June 2008

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Supporting mining and industry in northern Australia

The

June 2008

QU

MINING

$2.75 inc GST where sold

RTH IVAL O N R FA ND REV A E E NSL

Exploration technology takes a step up in the north

Monthly THIS MONTH • A lease of life for Pajingo • Central Petroleum well oiled • Diamond magic at Merlin • Beating the recruitment blues

ISSN 1833-3125


.%- 7ELDING!D PDF !-


NEWS

The Mining Advocate | June 2008

The

MINING June 2008

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Petroleum dreams

This month Central Petroleum is planning to sink the first oil drill hole in the Northern Territory for 15 years. Managing director John Heugh said the company was formed in 1998 and acquired a large number of tenements in the NT and South Australia when the oil price was low. Now, he believes the high oil price and NT infrastructure improvements will allow the company to meet the hitherto formidable challenge of making money from remote onshore oil and gas deposits.

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Good as gold

North Queensland Metals (NQM), as the operator of Pajingo gold mine near Charters Towers, is looking to the future with a sense of optimism. It believes the discovery of significant deposits to match the success of Pajingo’s Vera Nancy system is a very real possibility in the exploration tenements surrounding the operation. The company also believes that Pajingo will be a model for the planned development of its Baal Gammon copper and tin project near Herberton.

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Revisiting Merlin

North Australian Diamonds believes that more of the tale is yet to come from its previously worked Merlin mine in the Northern Territory. The mine produced Australia’s largest diamond under a former owner and North Australian Diamonds chief executive officer Tom Reddicliffe does not discount making another discovery to match its magnificence. He said exploration at depth had indicated the potential for a long-lasting operation at Merlin.

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Diamonds from the Merlin mine in the Northern Territory.

FEATURES 12 Industry Update

Thinking outside the square

A comprehensive wrap of exploration and operations in North Queensland and the Northern Territory.

A panel of experts at the recent Mining North Queensland conference in Townsville were challenged to come up with ideas to help the mining industry deal with recruitment and retention hassles. Among the suggested measures, Precruitment managing director Gayleen Toll advocated that companies offer relocation support to workers’ families when they sourced interstate labour.

9 Taking wing

16 Between Shifts 22 Lifestyle

(COVER STORY )

24 Safety and Training

North Queensland explorer Kangaroo Metals recently beat the hassle of relying on interstate helicopter services by fitting out a Cairns-based chartered chopper with exploration equipment (as pictured on this month’s cover with Heli Charters Australia operations manager Nigel Coleman). Meanwhile, other companies exploring in the region are finding that ever-improving Induced Polarisation (IP) technology is helping their cause.

26 FNQ Mining Revival 31 North Queensland Metals

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NEWS

June 2008 |

The Mining Advocate

Oil explorer sitting pretty High global prices place Central Petroleum in a healthy position as it pushes ahead with work at a swag of prospects, writes Michael Stevens. Central Petroleum is proving that a little foresight can go a long way. The company this month plans to sink the Northern Territory’s first petroleum exploration hole in 15 years at the Blamore 1 prospect, 300km south-east of Alice Springs. Exploration at this prospect and a swag of other tenements in the Territory and South Australia is viable for Central Petroleum because of the current high oil prices - about $US135 ($A141) per barrel at the time of writing. It was a different story when the company was formed in 1998, with oil attracting a meagre $US12 per barrel. “We put together a package of tenements when no one was interested, but now everyone is interested,” managing director John Heugh said.

John Heugh Central Petroleum managing director

“We don’t anticipate serious competition in our areas because we own all of the dirt, with a few exceptions.”

Central Petroleum has taken on the challenge of making money from onshore oil deposits in remote areas, a situation that was not previously considered competitive with more economical offshore deposits. In addition to steadily rising oil prices, the recently completed rail link from Alice Springs to the Port of Darwin has helped Central Petroleum meet this challenge by providing it with an alternative transport option to the relatively expensive existing gas pipeline. Central Petroleum plans to transport crude oil in bulkliquids rail containers from Alice Springs to the Port of Darwin for shipping to domestic refineries or possibly Singapore. Mr Heugh said the company would target 70 million barrels of oil at Blamore 1. He said the 2008 exploration program in the Northern Territory would also include another oil prospect, targeting 190 million barrels of oil, and five natural gas prospects, including three coal-bed

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A Central Petroleum exploration crew at the Ooraminna natural gas prospect in the Northern Territory’s Amadeus Basin.

methane wells and one gas, helium and condensate well. Mr Heugh said the company planned to value-add through the construction of a gas-toliquid plant in Alice Springs, facilitating the production of diesel, jet fuel and naptha. These products would also be railed to the Port of Darwin. Mr Heugh said he could not accurately predict a timeframe for production, but if the company proved up a commercially viable deposit this year it could be producing within six months of discovery. He said the foundations of Central Petroleum’s imminent success were laid by the NT Geological Survey, which in

the last decade had built up an “amazing” compendium of data for the Amadeus Basin (the Territory’s main oil-rich geological structure) in response to a dearth of petroleum exploration in the NT since the mid 1980s. The company had capitalised on many new prospects and leads generated by this data, he said. Mr Heugh said the company was in a good position financially and its joint venture partners, Petroleum Exploration Australia and He Nuclear, were partly funding exploration programs to earn interest in Central Petroleum’s eventual operating areas.


NEWS

The Mining Advocate | June 2008

Crunch time for contract conditions

Reform warning Employers in the mining industry have been told they risk being left on the back foot by impending changes to workplace relations laws. Mining companies should act now to manage the impact of the Federal Government’s new workplace relations regime, a North Queensland-based legal expert says. New conditions were recently introduced under the Workplace Relations Amendment (Transition To Forward With Fairness) Act 2008 and wider legislative changes will follow this year for implementation in January 2010. MacDonnells Law senior associate Fiona Austin, who addressed the recent Mining North Queensland conference in Townsville and submitted a paper on workplace relations reform, said about 65 per cent of mining industry employees worked under direct individual contracts. Ms Austin said employers now faced the challenge of retaining the important flexibilities of existing individual contracts as they were phased out in favour

of collective negotiations. Employers would be obliged to bargain collectively with employees and unions under the proposed legislation, she said. Bargaining would include participating in meetings, disclosing relevant business information, responding to proposals and giving reasons for decisions. Ms Austin said that unless agreements were in place, employers could be compelled to bargain at unsuitable times and in relation to unfavourable claims, and the process could lead to the unintended disclosure of business information. She said collective agreements were better made now, through employer-led approaches with a view to the future, rather than made later in hostile environments when the employer was on the back foot. Under the proposed legislative changes, 10 minimum national

employment standards will be established. Ms Austin said the proposed standard relating to work hours was likely to impact on the mining industry. The standard will provide for a 38-hour week for full-time employees and although extra hours are possible, workers will be able to refuse them if they are unreasonable. Ms Austin said the standard did not appear to easily accommodate the 12-hour shifts and 42 to 56-hour weeks (over a roster cycle) that were common in the mining industry. She said that under the current workplace relations system, work hours were averaged over a 12-month period, but no such averaging provision existed under the proposed new standard. Ms Austin said the mining industry would also keep watch on proposed standards relating to public holidays, annual leave provisions, and unfair dismissal laws. • More stories from the Mining North Queensland conference on Pages 6 and 7.

Pajingo mine technical services manager Geoff Phillips prepares for upcoming exploration work. Photo: Danielle Jesser

Golden promise Finding a series of gold deposits at Pajingo to match the success of the Vera Nancy system is not an unreasonable expectation, according to operator North Queensland Metals (NQM). Exploration work is ramping up at the North Queensland site. Technical services manager Geoff Phillips said an exploration review would be completed by August, leading to surface drilling around the mine in the fourth quarter to gather more detail about known extensions to the current Pajingo ore body. A major drilling program

would follow in 2009. Mr Phillips said discovery of a system similar to that which has yielded the ore bodies mined at the site since 1996 could lead to production of two million ounces of gold, which would equate to a 10-year mine life at 200,000 ounces per year. “There’s a very real potential for another Vera Nancy system in the 60km strike length that we’ve got (in exploration tenements), and that’s why everyone else is exploring the Drummond Basin as well,” he said. • More Pajingo stories on Pages 31 and 32.

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NEWS

June 2008 |

Fine figures for industry

The Mining Advocate

MINING AROUND THE WORLD

With billions of dollars worth of projects in the pipeline, new ABARE data shows the resources sector is still running hot despite cost pressures. Advanced minerals and energy projects valued at a record $70.5 billion nationwide indicate a positive outlook for the mining industry, according to Australian Bureau of Agricultural and Resource Economics (ABARE) executive director Phillip Glyde. A recent ABARE report on major minerals and energy development projects listed 97 advanced projects throughout Australia. Queensland accounted for 25 of these projects at a value of $9 billion, or 13 per cent of national capital expenditure on advanced projects, with more than half involving coal mining and infrastructure projects. The Northern Territory accounted for nine projects totalling $1.4 billion, with five energy and four mining projects. Western Australia accounted

for three-quarters of capital expenditure on advanced projects. Mr Glyde said that despite the positive outlook, global skills shortages and higher materials and construction costs continued to have an impact on the timing and overall costs for some projects. “Project cost pressures and delays are a challenge for the global mining industry and are expected to continue in the short to medium term while this level of development activity continues,” he said. The ABARE report listed 244 development projects nationally, including some still undergoing feasibility studies. Since October 2007, 58 new projects have been added to the list and 22 projects have been completed.

Nicholas Snow’s Now that’s a hole in the ground! - Sunrise Dam, Western Australia. Photo: courtesy of Snowden Sunrise Dam gold mine lies on the eastern shore of Lake Carey in Western Australia, about 770km north-east of Perth. It is owned by AngloGold Ashanti, the third largest gold producer in the world. The mine comprises a large open-pit operation, now in its 11th year, and an underground project. Production reached a record 600,000 ounces in 2007, according to AngloGold Ashanti’s

most recent annual operating review. Mining is carried out by contractors and ore is treated in a conventional gravity and leach processing plant. The main open pit (called the mega pit) will be completed in the second quarter of 2008, at a final depth of 440m. A cutback of the north wall of the open pit began in October 2007 and is scheduled for completion in mid-2010.

Nicholas Snow’s shot of the mega pit was highly commended in last year’s Snowden Photo Competition. This year three category prizes have been added to the competition: landscape and general setting, people and culture, and equipment and technology. The competition is open to all miners handy with a camera. For details visit www. snowdengroup. com.

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The Mining Advocate | June 2008

5

Quest for more Merlin magic An NT diamond mine is the focus of renewed drilling and test work. But can its latest owners pull another 100-carat wonder from the hat? Merlin mine in the Northern Territory has conjured up Australia’s largest diamond, but the project was nearly left to languish, according to North Australian Diamonds chief executive officer Tom Reddicliffe. Mr Reddicliffe’s Ashton Mining exploration team discovered Merlin, 720km south east of Darwin, in 1993, striking success where exploration in the previous decade had failed. CRA (later part of the Rio Tinto Group) discovered the nearby Emu kimberlite pipes in 1986, but eventually dropped the leases that would yield Merlin to Ashton Mining. “There was evidence that diamonds were there, but they (CRA) didn’t persevere - it turned out much bigger and better than they envisaged,” Mr Reddicliffe said. Ashton Mining went on to develop Merlin as an open pit mine, before the company was taken over by Rio Tinto in 2000. It was during Rio Tinto’s ownership of Merlin that a

massive 104.73-carat diamond was found. The gem stone was valued at $US525,000 in 2002 and named Jungiila Bunajina. Meanwhile, Mr Reddicliffe had taken up a position as a geologist at Striker Resources (later North Australian Diamonds). He returned to the Merlin field when the company bought it from Rio Tinto in 2004. “The project was too small for Rio Tinto when it had exhausted the open pit, but Rio Tinto did recognise that there were deeper resources,” Mr Reddicliffe said. “It is a peculiarity of the Merlin deposit that it is bigger at depth than at the surface, which is unusual for diamonds.” “It has also helped that there has been a significant increase in the price of diamonds in the last few years.” He said Merlin mine produced large white diamonds that were very valuable. North Australian Diamonds is aiming to establish sufficient

Australia’s largest diamond, Jungiila Bunajina, found at the Merlin mine in the Northern Territory.

resources for a long-term mining operation at Merlin. Mr Reddicliffe said enough resources needed to be proved up to allow for 10 years of mining at 1.5 million tonnes of kimberlite per year, equating to an annual diamond production of 400,000 carats.

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“We have 12 million tonnes shored up currently, and there is more drilling and test work to be done in the next few months leading into a feasibility study,” he said. “The operation needs to be large scale because there are a lot of resources underground and

some are suitable for combined open pit and underground mining, and there are very large development costs associated with that.” Mr Reddicliffe said it was possible another diamond of Jungiila Bunajina’s proportions could be found at Merlin.


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NEWS

June 2008 |

The Mining Advocate

Cultural awareness no phantom goal A Rio Tinto Alcan executive highlighted the value of indigenous understanding at a recent North Queensland mining conference. The simple act of conversation helped Rio Tinto Alcan (RTA) retain an indigenous worker recently when he revealed a fear of nocturnal spirits. RTA Weipa general manager Rob Atkinson highlighted the case when he spoke at the Mining North Queensland conference about the importance RTA placed on cultural awareness at the Cape York bauxite operation. He told the conference, hosted by event company Informa’s Institute for International Research, that an indigenous worker had regularly failed to turn up for nightshift at the Weipa mine. Rather than being the result of poor work ethic, the company discovered when it talked to the worker that he was afraid of the

dark and the spirits of the night. “Without this understanding, he could have quite easily been dismissed,” Mr Atkinson said. Instead, the worker’s shifts were re-arranged. RTA’s Weipa operation employs 156 indigenous workers. A further 38 indigenous trainees and 14 indigenous apprentices are based on site. Mr Atkinson said many indigenous employees spoke creole and company policy recognised the right of employees to speak their languages at work. He said a training DVD had been produced in English and creole that contained frank accounts from indigenous workers about working at the mine. Mr Atkinson said all employees and contractors at the mine

undertook two days of cultural awareness training presented by traditional owners working for a local indigenous business. Mr Atkinson said another example of RTA’s constructive engagement with the community was the provision of drug and alcohol tests for individuals considering applying for jobs at the mine which were nonprejudicial if positive results were returned. He said the tests were introduced in response to occasions where formal job applicants had passed through all of the employment requirements, only to fail drug and alcohol tests at the final medical examination. The company suggested lifestyle changes to individuals who returned positive results on the pre-application tests to help them prepare for formal applications for employment at the mine, Mr Atkinson said.

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Spotlight on labour strategies

All in the family Employers have been urged to look beyond the individual worker’s welfare to secure good staff. A focus on family satisfaction was identiďŹ ed at the recent Mining North Queensland conference as a key strategy for recruiting and retaining workers. Gayleen Toll, managing director of Cairns employment agency Precruitment, was one of four panellists given the task of analysing skills shortages and labour challenges in North Queensland. Ms Toll said when workers moved to the region from elsewhere in Australia, help must be oered to families as well as to the individual employees as part of a holistic approach to securing much-needed sta. She said families often needed assistance with the move and help with establishing a new lifestyle at their destinations. Cairns Chamber of Commerce president Jeremy Blockey believed a more realistic attitude

was needed towards education. He said some youths had high aspirations but were not suited to carry on to Year 12 at school. Australian Technical Colleges and TAFE colleges were better options for students who were not academically minded. Dawsons Engineering project manager Pascal Deerrard said it was a common myth that workers could simply walk into permanent full-time jobs in the mining industry due to the skills shortage. He said the media had a lot to answer for in terms of raising jobseekers’ expectations too high. Australian Regional Agriculture and Mining Skills project manager Dennis Hoiberg (from RimďŹ re Resources) urged industry to try something dierent in recruitment, because simply relying on current strategies was not working.

Australian Regional Agriculture and Mining Skills project manager Dennis Hoiberg, Cairns Chamber of Commerce president Jeremy Blockey, Dawsons Engineering project manager Pascal Defferrard and Precruitment managing director Gayleen Toll. Photo: Stewart McLean

Ports step up to meet mine boom The growing minerals handling strength of Townsville and Darwin ports was highlighted at the Mining North Queensland conference. Townsville Port Authority general manager of operations Matthew O’Halloran said planned expansion of the Port of Townsville would capture the

beneďŹ ts of about $500 billion of known mineral deposits in the North West Mineral Province. He said a preliminary engineering study was being made on the construction of extra berths at the port, as part of a vision for a 30-milliontonnes-per-annum port by 2030. Meanwhile, AustralAsia Trade

Route director Adrian Sammons said a recent contract between Oxiana and the Port of Darwin conďŹ rmed that centre as the northern gateway for mineral exports. He said Oxiana would export about 240,000 tonnes of copper concentrate annually out of Darwin from its Prominent Hill mine in South Australia.

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NEWS

June 2008 |

The Mining Advocate

African riches await recruiters A Darwin-based immigrant recently briefed NT businesspeople on the pros and cons of sourcing skilled labour from her homeland. Southern Africa is a rich recruiting ground for mining industry workers, but care must be taken when dealing with workers who have been compelled to migrate, according to Deborah Hall. Ms Hall is a working professional in Darwin and an immigrant from southern Africa. She recently addressed a Northern Territory Chamber of Commerce networking function on skills seeking in the region. Ms Hall told The Mining Advocate that the mining industry was a large employer in southern Africa and migrants were often already familiar with mining company procedures and cultures when they arrived in Australia. She said southern Africans

were traditionally seen as resourceful thinkers, as encapsulated in the much-used phrase “n boere maak n plan” (an Afrikaner will make a plan). However, Ms Hall said some southern Africans were being forced into migration by their poor circumstances. “The economic and political woes of the region are increasing interest in migration, (but) there is potential for individuals to be so desperate to leave that they accept any option and then find themselves in a situation where their expectations are not met, increasing the trauma of the move,” she said. Ms Hall said Northern Territory employers should offer southern African immigrants a network of support that provided

honest advice and understanding of the issues they were dealing with. She said workers who migrated to Australia for better economic and political circumstances were usually motivated to succeed as not many harboured thoughts of moving back to southern Africa. Ms Hall grew up on a farm in Zimbabwe and attended university in South Africa. Before moving to Darwin in 2005, she lived in a remote mining town in the diamond fields of Namibia and spent six years in Port Moresby. She said that before moving to Darwin, her husband’s company had arranged a visit ahead of time. This allowed them to survey their destination and begin establishing a social network before moving. The Northern Territory Government and NT Chamber of Commerce have recently

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The Mining Advocate | June 2008

9

Giant leap for northern miner Kangaroo Metals is among a band of minerals players harnessing new technology to boost exploration efforts in the far north. Kangaroo Metals is combating the delays and costs of commissioning radiometric and aerometric services by investing in exploration technology closer to home. With tin, antimony and gold prices hitting record levels, the company was not prepared to lose money by waiting months for existing services out of Perth and Sydney. So it spent about $500,000 fitting out a chartered helicopter in Cairns which will be used to explore its polymetallic tenements on the nearby Atherton Tableland. Heli Charters Australia operations manager Nigel Coleman said the helicopter exploration program would operate as a joint venture between that company and Kangaroo Metals. The Cairns-based air charter company offers a range of services to industry, including mine and geological surveys. Kangaroo Metals exploration manager Dr Brian New said a consultant in Melbourne would

interpret the geophysical data. The service should be up and running by August. But the specially equipped helicopter is only one of the hitech tools being turned effectively to North Queensland exploration. Companies have recently used ever-improving Induced Polarisation (IP) technology to their advantage in the region. IP technology has existed for decades, but technical advances have made it easier to use and more widely applicable to different types of terrain, as Gold Aura discovered at its Croydon zinc project on the Atherton Tableland. IP surveying applies electrical current to the ground through metal electrodes, with measurements taken by separate surface electrodes. In conductive rocks (sulphide mineralised and/or saltwaterladen material) the current is readily transmitted, whereas in resistive rocks (dry and unmineralised) the current is poorly transmitted. Gold Aura said it undertook IP

The specially fitted helicopter will be making exploration flights by August.

surveying of an anomalous area to determine whether the technique was able to identify sulphide mineralisation previously intersected by drilling in the basement rocks under about 120m of sedimentary cover. It was considered possible that the sedimentary cover

could prevent sufficient current penetration to reach the basement rocks, thus foiling the survey. However, the company said positive results from IP surveys clearly demonstrated that the technique was effective in detecting sulphide mineralisation

Photo: Romy Siegmann

at Croydon. It plans to use it in wider regional exploration programs. Axiom Mining also recently used IP surveys effectively at a silver, lead, zinc and gold tenement near Chillagoe on the Atherton Tableland.

Full steam ahead for crucial pipeline

Macmahon Contractors and CW-DC won last year’s Engineering Excellence Award in the Northern Territory for the Darwin Waterfront Project seawall and the Darwin Convention and Exhibition Centre pad (pictured above).

Engineering’s excellent adventure Engineers Australia’s Northern Division will hold its Engineering Excellence Awards at the new Darwin Convention and Exhibition Centre on September 5. Entries have been received from all over the Northern Territory, with this year’s event sparking unprecedented levels of interest.

Registrations for the People in Engineering Awards section are still open and entry forms can be found at www.engineersaustralia.org.au/ divisions/northern-division/engineering-excellenceawards/engineering_excellence_awards.cfm. To book a table at the Engineering Excellence Awards gala dinner call (08) 8981 4137.

Work is under way on a new $170 million gas pipeline that will secure the Northern Territory’s energy supply needs for 25 years. NT Chief Minister Paul Henderson recently travelled to Ban Ban Springs, about 150km south of Darwin, to inspect construction of the Bonaparte gas pipeline, part of Eni’s Blacktip project. Eni will pipe gas from the Blacktip field in the Timor Sea to a new treatment plant near Wadeye. The gas will then be transported through the 285km Bonaparte pipeline to Ban Ban Springs, where it will connect with an existing gas pipeline running from Alice Springs to Darwin. “The construction of the Bonaparte pipeline is the next step in the agreement for the Power and Water Corporation to purchase gas from Eni to run power stations across the Territory,” Mr Henderson said. “About 300 jobs will be created during the fivemonth construction of the pipeline.” Workers would live in

mobile camps along the route, he said. Mr Henderson said more than $70 million in opportunities for Territory businesses had already been identified, including camp accommodation and supplies, civil engineering, plant hire and equipment and personnel transportation. AJ Lucas has been contracted to construct the Bonaparte pipeline and Mr Henderson said the company was working closely with the Northern Land Council to identify job opportunities for indigenous Territorians. Engineering group Monadelphous has been contracted to supply, fabricate and assemble process modules for the Wadeye plant, as well as provide logistics, hook-up and pre-commissioning. The entire project is expected to inject about $500 million into the NT economy and it is expected to supply gas to the Power and Water Corporation by January 2009.


10

NEWS

June 2008 |

The Mining Advocate

City flaunts its liquid assets With North Queensland set to defy a trend of dwindling annual rainfall, business leaders sense economic opportunity in the air. of the country is suffering from the drought,” she said. “We believe bringing waterintensive industries to the region is a solution – in that it will lighten the load being placed on other regions.” Townsville boasts water storage facilities that can hold a total of more than two million megalitres, and the Burdekin Dam provides a backup supply. “We encourage those industries traditionally located around major urban centres in southern Australia that rely on cheap and reliable water supplies to think about moving north,” Dr McDonald said. “There is already a hub of industrial activity in the region to provide the support services and value chain services large businesses need.”

Townsville is well positioned to host water-intensive industries in an era of climate change, according to the city’s peak development and marketing organisation. Townsville Enterprise stated that the latest report from CSIRO and the Australian Bureau of Meteorology on climate change in Australia showed North Queensland’s annual rainfall to 2030 was unlikely to change significantly, in contrast to predictions for southern Australia. TEL economic development general manager Dr Lisa McDonald said the predictions showed Townsville was well placed to service new industries. “We are mindful of the need to be sustainably using water resources at a time when much

Townsville Enterprise hopes the region can capitalise on well-stocked storage facilities like the recently upgraded Ross River Dam by attracting more water-intensive industrial development. Photo: Stewart McLean

Transport operators urged to ditch diesel

Lucrative prospects in PNG An Austrade-Papua New Guinea seminar held in Townsville recently highlighted lucrative prospects in supplying the growing resources sector on Australia’s doorstep. The seminar was held in conjunction with the PNG Investment Promotion Authority (IPA). Austrade senior trade commissioner in Port Morseby, John Brand, and IPA managing director Ivan Pomaleu outlined trade and investment opportunities. They likened the supply opportunities in PNG oil, gas and minerals arenas to those of the booming Australian sectors. The pair also detailed improvements being made in infrastructure and utilities like power, transport and water which served to underlie growth in PNG.

Northern Austrade Queensland regional manager Brett Henderson, PNG Investment Promotion Authority managing director Ivan Pomaleu and Austrade senior trade commissioner in Port Morseby, John Brand.

“This is not a market to be underestimated by suppliers in northern Australia,” Mr Brand said. There were some myths and

realities about doing business in PNG which were best addressed by visiting the market and utilising Austrade services, he said.

M A C K E Y & WA L E S

Large truck fleets should be powered by natural gas rather than diesel, according to independent petroleum industry analyst Peter Strachan. Mr Strachan said natural gas was less than a quarter of the price of diesel, meaning companies could make “massive” savings from conversion. “For the one-off cost of establishing their own refuelling stations, companies operating long-haul truck fleets could thumb their nose at diesel and petrol prices that are set to go in only one direction – upwards,” he said. “Providing natural gas as an alternative fuel choice for cars would require an

enormous investment in fuelling infrastructure, but it’s not such a big problem for trucks and buses equipped with long-range tanks and access to fuelling depots, where they can use either compressed natural gas or liquefied natural gas (LNG). The conversion technology is available and some buses and trucks are using LNG in Western Australia.” Mr Strachan will address the 2008 South East Asia Australia Offshore Conference in Darwin, July16-18, where gas will be a central focus of energy discussion. For more information visit www.seaaoc.com.

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PEOPLE

The Mining Advocate | June 2008

11

All the right connections Cannington mine co-ordinator Sharon Smith

main tasks of a mine coordinator? SS: I have to keep track of all people and machines underground and enter it all into the database. A lot of things change during the day. We start off with a basic plan and if something goes down we’ll perhaps need to send a truck somewhere else. It all depends on how the day goes. If there is an emergency underground or on the surface, the whole emergency response is co-ordinated through here.

Photo: Stewart McLean

Sharon Smith might be tempted to sing Harry Nilsson’s hit song “Everybody’s Talkin’” on the way to work each day, but unlike the balladeer she hears every word they’re saying. Ms Smith has been

jumping between radio, computer and telephone for the last four years as a mine co-ordinator at BHP Billiton’s Cannington silver, lead and zinc operation, 200km south-east of Mount Isa. The operation uses a PitRAM (pit recording and monitoring) system, which was originally designed for use in

open cut mines but has been adapted for underground mining at the Cannington site. Ms Smith keeps tabs on all underground and above-ground movements from the PitRAM station. She recently shared her experiences with The Mining Advocate. Q: What are the

Q: How often do you receive radio calls each day? SS: Fairly often, the beginning and end of shift are usually the most hectic. There are usually 80 or so people underground and I have to touch base with them all. Q: What happens if there is a breakdown underground?

SS: The operators will call me and tell me they’re down and I’ll log it. If they’ve got trucks with them, I’ll send them somewhere else underground. They will then call the fitter and explain what’s wrong.

and two radios in the PitRAM centre, so it can be pretty chaotic. Q: Are you able to get away from it all during breaks? SS: No, even if we go to the toilet, we have to take the radio and the phone.

“There are two phones and two radios in the PitRAM centre, so it can be pretty chaotic” My role is to log the problem into the computer to capture that information and usually make changes to keep things moving. Q: Does the high volume of radio calls make your job difficult? SS: There is a large number of radio calls, but there are also interruptions on the phone. People sometimes don’t realise I’m on the phone and they want me to answer their radio calls straight away. There are two phones

At the end of the day it’s pretty full-on. I start work at around 5am and knock-off at 6pm. Before doing this I was a miner and I can say that this job is more mentally demanding. Q: Do you have any special techniques to deal with the pressures of your job? SS: I just need to communicate well with people. And I do need to have a really good sense of humour.

Resourceful Fiona aims high “I haven’t looked back. I enjoy living in Mount Isa as, having been brought up in Broken Hill, I have always been familiar with mining towns, the country atmosphere and supportive community that it provides.” While away from work,

George Fisher mine senior human resources advisor Fiona Pascoe Photo: Ruth Fahey

soccer field might be one thing, but Ms Pascoe has goals of another kind on her mind. “My career goal is to be the first female manager for Xstrata Zinc,” she said. “The mining industry has given me many opportunities.

“My career goal is to be the first female manager for Xstrata Zinc”

Opportunity knocked at Mount Isa for Fiona Pascoe and she is glad she opened the door. For the past two years Ms Pascoe has worked for Xstrata Zinc at George Fisher mine. “Currently I am a senior human resources advisor for George Fisher

mine and Handlebar Hill open cut,” she said. Ms Pascoe deals with areas including recruitment and selection, performance management, employee relations and compliance with Xstrata Zinc policies, procedures, systems and standards. “The best aspect of my job is the involvement with employees on a

daily basis,” she said. “I really love my job and enjoy working here.” However, Ms Pascoe never really intended to settle in Mount Isa. After a stint travelling overseas, Ms Pascoe came to visit family members who had recently made the mining city home. Like so many others, a fleeting visit turned into a decision to move there.

“When I arrived in Mount Isa I was offered numerous work opportunities,” Ms Pascoe said. “I realised that if you are prepared to work and learn, then Mount Isa can provide you with an abundance of career opportunities. “I saw the potential to develop my career and I decided to relocate.

Ms Pascoe loves spending time with friends as well as her younger sister Kate and brother Stuart, his wife Rebecca and their sons Jonas and Austin – all of whom are relative newcomers to the city. “I’m fortunate to have two of my siblings here in Mount Isa with me,” she said. “I also enjoy time socialising with my friends and I’m involved in various sporting clubs. “This season I am playing softball and soccer, so that keeps me quite busy.” Kicking goals on a

“As I was just promoted in October 2007 to senior human resources advisor, this year I am aiming to consolidate my experience whilst taking on new projects to further develop my experience. “In the two years I have been with Xstrata Zinc, I have not only gained valuable sitebased HR (human resources) experience but have developed my knowledge of operations.”


12

INDUSTRY UPDATE

June 2008 |

The Mining Advocate

Offshore permits

Minotaur announces copper discovery Minotaur Exploration says drilling on the Surprise tenement, 60km north-west of Cloncurry in North Queensland, has resulted in a new copper discovery. Exploration director Tony Belperio said four reverse circulation holes totalling 438m had been drilled within a 5km copper-anomalous corridor. Three regional electrical geophysical profiles across this corridor were processed and modelled by Minotaur Exploration, with the drilling being designed to test isolated chargeable anomalies on these profiles, he said. Minotaur Exploration is exploring the project with joint venture partners Gateway Mining. The project involves two exploration permits and four mining leases. It includes the historic Surprise Mine, its northern and southern strike extensions and numerous prospector pits and historical workings in the central and north-eastern parts of the project. Minotaur Exploration also announced recently that reconnaissance drilling at the Duchess project, 80km south-west of Cloncurry, had intersected broad zones of copper mineralisation and a significant gold intercept. A program of five drillholes for 793m tested a variety of geophysical and geochemical anomalies, and evaluation of the drilling results in the context of their regional structural setting is continuing. The project is subject to a joint venture agreement between Minotaur Resources and Cullen Resources.

Mt Lucy prospect sold InterMet Resources will receive $3.83 million from the sale of its Mt Lucy iron ore prospect, 130km west-south-west of Cairns in North Queensland. The prospect will be purchased by the Australian Jinhua Mining International Group. InterMet Resources managing director Gary Ferris said Mt Lucy was an outcropping hill of magnetite that had the potential for a low-tonnage iron ore deposit. He said a review of the tenement had determined that it no longer formed a core asset in the company’s North Queensland tenement portfolio in comparison to larger targets including the Paddy iron ore prospect, 15km west of Mount Garnet. He said InterMet intended to conduct a major drilling program on its priority iron ore prospects in mid 2008, and delineation of a resource within these prospects had exceptional potential to lead to a direct shipping operation.

Hammering away Drilling has begun at the Hammer Hill project by nickel explorer Mithril Resources. The team is searching for nickel in the form of nickel sulphide. BHP Billiton and rare earths junior Arafura Resources are joint owners of the project, which is part of the Harts Range tenements, about 180km north-east of Alice Springs in the Northern Territory. According to Mithril Resources, the first drillhole at the Hammer Hill project intersected a 6.25m interval of stringer and disseminated sulphides from a downhole depth of 341.75m.

Going down A $10 million underground decline project at George Fisher Mine is on track to join the north and south mining operations of the underground mine. The KG53 decline/incline project began in late 2007 and will provide the mine with an additional means of access between George Fisher North and South. The access will be used to truck ore from George Fisher North and South Upper Mining Block (colloquially known as ‘the blob’) across to George Fisher South and then out of the mine through the portal via the U59 surface decline. George Fisher Mine manager Geoff Hender said

Northern Territory Mines and Energy Minister Chris Natt and Federal Resources Minister Martin Ferguson have announced that $230 million will be invested in five new offshore petroleum permits. “Mining and energy production and extraction in the Territory is set to grow by 34.3 per cent to $7.5 billion in 2008-09,” Mr Natt said. The new exploration areas are located in the Bonaparte Basin.

Top results for E1

Drilling at the Surprise project near Cloncurry.

the access was being developed concurrently by two groups: from George Fisher South as a decline from 4 Level by an Xstrata Zinc development team, and as an incline from 8 Level at George Fisher North by a Downer EDI Mining team. “The teams are working hard to ensure the holing between the decline and incline is completed by the scheduled date of the fourth quarter 2008,” he said.

Helium project takes off Construction of the southern hemisphere’s first helium plant is set to start in Darwin this month, with tenders being prepared. BOC Gases will begin work on the $5 million plant next to the Wickham Point liquefied natural gas (LNG) plant and is looking for Northern Territory companies to build it. Project director Rod Heather said the company would be looking for suppliers through the NT Industry Networking Capability Network. He said that since signing the deal to build the plant last September, BOC had been working on the procurement process to source equipment. The factory will take waste from the Wickham Point LNG plant, previously released into the atmosphere, and extract helium. BOC aims to produce about 780 tonnes of liquid helium each year, worth about $20 million.

Survey data available New geophysical information has been released for the Charters Towers area in North Queensland. Queensland Mines and Energy Minister Geoff Wilson said the latest data from the Charters Towers gravity survey would help target gold and base metal exploration. “The survey covered an area of approximately 130,000sq km surrounding Charters Towers and extending north towards Ingham and Georgetown, south-west to Hughenden and south-east towards Moranbah,” he said. He said the new gravity data would help to reduce the cost, risk and uncertainty involved in exploration by helping explorers to narrow down their search to areas that were considered prospective. All geophysical survey data acquired for Queensland is released on the Geoscience Australia website: www.geoscience.gov.au/gadds.

Exco Resources announced that recent drilling results from its E1 North Deposit provided further evidence that the ore zone was much thicker at depth than estimated in the project’s current resource model. Managing director Michael Anderson said the E1 Camp, located 40km north-east of Cloncurry in North Queensland and about 8km east of Xstrata’s Ernest Henry mine, hosted total known resources of 31.1 million tonnes containing 260,900 tonnes of copper and 240,700 ounces of gold. He said the current drill program, which comprised a further 10,000m across the camp’s three deposits, was aimed at identifying additional potential and maximising resource conversion to the indicated category. The program was scheduled for completion early in the third quarter of 2008, Mr Anderson said. Recent results would be incorporated into an upgrade of the E1 North resource model for a bankable feasibility study on the Cloncurry copper project, he said.

Hunting hot rocks Terra Estus Resources has been named as the preferred tender for three new areas of geothermal exploration at Karumba, in the Gulf of Carpentaria. Queensland Mines and Energy Minister Geoff Wilson said geothermal had the potential to produce more base-load energy than any other renewable energy source and was also a greener source of energy for power generation in Queensland. He said the 13 successful tenderers for the new exploration areas in Queensland had to undertake a native title process before geothermal exploration permits could be granted.

MRM appointment Former senior media advisor to the Northern Land Council and journalist for Imparja Television, Barry Clarke, has been appointed as an on-site community relations officer at Xstrata’s McArthur River Mine. “Together with a community relations advisor based in Borroloola and a graduate community relations officer, Barry will be the human face of the mine and help deliver programs which contribute positively to the local community, a key priority for MRM (McArthur River Mine),” Xstrata Zinc chief operating officer Brian Hearne said. The mine is about 60km from the township of Borroloola in the Northern Territory.

Citigold cashed up Citigold has raised $3.725 million through a recent share placement to international investors. Managing director Mark Lynch said the funds would be used for working capital on programs including an initial extension of the western decline at Charters Towers South and related infill diamond core drilling program. Citigold owns the historic central goldfields at Charters Towers in North Queensland.


INDUSTRY UPDATE

The Mining Advocate | June 2008

13

Promising intersections Conquest Mining has announced that recent exploration and infill drilling at its Silver Hill deposit, south of Townsville in North Queensland, intersected significant extensions to the Area 39 silver zone mineralisation and a spectacular sulphide zone on the north-eastern side of the deposit. Managing director John Terpu said it was anticipated these intersections would add to the Mt Carlton project resource.

Twin Hills find BMA Gold says a recently completed air core drilling program at its Twin Hills project has been successful in identifying new areas of co-incident, anomalous gold and arsenic assay results south of the 309 deposit and west of the Lone Sister deposit. Managing director and chief executive officer Mark Wheatley said such anomalism was often associated with the presence of underlying gold mineralised structures that could be assessed with deeper drilling. The Twin Hills project is west of Mackay in central Queensland. Mining operations at 309 mine and the haulage of ore 280km to Rishton treatment plant at Charters Towers in North Queensland ceased in the first half of 2007, with the company now aiming to significantly increase the resource base at Twin Hills to a level that would support a processing plant located on site or within the region.

Asian connection Republic Gold has appointed a new non-executive director, Dato Choo Beng Kai. Republic Gold managing director John Kelly, said the company welcomed Dato Choo as a shareholder last year and now as a director. “His contacts in Malaysia and further afield in South-East Asia will be important for the company’s future development,” Mr Kelly said. “Importantly, Dato Choo is fluent in Mandarin, which has already been a great assistance for the company in its dealing in China and will be even more so into the future.” Republic Gold has a number of gold and tungsten tenements in the Hodgkinson Basin in far north Queensland.

Mt Malakoff changes hands Universal Resources has entered into a sale and purchase agreement with Newcrest Operations to acquire the Mt Malakoff exploration tenement. Chairman and managing director Peter Ingram said the tenement had potential for the discovery of rollfront style uranium mineralisation. He said Universal Resources held a number of tenements within the Mount Isa Inlier that were prospective for uranium and the acquisition of Mt Malakoff would complement the potential of the company’s existing Malakoff tenement.

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New CEO worked his way up SunWater ranks A new chief executive officer has been appointed to Queensland bulk water supplier SunWater. Peter Boettcher has become SunWater’s second CEO since it was established as a corporation in 2000, following last year’s retirement of Peter Noonan. Mr Boettcher said he looked forward to leading SunWater into the future and leveraging the company’s strong market position into new areas of growth. “SunWater is the clear leader in the development of bulk water infrastructure in regional Queensland,” he said. “It is essential that SunWater works closely with the Queensland resources sector to ensure that the necessary water infrastructure is available to support that industry’s continued development.” As CEO, Mr Boettcher is responsible for ensuring continued improvement of the corporation’s commercial performance and expanding the range of services it offers. SunWater chairman Phil Hennessy said the appointment followed an extensive Australia-wide search by the board for suitable candidates to lead SunWater as it diversified its business offerings. Mr Hennessy said Mr Boettcher had previously held the roles of general manager, chief operating officer and acting CEO. “His strong leadership abilities and astute business acumen has only been reinforced during his time as our acting CEO,” Mr Hennessy said.

Watershed upgrade Vital Metals has received an increased resource estimate from Coffey Mining for its Watershed scheelite (tungsten) deposit. Vital Metals managing director Andy Haslam said the new estimate was for a global resource tonnage of 32.75 million tonnes, up 50 per cent from the previous estimate. “This is a significant increase in resource size and will now enable us to proceed to full mine planning and optimisation studies, which task has been contracted to Design Support,” he said. “All grade-tonnage scenarios will be considered in the preparation of the feasibility study for this deposit.” The Watershed project is about150km north-west of Cairns.

Successful sampling Sovereign Metals has announced that recent mapping and sampling at the Tate River project, 200km west of Cairns, extended the newly discovered Piccaninny epithermal vein system to 8.5km of outcropping veins. A reverse circulation drill rig has been contracted

New SunWater CEO Peter Boettcher

“It was these strong leadership capabilities, combined with his deep understanding of the nature of SunWater’s business, its challenges, and opportunities that made Mr Boettcher a clear choice for the CEO role.” Mr Boettcher holds a Bachelor of Engineering from the University of Southern Queensland and an MBA from Deakin University. SunWater provides direct water supply services to a large number of customers including mines, power generators, local government and irrigators.

through Well Drilled and is expected to be on site this quarter, with about 5000m of shallow drilling planned at the project’s Piccaninny and Golden Myall prospects during the first drilling phase. The Tate River tenements are owned by Fusion Resources, with Sovereign Metals operating an exploration joint venture.

Positive results for Matilda Matilda Minerals has announced positive results from its second reconnaissance program at the Urquhart Point zircon and rutile prospect on Cape York Peninsula. Managing director Bruce Maluish said the followup drilling program, completed in March, had extended the known mineralisation and shown that previously drilled strands extended to a distance of over 3km to the south. “The results also give us great confidence of further significant zircon and rutile mineralisation on our other tenements, which cover 300km of the Cape York western coastline,” he said.

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14

INDUSTRY UPDATE

June 2008 |

nickel operation today has guaranteed the economic future of the Yabulu refinery,” he said.

GBS Gold riding high with good results for Tally Ho GBS Gold has upgraded the resource estimate for the Tally Ho lode system, the source for its Fountain Head open pit mine within the Union Reefs operations centre near Pine Creek in the Northern Territory. The company stated that recent drilling specifically targeted the area beneath the existing open pit design on the Tally Ho lodes. It improved the resource classification and elevated the average grade. The new resource estimate for Tally Ho lists indicated resources of 814,000 tonnes at 2.3g per tonne for 61,000 ounces of contained gold, and inferred resources of 260,000 tonnes at 2.9g per tonne for 24,300 ounces of contained gold. GBS Gold stated that the higher grades and increased ore body thickness tended towards a cut-back to the existing pit design to extract the material, and the results suggested scope for deeper mineralisation that could support an underground mining operation, with the Tally Ho lodes open down plunge. The updated resource estimate incorporated the known deposit to a vertical depth of about 130m beneath the current open pit floor. Additional drilling is due to begin soon to further increase the contained ounces within the system.

Fresh target for Axiom Axiom Mining says application of advanced geophysical software to historical magnetometer, Induced Polarisation (IP) and resistivity data has defined a promising new target at its Split Rock prospect. The company stated that previous drilling to the west of the new target area had intersected wide copper mineralisation similar to Kagara’s Red Dome and Mungana mines. The new target was largely untested by drilling and was significantly larger than the western area anomaly, the company stated. The Split Rock prospect is part of Axiom Mining’s Cardross Project, about 45km west of Chillagoe in North Queensland. Meanwhile, the company also announced that an IP geophysical survey had begun along a 2km strike length of the mineralised Nightflower fault. The company’s Nightflower exploration tenements are located 35km north of Chillagoe and cover a number of base and precious metal occurrences known to be economically significant.

Krucible contracts Krucible Metals has signed contracts for two drill rigs to test various phosphate, base metal and gold targets at its Georgina East project, about 150km south-east of Mount Isa in North Queensland. Managing director Tony Alston said drilling was scheduled to begin in mid to late June.

Phosphate fortunes rising Superior Resources plans to follow up on the phosphate potential at its tenements. Managing director Ken Harvey said a substantial rise in the price of phosphate had led to increasing interest in exploration for phosphate deposits in north-west Queensland, where the large Phosphate Hill phosphate operation was located. He said Superior held a number of exploration permits for all minerals - including phosphate - in the area, with the Dajarra and Inca project tenements having the most potential. The company would continue to maintain a strong focus on the discovery of large copper and lead, zinc and silver deposits in the area, he said. Superior recently began drilling at its Lagoon Creek uranium prospect in the Myally Project area, 170km north of Mount Isa.

The Mining Advocate

Potential gold zone Emmerson Resources has reported significant initial results from its maiden drilling program in the Tennant Creek mineral field in the Northern Territory. Managing director and chief executive officer Rob Bills said new interpretation of geophysics, geology and geochemistry had revealed a potential new gold mineralised zone at the West Gibbet prospect. He said West Gibbet was one of many priority exploration prospects within the company’s pipeline of brownfields projects in the area, and systematic testing of these prospects was continuing. GBS Gold’s Fountain Head open pit operation.

The Tally Ho lodes were discovered by GBS Gold geological personnel in late 2006 and were quickly expanded and brought into production. GBS Gold’s mineral resources currently include indicated resources of 22.5 million tonnes at an average grade of 3.4g per tonne for 2.5 million ounces of contained gold, plus inferred resources of 20.3 million tonnes at 2.5g per tonne for 1.6 million ounces of contained gold. This resource position does not reflect drilling recently completed in the company’s Chinese Big Pit project area, for which a resource update is expected later this year. Development of the Tom’s Gully underground operation, within the Union Reefs operation centre, has begun, and the mine is expected to be producing in the third quarter.

Drilling at Clayholes Dam Anchor Resources has begun reverse circulation drilling at its Clayholes Dam gold prospect, part of the Greenvale East Project in North Queensland. Managing director Trevor Woolfe said local company OME Drilling had been contracted to undertake an initial program of six reverse circulation drillholes totalling about 1100m, with diamond drilling to follow. He said the drilling program at Clayholes Dam was to be half funded by the Queensland Department of Mines and Energy after Anchor was successful with its proposal under the government’s 2007 Collaborative Drilling Initiative.

High hopes for Khartoum Auzex Resources announced that results from early exploration work at its Khartoum tin project, 100km south-west of Cairns, indicated the potential for discovery of a new world-class tin deposit. Executive chairman John Lawton said exploration to date suggested a mineralised system with a conceptual tonnage potential of between 80 and 120 million tonnes. He said spectral processing of satellite imagery had also highlighted considerable potential to increase the scale of the Khartoum project outside of the area defined by current exploration.

Browns Oxide on track The commissioning of Compass Resources’ Browns Oxide project is on track for completion this month. The company stated that the primary crusher, apron feeders, conveyors and process water system had been satisfactorily run, and power had been connected to the mill system and various ancillary equipment. The project, located in the Northern Territory’s Rum Jungle mineral field, is expected to produce about 10,000 tonnes per annum of copper cathode, 1000 tonnes of cobalt and 800 of nickel in a carbonate precipitate.

Nickel supply secured BHP Billiton’s Ravensthorpe nickel operation in Western Australia, supplying feed for Townsville’s Yabulu refinery, has officially opened. Federal Member for Herbert Peter Lindsay attended the opening ceremony. “The opening of the BHP Billiton Ravensthorpe

Uranium promise Uranium Equities believes repetitions of Ben Lomond-style uranium mineralisation could be found within its Narraweena exploration licence, 35km west of Townsville. Managing director Mark Chalmers said reconnaissance sampling of uranium anomalies (which were detected in new airborne radiometric data) had confirmed the presence of outcropping high-grade secondary uranium mineralisation in three locations 3km south-east of Mega Uranium’s Ben Lomond deposit. He said the next phase of exploration would involve systematic sampling and geological mapping of the full extent of each location.

Uramet exploration plans Uramet Minerals announced that a detailed review of an exploration data base covering the Georgina Basin in the Northern Territory and Queensland had confirmed a number of phosphate mineralisation occurrences within the company’s existing tenement holdings. Managing director Bill Hewitt said the Thorntonia project tenements, adjacent to the substantial Lady Annie phosphate deposit near Mount Isa in North Queensland and the Boat Hill project tenements in the Alice Springs region of the Northern Territory, would be drilled during the current field season if rig were available. Mr Hewitt said Uramet Minerals’ corporate history and its tenement package had been focused entirely on the Georgina Basin and it was well placed to launch a successful exploration program for economic phosphorite deposits.

Redbank raring to go Redbank Mines has announced the completion of a 1600m in-fill drilling program as part of the definitive feasibility study for the Redbank oxide copper project expansion. Managing director Jerome Vitale said final independent laboratory assay results received for the reverse circulation holes completed at the project’s Redbank, Azurite and Bluff deposits exceeded the preliminary results reported from the field portable X-ray fluorescence machine. He said a revised mineral resource estimate would be generated by the company’s consultants and detailed pit planning and mine scheduling would begin when final results from the drilling program were received.

Indigenous firm wins Pardoo work Western Australian company Atlas Iron has awarded a key contract for its upcoming Pardoo project to a Northern Territory-based company. CDE Capital, a privately owned and majority indigenous-controlled company, will conduct drilling and blasting, excavation, and hauling of ore and waste at the Pardoo mine site for four years. Iron ore is expected to be exported from the mine, 75km east of Port Hedland in Western Australia, from October this year. CDE Capital also has contracts for mining at Tanami Gold’s Coyote Mine (NT), civil works and mining equipment hire at CopperCo’s Lady Annie mine (North Queensland), and plant and labour hire at Xstrata’s MacArthur River Mine (NT).


INDUSTRY UPDATE

The Mining Advocate | June 2008

15

Shipping upgraded Swire Shipping has announced an extensive upgrade of its Darwin services. In a first for Darwin, the company will offer a direct service to the ports of Hong Kong, Taichung and Kaohsiung (Taiwan), Ho Chi Minh City (Vietnam), Sri Racha (Thailand) and Singapore. The Northern Territory Government said the 12-day transit on offer from the Vietnamese port would assist ongoing efforts in building trade with this growing market. The expanded services offered by the company would also assist export opportunities to Noumea, Fiji and New Zealand. Swire Shipping has also increased the frequency of its Australian East Coast-to-Darwin and Darwin-toSouth East Asia service to twice a month.

Faith in Alice The first comprehensive economic report about Alice Springs has revealed business confidence in the town is high. Northern Territory Regional Development Minister Kon Vatskalis recently unveiled the Alice Springs Economic Profile, the result of a survey conducted in November 2007 to obtain information on Alice Springs’ economic position and provide information to investors about key existing and future projects in the region. The results indicated that 74 per cent of businesses surveyed expected sales to increase in value and 61 per cent expected profitability to increase. Copies of the report can be viewed at www.nt.gov. au/business.

Overseas interest Overseas companies have shown an interest in exploring four areas recently released by the State Government in north-west Queensland, according to Mines and Energy Minister Geoff Wilson. “Applications were received from companies from South Korea, China and the United States of America, as well as Australia,” he said. The applications were being assessed and the successful companies were expected to be known soon, he said.

Heritage award Engineers Australia has established the John Monash Medal to recognise outstanding contributions made by individuals towards increasing the awareness and conservation of Australia’s engineering heritage. The medal is awarded by Engineering Heritage Australia, a special interest group of Engineers Australia, and is open to non-members of Engineers Australia. For more information on the initiative visit www. engineersaustralia.org.au.

Training Timorese engineers Charles Darwin University (CDU) and ConocoPhillips recently brought 11 Timorese engineers to the Top End for training aimed at furthering their careers. CDU mining, engineering and fabrication program manager David Cook said the main focus was to provide students with hands-on training which could be applied in potential future roles as trainee process operators. The students will have the chance to complete a Certificate II in Engineering as another program outcome.

QRC welcomes change Queensland Resources Council chief executive Michael Roche has welcomed legislation standardising environmental protection conditions across mining operations in the state. He said the transfer to the Environmental Protection Act of relevant regulations from special agreement Acts covering nine Queensland mining operations was a positive step in the interests of sustainable development. He said the special Acts had helped the industry develop but there was no excuse to hang on to environmental regulations framed decades ago when standards were lower than today. Locations covered by the special Acts included Mount Isa, Weipa, Greenvale and Ely.

Toro takes the bull by the horns to build Napperby resources A new resource drilling program has begun at Toro Energy’s Napperby project, 175km north-west of Alice Springs in the Northern Territory, with the aim of adding to its existing uranium resources. Managing director Greg Hall said that, along with previous drilling, the program was expected to achieve drilling of at least 70 per cent of the target mineralised area in about five months. He said the program followed recently announced assay results from 2007 drilling at Napperby, which highlighted the increased integrity and cohesiveness of the mineralisation and prompted Toro Energy to increase its efforts in drilling the resource out. Two drill rigs and a 12-person crew will conduct the program on site. Baseline environmental studies have begun in support of a planned scoping study for the project this year. Initial metallurgical tests and an upcoming resource update using 2007 drilling program results will provide important data to the study. Mr Hall said the project area contained significant historical uranium mineralisation, which was previously drilled by Uranerz in the 1970s and 1980s, and more recently by Deep Yellow in 2005 and 2006. He said a mine management plan for the current exploration program had been submitted to the Northern Territory Department of Primary Industry,

Gravity survey More than 115,000sq km of central Australia will be covered by the largest gravity survey ever conducted in the Northern Territory, designed to encourage mining exploration investment in the region. The NT Department of Primary Industry, Fisheries and Mines has engaged Atlas Geophysics to undertake the survey as part of the government’s $14.4 million Bringing Forward Discovery strategy. Geoscience Australia will manage data acquisition. “This data can be used to generate a threedimensional image of the underground geology, which can be used to target future exploration,” Mines and Energy Minister Chris Natt said. He said the information would be made freely available to interested parties looking for new areas to explore.

Asian delegation A delegation of Northern Territory Government and mining industry officials travelled to China and Japan recently to promote the Territory as a place to do business. Department of Primary Industry, Fisheries and Mines (DPIFM) chief executive John Carroll led the delegation, which included representatives from companies including Energy Resources of Australia (ERA) and Arafura Resources. Mines and Energy Minister Chris Natt said the Japanese leg was part of a targeted investment attraction program. “DPIFM has been travelling to Japan for the past three years as part of Team Australia delegations and is focused on further increasing its profile in this market,” he said.

Petroleum permits More than $230 million will be invested in five new offshore petroleum permits in the Bonaparte Basin, as recently announced by Northern Territory Mines and Energy Minister Chris Natt and Federal Resources Minister Martin Ferguson. “I congratulate SIPC Australia, Finder Exploration and joint venture partners Apache Northwest and Total E&P Australia for being awarded these permits,” Mr Natt said. “The Northern Territory Government will administer the new permits jointly with the Commonwealth Government.”

A sample showing uranium mineralisation from Toro Energy’s Napperby project

Fisheries and Mines and the Central Land Council (CLC). The CLC was continuing to facilitate clearances for planned drilling areas with the traditional owners, he said. Mr Hall said the Northern Territory continued to be a favourable jurisdiction for new uranium development opportunities.

Port calls tenders Townsville Port Authority has invited tender submissions from interested geotechnical engineering firms to perform a review of the stability of the dredged slope beneath Berths 2 and 3. The works will include a review of existing data, subsoil investigation and a geotechnical engineering assessment for the stability of the dredged slope. Tenders are to be lodged in the tender box at the Townsville Port Authority administration building no later than Wednesday, June 18 at 3pm. Inquiries are directed to project engineer Kate Johnson: (07) 4781 1609.

Research paper released Following the development of the Mining Industry Skills Strategy in November 2007, the Mining Industry Skills Centre has released the first related research paper, titled “Attract, Develop and Retain: Initiatives to Sustain a Competitive Workforce”. It investigates and communicates the outcomes of a variety of attraction strategies used by various industries, in particular the mining industry. The paper is the first of a series of research documents into skilling in the resources sector. It can be downloaded at www.miskillscentre.com.au.

Takeover bid Macmahon Holdings has announced its intention to make an off-market takeover offer for all of the shares in Ausdrill. Macmahon Holdings said a combined company would be a leading and diversified mining contracting and civil construction company, with a market capitalisation of about $1.4 billion. “In light of the ongoing consolidation in the mining industry, it is becoming increasingly important for mining service providers to have the scale to maintain their competitive position and to effectively service their customers,” Macmahon chairman Dick Carter said. “A combined Macmahon and Ausdrill will be able to extend the range of services offered to their combined customer base.” However, the Ausdrill Board stated late last month that Macmahon’s initial offer was inadequate and opportunistic, and it encouraged shareholders to take no action.


16

BETWEEN SHIFTS

June 2008 |

Mining North Queensland conference

The Mining Advocate

PHOTOS: Stewart McLean

Rydges Southbank Convention Centre, Townsville Russ McNee (ARAMS), Angela Watson and Michelle Bauer (Queensland Department of Infrastructure and Planning) and Dennis Hoiberg (Rimfire Resources).

Grant Doyle (BLP Training and Services) and Paul Long (Onsite Health).

John McKinstry (North Queensland Metals) and Andrew Gillies (Metallica Minerals).

Robert Tippins (ITEC Employment) and Steve Moon (CRGT).

Domenic Canci (FREO Cranes), Graham Benson (Goldings) and Shane McLauglin (Global Cranes).

Paul Maccarone (Main Roads) and Richard Barrett (Maunsell).

Randy Culver and Michael Hooper (QER) with Scott Whitehead (Incitec Pivot Phosphate Hill).

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BETWEEN SHIFTS

The Mining Advocate | June 2008

Engineers Australia Cairns Local Group luncheon

17

PHOTOS: Romy Siegmann

Mercure Harbourside Hotel, Cairns Kathryn Simpson, Darryl Douda and Sonia Helzheimer (MGF Consultants).

Pat Flanagan (Flanagan Consulting Group) and Cairns Mayor Val Schier.

Roy Sumathipala (BMD) with Greg O’Brien and Tony Black (both from Black and More).

Steve Tyter, John Hawkes and Geoff Hatwel (all from CRC).

David Hull, Paul Dennis and David White (all from SKM).

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Damian Cronin (SKM) and Adrien Crowe (Cardno).

Wayne Dagleish (Delfin Lendlease) and Craig Kazakoff (GHD).

Lee Ticehurst, Jackie O’Rourke and Blain Morgan (all from ARUP).

Jane Errey and Simon Perkins (both from SPA Consulting Engineers).

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18

BETWEEN SHIFTS

June 2008 |

Quarrying and Small Mines Safety and Health Seminar

The Mining Advocate

PHOTOS: Stewart McLean

Rydges Southbank Convention Centre, Townsville Cheryl Paterson, Paul White and Phil Casey (all Department of Mines and Energy).

Kasey Papale (Carpentaria Gold) and Andrew Kemeny (Institute of Quarrying Australia).

Danny Stanford and Kody Royal (Charters Towers Gold) with Greg Farlow (Liontown Resources).

Kevin Hedges and Tilman Rasche (Department of Mines and Energy) with Martin Neale (Lucky Break Nickel).

Sergio Cespedes (Department of Mines and Energy) and Glenn Spence (CEC Group).

Greg Summers and Michael Walden (Hanson Construction).

Remo Giandomenico (IQC Quarries) and John MacDonald (Cemex).

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NEWS

The Mining Advocate | June 2008

NT Chamber of Commerce ‘Seeking Skills in South Africa’ networking function

19

PHOTOS: Christopher Knight

Aerosail Shade Structures, Darwin

Irene Russell (Department of Business, Economic and Regional Development), Greg Bicknell (NT Chamber of Commerce) and Deborah Hall (CPA Australia).

Sean Mahony (IBC), Alex Bisset (Skycity Darwin) and Keith Schultz (Earl James and Associates).

Cynthia Cuthbertson (NT Gas), Anna Koulianos (Acacia Glass) and Christa Coetzee.

Mount Isa race meeting

PHOTOS: Ruth Fahey

Mount Isa Race Club Doug Jones, Vance Martin, Liam Dare and Simon Freeman (all Bradken Mining).

Sharni and Colin Moore (Bradken Mining).

Nev Mersky (Bradken Mining) and wife Wendy.

Debbie Smith, Tracey Henderson and Glenda Jones.

Geoff Todd and Paul Henderson (Xstrata Copper).

Caitlyn and Bradley Moore, aged 13 and 9.

Jessica and Nathanael Lewis, 4 and 5.

Jennifer and Michael Holmes (Xstrata Copper) with children Finn and Eloise, aged 6 and 11.


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TORGAS Supporting Excellence in Apprenticeships and Traineeships TOWNSVILLE FINALISTS SHINE AT TORGAS AWARDS Townsville multi award winners, Ashley Schultz and Natasha Winsor stole the spotlight at the recently held 2007 TORGAS Apprentice and Trainee Awards night attended by over 400 supporters and industry representatives. Ashley, the TORGAS Queensland Apprentice of the Year, also took out the Most Outstanding Apprentice Fourth Year Electrical and Refrigeration, and Townsville TORGAS Apprentice of the Year while Natasha, the Townsville Trainee of the Year, also received the Office and Administrator of the Year award. The TORGAS awards, dating back to 1985, are recognised as one of Townsville's premiere award nights.

The 2007 awards, in which 60 finalists competed in 28 categories, were also notable in that it was the first time the event included apprentices and trainees from Mackay, Whitsunday and Brisbane and for the inclusion of the first TORGAS Queensland Apprentice of the Year award. “Our awards nights are important in reflecting the important role TORGAS plays in providing industry with the best of the best across a broad range of trades and skills,” TORGAS Managing Director Alan Morris said. “They are also an opportunity to recognize the hard work, dedication and achievements of our outstanding apprentices and trainees; the families and TORGAS staff who support them; and also the business people who take them on.”

WINNERS AND THEIR HOST BUSINESSES DURING 2007

Ashley Schultz

Natasha Winsor

Ashley Schultz

Brooke Hodgkin

Lachlan Talbot

Luke McKay

Jean Butler

Daniel Morris

Shane Mangan

Teagan O’Connor

Jamie-Lee Covell

Anne-Maree Barry

Jessica MacLean

2007 TORGAS Queensland Apprentice of the Year 2007 TORGAS Townsville Apprentice of the Year 2007 TORGAS Townsville Trainee of the Year Most Outstanding School Based Trainee Most Outstanding School Based Apprentice

Ashley Schultz Ashley Schultz Natasha Winsor Jamie-Lee Covell Brooke Hodgkin

Most Outstanding Trainee Office Administration Most Outstanding Apprentice or Trainee - Service Industries Most Outstanding 1st Year Apprentice Building & Construction Most Outstanding 2nd Year Apprentice Building & Construction Most Outstanding 3rd Year Apprentice Building & Construction Most Outstanding 4th Year Apprentice Building & Construction Most Outstanding 1st Year Apprentice Electrical & Refrigeration Most Outstanding 2nd Year Apprentice Electrical & Refrigeration Most Outstanding 3rd Year Apprentice Electrical & Refrigeration Most Outstanding 4th Year Apprentice Electrical & Refrigeration Most Outstanding 1st Year Apprentice Hospitality Most Outstanding 2nd Year Apprentice Hospitality Most Outstanding 3rd Year Apprentice Hospitality Most Outstanding 4th Year Apprentice Hospitality

Natasha Winsor Teagan O'Connor Julien Greene Alexander Rolfe Andrew De Courcey Luke McKay Daniel Morris David Berdayes Lachlan Talbot Ashley Schultz Jean Butler Anne-Maree Barry Alexander Beri Jessica MacLean

Most Outstanding 1st Year Apprentice Metals Engineering & Automotive Most Outstanding 2nd Year Apprentice Metals Engineering & Automotive Most Outstanding 2nd Year Apprentice Metals Engineering & Automotive

Mitchell Roberts Daniel Ryan Lucas Oats

Most Outstanding 3rd Year Apprentice Metals Engineering & Automotive Most Outstanding 4th Year Apprentice Metals Engineering & Automotive Locker Group Award Most Outstanding 1st Year - Boilermaker TORGAS Mature Age Apprentice of the Year The Mundingburra Rotary Club Pride of Workmanship Award The Wayne Allan & Castle Hill Lions Bursary [Electrical] Award TORGAS Host Business of the Year - Hospitality TORGAS Host Business of the Year - Electical & Refrigeration TORGAS Host Business of the Year - Building & Construction Industy TORGAS Host Business of the Year - Metal Engineering & Automotive

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Daniel Ryan & Lucas Oats

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Sean McManus

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Mitchell Roberts

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APPRENTICESHIPS ON OFFER: Automotive Electrical & Electronics Refrigeration & Airconditioning Boilermaking Fitting & Turning Diesel Fitting Sheet Metal Horticulture Plastering Carpenter Painter Tiler Plumbing Chef TRAINEESHIPS ON OFFER: Business Services Business Admin Information Technology Transport & Distribution Public Services Hospitality Retail

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22

LIFESTYLE

June 2008 |

The Mining Advocate

Life in the ultra-fast lane Andrew Griffiths reckons he’s found more than just a hobby – he’s discovered a way of life. Mr Griffiths, a boilermaker employed with HWE Mining, works at Newmont Mining’s gold operation at The Granites, 531km north-west of Alice Springs in the Northern Territory. Outside of work, his passion is super-powered road motorcycles and he likes nothing more than a quick lap around the iconic Phillip Island race track in Victoria. Mr Griffiths tells The Mining Advocate how he unleashed the beast within.

Taking the Suzuki Hayabusa for a lap around the Phillip Island circuit. Andrew Griffiths with his Suzuki Hayabusa.

“Getting into bikes at a later age is becoming more common these days because when you’re younger any available cash is taken up with kids, mortgages and a wife. Those lucky enough to have their own businesses can manage to put aside a little bit of cash for hobbies, and that’s how it was with me. I ran my own quarry maintenance business in Melbourne for seven years and after divorcing I was bitten with the bike bug. I attended the Honda Australia Rider Training school (HART) in Tullamarine, Victoria for my learner’s licence, not knowing that I would become an instructor there 12 years later. I had my sights set on big road bikes and was happy to leave the bushies riding the dirt bike ‘chook chasers’. After learning on a Honda XR250 and progressing to a 1995 Honda Fireblade, I discovered the joy of track day at Phillip Island, where in later years I’d spend an average of one day a month. I eventually pensioned off the ’Blade and replaced it with a Honda Blackbird, which took me around Australia in 25 days covering six states and 15,500 km.

Later I went on another trip with my now partner, Sue, covering four states in 21 days. Both of these trips included overnight stops at backpackers’ accommodation, which was an experience in itself. After these trips plus regular commuting and track days, the Blackbird was pensioned off and replaced with a Suzuki Hayabusa. The ’Busa has seen more track p days at Phillip Island than myy nd other bikes, and now that we are living in Darwin it has explored the ys open highways that it was designed for. The only thing I miss now I’m living in Darwin is no longer being able to find the time to volunteer as a pit lane marshal ian Motorcycle at the Australian Grand Prix at Phillip Island, something I did for nearly 10 years.

I guess there’s a message in all this, which is that even if you’re living at the other end of the country, enjoying the track day experience is still a very real possibility with the current low cost of flights. I am currently toying with the idea of a ride to this year’s Australian Motorcycle Grand Prix and am seeking interest from other riders looking at joining me. (Call me on 0407 332299 if you’re interested).”

Top models “My Suzuki Hayabusa is the 1999 model and is still the world’s fastest road-registered street bike. It actually earned a cult following in Australia after it was tested at the Avalon Airstrip in Melbourne back in 2000 and was recorded on a radar gun at 315km/h, stock standard. Phill Tainton, who runs a tuning business in Melbourne and also builds race engines for the Aussie superbike team, got his hands on one and played a few tricks on it, with stuff such as Yoshimura cams and exhaust. It then recorded 323km/h at Avalon, the fastest speed ever recorded on a road-registered bike in Australia. The grey bike is a 1000cc Honda Fireblade. When I took up a position as an instructor at the Honda Australia Rider Training school (HART) three years ago, I came in for a fair bit of sledging because of my Suzuki Hayabusa. But then the Fireblade was offered to me at the right price, complete with race kit and parts. So now both bikes are at my parents’ house in Melbourne, ready for trips to Phillip Island during my week off.”

Making good time on the Honda Fireblade.


LIFESTYLE

The Mining Advocate | June 2008

Wetting a line works wonders A Century mine apprentice explains the lure of fishing in the Norman River. Sorren Owens finds peace away from work through the art of angling. Mr Owens has worked at Zinifex Century Mine in the lower Gulf of Carpentaria for two and a half years, firstly as a trades assistant and now as an apprentice diesel fitter. He lives at Norman River, west of Normanton in the Gulf, and when he arrives back home at the end of his work roster he likes nothing better than pulling out a line and chasing some barramundi and salmon. “I always like to get out fishing and relax, just to get away from everything,” he said. Mr Owens said his best catch was a 1.5m barramundi off the Jim Whyte Bridge at Norman River five years ago. Unfortunately the catch of the day didn’t make it to the dinner plate - being oversized,

it had to be thrown back in. Mr Owens said there were no real secret fishing spots at Norman River, since the waterway was only a couple of hundred metres from town. He said he found his favourite locations by following experienced local anglers and the example of his parents. “I’ve lived here at Norman River all my life and I came down to the river as a baby because my parents were keen on fishing,” Mr Owens said. “The knowledge is passed down, but it depends on how keen you are.” He said the bridge was the town’s most popular spot and had begun to attract some visitors. “Tourists used to just go

straight through town on the way to Normanton, but now you often see them doing some night fishing off the bridge,” Mr Owens said. He said fishing at Norman River was generally good all year round.

Barramundi from the Norman River, destined for the barbecue.

The Jim Whyte Bridge is popular with anglers.

The Norman River. A fisherman’s paradise.

Territory’s barramundi research initiative hits the small screen A $17,000 Northern Territory Government research project on handling barramundi, conducted at the Darwin Aquaculture Centre, is set to feature on national television. “I am very pleased that this research will be featured on Escape with ET and seen all across Australia,” Northern Territory Fisheries Minister Chris Natt said. “The Escape with ET crew will be filming a study into the effects of lifting fish from water using fish grips.” He said the research aimed to determine the impact recreational anglers had on a

barramundi’s bones and tendons when it was lifted with these types of grips. “There has been very little work investigating whether lifting a fish by the jaw may harm it, with the only other fish investigated having small weak jaws compared to barramundi, which we know is a very tough fish,” he said. “Barramundi are the No.1 target species for local and visiting fishermen and it’s important we know how best to handle them, as more than two thirds of the barramundi caught by recreational anglers are released.

“While catching a barramundi can be a thrill of a lifetime, it’s also very pleasing to see them swim off strongly, knowing they’ve been handled in a way that maximises their chances of survival.” Mr Natt said the study began in 2006 and was now being taken to the next step using more fish varieties, hi-tech scanning equipment and new examination techniques. “Fishing is the lure of the Territory and part of the great Territory lifestyle,” he said.

Fish-friendly zoning for Cleveland Bay The Queensland Government has declared Townsville’s Cleveland Bay to be a fish habitat area. The declaration is designed to offer protection to natural fish habitats from alteration and degradation associated with coastal development in the area. However, the bay is still open to all forms of legal fishing and boating and community access is still allowed. “Fishing is a popular recreational activity for many thousands of people, so it is important that we put in place measures to ensure these vital fish breeding areas remain viable for generations to come,” Primary Industries and Fisheries Minister Tim Mulherin said. The Cleveland Bay fish habitat area stretches from just south of the mouth of the Ross River around to Cape Cleveland and includes parts of Bowling Green Bay National Park.

23


24

SAFETY AND TRAINING

June 2008 |

The Mining Advocate

Contest helps build expertise Mine rescue teams competing at a premier NT event should learn much from the scenariois and judges’ feedback, an organiser says. The upcoming Northern Territory Mine Rescue Competition is about more than just winning trophies, says chief adjudicator Steve Ellis. “Whilst it is an opportunity for teams to compete, it is also an opportunity for them to learn,” he said. “The scenarios make them think outside of the box.” Event adjudicators will judge the events and suggest improvements to the teams’ performances. Mr Ellis said adjudicators were required to have strong backgrounds in the specific events they were judging as well as formal qualifications in assessment and training. He said it was important that they gave feedback appropriate to a teamwork environment. “Feedback needs to be constructive rather than just ‘you shouldn’t have done this and you shouldn’t have done that’,” Mr Ellis said. The competition’s above-ground scenarios will be held at the

Darwin Showgrounds on June 21–22 and will feature events including road accident rescue, hazmat, mass casualty, and search and rescue. Mr Ellis said theory and individual skills tests, to be held on June 20, were also essential to the competition. “If participants don’t know how to calculate weights, or know what ropes to use in the vertical rescue, they are not well rounded,” he said. This year’s competing teams include Rio Tinto Alcan Gove, Rio Tinto Argyle Diamond Mine, Energy Resources Australia, GBS Gold – Brocks Creek, GBS Gold – Union Reefs, Kimberley Nickel Mine, McArthur River Mining, and Newcrest – Telfer. Four of the teams will also compete in a separate underground competition, to be held at GBS Gold’s Union Reefs operating centre, south-east of Darwin, on June 19. Events at the Darwin Showgrounds are open to the public.

Pajingo’s mine safety and rescue co-ordinator, Rhoda Smith, unloads breathing apparatus from a fire truck. Photo: Danielle Jesser

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SAFETY AND TRAINING

The Mining Advocate | June 2008

25

Operators told to lift their game Seminar short takes:

Rising injury rates have sparked a safety push targeting Queensland’s small mines and quarries, writes Michael Stevens. The Queensland Department of Mines and Energy (DME) will work with small mines and quarries to improve their worsening safety record. DME executive director of safety and health, Stewart Bell, told a seminar in Townsville that the recent improvement in safety at larger mines was not shared by the small mines and quarrying sector. According to the Queensland Mines and Quarries Safety Performance and Health Report for 2006/07, the lost time injury frequency rate for quarrying increased by 21 per cent in that year and the average time lost increased from 6.9 to 17.4 days. Mr Bell said extra mines inspectors would be employed in the next six months. They would be scheduled to spend more time at small mines and quarries to help the operations “sort out some of the issues”. He said the process of improving safety would involve

dealing with human factors and introducing hard barriers such as proximity protection. Queensland Minister for Mines and Energy Geoff Wilson said there were more than 800 high-potential incidents per year in the state’s mining industry and nearly half involved mechanical energy. He said the incidence of vehicle collisions and loss of control required attention. Mr Wilson said fatigue was a key factor in three or four fatal mining accidents which were the subject of current coronial inquests and operations needed to examine issues such as workplace behaviour, travel patterns and work methods. He said the DME took a partnership approach to improving safety. Mr Wilson and Mr Bell were speaking at the Quarrying and Small Mines Safety and Health Seminar, hosted by the Institute of Quarrying Australia and the Mines Inspectorate.

• Kevin Hedges (Department of Mines and Energy): Crystalline silica is found in most minerals. It is most potent in freshly cut material and can cause silicosis, lung cancer and chronic obstructive pulmonary disease. Operations need to ensure that filters in control rooms and vehicle cabins remove small dust particles, and proper fit testing should be carried out on dust masks.

Queensland Minister for Mines and Energy Geoff Wilson addresses the Townsville safety seminar. Photo by: Stewart McLean

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• Alan Robertson (Coffey Mining): Vision through the rear of modern mining machinery is difficult compared with older models due to their design. Manufacturers should fit collision avoidance devices such as cameras to new mining machinery as standard equipment. • Wayne Pennay (Hastings Deering): Modifications to mobile equipment can affect safety performance in areas such as visibility. Suppliers of modified second-hand equipment should provide instruction and specification manuals for equipment in its modified form. • Wayne Scott (CEMEX Australia): Queensland mining operations often have long contract trains but are not managing their lower-tier contractors as effectively as they should. Contractors are not always given sufficient inductions to sites and sometimes definitions of safe practices differ between contractors and the operations they service. Operations should directly supervise their contractors where possible. • Peter Elliott (Emergency Management Queensland Helicopter Rescue): Mining operations should consider setting up helipads as part of their emergency plans. A helipad should be a dedicated area of 35sq m, clearly marked and illuminated at night with four strobe lights. • Tilman Rasche (Department of Mines and Energy): Heavy machinery tyres can potentially release fatal kinetic energy and they need to be regularly maintained by trained workers using appropriate equipment.


26

FNQ MINING REVIVAL

June 2008 |

The Mining Advocate

Mine goes into production

Leading the way The Wolfram Camp operation is set to be the first off the blocks to produce tungsten and molybdenum after a nationwide hiatus. Australia will take a role as a tungsten and molybdenum producer for the first time in more than 25 years thanks to a Queensland Ores operation west of Cairns. The company’s $30 million Wolfram Camp mine is expected to be operational by mid-June. The first ore has been crushed, marking a milestone for the project a week ahead of schedule and in spite of what was described by the company as a “tough” wet season. The company said the remaining sections of the treatment plant - including the ball mill, flotation and gravity modules - were expected to be brought online in the coming weeks.

Tungsten and molybdenum are used to make steel alloy often employed where there is high temperature, pressure and corrosive potential and to otherwise increase the structural integrity and operational life of pipelines carrying oil, gas and chemicals. Demand has increased in line with the worldwide consumption, placing Wolfram Camp squarely in the starting blocks, managing director Taff Greenwood said. “Tungsten and molybdenum were last mined in Australian in the late 1980s,” Mr Greenwood said. “This (Wolfram Camp operation) is the first of a new era. King Island Scheelite (Bass Strait) is being developed

Call for centres to work together Business organisations in North Queensland need to think outside of their own squares to achieve optimum development, according to Cairns Chamber of Commerce president Jeremy Blockey. Speaking at the recent Mining North Queensland conference in Townsville, Mr Blockey said regional chambers of commerce should fly the flag for issues in broad terms rather than just focusing on their own parochial areas and a strategy focused on northern Australia as a whole should be considered. He said he met with the Townsville Chamber of Commerce while visiting the city and he believed that Cairns and Townsville had equally valuable roles to play in servicing industry. “We need to work together, as two regions, for a common good - I think we’ll be much stronger for it, both collectively and individually,” Mr Blockey said. He said Cairns had never been particularly strong in port activity, where Townsville excelled, but did have a very strong aviation sector. The Cairns chamber is keen to emphasise the city’s industry credentials during the current mining boom, despite its reputation as a tourist hub. “The resource sector has been

Cairns Chamber of Commerce president Jeremy Blockey addresses the Mining North Queensland conference in Townsville. Photo: Stewart McLean

going from strength to strength, and, in acknowledgement of this, a couple of years ago the chamber formed the Resources and Industry Taskforce,” Mr Blockey said. He said Cairns’ unrivalled air connections, natural attractions, and cosmopolitan lifestyle made it an attractive city for doing business. Cairns was also ideal as a fly in–fly out base for mines.

An aerial view of the treatment plant site at Wolfram Camp mine.

but is running behind QOL (Queensland Ores). “Molyhill in the Northern Territory, Spinifex Ridge in Western Australia and Watershed in North Queensland are coming online gradually but they are still some years behind us.” The project was maturing in a timely way for Queensland Ores, with the market yielding prices which promised a healthy cash flow, Mr Greenwood said. The new venture at Wolfram Camp had not been without its

share of challenges, he said. “We wanted to get the operation into production sooner rather than later,” Mr Greenwood said. “We have a four-year resource at current treatment plant capacity of 150,000 tonnes per annum. “As soon as we start production, we’ll be proving up the potential resource (on the Wolfram site) which we believe will give the operation a 20-year lifespan at the current treatment plant throughput rate.”

World production of tungsten and molybdenum was mainly the domain of China, Canada, Chile and the United States, Mr Greenwood said. Annual demand for tungsten was about 50,000 tonnes and for molybdenum around 180,000 tonnes, he said. At the time of writing, a 10kg mass of tungsten (measured in metric tonne units of wolframite contained in concentrate) was worth about $US180 ($A187) and molybdenum was valued around $US32 ($A33) a pound.

Fly in-fly out trend slammed The fire still burns in one retired exploration geologist and he has the fly in-fly out mining industry squarely in his sights. Rob Ryan is the immediate past secretary of the Australasian Institute of Mining and Metallurgy (AusIMM), far north Queensland branch. Mr Ryan’s association with AusIMM goes back 50 years, when he first started at Tennant Creek’s Peko Mine and the general manager immediately signed him up as secretary of the local branch. The issues had changed since then, Mr Ryan said, to the point where fly in-fly out mining was undermining the core of an industry otherwise strongly supported by families, towns and communities. Gulf towns like Georgetown and Einasleigh were assuming a new importance on the back of renewed mining activity. But other historic centres like Croydon, Cooktown and even Weipa on Cape York Peninsula were overlooked by emerging operations content to draw staff from the major regional centres, Mr Ryan said. He criticised the fly in-fly out options as hurting families, the industry and possibly compromising safety. “That’s my big issue. We are desperate to keep our small

communities out in the bush viable and mining is one of the industries that does that,” Mr Ryan said. “But more importantly, the union movement fought for 50 years - underground miners in particular - for eight-hour shifts, five days a week for safety’s sake. “Now they work 12-hour shifts, 14 days straight (in some cases).” Family members often lived totally separate lives to mine workers, who seemed almost as intruders when they returned home from stints on site, he said. “He or she is almost resented because they are not there when they are needed - to watch

the kids in their concerts or take them to the basketball or whatever sport they play,” he said. While admitting the tax system, in particular, worked as a disincentive for mining companies to invest in towns, Mr Ryan said in many instances new investment was channelled into areas where there was existing infrastructure. “If you have a Broken Hill, you can amortise your town over 100 years,” he said. “If you have a four-year lifespan, you don’t really go and build a town. “But if you have local town like Dimbulah or Einasleigh, then you might use it.”

Kagara drilling Victoria thrust Kagara is pleased with the progress of a drilling program at its Victoria prospect, 4km east of the Mungana mine site, situated 150km north-west of Mount Garnet in North Queensland. Executive chairman Kim Robinson said drilling had outlined continuous base metal mineralisation over a strike extent of 500m and down dip to a depth of 400m. He said the Victoria thrust - which contained most of the prospect’s mineralisation - hosted zinc, copper, silver and gold mineralisation. It tended towards copper, gold and molybdenum richness with depth, he said. Mr Robinson said the aim of the drilling program was to outline an indicated and inferred resource at the prospect by the end of the second quarter 2008.


FNQ MINING REVIVAL

The Mining Advocate | June 2008

27

Region rides a new wave With a host of minerals projects on the horizon and a solid base of local management expertise, the far north is on a roll, writes Robert Dark.

MAIN POINTS More than 70 companies exploring in far north Queensland for a range of

A new era of exploration and mining in far north Queensland - based on new technologies, higher minerals prices and more professional leadership - is sustainable, according to industry spokesman Brett Duck. The Cairns-based tin buyer and geologist holds the position of secretary of the Far North Queensland Small Miners Association and is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). There are more than 70 companies exploring in far north Queensland for a range of base, precious and minor metals including tungsten, gold, copper, indium and tin. Mr Duck said some of the more advanced projects were due to come online in a matter of weeks, others in 2009. That included Kagara’s new underground copper, lead and zinc mine at Mungana, west

of Chillagoe, where a crew of more than 130 is working on a processing facility. The mine is expected to be fully operational by November next year. Queensland Ores’ Wolfram Camp is expected to make its first shipment of tungsten and molybdenum concentrate next month. The Watershed operation near Mt Carbine, run by Vital Metals, is set to produce scheelite, another tungsten metal. Mr Duck said this came on top of the continually growing Weipa bauxite operation, now owned by Rio Tinto Alcan. This operation and the Cape Flattery Silica Mine had been mainstays of the region’s mining activity, he said. A welcome development was the number of directors of public minerals companies based in the region, Mr Duck said.

mineral resources A number of public companies in the sector have directors based in Cairns district New technology, offering quicker results, is pushing the industry forward

He cited two directors of Consolidated Tin Mines as being Cairns based as well as one of the directors of Queensland Minerals, which is listed on the Canadian Stock Exchange. Mr Duck said all the directors of Gulf Mines were based in Cairns. That company has just released details of exploration over an iron ore prospect in Nowa Nowa in eastern Victoria to the Australian Securities Exchange. One of the directors of

Einasleigh Project E

North Queensland Metals is based on the Atherton Tableland and Republic Gold has its head office in Mareeba. Other companies operating locally, including Kangaroo Metals, had directors in Townsville, Mr Duck said. They were a solid group with a strong appreciation for governance, he said. “Many of these company directors have been in the far north for more than 20 years and between them have hundreds of years experience in the mining industry,” Mr Duck said “They have people in their organisations who are members of peak industry bodies like AusIMM where they have to work to a certain code of ethics. “All reporting goes through the Joint Ore Reserves Committee ( JORC), where they need to have the qualifications and experience to be considered a ‘competent person’ in their subject.” He said also technology in the form of portable X-ray fluorescence (XRF) equipment

was helping push the industry forward. “The traditional way is doing soil surveys, pegging ground, collecting samples, sending to a laboratory for testing and waiting four to six weeks for assay results,” Mr Duck said. “The new technology can assay a number of elements and provide instant results. “Companies can blanket areas for anomalous levels of minerals and find out where concentrations may be better at depth.” There was little appreciation of the fact the far north was built on mining and that the industry remained a pillar of the local economy until tin prices crashed in 1985, he said. The resurgence in tin mining has come in the last three years, with prices rising from $US6000 per tonne in 1996 to $US25,000 ($A26, 215) per tonne last month. Tin mining in far north Queensland was mainly alluvial and largely the province of small private miners, Mr Duck said.

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28

FNQ MINING REVIVAL

June 2008 |

The Mining Advocate

Old ground holds fresh opportunity Antimony mineralisations have captured Kangaroo Metals’ attention as it continues work in a range of historical mining areas. Kangaroo Metals exploration manager Dr Brian New has been going over old ground in North Queensland, some of which he has been familiar with since childhood. The company has been busy proving up resources over a number of tin, base metals and gold tenements stretching over the historical mining grounds around Croydon, Herberton and Kidston, among others. Dr New grew up in Ravenshoe and said it was particularly satisfying to see the regeneration of the

industry in the hills he tramped as a boy. Kangaroo Metals’ initial plan was to develop its alluvial tin deposits to generate cash flow and then concentrate on developing its copper-gold deposits in Queensland. But it’s been a minor mineral that has captured the company’s immediate attention. “We have found significant mineralisations (of antimony) in stibnite formations west of Irvinebank (on the Atherton Tableland),” Dr New said.

Drilling at Kangaroo Metals’ antimony project west of Irvinebank on the Atherton Tableland.

“We’ve shallow drilled to around 70m and have to drill below that level. We’ve found a high-grade stibnite vein and are currently getting assays. “Around 60 per cent of antimony is used in flameretardant measures. The remainder is used to stiffen metals like lead (for use) in car batteries.

“China was an exporter and is now a net importer of antimony. The price jumped from $US1000 per tonne to $US3000 per tonne in 2004 when China’s growth hit double figures. It has been around $US6000 ($A6252) per tonne for the last two years.” Antimony samples from the project have been submitted to

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FNQ MINING REVIVAL

The Mining Advocate | June 2008

29

Project ‘no threat’ to wetlands While a planned Cape York bauxite operation has raised environmental concerns, the company involved is peddling a nature-friendly stance. Cape Alumina believes its Pisolite Hills project, 50km north-east of Weipa, can bring environmental benefits. The company has recently been embroiled in controversy, with a landowner for part of the project, Terri Irwin, vowing to fight against mining. The Pisolite Hills project partly overlaps the Bertiehaugh cattle station, which the Irwin family bought in 2006 with Federal Government assistance with the intention of turning it into a nature reserve. Cape Alumina chief executive officer Dr Paul Messenger said the company had no plans to mine in the sensitive wetland areas of Cape York. He told the recent Mining North Queensland conference in Townsville that all bauxite on the Cape occurred on dry plateaus. He said the company saw an opportunity to work with property owners and indigenous owners to improve environmental assets in the area

MAIN POINTS Left: The Pisolite Hills project, shown in relation to Bertiehaugh cattle station and Weipa.

The Pisolite Hills project is situated 50km north-east of Weipa. Cape Alumina expects it to yield 100-130 million tonnes of bauxite. covered by the Pisolite Hills project, through measures such as feral pig and fire management programs. Dr Messenger said the project also offered an opportunity for local indigenous people to be involved in a new development from its beginnings. Cape Alumina is an offshoot of Metallica Minerals (which is involved in North Queensland nickel developments) and it plans to list on the Australian Securities Exchange in the third quarter of this year. One of China’s biggest aluminium companies, Chiping Xinfa Huayu Alumina, has a 17.5 per cent stake in the company.

Below: A Cape Alumina exploration camp.

Dr Messenger said that in 2005, Xinfa built a refinery in seven months with a capacity of 400,000 tonnes per annum. He said the refinery’s current capacity was closer to five million tonnes per annum and, because it needed to import all of its bauxite, a great opportunity was created for Cape Alumina. Cape Alumina has been exploring on the Cape for about four years and the company has 2500sq km of tenements and applications in the western Cape bauxite province. Dr Messenger said Pisolite

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Hills was its most advanced project and would yield between 100 and 130 million tonnes of bauxite. About seven million tonnes per annum of bauxite would be

exported to China from Port Musgrave on Cape York, he said. A preliminary feasibility study is due to be conducted this year, and an environmental impact statement (EIS) will be lodged.


30

FNQ MINING REVIVAL

June 2008 |

The Mining Advocate

Project built on broad base

Sweet mix The Einasleigh mine in North Queensland is set to yield a range of metals when operations kick off in 2010, writes Michael Stevens. Production at Copper Strike’s Einasleigh project will begin in 2010, but perhaps surprisingly to outsiders, it is not copper that will initially come out of the operation. Exploration manager Terry Lees said the project, 300km north-west of Townsville, would initially produce about 500 tonnes per annum of lead, zinc, and silver. Copper concentrate production would begin in 2012. Mr Lees said the company was not surprised by the change of focus at the project. “We’ve known about it (lead, zinc, and silver potential at Einasleigh) for a long while,” he said. “The company did have a copper focus early on, but having lead and zinc discoveries have made Einasleigh a very robust project.” The Einasleigh project consists of the Einasleigh, Kaiser Bill,

Chloe, Jackson and Railway Flat deposits, and Mr Lees said the operation would employ about 80 workers in the mining and processing sections at start-up. Copper Strike floated on the Australian Stock Exchange in 2004, on the back of a portfolio of mainly Queensland prospects. It has conducted exploration work at Einasleigh since just after floatation and initially discovered a new copper lens there that took a year to drill out. Mr Lees said a copper mine operated at Einasleigh between the 1890s and 1922, and a wider mining culture existed in the area. The company has scheduled a feasibility study for the Einasleigh project to be completed in July or August. Mr Lees said the project currently had a seven-year mine life, but Copper Strike was adding to its known reserves. “We’re confident we’ll go

A drill rig operating at Copper Strike’s Einasleigh project.

above and beyond that figure, but you need seven years worth of reserves to make it (mining) worthwhile,” he said. Copper Strike has additional prospects in North Queensland, including an interesting zinc and lead tenement at Kamarga, 200km north-north-

west of Mount Isa and 20km from Zinifex’s milling and transportation infrastructure at Century zinc mine. Mr Lees said a drilling program at the prospect was completed late last year and the company needed to go back and define the resource.

“There is five or six years left to go at Century - they are aware of what is happening (at Kamarga) and there is the potential to do a number of things,” he said. However, Mr Lees said the Einasleigh project was Copper Strike’s clear focus at present.

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31

NORTH QUEENSLAND METALS

The Mining Advocate | June 2008

PAJINGO AT A GLANCE • The Pajingo gold operation, 69km south of Charters Towers in North Queensland, lies at the northern end of the Drummond Basin. • All mining at Pajingo is currently underground, to a depth of 600m and extending over 4km along strike. • Since 1996 more than 2.5 million ounces of gold have been mined from the underground workings. • Some new exploration targets appear to be suitable for open pit as well as underground mining. • Dore bars (50 per cent gold and 50 per cent silver) are sent to the Perth mint. • A new general manager, Alex MacDonald, and mine manager, Simon Jackson, were recently appointed.

1983 Battle Mountain Gold discovers the Scott Lode deposit on the Pajingo field, consisting of about 300,000 ounces of gold (averaging 9g of gold per tonne of ore). 1987 Mining begins at Scott Lode. 1992 Normandy Mining farms in to exploration under a joint venture arrangement. 1995 Mining ends at Scott Lode. Normandy Mining (50 per cent share) assumes the operator’s role at Pajingo under the joint venture 1996 Development commences at Vera, part of the newly discovered Vera Nancy system (consisting of a series of deposits totalling about 2.5 million ounces, with an average of 11-14g of gold per tonne of ore mined). 1997 The underground Nancy and Vera ore bodies are reached via two declines and production from underground mining starts. 2000 Newmont Mining takes over Battle Mountain Gold. 2002 Newmont Mining acquires the remaining 50 per cent ownership of Pajingo after merging with Normandy Mining. 2007 Pajingo is put up for sale by Newmont Mining. North Queensland Metals (NQM) takes over management control on December 30, buying the mine with joint venture partner Heemskirk Consolidated. 2008 First gold produced under the new joint venture is poured in late January.

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32

NORTH QUEENSLAND METALS

High grades hold key to success Pajingo’s new operators have clear strategies to maintain viability in the face of reduced ore production, writes Michael Stevens. Concentrating on grades rather than throughput is the key to succeeding at the new Pajingo, according to North Queensland Metals (NQM) chief executive officer John McKinstry. Mr McKinstry said reducing ore production from more than 700,000 tonnes per annum to 300,000 tonnes would be one of the biggest changes under NQM’s management of Pajingo, following the company’s purchase of the operation with joint venture partners Heemskirk Consolidated in December. He said Pajingo’s mill would be downsized to suit a small but high-grade operation. “A lot of mines go wrong when they have a hungry mill and operators end up feeding it whatever rubbish they can mine,” Mr McKinstry said. As part of the reduction, Pajingo’s secondary ball mill is earmarked for use at NQM’s Baal Gammon copper and tin project near Herberton in North Queensland, where construction is hoped to occur in early 2009. In addition to mill modifications, the mining methods of contractors AVKO are expected to enhance recovered grades at Pajingo. “AVKO are specialists in hand-held and narrow-vein type mining, which we felt was quite appropriate to what we’re doing here,” Mr McKinstry said. “We’re getting into the narrow stuff and where we’ve been able

to add to Pajingo’s resources and reserves is by developing those areas that were too narrow for Pajingo’s former owners and their mining methods.” He said NQM had sold off some of the larger equipment it inherited from Newmont Mining, with AVKO equipped to use its own narrower machinery. “It’s still early days; a lot of this is still really experimentation, seeing how well we can do these things and how productive this equipment can be, because at the end of the day it all comes down to a costper-ounce basis,” Mr McKinstry said. “You may spend more on every tonne of dirt you get from the mine, but if you get good grade in it then it pays for itself.” Fewer workers are required at Pajingo in its reduced form. About 110 workers including AVKO contractors are now at Pajingo, down from about 280 workers at the operation’s peak under Newmont Mining. However, Mr McKinstry said there were still some familiar faces walking around. “Just about all the mill crew are ex –Newmont staff and some are ex-Normandy and ex-Battle Mountain,” he said. “It helps for continuity; the mill runs very easily because the guys all know what they are doing.” Mr McKinstry said Pajingo had contributed to Charters

June 2008 |

The Mining Advocate

Pajingo draws gold executive back for encore performance NQM chief executive officer John McKinstry is no stranger to Pajingo. He conducted the feasibility study for Vera Nancy’s initial underground development and was general manager at Pajingo for five years. After pursuing other activities, he has returned with a brand new plan for his old stomping ground.

He recently shared his experiences with The Mining Advocate. “When we started with Vera Nancy we were really struggling to convince people that this would even make half a million ounces,” Mr McKinstry said. “It was a bit of a leap of faith for Normandy Mining (Pajingo’s former operators), because the company had ambitions to be a

NQM chief executive officer John McKinstry inspects Pajingo’s processing plant. Photo: Danielle Jesser

Towers’ prosperity, but the fortunes of the town did not depend on the operation. “I think we as miners have an inflated sense of our own selfimportance in a lot of ways,” he said. “Mines come and go – Mt Leyshon gold mine (also near Charters Towers) closed (in 2002) and it was the biggest

mine for quite a while. “We take our role in being part of the local community seriously but we don’t get carried away with it. “We’re just another employer in town and that’s the way I’d prefer to be looked at.” Pajingo under NQM has a mine life of six years, based on current resources.

big miner and understood bigtonnage, low-grade operations rather than small, high-grade underground operations. “But once we got into it, Vera Nancy was a great ore body. “In many ways it has been very forgiving. It’s quite regular for this epithermal-type system – more predictable than many other ones - and it has always been a low-cost producer.” Mr McKinstry said he left Pajingo in 2001 and went to Normandy’s Waihi operation in New Zealand. “Around the same time there was a deal with Franco-Nevada in which Normandy acquired the Midas mine in Nevada,” he said. “I was asked to go and run it, and the operation soon after melded in with Newmont Mining’s other Nevada operations following the merger. “Midas was just a sweet little underground operation about half the size of Pajingo but twice the gold grade and 10 times the silver. The mining methods were the same, so it was like going into a mini Pajingo.” Mr McKinstry left the company and returned to Australia, joining NQM just over two years ago. “We floated in December 2006 and we spent most of last year getting the feasibility study going and exploring on the ground at our Baal Gammon copper and tin project (near Herberton in North Queensland),” he said. “Then Newmont approached us and asked us if we were interested in looking at Pajingo. “We knew it was coming up for sale but it didn’t necessarily occur to us that it would be a good buy. “It was really only after coming in and having a look at what was left that we saw that there was still a lot of potential here. For NQM to be operating enables us to hit the ground running with Baal Gammon and we’ll use Pajingo as the model for how we run our mines.”


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Queensland’s Mining and Engineering Exhibition Mackay Queensland July 22 – 24, 2008 Every two years, the Queensland Mining and Engineering Exhibition provides local and international suppliers with a unique opportunity to easily interact with the important Queensland mining community. By taking a wide range of products and services to the heart of the market at one time, QME saves mining industry personnel time and money.

QME has become a must-attend biennial event for all buyers, specifies and industry professionals to come together to catch up on the latest products and technologies, keep abreast of industry trends and network with industry colleagues in a vibrant business environment.

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