

gas (LPG) per year, along with approximately 100,000

(Operator, participating interest: 66.245%) alongside

barrels of condensate per day at peak.

major partner TOTAL (participating interest: 26%) and the Australian subsidiaries of CPC Corporation, Taiwan (participating interest: 2.625%), Tokyo Gas (participating interest: 1.575%), Osaka Gas (participating interest: 1.2%), Kansai Electric Power (participating interest: 1.2%), JERA (participating interest: 0.735%) and Toho Gas (participating interest: 0.42%) that involves liquefying natural gas lifted from the Ichthys Gas-condensate Field offshore Western Australia at an onshore gas liquefaction plant constructed in Darwin, Northern Territory, and producing and shipping approximately 8.9 million tons of liquefied natural gas (LNG) and approximately 1.65 million tons of liquefied petroleum

The Ichthys LNG Project is a large-scale LNG project by global standards and is expected to be operational over a period of 40 years. In 1998, INPEX acquired an exploration permit in the block where the project is located, and following development studies including exploration, evaluation and FEED work, the company announced its final investment decision (FID) in January 2012. Thereafter, following the construction of the required facilities, the Project commenced production of gas from the wellhead in July 2018 and commenced shipment of condensate and LNG in October 2018, and LPG in November 2018.

OCTOBER â&#x20AC;&#x201C; DECEMBER 2020 DIGGING & DRILLING MAGAZINE

Hon Mark McGowan

Hon Alannah MacTiernan MLC

BA LLB MLA

Premier; Minister for Public Sector Management;

Minister for Regional Development;

State Development, Jobs and Trade; Federal-State Relations

Agriculture and Food; Ports;

Collie’s trailblazing autonomous vehicle training centre opens Premier Mark McGowan, Regional Development Minister Alannah MacTiernan and Collie-Preston MLA Mick Murray have today officially opened Collie’s WesTrac Technology Training Centre, the first of its kind in the southern hemisphere. • WesTrac Technology Training Centre in Collie to attract hundreds of trainees • First of its kind in the southern hemisphere supporting Collie’s economy and jobs • State Government contributed $2.7 million from $20 million Collie Futures Fund The cutting-edge, advanced skills training centre in Collie

technology and the WesTrac Technology Training Centre will

includes a dedicated autonomous vehicle training facility for

help put us on the map and support our efforts.

the resources industry and will support a pipeline of jobs and economic opportunities for Collie.

“It not only provides future job opportunities for people in the South-West and across the State, but as the only facility for

The training centre is only the second of its type in the world

Caterpillar equipment training in the southern hemisphere, will

focusing on the technical skills needed to operate autonomous

attract trainees from across the country and globally into the future.

equipment for use in the resources sector, which are in rising demand globally.

“The facility will also play a part in establishing a range of new opportunities for Collie and the broader South-West region,

With an initial focus on Caterpillar mine haulage vehicles, the

and provides a great example of developing STEM career

centre is set to attract technicians from resource companies

opportunities for the next generation of Western Australian

from other Australian States and the wider Asia-Pacific region

workers.”

once borders reopen.

Regional Development Minister Alannah MacTiernan said,

The State Government contributed $2.7 million to the facility, its

“When the Collie Futures Fund was launched by the State

latest investment from the $20 million Collie Futures Fund which

Government, it opened the doors to new industry to create

is aimed at diversifying Collie’s economy and creating jobs.

jobs and broaden the town’s economic base.

The training centre was jointly developed by WesTrac and

“This is one of the key projects supported by the fund has come

the landowner, Bluewaters Farm Holdings, at the Coolangatta

to fruition, and we are proud to see this incredible WesTrac

Industrial Estate, near the Bluewaters power station.

Technology Training Centre formally open.”

The new facility complements Collie’s rich history as an industrial

“This facility is crucial in meeting growing demand for training

hub and builds its capability for Mining Equipment, Technology

in autonomous technology, particularly in the resources sector,

and Services.

and all from Collie in regional WA.”

At the opening ceremony Premier Mark McGowan said, “We want WA to become a global centre for excellence for mining

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BHP apprenticeship pledge and METS business support package BHP CEO Mike Henry has announced BHP’s commitment to training and funding for 3,500 new Australian apprenticeship and training positions and driving up to AU$450 million into supporting business opportunities in Australia’s mining, equipment, technology, and services (METS) sector. Mr Henry said the major skills and technology package would

billion in economic value through jobs, suppliers, taxes, royalties,

be good for the company and good for the country, as Australia

and community investments.

focuses on its recovery from the COVID-19 pandemic.

BHP accelerated payments and reduced payment terms for small

The near AU$800 million package announced today comprises

suppliers during the peak of the pandemic, hired an additional

three key elements to be deployed over the next five years:

1500 people on temporary contracts to support its Australian

• An increase of 2,500 apprenticeships and traineeships through the BHP FutureFit Academy, established earlier this year, with associated spend of AU$300 million. • A further 1,000 skills development opportunities across a range of sectors in regional areas. BHP will invest AU$30 million and work with the Australian Government to create advanced apprenticeships and short courses in areas of potential future workforce demand. • BHP will commit up to AU$450 million spend in contracts with Australian METS companies and further advancement of this sector. It will work directly and through its major technology providers to source more local products and services and will invest in technology pilots and emerging businesses. Mr Henry said: “As Australia looks to rebuild its economy and provide jobs for the future, the mining industry has an important role to play as Australia’s biggest export earner employing hundreds of thousands of people.” “The mining and METS sector is a critical pillar of our economy, and it has never been more important than now.

operations, created a AU$6 million fund to support labour hire companies and their employees, and established the AU$50 million Vital Resources Fund to support regional communities. BHP will create 2,500 new apprenticeship and traineeship positions over the next five years through the BHP FutureFit Academy, established in March this year, with associated spend of AU$300 million. Places would be split between the Academy’s campuses in Mackay in Queensland and Welshpool (Perth) in Western Australia. Apprenticeships are on offer for heavy diesel fitters and mechanical fitters, with the program also offering a one-year Certificate II maintenance traineeship. Training is delivered in conjunction with CQ University and North Metropolitan TAFE (Perth). To date, more than 450 people have enrolled. BHP has identified a package of AU$450 million that it could bring to bear to support METS sector growth in Australia, including new BHP contracts with Australian suppliers, working with its major technology providers to source more local products or work, and new investments in technology pilots and emerging businesses.

Regional skills development

“Providing apprenticeships, skills and training opportunities for

BHP is in working with the Federal Department of Education

Australians of all ages and all walks of life, particularly in our

Skills and Employment in relation to the Future of Work

regional communities, is a commitment we can make to help

Partnership program. This program will involve working with

Australia bounce back.

the tertiary sector to create opportunities for up to 1,000 people

“These investments will create a pipeline of future talent in highly skilled roles, working in an industry that delivers essential products to the world and generates export dollars that keep the Australian economy strong.” BHP employs approximately 45,000 people in Australia, and in the 2020 financial year contributed approximately AU$33.4

over the next five years in regional areas to receive skills and training across a range of industries to help support healthy, diverse local economies. The training is designed to support access to employment and employees small to medium businesses, particularly those outside the mining sector who may have felt the impacts of COVID-19 more greatly.

What is next for Australian cities and regions? The mining sector has been remarkably resilient in the Covid crisis and kept Australia’s economic head just above water. But the global economy is tanking in a way that can only be compared with major depressions. We must be part of the next global economy as well as propping up the present one. There have been five major economic collapses that have led

The cluster of three innovations is now accelerating globally

to a new wave of innovation being unleashed. The economist

and locally with the past six months showing coal use dropped

Schumpeter calls this ‘creative destruction’ as the old economy

by 22% and renewables grew by 20%, EV’s became the

shifts quite dramatically and rebuilds around the next cluster

only source of growth in the motor vehicle market and smart

of innovations.

city technologies are now being used in most new urban

Figure 1: Waves of Innovation after economic collapses.

developments. All the innovations depend on critical minerals and Australia is gearing up to be the world supplier and because they need high quality product they will increasingly be processed here, even to full value in batteries. Lithium Valley in WA is becoming a reality. Globally we can expect the wave of innovations to rapidly mainstream removing 80% of fossil fuels in a decade or so. But the last 20% is much harder. This involves gas and coal in heavy industry processes like cement and steel as well as mineral processing and it involves oil in fuelling planes, ships and

The three main innovations that fit this in 2020 are: 1. Renewable Energy, especially solar with Li-ion batteries. Together they are now cheaper than any other source of electricity, are growing globally at 26% per year, and are now adding 10 times as much additional electricity globally as coal. 2. Electromobility, applied to light vehicles like cars, buses, trackless trams, and micromobility (scooters, bikes, skateboards). These are now growing at 17% per year. 3. Smart City Technology, especially the sensors, machine learning, blockchain, IoT, which can integrate the other innovations into a system that can be used at any scale to

long-haul trucks. Using renewably based Hydrogen for industry and perhaps synthetic hydrocarbons will be needed for heavy vehicles. These will take a decade or more to demonstrate but Australia must get on the front foot and lead the world in producing these in places like the Pilbara with its sunshine, space and minerals. Covid can be feared personally but for our economy we need to embrace the new opportunities as we are best placed to show how to create the new economy. Author: Peter Newman AO Professor of Sustainability, Curtin University And Co-ordinating Lead Author for Transport in the IPCC

create the optimum infrastructure for settlements. OCTOBER – DECEMBER 2020 DIGGING & DRILLING MAGAZINE

Flight safety improves within mining sector Flight Safety Foundation’s Basic Aviation Risk Standard (BARS) Program is improving safety in Asia Pacific and across the globe, with a decrease in aviation accidents in the onshore resource sector since 2012. According to BARS Program managing director David Anderson,

“Due to the high turnover of personnel in the resource sector,

the reduced aviation accidents directly correlate to the growth

the most difficult part of transitioning to the BARS program

of the BARS Program and will remain integral to maintain a

was ensuring all staff were trained in the new standard.” Mr

downward trend in APAC.

Wheatley said. “Thankfully, BARS developed the Helicopter

“The Flight Safety Foundation developed the first Basic Aviation Risk Standard in collaboration with 12 Australian and American resource and mining companies to provide a more efficient means of monitoring, assessing and analysing safety risks associated with contracted aircraft operators,” Mr Anderson said. “Evidence shows that the number of contract aircraft accidents increases when activity in the mining sector surges.

External Load Operations for Ground Personnel training course to provide basic training for any personnel engaged in activities involving helicopter under-slung loads.” Newcrest uses the BARS program in a range of remote locations presenting unique aviation risks from high temperatures in Western Australia to frigid conditions in northern British Columbia. “We have found BARS easy to implement across all of our locations. Enabling critical control management of major aviation risks and providing our personnel with safety assurance,” Mr Wheatley said. “BARS save us the cost of undertaking numerous annual audits of aircraft operators, saving us between US$200-250,000 per annum.” Exemplifying its leadership in the aviation industry, the BARS Program has evolved amid border lockdowns to assess the safety of aircraft operators remotely. “Without the BARS Program, and now our remote monitoring audit solution, companies in a range of different sectors would need to wait months in the current climate for an auditor to be able to physically travel to conduct an assessment of an aircraft operator,” Mr Anderson said. “BARS is continuing to offer businesses and governments that rely on contract aircraft peace of mind by ensuring safety

“With production and sales of iron ore expected to increase significantly in Australia over the next six months, proper risk management will be even more important in maintaining this downward trend in contract aviation accidents.” As one of only three globally recognised standards, BARS Member Organisation’s (BMO) incident and audit data is aggregated to identify gaps in contract aviation risk management to improve safety standards for the entire industry. Newcrest Mining Limited is Australia’s leading gold mining company and has been a BMO since 2011. Newcrest Mining Senior Aviation Coordinator Mark Wheatley said the company, like many in the industry, had limited formal aviation risk management in place before joining BARS.

standards are maintained at a time when many organisations are facing uncertainty and widespread restrictions.” With the initial success of the remote monitoring audits and international travel unlikely to resume before July 2021, BARS has extended its remote auditing program to December 2020. “Now more than ever, BARS operate to ensure standards are met for contract aircraft enabling them to carry people home safely.”

G20 Energy Ministers strive for HE Yury Sentyurin, Secretary General of the Gas Exporting Countries Forum (GECF) participated in the G20 Energy Ministerial Meeting in September, 2020 and reaffirmed its commitment to greater international cooperation in ensuring the resilience of energy systems and affordable and secure energy for all. The two-day deliberations acknowledged the unprecedented

market stability and investments”. On this note, the GECF,

impact that the Covid-19 pandemic has had on energy markets

alongside the IEA, IEF, IRENA, OPEC, and other peers, was

and paved the ways for the sector’s recovery efforts. The

invited to further consider this matter in their respective work

Meeting assumed vital importance against the backdrop of a

programmes.

global pandemic and was devoted to the energy market stability amidst low oil and gas prices and lacklustre demand.

Gas Exporting Countries Forum (GECF)

In the context of circular carbon economy for cleaner and more sustainable energy systems, the Communiqué highlights the crucial role of the GECF and other relevant international organisations in promoting public and private investments,

The final Communiqué crystallised the resolve of the G20

innovative public as well as private financing, policy enablers,

countries to utilise the widest variety of technologies and fuels to

and cross-sector collaborations.

ensure a stable and uninterrupted supply of energy for economic growth. It is not a coincidence that, as per decision of the G20 Members, the GECF has become a part of the dialogue and was directly referred to in the final Communiqué.

These steps are largely in line with the previous G20 announcements, including the 2020 Statement of the G20 Extraordinary Energy Ministers Meeting, 2019 Communiqué of G20 Ministerial Meeting on Energy Transitions and Global

It noted that in order to enhance energy security, “the role of

Environment for Sustainable Growth in Japan and the 2018

open, flexible, transparent, competitive, stable and reliable

Communiqué in Argentina.

energy markets, as well as stable, predictable, necessary, fair, and non-discriminatory, regulatory frameworks in promoting

This ethos is also echoed by the GECF – a coalition of 20 of the major natural gas exporting countries – and reflected in its

sustainable development & market stability guiding documents at the highest political level of the Heads

The GECF has been participating in the G20 events for years

of State and Government, in particular in the 2019 Malabo

to deepen its cooperation with the platform. This year, it took

Declaration, which was the outcome of the 5th GECF Summit.

part in the first G20 Energy Sustainability Working Group

To raise the voice of natural gas industry, the GECF called on the group of 20 major industrialised and emerging economies, many of whom are consumers of the GECF commodity, to renew their faith in cooperation and multilateralism to bring

Meeting, under the Kingdom of Saudi Arabia’s Presidency of the G20, which has selected the unifying theme of “Realising Opportunities of the 21st Century for All”.

about prosperity for all.

About Gas Exporting Countries Forum

The Statement of the GECF, prepared within the framework of

Gas Exporting Countries Forum is an international

the G20 Energy Ministerial Meeting, stressed: “In challenging times, the GECF is determined to strengthen cooperation with G20 and underpin global energy security as reliable supplier of natural gas to meet the growing energy demand globally. The Forum fully supports G20 commitments towards clean and environmentally friendly energy sources, to promote economic development with a smaller carbon footprint. We are confident that the issues of both environmental protection and climate change should remain at the focus of joint efforts. The GECF supported the policy developments being undertaken by Energy Sustainability Working Group Meeting (ESWG) in 2020 under Saudi Arabia Presidency, on the circular carbon economy, which is a closed-loop system geared at establishing a balance of the carbon cycle. We see this framework as a primary initiative on reducing,

governmental organisation of 20 Member Countries which jointly control 72% of the proven gas reserves, 46% of its marketed production, 55% of pipeline, and 61% of LNG exports across the globe. It is headquartered in Doha, Qatar. Being a foremost energy association, officially established in 2008, the GECF provides granular, scientifically based insights into the state of natural gas based on the diverse variety of the instruments and deliverables such as the GECF Global Gas Model – now with elements of artificial intelligence and digital technologies, Global Gas Outlook 2050, Annual Short Term Gas Market Report, Monthly Gas Market Report, Special Envoys on Data and Statistics. GECF increasingly engages with UN agencies, the G20 Ministerial Meeting on Energy Transitions and Global Environment for Sustainable growth, ASEAN, EEC, OPEC, OAPEC, APPO, IEF, IEA, IRENA, OLADE, IGU, other peers, and regional entities, as well as maintains strategic

reusing and removing greenhouse gases. This initiative is an

multifaceted dialogue amongst natural gas producers

excellent example of technology exchange and international

and consumers.

cooperation, for the benefit of energy security and access for the whole global economy. The Forum joins a growing international consensus that the clean methane sourced of hydrogen based on CCUS technologies will play a significant role in the World’s transition to a sustainable energy future. The GECF also believes that natural gas will continue to contribute to G20’s clean cooking programme.” Among all the hydrocarbon resources in the world, GECF highlighted that, only natural gas is expected to increase its share in the global energy mix from 23% currently to 28% in 2050 due to its clean attributes, which are fundamental to achieving the UN Sustainable Development Goals as well as the Paris Agreement. Natural gas also boasts the potential to expand its access significantly over the coming decades due to its abundance and flexibility and is widely seen as the fuel to steward the transition to lower-emission energy systems.

For more information about the Gas Exporting Countries Forum visit: www.gecf.org

About G20 The Group of Twenty, or the G20, is the premier forum for international economic cooperation. The G20 brings together the leaders of both developed and developing countries from every continent. Collectively, G20 members represent around 80% of the world’s economic output, two-thirds of global population and three-quarters of international trade. Throughout the year, representatives from G20 countries gather to discuss financial and socioeconomic issues. For more information about the G20 including the Presidency Agenda and full programme of events visit: www.g20.org

OCTOBER – DECEMBER 2020 DIGGING & DRILLING MAGAZINE

Gina Rinehart’s Miralga Creek iron ore proposal recommended for environmental approval The Environmental Protection Authority (EPA) has recommended environmental approval for a new Pilbara-based iron ore mine, subject to conditions including managing impacts on the habitat of the northern quoll, ghost bat and Pilbara leaf-nosed bat.

Atlas Iron Pty Ltd propose to construct and operate the Miralga

interest including priority flora and fauna habitat, which the

Creek Direct Shipping Ore (DSO) Project over four to five years

EPA supports.

at three mining areas, situated about 100 kilometres south-east of Port Hedland.

The proposal involves the development of mine pits and associated infrastructure including processing facilities,

EPA Chair Dr Tom Hatton said the EPA had recommended

waste landforms and access roads. The site will include an

the proponent contribute to the Pilbara Environmental Offsets

accommodation camp and utilise some existing ancillary

Fund to counterbalance the impact of clearing 219.8 hectares

infrastructure from the nearby Abydos DSO Project.

of Chichester IBRA subregion vegetation, which is foraging and denning habitat for the northern quoll, ghost bat and Pilbara leaf-nosed bat. “The EPA has assessed the proposal and determined it should proceed, subject to conditions including mitigating impacts from noise, dust and vibration on nearby fauna habitat, and taking a staged approach to blasting,” Dr Hatton said. “Further, the proponent has designed the development envelope to avoid two vegetation types of conservation

During the assessment there were no registered Aboriginal sites located within the development envelope. The proponent has undergone consultation with the Traditional Owners and has committed to ongoing consultation and involvement. The Minister for Environment will make the final decision on the proposal. EPA Report 1689 is available at: https://www.epa.wa.gov.au/proposals/ miralga-creek-dso-project.

Image source: Atlas Iron

SACOME welcomes investment in new energy technologies The South Australian Chamber of Mines and Energy (SACOME) welcomes the Federal Government’s announcement of the $1.9 billion ‘Next Generation Energy Technologies Investment Package’ and is supportive of Carbon Capture Use and Storage (CCUS) Hubs and Hydrogen Export Hubs being based in South Australia. SACOME supports funding announcements for the Carbon

The development of CCUS and hydrogen hubs has significant

Capture Use and Storage (CCUS) Development Fund; and

potential to lower business costs and emissions, create new

establishment of a regional Hydrogen Export Hub via competitive

industries for the State, as well as positioning South Australia

tender process.

front and centre for the jobs of tomorrow.

The potential economic growth and employment opportunities

The South Australian resources sector is well-poised to play

through the development of a CCUS and hydrogen export

an important role in the development of CCUS and hydrogen

industry are significant, with South Australia being well

hubs and already employs 26,000 people directly and indirectly,

positioned to fast-track both initiatives.

delivers $6.4 billion in production, $5.3 billion in exports and

SACOME member company Santos’ Moomba CCUS project

$299 million in royalties to South Australians.

has the potential to be a large-scale carbon sink for power generators and other industries in eastern and southern Australia, with Santos eager to progress final investment decision on this 1.7 million tonne per annum carbon capture facility by the end of the year. The strategic development of hydrogen through the National Hydrogen Strategy has the potential to create significant

About SACOME The South Australian Chamber of Mines and Energy is the peak industry association representing companies with interests and connections to the South Australian resources and energy sector.

commercial opportunities for South Australia when combined with the State’s abundant renewable energy generation as a feedstock to hydrogen production. The commercialisation of hydrogen production creates further opportunities for manufacturing, including the production of ‘green steel’ in the Upper Spencer Gulf. SACOME recognises the Commonwealth and South Australian Government’s efforts in creating impetus for development of a new hydrogen industry, enabled by renewables and natural gas in conjunction with CCUS. Rebecca Knol, Chief Executive Officer said “The strength of the resources sector has underpinned the South Australian economy during the disruption of the coronavirus pandemic, providing much-needed job stability.

Rebecca Knol – Chief Executive Officer

OCTOBER – DECEMBER 2020 DIGGING & DRILLING MAGAZINE

FEATURE ARTICLE»

ASM produces key heavy rare earth dysprosium metal in Korea

Australian Strategic Materials (ASX: ASM) (ASM), through its partner Ziron Technology Corporation (Ziron Tech), has successfully produced high purity dysprosium (Dy) metal in its laboratory at the Ziron Tech facility. • A SM produces 0.76kg of heavy rare earth metal dysprosium (Dy)

ASM Managing Director, David Woodall said: “This is a significant

• Dysprosium assay – 99.6%

dysprosium metal. Our team has now successfully produced

• M etallisation process proven for the Dubbo Project’s key permanent magnet rare earth products (dysprosium, praseodymium and neodymium)

praseodymium and neodymium metals and alloys) which will

This work using the ASM metallisation process has confirmed ASM’s ability to produce the key permanent magnet metals (dysprosium, praseodymium and neodymium) and alloys that will be sourced from its Dubbo Project in central west NSW. Figure 1: FeDy Metal Alloy from the Ziron Tech Laboratory

result given the temperatures required for the production of the key permanent magnet rare earth products (dysprosium, be supplied from our Dubbo Project.” “Now that the protocol for the production of dysprosium metal has been completed, our team led by Professor Lee, will focus on the production the ferro-dysprosium alloy, which is key in the production of high-temperature NdFeB magnets. Our focus now is to produce zirconium metal by the end of September, Mr Woodall said. The ASM metallisation process uses significantly less energy and has less impact on the environment than existing industrystandard metallisation processes. This innovative process has been used to produce metals of the planned products from ASM’s Dubbo Project including zirconium, hafnium, and rare earths for permanent magnet alloys in the laboratory. Titanium and the key rare earth permanent magnet metals neodymium and praseodymium have been produced in the commercial pilot plant with dysprosium and zirconium scheduled for later this month. ASM and Ziron Tech continue to finalise the detailed documentation in relation to the acquisition of Ziron Tech with the transaction expected to be completed by the end of October 2020.

About Australian Strategic Materials – www.asm-au.com ASM is focused on producing specialty metals and oxides for advanced technologies and is the 100% owner of the Dubbo Project. Located in central-western NSW, ASM’s cornerstone Dubbo Project has a long-term resource of zirconium, rare earths, niobium and hafnium – a globally significant source of these critical materials for a diverse range of emerging and sustainable technologies. ASM, together with its partners, is advancing oxide separation and metallisation technologies to create a range of valueadded materials from the Dubbo Project. ASM’s pilot plant in South Korea has been completed with successful production of titanium and neodymium metal. ASM is progressing an optimisation study for the Dubbo Project inclusive of flotation that has potential to positively impact the capital and operating costs of the project. The metals feasibility study is planned to be completed by the end of 2020 with the optimisation study to be completed by the end of Q1 2021.

South32 Illawarra metallurgical coal wins Operation of the Year South32 is proud Illawarra Metallurgical Coal (IMC) has been named Mining Operation of the Year at the NSW Minerals Council’s 2020 NSW Mining Industry and Suppliers Awards. The award recognises achievements across IMC’s operations, with the business focusing its efforts on operational excellence, making meaningful contributions to local communities, and ensuring a long-term future.

About South32 South32 is a globally diversified mining and metals company. Our purpose is to make a difference by

“I am honoured that IMC has been recognised as Mining

developing natural resources, improving people’s lives

Operation of the Year in New South Wales,” said Jason

now and for generations to come. We are trusted by

Economidis, Vice President Operations at South32 Illawarra

our owners and partners to realise the potential of their

Metallurgical Coal.

resources.

“We’ve got a lot to be proud of at IMC, including a team consisting

We produce bauxite, alumina, aluminium, energy and

of some of the best in the industry. We are committed to working

metallurgical coal, manganese, nickel, silver, lead and

with the community and other stakeholders to ensure we remain

zinc at our operations in Australia, Southern Africa and

a sustainable operation for many years to come.”

South America. With a focus on growing our base metals

South32 has continued its focus on long-term sustainability and investing in its workforce. Since 2004, IMC has contributed more than AU$4.1 million to community projects through its

exposure, we also have two development options in North America and several partnerships with junior explorers around the world.

Community Partnership Programs and Community Trusts. IMC spends around AU$160 million a year with over 400 locally

Image Source: Illawarra Metallurgical Coal

based suppliers.

OCTOBER – DECEMBER 2020 DIGGING & DRILLING MAGAZINE

Shell to acquire environmental services company Select Carbon Shell Australia will acquire 100% of Select Carbon, a specialist company that partners with farmers, pastoralists and other landowners to develop carbon farming projects throughout Australia. This is Shell’s first acquisition globally for its Nature-Based

choice for Shell’s first acquisition globally for our Nature-Based

Solutions business, which invests in forests, grasslands,

Solutions business and to further scale Shell’s investment in

wetlands and other natural ecosystems around the world to

this area here in Australia.”

reduce emissions and capture more CO2 while benefiting biodiversity and local communities. It will contribute to Shell’s ambition to be a net-zero emissions energy business by 2050 or sooner, in step with society - Opens on Shell.com. This ambition also involves working with customers to reduce or offset the emissions generated when they use Shell products, such as through the use of carbon credits. There is no single solution to tackling climate change and Shell supports naturebased carbon credits as one addition to robust decarbonisation throughout the global economy.

“Select Carbon believes joining Shell will more thoroughly capture new opportunities in land management and carbon sequestration. Combined, we have the experience and resources for large-scale nature-based solutions that bring economic and community benefits to regional Australia. It is a great opportunity to work alongside land managers to achieve multiple outcomes, including resilient regional businesses and landscape health,” said Dean Revell, CEO of Select Carbon. “Our collective immediate actions, and those over the next few decades, will be critical to ensure liveable, productive and sustainable environments for generations to come.” Australia continues to be a priority market for Shell’s investment in new energies. The market offers a compelling combination of strong growth in renewables, adjacency of gas as a complementary energy source, and customer demand for low-carbon energy solutions. This acquisition complements Shell’s existing efforts in reducing the carbon intensity of our natural gas operations and investments in renewable and lower-carbon sources of energy in Australia. These include: the acquisition of Australian commercial and industrial energy retailer, ERM Power; the

Select Carbon has developed and manages a portfolio of over 70 projects covering about 9 million hectares across different ecosystems and agricultural uses, including in Australia’s diverse rangelands. The carbon credits** generated through Select Carbon’s projects are offered for sale through the Australian Government’s Emissions Reduction Fund and other markets, creating an additional revenue stream for farmers and landowners. “Select Carbon has a team of highly skilled professionals with strong technical expertise and an established national landowner network. Together with Shell’s global resources, this combination will accelerate the growth of carbon farming in Australia,” said Shell Australia chairman Tony Nunan. “The scale of Australia’s rangelands, ecological diversity and integrity of intact primary forests make this market a natural

acquisition of sonnen, a German company with operations in Adelaide that provides battery storage systems and solar panels for homes in Germany, Italy, USA and Australia; investing a 49% stake in Australian solar developer, ESCO Pacific; and building Shell’s first industrial-scale solar power farm in central Queensland. The transaction is expected to be completed before the end of the year and is subject to Australian regulatory approval.

OFFICE & WORKSHOP OFFICE & WORKSHOP 49 Candlewood Boulevard, Joondalup 6027 49 Boulevard, Joondalup 6027 Tel:Candlewood (08) 9300 3135 Fax: (08) 9300 3236 Tel: (08) 9300 3135 Fax: (08) 9300 3236 Email: mark@mechbro.com.au Email: mark@mechbro.com.au MechBro Australia has been set up to respond to the demand for Heavy Duty Diesel Mechanics the repair, servicing of MechBro Australiaand hasFitters been involved set up toinrespond to maintenance the demand and for Heavy Duty earthmoving, mining and transport as well as light vehicles. Diesel Mechanics and Fitters involvedequipment in the repair, maintenance and servicing of Our business is based in Perth and services regional areas, including the Pilbara. Our people are highly skilled earthmoving, mining andalso transport equipment as well as light vehicles.

and motivated to provide the highest level of service to companies throughout Western Australia. With a fleet of Our business is based in Perth and also services regional areas, including Our people are hire highly skilled mine specified and fully equipped service utilities, we are unique in that the we Pilbara. are not simply a labour company. and motivated to provide the highest level of service to companies throughout Western WithMechBro’s a fleet of Because with MechBro you don’t just get a capable individual, you get the strength of ourAustralia. entire team! mine and fully equipped utilities, weeconomic are unique in that not simply a labour hirejoining company. teamspecified of mechanics and fitters are service committed to the success of we ourare customers. And so, before us, Because with MechBro don’tthe justpassion, get a capable individual, get the of our entire team! MechBro’s must demonstrate theyyou possess skills and attitudeyou required tostrength satisfy our customers. Accordingly, we team of mechanics and fitters are committed to the economic success of our believe this set of values will help to ensure the mutual economic success of customers. all parties. 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, everyPEOPLE person on our team knows OUR that to keep Whether it beplant a civiloperating or miningmeans project, productivity. Weour work hard and use every person on team knows our heads! a collective, team that to keep As plant operatingour means of highly skilled productivity. We mechanics work hard diagnose, and use repair and As maintain a wide variety our heads! a collective, our team ofhighly plant and equipment, of skilled mechanicsdozers, diagnose, excavators, graders, scrapers, profilers, repair and maintain a wide variety dump bobcats, heavy haulage of planttrucks, and equipment, dozers, road transport, etc. scrapers, profilers, excavators, graders, dump trucks, bobcats, heavy haulage Our transport, team etc. has the experience, road qualifications and equipment to work on all aspects these machines including Our team ofhas the experience, engine rebuilds, and qualifications andhydraulics, equipmenttrack to work frame, electrics and air conditioning and on all aspects of these machines including on all brands, including, but not limited engine rebuilds, hydraulics, track and to; CAT, Hitachi, Komatsu, Terex, O&K, frame, electrics and air conditioning and Volvo, Bell, Vermeer, Cummins. on all brands, including, but not limited to; CAT, Hitachi, Komatsu, Terex, O&K, As a Bell, team of mechanics, Volvo, Vermeer, Cummins. fitters, servicemen and fabricators we keep machines going,ofas well as being involved As a team mechanics, fitters, in site mobilization where wewe establish servicemen and fabricators keep containerized complete with machines going,workshops as well as being involved domes and commission machinery ready in site mobilization where we establish for operation.workshops Upon project completion containerized complete with we demobilize workshops and ready plant domes and commission machinery and are oftenUpon the project last tocompletion leave site. for operation. 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. Ourable tilt tray Throughout a project we are to REFRIGERENT MechBro has the capability and TRADING can pickall upparts and ordering deliver parts and 20’ AUTHORISATION manage and delivery, authorisation to repair your air containersurgent up to 8.5T. including hot shots. Our tilt tray MechBro conditioning units. has the capability and can pick up and deliver parts and 20’ authorisation to repair your air WHERE WE’VE WORKED MACHINERYunits. AND VEHICLE HIRE containers up to 8.5T. conditioning During the last 18 months we’ve Mechbro can provide a variety of worked at many WORKED major mine sites machinery andAND vehicles to suit HIRE your WHERE WE’VE MACHINERY VEHICLE owned the by BHPB, FMG,we’ve Sandfire needs. MechBro currently haveof 6 mine During last 18RIO, months Mechbro can provide a variety Resources and more recently Onslow specified service vehiclestosupported worked at many major mine sites machinery and vehicles suit your Quarry.byOur people the by a tiltMechBro tray truck capablehave of loading owned BHPB, RIO,understand FMG, Sandfire needs. currently 6 mine rigorous requirements of working on and unloading sea containers and Resources and more recently Onslow specified service20’ vehicles supported these sites and act accordingly. moving itemstruck of plant up to Tonne. Quarry. Our people understand the by a tilt tray capable of8loading rigorous requirements of working on and unloading 20’ sea containers and SAFETY Having items established Pty Ltd these sitesFIRST and act accordingly. moving of plantMechBro up to 8 Tonne. Our aim is to conduct our business on May 9th 2011, with 2 mechanics we using systems have experienced rapid growth and SAFETY FIRSTand practices which will Having established MechBro Pty now Ltd ensure workforce and the have a great team of mechanics Our aimthat is toour conduct our business on May 9th 2011, with 2 mechanicsand we community are protected injury service men. In 2012 also acquired using systems and practicesfrom which will have experienced rapidwe growth and now and harm. and productivity a lighta vehicle workshop in Joondalup. ensure thatSafety our workforce and the go have great team of mechanics and hand in hand with our people Within men. the next 12 months will be community are protected from working injury service In 2012 we alsowe acquired as problem solvers to productivity get the job done. heavy duty workshop and harm. Safety and go aestablishing light vehiclea workshop in Joondalup. where we repairwe and store hand in hand with our people working Within thecan nextservice, 12 months will be WORKSHOP & ONSITE SERVICE larger equipment. as problem solvers to get the job done. establishing a heavy duty workshop We have the equipment and the where we can service, repair and store facilities to service your machinery WORKSHOP & ONSITE SERVICE larger equipment. andhave vehicles. We will also invest We the equipment and the in our business andyour tailor to your facilities to service machinery requirements. 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

For more info, contact Mark Nielsen Mobile: 0438005655

www.mechbro.com.au

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