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Isaac - region of opportunity THIS EDITION • NQ breaks into the iron ore game • Crunch time for Gladstone industry • CuDeco raring to go at Rocklands • Bumper year on the cards for coal
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NEWS
The Mining Advocate | January 2010
1
January 2010
3 The need for speed Local supply businesses hoping to secure work from major LNG projects in the pipeline for Gladstone will have to be “agile and nimble and ready to respond” according to an industry leader. Gladstone Economic and Industry Development Board chief executive Garry Scanlan believes 2010 is shaping up as a watershed year for the city, when it will learn which projects are moving forward and gain greater certainty on timeframes.
5 Cloncurry project builds steam
Above: The Mt Moss mine west of Townsville is on the threshold of a new export trade in iron ore. Story - Page 2 Photo: Stewart McLean
CuDeco is gearing up to bring its Rocklands copper mine online by mid-2011. The project’s engineering consultant for logistics and acquisition, John Green, has already been out shopping for mining fleet gathering an array of dump trucks, excavators and dozers.
Cover shot: Long-serving local mayor Cedric Marshall can vouch for the lifestyle benefits of Isaac region’s coal communities. Feature starts Page 24. Photo: Erica Smith
9 King coal on the rise A senior resource analyst is tipping a doubling in spot prices for coking coal this year, saying Chinese buyers cannot get their hands on enough of the product at the moment.
FEATURES
North Queensland Bulk Ports Corporation chief executive officer Brad Fish has also noted an increasingly bullish approach in the market. Meanwhile Queensland Resources Council chief executive Michael Roche is speaking of “cautious optimism” for the year ahead.
4 Safety 6 Mount Isa Regional Capacity 10 Mackay Regional Capacity 12 Townsville Regional Capacity 14 Coal and Gas Update
29 Hands-on approach The new Queensland president of the CFMEU’s mining and energy division, Steve Smyth, has vowed to spend more time out at the coalface to keep in touch with the workforce. The former Collinsville boy, now living in Mackay, has taken over the role from retiring president Greg Betts after focusing on safety issues for the union since 2000 as a mine inspector.
News in brief across the coal and gas industries.
16 Industry Update A comprehensive wrap of exploration and operations in Queensland and the Northern Territory.
33 Support by the truckload
18 Between Shifts 23 Emissions 24 Isaac Region 28 Building Mining Communities 35 Port of Townsville
The family-run Hornery Trading Group is raising cancer awareness and significant funds thanks to a bright pink Kenworth truck.The Bowen Basin business donates $20 to the Royal Brisbane Hospital Foundation for every hour that mining firms and other operations hire the water truck, which has undergone custom detailing including the addition of Lymphoma Australia feather symbols.
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Advertising booking deadline March edition: February 24 All material is copyright and cannot be reproduced in part or in full by any means without written permission of the managing editor. The views expressed in this publication are not necessarily those of the publisher.
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NEWS
January 2010 |
Iron ore ventures forge ahead Northern mines are poised to begin exporting magnetite for steel manufacturing within the next two years, writes Belinda Humphries. Queensland is breaking into the iron ore business with a bang as Ernest Henry Mining (EHM) gears up to construct a magnetite extraction plant and the Mt Moss mine draws closer to export. Xstrata Copper plans to produce about 1.2 million tonnes of magnetite per annum for export to Asian steel makers from the EHM site near Cloncurry from 2011. Construction of a magnetite processing plant is due to start in the first half of this year under a $589 million mine life extension project that will also see the copper operation transformed into an underground mine. But Mt Moss mine manager Mike Barr believes the Curtain Bros-owned site, 105km westnorth-west of Townsville, will beat EHM as the first Queensland operation to export iron ore. The Mt Moss Mining operation – based on Queensland’s largest
known magnetite deposit – is producing magnetite for coal washing as well as oxide lump ore used in steel manufacturing. “We’re in the last stages of talks with the Port of Townsville to be able to lay down that product at the port and load the ships. That’s going through final environmental approvals,” Mr Barr said. “We have 75,000 tonnes of export oxide lump product stockpiled on site currently and we have potential buyers.” The site also had just under one million tonnes of ore stockpiled, enough to feed its cobbing plant for 12 months, he said. Mr Barr believed exports would begin in the next six months and said the operation had current capacity to produce 400-450,000 tonnes of export oxide lump product annually. Mt Moss Mining has also been producing magnetite for coal washing since December 2008
Man fined $25,000 for mine recruitment scam A far north Queensland man has been fined for the second time in two years for deceiving jobseekers hopeful of starting a mining career. Roger Temple Bell, of Mount Molloy near Cairns, was ordered to pay $25,000 after pleading guilty to 12 offences in the Cairns Magistrate Court for misleading conduct in relation to employment. Fair Trading Minister Peter Lawlor said Bell’s conviction under the Fair Trading Act related to bogus job offers made through his Mine Jobs Australia website. “This person has faced court previously for a similar scam and it’s hoped this new bigger fine will stop him in his tracks once and for all,” he said. “The scam is cruel because it not only exploits people’s hopes of a break in the mining industry but it also costs them hard-earned cash.” The court heard that Bell’s seven victims forked
out money for airfares, accommodation, “Mine Jobs Passports” and training literature, with some even quitting their existing jobs to pursue the mine positions he touted. Mr Lawlor said the scam unravelled when applicants were asked to fly to the Mackay and Townsville airports in January 2009 to be taken by bus to a Collinsville mine. “The buses that were meant to be waiting were not there and it was soon obvious they’d been tricked,” he said. Mr Lawlor said the victims were awarded a total of $3308 in compensation and Bell was also ordered to pay court costs. As previously reported in The Mining Advocate, Bell was fined $3000 in June 2008 for conducting a similar scam. He has appealed the severity of the latest penalty, with the matter set down for mention in the Cairns District Court on January 22.
Mt Moss Mine manager Mike Barr in front of the North Queensland site’s new processing circuit. Photo: Stewart McLean
and trucked about 3500 tonnes to central Queensland coalfields customers in 2009. Mr Barr said the operation commissioned an upgraded magnetite plant in December, taking its capacity from two tonnes of coal-wash magnetite a day to 100 tonnes. It would be capable of producing 60-80,000 tonnes of magnetite powder in 2010, he said. The EHM ore body is an iron ore-copper-gold (IOCG) deposit, with the site presently recovering copper and gold through
traditional grinding and flotation methods. Magnetite is liberated during this process and the new extraction plant will allow it to be recovered using a combination of cyclones and magnetic separators. EHM will also be able to reprocess tailings to extract magnetite. Asciano has won a 10-year contract to transport magnetite from the EHM operation to Townsville by rail. EHM’s neighbouring tenement holder Exco Resources is also considering extracting magnetite
The Mining Advocate
as a by-product of coppergold processing at its proposed Cloncurry Copper Project, which is hoped to move into production in early 2012. Exco general manager corporate development Geoff Laing said there was a “reasonably high probability” that the project would include magnetite. “The recovery of it is reasonably simple – the biggest challenge is getting it to market,” he said. Barrick Gold also previously considered producing magnetite as a by-product of its Osborne copper-gold operation. East West Line Parks founder and managing director Shane Condon described the EHM announcement as one of the most significant developments in Queensland’s mining history. His company is behind Project Iron Boomerang – a proposal to establish first-stage iron and steel smelting parks in the Pilbara region of Western Australia and at Abbot Point, near Bowen in North Queensland, to be linked by a new 3300km east-west continental heavy-gauge rail line. With full payloads heading each way, Mr Condon said such a line would create significant operational efficiencies for north-west Queensland mines producing magnetite or rock phosphate. He believed there was potential for a 50-million-tonnesa-year magnetite industry in north-west Queensland by 2020 after completion of the line.
EHM to push on underground After almost three years of feasibility studies, Ernest Henry Mining (EHM) has received the green light to develop a major underground operation that will extend the life of the Cloncurry copper mine to at least 2024. Owner Xstrata Copper recently announced corporate approvals for a $589 million investment to transform the open-pit mining operations to underground and install a magnetite extraction circuit within the concentrator infrastructure at EHM. EHM general manager Mike Westerman said the team was looking forward to this exciting new phase of the mine’s life. “The decision to transition to underground mining and
magnetite processing is a major milestone for Ernest Henry Mining,” he said. “The long-term future of the site is now secure and this is great news for our workforce and the Cloncurry community.” Mr Westerman said construction on both projects would begin within six months, moving forward to production in 2011. The underground mine should hit full-scale operation from early 2013, with an expected capacity of 6 million tonnes of ore per annum. A range of new contractors and professionals will be working on site during the construction phase including diamond drillers, raise drillers, shaft sinkers, highvoltage electricians, headframe
Richard Clark charges the face in the underground decline at EHM. Photo: Through the Looking Glass Studio
installers, concreters and various mechanical and civil engineers. Underground development work began in early 2008 and the EHM decline has progressed more than 2800m, now reaching 660m vertically below the surface or 175m below the floor of the current pit. The decline and underground levels will be further developed in 2010 along with additional vent rises, ore passes and escapeways. The initial shaft hole will be prepared for the stripping and lining process to take place in 2011. Other major works include the installation of pit dewatering sumps and airconditioning units. Xstrata Copper North Queensland chief operating officer Steve de Kruijff said the life of mine extension project, which is dependent on final Queensland Government environmental approvals, would secure 400 long-term jobs at the Ernest Henry site. It will enable EHM to achieve annual production levels of approximately 50,000 tonnes of copper and 70,000 ounces of gold in concentrates from 2012 when processing from open-pit mining operations ceases. The feasibilty work leading up to Xstrata’s investment decision resulted in a revised ore reserve estimate of 72 million tonnes - a 600 per cent increase on previously published underground reserves.
NEWS
The Mining Advocate | January 2010
3
Watershed year for industry Firms seeking work from proposed Gladstone LNG investment should position themselves to react quickly, a local development chief says. Supply businesses have been urged to keep abreast of progress on a raft of major Gladstone projects approaching crucial financial decisions in 2010. Gladstone Economic and Industry Development Board chief executive Garry Scanlan said the region was entering a watershed year for industry. “Several LNG projects are looking at a final investment decision in 2010 and the steel plant,” he said. “This is when we will find out who’s moving forward and what their timeframes are. Once they have a final investment decision everything springs from that.” He warned businesses hoping to secure work to keep on top of such developments “because when things happen they will happen very quickly”. Mr Scanlan, formerly the Darwin Port Corporation general manager of port development, said this had been his experience with the ConocoPhillips Darwin LNG plant. “Local organisations need to be agile and nimble and ready to
respond and react,” he said. He said he would advise any company interested in securing such work to register and be pro-active with the Industry Capability Network as well as monitoring proponents’ websites. Australia Pacific LNG recently announced that it had signed two key upstream design, engineering and construction contracts for its project, progressing towards a final investment decision at the end of 2010. Initial environmental impact statements have been completed for the Santos-Petronas GLNG project and QCG’s Queensland Curtis LNG project, while Shell CSG signed an agreement in December with the Gladstone Ports Corporation to acquire land on Curtis Island for the Shell Australia LNG project. Mr Scanlan said those four major Curtis Island proposals were all targeting a 2014 start date to meet a projected shortfall in LNG demand in the AsiaPacific region. Meanwhile site works have already begun for a smaller plant
Garry Scanlan
Karen Porter
Gladstone Economic and Industry Development Board chief executive
Gladstone Engineering Alliance chief executive officer
at Fisherman’s Landing, with project proponent Liquefied Natural Gas Limited planning to make a final investment decision by March. Mr Scanlan said also Boulder was expected to submit an environmental impact statement early this year for its proposed $2.2 billion Gladstone steel plant, with construction set to begin as early as 2011. And the State Government in December gave the green light for the development of the new $4 billion Wiggins Island Coal Terminal, saying construction could begin as soon as mid-2010.
Gladstone Engineering Alliance (GEA) chief executive officer Karen Porter said there had been a significant change since the global financial crisis in how major industry interacted with suppliers, trending toward short-term competitive supply as opposed to long-term supply based relationships. In response to these changes and the upcoming opportunities presented by the proposed LNG and steel projects in Gladstone, the GEA had developed a tender readiness program with other key organisations including LNG proponents, she said.
“The program is made up of strategic information and development sessions that will provide realistic information on opportunities, build awareness and capability, assist business to identify knowledge and capability gaps, and develop and implement ways of building capability,” she said. “The result of the program will be that local suppliers will be better positioned to meet the demands of the upcoming projects.” Ms Porter said local suppliers were understandably wary of making major capital investment to gear up for new projects given past experiences with such development being delayed or falling through. “Businesses are maintaining a cautious watching brief while taking every opportunity to build capability in anticipation of favourable financial investment decisions mid-year,” she said. Meanwhile Elders Real Estate sales consultant Graeme Watts said he had noted a lot of interest in residential property investment in Gladstone since October last year. He could see that increasing along with further commitments from major project proponents.
4
SAFETY
January 2010 |
The Mining Advocate
Cairns quarry lifts the bar Sites across Queensland are gearing up for a law change sparked by the over-representation of smaller operations in mining fatality figures. Nordev Contractors took their cues from the large mining companies they often service when faced with the challenge of introducing a safety and health management system for Maitland Rd quarry outside Cairns. The five-person operation now adheres to protocols including a pre-start checklist for equipment and fit-for-work standards for employees. A consultant engineering firm makes monthly mechanical and brake checks on vehicles and an independent electrical inspector completes regular electrical safety checks on all equipment. Employees also face regular competency testing on mobile fleet and fixed plant to ensure they have full and fresh training on all equipment, according to Nordev Contractors managing director and owner Greg Rains. “Now there is a keen awareness of the working environment for operators and evaluation of unsafe operating procedures,” Mr Rains said.
“We’ve incorporated a lot of documentation - more efficient documentation - also using an external consultant.” The improvements the operation has made throughout the past year were recognised when Maitland Rd quarry was recently named among the winners of the inaugural Small Mines Safety and Health Awards. Other award recipients included Bedrock Quarry (Proserpine), Walkerston Quarry (Mackay), Hill of Stone and Maidenwell Mine (both in south-east Queensland). The Queensland Mines Safety Inspectorate has been working with small operations in advance of a planned change in legislation from July 1 this year. The Mining and Quarrying Safety and Health Act as it stands requires mines of more than 10 employees to develop and implement a structured safety and health management system (SHMS). Queensland Commissioner for
Nordev Contractors managing director Greg Rains congratulates senior site executive Jason Goldsworthy at the Cairns quarry. Photo: Romy Siegmann
Mine Safety and Health, Stewart Bell, said the impending law change meant smaller operations would also be required to have an SHMS in place. “To make it less onerous for small operators, we have developed a system to put an SHMS template into their operation and give them a hand to get it going,” he said.
“We are starting to see results.” The change affects about 220 mines and quarries throughout Queensland. Mr Bell said the move was sparked by the overrepresentation of smaller operations in terms of workplace fatalities. Such sites employ about 6 per cent of Queensland’s metalliferous mining workforce,
but have produced 48 per cent of the fatalities in that sector in the past decade. Mr Rains said the inspectorate had been proactive in providing guidelines and helping the Maitland Rd operation develop processes in line with the campaign to lift safety management standards in small mines and quarries. However, the company was also able to draw on its experience as contractors for operations such as the Barrick Osborne mine and Xstrata’s Handlebar Hill site when it came to implementing safety protocols. “This award is basically recognition of our SSE (senior site executive Jason Goldsworthy) for the quarry in adopting a new safety management plan, which we developed using the bigger mining houses’ protocols and we’ve been strongly incorporating that in the operation at Maitland Rd,” Mr Rains said. “Nordev has been going just on 20 years now and we pride ourselves on our safety and health record. “We’re willing to meet the new standards imposed by the mines department.”
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NEWS
The Mining Advocate | January 2010
5
Rocklands gets rolling
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Preparations are under way for an expected 2010 start in construction at a major Cloncurry copper project. CuDeco has purchased its heavy equipment fleet and is working on detailed mine design and a reserve statement in a drive to bring the Rocklands copper project into production by mid-2011. CuDeco engineering consultant for logistics and acquisition John Green said the company aimed to start construction later this year to meet that production goal at the Cloncurry site. “Before June there will be a series of calls for major tenders for construction and mining and a whole raft of different projects,” he said. A much-anticipated formal JORCcompliant resource statement for the project is expected to be released in coming months. Mr Green, who has been working in the Cloncurry area since 1993, simply describes the deposit as “bigger than anything found here in the past 20 years”. Well known in north-western mining communities for his role as founder of the annual Battle of the Mines charity rugby league tournament, Mr Green joined the CuDeco team about six months ago. He was previously Leighton Contractors’ Queensland project development manager and has also held senior positions with Roche Mining and Roche Process Engineering Services. “Opportunities like this don’t come along often, where you can be involved in a large project with an unlimited life on your own town’s doorstep,” Mr Green said. “To be part of this team is exciting and, honestly, fantastic. It’s a once in a lifetime opportunity.” The items checked off his shopping list for Rocklands to date have included eight 80-tonne dump trucks, six 50-tonne dump trucks, two water carts, seven large excavators (ranging from 100-tonne to 190-tonne models) and three dozers. With money in the bank, 200km of
drilling completed and about 99 per cent of its initial mining fleet purchased, there was no doubt CuDeco was raring to go on Rocklands, Mr Green said. Construction for the multi-pit operation should generate about 300 jobs. Mr Green said a further 200 permanent jobs may be created in the initial mine operations, on top of the 120 or so people that CuDeco already employs in the Cloncurry area. “That’s for the first seven years - after that, I would envisage it would ramp up to be a very large operation,” Mr Green said. While the construction work is expected to include a fly in-fly out component, Mr Green said the long-term workforce for the Rocklands project would be based in Cloncurry. “CuDeco is putting a lot of money into infrastructure in Cloncurry,” he said. “The company will be helping Cloncurry expand to cope with the influx of employees.” CuDeco has drilled extensively on its tenements to prove up what it describes as a world-class copper, cobalt and gold resource, including the high-grade Las Minerale zone discovered in 2006. There were 12 drill rigs on site in December, however the company has had up to 16 operating at Rocklands during the past year. “We’re having trouble working out where to put the (concentration) plant and workshop because we keep hitting more ore bodies,” Mr Green said. “There are targets there that we haven’t even put drills in yet and the anomalies could possibly be bigger than the initial resource that we’ve been drilling for the past four years.” While the company had been criticised over the time taken to release its third resource update for the project, Mr Green said its access to drilling rigs had been very limited until last year.
First phosphate mined at Wonarah heads overseas Minemakers plans to launch production at its Wonarah phosphate project by mid-year after completing a trial mining and bulk sampling program in December. The company said more than 2000 tonnes of high-grade material recently crushed in Darwin was due to be shipped during January to the company’s first potential customers in New Zealand and India. This was understood to be the Northern Territory’s first ever export of rock phosphate and was the first from a new Australian phosphate mine for many years, Minemakers managing director Andrew Drummond said. “It’s export from trial mining rather than the main mine – but it’s a great start,” he said. Minemakers was now putting mining and haulage contracts for the planned $140 million phosphate operation out to tender, Mr Drummond said. It hoped to have all necessary permits in place by April, ready to start mining mid-year. “We aim to be able to produce about one million tonnes in the first year, subject to the market,” Mr Drummond said. Meanwhile, Global Port Solutions has successfully negotiated an indigenous land use agreement for its planned bulk handling facility on Phillip Creek pastoral lease, 17km north-west of Tennant Creek, which would serve the Minemakers operation and other mineral projects in the area. The company expects to have Stage 1 of the $50 million transport hub ready for operation later this year if the price of commodities, particularly phosphate, proves favourable.
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Road cops oversized overflow Concerns about the impact of increased traffic on the Flinders-Barkly highway are reflected in the findings of a recent transport study. The Mount Isa-Townsville highway link is still shouldering an extra freight burden as a result of rail failures during the floods of early 2009, according to consultants studying the crucial mine transport corridor. Supply chain economics experts AMSTEC Design along with Sd+D (Strategic design and Development) expect to deliver their final report from the $120,000 freight corridor study by mid-February. Regional development group MITEZ (Mount Isa to Townsville Economic Development Zone) commissioned the report amid concerns over the leakage of traditional rail freight to the road network and the impact of that extra traffic. AMSTEC director Adrian Sammons said inquiries with key interest groups found the popular opinion was that road freight traffic had increased on the Flinders and Barkly highways between Townsville and Mount Isa. “This is supported due to the
immediacy of the flooding and wash-out of the rail line and the fact that rail had to undertake a substantive rebuilding process,” Mr Sammons said. “There was a period of time of no rail and the mining companies and those processing concentrates still had to produce to keep their operations running, so inputs and outputs were switched to the only mode available - and that was road.” While there had been a slow return of that freight to rail over the past year, Mr Sammons said some of the overflow traffic remained. “That is now combining with an improvement in the economic cycle that means there are more spot export sales of product, so there’s a doubling up effect of the output moving on to road as well,” he said. Incitec Pivot Limited confirmed that it was among the companies whose product had drifted to the highway, telling The Mining Advocate it had transported fertiliser by road from July to December 2009.
Energy campaign A working group of the Mount Isa to Townsville Economic Development Zone (MITEZ) is laying the groundwork for a submission to the Federal Government to support a raft of renewable energy projects proposed for the region. MITEZ executive officer Glen Graham said the group was keen to highlight the necessity of building an AC transmission line between Townsville and Mount Isa to “plug these projects into if they are to happen”. “It was agreed that more work needed to be done to present the benefits of these renewable energy projects in the MITEZ region and that we would need
to conduct a study to determine how much that was likely to assist the Federal Government in reaching its 20 per cent renewable energy target by 2020,” Mr Graham said. He said the study would also identify the AC line’s potential to increase mining development, providing increased royalties and other taxation revenue for the State and Federal governments. “The study is expected to provide valuable information that would influence the decision on the best option for the future energy supply for the North West Minerals Province,” he said.
The Mount Isa-Townsville highway – “not necessarily a state-of-the-art transport corridor”.
Mr Sammons said the consultants had observed a volume of freight on the Mount Isa-Townsville road corridor that they would consider better suited to rail. The roadway, which was single lane either way, did not resemble a major industrial highway despite having been designated as an AusLink corridor and identified as a road freight network of significance by the Federal Government, he said. MITEZ asked the consultants to look into freight volumes, commodity types, their origin
and destination and the reason for using road transport on the Flinders-Barkly Highway and intersecting arterial roads. They have conducted more than 50 face-to-face consultations with mining sector, cattle industry and council representatives as well as stakeholders from transport organisations, terminals and other facilities. Mr Sammons said they had also gathered data from the Queensland Department of Transport and Main Roads, past studies and the Port of Townsville.
He said the group would be making a recommendation to MITEZ to conduct a second phase of study incorporating rail capacity issues. MITEZ executive officer Glen Graham said the group wanted to ensure the region had practical, economical and sustainable means of moving freight. “The Flinders Highway is a highway, but not necessarily a state-of-the-art transport corridor,” he said. “There are sections of road that are already deteriorating and there are sections of road that will require urgent upgrade. “More traffic and weight on it is likely to impact on that, which in turn can affect the ability of the road network to act as a transport corridor.” Queensland Transport Minister Rachel Nolan recently committed $102 million to improve efficiency on the Townsville-Mount Isa rail line and increase capacity to handle future demand. State Member for Mount Isa Betty Kiernan said the upgrade program was a result of the Mount Isa System Rail Infrastructure Master Plan released in 2009.
Sunday trading case continues
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A hearing to determine an application for extended trading hours for Mount Isa is scheduled to resume in Brisbane in late January, when Mount Isa Chamber of Commerce president Brett Peterson is due to appear. This follows evidence presented when the Queensland Industrial Relations Commission tribunal sat in Mount Isa in December. National Retail Association executive director Gary Black said that group, which was behind the application to allow major retailers to open in Mount Isa on Sundays, expected a decision in the first quarter of this year. Meanwhile Sunday trading is due to start in Rockhampton on January 31 after the commission recently approved a National Retail Association application for extended hours in that city.
SunWater is expected to turn on the taps in March for Cloncurry’s new water supply, after finishing the last section of a 38km pipeline in late 2009. Cloncurry Shire Mayor Andrew Daniels said the $42.5m project ensured Cloncurry would never have to worry about drought again.. “The water security the pipeline provides gives the region the confidence and certainty it needs to attract and support future industrial and population growth,” he said. With the capacity to deliver up to 900 megalitres per year, the pipeline will deliver water to Cloncurry from Lake Julius, via connection to SunWater’s 110km North West Queensland Water Pipeline and Julius Dam.
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The Mining Advocate | January 2010
9
Coal outlook strong for 2010 Insiders are noting firm signs of confidence and growing overseas demand as the market rebounds from the global financial crisis. Spot prices for coking coal could easily double in 2010 and were likely to match or surpass the highs of 2008, according to industry anaylst Gavin Wendt. And he believed there was also a possibility of contract prices returning to those record levels this year. The founding director of the new resource report business Mine Life - formerly a senior resource analyst with Fat Prophets - described the outlook for coal as absolutely outstanding on the demand side, although he noted that constraints continued on the supply side in terms of transport infrastructure on Australia’s eastern seaboard. “There is no sign of coal demand dropping off,” Mr Wendt said. “The Chinese can’t get their hands on enough product at the moment, as with iron ore.” Mr Wendt said he did not believe there would be enough
metallurgical coal supply at contract price and noted that spot prices were playing an increasingly important part in the coal market, as was the case with iron ore. “Current spot prices are about $US115 a tonne, but you can’t secure any product at that price - you have to pay $US130 or $US140 a tonne to secure product,” he said. In 2008 the metallurgical coal contract price reached around $US300 per tonne, while the thermal coal contract price hit $US125 per tonne. Mr Wendt described the $US85-a-tonne price that Australian-based Xstrata Coal has reportedly settled with major buyer Tokyo Electric Power for thermal coal in 2010 as excellent, but said he expected to see spot prices soar above that benchmark to around $US100-plus. North Queensland Bulk Ports Corporation (NQBPC) chief
Gavin Wendt Mine Life senior resource analyst
executive officer Brad Fish agreed there was a strengthening in the market going into 2010, although he said it was not yet as strong as 18 months ago. “We were seeing a much more bullish approach in the last couple of months of 2009,” Mr Fish said “There seems to be a lot more confidence out there in the market at the present time.” He said the best indicator in the port sector of coal industry confidence was the increased level of interest in capacity from mining companies. “They are the companies making large investments in new mines and expanding mines,” Mr Fish said.
“Our tell-tale is their willingness to contract port capacity. That’s showing and that’s a long-term trend. “We are looking at contracts of 10 to 15 years.” NQBPC operates the coal export ports of Abbot Point near Bowen and Hay Point south of Mackay, encompassing both the Dalrymple Bay Coal Terminal and the BMA-operated Hay Point Coal Terminal. Mr Fish expected 2009/10 to prove a record year for coal exports across the two ports and believed tonnages would continue to improve in 2010/11. Queensland Resources Council chief executive Michael Roche said the extent to which the state’s traditional coal buyers such as Japan rebounded from the global recession would have a major bearing on the outlook for Queensland coal in 2010. He said China’s surge into the spot market for coking coal in 2009 was a welcome development and forecasts of demand from India increasing by up to 200 million tonnes per annum were good reason for cautious optimism about the year ahead.
“The economies of China and India continue to record very strong growth and Japan and other traditional Asian markets are showing good signs of recovery,” Mr Roche said. “That is a strong pointer to exports in 2010 outstripping 2009 levels. “But having said that, there are many challenges ahead for the industry as it prepares for what could shape as another ‘supercycle’ of minerals and energy demand growth.” Mr Roche said there was ongoing concern over the underperformance of the rail system and industry needed to convince the Queensland Government that it had made a bad decision in seeking to float QR’s coal rail services as a vertically integrated entity. “Add to that the ongoing uncertainty around an emissions trading scheme, playing catch-up in improving cumbersome project approval processes, a looming skills shortage, continuing risks from global economic developments on market demand and a bloated Australian dollar and you can understand use of the term cautious optimism,” he said.
Shift in scenery for Wesfarmers Curragh A landscaping project of grand proportions is nearing completion at the Wesfarmers Curragh mine, west of Rockhampton. Contractors have excavated 16 million cubic metres of earth and replanted a 170ha tract with grasses and trees as part of a creek diversion scheme that will allow access to a further 47 million tonnes of run-of-mine coal. Wesfarmers Curragh executive general manager Rod Bridges said the company had issued a certificate of practical completion for the $130 million project to principal contractor Downer EDI Mining in December. It planned to close off the original creek route in mid-January and begin pre-strip work on the new mining area around May 2010, he said.
“The Blackwater Creek in its original alignment divided the Curragh and Curragh East pits, so what we’ve managed to do is put a completely new Blackwater Creek alignment along the eastern boundary of our mining lease,” Mr Bridges said. “That means we can join the pits and mine the coal under the old creek.” Mr Bridges said the project was finishing about 12 months ahead of schedule due to a successful civil works phase and a good strike rate with the seedimpregnated mulch applied to areas requiring revegetation. Blackwater Creek carries only a small artificial flow, comprised of Blackwater sewage treatment system discharge, unless the area
extensive planning and a considerable amount of work to maintain biodiversity. One of the biggest hurdles in the diversion project had been to re-establish vegetation along the new creek alignment, he said. Gladstone-based company
Rod Bridges Wesfarmers Curragh executive general manager
receives significant rainfall. Mr Bridges said shifting the creek channel had required a raft of government approvals,
A section of the new creek alignment with earthworks and rehabilitation completed.
Lanyonscapes was responsible for much of the revegetation work, including installing 100ha of jute mesh on the creek batters. Owner Simon Lanyon said inquiries with suppliers indicated this was the largest such mesh application in the southern hemisphere.
Mine operators in bullish mood The Wesfarmers Curragh operation enters 2010 with a “bullish” outlook and a $296 million expansion project inked into the business diary. The expansion will see the Bowen Basin operation lift its metallurgical coal output from 6.5–7 million tonnes per annum to 8–8.5 mtpa from late 2011, subject to market conditions. It will include the construction of a new stand-alone coal handling and preparation plant. Wesfarmers Curragh executive general manager Rod Bridges said construction was set to begin in April and should generate about 250 jobs, while the long-term increase in operational positions would be about 40 or 50. The Wesfarmers board’s recent announcement on the planned investment at Curragh came after the operation achieved a 12 per cent export sales increase last financial year against a backdrop of plummeting global pig iron production, a feat that saw it win
the minerals and energy category of the 47th Australian Export Awards. Mr Bridges described the operation’s position entering the new year as extremely positive. “The (Wesfarmers) management team and the team here at Curragh are very bullish regarding the long-term predictions for metallurgical coal and mining operations in this area,” he said “We’re very enthusiastic and very pleased to have the support of Wesfarmers.” The expansion plan is underpinned by an agreement with Stanwell Corporation which gives the mine access to an additional 46 million tonnes of reserves held by Stanwell in the Curragh North area. Wesfarmers Resources managing director Stewart Butel said the project would ensure the company could take advantage of the forecast increase in seaborne metallurgical coal demand.
10
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The lowdown on coal clearing A Mackay business is striving to get the word out on the capabilities of its newly patented mini material handler. An innovative pair of friends is hoping to make increased inroads into the mining industry with a radio-controlled machine invented to remove coal from underneath conveyor belts. CNS Services Mackay codirector Keith Carmody believes there is a huge potential market for the device, patented as the “mini material handler”. The mini material handler evolved from a miniature machine Mr Carmody built some years ago to cart and level gravel under lowset houses. The diesel fitter said he had been planning to turn the machine into a ride-on toy dozer for children when his cane farmer friend David Shepherd, who was working at a coal port at the time, urged him to instead attempt building a device to clear debris from under low-clearance conveyors. The build-up of coal under conveyor belts created a fire risk and hindered maintenance work on rollers and other components, Mr Carmody said. The prototype the two men created was in use for six months
at the Dalrymple Bay Coal Terminal in 2008. The pair has since produced a series II version, which Mr Carmody said was built to comply with the safety requirements of the major Bowen Basin coal companies. “We received a patent two weeks before Christmas for Australia and the ones outside Australia are going through now,” he said. The machine was in use at the Newlands coal preparation and handling plant in January. Mr Carmody said the mini material handler had been designed and built to ensure safety around conveyor belts and personnel. The radio-controlled machine cut from one side of the belt to the other in one motion, pushing material out behind it, rather than moving rapidly back and forwards, he said. “The machine also pushes down while cutting and does not lift like a loader while filling,” Mr Carmody said. “All material is moved through the centre of the main frame, which is separate to the track frame.”
Mr Carmody said he and Mr Shepherd had also designed and built two-wheel-drive tipper utes to move coal from conveyor bunds to reject heaps. “The reason for these utes is that stacker reclaimers have only 1.9m clearances,” he said. Many four-wheel-drive vehicles were too tall to fit underneath, especially as many sites required them to be fitted with roll-bars, he said. While CNS Services Mackay originally envisaged producing the mini material handlers themselves and hiring them out, Mr Carmody said they had realised the company was not big enough for such an approach. Mr Carmody said also they had found it was very difficult to break into the mining industry.
The radio-controlled mini material handler invented in the Mackay district.
They were still at the stage of proving their machine’s capability and getting the word out to potential clients, he said. “We’d love it to be
manufactured and to be supplying them all over the place,” Mr Carmody said. “But whether that happens or not is another matter.”
Moranbah leads the way with new course Aspiring mine electrician Cohen Crispin’s resume carries a qualification he hopes will give him that much-needed edge in a competitive field. The 17-year-old central Queensland school leaver was among the first group of students to complete a nationally-recognised Certificate II course in resource and infrastructure work preparation. Along with 12 other
Moranbah State High School students, Cohen completed the new course as part of that school’s Moranbah Advanced Skill Training (MAST) program, run through the Coalfields Training Excellence Centre (CTEC). The qualification, supported by the Queensland Minerals and Energy Academy (QMEA), was developed by SkillsDMC, the national industry skills
Cohen Crispin (front row, second from the left) and his fellow graduates with CTEC trainer Samantha Curran and QMEA field officer Delaney Nugent.
council for the resources and infrastructure sectors. Cohen had considered following in his father’s footsteps as a mechanic until undertaking a Year 9 science project where he had to “wire up’ a model house. “I liked that and when I did work experience (as an electrical apprentice) I liked it more and more,” he said. Cohen has his heart set on becoming an electrician in the mining industry and has put his name down with BMA for an apprenticeship in central Queensland. In addition to the newly introduced Certificate II course, Cohen has completed a Certificate I course in resource and infrastructure operations, a Certificate II course in engineering and a Mining Industry Skills Centre work readiness program based on units of competency from the Certificate II in surface coal operations qualification. His training included work experience at BMA’s Goonyella Riverside mine and with local electrical contractor Steve Longhurst. The Certificate II course in resource and infrastructure work preparation was designed with industry input to provide students with a working knowledge of risk assessment, hazard management,
communication and work procedures on a mine site. QMEA field officer Delaney Nugent said the training package had received great support from BMA, Anglo Coal and Macarthur Coal.
“They’ve been fantastic in the development of resources and the content of the course to ensure it’s giving the kids what they need to know on a worksite and in providing the work placements as well,” she said.
Business survey shows confidence Local businesses are preparing themselves for “boom two” as confidence levels in the Mackay-Whitsunday-Isaac region remain strong, according to the Regional Economic Development Corporation (REDC). Sixty-five per cent of respondents in the latest REDC business confidence survey felt that 2010 would see business activity increase. The regional development register listed more than $46 billion worth of projects, including the Northern Missing Link, contributing heavily to the prediction that “boom two” was on its way, REDC chief executive officer Narelle Pearse said. She said the high value of projects currently under study $30.6 billion - was a positive sign, indicating that investors were willing to spend money in the region. A recently released Manpower Employment Outlook Survey showed a 19 per cent increase in hiring intentions across Queensland for the first quarter of 2010. Manpower Australia and New Zealand managing director Lincoln Crawley said employers in the mining sector were gradually returning to pre-downturn hiring expectations. “However, there is still quite a way to go before the industry will reach the peak employment outlooks seen in 2007 and the first part of 2008,” Mr Crawley said.
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The Mining Advocate | January 2010
13
Team Yabulu kicking goals Townsville’s nickel refinery heads into 2010 with a run of production records on the board and new feedstock deals on the near horizon. Queensland Nickel is close to sealing contracts that should see a 15 per cent increase in ore entering the Port of Townsville to be processed at the Yabulu refinery this year. The company’s success in securing further feedstock comes on top of a run of production records since the plant narrowly escaped closure in 2009 thanks to its purchase by billionaire businessman Clive Palmer. The efforts of chief operating officer Neil Meadows in steering the operation through the tough times were recently recognised at the inaugural North Queensland Engineering and Resources Excellence Awards. Mr Meadows described winning the North Queensland Resources Industry Professional of the Year title as an honour, noting it was also recognition for all of the personnel at the Yabulu operation “for surviving”. Queensland Nickel enters 2010 with production levels hovering around 15 to 20 per cent above budget – a budget Mr Meadows said was described in some quarters as “stretched” when it was set. The plant had gone on to beat all monthly production measures in the final months of 2009, he said.
“In the past we had produced 2400 tonnes of nickel metal once in a month, for example,” Mr Meadows said. “In November we produced 2975 - that’s smashing the record basically – and there was nearly 250 tonnes on top of that produced as oxide.” Mr Meadows puts the production gains at the plant down to increased faith in management and focus by the workforce in general. The plant is tracking towards an output of 33,000 tonnes of nickel for 2009-10. That’s a figure Mr Meadows said would be a record excluding the addition of the mixed nickel and cobalt intermediate hydroxide product (MHP) received for some time from Ravensthorpe in Western Australia under BHP Billiton. The recently expanded Yabulu plant includes sections that have become redundant since feed from that source stopped. Mr Meadows said both himself and Queensland Nickel ore supply and business development manager Peter Harrington were looking at all options to get the extended plant running. He confirmed the company would be talking to Ravensthorpe’s new owners, First
Trefor Flood Queensland Nickel general manager - operations
Quantum Minerals, but also signalled potentially brighter prospects in PNG. “We actually understand that there may be other more sensible routes for them (First Quantum) to go down with their output,” Mr Meadows said. “That’s why we’re also trying to get in to talk to Ramu about their offtake – that is a material more in need of refining than the Ravensthorpe material.” The $1.7 billion Ramu nickel laterite plant, on the north coast of New Guinea, is expected to start production in 2010 or 2011. In addition to seeking new sources of MHP, Mr Meadows said Queensland Nickel was
Port reaches out to new miners Meeting mine proponents on their own turf is part of Tracey Lines’ new strategy to ensure the Port of Townsville is prepared to meet the demands of the array of operations expected to come on line in the next five years.
As the organisation’s business development research officer, Ms Lines is the first point of contact for companies involved in new projects requiring port services. Trade through the Port of Townsville is expected to triple
Tracey Lines meets with CuDeco engineering consultant John Green in Cloncurry. Photo: Roslyn Budd
in the short to medium term, with the majority of that growth coming from mineral exports. With the long lead times involved in providing infrastructure to handle such growth and complex supply chain planning required, Ms Lines said it was important for the port operators to start discussions early in mine developments. “We’re trying to increase our interaction with the mines,” she said. “I’m going to be coming out more often and trying to deal with the exploration companies (developing mines) on site.” Ms Lines recently met with CuDeco representatives on the company’s exploration tenements outside Cloncurry, the first such field trip she has made. Ms Lines said being proactive in identifying and initiating discussion with potential port users was beneficial for the organisation’s forecasting. She monitors the activities of 67 mining companies via website postings and ASX announcements as well as networking through industry groups such as MITEZ (Mount Isa to Townsville Economic Development Zone).
Chief operating officer Neil Meadows shows soccer star Robbie Fowler, captain of the Queensland Nickel-sponsored North Queensland Fury team, around the Yabulu site during a ‘meet and greet’ visit. Photo: Stewart McLean
making good progress in sourcing more ore for roasting. “We’re hoping to bring 4.3 million wet tonnes through Townsville port in 2010 -that’s at least 15 per cent above the tonnage moved at the port in 2009,” he said. “We are gaining access to more ore. We’re in the initial stages of agreements.” The next big hurdle for the operation was the potential ramifications of an Emissions Trading Scheme (ETS), he said. “That’s a significant threat for us,” Mr Meadows said. “Although nickel prices are reasonable at the moment, the exchange rate is quite
horrendous.The imposition of an ETS on an industry-wide basis would really hurt us. We need to differentiate ourselves from BHP Billiton and Minara.” He said MHP processing had a smaller carbon footprint than roasting nickel ore. Mr Meadows recently relocated to Perth, where he will continue to act as Queensland Nickel’s senior executive as well as playing a role in other projects for Mineralogy, the parent company owned by Mr Palmer. Newly appointed general manager – operations, Trefor Flood, will be the senior production executive on site.
Local talent applauded A major upgrade of the Bruce Highway south of Tully was named North Queensland Engineering Project of the Year in a new awards forum for the region. The winning project was delivered by the Tully Alliance team, including BMD Construction, Albem Operations, AECOM and the Queensland Department of Transport and Main Roads. Other winners in the inaugural North Queensland Engineering and Resources Excellence Awards included AECOM’s David Derrick (North Queensland Professional Engineer of the Year), Queensland Nickel chief operating officer Neil Meadows (North Queensland Resources Industry Professional of the Year) and Townsville City Council engineer Kelly Stokes (North Queensland Woman in Engineering 2009). Engineers Australia Townsville Local Group chair Govinda Pandey said while Engineers Australia ran annual Engineering Excellence Awards, including Queensland and national titles, and the Cairns local group had conducted awards in that region, this was the first time Townsville’s engineering achievements had been recognised in this way. “The unique thing we’ve done here is get AusImm (the Australasian Institute of Mining and Metallurgy) involved,” Mr Pandey said. “A lot of our engineering firms do design and construction for mining. There is a lot of interrelation there for AusImm members and Engineers Australia, particularly in Townsville. “We thought rather than going individually we would use the synergy and get more people involved.”
14
INDUSTRY UPDATE - COAL AND GAS
Digging deep
January 2010 |
Strong results for New Hope New Hope Corporation recorded a 20 per cent rise in coal sales in the first quarter of 2009/2010 and an 11 per cent lift in production compared to the previous year. Company chairman Robert Milner said operations continued to perform strongly due to increased export sales into Japan and China, and despite the effect of higher exchange rates.
The Mining Advocate
plant along with two other coal-fired power stations in NSW and Victoria. Anglo American, which acquired a 20 per cent stake in MBD late last year, said the team would also be exploring biological ways to reduce the methane contained within underground mine ventilation air.
MetroCoal raring to go
Brisbane-based thermal coal Meanwhile exploration managing director CAIRNS company Robert Neale TOWNSVILLE MetroCoal made reported that the THURSDAY ISLAND its debut on expansion of the the Australian company’s New Securities Acland mine Exchange in in the Darling December after a Downs region fully subscribed to 4.8 million Without a travel agent you’re on your own Initial Public tonnes per annum Offering (IPO). was essentially complete in late November and the MetroCoal, which listed with a market mine was operating at the forecast rate. capitalisation of $35.4 million, has its focus on tenements in the Surat Basin.
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The P&H shovel at work at Hail Creek mine.
Two new electric shovels have been built and commissioned at Rio Tinto Coal Australia’s Hail Creek mine site, 90km south-west of Mackay. The mine’s first shovel, a P&H XPC4100 model, was delivered to the site in November and the second, a Terex RH340 shovel, was commissioned in December. “It is currently a dynamic time for Hail Creek mine, with new equipment arriving, an increase in employee numbers, increasing production rates and improved site productivities,” Hail Creek general manager Andrew Woodley said. “As always though, the safety of our employees and contractors will remain our top priority.”
Call for terminal interest North Queensland Bulk Ports Corporation (NQBP) is seeking proponents interested in developing additional coal terminal infrastructure at Abbot Point. NQBP has advertised nationally inviting companies to indicate interest for the right to develop further coal terminal infrastructure at Abbot Point known as X80 and X110. The X50 expansion work under way
at Abbot Point Coal Terminal to take capacity to 50 mtpa is due for completion in 2011.
Xstrata grants $2 billion contract Queensland Rail has secured a $2 billion contract to haul coal from Xstrata’s Newlands, Collinsville, Oaky Creek and Rolleston mines. QRNational Coal executive general manager Marcus McAuliffe said the new long-term contracts would begin in 2010 and 2011.
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Carbon Energy fires up Carbon Energy expects to have power flowing to the grid by the end of January from a five-megawatt power station powered by syngas produced from its underground coal gasification (UCG) facility at Bloodwood Creek, west of Dalby in Queensland. This was an Australian first for fuelling this type of power station with syngas, Carbon Energy managing director Andrew Dash said.
Power industry’s algal bloom MBD Energy is investing $2.5 million to trial revolutionary algal carbon capture and storage (BIO-CCS) technology at the Tarong power station near Kingaroy. A newly opened algal bio-fuel research and development facility at Townsville’s James Cook University is advancing the technology, which uses algae to consume carbon dioxide. MBD will partner the university to construct test facilities at the Tarong
Chief executive officer Mike O’Brien said the $10 million raised through the IPO process would principally fund a two-year exploration drilling and evaluation program.
Environmental tick for Daunia Queensland’s Co-ordinator General has approved the environmental impact statement for the Daunia mine near Moranbah, part of BMA’s Bowen Basin Coal Growth Project. The planned mine will have an estimated construction workforce of 450 and operational workforce of 300, with the majority to be housed at an accommodation village at Coppabella. The company said the Daunia project remained at feasibility stage, pending owners’ and Commonwealth Government approvals. BMA will establish a process to advise local business people of tender and contract packages available during the construction and operation of the project.
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INDUSTRY UPDATE - COAL AND GAS
The Mining Advocate | January 2010
Cash boost for Collinsville venture Japan’s second largest steel producer, JFE Steel Corporation, will invest about $560 million in a new coal project near Collinsville, in the northern Bowen Basin. JFE Steel recently announced the deal, saying it would acquire a 20 per cent interest in QCoal’s Byerwen coal project, which is expected to start production in 2012 and turn out 10 million tonnes of premium hard coking coal per annum. Queensland Mines and Energy Minister Stephen Robertson said the arrangement would allow further drilling to prove up coal resources. The State Government had assisted the venture through its streamlining approvals initiative, he said.
Belvedere declared significant The proposed $2 billion Belvedere coal mine near Moura in the Bowen Basin has been declared a significant project by Queensland’s Co-ordinator-General Colin Jensen. The Belvedere joint venture consortium - consisting of Vale Australia, Aquila Resources and AMCI - is proposing a longwall coking coal mine producing up to two million tonnes per annum (mtpa) of metallurgical coking coal in the initial stage of operations, eventually exceeding 10 mtpa.
Hancock proposals move forward The Queensland Government has accepted an application from Hancock Prospecting to declare an infrastructure facility of significance for the coal rail corridor from Alpha and Kevin’s Corner to Abbot Point. Hancock Prospecting chair Gina Rinehart said the proposed developments would create the biggest thermal coal mine complex in Australia, with annual exports at full production of 60 million tonnes of good quality, low ash, low gas and low sulphur coal. She said the company was now able
to commence its bankable feasibility study for the Alpha and Kevin’s Corner operations. Coal production is expected start late in 2013, pending approvals.
Bow powers ahead Bow Energy has launched a $50 million project to develop a 30 megawatt power plant near Blackwater in central Queensland.
considerable benefits to the national economy, including thousands of construction and ongoing jobs. It would also generate annual export earnings of approximately $3 billion. The mine, west of Emerald, would be developed in stages, with the first delivery to international customers expected in 2013, he said.
North Goonyella peace talks Service Trucks
The company has contracted Clarke Energy to build the plant, with an expected completion date of early 2011.
The Queensland CFMEU Mining and Energy Division and Peabody Energy’s North Goonyella Coal have entered a conciliation process following a heated dispute including a mine lock-out.
Bow chief executive officer www.equipmentplacement.com.au – commercial, John De Stefani, The parties have said the new agreed to a process, including an end power plant would be supplied by coal to industrial action and suspension of seam gas (CSG) from the company’s associated legal action, to bring the Blackwater CSG Field, providing early enterprise bargaining dispute at the financial returns from the company’s North Goonyella underground coal strategically located gas assets. mine, 200km north-west of Mackay, to an amicable conclusion. They expect the Contract win for Asciano process to conclude by mid February. Asciano has won a 10-year contract About 280 employees would be subject to haul coal for Isaac Plains Coal to the proposed enterprise agreement. Management, a joint venture between Aquila Resources and Vale. The contract, from July 2010, provides Isaac Plains Coal with rail haulage capacity of 1.1 million tonnes per annum from its Isaac Plains mine to the Dalrymple Bay Coal Terminal.
Major project status Queensland billionaire Clive Palmer’s China First thermal coal project in the Galilee Basin has received Major Project Facilitation status from the Federal Government. Infrastructure Minister Anthony Albanese said the proposed $7.5 billion mine and transport infrastructure project, to be developed by Palmer’s Waratah Coal company, would deliver
Good intercepts for Stanmore
Newly listed company Stanmore Coal has reported significant intercepts at its Surat Basin project, The Range. “Based on the drill results to date it is likely the size of the deposit will substantially exceed the previous exploration target of 40-50 million tonnes as outlined in the company’s IPO prospectus dated October 30 2009,” company secretary Duncan Cornish said.
Milestone for Washpool Aquila Resources has submitted its mining lease application for the Washpool coking coal project, north-
15
west of Blackwater, and expects to have a feasibility study complete in the first quarter of this year. The proposed open-cut operation, positioned between Wesfarmers Curragh Mine and Ensham mine, would employ about 290 people at full production. Coal will be mined at a rate of about four million tonnes per annum (mtpa) run-of-mine coal, to produce between 1.6 and 2mtpa coking coal product, until the depletion of economic reserves - which are expected to last for 18 years.
Green light for PNG LNG Proponents have announced approval for the $16.5 billion Papua New Guinea Liquefied Natural Gas (PNG LNG) Project to go ahead, pending completion of sale and purchase agreements with LNG buyers and finalisation of financing arrangements with lenders. The project partners - including Exxon Mobil Corporation, Oil Search, Independent Public Business Corporation (PNG Government) and Santos - plan to build facilities capable of producing 6.6 million tonnes of LNG per annum.
Macarthur makes takeover bid Macarthur Coal has announced a takeover bid for Gloucester Coal, plans to acquire Noble Group’s interest in the Middlemount joint venture and negotiations to acquire a majority stake in Donaldson Coal Holdings. “The proposed transactions will create a great Australian coal company,” Macarthur Coal chairman Keith DeLacy said. “The transactions will transform Macarthur into Australia’s leading independent coal producer with pro forma 2009 sale volumes of 7.5 million tonnes and strong geographic, mine, port and product diversification.” The new Macarthur would include six operating mines in Queensland and New South Wales and a large tenement portfolio.
2010 Xstrata Mount Isa Mining Expo Breaking Ground in Mining Xstrata Entert ainment Centre - Buchanan Park 13, 14 & 15 April 2010 Showcasing the latest in mining tools, trade and technology in one of the richest mineral provinces in Australia “Celebrating 15 years of Working with Industry”
Registrations now open “A very worthwhile investment and one that resulted in a number of business leads that led to several actual sales. Will definitely be back again in 2010” Yancy McDonald - Fire Lift Engineering For all registration enquiries please contact the Chamber office or visit the Chamber website Phone (07) 4743 9881 Fa x (07) 4743 7266 Email chamber@michamber.com.au Website www.michamber.com.au
16
INDUSTRY UPDATE
January 2010 |
‘Mr Gladstone’ takes a bow
reconstruction of Macmin Silver. The Twin Hills operation was placed on full care and maintenance in July 2009 after Macmin was placed into administration in November 2008.
Focus on mineral processing Rio Tinto and the University of Queensland have announced the formation of the Rio Tinto Centre for Advanced Mineral Sorting, to be located at the Julius Kruttschnitt Mineral Research Centre in Brisbane. The $11 million centre will focus on the development of advanced technologies for the separation and upgrading of important minerals, such as copper and nickel, with increased energy efficiency. Cyril Golding (centre) receives his award from Queensland Premier Anna Bligh and Queensland Resources Council chief executive Michael Roche. Photo: Mark Duffus
The 89-year-old founder of Golding Contractors has been recognised for his services to the state’s resources sector. Cyril Golding was awarded the Queensland Resources Council Medal at the QRC’s annual resources sector lunch. QRC chief executive Michael Roche described Mr Golding as the epitome of a quiet achiever and great philanthropist, with his work for the Gladstone community earning him the title “Mr Gladstone”. “Cyril represents the best of the best in our industry and it’s the initiative, passion and inventiveness of people such as Cyril that have made this industry the great creator of prosperity for Queensland that it has become,” he said. Mr Golding founded Cyril Golding Earthmoving, later to become known as Golding Contractors, in 1942. When he stepped down from the company in late 2007, Golding Contractors had an annual turnover of $450 million. The mining services and civil infrastructure company now employs more than 1000 people and operates one of the largest privately-owned mining and earthmoving fleets in the southern hemisphere.
New copper find for Redbank Redbank Copper has made a new discovery at its Copperado prospect in the Northern Territory, which it is exploring as part of a 50/50 joint venture with Glencore International.
Queensland border. It is located about 16km north-east of the Redbank mine.
Second chance for silver site
Early sampling from the breccia structure has returned results up to 29.7 per cent copper in rockchips.
Alcyone Resources is assessing the potential to resume silver production at the Twin Hills mine near Texas in Queensland’s south-eastern corner, with a view to re-commissioning the operation during 2010/11.
The Copperado prospect forms part of Redbank’s 3700sq km landholding in the McArthur Basin region, near the
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Exploration boost in 2010 Adelaide Resources expects to double its exploration spend on the Rover goldcopper project to more than $3 million in 2010. The decision will see continuous drilling on the project, 80km southwest of Tennant Creek in the Northern Territory, after wet season rains end. “Our 2009 results from Rover lend weight to our view that this project is currently one of the most exciting copper-gold exploration destinations in Australia,” Adelaide Resources managing director Chris Drown said.
TNG gaining ground TNG has increased its exploration landholding at the Mount Peake project to more than 2000sq km. The company recently lodged two new exploration licence applications over an area of 879sq km, covering the southern extension to the Mount Peake magnetic anomaly. The project lies 80km northeast of Alice Springs.
Drilling starts at East Rover Western Desert Resources and TNG have kicked off field work on the East Rover gold-copper project near Tennant Creek in the Northern Territory. Access tracks are being cleared for a
The Mining Advocate
planned drilling program to commence in mid January. Western Desert said all necessary governmental and Aboriginal clearances had been completed.
Jabiru case settled Parties involved in the long-running Jabiru native title case, centred on land surrounding the Ranger uranium mine in the Northern Territory, have reached an in-principle resolution. Energy Resources of Australia (ERA) chief executive Rob Atkinson said the proposed settlement would formally recognise Mirarr traditional ownership of the land and provided certainty for the future of the town of Jabiru. “ERA has been operating the Ranger mine on Aboriginal land for over three decades. We are confident that the town will continue to operate effectively under the new lease arrangements and that there will be no negative impact on town users and visitors,” he said. The Jabiru claim over more than 68sq km of land in and around the township of Jabiru, in Kakadu National Park, was first lodged in September 1997.
Batavia keen on NT tenements Batavia Mining is negotiating the purchase of a 3444sq km package of Northern Territory iron ore tenements. The company recently entered into a heads of agreement with Northern Australian Iron Ore and Australian Ilmenite for the tenements, centred about 475km south-east of Darwin.
Vanadium discovery Joint venture partners Crescent Gold and Southern Uranium have reported a significant discovery of outcropping vanadium and iron mineralisation in the Calvert Hills region of the Northern Territory. The Vanadis Prospect had the potential to be a large mineralised system in a new vanadium province, Southern Uranium managing director John Anderson said.
Contact RUSSELL HOCKINGS www.hastingsdeering.com.au
INDUSTRY UPDATE
The Mining Advocate | January 2010
Kagara buys out neighbour Kagara has bought the Liontown base metals project near Charters Towers from Liontown Resources for $4.5 million. The deposit is 30km from Kagara’s Thalanga processing plant and lies adjacent to its high-grade Waterloo deposit. It contains 1.85 million tonnes at 7.5 per cent zinc, 2.4 per cent lead, 0.6 per cent copper, 28g per tonne silver and 0.55g per tonne gold. Kagara executive director Joe Treacy said the deal would significantly increase the company’s resources in the area and followed a recent upgrade to the Thalanga plant to enable processing of polymetallic ore.
Century back online MMG Century has restarted concentrate production 11 weeks after suffering a failure in the pipeline that carries its product to port in slurry form. The restart followed a number of weeks of careful testing and monitoring following the installation of a bypass and associated repair work, general manager Karl Spaleck said. During the outage, the north-west Queensland zinc operation continued to stockpile ore from the Century pit and completed scheduled maintenance and repair work on the plant and at the port facility. Mr Spaleck said the company was yet to pinpoint the cause of the pipeline failure, despite metallurgical tests and other investigations involving a team of industry experts.
GBM’s $55m investment deal The world’s largest buyer of copper concentrate, Pan Pacific Copper Co, has entered an agreement which could see it inject up to $55 million into north-west Queensland copper-gold projects. GBM Resources recently announced it had signed a letter of intent for a deal that would see Pan Pacific earn a 51 per cent interest in seven exploration
permits and nine applications in the Mount Isa region, by spending $15 million within the first six years. It would be entitled to increase its share of the venture to 90 per cent by spending a further $40 million on exploration and development of the tenements over the following five years.
New partner for Legend Legend International Holdings has formed a strategic alliance with a major Chinese fertiliser producer for the planned development of its phosphate operations in the Mount Isa region.
for $1.65 million to expand its North Queensland nickel-cobalt holdings. The company said the purchase, from Straits Resources and Resource Mining Corporation, brought an excellent development site with existing infrastructure. Metallica has started a pre-feasibility study on establishing a processing operation at the Greenvale site, using feed sourced from Greenvale and blended with Water cobalt-rich nickel Trucks laterite ores from its Kokomo deposit, immediately north of the site. The Greenvale mine operated for 18 years to 1992, transporting nickel ore by rail to the Yabulu refinery near Townsville.
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The Wengfu Group has agreed to work with Legend on the feasibility study for the mining and beneficiation of phosphate rock at Legend’s Georgina Basin Phosphate Project. Pending a positive feasibility study, Wengfu will become an equity partner in the project and the companies will also investigate the production of speciality phosphate products derived from phosphoric acid manufacture. Legend recently announced it had put back the first production of direct shipping ore from the project from late 2009, saying the development of mining operations at its D-Tree North deposit would not be able to commence until the end of the first quarter of 2010. A mining lease application has also been submitted for its Paradise North deposit and was expected to be granted early in 2010, allowing mining operations and production to commence in the second quarter, the company said.
Metallica grabs Greenvale mine Metallica Minerals has snapped up the former Greenvale mine tenements
Mining heavyweight honoured Mount Isa mining industry pioneer MIM Holdings was honoured in the recent Premier of Queensland’s Smart Business Awards for making the largest impact on the State’s economy over the past 150 years. Premier Anna Bligh named the company as winner of the Retrospective/Overall Award at a ceremony marking the eve of Queensland’s 150th birthday. The company, purchased by Xstrata in 2003, was a Queensland success story which continued to make a positive impact on the economy and on the lives of ordinary Queenslanders, Ms Bligh said.
Wild Rivers hurdle A Wild Rivers decision with ramifications for Cape Alumina’s Pisolite Hills bauxite project on western Cape York Peninsula has been postponed until March 2010. Chief executive officer Paul Messenger said the company was disappointed by the Queensland Government’s deferral
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of the Wenlock River Basin declaration, but welcomed the opportunity to provide further information. The declaration could impact on the proposed mine, depending on how the boundaries and buffer zones for the protected area are drawn. Meanwhile, the company has applauded the government’s response to a petition from celebrity wildlife advocate Terri Irwin against mining on any part of the Bertiehaugh cattle station, renamed as the Steve Irwin Wildlife Reserve after its purchase in 2007. Cape Alumina’s exploration tenements overlap a small part of Bertiehaugh. Dr Messenger said the government had stated its commitment to due process. Cape Alumina plans to complete the environmental impact statement for the Pisolite Hills project within six months and hopes to start construction in 2012.
Former Matrix operation sold Cape Lambert Iron Ore has added the Leichhardt copper project in north-west Queensland to its portfolio, securing the former Matrix Metals operation for $8.5 million. Matrix went into voluntary administration in November 2008, with receivers and managers subsequently appointed. The Leichhardt project, about 100km north-east of Mount Isa, includes the Mt Cuthbert processing plant, the Mt Watson open-pit mine, a granted tenement package of about 800sq km and further tenement applications. Executive chairman Tony Sage said the acquisition of the project was in line with Cape Lambert’s strategy of investing in undervalued or distressed assets or companies and adding value through technical and corporate support before looking for ways to realise the investment. The company also purchased CopperCo’s Lady Annie mine last year and is capitalising on the asset through the spin-off company, Q Copper, expected to be floated on the market early this year.
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BETWEEN SHIFTS
January 2010 |
Mount Isa to Townsville Economic Development Zone (MITEZ) dinner
The Mining Advocate
PHOTOS: Roslyn Budd
Gidgee Inn, Cloncurry
Andrew Daniels (Cloncurry Shire mayor) with David Glasson (MITEZ chair).
Paul Woodhouse (McKinlay Shire mayor), Jo Culbertson (Desert Knowledge Australia) and Greg Palm (DEEDI).
Patricia Oâ&#x20AC;&#x2122;Callaghan and Brett Peterson (both from the Mount Isa Chamber of Commerce).
Mike Westerman (Ernest Henry Mining) with Elle Hilton (Legend International).
John Wharton (Richmond Shire mayor), Brendan McNamara ( Flinders Shire mayor) and Tony Parsons (Townsville City Council).
Shane Cagney (McKinlay Shire) with Tracey Lines (Port of Townsville).
Steps 4 Smiles barbecue
PHOTOS: Davey Rintala
Roma St Parklands, Brisbane
Taking care of cooking duties are Stuart Vaccaneo (CFMEU Mining and Energy Queensland district vice-president) and Greg Dalliston (CFMEU Mining and Energy district check inspector).
Theresa Malone (CFMEU Moranbah office), Shannice Mathieson (CFMEU Brisbane office) and Amanda Ross (CFMEU Brisbane office).
Chris Brodsky (CFMEU Central counsellor) and Jim Valery (CFMEU Mining and Energy state secretary).
Lance Schubert (Goonyella Riverside Mine) and Will Craven (vicepresident Broadmeadow Lodge).
Rachel Lee and Sarah Campbell (both from Peak Downs mine).
Brooke Schubert and partner Christian Briggs (Oaky North mine).
BETWEEN SHIFTS
The Mining Advocate | January 2010
CFMEU Mining and Energy head Greg Betts’ farewell drinks
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PHOTOS: Davey Rintala
St Pauls on Leichhardt, Brisbane
Rick Hibble (CFMEU Callide Valley Lodge president), Chris Hunt (Gladstone Port Lodge delegate) and Mark Zerner (Gladstone Port Lodge president).
Rob Kelman (CFMEU safety representative for Oaky 1), Mark Weaver (Crinum Lodge vice-president), Chris Walsh (safety representative, Crinum) and Bruce West (Crinum Lodge president).
Frank Baker (CFMEU Central counsellor) and Jennifer Hobson (CFMEU District Office industrial officer).
Wayne Woodhouse (Saraji Lodge president) and Col Hawkins (Saraji Lodge area delegate).
Rob Law (CFMEU Peak Downs vice-president), Terry Low (Peak Downs president), Greg Betts (retiring Queensland CFMEU Mining and Energy president) and Mark Genovese (Maritime Mining Power Credit Union).
Steve Pierce (CFMEU Queensland vice-president), Wayne McAndrew (CFMEU national vice-president) and Geoff Wilson (State Minister for Education and Training).
North Queensland Fury ‘meet and greet’
PHOTOS: Stewart McLean
Queensland Nickel refinery, Townsville
Siva Chettiar and Alan Parkes (both Queensland Nickel).
Robbie Fowler (NQ Fury) and Trefor Flood (Queensland Nickel).
Michael Myles and Reg Hutana (both with Queensland Nickel).
Scott Waters (NQ Fury) with Basil Ahyick (Queensland Nickel).
Melissa Butt and Michael Fitzsimmons (both Queensland Nickel).
John Tambouras (NQ Fury) with Tony Wade (Queensland Nickel).
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BETWEEN SHIFTS
January 2010 |
AusIMM annual president’s dinner
The Mining Advocate
PHOTOS: Stewart McLean
MoMo’s, Townsville
David and Leonides Hunter.
Patrick and Kelly Stokes with Sarah Hepworth.
Debbie and Jeff Innes.
Jamie Tregear and Luisa Thorburn.
Stuart and Narelle Moore.
AusIMM North Queensland branch chairman Mark Daniell with national president Greg Chalmers.
Mackay Area Industry Network (MAIN) breakfast
PHOTOS: Lauren Reed
Ocean International, Mackay
Andrew Duck (Brown & Bird), Tony Stevens (Paynter Dixon) and Murray Gibbs (Ready Workforce).
Mark Burkett and Greg Mulhall (both from Team Supply Logistics).
Carl Howe (DMS Group), Peter Hamilton (Healthpoint Chemist Group) and James Kearney (G & S Engineering Services).
Zoe Yaworsky (Hipfish Design Studio) and Michael McGrath (North Queensland Cranes).
Narelle Pearse (MAIN) and Dr Ariel Lierman (Energy Users Association of Australia).
BETWEEN SHIFTS
The Mining Advocate | January 2010
Engineers Australia Northern Division AGM
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PHOTOS: Christopher Knight
Survey House, Darwin
Sunesh Dhir (Department of Planning and Infrastructure), Len Chappell (TCM), Pater Hagan (Engineers Australia) and Greg Sinclair (Energy Resources of Australia).
Karen Relph (Engineers Australia) with Peter Tonkin (GHD).
Rana Everett (Charles Darwin University) and Luo Mitchell (Power and Water Corporation).
Jamie Penrose (Engineers Australia) and Keven Blake (Aurecon Consulting Engineers).
Tom Maher (Darwin City Council) and Bronwyn Russell (Engineers Australia).
Premier of Queensland’s Smart Business Awards
PHOTOS: Lara Masselos
Customs House, Brisbane.
Jim Walker (QMI Solutions) and Steve Doyle (Super Cheap Auto and BCF).
Greg and Deb Kempton (Watpac).
Mick and Narelle Crowe (G&S Engineering Services).
Kris Vogt and Kevin Gordon (both from Signmanager Group) with Barry Whiting (Tropical Fabrications), Dinah and Peter Schuback (Mineral and Mine Mover Transport).
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AusIndustry
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January 2010 |
The Mining Advocate
™
Help to cut water and energy use Manufacturing firms are being encouraged to apply for federal grants to assist with projects that reduce their environmental footprint. Astor Metal Finishes is using $109,650 in Re-tooling for Climate Change funding to deliver electricity savings of more than 50 per cent at its electroplating plant. Small and medium-sized manufacturers can apply at any time for grants between $10,000 and $500,000 under the Australian Government’s Re-tooling for Climate Change program to help with projects that improve the energy or water efficiency of their production processes. Up to half of the cost of each project can be funded for projects of up to 18 months. Astor managing director Richard Hammond said that firm’s project involved installing solar collection tubes on the roof of the main plating shop to heat electroplating process tanks. A gas-fired hot water
generator will supplement solar power heating. “This removes the need for mains grid electrical power for heating our tanks,” Mr Hammond said. The project will also conserve power by using insulated pipelines to deliver heated water to either heat exchangers or intank coils. “The previous process resulted in lost energy, due to water evaporation,” Mr Hammond said. The new combined solar/ gas source will maintain heat in plating tanks, eliminating precipitation of salts when tanks are not in use, thereby reducing maintenance costs. “Conserving heat allows Astor to maintain hot solutions for plating any type of finish at any time,” Mr Hammond said. “This means we’ll have greater
flexibility in our production and can provide a better service to our customers. “With this project, Astor is striving to compete with the world leaders in electroplating. Astor has shown it is possible to reverse the tide of products being chrome plated overseas. “Better heating control and heat transfers will allow us to expand our operations in the future without the need for expensive power substation upgrades.” Astor’s main business is chrome plating, but it also provides gold, silver, copper, nickel, bronze and antique finishes, polishes stainless steel, electro-polishes and wet paints all metals. Based in the Sydney suburb of Villawood, it employs more than 50 staff members. People seeking more information on the Re-tooling for Climate Change program are advised to contact their AusIndustry regional manager. For North Queensland,
Astor Metal Finishes managing director Richard Hammond with a chromeplated aluminium commercial wheel. Photo: Getty Images
call Brett Henderson - (07) 4721 6649. For the Northern Territory, call Joachim Schoen - (08) 8941 6261. Alternatively, interested businesses can contact the AusIndustry hotline on 13 28 46 or go to www.ausindustry. gov.au and follow the links to
the Re-tooling for Climate Change program page. AusIndustry delivers a range of more than 30 business programs worth $2 billion to more than 12,000 businesses and about 85,000 individuals every year.
EMISSIONS
The Mining Advocate | January 2010
23
Gearing up for wave of change Industry is holding off on major work to reduce greenhouse gas emissions until the goal posts have been set, says a regional engineering firm. Mackay firm Field Engineers is boosting its emissions testing expertise as it prepares for the wave of demand likely to break over industry when the future costs of carbon become clear. Principal engineer Dave Hartigan said the company planned to establish a laboratory to test samples and was working on its application for accreditation from the National Association of Testing Authorities. An occupational hygienist with a background in collecting emissions samples is joining the firm in January, complementing the analytical abilities of electrical engineer Felix Aditya. Mr Hartigan said a further three engineers from the firm had completed a relevant RMIT
University course about year ago to prepare for the anticipated growth in demand for services related to emissions monitoring and reporting. Companies were justifiably holding off any major changes to reduce carbon emissions until a clear framework setting out the cost of carbon emerged, he said. “At the moment most businesses we are talking to are waiting to see what the outcome of the political situation will be,” Mr Hartigan said. The implementation of an emissions trading scheme would create a market for consultants and advisers similar to the increase seen in safety services in the past 15 years as regulations and enforcement in that area become
David Hartigan and Felix Aditya from Field Engineers discuss an exhaust sampling point for a piece of construction machinery. Photo: Lauren Reed
more stringent, Mr Hartigan said. Field Engineers already conducts audits and reports required under the National Greenhouse and Energy Reporting System (NGERS) for companies whose energy use exceeds the threshold level. “The second step we can offer is that if a company finds that their emissions are too high and
CCS technology the light at the end of the tunnel
they would like to reduce them then we can carry out a study on their existing plant to tell them the most effective way to reduce carbon – providing bang for their buck,” Mr Hartigan said. “As mechanical engineers we can oversee and implement that. “But at the moment, because there’s no teeth to any legislation, it’s unusual for large companies
to bother because there’s no real incentive. “ Mr Hartigan said firms were shifting to low-emission technology in some areas, driven in part by high diesel costs. “We’re already seeing changes from larger AC lighting plants and equipment to smaller, more efficient DC electrical equipment with things like LED lighting – they are becoming a lot more popular,” he said. “But to really reduce carbon emissions companies will have to make large changes to their plant design and for that to happen there needs to be a serious framework in place. “At the moment it’s just the low-hanging fruit, just the easy stuff - using less energy and less fuel and as a direct cost saving. “Anything requiring big capital outlay, no one is doing it yet and I think no one in their right mind would do it until they know where the goal posts are.”
Need for consistency and clarity Unclear guidelines and uncertain policy are creating confusion as mining companies deal with a raft of Federal Government energy and emissions reporting programs, according to NRA Environmental Consultants. Company director Neil Boland said the group had seen numerous inaccuracies in the way the reporting system for the National Pollutant Inventory (NPI) worked. “Emissions reporting is based on many assumptions, which means one company can be identified as a big polluter under the NPI scheme while another company, which actually produces more emissions, is considered to be a lower polluter as it uses different assumptions when preparing its reports,” Mr Boland said. “They may not be going into it as thoroughly – and there is no incentive to do so.” He said there was a need to achieve consistency
Confirming the commercial viability of new technologies to reduce greenhouse gas emissions would provide the greatest impetus for political agreement on a global climate change response, according to the Queensland Resources Council. QRC chief executive Michael Roche said the clear message from the Copenhagen climate summit was deep uncertainty over the economic and social consequences for countries in moving first to make large cuts to greenhouse gas emissions. “Commercially viable electricity generation employing proven carbon capture and storage (CCS) technologies is the light at the end of the tunnel,” he said. Mr Roche said Queensland was in the “box seat” to take a global lead with two commercial-scale low-emission power plant projects in prefeasibility study stage. “The Wandoan Power and ZeroGen projects - coupled with CCS pilots at Callide and Tarong power stations - show that Queensland and Australia are serious in rolling out the technological solutions to help underpin a global political commitment to reducing emissions,” he said.
across the reporting systems and to clarify the purpose of the data collection. The government has also introduced a National Greenhouse and Energy Reporting System (NGERS) to underpin the planned introduction of emissions trading. In 2010 the threshold for registering will drop to 0.35 petajoules. For those already in the Greenhouse Challenge Plus program, annual reporting is still required. Mr Boland said all programs required the collection of energy use and emission data across all areas of a company’s operation. NRA was able to help companies identify the programs that applied to them and the most painless way to prepare reports, he said. “We’re also helping people reduce emissions and energy use and looking at tax incentives, grants and other economic advantages in increasing energy efficiency,” Mr Boland said.
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24
Isaac Region
January 2010 |
The Mining Advocate
Moranbah ripe for new enterprise A surge in housing and booming industry have created good business openings in this Bowen Basin coal community. Moranbah offers a wealth of opportunity not only for mining supply firms but those catering to household needs, according to a traders’ representative. A recent land release meant about 300 new houses were being built in the community – creating extra demand in areas such as landscaping and furnishing, Moranbah Traders Association liaison officer Lynnie Busk said. The association, in cooperation with the Isaac Regional Council, hopes to kick off a new campaign in 2010 to attract more businesses to the town. That would include encouraging more operations in the mining service sector and related industry to consider establishing their businesses in Moranbah, Mrs Busk said. “Why should we have to
source industry from Mackay when Moranbah is big enough to justify having some of these industries itself?” she said. Mrs Busk and husband Noel have lived in Moranbah for 37 years, having moved to the town from Gladstone just three weeks after their wedding. “Moranbah was only two years old when we came here - you could virtually call us pioneers now,” she said. “We have seen it go from bulldust roads in the middle of a few houses up to what we are seeing now - a huge amount of new development and many private houses. “There are around 11,000 people living in Moranbah, that’s not including the guys in the accommodation villages.” Noel Busk was one of the first dragline operators at the Peak Downs mine and the couple’s
three sons have all found work in central Queensland mining operations as well. Mrs Busk conducts town tours for selected BMA employees as well as working for the designated Coal Board Medical doctor for Goonyella Riverside mine and her role with the Moranbah Traders Association. The association boasts 55 members, but Mrs Busk says that’s just the tip of the iceberg in terms of businesses operating in the area. The town provided a good range of retail chain and speciality stores at the Moranbah Fair Shopping Centre and the Town Square, which was recently refurbished by the Isaac Regional Council at a cost of about $3.5 million, she said. “Moranbah has a lot to offer those considering establishing a new business. We have a growing population and a boom expected from 2010,” Mrs Busk said. “There are many growth opportunities here that different investors or entrepreneurs could
Moranbah Traders Association liaison officer Lynnie Busk.
take advantage of. I would suggest that any industry that opened here servicing the mines or building would be quite happy and profitable.” Positioned halfway between Emerald and Mackay, Moranbah offered proximity to other thriving mining communities including Clermont, Dysart, Middlemount, Glenden and Nebo, Mrs Busk said.
Photo: Erica Smith
Isaac Regional Council released 340 residential blocks of land for sale by tender in Moranbah in four stages from February 2008, with the last 125 allocated to buyers in a land sale in mid-2009. The council also recently developed 29 lots in the Pat Hannay Heavy Industrial Estate, with the last 16 released for sale in December.
Isaac Region
The Mining Advocate | January 2010
25
Opportunity and diversity The long-serving local mayor can vouch for the lifestyle benefits on offer in the thriving Isaac area, writes Belinda Humphries. Cedric Marshall has seen the coal mining communities of the Isaac Regional Council area rise from the dust and flourish. And with his family of four children having grown up in the region, the long-serving local mayor is ideally placed to extol its lifestyle benefits for families. “The mining towns are young towns which offer great family lifestyles,” Cr Marshall said. “They have very good educational facilities up here, a range of medical services and the sporting facilities are excellent.” While conceding that suitable accommodation remains at a premium throughout the coalfields and there will always be mine employees who opt to live on the coast, Cr Marshall is keen to see more families shift to the region. “Our vision in our corporate plan is to be the region of first choice,” he said. “We want to have a place that people think of as the place to be.” A key focus of the plan for council is to promote and enhance the diversity of lifestyle and opportunity within the region – whose boundaries encompass everything from the inland coalfields to quiet farming communities and a beach-studded stretch of central Queensland coastline. Cr Marshall has served in local government since 1991, when he was elected to what was then the Broadsound Shire Council. He saw becoming involved in local government as an extension of the community work that he and his wife had been involved in since the earliest days of the local mining towns. His time in office included nine years as deputy mayor and five years as mayor before the Broadsound, Belyando and Nebo Shire Councils amalgamated
Former dragline operator Cedric Marshall at a local mine site. Photo: Erica Smith
Coal to coast ● The Isaac Regional Council was formed in 2008 through the amalgamation of Belyando, Broadsound and Nebo shires. ● It covers an area of 58,682sq km in central Queensland, stretching about 400km inland from a strip of coast between Mackay and Rockhampton. ● The towns of Carmila, Clairview, Clermont, Coppabella, Dysart, Glenden, Middlemount, Moranbah, Nebo and St Lawrence lie within its boundaries as well as smaller communities including Clarke Creek, Greenhill, Ilbilbie, Kilcummin, Mistake Creek, Mackenzie River and Valkyrie. ● The region had an estimated resident population of 21,933 people as at June 2008 - or 0.5 per cent of Queensland’s population. The region’s population is projected to grow to 34,580 by 2031. ● Isaac accounted for half of the Mackay/Whitsunday region’s total GRP (Gross Regional Product) of $14.95 billion in 2007/08, with 76.1 per cent of that wealth produced by the mining sector.
in March 2008 to form Isaac Regional Council. Cr Marshall was elected as the first mayor of the new council – a position that has him overseeing an area whose coal mines alone contribute $5.7 billion annually to State and Federal wealth. Like many in the region, it was the mines that originally drew Cr Marshall to central Queensland. Raised in Jandowae on the Darling Downs, where his parents ran a dairy farm, Cr Marshall began his working life with the postal service before moving into the road transport industry. He shifted to Moranbah in 1974 to provide earthmoving
contract work for the local mines then being established by the Utah Development Company. Cr Marshall said his position in the earthmoving industry had seen him involved in building the new towns of Moranbah, Dysart, Middlemount, Tieri and Glenden, which were developed during the 1970s and ‘80s. “I remained with civil construction until 1985, then I became an employee at Saraji mine and became a dragline operator,” Cr Marshall said. He remained with the mine until the local government amalgamation in 2008, with the mayoral role for the new regional council being a fulltime position. Cr Marshall was also able
to realise his childhood expectations of becoming a grazier, running some small cattle holdings during his mining career. Cr Marshall and wife Beth settled in Dysart in 1980. Of their four children, three remain in the Bowen Basin area - with two sons working in the mining industry and a daughter married to a miner – while a third son is in the airforce. Cr Marshall, who is also president of the Central Queensland Local Government Association, said he hoped to have a role in the council for some time to come – if the voters were agreeable. He said his focus for the future included promoting the
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diversity and sustainability of the region, embracing the advances of modern technology and lifestyle opportunities for Isaac residents. “As for infrastructure and finance, we will continue to lobby and plan for the core business responsibilities of council and maintain sound fiscal policies,” Cr Marshall said. “On the planning board we currently have 26 operating coal mines with a further 20 leases in various stages of development. “The stability of our coastal and rural industries and diversity of our region will continue to be an integral part of our planning for sustainability into the future.”
26
Isaac Region
January 2010 |
The Mining Advocate
Economic powerhouse The population of Isaac continues to punch well above its weight when it comes to gross regional product figures. The Isaac council area is set to maintain its status as the economic powerhouse of the greater Mackay region, with billions of dollars worth of mining projects on the near horizon, according to a peak economic development body. Regional Economic Development Corporation (REDC) chief executive officer Narelle Pearse said annual coal production in the MackayWhitsunday region was expected to rise by 38 per cent by 2016, with the bulk of that increase coming from Isaac region coalfields. REDC data shows the Isaac region has more than $13.4 billion worth of mining projects either under study or under construction. They include the $1 billion Moranbah South underground coal project, the $1.5 billion Clermont open-cut mine, a $1 billion expansion for Goonyella Riverside, a $1 billion expansion for Peak Downs mine, the $4 billion Caval Ridge open-cut mine and the $1 billion Saraji East underground mine proposal, among others. Ms Pearse said while the
Mackay-Whitsunday region’s economic base was becoming more diverse, the Isaac coalfields were still the powerhouse for growth. Isaac accounts for about half of the greater Mackay-Whitsunday region’s total Gross Regional Product (GRP), but only 13 per cent of its population. “Isaac continues to contribute heavily towards the region’s GRP despite having a smaller population,” Ms Pearse said. “GRP per head for Isaac is $340,000 compared to $50,000 per person in Queensland.” Apart from coal mine development, other major projects on the drawing board for the region include AGL Energy and Arrow Energy’s $220 million Central Queensland Gas Pipeline, to run between Moranbah and Gladstone. Ms Pearse said the construction of a pipeline to connect Abbot and Hay Points to the Bowen Basin and, eventually, the Cooper Basin at an estimated cost of $1.5 billion, was also under study.
The Theresa Creek Dam outside Clermont.
Magpie geese flock to the St Lawrence Wetlands.
Wetlands host a wealth of wildlife The St Lawrence Wetlands on Isaac region’s southern coastal fringe provide key habitat for many bird, fish and plant species. The wetlands form part of the East Asian–Australasian Flyway, an essential migratory pathway for birds, and work by Wetlands International - Oceania and Birds Australia - Capricornia has identified an internationally significant number of waterbirds in the area. They are also an important nursery area for key recreational and commercial fish species such as barramundi and mangrove jack. Fitzroy Basin Association (FBA) coastal co-ordinator Shane Westley said the wetlands were important not just as a habitat for plants and animals, but for filtering water running across the catchment. “Wetlands act a bit like kidneys filtering impurities in the system, and this is why they are critical for healthy waterways,” Mr Westley said. “Wetland health provides an indication of the health of the ecosystem as a whole. They
play a vital role in ensuring the environment is functioning properly.” The area has recently been receiving some much-deserved attention according to Isaac Regional Council community services manager Jennifer Clark. Projects completed by the FBA and Fitzroy River Coastal Catchment (FRCC) in the past two years have included installing fish ladders and interpretive signage, production of 1000 informational brochures on the St Lawrence Wetlands and the construction of a walkway and viewing platform. Ms Clark said the organisations had also organised St Lawrence Wetlands Discovery Day events in 2008 and 2009. She said Isaac Regional Council was hoping to build on the achievements of those organisations and was now actively working with the St Lawrence community to: • educate local residents, visitors and tourists on the importance, value and ecology of the St Lawrence Wetlands,
• establish a volunteer group in St Lawrence to support the work being done there, • promote community involvement in the maintenance and promotion of this natural asset, • establish the St Lawrence Wetlands as an eco-tourism destination, and • celebrate the St Lawrence Wetlands each year by hosting a community event to showcase the area and the work accomplished by the local community in conjunction with Wetlands International – Oceania, Birds Australia – Capricornia, the FBA, FRCC and Queensland Department of Primary Industries. Ms Clark said there were free camping facilities available at the St Lawrence Recreation Grounds for people wishing to stay a day or two and enjoy the beauty of the area. “Visitors will find the amenities are clean and well maintained,” she said. “Hot showers are offered for a gold coin donation.”
Bont family laps up lakeside lifestyle near Clermont “Come and give it a go.” That is newcomer Kim Bont’s advice to families who have yet to discover what the Clermont district has to offer, with her own relatives among those she has encouraged to make the move. The former teacher’s aide moved to the area from Bundaberg in September 2008 to manage the Theresa Creek Dam recreational facilities along with husband Peter and their three boys. The decision to leave Bundaberg, where the family had settled on a 12ha property near Mrs Bont’s parents, came like a bolt from the blue. “Peter had been working in Clermont for two weeks at a time at a work camp when he heard the (dam caretaker) job was coming up and mentioned it on the phone one day, thinking that it would be a good job for my dad,” Mrs Bont said. “I put the phone down and thought ‘oh my God,
that’s my job’. It just hit me in the face – this is what we have to do as a family to be together.” Mrs Bont said the location, just 20km from Clermont, had proved ideal for sons Brayden, 16, Kurtys, 13, and Joel, 9. “If we said we were moving back to Bundaberg they’d be devastated,” she said. “They have a great network of friends. They’re involved in local sport, they water ski - what’s not to like?” She laughingly adds that the move has also guaranteed the boys a weekend job - replacing toilet rolls and helping out at the on-site shop. The Bonts have made improvements to the dam’s camping area and installed a kiosk, with funding from Isaac Regional Council, since taking over as caretakers at the spot. They are involved in the local Dolphins swimming
Kim and Peter Bont at the dam kiosk.
club and Mr Bont coaches junior football in town. Mrs Bont described Clermont as a good community with many supportive people. “If you have a job opportunity here, like at the mines, then don’t hesitate - it’s wonderful,” she said.
Isaac Region
The Mining Advocate | January 2010
27
Country life inspires artist Trevor, head stockman on Fort Cooper, and their two sons enjoys horse sports and being part of the cattle industry. “We’re all very involved with our horses, we are keen camp drafters and our sons are keen rodeo competitors,” Mrs Paton said. Rio Tinto Coal Australia’s Hail Creek mine dominates one of the “bullock paddocks” on Fort Cooper. And while Mrs Paton bemoans the loss of the beautiful undulating pasture land that once lay there, she says the increase in mining activity in the region has also
Former station cook Kay Paton endeavours to capture the stories of rural Australia in her bronze creations, writes Belinda Humphries. In a small foundry on the Fort Cooper cattle station outside Nebo, Kay Paton painstakingly molds her vision of country life. After 11 years as station cook, Mrs Paton was able to give up that job in early 2009 and concentrate full-time on her bronze sculpting. She has since finished two major works – a life-size statue of local identity “Snow” Burgess and a large santa gertrudis bull for the Longreach launch of the book Beef Cattle Australia by Russell Reed. When not working on commissioned pieces, including trophies, Mrs Paton said she enjoyed creating art that told a story reflecting rural Australia. Her interest in bronze sculpture was sparked by her introduction to Frederic Remington’s Western-themed pieces during a visit to the United State as a 17-year-old exchange student. “The thing that really took
my fancy with the Frederic Remington pieces was each piece depicted a story - you could see what had just happened and what was about to happen,” she said. “That’s what I endeavour to create.” Her expertise has evolved from “mucking about” with wax and clay, to researching casting processes and finally, in 2000, being in a position to start casting her own work. “It has gone from there,” Mrs Paton said. “Now I can do bigger pieces. “I have a little shed out the back of the house where I do the casting and I have had a studio built this year.” While living in regional Queensland is a significant disadvantage when it comes to the cost of transporting specialist materials and equipment from the major cities, Mrs Paton is firmly attached to the lifestyle the
The recently completed statue of Nebo identity “Snow” Burgess.
Nebo area offers. She has lived in the region for most of her life and - along with husband
Visitors treasure town’s charm Thousands of people from throughout Australia and overseas flock to Clermont each year to unearth some of the historic town’s hidden delights. It is the prospect of taking home a gold nugget like the 6oz specimen discovered by a Mildura man last year that lures fossickers to Clermont. But the community has other shining qualities that ensure many visitors return time and again.
Just ask Olga Dunn who, with husband Barry, runs the Clermont Detectors business – as much a social hub for fossickers as a source of practical supplies and advice. “The ones that keep coming back do other things while they are here,” Mrs Dunn said. “They go fishing for barra and red claw at Theresa Creek Dam. They go golfing with the locals. Some of the girls have craft,
brought benefits for rural families. “My son Mitchel (19) is a second-year boilermaking apprentice at Macmahons in Nebo,” she said. “Justin (17) has just finished school at St Brendan’s College and is looking for apprenticeship now. “That’s the benefit the mining industry brings to our area - our children can get apprenticeships and still be in this area, whereas previously they would have had to go to Mackay, Rockhampton or further afield.”
quilting, arts and writers’ groups. “I think what most people like about Clermont is that it’s a friendly town. There are no traffic lights...and the caravan park is about a 10-minute walk down the street, so if the boys go to the pub they can roll down the hill home,” she laughed. Prospecting on the Clermont goldfields or the nearby gem fields of Anakie was particularly appealing to retirees, she said.
Barry Dunn with more than 3kg of nuggets discovered locally by fossickers.
Mr and Mrs Dunn bought Clermont Detectors, located within the Clermont Caravan Park, in August 2002 following two extended gold prospecting holidays in the community. “We just love it,” Mrs Dunn said. “What got me was the beautiful sunflowers either side of the road going into Clermont from Emerald - so welcoming. “My Dad used to grow
sunflowers. I thought it was a good omen.” Among the highlights on the local calendar is the Clermont Gold and Coal Festival, held in the third week of August each year. Other attractions for visitors to Clermont include the nearby Copperfield ghost town, Clermont Museum and twice weekly tours of the Blair Athol coal mine.
We remember Moura No. 2 Explosion, 1994 7 August 2009 On 7 August, 1994, an explosion claimed the lives of 11 night shift workers at the Moura No. 2 Mine in Central Queensland. Those who died were John Dullahide, 44, Darrell Hogarth, 46, David King, 24, Geoffrey Mazzer, 45, Mark Nelson, 36, Robert Newton, 39, Robert Parker, 39, Chris Ritchie, 27, Michael Ryan, 31, Michael Shaw, 27, and Terry Vivian, 49. The men who died were working 265 metres underground and three kilometres from the mine entrance. A subsequent formal inquiry into the loss of life said management had not taken adequate steps to inform Moura workers of risks of explosion and had made no attempt to keep miners out of the mine. The report of the inquiry said management assuptions on safety represented a passage of management neglect "which must never be repeated in the coal mining industry." The CFMEU is lobbying to maintain Industry Specific Legislation, to ensure disasters like this never happen again. In 13 incidents since 1961, 47 lives have been lost in the MouraKianga coal fields. The largest of these were Kianga No. 1 in 1975 (13 lives), Moura No. 4 in 1986 (12 lives) and Moura No. 2 in 1994 (11 lives).
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Building Mining Communities
The Mining Advocate | January 2010
29
Hands-on approach for Smyth The CFMEU’s new Collinsville-bred boss has plans to take the presidency closer to the coalface, writes Belinda Humphries. mines, first as a contractor and then as a full-time underground miner, when he turned 18. “I wasn’t a big fan of school,” Mr Smyth said. “I wanted to get out and the first opportunity that came along was at the butcher shop. “But I always had the ambition to be a miner. I had my name down at the mines and, as the son of a miner, I had a good chance of getting on –
“It’s a great honour to be the president of the union and I want to deliver for those guys.” they looked after the people in the community. But I had to wait until I could get a start.” He has since worked at coal mines including Laleham (south Blackwater), the Cook Colliery (Blackwater) and Southern Colliery (Middlemount). That mining career has included roles ranging from underground miner to mine deputy and check inspector. Mr Smyth took his first fulltime union role in 2000, when he was elected as a fill-in district mine inspector. He had been over the moon to gain the position, Mr Smyth said, as he had always been keen to be involved in union work. “Growing up in Collinsville, being a pretty strong union town, and with my family being involved in the union – I lived and breathed it,” he said. “When you’re in that environment it influences the way you go about your life.”
New district president Stephen Smyth at the CFMEU Mining and Energy Brisbane office.
He was elected as a permanent mine inspector for the CFMEU in 2002. “(The job) involved dealing with day-to-day safety complaints and investigating accidents and fatalities, dealing with the companies at a corporate level in relation to health and safety matters at the mines and generally looking after the members when they had concerns of a health and safety nature,” Mr Smyth said. He said he had enjoyed the job, as he felt it gave him the chance to make a difference. Having worked with some of the men whose deaths or injury he later came to investigate had further driven home the importance of improving safety in the industry. “It makes you more determined. If you’re in a position to do something, that
makes you passionate about it,” Mr Smyth said. He believes there is still much room for improvement. “While it’s good that people have visions of zero harm, we need to focus on what’s actually happening at the moment and be fair dinkum about engaging the workforce,” Mr Smyth said. “You can have corporate policies, but at the end of the day you need to get back to grass roots.” Mr Smyth said he was looking forward to the challenges of his new role – which he described as encompassing everything from wages and conditions to health and safety and the general welfare of coal mining communities. “These coal mining communities have generated billions and billions of dollars for our economies and provided
Isaac tackles industry impact YOUR Isaac Regional Council recently brought industry, government, unions and community groups together to discuss the challenges associated with industry impacts on Moranbah’s amenity and liveability. Thirty-two representatives from Queensland Health, the combined unions, the Department of Environment and Resource Management (DERM), the Department of Employment and Economic Development and Innovation (DEEDI), the Department of Infrastructure and Planning (DIP), Central Queensland University, Anglo Coal, BMA, Macarthur Coal, Vale and the council attended the workshop. An increase in dust from a range
of sources, including future mining developments, was raised as a major concern of Moranbah residents and by stakeholders at the workshop. Isaac Mayor Cedric Marshall said the workshop was council’s way of bringing all parties together for a procommunity/pro-industry discussion. A working group will be established to continue discussions and formulate strategies assisting in the management of dust and other cumulative impacts to ensure the sustainability and health of the community. Council will be calling for expressions of interest from key community and industry groups in the near future.
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Photo: Fiona Harding
jobs for many families,” he said. “I don’t think there’s enough going into these communities from the larger companies that work out of them.” Housing availability was a prime example and an area where the union would continue to campaign strongly, Mr Smyth said. Mr Smyth lives in Mackay with wife Kim and they have three children – Thomas, 17, Cortney, 14, and Raylene, 13. He said his job would be impossible to do without good family support. Mr Smyth plans to maintain Mackay as his home base rather than moving to Brisbane for his new role, and said he had used that fact as a selling point in the recent election.
Work accident claims Motor vehicle accident claims Family law Estate law Conveyancing
T 1800 659 114 F 07 3229 9842 E general@hallpayne.com.au W www.hallpayne.com.au
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Steve Smyth sees himself as a straight-talking union man with a leadership style that will keep him firmly connected with members at grassroots level. Mr Smyth recently took the reins of the Queensland mining and energy division of the CFMEU (Construction, Forestry, Mining and Energy Union), replacing Greg Betts as district president. His election represents another chapter in the coal community of Collinsville’s long-running prominence in the union movement – with previous CFMEU leaders from that town including Mr Betts and former national secretary John Maitland. Mr Smyth said he planned to be a “hands-on sort of president” who would spend more time with the mining workforce. “I don’t want people to think ‘that’s the president, we can’t relate to him’,” Mr Smyth said. “It’s a great honour to be the president of the union and I want to deliver for those guys.” He said accountability and honesty were also important to him, even if it meant giving people answers they did not like. Mr Smyth counts several generations of miners on his family tree, including his father Allan Smyth. His mother, Denise, is one of the wellknown Collinsville clan, the Brunkers. While he always wanted to follow in his father’s footsteps at the local coal mine, Mr Smyth had to bide his time as a young school leaver. He started an apprenticeship at a local butcher shop at 16, then took a job in a garden shed factory in Perth before returning to Collinsville to work at the
30
Building Mining Communities
January 2010 |
The Mining Advocate
Get your motor runnin’... Clermont’s Jason Earl inherited a love of cars from his father and is now seeing his own kids follow suit. Taking a second-hand Cortina and turning it into a drag-racing standout with more than 660 horsepower at the wheels is the sort of pastime that becomes a full-on passion for enthusiasts like Jason Earl. Mr Earl is president of the Clermont Motoring Club and has collected numerous trophies in burnout competitions and speed trials with his lovingly modified machines. The 33-year-old father of two, who works as an electrical maintainer at the Blair Athol coal mine, said he had inherited his love of cars from his father and was now seeing his own children Jason Earl follow suit. Clermont Motoring Club president Mr Earl said his very first car had been a Datsun 1200 sedan which he learnt to drive in. “After that I purchased a Datsun 1600 sedan and a good friend of mine was doing an apprenticeship as an engine machinist at the time, so we decided that we might try a few things and my first quick car went from there. It was at this point, when I was just 17, that I went to try drag racing for the first time and I’ve been hooked since then.” Mr Earl said the first car he had completely rebuilt himself was a 1974 Toyota Celica, which won him many trophies in burnout competitions in Emerald, Bundaberg and the Benaraby Raceway near Gladstone. Since then, his interest has turned to V8 cars such as his two latest “toys” - a Ford TF Cortina full chassis drag car and an XE Ford Fairmont Ghia. The Cortina had carded 8.86 seconds at 154 miles per hour (248km/h) in Mackay last July, Mr Earl said. The times it had achieved indicated more than 660 horsepower at the wheels. “My favourite, however is my 1982 XE Ford Fairmont Ghia which I bought a few years ago as a bare shell and have gradually developed from there to what it is now,” Mr Earl said. “It is fitted with a 383 cubic inch small-block Cleveland V8 with alloy heads and was all put together by me at home in the shed and is making 434 horsepower at the rear wheels. “It is also fitted with a Ford nine-inch diff and a C4 gearbox built by CTP Race Transmissions in Mackay. It is fitted with a fully reupholstered interior and has a roll cage and race seats fitted as well as a big loud stereo.” He said he had recorded 10.88secs at 125 miles per hour (201km/h) over the quarter mile at the Townsville dragway in the car in May last year. Mr Earl said his wife Kim had been very supportive of his hobby, including “helping out in the shed” when needed. Meanwhile, the couple’s 13-year-old daughter Cheyanne has enjoyed success in racing a junior dragster and younger brother Connor, 6, is also keen to hit the track. “Kids can start racing as young as eight years old, but there are limitations on speed and times they are allowed to run for the different age levels,” Mr Earl said. “Cheyanne already has more trophies for drag racing than Dad and she doesn’t let me forget it.” After a year in which Cheyanne had attended 10 events throughout Queensland and only once missed making the finals, Mr Earl said he had decided to sell his Cortina to buy her a new junior dragster for Christmas. “It was a bit sad, but I’ve had my bit of fun with it and I still have my red car,” he said. “There was a big smile on her face as soon as she walked out the door on Christmas day and saw it – it was a good surprise.”
Jason Earl’s Ford
TF Cortina.
Club bid to build burnout pad The Clermont Motoring Club will be fundraising this year in a bid to build a burnout pad and driver training track for the area. Club president Jason Earl said the group was negotiating to build the facility at the local motorcycle club grounds. “We’re looking at a rather large burnout pad, 17m sq with a 24m by 4m straight com coming on to it which we would utilise for driv driver training as well,” he said. “W “We want to allow young people to trial the their cars and learn how to handle them wit without being out on the road upsetting the policeman.” The club is also hoping to host its se second Clermont Motor Muster in Se September this year following the su success of the inaugural event in 2008. Mr Earl said the Clermont club had b been well supported by other regional ccar clubs for that event as well as other ccommunity groups. The group aimed to give as much as possible back to the local community, he said. “At our Australia Day celebrations in Clermont last year, the Clermont ia. Gh M Motoring Club made a donation of t on m ir Fa Ford The rebuilt XE $20 $2000 to Monash Lodge - which is Cle Clermont’s home for the elderly fro from the proceeds of the 2008 Motor Muster,” Mr Earl said. The Clermont Motoring Club, which was started in September 2007, runs regular events for members including cruises to vvarious locations, barbecues and “s “show and shines”. Mr Earl said the club had about 20 me members, with some of those being fam family memberships “W “We have many interests amongst the group including drag cars, classic cars, hot ro rods, late model cars, muscle cars, motorb motorbikes and even ski boats and jet skis,” h he said. “The aages of our members vary from as young as 18 up to retirement age - so there real really is a good mix of experience and keenness and a enthusiasm. We have members from Clerm Clermont as well as Capella, Moranbah and Townsv Townsville.” People int interested in joining the club can email clermont.motoring.club@bigpond.com, clermo C h e ya write to the C Clermont Motoring Club at 40 nne’s n ew jun Monash St, C Clermont, Queensland - 4721 or ior dra gster. phone Mr Earl on 0438 090576.
Building Mining Communities
The Mining Advocate | January 2010
31
All smiles as fun walk lifts off The organiser of a fundraising event to help sick kids and their families plans to repeat the effort after receiving strong support. The Royal Children’s Hospital Foundation is receiving a $30,000 boost thanks to the efforts of CFMEU mining and energy division employee Tahlia Mills, along with many of her colleagues and supporters. Ms Mills organised the “Steps 4 Smiles” fundraising event in December to assist the Brisbane hospital, with a particular focus on its Rural Family Support service. “It was very successful and a very good day,” Ms Mills said. About 80 people had joined the 10km “Steps 4 Smiles” walk from the Roma Street Parklands to the Royal Children’s Hospital and back, she said. The majority were CFMEU officials and members. Ms Mills said the event had raised about $1500 on the day from raffles and food and drink sales. This was in addition to the funds collected in registration fees, walk sponsorship and general donations.
Ms Mills said a number of CFMEU lodges had pledged money for the cause, as had some firms with regular dealings with the union, such as Hall Payne Lawyers and Cerbros Brokers as well as Metro Ford in Brisbane. While Ms Mills had set a fundraising goal of $50,000, she said she was happy with the final tally considering it was the first time Steps 4 Smiles had been held. She believed the heat may have deterred some would-be walkers and noted that the timing could have been better, considering the event was held the morning after the office Christmas party. The 23-year-old said she was still keen to make Steps 4 Smiles an annual event. Ms Mills, who is recovering from recent knee surgery, was forced to sit out the event herself after she suffered some swelling to her leg and was unable to secure a wheelchair as planned.
Steps 4 Smiles organiser Tahlia Mills (centre) celebrates the success of the fundraising walk along with participants Renee Stoddart and Lara Watson. Photo: Davey Rintala
Blackwater reaches out across the globe Blackwater residents, with support from BMA, have donated a full shipping container of clothes, books and bicycles for the underprivileged living in the South African capital of Johannesburg. Working in partnership with SIRVA Relocation, Allied Pickfords organised for the container to be shipped to Johannesburg to the
BHP Billiton South Africa head office to allow the donated items to be distributed to charities and non-profit organisations. Blackwater Mine general manager Steve Badenhorst said he was very pleased with the support shown by the local community. “Filling a shipping container – wow that’s just great,” Mr Badenhorst said.
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Building Mining Communities
The Mining Advocate | January 2010
33
Charity by the truckload Derran Hornery with the 4ULOC cancer unit.
A family business has developed an innovative means of raising awareness and funds for cancer-related causes after a personal tragedy. Becoming known near and far as “the guy with the big pink truck” may take a bit of getting used to for Moranbah’s Derran Hornery. But that recognition is a sure sign of how much the familyrun Hornery Trading Group has achieved in raising cancer awareness and funds thanks to a Kenworth truck with 600hp under the bonnet and a paint job that would not look amiss in Barbie’s dream house. The business bought the truck just months after Derran’s younger brother Lachlan lost his battle with cancer. It then underwent extensive custom detailing work including being emblazoned with Lymphoma Australia feather symbols. For every hour that local mining firms and other operations hire the pink water truck, $20 goes to the Royal Brisbane Hospital Foundation for cancer research, awareness and prevention work as well as assisting the hospital’s Intensive Care Unit. “Every cent we give them goes towards cancer – there are no administrative fees or anything,” Mr Hornery said. The big pink truck has raised about $13,000 since starting such work in late October. It has also gone on show at events such as the Moranbah Relay for Life and the Mackay Convoy for Kids to raise community awareness on cancer, particularly lymphoma - a cancer of the lymph cells, . It’s an effort Mr Hornery feels would have made Lachlan proud. “My brother Lachlan Hornery
was 37 when we lost him to lymphoma cancer in October 2008,” Mr Hornery said. “He left behind five kids, all under 11. “It was a hard time for the family and we spent a lot of time down there in the intensive care unit at the hospital in Brisbane experiencing the suffering of the patients and their families.” While in hospital, Lachlan particularly appreciated the efforts of the nursing staff and had often spoken of assisting in some way if he beat the disease. “He was a horseman and a cowboy, running rodeos and roping shows,” Mr Hornery said. “He would have contributed another way, by running that sort of event. But this is definitely down his alley – exactly what he would have wanted.” The Hornery Trading Group runs a fleet of 30 water trucks out of Moranbah under the business name Hornery Water and Transport. Its work is centred on the local gasfields and coal mines as well as civil road construction projects. The group also runs a pump hire business and is involved in the beef industry. The big pink truck, known as the 4ULOC cancer unit, is a tri-drive twin-steer 10-wheeler Kenworth capable of carrying 24,000 litres of water. Mr Hornery said the truck was currently engaged in a longterm job for Bowen Central Coal Management – the Aquila Resources-Vale joint venture behind the Eagle Downs project.
Photo: Erica Smith
The 4ULOC unit received a good reaction from the public, Mr Hornery said. “People read my name on the back of the shirt and say ‘hey, you’re the guy with the big pink truck’,” he said. “Everybody knows it – it has done its job in terms of raising awareness.” Mr Hornery said the family business supported various local community groups and he had, in the past, considered nominating
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different groups to receive a small percentage of monies raised from a number of the firm’s trucks. But the experience of Lachlan’s battle with lymphoma - and the pain of seeing five small children left to grow up without their father - had prompted him to direct the efforts towards one cause. “When somebody close to you gets a terminal disease – that changes your whole outlook and attitude,” Mr Hornery said.
“You ask ‘why can’t they find a cure?’. Every bit helps.” His father, Percy Hornery, said the family hoped the 4ULOC cancer unit would inspire other companies to become innovative and give a small percentage of their profits to help make a difference for sick and less fortunate people. “A small percentage of their profits will not affect their own lifestyle nor business success,” he said.
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34
Building Mining Communities
Backing for spinal safety initiative Cannington mine has made an ongoing cash commitment to help get a crucial message out into schools, writes Belinda Humphries. The safety messages of an award-winning spinal injury prevention program are reaching more children thanks to funding from BHP Billiton Cannington Mine. A $125,000 donation from the north-west Queensland mine this financial year allowed the Spinal Education Awareness Team (SEAT) to offer the program for free throughout Queensland’s schools, with bookings skyrocketing as a result. And the mine recently made a commitment to support the SEAT program for three more years at $150,000 per year, Spinal Injuries Association executive manager for fundraising and communications, Carol Haffke, said. “This will ensure that SEAT sessions will continue to be offered at no cost to schools around Queensland and northern New South Wales for the foreseeable future and is a huge testimony to the mine’s dedication and commitment to safety and injury prevention,” Ms Haffke said. BHP Billiton Cannington asset leader Bob Fulker said the operation had a long-running relationship with the Spinal Injuries Association. “Seeing how much impact the SEAT program is having across the state reinforces the value of our relationship,” he said. SEAT has been operating as a service of the Spinal Injuries Association for 22 years, sharing safety messages with almost 1.3 million children around Queensland. In that time Queensland has gone from the state with the highest rate of spinal cord injuries to the state with the second lowest rate, according to Spinal Injuries Association chief executive officer Mark Henley. “The more children our presenters can reach out to with their personal and very powerful stories, the better our chance to further reducing injuries that will have a lifetime of consequences,” Mr Henley said. He said the group was on track to achieve its target of speaking to more than 100,000 school students this financial year. “With BHP Billiton Cannington Mine’s generous support as a major sponsor of SEAT, along with our other sponsors, we can for the first time in nearly 20 years offer the program at no cost to schools,” he said. “The feedback we have received from teachers and principals, especially at small schools in regional and remote areas, is that they could never afford the program in the past even though we only charged $1 per child. “Now that SEAT is at no cost for this financial year, we can barely keep up with demand.” Mr Henley said 16,645 children viewed the program in October last year compared to 8885 in October 2008, for example. “That’s an 87 per cent increase in just one month and I hope that BHP Billiton Cannington Mine staff and management are incredibly proud of what they are helping us to achieve,” he said.
January 2010 |
Mining Supporting Communities
BROUGHT TO YOU BY
'ERRMRKXSR
Ernest Henry Mining taking it to the people About 65 people joined Ernest Henry Mining’s community information session at the Cloncurry Shire Hall in December for an update on the operation, including Xstrata’s $589 million plans to extend the life of the mine through underground mining and magnetite extraction. Xstrata Copper - Ernest Henry Mining (EHM) senior community relations advisor
SEAT presenter Scott Stidston speaks with students at Canossa Catholic Primary School in Trebonne, North Queensland. Photo: Ashley Roach
Cancer coffers topped up Rio Tinto Coal Australia has donated $10,000 to boost Cancer Council Queensland’s annual Christmas appeal. The gift adds to significant fundraising efforts by employees at the company’s Hail Creek, Kestrel, Blair Athol and Clermont mines during 2009. These included a $5000 donation from Hail Creek mine towards the “Mackay Room”, part of a new Cancer Council Queensland hospice being built in Townsville. This donation was to a charity of the mine workforce’s choice following their achievement of
The Mining Advocate
reaching a significant safety milestone Cancer Council Queensland chief executive officer Professor Jeff Dunn said the generosity of RTCA and its staff would help the cancer council to expand its services in regional Queensland in 2010 and beyond. “This year, with the help of RTCA and its people, we opened the Central Queensland Cancer Support Centre in Rockhampton, giving people from outlying regions vital access to cancer treatment services and support,” he said.
resourcing g the e future 'ERRMRKXSR
Vicki Wilson said the operation held two such community information sessions each year to provide the public with information on the operation and the opportunity to raise questions or concerns. “Our community information sessions are one of a number of community engagement forums we hold annually,” she said. The operation held its first open day in October 2009 – attracting about 160 people from Mount Isa, Cloncurry and Julia Creek to the site. “We were pleased to have so many people in attendance at our open day and we received some great feedback that will help us to make (the 2010) event even better,” Ms Wilson said. EHM also organises a “neighbours day” each year providing nearby landholders with the opportunity to visit and receive an update on the EHM operation. The 14 pastoralists who attended recently were taken on a trip through the concentrator, to dispatch to see the open pit and to a number of locations on site to view improvements to stormwater management infrastructure.
Comfort for elderly BMA has provided $15,000 for the purchase of high-low beds and pressure-relieving devices for elderly patients at Moranbah Hospital. The donation was partially funded by profits from BMA’s Eureka Accommodation Village wet mess. BMA Goonyella Riverside Mine general manager Steve Rae said the company was pleased to provide assistance to community organisations and facilities. “It is a great initiative to donate the money made by the wet mess at the Eureka Accommodation Village back into our community for important equipment such as this,” he said. BMA also recently donated an additional $5500 to the hospital through Clayton’s Cup funds and money raised at the BMA Intermine Golf Day.
Port of Townsville
The Mining Advocate | January 2010
35
Future bright for trade gateway The corporation managing Townsville’s port is preparing to meet a forecast three-fold increase in cargo over the next 25 years. Port of Townsville Limited has recently produced a development plan to provide current and future customers, stakeholders and the community with guidance on the vision for the Port of Townsville to 2040. The plan outlines proposed short, medium and longterm developments needed to accommodate forecast trade growth in a timely and sustainable manner. Located on the shoreline of tropical North Queensland, adjacent to the Great Barrier Reef Marine Park, the Port of Townsville is a world-class gateway for global trade and investment. The port, which manages about 10 million tonnes of cargo each year, is one of the world’s most diverse base metals export locations and is also Australia’s largest exporter of raw sugar and molasses. It is critical to the regional economy as it is the most efficient link between the mineral
provinces and their national and international markets. Trade at the Port of Townsville is forecast to increase to more than 30 million tonnes in the next 25 years. The Port Development Plan (PDP) outlines Port of Townsville Limited’s (POTL’s) vision for the facility’s developments until 2040 to accommodate projected growth in existing business and new trade prospects. It is the product of ongoing port planning processes which involve consultation with key stakeholders including the Queensland Treasury, Queensland Department of Infrastructure and Planning, Department of Transport and Main Roads, QR Limited, Townsville City Council and port users. The plan is regularly updated to reflect significant changes to key assumptions and development options and reflects recent planning initiatives, in particular the Townsville Port Master Plan, Land Use Plan, City-Port
MV Voge Renate enters the Port of Townsville at dawn.
Strategic Plan, Townsville State Development Area and Eastern Access Corridor Planning. POTL’s vision is to be a leader in the provision of innovative, efficient and effective port services which it strives to accomplish by: • acting commercially and competitively to promote a sustainable economic future for the port, • providing best-practice facilities and services to meet the needs of existing and future customers, • identifying and securing
commercial opportunities, • delivering critical infrastructure to ensure timely and sustainable development of the port, • maximising utilisation of existing resources, and • enhancing environmental performance in all aspects of the corporation’s operations. POTL has embarked on a campaign to increase and diversify trade and improve the flexibility of critical infrastructure to support this vision. This will enable the port to be
Photo: Cameron Laird
a driver of sustainable growth in the region through the delivery of trade, port services and development solutions while obtaining better utilisation and efficiencies from existing port infrastructure. Copies of the Port of Townsville’s Port Development Plan can be obtained by contacting POTL’s business development team on (07) 4781 1500 or info@townsville-port. com.au.
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36
Port of Townsville
January 2010 |
The Mining Advocate
Expansion project under study A staged reclamation of up to 100ha of seabed is among the steps under consideration to help meet future port demand. Detailed investigations have commenced into a proposed major expansion of the Port of Townsville. This will include the completion of an Environmental Impact Statement (EIS) for the project. The EIS will cover a proposal
to reclaim in several stages up to 100ha of seabed to the north of the port over the next 25 years. The staged expansion would provide the port with an additional seven berths and enough land to meet future operational demand. This will boost the import
and export capacity from 10 million tonnes a year to as high as 30 million tonnes per year. The EIS is expected to take two years to complete and will involve several stages of approvals by the State and Federal governments. The preparation of the EIS will include an extensive public consultation period during which the community will be given opportunities to provide feedback and comment. Port of Townsville chief
executive officer Barry Holden said the Port of Townsville was instrumental in driving the North Queensland economy and planning for the future was a top priority. “This is a very long-term project and we are only in the early days of assessing the environmental, economic and social impacts of the proposal,” Mr Holden said. “There are many factors that need to be considered but we will take every possible
measure to find a sustainable and responsible outcome for the region and port users. “This project, from planning through to construction and future operations, will create thousands of local jobs.” Mr Holden said the port had been running at near capacity for the past decade and that expansion of existing trade and new trade would trigger construction for each stage of the expansion.
Land available for development Port of Townsville Limited (POTL) is committed to sustainable planning and development of port lands to promote the economic growth of the facility and ensure efficient services while integrating with and enhancing the surrounding community. The corporation seeks to achieve this objective by • regularly assessing market conditions and providing port infrastructure that meets future growth demand; • optimising the use of land and infrastructure; • ensuring transport connectivity is protected; • ensuring sustainable management of resources; • providing leadership in environmental protection; and • ensuring that impacts on adjoining land uses are appropriately managed and minimised. POTL manages a land and sea jurisdiction of more than 400sq km, including more than 200ha of land that has been developed for port operations. Extensive master planning demonstrates a requirement for more than 100ha of new land to be created over the next 25 years to meet forecast trade growth. The Eastern Reclamation Area within the secured port area commenced construction in the 1980s and is nearing completion. Two corridors for future rail loops have been set aside. These are proposed to connect into the existing rail network in the interim and are in the future proposed to connect into the Eastern Access Corridor rail network. The land is available now for proponents wishing to establish bulk receival, storage and out-loading facilities. Nexus Business Park comprises about 12ha of strategic port land located outside the secured port area, adjacent to the start of the future Townsville Port Access Road. About 5ha of land remains available to port-related business which can enhance economic activity through the port. Lot sizes range from 0.6 to 2ha, with all lots serviced by sealed road access and utilities. For further information regarding the land availability at the Port of Townsville contact the business development team on (07) 4781 1500 or info@townsville-port.com.au.
Cruise ship The World leaving the Port of Townsville in December 2009.
Photo: Cameron Laird
Green light for ocean terminal Queensland Premier Anna Bligh recently announced the State Government had committed $30 million to the construction of the Townsville Ocean Terminal. The new Berth 10 facility has been given the green light without the residential component as previously planned. Ms Bligh said the proposed residential development simply did not stack up. She said also the project would require a
contribution from the Townsville City Council of approximately $20-30 million and $30 million from the Australian Defence Force. Port of Townsville chief executive officer Barry Holden welcomed the announcement from Premier Bligh. “The Townsville Ocean Terminal is a positive development which will give extra flexibility and capability to accommodate cruise and military vessels,” Mr Holden said.
Berth 8 upgrade coming soon In a bid to boost efficiencies and capability of infrastructure at the Port of Townsville, an upgrade for the Berth 8 facility has been earmarked for the very near future. These works are part of the upgrade to infrastructure within the inner harbour which will facilitate the transfer of operations from Berth 7 to Berth 8. The Berth 8 facility is not currently configured to efficiently handle mechanised bulk loading. The upgraded facility will allow for panama-size vessels and will also see the design of a new ship loader capable of loading bulk product at a rate of up to 3000 tonnes per hour. The Berth 6/7 structure was built in 1911 and is currently beyond its design life. Berth 6 has been decommissioned. The Port of Townsville is
MV Ice Moon loads and unloads containerised cargo at the Port of Townsville. Photo: Cameron Laird
working with Berth 7 users to ensure transitions to new facilities are carried out smoothly and with minimal impact to their operations. Once operations are transferred from Berth 7 to Berth 8, the Berth 6/7 structure will be demolished. This presents opportunities
to improve efficiencies at other Port of Townsville berths specifically Berths 4 and 8 - where ship movements are currently constrained due to the proximity of Berth 6/7. Design works are under way and are anticipated to be complete during 2010.
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Case Study: Linatex Preformed Bend
90558_Linatex Full page Ad_F.indd 1
Industry:
Copper Mining
Region:
Australia
Product:
Preformed Hose Bend
Customer:
Xstrata â&#x20AC;&#x201C; Ernest Henry Mine
Current Product Information:
Rubber lined steel bend. 610nb x 90 degrees with 25mm thick
Linatex Product Information:
Linatex Preformed Hose bend. 610nb x 90 degrees with Linatex Premium 24mm thick natural rubber
Result
Product
Life of Product
25mm thick natural rubber
13 weeks
24mm thick Linatex Premium Rubber
13 weeks
Cost Saving
Approximately $55,000 over two years
Wear Performance Advantage
3 times longer than the competition
10/12/09 10:08 AM