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2 NEWS

Queensland Industry Advocate | March 2015

Putting the microscope over power consumption An energy usage study helps mines find efficiencies in their processing cycle. Australian researchers have conducted a study that can point mining operations towards reduced energy costs and more effective processing. Julius Kruttschnitt Mineral Research Centre ( JKMRC) University of Queensland researchers Dr Grant Ballantyne and Professor Malcolm Powell found that on average, 26 to 46 per cent of a gold or copper mine’s energy consumption is attributable to comminution. Comminution is the most energy intensive process at a mine and involves the crushing or grinding of a solid rock. The research has provided a benchmark for industry so

that mines can assess where they sit in terms of their energy consumption and make changes where necessary. “In a lot of these cases it’s not about where the mine sits at the present or to point at the mines and say you’re bad. It’s about the mine’s action to move down on the curve and improve their position,” Dr Ballantyne said. A key approach to saving energy was by knowing your ore, said Dr Ballantyne. “It’s really important to note what can be gained from leveraging off your geological variation with flexible processing options,” he said. “It’s looking at what the

ore body actually requires and designing the circuit around it. “Energy is a very important issue to be on the Australian landscape and internationally. I really think it’s one of the big-ticket issues of my generation.” The approach of energy comparison and reduction is gaining some momentum in industry with the support of the Coalition for Eco-Efficient Comminution (CEEC). A number of mines have signed up for the analysis and there are plans to launch a CEEC-hosted website where mines can enter their data to find out where they sit on the comminution energy consumption curve. This will facilitate the expansion of the benchmarking to include 50 to 70 per cent

Dr Grant Ballantyne and Prof. Malcolm Powell.

of the world’s gold and copper consumption and to eventually include other commodities such as nickel, zinc, silver, coal and iron ore. The mines included in this

study covered 15 per cent of global gold production, 24 per cent of the global copper production and all of Australian gold and copper production.

Supply influences on gold and copper price As operations worldwide battle a tough market and a commodity price slump, Australian producers are being reassured there are ways to remain profitable. The commodity crisis was brought to a head recently when the world bank released its lower revised forecast for global growth, said Fat Prophets resources analyst David Lennox. “That sent a shudder

through the base metal prices and we saw them all fall. Copper fell to about that $2.50 range per pound (US dollars),” Mr Lennox said. “At $2.50 an Australian operation can actually still be quite profitable with the US dollar price. With 75cents US dollar to Australian dollar there’s quite a cushion for Australian producers,” he said. “Copper prices will

probably continue to trade at around $US2.50lb level until such time that we start to see forward estimates in economic growth rising rather than being revised down.” On the other side of the coin is the old story of supply vs demand. A stable price for the commodities would require a reduction of supply, which in some cases will mean mine

closures, said Mr Lennox. “What we’re seeing in both of the markets (copper and gold) is a great deal of concern over the supply side,” he said. “We need to see some changes in the operational side i.e. closure of mines and then we’d expect to see a more stable price of copper and gold.” “Certainly towards the latter part of 2014 and into

2015 we saw a significant fall in base metal prices such as copper as the market came to that realisation that there was going to be significant supply. “On the gold side, we saw there was an easing in the safe-haven aspects for gold which saw the price come down significantly. Also the US dollar started to rise in value towards latter 2014 and that had an incremental fall in the gold price.”

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Queensland Industry Advocate | March 2015

NEWS

‘Walking dead’ numbers up Tough times are sorting out Junior miners whose numbers welled in the boom. An industry which once swarmed with excited junior explorers driven by the dollar sign and endless prospecting opportunity is now dragging an increasing number of ‘zombies’ along for the ride. Early indications are that the trend of the walking dead is set to continue. According to the latest quarterly cash update by BDO, one in nine of the 816 junior explorers that reported in the December 2014 quarter undertook no exploration expenditure. While this number remains static from the previous quarter’s report, 17 fewer companies lodged their results. The report found that average exploration expenditure had fallen for the fourth straight quarter to $604,000 per company – significantly down from the average expenditure in the June 2013 quarter of $980,000. Further to this, 47 per cent of explorers have reported insufficient cash to fund

“There was huge opportunity to raise money 2007-2010 and then there was a bust” - Allan Branch

Allan Branch company turnaround specialist.

operating expenses at current levels for one or two quarters. “Conditions continue to toughen for the sector, and although there are some explorers experiencing success, for many there is still no light at the end of the tunnel,” BDO partner Dan Taylor said. Despite the negative reports, company turnaround specialist and ex-chief executive officer of junior explorer Krucible Metals, Allan Branch said the results are just part of a natural business

cycle. “There was huge opportunity to raise money 2007-2010 and then there was a bust,” he said. “Where there are opportunities everybody jumps in, especially when there’s money around so you get an excess of companies being formed. “It’s quite natural that over time those companies that are well-founded, have a valid business model or valid opportunity and good

management will be successful and the others get weeded out.” The problem is that geologists who know little about business and effective management are running the juniors that are struggling, said Mr Branch. The solution now requires outof-the-box thinking, he said. “Most junior explorers are founded by very competent geologists, but often all they really know is prospecting,” he said.

“When times get really tough the wheat is sorted from the chaff and a prospector who is not simultaneously a competent business person struggles. “The companies that have been successful have either strengthened up their boards and executive management teams so they’re making much wiser and stronger decisions. Or they have been taken over through back door listings.”

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4 NEWS

Queensland Industry Advocate | March 2015

Machinery off-loading peaks Equipment from

Sales of plant and equipment are reflecting changes in the economy. Auction house Graysonline is reporting more than 8,700 items worth in excess of $10m have been sold throughout Queensland over the last 12 months. Civil, construction and mining earthmoving plant and equipment registered the highest number of sales and biggest dollar value. But changing market conditions could be just around the corner. That’s coming from auction house, Graysonline. Sitting at the top of the list for regional sales was Gladstone with 2688 items grossing $1.59m. This could be attributed to the wrap-up of operations in the area as Curtis Island moved out of construction phase and into operation, said Graysonline general manger Queensland

Chris Corbin. “There is gear being sold through our platform and maybe some other competitors as projects finish up especially in regional or remote areas of Queensland and other states,� he said. “Especially at the end of the gas projects. Unlike the coal mines, once the gas pipeline is built there is little material and equipment required for maintenance. Next in line was Emerald with a reported 268 items sold for more than $4.59m followed by Mount Isa with 566 items at $1.34m and Mackay with 718 items at $872,000. “Regions such as Emerald and Mount Isa are a little bit quieter at the moment because the mining side of things is down and that’s really the back bone of those towns,� he said.

Innovation push for mines survival It’s survival of the fittest and the strongest and most durable mining businesses will be those who embrace innovation according to an industry specialist. Miners in the current volatile market conditions are generally taking short-term action to reduce costs and increase productivity, said Deloitte Australia national mining leader East Coast, Reuben Saayman. The priorities moving forward were about balancing shortterm investor expectations with long-term business imperatives, said Mr Saayman. ‘Innovative thinking surrounding energy savings, financing and infrastructure will separate those who sink and those who swim,’ he said. “For me innovation is a whole culture change that needs to happen within mining companies,� Mr Saayman said. “Queensland miners have embarked on a number of cost cutting exercises. We’ve seen production at record levels and in that respect they’re achieving success. “The challenge that’s next is ensuring the cost savings are sustainable and for that they need to look at innovation.� Shared infrastructure, renewable energy, and alternative financing sources are some of the solutions, said Mr Saayman. “Companies can, in fact, innovate in multiple ways, such as leveraging supplier knowledge around specific operational

Graysonline.

“There’s also less exploration drilling going on which means that there is less drill rigs required and there’s a little bit of consolidation in the market which means less equipment is

Embed innovation into corporate DNA Innovation needs commitment from senior leadership, focus and dedicated resources, a systematic approach and a clear vision on how it will complement or align with existing operational excellence programs.

Look at the components of an entire system to uncover the biggest opportunities for structural improvement and then run small tests to establish proof of concept.

Leverage emerging technologies

Deloitte Australia national mining leader East Coast

challenges, redefining their participation in the energy value chain or finding new ways to engage and partner with major stakeholders and constituencies.� “And as operators begin to apply innovation to their full operational ecosystem, they stand to realise significant gains. “It is a journey that miners will need to embark on to make sure there are sustainable changes in the business model to address the volatility in the prices we have seen. “It will be survival of the fittest.� Innovation was identified as one of the top ten key issues to industry for this year in the recent Deloitte Tracking the Trends report for 2015. Read the full report www.deloitte. com.au

some extra staff. “We think there will be a lot more equipment across a number of categories and regions moving forward and we’re gearing ourselves up for that.�

Deloitte top tips for innovation

Think big, test small, scale fast

Reuben Saayman

required.� New projects such as Adani’s Carmichael coal project could encourage a fresh spike in activity, said Mr Corbin. “We’re looking at putting on

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Prepare for new operational realities As companies rely increasingly on automation, for instance, they will likely require fewer mine workers. This can also raise community concerns he said. Consider other ways to create jobs by using purchasing power to spread mineral wealth and provide social benefits across a broader community ecosystem.

Bowen Basin Builders Blooded in Big Business A newly incorporated company is taking on a $120m project and aiming to secure 120 jobs in the top end. Bowen Basin Contractors (BBC) will run the three-year Weipa Housing Project from design phase right through to completion. The project includes 100 three and four bedroom executive style houses and 70 two-story walk up town houses. The gated complex will also include gym and swimming pool facilities. The project would be the first of its kind on Indigenous owned land said BBC managing director Zane Brache. “Bowen Basin Contractors went in and tendered for a land parcel, we won that tender, so we’re going to develop the land, build houses on it and sell them off,� Mr Brache said. The project is in civil construction phase and has a 2018 completion but that may be extended, he said. Alongside the permanent jobs on offer and a range of contracting jobs is the opportunity for apprenticeship positions. “If we can identify key people suitable for apprenticeships we will aim to put 10 – 15 apprenticeships on this project,� Mr Brache said. “At the end of it we should have 15 trades people coming out of the project. “We will target Indigenous employment first and local employment will be a strong focus.� The company also has a design and construct project for a 650-person temporary accommodation village in Miles and a construction project for a 252-person village in Bluff.


5

Queensland Industry Advocate | March 2015

NEWS

Suppliers urged further afield

Curtis Island LNG

Be proactive and get ahead of the game. That’s the message from Gladstone Engineering Alliance (GEA) to suppliers. The advice comes as three of the biggest projects in Queensland near construction completion. The Curtis Island LNG plants are forecast to reach completion by 2016. They had a combined peak workforce of 14,500 people with current numbers sitting at about 14,000. GEA project officer Kim Roberts said now is the time to look at the other opportunities in the Gladstone region and beyond. “Over the last three years, suppliers in the region have been forced to increase their capability and capacity in order to meet

Demand for specialist staff Although the construction completion date for Curtis Island is within sight, a demand for skilled workers still exists. A process of continuous mobilising and demobilising through the various phases of construction meant that the company was currently looking to recruit said Bechtel Gladstone general manager Kevin Berg. “As we move through commissioning and startup of each of the six trains being built on Curtis Island, we will see a growing number of people demobilising. This occurs gradually as work fronts are completed,” he said. “We are also continuing to recruit. In fact we are still in need of specific skills such as electrical instrumental trades right now, so if you know of anyone looking for job with those skills, we’d love to hear from them.” More than 26,000 people have been

the demand, that’s what makes Gladstone the industrial hub that it is,” she said. “Moving forward it’s important to be part of the early conversations for new projects and expansions in order to place yourself in a good position come time for tender.” One issue was knowing the right people to speak to, Ms Roberts said. To support the local supply chain in expanding, GEA have launched the GEA Project Research Document, distributed to over 200 members of the organisation. The document provides a ‘snap-shot’ of all current and proposed projects; project status, project value and contacts for Queensland-wide projects.

Tips from GEA • Organisations that do not pre-position or influence the tender prior to release reduce their chances of winning by up to 80 per cent. • Most organisations will miss at least one key item in their response to the evaluation criteria or misinterpret at least one of the requirements lowering their overall evaluation score. • Many business development and sales people believe that real sales are done face-to-face. To a large extent this is true. • Get to know the buyers before the tender is published. • Use the tender response as an opportunity to ensure the buyer wants to know you before they make a buying decision. • A strategic approach to writing your tender response will ensure you a better success rate and the best use of your resources. This will ensure you win business you really want and can deliver it professionally.

employed during construction with some employees transitioning across projects. “Some opportunities may also exist with other projects outside the Gladstone region for those with the right skillset,” Mr Berg said. From construction completion in 2016 the maintenance of the QCLNG plant will be taken over by Monadelphous Group. Up to 40 workers will be involved in maintenance activities including supply and operation of cranes, scaffolding, mechanical and electrical equipment. QGC Operations Director Walter Simpson said Monadelphous would employ local people where possible and workers would be based in Gladstone. It would create economic and social benefits for the community, Mr Simpson said.

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6 NEWS

Queensland Industry Advocate | March 2015

Does Gen Y make better workers? Where are their strengths and their weaknesses? The issue was raised at the recent AusIMM North Queensland Branch Technical Meeting Generation Y and Employment in the Minerals Industry in Townsville. Here’s what some industry members had to say on the issue. The recent Queensland election had all the characteristics of a political episode of Jerry Springer. On one side of the stage sat new Labor leader Annastacia Palaszczuk on the other was LNP favourite Campbell Newman. Seats were in the air, each side accused the other of broken promises, and the audience heckled, including radio personality Alan Jones. And just when it looked like Newman had the support of the audience, a surprise guest (enter Peter Wellington), who had been flirting with both candidates, appeared on stage next to Ms Palaszcuk. Under his breath, Newman muttered some last words about asset leasing and with that the final LNP supporters in the audience fell silent. A triumphant Labor side has now emerged with a minority government and all eyes are on the new Premier, her cabinet and the changes they will bring. One of the big issues facing the mining and resources sector is the Labor ban on new 100 per cent fly-in, fly-out (FIFO) operations and pending review of existing 100 per cent FIFO mines. Queensland Resources Council chief executive Michael Roche said Labor’s pledge to retrospectively review existing employment arrangements at two Bowen Basin mines had sent a shudder through the resources sector. “Changing the rules under which companies have committed billions of investment dollars would

be a very bad move by any government serious about attracting new investment and jobs,” Mr Roche said However there were those who expressed relief. “We are very encouraged by Queensland’s new mining minister Anthony Lynham confirming the review will take place as soon as possible,” Isaac Regional Council Mayor Anne Baker said. The CFMEU labelled Labor’s win as a ‘victory for Queensland coal mine workers and regional communities’. “100 per cent FIFO discriminates against locals and denies freedom of choice,” the organisation said in a website bulletin. Another big talking point was the possibility of a reinstatement of the uranium mining ban. Mount Isa Mayor Tony McGrady spoke to QIA: “I’ve been working long and hard for the creation of the uranium industry and the former Newman government lifted the ban,” he said. “I think if the incoming Labor government whose mantra is about developing jobs, re-impose that ban, it will be a retrograde step.” Anti-nuclear activists did not agree. “In the shadow of Fukushima, a continuing nuclear disaster directly fuelled by Australian uranium, it’s more important than ever to ensure uranium mining is kept out of the sunshine state,” said Australian Conservation Foundation nuclear free campaigner, Dave Sweeney.

Kira Weidig JCU geology student “I think the positive with Gen Y is the fact that they’re more able to prioritise their deadlines. Basically because they’re more used to multi-skilling. We like to go out and do lots of social things but by the same time you still need to prioritise whatever deadlines you have before you can go and do that – we sort of tend to focus on those things. I think probably the only negative would be the fact that even though, yes, we do look for employers who are going to give you that form of security in career longevity, we’re well aware that that’s not the case so most of the time if we don’t see that that’s going to happen with an employer, we’re already looking for our next job when we may have only been there for a day.”

David Hunter Queensland Nickel Senior Metallurgical Controller “I think Gen Y people are more innovative from what they learn at university – there’s a lot newer technology and they’re learning new technology. Technology is changing much more rapidly than in the past when I was at uni. A lot of the technology when I was back at uni in the 1980’s had been around for fifty plus years. Whereas now days, there is some newer technology in hydro and pyro metallurgy which Gen Y people are learning about at uni and they’re able to investigate and implement in the work place. Another thing too is because they’re more proficient with social networking and communication the way a lot of management has a lot less hierarchy nowadays in companies – I think that’s very important that they’re able to communicate with other people they work with in a more flatter company structure. I think that’s an advantage for them and for their company.”

Dylan Crause Townsville Yacht Club, first year apprentice chef “I think that they’re an underrated generation. The generation above us is quite a big of a stuff up and that these kids have sort of seen that they actually need to work hard to get a job because there’s not many jobs out there. They’ve all sort of tried to work hard at school and really want a job. They like coming to work and earning money. They like it – I like it. I like working, I would work for free but don’t tell my boss that though. Yeah, I love my job. I’ve had my job since I was about 12, in hospitality and my dad got that for me through a friend.”

What do you think about Gen Y? Join the discussion online.

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7

Queensland Industry Advocate | March 2015

REGIONAL ROUND-UP Townsville

Cairns

A $20m commitment by the State Government would help to create more than 2,000 jobs in the Townsville region. The Townsville State Development Area (TSDA) aims to boost employment and deliver an economic benefit of more than $800m, said Townsville Enterprise General Manager Economic Development, Tracey Lines. “This targeted funding is a significant step forward in ensuring the city has a much greater capacity as a logistics and distribution hub, making it more attractive and affordable for major industries to invest in Townsville,” Ms Lines said. “Townsville Enterprise has been working with the Townsville City Council and the Townsville Chamber of Commerce for a long time to secure funding for this priority project as part of the $450m Regional Jobs Package and it’s great to see the State Government has listened and committed funding for a project that will create jobs.”

Work has commenced on a $400m building project in Cairns. The Nova8 development got underway in January and aims to create a seven towers residential and commercial space on behalf of the Singapore-based Aspial Corporation. The Spencer Street site is expected to bring more jobs to the region as the first tower to be developed will be 17 stories high and need around 1,000 workers to assist in the construction phase. The completed first tower would include 208 apartments and 12 townhouses on the lower levels of the building, Williams Graham & Carman Solicitors said in a report. Six residential and one commercial tower, each between 17 and 19 stories, would be built as part of the project The Cairns Post reported. The project is the first of its scale to be seen in the city in eight years.

Mackay Mount Isa

A new coal berth is in use at Hay Point with the first ship loaded and shipped to Indonesia in mid February. GOU Tou 303 was filled with 82,500 tonnes of coal from the Peak Downs mine, reported The Daily Mercury. The port’s capacity was increased from 44mtpa to 55mtpa following the implementation of the HPX3 expansion project. The expansion saw the addition of a new berth and ship loader and the replacement of the existing jetty, surge bins and trestle conveyors. The installation of cyclone moorings at the site was also completed as part of the project.

A new gas pipeline could bring more jobs and cheaper energy to Mount Isa residents. Mount Isa Mayor Tony McGrady is currently in talks with the Northern Territory for the development of a Northern Territory to Queensland connection. The development would be a big step forward for the city, Mr McGrady told the North West Star. “I’ve been promising the community for some time of major developments and this a great start to cementing not only the North West’s, but Queensland’s relationship with the (Northern) Territory,” Cr McGrady said. Although the Labor Government hasn’t yet discussed plans for a gas pipeline to connect the two states, Cr McGrady said he was confident that the Labor Party would also support the development. “I’m certain Labor will support it - the mantra of all political parties has been ‘jobs, jobs, jobs”, Cr McGrady said. The Northern Territory has already received 14 expressions of interest from companies interested in building the line.

Moura

Toowoomba

Anglo American’s Dawson mine open cut coal operations are up for sale. The 51 per cent stake sale follows a $US2.5b half-year loss. The sale was part of a company plan to streamline its focus onto priority assets, said Anglo American Coal business chief executive officer, Mr Seamus French said. “We are streamlining our coal portfolio to focus capital on our priority assets to strengthen our business and these assets no longer align with our core business portfolio in Australia and our broader global Coal business,” he said. The company’s Foxleigh, Callide and Dartbrook mine in New South Wales are also on the market. Proceeds of the sales will be distributed into key focus areas for the business and aid in reaching Anglo American’s long-term net debt target.

The National Party of Australia has announced its full support of the Inland Rail project. Nationals Federal Leader and Minister for Infrastructure and Regional Development, Warren Truss confirmed the party’s commitment to the project in early February. The project is set to link the Port of Melbourne directly to the Port of Brisbane, via tunnels through the Toowoomba Range. The development would become a leading means of transport for trade, said Toowoomba and Surat Basin Enterprise chief executive officer Shane Charles. “For Toowoomba, Surat Basin and Darling Downs regions, we absolutely need this vital piece of infrastructure,” Mr Charles said. “These numbers have been thrown around a lot, but the reality is that 50 per cent of trade travelling to or emanating from the Port of Brisbane comes from Toowoomba and regions west, and freight demand is only going to increase in coming years.” The Inland Rail Implementation Group is currently preparing a report for the Government that will propose construction priorities, community engagement strategies, route alignment and financing options. Construction is scheduled to begin later this year.

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8 STATE OF THE STATE

Queensland Industry Advocate | March 2015

An eye on the cycle of fortune The cyclical nature of the mining and resources industry has seen some regions across the State fall on hard times. QIA checked in with some of the peak industry bodies and industry experts and discovered that, overall, the long-term outlook is bright … It’s been up before and it will be again. That’s the forecast for north west Queensland according to AEC Group Economist, Matthew Kelly. But the success of the region is dependent on infrastructure development, said Mr Kelly. “A lot of the opportunities relate to more intensive agriculture and expanded resource production. “The missing link there is the enabling infrastructure. Things like rail access, electricity connection and gas to make the projects a little bit more

economical for proponents. “In terms of money, it’s the political world at state and federal level and the private sector, but traditionally it’s been a public sector place to pay for the leading infrastructure to make the development work.” Exploration is also key, he said. “There’s a diverse array of mineral opportunities which means exploration is really the central to knowing what’s out there and maximising the opportunities of new projects and new economic activity.” Despite a long-term battle

with drought there are also opportunities in agriculture, he said. “Drought has been terrible there but it doesn’t change the fact that in the longer- term outlook of food security and diminishing agricultural land globally there are stronger opportunities.” Last year the North West Queensland Strategic Development Study highlighted the top priorities for the region as • New Mine Exploration and Development. • Irrigated and Intensified Agriculture. • Energy Generation, Security, and Export. • Supply Chain Productivity, Efficiency, and Reliability Read the full report at

MITEZ.com.au In Mackay, the future is about working smarter, not harder according to Resource Industry Network Chair, Tony Caruso. “It is also essential that we continue to position our region for future projects,” he said. “The Galilee Basin will be pivotal to our region’s future growth. Our region is the hub of the resources sector and we want that to continue to be the case as the Galilee basin comes online. “To do that we need to ensure that the proponents of the Galilee understand what this region can offer and the second part of that is to make sure we have the infrastructure in place or at least underway to support this new basin.” In the south west the recent climate has seen those involved

in the service industry for the gas sector do well. But as major projects in this sector transition from the construction phase to the operations and maintenance phase companies in the supply chain will start to do it tough, said TSBE chief executive Shane Charles. “Construction companies remain stable and are still doing very well. Optimism and activity for the construction sector will continue to be driven by the new infrastructure coming to the Toowoomba and Surat Basin region,” he said. Major developments include: • Toowoomba Second Range Crossing Project • Continuing work on QIC’s retail redevelopments including the Grand Central centre.

Tax incentive for exploration

The Spring Aeolian with Grosvenor’s first coal.

Federal Parliament has passed new measures designed to boost minerals and energy exploration. The Exploration Development Tax Incentive scheme passed by the Senate brings Australia into line with countries like Canada in encouraging exploration investment and activity. Under the scheme, eligible

First Grosvenor coal shipped to India Anglo American’s flagship Grosvenor metallurgical coal project reached a milestone in February with the first coal sale loaded on the MV Spring Aeolian bound for India. More than 19,000 tonnes of Grosvenor’s coal product was shipped after being transported from the site in Moranbah

195kms to Dalrymple Bay Coal Terminal near Mackay. The Grosvenor product was part of approximately 78,000 tonnes of Moranbah North Hard Coking coal loaded on-board the MV Spring Aeolian. Grosvenor’s first coal sale added to Anglo American’s high quality product portfolio from

explorers can convert a portion of their tax loss to exploration credits, which are then available to shareholders as a tax deduction. The scheme will commence in July this year and will be capped at $100m over three years. Queensland Exploration Council chairman Dr Geoff Dickie said that while Queensland was renowned for its

minerals prospectivity, much of the state was yet to be explored using the latest technologies. The latest ABS data shows that exploration spending continues to fall in Australia (down 16.7 per cent in the year to December 2014) with total spending in Queensland falling from $844m (2012) to $390m in 2014. The scheme

our Queensland operations said Head of Marketing and Sales Metallurgical Coal Rod Elliott. “Our $1.95b investment in Grosvenor is the cornerstone of our asset portfolio and growth, and seeing the first commercial benefits from our investment is a very important achievement,” Mr Elliot said.

starts on 1 July 2015 and will be capped at $100m over three years before a review. Photo: courtesy of Vale

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Queensland Industry Advocate | March 2015

NEWS Cannington

Cannington Beyondblue charity launch The arrival of a bright blue CAT AD60 haul truck to the BHP Billiton Cannington operation has marked the launch of the mine’s 2015 charity campaign. Cannington will band together with workers on-site with the aim to raise $50,000 over the next 12 months. A key focus will be generating awareness of the issues surrounding anxiety and depression and on providing resources and support, said Cannington Corporate Affairs Improvement Simone Sullivan. “I think this charity means a lot to our crews, and the blue truck will play a key role in generating constant awareness,”

she said. Beyondblue Fundraising and Partnerships Manager, Joshua Donchi said the campaign would deliver the Beyondblue message to a key demographic. Mines like Cannington typically have a largely male workforce operating on fly-in, fly-out rosters, said Mr Donchi. FIFO workers have a higher rate of depression and anxiety so the campaign will allow us to reach those who are at high risk,

workforce celebrate the launch of the 2015 Charity of the Year. Photo: John de Rooy

said Mr Donchi. “So hopefully if there is anyone struggling, they will have the resources to seek help,” he said. Monies raised throughout the year will go to Beyondblue support services and resources

which are provided throughout Australia free of charge. “Our main message is around hope, recovery, and resilience. It means providing people with the information, giving them hope, and the resources to aid recovery and resiliency,” Mr Donchi said.

“It also helps people look out for their friends and what they may go through and it will start a conversation.” For further information on Beyondblue visit www. beyondblue.org.au or call 1300 22 4636.

Adani imports through Townsville The Port of Townsville will be the logistics hub for the construction and maintenance of the largest coal operation in Australia. More than 200,000 tonnes a year will pass through Townsville Port to support Adani’s Carmichael mine and rail development. Everything from project cargo, construction materials and a constant supply of fuel and chemicals would be imported for the Adani Carmichael coal project, said Townsville Port trade and property general manager Claudia BrummeSmith said. “It’s one of the largest coal projects in the world and it will need 99 years of supplies,” she said.

Claudia Brumme-Smith Townsville Port trade and property general manager

“Moving forward we see an opportunity to offer the port’s services for that period.” The Carmichael lease is

located 160kms north-west of Clermont placing Townsville Port 60kms closer to the lease than Mackay. Upgrades over the last five years including two new berths and the port access road, have placed the port in good stead to service the needs of the $16b development said Ms BrummeSmith. The most important berth for Adani project cargo would be Berth 10, said Ms BrummeSmith. “We invested about $85m in an upgrade for cruise, defence and general cargo vessels and this will be utilised for some of the cargo coming in from Adani,” she said. “We also have berths three and four that will take some of the

share.” While existing infrastructure should be able to handle the bulk of project requirements, money will be spent on upgrading the existing laydown area to make it multi-cargo functional. The upgrade spend will sit at about $1.6m over the next 12 months. The port is also in the process of upgrading its berth to accommodate LR1 vessel tanks which ship bulk fuel. Townsville would be the first Queensland port on their route able to facilitate their size Ms Brumme-Smith said. The port is also expecting 15 per cent growth this year on the 58,706 containers in handled in 2013/2014.

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Queensland Industry Advocate | March 2015

OUR MINING HERITAGE

Goldfield Ashes a headline NQ Event It was foundation day weekend in 1949 when eight towns from around north Queensland came together to play three days of cricket in the hot and dusty town of Charters Towers. 67 years on and the event has grown to host more than 250 teams and is believed to be one of the biggest cricket competitions in the world. The concept for the carnival stemmed from a love of cricket and a need for a morale boost post-war said Charters Towers historian Michael Brumby. “Charters Towers had been through 50 years of no longer being the most prominent town in north Queensland. Mining gave out in about 1906 so we had shrunk back to a town of 6,000 to 7,000 people,” Mr Bumby said. “The town itself probably wasn’t doing so well after the war and it was a bit of a struggle.” The driving forces of the carnival were the Charters Towers Cricket Club president Ian Mann and secretary Jack Neeson. Ian was the manager of the local gas works and Jack was a number-taker in the railway. Their vision for the Carnival was described in the following statement. “The object of the Carnival is to bring together from near and far our fellow cricketers to participate with good sportsmanship and friendly

rivalry in the King of Games.” The eight teams who played in the inaugural event came from Charters Towers, Townsville, Hughenden, Ayr, Pentalnd, Ingham and Homestead. The competition was initially known as the Foundation Day Cricket Carnival but a ceremonious event at the local gun club saw it re-named as the Goldfield Ashes. In 1950 three wickets were burnt to ashes, said Mr Brumby. “They were later wrapped in red cellophane paper, reminiscent of their fiery ending, and eventually were placed in a cup to become a coveted prize for the carnival,” he said. “With this symbolic act, a commitment was made by all visitors to return for this prize, especially when Charters Towers won the first ashes and Hughenden claimed the runner up honors.” The competition has now gotten into the psyche of north Queensland, said Mr Brumby. “Most people who come have got problems with their cricket rather than their drinking but police always say in general the crowd is great,” he said. “There are some really strong traditions there and some people return each year passing the tradition on generation to generation.”

Inaugural Ashes - President of the Charters Towers Cricket Association Jack Meeson - left and secretary Ian “Gassy” Mann Ashes with trophies, 1949. Mountain Men Team Goldfield Ashes, 1979 - Back Row - Peter Grigg, Peter Lemson, Mal Carrington, Gary Campbell, Howard Lowe, John Roots, Dave Johnson. Front Row - Keith Marxsen, Nick Sellars (Mascot), Ken Sellars (Capt) Ken Peace.

The ‘Fish’ reel in 2015 Ashes Falls of more than 65mm over three hours was enough to wipe out the 2015 Goldfield Ashes for the A Graders on the last day of the competition. The rain forced the cancellation of the Queensland Bulls Masters XI v Charters Towers Invitational XI game late on Sunday afternoon and the A1 division matches on Monday. Despite the downpour on Sunday afternoon, two and half days of sunshine saw 227 teams head to the Towers to join in the Australia Day-weekend cricketing tradition. The Ashes were awarded to A Fish Called Wanda (players from various locations across state) for the fourth time in five years, based on their superior total runs margin. Townsville team, the Wanderers finished as runner ups. G-Force made first place in the B1 comp, GT

Radials came in first place in the B2’s and The Minions wore the crown for the Ladies comp. But it was the social comp that attracted the masses and this year the Happy Chappy’s took out the title. After 67 years, the competition doesn’t appear to be fading with population numbers in the northwestern town increasing by the thousands for the event each year. Groundsman Roma Bailey is responsible for the cricket pitch preparation. This year teams played across 75 grounds. “It takes a bit to organise, to make sure they get mowed and trimmed but with the help of volunteers it goes ok,” he said. “It’s also lucky that many of them are owned and cared for privately by the schools, the airport and other places. It’s still a big job though.”

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12 INDUSTRY LEADERS

Queensland Industry Advocate | March 2015

Canefarmer shorts and thongs maketh the man Paul Schembri Who says leaders are made out of cleanly laundered suits and straight ties? Australian Canegrowers chairman Paul Schembri has worked the farm for 40 years and still prides himself on the fact that he takes dirt under his finger nails into boardroom meetings. The years on the farm and a passion for advocacy have given Mr Schembri ample motivation in his role as the Australian Canegrowers chairman. Born on a cane farm north of Mackay and a third generation farmer, Mr Schembri developed a taste for the industry early in life. Throughout his early career a desire for change drove him to put his hand up for the Canegrowers and in 1983 he became one of the youngest members to be elected to the organisation. Since then Mr Schembri has worked his way through the ranks and he now sits in one of

the organisation’s top positions. He said that becoming chairman in 2013 was one of his biggest career achievements. “Leadership is an interesting thing. You have to have passion for the people you represent and I represent 4,500 cane farmers in the state of Queensland,” Mr Schembri said. “My style is all about working with people, harvesting the talents and contributions of people. “If you want to travel fast, you travel alone, but if you want to travel further in life you travel with others and that’s my style.” After 32 years with the organisation, Mr Schembri said he was still enjoying the challenges. “The industry today is so different to what it was years ago,” he said. “The political landscape has changed, other industries such as mining have emerged and technically I’ve witnessed a lot of advances.

“I think we’ll see just as much change, if not more into the future.” Despite the demands of the job, Mr Schembri can still be

spotted down the paddock or the fertiliser shed in his work clothes. “Getting back on the farm is a great reality check. I still get

a buzz to see freshly planted cane come out of the ground. It keeps me humble and focused on what I represent.”

This Wagner led Wellcamp Denis Wagner Denis Wagner is one of the driving forces behind the first greenfield public airport in Australia for almost 50 years. Mr Wagner is the project manager for the Brisbane West Wellcamp Airport and as such played a crucial role in the project development and construction. A Toowoomba and Surat Basin Enterprise study into the airport’s economic benefits, suggests economic output of Toowoomba is set to increase by $472m dollars by the fifth year of operation. It also says more than 3160 jobs will be created. “To be in a position of leadership and be able to play such an important role for this project felt great. I have a real passion for the success of the region,” Mr Wagner said. “It was also a very exciting and challenging project which used interesting technology and construction methods,” he said. “It was an extremely satisfying feeling to see that

first plane at the airport and something that myself and the whole Wagners team were very proud of.” Denis works alongside his three brothers Neill, Joe and John in the running of the family business , Wagners. The company was started in 1989 with three trading divisions - Wagners Concrete, Quarries and Transport. Today Wagners has grown to become one of Queensland’s largest privatelyowned construction materials and mining services companies. Denis credits the company’s success to strong leadership skills. “We have a saying at Wagners that people don’t always believe what you say but they believe what you do,” he said. “So if you conduct yourself in a manner that you’re always proud of, people respect that and that’s certainly how I lead.”


13

Queensland Industry Advocate | March 2015

LOCAL GOVERNMENT

Patrick Moore Roads development Isaac Regional Council west operations engineer Patrick Moore was once part of a team tasked with building 26km of haul road in a remote area near Cloncurry with a three-month deadline and a tight budget. Now his focus is on the development and improvement of roads in the northern Bowen Basin. Over the next 12 months Mr Moore will be involved with a number of upgrade projects. “Our key priorities include investigating methodologies to improve black soil and poor foundations on our rural roads, and programming and tracking our rural road re-sheeting programs,” he said. “We’ll also be carrying our

various floodway upgrade projects to improve flood immunity and functionality, and repair aged infrastructure. “I’ll also be assisting with a multitude of design and construction projects and working to improve the efficiency of Council’s construction teams.” Mr Moore is a husband, father to two kids and sibling to 12 brothers and sisters. He says it can be a challenge to juggle work with family time. “I’ve been married for 12 years and have two children, a boy and a girl, aged seven and nine,” he said. “One of my proudest personal achievements was in the space of one week, I moved my family

from Mackay to Rockhampton, my wife had her second child, and I started my own consulting business,” he said. “I make designated family time, and do my best to balance this with work demands.” Outside office hours, Mr Moore said he liked to hit the surf and spend time with his kids.

Brian Ashcroft Infrastructure improvement Marathon runner and ‘die-hard Broncos and Queensland Reds fan’ Brian Ashcroft is a key cog in Isaac Regional Council’s infrastructure improvement wheel. The acting director engineering and infrastructure is among the personnel tasked with implementing water and sewerage upgrades and an efficient waste disposal strategy across the region. Mr Ashcroft has a wealth of experience under his belt spanning almost 40 years including eight years with the Department of Forestry, eight years working for the Hong Kong government planning and assessing major infrastructure projects, and 20 years managing multi-disciplinary consulting

businesses in London, Asia and Australia. Mr Ashcroft said he enjoyed the diversity of his role and the opportunities it offered to build new capacities. “My main aim is to drive a high level of service to the communities in Isaac, with a genuine focus on our SHARP (Strengthening Healthy and Attractive Regional Places) outcomes,” he said. “I have a great desire to get the best out of a very knowledgeable, dedicated and professional team.” Mr Ashcroft had his hand in a number of key projects internationally including the original planning for the Channel Tunnel rail link in the UK.

He said his proudest career achievements included work he did in Hong Kong and another project back on home soil. “Professionally, it (his proudest achievement) was setting up environmental assessment and planning procedures in Hong Kong and designing and building the forest park system for Queensland Forestry,” he said.

CQ University engineering students Angus Hughes and Mattison Rose.

CQU taps demand for engineers Prospects for engineers are still positive despite an industry downturn. That’s according to CQ University vice-chancellor Professor Scott Bowman. Figures released by Graduate Careers Australia (GCA) show that 90 per cent of civil, 81.8 per cent of electrical, and 60 per cent of mechanical engineering students from CQ University go on to full time employment within four months of degree completion. These statistics are indicative of an ongoing demand for skilled engineers from the region, said Professor Bowman. “The mining industry is still taking a lot of engineers,’ he said “There’s a lot of talk about a downturn in mining but if you look at the production it’s still way up. “That industry needs a supply of skilled engineers and if new mines start up, that’s a call for engineers too.” The university is currently undertaking a statewide expansion of engineering facilities and courses. The expansion will see close to $20m in spending this year alone and up to $30m over the next two years. “In Mackay we’re starting an engineering program that specialises in mechatronics and robotics,” Professor Bowman said. “This is in response to a demand for specialised engineers for industry. “In Cairns we’re offering four-year engineering degrees from 2016. “There’s a lot of new industry in Cairns with civil and some aspects of manufacturing. It’s an engineering region and there continues to be a demand for engineer graduates.” The State Government has committed $1m towards engineering laboratories and equipment for CQ University’s upcoming Cairns campus which will open its doors later this year. The campus plans on offering electrical, mechanical and civil engineering degrees.

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14 TOWNSVILLE REAL ESTATE

Queensland Industry Advocate | March 2015

Buyers market in the north’s Capital It’s a buyers market on the property front according to industry experts in Townsville. Low prices and a positive growth forecast for the region made investment in the area attractive, said REIQ Townsville zone chairman Damien Keyes. Fringe city properties offered strong capital growth perspective, said Mr Keyes. While the outer suburbs located closer the hospital and university presented strong rental opportunity. “Those properties tend to accelerate at a stronger rate when the market picks up and while they’re soft it’s a particularly good time to jump in,” said Mr Keyes. “A lot of what’s transacting is under the $500,000 and is a mix of investors and home buyers. “With the prices where they are, the opportunity sits firmly with the buyers at the moment.” According to the latest quarterly data from REIQ, the median house price in Townsville is $342,768. Despite a recent drop in property prices, rentals were holding, therefore increasing the return for investors, said Mr Keyes.

Rod and Gloria Tome say Townsville is NQ living at its best.

“There are lots of tenant options for investors looking to minimise vacancy rates by buying in a broad market,” he said. “Townsville is a fantastic place to invest in long-term. It’s widely acknowledged as the capital of north Queensland. It has a very broad economic base there’s still lots going on here and we’re not really highly dependent on one sector to drive growth. “It represents a brilliant chance to get in there, prices are not going to stay this level forever and it could certainly go to levels we’ve never seen before.” The secret to Townsville’s future success, looking forward, was economic diversity, said Live and Invest Townsville principal, David Menson. “The good thing is we don’t have all of our eggs in one basket,” Mr Menson said. “We’ve had some tough years in the past but we’ve turned that now, and hinging on the interest rate drops we should see some positive changes soon.” Townsville was a desirable location and could look foward to strong growth in 2016. ‘‘It really is a lifestyle package here,” Mr Menson said.

BIGGER blocks, BETTER lifestyle, BEST value

NQ the place to live Townsville offers tropical living at its best for locals Rod and Gloria Tome. The pair moved from Sydney 20 years ago and has never looked back. Over the years they have watched the city grow. They have followed the Cowboys from their first year, seen new suburbs pop up and the emergence of public services and key infrastructure. “When we first moved to Townsville we were in Kirwan and it was like we were out in the bush then. Now look at it. It’s really expanded over the years. Douglas and North Shore weren’t even

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“We have a 12 x 9m shed for our 8m boat at our current place and I am going to build another one exactly the same at the new place,” Mr Tome said. For Mrs Tome, the new build will give her a chance to indulge in one of her favourite hobbies – interior design. “I enjoy interior decorating. I’m going to go for that modern Queensland look with a bit of industrial thrown in,” she said. “I’m really looking forward to putting my own stamp on the house, the yard and the pool and all that goes with it.”

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15

Queensland Industry Advocate | January 2015

BUILDING MINING COMMUNITIES

SUPPORTED BY BHP BILLITON CANNINGTON

The RACQ North Queensland Rescue Helicopter will fly more missions thanks to a grant made through the Glencore Community Program. Photo: Rob Parsons

Community funding Darryl Fraser (TAFE Diesel teacher), Greg Mitchell (TAFE Queensland North Regional Director) Brad Ryan (MTU Detroit Diesel) Adrian Pope (Popey’s Diesel Services), Adrian Bush (BHP Billiton).

Joint effort for apprentices A collaborative industry effort will enhance the prospects of apprentices in Mount Isa. It involves a Cannington Mine-donated Mercedes Benz diesel engine which was recently refurbished by Popeys Diesel Service for Certificate III Diesel Engine Fitting block training at Mount Isa TAFE. Adrian Pope, owner of Popeys Diesel Services said he was once himself an apprentice training at TAFE and knew how invaluable it was to be able to work on modern diesel engines and diagnose and fix problems during training. “Through the software donated by MTU Detriot Diesel we can program electronic faults for the Diesel Engine Fitting

apprentices to find and fix in the TAFE Queensland North workshops,” Mr Pope said. “I know TAFE and their Diesel Engine Fitting teacher Darryl Fraser is extremely grateful for the donation and will be incorporating the Mercedes Benz engine into the training for Stage 2 and onwards apprentices.” TAFE Queensland North worked closely with industry in Mount Isa securing training resources that ensured the Diesel Engine Fitting apprentices return to their workshops with the skills that they can put to good use for their employers said Diesel Engine Fitting teacher Darryl Fraser “At TAFE Queensland North

we want the apprentices we train to be job ready and equipped to make a real contribution to the efficient operations of their employers’ workshops,” Mr Fraser said. “A training resource such as this Mercedes Benz diesel engine will make such a difference to the quality of the training we provide and is a further indication of the close alliance between our local Diesel Industry and TAFE Queensland North. “Industry has high expectations of the training we provide to their apprentices and this donation is a further expansion of the skillsets we are able to teach their employees.”

Isaac Council helps clean-up Isaac Regional Council played a direct role in the clean-up of Rockhampton following Cyclone Marcia. Around 20 Isaac staff with vehicles and equipment were deployed to Rockhampton Regional Council the week following the clean-up, said Isaac Local Disaster Management Group Chair and Mayor Anne Baker. It included workers from Isaac’s land care, road works and SES crews while seven SES members, two vehicles and storm damage equipment were deployed to the Capricorn coast to clear fallen trees, debris and

Isaac relief teams help in Cyclone Marcia Clean up.

tarp roofs. “I thank our staff for their dedication and commitment, particularly our SES members who are all volunteers,” Cr Baker said. Mayor Baker encouraged community and corporate members who wished to donate to access the website

www.givit.org.au. GIVIT is a grassroots Australian charity that connects those in need with those willing to give. GIVIT, wherever possible, purchases items from local providers to support the local economy as it also recovers.

The RACQ North Queensland Rescue Helicopter was one of eleven community organisations considered to be servicing an area most at need that have been funded by the Glencore Community Program. The program distributed $1.4m in grants to communities including Cloncurry, Mount Isa, Townsville and Bowen. A city development officer who will sit in the Commerce North West offices, will be jointly funded with Mount Isa City Council and Books-inHomes, that will help children

improve their literacy skills, is funded in seven schools from Camooweal to the Coast. The Cootharinga Society of North Queensland has been funded to create a joint Glencore hub to advance the quality of life of people with disabilities. Another 17 units will be built at the Laura Johnson aged care home in Mount Isa and the Townsville Hear and Say centre has been funded to boost efforts to better respond to the early intervention of lifelong needs of children.

BHP backs cyclone relief through Salvos BHP Billiton donated A$250,000 to the Salvation Army to provide support to community members affected by Cyclone Marcia. The funding, through the BHP Billiton Sustainable Communities (BSC) program, went toward the Salvation Army ‘Fill a Fridge’ initiative with all funds used to provide essential food and household items. The Salvation Army’s Major Colin Maxwell said that the organisation fed up to 900 people after the cyclone and the funding from BHP Billiton Sustainable Communities went a long way in helping those in need get back on their feet. In addition to BSC’s $250,000 donation, BHP Billiton Mitsubishi Alliance (BMA), which has coal operations in central Queensland, also provided seven generators to help address ongoing power outages in the Yeppoon area, said BHP Billiton President, Coal, Mike Henry. “Many of our employees live in these communities and our people at BMA are on the ground and continuing to work with local Disaster Management Groups across affected areas to assess what further support can be provided,” Mr Henry said. As well as the A$250,000 donation, BHP Billiton Sustainable Communities will donate two dollars for every one dollar donated by an employee through the BHP Billiton Matched Giving Program. BHP Billiton Sustainable Communities is a charity established by BHP Billiton as part of its community investment program.

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72 Link Drive, Yatala QLD 4207 Phone 07 3297 4000 Fax 07 3382 6119


17

Queensland Industry Advocate | March 2015

EQUIPMENT REVIEW

New skid steer loader Safety, comfort and versatility have been delivered in a single package with the new JCB1CXT skid steer backhoe loader, which can be operated and driven while facing either the loader or the backhoe, said JCB CEA National Product Manager Glenn McLeod. The ability to drive while facing the backhoe will help improve productivity, said Mr McLeod. “Because the 1CXT can be driven while the operator is facing either direction, there’s no need

to spin the seat back around before the machine can be repositioned. This extra convenience can add up to a lot of time on the jobsite.” The 1CXT has a speed of 7.5kph in both the forward and reverse directions. It has a track design that, ‘ensures a more stable platform for smoother performance and excellent flotation, particularly over soft or wet terrain’. The new model had high drive track motors with four rollers to reduce ground pressure contact.

JCB1CXT skid steer backhoe loader. ADVERTORIAL

Contractors conundrum Genie’s new Z-33/18 lightweight electric Z-boom lift.

Genie in a bottle There’s now an electric Z-boom lift designed to cater for growth in the warehouse sector. Genie’s new Z-33/18 is the first entirely new compact, lightweight electric Z-boom lift designed for both indoor and outdoor maintenance applications. It had a sensitive side said Terex Aerial Work Platform’s Qld and PNG sales manager Kurt Kinder. “This model is well-suited to applications on sensitive surfaces such as inside airports, shopping centres, theatres, even museums and galleries – in addition to routine outdoor maintenance tasks,” said Mr Kinder. “It is a completely new Genie® model designed to offer a great combination of features and ‘up-and-over’ lift capabilities combined with powerful drive motors. The Genie Z-33/18 boom lift will help increase efficiency on jobsites where space is tight.” The key features of the new boom lift include solid non-marking or multi-surface tyres, tight inside turning radius with zero tail swing for manoeuvrability and the ability to drive at maximum height. Its high efficiency and excellent manoeuvrability allow it to meet the needs of a variety of lightweight application job sites, said Mr Kinder To make transport easier, this compact unit’s boom stows down to only 1.50 m (4 ft 11 in) in width and 4.17 m (13 ft 8 in) in length. Drive speed is an efficient 5.95 kph (3.7 mph). In addition, the Genie Z-33/18 boom lift features mechanical switches that are conveniently protected within the boom to avoid damage.

Contractors in the mining industry are in a conundrum. There’s an increase in demand for plant and equipment as mine owners ramp up production to counter the shortfall in price. At the same time traditional funders are restricting room to move. Those in the industry call it ‘headroom.’ Contractors may experience ‘head Finlease Australia broker room’ limitations where their existing Phil Horton funders are getting closer to maximum exposure and any additional finance may incur higher rates and less flexible terms. It’s worthwhile considering spreading debt across a broad base of banks and finance companies. In the current market there are at least ten capable and competitive financiers who will readily fund plant and equipment in mining and related industries. The trick is to access several funders, let them compete for your business and in doing so, secure finance which best fits your business and its future growth. If you develop a track record with five

lenders instead of one or two, you are more likely to avoid ‘head room’ issues and future growth on your terms is more easily achieved. To take advantage of this broader market, you need to know the appetite of each funder, what their sweet spots are and present a formal submission. An independent, reputable finance broker has the expertise, the resources and the market knowledge to pitch your business to the most suitable underwriting funder(s). Competitive brokers often develop long term, in-depth relationships with their clients, often spanning 10–20 years. Contrast this with the revolving doors of bank account managers who may only meet the client two to three times before disappearing. Finance brokers should provide alternate funding products and more importantly suitable terms and conditions to best fit the business. Whether it’s traditional Equipment Finance, Working Capital or Alternative Banking, the broker can save business operators time, money and hassle. Finally, competent brokers should perform the role of a long term associate/ mentor in the finance area helping business owners as they grow. For more information on getting finance right as your company grows and the role of a finance broker, contact Phil Horton on 0408 776 220 or qldsales@finlease.com.au who will welcome your enquiry.


18 NQ OPERATIONS

Queensland Industry Advocate | March 2015

$192m Infrastructure budget A $40m infrastructure project in Townsville hopes to deliver solutions to a key access issue in north Queensland. The Dalrymple Road Bohle Bridge Crossing will provide emergency access and connectivity in and out of Townsville during times of flooding. The bridge will be located where Dalrymple Road crosses the Bohle River, between the new subdivision ‘Greater Ascot’, near Shaw and Golf Links Drive intersection with Dalrymple Road, Mount Louisa. The project will be funded at the federal, state and council level over two years. The crossing was a key infrastructure project for 2015, said Townsville Mayor, Jenny Hill. “We have the funding, the design is complete, and it’s out to tender at the moment,” she said. “Road projects are major infrastructure projects and they’re the projects that will hopefully keep many of our local contractors going during this period. “Our capital works program for 2014-2015 is about $192m which is quite significant considering most of that work goes to private contractors.” The project would appeal to a pool of high caliber engineers and skilled workers said Townsville City Council, director of infrastructure services, Neil Allen. “Because of the downturn we’re lucky with the calibre of workers we can attract to projects like this,” he said. “They’re looking for iconic projects to be involved in. Landmark projects draw

technical experts from all around the country and give those that are here a good chance to be part of something special. “Building bridges doesn’t seem like a landmark project but in reality, a $40m bridge over a river that’s flooded several times every year on a busy road is quite a landmark.” A raft of other infrastructure projects in the pipeline aim to offer more solutions to key issues facing the north. Continuing this year will be stage one of the $25m Townsville Boating Park, the Magnetic Island waste transfer station, and a number of other minor projects.

Construction progressing well on the new reservoir at Mount Louisa.

The boating park will be the biggest recreational boating facility in the north with 16 boat ramps, parking and a small

precinct including boat storage, maintenance and a café. See references to these and other major infrastructure

projects on our North Queensland Mining and Infrastructure Projects Map at www.industryadvocate.com.au

Mt Isa influence in CEO Patricia O’Callaghan describes herself as ‘north Queensland, through and through’. Born and bred in Mount Isa Ms O’Callaghan is the chief executive officer at Townsville Enterprise. Ms O’Callaghan began her career in media and public relations but soon developed a passion for economic development of the region and moved into a role heading up the Mount Isa Chamber of Commerce. “I really believe in organisations such as the Mount Isa chamber of Commerce and Townsville Enterprise. They are in a unique position to make a real difference in the communities that they exist,” she said. “You’re able to work and advocate to all levels of government to secure funding commitments for infrastructure or projects but you’re also in a position to influence government policy which can really make a difference to businesses and even

residents in the regions.” Ms O’Callaghan moved to Townsville to take on a role as General Manager of Tourism and Events with TEL, and earlier this year she moved into the position of chief executive. Living in Mount Isa and Townsville for most of her life had provided a key understanding of the needs of the north, said Ms O’Callaghan. “I think we’ve really seen the impact of the downturn in the resources sector,” she said. “At the moment the key issues are around jobs, support for our mining industry, and support for policy amendments that will ensure its future.” “I understand the needs of the north I’ve lived and breathed it my entire life.” Ms O’Callaghan’s key achievements to date include the delivery of the Townsville north Queensland region’s first marketing brand in 14 years– Alive with Curiosity.

The campaign went on to win the Queensland Multimedia Award for Best Film or video TV Advertising Campaign. Ms O’Callaghan was also awarded the 2013 Australian Institute of Management Young Manager of the Year Award – Queensland.

Get more ACCESS to Manufacturing

Sales: Michelle Silver m: 0439 536 466 p: (07) 0747 550 336 f: (07) 0747 550 338 e: bdm@industryadvocate.com.au

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19

Queensland Industry Advocate | March 2015

NQ OPERATIONS

Major project millions fund a lift to Townsville’s lifestyle

Hoisting operations from Ernest Henry Mining’s kilometre-deep underground shaft commenced in June 2014 which has enabled increased production rates. Photo: Rob Parsons

Copper up at Ernest Henry Glencore Australia is getting more out if its Ernest Henry asset near Cloncurry. Increased production of ownsourced concentrates at the mine has contributed to a five per cent increase in copper output. It’s tied to the shaft commissioning in mid-2014, which allowed underground production to ramp up. Copper production was up to 259,100 tonnes, (13,400 tonnes higher than 2013), according to the company’s latest annual report. ‘The increase reflects higher own-sourced cathode output from the Townsville refinery due to increased production of ownsourced concentrates, primarily from the Ernest Henry mine,’ the company said in the report. A boost in gold production was also attributed to higher grades.

‘Gold production was 62,000 oz, 38 per cent (17,000 oz) higher than 2013, relating to higher grades, including the treatment of more Ernest Henry material (higher gold content) than in 2013.’ On the zinc front, production was reported at 661,600 tonnes – nine per cent (53,200 tonnes) higher than 2013. The growth was a reflection of the successful expansion of the Lady Loretta mine in Mount Isa and commissioning of the Phase 3 expansion at McArthur River, said the company. The expansion is expected to increase ore production to five million tonnes per annum (from 2.5 million tonnes). Ernest Henry processes and smelts copper from other smaller regional mines.

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Expansion of Willows Shopping Centre The $90m expansion of the Willows Shopping Centre is being undertaken with an eye to service a forecast 2.4 per cent annual population growth slated for Townsville over the next ten years. Dexus Wholesale Property Fund is expected to start the $90m redevelopment before the new financial year. The development will provide an additional 11,000 square metres of retail space and include the latest format Woolworths, basement and rooftop parking, two new mini-majors and around 35 new speciality stores as well as a fresh food precinct fronting the new Woolworths. Bruce Highway – Townsville Ring Road – Section 4 (Shaw Road to Mount Low) The Federal government is contributing the lion’s share of funding to the Townsville Ring Road project. It’s committed $160m to the estimated $200m price tag of section 4 which involves the construction of the final section of the Townsville Ring Road, from Shaw Road, 11.5km across the Bohle Plains, to Mount Low in the northern beaches. Planning is underway by Seymour White which has been named as principal contractor. It will be built to motorway standard, with a 100km/h speed limit. Townsville City Waterfront Priority Development Area (PDA) Townsville City Waterfront

entertainment and events facility. More than $300m funding is being sought in total. It is the anchor project for the city’s vision for a new waterfront precinct in the CBD. Townsville Enterprise is briefing the state government on roll-out of committed funding and additional funding required to deliver the project by 2019.

A $90m expansion has been slated for the Willows Shopping Centre in Townsville.

Priority Development Area (PDA) comes into effect this year and is designed to encourage investment initiatives into the development of 97hectares of land on both sides of Ross Creek adjacent to the CBD. The PDA project was declared in September 2014. The site is an important part of the Townsville urban area and will make a substantial contribution towards the vision of having 30,000 people living, visiting and working in the CBD by 2030. Stadium Northern Australia The new Labor government committed $100m to the Stadium Northern Australia development as a funding promise in the recent state election. The concept is for an integrated elite sports stadium,

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CBD utility upgrade Ageing inner-city utilities infrastructure in Townsville’s CBD will undergo a staged upgrade to support an inner-city revival. Townsville City Council has targeted water storage and approximately 12km of underground water and sewerage pipe work over the next four years. The council set aside $7m in this year’s budget to kick start the project with the construction of a 32ml reservoir in West End. Magnetic Island Waste Transfer Station More than $8m is being spent on Waste Transfer Station at Magnetic Island. The overall project will include widening a section of West Point Road, a 450sq metre building that houses the drop-off facility, resource recovery and buy-back areas, a green waste collection area as well as security fencing, car parking and vehicle access points. The transfer station is expected to be completed and opened for operation late this year.

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Speak with our Head of Boarding, Lesa Fowler, about your daughter’s education at MINEX 2015 (Hoecker Pavilion - Booth 61)

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Choosing a boarding school for your daughter is an emotional decision. Quality education is vital, access to excellent care and pastoral support is essential, and links to family and community can help smooth the journey. For 120 years the people of rural and regional Australia have entrusted St Margaret’s with the education and care of their young women. This long held tradition provides St Margaret’s staff with exceptional insight into the care and education of girls in a boarding environment. Equally important is the understanding of each girl’s origin, community and background. St Margaret’s 170 boarders hail from all corners of the country, including eight girls from the immediate Mount Isa area, and the school regularly visits regional centres to connect with families, past, present and future. This year, St Margaret’s Head of Boarding Lesa Fowler is attending MINEX in Mount Isa in May. Managing a cattle property 120km north of Mount Isa, Nicole Kennedy says her family were searching for a supportive and secure environment for their daughter, Sarah, knowing they would be so far away. As a former boarder herself, Nicole anticipated the possible challenges but

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St Margaret’s year eight border Sarah Kennedy from Armour Station 120km north of Mount Isa.

said Sarah was the most homesick student she’d ever seen! “The school was amazing about it. Sarah had a really lovely house mum and the pastoral care was wonderful. They kept working with her and helping her. They kept in touch with me, sending regular emails and always taking my calls. She is so much happier now, which is great,� said Nicole. With Nicole’s niece and other local girls boarding at St Margaret’s as well, firsthand news regularly filters through. “It’s so nice to get calls from other local families visiting the school to say they’ve just seen Sarah laughing and having a great time,� said Nicole. Families visiting MINEX will find St Margaret’s in the Hoecker Pavilion (stand 61). Ms Fowler will be happy to answer any questions about the School and can also put you in touch with other regional families who have been a part of the St Margaret’s boarding community.

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Mount Isa boys Hamish Nelson and Max MacRae enjoy returning to their hometown, but can’t emphasise enough the incredible opportunities, both academic and cultural, on offer to them as Brisbane Grammar School boarders. Today BGS caters for almost 1700 boys, from years 5-12, with 102 boarders calling the school home. Year 10 student Max said there was a place for all boys at Harlin House. “It’s a lot of fun here in the boarding house, I’d definitely recommend it to anyone thinking about going to Grammar,� he said. “I was a bit nervous at first, but my advice is not to worry at all, there’s definitely something for everyone here and I’ve made some great friends.� Year 7 student Hamish, who has signed

up for fencing as an extracurricular activity, agreed. “The year is going so quickly, but I’ve made some good mates and have so many opportunities here,� he said. Hamish said his parents were considering moving down to Brisbane from Mount Isa next year, and while he’d love to spend more time with them he would be reluctant to leave the boarding house. BGS Director of Boarding Simon Hill said Harlin House offered access to a highly individualised approach to boarding, where each boy’s story is valued. “Academic support by teachers from the day school is offered to all boarders in the evening, and a full seven day a week activity program keeps the boys wonderfully engaged,� he said.


21

Queensland Industry Advocate | March 2015

NQ OPERATIONS ADVERTORIAL

Discovery Parks across the state

Craig Adams with Fierce Snake, Windorah in Queensland.

Snake activity up in Autumn Queensland is home to some of the most deadly snakes in the world. It’s a point of pride, but what would you do if you came face-to-face with one of the world’s most dangerous creatures? Director SSSAFE (Snake and spider safety awareness for Employees) Craig Adams said workers in remote locations such as mine sites are at particular risk. “While the risks of being bitten by a snake are still relatively low compared to other things, if you work remotely or live out the bush and come across snakes regularly you need to know how to manage the bite,” he said. “In these remote locations, time and distance becomes the enemy if someone is bitten. “If you are bitten by a venomous snake you could be in trouble in as little as 15 to 45 minutes.” Stories from safety officers on mine site include snakes found in the pits, trenches, the dongas and other facilities. Snakes are typically most active in the spring and autumn, however, Queenslanders can expect to encounter snakes throughout the whole year, Mr Adams said.

“Venomous snakes are widespread and they’re found in every habitat. Queensland holds the most venomous snakes in the world but most notably the Taipans and the eastern brown snakes,” he said. SSSAFE offers training in snake catch and release as well as snake and safety awareness including first aid and what to do if a snake becomes a threat. “It’s in response to an industry need for employees to know about this type of thing,” Mr Adams said. “Australia has the most venomous snakes in the world so we owe it to ourselves to learn a bit about them particularly how to deal with a snake bite.” The training was vital for remote workers said HSE manager Corbets Group Mitchell Tompkins. “Corbet’s operations are largely in remote areas of the Surat Basin so it is crucial our workers are trained in snake and spider awareness and know the correct first aid procedures in the event of a venomous bite,” he said. Our fauna spotters do catch a lot of snakes on site and our machine operators have reported seeing a six foot (long) brown snake on site so we do see them around.

Discovery Parks offers all in the North West Region. Ranging from accommodation solutions for those touring throughout the area; those staying for work, and those who wish to reside long-term in the area. Discovery parks – Mount Isa, Discovery Parks - Argylla and Discovery Parks - Cloncurry all offer a spectrum of choices. Catering for large workforce crews, to sites for caravanners, and everything in between, Discovery Parks offers the whole accommodation spectrum. Discovery even offers complete camp management services and offsite catering for special events. With the recent changes in our resource industry, more people and families are moving around Queensland in search of employment opportunities. Discovery Parks now offers a wider range of powered sites at our parks to make medium to long term stays more comfortable. The parks are also a great solution for the transient worker. Leave the car at our park and commute between work and home. With modern amenities and vast choices of powered and en-suite sites, Discovery Parks take the worry out of the accommodation search. This is the ideal way to settle down and enjoy the many facilities and services our parks provide, making it a holiday while staying at home. Long-term sites are on offer from the peaceful outback of Cloncurry, to the bustling town of Mount Isa. Creating instant solutions for those with new work, families moving from afar, or those just seeking a more convenient and economical way of living. Further afar in our locations around Central Queensland; our Rockhampton, Blackwater and Biloela parks all have affordable choices for travellers and those staying longer with their caravans, with sites suiting large rigs to the smaller van. Let Discovery take care of you. Check out our sites, cabins and workforce rooms at www.discoveryparks.com.au or call 1800 134 033

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Discovery Parks is an Australian owned and operated business specialising in accommodation solutions for the mining and resource industry. With parks located in Western Australia, Queensland, Northern Territory and South Australia, we understand the specific needs in providing affordable and sustainable workforce housing. A good night’s sleep is invaluable and our extensive network of properties offers comfortable and secure accommodation with modern facilities and amenities to create a safe and relaxing environment for you and your employees. Whatever your project, Discovery Parks can provide you with a complete accommodation solution.

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22 NQ OPERATIONS

Queensland Industry Advocate | March 2015

ADVERTORIAL

MINEX is a suppliers goldmine Planning is underway for the 2015 Mount Isa Mining Expo (MINEX) with thanks to Energy Power Systems Australia; with over 130 indoor and outdoor exhibits representing all areas of the mining industry forecast. Hailed as one of the largest annual Mining Expo’s in eastern Australia, attracting both national and international exhibitors, 2015 marks a special year for the event celebrating 20 years. Showcasing the wealth and quality of the mining industry throughout north west Queensland and the Carpentaria Minerals Province, one of the world’s richest mineral producing regions, MINEX 2015 with thanks to Energy

Power Systems Australia will be hosted at Mount Isa’s Buchanan Park over two days, May 13 and 14. Annually boasting hundreds of exhibitors and thousands of visitors to the iconic mining city, MINEX delivers a strategic opportunity for businesses, contractors, consultants, services and corporate entities to showcase their products and services to a targeted audience; highlighting just what makes them a stand out in the mining industry. In line with the event’s theme Celebrating 20 years - MINEX 2015 with thanks to Energy Power Systems Australia will also feature a very special mine rescue challenge. Expected to attract specialist mine rescue

Mt Isa’s Buchanan Park is the site for MINEX 2015.

teams from across the state, even the nation, the unique challenge will simulate realistic rescue scenarios and be sure to attract the crowds. MINEX 2015 with thanks to Energy Power Systems Australia kicks off on the

evening of Tuesday May 12 with a VIP Sponsors’ Function, and culminates on the evening of Thursday May 14 with the hugely popular Closing Function. Gates open to the public at Buchanan Park from 9am to

6pm on Wednesday May 13 and Thursday May 14. Persons interested in being a part of the 2015 event are encouraged to visit the MINEX webpage at minex.org.au or to follow the event on the all-new dedicated Facebook page.

ALL NEW MINE RESCUE CHALLENGE

With thanks to Energy Power Systems Australia

13 & 14 MAY 2015 BUCHANAN PARK MOUNT ISA

Celebrating 20 years EXHIBITING OPPORTUNITIES NOW AVAILABLE In excess of 100 indoor and outdoor exhibits Strategic opportunity to showcase your products and services to a targeted audience Tailored one-on-one time with purchasing officers at Meet the Buyer Sessions Networking opportunities

Showcasing one of the World’s Richest Mineral Producing Regions Carpentaria Minerals Province

Outback Queensland’s Premier Mining Expo

Phone: (07) 4743 9881 www.minex.org.au


23

Queensland Industry Advocate | March 2015

NQ OPERATIONS ADVERTORIAL

New connection to Asia Ligentia Australia has positioned itself at the vanguard of the scan, pick and pack Asia origin valueadded services revolution which is gathering momentum across Australia’s direct sourcing retail supply chain sector. Australian headquartered in Brisbane, the company has 12 offices with warehousing facilities in China, plus an extensive network right across Asia into India and Bangladesh via parent company, Ligentia Asia. Large retailers like Wesfarmers, Woolworths and Myer continue to grow their direct sourcing programs with manufacturers in countries like China. Some have embraced and are now expanding the offshoring of as much of their downstream logistics functions as possible, to lower-cost upstream environments. Typically, the mega-retailers work with large multi-national logistics operators such as DHL, K&N, Schenker and Toll. Ligentia Australia managing director, Bundaberg-born Dean Neville, said his company had chosen to take a more

considered and agile approach; tailoring logistic solutions to individual clientele and growing the collaboration as well as the businesses, regardless of sector. Ligentia Australia partners with direct sourcing retailers, wholesalers, tier 1 construction and energy infrastructure companies. The business plan, which Mr Neville described as “conservative”, has exceeded board expectations, tracking at 250 per cent ahead of projected revenue three years into its Australian foray. Warehousing facilities and distribution in Australia represent a significant component of cost of goods sold from shelves of retail outlets: Ligentia Australia’s tailored solutions handle the entire operation from source points in China and across Asia, through to final delivery sites be they retail store-shelf or remote CSG construction sites according to Mr Neville. The technology driven process offers 24-7-365 interactive monitoring of consignments along clientele’s critical path. Mr Neville said direct sourcing

was becoming more and more prevalent in the retail, sub-retail and industrial sectors. Ligentia has developed innovative, transparent, cost effective solutions which allow clientele to outsource their logistic chain and warehousing functions to a trusted solution provider in Ligentia, he said. “Readying goods for distribution in a high-labour cost environment against short lead time allocation planning from a static bricks and mortar footprint is a costly nonvalue adding exercise for most Australian businesses,” he said. “Our innovative critical path service solutions developed around “source to shelf ”

logistics outsourcing and lead time reduction adds up to demonstrable savings, improved inventory flow and generally leaner business operations for our clientele.” And it’s clear by the growth of the company over the past three years that clients, which include a diverse mix of direct sourcing retailers, brand wholesalers, shop fitting specialists, modular and prefabricated housing, construction, automotive and industrial safety companies, are happy with the tailored, personalised approach. Three of Ligentia Asia’s 12 offices in China - Shanghai, Ningbo and Shenzhen - are operated as specialist origin

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VAS (Valued Added Service) warehouses and with Qingdao coming on line early 2015. Mr Neville said expansion with China’s inland industrial centre growth is inevitable: “our business plan includes OVAS warehouse expansion into these key inland cities in 2016/17”. Mr Neville said the company’s Australian business was evenly split servicing a spectrum of customers with conventional containerised transport solutions, through to specialised project, road and 3PL warehousing requirements. “I expect we will see ongoing growth servicing our retail customers as they further leverage direct sourcing opportunities, in addition to expansion of our domestic 3PL warehousing and distribution services ” he said. Boasting a team of 62 fulltime employees, the company’s head office is situated in Brisbane with warehousing operations established in Melbourne and Brisbane. Ligentia Australia has also expanded into the Surat Basin where it has transport depots in Roma and Miles.

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24 NQ OPERATIONS

Queensland Industry Advocate | March 2015

ALP uranium policy questioned Decisions on the future of uranium mining in Queensland should be put on hold pending a Royal Commission in South Australia. That’s according to Mount Isa Mayor Tony McGrady. It comes as the incoming Labor government begins work on some of its key election promises including the re-instatement of a ban on uranium mining in Queensland. The ban was lifted by the previous LNP Newman government. Mr McGrady urged the Labor government to leave existing legislation in place until such time that evidence of all the pros and cons was provided. Results of the Royal Commission would offer solid evidence one way or another, said Mr McGrady. “It would be futile of the Labor government to reoppose uranium mining when the labor counterparts in South Australia are embarking on a royal commission,â€? he said. “The commissioners won’t accept political rhetoric, they won’t accept scare tactics, they won’t accept the usual clichĂŠs from opponents or indeed the

Tony McGrady Mount Isa mayor

supporters of uranium mining. “Anybody giving evidence will have to have actual evidence and will have to prove that what they are saying is true.� North west Queensland has two major uranium deposits that could offer up to 1,000 jobs and a much needed boost to the region, said Mr McGrady. “My advice is that we all pay lip service to the ideals of job creation. I think the public would judge any government

harshly that would introduce policies that would have a detrimental effect on job creation in our state,� he said. The Queensland Resources Council re-iterated its position against a reintroduction of the ban. A return to past Labor policy would be a disappointment but not a surprise, said chief executive Michael Roche. “The lifting of the ban injected a lot of confidence into the sector particularly encouraging more exploration of uranium,� he said. “It would be a setback particularly for the north and north west of the state.� Minister for State Development, Mines and Natural Resources, Dr Anthony Lynham would not comment on specific plans but re-iterated Labor’s position on the issue. “It is Labor Party policy not to allow uranium mining. That has been a longstanding position and has not changed,� he said.

Map showing uranium resources in Queensland. Part of Australian uranium resources map Š Australian Government Geoscience Australia published 2010.

Archimedes at Wulguru Townsville based Wulguru Steel purchased Archimedes Engineering in 2010 as a strategic acquisition to further the product handling side of its business.

the combined capabilities of the Wulguru Group we can then fabricate, install and commission it.�

Archimedes offers a raft of engineering knowledge and is a specialist designer and fabricator of screw conveyors, bucket elevators and mixers.

On top of its domestic success, the products and services of Archimedes have also received international recognition with the company exporting products to places such as Vietnam, PNG and Hong Kong.

The success of the acquisition has cemented Wulguru Steel as a one-stop-shop for industry said General Manager Wayne Landrigan. “Within the industry itself there’s only a few players who can do what we do and do it well,� Mr Landrigan said. “We can assess the most appropriate design based on what a client needs to move, how much they need to move and how far they need to move it. Wulguru Steel supplied 11 bucket elevators to a silica mining plant.

WULGURU GROUP

“We make an assessment of the product characteristics and make recommendations on the design. Then with

“The future is positive given the broad industry reach we have. Coupling the strength of the Wulguru Group, we have the ability to provide a one-stop-shop,� Mr Landrigan said. “As a result, the Archimedes Engineering business has experienced strong financial growth in the time that it has been owned by Wulguru Steel and we expect to see that growth continue.�

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25

Queensland Industry Advocate | March 2015

NQ OPERATIONS

Cross operations dependency The success of one of Australia’s most remote complex chemical plants is underpinned by its symbiotic relationships with other key operations in north Queensland. Incitec Pivot’s Phosphate Hill plant, located 900 kilometres west of Townsville, is the biggest fertiliser plant in Australia. The site hosts an open cut phosphate mine and export and warehouse facilities. The 1.3m tonnes of sulphuric acid consumed each year comes in large part from the Glencore copper smelter in Mount Isa and the Sun Metals zinc refinery in Townsville. The interdependent

releationships with other businesses were critical, said Incitec Pivot Fertilisers chief operating officer James Whiteside. “Our relationship with Glencore sees us substantially reduce their emission of S02 into the atmosphere by turning it into a useful product,” Mr Whiteside said. “It’s in our interest because it is the cheapest form of acid that we can make so it’s a very important relationship. Our sulphuric acid plant actually sits right alongside the copper smelter in Mount Isa.” Long-term gas agreements are another way the operation keeps

Phosphate Hill in north west Queensland is the biggest fertiliser plant in Australia

costs down. But rising prices were still an issue when faced with the challenge of remaining globally competitive, said Mr Whiteside. “We run the plant at consistent levels all year so reliable gas is very important,” he said. “We’re a big consumer of

natural gas not as a source of energy but as a source of feedstock for ammonia production. “It means we’re sensitive to the price of gas. Obviously it’s been a big issue with the development of the Queensland LNG industry and it puts some impost on the business.

“In a global market, we can’t pass on rising input costs.” 60 per cent of annual tonnage is shipped domestically to major agricultural markets. All product is railed to the port of Townsville for export domestically and internationally. Phosphate Hill has a minelife of at least 20 years.

$9m project encourages exploration in NW Qld Innovative scientific approaches to new exploration are being applied in one of the world’s most prospective metals and base metals regions. The Mount Isa Geophysics Initiative is a $9m two-year project that aims to reduce exploration risk by improving the understanding of regional sub-surface geology and cover thickness and character. “It’s aimed at underpinning a new era of successful greenfields exploration in the region and revealing targets that will become the major new mines of the future,” Geological Survey of Queensland Department of Natural Resources and Mines geoscience manager of minerals Paul Donchak said. Mineralised Mount Isa rocks extend for many hundreds of

The Mount Isa Geophysics Initiative seismic survey

kilometres beneath the shallow cover rocks, said Mr Donchak. “Most of those covered rocks haven’t been looked at and there’s every chance they have the same resource endowment

as has already been found in the exposed areas.” While under cover deposits are generally considered highrisk investments, the surveys should make them much more

attractive, said Mr Donchak. Last year was the first year of the initiative. It centred around the seismic transects in the Boulia to Birdsville area. The results are currently being processed. Plans for year two include a wider and more extensive assessment of what’s under cover in areas north and east of Cloncurry. The researchers will be looking specifically for conductive targets. “A lot of mineralisation goes hand in hand with conductive rocks so if we can locate where some of those conductive targets are under reasonably shallow cover, they would offer attractive targets for explorers,” Mr Donchak said. “These targets will be located

by cutting-edge geophysical techniques including magnetotelluric (MT) and high powered aerial electromagnetic (EM) surveys that aim to see through the conductive cover rocks that have plagued previous greenfields exploration in the region. “The data from these surveys will be integrated into 3D models of the subsurface, using some of the most advanced computing methods in the country.” The models will complement the recently completed BouliaBirdsville and Longreach-Four Ways seismic transects which were designed to detect major ore-forming pathways that bring mineralizing fluids from deep in the earth’s crust.

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27

Queensland Industry Advocate | March 2015

NQ OPERATIONS

Successful Dugald River trial A successful stoping trial at Dugald River has delivered positive results for MMG’s north west Queensland operations as Century wraps up. 19 trial stopes were successfully mined and backfilled during the trial last year, and 450,000 tonnes of ore produced. If approved, the ore will be trucked to Century for processing later this year, said MMG general manager of Queensland operations, Mark Adams. “The trial was very successful,”Mr Adams said. “The key findings were that we can mine it successfully and safely.” “15 months ago there was a concern that the somewhat fractured hanging wall wouldn’t be able to be mined safely and productively. With a lot of work we’ve proven that it’s not the case.” The trial gave some strong indicators on mine production for the future but Mr Adams declined to comment on numbers. The operation would not act as a replacement for Century and other operations wrapping up in the region, he said. “Century is a half million tonne a year zinc metal producer, Dugald River is smaller than that and certainly smaller than other operations such as Mount Isa (Mount Isa Mines). Century will close later this year but options for further mining are still being investigated, said Mr Adams. One option is reprocessing of material out of the tailings dam. A tailings re-treatment project was completed last year and successfully produced the first part of the process for re-treatment - a low-grade

MMG Century processing plant at Lawn Hill will be kept in a state of operational readiness for approximately three years after the end of production. Photo: Jackson Magriplis

concentrate. Post-closure, Century will be kept in a state of operational readiness, said Mr Adams.

“We will take everything from the concentrator to the offices, into a state of operational readiness. So we will have the

ability to re-start as and when we make a decision about tailings re-treatment,” Mr Adams said. “Currently the state of

operational readiness looks to be between three and five years.” An exploration program is also funded until the end of this year.

New Lorena Gold Project shelved Questions have been raised over the future of a robust gold project earmarked for the north west. Malachite Resources is ‘investigating its options’ for the Lorena Gold Project following the announcement that 50/50 joint venture partner BCD Resources had gone into administration. The project, located near Cloncurry, is expected to produce about 30,000ozs of recovered gold from an open cut operation in its first year should it progress. Malachite Resources is currently reviewing its position in light of the recent development, the company said in a statement. “Malachite will also continue to investigate its own funding requirements

and options.” Malachite currently holds 100 per cent unencumbered ownership of the mining licences relating to the Lorena Gold Project. In accordance with the terms of the joint venture agreement between the parties BCD has not yet earned its 50 per cent interest in the project as it has not met its obligation to fund project development through to the completion of construction and commissioning of a plant to produce a gold concentrate. MI Steel fabricators is the contractor that has been charged with the on site build. For now, the equipment has been put down and construction has been put on

hold, said MI Steel Fabricators managing director, Jonathan Dempsey. “We have to stop work down there at the present time,” he said. “We have been advised we will be contacted again once the work starts back up.” “We’re just playing the waiting game on that one at the moment but we’ve been working at Glencore in Mount Isa doing labor hire and we’ve been keeping busy. “We can’t just sit and wait for Lorena.” Electrical and piping installations for the plant and construction of the tailings dam are among the key components that need to be completed before plant commissioning can take place.


28 NQ OPERATIONS

Queensland Industry Advocate | March 2015

Third party boost to output A campaign to process ore from CopperChem’s Mount Colin Mine through Ernest Henry Mining’s (EHM’s) Concentrator Plant has seen benefits flow throughout Glencore’s north Queensland operations. Over six months EHM processed 290,000 tonnes of copper ore into concentrate in targeted four-day campaigns around the processing demands of Ernest Henry ore. The concentrate was then further processed through Glencore’s Mount Isa Mines copper smelter and Townsville Refinery, extending benefits to the wider north Queensland business. The opportunity to process third party ores allowed local mining companies to get their product to market by leveraging the capacity of Ernest Henry’s Concentrator said Glencore north Queensland copper assets chief processing officer Richard Harvey. “Since the mine transitioned to an underground operation the Ernest Henry Concentrator hasn’t been used to its full capacity so the opportunity to process third party ore not only increases the output of copper concentrate from Ernest

Third party ore from nearby Mount Colin Mine is stockpiled at Ernest Henry Mining before

Irrigation in the gulf presents limitless opportunities for farming

being processed

Dam the benefits

through the concentrator.

Henry but also strengthens the sustainability and profitability of the operation,” he said. “Additionally the Ernest Henry team has processed other alternative ore types including slag from Mount Isa Mines and other third party material.” The concentrator team had successfully taken on the challenge of processing alternative ore types, said EHM concentrator manager Nathan Bullock. “Each time we process an ore type other than Ernest Henry the concentrator team has to

reconfigure the plant’s circuit to suit the processing needs of the third party ore. Our Ernest Henry ore requires a high throughput rate for a low grade ore, however Mount Colin ore required a low throughput rate for a high grade ore,” he said. “The team have demonstrated their capability to successfully treat third party ore while proving they have the knowledge and flexibility to deliver good results that flow on for our wider north Queensland business.”

An irrigation project in the Gulf of Carpentaria could open up more than 21,000 hectares of opportunity for the ‘wild west cowboys’ of the region. Proponents for the Gilbert River Irrigated Agricultural Area proposal aim to open up new cropping, export and development opportunities in the area between Georgetown and Croydon. The project centres on a dam proposal and a number of options have been canvassed including a 300,000 ML storage at Green Hills Station. A 2011 engineering assessment of construction costs for this location came in at approximately $180m. A dam would act as a catalyst for a number of different

industry opportunities, said Gulf Savannah Development chief executive officer Lara Wilde. “On the one hand at the moment we are already cropping in that area without irrigation, and with some irrigation,” Miss Wilde said. “But with a dam then the sky is the limit as to what we could grow.” “With grain we can finish cattle and then we can talk about an abattoir. “If we have sugar cane we can talk about an ethanol plant. While timeframes surrounding dam construction and project progression are uncertain, Miss Wilde said changes in the region over the next four or five years will make ‘heads spin’.

ADVERTORIAL

Changes are happening at Northern Stevedoring Services moving the company forward’ she says. Ms Sperber firmly believes in the capabilities of NSS employees, and has been sailing the NSS ship through rough economic conditions.

New NSS general manager, Juliette Sperber

Recently appointed general manager, Juliette Sperber, has been working with the NSS management team to create a new vision for NSS, and is leading the company to reinforce their position as regional Queensland’s leader in stevedoring, transport and logistics. From day one, Sperber has brought a fresh perspective to operations, looking at everything from improving service offerings to finding ways to give back to the Northern Queensland community. ‘I have been fortunate in my very short time as general manager to gain acceptance by NSS employees, and to be seen as someone who is

Rather than sitting it out, NSS is taking measures to improve and expand its services. ‘We are firm in the belief that our service offering and capabilities will see us obtain more work in the near future’ says Sperber. Internally, the company is reinforcing safety measures and further developing its systems, procedures, work practices and maintenance programs to ensure optimal efficiency and to deliver outstanding results for clients. NSS is also building on its consistent commitment to giving back to the surrounding community. Juliette is determined to support charities that give back to Central and Northern Queensland in real, measurable ways. In the last three months, NSS has donated to Disadvantaged Children’s Movie Day, Peter

Downey’s XI Goldfield Ashes Cricket Team, Volunteer Marine Rescue Mackay and Drug Awareness and Relief Foundation. NSS has also committed to participating in the Townsville Running Festival in August 2015. Ms Sperber is encouraging all employees and their families to get active, and run or walk in the 2.5km Hero Run event. Company culture is a key part of creating the highly effective teams of NSS, and Ms Sperber is confident the team can achieve the ambitious goals she has set for NSS. ‘NSS has an outstanding team of people. We want to build upon the strong reputation that we have and make sure that what we deliver is even safer, more productive and cost effective than it has been in the recent past.’ ‘After four months as NSS general manager, I am finally hitting my stride. It is my intention to build up business and make NSS more profitable for our shareholders as well as our employees. We are all in this together.’


Queensland Industry Advocate | March 2015

BETWEEN SHIFTS

Gary Davis and Neil Hoskin (Dust-A-Side Australia) with Andrew Willett (Fire & Safety Australia) at TSBE February Enterprise Evening - Toowoomba.

Gavin Walton (TSBE), Michael Matthewson (Wiley and Co) and Mark Steinhardt (InterFinancial Corporate Finance) at TSBE February Enterprise Evening - Toowoomba.

Bruce Messenger (Queensland Nickel), Tim Fisher and Ron Furnell at AusIMM Generation Y and Employment in the Minerals Industry Technical Meeting - Townsville.

Angie Akee (Kyburra Munda Yalga), Peter Buckland, Kym Calderwood, (Adani) and James Doyle - at Bowen Basin Contractors Networking Event - Townsville. Tony Boyle (Avis), Louise Smith (CAT Energy Power Systems) with Cr Jenny Hill (Townsville City Council) at NQ Transport, Trades and Mining Expo launch - Townsville.

Laura Smith (Toowoomba Regional Council), and Patrice Lund (RACQ Group) at TSBE February Enterprise Evening Toowoomba.

Amanda Gray (Quest), Cr Vern Veech (Townsville City Council) at NQ Transport, Trades and Mining Expo launch Townsville.

Scan this code with your mobile device to see more photos from Ian Kraeme (Mantle Mining) with Patrick Walta (Carbine Resources) at 34th QEC Explorers’ Investor Forum - Brisbane.

Trevor Prior (Juru Enterprises Ltd) and Dameim Aidon (JEL) at Bowen Basin Contractors Networking Event Townsville.

these and other events

Line Jenssen and Jarah May (both Queensland Nickel) with Ged Welsh (Hays) at AusIMM Generation Y and Employment in the Minerals Industry Technical Meeting - Townsville.

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