Queensland Industry Advocate May 2015

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The dispute that defined an industry – 50 years on

THIS EDITION • Spotlight on the Surat Basin

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COVER IMAGE: Union organiser Fred Thompson helped orchestrate one of the largest strikes in Australian history. His son Peter tells the story.

May 2015

2 Winton’s artesian power

FEATURING 10 Living Remotely

A geothermal power proposal ticks budget and

12 Our Mining Heritage

conservation boxes.

14 Industry Leaders

4-5 Mining’s big strike

15 Local Government

It’s been 50 years since the end of industrial tensions that shut

16 Building Mining Communities

down Mount Isa Mines for more than eight months.

17 Between Shifts

7 Resource rents down Property values and rents in resources towns are down across the board leaving many locals governments in

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

arrears.

18 Equipment Review 19 Education

Sales: Jennifer Revie 0410 163 094

24 Surat Basin feature Infrastructure and development plans for south west

Client Services: Marion Lago 0414 225 621 Journalist: Dominique Kimber 0414 371 966 Graphics: Jim Thorogood 0418 790 745 Email: info@miningadvocate.com.au Postal: PO Box 945, Townsville, Q, 4810

Queensland are on the boil.

24-28 Surat Basin Operations Advertising booking deadline for the July 2015 edition: 17 June 2015 All material is copyright and cannot be reproduced in part or in full by any means without written permission of the managing editor. The views expressed in this publication are not necessarily those of the publisher.

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2 NEWS

Queensland Industry Advocate | May 2015

Satellite certainty baselines new boundaries Property boundary coordinates plotted to millimetre accuracy on Google platforms The mining, construction and farming sectors are among the industries that could benefit from a new initiative being developed by a Queenslandbased company and the state government.

The project aims to provide greater positional certainty to property boundaries across the state.

THG Resource Strategists is undertaking two pilot projects that will be able to provide coordinates for property boundaries to within 10-20mm of their position on the earth’s surface.

Related data is already being displayed digitally online through tools like the Queensland Globe overlay available in Google Earth, said THG Resource Strategists director surveys Peter Sippel.

“The issue in Queensland is the digital representation that you see in terms of the property boundary on Queensland Globe is basically a graphical representation,”Mr Sippel said.

“It was acquired from a range of hard copy maps by a process of digitisation in the eighties with some enhancement over time.

THE FACTS Project surveyors use receivers that connect to satellites in space.

These satellites are used to pinpoint the location of the receivers to within 10-20mm.

The co-ordinates provided by the satellites are entered into the database.

The visualisation of the digital database of property boundaries is accessible online as public record.

Peter Sippel THG Resource Strategists director surveys

“That base has served us very well for a long time but now community and industry using digital information wants to see this information expressed in that digital environment in a very accurate real earth coordinate framework that they can rely on to make decisions.”

The process that THG has embarked on alongside the Queensland Government has evolved to an industry government taskforce known as 3dQld. “The taskforce is about gaining a property boundary digital data set in Queensland which

is extremely accurate in terms of its coordinates in space,” Mr Sippel said. “So it’s real position on earth.”

The database will be made public so property developers, engineers, designers, construction industry, mines, and farmers will be able to access a reliable source when undergoing new development.

“In any kind of development relating to land, one of the first things you need to do is determine the property boundary,” Mr Sippel said.

“This database has the potential to greatly enhance decision making and investment outcomes due to its reliability

The Vision Property Boundaries in 3D.

and accuracy.”

So far, the initiative has been rolled out on two greenfield property development projects in south-eat Queensland.

The new measures would be brought in as other projects began across the state, allowing them to build the information, Mr Sippel said.

While the data collection is currently working on a projectby-project basis, the taskforce

was investigating ways to fast track it, he said..

“It’s an evolutionary project that could take 10 – 15 years to complete but the bottom line is we need to make a start because this is what industry is looking for, and what industry requires,” he said.

“However, the taskforce is looking at how we might be able to do it on a quicker and more significant scale.”

Hot water may both power and conserve A western Queensland council is investigating ways to reduce its environmental footprint while saving up to half a million dollars a year in power costs.

The Winton Shire Council currently runs the town off bore water from the Artesian Basin. That water comes out of the basin at a temperature of about 86 degrees.

This heat offers a rare opportunity for power production through a geothermal plant.

The council has spent the last year and a half completing feasibility studies into the construction of a 250-kilowatt plant to service its assets.

“Although we haven’t fully committed yet we have a reasonably high degree of confidence in the technology,” Winton Shire Council chief executive officer Thomas Upton said.

“Water to generate electricity through the geothermal

Inside the portable plant.

process is a proven technology across the world.

“Council is just going through a detailed design process to ensure that it will translate to the Winton environmental and technical conditions.”

The council power bill currently sits at about $500,000 a year.

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A geothermal plant would have the potential to provide enough power for all council assets, said Mr Upton.

All up, the geothermal plant would come in at a cost of $3m, with a payback period of six to seven years.

Similar projects overseas have recorded a plant life of about 20 years.

If the project gets the green light there may be room for expansion in the future and if legislative changes are made the local community could also one day cash in on the savings, said Mr Upton.

“At the present time Queensland legislation prevents us from providing power to third parties as you have to be a registered electricity provider,” he said.

“The new Queensland Government is looking at expanding the capacity to sell electricity in Queensland which would be a good outcome for us.

Maitland Maltby LGIS manager - Energy, Margaret de Wit Local Government Association Queensland president, Butch Lenton Winton Shire Council mayor and Tom Upton Winton Shire Council ceo at the project launch.

“The plant could potentially be scaled up to increase the power output but at this present time it’s not in the short term plans.”

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3

Queensland Industry Advocate | May 2015

NEWS

Call for loyalty to the regions as numbers fall Regional centres which supported the boom are now going backwards.

It is time for governments to “pay back� regional Queensland, as people start to leave northern cities in droves, an economist says.

DSEconomics director Colin Dwyer examined the most recent population statistics for Toowoomba, Gladstone, Rockhampton, Mackay, Townsville, Cairns and Mount Isa for Queensland Industry Advocate.

While the combined cities notched up a growth rate of 1.5 per cent, on par with Queensland in general, drilling down into the data showed a bleaker picture.

Across the seven cities the net migration figure was negative 2092 - that is there were more residents leaving the cities than there were new people coming in, Mr Dwyer said. The slight overall growth was due to births outnumbering deaths.

He believes the regions should have been better insulated

from the boom-bust swings of industry by governments investing more into those communities. “These cities have contributed significantly to the economy over time, although that has now started to decline, and have paid more than their fair share of taxes through incomes and local industry,� Mr Dwyer said. “What hasn’t been happening is an equal share coming back to these locations in government expenditure on new facilities.

At some stage there needs to be payback time.�

Mount Isa’s population decreased in the period studied (ABS figures for 2013-2014) - dropping by 65 people to 22, 717. Its net migration for that period was negative 876.

Mount Isa’s backwards step was an obvious result of the decline in construction related to the mining sector, Mr Dwyer said.

The number of people coming

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Resident population figures for key regional cities in 2014: Townsville population – 192,038 – a 1.6 per cent increase on 2013 Net migration: negative 346

to live in the cities declined everywhere but Gladstone from 2013 to 2014. And only that city and Rockhampton were in the black in terms of people arriving versus people leaving.

But Mr Dwyer said that was likely to change for Rockhampton in the 2015 figures, considering the cutbacks in coal across central Queensland, while Gladstone would start to see the impact of LNG project construction activity winding down.

Mackay had the largest negative net migration for 2014 – minus 879, which Mr Dwyer described as the first large exodus of people from the area since the GFC (Global Financial Crisis).

Townsville suffered its first major exodus in 18 years, with public sector cutbacks playing a factor along with failing small business and a flow-on from the resource sector downturn.

While the bulk of people leaving Mackay appeared to be workers hit by the resource sector downturn, statistics showed that much of the flow

Toowoomba population – 161,970 – a 1.1 per cent increase Net migration: negative 247 Cairns population – 158, 985 – 1.3 per cent increase Net migration: negative 256 Mackay population – 123, 353 – 1.3 per cent increase Net migration: negative 879 Rockhampton population - 83, 439 – 1.2 per cent increase Net migration: 200 Gladstone population - 66, 097 – 3.5 per cent increase Net migration: 312 Mount Isa population - 22, 717 – 0.3 per cent decrease Net migration: negative 876 The seven cities have a combined population of about 808, 630 – or just under 17 per cent of Queensland’s total population.

from Cairns and Toowoomba was young people – probably leaving for better education and job opportunities, Mr Dwyer said.

The Regional Australia Institute – in a written response to QIA - said many of the communities covered in the study had comparatively diverse economies, so the tailing-off of the mining investment phase should not unilaterally mean the

demise of these regional centres. “But of course they will feel the impacts to some extent, as will all communities as they go through a period of transition,� the group said.

While a short-term outflow of population at the end of a construction phase was to be expected as crews moved on to other jobs, a prolonged trend over time would be an issue, the RAI said.

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4 NEWS

Queensland Industry Advocate | May 2015

The worker stand that delivered For AEU (Amalgamated Engineers Union) NQ district organiser Fred Thompson, the Mount Isa Mines dispute was a case of community versus the establishment.

James Cook Univeristy union organiser Peter WhalleyThompson told QIA of both his memories of the event and his father through his eyes as a child.

“The real guts of the issue was whether Mount Isa was a community or just an extension of Mount Isa Mines,” Mr Whalley-Thompson said.

“Mount Isa has always been the most amazing melting pot of peoples and cultures.

“There was every culture, every language and every kind of food but it was a badly resourced company town.”

In the midst of the lockouts and mass sackings that went with the dispute the community found itself in a state of poverty, Mr WhalleyThompson said.

“One of my experiences as a kid visiting Mount Isa was sitting out the back of a fish and chip shop that was run by the wife of one of the shop stewards in the underground mine,” Mr Whalley-Thompson said.

“I didn’t know at the time, she was feeding half the town and those that could pay would and others wouldn’t.

“In fact the union was raising money all throughout the country to try and feed these people because they were out of work for months and basically the company tried to starve them out.

“The people of Mount Isa just said, ‘no this is our town, we live here, and we want

“If you look at the Mount Isa dispute in retrospect, it makes the struggle of David and Goliath pale into insignificance.”

Fred Thompson former AEU organiser

to have more than a roster from the boss saying this is when you’ll turn up.’ And my Dad believed implicitly in

the struggle.” Mr Thompson’s father, Fred, was among a key group of union members leading the community through the struggle. He worked alongside the notorious Pat Mackie.

“Mackie was one of those people from the melting pot, a yank who just washed up there, larger than life, a lot of fun but a shrewd head and someone who wasn’t going to fall for the bullshit,” Mr WhalleyThompson said.

“Mackie got onto my dad as a source of advice and direction for strategy and as a way to plug into the wider union movement.

“My Dad wasn’t a giant, he wasn’t searching for glory; he never ran for politics, he never wanted to be the state secretary of the union. He truly felt this was a role he took where whatever came to him was part and parcel of the job, he was there to serve the cause.”

Peter Whalley-Thompson looks through old newspaper clippings from the time of the dispute.

Pat Mackie ... “... someone who wasn’t going to fall for the bullshit.”

Justice Hanger President Queensland Industrial Court.

50 years since the day of reckoning A string of injuries and fatalities, including the decapitation of one man, added fuel to the fiery Mount Isa Mines battle that erupted in 1964.

AEU (Amalgamated Engineers Union) NQ district organiser Fred Thompson described the day of this fatality in his personal notes.

“Capping off a year of intensive job action by mine workers the Commission decided to visit Mt Isa to inspect the mine on 9 September. We were inspecting the copper smelter in support of our claim for disability rates for abnormal work environment.

Justice Hanger was inspecting the smelters when he inhaled some of the fumes. He collapsed immediately, was rushed to hospital and recovered. His judgment refused our claim for abnormal disability rates.”

“Two days later a full compulsory conference under the chairmanship of Commissioner Harvey took place in the RSL Memorial Hall.

“The afternoon session had only been going for about an hour when I was contacted by one of my union members who advised that the AEU underground delegate had been killed. He had been carrying out safety maintenance on Level 14 on the lift ‘Flea’ shaft and had followed procedure of tagging and locking off the switching gear on each level while he carried out his repairs with his head and shoulders into the shaft. The safety tag had been ripped off and ‘The Flea’ was summoned down the shaft ... He was decapitated.”

5

Queensland Industry Advocate | May 2015

NEWS Ths old Gestetner printer, used in the production of illegal information to support strikers, was found in a Mount Isa shed.

Watershed 60s row delivered relative peace Half a century ago an industrial dispute changed life in the remote Queensland city of Mount Isa. The Mount Isa Mines (MIM) dispute exploded in August 1964, when the State Industrial Conciliation and Arbitration Commission rejected a proposal for a weekly pay rise of £4 in lieu of an increase to the bonuses.

In light of this decision, Australian Workers Union (AWU) members decided by a large majority vote that they would revert to wages work, instead of contract work.

That decision resulted in a loss of pay for workers but it also caused a considerable loss of production for the company.

Later that year the Queensland Premier Nicklin issued an order-in-council, requiring that MIM employees return to contract work and authorising the dismissal of those unwilling to comply.

Mount Isa Mines proceeded to fire more than 200 underground miners and locked out the rest.

Mount Isa Mayor Tony McGrady is one of the remaining Isa residents who witnessed the battle first hand.

He arrived into Mount Isa as a student of politics and industrial matters and found himself with a front row seat for a dispute that became nationally renowned.

“For myself and for many of the people in Mount Isa, it was

fascinating to watch. You have to remember going back 50 years it was a remote community.

People say it is remote now but back then we used to get Sunday’s paper on the Tuesday and we had no television,” Cr McGrady said.

“But on the serious side of things, I never, ever, ever want to see those days return.”

It’s a feeling that was shared by both Mount Isa Mines and the union and by June 1965 a large number of workers’ demands were met in the Mount Isa Mines Award.

In the wake of the dispute both sides vowed that history would never repeat itself, said Cr McGrady.

MIM assisted in the setting up of a credit union, health society, and built houses to sell to the employees. MIM and the union also set up a log of claims so that every two years they would renegotiate the award.

“Looking back there hasn’t been a major dispute since then,” “Mount Isa was really a leader in industrial peace and harmony and I would suggest that if we hadn’t had that dispute, we wouldn’t have the conditions we have today.”

Secret movement to inform Secret meetings and the illegal distribution of information in cloak–anddagger hideouts gave momentum to the Mount Isa Mines Dispute of 1964.

In January 1965 Premier Nicklin declared a state of emergency.

With that declaration, police were given the authority to raid homes without warrant in search of strike related materials.

Under the act, a gathering of more than three people was considered an illegal meeting and anybody with the means of making leaflets to prolong the dispute was in breach of the rules.

This didn’t seem to stop those who were embroiled in the battle and a number of underground tactics were devised in order to spread the union message.

One of the tools used to do this was the Gestetner printer which was used for the duplication of leaflets.

“This Gestetner machine was moved regularly so that when the coppers would do a raid looking for it, it would have been passed over the fence to someone else,” Mount Isa Mayor Tony McGrady said.

Last year an old Gestetner machine was found in a local shed.

It is now housed in the Mount Isa library.

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6 NEWS

Ethanol is back in the news after the State Government announced plans to ‘unlock the untapped potential’ of Queensland’s biofuels and biomanufacturing industries.

Canegrowers welcomed the announcement in hope it could point towards the government taking a serious look at introducing an ethanol mandate.

“Ethanol has certainly long been touted as another market for Australian sugar and this is an opportunity to take on learnings from countries around the world so Australia can set about creating a robust way to structure such a mandate,” Canegrowers acting chief executive officer Ron Mullins said.

State Energy Minister Mark Bailey said the Government planned to release a discussion paper on biofuels and would consult widely on the issue.

“As part of our plan to steer the state towards a sustainable energy future, it is intended to require the big oil companies to make available an ethanol blend in their fuel,” he said.

But Federal Member for Kennedy Bob Katter slammed the State Government for failing to promise any ethanol mandate.

“There needs to be a mandate for ethanol – the bowsers are owned and controlled

Queensland Industry Advocate | May 2015

by the oil companies, and they’re not going to willingly stand aside and share their profits with Australian farmers and Australian workers,” he said.

Unused capacity at United Petroleum’s Dalby ethanol plant, the Wilmar BioEthanol plant at Sarina and the Manildra Group’s plant in Nowra, NSW, would be enough to produce 10 per cent ethanol petrol tomorrow, Mr Katter said.

APN reports on the issue drew varied online comments including this from Harpmark – Beerwah: “This is the 21st century so why are we still using nineteenth century practices and products.

Oh that’s right, big money is involved and some haven’t had their fill of eating the poor yet.”

Interviewed on the ABC’s Queensland Country Hour, Wilmar BioEthanol executive general manager Garry Mulvay said the new bill must create a stable set of policies.

“I think the industry doesn’t need something that comes along and gets talked up and doesn’t get delivered,” he said.

Many motorists weighed into the debate online with comments on the merits of ethanol-blended fuels.

servos in the Brisbane metropolitan area,” Sneakey Pete commented.

About 10 per cent of Queensland petrol sales are already E10, according to the RACQ. “Previous governments have sought to introduce an ethanol mandate but we agree that it’s time for further discussion “Opinions differ widely on ethanol in fuels, lots of ‘experts’ out there. My experience with E10 - car ran worse, used more fuel,” Grumps commented on The Motor Report (TMR) site.

“Hopefully this also leads in an increase of United E85 in the state. My car runs better on it... A whole lot better, but it would be nice If I wasn’t stuck to the 6

on the issue,” RACQ executive manager public policy Michael Roth said.

He said the RACQ supported E10 being an option in Queensland but that it was critical for motorists to be able to choose their preferred fuel at the bowser.

Skytrans takes to the air Skytrans has returned to North Queensland’s skies after a rescue buyout involving aviation entrepreneur Peter Collings and NRL champion Johnathan Thurston.

Collings Airline Holdings, in which Thurston is a stakeholder, has resurrected permanent Skytrans services to multiple Cape York communities.

Skytrans owners Peter Collings and Johnathan Thurston.

Photo: Victoria Ciddor

The move sparked comments online – most welcoming – including this from Bamaga Baz of Seisia Beach on a News Limited site; “The Cape communities are incredibly disadvantaged due to the remoteness of there (sic) localities and the weather challenges…

These guys have not only made a tremendous effort towards recovering

airline services they have had to do this with a foreign owned airline turning up and taking the cream of the crop flights into Bamaga.”

Federal Member for Leichhardt Warren Entsch said news of the resurrected service would be a welcome relief for Cape York’s communities, for whom the passenger and freight services provided a much-needed lifeline.

“It’s great news that Skytrans will return to the skies and I’m sure that Peter and Johnathan will follow in the footsteps of Simon and Shelley Wild, who built a sterling reputation for community service,” Mr Entsch said.

Thurston has been given the role of overseeing the company’s community

portfolio.

Collings Airline Holdings – through its West Wing Aviation business - had previously stepped in as an emergency measure to service the Cape York region following the collapse of Skytrans in January, a failure sparked by the locally-based airline losing plum routes to Rex Airlines in a government tender.

From May, the revamped Skytrans is adding a brand new intra-Cape Dash-8 flight service incorporating Weipa and Horn Island to its schedule.

(Information at www. skytrans.com.au)

7

Queensland Industry Advocate | May 2015

STATE OF THE STATE

Resources area councils feeling the pinch

Vacancies peak Several years ago the mining and resources boom had investors smiling from ear to ear as they cashed in on an inflated property amd rental markets across the regions.

Strong demand meant that in some areas, wait-lists were established for those needing accommodation.

Post downturn, reports from across the state paint a bleak picture with hundreds of properties sitting vacant.

QIA checked in with some of the key mining and resources regions in Queensland to find out how the towns that were once almost unaff ordable for the average Joe were faring post-boom.

Peter Maguire CHRC Mayor

Central Highlands The Central Highlands is one of regions that has felt the drop in the property market according to Mayor Peter Maguire.

The results of a recent

Anne Baker

revaluation done through

Isaac Regional Council mayor

“Isaac is 100 per cent supported by coal mining industry and they have seen some massive downside in both rentals and property values,” he said.

“They have gone from very exorbitant marketplace with lots of investors buying properties at very high costs basically to capture the high returns but with the downturn in the mining sector those property values have dropped significantly as have the rental prices.

“There was a time five years ago when the only way to secure a rental price was to offer much more than the rental rate which inflated the market substantially.

There was actually a waitlist for accommodation.

“We have moved out of the investment cycle and we’re returning to a home-owner base.

That’s where we see the marketplace going in 2015 and 2016.

“From what was probably a free falling market we’re getting back to some state of normality mainly in the Mackay region and slowly in the Isaac region.”

the Department of Natural Resources and Mines showed

Isaac

that the unimproved capital

Isaac Regional Council Mayor Anne Baker said about four per cent of rental properties were currently sitting vacant.

“It makes sense that we’re seeing a decline in rental prices and sales given the major downturn we’ve seen in the mining industry,” Cr Baker said.

“Broadly, Moranbah and Dysart are now fetching less than half of what they were in 2012 and those communities in particular are feeling the softening of the economic climate.

“What we have got is an optimistic view of the future of our towns and our communities have now become affordable and they make excellent places for people to live.

“It’s readjusted our communities to a more normalised market.”

However, the ‘readjustment had taken its toll on rates arrears for the region, said Cr Baker.

“Currently eight per cent of the region’s ratepayers are in arrears and the majority of that are investors. We’re encouraging rate payers to take advantage of the early bird discounts,” she said.

“We do have the ability around flexible arrangements such as payment plans, so council certainly understands the softening of the market, we’re living it and breathing it every day as well.”

REIQ Mackay zone chairman Peter Mcfarlane echoed the words of Mayor Baker.

value in Blackwater had dropped by more than 60 per cent.

In Emerald the unimproved capital valuation is down by 24 per cent and in Capella it is down 37 per cent.

“It would be true to say there has been a downturn in the property market. Those decreases have certainly been felt across the region,” Cr Maguire said.

“There many numbers of vacancies in our council area and as I understand it at the moment there are over 400 properties available for rent.”

The vacant properties owned by investors make up part of $4.8m in outstanding rates arrears (3.56 per cent), Cr Maguire said.

“It was up to over $7m and that was referred to debt collection people and now we

Robert Loughan Maranoa Regional Council mayor

have it back down to a more manageable level.

“But as I say we encourage people who are struggling to contact the council to work out ways to get them through these tough times.”

Maranoa Maranoa Regional Council Mayor Robert Loughan said the effect of the downturn had been felt, but with minimal impact.

“We’ve definitely noticed a softening and certainly we’ve

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seen jobs cut from the primary companies, your Santos and your Origin and such, but not in big quantities,” Cr Loughan said.

“There’s a number of vacant houses in towns like Roma but there’s a sense of optimism here that we’re well placed to service the LNG project operational phases.

“Obviously, we have a lot of people in the drilling industry here and there’s still holes to be drilled.

“The other sectors of the town are still purring along quite nicely and to be honest the resource sector is too, it’s just back to a stage that it was three years ago.

“In other mining towns I think it’s a very different story. They’re in a world of pain up there and looking for alternative industry to fill the void.

“We’re not in a bad place, we’re very comfortable where we’re sitting.”

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Mayor Tony McGrady Mount Isa mayor

Mount Isa Mount Isa Mayor Tony McGrady said that the town had been fortunate enough to escape the major impacts on property prices and rental rates.

“Mount Isa has always been different in that people develop their own homes.

“It’s only recent years (the seventies) MIM developed houses and sold them to their employees,” he said.

“I have lived in Mount Isa for more than 50 years.

“I’ve seen house prices go down and then I’ve certainly seen them go up.

“Currently they’re down somewhat but in the next year or two I have no doubt they’ll begin to rise.

“There’re very few vacant houses and there’s been no major change here in terms of rates.”

t 07 3818 6966 w www.archimedes.net.au

8 NEWS

Queensland Industry Advocate | May 2015

Bundaberg Sugar plant upgrade Multimillion-dollar upgrade to lift capacity in southern region industry.

The cane bin tippler in

Bundaberg Sugar will invest about $6m upgrading Bingera mill over the next three years, hot on the heels of a $40m improvement program at Millaquin.

Four large evaporator vessels and a pan at Bingera will be replaced after this season’s crush, said Bundaberg Sugar general manager of operations David Pickering.

The company’s two Bundaberg region mills are currently undergoing a major maintenance and upgrade program to prepare for the 2015 season (from early June), at a cost of about $15 million. “We have recently completed a $40 million upgrade at Millaquin and we are now focusing on maintenance of remaining older plant at Millaquin and Bingera with plans to ramp up capital upgrades at a Bingera over the next three years,� Mr Pickering said.

Upgrades under way at Millaquin during the 2015 works program include converting the

Millaquin Mill.

large process cooling pumps from DC to larger AC drives, an extra vacuum pump, and converting a large pan to run on vapour instead of steam for better energy efficiency.

The Millaquin cooling pump and vacuum pump upgrade, costing about $500,000, will enable a higher crushing rate during the warmer months.

At Bingera mill, the company is installing a wire rope coupling to drive No. 1 mill and new controls for the 11kV alternator.

Bundaberg Sugar is also investing in new packing equipment for increased retail volume after winning a major contract with Coles. This includes a Rovema packaging machine and case packer with project value of $2.5 million.

Mr Pickering said Bundaberg Sugar worked in partnership with many local businesses to keep its two mills running including Kwiklift, Metal and Marine, Berendsen and Beasley’s fluid engineers, and smaller independent fitting, electrical

action at Bundaberg’s

and fabrication contractors.

The relationship has helped build local capacity in key areas, with industry strengths evident when the Bingera mill was extensively damaged by fire in April 2014 - requiring extensive co-operation to make it operational by July 21. “Five conveyors were destroyed as well as an 11kV transformer and electrical switch room,� Mr Pickering said. “A local switchboard manufacturer, MC Switchboards, built the switchboard. A local

HV (high voltage) specialist contractor as well as numerous engineering businesses including Bundaberg Walkers Engineers (our sister company) worked together with out-of-town conveyor specialist Britrac to get the mill operational in record time, surprising many. “We are fortunate to have access to some great fabrication and hydraulic contractors, but find it more difficult to find fitting and electrical personnel with suitable experience to meet all our needs.�

Sugar powering Wulguru Group Over the past 18 months the Wulguru Group has contributed to more than $15m of design and fabrication work for the sugar industry in Queensland.

“The new stack was 6.2m in diameter at its widest and was fabricated in sections up to 18m long in the Townsville workshop. These sections were then transported and assembled on site.�

The Wulguru Group is recognised within the industry as a leader in the design, fabrication and commissioning of sugar equipment and infrastructure.

The project required more than 20,000 man hours which were completed without injury.

The completion of a new 70m high boiler stack for the Wilmar Sugar Macknade Sugar Mill in the Burdekin over the last off-season was a particular highlight for the company, said general manager Wayne Landrigan.

The contract involved the demolition of the existing concrete stack and the construction and commissioning of a new stainless steel replacement prior to the commencement of the 2014 crushing season.

The completed boiler stack commissioned for Wilmar Sugar Macknade Sugar Mill, Burdekin.

WULGURU GROUP

“The compressed timeframe and the nature of the material meant that Wulguru had to carefully manage all aspects of this project,� Mr Landrigan said.

“That was a big reflection on how seriously we take our workplace health and safety,� Mr Landrigan said.

After 30 years of servicing the sugar industry, Wulguru hopes to become an even bigger player moving forward. “The sugar industry remains a significant part of Wulguru business particularly more so with mining down,� Mr Landrigan said. “We have provided men, gear and equipment to most mills in Australia at some point in time and there are significant projects coming up that we’re hoping to play a big part in.�

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9

Queensland Industry Advocate | May 2015

NEWS

Ageing drive assembly made easy!

1 High running and maintenance costs from existing inefficient gear unit.

A new pan, weighing more than 50 tonnes, is lifted into place at the Inkerman mill.

Multi-million dollar maintenance spend Wilmar Sugar’s in-house engineering team in the Burdekin region has completed its second multimillion-dollar pan fabrication project in two years as the company continues to invest heavily in improving mill reliability.

Wilmar is spending more than $50 million on maintenance and capital improvements across its eight Queensland mills in the lead-up to the 2015 crush, according to operations general manager Mike McLeod.

He said this was on par with spending over the past few years following the international agribusiness group’s purchase of former mill owner Sucrogen in 2010.

“Wilmar’s had a real focus on getting the reliability of the mills up and processing in the most efficient way,” Mr McLeod said.

The reliability rate or percentage of time running as opposed to downtime - across the eight mills during last year’s crush was in the mid to high 80s, he said “Our aim this year is to get the average across the mills up to 90 per cent – which is critical for the farmers. Once we start we run 24/7, and if you can shorten the crush season there are a lot of cost savings.”

A major initiative of the new owners has been to build the capacity of a central engineering services department and bring many major projects in-house.

The team completed a $2.8 million project

Mike McLeod Wilmar Sugar operations general manager

to design, construct and install two pans for the Pioneer mill last year, followed by this year’s $3 million pan replacement at Inkerman.

The large pans are used in the milling process to grow sugar crystals under vacuum.

Other major works for 2015 have included replacement of an Invicta mill evaporator ($4.3 million) and the overhaul of Proserpine boiler No. 1 ($3.5 million) Mr McLeod said building Wilmar Sugar’s engineering team allowed the company to keep experience and the IP (intellectual property)

attached to major works at the mills.

Another factor that had pushed the company in this direction several years ago had been the fact it was losing skills to the mining industry and being forced to pay mining industry prices for contract work.

“We’ve done costings, and we save money by doing it - not as much as we would have three years ago, but the mining industry is cyclical and when it comes back we’ll see some really big benefits in what we’re doing,” Mr McLeod said.

Mr McLeod said Wilmar Sugar still outsourced a significant proportion of work and it was important to maintain a strong engineering group of contractors.

“We can’t take too much in-house – we still want to be giving outside contractors work,” he said.

“We’re trying to get the right balance between internal and external.”

About 10 per cent of the work is being completed in-house at the moment.

Wilmar Sugar’s mills are located from Mackay to Ingham.

2 Conceptual model of a modern gear unit overlayed against the ageing drive unit. The output shaft dimensions and location are matched to suit.

3 Mounting dimensions, shaft size and location of the new gearmotor coupled with a manufactured drive base are matched to suit the ageing drive unit.

Major Wilmar Sugar projects for 2015 • Invicta evaporator replacement - $4.3m • Proserpine No. 1 boiler overhaul - $3.5m • Inkerman pan 8 replacement - $3m • Kalamia air heater replacement - $2.6m • Victoria No.10 boiler tubes overhaul - $1.6m • Proserpine feedwater head tank replacement - $1.6m • Manufacture of 145 new Herbert cane bins - $1.5m • Invicta turbines overhaul - $1.5m • Plane Creek air heater casing replacement - $1.4m • Victoria evaporator overhaul - $1.3m

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10 REMOTE LIVING

Queensland Industry Advocate | May 2015

Lifestyle starts at Dump your junk at the gym the mine gate Century’s Active Lifestyle Coach, Jared Naughton talks to QIA about healthy lifestyle on the mine site.

What is the biggest risk to health and fitness you have seen in the mining lifestyle?

Obesity, this isn’t just limited to the mining lifestyle though, approximately 60 per cent of Australia’s population are considered to be overweight/ obese, this percentage is said to be as high as 75 per cent on mine sites though.

It’s sometimes said that weight gain is common when people start working in mining. Would you agree (and why)?

Mining gets a bit of a bad rap here, yes it can be said that with its long hours, easy access to lots of food, wet messes and a number ofreasonably sedentary work positions, that the mining lifestyle can be conducive to weight gain.

However mining companies particularly over the last 10-15 years have been very proactive in combatting such problems with most mine site workers now having the means and the opportunity to access onsite personal trainers, site gyms, swimming pools, and a wide range of other sporting facilities and planned activities.

So with all these new measures in place it really is about individuals taking personal responsibility for their own health.

What is more important, eating properly or exercise?

Both equally. Being healthy and controlling your weight is about keeping your energy intake (eating) and your energy output (exercising) correctly balanced.

What would be your top three tips for mining employees to keep fit and healthy?

1) Eat healthy – Avoid over eating, eat balanced meals, follow the available Nutritious Life guides onsite.

2) Exercise – 30 mins of Moderate exercise 4-5 times per week, particularly if your job does not provide many opportunities to get up and move around during the day.

3) Get adequate rest.

What is the most rewarding thing about your job?

The job is its own reward really I remember thinking to myself when I first came to Century how lucky I was and what a great opportunity this was going to be and I’m still really enjoying it 10 years later.

How do you stay fit and healthy?

The requirements of the job do come with some unusual hours, so it really is a matter of doing what you can when you can.

“My number one tip is walk to Kingdom.

Winter is just around the corner and from site. Here that’s about and for many remote workers “At Cannington we have really a 3km walk each way and maybe this means an extra layer of fat good participation through steering clear from the bar every is appearing around the midour classes and gym usage. In now and then. section.

February about 19 per cent of “I’ve had guys losing 15 – 20 By now, new year’s resolutions people on site were utilising the kilos just by doing simple things are well and truly forgotten and facilities. like that.” the temptation to enjoy sneaky “On top of that we have the Diet was also a key contributor seconds at the site mess is just a swimming pool and community to weight gain on site, said Mr bit too much. style sports that people play.

Kingdom.

The latest data from the “I’d encourage Australian portion control. I Department of use the quarter, Health shows quarter, half which that 67 per cent is basically where of mine workers we have a quarter are overweight protein, quarter or obese – eight carbohydrates per cent higher and half of salads, than the national average. veggies and that In a separate type of thing,” he survey conducted said.

by Diabetes “Try and throw Queensland the salad on your plate state’s resources to fill yourself up. communities “Here on site we came out top of have a Nutritious the list for their Life menu offering appetite for junk Century metallurgists on the run - Catherine Martin, David Rantucci and eat most, eat food with mining Brian Cornish. moderate and hubs Central eat less options.

Highlands, Rockhampton, They’re all labeled.

Gladstone, Western Downs and We always Mount Isa securing spots in the encourage the guys top 11. to target the eat This year, the experts are most options. encouraging workers to step out “We also run the of the hibernation cave (the site Whole Plus Sum donga), get moving, and take a menu. The guys healthier bite at dinner time. can walk up to a Dallas Kingdom is an exbain-marie and use military man who now acts measured utensils as the active life coordinator to monitor their at BHP Billiton’s Cannington kilojoule intake for mine. the day.”

People weren’t always very forthcoming in seeking too Century excavator much help, said Mr Kingdom. operator Dean But battling the bulge on site Dechaufepie tests could be as simple as walking to his endurance on the shift each day and spending a Century football oval. little less time at the bar, said Mr

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11

Queensland Industry Advocate | May 2015

NEWS

End of life beckons new hope The future of one of Queensland’s last standing historical mining towns looks uncertain as a key operation approaches end of life.

Resolute Mining’s Mount Wright underground mine in Ravenswood is expected to close in June next year.

The company currently employs about 220 people plus another 65 contractors between the Mount Wright underground mine and Nolan’s mill in Ravenswood.

The majority of those employees would lose their jobs, said Resolute Mining operations manager Joel Ray. “Resolute moves its people between operations where possible but as Ravenswood is the company’s only operation in Australia, the majority of employees will necessarily be made redundant upon mine closure. There will be a few ongoing jobs associated with site rehabilitation,” he said.

The mine closure is sure to have a flow-on effect on what is a small community.

An impact on local businesses and student numbers at the local school could be expected, said Charters Towers Regional Council Mayor Frank Beveridge “If it does come to closure, I imagine in the six or 12 months prior to that they (Resolute) will come to us with some plans for the community on how we can work to help minimise the impacts, Cr Beveridge said “But you know Ravenswood has had a number of lives over the last 140 years where it has dried off and become like a ghost town but then mining has come back. But the cycles of course rely on the value of gold on the

world market.” As the closure date creeps up, Resolute is continuing to investigate ways of extending mine life along with other development opportunities in the area.

“The existing mine plan ends at the 525mRL (metres in Relative Elevation) but the company is reviewing options to go deeper,” Mr Ray said.

“Other than Mount Wright, the company is reviewing several projects which have the potential to extend the life of the Ravenswood operations.”

The most likely of those projects is a plan for cutbacks on the existing Nolans and Buck Reef open pits.

“The Nolans and Buck Reef cut backs have the potential to extend the operations for approximately two and four years respectively,” Mr Ray said.

Last year the company also completed a feasibility study on a cutback at the nearby Sarsfield mine which closed in 2009.

Although the Environmental Impact Statement (EIS) was approved, current gold prices prevented the project from being viable, said Mr Ray. “At current gold price, the

Resolute Mining Nolans plant with pit in background.

project does not meet the company’s financial hurdles.

A review of the project to investigate improving the financial metrics is planned to be conducted later this year,” he said.

Exploration in the region is also ongoing.

Mount Glenroy, located approximately 45km south-east of Ravenswood is one of several exploration projects that the company is currently working on.

A tough gold price isn’t the only challenge that the Mount Wright mine has faced over the years.

According to author of Angor to Zillmanton, stories of North Queensland’s deserted towns, Col Hooper the operation has been viewed as a tough site since it was originally found in the early 1870’s.

“It was found in the early days and they did find some gold but the ore itself was

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relatively early stage, but initial findings suggest that there are many similarities (rock type, geochemistry, geophysics) to the Mount Wright deposit.

Drilling to test for ‘blind’ mineralisation, (mineralisation that does not outcrop on the surface) is planned for mid 2015.

The Welcome project, near Mingela is another more advanced project with potential.

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“It is a rhyolite (sub-volcanic fine grained rock) intrusion system that covers several square kilometres,” said Resolute Mining district geologist – exploration Nick Lisowiec.

“Both the rhyolite and the surrounding rocks are brecciated (broken and re-cemented), which is a common mineralisation host in north Queensland (for example Mount Wright, Mount Leyshon and Kidston mines),” he said. The project is still at a

very complex,” Mr Hooper said.

“Down the track in the 1970s a man named Stan James and his wife Irene took over and then in the early 80s Carpentaria Exploration took up all the leases.

“They then developed the ore body at Mount Wright but it has a lot of copper in it.”

Mr Hooper was among the north Queensland workers who have had

first hand experience at the difficulties surrounding the Mount Wright mine operation. His first job there was as an engineer in 2006.

“The ore just has so much copper in it which makes it very difficult to extract the gold,” he said.

Ravenswood could well join an increasing number of ghost towns in Queensland, Mr Hooper said.

12 OUR MINING HERITAGE

Queensland Industry Advocate | May 2015

The Australian oil and gas industry’s shaky start More than 100 years ago a search for water pushed the small Queensland town of Roma into an unexpected boom and saw the birth of Australia’s oil and gas industries.

In 1900 the town began drilling a well named QG No.2 (QG No.1 had been unsuccessful) as a solution to water shortages in the region.

To everyone’s surprise, during the drilling process they struck natural gas.

At the time the town had no use for the gas and as such it was allowed to flow free to air through a vertical separator for the next five years.

By 1906 the Roma town council came up with a plan for the gas. It was decided it would be used to power street lighting.

The council borrowed £8000 to fund the project which included building a gasometer on Hospital Hill and laying

x

Peter Keegan Historian and researcher

pipe around the town.

The gas was turned on and the streets were lit - but only for 10 days before the gas ran out.

A number of factors contributed to the failure, said Roma-based historian and researcher Peter Keegan.

“It was probably because the

gas had diminished greatly having flown free to air for the last five years,” he said.

“Also it may have been that cutting the flow back into the gasometer allowed sediment to settle in the pipe.

“Suffice to say it cut off and was never fully recovered. So they were 8000 quid in debt with a heap of pipe in the ground and a bloody great gasometer and no use for it.”

But the initial find did indicate that there was gas under the ground and in 1905 a local syndicate formed Roma Mineral Oil Company to further explore.

This was just the beginning of a number of key events in the Roma region gas and oil history.

See our Surat Basin Operations feature on pages 24 to 28.

The Lander rig at Orallo.

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13

Queensland Industry Advocate | May 2015

OUR MINING HERITAGE

Roma Mineral Oil fired It was 1908 when an attempt to strike oil on Hospital Hill in Roma led to a fire that burned for close to six weeks.

A few years earlier in 1905 a local group of businessmen in Roma, including several aldermen of the Roma Town Council, considered that there was the possibility that oil might be under Hospital Hill and so The Roma Mineral Oil Company was founded.

The Queensland Government agreed to put in £2,500 on a pound for pound basis with the company for drilling a well for oil.

But it seems it was another project that was not destined to go to plan.

On November 3rd the gas caught fire when the wind carried it to the boiler fire.

Within four minutes the iron derrick had softened and the whole structure collapsed over the bore hole.

“Someone must have been asleep at the steering wheel that day,” Roma based historian and researcher Peter Keegan said.

“What they had was a massive fire on Hospital Hill that burnt for six weeks before it could be put out.”

US spy who tried to wrest control The year was 1924 when an undercover American geologist managed to weed his way onto an Australian oil drilling project on the outskirts of Roma with the intention of leaking information back to the United States.

The year prior, The Lander Oil Company had landed on the scene and had set up the first search for oil outside of the Roma exclusion zone at ‘Tiger Scrub’ Orallo (50 km north of the town).

Along with a new rotary rig,

An old postcard depicting the 1908 fire.

In an effort to make the best of a bad situation the people of Roma put on their opportunity hats and persuaded the railway department to run special trips into the region.

Visitors travelled to Roma to see the big fire and the disaster became a temporary tourist attraction.

The government eventually excluded all drilling by private concerns.

Lander Share Certificate.

The ‘heavies’ at Landers No1 well at Orallo. Back row - Tom Wilson and John Machado. Front Row - R.E Allen and Clarence Evans.

the Australian company also employed a number of skilled American diggers and an American geologist.

Diggers Clarence Evans and John Machado were employed as the heads of operations. A geologist named R.E. Allen was also brought in and was given the additional authority to countersign cheques with the bookkeeper.

Shortly after his recruitment, R.E Allen began to act strangely, said Roma based historian and researcher Peter Keegan.

“He had convinced everyone he was in charge of the rig.

Allen then started making very crook decisions in terms of spending money,” he said.

“Machado and Evans found it very odd and so they travelled to Sydney to complain to the head of the company.”

In the meantime a telegram addressed to Allen arrived in Orallo from the directors in Sydney.

The message congratulated Allen on his progress and pointed out that Machado and Evans were on probation and that Allen had the authority to get rid of them whenever he saw fit.

The original telegram was tracked to the post office in Sydney and it was found to be a fake that Allen had had a friend in Sydney write and send, said Mr Keegan.

“The directors searched Allen’s office and they found proof that he was reporting the progress to the standard oil company in America. He was a set up,” he said.

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14 INDUSTRY LEADERS

Queensland Industry Advocate | May 2015

Ms Hewson picked up the award for most exceptional woman in

Passion for Industry

Love of variety

Brendan Ostwald

Janette Hewson

Growing up across regional and remote parts of Queensland solidified Brendan Ostwald’s passion for industry and love for the outback.

So much so, that at the age of just 23 he decided to start his own business focusing on areas west of the Great Dividing Range.

Ostwald Bros was founded in 1990 and over the years has transformed from a one brother, one employee operation to a family business including three of Mr Ostwald’s brothers and his father and a workforce in excess of 800.

The company offers operational services in contracting, mining, construction materials, facilities and accommodation, transport and bulk haulage, and rural enterprise.

“I went to schools in Moranbah, Taroom,

Toowoomba, Dalby and finally boarding school in Brisbane for Years 11 and 12,” Mr Ostwald said.

“I was around mining and construction activity.

Moving in the different environments really reinforced for me the industry I wanted to work in.”

After Year 12 Mr Ostwald completed a diesel fitting apprenticeship and performed a number of operating and supervisory roles within industry.

Then it was time to ‘do it for himself ’, said Mr Ostwald.

“I wanted to create something that my brothers would like to join me in,” Mr Ostwald said.

Mr Ostwald now sits as the chief executive officer for the company and describes his leadership style as ‘inclusive and empowering’.

Queensland resources at this year’s annual resources awards.

“I don’t pretend to be the smartest person in the room. I like to help people see the sky and motivate their individual personal development and potential,” he said.

“I’m not a dictator. I’m more about wanting to learn. I think we’re a learning organisation. I’m a sponge, I just can’t take enough in.”

In his position Mr Ostwald has watched the industry grow and develop in Queensland.

The company was a key part of the Clermont coal mine project up until last year.

“We were involved in that from clearing the first tree in 2007 to a sevenyear continual on-site presence until just last year,” he said.

“I was also part of the ResourcesQ initiative ... I really enjoyed being involved in that.”

Janette Hewson began a career in law in 1995, but a taste of the mining and resources sector drove her to jump industries and never look back.

Twenty years on, and Ms Hewson is the Peabody Energy Australia, director, services, supply chain management.

Ms Hewson joined Peabody in 2007 and led internal legal and sustainable development teams before taking up her current role, which controls hundreds of millions of dollars’ worth of spending on services for the company’s operations.

Ms Hewson described the career change from legal to commercial as one of her proudest professional moments.

“I got the taste for mining and resources and cut my teeth as a young lawyer dealing with coal mining and power stations. I think that’s when I got hooked,” Ms Hewson said.

“I love the variety of the industry,” she said.” “There are so many different facets of developing a project and operating a project. You never do the same work.”

A good leader was someone who could respect the ideas of others, and clearly communicate with their team, she said.

For Ms Hewson, this centred on developing strong relationships.

“When you’re in a corporate role in

particular, you really have to develop relationships in order to influence outcome because it’s not like you have that line management approach to getting things done,” she said.

“Relationships really drive me and I encourage my team and the broader supply chain team to develop their own relationships.”

A love of change also means Ms Hewson has plans to continually reinvent herself throughout her career. She already has a keen interest in pursuing a position in operations.

“I still have a lot to learn so I’m keen to take on different roles to do that.

One thing I’m very interested in is an operations role. I’m not sure what that would look like for me but I’m keen to explore what opportunities I’d have to do that,” she said.

“What I’ve learned the hard way is you have to back yourself and make opportunities for yourself.

“It’s OK to change and you don’t have to expect the same job as you have been doing since you left school.”

Ms Hewson was recently recognised as the ‘most exceptional woman in Queensland resources’ at the 10th annual Resources Awards for Women.

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15

Queensland Industry Advocate | May 2015

LOCAL GOVERNMENT

Marcia’s industry legacy Two key infrastructure projects will be central to the recovery of Livingstone Shire in the wake of Cyclone Marcia.

The storm tore through the region taking with it homes, buildings and crops.

The immediate damage assessment for primary producers alone was $200m, said Livingstone Shire Mayor Bill Ludwig.

“It’s going to be a significant re-build of infrastructure and crops,” he said. “The missing dollars from tourism and farming industries was a big hit the region.”

“It will really bite when the dollars from the primary producers aren’t in the economy so we need other avenues to stimulate it.”

In response, the council is putting forward proposals to fast track two major projects on the Capricorn Coast.

At the centre of the Livingstone Shire Council recovery plan is a Category D partnership proposal to the State and Federal Government aimed at kick-starting the recovery process.

The proposal is built around plans to fast track two major

‘iconic’ projects on the Capricorn Coast that will aim to deliver immediate economic stimulus to help rebuild the region’s tourism, construction, small business and service industry sectors.

The council also hopes these projects will generate on-going long-term employment within the region and will facilitate private sector investment.

The first and major project component is a re-scoped roll out of stages four and five of the Yeppoon Foreshore and Tourist and Business Precinct Revitalisation Master Plan.

These stages will build on

the momentum of the soon to be commenced Stage 3 jointly funded by State and Local Government under the Royalties for Regions program.

It includes replacement and strengthening of the seawalls, the ‘undergrounding’ of power, reconfiguration of traffic flow and road design to better manage stormwater and stormtide inundation and relocation of council chambers to a more secure location away from the storm surge impact zone.

The second project is proposed for the southern end of the Capricorn Coast and involves

the completion of the final stages of the Emu Park CBD foreshore tourist and business precinct and the now under-construction Centenary of Anzac Precinct and Commemorative Headland Boardwalk Project.

“These book-end projects will kick start the construction industry and boost the economy post natural disaster,” Cr Ludwig said.

“We use the example of 1998 when Townsville was impacted by a major cyclone, state and federal funding along with local funding did The Strand foreshore redevelopment.”

Authority born from disasters Disaster expert Graeme Newton has overseen more than $14b. of disaster recovery work throughout Queensland since 2011.

That includes two of the biggest disasters in recent times, Cyclone Yasi and the Brisbane floods.

In January 2011 south-east Queensland experienced extreme flash flooding in Toowoomba and the Lockyer Valley and major river flooding in the Brisbane and Bremer Rivers.

In excess of 20 rivers and streams had the highest floods on record and an estimated 200,000 people were affected.

On February 3 2011 Cyclone Yasi hit Mission Beach on the east coast of Queensland at category five intensity and was recorded as one of the most powerful cyclones to have affected Queensland since records commenced.

It was these disasters that prompted the establishment of the Queensland Reconstruction Authority.

Mr Newton was appointed as the head of the organisation and led the team for four years before joining Deloitte as the head of crisis management.

Mr Newton and his QRA team were recognised for their work through the

planning institute awards and Mr Newton was named as the ‘pioneering champion’ of the project.

“In the 2011 floods and cyclones there was still some residual damage from 2009 and 2010 so we were given that as a task as well,” Mr Newton said.

“Then in 2012 there were more floods in in south-west Queensland; 2013 there was Cyclone Oswald and 2014 there was more but not to the same extent. All of that added up to a total of about $14b.”

The flooding was some of the highest on record which meant you couldn’t always rely on history he said.

Graeme Newton chats with first chairman of the Queensland Reconstruction Authority and commander of first Brigade based in Brisbane Major General Mick Slater.

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16 BUILDING MINING COMMUNITIES

Queensland Industry Advocate | May 2015

SUPPORTED BY BHP BILLITON CANNINGTON

Great Barrier Reef Foundation director of operation Theresa Fyffe and Orica’s executive global head projects and technology, Ron Douglas, celebrate the partnership.

Orica’s citizen-scientists Dr Rolf Gomes checks Moranbah State High School Principal Scott Whybird’s blood pressure during a recent Heart of Australia launch event to announce the expansion in services.

Mobile heart care clinics More regional communities will have specialist cardiac care at their doorstep as Australia’s largest custom-built mobile clinic expands its Queensland services.

The Heart of Australia program, a partnership with Arrow Energy, will travel to Moranbah, Emerald, Charters Towers, Barcaldine and Hughenden twice a month to provide cardiac and respiratory services from a mobile clinic.

Project founder and cardiologist Dr Rolf Gomes said the program extended city levels of care to people who might otherwise miss out.

“People living in rural or remote areas are 44 per cent more likely to die from heart disease than their city-dwelling counterparts,” Dr Gomes said.

“In partnership with Arrow Energy, we launched the Heart of Australia program in south-western Queensland last year and we have already seen hundreds of patients.

“The Heart of Australia program means people no longer need to drive long distances to

THE FACTS The clinic, towed by a Kenworth prime mover, has two consulting rooms, new ultrasound and cardiac stress testing equipment.

Patients need a GP referral before undergoing a Heart of Australia consultation and specialist testing if required.

Clinic consultations are a normal fee-for-service, in line with metropolitan rates.

Heart of Australia is an extension of Arrow’s ongoing community investment. Since 2011, Arrow has invested more than $12 million in community projects across Queensland.

Heart of Australia has also received funding and in-kind support from the Australian and Queensland governments, Bayer Australia, St Andrew’s War Memorial Hospital, IOR Petroleum, Kenworth, Telstra Country Wide, Brown and Hurley, GT Insurance and Rex.

city centres, for what might be a 20-minute medical consultation.

“It’s been humbling to have actually saved lives in our first months on the road by identifying patients who, without knowing it themselves, presented with health issues at critical levels.”

Heart of Australia’s 25m-long clinic is equipped with stateof-the-art specialist diagnostic

equipment and technology, staffed by a team of cardiologists and respiratory specialists on a rotating roster.

Since its October 2014 launch, it has delivered a fortnightly service to Dalby, Roma, Charleville, St George and Goondiwindi.

A timetable and further information is available at www.heartofaustralia.com.

Wandoan Showgrounds The Wandoan Showgrounds has received more than $350,000 in upgrades as part of a staged revitalisation project supported by QGC and local community bodies.

Western Downs Regional Council community facilities, sport and recreation spokeswoman Councillor Charlene Hall said the much-needed Stage 1 upgrade had significantly improved the

reliability and safety of the electrical and water infrastructure.

The work was funded with $307,000 from the QGC Sustainable Communities program, $15,000 from the Wandoan Show Society, $20,000 from the Wandoan Showground Improvement Committee and $11,500 from Western Downs Regional Council.

Orica employees will help undertake “citizen-science” research projects under a new three-year partnership with the Great Barrier Reef Foundation (GBRF).

Orica’s support includes sponsorship and employee participation in ReefBlitz – an event GBRF launched last year which allows the community to get hands-on by collecting data and discovering plants and animals living in and around the

Great Barrier Reef.

“We have been involved with the foundation since 2012, but through Orica’s Community Partnerships Program we are now able to commit to a longer and more comprehensive agreement,” Orica executive global head for projects and technology Ron Douglas said.

Orica has more than 700 employees in Queensland supporting customers in regional Queensland.

Anglo’s sport boost Middlemount Youth Support and the Junior Motocross Club were among 10 Middlemount community initiatives selected recently in the first round of Anglo American’s social investment and donation program.

Anglo American community officer Kiri Blanch said the Capcoal and Foxleigh mine sites were continuing to support Middlemount community groups, sporting clubs and events through a fund of $85,500.

“We are very proud to be supporting such worthy recipients including Middlemount Youth Support, which provides vital services to young people in our community, and the Junior Motocross Club for fuel to keep their equipment running,” Ms Blanch said.

“We are also delighted to help support the Middlemount Community Sports Association, which will use the donation to purchase much needed equipment for their gymnastics team.”

A number of local events also benefited from the investment program including the Middlemount Race Day and the Anglo American Heart of the Coalfields Camp Draft.

Driving competent youth Australia Pacific LNG has teamed up with PCYC Queensland to bring a new road safety initiative to young drivers throughout the Darling Downs and Surat Basin region.

Four state-of-the-art driving simulators will be permanently stationed at PCYC centres across the region to help build confidence and competency behind the wheel.

Origin social program specialist Nick Te Tana said it was identified early in the construction phase of the multibillion-dollar APLNG project that road safety was a critical issue for the local community.

“We’ve taken steps to mitigate the increased traffic created by the build of our project, and now that we’re coming to the end of that phase we want to leave a positive legacy that continues to improve road safety into the future,” Mr Te Tana said.

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mining communities Cannington

17

Queensland Industry Advocate | May 2015

BETWEEN SHIFTS

Dan Devlin (AMMA), Katrina deLange (AMMA), Les Dunn (Conveyor Innovations International) and Geoff Timmerman (AMMA) at the Bowen Basin Mining Club - Moranbah.

Anne Baker (Issac Regional Council), Melissa Westcott (Big On Shoes); Lynda Pollock (Anglo American), Jan Anfrus and Ros Trapps (both DSDIP) at Moranbah Traders Association Business Awards.

Michael Hubbard (MJH Advisory) with Lauren Hope and Emma Rackley (both Round Square) at Toowoomba and Surat Basin Enterprise Geoffrey Cann Event held at Wellcamp airport.

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Jad Vodopija, Joy Parker and Mike Henry (all BHP Billiton) at Queensland’s 10th annual Resources Awards for Women Brisbane.

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18 EQUIPMENT REVIEW

Queensland Industry Advocate | May 2015

Improving on its own specs Bosch Blue’s new heavy-duty two-speed impact drill promises to tackle the toughest jobs, including dry diamond drilling.

The GSB 162-2 RE Professional impact drill is 15 per cent faster compared to its predecessor and boasts a highperformance 1500-watt motor.

The German-designed gearbox provides an impact rate of up to 43,350bpm in second gear and 12,750bpm in first.

Optimising tradies’ work efficiency, the GSB 162-2

RE Professional features a robust 16mm keyed chuck for secure hold of accessories, with the chuck activating and deactivating the locking without requiring second handling.

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M Series feller buncher.

M-Series JD here Hitachi Construction Machinery has released John Deere’s new M-Series tracked harvesters and tracked feller bunchers to the Australian market.

The new 800M and 900M machines feature enhancements developed after input from customer advocate groups, resulting in more productive and reliable machines, the distributor says.

The new series features a variety of common boom sets already proven on the 900K-Series. These K2 booms are specifically designed to increase the number of attachment choices to suit a broader range of applications.

This boom design has been developed with thicker plates, and larger pins and bushings to increase strength in the new models.

Other features include high torque swing – standard on harvesters, optional on feller bunchers – to provide increased power and boost productivity.

With the 800M-Series the customer has the choice of dedicated track drive, while the new Rapid Cycle System (RCS) option combines automated felling-head arm cycling with simple boom control — reducing operator fatigue while increasing efficiency and productivity.

After 29 years in finance if someone would have told me a few years ago that a seven per cent interest rate was way too high I would have wondered which planet they came from. But that is the reality in today’s market.

We are now seeing on a daily basis motor vehicles and equipment financed at interest rates between 4.5 per cent Finlease Australia broker and 5.5 per cent.

Phil Horton These rates are not the concoction of dealer based “sponsored” headline rates being supported by internal discounting on a “recommended retail” machine price, they are main stream rates.

But what does all of this really mean in dollar terms?

A $50,000 car financed in 2012 on a 5 year

by Nil residual term at seven per cent was $985 p/m, today at five per cent it is $940 p/m which is $2,500 less over the entire loan and on a fleet of 10 cars it adds up.

A $500,000 machine financed in 2012 on a five-year by nil term at 7% was $9850 p/m, now at 4.75% it is $9350 p/m which is a whopping $30,000 less over the entire loan.

All things being equal these are savings

that should drop straight to the business owner’s bottom line. If you can save $10,000 a year in finance costs and your usual profit margin is 5% that is equal to adding another $200,000 in turnover to achieve the same outcome.

Today’s ease of finance On top of the low rate regime, there has never been a better time or easier process with your equipment finance. We now live in the world where many loans can be secured without going through the process of lengthy finance submissions.

The simple fact of being in business for two years, with a clean credit history and being a property owner will secure an immediate approval for vehicles or most equipment up to the value of $150,000 per individual item.

Even more remarkably, this same criteria will also secure approvals on multiple assets up to $500,000 each, where they are replacing or upgrading other machines coming to the end of their existing finance including the allowance for a 125% increase in monthly payments.

These new style of fast track Facilities are provided at the historically low rates and are ideal for business owners who wish to spread their debt across a broader range of financiers without the hassle of submitting multiple complex finance applications.

The world is too complex today, so making things easy for your equipment finance needs is one step that can make your business life just that little easier.

20 EDUCATION

Queensland Industry Advocate | May 2015

Project results boarding school myths busted An Australian research project that tracked 2,000 students over a two-year period has dispelled some myths about boarding school.

The project titled Boarding School, Academic Motivation and Engagement and Psychological Wellbeing: A Large-Scale Investigation, followed the progress of about 600 boarding students and 1,400 day school students throughout 2010 and 2011.

The main finding was that on most outcomes there was a general parity on all key performance indicators between day and boarding school students, said UNSW professor educational psychology, Andrew Martin.

“That was a very important finding for two reasons, firstly when parents make the decision to send their child to boarding school there is often a fear that the student may not have the same access to supports as they would at home,” he said.

The research showed this was not the case, said Professor Martin.

“The second reason is that over the years boarding school has attracted a negative opinion and criticism. Certainly boarding schools of old did not have a good reputation for child development,” he said.

Data was collected from students belonging to the 12 different schools through self reported surveys.

The standard of today’s boarding facilities is far superior to what previous generations could expect.

Andrew Martin UNSW professor educational psychology

The results were then compared in order to measure the levels of student academic achievement and student personal wellbeing outcomes.

A key finding was that boarders scored higher than day students on positive motivation.

This meant they were more interested and enthusiastic in their studies, said Professor Martin.

“We also found they scored higher on academic buoyancy - so their ability to deal with academic challenges and setbacks over the course of the day and school week,” he said.

Boarders also scored higher on personal best goals meaning the students were more inclined to set goals and implement self competition and self improvement.

“Absenteeism was also lower, but that goes without saying because the only place they can really go is to the classroom,” Professor Martin said.

Boarders also showed a slightly higher sense of psychological well-being including their sense of meaning and purpose, life satisfaction and participation in

extra curricular activity.

The students also reported having better relationships with their parents than their day student counterparts did.

BMA helps promote trade training Regional Queensland students gained the tools to be future tradies in a recent “Make it now in Trades” (MINT) challenge.

The week-long challenge, a collaboration of BHP Billiton Mitsubishi Alliance (BMA) and the Queensland Minerals and Energy Academy (QMEA), involved 20 students who had expressed interest in a trade career.

The students worked with supervisors and fourth-year apprentices from BMA Saraji Mine in central Queensland to design and manufacture a motorised pushbike to industry standards as they completed four days of intensive trade training.

The students will also complete a

Certificate II in Resources and Infrastructure Work Preparation in a new online course developed by CQ University Australia.

“Challenges like this enhance the employability and life skills of the future workforce – an extremely worthwhile opportunity,” Dysart Senior High School Trade Training Centre manager Susann Morrow said.

Teachers from Moranbah, Dysart and Blackwater high schools, and Emerald Marist College also participated in the camp to bring them up to date with latest industry practice.

21

Queensland Industry Advocate | May 2015

EDUCATION

Boarding school more ‘Olivier’ and less ‘Oliver’ Gone are the days when naughty kids were sent away to boarding school or boarding students stayed awake in creaky old dormitories to plot their escape back home.

Australian Boarding School Association (ABSA) board member Rosalyn Lindsay has been involved with boarding education for 35 years.

The early days were pretty grim, Ms Lindsay said.

“Things were very controlled, the staff were really not that well trained and the accommodation was pretty bad,” she said.

“It used to be awful huge dormitories, terrible bathrooms and awful food.

“And of course there wasn’t the access to communication that there is now. The phone lines were often dodgy and it was really quite hard for the kids.”

Things have changed substantially since then though, Ms Lindsay said. Smaller room sizes, improved bathrooms and

quality catering were the new norm.

Improved communication technology was another key contributor to the happiness and success of students within the boarding school education system, Ms Lindsay said.

“Kids come to school with many devices now. One student I was told about brought seven devices to school. Another student was able to instantly Facetime with her parents who live in Ethiopia without any lag time,” she said.

The increased communication was important in preventing student isolation, Ms Lindsay said. But, the technology did have its downside.

“On the flip side if something happens at school, kids are on the phone to mum before the boarding school has chance to make contact,” she said.

“The instant connection sometimes means that the students haven’t calmed down

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before relaying the story to their parents. Then, before you know it mum is calling the school in distress, worried about the student’s well-being.”

On the whole, the changes over the years were all pretty positive, Ms Lindsay said.

“Boarding is becoming more flexible, more accessible and less isolated for students and parents,” she said.

For more information visit www.boarding.org.au

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Students and parents can expect a greater range of facilities from schools.

120 years of boarding Boarding is in St Margaret’s blood, with 2015 marking 120 years since the School first commenced operations. The very first three St Margaret’s students were boarders who enrolled in November 1894, in preparation for the school’s 1895 opening.

Today, around 170 boarders from Years 7 to 12 are at the heart of a diverse community – they come from all parts of Queensland, NSW, Northern Territory, the Pacific nations and beyond. The day girls embrace the boarders and open up their homes to them, while the boarders delight in reciprocating, with sleepovers in the boarding house, and holiday visits back to the farm or across the ocean.

The St Margaret’s boarding house is in the heart of the school’s Ascot campus – a safe and tranquil environment surrounded by tree-lined streets, well-kept gardens and residences, and views that extend across the river and cityscape to the distant ranges.

Specialist boarding staff guide, nurture and encourage the girls through their education, providing unwavering support as they grow and mature into young women. Supervised study with qualified teachers provides boarders with a high level of academic support, while a dedicated activities coordinator devises a schedule of engaging, age appropriate activities for the girls, which offer both enjoyment and opportunities for personal growth.

With Brisbane the home to many universities of choice, being a St Margaret’s boarder allows the girls to lay important foundations in preparation for tertiary study, including the confidence to navigate the city, and friends with whom to continue the journey.

The St Margaret’s boarding experience brings with it enduring connections, as the girls live, learn and grow together.

22 EDUCATION

Queensland Industry Advocate | May 2015

Schools secured as sevens step up The introduction of Grade 7 students to the secondary setting saw Townsville Catholic Education schools implement a capital spending program of $21.3m across six campuses.

In line with other states, this year, all Grade 7 students officially moved out of the primary environment and on to high school campuses.

The move was one of the most significant developments in Queensland education over recent years, said Townsville Catholic Education director of leadership and school development Ross Horner.

One of the most common concerns for a number of rural and remote families was sending their children to boarding school for an additional year, he said.

“We worked closely with our boarding schools to ensure the appropriate pastoral care programs were in place to take into account the younger age of boarders entering the college environment.”

Townsville Catholic Education was among the education offices across Queensland that had to build and adapt in preparation for the change.

Construction of new buildings and facilities was completed in all Catholic secondary colleges to make room for the extra students.

In tandem with the physical preparations, teachers and staff were involved in planning pastoral care programs to ensure

the smooth transition of this new group of students into the secondary setting.

Two years of planning ensured a seamless start to the 2015 school year, said Mr Horner.

“As an education system, there were many months of planning to ensure we were ready to go, with new buildings, facilities, additional trained staff and school-based programs in place in our secondary colleges,” he said.

“Over the past two years, we communicated regularly with schools, staff and school communities about the changes … with key developments such as enrolment processes and what families could expect as secondary schools received two cohorts of new students – years

seven and eight”.

The impact on boarding schools and their students would be minimal, said Australian Boarding Schools Associaiton executive director Richard Stokes.

“All of our Queensland Boarding Schools will have added facilities and developed programs to cope with the extra, and younger, students,” he said.

“The students entering Year 7 will be a little older than in the past, and the Australian Curriculum is designed for students in Year 7 to be a part of High School.

“As the Year 7 students are of about the same age as Year 8s were a few years ago (due to the introduction of Prep) it won’t be harder for the students.”

EdSquad is hitting classrooms throughout regional Queensland.

Photo: Victoria Nikolova

Queensland Ballet en pointe in the regions

Columba Catholic Colllege, Charters Towers.

Photo: Andrew Rankin

Queensland Ballet’s EdSquad is taking a twirl through regional schools throughout May as the production Coppelia tours the state.

The dance workshops give students a ‘hands-on’ experience with people who understand the curriculum and the ballet while providing an extra avenue to connect with the visiting production, according to Queensland Ballet education and engagement director Felicity Mandile .

A range of State, Catholic and independent schools were involved in the free sessions as well as private dance studios, she said.

The present tour includes visits to Maryborough, Toowoomba, Gladstone, Rockhampton, Mackay, Townsville, Cairns and the Gold Coast.

Ms Mandile said some of the EdSquad events were still to be locked in, however she expected a similar take-up to last year – when the program reached 1500 children across about 60 schools.

23

Queensland Industry Advocate | May 2015

EDUCATION

Shop for careers and keep life’s options open High school students have been urged to start thinking about their career preferences early and research their options well before choosing their senior subjects.

Many students were confused about what path to take and felt a lot of pressure over choosing the ‘right’ subjects, said Cairnsbased career practitioner Vanine Gilmore, from Worklife Directions.

“I see many students in Year 11 and 12 particularly who do not have a clear picture on which way to go with a career path,” Ms Gilmour said.

“At best they may have identified three or four career options that are totally different from each other, so when it comes to choosing the most suitable subjects to take at school, they do get confused.”

Students throughout Queensland complete a Senior Education and Training (SET)

plan in Year 10 to map out their senior studies, and have the opportunity to review it in Years 11 and 12 In order to best meet the need of their students and community, each school develops its own SET planning process including implementation times and processes for communicating with parents.

It was extremely important to start thinking about a career early- but she urged students not to panic regarding the decisions they faced, Ms Gilmore said.

“This is an exciting time in your life,” she said. “Take your time in choosing a career.

“Initially, don’t just choose one career, choose a few. Research them and then start working through them with the help of parents, teachers, a professional career practitioner and people in the industry, to find out more about each.

School students are advised to research their career and tertiary education preferences well.

Photo: courtesy of the University of Queensland.

“Then get some work experience in each to help narrow the field. Try to choose subjects that are general, covering a wide range of careers, rather than too specific to a particular career. This will give you more scope and time to change direction if you need to.”

A University of Queensland

spokeswoman agreed that it was important that Year 10 students were making informed decisions when choosing the courses they would study in Years 11 and 12.

For this reason, the university regularly presented to groups of Year 10 students in advance of SET planning and published a Year 10 guide, UQ office of

prospective students and student equity director Marg Fairman said.

But Ms Fairman said students should not become too worried if they changed their mind or did not get the score in Year 12 they were hoping for.

“There are always alternative pathways into programs of choice – for example, by upgrading to a dual or more competitive qualification on successful completion of first year (at university),” she said.

The university’s advice to high school students, she said, was to: • Think about what you would like to do – for example: help the environment, help others, be creative, make and build things, explain things to others.

• Consider what you are good at – e.g. science, numbers, technology, pictures, words, being creative, sports etc.

• Consider the various career possibilities that arise from these strengths.

• In selecting what to study in Years 11 and 12, choose subjects that provide maximum flexibility by way of career options.

UQ’s guide for Year 10 students is available at http://www.uq.edu. au/schools/publications/ Year10StudentGuide2014.pdf

24 SURAT BASIN OPERATIONS

Queensland Industry Advocate | May 2015

New Hope’s expansion plans New Hope is a miner on the march, snapping up a raft of Surat Basin thermal coal tenements recently to create a project package with a resource of more than one billion tonnes.

While the group still has an eye on further coal acquisition opportunities, its immediate priority is on gaining approval for the Stage 3 development of the New Acland mine, northwest of Oakey on the Darling Downs.

“The new government in Queensland is currently reviewing the ’approval processes’ of the next stage of the Acland development as per their election promise. We have not been given a timeframe,” New Hope Group chief operating officer Bruce Denney said.

That development would provide a $530 million injection into the south-east Queensland economy annually and a boost of $12 billion to the local, state and national economies over the life of the mine, Mr Denney said.

New Hope late last year acquired Cockatoo Coal’s stake in the Taroom, Collingwood and Woori thermal coal deposits for $25 million and in February also agreed to acquire Mitsui’s 49 per cent interest in the projects on similar terms.

Mr Denney described the acquisition as a long-term strategic investment in largetonnage, low-ash open-cut thermal coal.

In combination with New Hope’s Elimatta project, the North Surat package contains total resources of more than one billion tonnes in the Wandoan area.

Mr Denney said their development timeframe was

likely to be more than five years away.

“We have always adopted a long-term view on acquisitions and will continue to do so,” he said.

“It would be fair to say that, at the moment, our focus is on either adding additional near-term coal production capacity, or complementing our existing portfolio of longer-term development projects.”

New Hope had been very well managed said resource analyst Gavin Wendt, the founder of MineLife,.

“Whereas other companies have had their ups and downs in the sector, New Hope has performed very strongly…and they have also been very astute in terms of their growth ambition,” Mr Wendt said.

“Not only have they identified high-quality growth opportunities, but they haven’t overpaid for them - they’ve taken advantage of market weakness, poor market sentiment

Leon Richardson overlooks the New Acland operation.

to make those acquisitions.”

Mr Denney pointed to a range of factors that had left New Hope well placed to make such strategic acquisitions while other companies were shedding

Photo: Nadine Shaw

assets, including significant cash reserves and lack of debt.

And he said the company’s diversification of earnings, low cost of production and strong financial position meant it was

well placed continue to weather current market conditions New Hope had implemented further efficiencies at its New Acland and West Moreton operations, he said.

Surat Basin business optimistic after rough going Business confidence levels in the Surat Basin remain positive for the coming few years in spite of tougher working conditions.

The wider western regions of Chinchilla, Roma and Dalby have been feeling the pinch over the last six months according to the March 2015 Business Confidence Survey commissioned by Toowoomba and Surat Basin Enterprise (TSBE) .

In contrast, business expectations over the next six months remain strong with the construction sector expected to make a significant resurgence.

The outlook for businesses in the next three years however was by far the biggest winner, with businesses from all industries right across the region registering positive expectations for the medium term.

TSBE chief executive officer Shane Charles said the results of the survey should revive a sense of optimism in the region.

“We all know that times have been tough recently with slowing down of the oil and gas industry and our local businesses are feeling it,” Mr Charles said.

“However, there is also plenty to be

excited about, which the results of this survey clearly echo.

“Particularly in terms of the opportunities that the region is now being presented through the development of major infrastructure, such as Wellcamp Airport and the Toowoomba Second Range Crossing, and the prospects this brings to a number of industries including agriculture.”

Three hundred and eighty-nine businesses from across the Toowoomba and Surat Basin region participated in the survey which was the first of its kind.

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25

Queensland Industry Advocate | May 2015

SURAT BASIN OPERATIONS

Wells and roads contracts awarded

The number of non-resident workers in the Western Downs grew by 354 per cent between 2011 and 2014.

SB workforce projections The Western Downs will be the largest nonresident population hub in the Surat Basin by 2021 according to a new report.

The Surat Basin Population Report, 2014 shows the Western Downs will also continue to account for the majority of resource industry activity.

The number of non-resident workers on-shift in the Western Downs grew by 7,100 (or 354 per cent) between 2011 and 2014 largely due to the FIFO/DIDO construction workforces of the APLNG and QCLNG projects.

With construction of pipelines and surface infrastructure either completed or substantially advanced by the end of 2014 the level of activity associated with the CSG industry in Western Downs is expected to contract from this year onward.

As a result, the non-resident population of Western Downs is expected to stabilise at around 3,650 between 2016 and 2019 before declining to 2,450 persons in 2021.

In addition to ongoing resource industry operations in the area, these projections take into consideration the non-resident construction workforces of the APLNG, LNG and QCLNG projects and the Kogan Creek Solar Boost Project.

The Maranoa By comparison, in Maranoa the non-resident

population is expected to drop from a peak of 5,210 to 1,020 persons in 2021, while the same in Toowoomba’s is expected to remain stable at around 180.

These forecasts are based on data covering existing resource sector operations in the Basin, plus projects that have passed final investment decision (FID).

The population report forecasts a slightly higher non-resident population when factoring in the additional impacts of projects that have had an Environmental Impact Statement (EIS) approved but are yet to reach FID. These estimates largely reflect the impacts of Arrow Energy’s proposed Surat Gas Project and Surat to Gladstone Pipeline Project, as well as the Braemar 3 Power Station and New Acland Coal Mine Stage 3 Project.

In a third scenario that includes consideration of projects that have yet to finalise an EIS process, such as the Santos GLNG Gas Field Development Project, the report estimates that the number of non-resident workers on-shift in the Surat Basin would decline to 5,470 persons by 2021.

None of the report’s projections include consideration of proposed coal mining projects in Western Downs, due to ongoing uncertainty around FID for the Surat Basin Rail project.

Four regional Queensland businesses have won a further $277 million in QGC civil work as the construction phase of the Queensland Curtis LNG project closes.

QGC is to extend by three years the contracts of Western Downs businesses Mike Jones Earthmoving of Wandoan and Ostwald Brothers of Dalby; Amcor Excavations of Moura; and Corbet’s Timber Haulage of Gympie, following a competitive tender process.

Each contractor will have two crews and an average of 24 employees to undertake the construction and rehabilitation of well sites and road construction and maintenance.

QGC managing director Mitch Ingram said the tender was the result of detailed planning for the shift in focus from project to operations.

“The initial construction phase of the Queensland Curtis LNG project is nearing completion,”

Mr Ingram said.

“As a result, the scope of works required for civil construction has been declining over the past two years. For example, the number of wells being developed each month has progressively fallen from 75 in 2013 and 50 in 2014 to an average of 25 this year.

“By consolidating the civil construction work with four contractors, we can provide more consistent and substantial work opportunities for these businesses.”

A total of nine incumbent companies were invited to participate in the private tender.

QGC will assist the unsuccessful businesses as they transition to the end of their current contracts in mid-2015.

They will be offered support through QGC’s partnership with the Chamber of Commerce and Industry Queensland and local chambers to help them plan for their business.

Wastewater upgrade Work has kicked off on a $9 million upgrade of the Pittsworth Wastewater Treatment Plant, south-west of Toowoomba.

Toowoomba Regional Council has allocated $56 million for water and wastewater capital works projects this financial year, with the Pittsworth project replacing a facility built in the 1970s.

TRC waste portfolio spokesperson Cr Nancy Sommerfield said contractors UGL Engineering had almost completed design work and would soon construct a modern plant for Pittsworth, to be brought online by mid-2016.

“It will also involve a number of local sub-contractors in the construction phase so will provide employment opportunities for the Pittsworth community,” she said.

26 SURAT BASIN OPERATIONS

Queensland Industry Advocate | May 2015

Toowoomba’s stock rises

A 12-month growth spurt in Toowoomba’s median house price is catching the eyes of investors from Queensland and interstate.

The last year saw an eight per cent jump in median house price to $351,868. This contributes to the total recorded five-year growth of 18.5 per cent.

More than 95 per cent of properties on the market in the past 12 months sold with an average time of just 63 days.

REIQ Zone chairman Toowoomba and Darling Downs, David Snow said that lower interest rates, regional growth and the general liveability of the area contributed to the interest.

“I think 2014 showed that there was considerable interest in Toowoomba from

investors,” Mr Snow said.

“Toowoomba has always seemed to be the more conservative market. It doesn’t have the high highs or the low lows that occur in speculative markets like the coast or the major cities.

“With that background and the very good combination of outstanding education, medical private facilities and proximity to the coast of Brisbane, I think Toowoomba on a number of fronts is a preferred place to invest.”

Rental income was also holding firm, Mr Snow said.

Median rental income for the year was recorded at $320 per week.

“And they’re not expected to alter.

You would expect a gross return of about

four or five and half per cent depending on additional costs associated with it and the facilities within the building itself,” he said.

“It’s a bit of both (a buyer’s and seller’s market) at the moment. In recent times there’ve been an extraordinary number of higher price homes on the market and they have been selling which indicates a level of confidence throughout the market,” Mr Snow said.

Cranley and Glenvale were among the suburbs with strong potential, said Mr Snow.

“Toowoomba has the facilities and amenity of a major regional city. That’s culturally, sporting wise, and business wise we’re well and truly catered for. But it

still has that sense of community that you find in a country town,” he said.

“It has a lot of things going for it and clearly there are people who have done their sums and they’re investing significantly in Toowoomba.”

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27

Queensland Industry Advocate | May 2015

SURAT BASIN OPERATIONS

A Wellcamp education The Brisbane West Wellcamp airport has only been up and running for about six months but the wheels are already spinning on plans for further development.

The first flight went out in November last year and now the airport sees about 5000 passengers pass through its doors each day.

Passenger numbers for this calendar year are set to reach 100,000 and expectations are that number will more than double in the following 12 months.

The airport has opened up a rare opportunity for business workers from all different fields and industry to commute between Toowoomba and Sydney on daily basis.

There are two return flights to Sydney each day with the first departing Toowoomba at 5:20am and the last returning to Toowoomba at 6:15pm.

“If you walk around the terminal in a morning you can see it’s very much a business demographic,” airport general manager, Phil Gregory said.

“It’s really across the board.

Toowoomba has an extremely balanced economy. If you look at it, it has a strong agricultural economy, strong mining, strong health, education and finance.”

The next thing on the ‘todo’ list is a dedicated freight hub for produce export from the region.

“There is a big demand and a real desire for a purpose built freight hub to be established,” Mr Gregory said.

“Freight is often a bit of an afterthought at airports.

As a clean sheet of paper at Wellcamp, we believe we can develop a purpose built freight hub that will be very efficient.

“Right now there’s product

Chinchilla Aerodrome is set to get a $4m airstrip rehabilitation.

Regional airports remain viable

Wellcamp airport general manager, Phil Gregory.

being driven past Wellcamp to other airports. We’re talking fresh flowers, beef, goats and a range of other agricultural products.”

There’s also an opportunity in the education sector, Mr Gregory said.

“We have a joint venture with the Australian Airline Academy and USQ. They are running a Bachelor Aviation and the flight training component is undertaken by the airline academy who is now based here,” he said.

“We see a real opportunity to grow that into a dedicated aviation centre of excellence here.

“We have about 17 students here at the moment and we’re

Photo: Jarrayd Apelt

getting really good feedback and they’re confident it could become real, significant business.

“In the next 12 months we’ll at least double student numbers and in the future we’d like to see up to 100 students here.”

The expansion of facilities would include extra classrooms, dedicated hangars and perhaps a dedicated maintenance area.

“It’s not a matter of if, it’s a matter of when and I think the when is next year,” Mr Gregory said.

“This is just the start of really big things to come so watch this space.”

Airport development in the Surat Basin is moving ahead despite a drop in traffic.

Throughout the first 12 months of operation Miles airport saw 110,000 passengers travel through its doors and on its busiest days up to 26 flights took off and touched down on the landing strip.

The airport was built and funded by Origin Energy to support its FIFO workforce.

More than a year later, and passengers have diminished to about 60 per cent.

This was to be expected as the industry transitioned from construction to production phase,Western Downs Regional Council Mayor Ray Brown said.

Despite the drop in numbers, the viability of the Miles airport remained strong, said Mayor Brown.

Plans are under way to construct a permanent terminal building and car park capable of supporting up to 60,000 passengers each year.

“Miles airport is currently operating with a temporary terminal building and car park but more permanent facilities will be built within the next year or two,” he said.

“Who knows passenger numbers might go to 100,000 again but in the long term we’re saying that in order to support the gas industry the airport will be designed to support 40,000 – 60,000 passengers per year.”

Meanwhile, plans are in train at the nearby Chinchilla airport for a $4m airstrip rehabilitation project.

The work aims to give the airstrip a 10-year life and accommodate an increasing number of charter flights into the region.

There is also the potential of larger aircrafts using the strip into the future.

The airport is currently a base for a number of different aviation operations including QGC charter flights, local agricultural crop spraying and the Royal Flying Doctor Service.

The airport had the potential to be much more of a hub for industry moving forward, Cr Brown said.

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28 SURAT BASIN OPERATIONS

Queensland Industry Advocate | May 2015

Investor push in Toowoomba A new wave of development is looming for Toowoomba as the city capitalises on its advantages as a transport and logistics hub.

Projects including an $80m meat processing plant and three service stations are among the developments recently proposed for the Toowoomba Enterprise Hub. Toowoomba Regional Council hopes to add impetus to the city’s growth through the Toowoomba Transport and Logistics Symposium planned for August.

Mayor Paul Antonio said three major factors were coming together to enhance Toowoomba’s position as a major transport and logistics hub the opening of Brisbane West Wellcamp Airport, the coming construction of the Toowoomba Second Range Crossing and the anticipated Melbourne to Brisbane Inland Rail project.

The range bypass project will increase the efficiency of road transport through the Toowoomba region – which is the gateway for about 50 per cent of the product exported from the Port of Brisbane.

The new airport, with its potential to offer direct freight services overseas, also brought a wealth of opportunity, Cr Antonio said.

“Add to that the fact that we are becoming increasingly confident that the Inland Rail line from Melbourne to Brisbane will have a major intermodal hub in Toowoomba,” Cr Antonio said.

“When you think that those three projects are going to come together to give us this opportunity, it’s very logical for us to have a transport and

Paul Antonio Toowoomba mayor

logistics hub in Toowoomba where there is a lot happening, a lot of opportunity for people to invest - and they’re doing it.”

The forum in August would bring international speakers to help advise investors in the region how to best move forward, he said.

Cr Antonio said the Toowoomba Enterprise Hub, in the same area as the new airport, offered a large area of land for industrial development.

“Just in the last little while we’ve had the approval of a brand new service station out there and food outlet, and that complements an already approved service station over the road, and there is potentially a third one,” he said. ”… This land is quite cheap compared with other land in south-east Queensland that’s available for transport depots – it is a fraction of the price of Brisbane and Ipswich.

“That is why we are looking towards logistics as being a big thing that will also drive investment in this area.”

The council expected an application to start work on the InterLinkSQ intermodal freight and logistics hub in the near future, while other plans for the area included a new abattoir, milk factory and cold store facilities, Cr Antonio said.

“This is a big opportunity coming our way – not only in logistics but in value adding,” he said.

Toowoomba and Surat Basin Enterprise general manager – agribusiness and export Jo Sheppard agreed there was a huge opportunity to move towards value-added products in the food and agriculture sector.

The work that Brisbane West Wellcamp Airport and TSBE were doing around developing direct airfreight capability in particular had huge potential, she said.

While the airport owners were working to achieve international licensing, she said TSBE was

“It’s a time when we are seeing a definite move away from just commodity products in the food and ag sector to real value-adding opportunities.” - Jo Sheppard Toowoomba and Surat Basin Enterprise general manager – agribusiness and export.

talking with a number of exporters who were freighting product such as beef into China and other areas through places such as Sydney and who were facing increasing demand.

The rise of e-commerce in China and Australia’s good reputation in a climate where people were very concerned about food safety was helping drive demand for more such exports, she said.

“In my view it’s really a time when we are seeing a definite move away from just commodity products in the food and ag sector to real value-adding opportunities,” Ms Sheppard said.

Food Leaders Australia, an initiative to be launched in Toowoomba in May, promises to help better position the region as a leading food producing and processing hub.

Inland rail gathers steam Seven of Australia’s largest land transport companies have joined forces to call on the federal government to make the Inland Rail project a reality.

The companies wrote an open letter to Prime Minister Tony Abbott recently, calling upon the Government to build on its $300 million commitment to the project by allocating further funds in coming months to see the job finished.

The companies – Asciano, Aurizon, Genesee

& Wyoming Australia, Linfox, Qube, SCT Logistics and Toll Group – are the largest transporters of freight on rail and road in Australia.

The 1730km Inland Rail route would run between Melbourne and Brisbane via centralwest NSW and Toowoomba.

The first tenders have been advertised for the improvement of some existing line as part of the project.

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