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The Mining Advocate | March 2012

1

COVER IMAGE: A driverless truck in action at the West Angelas mine in the Pilbara region.

Photo: Christian Sprogoe

March 2012

FEATURES 10 Coal and Gas Update

3 Two for one

News in brief across the coal and gas industries.

Married to the job takes a new meaning in Queensland’s booming gas industry heartlands, where an employment scheme is securing work for partners as an added weapon in the skills attraction and retention battle.

4 Rough landing

12 Industry Update - Hard Rock A comprehensive wrap of exploration and operations in Queensland and the Northern Territory.

14 Between Shifts 19 Regional Engineering Teams

The regional council covering the area around Alpha is calling for help to fund essential services and infrastructure, including a bigger airstrip, as it struggles in the face of massive mining growth.

20 Ivanhoe Australia Feature

6 Just for kicks

22 Building Mining Communities

Prospectors Mount Isa branch manager Russell Armstrong talks about his love of footy and all that goes with it as he gets ready to pull the boots on again for his 15th AFL Masters National Carnival.

24 Health in Mining

7 Going the distance

26 Mining Families

25 Emergency Response and Rescue

An inventor shares his vision of a conveyor system hundreds of kilometres long to outdo rail and road as a means of moving millions of tonnes of Queensland coal from mine to port.

27 Wet Season 28 Drilling and Exploration

9 The white stuff

29 Materials Handling

Solar Silicon Resources Group aims to tap the expanding market created by hi-tech applications such as solar panels, mobile phones and LCD screens with high-purity silica quartz being mined outside Mount Surprise, south-west of Cairns.

35 Fleets of the future

30 Shutdowns 31 Living Remotely 32 Building NW Queensland

Mining giant Rio Tinto and manufacturer Komatsu discuss the driverless trucks that are rolling out in the Pilbara, launching a new era in mining technology.

34 Heavy Machinery Review

CONTACTS p. (07) 4755 0336 f. (07) 4755 0338

Managing editor:

......................... Robert

Dark m. 0417 623 156

Email: ............................................................... info@miningadvocate.com.au

Journalist: .......................................................... Jan Green m. 0418 740 336

Address: ......................................... U3/11 Carlton St, Kirwan, Q, 4817

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Advertising booking deadline May edition: April 17 All material is copyright and cannot be reproduced in part or in full by any means without written permission of the managing editor. The views expressed in this publication are not necessarily those of the publisher.

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2

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March 2012 |

The Mining Advocate

Police beat a path to mining careers Resource sector wages and opportunities continue to draw experienced professionals from other fields, writes Jan Green.

Highly skilled Queensland police and members of the Australian Defence Force are among those lining up to join the mining industry.

Broncos chief executive officer Paul White, a former police officer, entered mining after an approach by Xstrata management in Mount Isa. “I was lucky that the police force gave me 12 months’ leave without pay so I could test the water. I did and I stayed,” he said.

“I worked in human resources, sustainable development and a variety of site-based project management roles.

“There were plenty of benefits and I got to spend time in the regions I love – central and north-western Queensland. I also enjoyed working with the people.

“There are great quality, downto-earth people in mining.”

While Mr White enjoyed

his stint in the industry, the opportunity to take on the role of Brisbane Broncos Rugby League Club chief executive officer was too tempting to refuse.

Richard Mactaggart was a policeman for 20 years before

starting up his Epoxy Floor Coatings Specialists business in Mackay.

He said he knew at least a dozen former Queensland Police Service (QPS) friends in the Mackay district alone who worked in the mining industry.

“Policemen are very, very good employees,” he said.

“They make good decisions very quickly, are responsible, clean-cut and well presented

Paul White

Richard Mactaggart

Broncos chief executive officer

Former policeman

One of the billboards outside Townsville.

which is why they are being grabbed as quickly as the mining companies can get them.

“Not only that, police, defence and emergency services personnel are very risk-management oriented. That’s why they slot very well into the mining industry.

“Training a police officer is expensive and time consuming so this draining of police skills base, however minor, must be of concern to the force.”

Mr Mactaggart identified high living costs and the lure of increased wages as major incentives for the police exodus to mining.

“Around $600 per week to rent a house in Mackay has a huge impact on people like police and nurses. But if they earn $120,000 a year at a mine, it’s affordable,” he said.

Photo: Mike Shearer

A QPS spokesperson said the service was unable to provide statistics on where members sought employment once they left the force, but said that staffing was continually monitored by regional management to ensure policing needs within the community were met.

However, large billboards posted on the Bruce Highway north and south of Townsville - authorised by Ian Leavers of the Queensland Police Union - proclaim “we need more feet walking the beat”.

A Defence spokesperson said that ADF exit survey results indicated about 10–15 per cent of personnel leaving the service intended to secure employment in the mining industry.

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NEWS

The Mining Advocate | March 2012

3

Jobs drive keeps it in the family A recruitment initiative in the heart of gas country aims to build the workforce across various industries and deliver lifestyle benefits.

The Western Downs Regional Council and about 37 companies have adopted a “jobs for partners” scheme, aimed at ensuring employment consistency across all sectors and security for families.

Western Downs Mayor Ray Brown said the region was home to a strong agricultural industry, in addition to the district’s huge coal seam gas industry and new power stations.

“When we look at employment we don’t want to rob Peter to pay Paul, so encouraging a workforce across all sectors, not draining any particular industries, and ensuring our service industries are well supported is essential,” Cr Brown said.

“Whether partners are male or female, we need to find work for them. This will help keep families together, build the community and encourage employees to stay longer.

“I look after 23 towns and if we can create a lifestyle families want then those communities are the winners.”

Cr Brown pointed to Dalby-based construction and engineering company Ostwald Brothers as a business which recognised that keeping families together equated to keeping employees longer.

To this end, they actively encourage couples to join the company in a range of roles, according to chief executive officer Brendan Ostwald.

Ray Brown Western Downs Mayor

“As a family company, we foster family values and what better recommendation could there be than when employees encourage other family members to work for us,” he said.

“Many of our projects are located in the Surat and Bowen basins and we recruit heavily in these areas but we also need to recruit more widely because of the high demand for skilled workers.

“We are currently offering about 140 positions across many areas of our operations and we find it much easier to persuade families to move into regional areas if there are job opportunities for more than one family member.”

Already about 10 per cent of the Ostwald workforce consists of people with other family members working for the company.

“For example, one couple moved from Brisbane to Dalby last year after finding work at Ostwald Brothers - one as a payroll manager and the other as a vehicle allocator,” Mr Ostwald said.

“They saw the advertisement

for a Dalby-based job with Ostwald Bros and did some research on the company. They liked the idea that it was a family company, big enough to offer a range of job opportunities.

“When they drove out to have a look at Dalby, they liked the look of the town, and decided to give it a go.

“Now they are really happy with their work and the area.

“Another example is a couple who joined Ostwald Brothers when they moved back to Queensland after a stint working in Western Australia.

“One had previously worked for us as an engineer and her husband joined the company soon after.

“She is now working as a project manager and has a fourmonth-old. They say working together in the same company gives them flexibility as a family.”

Joint effort to boost affordable housing stocks The Western Downs Regional Council is driving an innovative scheme to deliver affordable housing to local communities.

Mayor Ray Brown believes the strategy they have developed is the only one of its kind in Australia.

The Queensland Co-ordinator General and companies including Origin, Queensland Gas Corporation, Santos, Arrow and Xstrata have also been involved in implementing the scheme to provide affordable housing across the region for non-mining and community service personnel.

“For the mining companies to do business in Queensland, they must address both the environmental and social impacts of their being here, and affordable housing is just one of them,” Cr Brown said.

“The project is well advanced and everyone involved is very excited about it because we urgently need to get bricks and mortar on the ground.

“It’s taken about three years to formulate the strategy and make sure it will deliver affordable housing to our communities, not the mining sector.

“We realised quite early the issue needed to be addressed. The State Government wasn’t doing anything and our substantial Western Downs agricultural industry was at stake.

“People were saying it was too dear to live here and the result was that the crops weren’t being harvested.”

Cr Brown said the affordable housing problem also applied to the service and business sectors.

“There was no template to deal with

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this so we had to design it all ourselves.

And because we aren’t aware of this happening elsewhere, we are happy to share our strategy to make sure all regional and rural Australia in the resource regions is looked after,” he said.

“The Western Downs Regional Council itself leads by example in providing 62 affordable homes for non-mining sector workers. But we have a huge challenge ahead, particularly when you consider my responsibility is to keep 99 small communities and 23 towns - the heart and soul of our existence – intact and also deal with what’s ahead.”

Cr Brown said coming up with an exact figure on how many affordable houses were needed in his region was difficult.

But it was many thousands in total.

“The Co-ordinator General has

stipulated how many must be built - for example, some towns may need 180 and another 240 houses.

“Regardless of the figure, they will all be built through our affordable housing strategy to offset the cumulative effect of unaffordable housing that’s hurting our communities.”

4

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March 2012 |

The Mining Advocate

Alpha seeks help for lift-o The need for a new airstrip and basic town services is among the challenges facing this up-and-coming coal hub, writes Jan Green.

The tiny Galilee Basin town of Alpha, population around 400, has massive coal reserves on its doorstep but nowhere near enough infrastructure or community services to support what is fast becoming a hotbed of mining activity.

Barcaldine Regional Council Mayor Rob Chandler said he was among a number of mayors in the Surat, Bowen and Galilee basins battling to cope with Queensland’s massive mining and gas growth.

The Alpha airstrip is a prime focus for Cr Chandler and he has approached the region’s three major coal proponents - AMCI Bandanna, Waratah and GVK Hancock - to contribute to the upgrade of the town’s 1400m by 30m runway. “The present strip can cope with small aircraft but not 100-seaters, so a complete upgrade is essential,� Cr Chandler said.

Rob Chandler Barcaldine Regional Council Mayor

“I believe we need a 2300m by 45m airstrip to cater for 100seat aircraft and all associated infrastructure such as airport buildings and parking areas. “We would like to retain

ownership – that would be one way council can draw income from it – but so far only one mining company has pledged some money, subject to approvals.�

He estimated the upgrade could cost $25-$30 million. “The main runway, which I’d like to see completed by October, is the priority – so we can get the aircraft in – and the associated infrastructure can come later,� Cr Chandler said. “A regulated air service from Alpha to Brisbane would also benefit people who live in Barcaldine, Blackall and Aramac who frequently can’t fly out because of limited flight capacity.�

Cr Chandler’s other major focus is the extension of basic services such as power and water to the communities of Alpha and Jericho.

He is adamant that mining company support is vital, given what he sees as State Government neglect and an annual council rates income of only $5 million. “We also urgently need to attract a doctor, more kids to the school, more police, paramedics

The small town of Alpha in the resource-rich Galilee Basin.

and fire and rescue services,� he said. “The main beneficiaries from mining are going to be the mining companies themselves and the State and Federal governments. “But, the governments particularly are treating us and other small regional councils like Isaac, Banana and Central Highlands with disdain.Their attitude seems to be that the proponents will build the infrastructure and they’ll just sit back and reap the royalties. “But the royalties coming out of Surat, Bowen and, potentially, the Galilee basins are being

sucked into the south of the state and not coming back to us. I’m also aware that in contrast to the Queensland Government, the Victorian Government helps with a town planning flying squad when it’s beyond the reach of small councils. “We’ve pleaded with State Government planning people to live in the community and assist us because we haven’t got the expertise to handle the complexity of massive companies planning to spend $26 thousand million on projects and construction. But to no avail.�

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The Mining Advocate | March 2012

5

Childcare crunch on the coalfields High living costs are making it hard to staff some much-needed services in Queensland’s resource industry hot spots, writes Jan Green.

The recent threat of a Moranbah childcare centre closing has been averted.

However drastic staff shortages have left 150 children on the waiting list, prompting concerns some working parents may pushed out of the district.

Isaac Mayor Cedric Marshall said closure of the facility would have impacted dramatically on the mining town.

It is one of two local childcare centres, in addition to the town’s kindergarten.

“To ensure the centre remained open, in a group effort with BMA and Anglo American, council purchased the facility in November last year and renamed it,” Cr Marshall said.

However, the revamped Moranbah Early Learning Centre, now under the management of Total Childcare Solutions, can only operate at

45 per cent capacity because childcare staff can’t afford to live in the coal mining hub, according to an executive.

“Unless the mining companies in the affected areas come up with a solution to house childcare workers and other essential services, the mothers will leave Moranbah and, in my experience, their husbands will follow shortly after,” Total Childcare Solutions managing director John Wall said.

A BMA spokesperson said that organisation alone had invested more than $650,000 on childcare projects in Moranbah and $2 million for upgrades on Dysart and Blackwater childcare centres.

“In addition, BMA supports the childcare centres in Moranbah through providing accommodation for three childcare providers, including Moranbah Early Learning

Centre,” the spokesperson said.

“The company will continue to work closely with local government and other key stakeholders.”

Mr Wall called on Anglo American and BMA to set up a steering committee to come up with a solution before more childcare staff were lost to the Moranbah housing crisis.

Queensland Mining Communities president Kelly Vea Vea described the problems facing childcare in Queensland’s resource growth regions as yet another casualty of governments teaming up with mining companies to deliver record profits and royalties without delivering sustainable services and communities in return.

“Councils are increasingly… being left to hold the baby on childcare, despite not being funded to do so,” she said.

“Small business and essential services are bleeding workers to the mining industry, which seems to operate without concern for the impact they are having on

Three-year-old Jaxon tries out some of the new play gear at the Moranbah Early Learning Centre.

Photo: Kate Redmond

communities as a whole or even bothering to develop a plan to support their surrounding regions as a whole.”

In a bid to ease pressure on childcare services in the Gladstone region, the Rio Tinto Alcan Community Fund and the local childcare sector have joined

forces in a $1.2 million initiative to encourage residents to make their homes available as family day care centres.

“We believe it is essential that we continue to play our part in addressing critical community issues,” community fund chairman Armando Torres said.

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March 2012 |

The Mining Advocate

Masters a blast for Isa veteran With fishing, drinking and mates, the on-field action is just part of the football fun for this long-time competitor, writes Jan Green.

Prospectors Mount Isa branch manager Russell Armstrong is looking forward to participating in his 15th AFL Masters National Carnival in Townsville in October.

Inducted into the AFL Masters Hall of Fame in 2009, the veteran footballer estimates he has played about 300 masters games for a few different clubs since 1995.

He has competed in all but three national masters carnivals.

Russell will be 62 when he plays for New South Wales – as he always has - in the 2012 event.

But such is the spirit of the game that if NSW is over represented he could well end up playing for another state.

Russell could almost be considered a junior compared to many masters enthusiasts.

“We have a number of very fit players in their mid-60s to mid70s and, because so many ‘oldies’ have been playing for so long,

it has been necessary to create five categories of competition to cater to the wide range of ages,” he said.

Some trained seriously, while others regarded playing more as a bit of fun, Russell said. He places himself in the latter group.

“Before coming to Mount Isa, I played at least once a fortnight but I haven’t even had a kick here,” he said.

“There are plenty of young teams about but none for old fellows. Because I’m so busy with my work for Prospectors in mining and explorations supplies, I couldn’t be as involved as I was previously, even if I wanted to be.

“But, since I’m playing in the age group where I don’t have to run my legs off, it’s not really a problem. I usually play at fullback and I tell the opposition forward: ‘If you want to run mate, go ahead. I’ll see you when you get back!’

AFL masters enthusiast Russell Armstrong with his footy memorabilia.

“In addition to the national carnival games, there’s touring, drinking and fishing (and more drinking) to be done - making the social aspect as important as the sport. It’s a great opportunity to make friends from all over

Australia and, because it’s essentially ‘old fellas footy-forfun’, you get to enjoy a bit of a kick, a mark and a run around.

“In my younger days, I played as a tough back man and ironed the occasional bloke out. But

Photo: Roslyn Budd

as you get older, you don’t hurt anyone – you go for the ball, not the person – and it doesn’t matter if your opponent gets a kick.

“There are no sheep stations riding on the outcome. It’s just great fun.”

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The Mining Advocate | March 2012

7

Rail’s new long-distance rival A proposal for a vast conveyor system that could carry millions of tonnes of coal from Alpha to Abbot Point is making headway.

Replacing rail and road transport with long-distance conveyors hundreds of kilometres long will revolutionise the way gross tonnage of all kinds is moved around the country, according to Capella inventor and mechanical consultant Les Dunn.

Mr Dunn has been working on this world-first possibility for more than 20 years and is confident his concept is on the verge of implementation.

He was voted a winner on an episode of ABC TV’s The New Inventors last year for the safety idlers used in his long-distance conveyor model.

He described these as simple, practical, cost effective, environmentally friendly and extremely versatile in terms of the terrain the system can cover and ease of construction.

Mr Dunn said the longest existing bulk carrying conveyor was a 100km long structure built to carry phosphate in Africa.

But it’s nowhere near as sophisticated as Mr Dunn’s modular system of a single conveyor - either 467km or

530km long - designed to carry up to 270 million tonnes a year from Alpha in the Galilee Basin to Abbot Point, outside Bowen.

“I’ve been talking to some of the major mining companies about it and they are very, very receptive to the idea,” he said.

“I understand the outlay for rolling stock and infrastructure to transport coal from Alpha to Abbot Point by train could, at peak production, be $16$17 billion for a maximum 120 million tonnes per year.

“In comparison, my modular aerial-mounted conveyor system would cost around $6.4 billion and, unlike train infrastructure, it has an environmentally green footprint.”

The benefits would not be limited to the resources industry, Mr Dunn said.

“Farmers and graziers wouldn’t lose cropping and grazing land, they would get the benefit of water at certain points and the conveyor’s power generation,” he said. “Plus emergency services could use the purpose-built maintenance gallery travellators

Les Dunn Inventor and mechanical consultant

- vehicles which run inside the module.

“In addition, the system’s height makes vandalism difficult and, unlike rail tracks, conveyors aren’t affected by flooding.

“Single piers support the conveyor belts - which are capable of straddling most creeks – in contrast to multiple piers and massive infrastructure required for a rail system to carry 30,000 tonnes of train and coal.

“The added beauty of my conveyor system is it can be run through towns, is aesthetically pleasing, silent, fully covered and dust proof and delivers the

product at only a fraction of the cost of road or rail transport.”

The conveyor system has also been designed to be solar powered and feed excess electricity back into the national grid.

“It could also power entire mine sites, minimise carbon footprints, substantially reduce the amount of trucking needed on site, and carry more than one company’s product by staggering coal or goods along the belt,” Mr Dunn said.

“At the port, coal can be stockpiled for ship loading or transferred directly on to ships,

thus reducing the amount of infrastructure required at both ends of the port route.”

Mr Dunn said his simple concept had not been implemented previously because the propriety drive units to pull the conveyor along had not been invented.

“However, I’ve developed a drive head to do that and, while I’m still doing some research and development on it, I believe it’s just about ready to go.

“All being well, the system could be operating in about 18 months.”

The conveyor structure to be fitted to the long overland conveyor modules.

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March 2012 |

The Mining Advocate

Cutbacks at Kagara The strong dollar and a decline in commodity prices have been blamed as an Australian miner is pushed into a major restructure.

Kagara is mothballing several North Queensland base metal operations and shedding 130 jobs following a financial blow in the last half of 2011.

The company reported a net loss after tax of $48.9 million in the six months to December 31 in a delayed report to the financial market.

It announced a significant restructure of its North Queensland operations as a result.

Kagara plans to refocus its activity around zinc and copper production from the Balcooma underground operation and Baal Gammon open-pit operation in the central Mount Garnet region, with ore processed through the Mount Garnet treatment facility.

The company said it would suspend development of the West 45 underground mine at Thalanga, in the Charters Towers region, until a sustained

improvement in zinc prices was evident. It also plans to place the Thalanga processing operation into care and maintenance once economic stockpiles are processed towards the end of March.

The company had previously announced a temporary suspension of mining activities at the Mungana underground mine, in the Chillagoe region, and it has now placed that operation on care and maintenance as well.

The cutbacks are expected to result in about 130 redundancies from Kagara’s permanent workforce across its North Queensland operations and Perth corporate headquarters - taking the overall workforce to about 350 including contractors.

“As a key player in the resource sector in North Queensland, the company deeply regrets the impact of these measures on its workforce,” managing director

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Kagara’s Mungana polymetallic mine has been placed on care and maintenance.

Geoff Day said in a statement.

“Meetings are being held by senior management representatives across the business and a recruitment consultant has been engaged to assist people impacted by these regrettable but necessary decisions to restructure the business.”

The survival plan announced in early March has seen Kagara postpone components of its fiveyear growth plan announced last September, which included a

major boost to exploration efforts in North Queensland.

The company said the continuing strength of the Australian dollar and a significant decline in commodity prices had a significant impact on revenue in recent months.

“The company is confident that, by focusing on its core central region operations, it will be in a strong position to weather the current downturn and be well placed to achieve

Photo: Robert Garvey

its growth plans as conditions improve,” Mr Day said. “The mid to longer-term outlook for zinc and copper prices is widely viewed as robust, especially in response to the closure of many major zinc mines over the coming few years.”

Kagara also recently announced that it had reached an agreement to sell its Lounge Lizard nickel mine in Western Australia for $68 million to Western Areas.

NEWS

The Mining Advocate | March 2012

9

Thar she blows, a white wonder A company producing high-purity lump quartz in North Queensland has reached a milestone, with key furnace tests under way in Asia.

A new North Queensland mine is poised to tap the expanding market created by hi-tech applications such as solar panels, mobile phones and LCD screens.

Solar Silicon Resources Group is producing commercial quantities of silica quartz from the Lighthouse mine near Mount Surprise, 250km southwest of Cairns.

Commercial operations manager Andrew Hamilton said the company shipped 2000 tonnes of lump quartz from Townsville in December for a major furnace test at a Chinese silicon smelter.

“Once completed company expectations are that it will result in annual sales of more than 100,000 tonnes of lump silica quartz,” he said.

The Lighthouse operation is centred on two striking white mountains - or blows - of highpurity silica quartz.

On-site processing involves excavation, wet screening and sizing of material. However the company is expanding production and processing capability.

High-purity lump quartz is an essential ingredient in the production of silicon metal - which is then used to produce solar panels and semiconductors.

High-purity quartz sand is in demand for a range of hi-tech applications including solar crucibles, LCD screens, and halogen and mercury lamps.

The two white blows at the heart of the silica quartz operation outside Mount Surprise in North Queensland.

“To reach the high-purity sand market, that’s where you need a lot of processing – that’s a huge focus for this company,” Mr Hamilton said.

“We have a research and

development team, including industrial chemists, located at our Melbourne laboratory and test facility. They are developing new processes for high-quality quartz product lines and are

Cairns smelter plan ditched Quartz miner Solar Silicon Resources Group says it dumped a proposal for a $150 million silicon smelter and processing plant in the Cairns area after failing to attract government support.

Commercial operations manager Andrew Hamilton said the plant would have generated 1700 jobs, including in construction.

However, representations at State and Federal levels did

not draw the expected level of interest, he said.

The company had been seeking assistance to limit the bureaucratic delays likely from dealing with regulations at the different levels of government, Mr Hamilton said.

Solar Silicon Resources Group has turned its attention offshore, where authorities have offered tax breaks and heavily discounted industrial land.

Reserve Training & Safety (RTS) Townsville has relocated, the new facility improves the capability for RTS to deliver high risk occupations in conjunction with its current courses including Standard 11, QMS, G2, Confined Space, Working at Heights. RTS specialises in tailoring and delivering quality training to ensure specific outcomes for organisations.

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It plans a $25 million crucible sand processing plant near Shanghai and a $100 million processing plant in Singapore.

Federal Resources and Energy Minister Martin Ferguson said the government supported investment in Australia and had procedures in place to facilitate the market delivery of such major projects.

being assisted by the company sales team, who are targeting different segments of the solar and semiconductor markets.”

The visible and known 1.83 million-tonne deposit at Lighthouse has a purity level greater than 99.98 per cent and Solar Silicon Resources Group estimates there is a further 4-6 million tonnes within that structure.

Parent company, Auzminerals Resource Group, holds exploration rights extending over 15,000sq km in the region as well as a silica sands project at Mourilyan, near Innisfail.

Mr Hamilton said the Solar Silicon Resources Group was well positioned to become the largest supplier of high-purity silica quartz in the world.

The company is finalising a $US1.4billion listing on the Singapore Stock Exchange.

10

INDUSTRY UPDATE COAL AND GAS

Yarwun terminal push

March 2012 |

Macarthur mines overhaul

Tenement to Terminal (3TL) has submitted its initial advice statement to the Queensland Government seeking approval to build a coal terminal with capacity of up to 50mtpa at Gladstone.

Peabody has announced plans to improve the cost structure, productivity, and sustainability of central Queensland operations acquired in its Macarthur Coal takeover.

The privately owned Brisbane-based infrastructure development company last year contracted to acquire 134ha of waterfront land at Yarwun from the State Government.

Key components of the 2012 agenda – set out in Peabody’s annual report - include a major upgrade to the Coppabella mine to improve the mine plan and correct a significant overburden removal deficiency; increased dragline and equipment utilisation and productivity at Coppabella and Moorvale; major equipment repairs deferred under prior management; and improved coal marketing activities.

3TL said it had started a project development phase, expected to cost $35 million, to enable a final investment decision to be made by December 2014.

The first stage of the terminal, which would handle up to 25mtpa, was expected to open in the first quarter of 2017, the company said.

Springsure Creek haulage deal Asciano’s coal haulage business, Pacific National, has entered a 15-year performance-based take or pay contract with Bandanna Energy for the annual movement of up to 4mtpa from its proposed Springsure Creek mine in central Queensland.

The contract commencement was aligned to the start of Wiggins Island Coal Export Terminal (WICET) Stage 1 operations at Gladstone, expected in mid-2014.

New crew at Bandanna Former Macarthur Coal executive Michael Gray, who led the development of the Middlemount mine, has replaced Dr Ray Shaw as managing director of Bandanna Energy.

The company said Mr Gray’s appointment co-incided with an exciting period of development for Bandanna as it consolidated a clear pathway from mine to port for its Springsure Creek coal assets.

The appointment of Mr Gray came after mining engineer John Pegler – formerly the chief executive officer of Ensham Resources - joined the Bandanna board in January.

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Peabody has also approved the acceleration of development for the new Codrilla mine, about 30km east of the Moorvale mine and about 120km southwest of Mackay.

It is now expected to produce first coal in late 2013, with volumes ramping up to about 3.5 million tonnes by 2014.

Significant projects The Collingwood and Taroom coal projects in the north of the Surat Basin have been approved for “significant project” status by the Queensland Coordinator General.

The projects - owned by Cockatoo Coal and a subsidiary of Mitsui Coal Holdings - are regarded as having the potential to export up to 14mtpa combined across 25 years of operations.

“Receiving ‘significant project’ status will be a recognition of the considerable economic potential of these two projects and the scale of benefits that they may bring to the Queensland community,” Cockatoo Coal chief executive officer Andrew Lawson said. “However, it will also mark the start of the next phase in our interaction with a wide variety of stakeholders within and outside the

GLADSTONE

government as we continue the detailed project assessment, planning and evaluation required prior to any decision to proceed.”

Caval Ridge work awarded Thiess has won a $180 million contract with BHP Billiton Mitsubishi Alliance (BMA) for civil earthworks to develop the Caval Ridge mine project, south-east of Moranbah in central Queensland.

BMA’s Caval Ridge opencut coal mine is expected to produce up to 5.5mtpa and process an additional 2.5mtpa from BMA’s adjacent Peak Downs mine.

The Thiess contract includes the construction of heavy haul roads, the early works for product stockpile and conveyor area, drainage infrastructure and creek diversions, and the handling of nearly seven million cubic metres of material

Industrea stays on at Baralaba Industrea Mining Services has announced the continuation of its whole of mine contract for Cockatoo Coal’s Baralaba South mine in the Bowen Basin.

Industrea Mining Services expects revenue of about $76 million from the contract through to December 2013.

The contracted works include the provision of drill and blast services together with construction of the recently completed 1:1000 flood levee wall extension.

Big year for QME Organisers say strong growth in the central Queensland mining sector is setting the stage for Mackay’s Queensland Mining and Engineering (QME) exhibition in July to be bigger and better than previous events.

QME 2012 will be held at the Mackay Showground from July 24-26, with related events to be based at the Mackay Entertainment and Convention Centre.

Reed Mining Events director Paul Baker said more than 90 per cent of show space had been allocated by late February.

He said Reed Mining Events would be announcing a number of related initiatives designed to attract additional visitors in 2012, such as a recruitment element aimed at people looking to careers in the mining industry.

Winning resource women A Brisbane woman whose global role takes her from Mozambique to Namibia, the USA and back again has won this year’s Queensland Resources Council Resources Award for Women.

Fiona Nicholls, vice-president – external relations for Rio Tinto Energy, is the only female member of Rio Tinto Coal Australia’s executive committee and one of three women on Rio Tinto’s global energy product group executive committee.

Carolyn Hillard, manager - engineering technical at Sedgman, was named overall runner-up in the annual awards.

The Bow Energy business has been integrated into Arrow after the 100 per cent acquisition was finalised in January.

Arrow Energy chief executive officer Andrew Faulkner said the acquisition allowed Arrow the potential to expand the liquefied natural gas (LNG) train

The BHP Billiton Mitsubishi Alliance Diversity Plan was named best company initiative, with Clough’s Women@ Clough Strategy as runner-up.

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size at its planned facilities on Curtis Island. Bow employees had received the opportunity to join Arrow, he said.

Category winners included open-pit production supervisor at Xstrata Zinc’s Handle Bar Hill mine - Michele Todd, BMA Peak Downs mine apprentice electrician Rhiannon Martin and Brisbane-based Sedgman process engineer Jo Kirby.

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INDUSTRY UPDATE COAL AND GAS

The Mining Advocate | March 2012

Pipeline progress

More than 5000 jobs have been created in Gladstone as a result of new CSG and coal export industry development, Gladstone Economic and Industry Development Board chairman Leo Zussino said.

Construction of the largest diameter long-distance pipeline in Australia is ramping up following heavy rain in the gas fields of western Queensland.

The 42-inch (about 1m) diameter steel pipeline, which will be buried for more than 540km, will take gas from fields around Chinchilla to Gladstone as part of QGC’s $US15 billion Queensland Curtis LNG Project.

“Another 2000 jobs will be added this year, taking the total to over 7000 new construction jobs by the end of 2012” Mr Zussino said.

“Gladstone is a stand-out economic success centre on Australia’s eastern seaboard during these subdued and uncertain economic times.”

Some work was temporarily suspended

by QGC’s pipeline contractor in January due to the wet conditions.

QCLNG project senior vice-president Alexander (Sandy) Nairn said all 46,200 12m lengths of pipe had been delivered to sites along the pipeline route in preparation for welding and burial.

“The construction workforce for the LNG and coal projects in Gladstone will peak at over 11,000 next year and, with almost a 60 per cent local content in the workforce to date, significant job opportunities are available to those with the necessary skills in more depressed parts of the country.” he said.

Green light for Ichthys plant

The pipeline is being constructed by a joint venture of McConnell Dowell and Consolidated Contracting Company.

Burial of the first sections of the pipeline was expected to start in March following safety and integrity testing.

The Northern Territory Government has given development consent for the Ichthys gas plant at Blaydin Point, Darwin. This follows the recent announcement by INPEX Corporation and Total confirming the final investment decision on the $US34 billion Ichthys LNG project.

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“More than 1300 people are involved in preparing the pipeline easement, digging the trench, welding and testing the welds before eventually burying the pipeline,” Mr Nairn said.

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NT Acting Chief Minister Delia Lawrie said the project was the secondlargest private investment in Australia’s history.

At the peak of construction, a workforce of about 3000 will be needed to build the onshore facilities, which include an LNG plant, a condensate plant, product loading jetties and a 300MW power station.

INPEX chairman Naoki Kuroda said all successful tenderers to the project would have to demonstrate how they would maximise the use of Australian products and services.

QGC project director - upstream Ken Larson, Thiess chief executive officer Bruce Munro and QCLNG senior vice-president Sandy Nairn discuss the contract.

Thiess has won a $325 million contract to construct gas processing facilities in the Surat Basin for the Queensland Curtis LNG project (QCLNG).

The six field compression stations and one central processing plant, to be built about 30km north-west of Dalby in southern Queensland, represent some of the upstream facilities QGC is developing for the project.

The facilities will process gas for transport via an underground pipeline to Gladstone.

QCLNG senior vice-president Alexander (Sandy) Nairn said Thiess’s contract included “a robust plan” for employment of local personnel and contractors.

Thiess will undertake all civil, mechanical and high-voltage electrical work in constructing and commissioning the facilities between now and the first half of 2013. The project is expected to employ about 570 workers at its peak.

Engineering and construction company Clough recently announced that the BAM Clough Joint Venture had received a letter of intent for a contract valued at $140 million to design and construct the Ichthys LNG project module offloading facility near Darwin. The facility will be used to offload modules being supplied under other subcontracts to assemble the LNG liquefaction plant.

Oil and gas wages rise Wages and confidence are surging in the global oil and gas industry, according to a guide produced by Hays Oil & Gas with Oil and Gas Job Search.

The annual salary guide, based on more than 14,000 respondents worldwide, showed an increase in employer confidence - with 26.7 per cent extremely positive about the current market, up from just 9.7 per cent in 2011. Three quarters of all employers expect staffing levels to increase in the next 12 months.

“With confidence comes salary increases and this is reflected with an increase in the average worldwide salary for professionals and skilled employees in the industry to $US80,458 per annum (equivalent) - up 6.1 per cent in the past 12 months,” Hays Oil & Gas managing director Matt Underhill said.

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INDUSTRY UPDATE HARD ROCK

Here’s the drill

March 2012 |

Hall told the Paydirt conference that the pending re-start of nuclear reactors in tsunami-impacted Japan – expected to commence from around April – should have a marked upwards pressure on the global spot price for uranium.

Zinc power in the Territory A proposed $270 million expansion of McArthur River Mining (MRM) would create 295 jobs when in operation, taking the Northern Territory site’s workforce to 735 by 2020, Xstrata Zinc says.

The Barminco crew starts work on a decline at Dugald River.

Barminco has added a $100 million contract for underground development at Dugald River to a raft of work in north-west Queensland.

The two-and-a-half-year contract at MMG’s zinc, lead and silver project encompasses the development of two exploration declines to access and develop the orebody.

Decline development for Dugald River, 65km north-west of Cloncurry, is expected to continue until June 2014, with annual development of 9000m and a workforce of close to 100 personnel.

The Dugald River contract takes the total Barminco projects in Queensland to four, with other contracts in the region including the Mt Gordon, Ernest Henry and and Eloise copper mines.

$132m equipment contract Industrea Mining Services has won a $132 million contract renewal for the hire, service and support of equipment to Xstrata’s Black Star mine.

Industrea managing director and chief executive officer Robin Levison said the renewal contract up to December 2013 was for the existing fleet of equipment at improved rates.

Major uranium upside The untapped prospectivity for uranium around the Pine Creek region of the Northern Territory should not be under-estimated according to Thundelarra Exploration.

Addressing the recent Paydirt 2012 Uranium Conference in Adelaide, Thundelarra managing director Brett Lambert said the company’s Thunderball prospect discovery in the Hayes Creek tenement area had generated bonanza grades in the thousands of parts per million.

Recent work had found surface samples at Hayes Creek of up to 17 per cent uranium oxide, Mr Lambert said.

“It is our belief that the area remains lightly explored and that there is significant potential for further uranium discoveries, particularly in some of the major fault systems through the province,” he said.

Toro Energy managing director Greg

A draft environmental impact statement lodged recently for the project showed the expansion would boost industry output by $8.4 billion within the Northern Territory economy and $9.3 billion nationally during the construction, operational and decommissioning periods.

“Our earlier estimates have now gone through the robust process of an EIS and we’re looking at being able to offer more jobs, a longer mine life and greater financial investment into the community in which we operate and the Northern Territory and Australian economies,” Xstrata Zinc Australia chief operating officer Brian Hearne said.

The company proposes increasing capacity at the mine from 2.5 million tonnes of ore per annum to 5.5 million tonnes, producing about 800,000 dry metric tonnes per annum of zinc-lead concentrate for export markets.

The project would extend the life of mine by nine years from 2027 to 2036.

The proposed expansion of MRM is in the feasibility study stage and is subject to approval by Xstrata.

Explorers invest $3 billion Almost $3 billion was invested on mineral exploration nationwide during 2010/11, according to a report compiled

by Geoscience Australia.

The Mining Advocate

The Australian Mineral Exploration Review 2011 showed increased expenditure in all jurisdictions except Victoria.

Western Australia dominated spending with $1590 million, an increase of 28 per cent on the previous year, followed by Queensland with $664 million, up by 52 per cent.

Spending in the Northern Territory increased 31 per cent to $195 million.

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Iron ore exploration spending increased 27 per cent to $665 million, while uranium was up 27 per cent to $214 million and gold exploration investment rose by 13 per cent to $652 million nationwide.

New-look skills body The Mining Industry Skills Centre has been rebranded as Kinetic Group, in a move chief executive officer Derek Hunter described as critical to ensure the needs of industry were being met.

“Ultimately, the commitment of Kinetic Group as the skills advisor to the resources sector is reliant on our relentless focus on the needs and future direction of the industry,” he said.

“This is represented by our fluid, evolutionary approach to our brand.”

The organisation was established in 1994 as the Queensland Mining Industry Training Advisory Body.

It was relaunched in 2006 as the Mining Industry Skills Centre, a centre for excellence in workforce development and planning initiatives for the mining industry.

INDUSTRY UPDATE HARD ROCK

The Mining Advocate | March 2012

Phosphate float Legend International Holdings has transferred its north-west Queensland phosphate assets into a subsidiary to be floated on the Australian Securities Exchange.

13

Road pit riches

included a significant boost to the scandium resource and a further upgrade to nickel-cobalt resources, the company said.

Metallica managing director Andrew Gillies said completion of the exploration phase enabled the company to focus more on its mining The company announced the move, and engineering feasibility studies, with a $7.5 million convertible note permitting for development and facility from Acorn Capital, as the first marketing efforts major milestone for towards potential end financing its Paradise After 16 years of recruiting users of scandium. phosphate project.

in the mining industry MPi has you covered.

“There has already been strong customer interest and enquiry in our project and the company remains confident in our potential to establish long-term customers who require In a company scandium for high announcement, Call 07 3220 3129 performance and miningpeople.com.au Legend said its senior high value aluminium management believed alloys, more efficient a dedicated Australian solid oxide fuel cells company wholly focused on phosphate and scandium-bearing metal halide would be best placed to bring the lighting,” he said. project into production.

The phosphate assets include the phosphate rock deposits of Paradise North and Paradise South, the D-Tree deposit and areas under the King Eagle joint venture.

Tender documents for the construction of a 1mtpa phosphate rock beneficiation plant at Paradise South have been completed and distributed to various engineering and construction companies.

Legend said a further five work packages would be completed and ready for distribution by March for a transmission line, water supply dam and tailings starting facility, water treatment plant, accommodation village and administration building, mining infrastructure - including the construction of the ROM pad and haul road - and operations.

NORNICO studies step up Metallica Minerals is accelerating mine and engineering feasibility studies for its NORNICO nickel-cobalt-scandium project in North Queensland following completion of the exploration phase.

An updated resource estimate for the Lucknow deposit within the project

Cerro’s iron-clad update Cerro Resources has announced an updated resource for its Mt Philp haematite iron prospect, about 54km south-east of Mount Isa. The estimate includes an indicated resource of 19 million tonnes averaging 41 per cent iron and 38 per cent silica, plus an inferred resource of 11.4 million tonnes averaging 34 per cent iron and 48 per cent silica.

Decline reaches Little Wizard Ivanhoe Australia’s Merlin project development team has successfully accessed the very high grade Little Wizard ore body, about 75m below the surface.

Merlin, in north-west Queensland, is the world’s highest-grade molybdenum and rhenium deposit. The Little Wizard orebody has an indicated mineral resource of 15,000 tonnes at 6.5 per cent molybdenum and 84g per tonne rhenium.

Svanbergite concretionary nodules from the Coorabulka area, containing strongly anomalous heavy rare earths.

Krucible Metals has discovered significant heavy rare earth elements in surface sampling at its Coorabulka tenement, south of Boulia in Queensland.

Sampling of large concretionary nodules from a shire council road pit showed up to 1.2kg per tonne of yttrium oxide, 4.02kg per tonne of neodymium oxide, 1.08kg of praseodymium oxide and 0.23kg of dysprosium oxide, the company said.

Coorabulka is located 200km south of the Krucible’s flagship yttrium and rock phosphate project, Korella, in north-west Queensland..

“Considering that the highest-grade operating molybdenum mines process ore at an average grade around 0.3 per cent molybdenum, the astonishingly high-grade ore at Little Wizard shows what an extraordinary mineral belt we have in the Merlin/Mt Dore region,” Ivanhoe Australia chief executive officer Peter Reeve said.

Palmer at the podium Mining executive Clive Palmer is scheduled to be a key speaker at this year’s North Queensland Mining, Processing and Energy Conference (NQ-MPEC).

“Prof Palmer has always been outspoken on industry change and we hope that he will help to encourage greater dialogue about the issues faced by North

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Australian Professional Conferences and Seminars will run the event on May 14 and 15 at Rydges Southbank Convention Centre, Palmer St, South Townsville.

Mt Frosty joint venture Chinalco Yunnan Copper Resources has signed a binding agreement with Xstrata Copper to begin exploration on the Mt Frosty copper project, about 60km east of Mount Isa. Under the terms of the joint venture, Chinalco Yunnan can earn up to a 75 per cent interest by spending $4.5 million in the next six years in a two-stage earn-in deal.

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Darwin Mining Club luncheon

The Mining Advocate

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Rob Karlson and Jono Pytko (Chartair) with Tim Hawkins (Skills DMC).

Charles Staples (Power and Water Corp), Terry Mills (NT Opposition leader) and John Tarca (Power and Water Corp).

Alan Stevens, Ron Kamid and Paul Noakes (Holcim).

Claire Forsyth (Hays Recruitment), Brian Sowler (Arafura Resources) and Mark Pitt (Hays Recruitment).

Jody Clark and Dan Janney (Energy Resources of Australia) with Duncan Hedditch (Pacific Aluminium) and Janet Hamilton (Energy Resources of Australia).

Peter Papastergos and George Brown (Hastings Deering) with Alan Wright (Alan Wright Mining and Public Affairs) and Craig Wenck (Hastings Deering).

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The Mining Advocate | March 2012

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Bowen Business Information Forum Queens Beach Hotel, Bowen

Bill Douglas (Rimcorp) and Bob Joy (Supply Connections) with Tolita Dukes and Lachlan Broadfoot (both from Salva Group of Companies).

John Stokes and Grant Rawling (Eastern Nomad) with Peter Tracey (Hancock Coal).

Ross Contarino (Townsville Enterprise), Jenny Whitney (Whitsunday Regional Council) and Terry O’Keefe (Roadtek).

Tomas Hudee (Steinert Australia) with Grant and Susie Craker (Sargent 4WD).

Brian Byrne (Inchcape Shipping Services), Lisa Nicholls (Bowen Towage Services) and Michael Cummins (MRA).

Mike Brunker (Whitsunday Regional Council), Paul Spina (Leighton Contractors), James Webb (Green Energy Technology) and Trent Elson (North Queensland Glass).

Bruce Smith (Dundee Group), Nathan Wyer (Bowen State High School) and Alan Steffens (Power Dome).

Steve Farley (Whitsunday Helicopters), Adam Savage (Delmondo Property Group), Peter Comben (Seabreeze Estate) and Peter Bickerton (Bickerton Masters Architects).

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The Mining Advocate | March 2012

Surat Basin industry networking evening

17

PHOTOS: Alistair Brown

White Bull Tavern, Roma

Anthony Freer, Steve Streidl and Peter Maloney (Southern Cross Automotive).

Kevin Chambers (FKG & Sons Group) and Rob Loughnan (Maranoa Regional Council).

Kaye Maguire (Maguire Coaches), Craig Brown (Queensland Power Transmission Supplies) and Maree Langton (SQIT).

Channey Fell (FKG Civil), Tony Valentine (DTS Group) and Troy Wain (Ezyquip Hire).

Sue Schutz (Decorator by Design), Laurell Ison (Surat Basin News) and Tracey Farnell (My Recruitment Agency).

Andrew Marriott (Fencepac) and Leigh Duncan (Blackwoods).

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Maree Petty (Indigenous Workstars, John Pearson Consulting), Brock McIntyre (Calibre Accounting) and Grant Besley (Besley Finance).

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BETWEEN SHIFTS

March 2012 |

Gala dinner - Moranbah aquatic centre upgrade celebrations

The Mining Advocate

PHOTOS: Erica Smith

Community Hall, Moranbah

Ryan Stitt (Anglo American) and Suzie Liscombe (BMA) with Clinton Vanderkruk, Albie Smit, Leisa Westerman and Scott Green (all Anglo American).

Julie and Nathan Deguara (BMA Goonyella Riverside) with Tony Briffa (BMA Goonyella Riverside).

Bernard Salt presentation

Melissa Craig with Steve Rae (BMA) and Debbie Rae.

Andy Webb (Mining Trade Services), Laine Webb (BMA Broadmeadows) and Adrian Plahn (BMA Goonyella Riverside).

Tina Daniel (Education Queensland), Aaron Daniel (BMA Peak Downs), Michelle Stewart (Education Queensland) and Jarrod Stewart (BMA Peak Downs).

Daniel Chamorro and Catalina Cardona (both BMA Peak Downs).

PHOTOS: Erica Smith

Community Hall, Moranbah

Heather Norris and Nicole Duguid (both from Regional Development Australia) with Jessica Dix (Isaac Regional Council).

Lynnie Busk (Moranbah Traders Association) and Erica Fredericksen (Westfund).

Jody Meier and Kathleen Clancy (both from Arrow Energy) with Cedric Marshall (Isaac Regional Council).

Scott Riley and Anne Baker (Isaac Regional Council) with Pallavi Mandke (GHD).

Michelle Ruddell (Regional Social Development Centre) with Therese Donnelly and Michelle McNamara (both from the Department of Communities).

Mick Lord (Office of Co-ordinator General, DEEDI) and Anne Smith (Sustainable Resources Community Liaison, DEEDI)

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Regional Engineering Teams

The Mining Advocate | March 2012

19

Time for wider recognition Engineers Australia website at www.engineersaustralia.org.au/ regional Mr Mashiah said the website identified all active regional groups (click on the top left-hand corner) and regional areas where new groups could be formed or re-formed.

Equity and increased access to professional development are on the agenda in a year that directs the focus firmly outside capital cities.

Engineers Australia has adopted the theme “Regional Engineering: The Heart of Australia” for 2012, which the organisation has designated as Year of the Regional Engineering Team (YoRET).

In Queensland alone, there are 15 regional groups with membership of around 8000.

“Engineering underpins the economic and social development of our communities and essential to this is the contribution made by members of the engineering teams located in regional Australia,” YoRET Special Interest Group chairman Greg Mashiah said.

He said also that the

importance of regional Australia to the development of our society was often overlooked by many members of the general community.

Mr Mashiah said the Year of the Regional Engineering Team would help raise the profile of this contribution and the importance of regional engineering in Australia’s future by: • Improving access to continuing professional development for regionally based members, • Increasing awareness of engineering opportunities in regional areas, • Promoting equity for all Engineers Australia members, and

“To secure Australia’s future social and economic development will require a vibrant and innovative contribution from all of our regional areas.

“This needs to be supported by investment in capital and skills, along with addressing many of the capacity issues being felt by

“Engineering underpins the economic and social development of our communities” Greg Mashiah YoRET Special Interest Group chairman

• Generating an understanding of the value of the regional engineering team.

Activities undertaken as part of the Year of the Regional Engineering Team will be promoted through the

“Engineering team members living in areas with regional groups are encouraged to participate in their local group’s activities while those living in areas without a current regional group are encouraged to contact their division and inquire about forming a new regional group for their area,” Mr Mashiah said.

our regional areas due to rapid and sustained growth.

“The YoRET is being steered by the Regional Special Interest Group, which comprises regional representatives from each division. The (group) encourages everyone to participate in the YoRET, and looks forward to a very successful 2012.”

Crucial input, from site set-up to wind-down Engineering plays a critical role in the mining industry.

Engineers Australia North Western Regional Group chairwoman Monica Joseph said engineers’ input varied depending on the type of operations, the site set-up and the life of the mine.

In the case of a new mine about to be brought online, for example, the mining and geotechnical engineers would determine the best method of mining while others such as electrical, civil and mechanical engineers would focus on the infrastructure requirements.

“This infrastructure is not limited to the processing plant

and equipment required for the mining, it also includes office and accommodation blocks and other amenities required for mining personnel,” Ms Joseph said.

“At an established mine, engineers can be involved in greenfield and brownfield projects. These projects can involve several engineering disciplines such as electrical, mechanical, civil, environmental and so on, or only one discipline.

“Engineers are also involved in the general operations of the mine and focus on maintenance and reliability. In order to meet production targets, plants need

Monica Joseph Engineers Australia North Western Regional Group chairwoman

to have minimal downtime and an appropriate maintenance schedule. Towards the end of

the life of mine, the engineering focus is on decommissioning and ensuring that any remaining infrastructure does no harm to society or the environment.”

Ms Joseph said engineers working in the mining industry did not focus only on the technical aspects of engineering.

“Many engineers are project managers and/or hold positions in upper management,” she said. “Regardless of the role, engineers are often the link between the operations personnel and management.

They communicate and translate ideas from both parties to provide a solution to

the problem. As a result they often spend time networking and establishing contacts at all levels in the organisation.

“Engineers are team players who work together with other departments to achieve production targets.”

Ms Joseph said while engineers played an important role in supporting the mining industry, they were just one of many pillars.

“So it is important that as the mining industry continues to build, the engineering profession continues to be involved to ensure that the engineering pillar remains stable and intact,” she said.

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Ivanhoe Australia feature

The Mining Advocate | March 2012

21

Smooth run for plant restart A successful recruitment drive has helped Ivanhoe Australia keep on top of its project schedule as action cranks up in the north-west.

Ivanhoe Australia has enjoyed a dream run this wet season in the lead-up to recommencement of copper concentrate production at Osborne.

General manager operations Neal Valk said the weather had been kind, allowing on-schedule completion of a nine-month concentrator refurbishment.

Roads had remained open so neither freight nor people had been delayed at any time.

While the production of copper concentrate has recommenced, the plant will operate on an eight days on-six days off roster until the mining rate increases in about 12 months’ time.

“We will be treating 900,000 tonnes of ore from the Osborne and Kulthor ore bodies for 2012, after which production is scheduled to increase in 2013,” Mr Valk said.

When ready for transport, half containers of copper concentrate are loaded on triple road trains and hauled to Townsville port, where they are stored and made into 10,800 wet-metric-tonne parcels prior to being shipped to overseas copper smelters.

NSS (Northern Stevedoring Services) has been awarded the contract for trucking, storage and port loading.

Mr Valk said three production levels 1200m below surface had been developed at lower Osborne while development in Kulthor continued, with first stoping to occur in May 2012.

“The major exhaust ventilation rise for Kulthor has seen delays with the inability to strip and

concrete-line the top 100m of the rise,” he said.

“This has caused some delays in Kulthor development progressing as scheduled.”

Work has also begun on Ivanhoe’s third copper-gold ore source, Starra 276, - located 50km north of the Osborne concentrator.

Rehabilitation is occurring following mine closure in 2003.

The decline has been stripped from the portal for the first 300m to make it wide enough for current haulage trucks.

Byrnecut Australia has begun mining a decline bypass, while sill driving of the new production levels will start in the third quarter 2012, with first stope production scheduled for early 2013.

Other projects under way

Ivanhoe Australia general manager operations Neal Valk at the Osborne operation in north-west Queensland.

include the construction of a 55km haulage access road between Osborne and Starra -

scheduled to be in operation late this year, and the replacement of power station engines - to

Operation Osborne - an overview Ivanhoe Australia acquired the OsborneKulthor tenements, 195km south-east of Mount Isa, from Barrick in October 2010.

The company had previously acquired the Selwyn project, also in the Cloncurry district.

The restart of the Osborne processing plant is the culmination of 12 months of pre-production investment in the resources of Osborne, Kulthor and Starra deposits.

Initial production will use feed from the lower Osborne deposit, followed by Kulthor.

This will begin this month (March) and be processed at the rate of 80–90,000 tonnes per month, for a total of 890,000 tonnes processed in 2012.

The plant will produce 50,000 tonnes of copper concentrate, which will be road hauled to

Townsville, loaded onto ships and sold overseas.

Pre-production development will continue at Kulthor at the rate of 400m per month, as well as 200m per month at Starra.

Stope production at Kulthor is due to begin in May 2012, while Starra will begin production in 2013.

Further projects in the area are being studied.

These include the Mt Dore deposit, as well as a scoping study on Mt Elliott/ SWAN. In addition, Ivanhoe is actively exploring across extensive tenements in the area.

Each week, 11 charter flights fly 360 Osborne village workers and 170 Mt Dore camp personnel to and from the sites.

These numbers will increase, as further projects are brought online.

be built in Finland by Wartsila, with the first two engines commissioned around mid-2012.

Mr Valk said a very successful recruiting drive had contributed significantly to all plans and projects coming in on time.

“We have all the processing plant operators and lab technicians we need for 2012.

However, with the start of stope production from Osborne, there are still around half a dozen heavy vehicle fitters’ positions to be filled,” he said.

“But everyone who’s been with us along the way has worked really well to bring everything together - from the teams doing the development mining and plant refurbishment through to the support teams in administration, supply, HR and safety.”

22 Building Mining Communities

March 2012 |

The Mining Advocate

SUPPORTED BY BHP BILLITON CANNINGTON

Golf challenge charity push off to a flying start

Kin Kora environment captains Michael Farnell, Brittney Underhill, Mikayla Jones and Jack Moore check out the school’s garden with QAL community relations and media specialist Courtney Brown (left) and Kin Kora teacher Lyn Homann (at back).

QAL forks out to support schools’ green schemes Queensland Alumina Limited (QAL) is gearing up to plant another $10,000 into school environmental projects, with applications being sought for the 2012 Reef Guardian Fund.

The funding is open to all Gladstone region schools signed up on the Great Barrier Reef Marine Park Authority’s Reef Guardian Schools program, an initiative encouraging schools to commit to protecting the reef through education and environmental projects.

Schools are encouraged to apply to QAL’s fund to implement a variety of sustainable environmental projects, or to purchase equipment used to teach awareness on environmental conservation.

Kin Kora Primary School received funding last year, with the donation going towards its longterm environmental management plan to become a sustainable school.

“QAL’s funding really helped us kick-start the projects in our plan with the main aim for 2011 to improve biodiversity in the school through gardening projects,” teacher Lyn Homann said.

“We were able to purchase supplies for the students to participate in National Tree Day and planted natives on the school grounds, as well as set up six complete veggie and herb gardens located throughout the school. The environmental captains maintain the gardens, so they learn all about the importance of prioritising their duties along with school commitments.”

In recent years, the Reef Guardian Fund has provided almost $60,000 in support to local schools, including funding for worm farms, weather stations, water quality monitors, garden beds and even a mini electricity generator.

Four organisations have shared $26,000 raised late last year by the Rotary Club of Townsville Daybreak when it hosted the ABB Queensland Mining Golf Challenge.

Beneficiaries included the Royal Flying Doctor Service (RFDS), The Australian Volunteer Coast Guard, Delta Dog Therapy and the Rotary Foundation.

Queensland Mining Golf Challenge organiser Marcel McLeod, who is also Rotary Club of Townsville Daybreak president, said more than 150 players competed in the charity event, which received generous support from sponsors.

RFDS community fundraising co-ordinator, Queensland section, Mike Greasley said that group’s $6500 share would go towards the purchase of vital life-saving medical equipment and the replacement of ageing aircraft.

“The mining community has always strongly supported the RFDS, with QCoal a principal sponsor of the organisation and Xstrata Mount Isa Mines donating $2 million to the redevelopment of the RFDS Mount Isa base,” he said.

“The growth of the mining industry in outback areas of Queensland has increased the number of people living and working in remote areas who rely not only on the RFDS’s emergency services but increasingly on the organisation’s telehealth care and medical chests for mine staff in these regions.”

Mr McLeod said he was already receiving interest from sponsors for the next mining golf challenge.

“It could expand to become a national event if discussions with our major sponsor get the green light,” he said.

“What this means is that the event will grow and so will the mining and processing commitment to other needy and worthwhile organisations in our community who, like last year’s charities, save lives and provide much- need services.”

Mr McLeod said dates for the 2012 Queensland Mining Golf Challenge were yet to be decided, although it was likely to be held around August-September.

Anyone interested in being involved either as a sponsor, player or volunteer should visit www.mininggolfchallenge. com.au

Rio Tinto boosts community funds Rio Tinto Coal Australia recently launched a $4 million top-up of its three community development funds.

Rio Tinto energy vice-president external relations Fiona Nicholls said the additional funding covered three years from the beginning of 2012 through the Hail Creek mine, Clermont region, and Kestrel mine community development funds.

“Since 1999, when our first community development fund was established in Queensland, we have invested more than $9 million to support a wide range of local projects including business development, education and training, arts and culture, and health,” she said.

Conservation Volunteers Australia is one body which

benefits from the Rio Tinto Coal Australia partnership.

“We are very grateful for the support that the Hail Creek fund has provided to the Sandfly Creek Environmental Reserve, which is the home for several thousand migratory shorebirds each year,” Conservation Volunteers Australia Mackay regional manager Caitlin Davies said.

Aquatic centre opening makes a splash Four days of celebration marked the recent official opening of the $6.5 million Greg Cruickshank Aquatic Centre upgrade in Moranbah.

Representatives from industry, council and almost 200 community members were on hand to watch the plaque unveiling by leaders from the three funding partners - BHP Billiton Mitsubishi Alliance (BMA) asset president Stephen Dumble, Anglo American

senior project manager (Grosvenor project) Byron Higgins and Isaac Regional Council Mayor Cedric Marshall.

Highlights of the festivities included a synchronised swimming display by 2012 Australian Olympic team members Sarah Bombell and Eloise Amberger, children’s activities and a black-tie gala dinner and Olympic auction attended by 150 people.

RFDS senior base pilot Clayton Nankivell and nurse manager - clinical Loretto Harvey with Rotary Club of Townsville Daybreak president Marcel McLeod.

Photo: Cheryl Robertson

Proudly supporting mining communities Cannington

Building Mining Communities 23

The Mining Advocate | March 2012

SUPPORTED BY BHP BILLITON CANNINGTON

Cannington backs classroom kits to share Aboriginal culture

Treated prickly acacia on Eddington Station.

Partnership to weed out pests BHP Billiton Cannington and Southern Gulf Catchments have launched a partnership to assist landholders in the McKinlay and Cloncurry shires actively manage weeds of national significance.

The $250,000 partnership, funded by Cannington, will be managed by local landholders in conjunction with a team of project officers from Southern Gulf Catchments and will target prickly acacia, rubber vine and mesquite.

Preventing the weeds from spreading will have an extensive impact on conserving biodiversity in Mitchell Grass Downs and Gulf Plains bio-regions as well as protecting critical aquatic habitats.

Cannington asset president Bob Fulker said BHP Billiton recognised the importance of controlling the extensive outbreaks of prickly acacia and rubber vine in north-west Queensland.

“We take our environmental responsibilities very seriously and, to that end, are working with landholders and local councils to help manage these weeds of national significance,” he said.

“The weeds represent a significant threat so we are very happy to contribute a significant amount of money to help win the battle against them.”

Southern Gulf Catchments project co-ordinator Charles Curry said project officers would work with up to 50 landholders across both shires.

“The project will run over one year and, using best practice methodology to bring these weed infestations to a propertymanageable level, it aims to strategically control the infestations over approximately 15,000ha,” he said.

“Environmental rewards from this project will be far-reaching and include a reduction of the impacts on the soil as well as native flora and fauna species, the opportunity for ecosystems to re-establish and improved grazing land management practices.”

BHP Billiton Cannington is helping Queensland school children gain greater exposure to Australian culture thanks to a $40,000 grant.

The funds are being used to develop science and Aboriginal learning kits to be shared between schools on a loan basis.

The learning kits are being created by the Queensland Museum in consultation with community members.

They are relevant to grades 4-7 and incorporate real objects such as woomeras, morah stones and boomerangs.

Cannington asset president Bob Fulker said the company was proud to be associated with the development of such an important educational tool and unique resource.

Under the national curriculum, teachers are required to embed indigenous perspectives such as history and regional cultural practices across the whole curriculum while the new science syllabus provides a vehicle for teachers to discuss how

Trish Barnard and Letitia Murgha work on the new science and Aboriginal learning kits.

Photo: Cheryl Robertson

indigenous people used scientific principles such as chemistry, physics and biology in their traditional practices.

Queensland Museum senior curator cultures and histories, Trish Barnard, said many nonindigenous teachers reported they did not feel sufficiently informed to accurately teach indigenous history and regional

cultural practices in schools.

“However, the Queensland Museum learning kits align with the new national science curriculum and will provide teachers with the skills and learning resources necessary to increase teaching competencies in the area of indigenous science,” she said.

EHM to provide $2m top-up Ernest Henry Mining (EHM) will contribute a further $2 million towards the Cloncurry Community Precinct - taking the company’s total support to $2.75 million.

General manager Myles Johnston announced the funding during a recent EHM community information session at the Cloncurry Bowls Club.

He said the precinct was the first major social infrastructure project Ernest Henry had supported in Cloncurry.

“We provided $750,000 towards the precinct in 2010 under the Xstrata Community Program North Queensland,” Mr Johnston said.

“However we wanted to invest more through

this program to ensure all of the features suggested during the project’s consultation and design phases could be incorporated during construction.

“The Cloncurry Community Precinct will create a state-of-the-art facility for our local community and we are extremely proud to be the largest financial supporter of the project.”

The project involves the refurbishment of the Cloncurry Shire Hall and the inclusion of a library, art gallery, function rooms, amenities and communal outdoor space.

The Cloncurry Community Precinct is expected to open in June 2012.

Helping hand for sick kids Xstrata has contributed $1 million towards the completion of Ronald McDonald House’s new 12-bedroom facility on the doorstep of the Townsville Hospital.

Xstrata Copper North Queensland chief operating officer Steve de Kruijff said Ronald McDonald House had helped almost 300 families of seriously ill children from within Xstrata’s North Queensland communities since it was established in 2004.

“Another compelling factor for us was that a large percentage of those families assisted were also our valued employees

and, based on those statistics, I would say that the house in Townsville is not just a ‘nice to have’ service, but a necessity,” Mr de Kruijff said.

Ronald McDonald House North Queensland chairman Paul Rissman said the organisation had been fundraising for the past five years with the goal of being able to double the capacity of Ronald McDonald House in Townsville from 12 to 24 rooms.

“Xstrata has provided us with the final $1 million needed to secure the future of our $3 million project,” Mr Rissman said.

Xstrata Copper North Queensland chief operating officer Steve de Kruijff with Ronald McDonald House representatives Paul Rissman, Emma Meeking, Lorraine Colbran, Helen Tarttelin and George Colbran.

Photo: Roslyn Budd

Proudly supporting mining communities Cannington

24

HEALTH IN MINING

March 2012 |

The Mining Advocate

Fitness formula sparks warning Tired miners turning to concoctions featuring strong stimulants are placing themselves at risk of health complications, writes Jan Green.

The inappropriate use of a preworkout supplement, taken to reduce fatigue by some workers at a Bowen Basin coal operation, has drawn a swift response from industry, government and the medical profession.

The coal mine has banned the use of the substance, Jack3d, and the Department of Employment, Economic Development and Innovation promptly issued a safety alert highlighting the potentially harmful effects of such supplements.

The safety alert notes that Jack3d contains caffeine and methylhexaneamine, the latter being listed by the World AntiDoping Agency as a stimulant prohibited in competition.

The supplement is marketed to improve athletic performance and is popular as a pre-workout supplement.

The alert points out that supplements such as Jack3d may: • Increase the heart’s output and can increase blood pressure, • Increase the risk of

dehydration by increasing urine output, at the same time increasing the body’s internal heat load - resulting in a high risk of suffering serious heat illness while working in the heat, • Cause an inability to sleep if taken in excess or late in a shift, • Result in more serious medical problems for those with pre-existing conditions such as high blood pressure or a heart condition (particular care is needed if stimulant “soft drinks” are also consumed), and • Not disclose the amounts of caffeine and methylhexaneamine in the recommended dose, therefore caution must be exercised if using these products.

It also recommends that safety

Sync a sound investment Sync, described as the next generation of stereo earmuffs and perfect for the mining industry, has been launched

by Howard Leight.

Honeywell Safety marketing communications manager Lyn Watt said the earmuffs featured an acoustical ear cup design and volume management technology, while delivering proper levels of hearing protection – important in hazardous noise environments.

“Most stereo earmuffs used in industry today provide a moderate level of hearing protection, but often sacrifice the sound quality of the attached MP3 players – a factor which can discourage their use,” she said.

“In contrast, Sync stereo earmuffs optimise new designs and technologies that provide both hearing protection and listening enjoyment.

“The Sync provides hearing protection from

noise-induced hearing loss, as well as audio, allowing wearers to use their own MP3 player, mobile phone or other audio device while wearing it.”

Ms Watt said Sync features included: • Protection from hazardous noise with an SLC80 rating of 31dB Class 5, Sync provides consistent hearing protection and ensures appropriate attenuation in most industrial environments.

• Plug in and go – there are no volume knobs or power switches to co-ordinate or batteries to replace. Ease of use is enhanced by maintaining volume and power control through the MP3 device.

• Personal listening – Sync can be used with an MP3 player, mobile phone and other personal audio devices. Its technologically advanced acoustical bass chamber enhances bass sounds that are typically sacrificed in industrial stereo earmuffs.

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and health management systems at coal mines control risks associated with personal fatigue and the improper use of drugs, and that appropriate fitness provisions to prevent fatigue be enforced.

These were identified as: • Working no more than the mandated maximum number of hours for a shift, • Resting for the appropriate number and length of breaks in a shift, • Not exceeding the maximum number of hours to be worked in a week or roster cycle, and • Consulting a doctor before taking any supplements.

Queensland University of Technology Professor Tony Parker, who is also a health researcher in the mining industry, said fatigue was a complex topic since both physiological and psychological factors were involved.

“There have been many attempts to identify simple

Photo: Kurhan /shutterstock.com

solutions to control the personal and work-related factors associated with fatigue,” he said.

“The more effective fatigue management procedures are evidence-based, multi-factorial and adopt a proactive approach.

They should also be sensitive to the diversity in the mining workforce with variance considered across age, gender and ethnicity.

“Unfortunately fly in-fly out operations and rostering systems are conducive to fatigue and, in some cases, limited recovery.”

This showed the importance of fatigue management, including recovery while on and off roster, Prof Parker said.

“While it may be tempting to try so-called new solutions such as Jack3d and other well promoted but often nonevidence-based supplements, it is important to determine the potential adverse effects of these solutions by seeking advice from a medical practitioner,” he said.

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EMERGENCY RESPONSE AND RESCUE

The Mining Advocate | March 2012

25

Gas lab for rapid deployment The mobile laboratory is equipped with kitchen/lounge, sleeping and bathroom facilities separate from the monitoring control room; allowing three personnel to operate on site for extended periods.

Mr Hinchliffe said the mobile laboratory would be stationed at the Dysart Mines Rescue Station to be closer to the underground coal mines of the Bowen Basin.

Dysart Mines Rescue Station operations manager Raymond Smith said the laboratory would be operated by Simtars staff in an emergency.

“However, we may assist in taking it to affected coal mines,” he said.

“It’s going to make a big difference because, being selfsufficient, the laboratory can be set up over a bore hole or other entry points in remote locations and the gas analysed on the spot.

“If necessary, it can sit there for weeks on end, but the most important aspects are that it will save valuable time and, potentially, lives.”

A mobile unit developed by Simtars promises ultra-fast sampling and analysis - saving time and, potentially, lives, writes Jan Green.

Queensland’s new $600,000 mobile mine gas laboratory, able to be rapidly deployed in the event of an emergency, has been hailed as the most advanced in the world.

Mines Minister Stirling Hinchliffe said the mobile laboratory was developed by the state’s Safety in Mines Testing and Research Station (Simtars) - recognised internationally as a leader in cutting-edge mine safety technology.

“And this (laboratory) is another world first,” Mr Hinchliffe said.

“Mine disasters such as the Pike River incident in New Zealand show how the presence of dangerous mine gases can hinder rescue or recovery efforts

after an underground mine collapse or explosion.

“Ultra-fast mine gas sampling and analysis can vastly improve decision-making and save lives during a mine emergency.

“It’s important to have the capability to replace a mine’s own gas monitoring system if it is damaged, destroyed or inadequate in an emergency.

“The new $600,000 mobile mine gas laboratory can provide gas monitoring capabilities in a few hours rather than the two weeks it took to complete at Pike River.”

Mr Hinchliffe said the lab was fully automated, self-sufficient for power and communications, and able to operate in remote locations for extended periods.

Testing apparatus inside Queensland’s mobile gas laboratory.

“The laboratory can be accessed remotely via the internet, enabling operation and supervision by personnel off site,” he said.

“A 20-point tube bundle gas monitoring system and ultrafast gas chromatograph make it the best equipped mobile gas analysis lab for mine emergency responses in the world.

“It can carry out continuous automated analysis of carbon monoxide, carbon dioxide

methane and oxygen levels at up to 20 monitoring locations at a mine.

“The ultra-fast gas chromatograph also extends the real time analysis capability to include hydrogen, nitrogen, ethylene, ethane and acetylene.

“This will provide critical information about gas concentrations, ratios and flammability needed for informed decisions about when it is safe to re-enter the mine.”

QAL team fires up for call-out

QAL First Response Team members conduct fire control.

Queensland Alumina Limited’s First Response Team (FRT) doesn’t limit its skills to dealing with emergencies at the company’s alumina refinery.

When the call came through to help control a fire in the local area late last year, QAL’s management team relieved the FRT immediately from on-site duties to assist Gladstone’s Queensland Fire and Rescue Service (QFRS).

FRT members Glenn Butcher, Craig Bebendorf, Steve Haigh and Mick Grey put their skills in fire control and backburning into action, arriving on the scene within two hours of the call from the QFRS. FRT co-ordinator Craig Drew said he was very pleased QAL management acted so quickly to support the local fire fighters.

“All (members of the response team) are fully

trained in fire control and backburning and, equipped with the QAL medium pumper fire appliance, they worked alongside QFRS crews in the Emmadale Gardens area for over five hours,” he said.

“I’m proud that the team could assist the community, but also that the QFRS thinks highly enough of our team’s skills in fire control to ask for its back-up. Our teams have done some training with QFRS firefighters in the past, but being able to work alongside them in a real situation was a great learning experience for the FRT members.”

QAL’s FRT is made up of 45 volunteer employees from throughout the plant who are the first to arrive on the scene of an emergency within QAL boundaries. They are trained in first aid, fire control and rescue.

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26

MINING FAMILIES

March 2012 |

The Mining Advocate

Curb childrens’ goodbye blues There are many good strategies FIFO families can use to overcome the downsides of workrelated absences, a psychologist advises.

It is normal for children to miss their parents from time to time.

It is actually a sign of a healthy relationship, according to Mining Family Matters resident psychologist Angie Willcocks.

Ms Willcocks said while children could become anxious when parents worked away, it was possible to ensure they were not adversely affected by fly infly out (FIFO) or drive in-drive out (DIDO) rosters.

Symptoms of anxiety ranged from mild feelings of discomfort to intense panic, she said.

Behaviours included excessive clinging and shyness, repeatedly waking in the night or appearing to go backwards in development.

Ms Willcocks suggested the following strategies for children missing dad or mum, feeling sad or showing more worrying signs of anxiety: • Allow your child to talk about it. Avoid saying things like “be brave” as they might begin to hide feelings from you.

Then ask: “Can you think of anything that might help you feel a bit better?” Drawing a special picture or playing a game might help. This shows it’s good to chat about feelings, but also to shift sad thoughts.

• Ask: “What upsets you about mummy/daddy going away?” and offer truthful answers instead of vague assurances. For example, if your child is worried about safety, discuss all the equipment that is worn, rather than just saying “I’ll be fine”.

• Always say mum/dad is “go-

ing to work” instead of “going away”. Kids are very literal. Get out a map to explain how far away you work.

• When you’re home, make a special card as a reminder of your bond. Something small is great because it can be carried around.

When it comes to reducing the impacts of mining rosters on teenagers, communication and connection are paramount.

“Contrary to popular belief, most teenagers do want good relationships but often lack the skills to make it happen,” Ms

Angie Willcocks psychologist

Willcocks said. “Be available while you’re away. Leave thoughtful messages, especially if you’re away for big events.

“When you’re home, create multiple opportunities for

conversation by helping with homework or doing the driving.

“Above all, don’t fall into the trap of ‘not knowing’ what is going on with your children, just because you work away.

“Put in some effort and reap the rewards.”

Ms Willcocks provides advice on mining life on the Mining Family Matters website at www.miningfm.com.au

Separated parents – a question of rights As parents, we have a lot of responsibility toward our children.

We have financial commitments, time commitments and moral obligation to raise healthy and whole individuals.

These responsibilities do not however translate into “rights” to our children.

Separated dads who have been unwillingly estranged from their children often tell me they have a “right” to see their kids.

Separated mums often say they have a “right” to sole custody because they’ve always been the primary caregiver.

In today’s enlightened world, it is children not parents - who have rights.

Children’s rights, enshrined in the Family Law Act, include the right to know and be cared for by both parents, and the right to spend time and to communicate regularly with both parents.

One of the stated objects of the Act is to ensure that children have the benefit of both of their parents having a meaningful involvement in their lives, to the maximum extent consistent with the best interests of the child.

These rights reflect current science about children’s developmental needs. Custody is not a term that is even used these days in our courts, as it implies a parent has a right to possess and make decisions for a child to the exclusion of the child’s other parent.

Instead, we speak of “shared parental responsibility” (decision-making) – regardless of where the children live. We speak of children having time with each parent. In some cases, the children’s time may even be divided equally between parents, where the particular children are of an appropriate age and the court considers it to be in their best interests.

A tug-of-war between separated parents standing on their own “rights” is rarely childfocused, and is often more about unresolved issues between the parents – for example, wanting to be free of a former partner’s influence, taking moral high ground over the break-up, or child support concerns.

The law expects a lot from separated parents.

It expects a co-operative and mutually respectful relationship as co-parents, even if we were unable to achieve this as partners.

It expects us to stop banging on about our “rights” in deference to the rights and developmental needs of our children. It expects us to act as grown-ups.

Susan Thomson is a partner in the MacDonnells Law state-wide Family Law team and a Queensland Law Society Accredited Family Law Specialist. Susan is based in the firm’s Cairns office – email: sthomson@macdonnells.com.au

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WET SEASON

The Mining Advocate | March 2012

27

Resource workers rally to aid towns The bulk of the wet season has passed with minor flooding on the Central Highlands, but help has been needed in Queensland’s south-west.

Gas companies have chipped in to assist communities battling flooding in the Roma region.

Santos personnel worked closely with the Maranoa Regional Council to support emergency response and clean-up efforts.

“During the emergency response we provided the use of our new four-wheel drive bus, 4WD vehicles, helicopters and around 60 employees and contractors to help evacuate residents,” a company spokeswoman said.

“In the clean-up efforts, we had a team of up to 60 people on the ground working to help the local community in Roma and Mitchell and made our fire-fighting

vehicles, mobile vacuum unit, portable water pressure cleaners, sucker trucks, bobcat, tipper and various other cleaning equipment available.”

The Santos spokeswoman said no company equipment or facilities had been affected by the flooding experienced in the Maranoa region, although some drilling activity was suspended due to access issues.

An Origin spokesman said the wet season had no impact on that organisation’s operations, leaving personnel free to work with the Maranoa Regional Council in assisting the people of Roma and Mitchell to deal with flooding.

The Central Highlands has so far been spared a repeat of the 2008 and 2010 deluges which took a huge toll on businesses and families in that district.

Central Highlands Regional Council (CHRC) flood recovery co-ordinator Lyle Harman said some rural properties suffered slight inundation and damage in the months up to March, but nothing on the scale of the two previous major events.

Minimal flooding has occurred in the Nogoa and Comet rivers.

“Also, there was some inundation of a few properties in the gemfields area at Rubyvale and Sapphire, but again no major damage was reported,” Mr Harman said.

“But we know we can’t be complacent and so the CHRC has gone to considerable lengths

Santos employees lend a hand after flooding in Roma.

to prepare the community for future flood events. To keep on top of what’s happening, we actively

Downpour downtime Xstrata Copper’s Ernest Henry Mining operations are back to normal after significant rainfall caused downtime in late January.

When 178mm of rain fell in a 24-hour period on January 27-28, EHM temporarily suspended underground and surface operations to ensure the safety of employees.

While most areas were brought back online within 24 hours, flooding caused some damage to critical processing equipment in the concentrator, the company said.

“We took the opportunity to commence a maintenance shutdown in our concentrator on February 1 that had been planned to commence later in the month so we could reduce the amount of downtime in the plant,” general manager Myles Johnston said.

“The shutdown went well and, once all works were completed, we recommenced full concentrator operations on February 6.

“All teams responded well to the rain event, prioritising safety whilst working to minimise downtime, and I’m pleased to say we don’t expect impacts on our 2012 production profile as we plan to make up any shortfall resulting from this event throughout the remainder of the year.”

Central Highlands Regional Council flood recovery co-ordinator Lyle Harman at the Nogoa River, Emerald.

monitor the weather conditions and water catchments throughout the region and we urge everyone in the community to visit our Flood Smart, Flood Ready website.”

The comparatively mild wet season in the Central Highlands meant mining companies had not been called on to take part in clean-up efforts there, according to Mr Harman.

“During the last big 2010/11 flood, all the mining companies in the region got in and helped residents do the initial clean-out of their premises,” Mr Harman said.

“It was a magnificent effort and without their help the clean-up operation would have taken much longer.

“Thankfully, we haven’t had to call on their services at all this wet season but, with the current weather patterns the way they are, we do need to remain vigilant.”

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28

DRILLING AND EXPLORATION

March 2012 |

The Mining Advocate

Sovereign risk status in doubt Government reflected community expectations and would provide clarity and certainty for investment decisions.

Following the introduction of the land access framework in late 2010, explorers operating under the Mineral Resources Act 1989 were allowed time to adjust to the new process, he said.

“The government also commissioned an independent review of the land access framework to ensure it is functioning effectively and does not have any unintended consequences,” Mr Hinchliffe said.

“The panel is due to report to the government soon with its findings and any recommendations to improve the land access framework for both industry and landholders.”

Commenting on the introduction of restricted areas around communities, Mr Hinchliffe said while resource

Government policy moves have raised concerns over the scales being tipped against mineral exploration in Queensland, writes Jan Green.

Where exploration is concerned, Australia, its states and territories, trade on minimal sovereign risk potential, according to McCullough Robertson lawyers partner Dominic McGann.

However, he believes that recent Queensland events cast doubt on this assumption.

Mr McGann said also that for governments to attain a strategic and immediate balance, a range of competing interests must be weighed up.

These included the need for revenue and employment through continued economic growth on the one hand and the need to manage and protect the environment and the impact of change upon communities on the other.

“Only time will tell whether or not the Bligh Government has correctly achieved that balance,” he said. “However, for now, as far as explorers are concerned, four events have undoubtedly affected a tipping of those scales.”

The introduction of a new land access framework meant explorers no longer had a right to obtain access on the understanding they would conduct themselves in a fair and reasonable manner, he said.

“Now, explorers must first negotiate conduct and compensation agreements before starting exploration,” Mr McGann said.

“In the abstract this seems appropriate, but the change has been significant and affected all explorers, irrespective of their activities to date. Also, there is no doubt that the pace of exploration has slowed as a consequence primarily through the intervention of advisers whose fees are often

greater than any compensation otherwise payable by explorers to landholders.”

Mr McGann identified the introduction of restricted areas around communities as the second issue.

“The process by which a judgment is made about competing benefits and effects on communities, that is the impact assessment process, had not previously come in for criticism,” he said. “So RA 384 seemed to be more about political change as opposed to fixing something that was broken.”

Thirdly, he said the implementation of the Wild Rivers regime would put large areas of Queensland into an exploration and project moratorium.

“Fourth and finally, the existing mantra of ‘use it or lose it’ continues unabashed,” Mr McGann said.

“This policy has, as its purpose, the legitimate intention of ensuring that explorers do not ‘sit on’ valuable tenements.

“Importantly, however, if an exploration permit isn’t used for any of the previously mentioned reasons, the permit holder must justify why it should not be forfeited.

“In short, the sidelines have been narrowed mid-game but the referee continues to apply the same rules when greater flexibility to accommodate the changes brought about seems obviously necessary.

“As noted, time will tell whether the new order is the correct one.

But that said, experience to date suggests that refinement on all four issues is essential and before it is too late.”

Dominic McGann McCullough Robertson lawyers partner

Mines Minister Stirling Hinchliffe said the policies and legislative measures being implemented by the Queensland

related activities would be prohibited in Urban Restricted Areas (URA), any resource company not happy with the local government decision could refer the matter to the Land Court.

He said the government recognised that Wild River declarations would impact some mining and petroleum projects.

“However, a Wild River declaration does not seek to prevent mining activity, but may vary some environmental requirements depending on the footprint of the development and the natural sensitivity of the area in which the project is located,” Mr Hinchliffe said.

Regarding the requirement to relinquish tenures under certain circumstances, he said there was opportunity for companies to make submissions if there were legitimate reasons that impacted on delivering individual work programs.

Just the thing for testing times A new drilling test rig capable of testing motors “With the new Froude Hofmann dynamometer prior to final assembly as well as complete mobile system, sub-assemblies can be full load tested prior drilling rigs is, as far as its designers are aware, the to final assembly, which improves the build process. first of its kind for the mining “Load testing and data industry. acquisition can be carried out Froude Hofmann and its on the complete rig, collecting subsidiary Go Power Systems, information such as bearing which specialises in engine temperature, oil pressures testing systems, developed the and load charts which the rig for Boart Longyear. test system can provide in Froude Hofmann chairman an automated and repeatable John Harris said the system manner.” allowed customer rigs to be A Boart Longyear carefully load tested in the spokesperson said the system refurbishment process. was also used in the new “Given the remote locations product development process to in which rigs operate, the ability thoroughly test prototype rigs to load test at the shop greatly before sending them to field reduces the risk of unwanted test. “This capability is part of The new Froude Hofmann drill load downtime when the rigs return our accelerated new product testing dynamometer being installed to service,” he said. development process,” he said. at Boart Longyear, Adelaide.

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MATERIALS HANDLING

The Mining Advocate | March 2012

29

Left - a graphic representation of a mining bench.

Truckless mining cost equations Recent research has examined the dollars and cents involved in different bulk material movement systems, writes Jan Green.

Truckless mining options using equipment such as mobile mining machines and conveyors - may prove considerably cheaper over life of mine than traditional methods, despite being typically more capital intensive, Sinclair Knight Merz (SKM) research shows.

However, SKM integrated mining systems manager David Morrison stressed the

importance of components of the truckless system being carefully selected to suit the specific ore body.

Mr Morrison co-authored the research paper “Economic assessment of truckless mining prospect” with SKM colleagues Ivy Lourel and Joanne Gardiner.

They found that as capital costs could be offset by reduced operating costs and

Stockyard works awarded John Holland has won a $220 million contract to build stage 1 stockyard works for the Wiggins Island Coal Export Terminal (WICET) at Golding Point, Gladstone.

Construction installation works will begin late in 2012, with completion expected in early 2014.

John Holland Group managing director Glenn Palin said the WICET contract built on his organisation’s extensive experience and specialist skills in the development of largescale materials handling infrastructure.

The WICET project is owned and being developed by existing and potential coal exporters in Queensland to provide increased long-term coal export capacity.

Stage 1 of the WICET has a contracted annual coal export capacity of 27 million tonnes.

When fully developed, the terminal is expected to provide more than 80 million tonnes per annum of additional coal export capacity through the Port of Gladstone.

A spreader working on a waste dump.

total throughput, depending on the mine life and layout, a truckless mining option may be considerably cheaper over the life of a mine than haul truck operations.

A truckless system was inherently less flexible than a trucking operation - even though the conveyors and transfer stations may all be made fully relocatable, Mr Morrison said.

It would still carry significant re-deployment costs and downtime when attempting to replicate trucking operations, such as adapting to changes in the mine plan and dump placement, he said.

These costs could be considerable and could quickly erode any operating cost benefit.

“For that reason, no two truckless systems are the same: the mining equipment, crusher/ sizer, conveyers and spreaders all need to be carefully selected to suit the specific ore body,” Mr Morrison said.

Mr Morrison said any economic assessment

needed to reflect the project implementation and planning aspects that specifically related to the entire life cycle of a truckless project.

These include: • Lead time of major equipment and whether the planned production schedule can be safely met, • Greenhouse gas emission and environmental costs, • Electrical infrastructure availability and price of electrical power, • Availability of skilled resource and operational training, • Contract and project strategies, • Site and construction supervision required.

“At the three stages of project assessment - deciding whether to go truckless, then checking the engineering feasibility and selecting potential equipment, and finally developing the chosen option - an economic model of the capital and operating expenditure must be

developed, incorporating all of the available engineering details,” Mr Morrison said.

“Finally, it must be based on the labour, maintenance materials and energy requirements so the sensitivity of the economic return can be understood.

“Major operating expenditures also need to be recognised and included; those associated with non-routine events such as plant shutdowns, moving the equipment to a different horizon or different pit, dump site relocation and, lastly, system reconfigurations and rebuilds.

“The details that go into the life of mine cost estimates are fundamentally dependent on the level of engineering expended in understanding these influences, and require considerable input from the owner on the contracting methodologies and the level of off-site support intended to be engaged.

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SHUTDOWNS

March 2012 |

The Mining Advocate

Smooth running for mill overhaul More than 250 contractors joined the team at MMG Century Mine during a recent week-long maintenance outage, writes Jan Green.

Australia’s largest zinc mine held one of the biggest shutdowns in the operation’s history in late January.

At the peak of the 150-hour shutdown, more than 250 contractors were on site to assist in conducting maintenance work on the processing plant at MMG Century’s Lawn Hill site.

The expertise and support of more than 15 contracting companies were called upon during the shutdown.

New MMG Century general manager Mark Adams said more

than 17,000 work hours were scheduled into the six-and-ahalf-day shutdown.

“Our team, supported by specialist contracting companies, safely completed a number of complex, critical jobs as well as other maintenance jobs during the shutdown,” he said.

This was based around the major reline of Century’s SAG (semi-autogenous grinding) mill, while other major critical tasks included the refurbishment of float cells and significant maintenance of the SAG mill

motor transformer. More than 850 other maintenance tasks were also carried out.

Mr Adams said that effective co-ordination was the key to the successful January shutdown.

“The key to a successful shutdown at any operation is being able to effectively co-ordinate tasks, teams and resources to safely do what you need to do during the time available,” he said.

“This was my first shutdown as general manager of Century and I was impressed by the way our teams stayed focused and worked together.

“While our maintenance teams did a fantastic job, it’s important to remember the hard

The concentrator structure at MMG Century in the lower Gulf region.

work of the many personnel who support our operations.

“For example, our village support services provider ESS cooked up more than 15,000 meals and serviced about 750 rooms during the shutdown period.”

Shutdown activities were completed at Century’s dewatering and shipping facility at Karumba on the Gulf of Carpentaria in February.

The next shutdown at MMG Century Mine is scheduled for the middle of the year.

Wulguru team on tap for tidy turnarounds Even short shutdowns can cost mining companies millions of dollars, so efficient shutdown teams are highly valued in the resources industry.

In most cases, shutdown teams are individually recruited through labour hire organisations.

However, Wulguru Steel Group maintains a team to take on a wide variety of jobs at any time.

“Our team covers the full shutdown spectrum and includes boilermakers, fitters, riggers, crane drivers and welders as well as design, engineering, fabrication and surface protection capabilities,” Wulguru Steel project manager Richard Toigo said.

“So, when we are notified of a job, we

determine what’s needed then assign the appropriate resources.

“We can control all aspects of a shutdown, which provides our clients with peace of mind and ease of project control.”

Wulguru Steel has three Queensland workshops with a combined workforce of more than 100.

“When not working on shutdowns, our men are employed in our workshops in Townsville, Charters Towers and Brisbane,” Mr Toigo said.

“So we have a guaranteed source of experienced workers we and the mining industry can rely on all the time.”

The bulk of Wulguru Steel Group’s shutdown work is done in the North

Queensland/Mount Isa area, where the company has worked for most of the major mining companies.

“When we are approached by our clients, the first thing we do is assess the type of job and the labour and skills required. We then appoint a project leader and team most suited to the particular job,” Mr Toigo said.

“With a lot of shutdown jobs there may be several work fronts at any one time. The team would then be broken up into different areas so a number of people look after different aspects of the task.

“Generally, however, the configuration of one or more of the groups is mainly of riggers, scaffolders,

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boilermakers, fitters and welders and a leader/supervisor.”

Mr Toigo said Wulguru Steel Group did mainly mechanical work that involved jobs such as removing and replacing chutes, relining chutes, structural installation and piping.

The group has a specialised team of fabricators and coded pipe welders who undertake jobs on pipes ranging from 25mm to 1m in diameter.

“Depending on the mine and the harshness of the product pushing through, the piping can last from just a few months up to a couple of years,” Mr Toigo said.

SHUT DOWNS?

LIVING REMOTELY

The Mining Advocate | March 2012

31

Boost for Hutchinson Builders A Toowoomba-based modular production facility is among the winners as major gas players tee up accommodation packages.

Australia Pacific LNG has awarded Hutchinson Builders a $51.7 million contract to supply and install 700 modular accommodation units and support buildings at the Condabri and Reedy Creek gas fields near Miles and at Wallumbilla east of Roma.

They will include mess halls, administration buildings, kitchens, laundry and other facilities to accommodate the needs of the personnel expected to reside there during the construction phase of the project.

Hutchinson Builders Toowoomba area manager Robert Weymouth said his organisation had extensive experience in delivering

prefabricated accommodation facilities for major infrastructure projects of this scale to remote areas.

As a result of the contract, the company has created 120 new local jobs and recently expanded its Toowoomba modular production facility.

“We will deliver the complete building package for the project including civil site works, reverse osmosis water treatment plants, a sewage treatment plant and generator sets for power, and will install the modular accommodation on site,” Mr Weymouth said.

Bechtel has appointed Leighton Contractors to construct the $84 million

Hutchinson Builders has expanded its Toowoomba modular production complex. Photo: LucyRC Photography

temporary accommodation village on Curtis Island, Gladstone, for the Australian Pacific LNG project.

Leighton Contractors said a project team had commenced mobilisation to start construction on the greenfield site, which will

house a fully-equipped 2600-bed village as well as landscaping and leisure facilities.

Leighton Contractors will also construct roads, services and other infrastructure to support the facility. The project is due for completion in 2013.

Meanwhile, QGC has awarded a $45 million management and maintenance contract to Spotless Group for two construction worker villages 40km west of Dalby and 30km south-west of Wandoan in the Surat Basin.

The villages are expected to support 1650 people working on the Queensland Curtis LNG project and employ 140 Spotless staff at full capacity.

Spotless Group managing director and chief executive Josef Farnik said the company would seek local food supplies and labour where possible.

The contract starts in April and runs until the end of 2014.

Precast offers streamlined housing solutions Innovative precast dwellings have been put forward as one solution to the chronic housing shortage and lack of qualified tradespeople in remote mining areas.

Murtro Precast’s quick-toerect systems are custom-made to individual requirements and eliminate the need for several key trades that can bottleneck house building.

“Using our precast sections, house foundations can be set up with minimal effort and the panels erected usually in one day, leaving internal areas pre-formed for plumbers and concreters,” Murtro business development spokesperson George Fitos said.

“The specialist trailer delivery

systems also limit crane use and contribute to a significant reduction in risk during lifting and erecting.

“Once the main slab is poured, no stripping or remediation work is usually needed as all external walls act as form work. Works can move right into achieving lock-up, which is the ultimate goal in tropical areas where weather delays can contribute to a 30 per cent downtime.

“Specialised roof truss connectors make placing the trusses a breeze and fully flexible for positioning. From here roofers can usually start roofing within a day, thus reducing another major time factor.”

Mr Fitos said windows and

door frames were fitted into pre-made openings during the roofing stages.

“At this stage, lock-up is usually achieved and the internal fit-out can begin,” he said.

“With careful planning, all services can be run in special rebates cast into the precast walls, a factor which limits the need for excess materials and wastage during this costly and time-consuming task.”

Precast houses can be stored at the factory without the need for weather protection for as long as required – overcoming timing and supply problems.

“With production ramping up and housing shortages rising in remote mining and coastal areas,

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precast lends itself to planned and programmed construction, usually only applied to larger commercial projects - if approached correctly,” Mr Fitos said. “Using mass production and flow techniques, multiple housing developments

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The Mining Advocate | March 2012

33

Source of satisfaction for Pyes The appeal of the north-west Queensland lifestyle has drawn this young family back from the south, writes Jan Green.

Karen and Sam Pye returned to Mount Isa for the second time two years ago and both are firmly convinced it’s the only place to live.

Mr Pye originally comes from Inverell in New South Wales and Mrs Pye from Phillip Island, Victoria.

The couple met in Mount Isa in 1999 and were married there in 2003 before moving to Inverell, where they had their children Seth, 7, Max , 6, Violet, 4, and Jasmine, 3.

They returned to Mount Isa in 2008 when Mr Pye, a diesel fitter, was offered a maintenance contract with a local company.

“I love the fact that if you want to get somewhere in life, set yourself up for life and are prepared to work hard, Mount Isa is the place to do it,” Mr Pye said.

The couple bought their first

house not long after they met and, such is their belief in the town, they’ve subsequently invested in other property.

“We’ve always loved living in Isa and are really pleased to be back again,” Mr Pye said.

“We were fortunate because, through the acquaintances we made when we lived here previously, we were given the opportunity to come back and surge ahead.

“We also like the fact there are so many other young families in the same boat as us in Mount Isa. “Karen and I have a great social life and so do the kids.

Our friends have lots of children and so ours are always going to birthday parties on the weekends.

“We hardly ever see them,” he joked.

Mrs Pye shares her husband’s sentiments.

The Pye family - Sam, Violet, Max, Karen, Jasmine and Seth - love living in Mount Isa.

“Mount Isa is a lovely place to live. The children are very happy and settled in a good school and we have lots of friends and a great social life,” she said.

“I also work - only three days a week - just during school hours, so that works out really well.”

Because the Pye family is so happy with their situation and what they are confident is a promising future, they have no intention of moving from Mount Isa anytime soon.

“The education and career opportunities for the children

Photo: Roslyn Budd

down the track are excellent and the town itself is a great place to work and live in,” Mrs Pye said.

“We like the relaxed, friendly, informal aspects of Mount Isa and the fact it takes only a short time to get anywhere in the town.”

Isa opportunity knocks

Monica Joseph Engineer and Xstrata graduate program participant

A mining career was the last thing first-class honours graduate Monica Joseph considered prior to embarking on her university course in engineering.

However, the Xstrata MICO infrastructure electrical communications engineer enjoys an interesting job which allows her to play a role in the development of Xstrata and the Mount Isa region.

A semester prac - which involved research in the mining industry - alerted her to the job and travel opportunities as well as the variety of roles available.

On completing her first degree, Ms Joseph successfully applied for admittance to the

Xstrata graduate program, which she worked on for two years.

“I’m now in my fifth year with the organisation and recently completed my masters of engineering management,” she said. “I also have a bachelor in microelectronic engineering, majoring in communications.”

She thrives on the day-to-day challenges her job brings and identified breakdowns as some of the most interesting.

“Working out what the cause is and coming up with a solution as quickly as possible is critical so there’s a great sense of satisfaction when that’s achieved,” she said.

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HEAVY MACHINERY REVIEW

March 2012 |

The Mining Advocate

Vermeer takes it to a new level With features such as a more efficient drum drive system, it is time to meet the T1255’s big brother, writes Jan Green.

The Vermeer T1255 terrain leveller, well established in Australia and overseas, is dwarfed by its successor - the T1655 - which has recently gone into production.

However, Vermeer sales and service national manager for mining Craig Batten stressed the T1655 wasn’t just a scaled up T1255.

It had a more efficient drum drive system, integral dust extraction system and the cab comfort was excellent, he said.

While most of the terrain leveller fleet worked in iron ore leases, the equipment offered viable solutions to problems outside seam mining, Mr Batten said.

Both machines are capable of operations such as drill preparation, haul road maintenance and the excavation of coal seam intrusions.

With some drilling preparation, material is transported to the drill site and levelled to provide a built-up pad for the rig to work from.

However, with their tilting drums, the T1255 and T1655 Vermeer terrain levellers can excavate a pad in hard rock, with the milled material being a suitable size for use on haul and access roads.

Haul road maintenance and tyre pressure monitoring are key means of controlling tyre costs.

While the T1255 can’t assist

in tyre pressure monitoring, it can mill haul roads to produce an even, textured surface.

The milled material is of a compactable size, suitable for road surface usage.

Ensuring an even depth for even compaction avoids the creation of weak spots, which can ultimately pothole.

Frequently, in established mine pits, the best seams have been mined with the remaining coal in thin or steeply dipping seams, or seams with problem areas such as rock intrusions.

In the past these have often been difficult to mine using conventional methods so coal has been left in the ground.

But as the T1255 has the ability to vary the depth of cut and side tilt of the drum, it’s comparatively straightforward to mine the coal - even in problem areas - while minimising contamination with other material.

Because milled material is left on the ground where it was cut, foreign material is not dispersed through the coal.

Consequently, it can generally be identified by colour and selectively removed by wheel loader or excavator.

This also minimises problems for the wash plant.

Mr Batten said the T1255 could also assist start-up mines to avoid “cash burn” prior to generating income by assisting in developing site access roads, hard pad stands, drill pads, the

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The Vermeer T1655 terrain leveller in action.

pit and associated haul roads.

“This is in addition to its capabilities as the primary

excavation machine,” he said.

“So even though production of the T1655 is being stepped

up, its little brother the T1255 does - and will continue to do - an excellent job.”

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The Mining Advocate | March 2012

Fleets of the future hit our pits Manufacturer Komatsu and resources giant Rio Tinto discuss the technologies said to be revolutionising large-scale mining operations.

Autonomous haulage systems (AHS), also known as driverless trucks, are being hailed as the way of the future for the mining industry.

Manufacturer Komatsu Limited and mining giant Rio Tinto say the trucks, described as next-generation technologies, will reduce costs and increase efficiency as well as improving

health, safety and environmental performance.

Rio Tinto owns the world’s largest fleet of the vehicles after signing a deal to buy at least 150 from Komatsu over the next four years. The new trucks are arriving from this year for use in Rio Tinto’s Pilbara iron ore mines.

They can be controlled from the company’s Perth operations

Driverless trucks – the next-generation technologies being harnessed by the mining industry.

Photo: Christian Sprogoe

centre more than 1500km away, which integrates and manages the logistics of 14 mines, three ports and two railways.

“Implementing autonomous haulage on this scale means more material can be moved more quickly and safely, creating a direct increase in productivity,” Rio Tinto chief executive Tom Albanese said.

“These technologies are revolutionising the way largescale mining is done, creating attractive hi-tech jobs, and helping us to improve safety and

environmental performance and reduce carbon emissions.”

Komatsu Australian managing director Sean Taylor described the organisation’s AHS as a comprehensive fleet management system for mines.

“The dump trucks, equipped with vehicle controllers, a highprecision global positioning system (GPS), an obstacle detection system and a wireless network system, are operated and controlled via a supervisory computer, enabling them to be unmanned,” Mr Taylor said.

35

“Information on target course and speed is sent wirelessly from the supervisory computer to the driverless dump trucks while the GPS is used to ascertain their position.

“When loading, the dump trucks are automatically guided to the loading spot after computing the position of the bucket of the GPS-fitted hydraulic excavator or wheel loader.

“The supervisory computer also sends information on a specific course to the dumping spot.

“From a safety perspective, the fleet control system prevents collisions with other dump trucks, service vehicles or other equipment at the mining site.”

Mr Taylor said the vehicles would reduce speed or stop immediately if an obstacle detection system detected another vehicle or person inside the hauling course under AHS operation, making the system extremely safe and reliable.

By optimising operations, the system also contributed to reducing maintenance costs, conserving energy and curbing CO2 emissions, he said.

EcoPlough promises economic trenching

The EcoPlough is more efficient than conventional open-excavation trenching, its manufacturers say.

The innovative EcoPlough is suitable for a wide variety of applications in industries including mining.

It uses a specially designed vibratory plough blade, pulled through the ground

at a pre-set depth of up to 2m.

The system - developed in-house by Underground Services Australia - can install power, gas, telecommunications, water and wastewater pipes, and

cables up to 315mm in diameter.

Multiple combinations of power and communications cabling can be installed simultaneously in single runs.

Welding of pipes is carried out in front of the unit with the jointing of cables - fed from the cable drives - performed behind the plough.

An automatic, patented sanding hopper attached to the plough blade delivers clean sand 150-200mm below, 100mm above and 75mm to the side of cables or conduit.

Danger tape is automatically placed at the top of the corridor in the same pass.

An on-board GPS linked to two base stations – providing a range up to 10km - also displays the alignment and maps the depth and positioning of the pipes or cables being installed.

Underground Services Australia

business improvement manager Goran Utjesinovic said the EcoPlough was 40 per cent more efficient than conventional open excavation trenching and backfilling, making it more economical.

It allowed an installation rate of up to 1000m per hour for production rates of 10km per day, helping to significantly reduce construction periods, he said.

The trenchless system and its maximum 4m track width also provides for reduced environmental impact, with only minimal clearing or topsoil disturbance required.

Mr Utjesinovic said worksite safety was improved as well, with fewer workers and on-site tasks required.

Sites were pre-conditioned prior to ploughing, with solid rock ripped with a D10 dozer, he said.

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36

NEWS

March 2012 |

The Mining Advocate

Starring role behind the seams Caterpillar has produced a coal mining system with features including an average output of 27-36 tonnes per man-hour, writes Jan Green.

The Cat HW300 highwall mining system is a self-propelled machine that extracts coal from outcropping seams by driving an unmanned continuous miner underground.

The machine stands on the pit floor or on benches as narrow as 18m directly in front of the exposed seam. It makes long parallel rectangular drives into the coal seam.

A remotely operated cutter module is pushed into the seam by a string of push beams that transport the mined coal back to the entry of the drive to a conveyor system to discharge coal to stockpiles.

The system can produce 40,000-110,000 tonnes of coal

per month, depending on seam height, and averages 27 to 36 tonnes per man-hour.

It is controlled by an operator from an airconditioned cab that offers a full view of the mining operation and the highwall.

A full-suspension operator seat and two user-friendly touch-screens provide an ergonomic workplace with all controls and system information at the operator’s fingertips.

The cutting cycle is highly automated, yet allows the operator to manually make adjustments as the coal seam varies.

For accurate guidance in a vertical direction, an optional gamma ray detection system is

The self-propelled continuous miner from Caterpillar can produce up to 110,000 tonnes of coal per month.

available. For making straight, parallel drives, an accurate fibreoptic, gyro-based navigation and steering system provides automatic cutter head steering and cutter module location data.

Caterpillar offers two electric cutter modules: a low-seam

cutter for seams about 0.8–1.5m in height and a high-seam cutter module for 1.2–3m seams.

The power head drives the cutter module and push beam string forward using two hydraulically-powered sump cylinders with a 6.85m stroke.

A pushing force of 136 tonnes propels the cutter module to depths of more than 300m. A pulling force of 270 tonnes is available to retract.

Push beams are 6.1m long steel box structures joined together to a string. This string is the backbone of the machine, pushing and pulling the cutter module in and out of the highwall.

It uses screw conveyors inside the beams to transport the mined coal. These screw conveyors are mechanically connected between each beam and driven by two 300kW electric motors on the power head.

The Cat HW300 highwall mining system trams easily from entry to entry and four heavyduty, hydraulically-powered tracks can rotate the machine 360 degrees.

Underground movement with plenty of might Sandvik Mining’s LH517 offers improved safety and higher productivity than previous models through its use of redesigned hydraulic and

electronic systems, according to company sales manager Tim Redmond.

This LHD (load-hauldump) is a high capacity

new-generation underground machine capable of automated remote control.

Powered by a Volvo TAD 1361VE engine rated at 285kW, it has a tramming capacity of 17.2 tonnes.

The LH517 can handle bucket sizes from 6.5-8.6 cubic metres, with a unique design that allows a full bucket to be loaded in a single pass, while still achieving high bucket-fill factors.

“Its compact size – it measures 11.12m long by 3m wide by 2.75m high – allows it to work in confined spaces, while its low operating weight of 44 tonnes unladen results in a high power-to-weight ratio, as

These compact underground machines can work in small spaces.

well as increased tyre life and reduced fuel consumption,” Mr Redmond said.

“Other features include a strengthened operator’s cabin with efficient airconditioning, fully adjustable seat and controls, and a single all-in-one digital display which interfaces with the Sandvik on-board vehicle control and management system.

“Servicing and maintenance is made easier and safer through ground level daily service points, three-point mounting and fallprotection systems. A built-in fire suppression system reduces the risk of fire, protecting the operator and surrounding workers.”

Mr Redmond said the LH517 was fully compatible with Sandvik’s AutoMine automated loading and hauling system for underground hard rock mining.

During 2011, Sandvik Mining was awarded a contract for the supply of 14 LH517s to Newcrest Mining’s Cadia East mine near Orange in NSW. The units are being supplied with AutoMine capability, as has been deployed at Newcrest’s Ridgeway Deeps project (also near Orange).

Mr Redmond said other LH517 users in Australia included Australian Contract Mining, Perilya, Byrnecut Australia and Barrick Gold.

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