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COVER IMAGE: Groundwork Plus principal Tegan Smith addresses the Institute of Quarrying Australia national conference on whole-of-life site planning. See pages 27 and 28.

December 2015

3 Territory gas comes east

FEATURING 10 Our Mining Heritage 14 Puma - Townsville Port Facility

The NEGI pipeline has the potential to keep existing mines in the Carpentaria Minerals Province viable and help

16 Industry Leaders

influence new investment.

17 Local Government

5 FIFO report fails to inspire

18 Between Shifts

Politics makes strange bedfellows as conservative politicians

19 Building Mining Communities

and unions combine to call for action out of a parliamentary report into fly-in, fly-out operations.

6 More good mining news In the north-west of the state, Incitec Pivot has reported big production increases at the Phosphate Hill operation and Mount Gordon gets a new lease on life.

Isa Recovery Queensland Industry Advocate tel: (07) 4755 0336 fax: (07) 4755 0338 Managing editor: Robert Dark 0417 623 156

20 Living Remotely 21 Opportunity Townsville North Queensland 24 Isa Recovery 26 Century

Sales: Jennifer Smith 0410 163 094

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27 IQA National Conference

Journalist: Belinda Humphries 0439 726 074 Graphics: Jim Thorogood 0418 790 745 Email: info@miningadvocate.com.au Postal: PO Box 945, Townsville, Q, 4810

Advertising booking deadline for the March 2016 edition: Feb 24 2016 All material is copyright and cannot be reproduced in part or in full by any means without written permission of the managing editor. The views expressed in this publication are not necessarily those of the publisher.

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2 NEWS

Queensland Industry Advocate | December 2015

Nordev Contractors impact crusher at Duglad River.

Crushing crew steeled to deliver Dugald River contractor negotiates the skeletal remains of old mines in trial run A small contractor in North Queensland is responsible for crushing more than one and a half million tonnes of materials this calendar year. Most recently, Townsvillebased Nordev Contractors crushed 450,000 tonnes of ore at MMG’s Dugald River mine near Cloncurry. The contract was the initial part of a one-million-tonne project spanning three years. The contract was not without its challenges, said Nordev Contractors owner Greg Rains. “One of the most significant issues with the ore, that now needs to go over to Century for processing, was that it contained a lot of underground tramp steel (scrap steel from the mining operation),” Mr Rains said. “It really was a situation where

we had the operators focused on making sure that the material did not enter into the crushing chamber. “We also had a magnet to remove any stray steel so that the material going to Century would be virtually steel free.” Among the machinery used for the job was a jaw crusher, an impact crusher, a 45 tonne excavator and one 35 tonne loader. “We found that we got a better service out of the jaw crusher with the way that the arrangement was,” Mr Rains said. Nordev also has a four-year crushing contract at MMG’s Golden Grove project in Western Australia that will involve up to 400,000 tonnes of secondary crushing a year and

a 500,000-tonne processing job at Dalrymple Bay for Golding Contractors. Despite what appears to be an enviable workload, the company had not escaped the mining downturn, Mr Rains said. “We certainly are feeling

the effects of the slowdown in the mining sector. The pricing structure that we’ve had to adhere to is what I would call a 1990’s pricing structure,” he said. “It’s a very cutthroat industry and we’ve been very fortunate. “My vision for 2016 is one of

caution. We don’t have a project to really hang our hat on in 2016 so we’re acutely aware of that.” The company is approaching 4.5 million tonnes processing over the last five years. • Farewell to Century - Page 26

Big bauxite rolls out in 2016 Construction is set to roll out from mid-2016 for a $2.6 billion ($US1.9b) expansion project at Rio Tinto’s Weipa bauxite operations. The company has given the green light for the Amrun project, previously known as South of Embley, involving the construction of a mine, processing and port facilities. Bechtel Australia is the engineering procurement and construction management (EPCM) contractor for the project, which has established an Industry Capability Network Gateway portal for contractors. Rio Tinto said it had developed a Local

and Indigenous Participation Strategy to provide access to business and employment opportunities to local community members. Queensland Premier Annastacia Palaszczuk said the project was expected to involve an average construction workforce of 600 people over three years, peaking around 1100. More at http://www.icngateway.com. au/project/3677/amrun-south-of-embleyproject?pl=1 and, https://industryadvocate.com.au/q-and-aover-supply-to-the-new-amrun-mine-on-capeyork/

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Queensland Industry Advocate | December 2015

NEWS

NT gas pipeline of opportunity A forum planned in Mount Isa will look at value adding to the energy bonanza A gas industry forum is planned for Mount Isa in early 2016 to make the most of local opportunities stemming from an $800 million pipeline project. The Northern Territory Government’s selection of Jemena Northern Gas Pipeline to construct and operate the North East Gas Interconnector (NEGI) pipeline has guaranteed a Tennant Creek-Mount Isa gas route. Mount Isa to Townsville Economic Development Zone (MITEZ) executive officer Glen Graham said the group would bring parties including the pipeline operator, regional contractors and major energy

users together to ensure the region maximised the benefits. The forum was likely to be held in early April, he said. “In addition to that, we’re hoping to be able to find funding for a strategic study identifying the potential benefits arising from a gas pipeline and how the dynamic of that would create opportunities for opening new mines and mineral processing operations along the corridor,” Mr Graham said. Mr Graham said it would be advantageous to identify potential off take points as soon as possible. Jemena expects construction of its 14-inch pipeline, which will

run for 622km between Tennant Creek and Mount Isa, to be complete by 2018. The project will create more than 900 jobs during construction and there will be ongoing maintenance and operations teams based in Tennant Creek and Mount Isa. Incitec Pivot’s Phosphate Hill operation, 160km south of Mount Isa, has already been confirmed as an off take partner, announcing a long-term gas supply agreement with the Northern Territory’s Power and Water Corporation as a result of the pipeline approval. Gas is required for the manufacture of ammonium phosphate fertilisers at the site and IPL’s current gas contract (2015/16), negotiated in an environment of gas producers

committed to LNG export, has added about $50 million a year to the cost of operating the plant. IPL chief communications officer Stewart Murrihy said the agreement announced in association with the NEGI pipeline would assist in providing secure gas supply at a competitive price. It is estimated the NT has more than 200 trillion cubic feet of gas – potentially enough to power Australia for more than 200 years. Jemena managing director Paul Adams said routing the pipeline to Mount Isa was the most efficient way to get gas to the east coast, as it reduced potential construction risks and required lower volumes of gas to be contracted to be viable.

“As soon as sufficient gas is proven in the NT, Jemena will seek to build a further link connecting Mount Isa to the Wallumbilla hub in Queensland,” he said. “This will vastly improve the reliability of the gas transmission network by reducing sole reliance on Moomba as the hub for supplies. It will also introduce some much-needed competition into the east coast market, while accelerating the growth of the NT gas sector.” Mr Adams said Jemena had been working closely with communities and businesses along the proposed route from the start of the bidding process, to harness as much local and Indigenous participation as possible in the delivery and ongoing management of the pipeline.

NQ Local Government Association president Frank Beveridge at the Burdekin River weir in October, before it stopped running over.

El Nino adds to concern for longer drought A delayed and weak wet season is forecast for 2015-16, as much of regional Queensland continues to grapple with drought and councils step up water restrictions. “No good will come of it. We’re in fairly historic times now,” North Queensland Local Government Association president Frank Beveridge said. “This is the third year of failed wet season in North Queensland.” Cr Beveridge, the Mayor of Charters Towers Regional Council, said 2015 had been only the second time since the Burdekin Falls Dam was completed in 1987 that water had failed to flow over the spillway all year. While the prolonged dry was very tough for local graziers, he said lack of water also increased the operating costs of some regional mining operation and caused significant issues for councils. “Every council that has a large road network, and of course we’re one of them, is suffering significant issues because you can’t build roads without water,” he said. “So all the maintenance programs have suffered and the cost of transporting water to jobs is double or triple what it was.”

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Roger Stone Climatologist

He said the very long turnaround times waiting for water trucks to source increasingly scarce water supplies during road works had been a major problem for many councils. A number of regional councils were having to pay more for water for their townships and cities than they normally would, he said. “Some regions like Mount Isa have dire problems at the moment with their

water running historically low, Cloncurry are in trouble and Townsville are having to pay excess water charges because they are having to pump it from the Burdekin dam,” Cr Beveridge said. He said the dry conditions would see more councils attempting to droughtproof at least their town water supply. “At the moment we’re putting a proposal to the State Government to get an extra weir on the Burdekin River so our farmers can get more water,” Cr Beveridge said. Climatologist Roger Stone said a classic El Nino event had been affecting Australia since autumn and should start to disintegrate in autumn 2016. But there had been a precursor event last year, when a CP (Central Pacific) El Nino started to dry out Queensland and parts of New South Wales. “The CP El Nino already started to affect us back in 2014, so unfortunately that didn’t set us up well for this more classic El Nino which is now upon us - we were already in a poor position before this classic El Nino developed in May this year,” he said. Prof Stone, who is director for the International Centre for Applied Climate

Sciences at the University of Southern Queensland, said the current El Nino could be expected to weaken the wet season and delay its onset in northern Queensland. “That’s going to be the main impact I think, a delay to the wet season exacerbating the intensity of the drought around places like Longreach, up through the central west and in to Charters Towers,” he said. The Bureau of Meteorology predicts fewer tropical cyclones in the 2015–16 season, as the strong El Nino continues to dominate. BOM manager of climate prediction Dr Andrew Watkins said the long-term average number of tropical cyclones in Australia during the November to April cyclone season was 11. “While El Niño is typically associated with fewer cyclones and a later start to the season, there has never been a cyclone season without at least one tropical cyclone crossing the Australia coast,” he warned.

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4 NEWS

Queensland Industry Advocate | December 2015

Watching the zinc phoenix rise Laid-off workers advised that jobs made redundant with recent closures will return Miners and support staff made redundant at Glencore Mount Isa Mines zinc and lead operations are encouraged to keep their eye out for a resumption of production. Glencore announced midOctober more than 530 positions would be let go at its Lady Loretta, George Fisher and McArthur River mines. Around 200 of those were contracted positions. The majority of the company staff, more than 350 positions, was on fly in-fly out rosters from Townsville and Cairns. General manager George Fisher Mine Chris McCleave said the company continued to work with its people through the ramp-down phase over the last quarter of this year with career, financial management and job search support. “We are committed to supporting each of our people throughout this transition

and will particularly focus on redeployment opportunities for local employees,” he said. “To reinforce the temporary nature of this decision, Glencore will also take steps to inform employees of future vacancies that arise at George Fisher and Lady Loretta mines, encourage future applications from employees and place no restrictions on re-employment. “We will also continue to implement a range of initiatives that support local employment.” The company would continue to develop access and resource opportunities at the Lady Loretta site, located 140km north-west of Mount Isa, Mr McCleave said. “Mount Isa Mines remains fully committed to the local community,” he said. “Over the past two years our Australian zinc business has invested more than $US1 billion into our operations, which form the world’s largest zinc resource

‘The jobs will come again’. Workers laid off from Glencore’s zinc operations are encouraged to keep their eyes open for a renewal of operations. Photo: Rob Parsons

base. We have a long-term view of our Mount Isa operations and remain very positive about the medium and long-term outlook for the commodities that we produce.

“Importantly, we will continue to invest in our business, including completion of the McNamara Rd upgrade, our diamond drilling program at Lady Loretta and the water

treatment plant at the Port of Townsville. We will continue to support a range of community investment initiatives.” • Mount Isa moving forward Pages 24-25

Multimillion-dollar maintenance spend Queensland’s sugar industry is expected to crush more than 32 million tonnes of cane this year, with New South Wales forecast to contribute an additional 2.15m tonnes. This is compared to the 32.4 million tonnes of sugar crushed across Australia in 2014 with a total industry value of $2.1 billion dollars. The milling process is intensive for a defined season and hard on plant and equipment. More than $400 million is invested annually across the 24 milling factories operating along the east coast of Queensland and northern New South Wales in order to get them ready for each crush. Mackay Sugar has four operating sugar mills at

Mackay Sugar’s Racecourse Mill.

Racecourse, Marian, Farleigh and Mossman. The company spends about $40 million on maintenance and capital works across the mills each year. This year’s planning for the upcoming maintenance season had been a priority, Mackay Sugar acting general manager milling operations Terry Doolan said. “At Marian Mill we’ll be conducting boiler maintenance; Farleigh Mill will undergo repairs to the

effets; at Racecourse Mill we’ll be focusing on pan repairs, and at our Mossman Mill we’ll be focusing on repairs to the JTA Boiler’s dust collector and air heater, ” Mr Doolan said. “All work is expected to be completed before May, in time for the start of the 2016 crushing season.” Contractors are invited to tender for the fabrication of larger items and specialised works.

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Brendan Tabone and Sunshine Sugars reliability and planning engineer Mark Campbell at Broadwater sugar mill.

Queensland Industry Advocate | December 2015

NEWS

Shadow of doubt falls across FIFO report LNP, local authorities and unions combine to lobby against total FIFO operations There are concerns a parliamentary report on fly-in, fly-out (FIFO) practices will get swept under the rug. The inquiry into fly-in, flyout and other long distance commuting work practices in regional Queensland has produced a series of recommendations aimed at ensuring ‘genuine choice’ for workers. The report was tabled in parliament in October along with 235 written submissions and more than 100 witness accounts. “I welcome the report but I don’t believe that the Palaszczuk government has the will or the spine to actually take the next step,” CFMEU Queensland district president Stephen Smyth said. “The report says the Government will ‘consider’ but there’s no real commitment there. “What happens when they say it’s just too hard? That’s the reality of it. “People like Jim (inquiry chair Jim Pearce) will fight tooth and nail but it takes the Government as a whole doing something more concrete with the report than just reading it and saying ‘that’s a good report’.” Isaac Regional Council mayor Anne Baker shared the concerns. “The increased non-resident operational workforces from the two existing 100 per cent FIFO mines is having a negative impact on employment and on the economic sustainability of the Isaac region,” Cr Baker said. “Outcomes for Isaac communities, workers and

mining families will only come with the State Government’s appetite to enact change at a practical level. “Our regions simply can’t afford for another report to stagnate on shelves. “We have come a long way, but there is so much more work to do.” One of the recommendations within the report is a change to the Anti-Discrimination Act to include location as an illegal condition of employment. This was to avoid any more 100 per cent FIFO arrangements like BMA’s Daunia and Caval Ridge mines in the Bowen Basin, inquiry chair Jim Pearce said. “The community made it very clear to the committee that they were just not happy with fly-in, fly-out and about not having the choice of where they could live,” he said. “At the moment if workers want a job at Daunia or Caval Ridge, on the bottom of the application form there is a direction that they must live in south-east Queensland or Cairns. “Now that is discriminatory against people that live in other areas that might like a job at that mine.” The Queensland Resources Council (QRC) released a statement criticising the report. The recommendation to amend the Anti-Discrimination Act was a case of ‘using a sledgehammer to crack a nut’, QRC chief executive Michael Roche said. “The reality is that the concept of a 100 per cent FIFO mine in the Bowen Basin is a furphy,” he said.

“There are only two mines in all of the Bowen Basin that have approval for a 100 per cent FIFO workforce and even at those two mines there are

hundreds of local contractors and small businesses supporting those operations.” Mr Pierce was quick to respond to the comments.

“If it’s a furphy, and they don’t want it then let’s get rid of it,” he said A government response to the inquiry is expected in early 2016.

Regional MPs Michelle Landry and George Christensen in front of Parliament House, Canberra.

Photo: Auspic

Legislating for local workers Two Queensland Liberal politicians have made moves to render 100 per cent fly-in, fly-out (FIFO) illegal. Federal Members for Dawson and Capricornia, George Christensen and Michelle Landry put up a Private Member’s Bill to amend the Fair Work Act 2009. If approved the amendment will make it illegal for companies to refuse applicants jobs based on where they live. The proposed amendment to the federal Fair Work Act reads: “An employer must not take adverse action against a person who is an employee, or prospective employee, of the employer because of where the person lives.” There are currently two 100 per cent FIFO mines in the region, BMA’s Daunia and Caval Ridge operations. Only workers living within a Brisbane or Cairns

postcode are eligible to apply for jobs at the mines. “Our bill is about ensuring all workers get a fair go when it comes to applying for jobs right on their doorstep, and ending the geographic discrimination which is inherent in this practice,” Mr Christensen said. “It (100 per cent FIFO) was introduced by the Bligh Labor Government when the coal industry was experiencing a boom, and little thought was given to the effect of such a practice when the boom had passed. “We now have people who live in places like Mackay and Moranbah who are unable to apply for jobs at certain mines which are just down the road. “This discrimination needs to end, and our push is about ensuring that workers who live in Central Queensland can apply for any and all jobs going in our coal mining sector.” Ms Landry said the 100 per cent FIFO rule was hurting the survival of local towns.

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6 NEWS

Queensland Industry Advocate | December 2015

IPL staff solutions Share price volatility, redundancy fears, environmental ultimatums and plans to drop global zinc production by a third. The digital world has been abuzz with the ups and downs of mining giant Glencore. Topping the news was the announcement that the company would be slicing its worldwide annual zinc output by 500,000 tonnes. The cuts mean the Lady Loretta mine in Mount Isa will be closed temporarily and the George Fisher (Mount Isa) and McArthur River mines (Northern Territory) will reduce production. Federal Member for Kennedy Bob Katter took to Facebook to reassure locals that the future for Mount Isa was positive. “Rob Katter Member for Mount Isa and I are confident in the future of Mount Isa, despite Glencore’s annoucement today ….Lady Loretta and George Fisher mine are in Rob and my electorates - near Mount Isa.”

Twitter users sounded off on the issue. bev henwood -

@amworldtodaypm @ LockTheGate don’t let them get away with not cleaning their mess up! Dutigad1 -

@amworldtodaypm @abcnews Close away! Glencore since agreed to significantly increase its security bond although the exact dollar figure was not released.

Stock Volatility Meanwhile, Glencore’s share price has experienced some wild swings. September 29 saw Glencore’s stocks plunge by 30 per cent in

Jodie Melitta Andrews My

heart is broken for this town. Marilyn Caldwell This is

going to hurt right across the West good bye to our Towns.

Hong Kong but the company recovered most of its losses by close on Friday. of more than 70 per cent in Hong Kong - the most on record. The rise sparked rumours of a sale and triggered a statement from Glencore.

Jasmine Wood It seems the

Glencore “confirms that it is not

elite do not want country towns to thrive...the agenda is to get us all in the city so they can control us all.

aware of any reasons for these price and volume movements or of any information which must be announced to avoid a false market in the company’s securities or of any inside

Environmental concerns

information that needs to be disclosed,” the company said.

October 1 marked an important deadline for McArthur River mine Earlier this year the Northern Territory Government raised concerns that Glencore would abandon its McArthur River mine without paying for environmental rehabilitation obligations.

Member for Mount Isa Robbie Katter told ABC Brisbane that

locals in Mount Isa remained positive despite the ups and downs of the share price. “There’s a saying in Mount Isa, if the mine catches a cold, the whole town gets the flu. We do

Thus came a tough ultimatum – Glencore should increase its security bond at the mine or face closure.

operation on track for a good year in 2015. But he put the record output down to employees using the tools provided by the company’s Business Excellence (BEx) program to improve the manufacturing operation. Staff across various shifts had put their heads together and worked out how to debottleneck the granulation plant by 90,000 tonnes, for example, Mr Fazzino said. “We didn’t spend any capital at all. What we did is we gave the team the tools to analyse how to

London with a similar drop in

The following week saw surges The response wasn’t so upbeat.

Employee-driven productivity gains have been credited for a record year of fertiliser production at Phosphate Hill. The Incitec Pivot operation, 160km south of Mount Isa, produced 1.043 million tonnes of ammonium phosphates in the 12 months to September 30 - a 35 per cent gain on the previous year IPL managing director and chief executive officer James Fazzino said a major maintenance shutdown in 2014 had helped set the

improve the throughput through the granulation plant, and gave them the authority to go and put those ideas into practice,” he said. Mr Fazzino said Phosphate Hill was expected to achieve output around the one milliontonne mark again this year. Incitec Pivot also reported earnings growth from its Moranbah ammonium nitrate plant and said that the gas shortage hampering production there was expected to be resolved beyond 2016. The company reported a Net Profit After Tax (NPAT) increase of 12 per cent across its business to $398.6 million for the year ended September 30, 2015. “To have produced double-digit profit growth in this environment is a result of our successful strategy and our commitment to risk management, and is a tribute to our people having delivered on the strategy, Mr Fazzino said.

react to announcements of the mine but I don’t get a sense of that just with the announcement of the share price,” he said.

Lighthouse signals new life for mine A group of former Equinox Minerals executives on the hunt for a good buy in copper has acquired the mothballed Mount Gordon mine, with plans to restart operations in 2017. The group founded Lighthouse Minerals (LHM), which signed a binding agreement with Mount Gordon owner Aditya Birla Minerals for the north-west Queensland operation - now renamed as Capricorn copper mine. The site, about 120km north of Mount Isa, has been on care and maintenance since April 2013. Managing director Carl Hallion said Mount Gordon suited Lighthouse’s strategy, with the potential to restart operations in time for the next copper cycle after capital investment. “LHM believes the team can use its experience and expertise to bring the mine back into operation at economic levels and, being located in Australia’s most prolific copper region, will look to leverage off the promising exploration potential of the site,” he said. The sale deal will see Lighthouse taking on environmental and performance bonds in relation to Mount Gordon, amounting to about $41.7 million. It also includes a cash payment to Aditya Birla of $5 million,

further payment of $10 million linked to future earnings and some reimbursement for interim care and maintenance costs. Mr Hallion said Lighthouse would advance a number of technical studies to upgrade its diligence evaluations and progress a restart project. “The current plans potentially have the mine back in operation sometime around late 2017,” he said. The Queensland-based Lighthouse Minerals was formed by five executives from Equinox Minerals, including Mr Hallion and chairman Craig Williams, following the sale of Equinox to Barrick Gold for $US7.5 billion in 2011. “The team at LHM identified an emerging opportunity in the copper sector as the downturn started to take hold and asset values returned to levels that presented good buying opportunities,” Mr Hallion said. The privately funded company has teamed up with EMR Capital, founded by Owen Hegarty, to acquire Mount Gordon. The company would work with the Department of Environment and Heritage Protection and key stakeholders in the region to develop long-term sustainable environmental programs, Mr Hallion said.

Queensland Industry Advocate | December 2015

REGIONAL ROUND-UP Cairns

Townsville

Work is kicking off on the $550 million Paradise Palms redevelopment at Kewarra Beach, The Cairns Post reports. The project includes new housing developments Orchid North and Golden Lakes, with many of the planned apartments snapped up by Asian investors. Chinese businessman Robert Xing - who represents a consortium of investors from China, Hong Kong and Mongolia - was in Cairns for the recent Northern Queensland Economic Summit. Earthworks have started, and Mr Xing told The Cairns Post he was hopeful the Paradise Palms projects would be complete within seven years.

Aurizon will develop a new $40 million intermodal terminal at Stuart and free inner city land from rail activities by mid-2016 to make way for urban revitalisation projects. The rail operator announced the details in October of the planned relocation, which is in line with Townsville City Council’s CBD masterplan. Mayor Jenny Hill told the Townsville Bulletin it would free up land for residential and commercial growth, underpinned by the proposed stadium and entertainment precinct.

Tieri The Central Highlands Regional Council has given the green light to the region’s first solar farm – a planned $400 million, 400ha facility near Tieri. Proposed by FRV Services Australia (Fotowatio Renewable Ventures), the development was expected to create up to 200 jobs for about 18 months during the construction phase, the council said. “There’s no doubt Tieri and the surrounding towns of Capella and Emerald will benefit from the activity associated with the construction and I’m pleased the company had confidence in the service capacity of our region to make their choice,” Mayor Peter Maguire said.

Gladstone The $950 million Pacificus Tourism Project on Hummock Hill Island, 30km south-east of Gladstone, has received Commonwealth Government approval. Member for Flynn Ken O’Dowd said it had been determined the project would not have an unacceptable impact on matters protected under national environmental law. The project will include hotels, holiday villas and residential development. The developer’s website states that the Hummock Hill Island project will directly generate more than 3200 jobs during the 15-year development period. “We estimate that at least 700 full-time positions will be created when the project is completed, with a further 850 flow-on jobs in the region,” Pacificus project manager John Kelly said.

Bowen Basin Cloncurry Malachite Resources plans to build a cyanide plant at the Lorena gold project as it looks to advance the partially constructed operation. The junior engaged Ore Processing Services to carry out a project development plan for the site - about 15km east of Cloncurry - after joint venture partner BCD Resources went into receivership. Subject to financing and negotiations with BCD’s receivers in relation to the concentrate plant, Malachite expects to start open-cut mining at Lorena in 2016.

Oakey

The enterprise agreement covering more than 2000 employees at five of BMA’s Bowen Basin mines is under renegotiation. Asset president Rag Udd said BMA was focused on delivering cost efficiencies and safe productivity improvements, and was seeking a simplified agreement to help achieve this. “The current agreement was finalised in a market environment with considerably higher prices and margins,” he said. The CFMEU has raised fears BMA will contract out the entire permanent workforce at Bowen Basin mines.

Legal action has commenced in the Queensland Land Court against the New Acland mine expansion project. Objectors include the Oakey Coal Action Alliance - a group comprised of local farmers and residents who say they will be affected by mine expansion, The Queensland Times reports. New Hope Group managing director Shane Stephan has said he welcomed the land court process for the company’s New Acland revised stage 3 plan. “…I am confident that the project will hold up to all scrutiny in the land court process and we look forward to providing some security to the 275 current full-time local employees and 507 contractors,” Mr Stephan said.

Ipswich The Palaszczuk Government is partnering with Tyre Stewardship Australia to develop and trial specifications for the use of crumbed rubber in road asphalt. “We are about to enter the second year of a four-year study into tyre recycling, but road asphalt applications have already proven successful in Queensland trials,” Main Roads Minister Mark Bailey said. Recycling facility Chip Tyre in New Chum, Ipswich will be crumbing old tyres for road-based projects from the end of this year.

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8 NEWS

Queensland Industry Advocate | December 2015

Captain stands down at Osborne Neal Valk leaves his mark in the North after a heady decade of mining activity Long-time Osborne manager Neal Valk is moving on as part of a restructure following the end of underground mining at the copper-gold site. Mr Valk, who is based in Townsville, finished his role as Chinova Resources general manager operations in November. It ends a decade-long relationship with Osborne, which Mr Valk first visited with a Sterlite Industries duediligence team in 2004. Placer Dome owned the operation, about 150km south of Cloncurry, when he came on as mining manager in 2005 before advancing to general manager in 2006. Under subsequent owners Barrick Gold, Mr Valk oversaw development of the Trekelano open-pit mine â&#x20AC;&#x201C; which produced 2.5 million tonnes of ore, all road-hauled 130km to Osborne for treatment. â&#x20AC;&#x153;We did other projects like convert the diesel power station to a diesel-gas generator and installed a paste fill system for the underground, as well as the

commencement of the Kulthor underground, when the copper price was very good, between 2006 and 2008,â&#x20AC;? Mr Valk said. Looking back he described that period as the sweet spot in the operation. â&#x20AC;&#x153;We were making very good money, we had a good group of people on site, support from the corporate office, and we were running with the projects â&#x20AC;&#x201C; it was as good as you could get,â&#x20AC;? he said. Barrick made a decision to cease production at Osborne in January 2009. The operation shut down in July 2010 and Mr Valk left the site for about nine months. But its subsequent purchase by Ivanhoe Australia (later to become Chinova Resources) in October 2010 saw him back at Osborne, launching into a plant refurbishment as operations ramped up again. Mr Valk has been in charge during the development of the Starra 276 and Kulthor ore bodies as well as the exploration decline for the Merlin molybdenum and rhenium

Neal Valk with a copper bull, presented by Chinova Resources in recognition of his contribution to the Osborne operation.

project, 55km north of Osborne. Mr Valk admits he is disappointed not to have seen the Merlin mine come to fruition. â&#x20AC;&#x153;I thought it was a good project, but in the end it all comes down to â&#x20AC;&#x2DC;have we got the money and is that where we want to invest it?â&#x20AC;&#x2122; and your take on commodity prices,â&#x20AC;? he said. Mr Valk said he was sad to leave Osborne and was not sure

what his next role may be. â&#x20AC;&#x153;You see a lot of people come through these places, it is part of their lives and your own, and then they move on,â&#x20AC;? he said. â&#x20AC;&#x153;That is what happens (in mining). Now it is my turn to move on.â&#x20AC;? The Osborne processing plant is expected to lie dormant until about February when enough feedstock becomes available from the new pit.

Lift-off for wind project A $380 million wind farm development at Walkamin in far north Queensland has been approved by Federal Environment Minister Greg Hunt. The 180MW wind farm, a joint venture between Ratch Australia and Port Bajool, will include up to 63 turbines. Member for Leichhardt Warren Entsch said the approval was subject to 35 strict conditions which would minimise the projectâ&#x20AC;&#x2122;s potential environmental impacts. The project was expected to inject about $188 million into the Australian economy in construction - 60 per cent in FNQ, he said. Mr Entsch said it would create 155 direct jobs during the construction phase and 11 jobs during the operational phase.

Fuel to the Wulguru fire Wulguru Group can now add fuel to the list of industries it services following the recent purchase of Townsville-based business Abraham Steel and Pipe Fabrications.

The company bought Archimedes Engineering five years ago and it has since quadrupled in size.

Like Wulguru, Abraham Steel has been established for about 40 years.

â&#x20AC;&#x153;We see the same opportunities and ability to develop Abraham Steel,â&#x20AC;? Mr Landrigan said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a good-quality business with a good-quality reputation, so thatâ&#x20AC;&#x2122;s a big part of it.

The company specialises in providing services to the fuel industry and high end piping works. The purchase was an addition to Wulguru Group that expanded the companyâ&#x20AC;&#x2122;s service capabilities, general manager Wayne Landrigan said. â&#x20AC;&#x153;Currently we service mining, sugar, food processing and government infrastructure,â&#x20AC;? he said. â&#x20AC;&#x153;Fuel is a diverse industry that we didnâ&#x20AC;&#x2122;t previously have exposure to.â&#x20AC;? Wulguru Group has a proven track record when it comes to business acquisitions.

Welding of a pipe support

WULGURU GROUP

â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re looking to expand the services Abraham Steel provides to the fuel industries. They have maintenance contracts with major industry suppliers. We would also like to be in a position to provide expanded project services across a wide range of geographical locations.â&#x20AC;? Previous Abraham Steel and Pipe Fabrications owner Gary Abraham will be staying with the company in the position of manager.

WULGURU STEEL

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Queensland Industry Advocate | December 2015

NEWS

Armour takes Origin’s Roma Shelf assets Aquisition sees Queensland-based junior evolve from explorer to gas producer One company’s struggle is another company’s opportunity. That has certainly been the case for Queensland-based gas and oil company Armour Energy. Armour Energy recently commenced the acquisition of Roma Shelf petroleum resources, tenures and related production and transportation infrastructure from Origin Energy. The purchase price was $10 million cash plus $3 million in deferred consideration. A low oil price meant that the assets were no longer attractive for Origin, Armour chief executive officer Robbert de Weijer said. “It’s fair to say that oil prices hit the entire industry but it has been a bit different for us,” Mr de Weijer said. “Companies like Origin tend

The Kincora plant in the Surat Basin.

Robbert de Weijer Armour Energy CEO

to have higher overheads so it’s harder for them to make the numbers work. But for a nimble company like Armour, despite difficult market conditions, it

became a real opportunity.” Central to the infrastructure assets included in the deal are the Kincora gas, LPG and condensate processing facilities. The facilities have been in care and maintenance mode since 2012 and will be recommissioned by Armour Energy. The acquisition of the Kincora gas plant sees Armour transition from an exploration company to an exploration and production company. “All of a sudden we’re in a position where we have production in the near term,” Mr de Weijer said. “Production means cash flow

and that puts us into a very different category. “Once we have cash flow we can grow the business in the Roma Shelf and we’ll be able to put more money into exploration in some of the other areas we’re working in. So it makes us a much more robust company in my view.” The Roma Shelf assets also include the Newstead gas storage facility. The facility has a gross capacity of 7.5 PJ and currently contains 2.3 PJ of gas that is ready to sell once the recommissioning of the Kincora gas plant has been completed. “That gas could be sold almost

immediately on starting up the plant and would represent more than $US13m at a gas price of just $6 per GJ,” Mr de Weijer said. “Gas storage facilities are also very lucrative because it means you can store gas when prices are low and release to the market when prices are good.” The company hopes to complete the acquisition process and take the keys from Origin by the end of this year, with expectations of the gas plant coming online within the following six to 12 months and oil production within the first three months.

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HOW TO APPLY To submit your application please click ‘Apply’ below or for a confidential discussion please call Yasmeen on (03) 9263 5694. For more information please visit www.dulux.com.au.

10 NEWS

Queensland Industry Advocate | December 2015

Bowen stacker-reclaimer rebuild Adani is reforming a crack team to upgrade coal-loading facilities at Abbot Point Adani has committed to the multimillion-dollar replacement of the SR1 stacker-reclaimer at Abbot Point. Project manager for Adani Abbot Point Terminal Ian Sedgman addressed the recent major projects summit in Bowen organised by Whitsunday Marketing and Development. He reported on how Adani supports projects through long gestation cycles, the Carmichael coal project and the Adani group as a whole. Mundra Port Holdings purchased a 99-year lease over the Abbot Point coal terminal for $1.83 billion in 2011. The terminal services the northern Bowen Basin, with a capacity of 50Mtpa. Adani is separately pursuing to develop the T0 terminal,

which is designed to lift the port’s capacity to support the Carmichael Mine. The spend on the stackerreclaimer work will be split between German designer FAM, overseas fabricators and local contractors. “They (FAM) do all the machining components there (in Germany) and then they subcontract all the major structural components,” Mr Sedgman said. “Typically they’ll fabricate those in Vietnam or China. “These are then shipped as components to Australia and come in through Townsville, Mackay or to a special offloading facility at Abbot Point itself and a local contractor will weld the pieces together, erect the machine, (and) install all the electrical components.

Adani plans a major investment into its Abbot Point facilities.

“So you tend to find that the major structural components are done internationally and all the electrical and all the assembly is done in Bowen. “About half the contract value would be local and half would be international and that’s typical of how these machines are allocated.” The last stacker-reclaimer

built at Abbot Point was during the X-50 expansion, which was completed in 2012, also by FAM. It was a link that brought benefits, Mr Sedgman said. “The FAM team that built the stacker-reclaimers as part of the X-50 is the same team coming to build this machine,” he said. “Even the Adani team, we’re recruiting some of the same

people that were there at X-50 as well to provide continuity to the project “Here in Bowen, there are some local workers that managed and worked in the job previously. They built the last ones and they’re going to be able to build the new one as well.” The project is planned to be finished within three years.

Whitsunday bid for international runs The newest player in Australia’s international airport market will announce an operator to lead the development of the facility in early 2016. After an extensive market sounding, expressions of interest and shortlisted non-binding bid process, two companies have been invited to submit a binding proposal for Whitsunday Coast Airport at Proserpine following an evaluation of seven expressions of interest. The parties were asked for submissions to invest in, jointly develop, grow and operate the airport as well as Bowen and Collinsville aerodromes. The process of developing international carrier status had already begun, Whitsunday Regional Council chief executive officer and airport development

project manager Scott Waters said. “We are in a very strong position with 210,000 international visitors already visiting the Whitsundays each year,” he said. “This is the third largest international tourism market in North Australia and, as a result, we already have significant unmet inbound tourism demand. “Outbound travel is limited due to population, however our wider regional catchment through the Burdekin, Mackay and Isaac regions bolsters our outbound base, this coupled with a compelling argument for agricultural exports, particularly with New Zealand and northeast Asia, creates a robust business case for growth and development.” The immediate export action is

happening in Hong Kong where two developments were noted by Mr Waters. The first is a $5 million Memorandum of Understanding (MoU) recently signed for the export of seafood from the Whitsunday Coast over a two-year period. An agreement was also recently signed for the development of cold-store facilities at the airport. Mr Waters aid the growth of Gold Coast Airport in the late ’90s was an excellent example of a model for the Whitsunday Coast Airport concept. “Especially in the start-up phase,” he said. “The Gold Coast in the early stages attracted the likes of Freedom Air from New Zealand and with the advent of Australian-based low cost carriers in 2003

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the development of Gold Coast Airport has been phenomenal. “It is a course the Whitsunday Coast Airport might follow ... We’ll demonstrate our abilities, trial aircraft type and generally have the data to present to customers. This is about taking it to the next stage, in a measured and focused manner.” The airport has been redeveloped with $7.7 million in State Government and matching local government funding over the past four years. The 430ha site already had strategic assets that could be easily developed to offer integrated logistics solutions, Mr Waters said. That included the airport’s unique position and access to rail, the Bruce Highway and port facilities.

Queensland Industry Advocate | December 2015

OUR MINING HERITAGE

Haul trucks hit the city streets During the mining boom of the 1970s and early 1980s it was common practice for large mining trucks to be fully assembled in Brisbane workshops and driven on public roads to the port for shipping to mine sites. Komatsu Australia’s warranty claim administrator for KAC mining trucks, Trevor Jackson, was among those who enjoyed the regular opportunity to drive a mining truck through Brisbane’s city streets. Mr Jackson started his career as an apprentice fitter in diesel and heavy earthmoving equipment in 1976 with Komatsu predecessor Wabco Distribution Australia. “Unsurprisingly, there was no shortage of willing volunteers –

myself included – to assist with the early morning roading under their own power of mining trucks up to 85 US tons capacity, complete with police motorcycle escorts, through Brisbane city streets to the wharves, which were then located at Newstead on the north side of the Brisbane River,” he said. “One such job involved the roading of two fully assembled Wabco Haulpak 85D trucks destined for the GEMCO manganese mine at Groote Eylandt in The Gulf. “They were driven from our workshops in the south side industrial suburb of Coopers Plains, via Highgate Hill and South Brisbane, across the Victoria Bridge, traversing Queen St in the heart of the

Above - Wabco Haulpak 85D mining trucks, destined for GEMCO’s Groote Eylandt manganese mine, after completing their onroad journey from Coopers Plains to Newstead circa 1982.

Left - Komatsu Australia’s Trevor Jackson at work in the 1980s.

Brisbane CBD, and Wickham St in Fortitude Valley,” Mr Jackson said.

“Of course, this was well before the restrictions of today’s pedestrian malls and bus-ways.”

This year is Komatsu’s 50th anniversary of operations in Australia.

Surveyor sculpture a Gulf tribute

Jo Start unveils the Surveyor’s Mark sculpture at the Gregory Downs Hotel.

A team of Century Mine employees has created a sculpture paying tribute to surveyors in honour of Paul Bielenberg, who played a key role in developing infrastructure for the lower Gulf zinc operation. The Surveyor’s Mark sculpture was unveiled recently at the Gulf community of Gregory Downs. It commemorates the life and work of Mr Bielenberg, who surveyed the 304km pipeline corridor between Century Mine (Lawn Hill) and Karumba in the 1990s while working with Lodewyk Surveyors in Mount Isa. Mr Bielenberg died in a helicopter crash 10km west of Gunpowder mine in February 2006 whilst surveying possible

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routes for electricity transmission lines for a proposed copper processing plant for miner CopperCo. Pilot Vita Stott and two other passengers, CopperCo manager Thomas Lancaster and environmental scientist Derek Powell, were also killed in the crash. The Surveyor’s Mark sculpture was the work of Shane Gerlach and other employees from Century Mine’s Site Services Department. Mr Gerlach and his team used scrap metal at the mine to create the theodolite sculpture that symbolises the work of surveyors. The sculpture is being permanently

installed, along with a plaque, in the garden of the Gregory Downs Hotel, whose licensee Jo Start was Mr Bielenberg’s partner. Ms Start said she was happy to unveil the sculpture at the Gregory pub in the presence of local community members and MMG Century employees. “It‘s not only a permanent tribute to Paul, but to all surveyors who contributed to the development of Century Mine as well as all those who surveyed the Gulf from the 1860s onwards,” she said. During the past 16 years of operations, the pipeline that Mr Bielenberg surveyed has carried Century zinc and lead in a slurry form from Lawn Hill to Karumba.

12 NEWS

Queensland Industry Advocate | December 2015

Coal industry preps for success Organisers who called for technical papers are swamped with submissions The Australian Coal Preparation Society (ACPS) celebrates its 50th anniversary in March and organisers have brought forward the group’s major biennial conference by six months to mark the occasion. Conference chairwoman Ngaire Baker said notable guests at the 2016 Australian Coal Preparation Conference and Exhibition in Wollongong would include the society’s inaugural chairman Russ Burdon and first honorary secretary Murdoch Mackenzie. An anniversary dinner and ball at the University of Wollongong, ‘fireside talks’ and a display of memorabilia will highlight the 50-year milestone. “I have also established a heritage committee – we’re writing a book, that will be uploaded to a USB for all

participants, on the history of the society and how it has evolved,” Ms Baker said. The organisation was founded as the Coal Preparation Society of NSW in 1966 and soon extended to include a Queensland chapter. It now boasts about 900 members. ACPS national chairman Glen Fewings said the group’s charter was to increase knowledge and encourage interest in coal prep across various industry sectors. “So we’re welcoming people from coal utilisation, research, participating coal preparation plants and suppliers who have new ideas and new products,” he said. The biennial conference generally attracts about 350-400 participants and the 2016 event will feature about 40 exhibitors. Ms Baker said a technical

The Australian Coal Preparation Society aims to increase knowledge and encourage interest in coal prep across various industry sectors.

committee had been whittling down submitted papers from total of about 60 to a select 16 to be presented across four days.

“We have also introduced poster papers,” she said. “We had an influx of papers and they were of such good

Passion for processing and industry PR Ngaire Baker is the first female chair of the Australian Coal Preparation Conference organising committee and the only woman currently on the coal prep society’s NSW committee. But it is her line of work more than gender that stands out among her fellow Australian Coal Preparation Society members A journalist who married a mining engineer, the 50-yearold said she had done PR work while living and working in mining locations for 27

Ngaire Baker years. She developed a love for the processing side of the coal industry after moving to

the Hunter Valley about nine years ago and even considered gaining qualifications for a more hands-on coal prep role at one stage. “I spoke to an engineer friend some years ago and he said ‘you could go back to uni and do process engineering and you’d come out as a 48-year-old with no experience and it would be hard to get a hands-on job’,” she said. “I do my best work by promoting the industry.” Ms Baker said she had started going to Australian

Coal Preparation Society meetings while working for Schenck Process Australia. She is now running her consultancy business Baker Mining PR. While her profession as a journalist may have raised some eyebrows among ACPS peers, Ms Baker said she believed she had a lot to bring to the organisation. “I just love to promote all aspects of mining and what it involves – it’s my passion, it’s my life,” she said.

quality that we wanted to find a way to acknowledge that. The speaker will have an opportunity to pop up a poster or banner about their topic, and then talk about them in breaks and special sessions.” Ms Baker said hard times in the coal industry had prompted the conference theme “Optimising Your Coal and Asset Resources”. “We understand that the industry is suffering however we must look outside the square and focus on our assets and plant maintenance,” she said. The Arthur Le Page Lecture keynote address will be delivered by industry veteran Jim Donnelly. For more details about the Australian Coal Preparation Society or the 2016 Australian Coal Preparation Conference visit https://www.acps.com.au/

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Queensland Industry Advocate | December 2015

NEWS ADVERTORIAL

Asbestos legacy into the third wave The Diagnosis Tonya Fenton, 55, was diagnosed with malignant mesothelioma in October last year. Her only exposure to asbestos occurred when she worked in close proximity to the Expo 88 construction site in South Brisbane in the mid1980s. In the early 1980s, South Brisbane was a very different place. Run down and dilapidated, the future site of Expo 88 was lined with old boarding houses, blocks of flats, industrial estates and fibro homes. When Tonya Fenton was 25 years old, she started work at the old Yellow Pages Building on the corner of Grey and Sidon streets. Just a few months later in mid1985, demolition work to make way for Expo 88 was well under way. As a high-performing sales consultant, Tonya often worked long hours, sometimes arriving as early as 6am and other days not leaving before 10pm. She even worked weekends and attended numerous business meetings and lunches at nearby pubs, restaurants and cafes. Tonya’s building was on the boundary of the Expo 88 site. There was a lot of pressure to complete the project on time and the demolition site was incredibly dusty and dirty. She couldn’t escape the dust – it covered her car, her clothes and her shoes at the end of every

work day. Despite her office being completely enclosed, the dust still managed to penetrate their working space. Desks were regularly covered in a film of dust from the demolition site to the point where her employer arranged for fresh hand towels to be delivered several times a week to allow staff to wipe down their work spaces. Another company was engaged to wipe down all of the plants in the building, which regularly accumulated dust as well.

The Source A set of flats right next to Tonya’s office building was demolished just metres away from her window. This demolition produced huge amounts of dust and looking back, Tonya is certain it would have contained asbestos dust which she then inhaled. After the demolition, the excavation started and Tonya remembers it was just as dusty as the demolition work. Telegraph poles, underground pipes, roads and telecommunications pits were all removed and many of these concrete pits and sewers contained asbestos. Workers used power saws to cut pipes to size and Tonya remembers seeing clouds of clouds of dust less than 20m from where she was standing. No steps were taken to minimise the spread of the dust. Tonya never walked through the prohibited area of the construction site and only

walked on the outside of the site in order to conduct day-to-day business, but the simple act of coming to work was enough to expose Tonya and her colleagues to significant amounts of asbestos dust. Tonya was never warned about the dangers of asbestos at the time. Her employer never issued any cautions and there were no notices regarding the dangers of asbestos placed anywhere around the Expo 88 site at the time of the demolition and excavation work. Had she known about the dangers of asbestos and the fact that no appropriate protections were in place, Tonya would never have walked in the vicinity of the Expo 88 site. At the very least, she would have spoken to her manager about whether it was safe to come to work. Tonya was diagnosed with malignant mesothelioma after a biopsy in October 2014. She’s currently undergoing chemotherapy.

The Third Wave Tonya’s case is illustrative of the “third wave” of exposure – those who are involved with disturbing asbestos-containing materials in situ which includes demolition workers, home renovators and those who are in the vicinity of home renovators. Despite years of public awareness campaigns, this type of “third wave” exposure is becoming increasingly common. Cancer Council Queensland

Brisbane’s South Bank in 1984 - the site of World Expo 88.

research indicates that in Queensland alone there were on average 169 mesothelioma cases per year in 2012, a significant rise from 17 per year in the 1980s. In order to stop asbestos disease we need to stop asbestos exposure, and that means always getting a professional opinion if you think that any materials might contain asbestos that you, or others in close proximity to you, are working with. Tonya’s matter serves as a timely reminder of the risks associated with asbestos exposure endured by innocent bystanders. It also demonstrates the importance of registering asbestos exposure, which in most cases is as simple as providing a

written record of the details of the exposure. The time between exposure and diagnosis of an asbestos related disease can often be up to 30 years or more so it’s vital that if you think you have been exposed to asbestos that you register the details. Law firms that specialise in asbestos disease compensation claims are able to register asbestos exposure. There is also a National Asbestos Exposure Register which is managed by the Asbestos Safety and Eradication Agency. Taking this simple step may make it much easier to prove asbestos exposure that was endured many years ago if a claim for compensation is ever justified in the future.

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PUMA ENERGY BOOSTS FUEL SUPPLY FOR NORTH QUEENSLAND Puma Energy’s new fuel terminal at the Port of Townsville has brought added import capabilities to North Queensland, marked recently by the arrival of the largest cargo ship to grace the port.

important market for Puma Energy, and this 34 million litre fuel delivery is the first of many that will see North Queensland businesses and residents better supplied than they ever have been before.”

The Flagship Ivy, a Long Range One (LR1) tanker, berthed at the port on 5 October, making the terminal’s first delivery – 33.8 million litres of fuel.

Puma Energy hopes the terminal will position Townsville as a fuel hub within North Queensland, and assist in bridging the gap between the west and north.

The 228-metre ship is the first LR1 to enter the port and took local staff and engineers 42 hours to discharge 6,620,871 litres of ULP and 27,198,473 litres of diesel.

“We are now able to service towns further north than Cairns, and west through to Cloncurry and Mount Isa. Not only that, but our commercial offering to the mining and agricultural industries in these regions has been strengthened,” Mr Taylor said.

The delivery is a milestone not only for Puma Energy, which has committed to increasing fuel supply in the north, but also for Townsville, which now has added import and fuel supply capabilities. Puma Energy commissioned the terminal in September 2015 following a $40 million upgrade of the facility, purchased from Queensland Nickel in 2014. In the past 18 months the fuel company has invested more than $150 million in Townsville, purchasing the Queensland Nickel fuel storage facility, the Malpass fuel distribution business, developing new truck distribution and workshop facilities at Roseneath, and adding new sites to its fuel retail network. Puma Energy Australia general manager Ray Taylor said the terminal would supply more than 300 million litres of fuel and diesel each year, and reduce the frequency of longhaul road transportation needed to deliver fuel products to North Queensland. “Australia is a vast nation that relies heavily on road vehicles to transport fuel very long distances,” Mr Taylor said. “Puma Energy’s recent investment in storage facilities across the country means the need for fuel transportation is significantly reduced, particularly in rural and regional areas. “Our Townsville terminal will resolve fuel transportation issues, and help some of the most remote and inaccessible communities in the country gain improved access to fuel products and services. Mr Taylor said the Flagship Ivy’s arrival at the port was a special day for Puma Energy’s local team, who had been working hard to bring improved fuel supply to the north. “Our efforts to bring better, faster fuel supply to regional Queensland were rewarded recently as we celebrated our first fuel delivery, via the largest cargo ship the Townsville port has seen,” he said. “As the gateway to North Queensland, Townsville is an

when and where it’s needed,” he said. “Puma Energy is a global organisation with an integrated, international supply chain; but it’s also important to note that we are made up of local people who are committed to serving the local communities we operate within. “We do not operate a fly-in-fly-out business model, and are proud to recruit local talent for our projects wherever possible.” While the company has previously concentrated on

“The development really opens up new avenues for us, and has put Townsville on the map as a location of strategic importance to our national fuel supply network. “Our terminal project generated 250 jobs during its 10-month construction phase, and will produce lasting benefits for the region both logistically and economically.” The state government’s $200 million widening of the port access road has been a game changer for local investment, giving Puma Energy the green light to increase its presence in the area. “The new port facilities permit triple road trains to access the terminal and, thanks to the deepening of the fuel berth, 80,000 tonne vessels can now dock - double the size of ships previously able to access the port,” Mr Taylor said. “No other terminal in the region has the capabilities to handle deliveries of this scale, and we are confident the economic benefits to North Queensland will be immense.” To date, Puma Energy has invested more than $1 billion in Australia, spurred on by the dwindling refinery market and rising requirements for secure import networks. “While refineries close down across the country, we’ve been picking up the pieces and developing networks that will enable us to bring secure fuel supply to Australia

Glenn McDonald (Lanksey Constructions), Stuart Moodie (Puma Energy) and Bill Cox (Lanksey Constructions) at the opening of Puma Energy’s Townsville import terminal.

Investing in the region Puma Energy is not just another fuel company. We are investing in the North Queensland region with terminals now in Townsville and Mackay, upgraded service stations and reliable bulk fuel delivery. We’re passionate about creating local jobs and offerings in North Qld and offering customers competitive fuel solutions.

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PUMA ENERGY AND VALVOLINE PARTNERSHIP SPELLS GOOD NEWS FOR MINING Puma Energy and Valvoline have upgraded their fuel and lubricant facilities across Australia, with major investments in Townsville, Mackay, Kalgoorlie and Sydney to boost competition and supply for mining customers. The partners have stepped up their capabilities in the sector with the commissioning of Puma Energy’s Townsville fuel import terminal in September, and Valvoline’s recent $10 million upgrade of its blending facility in New South Wales. Australia’s oldest lubricants brand and the nation’s newest fuel provider began their collaboration in 2013, developing a new combined fuels and lubricants offering that would better meet the needs of the country’s mining industry. Flagship Ivy delivers TT2’s first cargo on October 5th 2015.

acquisitions, Mr Taylor said Puma Energy’s focus would now move to infrastructure development, particularly the construction of import terminals and other fuel distribution facilities. “We’re at a stage where we have a strong core business and solid base to grow organically, which means we’ll now look for opportunities where we can further increase fuel distribution channels to regional areas,” he said. “We understand Australia needs more terminals to connect and support regional communities, and our efforts are focused on identifying opportunities to do this.” The Townsville terminal supports Puma Energy’s growing local retail network, currently made up of nine service stations and un-manned sites acquired from Malpass Enterprises in 2014, as well as new sites at Roseneath, West End, and Cluden.

national fuel network,” Mr Taylor said. “It’s exciting to look forward and consider the positive impacts our terminal network growth and continued investment in infrastructure will have on Australians and businesses operating in regional areas.” Puma Energy entered the Australian market in early 2013 with the acquisition of three major Australian companies - Neumann Petroleum, Queensland Central Combined Group and Ausfuel. Through acquisition and strategic growth, the fuel operator now owns 270 retail sites, 20 depots and three bulk seaboard terminals across the country. In 2015 Puma Energy also added to its bitumen portfolio with the purchase of BP’s Australian bitumen business, making it the largest bitumen supplier in the country.

“Our relationship with Valvoline means we are uniquely positioned to offer our customers the best of both worlds when it comes to meeting their fuel and lubricant requirements,” Mr Silke said. “We’ve been strengthening our combined fuels and lubricants offering with Valvoline for the past couple of years, with a clear vision of bringing an innovative and tailored offer to the mining industry. “During this time we have worked closely with customers to evolve our offering, bringing on regional lubrication engineers to add value through cost optimisation, equipment availability and component life extension projects. “Valvoline represents more than 140 years of heritage as the world’s oldest lubricant brand. Their rich history and state-of-the-art facilities complement Puma Energy’s team of hydrocarbon experts and our growing national network.

“We are very committed to expanding our fuel supply network in Northern Queensland, and believe that Townsville is an important step in achieving this,” Mr Taylor said. “We’ve come a long way since we first launched in Australia in 2013, which is testament to our robust acquisition strategy and the dedication of our team.

“Our customers understand the benefit our integrated approach can bring to their business and have highlighted the flexible solutions and technical expertise Puma Energy and Valvoline provide as being key drivers in their decision making process.

“With the redevelopment of the Townsville terminal, the widening of the berth, and now the first delivery of fuel to the facility, North Queensland’s fuel capabilities are improving vastly, bringing with it more investment, more local employment opportunities and more downward pressure on fuel pricing. “North Queensland is a fantastic part of Australia and it plays a major role in the development of Puma Energy’s

Puma Energy Australia National Lubricants Manager David Silke said the affiliation was formed to provide a single source for a full range of fuels, industrial fluids and equipment to save large customers time, money and resources.

“Puma Energy’s ongoing commitment to investment in infrastructure in Australia, combined with our awardwinning, in-house logistics operation Directhaul, means we can offer secure, quality fuel and lubricants supply no matter where our customers are located.” Flagship Ivy arriving at the Port of Townsville on 5 October, 2015

Fuelling Australian Mines Puma Energy offers adaptability through customising total Hydrocarbon VROXWLRQV WR IXO´OO \RXU PLQHV UHTXLUHPHQWV :H XQGHUVWDQG ZKDWV LPSRUWDQW to your industry and have developed four pillars that we stand by when working with our mining clients both here and around the world.

1. Fully integrated safety standards

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16 INDUSTRY LEADERS

Queensland Industry Advocate | December 2015

What do you think? World-wide career

Graham Scott As Calibre Consulting Engineers manager, Capricorn Enterprise chair and Livingstone Shire Council deputy mayor, Graham Scott is a leader across many fields. Success came down to collaboration, Mr Scott said. His approach to leading is best summed up in his favorite saying; “I found the answer to every question that I’ll ever be asked - ‘what do you think?’” “Most times when you’re asked a question, particularly if you’re in a leadership role, the person already has a view but they’re not going to say it because you’re the boss, or the mayor or the chair so they present it as a question,” he said. “So if you say ‘I have some ideas but what do you think?’ then you have two people trying to solve

the problem not just one.” Mr Scott is a Rocky local through and through. He studied civil engineering at Central Queensland University and in 1993 he started up his own consulting and engineering business, Graham Scott & Associates. After almost 20 years he sold the business, which is now known as Calibre Consulting Engineers, with the idea of taking some more time off for fishing and family. Instead he took on a management role with the company, began a career in politics, joined the team at Capricorn Enterprise, became involved with the Great Barrier Reef Marine Park Authority and continues to be involved with fisheries and marine park issues.

“I think somewhere in my early forties I thought it was about time to get involved in a range of community issues,” Mr Scott said. “But I never thought when I sold my business that within three years I’d be busier than I’d ever been. It just feels like an obligation to give back to others after years of other people sharing their skills with me and offering their knowledge. It’d be almost selfish of me to just sit on the beach and go fishing – if you can help then you should. “I’m no expert in tourism, I’m no expert in local government, or marine biology or fisheries management, but I feel in all of those areas I’m quite capable of contributing. Solving the problem is the same process, it’s just that the information is different.”

P R OJ E C T

Page Maxson Scotland, Abu Dhabi, Indonesia and now Australia. These are just some of the places that Australia Pacific LNG chief executive officer Page Maxson has worked over the last 27 years. Mr Maxson graduated from Oklahoma State University in 1982 where he studied civil engineering. In 1988 he took a job with the biggest local employer in the area, ConocoPhillips, and so began a career in the upstream oil and gas business. Since then Mr Maxson has taken on a number of roles across the world including economic, commercial and strategic roles in Houston, Norway, Indonesia and West Texas, operating unit manager in Aberdeen and the president of ConocoPhillips’ Libya division. Now based in Brisbane, Mr Maxson is at the head of a company working to put Australia on the map as the global leading exporter of LNG by 2018. “I’ve been lucky to have had a career full of a range of different challenges that each also bring a new achievement with them,” Mr Maxson said. “The projects here in Australia are truly

D E L I V E RY

world scale they’re as big and complex as anything in the world. “To be a part of that industry and help form the company direction as I head to the back end of my career is very exciting and is a real accomplishment.” Working in a high-risk industry had come with its own sets of challenges, Mr Maxson said. Now one of his key career goals is to improve safety for APLNG workers and for industry. “Gaining an appreciation of what it means to try and lead a whole organisation from a safety point of view as opposed to just yourself has been a big part of my journey,” he said. “We all have a different approach to risk or doing things but as a leader you realise the way you behave sets the tone for a whole group of people and you have a responsibility.” Mr Maxson was a key presenter at the recent North Queensland safety leadership group lunch in Townsville. • See photos from the event on our Between Shifts page.

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Queensland Industry Advocate | December 2015

LOCAL GOVERNMENT

Councils jump on piggy-back dump idea Cr Neil Fisher at the Lakes Creek Rd landfill site.

On-site work is expected to begin next year to introduce the innovative waste disposal option, which involves building on top of existing capped landfill to add new cells.

A chance encounter at a mining expo has led to Rockhampton Regional Council adopting a “piggy-back” system to double the life of its Lakes Creek Rd landfill.

Rockhampton Regional Council business enterprise committee chair Neil Fisher said this followed Toowoomba Regional Council’s lead in planning a piggy-back system at

its Bedford St landfill. A chance meeting between council representatives at the Surat Basin Energy and Mining Expo in 2013 had brought the idea to the Rockhampton group’s attention, he said. “It is good having another local government that has done a lot of the legwork,” he said. “Probably if it hadn’t been for their work we would not be in the position we are.” Like the crust of a meat pie, the piggy-back option established lined cells on top of compacted areas, to be capped over the top when the cell was full, Cr Fisher said. The Lakes Creek Rd site would otherwise come to the end of its life in late 2016, but was now expected to operate for a further 20 years, he said. “Over the life of the landfill it will cost about $20 million– so it’s really not a staggering cost

for the set-up and operation,” Cr Fisher said. The newly opened waste transfer station at the Lakes Creek Rd site would help compact future fill and ultimately extend the life of the new piggy-back cells, Cr Fisher said. Toowoomba Regional Council waste services manager Troy Uren said a piggy-back liner was not a new concept on the world stage. “It is used in the United States and as part of their investigations Toowoomba Regional Council visited the Sunshine Coast Council’s Nambour landfill in 2012, where they were using the piggy-back liner approach with one of their landfill cells,” Mr Uren said. Toowoomba plans include inviting tenders for works in Cell 1A of the Bedford St site early in 2016.

Scarcity stokes innovation for Winton engineer Quarrying your own gravel for roadworks and sinking a bore for water are among the differences former Townsville engineer Richard Sheedy is experiencing in his new role out west. As Winton Shire Council’s director of works his portfolio covers road, drainage and concreting works, sewerage and water systems as well as responsibility for council plant and equipment including its machinery fleet. Mr Sheedy said he had seen the post in central western Queensland as a chance to take on a management role and gain broader experience. He remarked on the ‘can-do’ attitude he had found in the area.

P R OJ E C T

“It’s a refreshing sort of attitude – rather than looking at why we can’t do it, people say ‘what can we do to make it happen?’” Mr Sheedy said. “I guess also we’re working in an environment where nothing is a phone call away - you have to really rely on ingenuity and improvisation. You can’t go through the motions; you have to know what you are doing.” Mr Sheedy, 35, spent much of his childhood in the Ingham area, where his father Peter is the manager of Canegrowers Herbert River, and studied engineering at James Cook University. “I graduated from JCU at the end of 2001 and worked

D E L I V E RY

Richard Sheedy Winton Shire Council director of works

for Main Roads for about three and a half years, then with LCJ Engineers in Townsville for five

M A N A G E R S

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MOBILE LASER MOBIL SER SCANNING SCANNIN – ROADS The Department Depar nt of Transport and d Main Roads utilised utili the MLS system syste on n the Ring Road 4 pro project. t. PDM scanne scanned fourteen urteen (14) kilometres of road to a ±50 mm m accuracy ccuracy within a one hundred undred (100) metre m e swath. The works were completed d during g the site RDO (one day) to prevent disruption to the sites construction activities. The scan provided TMR with a volumetric measurement of road formation which was required for Contractual, Quality Assurance requirements to assist in the assessment of the Contractor’s submissions. The scan also provided an interim comparison between the works in progress and the design proﬁles. A similar scan, but undertaken via helicopter, was completed at the Pinnacles Quarry Townsville. This can be seen at https://youtu.be/9lpVWRe3uE8

MOBILE LASER SCANNING – ASSET MANAGEMENT Queensland Regional Councils have utilised this system for the rapid asset data collection of sealed and unsealed roads. The MLS provides the evidence in verifying pre and post damage caused by natural disasters. The pre and post evidence are necessary for the applicable grant applications to the Queensland Reconstruction Authority (QRA) requirements. PDM is able to provide asset tagger software which incorporates GPS locatable logging to damaged assets. Having accurate evidence of damage both pre and post disaster is a necessity in this environment. This system is utilised to rapidly collect a volume of data that can be analyses at a later date to prove the condition both before and after.

years and AECOM for almost five years as well,” he said. He was working with Flanaghan Consulting Group before moving to Winton with his wife and two sons, aged 1 and 2, mid-year. Mr Sheedy said one of the biggest differences with projects in Winton was sourcing road material. “When you are in a coastal area you can have your pick of material types,” he said. “When working to Main Roads specifications, for example, you can go to any quarry within a 50km radius you would have about five to choose from. “Out here there’s one

quarry in the area that does material close to Main Roads specification - the rest is utilising naturally occurring material and trying to sift through to find the best available material.” The council does this by opening up borrow pits off the roadside with approval from the relevant State Government departments. “You’re forced to use a bit more nous than picking up a phone and ordering it in from a quarry,” Mr Sheedy said. “Similarly with water, working here when it is quite dry there is an option of sinking a bore if you need to - we have done that on a job since I have been here.”

18 BETWEEN SHIFTS

Vicki Anziliero (Worksafe Connect), Rohan Geyser (IPL), Tony Lattin (Worksafe Connect) and Jared Erker (Worksafe Connect) at the NQ Safety Leadership Group lunch - The Ville, Townsville.

Gary Wybenga, Tony Cross, Greg Rains and Wayne Spencer (all Nordev) at the IQA NQ Branch annual golf day - Rowes Bay Golf Club, Townsville.

Queensland Industry Advocate | December 2015

Tim Cope (Port of Brisbane), Jo Ellice-Flint (Madam Republic) and Andrew Brinkworth (Port of Brisbane) at the Ag in the Asian Century Conference welcome drinks - Darling Downs.

Jennifer Hall and Frank Hall (TechCompServices) with Sam Foster (Dept of Natural Resources and Mines) at the AusIMM NQ Branch lecture - Townsville Yacht Club.

Scan this code with your mobile device to see more photos from these and other events

Kirk Burgess, Bruce Butler and Luke Harrison (all from Markwell Group) attend the Markwell Safety Exhibition - Garbutt premises, Townsville.

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Queensland Industry Advocate | December 2015

BUILDING MINING COMMUNITIES

SUPPORTED BY CANNINGTON

Mount Isa’s Good Shepherd Catholic College won the senior secondary division of Mount Isa Mines Rock Pop Mime Show with The Avengers: Age of Ultron.

Mine backs Isa arts Cloncurry State High School students enjoy Try Time! with under-20s player Bacho Salam (front) and YWAM youth worker Ratu Meli Burogolevu Dreunimolea.

Try Time’s national score South 32 Cannington’s Try Time! partnership with the North Queensland Cowboys has received national recognition as a finalist in the NRL’s Club Community Program of the Year honours. Nine NRL clubs lodged nominations for the award, which was won by the St George club’s Score Dragons initiative to create a more inclusive environment for young people with a disability. Even though the 2015 NRL premiers missed out on the top award, the club’s community relations manager Fiona Pelling applauded South 32 Cannington for its involvement in the

program since its inception in 2012. “Try Time! is a series of one-hour workshops targeting Year 9, which educates students on making positive individual choices on a range of recognised issues affecting this age group including substance abuse, body image and self-esteem, goal setting and the importance of an active lifestyle,” Ms Pelling said. “This year alone, the program has been delivered to more than 11,000 students in over 200 schools.” Ms Pelling said the program had a large footprint centred around Townsville but also extended west to Mount Isa.

It is a collaborative partnership between Cannington Mine, the Cowboys and Youth With A Mission (YWAM) and was developed in direct consultation with Education Queensland and Catholic Education. Principal corporate affairs for Cannington, Graeme Nielsen, said the business had forged a close working relationship with the Cowboys over the years with a focus on community-driven programs. “Try Time! has been a hugely successful program reaching over 25,000 young people since it was rolled out,” he said.

Towering example of goodwill Anglo American has donated $100,000 towards the construction of a new telecommunications tower at Clarke Creek, in the Isaac region of central Queensland. The project will enable mobile coverage and broadband internet access in a blackspot area which has a history of motor vehicle accidents. The May Downs Rd and Sarina-Marlborough roads which intersect the Clarke Creek locality are used by up to 3500 vehicles per week, with numbers expected to increase. Anglo American head of corporate affairs Jon Richards said Clarke Creek was a strategic spot in the network, with many company employees and contractors driving through the area between

Anglo’s Middlemount and Moranbah mine sites and Rockhampton or Mackay. “The lack of mobile coverage makes the floodprone area a blackspot on the map and we have a responsibility to our employees to actively make their workplace safe, including their travel to and from site,” Mr Richards said. “Anglo American is proud to be a part of a safety solution for our employees as well as for any motorist travelling through the Bowen Basin.” The $300,000 telecommunications project will commence construction in 2016, with the remaining funds coming from the Isaac Regional Council and the Federal Government.

Cannington Proudly supporting mining communities

Thirteen acts from regional schools demonstrated their miming and dancing talents in front of a crowd of more than 2500 at the 2015 Mount Isa Mines Rock Pop Mime Show recently. Mount Isa Mines is the longterm sponsor of the show, one of the largest artistic events of the year for local school children. Now in its 26th year, the event involves students from communities including Winton, Richmond, Cloncurry and Mount Isa.

Chief operating officer for Mount Isa Mines’ copper assets Mike Westerman said the company’s decision to continue as a long-term sponsor demonstrated its commitment to the activities that made Mount Isa a more vibrant place to live. ”Mount Isa has a long history of producing some of the country’s best known artists such as didgeridoo player William Barton and actor Deborah Mailman, so having a platform for our students to perform is something that’s really valuable.”

Power plug for SES Queensland’s three electricity network corporations are teaming up to fund new equipment for State Emergency Service (SES) units across the state. Energex, Ergon and Powerlink officially launched the $200,000 partnership in October, saying it was the first time the trio had worked together to support a volunteer-based organisation. Ergon Energy chief executive Ian McLeod said the company had a long and personal association with the SES through its employees over years. “Many of our staff who live and work in regional Queensland are also SES volunteers and play a vital role during disaster response or other situations,” he said.

Heart in the right place Scores of regional Queenslanders with undiagnosed, lifethreatening heart conditions have received urgent medical treatment in the past year thanks to a mobile cardiac service. Launched in October 2014 with foundation partner Arrow Energy, Heart of Australia brings medical services to rural communities with a 25m-long custom-designed clinic driven by a Kenworth K200 prime mover.

The service reported that its specialists had discovered undiagnosed cardiac conditions in 70 of the 2100 people it treated during its first year. Heart of Australia added Longreach to its northern route this year and also visits centres including Dalby, Goondiwindi, St George, Charleville, Roma, Emerald, Barcaldine, Hughenden, Charters Towers and Moranbah.

20 LIVING REMOTELY

Queensland Industry Advocate | December 2015

Aussie Squad’s mission to bridge family gaps

Saul Casio Aussie Squad director

A wild imagination and a love of the mining industry has sparked an idea that could help fly-in, fly-out (FIFO) families stay connected. Six years ago Saul Casio began working in the Australian mining industry as a dump truck operator. Away from his wife and daughter, he began to feel the loneliness and isolation experienced by many FIFO workers across Australia. “Sometimes I didn’t even have a phone connection to call my family and our contact was only through Skype - we went through a lot of hard times,” he said. “I began to speak to other workers who felt the same way. “Some told me that even though they had worked in mining for years, their families had no idea what they did when they were away.”

It was while doodling a picture of a dump truck at work that Mr Casio had a light bulb moment. “I thought, what if this could be a way to be closer to our kids and family,” he said. “When I’m on a mine site I always feel like I’m sort of on a different planet. We are so far away and the land looks so different.” Many doodles later, Planet Oz began to take shape. Planet Oz is an online-based comic book platform by Aussie Squad featuring the adventures of Ozmic and Ozmica. The pair travels to another planet (Planet Oz) on a mission to find their fly-in, fly-out Dad. Throughout their adventures they meet Dave the dozer, Greg the grader, Laurie the loader and many more characters as they learn about the different jobs and

equipment that can be found on a mine site. Mr Casio, Aussie Squad director, said the comic was a way for FIFO parents to explain to their families about where they went for work and to encourage a positive association with the FIFO lifestyle. As a keen artist and lover of comic books it was a natural way for him to connect with his daughter, said Mr Casio. “My daughter Ruby is six years old and there have been times when I have made comics for my daughter to read when I have gone to work,” he said. “It really helps her understand and now she really believes that I’m some kind of super hero.” Other kids and families are invited to join the adventure by signing up to the comics online at http://aussiesquad.com.au/ Ozmic is one of the comic book characters.

Sally Murphy with her book.

Helping kids cope with FIFO lifestyle A personal experience with a remote work arrangement prompted author Sally Murphy to write a book for families in similar situations. “I have had lots of friends who have FIFO (fly-in, fly-out) partners, and I always swore I couldn’t do it,” Ms Murphy said. “But five years ago we were living in a town which didn’t have schooling to year 12, and the cost of sending our children away to boarding school became prohibitive. So, we decided to set up a second home in a town three hours’ drive away and became a DIDO (drive-in, drive-out) family.” With the DIDO lifestyle came a special set of challenges, Ms Murphy said. “Because my husband’s job is five days a week, we manage to be together most weekends, with either me going there or him coming here, but gosh those weeks are long. I have so much admiration for people who go weeks and months apart,” she said. “As a writer, I am always looking for new stories which will meet a need and get to the heart of an issue or situation, and I decided the impact of FIFO on kids and parents was an important topic.” Fly-In Fly-Out Dad tells the story of how one young boy uses his imagination to cope with the long absences of his father. The book aimed to help children understand why parents worked away and to adjust to the lifestyle, Ms Murphy said. Fly-In Fly-Out Dad was released in July this year and is available from bookstores and online via http://www. booktopia.com.au/fly-in-fly-out-dad-sally-murphy/ prod9781743467299.html

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Queensland Industry Advocate | December 2015

OPPORTUNITY TOWNSVILLE NORTH QUEENSLAND

Thurston’s cry solicits support for stadium Townsville’s Integrated Stadium and Entertainment Centre (ISEC) bid is coming to a head as the State Government prepares to release a detailed business case for the project. The proposal was thrust into the national spotlight recently with North Queensland Cowboys co-captain Johnathan Thurston raising it at the NRL grand final. Townsville Enterprise chief executive officer Patricia O’Callaghan also reported positive feedback after a recent delegation to Prime Minister Malcolm Turnbull. Ms O’Callaghan said building the inner city stadium was a priority for the region as it would stimulate urban renewal, providing the catalyst for an estimated $2 billion of flowon private investment for the Townsville City Waterfront Priority Development Area. “It would be a boost of confidence in a time that we need it the most,” she said. With an estimated cost of about $300 million, the project is expected to generate 550 jobs in construction as well as ongoing jobs. “It’s also about creating a

Johnathan Thurston North Queensland Cowboys co-captain

precinct in the cultural heart of our CBD, an area that not only can our local community be proud of and use, but which would stimulate visitation through sporting events, conferences, concerts and festivals,” Ms O’Callaghan said. The State Government has already committed at least $100 million to the project, and Ms O’Callaghan said there had also been interest from private investors. Proponents are seeking a funding commitment from the Federal Government and hope

An artist’s impression of planned stadium.

to have the facility open for business in 2020/21. “We’d like to have the funding committed by next year and construction starting soon after that,” Ms O’Callaghan said. The cause received a public boost in October when Thurston took the opportunity after the Cowboys’ grand final win to remark that, ‘North Queensland deserves a new stadium’.

“I think Johnathan Thurston’s comments have placed the topic on the national agenda and we have now got national media following our advocacy and the commentary around why the city needs projects like this to go ahead,” Ms O’Callaghan said. The ISEC proposal is for an international-standard 25,000seat stadium and a 6000-seat

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entertainment and convention facility, incorporating indoor and outdoor events. Townsville Enterprise general manager economic development Tracey Lines said the mayors of Townsville, Palm Island, Charters Towers, Hinchinbrook and the Burdekin fully supported ISEC as a regional project of priority.

22 OPPORTUNITY TOWNSVILLE NORTH QUEENSLAND

Queensland Industry Advocate | December 2015

Poles and wire put power Consensus leads to potent energy future projects push Queensland’s next 2000MW of generating capacity must be established north of Mackay, Townsville Enterprise says. Securing a State Government mandate on this issue is among a range of measures the group is campaigning for to reduce the region’s energy costs, a critical factor in attracting industry to the region. It also hopes to see the North host the majority of projects set go ahead under Ergon’s pledge to buy an additional 150MW from renewable sources and the Federal Government’s Renewable Energy Target (RET) scheme. Townsville Enterprise general manager economic development Tracey Lines said the group would also be pushing hard for the Northern Australia Infrastructure Facility, offering concessional loans, to support transmission and distribution infrastructure within the region. “If you get that connection infrastructure a lot of projects are viable, it will allow them access to the National Electricity Market,” she said. Townsville Enterprise joined forces with Federal Member for Herbert Ewen Jones to hold an energy roundtable in September involving about 40 energy experts, suppliers, major users and State Government representatives. Ms Lines said they had discussed the constraints facing North Queensland’s energy system, potential projects, innovation, market structure and how the energy sector must evolve before the region could expand to its envisioned

The future of energy in North Queensland will be a mosaic of coal, gas, ethanol, solar, wind and hydro generation.

population of 5-6 million people by 2050. The group reached consensus on a number of resolutions that Townsville Enterprise is now pursuing in discussions with State and Federal governments. Ms Lines said they firmly believed the future of energy in North Queensland would be a mosaic of coal, gas, ethanol, solar, wind and hydro generation. “We are abundant with all of the fuel sources we could possibly need for a thriving domestic market and also an export market,” Ms Lines said. “People need to differentiate the two - we can have a thriving domestic market to support our economy and development and a

thriving export market as well.” Townsville Enterprise is also pushing for regulatory changes, saying the present system is disadvantaging North Queensland. Among these are a revision of 30-minute settlement process and establishment of more than one pricing region within Queensland. Mr Jones said energy and water were the key to developing the North and that people must be looking not at 2015 but to 2050 and beyond. He stressed the importance of gaining government backing through the concessional loan facility for ‘poles and wire’ infrastructure.

Townsville Enterprise is spearheading a campaign to highlight the region’s infrastructure priorities and make the most of the Federal Government’s Developing Northern Australia agenda. The consultation process was finalised in late October, Townsville Enterprise general manager economic development Tracey Lines said. It took in the Townsville, Charters Towers, Hinchinbrook, Burdekin and Palm Island councils as well as Townsville Enterprise’s membership base of 382 businesses. “For this economic infrastructure work we have worked with all the infrastructure owners including the major (northwest Queensland) mines and refineries,” Ms Lines said. The group used the White Paper on Developing Northern Australia “Our North, Our Future”, and the Northern Australia Infrastructure Audit it draws upon, as a starting point. The White Paper makes funding commitments totalling $1.2 billion to bolster northern development and the $5 billion Northern Australia Concessional Loan Facility is available to help get major projects off the ground.

Tracey Lines Townsville Enterprise general manager economic development

Ms Lines said local priorities included the Integrated Stadium and Entertainment Centre in Townsville’s city heart, energy sector reform and new generation to be based in North Queensland, port upgrades, raising the Burdekin Falls Dam wall and a new dam at Hell’s Gate on the Burdekin River. An overhaul of the rail line between Townsville and Mount Isa, including the Townsville Eastern Access Rail Corridor and opening up the Galilee Basin also topped the most-wanted list. Ms Lines said the next steps would involve working with private sector partners to take advantage of the concessional loans on offer to help Northern Australia achieve its potential.

Region’s development hinges on water Raising the Burdekin Falls Dam wall tops the Townsville region’s water wish list for consideration under the Federal Government’s Northern Australia development drive. Townsville Enterprise general manager economic development Tracey Lines said water security and access was the key to unlocking agricultural growth in North Queensland. “We will also need water to supply the urban development foreshadowed in population projections,” she said. “We looked at water in the Townsville region and the most viable option was the Burdekin Falls Dam. Currently there is enough capacity, but we should be planning for a time when there is not.” SunWater manager business development Russell Paton said the raising of Burdekin Falls Dam along with the proposed Nathan

Dam in central Queensland and Nullinga Dam near Mareeba were good examples of the type of projects which could be supported by Northern Australia initiatives. The Burdekin Falls Dam Stage 2 proposal involves raising the dam by 2m, which would increase the full supply volume of the dam by 32 per cent to 2.45 million megalitres. “This increase would allow for up to 150,000ML per annum of additional water entitlements in the system,” Mr Paton said. “This has been considered for some time as the next step forward in capturing the value of the water resources of the Burdekin River catchment.” He said the project could provide additional water for multiple beneficiaries including mining activities in the Bowen and Galilee basins and urban water security for Townsville.

The Burdekin Falls Dam, 200km south of Townsville.

Queensland Industry Advocate | December 2015

OPPORTUNITY TOWNSVILLE NORTH QUEENSLAND

Port and rail freight drive NQ growth The Townsville Port Expansion project and work on the connecting rail freight network have been identified as key infrastructure planks to drive the regionâ&#x20AC;&#x2122;s growth. Handling $11 billion in trade last financial year, the Port of Townsville is northern Australiaâ&#x20AC;&#x2122;s largest general cargo port and remains No. 1 nationwide for copper, zinc, lead and sugar exports. Port of Townsville Limited chief executive officer Ranee Crosby said the organisation believed it was imperative that the focus of investment in Northern Australia was on major infrastructure that would enable the region to export commodities demanded by a burgeoning Asian middle class, and to import the goods

demanded by fast-growing population centres in the North. â&#x20AC;&#x153;An efficient and cost effective supply chain is key to this growth,â&#x20AC;? she said. â&#x20AC;&#x153;The Port of Townsville, with its close locality to Asian markets and established port and road and rail connections, is ideally placed to service the growing northern Australian economy.â&#x20AC;? Ms Cosby said the portâ&#x20AC;&#x2122;s outlook for the future was strong, with trade volumes anticipated to treble over the next 20 years. The recent Northern Australia Infrastructure Audit identified gaps that would be met by the planned Townsville Port Expansion and Townsville Eastern Access Rail Corridor projects.

Six new berths in the outer harbour and channel improvements to accommodate long-term trade growth are planned. Photo: Megan MacKinnon

Ms Crosby said POTL expected to finalise the EIS process for the expansion project by the end of 2015, following extensive public consultation and feedback from agencies. â&#x20AC;&#x153;It is anticipated that approvals for the project would be obtained early 2016,â&#x20AC;?â&#x20AC;&#x2122;she said. â&#x20AC;&#x153;The delivery of the project is driven by trade demand and is able to be completed in stages

suited to the forecast trade volumes.â&#x20AC;? The expansion project will involve the staged development of up to six new berths in the outer harbour and channel improvements to accommodate long-term trade growth of up to 48 million tonnes per annum by the year 2040. The Townsville Eastern Access Rail Corridor project

would boost rail freight network capacity by increasing the length of trains travelling into the Port of Townsville to 1400m and minimising bottlenecks at peak times. It would also reduce freight rail traffic through residential areas and provide opportunities for development of the Townsville State Development Area.

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24 ISA RECOVERY

Queensland Industry Advocate | December 2015

The last half of 2015 has been an up-and-down ride for the Mount Isa region as it continues to weather the resource industry’s doldrums. Glencore’s move to cut jobs across its zinc operations was a blow, but there was positive news on the project front. Below are six big reasons the mighty mining city will survive and thrive.

The North West’s mining industry boasts an estimated residential workforce of about 3500 full-time employees, according to the Queensland Resources Council. And it says the operations employ about 6200 employees and contractors in total. Empower Economics principal economist David Lynch said unemployment in the north-west had been declining in recent years, while the total labour force in the area had stayed about the same, meaning the decline was not due to people leaving in search of work elsewhere. June quarter figures showed an unemployment rate for Mount Isa city of 2 per cent, and 2.7 per cent for the wider Outback North statistical area. However Mr Lynch noted that people in the area were facing changes in wages and conditions as mining operations looked to cut costs in line with the shift in commodity prices. Recent cuts announced in Glencore’s zinc operations would be substantially offset by new mines coming on such as the Little Eva copper project and Dugald River mine, Mr Lynch said. “This interest in new investment is certainly reassuring during a time of general downturn. It highlights the value of the North West Minerals Province as a resource of national importance and international standing,” he said

MMG recently announced it would bring the Dugald River zinc project into production in 2018 at an expected cost of $1 billion, and the planned $294 million development of the Little Eva deposit has a similar timeline. Then there is the planned construction of the $800 million North East Gas Interconnector (NEGI) Pipeline, to link NT gas to eastern gas markets via Mount Isa by 2018. As well as being a major project on its own, the NEGI gas pipeline will add certainty for Incitec Pivot’s Phosphate Hill operations and Mr Lynch believed it should help bring new mines online by providing a more competitive energy market. While industry sources have expressed concerns about the region’s project pipeline reducing to a dribble, the bigger picture is one of promise – with the North West Minerals Province hosting an estimated 75 per cent of Queensland’s proven metalliferous resources such as copper, silver, lead and zinc.Vast areas of prospective ground are still considered under-explored. Altona Mining managing director Alistair Cowden describes the potential of the Mount IsaCloncurry area as superb. The area had a 100-years-plus history of mining and hosted major mines and deposits at areas including Mount Isa, Duchess, Cannington, Ernest Henry, Mary Kathleen, Dugald River, Little Eva and Osborne, he said. “Such an area of the earth’s crust is clearly special and where man has found value in the past, he will do so again. I expect we will still be mining deposits and new discoveries in 50 years,” Mr Cowden said.

There are still plenty of jobs in mining

Mount Isa deputy mayor and businessman Brett Peterson.

Area appeals to logistics business Global logistics operation EMO Trans has homed in on Mount Isa as a go-ahead place to expand its business. Locally based Airside Logistics has been acting as an agency for EMO Trans since mid-year, streamlining import/export processes for clients in the North West. EMO Trans chief executive officer Ian Ahern said the agency gave Mount Isa the customs clearance services that would be expected in a capital city. “There is a significant number of players up there that have a requirement for international logistics services and product that comes from overseas,” Mr Ahern said. “What we’re offering to them is the ability to cut down the turnaround times and have access to services that you would normally expect at larger airports and ports.” The number of companies requiring such services in Mount Isa was a big factor in drawing EMO Trans to the area, he said.

But Mr Ahern also cited the fact Mount Isa was a ‘go-ahead’ city. “It’s a progressive town and that makes it the ideal partner for us,” he said. EMO Trans was also banking on growth when it came to town and the recent approval for Jemena to build the $800 million North East Gas Interconnector pipeline between Tennant Creek and Mount Isa is helping to fulfil that expectation. Mr Ahern said Mount Isa was the company’s first inland base throughout Australia and its only regional Queensland base apart from Cairns. The company was the major sponsor for this year’s Northern Outback Business Awards and Mr Ahern said he intended to maintain a high level of community involvement. “I don’t expect something for nothing. When we go to an area we go there to be part of that area. We’ve always been that sort of business,” he said.

Mount Isa is And more resource projects on the horizon

But the city can do other things as well

A lull in mining growth has driven the community to diversify, according to Commerce North West manager Sue Wicks. “In the past we’ve been very focused on the fact that mining provides our source of income and the economic lull has made people think outside the square – so we do have people looking at other options,” she said. “For example tourism is an area where Mount Isa could thrive. It is a fantastic tourist destination, but in the past we haven’t been hungry enough to embrace tourism as an industry. I think that is changing.” She also highlighted the role of City Development Manager Sheridan Ward, appointed this year to help achieve the goals of Mount Isa’s City Futures Taskforce - consisting of Mount Isa Mines, Mount Isa City Council, Commerce North West and the Department of State Development. Part of her brief was to focus on liveability and what the city could do to encourage people to come to Mount Isa -whether for a visit, a long-term stay or for life, Ms Wicks said.

Queensland Industry Advocate | December 2015

moving forward Mount Isa Mining Supplies owner and deputy mayor Brett Peterson highlights the area’s mature infrastructure – power, water and transport networks – as huge ticks for its ongoing might. The NEGI project adds weight to this and Cr Peterson hopes it will spur development of a transport and energy corridor between Mount Isa and the Northern Territory. “They are investigating the feasibility of a Mount Isa to Tennant Creek rail line and it’s essential that we have this corridor put in place in the early stages,” he said. “What I would like to see is to have the same gauge they’ve got from Adelaide to Darwin, then Mount Isa could become a freight hub for the rest of Queensland from the NT, South Australia and Western Australia. There are some exciting prospects that could come out of the railway line for this area.” The city’s location, local industries and its established role as an infrastructure hub for the greater region meant it should also be a key focus of the federal Government’s Northern Australia development push, he said.

Its supply sector is resilient

Cr Peterson said the local business community would forge ahead despite recent setbacks in the resources industry and that the mining centre was better placed than many to ride out downswings as it was not dependent on a single commodity. “While I know hard decisions have to be made in the mining industry, Mount Isa has always been a very resilient community and the community steps up to the plate,” he said “There is still more exploration going on and, being part of the world’s richest minerals province, obviously there’s a lot more to be tapped into.” North-west Queensland businesses affected by the downturn were sticking it out, he said, noting that the impact had been greater on Townsville as a service hub. “It’s tight and everybody has said they are working as hard but for a smaller return - but the business community is prepared to do that,” Cr Peterson said. “We will all work with each other and we do that very well.” Ms Wicks noted that confirmation of the NEGI project had given the local business community a stronger sense of the future. “Jemena have told us they are keen to employ locally and engage local contractors where possible,” she said. She said the NEGI announcement and Glencore’s decision to operate the local copper smelter beyond 2016 had contributed to a positive vibe in the city.

People love living there

Mount Isa has a strong community spirit, according to resident Zyra Knight, with many local groups putting their time and skills into creating events and fundraising for causes within the community. Ms Knight is the President of Neighbourhood Watch Mount Isa, an active member of the Zonta Club of Mount Isa, and a supporter of the Mount Isa Theatrical Society and Arts On Alma. Ms Knight and husband Gary found the city welcoming from the start, when they moved to Mount Isa from New South Wales in 2009. “I think by the time we had lived in Mount Isa for two months, we had made more friends than we managed to make in the two years that we lived in the far south coast of NSW,” she said. Mount Isa had a diverse population, a good range of shops, many sporting and cultural activities, and access to amazing outback scenery and landscapes to be explored and enjoyed, she said. “The town has experienced the boom and bust of the mining industry before and it will rally together to get through the next bust, I have no doubt,” Ms Knight said. “You just can’t keep a town like this down, too many good people and companies that call this place home, who will work hard to get it through the tough times and grow the city.”

Photo: Ben MacRae

Mount Isa is a regional infrastructure hub

Wade Remington with some Topfire Constructions vehicles.

Life-work balance Wade Remington has fond memories of working on cattle stations in the Mount Isa region as a 20-year-old mechanic. So when he got tired of the fly-in, fly-out lifestyle in the Bowen Basin coal industry, after a decade of work there, the North West sprang to mind. “Everyone was so friendly and nice that I always thought I wouldn’t mind going back,” he said. Mr Remington started Topfire Constructions in Mount Isa in 2009 and hasn’t looked back – taking out the business of the year and business growth awards at this year’s Northern Outback Business Awards. “It’s good being recognised for all the hard work we put in,” Mr Remington said. Topfire Constructions focuses on civil infrastructure including major earthworks, pipeline welding and repairs, civil contracting, heavy haulage and plant hire for a wide range of mining, industrial and commercial projects. For Mr Remington, the key to success in a tough market is being versatile and reliable. “Times change and you have to be prepared to change, especially in this climate… and be bloody good at what you do and make sure the customers come first,” he said That included being prepared to go in at 2am when a customer had a problem, such as pipeline blow-out he dealt with recently for Glencore, he said. Mr Remington grew up in Murgon and took on an apprenticeship as a diesel mechanic in Gympie at 14, before also gaining qualifications as an electrical linesman. He said he had never set out to go into business, but an opportunity arose and he ran with it. “I started with just myself, an Isuzu service vehicle and $10,000,” he said. The business now employs nine people fulltime and boasts a fleet worth millions.

Awarded radio tech tuned to North West Radio technician Sam Driver was studying engineering in Brisbane before work opportunities drew him to Glencore and north-west Queensland. Mr Driver, 26, grew up in the Blackall area, did well in school and chose to pursue a degree with the University of Queensland. “I started it, then wasn’t sure what I wanted to do – I didn’t really want to sit at a desk all the time,” he said. “I took some time off and ended up coming to Mount Isa just temporarily. Now I have been here seven years.” Mr Driver got a start as a trades assistant with the Mount Isa Copper Operations radio technical team. After a few weeks, the tradesmen he worked with recognised his potential and encouraged him to apply for an apprenticeship as a radio technician. He has since won the title of Apprentice of the Year at the 2015 Queensland Training

Awards Northern Region final. Looking ahead, Mr Driver would like to gain a second trade, either as an electrician or autoelectrician, and is considering completing his engineering degree via correspondence. Mr Driver saw himself staying in the Mount Isa region, saying mines in the area offered a variety of career pathways as well as being a great incubator for young talent. “Where I am is a 24-7 operation with four crews - so there are a lot of experienced tradesmen, a lot to learn from,” he said “They do pump out good quality tradespeople.” Mr Driver also believed his experience of heading to Mount Isa for a short stint of work and remaining for years was quite common among his colleagues. “Everyone comes up here ‘temporarily’ and ends up staying – it’s a good community,” he said.

26 CENTURY

Queensland Industry Advocate | December 2015

A farewell to mining at Century After 16 years of operation, Australia’s largest open-pit zinc mine has downed shovels. MMG’s Century mine, located in north-west Queensland, completed mining in August. The mine and processing operation are at Lawn Hill, while the associated concentrate dewatering and ship-loading facilities are at the Karumba Port

on the Gulf of Carpentaria. The completion of mining was a significant milestone for MMG, company chief operating officer Marcelo Bastos said. “Century has consistently made a significant contribution to MMG, both financially and through the commitment to our growth objective by the dedicated team of thousands

of workers over the life of the mine,” he said. “Century has also made a strong contribution to the Queensland economy and to the employment opportunities for Gulf communities. Through one of the first Native Title agreements of its kind, over 900 Aboriginal employees from local Indigenous groups

or communities have been part of the operation since its development. “The completion of mining at Century is a considerable factor in the shrinking global supply of zinc. “We remain positive about the long-term fundamentals for zinc, which supports our decision to invest in Dugald River, one of the world’s highest grade undeveloped zinc deposits.” While mining has wound up, processing of stockpiled ore continues. MMG expected to complete processing of the approximately 700,000 tonnes of Century ore

built up during the final months of mining operations in 2015. Additionally, stockpiled ore from the Dugald River project also located in north-east Queensland will be processed at Century into early 2016. About 450,000 tonnes of Dugald River ore was stockpiled during the 2014 trial stoping program. About 296,600 tonnes of Dugald River ore has already been sent to Century in preparation for the processing. Transportation of Dugald River ore by road to Century commenced in May.

Port of Karumba, located at the mouth of the Norman River.

Karumba Port still open for business MMG Century Mine was the largest open-pit operation in Australia.

Model agreement delivered long-term benefits for region An agreement between four native title groups, a mining giant and the State of Queensland made history almost 20 years ago. In 1994 traditional owners in the Gulf of Carpentaria raised concerns over the environmental impact that MMG’s Century zinc mine would have on the land. A deal was struck after three years of negotiation that included protests and a sit-in. The Gulf Communities Agreement (GCA) was signed in 1997 and listed the goals of the Native Title Groups. These related to protection of the land and environment, economic participation, access to traditional land and pastoral leases and maintaining Aboriginal sites and cultural heritage. Carpentaria Shire mayor Fred Pascoe was part of the original agreement discussions. “First and foremost everybody’s fear was that the country could be left with irreversible damage,” Cr Pascoe said. “When you dig a big hole in the ground the size of Century there will be changes to the country. “We didn’t want the water affected, there was a lot of concern over tailings dam and spillage and all that stuff. “So negotiations were around how the mine

could be in sync with the country around it. “Once people began to get some comfort that the mine could take place without killing the environment then we started to think about what benefits could come from it such as employment opportunities.” In 2012 the Centre for Social Responsibility in Mining (CSRM) conducted a 15-year review of the agreement. It found that more than 900 people from the Native Title Groups or local communities were employed over the 15 years of the mine with GCA employees consistently making up more than 15 per cent of the workforce. “Major cattle stations have been handed back to traditional owners, there’s been an Aboriginal Development Benefits Trust (ADBT) set up, business development in the Gulf and companies and individuals have enjoyed the benefits of that,” Cr Pascoe said. “It has also given the groups a chance to monitor their environment and keep the mine company on the straight and narrow - so it’s very significant.” While most economic obligations within the agreement will progressively ease over time, environmental obligations will continue until lease relinquishment. That is expected to be around 2045.

The closure of MMG’s Century mine in Cloncurry has left a half million-dollar rates gap for the Carpentaria Shire council. The loss is set to continue once Century mine facilities at the Port of Karumba, located at the mouth of the Norman River in the Gulf of Carpentaria, enter the care and maintenance phase. The Century concentrate dewatering and ship-loading facilities make up a large component of the port’s infrastructure. Zinc concentrate is piped to the port from the mine at Lawn Hill, dewatered, and then loaded on to transfer vessels to export ships that anchor in deep water off the coast. The last mineral exports from the mine are expected early next year. “The port is the largest rate payer,” Carpentaria Shire mayor Fred Pascoe said. “The closure of Century means less dollars going into the ratepayers’ bucket. “At the moment we have agreed upon reduced rates and it will be up to council to determine it again each year.” Job loss was also a concern for the region, Cr Pascoe said. “There have been several local people that have lost their jobs already,” he said. “The other thing is that I think there is still a fair bit of uncertainty around what exactly the care and maintenance phase will mean and how many jobs

will be there then.” The port infrastructure includes a dredged entrance channel that has traditionally been funded by MMG. The suspension of MMG operations at Karumba would have implications for the ongoing maintenance of the shipping channel, Ports North, acting chief executive officer, Michael Colleton said. “While gradual loss of depth will occur, current port users, including commercial fishing, cargo and live cattle operations, will be able to continue to access the port without significant impacts in the short to medium term,” Mr Colleton said. “Ports North, together with the regional harbour master, is continuing to work with cattle exporters, in particular, to identify suitable shipping arrangements to optimise future port utilisation.” Cattle and fresh produce are industries that have the potential to ramp up through the port but the void left by Century could only truly be filled by another mine, Cr Pascoe said. “Century has already proven it can operate 365 days a year,” he said. “We (council) canvassed three years ago and potentially there were 16 other parties who were exploring so there’s potential there. There are certainly people out there putting holes in the ground.”

Queensland Industry Advocate | December 2015

IQA 2015 CONFERENCE

Hold on for rapid-fire changes The theme of professional development and minimising future shock ran through the recent Institute of Quarrying Australia national conference titled ‘The Infrastructure Boom: Our Industry Building Communities’. CommSec chief economist Craig James identified how infrastructure developers were responding to emerging market demand. He noted the trend toward building apartments. Change. Keynote speaker Denis Wagner, from Toowoomba-based Wagners, described how the family company built Australia’s first privately owned airport. Change. All the state and territory chief inspectors of mines gathered to address an IQA conference for the first time to speak of developments in the regulatory environment. Change. Suppliers Groundwork Plus urged managers and owners to think of end-of-life use of quarries at the beginning of operations. Change. Other speakers described the need to formalise certified status for managers and supervisors. Change. Change was being embraced if participation in the conference was any indication, IQA general manager Paul Sutton said. About 58 per cent of the 421

registrations were members and delegates and 42 per cent were suppliers, Mr Sutton said. “A high percentage of our delegates are operators, quarry supervisors and quarry managers,” Mr Sutton said. “The past dictates that things don’t stay the same. The IQA has to respond to that. Our first strategy is addressing what it takes to become a competent manager or supervisor, or a front end loader operator or a dump truck driver for that matter. “Secondly we are looking at aligning our training programs to ‘fit for future’. The machine operator 20 years ago could only dream of the machines they have now. How do we have the industry prepared for the opportunities and challenges of the coming 20 years? “What is and isn’t useful? Adopt, adapt, add and subtract. We need to respond now, we need to show initiative and get things under way.” The IQA’s third strategy was innovation that would include members, suppliers and regulators, Mr Sutton said. “None of this should be done in isolation,” he said. “Our message is ‘design to scale’. That is, you may have a great idea but if it’s not designed for those who are going to use it, then it is going to miss.”

Smarter operators and managers to lead industry IQA general manager Paul Sutton launched the IQA’s Smart Quarrying Research and Development Project at the conference. “My sincere thanks to all IQA members who have provided positive feedback and support to the project,” Mr Sutton said. “The project will undertake a futures research approach on predicting where the quarrying industry will be in the next five years, 10 years and 20 years,” he said “From there the project will identify what professional capabilities, continuous professional development programs and professional certification requirements our quarry professionals will require to achieve professional efficacy: profitable, productive and safe quarries. “I look forward to liaising and working with our members on the project and now welcome our international colleagues to the table.

Rapid change is defining the quarrying industry moving forward, according to IQA general manager Paul Sutton.

“I also had the privilege of launching the project on the international stage at this week’s Institute of Quarrying Malaysia Conference in Kuala Lumpur

attended by delegates from the Institutes of Quarrying in New Zealand, Hong Kong, South Africa, United Kingdom and Malaysia.”

Construction up but more competition It’s mostly all good. The economy that is. But beware of change. That was the message from CommSec chief economist Craig James in his address to the 2015 Institute of Quarrying Australia national conference in Adelaide. In terms of disruptive technologies, there had been more change in the period from 2007 than ever before. This was driving planning and growth in all sectors, Mr James said. Among others, that meant your competition was not only down the road but coming from overseas as well, he said.

CAUTION

He spoke about the need for businesses to have an ‘uncommon offer’ in service or supply, which differentiates them from the pack. In a wide-ranging address titled ‘Economy 2015-16: Dig for Value’, Mr James said residential building activity was up around 9.5 per cent across the country. There was associated higher activity in telecommunications, roads and sewage infrastructure. A quarter of all development applications being made were for buildings four storeys or higher, he said.

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28 IQA CONFERENCE

Queensland Industry Advocate | December 2015

Simple safety signals from some sobering statistics There was nothing tonguein-cheek in the presentation to the Institute of Quarrying Australia National Conference titled ‘Heavy vehicles only injure people when they get in the way.’ Queensland Inspector of Mines - small mine strategy, Wayne Scott, was absolutely serious. There are on average nine reported incidents a week in Queensland involving the interaction of heavy vehicles, light vehicles, and pedestrians. In nine years there have been three fatalities where pedestrians have been run over by heavy vehicles in this sector. The often complicated safety systems which had been introduced had failed to deliver a proportionate improvement in the statistics, Mr Scott said. “Those statistics have been consistent for the past 10 years despite the technical improvements, including proximity detection devices and cameras,” he said. “When there is an incident we tend to add another level of complexity rather than asking why it occurred and if existing controls were effective. There’s an assumption we need more administrative controls. “This has resulted from two problems that I see in managing safety in the mining industry. Firstly we have been hi-jacked by safety professionals and theorists who develop complex safety systems and secondly we tend to copy each other. “Copying can be good but when we jump to commonly used controls without looking at the most effective way of

Queensland Inspector of Mines small mines straegy, Wayne Scott, questions why pedestrians need to be on a quarrying site while machinery is in operation.

addressing the problem, this can be detrimental to what we are trying to achieve and that is preventing injury. “We need to go back to the hazard or the causes of incidents to determine why people are at risk.” The question of why

pedestrians and light vehicles be they soil testers in a quarry or supervisors managing a site - needed to be in the vicinity of a heavy vehicle was put by Mr Scott to the conference. There was a lot expected from operators of heavy machines on quarry sites said Mr Scott, who went on to say they were being set up for failure. “If you want to ensure people will not be run over, then don’t have them there,” he said. “Why do you need light vehicles on haul roads? Have a separate access road. If they can do it in mines, we can do it in quarries.” “Testers, because they are on foot, are regularly exposed to these hazards. Schedule their visits for downtime like lunch and smoko. Supervisors driving around managing the site; do they need to be there while heavy vehicles are operating?”

Glamour in Adelaide Anita Waihi (Metso), Yoland Dowling and Tegan Smith (Groundwork Plus) at Adelaide Oval.

The IQA put its best foot forward at the 2015 national conference. Scan here for more.

MINING | INDUSTRIAL | COMMERCIAL HIGH VOLTAGE | HAZARDOUS AREA

David Cilento (Hy-Tec) with Lisa and Ray Smith (Tom Jung Quarries).

Auction supporting education goes off As would be expected, explosives were popular at the Australian Quarry Industry Education Foundation auction. Delegates to the Australian Institute of Quarrying 2015 conference in Adelaide stumped up more than $41,000 for donated items. The 20 lots ranged from a two-year lease of a glass encased Casey Stoner helmet to a Metso model cone crusher which attracted $300. Bids for two ‘rock on gound shots’ made up the majority of the total. They came from Hy-Tec New South Wales general manager David Cilento and Ray and Lisa Smith from Tom Jung Quarries in Coffs Harbour, who bid $29,000 in total for two lots. The Australian Institute of Quarrying Education Foundation (AIQEF) was established in 1982 with the following objectives: • to establish and support national educational courses in quarrying and surface mining; and • to support advanced training for persons in technological

fields related to quarrying exploration, development, production, organisation and management. In the years since its establishment the foundation has made grants totalling over $1.1 million. These grants have included funding or assisting in the funding of: • training resources for the provision of professional education to employees in the extractive industries, • engagement of speakers for various seminars, conferences and technical meetings, • employment of an education officer for the Institute of Quarrying Australia to allow it to provide educational support for its own members and others in the industry, • scholarships to enable students to obtain qualifications in extractive industry management, • awards to recognise excellence in vocational training in the quarrying and surface mining industries.

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