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NEWS
The Mining Advocate | January 2013
1
COVER IMAGE: A dragline and electric rope shovel on the march at Peak Downs mine. Photo: Damien Carty
January 2013
FEATURES
3 State of the union
12 Coal and Gas Update News in brief across the coal and gas industries.
Queensland CFMEU head Steve Smyth has signalled a shift away from confrontation towards more proactive discussions with company bosses in the face of a stream of job losses across the state’s coal sector.
14 Industry Update - Hard Rock A comprehensive wrap of exploration and operations in Queensland and the Northern Territory.
5 Flow rider Mine water discharge is under the spotlight again, with this wet season bringing a pilot program for four mines in the Fitzroy River system and industry hopes of further breaks for waterlogged coal sites. Much will come down to the weather and the flows it brings to local waterways.
16 Between Shifts 19 Building NW Queensland
11 Focus on Dalby
20 Building Mining Communities
The Mining Advocate launches a new series on regional centres on the frontline of the resources industry boom with a profile on this Western Downs hub, 210km west of Brisbane.
22 Wet Season Feature
19 Miles of history
24 Drilling and Exploration
Mount Isa marks 90 years since prospector John Campbell Miles discovered the ore on which the mighty mining city has been built. This year is also the 50th anniversary of Mount Isa winning cityhood, and a host of celebrations are planned.
25 Living Remotely 26 Emergency Response and Rescue
27 Jet stars
27 Big Boys’ Toys
Check out the waterjet-powered Flyboard – a YouTube sensation – in our Big Boys’ Toys section. Australian dealer Peter Hendra tells of the excitement of the ride, something readers can experience by getting their hands on a kit or having a go with one of the commercial operations kicking off around Queensland.
28 Personal Investment
CONTACTS p. (07) 4755 0336 f. (07) 4755 0338
Managing editor:
......................... Robert
Advertising booking deadline March edition: February 19
Dark m. 0417 623 156
Email: ............................................................... info@miningadvocate.com.au
Journalist: ............................... Bruce Macdonald m. 0418 154 016
Address: ......................................... U3/11 Carlton St, Kirwan, Q, 4817
Sales: ................................................p. (07) 4755 0336 m. 0417 623 156
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Client Services:..................................Marion Lago m. 0414 225 621
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
The Mining Advocate | January 2013
3
Union signals change of tack The coal downturn is influencing the industrial relations landscape, writes Bruce Macdonald. Queensland CFMEU head Steve Smyth is determined to stem the loss of jobs in the mining sector during 2013, not by confrontation but by proactive discussions with company bosses. The union’s mining and energy division district president said some 5000 coal jobs were lost last year as commodity prices declined and fierce cost-cutting measures were implemented. “2013 poses some problems but I believe the (Queensland) coal industry has a bright future,” he said. “The CFMEU has tended to be reactive to the industry but we must now see how we can engage with employers.” Mr Smyth said he would be advocating a proactive approach from the union, signalling a shift away from direct confrontation with mine managers to a position of negotiation with mining company executives before disputes escalated. The deal between unions and the BHP Billiton Mitsubishi Alliance last year covering mining sites in the Bowen Basin was seen as a victory for both sides but the two years of negotiations were costly. The unions involved remain opposed to any increase in contract labour on the BMA sites, which could be a flashpoint. Safety conditions will also continue to come under scrutiny. Mr Smyth conceded
that there could be issues in the construction division of the union in 2013. He said union disputes at Gladstone, where Bechtel is involved in the construction of three major LNG plants on Curtis Island, could well continue. The Gladstone community has been divided over the work, with local tradesmen - particularly members of the Electrical Trades Union - alleging fly infly out workers have been hired over them in contradiction to pledges from contractors to hire locally. Protests were held recently over three ETU members being sacked over work safety questions. A Griffith University academic specialising in business and industrial relations said he could see further cost cutting in the coal mining industry during 2013 and possibly beyond. Brisbane-based associate professor of business Bradley
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Steve Smyth CFMEU district president
Bowden said a number of the larger coal exporters with marginal mines could rethink their position on the hours worked by employees and opt for insourcing rather than renew contractor agreements in 2013. Prof Bowden said that even though it went against management principles after they fought so hard to get rid of the standard working week in the coal industry, the conditions could be right to explore the option of shorter working weeks. Australian Mines and Metals Association manager - mining, Ian Turner, said the wider resources industry and particularly commodity mining often experienced cyclical periods of insourcing and outsourcing as operators responded to varying business conditions. But he stressed there was no trend being experienced across the industry.
Two massive mining machines have made a four-day march to take up duties at the northern pits of BMA’s Peak Downs mine. The Marion 8050 dragline and a P&H 4100XPC electric rope shovel crossed the Peak Downs mine access road and the rail line associated with the Oakey Creek rail corridor to reach their new work site. BMA head of production - mining, Brandon Craig, said the December equipment relocation was a unique event and a major logistical and engineering exercise to manage. BMA said the dragline weighed 3400 tonnes, had a 99m boom and could walk at a speed of 120m per hour, taking four days to make the trek from Peak Downs’ southern pits. Each of the machines has a payload capacity in excess of 100 tonnes.
Industry briefed on key Galilee Basin rail links Aurizon will be ready to transport coal from the Galilee Basin in 2016, project approval manager Glenn Baird says. Mr Baird told a recent industry forum in Bowen that Aurizon, formerly QR National, had realised significant milestones during 2012, the latest in September when the terms of reference for an environmental study for the rail plans were announced. He said Aurizon backed the east-west rail corridor option outlined by the Queensland Government and proposed creating 190km of new rail as well as 245km of refurbished lines. Only days later in Townsville, the community engagement manager for the massive GVK Hancock thermal coal project in the Galilee Basin told a packed gathering that first coal from the Alpha operation was expected to be mined in the third quarter of 2016. Grant Keenan said first coal would be ready for export in the second quarter of 2017 via a privately built 495km south-north rail link to a new terminal at Abbot Point near Bowen.
4
NEWS
January 2013 |
The Mining Advocate
Bright sparks An NRG initiative lifting powerhouse performance has won industry kudos. A Gladstone team has won a national award for an asset maintenance project which has given a 36-yearold plant new spark. NRG Gladstone Operating Services recently received an Australian Engineering Excellence Award for its initiative at the Gladstone Power Station, Queensland’s largest electricity plant. Manager technical services Ben Hayden said the news had been met with a lot of excitement at the site. “We’re ecstatic and
surprised with what we’ve achieved and the recognition for that,” he said. Since the new system was introduced in 2008, he said plant availability (the proportion of time the power station is online) had risen from 82 per cent to 94 per cent. The Asset Management Society of Engineers Australia nominated the Gladstone project, which judges said had demonstrated why maintaining an investment in annual maintenance
Ben Hayden with the engineering award.
Photo: Chrissy Harris
could save long-term costs to business and maintain productivity. NRG Gladstone Operating Services has been running the coal-fired 1680MW power station since 1994 on behalf of a multinational joint venture. Mr Hayden said plant performance had deteriorated within the last decade, with a number of significant failures in the lead-up to the decision in 2007-08 to overhaul the site’s approach to asset management. The site drew on the guidelines widely used in United Kingdom power stations under PAS 55 (Publicly Available Specification 55) to build its own internal asset management system. Mr Hayden said the site now took a more holistic approach to asset management and viewed maintenance in a more long-term way. “We previously had used a lot of short-term thinking regarding how we dealt with problems rather than taking a whole-of-life approach,” he said.
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NEWS
The Mining Advocate | January 2013
5
Watershed season for coal Mine discharge conditions are under the spotlight again, writes Belinda Humphries. This wet season should test new procedures hoped to help Queensland’s coal mines rid themselves of the bugbear of water built up from rainfall and flooding over recent years. A pilot program approved by the Newman Government saw four BMA mines begin the season with revised environmental authorities for water discharge and the Queensland Resources Council expects more operations to join them. “There are a number of companies who will look to seek similar amendments throughout the Fitzroy Basin,” QRC chief executive Michael Roche said. “Certainly it’s the QRC’s expectation that it will be something that can roll out across the industry before the end of this wet season.” The pilot program allows Saraji, Goonyella Riverside, Peak Downs and Norwich Park mines to discharge higher salinity water in the upper Isaac River area subject to there being adequate flow in local watercourses. While other mines in the massive Fitzroy River catchment area are operating under water discharge changes approved in 2011 - described by the QRC as an improvement on previous restrictions - Mr Roche said the pilot took things a step further by focusing on water quality downstream, taking dilution into account, rather than at the point of discharge. This wet season would hopefully bring opportunities to see the new style of environmental authority in action, he said. Environment and Heritage Protection Minister Andrew
Powell said the pilot mine water release would be strictly regulated and monitored to ensure there were no impacts on water quality and ecosystem health. The Rockhampton Regional Council has voiced concerns about impacts to water quality in the Fitzroy River due to mine water discharges throughout the basin and sought clarification from the State Government on how the pilot would be managed. “Mr Powell responded to the mayor’s letter in December 2012 assuring council that the guiding principles for any decision were based on residents receiving reliable safe drinking water in the Rockhampton region,” a council spokeswoman said. Queensland coal mines are holding about 250 gigalitres of water they would like to discharge, according to the QRC. It blames the Bligh Government’s “mismanagement” of the extreme weather events of the 2011 season for costing Queensland $9 billion in coal exports due to the disabling effect of built-up water on operations. Sinclair Knight Merz mine water services business manager Adrian Howard said much of the “legacy water” had built up from as far back as 2008, meaning mines were already quite full before heavy rainfall events in the 2010/11 wet season. “That was the tipping point where it became unmanageable,” he said. The lessons of the past few years had sparked not only regulatory changes regarding water discharge conditions, but heavy mining company investment in infrastructure –
particularly rapid release storages, Mr Howard said. “I think it’s a trend across the entire industry that they have invested heavily in understanding the balance of water on their sites and they’ve invested in infrastructure required to manage their inventory in a flexible enough manner to have a good balance in place,” he said. Mines needed to store some water for operational purposes and in drier years many had been geared heavily towards harvesting rainwater rather than shedding excess, Mr Howard said. A lot of work was being done with computer modelling to understand the water balance on mining sites and predict risk during heavy rainfall events. While regulations were now far more workable and good infrastructure was in place, the coal industry needed “a normal year” weatherwise to help reduce the water inventory, he said. “Once we get back to business as usual, a lot of this investment in infrastructure and in understanding the science of water
Queensland coal mines are holding about 250 gigalitres of unwanted water.
balance will really benefit the industry as a whole,” Mr Howard said. “It would be quite extreme circumstances that would lead us
to a similar situation as we have now, now that all this knowledge has been put into good practice.” • Wet season feature - Pages 22-23
Salinity trading floated The Newman Government is investigating the feasibility of establishing a salinity trading system for the Fitzroy Basin – something the Centre for Water in the Minerals Industry at UQ has been looking into for the QRC. Deputy Premier Jeff Seeney said a permanent strategy for water management was needed rather than the ad hoc decision-making of the past. “We need a solution that is firmly based on science, establishing for the first time a set of principles about how excess water from the coal mines is released into the river system,” he said. QRC chief executive Michael Roche said the UQ study had found the Hunter River salinity trading scheme in NSW had been relatively successful, but
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demonstrated that the Fitzroy River Basin was a far more complex system. “People in industry and government are studying that work and having a think about the appropriate way forward,” he said. “I expect what they come up with will be some sort of hybrid.” Salinity trading is based on the release of water during flow periods where the river has the capacity to absorb a salt load without impacting on the environment. River monitoring determines when discharges are possible and tradeable salinity credits are used to determine the total amount of salt that can be discharged.
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NEWS
The Mining Advocate | January 2013
7
The ‘glass half-full’ downturn Mining and energy fortunes are a mixed bag as 2013 kicks off, writes Belinda Humphries. Roaring gas growth and a promising project pipeline have contributed to a “glass half-full” outlook for the Queensland resources sector amid a general industry downturn. In the state’s coal heartlands – which have seen months of cost cutting and job losses – a regional development head says there is a definite upside to the sector slowdown. And the Queensland Resources Council is talking of a North West Mineral Province renaissance. Mackay Whitsunday Regional Economic Development Corporation chief executive officer Narelle Pearse said the high Australian dollar, dropping coal prices and increasing production costs had a marked impact on the region in the last six months of 2012. As mining houses moved to slash costs the pressure was passed on to the supply industry and jobs were lost, she said. “But because we came out of such a tight skills market we
haven’t actually seen a change in our employment figures,” she said. “In sectors such as agriculture, where they just couldn’t get skilled workers, people who were potentially losing jobs in mining could be redeployed – so it has created a balance.” With the Daunia, Caval Ridge, Broadmeadow extension and Grosvenor mine projects under way, she said the region was still forging ahead – “just not at the speed we were before, which is probably a good thing.” “We were struggling before to get enough people, our cost of living was going up too quickly, we had unaffordable housing – there needs to be a bit of rationalisation,” Ms Pearse said. It was definitely a “glass halffull” situation, with the medium to long-term demand for coal and the region’s project pipeline looking strong, she said. That pipeline includes the
$5 billion China Stone project – a MacMines Austasia proposal to develop a coal mine about 300km west of Mackay from 2015. Queensland Resources Council chief executive Michael Roche said all parts of the resources industry were facing cost challenges. However he believed the gas
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sector had probably put on as many people as the coal sector had lost this financial year – and maybe more. “To the extent the coal sector has been quieter, that is probably bringing some relief for others,” he said. The Australian Petroleum Production and Exploration
Association says CSG-LNG projects worth about $60 billion are progressing in Queensland, employing more than 18,500 people. Meanwhile Mr Roche said the quiet achiever had been the steadily expanding north-west Queensland minerals sector – “which keeps on keeping on”. The QRC recently hailed the MMG board’s endorsement of the Dugald River project as another milestone in a North West Mineral Province renaissance and Mr Roche said the 2012 decision to allow uranium mining in Queensland was an extra shot in the arm for the region. He said also there had been some recovery recently in coal prices, which bottomed out in the first half of 2012-13, and that as of the end of November the state’s coal industry was producing more coal at lower costs. In addition to costing about 5000 jobs throughout the Queensland coal industry mostly contractors - the belttightening of late 2012 had
knock-on effects to a range of mining service companies, he said. “Recovery is not going to be like the quick recovery we saw after the GFC. I think it will be a steady recovery and the industry’s focus will remain on keeping costs down and driving up volumes, selling more coal,” Mr Roche said. He said also the QRC remained hopeful Queensland would see at least one of the coal mega-projects proposed for the Galilee and Surat basins reach financial close in 2013. “The companies are very focused on making sure that what they can deliver is a project that brings those mines in at lower cost quartiles globally – if they can’t do that then those projects won’t see the light of day,” Mr Roche said. But he said the proponents behind the Wandoan, Alpha, Carmichael and China First coal projects were giving off a confidence that they believed it was achievable. The $6.1 billion Carmichael coal mine and rail project alone is expected to create about 8500 jobs – 5200 jobs during construction and 3290 in operation.
Uplifting trend in project cargo at Townsville Two 100-tonne cranes lift a box holding one of the generators for the Diamantina power station at Mount Isa.
The Port of Townsville has seen a steady increase in project cargo bound for Queensland mining and energy developments in recent months. Modular pieces for Mount Isa’s Diamantina power station, fabricated steel for BMA’s Caval Ridge mine construction in the Bowen Basin and accommodation units for other mine projects were among the break-bulk and heavy-lift component imports late last year. Port of Townsville Limited chief executive officer Barry Holden said an increase in such cargo had been noted in the second quarter of this financial year. “The volume isn’t huge when compared to our overall trade profile, but the value is in what
the cargo represents; investment, growth, and opportunity, which will ultimately result in much greater tonnages leaving Townsville and Queensland in the future,” he said. “A lot of focus is placed on what comes out of the ground, but without critical inputs like the break-bulk and cement imported over Berth 4, the machinery and tyres over Berth 3, or the fuels over Berth 1, few mining operations would get that far. “We expect project cargo trade to continue to grow in Townsville as life-extension projects and new operations come online. Things are not necessarily easy in the mining industry, but we think there is plenty to be excited about for those with a long-term view.”
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REGIONAL ROUND-UP
January 2013 |
The Mining Advocate
Lower Gulf
Collinsville
MMG is continuing work on a scoping study into the potential to produce phosphate at its Century operation in the lower Gulf region once the site’s opencut zinc mine is exhausted. Queensland operations manager Mark Adams said they were evaluating two phosphate deposits on MMG’s exploration leases along with the potential to use MMG’s infrastructure in the Gulf to process the material and the phosphate market. This was just one of the options MMG was considering to utilise the significant and valuable infrastructure it had in the Gulf post-2016, he said. Mr Adams said there were a number of smaller zinc-lead-silver vein-style deposits in the area which MMG was evaluating to determine the potential for a small mines operation. “We undertook a $4 million program in 2012 as part of this work to evaluate these deposits. The next phase of this aggressive drilling program will continue in 2013,” he said. Mr Adams said MMG’s investment in such programs showed its commitment to identifying all opportunities for an operations presence in the lower Gulf for some time. “That said, all mines are finite resources and we will continue to plan for the eventual end of production at Century, whenever that may be,” he said.
Collinsville residents remain cautiously optimistic about the town’s future, despite the loss of 95 jobs from a local coal mine, Mackay’s Daily Mercury reports. Xstrata Coal said it had been working with Collinsville mine operator Thiess to review operations and that 95 positions were expected to be made redundant in January. Collinsville Town and Country Hotel owner Lesa Forsyth told the Mercury that while her patrons were concerned about the job losses, they were also looking forward to new coal projects in the Galilee Basin getting under way. “It’ll be quiet for a little while but certainly things will pick up, as they usually do,” Ms Forsyth said. CFMEU spokesman Steve Pierce has accused Xstrata and other mining companies of exaggerating the severity of the downturn in export coal prices to justify job cuts. He told the Bowen Independent the impact on Collinsville would devastate surrounding areas. Meanwhile 108 people are being made redundant in January from John Holland’s contract operations at the Isaac Plains coal mine outside Moranbah after the mine owners decided to reduce production.
Gladstone The captain of a coal carrier that caused “unprecedented’”damage to the Great Barrier Reef off Queensland has been fined $25,000. Jichang Wang mastered the Shen Neng 1 coal carrier when it smashed into Douglas Shoal off the central Queensland coast in 2010, spilling more than 3 tonnes of heavy fuel oil, after travelling almost 30km off course. ABC News reported that Wang had entered a guilty plea in Gladstone Magistrates Court to the charge of causing damage to a marine park. Magistrate Mark Morrow said he took into account Jichang Wang was not steering the ship at the time but says he was ultimately liable as captain. The ship’s second in charge has been sentenced to three months in jail over the incident. Greens Senator Larissa Waters called for a rethink of shipping policies to prevent a repeat of the incident. But Federal Member for Flynn Ken O’Dowd told ABC News regulations had been tightened up and there was no excuse for a captain to not be at the wheel while he was in these dangerous areas of the reef.
Mount Isa A proposal to develop an accommodation village containing 960 single-occupancy units and 40 townhouses has sparked debate in Mount Isa. Aligned Resources Group plans to develop the Stockyard Village complex about 1km from the Mount Isa airport. ARG chief executive officer James Mollison told The North West Star the project would support growth in the community by giving workers a taste of the region before committing to relocating their family. But State Member for Mount Isa Robbie Katter told the paper there was no doubt the proposed village was aimed at fly in-fly out (FIFO) workers and he did not believe it would be a positive move for the city. The Mount Isa Chamber of Commerce gathered members’ feedback on the proposal, which is before the Mount Isa City Council. President Lorena Martyr said members’ concerns had primarily centred on FIFO workers not contributing to the local economy or community. However some members commented that the development could help lower local rents and assist with staff retention.
Clermont The closure of Rio Tinto’s Blair Athol coal mine in late November marked the end of an era for many Clermont residents, the Daily Mercury reported. “Blair Athol has been part of the community for a long time, so people are just sad,” Breckon Steel Fabrications owner Paul Breckon told the paper. “Obviously there will be people leaving town and that will affect businesses, (like) the grocery shop, the hairdressers.” The mine – which began exports in 1984 - produced almost 250 million tonnes of thermal coal during its lifetime, with the operation gradually scaling back over the last five years as the main coal seam was mined out. Rio Tinto Coal Australia in August 2012 announced it was bringing forward the end-date for operations at the Blair Athol mine amid poor thermal coal prices. Blair Athol operations employed about 170 staff and contractors.
Roma The State Government has extended the exclusive Qantaslink contract for the Brisbane-RomaCharleville run for another two years despite a push from regional groups to deregulate Roma airport. The Chronicle reported that a delegation including Toowoomba and Surat Basin Enterprise chief executive officer Shane Charles and regional mayors had been discussing the issue with Queensland Transport Minister Scott Emerson late last year. But a spokesperson for Mr Emerson told the paper in December that, with contracts for regulated routes due to expire in March 2013, all had been extended to allow a proper review of deregulating these routes and to ensure continuity of services for regional Queensland. Mr Charles had argued that the case for deregulating the Roma airport was extremely strong. “There is demand for a regular air passenger service between Toowoomba and Roma and a number of carriers have shown interest in providing this service,” he told The Chronicle.
NEWS
The Mining Advocate | January 2013
9
Mining machinery sales strong Nationwide industry data and local experience reflect firm demand, writes Belinda Humphries. Sales of new construction and mining equipment in Australia hit an all-time high in 2012, latest figures show. A report by DataMotive on behalf of the Construction and Mining Equipment Industry Group shows new retail sales increased 18.5 per cent in 2012 compared to 2011 (based on January-November data). While the organisations did not detail the actual volumes involved, they said the 2012 sales of mobile equipment had exceeded the previous highs of 2008. And DataMotive group manager David Sprague believed there were encouraging signs the market would continue to grow. Demand at Xstrata Mount Isa Mines’ recent equipment auction exceeded expectations, according to Graham Messer Industrial Auctioneers and Valuers. Director Graham Messer said the vast majority of the 890-plus lots on offer at the auction in late 2012 had sold, with the exception of some smaller items. “The mining industry is experiencing a downturn at the moment; however, demand for second-hand equipment is still
quite good as smaller and mid-tier mining companies appear to be purchasing late-model, secondhand equipment as opposed to the more expensive, high value new plant,” he said. Xstrata Mount Isa Mines holds annual public auctions to sell retired underground mining equipment, light vehicles, disused spare parts, building materials and other items no longer useful to its operations. Mackay-based Best Tractor Parts eastern region sales and rental manager Mark Camilleri said 2012 had been a busy year for sales and rentals of new and used machines, although things had slowed towards the end of the year. “We’re dealing more with the owner-operators of the mines. When they start to put the contractors off they still need machines,” he said. “We still have the majority of the (rental) fleet working and machine sales haven’t been too bad.” Mr Camilleri said the parts side of the BTP business was feeling the industry downturn more as people held on to their money rather than stocking up on spares. Queensland and Western
Lots ready for sale at the Xstrata Mount Isa Mines auction. Photo: Roslyn Budd
Australia were the strongest states for construction and mining equipment sales in 2012, followed
by NSW and Victoria, according to DataMotive. Nationwide sales of dozers, dump trucks, hydraulic
CuDeco steams ahead with port plans Emerging miner CuDeco is living up to its mission statement, “The New Force in Copper”, after completing negotiations with the Port of Townsville to lease 1.5ha of land within the port precinct. CuDeco logistics manager John Green told a packed Townsville industry breakfast gathering that the deal could see as much as $800 million in product move through the port per year. “The port lease is in place and we have all the approvals for the port bulk storage load-out facility in place. We hope to be building by May,” Mr Green said. Stage One of the port project - expected to
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excavators and wheel loaders increased by 81 per cent, 71 per cent, 22 per cent and 18 per cent respectively. Meanwhile Queensland’s Crime and Misconduct Commission (CMC) has warned heavy machinery is being increasingly targeted by thieves – particularly organised crime groups. Assistant Commissioner Kathleen Florian said organised heavy equipment theft occurred mostly in rural and regional areas, with particular hotspots including Toowoomba, Dalby, Mackay and Rockhampton.
cost about $22 million to build - will yield a storage capacity of 120,000 tonnes, with plans in the pipeline to to increase that to about 400,000 tonnes at a cost of about $15 million. A potential $100 million third-stage development involving the Port of Townsville’s outer harbour berths was also flagged. CuDeco is developing the Rocklands Group copper project about 15km from Cloncurry in north-west Queensland. Mr Green said the mine - under construction - was “world class” and when fully operational could have an annual mill throughput of 3 million tonnes of high-grade ore.
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The Mining Advocate | January 2013
In a new series, The Mining Advocate profi les regional communities feeling the impact of mining and energy development. We start with Dalby, 210km west of Brisbane on the Darling Downs. Bruce Macdonald reports. Dalby is one of those iconic country towns that has forged its identity upon the rich black soil of the region. Settled in 1840 by Henry Dennis and visited by explorer Ludwig Leichhardt in 1844, Dalby sits on the junction of the Bunyan, Moonie and Warrego highways. Officially proclaimed a municipality in August 1863, Dalby morphed into the Western Downs Regional Council which incorporates six shires - as a result of the Labor State Government’s initiative to streamline Queensland councils in 2007. Five years on, Dalby is a town undergoing a major transformation. The Western Downs is the site Australia’s richest grain and cotton growing areas and has a thriving livestock industry, with Dalby boasting the largest oneday livestock market in Australia. But it’s riches beneath the ground that are changing the face of Dalby more dramatically than anything in the town’s history. A recent Queensland coal inventory places thermal coal resources in the Surat Basin at 4 billion metric tonnes. And then there is the coal seam gas (CSG) potential which is still to be tapped. That is wealth Western Downs mayor Ray Brown describes as “enormous”.
Ray Brown Western Downs mayor
Cr Brown grew up in the Moonie district with an oil field in the “backyard” of the family farm. He has a philosophy that folk on the land can co-exist with the mining industry. Cr Brown is adamant that he and the eight elected councillors who serve the ratepayers of the WDRC are up to the challenges ahead. But Cr Brown admits that the face of the community is changing, as is the need for infrastructure, particularly in the area of housing. “I believe the greatest wealth we have are the people in our community and it’s our responsibility to look after them,” he said.
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Dalby
Cr Brown said while Dalby boasted a new $50 million shopping complex, water treatment plant, $20 million worth of improvements to the hospital, waste transfer facility and an upgraded aquatic centre, energy sector infrastructure dwarfed the dollars spent on civic infrastructure in the area. Work on the $66 million thermal solar Kogan Creek power station upgrade is three quarters complete; stage three of the Braemar Power Station (stage two cost $545 million) and the gas-fired power plant at Daandine ($60 million) underscore the scale of ongoing development. Cr Brown said the region’s population had grown from 30,000 to 34,000 people in the past five years, with about
12,000 people living in Dalby. He said those numbers did not truly reflect the influx of people into the community. “We have 6800 personnel in (mining) camps and that number will swell to 12,000 in January,” Cr Brown said. The veteran of 22 years in local government said he expected the official population for the region to top 40,000 within the next 10 years and he sees no slowdown in sight. Cr Brown believes the biggest challenge in the years ahead is to create affordable housing for people working in the service industries who don’t command big wage packets.
“We want people to live here,” he said. “But with rents in some places between $1000 and $2000 a week, it is getting increasingly difficult.” Cr Brown said he’d had “frank discussions” with the State Government about the release of Crown land around Dalby to build affordable housing for community members who were finding it a struggle to remain in the area. The Western Downs Housing Trust has been established to address the issue of the council’s larger housing strategy.
Forging a place amid the resources industry boom Foundries in country centres were a common sight in the 19th and 20th centuries but the march of time has seen them disappear at a rapid rate. However the family-owned White Industries foundry continues to forge ahead as managing director and second generation metal worker Bruce White adapts the business to the changing times. “We have gone and sought business outside of Dalby,” he said. “The rise of China (as an economic powerhouse) and the GFC have impacted the role of foundries in Australia.” The mining boom in Australia
has played a significant part in the continued viability of the Dalby business as others close with alarming regularity. Mr White sets up shop at trade shows and field days to showcase what his business can deliver. He has struck a partnership with the Mackay branch of Central Queensland Mining Supplies manufacturing bucket teeth for draglines, lip liners and bushes among other integral castings. The business also makes components for Sydney-based Liquip, a supplier of parts to the petroleum industry, as well as castings for the big five in the Australian water market, Weir
Minerals, Multiflow, KSB, Tyco and Flowserve. White Industries started as a two-man operation in the 1960s and now has about 50 employees. Mr White’s business remains competitive by using the latest equipment sourced on the world market to manufacture steel and iron castings which can compete with China on the open market. And his challenge for the future? To tap into the mining boom right on his doorstep in the Surat Basin. “It’s been difficult,” Mr White said. “But we will keep trying to crack that market.”
White Industries technical manager Simon Kay, foundry manager Mic Shelford and managing director Bruce White with rope sheaves produced at the Dalby operation.
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INDUSTRY UPDATE COAL AND GAS
Port plans power up Adani Mining has appointed Sinclair Knight Merz to provide engineering services for the Abbot Point port expansion near Bowen. The expansion project includes a second 2.75km jetty with associated approaches, roadways and conveyors, creating two new berths. When complete in 2015, the new infrastructure will more than double the port’s capacity. The Abbot Point expansion is a key step in Adani’s plans to invest up to $10 billion over the next decade in the proposed Carmichael coal mine in the Galilee Basin and associated infrastrsucture. Meanwhile, the Queensland Government is seeking registrations of interest to participate in the development of further export coal terminal capacity at Abbot Point.
Caval Ridge contracts Thiess has won two new contracts worth about $220 million for construction work at BMA’s Caval Ridge mine project, south-east of Moranbah. The new contracts are for coal handling and preparation plant (CHPP) work for about $125 million and a rail loop and holding roads for about $95 million. “We’re already delivering major site preparation and drainage works at Caval Ridge,” Thiess managing director Bruce Munro said. Monadelphous Group is also carrying out work to the value of about $100 million for the coal handling plant.
Rail hub expansion Asciano’s coal haulage division, Pacific National Coal, has started work on a $20 million expansion of its Nebo train maintenance facility to meet additional customer demand. The project has been fast-tracked following an agreement to provide maintenance and daily servicing for BMA’s four new train sets when they arrive in the second half of 2013.
January 2013 |
extend the demonstration phase of the project, the Australian Coal Association said industry would commit a further $9 million to allow it to run well into 2014.
Open-cut option MetroCoal and joint venture partner SinoCoal Resources have identified a potential open-cut resource at the Goombi deposit in the Columboola project area, paving the way for an early start to the Surat Basin coal operation.
The Solar Dawn Consortium has confirmed it will no longer pursue development of its proposed 250MW solar thermal power facility near Chinchilla in south-west Queensland. This followed the Australian Renewable Energy Agency’s (ARENA’s) announcement that it had decided not to contribute funding for the $1 billion project, proposed by AREVA Solar and Wind Prospect CWP.
More at Moorlands Cuesta Coal has announced a resource upgrade to 53.4 million tonnes at the Moorlands deposit within the company’s West Bowen project. Cuesta will undertake a mine scoping study this year for the deposit, 14km west of the Blair Athol coal mine in the Bowen Basin.
Callide Oxyfuel milestone Construction and commissioning of the $208 million Callide Oxyfuel Project’s carbon capture technology is complete, heralding the project’s move into the demonstration phase. The carbon capture project, outside Biloela in central Queensland, aims to demonstrate how the technology can be applied to an existing coal-fired power station to produce electricity with significantly lower emissions. The Australian coal industry initially committed $67.9 million to the Callide Oxyfuel Project through its world-first voluntary COAL21 Fund. Following the Australian Government’s announcement in December of additional funding of $13 million to
Carbon Energy fined Carbon Energy has been fined $60,000 and its executive officer Andrew Dash fined $2000 over the release of process water from an underground coal gasification (UCG) trial plant between Dalby and Chinchilla in 2009. The company said it had pleaded guilty to three summary charges brought in the Brisbane Magistrates Court despite the fact there was no environmental harm. Carbon Energy pleaded guilty to two counts of contravening a condition of an Environmental Authority and one count of failing to notify the Department of Environment and Heritage Protection as soon as practical. Mr Dash pleaded guilty to failing to ensure that written notification was given to DEHP. Carbon Energy said the court had accepted that he had relied upon advice from the then general manager operations that suitable notifications had been administered, which was later found to be incorrect. Environment and Heritage Protection Minister Andrew Powell said the
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Longwall mining potential
Solar Dawn dropped
The companies recently announced an indicated opencut resource of 31.1 million tonnes, with a total opencut resource of 45 million tonnes in the area.The total Columboola resource stands at 1.76 billion tonnes and the joint venture remains committed to a longer-term plan to develop a large underground longwall mine.
The Mining Advocate
Carbon Energy says it has identified at least three longwall mining areas, each with the potential of mining 5 million product tonnes per annum of thermal coal, following the completion of its conceptual mining study across its coal tenements in the Surat Basin. The company has previously reported a JORC inferred resource of 1.4 billion tonnes across its 1400sq km of exploration permits for coal in the area. It plans to use funds generated from monetising its coal assets to further develop its core business of providing underground coal gasification technology and services.
Engineering excellence Fae Martin has been named Professional Engineer of the Year and Hamed Kafashzadeh the Young Professional Engineer of the Year at the 2012 Mackay Region Engineering Excellence Awards. Aurecon took out the industrial development and manufacturing category as well as the award for project infrastructure, while Mashumba Civil Engineering received a gong for project management.
New directors for MAIN The Mackay Area Industry Network (MAIN) has welcomed two new directors to its board following the annual general meeting in November. Hastings Deering area manager Brendan Webb and Mackay Sugar milling operations manager Jason Lowry were appointed to the positions following a vote by MAIN members. RSEA business development manager Pete Mizen has also joined the board as an independent director. MAIN recently became a Registered Training Organisation and plans to offer subsidised training options designed to help members achieve their goals.
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INDUSTRY UPDATE COAL AND GAS
The Mining Advocate | January 2013
QGC contracts abound QGC has awarded earthmoving contracts totalling more than $279 million to five Surat Basin businesses.
Chinese deal China National Offshore Oil Corporation has made a deal with QGC parent company the BG Group for a stake in some upstream tenements and the first train of the liquefaction facility in its Queensland Curtis LNG project for $1.93 billion.
The businesses will do earthwork for well sites and roads for up to three years in QGC’s Surat Basin gasfields.
The recent heads of agreement also covers the sale of liquefied natural gas from BG Group’s global LNG portfolio.
Meanwhile Transfield Services has won a QGC contract worth more than $200 million over five years for regular maintenance on gasfield and pipeline facilities for the Queensland Curtis LNG Project. Transfield Services will open an operational base in Chinchilla.
Under the LNG sale agreement, BG Group will supply CNOOC with 5 million tonnes per annum of LNG for 20 years beginning in 2015.
A 1700-room construction camp has officially opened on Curtis Island for workers building the Queensland Curtis LNG (QCLNG) plant. Bechtel Oil, Gas & Chemicals is building the plant on behalf of natural gas company QGC, and the camp is intended to help ease accommodation pressures in Gladstone. More than 2000 people currently work on the QCLNG site, where construction of two LNG storage tanks and the deepwater jetty is well under way.
Housing strategy QGC has awarded contracts to two Queensland companies to build 27 homes in Chinchilla, Miles and Tara in the Surat Basin gasfields. The natural gas company is investing more than $13 million to build the properties as part of its commitment to ease housing pressures during the construction of QCLNG. QGC has entered into contracts with Surat Basin Builders, based in Chinchilla, and Sunshine Coast company Vantage Holdings Australia to build the homes, which are due for completion by the end
Brisbane B risbane
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of 2013. QGC is investing more than $60 million project-wide as part of its integrated housing strategy.
The successful contractors include Bruhl Roadworks and Earthmoving of Tara, Mike Jones Earthmoving of Wandoan, Ostwald Bros of Dalby, Jeff Reid Earthmoving of Emerald, and Clein Excavations and Tipper Hire of Chinchilla.
Open for business
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This is on top of a 3.6mtpa LNG sale agreement signed with CNOOC in March 2010 – making BG Group the largest supplier of LNG to China.
GLNG project expands The State Government is seeking public input on the draft terms of reference for an environmental impact statement for a significant expansion of the Santos GLNG project. The expansion involves plans to progressively develop coal seam gas reserves in the Surat and Bowen basins by drilling additional wells over the next 20 years, and is in support of the GLNG Project, but may also supply gas to third parties, including domestic and/ or export customers. “The Santos GLNG gasfield development project covers 35 petroleum tenures, taking in parts of the Maranoa, Western Downs and Central Highlands Regional Councils and Banana Shire Council, in the vicinity of Roma, Wallumbilla, Miles, Surat, Wandoan, Taroom, Injune and Rolleston,” Queensland Deputy Premier Jeff Seeney said.
Gas hub ramps up APA Group will expand compression capacity and associated services at the Wallumbilla gas hub in Queensland.
Glladstone Gladstone G
The LNG boom in Gladstone is providing a boost for the Gold Coast marine industry with a new fast ferry, MV Riverside Mandalay, launched recently. Riverside Marine Gladstone general manager Angus Campbell said it was the third ship his company had commissioned on the Gold Coast. The 34m MV Riverside Mandalay was ordered to transfer Bechtel workers to and from the LNG plant construction sites on Curtis Island off Gladstone, supporting its two Gold Coast-built sister ships, MV Avalon and MV Catalina. MV Riverside Mandalay is built from aluminium alloy and has capacity for 399 passengers.
The company said commercial agreements with GLNG would underpin the capital investment of up to $200 million over the next two years.
PNG LNG on track PNG LNG Project operator Esso Highlands says the development is 70 per cent complete and on track for first LNG in 2014. The final cost for the project is expected to be $US19 billion.
Ichthys job for Leighton Leighton Contractors has won a $923 million contract to undertake civil works for the Ichthys project’s onshore LNG facilities at Blaydin Point, Darwin. The construct-only contract is the third project to be awarded to Leighton
Moranbah M oranbah
Mackay M ackay
Contractors by JKC Australia LNG - the engineering, procurement and construction contractor responsible for the Ichthys project’s onshore infrastructure. Inpex Corporation in December announced that the Ichthys LNG project had finalised arrangements for about $20 billion in project finance loans.
On the move Buslink VIVO, a partnership between Veolia Transdev and Buslink, has been selected to provide employee transport services for the Ichthys project’s LNG facilities in Darwin. The contract is for the operation of buses and minibuses to transport the project’s onshore construction workforce.
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INDUSTRY UPDATE HARD ROCK
Mammoth copper boost Aditya Birla Minerals has upgraded the in-situ mineral resource for its Mt Gordon copper operations in northwest Queensland to 162 million tonnes at 1.28 per cent copper (above a cut-off grade of 0.5 per cent). This represents a 58 per cent increase in contained copper over the resource reported in May 2012. Aditya Birla said the Mt Gordon mineral resource included individual estimates for Mammoth/Esperanza/Pluto and Esperanza South deposits as well as Greenstone and a maiden estimate for the Mammoth North deposit. The company recently completed a first phase diamond drilling program at Mammoth North, about 150m north of the Mt Gordon mine.
Aurukun project revisited The Newman Government has opened an expressions of interest process for the development rights to the Aurukun bauxite resource on Cape York. Interested companies are required to lodge their response by February 15. Deputy Premier Jeff Seeney said the Government intended to short-list up to five proponents to develop detailed proposals for the resource. “Though the scope and configuration of proposals will be a matter for each proponent, it is not a requirement of this government that proposals include an alumina refinery,” he said. “The previous government’s botched strategy of wanting to lease the bauxite to a company under the condition it established a refinery or expanded refinery capacity was never going to work.”
South of Embley EIS Rio Tinto Alcan has released the draft Commonwealth environmental impact statement (EIS) for the South of Embley project on Cape York. Rio Tinto Alcan president and chief executive officer, bauxite and alumina, Pat Fiore said the project would extend bauxite mining operations on an area of the company’s existing Weipa mining
January 2013 |
lease, continuing to generate employment and economic benefits on the western Cape for another 40 years.
of gibbsite-rich bauxite resources on a central Queensland mining lease about 155km south-west of Bundaberg.
Mr Fiore said Rio Tinto Alcan had responded to a direction to assess shipping through the Great Barrier Reef in the EIS. “The project does not substantially change the number of ships traversing the reef and the EIS shows that potential impacts on the environment can be managed,” he said.
The company said the deposit may be a fast-track route to the commencement of its major Binjour bauxite project, which has a 24.5 million-tonne resource and is located about 115km south-west of Bundaberg.
The Queensland Co-ordinatorGeneral approved the $1 billion-plus project in May 2012.
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Boost for Binjour hopes Australian Bauxite has announced a maiden resource of 3.5 million tonnes
The contract has been signed with the Foreign Economic and Technical Cooperation Company of China, Chanjiang National Shipping Group and the China Changjiang National Shipping Group Corporation Jinling Shipyard. QN managing director Phil Collins said the company expected to receive the vessels in the first half of 2014. The vessels will primarily be used for the transportation of nickel ore from New Caledonia, Indonesia, and the Philippines to Townsville for processing and refining at the Palmer Nickel and Cobalt Refinery. The vessels may also be used to carry coal, iron ore, or other bulk materials.
The Mining Advocate
The 200m long vessels, with a capacity of 64,000 deadweight tonnes, will be operated by Singapore-based APSE.
ERA ends open-cut era Open-cut mining has been completed at ERA’s Ranger mine after more than 30 years of removing ore from open pits for processing. Mining teams at Ranger extracted the last of the ore from Pit 3 in the last week of November, several weeks ahead of schedule, with all in-situ reserves in the pit successfully mined. Work on backfilling the pit has started, with the first phase of these works expected to be completed by late 2014. During this time, 30 million tonnes of material will be backfilled into the pit. ERA said construction of the Ranger 3 Deeps exploration decline to further define that resource was on schedule. It’s expected that exploration drilling will start in the second quarter of 2013.
Roper Bar on track Western Desert Resources has received federal approval for the Roper Bar iron ore project’s environmental impact study, paving the way for exports to begin this year. The company said the federal green light came after recommendation for approval by the Northern Territory Environment Minister was received in September, completing the major regulatory approvals process required for development of the iron ore mine. Managing director Norm Gardner said this was a major milestone for the company, and would accelerate development of the mine infrastructure and transport corridor to the export facility at Bing Bong in the Gulf of Carpentaria. “Western Desert continues to deliver on schedule, with export of DSO-grade iron ore scheduled for 2013,” he said. The company in December announced it had entered into a long-term contract with Wagners Transport for haulage of iron ore from the Roper Bar mine to the loading facility at Bing Bong port.
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INDUSTRY UPDATE HARD ROCK
The Mining Advocate | January 2013
rare earth deposits in Australia,” he said.
Dugald River go-ahead
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Plus-sized Lady
“Based on current world prices, the value of this resource is approximately The MMG board has endorsed $4 billion, with a potential royalty value construction of the Dugald River zincfor the State of more than $100 million.” lead-silver mine, 65km north-west of Cloncurry, subject to final financing The Mary Kathleen site is a restricted area for development and is managed by arrangements. Interim funding was the state through the Abandoned Mine approved in Lands Program. December to carry the project through to New filter train early 2013, at A $50 million which point full development is project financing expected to improve TRADE LABOUR HIRE arrangements are “SUPPLYING THE RIGHT MAN FOR THE JOB” reliability and TRAINING expected to be increase output “LEARNING TO STAY SAFE” concluded. Registered Training Organisation No. 31908 at Incitec Pivot The board has given the green light to enter major contracts including gas supply, power generation and rail haulage contracts to progress Dugald River.
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Limited’s fertiliser operations at Phosphate Hill. The recent construction of a third filter train at the phosphoric acid plant removes a process bottleneck at the north-west Queensland site.
www.jamestech.com.au “With the MMG has spent expansion fully $293 million on operational, we the project, with about $1.195 billion more will be in a good position to achieve needed to take it through to first shipment consistent annual production at around of concentrate – expected in late 2015. 950,000 tonnes,” acting site operations Dugald River is expected to replace about manager Paul Laurent said. 40 per cent of current production from IPL had a one-month shutdown at MMG’s Century mine, which has an its Mount Isa sulphuric acid plant annual output of about 500,000 tonnes late last year, restricting acid supplies of zinc. The project will create about 600 to Phosphate Hill, after a waste-heat jobs during the construction phase and boiler failed. The company imported 800 employ about 500 people in operation. replacement boiler tubes from Italy, using
Rare opportunity at Mary K The Geological Survey of Queensland is assessing the potential for rare earths development options at Mary Kathleen in north-west Queensland. Natural Resources and Mines Minister Andrew Cripps said about 7 million tonnes of ore tailings was stored on former uranium mine site. “These tailings are estimated to contain approximately 3 per cent total rare earth oxides which makes it one of the largest
a 50m long Russian Ilyushin I1-76 cargo aircraft to deliver them to Mount Isa .
Kagara projects sold A raft of Kagara projects in North Queensland has been sold for $40 million to Snow Peak Mining, a company associated with Consolidated Tin Mines. The sale agreement follows the commencement by administrators Taylor Woodings of a dual-track process to market Kagara’s assets while continuing to consider possibilities for restructuring.
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An underground haul truck at the Lady Loretta mine, 140km north-west of Mount Isa.
Xstrata Zinc plans to further increase ore production by 33 per cent to 1.6 million tonnes per annum at its high-grade Lady Loretta mine in north-west Queensland. The underground zinc-lead-silver mine commenced ore production ahead of schedule in September 2012. Commercial-scale mining is due to commence in mid-2013 and the expanded production rate of 1.6mtpa is expected by 2016. Xstrata Zinc said an internal study had identified the opportunity to increase the maximum output at Lady Loretta by reviewing stoping sequences over the life of mine. It is the second project announced recently to accelerate production. This latest expansion takes the total investment to develop the mine to date to $362.2 million. Construction is well advanced on the operation’s concrete batch plant, paste plant, warehouse, fuel farm and power station. The operation will employ a permanent workforce of more than 200 people.
The Snow Peak Mining deal covers resources and processing plant at Mount Garnet, the Balcooma and Baal Gammon mining areas and the Einasleigh and Maitland exploration projects. It is proposed that Consolidated Tin – which holds the nearby Mount Garnet tin project – will manage and operate them. The sale is expected to be completed in January, subject to FIRB approval. Taylor Woodings said it was considering offers on other Kagara assets.
Mt Carlton cranks up Evolution Mining has started commissioning the 800,000-tonne-per-
annum processing plant at its Mt Carlton gold-silver-copper mine in North Queensland, with processing expected to begin in February. The company said in December that all major fixed plant had been installed at the new operation and construction of the main water supply dam and tailings storage facility was also complete. Mining of the A39 and V2 open pits is well advanced. “To commence commissioning of this project within 12 months of receiving the mining lease approval is a tremendous achievement,” Evolution executive chairman Jake Klein said.
16
BETWEEN SHIFTS
January 2013 |
Capricorn Enterprise industry forum
The Mining Advocate
PHOTOS: Michael Kennedy
Rockhampton Leagues Club
Bryan Fagan and Michal Skorvaga (both from Resource Equipment).
Karen Bellert (Energy Skills Queensland) and Dan McLachlan (Wilson Transformer Company) with Glenn Porter and Julie Gelder (both Energy Skills Queensland).
Richard Vincent (AbiGroup Contractors) and Brendan Wilkie (ER24).
Aaron Smith (Bluescope Water), Chris Birchall (Callidus Process Solutions) and Melanie Sutton (ESP Management).
Greg Newman (Prysmian Group) and Andrew Marriott (Fencepac Commercial).
Michelle Hanrahan (Fitzroy River and Coastal Catchments) with Shayne McCormick and Carmen Gordon (both CQG Consulting).
Whitsunday Marketing and Development networking event Queens Beach Motor Hotel, Bowen
Cameron Thompson (Queensland Country Credit Union) with Lauren Hulse and Christian Smith (both from Force Rentals).
Nadine Blake (Bowen First National Real Estate) with Glenda Scharli (Bogie River Bush House).
George Fitos (Queensland Civic Construction Services) with Robert Dark (The Mining Advocate) and Richard Mactaggart (The Specialist Group).
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The Mining Advocate | January 2013
Mackay Region Engineering Excellence Awards
17
PHOTOS: Damien Carty
Ocean International Hotel, Mackay
Cheryl Porter, Rob Porter (Mackay Airport) with Craig Forsyth and Pat Flanagan (both Flanagan Consulting).
Andrea Foley, Tara Kafashzadeh, Jane Ada and David Ada (all Worley Parsons).
Hamed Kafashzadeh (Worley Parsons), Fae Martin (CQ University), Mohammad Sadeque (Lendlease) and Tom Sherley (Cardno).
Rebecca Nobbs (Ergon), Blake Harvey (Ergon) and Peter Rosier (Becker Rosier).
Jack Shao (UDP) with Vadim Pavlov, Tracey Doyle and Timothy Wood (all Cardno).
Nat Dzadey (Ground Environments) with Alice Slarke and Jarred Dickson (both Flanagan Consulting).
Toowoomba and Surat Basin Enterprise evening Picnic Point Restaurant, Toowoomba
Greg West (Surat Basin Property Group), Denis Wagner (Wagners) and Dallas Hunter (FK Gardner & Sons).
Jay Pyne (Heritage Finance), Graham Secombe (Aspect Architects and Project Managers), Kaye Maguire (Maguire Coaches) and Ray Hicks (Brandon and Associates).
Curtis Thompson (Simpro Software) and Andrew Bowden (Queensland Survey Pegs).
Claire Bennett and Clare Feather (both Feather and Lawry Design) with Julie Hawke (Clarity Business and IT Solutions).
James Juhasz and Lucas Talbot (both RPS Australian East) with Wayne Wilson (Downes Group).
Steve Watchman (McCormack Industries) with Scott Fyfe (Rocla).
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18
BETWEEN SHIFTS
January 2013 |
Cloncurry Discovery Parks workforce accommodation official opening
The Mining Advocate
PHOTOS: Roslyn Budd
McIlwraith Street, Cloncurry
Denni Pryor and Kris Farmer (Copper Chem).
Peter Dando (Cloncurry Discovery Parks), Luke Miles (Simon George and Sons) and Stella Sutton (Cloncurry Discovery Parks).
John Green (CuDeco) with Robyn Sefton (Discovery Parks).
Graham Stokes (MacDonald International), Larinda Turrell (Cloncurry Shire Council) and Albert Farrant (Discovery Parks).
Tim Dodds (Workforce WA) with Rick Thurling (Discovery Parks).
Keith Douglas (Cloncurry Shire Council), Karen Jarrett (Discovery Parks) and Owen Carter (Xstrata Ernest Henry).
Xstrata mining equipment auction
PHOTOS: Roslyn Budd
Mount Isa Mines disposal yard
Dougal and Julie Champion (Champion Contracting).
Stuart McEachern (from Pittsworth), Grahame Porter (Porters Mount Isa Carriers) and Lyn McEachern.
Robert Davis (from Yerra) and John Drake (Camooweal).
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The Mining Advocate | January 2013
19
Mount Isa’s mining milestone In early 1923 intrepid fossicker John Campbell Miles was scouring the still largely unexplored north west of Queensland in the hope of finding untold riches beneath the ground. He pegged out a lease and named it Mount Isa after a Western Australian goldfield called Mount Ida. Soon after, on January 19, 1924 Mount Isa Mines was established and endures to this day. Distance from the port of Townsville and remoteness were to be twin obstacles to overcome, not to mention blistering heat and long periods of drought when the wet season failed to deliver rain. The first train pulled out of Mount Isa on April 6, 1929 heralding a new era for the growing mining centre which was yielding up lead, silver and zinc. Miles died in 1965 at the ripe old age of 82 and his ashes were buried under the clock tower which stands in Miles St. The remote mining centre has spawned many interesting characters, who will be remembered during the year at a series of 90th anniversary events which began on New Year’s Eve with a street party in the CBD.
A view across Mount Isa in the 1930s (right) and the thriving mining city today (below right). Images courtesy of Xstrata Mount Isa Mines.
The celebrations continue on February 23 with the Lady Mayoress’ Ball which will also serve as a celebration to mark the 50th anniversary of Mount Isa winning cityhood. The function will take on a ‘60s theme, with each table being named after a band or solo performer from that period. Xstrata Copper North Queensland chief operating officer Steve de Kruijff said the
company was immensely proud to be celebrating 90 years of local mining activity in 2013. “Over the past 90 years Mount Isa has transformed from a small network of miners’ camps to be one of the largest mining operations in the world and has made an outstanding contribution to Queensland’s progress and economic success,” he said. “With several expansion projects under way for both our
copper and zinc businesses, we have an exciting future ahead of us and are looking forward to continuing our support to the Mount Isa community for many years to come.” Xstrata Mount Isa Mines will be supporting a number of special events in 2013 including co-presenting with the Mount Isa City Council a major music festival - Swinging Utes - in July, as well as major sponsorship of a pre-season
trial match between the North Queensland Cowboys and the Brisbane Broncos on February 9. The mine has thrown its financial support behind installation of a new town clock which is going to chime in the official 90th anniversary of the day ore was discovered in Mount Isa on February 23, 1923. For more information on individual events visit: city@ mountisa.qld.gov.au
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20 Building Mining Communities
January 2013 |
The Mining Advocate
SUPPORTED BY BHP BILLITON CANNINGTON
Miles ahead in safety Miles State High School has raced across the line to take out the 2012 Origin CARS Cup Challenge ahead of nine other regional schools. Launched in 2011, the CARS Cup Challenge is an extension of Origin Energy’s Caring About Road Safety (CARS) driver training program which targets learner drivers with the aim of improving their skills and judgement in a range of driving situations. The CARS Cup Challenge was established to encourage some healthy rivalry between schools participating in the CARS program and to assist students to complete the course e-learning in a timely manner. Miles State High School was declared the winner, with the highest student participation rate and e-learning scores in the CARS program. In addition to the 2012 Origin CARS Cup Challenge trophy, the school received a cheque for $1000 to spend on sports equipment or library resources. Moura State High School was named runner-up in the 2012 challenge.
The other schools participating included Dalby State High School, Dalby Christian College, Our Lady of the Southern Cross (Dalby), Chinchilla State High School, Tara State High School, Roma State College, St John’s Catholic School (Roma), and Biloela State High School. Origin provides a subsidy of more the 80 per cent for CARS
course participants, reducing the cost from $320 to $50 per student. Origin regional manager Rob Hart said the company had responded to local communities’ requests for affordable driver education for students, given the high number of road tragedies in the region.
Thinking pink are (back) Caterpillar Asia Pacific underground coal manager Hugh Paul, Kestrel Mine Extension general manager construction Colin Mackey, Kestrel Mine general manager operations John Coughlan, (front) Rio Tinto Technology and Innovation principal advisor mining equipment Alex Jones, McGrath Foundation ambassador and director Tracy Bevan, and Caterpillar Asia Pacific business development manager Daryl Blakemore.
Rosy outlook at Rio Tinto site Miles State High School students Adam Erbacher, Nykeela Purs, Nikki Hoffmann, Adam Stenhouse, Chloe Kerwick and Tiama Kimlin with the CARS Cup Trophy for 2012.
Gas company targets Taroom QGC is helping the Taroom community, 290km west of Maryborough, to benefit from resources industry expansion by funding a local project officer. QGC has provided more than $84,000 to the not-for-profit Taroom District Development Association to assist information sharing between resources companies and the community and to help applicant groups to secure funding. The funding has been provided from QGC’s
$150 million Social Impact Management Plan, aimed at managing social impacts and maximising benefits from the Queensland Curtis LNG Project. Taroom District Development Association president Terri Boyce said the organisation had appointed Kathy Major to the project officer role. She is based at Taroom Information Centre at 10 Yaldwyn St from Wednesday to Friday and can be contacted on (07) 4628 6113.
Golf day aids kidney support The Mackay Kidney Support Network has received a helping hand thanks to more than 150 Hail Creek Mine employees coming together to raise money through playing golf. Derek Best and Steve Burgess,
operators at the Rio Tinto Coal Australia site, decided to turn their hobby of golf into something more last year, raising money for the Leukaemia Foundation. Mr Best said they had decided
to raise money for the Mackay Kidney Support Network this year. “We managed to raise a total of $15,000 through employees, sponsors, Hail Creek Mine and the Rio Tinto SD&me program that matched our funding.”
Recognition for research role Xstrata Coal’s contributions to health and medical research have seen it awarded the 2012 Research Australia Award for Leadership in Corporate Giving. “Xstrata Coal supports a range of community programs and initiatives in areas such as education, health, the arts, the environment, indigenous and skills development,” general manager for environment and community in New South Wales, David O’Brien, said.
“In the last 12 months, we have invested nearly $14 million in community partnerships across Australia. We regard our initiatives in the health sector, including support for research, as among the most important of these partnerships.” The company had supported research into cardiovascular issues in neonatal intensive care, trauma, cancer, mental health, inflammatory bowel disease and emergency critical care, Mr O’Brien said.
A pink coal shearer has been unveiled at Rio Tinto’s Kestrel mine extension project near Emerald to mark a new partnership in the fight against breast cancer. Caterpillar, which supplied the 115-tonne shearer as part of the longwall for the project, has teamed up with Rio Tinto to fund a new McGrath breast care nurse to serve the Mackay region. Employed by the Mackay Hospital and Health Service for the next three years, the nurse will provide free support to families experiencing breast cancer. “Rio Tinto Coal Australia is a long-term member of the central Queensland community and is proud to help fund the McGrath breast care nurse position through the Kestrel mine extension project,” Kestrel Mine general manager operations John Coughlan said. “The extension is due for completion in 2013 and will see us continue our operations here near Emerald for a further 20 years.” The McGrath Foundation has helped support 17,800 Australian families experiencing breast cancer, with 79 McGrath Breast Care Nurses working in communities across the country.
Moranbah earns kudos Moranbah State High School has won the School Pathways to VET Award at the 2012 Australian Training Awards in Melbourne. The school is one of 34 secondary schools under the umbrella of the Queensland Minerals and Energy Academy (QMEA). Moranbah SHS business development manager Melissa Westcott said the key to the school’s win was the Get Set for Work - GEMS program which catered for at-risk youth in the Central Highlands, as well as the MAST and RIO programs that ensured students were work-ready on completion of their senior studies and had the skills sought by industry. “Through the ongoing support of BMA, Anglo, QMEA and Arrow Energy as well all the small businesses in town, our students have a wealth of experience at their doorstep,” she said. The QMEA is a joint initiative of the QRC, State Government and education and training providers to create links between schools and minerals and energy companies and provide clear career pathways into the sector.
Proudly supporting mining communities Cannington
Building Mining Communities 21
The Mining Advocate | January 2013
SUPPORTED BY BHP BILLITON CANNINGTON
Xstrata in the Mo when it comes to health campaign
Sabrina Robertson, Benny Daniels and Nic Daniels check out the new playground at the Cloncurry Racecourse.
Playground ready for action The Cloncurry and District Racing Club, in partnership with BHP Billiton Cannington, has delivered a $150,000 children’s playground to the north-west Queensland community. And the timing could not have been better, with the installation completed ahead of the first Tuesday in November when the racing club hosted its annual Melbourne Cup meeting. Racing club treasurer Glen Robertson said the community would not be denied access to the playground - located within the racecourse property - when race meetings were not scheduled. “We encourage families to make use of the playground and adjoining parkland when the race course is not being used for a private function,” Mr Robertson said. The playground, which meets Australian safety standards, features “soft fall’’ topped with synthetic grass to minimise injury when a child takes a tumble.
As an additional safeguard, the playground is divided into two sections, one for under-fives and the second for children up to 12. Mr Robertson said the race club lodged an application with the BHP Billiton Cannington Communities Fund in December 2011 and had received approval earlier this year. “The club’s old wooden playground had seen better days which prompted the funding application,” he said. BHP Billiton Cannington will be formally recognised for its contribution to the social fabric of Cloncurry in March at the first of the club’s six race meetings for 2013. Mr Robertson said Cannington representatives would be invited to attend the meeting, where club president Martin Keyes would preside over the official opening of the playground.
Pupils say thanks for bright start Vincent Primary School artists have drawn on the influence of Vincent Van Gogh’s famous sunflower series of paintings to present two artworks to Queensland Nickel (QN) and Food Bank in recognition of their support for a long-running school breakfast program. The initiative - part of Townsville City Council’s Together Townsville Program – supports schools supplying a healthy, nutritious breakfast and helps create an environment where students can learn lifelong skills such as food hygiene, food preparation and social interaction. “We have supported the school breakfast initiative for a number of years and it really makes a difference to the wellbeing of students who are not in a position to have a regular meal at the start of the day,” QN managing director Phil Collins
George Fisher mine expansion project administrator Moira Fraser gets behind her “Mo Bros” at a fundraising breakfast.
Xstrata Mount Isa Mines employees paid upper lip service to men’s health issues recently, sprouting moustaches of many styles across the operation to raise a Movember total of almost $19,000. Two Zinc Open Pits operation teams – Finding Mos and Flaming Mos – raised $8464 between them to be named team charity champions, while hydrogeologist Quinton Bruwer earned the title of individual mo champ for his efforts in raising $1279. Xstrata Copper North Queensland chief operating officer Steve de Kruiff endorsed the site-wide facial hair fixation for the November charity drive. “As part of our ongoing commitment to community health we encouraged the Mount Isa Mines workforce to put their support behind Movember by way of raising funds or creating awareness within their departments,” he said. “Our workforce definitely took on the challenge with enthusiasm, with many fashionable and some questionable mos on display for the entire month.”
The Bright and Happy painting that Year 5 students at Vincent Primary School produced for Queensland Nickel.
said. “The students’ painting is exceptional and will be a welcome addition to brighten up the wall of our reception area at the refinery.”
Delina, Melora, Beena, Zak, Nikia and Nazareth from the 2012 Vincent Art Club produced the painting, titled Bright and Happy, for QN.
Hydrogeologist Quinton Bruwer in full Movember bloom.
Proudly supporting mining communities Cannington
22
Wet season feature
January 2013 |
The Mining Advocate
Xylem pumps up CQ service Water technology specialist Xylem plans to increase the pumping stock on standby to meet Bowen Basin mines’ demands in heavy wet seasons with the opening of a new service centre in Mackay. Townsville branch manager Cameron Gilchrist said the centre, opening in January, covered 4600sq m and included a large laydown area. Xylem already operates from 14 locations throughout Australia including its Queensland bases of Brisbane, Mount Isa and Townsville. “We are setting ourselves up to be able to service both in-house and on site to better support the Whitsunday, Mackay and central Queensland region,” Mr Gilchrist said. Xylem had experienced high demand for pumps in Queensland during flooding in the past two wet seasons, he said. “Demand exceeded supply with the floods two years ago and prior to each wet season the inquiry levels always picks up,” he said. He believed the experiences of the past two seasons had made mines look more closely at their water management strategies, while Xylem had gained a better knowledge of market requirements in those conditions, he said. The larger area at the new Mackay premises would give Xylem the ability to have more stock on hand when mines needed pumps urgently. “It’s certainly a balancing act - building a strategic stock,” Mr Gilchrist said. “There is a fairly big expense in stocking these items, so trying to better accommodate local
needs is very important for the utilisation. “We have reps running about calling on mines, councils and other industries to gain a better understanding of their needs and what they potentially need in a flood.” Mr Gilchrist said the Mackay
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centre would open with a service crew ready for in-house and onsite service work. Xylem has previously served central Queensland from its Townsville branch, whose business is split almost 50/50 between mining and municipal water services.
A flooded Bowen Basin mine pit.
Order early or risk being caught short Mines should start planning from the tail end of this wet season to get major dewatering equipment orders in for the next one, a North Queensland-based Xylem manager says. Townsville branch manager Cameron Gilchrist said there could be as much as an 18 to 24-week lead time for some pumping equipment. “A lot of mines come at the last minute wondering what they can get, but if we don’t have it in the country they may get caught short,” Mr Gilchrist said. “Certainly with our electric submersible Flygt pumps we have pretty significant stock around the country. “Only in recent years we have entered the diesel market with Godwin diesel pumps. We still have the feelers out as to what the market requirements are and are still in the process of building up rental fleet and off-the shelf pumps.” Despite Xylem’s best efforts to hold strategic stock it was highly advisable for mines to start the procurement process of larger pump assets during April/May, Mr Gilchrist said.
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Wet season feature
The Mining Advocate | January 2013
23
Flood casualty back in action A 160-tonne coal augering machine is back in business after it was swamped in a flooded Bowen Basin pit last wet season, prompting a complete rebuild. Coal Augering Services is seeking new contracts with the machine after the six-month overhaul. Managing director Bret Leisemann said the AM1500 was the only operating auger in Australia and the largest operating in the world. The machine, purchased by Coal Augering Services in 2003, can mine 1.9m diameter holes up to 200m into a coal seam, yielding as much as 800 tonnes of coal in four hours. Mr Leisemann said it had been working at the Burton mine near Glenden in March last year when a heavy weekend storm dumped about 300mm of rain in the area within 24 hours. “The access roads to the pit were flooded and we couldn’t get out there to get the machine out,” he said.
The flooding left the auger’s engines full of water and silt, the hydraulic systems contaminated, paintwork peeling, and all of the electrical components corroded. The machine was rebuilt in Mackay from May 2012 with the help of a range of local and multinational contractors. Mr Leisemann said Coal Augering Services had used the refit to improve some operational features by adding automation as well as installing extra walkways and handrails to boost safety. Now it is back in action, Mr Leisemann believes the business is well placed to offer extra value for companies at a time of low export coal prices. Coal Augering Services are typically commissioned to mine coal for the mining companies on a rate-per-tonne basis. “During a coal boom, mine owners don’t normally consider using the auger mining method, as previously uneconomic coal reserves become economic as a result of the increasing coal
price,” Mr Leisemann said. “As coal prices come down and the mine owners have contracts they have to fill, mining costs must be reduced through better utilisation of capital and lower stripping ratios, and that is where auger mining becomes an essential tool to recover the uneconomic coal.” Augering can only mine out a certain proportion of each coal seam as coal pillars must be left in place to hold up the rock above. Mr Leisemann said it could be more economical than open-cut mining depending on the strip ratio, but may make future opencut mining of the area less viable. Ideal conditions for coal augering are pits with steep seam dips, end-walls, and pits that have mined up to the boundary of the mining lease or a geographical feature - like a river, road or railway line - that would prevent further expansion.
Flooding at a Bowen Basin pit in early 2012 (above) caused extensive damage to this 160-tonne coal augering machine, sparking a major overhaul to bring it up to its present condition (below).
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24
DRILLING AND EXPLORATION
January 2013 |
The Mining Advocate
Arrow rolls out hi-tech CSG rigs A partnership between coal seam gas company Arrow Energy and Sirius Well Manufacturing Services (SWMS) is set to deliver state-of-the-art automated drilling technology to the Surat and Bowen basins from this year. Four mobile drilling platforms will be rolled out in 2013 in the $135 million project, with the first two earmarked for the Dalby and Moranbah areas. The first hi-tech CSG rigs will be commissioned at a new SWMS warehouse facility at Caboolture in February before the mobile platforms are moved on site in mid-2013. The four state-of-the-art rigs are being built in Milan, Italy, and will be shipped through the Port of Brisbane for transport to Caboolture. SWMS Australia general manager Steven Ford said the rigs would feature an automated well manufacturing system developed by Shell. “The technology could significantly improve the efficiency of drilling and completing new wells on shore,” Mr Ford said. “SWMS will use state-ofthe-art technologies such as directional drilling and standardisation techniques including technologies pioneered in North American tight gas operations. “From a safety point of view, this automation will allow us to keep people away from hazardous areas while ensuring consistent and continuous performance built on best
practices and making operations less dependent on the availability of large numbers of staff.” The innovative technology will eventually see the rigs operated automatically, coupled with competent on-site staff to supervise activities and monitor for any issues. Their computer controls will also enable Arrow Energy staff at head office in Brisbane to monitor operations in real time. Mr Ford said all four rigs would go through a rigorous pre-start inspection and interface program to ensure all systems
integrated seamlessly before going into the field. Queensland-based SWMS is a joint venture company formed by Arrow Energy’s parent companies, Royal Dutch Shell and CNPC. Arrow Energy chief executive officer Andrew Faulkner described the project as “historic” saying the partnership leveraged off Shell’s expertise in the area. “SMWS will strengthen Arrow’s drilling and production future and deliver widespread efficiencies for the life of the project,” he said.
Eye in the sky A drilling rig in Italy bound for Arrow Energy’s Queensland coal seam gas exploration projects.
Creepy crawly clues A new rotary-blade unmanned aerial vehicle (UAV) has been released in Australia for tasks including aerial mapping, imaging, filming, asset inspection and thermography. The Aibot X6 multicoptor operates via six propellers, which are positioned in a hexagonal shape above its camera and are protected by a carbon fibre housing. It can fly autonomously to a pre-programmed flight path or can be controlled manually via a tablet PC or remote control unit. Aibotix chief executive officer Joerg Lamprecht said the Aibot X6 – distributed in Australia by Position Partners was designed for a wide range of applications within the construction, engineering, surveying and mining industries.
Insects could provide a new costeffective and environmentally friendly way of exploring for mineral deposits, according to the CSIRO. Research published in science journals PLoS ONE and Geochemistry: Exploration, Environment, Analysis found high concentrations of gold in termite mounds at a Western Australian goldfields site – indicating a larger deposit underneath. CSIRO entomologist Dr Aaron Stewart said the insects brought up small particles that contained gold from the deposit’s fingerprint, or halo, and effectively stockpiled it in their mounds. “Our recent research has
shown that small ant and termite mounds that may not look like much on the surface, are just as valuable in finding gold as the large African mounds are that stand several metres tall,” Dr Stewart said. Dr Stewart’s work has also found that metals accumulate in excretory systems of termites. “Although the insects may not concentrate metals in their bodies, they actively rid their bodies of excess metals,” he said. “This process shows up as little stones, much like kidney stones in people. This finding is important because these excretions are a driving force in redistribution of metals near the surface.”
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LIVING REMOTELY
The Mining Advocate | January 2013
25
Tune in to mate expectations Couples coping with extended periods apart due to work rosters have been urged to clearly communicate what they want from their time at home together. Rockhampton-based psychologist Natalie HislopEsterhuysen said women often had set expectations of their partners during their break, especially when they’d been juggling responsibilities such as housework and child care alone while he was away at work. But if their partners were not aware of their expectations they could never live up to them, Mrs Hislop-Esterhuysen said. “It boils down to very clear communication between the parties,” she said. “Let’s just say he comes home and the very first day you just need him to be there to fill the gap, to listen - he needs to know that, otherwise he won’t fulfil your
desires and your dreams. It’s a very rigid thing to say you need to plan these things to a tee. “I think it’s just about opening communication lines, because life happens and things change and rules change.” Mrs Hislop-Esterhuysen said the partners returning into a domestic environment after being away at work often found it difficult to adjust. “They say what about me? And also a lot of men struggle when they come home and find it’s not clinical and it’s not clean and the rules are not as clear-cut as at work,” she said. “They find the house messy, the kids rowdy and they can find disciplining hard because what is their role now? Does mum want him to become disciplinarian, what does she want?” Both parties needed to heed what was said as well as what
Communication is the key to managing home time in a way that keeps both partners happy. Photo: shutterstock/MJTH
was unsaid – the non-verbal cues - when they were together, Mrs Hislop-Esterhuysen said. Seeing how others coped was
often helpful, but each couple must work out what was best for their family, she said. Mrs Hislop-Esterhuysen is
Toowoomba taps mobile camp niche Toowoomba manufacturer Pritab has grown from employing six people to 55 since launching as a mobile camp producer in 2011, generating more than $10 million in revenue in its first year of trade. Pritab’s product is most remarkable for its innovative use of local content, according to Toowoomba Surat Basin Enterprise chief executive officer Shane Charles. “Everything from labour to raw materials and even locally sourced parts and equipment have all come from the region wherever practicable,” he said. The business recently completed a second 40-person trailer-mounted mobile camp for Rio Tinto’s Pilbara operations
in Western Australia and has also notched up contracts with Santos and Easternwell. Each camp is self-supporting with power, potable water and waste water management as well as a fully equipped kitchen and communal dining area. Rooms have free-to-air digital TV, internet access and an ensuite. Pritab managing director Darren Cardiff founded the business to meet demand for professional mobile camp manufacturing and maintenance services for the booming resources sector. “These mobile camps can be set up rapidly with no site works on a patch of mowed grass, perform as required, and within
Pritab managing director Darren Cardiff in front of a mobile camp built for Rio Tinto’s operations in Western Australia.
days of the camp leaving you would hardly know anyone had been there at all,” he said. The Toowoomba
manufacturing facility can produce one unit every two days, which is set to increase to one unit per day.
college counsellor at Heights College in Rockhampton and has spoken at local Mining Women Support Group meetings.
Merinda worker accommodation on the market Tenders closed in December for the sale of North Queensland Bulk Ports Corporation’s Merinda workers’ camp outside Bowen in North Queensland. The camp, opened in 2009, was built to accommodate the workforce for the X50 expansion project at Abbot Point. Consisting of 109 four-room accommodation units and associated facilities, it has been managed by Ausco, with Morris providing the catering and dayto-day services. NQBP offered the facility to the open market in a tender process and said it expected to announce an outcome early this year.
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EMERGENCY RESPONSE AND RESCUE
January 2013 |
The Mining Advocate
Isa squad learns from survivor Beaconsfield disaster survivor Brant Webb has cautioned Mount Isa rescue personnel against throwing their own lives on the line to save someone rather than tackling emergencies in a controlled manner. Xstrata Mount Isa Mines emergency and protective services superintendent Darren Bracey said Mr Webb’s recent visit to north-west Queensland had drawn great feedback from the squad, who got a lot out of talking to him. “The thing he really stressed to the guys, especially to the new guys, was you don’t need to risk your lives to rescue someone – you need to do it in a controlled manner and not do that,” Mr Bracey said. “As he said, as a rescuee, he would not have wanted to live with the idea that someone had died or was injured trying to get them out because they did the wrong thing. “He also talked about the number of guys who were fined at Beaconsfield for doing the wrong thing and he said he
wasn’t happy about that, he didn’t expect people to do that. Guys were going into places they shouldn’t thinking they were helping, but they weren’t.” Mr Webb and workmate Todd Russell were trapped underground for 14 days before being rescued after a rockfall which killed fellow miner Larry Knight at the Beaconsfield gold mine in Tasmania in 2006. Mr Bracey said he had come to know Mr Webb quite well after meeting him at a conference. He saw a great opportunity to have him visit Mount Isa, possibly to co-incide with Xstrata’s the annual internal rescue competition. While the competition was postponed, Mr Webb was on hand to present annual awards for the Xstrata Mount Isa Mines rescue squad. Justin Nielson was named Rescue Squadman of the Year and Arthur McHugh was honoured as Rescue Captain of the Year. Mr Bracey said the awards recognised their performance throughout 2012. He said Mr Webb was
Brant Webb with 2012 Xstrata Mount Isa Mines Mines Rescue Captain of the Year Arthur McHugh.
passionate about mine rescue and it was great to have the chance to talk to someone with his experiences. “One thing that impressed me when I first met him was that he was so passionate about mines
rescue – he kept saying it was mines rescue that gave him his life back and his family back,” Mr Bracey said. “I just thought that’s an awesome thing to hear from someone who has been there and had that happen.”
He said the Mount Isa squad members had got almost as much out of talking to Webb’s wife Rachel about the family’s experience. “It also gives you an opportunity to talk about what he didn’t like and what could be done better in a rescue,” Mr Bracey said. “He talked a lot about communication. They want to know, whether it’s good or bad news, they want to be kept informed.” Xstrata Mount Isa Mines plans to hold its internal rescue competition around April/May this year and will invite teams from surrounding mines to participate. The loss of several rescue squad members at Xstrata Mount Isa Mines prompted a decision to run a rookies’ course in late 2012 to keep numbers up, causing them to push the competition back into cooler months in 2013. Mr Bracey said they also planned a joint anti-terrorist exercise with the Queensland Police Service in March.
Self-rescuers go the distance in Xstrata drills
Xstrata Mount Isa Mines emergency and protective services superintendent Darren Bracey. Photo: Roslyn Budd
A Mount Isa rescue squad has made the most of an equipment change-out by going through underground drills with superseded Drager selfrescuer units. Xstrata Mount Isa Mines emergency and protective services superintendent Darren Bracey said the operation was phasing in new self-rescuers, providing a rare training opportunity. “We’re taking this opportunity now to use them up as we have to throw them out anyway, so we’re using them for some drills,” he said. “It has given us a really good idea of how far the guys can walk with the self-rescuer on.” The self-contained units are designed to provide underground workers with a safe air supply in an emergency, allowing them time to reach a refuge bay
or fresh-air base. Mr Bracey said following some trials 10 years ago Xstrata Mount Isa Mines ensured no underground personnel worked more than 750m from a refuge bay. “In the drills some of the guys were getting a lot further, around the 2km mark, so 750m is well within the safe range,” he said. With the one-use-only self-rescuers worth about $900 each, he said such drills would have proved an expensive exercise if not for the fact the devices were coming to the end of their shelf-life anyway. Mr Bracey said Xstrata Mount Isa Mines would have about 800 self-rescuers across its operations. The site’s mines rescue squad is 42 strong, including eight new members who recently finished their rookies’ training.
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BIG BOYS‘ TOYS
The Mining Advocate | January 2013
27
Jet set takes it to a whole new level Peter Hendra was hooked on the idea of the Flyboard the minute he saw a YouTube video of the jet-propelled acrobatics of people enjoying the new water sport. He now owns the distribution rights for the equipment across Australia, New Zealand and the South Pacific along with his Flyboard X co-director Dale Jeffery. The product, developed by Zapata Racing, was launched on the Australian market late last year and Mr Hendra described the response to date as phenomenal. The Flyboard is a waterjetpowered device which allows propulsion underwater and in the air. Two nozzles secured under the users’ feet provide most of the power, while waterjet nozzles on hands are used for stabilisation. The Flyboard relies on jet propulsion from a connected jet ski or jet boat. Mr Hendra described his first Flyboard ride as “the greatest day of my life.” “The sensation is like actually flying,” he said. “You strap yourself in and feel the power under your feet – it’s just crazy. “The sensation is – everyone says – the most remarkable thing they’ve ever done.” Mr Hendra, who previously ran a business selling inflatable amusement equipment such as jumping castles, had a Flyboard enterprise in mind as soon as he saw the equipment online in December 2011 YouTube clip that attracted millions of hits. “I saw the YouTube video like
everyone else,” he said. “On the basis of that I decided to get in contact with (French jet ski champion) Franky Zapata– who was on honeymoon at the time and quite hard to get in touch with.” For those wishing to join the fun, a complete Flyboard kit from Flyboard X will set you back $9975 and all purchasers are required to undergo training. Mr Hendra said training for Australian customers was only available at Flyboard X’s Gold Coast headquarters, although the group has plans to set up further training venues throughout Australia as the business expands. A taste of the Flyboard experience is available through commercial operators now springing up around Queensland. An operator offering Flyboard rides has started business in Mackay and Mr Hendra said more were coming online at Airlie Beach, Hamilton Island and Hervey Bay. “We’re also looking to set one up in the next couple of months on the Gold Coast,” he said. “We are rolling out, in February, the Flyboard Experience – an umbrella company that all the commercial operators will operate their businesses under.”
Right - Peter Hendra puts the Flyboard through its paces. Left - Flyboard inventor Franky Zapata goes for a spin.
Get in the hunt with geocaching Those 12-hour working days take a toll on mining industry employees and when you get home the couch beckons and the gaming console is about all you can manage. Your partner may sympathise and cut you some slack but what A geocache located off the Bruce Highway between Rockhampton and Mackay. Photo: Colyn Thorogood
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Geocaching might be just the solution. All you need is a hand-held GPS device, a dash of creativity and a nearby park and you have the ingredients for a treasure hunt. Hide small trinkets in various locations in the park, show the kids how to use the GPS, list the co-ordinates and leave them to it or join the fun. If you enjoy the concept, why not expand it to a favourite location in the bush? It’s a great way to get out of the house and explore locations you have never visited before as a family. For more information on geocaching visit www. geocaching.com
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28
PERSONAL INVESTMENT
January 2013 |
The Mining Advocate
Weighing up self-managed super Taking control of your financial future has gathered some popularity since the Global Financial Crisis devastated stock markets and saw highly regarded banks go to the wall or face massive loan repayments to remain afloat. Savvy investors who saw the financial meltdown coming migrated their money into a safe haven like cash. But many investors and the financial experts who run managed superannuation funds didn’t, and paid a heavy price. Four years on and stock exchanges around the world have not recovered and managed superannuation funds have been correspondingly slow in recouping losses. The truth is that self-managed superannuation funds take time to set up, time to administer, and, most importantly, knowledge of the marketplace to be successful. The Australian Securities and Investments Commission recommends that a selfmanaged fund should be $200,000 or more - a figure which would exclude many would-be candidates – and says people must allow for annual auditing and accounting fees. Self-managed superannuation funds also need time spent on them to not only ensure a good return but make sure stock market transactions and the like are accurate and up to date. Do you know all your legal responsibilities? Are you on top of the investment market? Do you know the tax implications? Ultimately you will be responsible for your fund even if you have received incorrect advice from professionals. ASIC advises those thinking
Time and knowledge are needed for those who want to see their fund grow. Photo: shutterstock.com/ isak55
of running a self-managed superannuation fund to consider completing the self-
managed superannuation trustee education program. It is free and designed to assist trustees
in understanding their role and responsibilities. ASIC says those thinking
about setting up a self-managed super fund because they are not happy with their current fund should consider changing to another fund first. And be wary of promoters who approach you to set up a self-managed super fund with the aim of withdrawing some or all of your super to pay off debts. These arrangements are illegal. There’s no doubt well-informed individuals who have followed the stock market for many years have made a success of investing but it’s clearly not for everybody. For more information visit: https://www.moneysmart. gov.au/superannuation-andretirement/self-managed-super
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Whether it be a house, townhouse, apartment or even commercial property, Mr Nicholas has a portfolio of rental options for the savvy mining industry worker who wants to secure their future while the Australian commodities boom continues. “We offer a strategy going forward aimed at building ongoing relationships, using equity in your home or investing in property through a self-managed superannuation fund,” he said. Heading up the back end of the business is Josh Mechielsen, who co-ordinates a team of independent specialists in the fields of accounting, finance, legal matters and loan brokerage. Mr Mechielsen of Total Advice Partners provides a detailed cash flow analysis for
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