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THIS EDITION • Crunch time close on crash avoidance systems • Industry feels squeeze on tyres, parts, vehicles • Moody miners and the FIFO emotional roller-coaster • Bad vibrations – an occupational hazard for operators
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NEWS
The Mining Advocate | May 2011
1
COVER IMAGE: Work nears completion on the new Isaac Plains dragline. Photo: Erica Smith Story - Page 7
May 2011
3 Crunch time close
FEATURES 8 CQ Mining – Coalfields Special
Queensland’s Mine Safety and Health Commissioner Stewart Bell wants to see collision avoidance and proximity detection systems become mandatory across the state’s mines from next year. Transferable devices or
10 Coal and Gas Update News in brief across the coal and gas industries.
pool vehicles are among the options expected to help cover contractors visiting those workplaces.
11 Industry Update - Hard Rock
5 Short supply
A comprehensive wrap of exploration and operations in Queensland and the Northern Territory.
A shortfall in global rubber supply is pushing up tyre prices, while major manufacturers struggle to meet demand from the mining sector, industry insiders say. Meanwhile the tsunami disaster in Japan has heightened difficulties in filling the booming resource industry’s vehicle needs.
12 Between Shifts 15 Major Projects 16 Exploration and Drilling
7 Chronicle of change
17 Maintenance
Retired mining engineer Don Henderson’s newly published history of the Curragh coal mine, near Blackwater,
18 Processing
provides insight into the evolution of the industry over the last three decades.
19 Advance Cairns
17 Keep on rollin’
22 Living Remotely
Bridgestone Earthmover Tyres senior manager - engineering services Paul Comninos offers some tips for
23 Safety and Rescue
extending tyre life in light of global shortages in the heavy vehicle ranges.
24 Shutdowns
25 Bad vibrations
25 Health in Mining
Ergonomist Trudy Tilbury from the Department of Employment, Economic Development and Innovation highlights the hazards of whole body vibration and a new push to tackle the issue across Queensland mine sites.
26 Building Mining Communities 27 Building NW Queensland
CONTACTS p. (07) 4755 0336 f. (07) 4755 0338
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Managing editor:
Address: ......................................... U3/11 Carlton St, Kirwan, Q, 4817
Journalist: ......................... Belinda Humphries m. 0439 726 074
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Sales: ................................................p. (07) 4755 0336 m. 0417 623 156
......................... Robert
Dark m. 0417 623 156
Advertising booking deadline July edition: June 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.
Geologists. Have you got the balance right? At Cliffs, we understand that reward takes on many forms. For a Geologist, we offer the chance to be part of a small, dynamic team with exposure to a wide range of exploration tasks, interesting ore deposits supported by leading edge systems and product quality management, as well as personal growth and development opportunities via our extensive leadership courses and professional development programs. Combined with attractive remuneration and benefits including 15% superannuation and generous annual bonus scheme, a 9 days on/5 days off FIFO roster, flying within company time instead of your own, and ten hour shifts instead of the more common twelve all adds up to the perfect balance – one that is hard to find anywhere else. We are currently seeking Senior Mine Geologists, Mine Geologists, Project Exploration Geologists and Exploration Geologists with Cliffs Asia Pacific at our Koolyanobbing Project located in the heart of the Goldfields in WA.
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2
NEWS
May 2011 |
The Mining Advocate
Xstrata Copper shows its hand Refining and copper smelting operations will be phased out in the North, with an increased focus on mining and concentrate production. A major open-cut mine in the heart of Mount Isa with a potential life span of 40 to 50 years is among the options Xstrata is investigating as its North Queensland operations take a new direction. Xstrata Mount Isa Mines will phase out copper smelting at Mount Isa and refining operations in Townsville by the end of 2016. The company plans to focus on expanded mining and concentrate production to sustain its Mount Isa operations. A decision is expected within months on whether to progress to prefeasibility study for the major Mount Isa Open Pit (MIOP) project, which is in concept phase. An Xstrata Copper spokesman said proposals for the Black Rock open-cut copper mine and Black Star South zinc-lead expansion project in Mount Isa were further advanced, with approvals very close. The larger MIOP project would take in both those areas. Xstrata is already investing $463 million to expand its Mount Isa zinc-lead mining operations. It is also spending $589 million to transform its Ernest Henry Mining operation outside Cloncurry and aims to start mining next year at Exco Resources’ Cloncurry Copper Project nearby. (Story - Page 15) Xstrata Copper North Queensland chief operating officer Steve de Kruijff said the plan to phase out the copper smelting
and refining operations in North Queensland had not been adopted lightly, but was a necessary response to changing global market conditions. “Our operational plan over the next five years will see significant investment in North Queensland to focus on exporting mineral concentrates, along with the development of the necessary infrastructure to increase rail and port capacity,” he said. Mr de Kruijff stressed Xstrata’s commitment to its workforce. “Our main priority is to ensure employees remain with the business and we will be working closely with our workforce to deliver retraining and retention packages to support our operations well into the future,” he said. The State Government has
announced plans for a taskforce to assist workers during the transition period. Mount Isa copper smelter operations employ 250 people and the Townsville refinery 170. Mount Isa to Townsville Economic Zone (MITEZ) chairman David Glasson said it was sad to see the valueadding aspect of the business move offshore, especially as North Queensland had been the birthplace of leading refining and smelting technologies. However he believed the expanded concentrate production would bring beneficial investments. Mount Isa Chamber of Commerce president Brett Peterson believed the area could absorb the closure in 2016 and move forward. “Companies like Legend, MMG - with Dugald River - and Ivanhoe Australia are either looking positive or coming online and it means we are moving from a copper town to a diversified mining town,” he said.
The new train operating between Xstrata’s Ernest Henry Mine outside Cloncurry and the Port of Townsville.
Size matters when it comes to major haulage project Bulk minerals trains 1km long will soon be leaving north-west Queensland five or six times a week carrying magnetite concentrate from the Ernest Henry Mining operation to port. Queensland Rail and Pacific National settled a 10-year access agreement to transport the concentrate from Cloncurry to the Port of Townsville, with the service beginning at the end of April. A Pacific National spokeswoman said one train dedicated to the magnetite
Concerns over local processing future Xstrata’s move to close copper processing plants in Townsville and Mount Isa by 2016 was a blow for the region’s economy, Townsville Mayor Les Tyrell said. Cr Tyrell said the wider worry was the outlook for minerals processing generally. “Townsville has a major stake in refining, with the (Queensland Nickel) refinery at Yabulu and Sun Metals zinc refinery - which between them employ around 1500 people - and our economic future depends heavily upon governments ensuring minerals processing remains viable in this country,” he said.
Queensland Resources Council chief executive Michael Roche described the planned Xstrata plant closures as a timely warning of the fragility of the Australian resource sector’s global competitiveness. He feared they were a foretaste of what would follow if the Federal Parliament imposed an uncompetitive carbon price regime on trade-exposed resource sector industries. Queensland Nickel owner Clive Palmer in April circulated a letter to employees warning that Labor’s proposal was likely to add an additional tax burden of more than $25 million annually for the Yabulu operation.
haulage was fully operational now, making two or three return trips a week, and a second train would come online in July/August. Queensland Transport Minister Annastacia Palaszczuk said the multimillion-dollar agreement paved the way for increased efficiency and business growth on the Mount Isa-Townsville line. “The magnetite will be moved by longer, more efficient trains, increasing tonnage capacity on the Mount Isa line,” she said. Legend International Holdings also expects to use the longer trains when it begins hauling 600,000 to 1.2 million tonnes per annum of fertiliser product from Mount Isa under the proposed Paradise Phosphate Project. Queensland Rail invested about $1 million to upgrade Partington Yard in Stuart to accommodate the longer trains. This came on top of a $100 million program completed in December to improve the reliability of the 1030km long Mount Isa line. Xstrata Copper will produce about 1.2 million tonnes of magnetite concentrate per annum for export when the new Ernest Henry plant reaches full capacity.
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NEWS
The Mining Advocate | May 2011
3
Crunch near on safety systems Technological advances and good feedback from operators have strengthened the case for new crash prevention requirements. Collision avoidance and proximity detection systems will be mandatory in Queensland mines by the end of 2012 if Mine Safety and Health Commissioner Stewart Bell has his way. Mr Bell said he would be most disappointed if circumstances prevented the changes being rolled out within that timeframe “We’d certainly be looking to mandate before the end of 2012, with a window of opportunity after that to give people time to acquire the technology,” he said. Senior mines inspectorate staff recently compiled a paper on the level of industry take-up of the technology and Mr Bell aims to meet with major mining companies on the issue in June. Technological limitations are among the potential stumbling blocks for the statewide roll-out. Mr Bell said no system had yet been approved for operation in an underground coal environment, although technology was being assessed by TestSafe in New South Wales. “They keep telling us it will be
approved this year some time,” he said. Mr Bell has flagged the potential for a staged introduction of mandatory requirements for proximity detection and collision avoidance systems in Queensland if such approval is further delayed. Mr Bell has also visited quarry sites with Institute of Quarrying Australia representatives to investigate any special circumstances which may apply to those operations. He estimated that 60 to 70 per cent of mining operations throughout Queensland were already trialling or operating collision avoidance and proximity detection systems. The mandatory requirement for use of such systems on Queensland mine sites would necessarily include light vehicles belonging to contractors visiting those operations, Mr Bell said. Internal operations manager for the Haynes Group of Companies, Laurie Willett, said while the use of collision avoidance technology meant some additional expense, that company
placed safety above anything else. Two Haynes Mechanical vehicles had permanently fitted systems and the company frequently used removable devices – often on hire - which could be installed as required, he said This was a cost-effective option which helped the company
meet the requirements for different mine sites and different technologies. BHP Billiton Mitsubishi Alliance (BMA) and BHP Billiton Mitsui Coal (BMC) started rolling out collision avoidance systems across all mines sites in 2009 and expect to
‘Plug and play’ solutions System compatibility will be an issue for contractors and suppliers visiting mine sites employing collision awareness and proximity detection technology, according to iVolve sales manager Cliff Rogers. iVolve has developed the PAMS (Production, Asset
An iVolve incab display.
management, Maintenance and Safety systems) Proximiti system, which is in advanced trials at two Bowen Basin surface mines. Mr Rogers believed Queensland mines and suppliers would need to invest in “plug and play” technology so that visiting work vehicles would be incorporated into the safety systems on site. iVolve integrated GPS and radar technologies with its Nexis mesh network capability to develop PAMS Proximiti and Mr Rogers said it would soon be releasing a “plug and play” version.
complete the process in July next year. “The fitting of cameras to all heavy equipment over the last two to three years on BMA and BMC sites has seen a reduction in the number of reversing incidents involving dump trucks, loading units and dump dozers,” a BMA spokeswoman said. “Once fully implemented, the collision avoidance system will provide another layer of protection for our employees.” Permanent and short-term contractors entering BMA and BMC sites would have the system fitted, while other arrangements were being looked at to ensure casual contractors, vendors and visitors were covered, she said. Mr Bell said there was a range of appropriate technology available, priced anywhere from around $4000 to more than $40,000. “We’re not expecting people to put a $50,000 system on light vehicles, but we would be looking for a good reason why they are not putting a $4000 system on,” he said. Mr Bell said this type of technology had been improving in leaps and bounds. “The technology is there – let’s use it. Let’s stop killing people. Let’s stop injuring them seriously,” he said.
Ivanhoe Australia Ltd is one of the top 150 companies on the Australian Stock Exchange, an Australian based company, with principal activities focussed in North-West Queensland. Situated near Mount Isa at our Cloncurry and Osborne operations, we are concentrating on the exploration and development of our portfolio of Copper-Gold-Molybdenum-Rhenium projects in this region.
If you are a motivated self starter, with demonstrated safe work practices, looking to join
Recently Ivanhoe Australia acquired the Osborne mine site, which will be utilised to further develop the Merlin Mine. We are now developing several large projects in this region, and 2011 will be a year of rapid growth, with the expansion of our current infrastructure and installation of new facilities, as well as the continuous improvements and upgrades to the Osborne mine site. Due to the recent growth and expansion of our company, we currently have a number of vacancies for experienced people:
Project Geologists
Mine Surveyors, Mine Geologists, Mining Engineers
We are seeking Project Geologists to work from our exploration site south of Cloncurry. You will report to a Senior Geologist based at the project. We have a large, multi-national exploration team within which mentoring and crosspollination of ideas is actively promoted. There is also scope for future work and interaction with other subsidiaries of the parent company Ivanhoe Mines (Asia and Africa).
We are seeking Mine Surveyors, Geologists and Engineers to work at our Osborne and Merlin Mines.
the subject ʼeld the role you are
Required skills and experience:
• Current open unrestricted Queensland driver’s licence
applying for, to our HR team at:
• Over 3 years exploration in IOCG, porphyry, epithermal, VMS and/or Sedex systems.
a dynamic company and are capable of ʼlling these roles please email your resume and cover letter, clearly stating in
ial.hr@ivancorp.net.
• A BSc Geology degree; a higher qualiʻcation (Honours, Masters and PhD) is an advantage. • The ability to plan and run exploration programs (mapping, geochemical and drilling) at the prospect level. • Strong ʻeld geology skills (mapping and interpretation). • Drill-hole planning and logging; as well as supervision of drill site activities (sampling etc) and ʻeld crews.
Required skills and experience: • Minimum 3 years FIFO Mining experience • Applicable degree, qualiʻcations and licences
Further information on the above roles, including skills and experience required, and employment conditions can be found on our website www.ivanhoeaustralia.com
Ivanhoe Australia Limited (Corporate Ofʻce) Level 9, 479 St Kilda Road Melbourne VIC 3004 Tel: 03 9090 8800
4
NEWS
May 2011 |
The Mining Advocate
Innovative measures on display A product developed for the mining market showcases the benefits of a recent push to foster collaborative technology ventures. Mackay’s GROUP Engineering has brought a new conveyor belt scanner to the market that detects product volume and composition as well as signs of equipment damage and wear. The device was initially developed as part of a thesis undertaken by one of GROUP’s undergraduate engineers, Flemming Nissen, who has since graduated from the University of Southern Queensland. The scanner was unveiled recently at a public launch to highlight the success of the Mackay Area Industry Network – MAIN Game – Winning Collaborations Project. That project involved a series of company meetings and industry workshops facilitated by clusters consultancy firm Rodin Genoff & Associates. GROUP Engineering entered a collaborative project with MAIN, the Queensland Department of Employment, Economic Development and Innovation and industrial designers PROdesign for the final phases of developing the scanner idea into a marketable product. PROdesign managing director Robert Geddes said the collaborative process between those parties had created an innovative product which would have applications in
mining operations worldwide. Discussions are under way with a German distribution company as part of the commercialisation of the scanner on the export market. The unit on display at the MAIN Game event was a field test unit destined for a major mining company’s operation. GROUP Engineering managing director Allan Ruming said the product offered a breakthrough for Australia’s mining companies, who were focused on gaining improved efficiencies and bottom line performance. “Many of our clients had been asking for us to provide a tool which would accurately allow them to detect volumetric flow of product on a conveyor belt,” Mr Ruming said. “We are working closely with a couple of selected end users in sugar and coal to ensure we have the end user needs and expectations addressed.” The device’s speed, accuracy and the way the scanner had been adapted and integrated to provide solutions to issues that clients had identified gave it the edge over other products on the market, Mr Ruming said. “The features in terms of output that it can provide are more than any single unit we have found to date,” he said. The scanner can be used on
GROUP Engineering managing director Allan Ruming and Flemming Nissen with the new scanner. (More launch event photos below). Photos: Damien Carty
any flat-bed conveyor and current applications have focused on underground and above-ground coal conveyors, sugar and bagasse conveyors.The new product can
use existing PLC (Programmable Logic Controller) hardware. Mr Ruming said it could not only detect the volume of product on the conveyor belt but
was also able to analyse product profiles, detect deterioration such as belt tear and rip, and provide small data footprints of historical data collection.
Wade Salter (Kap Mining), Mike Robin (Enterprise Connect) and Damien Martin (Kap Mining).
Andrew Peterson (Pro Design), Rob Geddes (QMI Solutions) and Kurt Martin (Sick Pty Ltd).
Bill McWhinney and Charlie Browlow (both from GROUP Engineering).
Victor McCullough (DMS Group) and Tony Britton (JSIS).
New Abbot Point berth open for business
The Luminous Halo loading at Abbot Point’s new second berth.
A new berth is open for business at Abbot Point outside Bowen as the port’s $818 million X50 expansion project nears completion. The Luminous Halo, a small Handymax vessel, was the first ship to use the facility, taking on board 44,000 tonnes of coal in early May. Marine Infrastructure Minister Craig Wallace described the event as a significant milestone for the economy of Queensland. “This berth and the adjacent existing berth will more than double the current export capacity from a nominal 21 million tonnes per annum (mtpa) to a nominal 50mtpa of capacity by the middle of the year,” he said. The government recently finalised a $1.829 billion deal for the 99-year lease of the terminal, with proceeds to be directed to Queensland’s natural
disaster recovery. Premier Anna Bligh said the government had agreed to terms with Mundra Port part of India’s Adani Group, which plans to develop the $10 billion Carmichael thermal coal project in the Galilee Basin. The North Queensland Bulk Ports Corporation will remain as port authority for the Port of Abbot Point, while Xstrata will continue to operate the port. BHP Billiton and Hancock Coal have been named as preferred developers for two new coal terminals, potentially increasing overall coal export capacity at the port to a 110mtpa (with scope to increase to 160mtpa, subject to all relevant approvals). Mr Wallace said also North Queensland Bulk Ports was planning a multi-cargo facility which would support a range of industries and could accommodate up to 12 cape-size vessels.
- Specialists in earthmoving, power & light, access, air & portable buildings. Call 13 15 52
NEWS
The Mining Advocate | May 2011
5
Big wheels hit a bumpy patch Mining operations are expected to place a renewed focus on programs to increase tyre life in the face of a tightening market. A shortfall in global rubber supply is pushing up tyre prices, while major manufacturers struggle to meet mining sector demand, industry insiders say. Bridgestone Earthmover Tyres executive manager - business planning Bruce Connor said the cost of natural rubber had escalated dramatically since late last year. He said costs had been increasing steadily since a 30 per cent slump during the global financial crisis, but had lifted as sharply as 200 per cent in the past six months. Mining houses would be feeling the impact as individual supply arrangements came up for renewal, Mr Connor said. A North Queensland-based Rubber City sales manager, Craig
Collins, said some poor seasons in rubber plantation areas combined with increased growth in the Chinese and Indian economies had contributed to the shortfall in latex. Dealers were starting to see the impact, not so much in car and truck tyres generally, but in the larger earthmoving ranges. Prices had risen by about five per cent in this area in the last month or so and the lead times to fill orders were increasing, he said. “The concern is that it could become a lot worse….I think the whole industry is just watching to see what will happen,” he said. Mr Connor said Bridgestone’s manufacturing plants in Japan were operating at full capacity, but were unable to match demand for large off-road tyres despite
Rubber City sales manager Craig Collins at the Charters Towers branch.
a major expansion completed in 2008. Another expansion is scheduled within three years, however he said growth in resources sector demand outpaced manufacturers’ ability to boost capacity.
Mr Connor said a number of new manufacturers were coming online in China and former Soviet states, however “the technology in their product probably lags the existing manufacturers”.
Work vehicles in short supply A severe shortage of hire vehicles is hindering project work in the Bowen Basin, according to GROUP Engineering managing director Allan Ruming. “Pretty much what we’re having to do is use employees’ vehicles and pay them mileage to get them to and from sites at times, because we simply can’t hire a car at short notice,” Mr Ruming said. In most cases the firm would have to wait two or three weeks to get a general work vehicle for a stint in the coalfields, he said. “We are dragging older vehicles back into our fleet to keep them going and we’re now looking at buying more cars than we would normally want to have in our own fleet,” Mr Ruming said. “It just takes away the flexibility. If you then add in the other problem in the region - which is the lack of accommodation on sites - then trying to set up a time that meets accommodation availability, hire car availability and the date the client wants to do the job – it just means that a lot of jobs don’t get done.” GROUP has been using Winnebagos (motor homes) to help get around the problem, which has been heightened by the impact of the Japanese tsunami disaster on vehicle and parts manufacturers. Four-wheel drive and truck hire specialist Sargent has been struggling to source enough vehicles in the face of extremely strong resources sector demand, according to national sales
Sargent national sales and marketing manager Grant Harrison.
and marketing manager Grant Harrison. Mr Harrison estimated demand for rental vehicles in the Australian mining market had increased 15 to 20 per cent in the last year, although it was difficult to gauge exactly as the company was not in a position to satisfy the market. Mr Harrison said the recent tsunami and its aftermath in Japan had put a large impediment in availability of “in-demand” vehicles in Australia, such as the Toyota HiLux. Toyota fleet customers were advised in early May that most of the company’s manufacturing plants around the world were operating at about 40 to 50 per cent production volumes. Mr Harrison said the problem was not limited to Toyota or to companies with Japan-
based plants, as many vehicle manufacturers relied on parts coming out of Japan. “Every manufacturer works on a just-in-time principle now - so with the devastation caused by the tsunami, we’re seeing supply shortages impacting across the industry,” he said. Mr Harrison, who recently visited a Brisbane truck show, said he was receiving mixed information about availability across a range of vehicles and equipment. Best Tractor Parts Queensland sales manager Simon Ross said there was a definite tightening in the supply of new mining equipment parts from overseas for a range of reasons. “We’re conmtinuing to look outside the square and look for other suppliers,” Mr Ross said. Construction and Mining Equipment Industry Group
chief executive officer John Reid said he was aware of only slight supply problems out of Japan in terms of earthmoving equipment. Suppliers were generally able to meet the present levels of demand in Australia, although production capacity for large earthmoving tyres was an ongoing problem, he said. Availability in Australia was affected by the fact that a foundering US economy had reduced demand for earthmoving equipment in that market, Mr Reid said. Mr Reid said construction and mining equipment sales had been increasing year on year in Australia, but still had some way to go before matching the levels experienced in 2008, before the global financial crisis struck.
Many new mining operations would have to source supplies from outside the more established tyre companies, he said. Mr Connor believed also the price increases and tight supply would prompt mining houses to place a renewed focus on tyre management programs to maximise lifespans. MMG Century general manager Karl Spaleck said tyre management was an ongoing focus, with the operation regularly reviewing how it sourced, used and disposed of tyres. “This ensures that we are well placed for the expected tightening of the tyre market,” he said. “While the cost of tyres has increased by about 7 per cent over the last three years, we have undertaken extensive work to optimise tyre life as part of our Operate for Reliability program.” • Tyre care tips - Page 17.
Shave-off a success Resource sector workers have again put their hair on the line for the World’s Greatest Shave Mine Challenge in support of Queensland leukaemia patients and their families. Leukaemia Foundation of Queensland chief executive officer Peter Johnstone said 52 mining and energy sites across the state participated in the 2011 Mine Challenge, helping to raise more than $350,000 for the foundation. The highest fundraiser is yet to be announced. “Once again, big-hearted members of the resources sector have done their bit to shave or colour their hair, or support others who did, to make a difference to the lives of fellow Queenslanders living with leukaemias, lymphomas, myeloma and related blood disorders,” Mr Johnstone said.
MOU on skills The worsening skills shortage has prompted peak resources bodies in Western Australia and Queensland to team up to tackle the issue along with a national industry council. The Chamber of Minerals and Energy of Western Australia, Queensland Resources Council (QRC) and SkillsDMC have struck a Memorandum of Understanding (MOU) to identify strategies to source the increasing number of skilled people the industry will require over the next five to 10 years. QRC chief executive Michael Roche said the partnership would result in unprecedented collaboration between the key mining states and the training and education sector to tackle a complex, national issue.
- Specialists in earthmoving, power & light, access, air & portable buildings. Call 13 15 52
6
NEWS
May 2011 |
The Mining Advocate
CQ lodges are Brodsky’s beat His experience on the Gordonstone picket line sparked a passion in this central Queensland union official, writes Belinda Humphries. Chris Brodsky’s family background saw him plunge into the world of underground mining two decades ago, back in the days where being the son of a coalminer almost guaranteed you a start in the industry. But it was his experience during the landmark Gordonstone dispute in the late ‘90s that galvanised his commitment to the union cause. “I’ve got a real passion for looking after people and making sure they get a fair deal,” he says. Mr Brodsky is the Construction, Forestry, Mining
and Energy Union (CFMEU) district vice-president working out of Blackwater, a full-time position he took on in July last year. The role covers about 20 CFMEU lodges in an area stretching from Emerald north to Moranbah in central Queensland. It means Mr Brodsky, who lives in Emerald, was in the thick of efforts to assist union members during the Queensland flood crisis. The community always knew the union would be there to help in tough times, he said. While having a stepfather (Geoff Baillie) who had been
Chris Brodsky CFMEU district vice-president
in the coal industry since 1978 helped Mr Brodsky gain his initial position as a temporary miner at Gordonstone mine in 1992, he
said he really had no intention of following in those footsteps as a boy growing up in Brisbane. “It never crossed my mind as a young fellow - I wanted to be a mechanic or chef,” he said. However, when a lack of apprenticeship opportunities in those areas helped steer him into mining, Mr Brodsky said he soon found he loved it. Mr Brodsky worked at Gordonstone from 1992-1997 and was on the picket line in 1997-1999 during the drawn-out dispute with ARCO. “They didn’t want to work with the union so they sacked the entire workforce and put a new one in – it was the biggest unfair dismissal case in Australian history,” Mr Brodsky said. Mr Brodsky moved on to work
as a contractor before gaining a position at BMA’s Crinum mine, where he worked from 2001 until last year. Mr Brodsky said he had come up through the union ranks, acting as a shift delegate at Crinum before becoming lodge secretary for seven years. As a union official, he believes the most pressing issues are “clawing back the conditions lost under WorkChoices” and lack of accommodation for mining families in the coalfields. Mr Brodsky, who has three children with wife Yolanda, has lived in Emerald for more than 17 years. While professing to be “still a city boy at heart”, he said Emerald was a better place to bring up a family and had a great community that looked after each other.
Community May Day festival keeps marching on A big turn-out from union marchers added muscle to Moranbah’s 2011 May Day parade, which experienced a slight drop in floats and other entries, organisers say. The parade kicks off the community’s annual Coal & Country Festival, which was well attended this year – drawing a crowd of at least 2500, festival co-ordinator Anne O’Leary said. Organisers had some difficulties raising funds this year, she said. “We did have to cancel one of the rides, but hopefully next year we’ll get a bit more financial
support. I think the floods have interfered with just how much people are able to invest in the festival, but as a community we are so lucky to be able to offer what is virtually a free show day,” Mrs O’Leary said. The rides offered on the day were primarily funded by the CFMEU, with additional donations coming from businesses and other unions. The CFMEU 10km run, held on the Sunday before the May Day parade, drew its largest field ever this year with 119 senior runners and 42 junior runners.
The bumper field ready to go as CFMEU state president Steve Smyth wields the starter’s gun for the 10km run. Photo: Tahlia Mills
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Marchers at the May Day celebrations.
Jordan Lock, 10, and Kane Lock, 7, joined the parade.
Photo: Brenda Braithwaite
Joanne Mulcahy and Jessica Tindel enjoy the festivel.
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The Mining Advocate | May 2011
A chronicle of change in coal Retired mining engineer Don Henderson’s book on Curragh mine reflects the evolution of the industry over the last three decades. When mining began at Curragh, the operation ran a mainframe computer bigger than a refrigerator that would crash if the geologists tried to run models at the same time as the payroll was being processed. Today, like other sites throughout Queensland, there’s a PC at every desk and even most of the earthmoving equipment has computers on board, many with high precision GPS. Change emerged as the key theme when Don Henderson sat down to write a history of the central Queensland coal mine following his retirement two years ago from Wesfarmers Resources, where he was senior development manager. His book Constant Change – the Curragh Coal Mine Story not only chronicles the growth of that operation over the past 30 years, but the evolution of the industry generally. Mr Henderson, who lives on the Sunshine Coast, said he had been involved in Curragh “one way or another” since 1981, including in the mine’s planning and the original management team. “There was a keenness to record the Curragh story for a couple of reasons,” he said. “One was to retain some of the corporate memory, because there weren’t too many people left who had been involved with the mine from the beginning – I thought it would be nice to leave a trail of breadcrumbs that people could follow to see why certain things were done. Also, just making a book that the employees of Curragh would find
interesting and explain some of the background to them and a bit of the history.” The former mining engineer said one of the most fascinating aspects of his research had been examining the early history of the
Retired mining engineer Don Henderson at his Brisbane book launch.
Blackwater region, where explorer Ludwig Leichhardt discovered coal very close to the Curragh mine site. “Coal mining itself first started in the area in 1900 and over the next 40 years there had been attempts by a number of people in a number of spots to start little simple underground mines,” Mr Henderson said. “None of them had been really successful - they had struggled with the cost of mining and markets. It was only really later with large open-cut mining
operations that it was able to be profitable.” The Curragh mining operation was kicked off by a joint venture involving ARCO Australia, RW Miller and Company, ACI Resources and Mitsui. Mr Henderson, who was the site’s first mining manager, said the team at Curragh had done some things “a bit differently to what was the norm in the industry at that time”. The housing established at Blackwater in the early 1980s was of a higher standard than was usual in the industry, with layouts designed to suit shift workers and benefit the workforce generally, he said. “Another thing that was different is that we certainly purchased larger equipment than was usual at that time,” Mr Henderson said. “Probably the other key thing was the management style that we developed, which was basically to devolve responsibility and authority further down the organisation than was common at the time.” Industrial relations reform, technology and attitudes to safety and environment had been among the greatest changes across the industry during Curragh’s history, he said. Wesfarmers Resources now owns the Curragh operation, which produces 6.5 million tonnes of export coking coal and 2.5 million tonnes of domestic thermal coal per year. Before his retirement Mr Henderson was involved in initial planning for the $286 million expansion project under way to lift capacity to 8.5 million tonnes of exports per year. Constant Change – the Curragh Coal Mine Story was launched recently through events in Brisbane and Blackwater.
The dragline assembly nears completion at the Isaac Plains site.
Extra muscle for Moranbah mine A new dragline is expected to start working the Isaac Plains N1 pit in June after Mackay-based firm G&S Engineering successfully fitted and raised the machine’s 97.5m boom recently. Isaac Plains operations manager Phil Nobes said final installation work and commissioning was under way at the Moranbah coal mine in early May. “We will have three weeks of in-pit commissioning after that and it will be in operation by the end of June,” he said. The Bucyrus Erie 1370W dragline was dismantled and shipped from the United States before being rebuilt at the Isaac Plains operation, an Aquila Resources-Vale joint venture. The introduction of the dragline is expected to increase output at Isaac Plains to about 2.8 million product tonnes. It will help reduce the cost of shifting overburden as mining goes deeper. Wet weather in late 2010 and early 2011 had put the completion of the dragline project about a month behind schedule, Mr Nobes said. • Central Queensland mining map feature - Pages 8-9
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8
CQ MINING – COALFIELDS SPECIAL
May 2011 |
The Mining Advocate
King coal The booming central Queensland coalfields are the focus of a special map feature in this edition. Operations coming online in the next six years are expected to create 10,000 mining jobs in the Mackay-WhitsundayIsaac region. “The run-on effect of that is that for every one job in mining another two will be created in indirect industry,” Regional Economic Development Corporation chief executive officer Narelle Pearse said. While the continued growth would bring economic prosperity, it also brought challenges in terms of infrastructure, services and skills, she said. A recent major projects report compiled by Capricorn Tourism & Economic Development flagged $146 billion of investment in the next decade, including coal projects valued at more than $41 billion and about $75 billion in energy developments. Economic development manager Neil Lethlean said the report took in an area including the Fitzroy and Central Highlands regions, the Galilee Basin and the northern Surat Basin. The Queensland Resources Council expects the value of coal produced statewide to double over 10 years to well over $50 billion, based on current investment plans.
Operating coal mines 1 - Baralaba | Cockatoo Coal plans a staged expansion to increase production from the open-pit Baralaba mine and surrounding leases (Baralaba North, Baralaba South and Wonbindi projects) to 3.5mtpa (million tonnes per annum) metallurgical and thermal coal by 2015. Prefeasibility studies continue | www.cockatoocoal.com.au | O8 2 - Blackwater | owned by BHP Billiton Mitsubishi Alliance, this open-cut operation produces about 14mtpa metallurgical and thermal coal. | www.bhpbilliton.com | N7 3 - Blair Athol | managed by majority owner Rio Tinto Coal Australia, this open-cut mine produces up to 12mtpa thermal coal. It is due to close in 2016. | www.riotintocoalaustralia.com | L5 4 - Broadmeadow | owned by BHP Billiton Mitsubishi Alliance, this underground operation has the capacity to produce more than 3mtpa metallurgical coal. A recently approved investment will increase capacity to 4.8mtpa. The $US900 million project is due for completion in 2013. | www.bhpbilliton.com | M4 5 - Burton | owned by Peabody Energy Australia and operated by Thiess, this open-cut mine produces about 2.2mtpa of saleable metallurgical and thermal coal. Extension projects are under way to boost production to about 4mtpa by 2015. | www.peabodyenergy.com.au | N4 6 - Callide | owned by Anglo American Metallurgical Coal, this open-cut mining complex produces about 9mtpa thermal coal. | www.angloamerican.com.au | Q8 7 - Capcoal operations/German Creek complex | owned by Anglo American Metallurgical Coal and Mitsui Coal Holdings, this group of open-cut and underground mines (including Aquila, Grasstree, Bundoora, Lake Lindsay and Oak Park) produces about 8mtpa metallurgical coal. | www.angloamerican.com.au | N6 8 - Carborough Downs | majority owned by Vale, this mine was commissioned in 2006 and underwent a $400 million upgrade in 2009 to convert to a longwall operation. It has a capacity of 4mtpa ROM (run of mine) metallurgical coal. | www.vale.com | M4 9 - Clermont | managed by majority owner Rio Tinto Coal Australia, this open-cut mine began exports in 2010 and will produce up to 12.2mtpa thermal coal when it reaches full capacity in 2013. Potential to expand to 15mtpa. | www.riotintocoalaustralia.com.au | L5 10 - Collinsville | part of the NCA Project involving Xstrata Coal, Itochu Coal Resources and Sumitomo, this open-cut mine is operated by Thiess and produces about 6mtpa thermal and metallurgical coal. | www.xstratacoal.com | M2 11 - Cook | owned by Caledon Resources, this mine produces about 0.5mtpa of metallurgical and thermal coal, expected to increase to 0.7mtpa in 2011. | www.caledonresources.com | N7 12 - Coppabella | Macarthur Coal is majority owner of this opencut operation, producing about 3mtpa metallurgical coal. | www.macarthurcoal.com.au | N4 13 - Curragh | owned by Wesfarmers Resources, this open-cut operation produces about 6.5mtpa metallurgical coal for export and 2.5mtpa of thermal coal for domestic use. A $286 million expansion project is under way to lift capacity to 8.5mtpa metallurgical coal. | www.curragh.com.au | N6 14 - Dawson (formerly Moura mine) | owned by Anglo American Metallurgical Coal and Mitsui Coal Holdings, this opencut mine produces more than 7mtpa thermal and metallurgical coal. | www.angloamerican.com.au | P8 15 - Ensham | Ensham Resources produces about 7mtpa thermal coal at this open-cut operation. Construction has begun on a $166 million bord and pillar underground mining project, to take production to 10mtpa from 2012. | www.ensham.com.au | M6
16 - Foxleigh | Anglo American Metallurgical Coal is the major stakeholder in this operation, which produces about 2.5mtpa PCI coal. A prefeasibility study is under way for an expansion project to increase capacity to 4mtpa. | www.angloamerican.com.au | N6 17 - Goonyella Corridor | owned by Peabody Energy Australia, the combined operations of the Eaglefield open-cut mine (operated by Macmahon Holdings) and North Goonyella longwall mine (operated by Peabody) produce about 2.9mtpa of saleable metallurgical coal. Goonyella Corridor production capacity is expected to increase to 3.7mtpa by 2015. | www.peabodyenergy.com.au | M4 18 - Goonyella Riverside | owned by BHP Billiton Mitsubishi Alliance and operated by Downer EDI Mining, this open-cut mine has the capacity to produce 15mtpa metallurgical coal. | www.bhpbilliton.com | M4 19 - Gregory/Crinum | owned by BHP Billiton Mitsubishi Alliance, this complex comprises the Gregory open-cut operation and Crinum underground mine. The combined operations have a capacity to produce more than 5mtpa metallurgical and thermal coal. | www.bhpbilliton.com | M6 20 - Hail Creek | managed by majority owner Rio Tinto Coal Australia, this open-cut mine produces up to 8.8mtpa metallurgical coal. Lake Elphinstone and Mt Robert are adjacent prospects that could leverage Hail Creek infrastructure. | www.riotintocoalaustralia.com | N3 21 - Isaac Plains | a Vale-Aquila Resources joint venture operated by John Holland, this open-cut site produces about 2.8mtpa thermal and metallurgical coal. Construction is under way on a $118 million project to increase capacity to 4mtpa. | www.vale.com | www.aquilaresources.com.au | M4 22 - Jellinbah East | managed by Jellinbah Resources for the Jellinbah Joint Venture and operated by John Holland, this opencut mine produces more than 4.8mtpa metallurgical coal. | www.jellinbah.com.au | N6 23 - Kestrel | managed by majority owner Rio Tinto Coal Australia, this underground mine produces up to 4.2mtpa metallurgical coal. Construction is under way on a $US1.1 billion project to extend mine life by 20 years and lift capacity to 5.7mtpa. | www.riotintocoalaustralia.com.au | M6 24 - Lake Vermont | managed by Jellinbah Resources for the Lake Vermont Joint Venture and operated by Thiess, this open-cut mine produces about 4mtpa metallurgical coal. Construction has begun on a $200 million expansion project to increase capacity to 8mtpa from 2015. | www.jellinbah.com.au | N5 25 - Millennium | owned by Peabody Energy Australia and operated by Downer EDI, this open-cut mine produces about 1.5mtpa metallurgical coal. The $276 million Millennium Expansion Project is in the prefeasibility stage and is expected to deliver an additional 1.5mtpa by 2015. | www.peabodyenergy.com.au | N4 26 - Minerva | majority owned by Sojitz, this open-cut mine has a capacity of 2.8mtpa thermal coal. | www.sojitz.com | M7 27 - Moorvale | Macarthur Coal is majority owner of this opencut operation, producing about 2mtpa metallurgical and thermal coal. Prefeasibility work has been conducted for an underground expansion project. | www.macarthurcoal.com.au | N4 28 - Moranbah North | Anglo American Metallurgical Coal is the major stakeholder in this underground operation, producing about 4mtpa metallurgical coal. | www.angloamerican.com.au | M4 29 - Newlands complex | part of the NCA Project involving Xstrata Coal, Itochu Coal Resources and Sumitomo, this combined underground and open-cut operation produces about 11mtpa thermal and metallurgical coal. The joint venture recently lodged a federal environmental application for an extension project for the Eastern Creek and Northern Underground areas to produce up to 11mtpa.| www.xstratacoal.com | M3
The Hay Point Coal Terminal near Mackay is earmarked for a $US2.5 billion upgrade.
30 - Norwich Park | owned by BHP Billiton Mitsubishi Alliance and mined by Downer EDI Mining, this open-cut coal mine has the capacity to produce more than 5mtpa metallurgical and thermal coal. | www.bhpbilliton.com | N5 31 - Oaky Creek | Xstrata Coal Queensland is the majority owner of the Oaky Creek No.1 and Oaky North underground mines, producing about 11mtpa metallurgical coal. Phase one of the Oaky Creek expansion, expected to start this year, will increase production by about 1mtpa. | www.xstratacoal.com | N6 32 - Peak Downs | owned by BHP Billiton Mitsubishi Alliance, this open-cut mining operation produces up to 9mtpa of metallurgical coal. Production is expected to increase by 2.5mtpa due to processing developments under the Bowen Basin Coal Growth Project. | www.bhpbilliton.com | M5 33 - Poitrel | owned by BHP Mitsui Coal and mined by Leighton Mining, this open-cut metallurgical coal mine has a capacity around 3mtpa. | www.bhpbilliton.com | N4 34 - Rolleston | a joint venture of Xstrata Coal Queensland, Sumisho Coal Australia and IRCA Rolleston, this open-cut mine produces about 8mtpa thermal coal. Prefeasibility studies have commenced for the proposed Rolleston expansion (indicative start-up in 2014) which is set to increase production by 6mtpa. The company recently lodged federal environmental applications regarding further tenements that could take production as high as 20mtpa. | www.xstratacoal.com | M8 35 - Saraji | owned by BHP Billiton Mitsubishi Alliance, this open-cut mine produces up to 8mtpa metallurgical coal. | www.bhpbilliton.com | M5 36 - Sonoma | a joint venture between QCoal, Cliffs Australia Coal, JFE Shoji, China Steel and Watami Trading, this open-cut operation produces about 4mtpa metallurgical and thermal coal. Leighton Mining is the mining contractor. | www.qcoal.com.au | M2 37 - South Walker Creek | owned by BHP Mitsui Coal and operated by Thiess, this operation produces up to 3.2mtpa metallurgical coal. | www.bhpbilliton.com | N4 38 - Yarrabee | owned by Yancoal Australia since its acquisition of Felix Resources in 2009, this open-cut mine has a capacity of 1.7mtpa thermal and metallurgical coal. An expansion project is expected to lift production to 2.8mtpa from about 2013. | www.yancoalaustralia.com.au | N6 Coal development projects 39 - Alpha Coal Project | Hancock Coal plans a $7.5 billion development including an open-cut mine to produce 30mtpa export thermal coal. The bankable feasibility study is being finalised, with first exports planned for 2014. It includes fully integrated rail and port infrastructure. | www.hancockcoal.com.au | K6 40 - Alpha North | feasibility studies have begun for this Waratah Coal project, expected to begin production in 2016 in a staged development and have a capacity of 40mtpa thermal coal. | www.waratahcoal.com | K6 41 - Arcturus | Bandanna Energy is undertaking a definitive feasibility study for development of open-cut and underground mines producing about 5mtpa thermal coal. Subject to approvals, first coal could be mined in 2014. The development is expected to cost $200-$250 million. | www.bandannaenergy.com.au | M7 42 - Belvedere | project partners Vale and Aquila Resources have a feasibility study under way for the development of a new $2.8 billion longwall operation to begin production in 2014, with a capacity of about 9mtpa metallurgical coal. | www.vale.com | www.aquilaresources.com.au | O8
43 - Byerwen | JFE Steel and QCoal are advancing this $1.5 billion project to produce up to 10mtpa metallurgical coal. Construction of the open-cut and underground mines is scheduled to commence in 2013. | www.qcoal.com.au | www.jfe-steel.co.jp/en/ | M3 44 - Carmichael | the Adani Group proposes a $10 billion coal and rail project with a capacity of 60mtpa thermal coal to begin operations from 2014. | http://adanigroup.com/ | K4 45 - Caval Ridge | part of the BHP Billiton Mitsubishi Alliance Bowen Basin Growth Project. If approved, the open-cut mine would produce up to 5.5mtpa metallurgical coal. | www.bhpbilliton.com | K6 46 - China First (Galilee Coal Project, Northern Export Facility) | Waratah Coal proposes an $8 billion integrated open-cut and underground mining operation, rail system and port facilities to produce 40mtpa thermal coal. The EIS has been submitted with government and production is expected in 2014. | www.waratahcoal.com | K6 47 - Codrilla | majority owner Macarthur Coal has completed the feasibility study for development of a $150 million open-cut mine producing about 3.2mtpa metallurgical coal, with operations expected to begin in 2013/14. | www.macarthurcoal.com.au | N4 48 - Daunia | BHP Billiton Mitsubishi Alliance recently approved this $US1.6 billion project. It will be an open-cut metallurgical coal operation with capacity to produce up to 4.5mtpa. First coal is expected in 2013. | www.bhpbilliton.com | N4 49 - Dingo West | Bandanna Energy is undertaking a definitive feasibility study for development of an open-cut mine producing about 1mtpa metallurgical and thermal coal. Subject to approvals, first coal could be mined in 2012. The development is expected to cost $130-$180 million. | www.bandannaenergy.com.au | N6 50 - Drake | QCoal is proposing to develop an open-cut mine producing up to 6mtpa thermal and metallurgical coal. An EIS is under way and production is expected to begin in late 2013. | www.qcoal.com.au | M2 51 - Dysart East | prefeasibility studies are under way for this Bengal Coal project, expected to produce 4mtpa ROM metallurgical coal. | http://bengalenergy.in/ | N5 52 - Eagle Downs | joint venture partners Vale and Aquila Resources have a feasibility study under way for the development of a longwall operation to begin production in 2012. | www.vale.com | www.aquilaresources.com.au | N5 53 - Ellensfield | Vale has a feasibility study under way for a longwall operation due to begin production in 2015, with a capacity of about 4.7mtpa metallurgical coal. | www.vale.com | M4 54 - Grosvenor | Anglo American Metallurgical Coal is continuing feasibility studies for a $1.1 billion underground mine to produce about 4.3-5mtpa metallurgical coal, with construction set to begin in late 2012. | www.angloamerican.com.au | M4 55 - Kevin’s Corner | Hancock Galilee proposes a $6.9 billion development including underground longwall and open-cut mining operations to produce up to 30mtpa thermal coal. Feasibility studies are under way, with first exports planned for 2015. | www.hancockcoal.com.au | K6 56 - Jax | mining lease applications are in progress for this QCoal project, which would see development of an open-cut mine producing 1.8mtpa thermal and metallurgical coal. Production is expected to begin in early 2012. | www.qcoal.com.au | M2 57 - Lenton | New Hope Corporation has prefeasibility work in progress for the development of an open-cut mine to produce thermal and metallurgical coal. | www.newhopecoal.com.au | M4 58 - Mackenzie River | Stanmore Coal aims to begin production in 2015 from an open-pit operation producing about 2mtpa metallurgical coal. Prefeasibility studies continue. | www.stanmorecoal.com.au | M6
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9
CQ MINING – COALFIELDS SPECIAL
The Mining Advocate | May 2011
Green light to growth
Full steam ahead
The BHP Billiton Mitsubishi Alliance (BMA) has given the green light for a $US5 billion line-up of Bowen Basin coal projects to come online within the next four years. The projects will add 4.9 million tonnes of annual mine capacity and 11 million tonnes of annual port capacity. The recently approved investment includes the $US1.6 billion development of the new Daunia mine, adjacent to Poitrel, about 18km south-west of Coppabella. The joint venture partners will also spend $US900 million to extend the life of the Broadmeadow mine near Moranbah by a further 21 years and increase capacity by 0.4 mtpa, to a new total capacity of 4.8 mtpa. The Stage Three expansion of BMA’s Hay Point Coal Terminal near Mackay has also been funded to increase capacity from 44 mtpa to 55 mtpa. BHP Billiton Metallurgical Coal president Hubie van Dalsen said the company had a deep pipeline of expansion projects to further develop its large reserves of high quality metallurgical coal. “Our strategy is to rapidly progress development of these projects to capture the increasing demand we see for hard coking coal,” he said. “Subject to further approvals, this initial investment will be followed in the near term by the construction of the Caval Ridge mine, which will utilise expanded Hay Point port capacity created from this investment.”
The Middlemount coal mine in central Queensland is steaming towards a start-up as work continues on a 16.5km spur line to connect the site with the main Goonyella rail line. The project, a joint development between Macarthur Coal and Gloucester Coal, is located 6km from the town of Middlemount and about 270km north-west of Rockhampton. A John Holland and GHD alliance – MERA (Middlemount Early Rail Alliance) - is constructing the rail link, which is expected to be finished by the end of this year despite wet weather interruptions, according to Middlemount Coal chief executive officer Michael Gray. Middlemount Coal recently awarded a five-year contract to NRW to undertake mining services for the mine. Mr Gray said the company was already on site undertaking pre-stripping work and other preparations. A workforce of up to 400 is on site, primarily involved in the rail construction. Mr Gray said commissioning was continuing on the $65 million coal handling and preparation plant, which had a throughput capacity of 400 tonnes an hour. Sedgman built the plant and would be operating it when the mine went into production, he said. The mine is being developed at a total cost of about $500 million over two stages. It will produce semi-hard coking coal and low-volatile PCI coal for export.
59 - Middlemount | Macarthur Coal and Gloucester Coal are developing this $500 million open-cut operation. Production is due to begin this year at a rate of about 1.8mtpa ROM, increasing to 5.4mtpa in 2014/15. | www.macarthurcoal.com.au | N5 60 - Minyango | Caledon Resources is undertaking a feasibility study into the development of a $400 million underground mine to produce about 3mtpa metallurgical and thermal coal. | www.caledonresources.com | N6 61 - Monto | feasibility studies have been completed for Stage 1 of this thermal project, expected to produce 1mtpa-1.5mtpa ROM coal. Prefeasibility studies have been carried out for Stage 2. Owners include Macarthur Coal, the Noble Group and other parties. The project is under review. | www.macarthurcoal.com.au | O9 62 - Moranbah South | Anglo American Metallurgical Coal and Exxaro have a prefeasibility study under way for a $1 billion underground mine. | www.angloamerican.com.au | M4 63 - Olive Downs North | majority owner Macarthur Coal aims to start mining here to extend the life of Moorvale mine. A feasibility study is under way. | www.macarthurcoal.com.au | N4 64 - Orion Downs | Endocoal is undertaking prefeasibility studies for the development of a 2.5mtpa thermal coal operation within the next two years at an expected cost of $65 million (excluding rail loading and stockpiling facilities). This would include an opencut operation (Meteor Downs South) and underground operation (Inderi). | www.endocoal.com.au | M8 65 - Sarum | Xstrata Coal is exploring the feasibility of constructing open-cut and underground mines, associated coal handling and processing infrastructure. Final definition of the coal resources and detailed mine planning are continuing. | www.xstratacoal.com | M2 66 - South Galilee | Bandanna Energy and AMCI have a feasibility study and EIS under way for development of an opencut and underground operation producing 15-20mtpa thermal coal. | www.southgalilee.com.au | K7 67 - Springsure Creek | Bandanna Energy is undertaking a definitive feasibility study for development of an underground longwall mine, initially producing about 5.5mtpa ROM thermal coal, rising to 11mtpa. The initial development is expected to cost about $650-$750 million, increasing to about $1.1 billion for two longwalls. | www.bandannaenergy.com.au | M7 68 - Styx’s Coal Project | prefeasibility studies have commenced for this joint venture project between Waratah Coal and Queensland Nickel, expected to produce 1-2mtpa metallurgical and thermal coal. | www.waratahcoal.com | O5 69 - Talwood (previously Red Hill) | Aquila Resources is conducting prefeasibility work for the establishment of a longwall operation producing up to 4mtpa ROM thermal coal. | www. aquilaresources.com.au | M4 70 - Valeria | a large thermal resource managed by majority owner Rio Tinto Coal Australia. Order of magnitude options review and scoping study under way. | www.riotintocoalaustralia.com | M6 71 - Vermont East/Willunga | majority owner Macarthur Coal has a prefeasibility study under way for the development of an open-cut metallurgical coal mine producing about 4mtpa ROM. | www.macarthurcoal.com.au | N5 72 - Washpool | Aquila Resources has expanded the scope for the definitive feasibility study for this project, focusing on an open-cut operation producing 2.6mtpa metallurgical coal. | www.aquilaresources.com.au | N6 73 - West Rolleston | majority owner Macarthur Coal is completing a concept study for a potential thermal coal operation. | www.macarthurcoal.com.au | M8
The new Middlemount mine’s coal handling and preparation plant.
74 - Winchester South | resource managed by majority owner Rio Tinto Coal Australia. Work is under way to determine coal quality and yield information for a potential thermal and metallurgical operation. | www.riotintocoalaustralia.com | N5 75 - Yamala | Northern Energy Corporation has a large resource of thermal or thermal/PCI coal with conceptual/prefeasibility studies under way to identify alternative development paths. | www.northernenergy.com.au | M7 Ports 76 - Abbot Point | North Queensland Bulk Ports Corporation last year awarded preferred developer status to BHP Billiton and Hancock Coal to build two new coal terminals to export an estimated 110mtpa coal. India’s Adani Group has secured a 99-year lease on the existing State Government-owned Abbot Point Coal Terminal, which is in the final stages of upgrades to increase capacity to 50mtpa. Construction is under way on a $1.1 billion Goonyella to Abbot Point rail expansion project to support increased capacity at the Abbot Point Coal Terminal. | www.nqbp.com.au | M1/M3 77 - Balaclava Island Coal Export Terminal (BICET) | Xstrata Coal is conducting a prefeasibility study into the potential development of a 35mtpa terminal. | www.balaclavaislandcoal.com.au | Q7 78 - Dalrymple Bay Coal Terminal | a $1.3 billion expansion project was completed in 2009 to take this facility’s capacity to 85mtpa. | www.dbct.com.au | O3 79 - Dudgeon Point | North Queensland Bulk Ports last year named DBCT Management and the Adani Group as preferred proponents to develop new coal export infrastructure at this site. | www.nqbp.com.au | O3 80 - Hay Point Coal Terminal | $US2.5 billion Stage 3 expansion recently approved by owners, BHP Billiton Mitsubishi Alliance, to increase capacity from 44 mtpa to 55mtpa. | www.bhpbilliton.com | O3 81 - Port Alma Shipping Terminal | this facility handles niche market products including ammonium nitrate and explosives. | www.gpcl.com.au | Q7 82 - Port of Gladstone | the RG Tanna Coal Terminal and Barney Point Terminal have a combined capacity to handle more than 75mtpa coal. Other major products handled here include alumina, aluminium, bauxite and cement. | www.gpcl.com.au | R7 83 - Wiggins Island Coal Export Terminal (WICET) | this industry-funded $5 billion terminal, to be built in stages to match demand, will be located at Golding Point and is expected to have a capacity of about 80mtpa when fully commissioned. | http://wicet.com.au/ | Q7 Mineral mining operations 84 - Bajool | owned by Omya, the bulk of the calcium carbonate limestone produced at this site goes to a processing plant in Geelong while about a third is used at underground coal mines in central Queensland. | www.omya.com.au | Q7 85 - Calliope | owned by Sibelco, limestone mined here is used in products including road base and aggregate for drainage. | www.sibelco.com | Q7 86 - East End mine | Queensland’s largest limestone mine operation, this site supplies lime to the Cement Australia manufacturing plant at Gladstone. | www.cemaust.com.au | Q7
87 - Kunwarara magnesite operation | Queensland Magnesia mines about 5mtpa of magnesite ore to produce about 600,000 tonnes of magnesite after on-site beneficiation. The company recently began mining a satellite deposit at Yaamba. | www.qmag.com.au | P6 88 - Yaamba | Queensland Magnesia recently began working this deposit, mining about 1mtpa of ore to produce just over 100,000 tonnes of magnesite. | www.qmag.com.au | P6 Mineral development projects 89 - Anthony | a scoping study is under way for this Zamia Metals molybdenum project. | www.zamia.com.au | L4 90 - Eulogie | metallurgical test work and a transport options study have commenced toward completion of a scoping study in late 2011 for this iron-vanadium project. | www.easterniron.com.au | P7 91 - Marlborough mine | Gladstone Pacific Nickel proposes development of a new nickel-cobalt mine to feed a planned refinery at Gladstone. EIS completed. | www.gladstonepacific.com.au | P5 92 - Mt Cannindah | Planet Metals reached a farm-in agreement with Drummond Gold in late 2010 to advance this copper-gold project. | www.planetmetals.com.au | R9 93 - Mt Kroombit | Argonaut Resources has completed the scoping study for development of an $87 million zinc-copper operation. | www.argonautresources.com | Q8 94 - Mount Morgan tailings project | Norton Gold Fields has completed the feasibility study for this $30-$60 million project and is seeking financing. | www.nortongoldfields.com.au | P7 95 - Rannes | Solomon Gold has announced an inferred mineral resource for this gold-silver project and is continuing exploration work. | www.solomongold.com | P8 Processing operations and projects 96 - Boyne Smelters Limited | Rio Tinto Alcan is the largest shareholder in the Boyne Smelters Limited (BSL) joint venture, which produces about 558,000 tonnes of aluminium per annum. Construction is well advanced in projects to modernise and extend the life of the plant. | www.riotintoalcan.com | R7 97 - Cement Australia | Australia’s largest cement plant, Cement Australia’s facility at Fisherman’s Landing has a production capacity of more than 1.7 million tonnes of cement per annum. | www.cemaust.com.au | Q7 98 - Chalco east coast refinery project | Chalco Australia last year allowed its $2.5 billion development deal with the Queensland Government to lapse due to adverse conditions in the aluminium sector. This project would involve the development of a new bauxite mine on Cape York and an alumina refinery, which was proposed to be based at Abbot Point outside Bowen. | www.chalcoaustralia.com.au | N1 99 - Gladstone Pacific Nickel refinery proposal | Gladstone Pacific Nickel plans to develop a new $US3.65 billion nickel and cobalt refinery. The project has State and federal environmental approvals but remains on hold. | www.gladstonepacific.com.au | R7 100 - Gladstone steel plant project | Boulder Steel proposes construction of a $1.8 billion steel plant to be developed in two stages. It plans to produce 2.5mtpa of billets, blooms and slabs as the first stage of the project, followed by a second stage expansion to 5mtpa. | www.bouldersteel.com.au | R7 101 - Moranbah ammonium nitrate project | construction work is well advanced for Incitec Pivot Limited subsidiary Dyno Nobel’s new $935 million ammonium nitrate manufacturing plant, to begin production early 2012. | www.incitecpivot.com.au | M4
102 - Orica chemical plant | this site produces about 560,000 tonnes of ammonium nitrate products annually for the mining industry as well as 95,000 tonnes of sodium cyanide and about 9000 tonnes of chlorine and associated products. | www.oricaminingservices.com | Q7 103 - Parkhurst magnesia plant | about 700,000 tonnes of magnesite is processed annually at this Queensland Magnesia facility to produce more than 300,000 tonnes of high-grade deadburned, electrofused and calcined magnesia products. | www.qmag.com.au | P6 104 - QAL refinery | Queensland Alumina Limited (QAL) is one of the world’s largest alumina refineries, producing about 3.95mtpa of smelter grade alumina. | www.qal.com.au | R7 105 - Queensland Nitrate plant | a joint venture involving Dyno Nobel and CSBP (Wesfarmers), this facility is designed to produce 180,000 tonnes per year of ammonium nitrate. | www.dawsonvalley.net/QNP/ | O8 106 - Yarwun alumina refinery | construction is well advanced in a $US1.9 billion expansion project to more than double alumina production to 3.4mtpa from 2012 at this Rio Tinto Alcan-owned plant. | www.riotintoalcan.com | Q7 Liquefied natural gas projects 107 - Abbot Point LNG plant | Energy World Corporation proposes to establish a $US500 million 0.5mtpa LNG plant. The proposal includes development of a 350km pipeline to the Bowen and Surat basins, at a cost of about $US388 million. Subsequent phases could link the project to the Gilmore and Eromanga gas fields. Production would increase to 2mtpa in a second stage. | http://energyworldcorp.com/index.html | N1 108 - Arrow LNG Plant Project | Arrow Energy, acquired by Shell-PetroChina in 2010, plans to develop a 16mtpa LNG facility at Gladstone to be supplied by its coal seam gas reserves in the Bowen and Surat basins. This project was formerly known as the Shell Australia LNG Project. | www.arrowenergy.com.au | Q7 109 - Australia Pacific LNG project | Australia Pacific LNG, a joint venture between Origin Energy and ConocoPhillips, has State and federal environmental approval for a $35 billion liquefied natural gas project. The project involves further development of coal seam gas fields in the Surat and Bowen basins, construction of a 450km pipeline and a multi-train LNG plant with capacity of up to 18mtpa. First exports are scheduled for 2014. | www.aplng.com.au | Q7/P8 110 - Gladstone LNG project | LNG Limited proposes to develop an LNG plant at Fisherman’s Landing, Gladstone, with first cargo expected in 2013. It is continuing efforts to source gas supply for its first two proposed LNG trains, each with a capacity of 1.5 million tonnes per annum. | www.lnglimited.com.au | R7 111 - GLNG project | this $16 billion liquefied natural gas project was approved early this year, with first exports expected in 2015. It includes the development of coal seam gas (CSG) resources in the Bowen and Surat basins, construction of a 420km pipeline and two LNG trains with a capacity of 7.8mtpa. GLNG is a joint venture between Santos and three of the world’s largest LNG companies – PETRONAS, Total and KOGAS. | www.glng.com.au | R7/N8 112 - Queensland Curtis Liquefied Natural Gas (QCLNG) project | this $15 billion project was approved late last year, with first exports expected in 2014. The first phase of this BG Group project includes the development of a two-train liquefaction plant with a capacity of 8.5mtpa, related wells, field facilities and pipelines. | www.qgc.com.au | R7
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INDUSTRY UPDATE COAL AND GAS
$90b LNG supply contract Australia Pacific LNG has signed a $90 billion contract with China’s Sinopec Corporation to supply up to 4.3 million tonnes of LNG per annum for 20 years from its planned facility at Curtis Island, Gladstone. The parties also signed a subscription agreement giving a Sinopec subsidiary a 15 per cent interest in Australia Pacific LNG, reducing the interest of project partners ConocoPhillips and Origin Energy to 42.5 per cent each. Origin Energy managing director Grant King described the deal as an important milestone in the development of the Australia Pacific LNG project and said it represented the largest LNG supply agreement in Australian history by annual volume. First cargo is expected to be delivered to Sinopec in 2015.
Japanese sales deal BG Group has signed an agreement with Chubu Electric Power Co. for the long-term supply of liquefied natural gas (LNG) to Japan. Chubu Electric has agreed to purchase up to 122 cargoes over 21 years from 2014, to be supplied from BG Group’s global LNG portfolio - including the Queensland Curtis LNG (QCLNG) Project under development in Gladstone. BG Group executive vicepresident Catherine Tanna said the agreement built on the already close and productive relationship between Chubu Electric and BG Group.
New Bowen Basin gas link Arrow Energy plans to build a major pipeline to connect its operations in the Bowen Basin to an LNG facility at Curtis Island, off Gladstone. Early details of the Arrow Bowen Pipeline are contained in an Initial Advice Statement (IAS) submitted to the Queensland Government. Arrow Energy chief executive officer Andrew Faulkner said the pipeline was part of the Arrow LNG Project, which would bring CSG from both the Bowen and Surat basins to Gladstone, where
May 2011 |
it would be cooled and liquefied for shipping to international markets. “The IAS outlines a preferred route based on minimising impacts on the environment, on landholder activities and on communities in the area,” Mr Faulkner said.
$50m Roma pipeline upgrade APA Group has started design and procurement work for a $50 million expansion of its Roma Brisbane Pipeline. The capacity of the pipeline will be increased by about 10 per cent as a result of this project, scheduled to be completed in the second half of 2012. This expansion will involve the installation of an additional compressor at Dalby, duplication of a 6km section of the Roma Brisbane Pipeline and works which will allow the pipeline operating pressure to be increased. APA Managing Director Mick McCormack said the additional capacity had been substantially contracted under long-term transportation agreements with an energy retailer and a major industrial gas user.
INPEX drops harbour blast plan The final environmental impact statement for the Ichthys LNG Project has been delivered to the Australian and Northern Territory governments for assessment. INPEX president director Australia Seiya Ito said the statement addressed community concerns over key aspects of the proposed development. Changes made as a result of this process included dropping plans to blast a ridge of hard rock in the Darwin Harbour and reducing the overall dredge volume by one million cubic metres. The company has since welcomed the NT Government’s endorsement of the project and is awaiting Federal Government approval.
Codrilla next off starter’s block Macarthur Coal has selected the Codrilla coal deposit, about 30km east of the company’s Moorvale operation,
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as its fourth mine project. The new operation is expected to produce about 3.2 million tonnes per annum of low-volatile pulverised coal injection product for export via Dalrymple Bay Coal Terminal. Macarthur Coal chief executive officer Nicole Hollows said the announcement on the Codrilla project underpinned the company’s aim to produce 9.2mtpa by 2014.
Rail expansion approved QR National has approved a $185 million expansion of the Goonyella coal rail network to support growth at the Hay Point Coal Terminal, near Mackay. QR National’s Goonyella System Expansion 140 Project will provide an additional 11 million tonnes per annum (mtpa) capacity on the Goonyella network, taking it to 140mtpa. The rail expansion will support a project by BHP Billiton Mitsubishi Alliance to lift the capacity at Hay Point Coal Terminal and is due to come online in early 2014.
Anglo awards $144m contract John Holland has secured a $144 million mining services contract with Anglo American Metallurgical Coal. The three-year contract covers services at the Lake Lindsay and Oak Park open-cut operations near Middlemount, in central Queensland. They include mine planning and scheduling, drill and blast, truck excavator waste removal and coal mining. John Holland will move 10-15 million cubic metres of overburden each year over the full term of the contract.
Upgrade for Eagle Downs Aquila Resources has announced an upgraded reserve statement for the Eagle Downs Hard Coking Coal Project, south-east of Moranbah. The studies to date are proposing an underground mine with a projected life of 47 years from a single longwall. An expansion case is being considered to introduce a second longwall to further increase production. The project has a total resource of 959
The Mining Advocate
million tonnes, with the proved and probable reserves increasing from 157 million to 254 million tonnes of run of mine coal.
Broadmeadows extension job BHP Billiton Mitsubishi Alliance (BMA) and Bechtel have awarded Leighton Contractors a $148 million contract for extension works at the Broadmeadow mine, near Moranbah in central Queensland. The Broadmeadow Sustaining Operations Project involves the extension of an existing open pit to provide access for underground works. Leighton’s contract covers 8 million cubic metres of earthworks and 12,000 cubic metres of concrete works as well as the construction of associated infrastructure including access roads, dams and drainage, conveyor footings and gates. The project is due for completion in 2013.
Meteor Downs lease application Endocoal has lodged a mining lease application for its proposed Meteor Downs South mine, located near Xstrata’s Rolleston operation in the south-west of the Bowen Basin. Located in the Orion Downs tenement, the Meteor Downs project is expected to produce 1.5 million tonnes per annum of a direct shipment thermal coal product. Endocoal said exploration drilling indicated that the coal had a low ash and sulphur content, and so would not require washing before despatch to market.
Training mine plan Recruitment and labour hire firm Humanis Group has acquired a 49 per cent interest in Springsure Mining, which plans to construct a training mine on its central Queensland tenement. The facility would be established alongside development of an underground thermal coal mine.
Contact RUSSELL HOCKINGS www.hastingsdeering.com.au
INDUSTRY UPDATE HARD ROCK
The Mining Advocate | May 2011
Baal Gammon copper deal Kagara has reached an agreement with Monto Minerals to mine and process the Baal Gammon copper deposit in North Queensland. Kagara aims to begin mining and processing ore by October 2011, subject to receiving necessary approvals within that timeframe. Ore will be trucked to the Mount Garnet copper plant for processing, where it will be blended with highergrade copper ore sourced from Kagara’s flagship Balcooma deposit. For the exclusive rights to mine and process all minerals at Baal Gammon, Kagara will pay Monto $6 million on settlement as well as some royalties on ore processed.
Fresh look at Roseby Altona Mining has launched a fresh definitive feasibility study at its Roseby copper project, north of Cloncurry. The company describes Roseby as one of Australia’s largest undeveloped copper resources, with a total resource of 132.5 million tonnes at 0.68 per cent copper and 0.06g/t gold. The project’s fundamentals had changed since a positive definitive feasibility study was completed in late 2009, Altona said. It aims to complete the new study by early 2012.
Bringing Leichhardt back to life Cape Lambert Resources has started diamond drilling at the Leichhardt copper project, about 100km northnorth-east of Mount Isa, to investigate the potential to treat underlying transition ore at the Mt Watson open pit through the existing copper cathode plant. Cape Lambert acquired the project in 2010 after previous operator Matrix Metals was placed into administration in late 2008. Cape Lambert executive chairman Tony Sage said the transition mineralisation at Mt Watson provided an excellent opportunity to define a significant amount of heap-leach recoverable copper.
“This combined with the existing plant and the copper still sitting in the leach pads could potentially allow for a rapid restart of operations at the Leichhardt project at this time of record spot copper prices,” he said.
Bauxite Hills moves forward Cape Alumina has finalised access agreements with traditional land owners for the company’s proposed Bauxite Hills mine and port project north of Weipa, clearing the way for a largescale exploration and drilling program to begin later this year. Cape Alumina said a concept study completed earlier this year showed that the Bauxite Hills project was robust and could potentially yield 50-100 million tonnes of dryproduct bauxite, which would viably sustain a 15-year export operation.
Wolfram Camp sale Planet Metals has announced the sale of its subsidiary, Wolfram Camp Mining, to German resources company Deutsche Rohstoff AG, for $7 million in cash and shares. Wolfram Camp Mining has an 85 per cent interest in the Wolfram Camp tungsten-molybdenum project, west of Cairns which is on care and maintenance.
Sands project progresses Metallica Minerals subsidiary Oresome Australia has begun the permitting and statutory approval process for its Urquhart Point Heavy Mineral Sands Project about 5km south-west of Weipa on Cape York. The company recently released draft terms of reference for the project’s environmental impact study , together with its initial advice statement. The project will involve the production of a zircon and rutile concentrate for export and possibly domestic markets.
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Pajingo production boost Conquest Mining has boosted production at the Pajingo gold mine in North Queensland, reporting a 76 per cent increase to 14,176 ounces in the March quarter along with a drop in operating costs. Similar production levels were forecast for the current quarter, the company said. In addition, Conquest reported that underground development of 526m was achieved in March - a record since the mine was owned by Newmont in 2008. Conquest assumed ownership of the Pajingo gold mine in October last year after taking over North Queensland Metals. It plans to increase production to at least 70,000 ounces in the financial year to June 2012.
Rocklands offtake deal CuDeco has secured an off take agreement with cornerstone investor, the Hong Kong-based China Oceanwide investment and resources group. China Oceanwide has agreed to purchase a minimum of 60 per cent of the total product from CuDeco’s Rocklands copper project, outside Cloncurry. CuDeco has the right to sell the entire production to China Oceanwide, or sell the remainder on the spot market to benefit from fluctuations in copper, gold and cobalt prices. “We have a majestic project, the Rocklands project - we didn’t need to compromise and we didn’t,” CuDeco chairman Wayne McCrae said. Oceanwide is already a substantial CuDeco shareholder and is expected to hold 19.9 per cent of total shares when the new arrangements have been finalised.
Zinc development plan Xstrata Zinc is investigating a proposal that would see McArthur River Mine
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in the Northern Territory lift output to about 5 million tonnes of ore per year, producing 800,000 tonnes of bulk zinc/lead concentrate. The $900 million integrated development plan involves an increase in mine production at MRM, the installation of proprietary hydrometallurgy technology in Xstrata Zinc’s San Juan de Nieva smelter in Spain and Nordenham smelter in Germany and, potentially, further improvements in the Brunswick Lead Smelter in Canada. Xstrata Zinc Australia chief operating officer Brian Hearne said the decision to proceed was subject to the outcomes of ongoing feasibility studies and associated technology trials in Europe as well as an environmental assessment for MRM.
Big Wet hammers ERA A prolonged period of above-average rainfall has forced Energy Resources of Australia to keep its processing plant offline at Ranger mine until late July. The company suspended processing operations at the Northern Territory mine in late January to help ensure that levels in the Tailings Storage Facility (TSF) remained below the authorised operating limit throughout the wet season. At that time, the suspension was expected to be for a period of 12 weeks. “Whilst the water level in the TSF is below the authorised operating limit, the total process water inventory at Ranger has recently exceeded the level at which operations are able to recommence,” ERA stated in April Mining operations in the Ranger pit have also stopped due to ponded water. The company recently approved an $80 million investment to conduct a feasibility study on the installation of a brine concentrator with the capacity to treat up to 1.8 Gigalitres of process water per year, and for the procurement of long lead time items required for the project.
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BETWEEN SHIFTS
May 2011 |
Mount Isa Mining Expo buyer and supplier networking dinner
The Mining Advocate
PHOTOS: Roslyn Budd
Lake Moondarra, Mount Isa
Fanny Fontes (Duratray) with Peter Barker (Mercedes Benz).
Jeanenne Morgan (Xstrata Copper), Amber Liddle (Legend) and Georgie Reeves (Legend).
Rob Marten (Deltaflex) with Dan Fedder (Xstrata Copper).
Michael Thinee (Skytrans) with Kerry Williams and Dwayne Vale (Cairns Taipans).
Nigel Harper (Tyco), Arthur Saunders (MPE) and Robin Lenz (A Manâ&#x20AC;&#x2122;s Toyshop).
Brett Peterson, Chris Low, Rob Winter, Saul Holbeck and Trevor Conn (all Mount Isa Mining Supplies).
Engineers Australia Townsville Gen2X networking night
PHOTOS: Stewart McLean
Dancenorth building, Townsville
Carson Care and Bec Laing (both from Ergon Energy).
Robyn Stoney (QN) and Chris Eastaughffe (The Private Group).
Jill Parsons (Project Services) with Leigh-Ann Metcalfe (North West Queensland Primary Health Care).
Bill Hutton and Owen Carter (both from LCJ Engineers).
Jo Prego (Townsville City Council) with Ces Johnstone and Daniel Hansen (both from LCJ Engineers).
Erwin Van Wyk (Ergon Energy) and David Hunter (QN).
BETWEEN SHIFTS
The Mining Advocate | May 2011
North Queensland Mining, Processing and Energy Conference
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PHOTOS: Stewart McLean
Rydges Southbank Convention Centre, Townsville
Lance Moody and Keagan Chrisnall (both from Sun Metals).
Barry Coonan and Tania Strixner-Harvey (both QN).
John Milsom (MMG Central) and Craig Setch (Setch Design).
Phil Begley with Anthony Kikkert (both from Clements).
Rob Piper (Hatch) and Ros Dalton (QN).
Marcel McLeod (Total Fab) and Ronald McCullough (Regional Development Australia Townsville and North West Queensland).
AusIMM North Queensland Branch working lunch
PHOTOS: Stewart McLean
Mercure Inn, Townsville
Alan Johnson (QN) and Gerrish Burstow (Incitec Pivot).
Jim Bournas (Pacific Marine Group) and Townsville Mayor Les Tyrell.
Clive Carter (Hatch) and Stuart Moore (Mantle Mining).
Brad McNeice and Steven Deon (both from AECOM).
Travers Davies, Simon Beams and Tim Beams (all Terra Search).
David Wright (QN) and Colin Braganza (Hatch).
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MAJOR PROJECTS
The Mining Advocate | May 2011
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Xstrata adds to copper empire Ore from newly acquired Cloncurry tenements will boost production at the neighbouring Ernest Henry Mining operation. Xstrata Copper has entered into an agreement with Exco Resources to acquire its Cloncurry Copper Project for $175 million, with plans to start production next year. The move would allow Xstrata to step up production at its Ernest Henry Mining operation, which lies within 22km of key Cloncurry Copper Project deposits. Ore would be trucked from the E1 and Monakoff sites to Ernest Henry and processed through the operation’s existing concentrator. Xstrata Copper North Queensland division chief operating officer Steve de Kruijff said the development and operation of the E1 and Monakoff copper projects would create about 100 full-time jobs. Some of the required personnel would be sourced from Xstrata’s existing workforce, he said. “Ernest Henry’s open-pit operations are scheduled to finish later this year and we are currently in the process of transforming the site into a major underground mining operation with an associated magnetite extraction plant,” Mr de Kruijff said. “The E1 and Monakoff copper projects offer an attractive opportunity to expand Ernest Henry’s expected production profile by utilising the remaining capacity of the Ernest Henry concentrator while leveraging other significant synergies available through our existing site infrastructure, equipment and workforce. “Subject to the transaction
Steve de Kruijff Xstrata Copper North Queensland chief operating officer
completing and the necessary government approvals, we expect initial production from the E1 and Monakoff copper projects to commence in the second half of 2012.” The transaction remains subject to a number of conditions being satisfied, including Exco shareholder approval, with a vote expected in early June. The Exco Board has endorsed the transaction; however nonexecutive director Peter Reeve – who is managing director and chief executive officer of Ivanhoe Australia – excused himself from deliberations on the sale. Ivanhoe Australia issued a public statement that “no assumptions should be made as to how Ivanhoe will vote its 22.8 per cent shareholding in relation to Exco’s proposed transaction.”
Exco says the Cloncurry Copper Project sale will leave it well funded for a major program of drilling and test work at its Hazel Creek copper gold project, 90km north of Cloncurry, where results have shown the existence of large areas of copper-gold-
magnetite mineralisation. The company holds an additional 2400sq km of highly prospective exploration tenements in the Cloncurry region, including the Pumpkin Gully Projects. The E1 and Monakoff
tenements are located 8km east and 21km south respectively of the Ernest Henry Mining operation. They have a combined JORC compliant resource of 52.1 million tonnes containing 401,000 tonnes of copper metal and 384,000 ounces of gold.
The E1 Camp within Exco’s Cloncurry Copper Project, with the Ernest Henry Mining operation’s overburden dumps visible in the background.
Edging closer to Paradise Legend International Holdings is edging closer to a start for its Paradise Phosphate Project with the granting of a key mining lease. The Queensland Government recently approved Legend’s lease for the Paradise North deposit, north-west of Mount Isa - the first of a raft of sites the company plans to mine under its fertiliser project. Project manager Ed Walker said the company was likely to await approval for the construction of the planned fertiliser complex near the Mica Creek Power Station at Mount Isa before launching mining activities. Legend submitted its development application for the plant in March and hopes to begin construction early next year, subject to gaining approval and financing. A shortlist of potential development partners were conducting site visits and conducting due diligence, Mr Walker said.
Recent findings from an expanded feasibility study have confirmed the technical and economic viability of doubling the Paradise Phosphate Project’s proposed output to 1.2 million tonnes per annum of mono-ammonium phosphate (MAP) and di-ammonium phosphate (DAP). “The expanded case definitely shows a good return for the project,” Mr Walker said. “It’s now a matter of working with our equity partners to determine the best project development scenario, whether it be the base case, the expanded case or a staged development.” In a statement to the market in April, Legend said it expected successful completion of financing talks, resulting in the partnering with a major fertiliser industry corporation, in the coming months. A number of global aluminium producers have also expressed interest in securing the offtake of Legend’s aluminium fluoride production from the Mount Isa plant.
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EXPLORATION AND DRILLING
May 2011 |
The Mining Advocate
Time to break down barriers Metallica Minerals managing director Andrew Gillies threw the spotlight on impediments to mineral exploration in Queensland during his appearance at a recent industry forum in Townsville. Stressing the importance of exploration to the continued health of an industry that generates about $50 billion annually for the State’s economy, he has called for governments to reduce the barriers and increase incentives for this activity. His own company made an exciting discovery of scandium (a rare earth metal) in North Queensland last year which will now form an integral part of the NORNICO project, expected to come online in 2014. Mr Gillies spoke to The Mining Advocate recently on what he sees as the burning issues for explorers. Q: You began your career as a geologist with BHP in the 1980s and formed Metallica
Minerals in 1997 - what changes have you witnessed in that time regarding the environment for exploration in Queensland? AG: Generally, historically the major impediment to exploration was just commodity prices and investment cycles. But in the mid ’90s Native Title became a real issue and, to a lesser extent, it is still there today. However it is now one of many hurdles to exploration. In last few years there has been a series of badly impacting policies and decisions – new land access laws, Wild Rivers policy, tenement fee hikes, the proposed strategic cropping land policy and seemingly everincreasing regulations, compliance and general cost of doing business. In the benchmark Fraser Institute survey in 2007, Queensland was listed eighth as a world preferred destination (for exploration investment). Now, in 2011, it is 38th – next to countries we would not have imagined several years ago – Queensland is losing ground. Q: What prompted you to use your presentation at the NQ Mining, Processing & Energy conference to highlight impediments to mineral exploration in Queensland? AG: Well, it really started with debate over a flow-through share scheme or exploration tax credits – but that is really a Federal Government issue to help the exploration sector. That is still on our wish list, but the more pressing and greater effect stems from state issues - particularly land access (which is increasingly difficult and large areas are being effectively sterilised from exploration) - by bad or misguided policy decisions, mostly for political reasons. If you make land access too hard, there is no shortage of prospective regions in the world with a welcoming work environment. Companies will cease greenfields exploration and just focus on brownfields exploration.
Metallica Minerals managing director Andrews Gillies speaks at the North Queensland Mining, Processing & Energy Conference in Townsville. Photo: Stewart McLean
Q: What must change to improve the environment for exploration? AG: The State Government should stick with tried and proven project-specific Environmental Impact Statement (EIS) processes to scientifically deal with all issues and mitigation measures. On a federal level, definitely policy such as a flow-through share scheme. Exploration is like R&D, very high risk juniors are disadvantaged over larger companies that are already producing and can offset exploration costs on production. Most greenfields exploration is done by small companies. The idea of exploration tax credits was costed by the Liberal Government – that would make a big difference. But for us explorers, making prospective land available for exploration is the most critical issue. Q: What can industry groups or individual companies do? AG: We all need to promote our industry better – politically and locally, on
a community level. We are being hard done by - we are the good guys. There is also a need to lobby governments and at times be prepared to “take on” government as a united industry with its stakeholders (as successfully happened with the Resource Super Profits Tax threat). The resource sector must have a voice and promote itself to keep mining and Australia strong and to enhance growth and job opportunities - we cannot afford to take anything for granted. Q: What will the cost be to future industry if such changes are not made? AG: Investment and human resources will go elsewhere, to competing countries. Many now are favoring countries like Chile, PNG, Mexico and Botswana over Queensland or Australia generally. The major impact will not be noticed immediately, but certainly in two to five years’ time. Particularly in the minerals sector for greenfields exploration it feels like something vital is being gradually lost.
Investigating fresh frontiers A Townsville Enterprise-commissioned study conducted by James Cook University has highlighted mining opportunities in the North East Minerals Province. JCU senior lecturer in structural and economic geology, Dr Tom Blenkinsop, said the study applied frontier technology to locate new resources. Using prospectivity analysis to explore
the presence of unknown resources in the region, the study pointed to small untapped zinc, gold, magnetite and silver resources as well as large copper resources. Townsville Enterprise general manager of economic development Ross Contarino said the new mineral province held the promise of significant economic activity for the region.
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MAINTENANCE
The Mining Advocate | May 2011
17
Keep those big wheels turning As supply shortages impact industry, a key manufacturer offers some advice to extend tyre life on the work site. Most contractors, mines and quarry operators in Australia would now be aware of the impact of stretched global tyre supplies, says Bridgestone Earthmover Tyres senior manager - engineering services Paul Comninos. This problem would not go away in the medium term, so it was essential that they took steps to manage their tyre use and quickly develop processes to maximise tyre life, he said. “The alternative will be standing down equipment if no replacement tyres can be sourced,” Mr Comninos said. At a minimum, all contractors running mid-to-large sized wheeled machines should understand standard tyre maintenance practices such as correct pressure maintenance and tyre rotations, Mr Comninos said. It was also very important to understand daily production practices which could have a great effect on the consumption of tyres. Mr Comninos said the two key approaches to increasing tyre life were: • Using existing potential through measures such as reducing cut damage, repairing cut-damaged tyres and operating tyres within their capabilities. • Increasing potential life through measures such as improving operating surfaces, better road design, imposing speed limits according to conditions and optimising tyre selection. While it was possible to effectively repair tyres that had
been quite badly damaged, timely removal of cut-damaged tyres for repair would keep costs to a minimum and help gain maximum life from the tyre, Mr Comninos said. “In the case of damage to the tread area, a tyre should be removed for repair when separation on the top belt occurs, or when the belts have been penetrated,”he said. “Damage to the sidewall area requires removal for repair once the steel ply is visible.” Ensuring tyres were operated within their capabilities was critical to gaining maximum life. “Apart from cut damage caused by sharp rocks and rubble, heat is the great enemy of tyres,” Mr Comninos said. “Tyres that are consistently overheated will break down and fail well before their maximum life. In the past, many construction and quarrying operations have chosen to overwork their tyres, happy to trade off shortened tyre life in return for higher productivity. “However, today, with the likelihood of tyre shortages requiring equipment to be stood down, this philosophy needs to be reconsidered. “The prime indicator of a tyre’s capability is the TKPH (tonne/ kilometres per hour) rating. Each earthmover tyre has a TKPH rating; if it is operated consistently above this, premature failure will result.” When it came to mine sites, Mr Comninos said most operations had personnel dedicated to standard tyre maintenance
practices. “However, they are often not in a position to influence daily production practices, which have a far greater effect on the consumption of tyres,” he said. “To maximise returns on tyre investment, and thus minimise the impact of tyre shortage, the mindset of tyre preservation now needs to permeate all levels on the mine site, from middle management to mine planners to truck and loader operators.” Bridgestone Earthmover Tyres offers site-specific tyre management services.
Tyre care has become a priority due to tight supplies in the heavy equipment market.
Refinery fleet gets a lift Queensland Nickel (QN) recently accepted delivery of eight mobile cranes, giving the North Queensland operation the capacity to manage its own heavy lifting requirements. The cranes will be used mainly for maintenance and project work including shutdowns at the Yabulu refinery site outside Townsville and at the port as required. They include two 100-tonne Terex Demag
AC100-4L all-terrain cranes, two 40-tonne Terex AC40/2L all-terrain cranes, three 20-tonne Frannas and one 15-tonne Franna. “The purchase is part of QN’s business strategy of in-sourcing its maintenance capability and resourcing since being purchased by Professor Clive Palmer in mid2009,” a company spokesman said.
QN has purchased eight mobile cranes for maintenance work.
Photo: Stewart McLean
Australia
18
PROCESSING
May 2011 |
The Mining Advocate
Boyne extension taking shape Work under way at this central Queensland aluminium plant will bring environmental gains and take the operation out to 2029. Rio Tinto Alcan’s $685 million overhaul of the Boyne Smelters plant outside Gladstone has reached the three-quarter mark, with work on schedule for completion early next year. Key elements of the extension project include an upgrade to the smelter’s crane rails and cranes, improvements to alumina handling equipment and construction of a new carbon bake furnace. A Rio Tinto Alcan spokeswoman said the project had passed a number of important milestones during 2010 including completion of the concrete works for Carbon Bake Furnace 4 (CBF4), commissioning of the first eight crane tending assemblies and installation of the Automated Alumina Distribution System (AADS) in reduction line 1.
The spokeswoman said work on reduction lines 1 and 2 was expected to be completed in October this year and the first anode was expected from CBF4 in February 2012. Monadelphous, Downer, United Group and Andreco Hurl are the main contractors undertaking the work, which will extend the life of the smelter to 2029 and help pave the way for future works to boost production. A 400-strong project workforce was on site in early May, with numbers expected to peak around 450 in June through to September this year. The plant – which produces 560,000 tonnes of aluminium annually - is majority owned by Rio Tinto in joint venture with Comalco, SLM, Ryowa Development, YKK Aluminium
and Sumitomo Chemical. The extension and modernisation work will bring environmental gains, with the new carbon bake furnace expected to help cut greenhouse gas emissions by more than 20,000 tonnes per year. “In July 2010, we commenced a building project to replace Carbon Bake Furnace 1 and 2, with the ultimate aim to improve long-term environmental performance,” the Rio Tinto Alcan spokeswoman said. Carbon Bake Furnace 4 would use less gas than CBF 1 and 2, as well as adopting a smarter and cleaner burn cycle. “All these significant improvements in the carbon bake functionality will ultimately support us in achieving our vision of burning all volatiles within the bake, with zero visible emissions to air,” the spokeswoman said. She said Carbon Bake Furnace 3 was being rebricked in a separate project. The introduction of the Automatic Alumina Distribution System (AADS) to reduction lines 1 and 2 would also cut particulate, fluoride and other
emissions, the spokeswoman said. “While air emission improvements are still to be validated, visible emissions within the reduction lines have already improved,” she said. She said the new system was based on a supply-on-demand concept, which ensured a continuous flow of enriched alumina to the reduction cells.
“The AADS transports alumina by several conveyors along the reduction line from the 750-tonne day bins,” she said. “A take-off chute and air slide then feeds alumina to each cell, keeping the hoppers full. This removes the need for cranes to load alumina into cells manually, reducing the potential for dust to escape.”
How it works – alumina to aluminium Alumina is transported to Boyne Smelters from Queensland Alumina Limited along a 10km conveyor system. To convert alumina powder to primary aluminium, an electrolytic reduction reaction known as the Hall-Heroult process is carried out. The aluminium is produced in electrolytic reduction cells housed in 1km long reduction lines. Alumina is fed into the cells and dissolves in a bath of molten cryolite (sodium aluminium fluoride). An electric current is passed through carbon anodes suspended in the bath, causing the oxygen in the alumina to separate and to combine with the carbon of the anodes. The carbon anodes used in this process are made on site in the carbon baking furnaces. Aluminium settles to the bottom of the reduction cells as molten aluminium, which is siphoned off and transferred to the metal casting facility.
QN invests $50m in upgrades
The Automated Alumina Distribution System (AADS) installed in the first reduction line during 2010.
Queensland Nickel (QN) plans to spend $50 million on capital works projects for its Yabulu refinery and Townsville port facilities in 2011/12. Starting in June, the earth walls of Tailing Pond 2 at Yabulu will be raised 3.5m to provide increased storage capacity. QN is also launching an engineering design study to extend the capacity of its water recycling facility and is investigating options to expand or duplicate the on-site water purification plant. Meanwhile tenders will be issued in June for an additional gantry crane for QN at the Port of Townsville. “QN’s strategy of increasing the volume of ore
importation will require an expansion of the ore stockpile facilities inside the Port of Townsville precinct from 15-20,000 tonnes to 50,000 tonnes,” a QN spokesman said. QN recently initiated a nickel hydroxide concentrate supply agreement with Vale from the Goro nickel plant in New Caledonia. The company is hopeful of securing a longer term agreement, which would allow the restart and partial operation of Yabulu’s second calciner line - utilising the additional capacity developed during BHP Billiton’s period of ownership. QN is also negotiating the purchase of two ore carriers (vessels).
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TRAINING AND APPRENTICESHIP SERVICES SKILL360 Skill360 Australia in an industry-based organisation that works with businesses of all sizes to recruit apprentices and also re-train existing staff. Our focus is on allowing businesses to grow by allowing their staff to be the best that they can be. As a government-endorsed Group Training Organisation (GTO) and Registered Training Organisation (RTO) we are able to help business work their way through the complex government paperwork and also access government subsidies - we make apprentices easy.
20
ADVANCE CAIRNS
May 2011 |
The Mining Advocate
Combine to meet the giant sector gives us an opportunity to provide labour and services to this industry. However, one of our big risks is over-promising and underdelivering.” The demand in the resources sector for labour was greater than either the North or the far North could meet individually, said Mr Doutre, who emphasised the opportunity could better be met with a combined force. “At the moment we have
Resource sector growth presents strong opportunities, but local regions must avoid ‘under-delivering‘ says a workforce expert. Townsville and Cairns need to jointly market themselves to adequately meet the demands of a mining industry whose members, in some cases, have a turnover larger than the GDP of small countries. That’s the word from far North Queensland’s Peter Doutre, who is no stranger to large numbers. As manager for Centrelink in North Queensland he was responsible for the distribution of more than $2 billion a year to more than 400,000 people, ranging from new mums to disability and old-age pensioners.
Mr Doutre has been keeping a close eye on mining since being appointed 18 months ago as one of 20 local employment co-ordinators assigned to help get people back to work in areas of high unemployment. “The strength and speed of the mining industry comeback since the GFC (Global Financial Crisis) has been a welcome surprise,” he said. “We need to get our act together a lot quicker to ensure that we can supply a skilled workforce for the mining industry as it grows. Cairns understands the need to diversify
Cairns local employment co-ordinator
Promising market for mine equipment and services
the economy and insulate it from boom and bust cycles. Capitalising on the growth in the mining
The Indonesian market holds considerable promise for Queensland businesses in the
Peter Doutre
Austropex targets Indonesian trade Austropex is working to open doors in Indonesia for North Queensland businesses with skills, products and services suited to that nation’s mining industry. Formed to develop and market Australian tropical expertise, Austropex used the recent OZMINE tradeshow and conference in Jakarta to promote local capabilities. “The feedback we received was very positive and there was a large volume of interest in the capacity of North Queensland businesses to work offshore servicing Indonesian mines,” Austropex co-ordinator and Advance Cairns economic development manager, Jenny Compton, said. “The concept of tropical expertise was clearly a unique
and appealing point of difference for most clients. Austropex registered more than 126 genuine enquiries over the
218,000 people of working age in far North Queensland. If we combine the whole of the North, we collectively have 430,000 people of working age. That’s much more attractive to large employers with growing labour needs,” he said. The region also had a good base of training providers who could collectively meet many of the resource sector’s skill requirements, Mr Doutre said.
two days and we are currently following-up on a couple of potential business opportunities for the region.”
Austropex co-ordinator Jenny Compton at the OZMINE tradeshow.
Austropex mining members include education and training organisations, environmental auditors, engineers, scientists, surveyors, geologists, heavy machinery manufacturers, health professionals, charter flight businesses and occupational health and safety consultants. “North Queensland businesses have an opportunity to supply the Indonesian mining sector with specialist services and goods that have been invented or adapted to suit the tropical environment,” Ms Compton said. “They can build a competitive advantage over their southern rivals by demonstrating their products or services are uniquely tailored for the tropical environment and therefore offer greater efficiency, durability, lifespan and accuracy.”
mining equipment, technology and services (METS) sector, according to Townsville-based Austrade export adviser Brendan Coyne. Mr Coyne said Indonesia had experienced considerable mining growth in recent years, particularly in thermal coal production - where it had overtaken Australia in terms of export volume. A recent ABARE report identified Indonesia as Australia’s most important export market for the METS sector, he said. Mr Coyne recently returned from the OZMINE conference and exhibition in Jakarta, which included project updates from five key mining companies in the region – Newcrest Mining, Freeport, Agincourt Resources, Newmont Mining and Adaro Energy. He said Austrade’s Jakarta office included a staff member dedicated to the mining sector who could inform businesses about local trends and provide advice on entering the Indonesian market. For more information email brendan.coyne@austrade.gov.au.
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Managing director Michael Hagen said one of the company’s big breaks came with the $1 billion BHP Billiton investment in the Queensland Nickel (QN) refinery at Yabulu north of Townsville. The company formed a fabrication division and built a workshop at the Bohle in Townsville to facilitate that work, which included converting boilers from heavy fuel to gas. Offering engineering services over long distances has become a trademark for the company. EDMS Australia recently won a contract with Exxon Mobil to build two 500kl tanks at a facility in Sydney. The company is now tendering for further petroleum projects and others for the Navy through BAE Systems. “It takes time to get projects with companies like Exxon,” Mr Hagen said. “When we won the job, we won them over completely. Eventually they gave us a commendation for our safety systems. Exxon brought their people from Singapore to look at it. The difference with EDMS was a line of accountability that ran directly to the owners, said Mr Hagen.
Michael Hagen EDMS Australia managing director. “We are making our mark with our people, experience and dedication and bringing the work in on time and at the right price.” “If it’s right at the start, it’ll be right all the way through. At the end of the day that translates to more attention to detail. “Don’t skimp on the upfront engineering. That’ll translate to a more efficient rollout, resulting in a satisfactory outcome for everyone.” The business had grown markedly in the last 18 months, said Mr Hagen. “We are now a medium-sized business and we’re repositioning by making changes to our IT, HR and other processes,” he said.
22
LIVING REMOTELY
May 2011 |
The Mining Advocate
FIFO’s emotional roller-coaster Shifting between stints at remote worksites and family time brings its ups and downs, but there are ways to achieve a smoother ride. Moody miners and the impact on home life is emerging as the latest hot topic on the FIFO-focused website, Mining Family Matters. Website founder Alicia Ranford believes the work-home cycle of the FIFO (fly in-fly out) lifestyle can be a roller-coaster for miners in terms of their emotions. The excitement of coming home to family and friends for rest and recreation was often followed by low feelings in the lead-up to the return to work, she said. Many also struggled with the readjustment required to move between the very different worlds of family life and the mine site environment, she said.
Ms Ranford said allowing her mining engineer husband Joe some “space” in the form of a quiet day to himself when he first arrived home after his stint away helped him make the switch. “Then when the kids get home from school, he has had time to readjust and he’s back ‘on’ as a hands-on dad,” she said. Ms Ranford said she had previously felt angry at times over her husband’s grumpy moods, but good communication had helped her better understand the challenges involved. South Australian motherof-two Nicky Thomas, whose husband Daryl works a week on-
week off roster, is among those who have written on the Mining Family Matters chat forum about the issue. She finds the mood at home swings from elation on his first day home (when dad seems like a “super hero”) to frustration as the realities of the household routine kick in. “About mid-week is when things usually get tense,” she said. “I’m trying to keep the rules and routine as normal as possible for the kids and Daryl is in the mindset of; this is my week off, I should be able to sleep in/relax/ go slowly through the day.” Among her tips for dealing with the FIFO cycle at home are to focus on time management – with each partner being clear about what time they expect to get to themselves and what tasks they’d like to complete during the week together.
Connecting with others in the same boat was also important, along with good communication between partners, Ms Thomas said. Psychologist Angie Willcocks plans to cover the topic of mining mood swings in her June column for the Mining Family Matters site. (www.miningfm.com.au) She stresses the importance of trying to pinpoint the trigger for downward mood swings and tackling any negative thinking behind it. “Also, following on from this point, really examining
what about going away bothers him or her … is it that they are missing out on the kid’s milestones? Are they worried about their partner having an affair while they are away? Are they having problems with someone at work? Are they worried about their family needing them whilst away? Are they scared of flying?” she said. Ms Willcocks said also it was important to recognise when a pattern of “mood swings” may actually be depression or an anxiety disorder.
Marysel holds the key to good service Working as administration and accommodation officer for Sodexo at the busy Ernest Henry Mining village outside Cloncurry can be a real juggling act, as Marysel Charol can attest. Miss Charol’s first year in that role has co-incided with a major extension project at the Xstrataowned copper operation, placing extra pressure on the art of room allocation and other arrangements as construction teams swell the on-site workforce. However, the former Townsville real estate salesperson seems to have come through with flying colours, with her efforts earning Sodexo’s 2011 Spirit of Progress award for Queensland for her dedicated service. Miss Charol said she tried
to shuffle bookings to ensure any rooms with televisions and ensuites that became available were reallocated quickly to those who wanted those features, as well as taking the time to inspect the units where possible to check their condition. It is a big change from her former life in Townsville, but Miss Charol – who now lives in Cloncurry – says she loves it. “You have your bad days with 20 people waiting in line and others not happy about their room,” she said. “But ultimately it’s great. Everyone is really good. “What I like most about it is you get to meet a lot of different people out here and if you take the time to talk to them you can be surprised where they come from and what they do.”
Marysel Charol at work at the Ernest Henry Mining village.
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SAFETY AND RESCUE
The Mining Advocate | May 2011
23
Timing tweak for NT comp Half a dozen mine sites have already signed up for a Darwin-based rescue challenge entering its second year under a new format. Organisers have brought the Northern Australian Emergency Response Competition forward a month this year in hope of ensuring cooler conditions for participants. The event will be held in Darwin from Wednesday, August 17 to Sunday, August 21. “Heat stress is a very important factor to consider when planning the date,” Darwin Co-ordinators director Linda Young said. “The competitors are all kitted up and they are going the whole time.” The suggestion for an earlier date is among the feedback organisers have taken on board since Darwin Co-ordinators ran the inaugural Northern Australian Emergency Response Competition in 2010. It is a remodelled format, superseding the Northern Territory Mines Rescue Competition. Ms Young said she was very happy with the way the 2010
competition had been received and believed the style of event and philosophy of those behind it resonated with rescue teams. Ms Young said six operations had already confirmed they would field teams in 2011 – including BHP Billiton Cannington in Queensland; Xstrata’s McArthur River Mine, Energy Resources of Australia and Newmont Tanami in the Northern Territory; and Rio Tinto’s Argyle Diamonds and Panoramic Resources’ Savannah project in Western Australia. “We have had other teams express interest, but they haven’t confirmed yet,” she said. The venue for the 2011 competition was yet to be announced. Ms Young said the event was a “friendly” competition that provided participants with the opportunity to test their skills in areas including breathing apparatus, search and rescue, fire
Focus on road risk BHP Mitsui Coal (BMC) has contributed $50,000 to the Mackay Road Accident Action Group (RAAG), funding a part-time road safety co-ordinator position. BMC head of health, safety, environment and community Warren Pendlebury said road travel outside the mine site was identified as one of the higher risk activities for the company’s Bowen Basin workforce. “The work the passionate team at Mackay RAAG do to promote awareness and educate the community about the fatal four and prevent road incidents in our region is commendable,” Mr Pendlebury said.
fighting, road accident rescue, hazardous materials, rescue from heights and first aid as well as a theory element. It includes an optional underground rescue component in the lead-up to the main competition, with an induction and skills challenge to be held on August 17 and 18. Competing teams will be judged by a panel of expert adjudicators and scored on their level of skill, team work, efficiency and the success of the rescue. The McArthur River Mine team came out on top last year, with BHP Billiton Cannington placing second overall.
The McArthur River Mining team tackles the road accident rescue scenario in the 2010 Northern Australian Emergency Response Competition.
Joint effort on safety snags A new mining industry forum aims to help tackle the obstacles operations face in achieving top safety standards, particularly in smaller businesses. The inaugural Bowen Basin Safety Conference, organised by the Mackay Area Industry Network (MAIN), will be held at the Mackay Entertainment and Convention Centre on July 27. G&S Engineering Services chief executive officer Mick Crowe, a member of the conference organising committee, will lead a panel discussion on barriers to great safety performance for small or medium-sized enterprises (SMEs). “We want to get feedback from the audience during the day on the main things that are making it hard for them to deliver great safety,” Mr Crowe said. “We have a panel of senior people from within our industry who can then respond to those issues. “The intention is to develop a regular, interactive forum where the major industry players can look at standardisation in a bid to help address the issues that mining operations face day in and day out across the Bowen Basin.” Mr Crowe hoped the conference, which has a special focus on SMEs, would give participants an appreciation of the real benefits of adopting a positive approach to safety within their business. He believed it would help set some common expectations and provide tools to assist smaller
businesses to be more proactive in improving safety. “Here’s an opportunity to try to bring the whole Bowen Basin together and establish a shared understanding of what we’re trying to achieve,” Mr Crowe said. This was important, considering a firm like G&S, for example, would usually be working with a range of subcontractors and suppliers as well as the mining company involved on any given project. “To really get to a space where you can be confident nobody will be hurt, you need everyone to be involved - it’s not enough to just work at doing what you’re doing on your own,” he said. Queensland Employment, Skills and Mining Minister Stirling Hinchliffe is scheduled to speak at the conference, along with a range of industry experts. MAIN member services co-ordinator Karen McIntyre said organisers were extremely happy with the line-up of speakers who had agreed to be involved. “The most important thing that we wanted to ensure was that we had ‘buy in’ from all parties – that is representation at high levels of the mining companies, the major contractors and SMEs,” Ms McIntyre said. “That is very important so everyone can interact and collaborate to improve safety.”
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24
SHUTDOWNS
May 2011 |
The Mining Advocate
Monadelphous ready to roll A new Mackay-based operation with a focus on major maintenance projects is about to launch into a string of coalfields contracts. Monadelphous Group is gearing up for the first major shutdown to be run from its new multimillion-dollar Mackay workshop, with a 100-strong workforce recruited for the task. East coast general manager for Monadelphous Maintenance and Industrial Services Chris Tabrett said a further 50 workers were being recruited for a capital works project from July and that the company had recently secured a series of additional contracts in the region. The company’s purpose-built facility was officially opened in Paget last November to target work such as plant expansions and upgrades as well as maintenance contracts including shutdown services for draglines, shovels and coal preparation and handling plants. “For us it was a natural expansion to get a much stronger local presence to be able to provide the services that Monadelphous provides to companies such as BHP Billiton, Rio Tinto, Xstrata and Anglo American in other parts of the business,” Mr Tabrett said. “The feedback we were getting from customers was that there was a need to bring new contractors into the market to supplement the local available expertise in Mackay and the Bowen Basin.” The Mackay-based team’s first
major job is a coal preparation and handling plant shutdown for the BHP Billiton Mitsubishi Alliance (BMA) Peak Downs mine in June. Building a new management team had been the company’s
Mr Tabrett said customers were looking for responsiveness, flexibility and a “no surprise” approach. “That means providing detailed information on the cost of the project, delivering accurate information on schedule, and effectively identifying and responding to potential barriers or issues,” he said.
The new purpose-built Monadelphous Group facility at Paget, Mackay.
primary focus for Mackay to this point, Mr Tabrett said. “We have been recruiting some very experienced local people who have that Bowen Basin experience we’re looking for,” Mr Tabrett said. They include local manager Darren Wood, who was previously with BMA’s delivery improvement group. The 2200sq m complex at Mackay includes two 25-tonne capacity overhead cranes and one five-tonne overhead crane. “We also have a local fleet of mobile cranes ranging from 15 to 50 tonnes,” Mr Tabrett said.
Eion Muenzel and Matt James check out some safety equipment with instructor Ed Porter at Dawsons Training Division in Cairns. Photo: Romy Seigmann
One-stop shop for training needs Dawsons is rolling out a raft of new courses from May to allow participants to gain tickets for dogging, forklift, basic rigging, basic scaffolding, elevated work platforms and crane operation. Shutdown and maintenance specialists Dawsons Engineering identified the need for a “one- stop shop” to meet the training needs of both employers and employees and started delivering a range of nationally accredited courses and off-site inductions on behalf of their clients in 2008. The service means managers faced with the task of mobilising a work crew to complete a shutdown or other major project work can make one phone call and know those workers will arrive with all
prerequisite training and site-specific inductions complete, according to Dawsons training manager Robyn Van Rooye. It also assisted those trying to secure work on new sites to gain the additional qualifications required or update their training, she said. Demand has increased to the point where Dawsons now has three training rooms at the Cairns workshop, where the Dawsons Training Division delivers scheduled courses in confined space, working at heights, S123 and generic inductions. A number of Dawsons Engineering’s shutdown clients had authorised the training division to deliver their site-specific inductions, Ms Van Rooye said.
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HEALTH IN MINING
The Mining Advocate | May 2011
25
Shakes, rattles take their toll State Government ergonomist Trudy Tilbury discusses the hazards of whole body vibration and a new push to raise workplace awareness. A raft of new fact sheets and toolbox talk materials will soon be available across Queensland mine sites to help tackle the potential impact of whole body vibration on employee health. Senior principal ergonomist Trudy Tilbury from the Department of Employment, Economic Development and Innovation has been seeking workforce feedback to help finalise the package. “In the next few months there will be a DVD developed, as well as the fact sheets, and workers’ toolbox talks will also be available,” she said. Whole body vibration is energy, including jolting and jarring, transmitted through a supporting surface such as the seats of heavy equipment in a mining environment. Ms Tilbury said there was strong evidence of exposure to high levels of whole body
vibration leading to back disorders. It had been linked to other health effects as well, although these had not been as well proven, she said. The issue is among the top priorities for the Queensland Mining Health Improvement and Awareness Committee (HIAC) – a group including union, industry and DEEDI representatives. Ms Tilbury said the department had for some time recommended the publication Bad Vibrations as a guide for the mining industry. The release of a revised edition in 2009 had provided impetus for a range of seminars and other work to increase awareness throughout the industry in Queensland. Ms Tilbury said most major operations had used consultants to measure the vibration levels in mining equipment on sites. “This is best done by people
TIPS FOR OPERATORS • Understand what is being done about whole body vibration in your workplace. • Be aware of how mechanical issues/maintenance can affect vibration levels and report problems/changes with the machinery you operate through the appropriate channels. • Understand how seat adjustments work to reduce whole body vibration and adjust your seat correctly where possible. • Be aware of how vehicle control and speed can increase exposure to whole body vibration, particularly dangerous jolts and jars. • Be aware of factors in the work environment that can contribute - such as poor lighting during night work, rough roads and when blasting practices aren’t getting the right fragmentation consistency – and report problems through the appropriate channels.
DEEDI ergonomist Trudy Tilbury
who are extremely experienced in the measurement and understanding of whole body vibration, because there are so many different factors that contribute,” she said. “It’s probably better to also have someone from site involved who knows the situation and that site testing allows for a few different operators on the same equipment.” Contributing factors to high vibration measurements could include mechanical or maintenance issues with the machinery as well as operator skill and handling. “The experts in the area of whole body vibration have found that things like speed have a
significant effect,” Ms Tilbury said. She said also operators could have greater exposure to vibration if their seats were not adjusted properly. “Because there are so many different factor involved, we need different strategies in place for our workers and must try to ensure, as part of training in operating these
vehicles, that they understand whole body vibration and the effects,” Ms Tilbury said. She said mining operations must ensure equipment used was matched to the task and maintained properly as well as being alert to issues such as road conditions and consistency of blasted material.
Focus on injury prevention Hundreds of Rio Tinto Alcan employees were joined by other industry representatives and suppliers recently for a major forum focusing on ergonomics and manual handling. Queensland Alumina Limited (QAL) hosted the Rio Tinto Alcan (RTA) Manual Handling and Ergonomics Expo, coupled with the Tool Torque interactive trade show. Representatives from RTA’s operations at QAL, Yarwun, Weipa, Gove and Rio Tinto’s Boyne Smelters joined the event, highlighting initiatives aimed at improving manual handling and ergonomic issues at their respective sites. QAL managing director Phil Campbell said the expo and trade show complemented each other to
help participants improve workplace safety. “Muscular-skeletal injuries are a large contributor to workplace injuries, yet they are highly preventable with the right education and techniques of conducting tasks,” he said. “Over the past year RTA sites have been carrying out the manual handling and ergonomics program designed to target the highest risk tasks and implement solutions. “The expo is a way for us to share our achievements and challenges so that wider improvements can be made across all attending sites, ultimately making our workplaces safer for employees.”
Steff Stokes from OnSite Health Solutions has attendees completing a stretch warm-up at the beginning of the presentations.
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Building Mining Communities
May 2011 |
Mining Supporting Communities
BROUGHT TO YOU BY
Anglo American chief executive Cynthia Carroll with Isaac Mayor Cedric Marshall (left) and Anglo American chief executive of metallurgical coal Seamus French (right).
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Cannington lunch for leading ladies More than 70 female employees and contract partners from BHP Billiton Cannington joined the operation’s inaugural “Women in Mining – Women in Leadership” luncheon at Jupiter’s Townsville recently. BHP Billiton’s most senior female executive, chief people and public affairs officer Karen Wood, spoke at the event and awards were presented to female employees who were recognised for going above and beyond the call of duty and their capacity as role models for other women at Cannington. Cannington also announced a $10,000 donation toward breast cancer research to coincide with the Cancer Council event, Australia’s Biggest Morning Tea. Photos: Stewart McLean
Anglo growth brings $20m gift Anglo American has promised a $20 million fund to deliver community infrastructure for Moranbah as the company gears up for a $2.7 billion growth spurt in the area. Chief executive Cynthia Carroll announced the Moranbah 2020 Fund during a recent visit to the central Queensland town. “Moranbah makes up a significant portion of Anglo American’s future investment in Australia and is a key component of our global portfolio of premium growth projects, with two underground longwall mines, Grosvenor and Moranbah South, to be developed over the next 10 years,” Ms Carroll said. “Anglo American is committed to the long term sustainable growth of Moranbah and we wish to partner with the local council and the community to achieve this goal.” Ms Carroll said the Moranbah 2020 Fund would support training facilities, education programs, cultural facilities, accommodation and public multi-use buildings. “Implementation of the fund is subject to government approval of our Grosvenor and Moranbah South projects, with funding staged to meet the project development phases,” she said. “We will partner with the Isaac Regional Council to put the fund in place, identify key projects and plan how they will be delivered.” Ms Carroll said Anglo American’s Moranbah 2020 strategy would also provide employees with choice in accommodation. “We are committed to providing our employees with a choice of accommodation options that best suit their personal circumstances, including permanent housing in the Moranbah community,” Ms Carroll said. “We currently offer $65,000
cash incentives to existing employees wishing to build or buy in Moranbah and surrounding areas and will also build more than 50 new units and houses in the town, subject
to government approval of our planned project.” Anglo American projects are expected to create 2000 new jobs in the region over the next five years.
Healthy donation from QGC
Jenna Vesinger and Lisa Ison.
Gas company QGC will contribute $3.5 million towards medical services in Gladstone in a partnership with Queensland Health. QGC, which is developing the Queensland Curtis LNG Project for parent company the BG Group, will fund two projects at the hospital as part of its social impact management plan. The initiatives include $2 million for the establishment of a renal dialysis centre at Gladstone Hospital and a $1.5 million refurbishment of the hospital’s operating theatre. “Our project will be around for a long time and we are determined to play our part as a good corporate citizen,” Queensland Curtis LNG Project senior vice-president Ian Bradshaw said.
BMA boost for Moranbah
Emma Pollock, Julie Lenz and Linda Farrer.
BHP Billiton Mitsubishi Alliance (BMA) has announced a $13 million Moranbah community support package to enhance local facilities. The package includes $5.5 million for the Regional Youth and Community Services Centre, $2.5 million for the Greg Cruickshank Aquatic Centre and $5 million over five years to assist the Isaac Regional Council deliver affordable accommodation to Moranbah and Dysart. “These investments will continue to provide long-term benefit to the communities as part of our enduring commitment to the towns in the region,” BMA president Stephen Dumble said. The company has invested $54.2 million in Bowen Basin communities over the last two financial years. Claire Ziebarth and Stacey Dibben.
Xstrata backs RFDS base Xstrata Mount Isa Mines has pledged $2 million to the Royal Flying Doctor Service (RFDS) towards the $8.5 million redevelopment of their Mount Isa base. Xstrata Copper North Queensland chief operating officer Steve de Kruijff said the commitment further supported the quality and accessibility of health services in Mount Isa. It followed a $2 million donation in 2010 to the Queensland Government for the construction of a new dental health unit at Mount Isa Base Hospital, he said. The RFDS redevelopment project will create a purpose-built primary health care facility that will house the Mount Isa base operations office and allied health services.
The Mining Advocate
Tiffany Sproles and Danielle Kyle.
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28
BUILDING NW QUEENSLAND
May 2011 |
The Mining Advocate
Embracing the Isa Young families are finding a satisfying mix of career opportunity and a relaxed, childfriendly lifestyle in north-west Queensland. Why Mount Isa? It’s more “why not Mount Isa?” for many young people looking for opportunity and a no-nonsense approach to life. That’s the attraction for Jaimie Coe and his wife Amanda. Their experience is that the north-west Queensland city is the ideal place to raise five-yearold Ari and two-year-old Leila. Jaimie, 37, who manages the local Corestaff branch, sees the demands of the mining industry in Mount Isa as a way he can make a quick impression on the business.
“There are plenty of opportunities in Mount Isa for people who want to have a crack at it,” Jaimie said. “Mount Isa is not a monopolised market. It is a place which offers options for entrepreneurs to come and have a go. The local demographic shows many local people my age in management roles. People are friendly and accommodating and they respect you for the way you do business.” The couple has lived in Kingaroy, Jabiru, Perth and Gladstone since marrying six
years ago. They’ve now bought a home in Mount Isa and see it as a place to consolidate both family and career. Amanda, 37, works in the Corestaff payroll office in school hours. It’s an outdoor town, she says, and you need to make the most of the outback experience. “We bought a boat and spend weekends on the Lake (Moondarra) and otherwise try to appreciate the area for what it is,” she said. “There are a lot of really pretty spots with swimming holes and natural features we need to see while we’re here. We have a good social life. There are a lot of people our age with children you tend to meet through school activities and form friendships with and then see out.”
Television campaign to promote region The Mount Isa Chamber of Commerce has launched a promotional campaign designed to give a boost to both tourism and recruitment. “Mount Isa – The City You Haven’t Seen Yet” was launched at the Mount Isa Civic Centre on May 24 with a 25-minute documentary. Chamber president Brett Peterson credited Alice Springs-based Imparja Television for direction and creative input into what he says is one of the most ambitious and exciting destination marketing campaigns the region has seen. While not being drawn on a total figure, Mr Peterson said the promotion was in the six figures and he thanked Imparja for its substantial contribution. “It’ll give everyone a boost,” he said. “As a destination marketing campaign it’s slick and meant to counter the negative
publicity we’ve received over a long period of time. We hope to also increase the region’s presence as a destination for workers including single people, families and anyone looking for the unique opportunities this region has to offer. “If people are looking for a ‘tree change’ or a change in employment, we want them to consider Mount Isa.” Along with the documentary, there are three one-minute advertisements which will run for six months initially on the Imparja satellite broadcast. Mr Peterson said the chamber would push for funding from members and government to take the campaign to a metropolitan audience. The campaign features typical Mount Isa residents talking about life in general including jobs, social, sporting and cultural opportunities.
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Jaimie Coe, wife Amanda and children Ari, 5, and Leila,2, are making the most of their outback experience.
The attractions of living in Mount Isa are best appreciated when compared with the alternatives. “There’s always somewhere to go and something to do with the water park and plenty of
sporting options for the kids,” Amanda said. “There’s always the trip to the big city, which is a highlight - but as soon as you’re there you’re looking to escape the madness and get home where things are a bit more relaxed.”
MKM builds in strength Mount Isa is a key regional location for the MKM Group, which specialises in property and civil construction, bulk earthworks and demolition. For those looking to build a family home, commercial property or even a master-planned community, the MKM Group is able to fulfil all requirements from the early planning stages, including architectural design and delivering development and building applications. The MKM Group is able to action work anywhere in Queensland, with current and completed works in areas including Warwick, Gladstone, Rockhampton, Dysart, Cloncurry, Ipswich, the Gold Coast and Brisbane as well as Mount Isa. MKM has completed a broad range of building projects including residential housing, multi-unit
developments, master-planned communities, factories, retail and commercial buildings. MKM managing director Michael Kljaic plans to become one of Queensland’s major forces in the building industry. A business strength that includes its own civil division and bulk earthmoving fleet shows MKM is seriously dedicated to its rapid expansion throughout the state. MKM’s head office is based south of Brisbane in Pimpama, with regional offices located in Warwick, Mount Isa, Gladstone and the Gold Coast. There are plans to open further regional offices in the near future. Inquiries can be directed to business development manager Brad Merkur or Dominic Curcio in Mount Isa. MKM are easily contactable on 131MKM or phone Brad direct on 0414 389 300.
THE AUSTRALIAN WORKERS' UNION: PUTTING MINERS SAFETY FIRST ARE YOU CONCERNED ABOUT YOUR RIGHTS AND CONDITIONS AT WORK? ARE YOU WORRIED ABOUT THE GLOBAL FINANCIAL CRISIS? ONLY THE AWU - QUEENSLAND STRONGEST UNION - IS COMMITTED TO PROTECTING MINERS' JOBS AND ENTITLEMENTS DURING THESE DIFFICULT FINANCIAL TIMES NOT AN AWU MEMBER YET? THEN JOIN THE AWU TODAY TO FIND OUT HOW TO PROTECT YOUR ENTITLEMENTS NORTH QUEENSLAND AWU MINING OFFICIALS: TOWNSVILLE-COWBOY STOCKHAM 0419 737990 MT ISA-HAG HARRISON 0428192985 FOR FURTHER QUERIES PLEASE CONTACT AWU BRANCH OFFICE TOLL FREE ON 1800671449 OR awu.org.au BY STANDING TOGETHER AS A TEAM AWU MEMBERS CAN ENSURE THAT THEIR INTERESTS ARE PROTECTED Authorised by Bill Ludwig, The Australian Workers' Union of Employees', Queensland.
2012 Xstrata Mount Isa Mining Expo 16th, 17th and 18th May 2012 Lock in these dates for next years Expo Showcasing the latest in mining tools, trade and technology in one of the richest mineral provinces in Australia
If you’re a mining company in the North West Region you can’t miss this Exhibition! Now the dust is slowly settling on Buchanan Park, the Chamber is proud to announce that this year’s Expo was one of the largest events to date with over 8000 people passing through the gates over the three days and with nearly 200 exhibitors showcasing their products and services throughout this time. This success would not have been possible without the support of our sponsors and we thank all of you for your contributions towards this flagship event and look forward to working with you again in the near future!
Phone (07) 4743 9881 Fa x (07) 4743 7266 Email miningexpo@mountisachamber.com.au Website www.mountisachamber.com.au
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