Queensland Industry Advocate

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COVER IMAGE: Mine engineer Glenn Reitsema stands by a mobile crusher processing ore mined during the Dugald River trial stoping program.

September 2015

3 Slow going for geologists

20

The mining cycle stays true to its nature and leaves once-

Roads

desired geoscientists to pick up the crumbs in the wake of the

FEATURING 10 Our Mining Heritage 13 GEA Conference Feature

economic cold snap.

16 Between Shifts

4 Isaac Plains mine restarts

17 Industry Leaders

Stanmore Coal has picked up the mothballed Moranbah

18 Building Mining Communities

operation for $1 from Vale and Sumitomo Corporation to compliment its neighbouring lease.

19 Living Remotely

5 New era for Osborne The contractor for the open-cut mine has been named and blasting started at Chinova’s north-west Queensland operation as underground mining winds up.

Queensland Industry Advocate

20 Roads

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

25 Training

Sales: Jennifer Smith 0410 163 094

9 Urquhart HMS advances Minerals sands are hot and scandium’s not as Metallica Minerals shifts piorities and funding to its Cape York project.

Client Services: Marion Lago 0414 225 621

28 Local Government

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

Advertising booking deadline for the Nov 2015 edition: Wed 21 Oct 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 | September 2015

Dugald River buoyed by shortage Zinc’s currency is on the rise with a limited life for major international suppliers

MMG has given

A strong outlook for zinc prices has powered MMG’s decision to bring the Dugald River project, 65km north-west of Cloncurry, into production in 2018 at an expected cost of $1 billion. The company’s recent approval of an updated development plan for the underground zinc operation should see works commence next year on the remaining infrastructure required. “This decision reflects our confidence in zinc at a time of shrinking global supply,” MMG chief executive officer Andrew Michelmore said. “Dugald River remains one of the world’s highest grade undeveloped zinc deposits. Under the updated plan, Dugald River will come online at around a time when significant global zinc supply will disappear through mine closures.” The updated plan for Dugald River includes a mine production rate of 1.5Mtpa, construction of a concentrator and annual production of about 160,000 tonnes of zinc in zinc concentrate, plus by-products, over an estimated 28-year mine life. This places Dugald River within the world’s top 10 zinc mines when operational. The expected remaining cost of the project to first shipment of concentrate is about $1 billion ($US750 million) plus interest.

development plan

Townsville Enterprise general manager economic development Tracey Lines said investments of this magnitude were catalytic for the development of Northern Australia and critical to the growth and prosperity of the region. The decision is also a boost for Altona Mining’s Little Eva copper operation, just 9km away, following a Chinese construction group’s agreement to sink $280 million into bringing that project to production. Altona managing director, Dr Alistair Cowden said the Dugald-Little Eva area was becoming a significant new base metal production hub. “The Dugald River project infrastructure will provide a real value uplift for Altona and demonstrates the strategic value of the Cloncurry project coming close on the heels of the framework agreement with Sichuan Railway Investment Group,” he said. A company spokesman said in late August that MMG was still finalising its requirements for the Dugald River project before going to the market for expressions of interest from contractors. No details on expected workforce numbers have been released and the spokesman said opportunities for redeployment of MMG Century staff were

the green light to an updated for Dugald River zinc mine, with first production from a planned on-site concentrator to be delivered in 2018. Photo: James Knowler

very limited due to the gap in timing and different mining methods. Mining has finished at MMG’s Century zinc mine in the lower Gulf, although ore processing is continuing this quarter, and the site’s workforce

2017 start for King Vol zinc Atherton Resources aims to begin concentrate production in early 2017 from its King Vol zinc project, 250km west of Cairns. The company, formerly Mungana Goldmines, began diamond drilling in June to increase the indicated mineral resources – now sitting above a million tonnes - as part of the project’s feasibility study. Atherton Resources managing director Tony James said development at King Vol would mean great opportunities for local suppliers, as the majority of resources and provisions could be sourced from North Queensland. “The plan for Atherton is to complete the project feasibility study by March 2016 so that the project can be approved by the board and finance obtained,” he said. “On approval this then starts a nine-month build program to get the mine and processing plant working.” It was estimated that up to 250 people would be involved in the project during the construction phase, he said. The underground operation is expected to cost $37.4 million to start up and deliver 35,900 tonnes of zinc, 840 tonnes of copper, 910 tonnes of lead and 185,000 ounces of silver in concentrate annually after ramp-up.

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The project would take advantage of a largely completed base metal concentrator at Atherton Resources’ Mungana site. King Vol is part of Atherton Resources’ Chillagoe project, covering of 607sq km of land containing zinc-dominated base metal resources at King Vol and Red Cap, and gold-copper resources at Red Dome and Mungana. The company launched its North Queensland zinc strategy in July 2014 after the announcement of its acquisition of the Chillagoe base metal assets from Kagara (in liquidation). Mr James said Atherton Resources could see tremendous opportunity in zinc mining in the area and that King Vol should come online during a high in the zinc price cycle. The closure of significant zinc producing mines in the world this year -Century in Australia and Lisheen in Ireland - was expected to drive the prices up, he said. “There are limited zinc companies listed on the ASX and in the predicted zinc cycle the well-advanced new zinc operations like Atherton at Chillagoe are in a great position to take full advantage of what is expected to be a rebounding market,” Mr James said. “This is highlighted by the obvious corporate interest in Atherton Resources in recent months.”

is not expected to exceed 150 employees by the start of 2016. MMG senior mine geologist Alex Nichol told a recent Australasian Institute of Mining and Metallurgy conference in Cloncurry that trial stoping at Dugald River over the past

12 months had proved up the preferred mining method. Mr Nichol described the ore body as having a large surface area to volume ratio with a strike ranging over 2km to a depth of 1200m and a width of 1-35m.

National Onsite Training takes out skills award Queensland training professionals Anthony Barber, from National Onsite Training, and Rodney Woods, from Down Under Training in Mackay, have been honoured with a key Resources Industry Skills Association award for 2015. The men were named as winner and runner-up respectively in the outstanding RTO trainer category of this year’s RISA Skilling Innovation Awards, after being recommended by clients Incitec Pivot and Peabody Energy. The awards were presented at the RISA Conference and Awards Dinner in Townsville recently. The University of Newcastle’s Working Well: Mental Health and Mining program won the category for outstanding skilling initiative. TAFE New England, Health and Safety Advisory Services and the Thiess John Holland Dragados joint venture topped the outstanding site/company skilling initiative category. Glencore’s Oaky Creek operation was named runner-up in both of those categories for work to upskill the site emergency response team and for developing a site-based pathway for coal handling and prep workers to obtain RII30413 Certificate III in resource processing. • More training stories - pages 25-27

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3

Queensland Industry Advocate | September 2015

NEWS

Geos on the downside of the resource rollercoaster Orphaned specialists struggle in a market which once competed for their skills Employers are taking advantage of the geoscience jobs crisis, offering below-award conditions to those struggling to find work, a senior geologist says. Australian Institute of Geoscientists (AIG) federal councillor and secretary Adrian Diaz was commenting as new figures show employment in mineral exploration crashed in the first half of 2015. The AIG data also showed geoscientists were facing the lowest employment levels since that group began its Australian Geoscientist Employment surveys in mid-2009. Mr Diaz, a Brisbane resident, urged other Queensland geologists seeking work to be aware of minimum employment

conditions, as set out in the Fairwork Australia: Professional Employees Award 2010. His warnings are sparked by his own experiences since being made redundant from a wellpaid consultant geologist role in 2013 with Xstract Mining Consultants. Mr Diaz said on one occasion he was offered a below-award rate by a small consultancy. “On another occasion I was verbally offered the minimum rate in accordance to the Professional Employees Award 2010 but with the condition for me to pay my travel expenses as well as accommodation and meals, which is also against the award,” he said. “When I tried to negotiate an

Australian Institute of Geoscientists federal councillor and secretary Adrian Diaz lost his full-time job with a consultancy in 2013.

appropriate rate and working conditions with the potential employers, they said that geologists are no longer in the situation to dictate the condition of employment.” Mr Diaz is volunteering his time with the AIG while seeking employment, holding positions as a federal councillor, secretary and Queensland branch committee member. A geologist with a master’s degree and post-graduate certificate, Mr Diaz has been in the mining industry for more than 10 years. Since his 2013 redundancy he said he had been lucky to find short contracts with the Queensland Government and two more consultancies. But Mr Diaz said he had been unemployed since February and was now looking for work in any field. AIG president Wayne Splisbury said geoscientists were aware of the cyclic nature of the industry, but the current downturn was without precedent in the memories of Australian geoscience professionals. He warned that the loss of employment opportunities in minerals exploration signalled other problems including an erosion of the project pipeline. Figures from AIG’s latest Australian Geoscientist Employment survey show the combined unemployment and underemployment rate amongst professional geoscientists in Australia at June 2015 was 35.1 per cent. (More than 15 per cent of these were unemployed).

Mark Adams during his farewell week at MMG’s Century mine.

Drilling imperative Former general manager of MMG’s Queensland operations Mark Adams has raised concerns about the lack of significant new operations in the pipeline in the North West as Century mine winds down. Mr Adams is now working as chief operating officer for Konkola Copper Mines in Zambia, the country where he started his professional career 35 years ago as a crew boss. He said north-west Queensland had provided him with many unparalleled career-building opportunities at Mount Isa Mines, Cannington and Century But the outlook for mining in the region was, like much of Australia, less optimistic than it had been in the past, Mr Adams said. The next five years would see more of the North West Minerals Province’s major operations approach the end of their lives, he said. He pointed to a dearth of significant new resource projects on the horizon and, with the time from first exploration success to production being in the region of seven to 10 years, said this would inevitably impact on the region’s economy. “The other point worth making is that the cost of energy and infrastructure in north-west Queensland is now prohibitive, and that will be a major consideration when any resource company is considering the viability of a future operation,” Mr Adams said. “On a positive note, the North West Minerals Province remains a highly prospective part of the world, so I am confident that there could be a brighter future if all parties work together in a collaborative manner as was done during the Carpentaria Mineral Province study which facilitated the construction of some seven mines in less than a decade.” Mr Adams offered thanks to the team at MMG’s local operations for their engagement and personal investment in a number of transformations during his time with the company.

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4 NEWS

Queensland Industry Advocate | September 2015

Moranbah mine gets a new life Move hailed by local industry as a positive signal for the coal sector. Stanmore Coal has issued a tender for contract mining and processing plant operations at its newly acquired Isaac Plains Mine, 7km east of Moranbah. The company plans to restart the mothballed site in the first half of 2016 after purchasing it from Vale and Sumitomo Corporation for a peppercorn payment of $1. Key to Stanmore’s interest in Isaac Plains was the company’s acquisition in July of the neighbouring Wotonga deposit, with the potential to run the operations in tandem at reduced costs. Chief financial officer Andrew Roach said in late August the tender process still had some way to go, with one principal contractor to be selected for mining, CHPP operations and all statutory positions. Further supply opportunities would be largely dependent on the appointed contractor, he said Resource Industry Network chairman Tony Caruso said the purchase and planned restart of Isaac Plains mine was a positive signal for the coal sector. “For each of these operations that get back up and running there is a significant multiplier effect across the regions that support those mines as well – it’s not just about the jobs that get created at the mine site, it is four times that in the supply chain to keep them operating,” he said. Stanmore Coal managing director Nick Jorss described the acquisition of Isaac Plains as a transformational step for Stanmore. “Isaac Plains provides us with all of the necessary infrastructure and sufficient minable coal to commence mining in 2016, while the neighbouring Wotonga deposit is anticipated to provide us with a significant mine life extension at a materially lower

The Callide Unit B1 HP turbine rotor was the focus of recent shutdown work.

Nick Jorss Stanmore Coal managing director

cost of production,” he said. Mr Jorss said the transaction represented the culmination of nine months of comprehensive due diligence and negotiations by the Stanmore team. “We have carefully assessed over 40 growth opportunities in coal over the past two years before selecting Isaac Plains and Wotonga as the right fit for our strategy and risk appetite,” he said. Taurus Mining Finance Fund came on board as a financing partner for the Isaac Plains acquisition, which includes a Bucyrus 1370W dragline, a 500-tonnes-per-hour coal handling and preparation plant, rail loop, loading facility and mine infrastructure area. It also brings a number of contractual commitments for Stanmore and the $32 million rehabilitation obligation associated with the mine. Placed under care and maintenance in September 2014, Isaac Plains produced about 2.8Mtpa of export coal at its peak.

More power to overhaul work CS Energy plans to spend $71.4 million on overhaul projects at its power stations across Queensland this financial year. CS Energy chief executive officer Martin Moore said this budgeted expenditure reflected the company’s commitment to the safe, reliable and efficient operation of its power stations. “This financial year, there will be four overhauls across our generation portfolio to keep our power stations operating in peak condition into the future,” he said. The first of the maintenance shutdowns was a mini-overhaul completed recently on generating Unit B1 at the coal-fired Callide Power Station near Biloela, bringing more than 130 extra workers on site. Mitsubishi Hitachi Power Systems was the major contractor for the $12.1 million overhaul, with additional contractors such as Central Queensland Inspection Services (CQIS) used for specialised work. “The Callide Unit B1 overhaul included inspections and tests on a range of plant such as the high pressure turbine generator, air heaters, boiler

and control system,” Mr Moore said. “We’re now focussing on an overhaul of Unit W2 at our pumped storage hydro Wivenhoe Power Station that is under way until mid-October, followed by an overhaul of Unit B2 at Callide later that month. “Our biggest overhaul for this financial year is a major overhaul of Kogan Creek Power Station in April 2016, which involves the replacement of the high pressure turbine and will employ up to 480 additional workers at site.” Mitsubishi Hitachi Power Systems is the major contractor for the Wivenhoe shutdown and Siemens has been named as one of two principal contractors for the Kogan Creek work. Mr Moore said every overhaul represented an injection into the local economies surrounding CS Energy’s power stations. “Our site workforces grow by the hundreds during each overhaul, providing short-term employment opportunities for people with the skills and expertise required to undertake the maintenance and upgrades to the power station equipment,” he said.

Cranes being readied to lift a compressor skid from its transport trailer at the Daandine site.

Arrow plant steps on the gas Three new compressors are being added to Arrow’s Daandine central gas processing facility in the Surat Basin as part of a major plant and gasfields expansion project to increase local capacity. The compressor packages, each weighing about 250 tonnes,

arrived on site from late June to mid-August. Custom-made in Kerui, China, they include the compressors and engine skids, coolers, pipeworks, exhausts, and control panels. An Arrow spokeswoman said the three new compressors were

being added to seven existing units at the Daandine central gas processing facility. The Daandine field, 30km west of Dalby, has been producing CSG for Arrow’s domestic gas business since 2006.


5

Queensland Industry Advocate | September 2015

NEWS

One door closes, another opens at Osborne Heavy equipment arrives for $80m transition project at copper-gold site The shift to open-pit operations at Chinova Resources’ Osborne mine is under way after Brisbanebased BIM Metals won the new mining contract, with Orionstone Mackay supplying equipment and maintenance services. Chinova Resources general manager operations Neal Valk said the first batch of heavy equipment had arrived on site and started work in the last week of August. It included three Roc-Drill drills preparing the open-pit area for blasting and a fleet of six Cat 777 haul trucks. They would be joined in early October by a Hitachi EX2500 excavator and five Cat 785 trucks, Mr Valk said. BIM Metals owner and managing director Brendan James said the company philosophy was to utilise local people where possible. The new Osborne open-cut mining workforce of about 50

is largely being sourced from Mount Isa and Cloncurry, with a bus in-bus out arrangement planned. Mr James, former chief executive officer of CopperChem, said BIM Metals would target opportunities where it could assist to optimise the efficiency of mining projects and operations. “This is our specialised skill set, where we can add value to companies in the current mining environment in Australia,” he said. Mr Valk said the open-pit operation would produce sufficient copper-gold ore for 20 months’ worth of processing schedule, producing an estimated 90,000 tonnes of copper-gold concentrate throughout 2016 and 2017. The project will assist site rehabilitation by providing selected overburden material to cover the two main tailings storage facilities.

Work is under way on the new open-cut operation at Chinova Resources’ Osborne mine.

Underground mining at the copper-gold site, about 150km south of Cloncurry, is due to finish at the end of September. Chinova Resources chief executive officer Brent Jiang said with strong support from

shareholder Donghui Group the company was investing about $80 million in the openpit operation, even though at this time there was a high degree of uncertainty regarding base metal prices.

“The move to open cut means that we will continue to support a combined workforce of about 180 people from February 2016 when processing resumes on the Osborne site,” Dr Jiang said.


6 NEWS

Queensland Industry Advocate | September 2015

The Broadmeadow mine team assists a mock casualty during the EK Healy Cup competition.

An eye for national titles Yakka skink.

Adani’s plans for a $16 billion coal mine have been hogging the headlines nationwide in a skirmish that started with a skink and a snake. It has since turned into a federal battle over the scope of the Environmental Protection and Biodiversity Act. Approval for the Carmichael Mine was set aside in early August by the Federal Court after it found Environment Minister Greg Hunt had not properly considered advice about the yakka skink and the ornamental snake, which are classed as vulnerable species. Mackay Conservation Group co-ordinator Ellen Roberts said the scale and impacts of the northern Galilee Basin mine meant it would be the most damaging in Australian history. “‘It is astonishing and deeply troubling that it has taken a legal case by a small community group to bring the approval process under proper public scrutiny, and expose Minister Hunt’s dereliction of duty in fast-tracking the mine,” she said. But Queensland Resources Council chief executive Michael Roche reckoned the court rebuff over a technicality had probably done the industry a favour, highlighting a well-funded and well-coordinated campaign being executed by anti-coal activists. “This issue has rammed home to the man and woman in the street the real implications for the economy and jobs of the activists’ wrecking tactics,” he said. Prime Minister Tony Abbott expressed frustration saying: “If we get to the stage where the rules are such that projects like this can be endlessly frustrated, that’s

dangerous for our country and it’s tragic for the wider world.” Attorney-General George Brandis described the case as “vigilante litigation” and told the senate that provisions in the Environmental Protection and Biodiversity Act were too widely drawn. “Anyone, regardless of whether they have a material or relevant interest in a project, has a capacity to approach the court to seek an order to stop it,” he said. The Federal Government has since outlined its intention curtail green court action against the mining industry by repealing Section 487.2 of the Act. Minerals Council of Australia chief executive Brendan Pearson warned that future investment in the sector would be at risk if projects continued to be subject to interminable delays. A spokesman for GetUp, which helped fund the antiCarmichael court action, slammed the mining industry’s “self-righteous indignation” over legal challenges. “The hysteria from the mining industry, an industry that has way too much influence over our politicians, is both completely ridiculous and deeply damaging to people’s rights, our democracy, the rest of the economy and of course the environment,” senior campaigner Sam Regester said. The Australian reported on August 22-23 that the Carmichael project was likely to be locked up in litigation until 2017. Adani is in the fifth year of development and approvals for the mine and has warned that the need to finalise these approvals and timelines is critical.

The Broadmeadow mine rescue team has taken top spot at this year’s EK Healy Cup competition. The Queensland champions will be joined by placegetters Oaky No. 1, Moranbah North and Kestrel to take on interstate rivals at the national competition on October 22. Chief assessor Ray Smith, from the Queensland Mines Rescue Service, said Broadmeadow would be one to keep an eye on at the Australian Mines Rescue Underground Competition, to be held at Newstan Colliery, Newcastle. “They finished second last year at the national

competition and showed at EK Healy they were well ahead of other Queensland teams,” he said. “They’re the team to watch – but don’t discount the rest of them because everybody steps up when it comes to the Australian titles.” The 2015 EK Healy Cup competition was held at Glencore’s Oaky No. 1 mine, between Middlemount and Tieri, in August. Luke Addis from Broadmeadow earned the Matt Best Trophy for best captain, the second time he has won that title. And Dallas Dorney from North Goonyella continued his recordbreaking run in the theory

category – taking the Chief Inspector’s Trophy for a fifth time. The host mine set up a mini-build longwall for a surface fire-fighting scenario using CABA (compressed air breathing apparatus). Other tests included a multiple-casualty exercise where one person suffered heart attack conditions. The underground exercise required teams to inflate a stopping to create an airlock for the irrespirable zone, erect timber roof supports, deal with an underground equipment fire and locate missing people.

Bowen Basin geos’ five-yearly symposium coming up soon The Bowen Basin Geologists Group is gearing up for a major event in October, with the five-yearly Bowen Basin Symposium due to be held at the Brisbane Convention and Exhibition Centre. Group chair Kirk Henderson said the symposium was the largest coal conference in Australia and among the largest of its kind globally. “Our last one (in Mackay) had 600 delegates and we had to cap it at that because we couldn’t fit any more at the venue,” he said. “This time we’re holding it at the Brisbane Convention and Exhibition Centre and we’re hoping to get that many again, if not more.” Mr Henderson said organisers hoped the location would help attract more participants from the New South Wales coalfields and southern Queensland’s coal seam gas industry. The technical event centres on the geosciences – geology, geotechnical engineering, coal quality geophysics and associated disciplines and services.

“We only hold it every five years to maintain a high technical standard,” Mr Henderson said. “We’ve had close to 90 technical papers submitted and we’re whittling them down for the three days of presentations and the proceedings to go with that.” About 25-30 papers will be selected as symposium presentations and further submissions will be on display at the event as poster papers. These and other significant papers will be printed as a reference source in the symposium proceedings. Mr Henderson said the Bowen Basin Geologists Group had worked to keep attendance costs down and was mindful of the impact of the industry downturn on people’s ability to participate. The general cost is $550 for the three days (October 7-9), and there is a “hardship” registration rate of $100 less for unemployed geoscientists. More at www.bbsymposium.com.au


7

Queensland Industry Advocate | September 2015

REGIONAL ROUND-UP Weipa

Townsville

The South of Embley bauxite project will go before the board for final approval by the end of 2015, Rio Tinto confirmed in its recent half-yearly report. The report stated that required regulatory permits were in place and feasibility studies were progressing as planned for the $1.45 billion project, which would produce about 22.8 Mtpa. The company’s bauxite production was up five per cent this year compared to the first half of 2014 and set a new first-half record, primarily driven by a strong performance at Weipa and Gove. Rio Tinto’s share of bauxite, alumina and aluminium production for 2015 is

The Port of Townsville is investing $55 million to upgrade Berth 4 and double its capacity, enabling an extra two million tonnes of product to go through the port every year. Minister Assisting the Premier on North Queensland Coralee O’Rourke said the Berth 4 upgrade would create about 100 jobs during construction. “The investment will enable access for larger vessels and also deliver a 20 per cent increase in total tonnage throughput,” she said. A landside cargo handling area would also be built and the intermodal transfer of cargo

expected to be 43 million tonnes, 8 million tonnes and 3.3 million tonnes,

for road and rail enhanced, she said.

respectively.

Isaac region Georgetown Genex Power has appointed specialist power and water consulting firm Entura to deliver a bankable feasibility study for the Kidston Pumped Storage project. Genex Power, which listed on the ASX in July, plans to transform the old Kidston gold mine into a large-scale hydroelectric power plant. Entura said the abandoned mine site contained two large adjacent pits with the potential to act as the upper and lower reservoirs required for pumped storage hydropower generation. In addition to the feasibility study, Entura will oversee subcontracted investigations, including geotechnical investigations and a bathymetric survey. Genex says the proposed Kidston plant, with a nameplate generation capacity of 330 MW, is scheduled for completion in 2018.

The draft Environmental Impact Statement (EIS) has been released for the proposed $6.7 billion China Stone coal project in the northern Galilee Basin. Queensland State Development Minister Dr Anthony Lynham said the MacMines Austasia project would provide up to 3900 jobs during the proposed two-year construction phase and up to 3400 operational positions. “The China Stone coal project involves the construction and operation of a greenfield open-pit and underground thermal coal mine within a 20,000ha mining lease area,” he said. “The project could realise significant economic and social benefits on a regional, state and national scale with the capacity to produce up to 38 million tonnes per annum of product coal.”

Toowoomba The Wagners Group says it is in talks to construct three new airports in Australia and overseas, The Chronicle reports. Wagners chairman John Wagner told the newspaper that confidential negotiations were progressing on the new airports. The family-owned company was behind the development of the Brisbane West Wellcamp Airport, which was built in 18 months and began operating regular public flights in November.

Cloncurry CuDeco says plans for the final stages of development of its Rocklands Group mine are on track after installation of a new management team. Chairman Wayne McCrae, who discovered the deposit, recently resigned from his role to appease the company’s three key Chinesebased investors. Newly appointed managing director Peter Hutchison said Rocklands was on target for production from the processing plant within months. “An off take agreement is already in place with our major shareholder, China Oceanwide International Investment, for 60 per cent of the planned copper concentrate production,” he said. “We are working closely with principal contractor and shareholder, China’s Sinosteel Equipment & Engineering, to achieve the commissioning of the production plant in the latter part of this year.” Mining has been reduced to a smaller shift working on a week on-week off roster to cut costs in the meantime, with more than 2.2 million tonnes of ore already stockpiled at the site.

Chinchilla Linc Energy is fighting accusations that it allowed toxic gas to leak from its underground coal gasification plant, causing workers to fall ill. APN regional papers have reported on Linc’s legal battle with the Department of Environment and Heritage Protection over accusations the plant wilfully and unlawfully caused serious environmental harm. Meanwhile the ABC has run stories based on a secret government report indicating gas released by Linc’s activities had caused the permanent acidification of soil near the site and that experts also found concentrations of hydrogen in the soil at explosive levels and abnormal amounts of methane. Linc Energy strongly rejects allegations that its demonstration facility caused serious environmental harm and says departmental investigations have been conducted in a misguided manner. The proceedings have been set down for a committal hearing at the Dalby Magistrates Court in late October.

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Dalby Peabody Energy has entered into a sales agreement with Sekitan Resources, a subsidiary of Exergen, for Wilkie Creek mine and associated assets. Peabody said the deal had an aggregate value for the company of up to $US75 million including up to $20 million cash and assumption of liabilities totalling $55 million. The sale is expected to be finalised in the third quarter of 2015, subject to satisfaction of certain conditions. Peabody purchased Wilkie Creek in 2002, and the mine ceased operations in 2013. In its most recent quarterly report, Peabody Energy reported completing about $35 million of non-core asset sales in the U.S. and Australia in recent months. “The company is aggressively reviewing additional portfolio optimisation opportunities, and will continue to increase divestment actions in the second half of 2015 through sales of non-core reserves, surface lands and other properties,” it said.

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8 NEWS

Queensland Industry Advocate | September 2015

Research program scrubs up University team targeting sugar processing issues to boost efficiency A Queensland research project to improve the performance of wet scrubbers in the sugar milling process is expected to help reduce stoppages caused by the build-up of deposits on boiler fans. The Queensland University of Technology is carrying out the three-year study, with $185,000 in Sugar Research Australia funding. Senior research fellow Dr Anthony Mann said the work would result in recommendations on optimum water flow to the wet scrubbers and modifications to the internal design of the scrubber. He said the work, due for completion in 2017, looked good in the cost/benefit analysis when you considered that it would only have to save three or four mill stoppages to pay for itself. Wet scrubbers clean the emissions from boiler flues, but their operation can produce a build-up of deposits on boiler fan blades. “It depends on the factory,

but some factories have had to stop several times in a crushing season (to remove deposits from boiler fans and blockages in scrubbers),� Dr Mann said. “How much water you put into a wet scrubber has a big effect and we’re going to be able to advise mills on that, also on improvements to the internal scrubber design.� The QUT wet scrubber research project includes test model experiments and a PhD student devoted to computational fluid dynamics modelling. The wet scrubber work is just one of a swag of sugar-related projects under way at QUT. Science and Engineering Faculty Professor Ross Broadfoot said the university had 16 full-time staff devoted to this research, which covers all aspects from cane harvesting to the end sugar product, including refining of raw sugar. The team also investigates opportunities for value-adding to the by-products of the

Scale model wet scrubber being used Outlet Demister Vanes

for research.

Water Distribution Cone

Scrubbing Vanes

Inlet duct

process, including bagasse. “We also do consulting for the Australian industry and overseas. We have people out there all the time working in the factories and helping them if they have a particular issue,� Prof Broadfoot said. The QUT team does a lot of process modelling work to

help improve performance in all sections of the factory. In the boiler area, for example, Dr Mann said they would provide this service for 10 to 15 mills and boiler manufacturers each year in Australia and overseas. “One of the main issues is wearing of the tubes inside

the boilers,� he said. “We do computer simulations of the boilers that show the velocities and the temperatures, and what’s happening to the flow of ash and bagasse particles that go through the boilers. “We work out how they can change their boiler design to address the various problems.�

Wulguru Group finds a way above the water A touch of ingenuity helped Wulguru Group deliver on time and budget during a project to strengthen a cane train bridge across the Herbert River outside Ingham. The company carried out the work on the Macknade Mill bridge for Wilmar Sugar, using fish plates designed by FE Consultants to reinforce joins on the steel girders. Project manager Richard Toigo said access over the water was a challenge that Wulguru Group had overcome by designing equipment that allowed them to perform the task without the use of scaffolding. The Wulguru Group working platform at the Herbert River site.

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“We won the tender on the back of our execution plan,� he said.

“We made a train trolley with a davit arm and a flat bed for all our equipment. We could roll it out on the bridge and from there we had platforms that could be lowered down over the headstocks of the bridge, allowing us to access where we needed to work above the waterline.� Mr Toigo said the company prided itself on coming up with such solutions to deliver on-site works safely and cost effectively for clients. Established in 1976, the Wulguru Group has long history of successful design and fabrication work for the sugar industry in Queensland and New South Wales. The Macknade Mill bridge project took about six weeks using a six-strong team.

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Queensland Industry Advocate | September 2015

NEWS

Assembly starts off Urquhart Metallica moves its Cape York mineral sands project up the priority list Tenders have been issued for onsite assembly of the processing plant for the Urquhart HMS (heavy mineral sands) project on Cape York as Queensland-based resources company Metallica Minerals draws closer to production. The plant, fabricated by Consulmet, is being shipped from South Africa to the site – where clearing and civil works have been completed in preparation. “We will be looking to assemble a suite of subcontractors to build the plant on site and after that we will be going to the market for a raft of operational and maintenance packages,” Metallica chief executive Simon Slesarewich said. Mr Slesarewich said the company expected to begin zircon-rutile concentrate production after the wet season, although the JV partners are closely monitoring mineral sands prices – which have suffered a recent decline. “We are watching the market and tweaking our plan to make sure we deliver suitable cash flow out of the project,” he said. The joint venture has already spent about $6 million out of an expected capital outlay of

$7.5 million to start up Urquhart HMS. Mr Slesarewich said company’s prime focus at the moment was on advancing that project and the adjacent Urquhart direct shipping bauxite project. The former flagship project for Metallica – SCONI – has been pushed down the priority list by prevailing market conditions. SCONI is a scandium project located 250km from Townsville and includes the Greenvale, Lucknow and Kokomo deposits. As a result Metallica is selling off limestone projects it had purchased to support SCONI processing requirements. The Ootann project, 180km south-west of Cairns, was sold in July for $500,000, followed by the Star River project west of Townsville in August for $370,000. The company has received expressions of interest for further limestone projects it holds near Gladstone. Metallica has also realised value from its Lucky Break nickel project in North Queensland, with Queensland Nickel now carrying out rehabilitation works at the site after mining nickel laterite ore to feed its refinery near Townsville.

Site works for Metallica Minerals’ HMS processing plant.

Queensland Nickel extracted more than 100,000 tonnes of ore from the Dingo Dam mining lease, with Metallica set to reap total payments of $650,000 in return. On Cape York, Metallica also

holds a silica sands resource alongside the Cape Flattery silica sands operation and is looking for partners to help develop the site. Mr Slesarewich described the potential from the raft of Cape

York projects as very exciting for the company and the region. He is also excited about the Esmeralda project, south of Croydon, where the company holds a “very large and unique” graphite-in-granite resource.

Project a $1.6b nexus to work The Nexus Infrastructure consortium has signed a contract with the Queensland Government for the delivery of the $1.6 billion Toowoomba Second Range Crossing. The milestone in late August was welcomed by Toowoomba and Surat Basin Enterprise chief executive officer Shane Charles, who said Nexus had a serious commitment to local content. “They have a great track record of employing local people, and to hear … that they are going to engage at least 75 per cent local content for the project, with the aim to do better, is a fantastic win for the region,” he said. The 41km highway project will bypass the city of Toowoomba and improve traffic conditions and road safety in the region, in particular reducing the number of heavy vehicles travelling through the city centre. The successful consortium consists of Plenary Group, Cintra, Acciona Concessions, Acciona Infrastructure and Ferrovial Agroman, as well as

operations and maintenance provider Transfield Services. Nexus Infrastructure chairman John Witheriff said work on the project would start with detailed design, procurement and site establishment in the coming months, with construction works expected soon after. “In the meantime, we will be holding a number of information sessions and displays throughout the community,” Mr Witheriff said. Construction is expected to be complete in late 2018, after which Nexus is contracted to operate and maintain the road for 25 years. Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss said more than 1800 full-time jobs would be supported during construction of the project. Potential suppliers interested in engaging with Nexus should visit their website (http://www. nexustsrc.com/) and register their interest. * More roads stories – pages 20-24

* And don’t forget, membership gives you free access to the:

Capability & Procurement Portal * RECEIVE INVITATIONS TO TENDER * FIND LOCAL BUSINESS * POST TENDERS AND QUOTES The Capability and Procurement Portal aims to promote the extensive capabilities and capacity that the Mackay Region has to offer. The Portal will connect local businesses and industry to develop a sustainable and diverse economy for our region. Register now at:

www.industryprocurementportal.com.au This project is an initiative of Resource Industry Network with funding support from Rio Tinto Hail Creek Mine Community Development Fund and Mackay Regional Council with in-kind support from The Department of State Development.

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Resource Industry Network is a not-for-profit member group representing the resource sector and allied industries within the region. We connect, develop and promote our members to key resource decision makers and influencers. Membership benefits include access to all Resource Industry Network publications, ability to attend WH&S and Export committees, ability to attend events at discounted member rates and access to the free Supply Chain Panel Sessions + more for a minimal annual fee. Contact us now for more information and to receive a membership pack.

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10 OUR MINING HERITAGE

Queensland Industry Advocate | September 2015

Mt Morgan’s year for memorial Mount Morgan Mine - 1880s

The central Queensland mining community of Mount Morgan will host the annual Miners Memorial Day Service for 2015. The September 19 event is organised in partnership between the Queensland Government, the mining industry, workers and unions. It is held on the anniversary of the 1921 Mount Mulligan coal mine disaster, which claimed 75 lives. Mount Morgan has a long history of mining dating back to 1882 when it was founded as a gold mining town. The Mount Morgan Mine operated between 1882 and 1990 and was the largest gold mine in Queensland during the 19th and early 20th centuries. A Natural Resources and Mines spokesman said there were more than 150 recorded fatalities related to mining activities in the Mount Morgan district since 1889. He said this year’s memorial service would start at 10.30am on September 19 at the former Mount Morgan Mine site, 38km southwest of Rockhampton. The service is open to the public and gives families, mining industry workers, representatives from unions, mining companies and government the opportunity to gather and commemorate the lives of more than 1500 miners lost during three centuries of mining in Queensland. • Meanwhile a Moura community group has conceded defeat in its bid to have a major miners’ memorial ready to mark the 40th anniversary of the Kianga disaster on September 20. Moura Community Progress president John Walker said funds were still well below the level required to start building and the group was now aiming for its fallback opening date of July next year, to co-incide with the 30th anniversary of the Moura No. 4 underground disaster. The $535,000 project will honour those killed in three mass disasters on the Moura-Kianga coalfields as well as individual miners killed in accidents since 1961. Mr Walker said the group would continue lobbying coal operations to contribute and was pursuing various government grants.

x

Mount Morgan, 38km south-west of Rockhampton will host this year’s Miners Memorial Day Service.

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Queensland Industry Advocate | September 2015

OUR MINING HERITAGE

Tablelands’ mine supply chain out of one store They were drawn to far north Queensland by news of gold finds on the Palmer River, but it was a retail empire that helped Scotsman William Jack and Irishman John Newell become household names throughout the region. The pair played a key role in the birth of the Herberton tin mining district in the 1880s – both as prospectors and through their general store, which provided a kick start for mining newcomers as well as serving growing local communities. Jack & Newell stores sprang up throughout the north and even printed their own currency, according the Historical Society of Mareeba, which compiled research for a website highlighting this part of local history. Willie Jack and John Newell were part of a prospecting party that found a rich lode of tin near Wilds River, Herberton, and established the Great Northern Mine. According to the historical society, Jack invested profits from that mining operation into establishing a general store – which opened in Herberton in 1880. John Newell joined the business in 1882 – lending his name to the new retail chain. He continued to run the business with another mining connection, John Moffat, after Willie Jack left to continue his prospecting career in the Dutch

John Newell East Indies. The discovery of tin at Herberton led to a rush of miners to the district and as new townships sprang up, so did Jack and Newell stores. The mining settlements

The Great Northern Mine.

“Every time two miners got together, Jack & Newell put up a shop . . .”

included Irvinebank, Silver Valley, Watsonville, Coolgarra, Mount Garnet, Montalbion, Stannary Hills, Mount Molloy, Chillagoe, Zillmanton, Calcifer and Mungana. “Every time two miners got together, Jack & Newell put up a shop,” joked Historical Society of Mareeba secretary Helen Kindt, who helped research the storekeepers’ history for the Jack & Newell website. “They had absolutely everything – you name it they sold it.

“They didn’t just cater for the mining man – they catered for families.” This meant a retail range that stretched from dynamite and bullets to underwear and tea sets. Better roads and the growth of large supermarket chains contributed to the demise of Jack & Newell stores from the 1970s, with the last one closing its doors in Chillagoe in 1982.

The stores may be gone, but they are not forgotten – with Mrs Kindt and her fellow researchers finding many far north Queensland residents with fond memories of the chain. The Historical Society of Mareeba’s presentation on Jack & Newell can be found via a link on the website http://www. mbahistsoc.org.au/

Grubstake finance Jack & Newell stores gave many early arrivals to the tinfields a leg up through a practice known as grubstaking. The new miners could obtain the food and equipment needed to get them started on credit, with the account to be settled with tin from their claim. The Historical Society of Mareeba website explains how such transactions made sense in these remote communities, where cash was often in short supply. Extending credit was an investment in future customers for Jack & Newell, and the new miners would be bonded to them rather than any rival storekeeper. However the society’s research also unearthed many memories of John Newell cancelling miners’ debts or continuing to grubstake them when he knew they would never be able to repay the store. It suggests that the former miner may well have been sympathetic to the plight of those who scratched around for years with little reward.

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12 NEWS

Queensland Industry Advocate | September 2015

Persistent ways win with BMA Supply head shares tips for businesses seeking resource industry work

Damien Matthews BMA head of supply

The ability to clearly communicate your value proposition and to distinguish yourself from your rivals are key elements to contract success for smaller businesses, a mining procurement chief says. BHP Billiton Mitsubishi Alliance (BMA) head of supply Damien Matthews said there was no one, simple answer on how best to do this for SMEs (small and medium-sized enterprises) trying to win resources industry work. “It’s about constantly challenging yourself to be satisfied that you have done your best to separate yourself from the pack,” he said. The primary entry path BMA provides for Bowen Basin and Mackay-based SMEs seeking work across its operations is the BMA Local Buying Program. Run by C-Res, the program has resulted in work packages

to the value of more than $46 million being awarded to participating local businesses over the past three years at BMA/BMC coal mines across the Bowen Basin. The program was extended to businesses in Mackay and Sarina to supply to BMA’s Hay Point Coal Terminal in November 2014. More than 660 Central Queensland businesses have now signed up to program, with more than 7000 claims paid to local suppliers since July 2012. As well as providing an avenue for SMEs to pitch for BMA supply opportunities, Mr Matthews said the program included forums to assist them in their overall approach to winning business. He outlined the following key areas for SMEs to consider when seeking work: BMA’s Local Buying Program is an entry path for local firms hoping to win business on sites such as Blackwater mine.

Are you clearly articulating your value proposition? “It’s often the case that organisations will convince themselves that they have wonderful value proposition, but they don’t have the ability to communicate that externally,” Mr Matthews said. This also meant being able to distinguish what they could offer as opposed to what competitors in the field were offering, he said. Mr Matthews said he was looking for businesses to clearly articulate how they would deliver on their promise within the timeframe required and to the agreed cost and quality.

Do you fully understand the client’s needs? Building relationships with stakeholders was critical in understanding what the customer was seeking, Mr Matthews said. “People often make assumptions about what their customers want or need,” he said. “You might have what you think is a great value proposition, but it might not be what the customer is seeking. You need those key relationships in place along the way.” Mr Matthews conceded that establishing such links could be difficult for firms trying to

break into the resources industry and pointed to the BMA Local Buying Program as one of the ways his organisation was trying to address this issue. Can you run a leaner business machine? With belt-tightening across the coal industry to maintain profitability, Mr Matthews said suppliers must look within their businesses for costcutting measures just as mining companies such as BMA had done. “They have to look inside their own business and challenge

themselves across the areas of price, demand and specification,” Mr Matthews said. Are you being realistic about your business capacity? Mr Matthews urged suppliers to think about this point. “Don’t set yourself up to fail by trying to secure work that is really beyond your capability,” he said. “As much as I’d like a silver bullet, there isn’t one - it’s hard work and it’s persistence.” For more information on the BMA Local Buying Program visit https://c-res.com.au/

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GLADSTONE G LAD DSTONE EN ENGINEERING NGINEERIN NG ALL ALLIANCE LIANCE IN INC NC

GEA MAJOR INDUSTRY CONFERENCE 2015 presented by MIPEC

Focus on opportunity “Knowledge-thirsty” businesses are proving keen to tap into a key Gladstone industry forum amid the ongoing mining downturn and winding down of LNG construction projects. Gladstone Engineering Alliance events officer Kim Roberts said response to the 2015 GEA Major Industry Conference, to be held on October 14-15, had been pleasing so far. “We expect to draw 200 delegates from Australia wide, particularly based on the number of new speakers this year with new information,” Ms Roberts said. “We are finding that

businesses are more ‘knowledge thirsty’ and recognise the forum for the direct work opportunities that are presented.” The GEA Major Industry Conference, now in its 12th year, has been known as the Golding Industry Conference in the past but attracted new major sponsor MIPEC in 2014. Ms Roberts said GEA would continue to deliver the conference for as long as the organisation and its members continued to derive benefit from the event. “The economic climate of Gladstone is a constantly changing landscape and this event has cemented itself as

the go-to annual event for information that will assist in driving business forward for the next 12 months,” she said. Its point of difference was the intense focus on supply opportunities, with the organisers keeping the program smaller so that the information provided was more in-depth than at other major forums, Ms Roberts said. “Suppliers walking away informed on supply opportunities, timelines and supplier expectations are the primary goals of the event.” The conference theme for 2015 is Keeping Perspective - encouraging smart thinking

Conference organisers aim to leave suppliers well informed on regional work opportunities.

CAUTION

Photo: Murray Ware

toward innovation, flexibility, consistency and certainty in the resources sector. Ms Roberts said this reflected the work GEA had been doing around intelligent business solutions, innovation and adapting to change. “We know that the resources sector is a constantly changing landscape and as companies playing in this space, we must understand how to ride the waves and identify new niche markets,” she said. “Prior to the construction of five major projects at the same time in the region (WICET, the Northern Oil Refinery and three LNG plants), businesses were operating and successful and by ‘keeping perspective’ we know we can continue that sustainably in the sector.” The 2015 GEA Major Industry Conference is scheduled to include presentations from Euroa Steel Plant Project chief executive officer David Simpson, Gladstone Port Corporation chief executive officer Craig Doyle, Bechtel Gladstone general manager Kevin Berg, Boyne Smelters general manager Joe Rea and Gladstone Regional Council contracts manager Mark Larney. Casper Energy and Cockatoo Coal will also feature and there will be a panel session on APLNG operations and maintenance opportunities. To register or for more details visit www.gea.asn.au

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GLADSTONE G LAD DSTONE EN ENGINEERING NGINEERIN NG ALL ALLIANCE LIANCE IN INC NC

GEA MAJOR INDUSTRY CONFERENCE 2015 presented by MIPEC

Set for a larger stage A diverse range of highly skilled suppliers are considering their options moving forward as a momentous period of construction in the Gladstone region nears completion. Local companies must ensure they have adapted and put in place change management, innovation and sustainability plans to ensure business longevity, according to the Gladstone Engineering Alliance. GEA general manager Carli Hobbs was commenting on the outlook for Gladstone industry as the construction phase for the APLNG, Santos GLNG and Queensland Curtis LNG projects winds up.

Santos in August announced it was bringing gas into its first LNG production train, while APLNG recently began loading refrigerants to its Curtis Island plant - both milestones in the commissioning process. BG Group started production from its second train at the QCLNG plant in July. Ms Hobbs said while many Gladstone businesses would maintain their current maintenance work, others would chase new maintenance opportunities within the LNG field or at the newly completed Wiggins Island Coal Export Terminal (WICET). “Those businesses who have

The APLNG facility in Gladstone is fast nearing completion.

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Carli Hobbs Gladstone Engineering Alliance general manager

been operating in the region for a number of years understand the cycles and will continue servicing their clients, while others will seek opportunities further afield,” she said. “None-the-less it is even more important that businesses work together, form alliances and use local suppliers, to ensure there is an economic contribution made to the local community by investment in local goods and services, and not just through employment and training.” GEA Major Industry Conference sponsor MIPEC is among the local businesses that has used its LNG experience to become third-party compliant in a range of required fields. Business development manager Chris Dunphy said local industry had the chance to use such increased capabilities to promote itself on a national and global stage. “MIPEC has been focusing on expanding geographically, that is

part of our strategy,” he said. “We took the LNG projects as an opportunity to increase capability and are now looking at opportunities all over Australia in facilities and asset maintenance, marine operations, marine consulting and surveying.” Ms Hobbs said there would always be fresh opportunities for the Gladstone region, whether in major industrial projects such as an oil refinery, steel plant or port expansion, or development in the agricultural sector via beef exports or a boxed beef meat works. “The location of the region to service Central Queensland, the diversification and the liveability provide numerous opportunities,” she said. Gladstone Region Mayor Gail Sellers described economy in Gladstone as the envy of most other parts of the State. “Completion of the construction phase of the LNG projects will be a transitional process that will coincide with renewed activity in residential and commercial property construction,” she said. She expected the housing construction industry to ramp up around the same time that Stockland would be working on its planned $150 million shopping centre redevelopment. “The Gladstone region is forecast to continue to grow at 2.9 per cent for the next 20 years, which is well above the State’s average rate of growth in recent years,” Cr Sellers said.


GLADSTONE G LAD DSTONE EN ENGINEERING NGINEERIN NG ALL ALLIANCE LIANCE IN INC NC

GEA MAJOR INDUSTRY CONFERENCE 2015 presented by MIPEC

Industry tips a hat to its own The Port of Gladstone is enjoying a growth spurt.

Photo: Murray Ware

Port leads the charge in growth Trade through the Port of Gladstone is projected to grow to nearly 145 million tonnes handled within five years, representing growth of nearly 50 per cent atop 2014/15’s record throughput. Gladstone Ports Corporation said the throughput last financial year of more than 100 million tonnes represented about $14 billion in value, a significant leap since the late 1990s when the port was handling about 60Mtpa with a value of $3 billion. GPC chief executive officer Craig Doyle said this dramatic growth was set to continue with the commencement of 25Mtpa of LNG production capability and with additional coal exports through the new Wiggins Island Coal Export Terminal. “The Port of Gladstone is on track to be Australia’s largest multicargo port by the end of the decade,” he said. Mr Doyle will be speaking at the GEA Major Industry Conference at the Gladstone Entertainment and Convention Centre in October about GPC’s recent performance and major projects such as the potential Gatcombe and Golding Cutting channels duplication works. “I will also discuss what I see as the major challenges for GPC over the coming 12 months, as well as new trade and opportunities for our ports of Gladstone, Bundaberg and Port Alma, and the major strengths of GPC’s assets and services,” he said. From August 2016, GPC will cease coal operations at its Barney Point Terminal, shifting all coal trade to RG Tanna and Wiggins Island coal terminals. The closure of coal operations at the terminal is in line with GPC’s 50 Year Strategic Plan, and will enable operations at Barney Point to focus on other dry bulk and possible new trade opportunities. Mr Doyle said GPC continued to look at ways to diversify product and customer base across its three ports.

Gladstone industry will take time out to acknowledge local business leadership and excellence with a gala event on October 15. The 12th annual Gladstone Engineering Alliance Gala Dinner and Industry Awards night is expected to attract a crowd of more than 250. Held in conjunction with the GEA Major Industry Conference, it is the city’s largest industry event, according to GEA projects officer Kim Roberts. “The purpose of the awards night is to showcase the exceptionally highly skilled supply chain Gladstone boasts,” Ms Roberts aid. The industry “night of nights” features three distinct awards that celebrate those who strive for and embody excellence in business in the Gladstone Region – the Wayne Peachy Memorial Award, the Forty Calis Memorial Award and the Industry Hall of Fame Award. Ms Roberts said the calibre of nominees this year had been exceptionally high and represented sectors including engineering, marine, consulting, training and plumbing. They include Mark Whitmore, Cliff Pugh and Steve Kelly (XPort Plumbing), Dan Madden (Prime Rentals) and Vern Elms (Ezi Communications) for the Forty Calis Memorial Award. The Wayne Peachey Memorial Award nominees are George Young (G.W Young and Sons), Scott Harrington (Xtreme Engineering), and Patrice

Brown (CQG Consulting). Ms Roberts said the annual Forty Calis Memorial Award recognised the achievements of an individual who had demonstrated an entrepreneurial spirit to gain business success in the engineering and support sector, while the Wayne Peachey Memorial Award paid tribute to an individual known for their quality in service or product. “The Industry Hall of Fame Award has been established to recognise those outstanding individuals or businesses that can be held up as role models,” she said. The 2015 GEA Gala Dinner and Industry Awards night will be held at the Gladstone Entertainment and Convention Centre, Goondoon St, with predinner drinks from 6.30pm.

The annual awards night showcases local excellence.

Photo: Murray Ware

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16 BETWEEN SHIFTS

Judy Green (Origin Energy), Mark Theron, Peter Mitchell, Melissa Crothers and Gavin Fleming (all Fleming’s Welding Service) at the Toowoomba and Surat Basin Enterprise August Enterprise Evening in Roma.

Bruce Abraham (Freo Cranes), Cassandra Brownsdon and Steve Nevin (Careers Australia) with Colin Rush (Freo Cranes) at the Toowoomba Transport and Logistics Symposium Gala Dinner – Picnic Point.

Queensland Industry Advocate | September 2015

Charlie MacFarlance (Stock Locker), Lance MacManus (TSBE) and Scott Fyfe (Rocla) at the TSBE August Enterprise Evening - Roma.

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Queensland Industry Advocate | September 2015

INDUSTRY LEADERS

Metallica and rugby

Walking into geology

Simon Slesarewich

Kirk Henderson

New chief executive officer Simon Slesarewich has hit the ground running at Metallica Minerals as the Queensland-based junior looks to shift gear. “Metallica is at a very exciting time,” Mr Slesarewich said. “Historically Metallica has been an explorer, but it is moving into being a project developer and a producer. As well as that we have a large tenement portfolio to manage.” The mining engineer’s previous experience includes a stint as general manager for Middlemount coal mine in Central Queensland, where he oversaw the approvals, design and construction process to bring the operation into production. Mr Slesarewich said he had also been involved in early development at Tom’s Gully gold mine in the Northern Territory,

restarting the Renison tin mine in Tasmania and initial decline development for the Ernest Henry underground project. Recent years have been devoted to business interests including his position as CEO of Boardwalk resources, in which he led the execution of that company’s sale as part of the $5.2 billion Whitehaven Coal-Aston Resources-Boardwalk Resources merger and acquisition in 2012. Mr Slesarewich said what he was looking for in the next stage of his career and what Metallica required as founding managing director Andrew Gillies took a step back from the company’s dayto-day operations seemed a very good match. “What I bring is a strong focus on mine development and the commercials behind that

which drive successful mining operations,” he said. Mr Slesarewich attended high school on the Sunshine Coast before studying engineering at the University of Queensland. He also holds graduate diplomas in business administration and applied finance and investment. He said he would count the highlight of his career to date as the people he had been lucky enough to work with over the years. Based in Brisbane, Mr Slesarewich and wife Kate have three sons under seven. He describes himself as “a bit of a sports nut” with rugby as his passion. “I love taking my son to the Reds,” he said. “We are season ticket holders and go and watch them every week that we can.”

Peabody Energy director of geology and resources Kirk Henderson could well have been a sports psychologist but for a left turn in life that began with a trip to Ireland. The 38-year-old Brisbane resident manages the geological and geotechnical functions across Peabody’s Queensland and New South Wales operations and is chair of the Bowen Basin Geologists Group. Although geology is a field he fell into, Mr Henderson said it had suited him from right from the get-go. “I spent a year over in Ireland (after finishing school) and, because I couldn’t defer my first year of university doing sports psychology, I accepted geology and deferred that,” he said. “I chose geology for no other reason than that I liked bushwalking and thought ‘that will do’.” Mr Henderson said he had no regrets and had enjoyed almost 15 years of opportunity and development since leaving Sydney’s University of Technology. “When I finished university in the early 2000s it was the perfect time – and I’ve ridden that boom,” he said. “I really feel for a lot of the graduates who are coming out of university now and trying to find a job.”

The up-down nature of the industry is illustrated by the warning Mr Henderson received when he started his degree. “I was told in the first week that when I finished uni I would be driving a bus or a taxi,” he said. “Back then, in the late 1990s, it was horrible.” Instead, he found himself on a plane to Queensland and started work with Resolve Geological, carrying out exploration for resource companies throughout the Bowen and Surat basins. “Eight years ago, I jumped across into mine site geology and started focusing there,” Mr Henderson said. “My interest lies in the practical application of geology - how you mine efficiently and effectively given the geological conditions. “To that end I went back to university and did a master’s degree in mining geomechanics.” Mr Henderson said his personal mantra had been to chase skills, not money. “There are a lot of people who have chased positions because there was more money and didn’t necessarily have the skills,” he said. “I think the industry is going through a rationalisation and those people are being found out now.”


18 BUILDING MINING COMMUNITIES

Queensland Industry Advocate | September 2015

SUPPORTED BY CANNINGTON

Tyrone Hookey with his fleet.

Entertainer Phil Emmanuel with ‘Croc’ and Senior Constable Des Hansson from McKinlay police at the Fight Night.

Fight Night benefits blue The North West showed how to put some punch into charity recently when about 150 people turned out for a fundraising Fight Night at McKinlay, sponsored by South32 Cannington. Cloncurry Police Citizens Youth Club (PCYC) organised the event at McKinlay’s Walkabout Creek Hotel, famous for its appearance in the Paul Hogan movie Crocodile Dundee. “We put on some exhibition fights in the car park under lights and there was a concert by Phil Emmanuel and Pop Standen,” PCYC branch manager Sgt Mick Maguire said.

Boxers from the Cloncurry PCYC took on other fighters from Mount Isa and Longreach clubs, he said. “The main event was between the police officer at McKinlay, Des Hansson, and the local plumber from here (Dane Swalling of Cloncurry),” he said. “There was so much leaning going on I think it was a draw.” Sgt Maguire said it had been a fantastic night with a lot of laughs, raising $2250 for beyondblue through charity auctions. “We had about 150 people along for the night – which is pretty good because there’s

usually only about 10 people in town,” he said. South32 Cannington principal, corporate affairs Graeme Nielsen said mental health charity beyondblue had been chosen to benefit from the night and this aligned with the mining operation’s support of that group in its Charity of the Year campaign. “We want to thank the PCYC for putting it all together, Queensland police for their support and the McKinlay community for getting behind such a great event,” Mr Nielsen said.

Gladstone SES scores well More than 100 players chipped in for a good cause at this year’s Gladstone Engineering Alliance Charity Golf Day, raising funds for the local SES. GEA administration and events officer Lycinda Steen said 38 teams had participated in the three-person Ambrose format, played over 18 holes at the Gladstone Golf Course. The Westpac team placed first, followed by Ulton and Lee Crane Hire. Ms Steen said GEA was able to present almost $4000 to Gladstone SES as a result of the event, with Projects Unlimited coming on board for the third year as principal sponsor. The GEA Charity Golf

Day has previously supported organisations including the Mount Maurice Rural Fire

Brigade, Salvation Army, RSPCA and Roseberry Community Services.

Work results from life link with mine Tyrone Hookey grew up around trucks and heavy machinery in the family business, Hookey Contracting, in Mount Isa. Now the father-of-five runs his own business handling onsite freight and commodities for Century Mine. Mr Hookey, 29, recently marked one year as a contract partner with MMG’s Century Mine as the director of Hookey Logistics. He is proud to follow in the footsteps of his parents Reginald and Mandy, who own and operate Hookey Contracting - established in 1998 from an opportunity through the mine’s Gulf Communities Agreement. Mr Hookey was 12 when his parents started their business and says “I pretty much grew up at the mine.” He left school at 15 and started work with them as a labourer, building up experience around the trucks and heavy machinery.

The GCA also paved the way for his business, initiated with a proposal submitted to MMG in 2011. Hookey Logistics has taken on an on-site service previously provided by Toll/ NQX. Its fleet consists of a prime-mover rated at 140 tonnes, an eight-tonne body truck and a skel tipping trailer. Mr Hookey hoped there would be further work opportunities with MMG beyond the imminent winding down of Century mining and processing operations, and he also has sights on other potential business opportunities in the Gulf region. MMG cites the success of Hookey Logistics as an example of the company’s commitment to fostering Aboriginal businesses that will continue long after its mining, processing and shipping operations have finished at Lawn Hill and Karumba.

Callide steps up to replace teaching kit

GEA general manager Carli Hobbs (centre) with SES representatives Zeta Ware and Rhonda Denney.

Cannington Proudly supporting mining communities

Anglo American’s Callide mine has donated $4950 to help the Cyclone Marcia recovery effort at Thangool State School, south of Biloela. More than 80 per cent of the school’s library books and teaching resources were destroyed and classrooms were left ruined in the wake of the cyclone in February. Thangool State School Principal Michael Nielsen said the support and donation from Anglo American had been critical in helping to relieve the pressure on teachers, staff and community members who had been working tirelessly to get the school reopened.


19

Queensland Industry Advocate | September 2015

LIVING REMOTELY

‘Appiness is a connected parent Want to read your children a bedtime story from 2000km away or help mates sync their social life with your FIFO commitments? There’s an app for that - of course. A burgeoning number of smartphone and tablet apps are targeting FIFO workers and their families, offering ways to stay connected from remote work sites and keep on top of rosters. One recent example is the Quality Time app, which allows users to purchase picture books that can be read from afar using screen sharing and an audio platform. The concept was sparked when Queensland engineer Steven Nicholson was working in Port Hedland and received a phone call from his daughter back home saying she would like a bedtime story, according to Chris Braine, one of the four Quality Time founders. People working away from home were a natural target market, Mr Braine said, but the app would help loved ones share quality time with children through stories in any situation where they were apart, including cases where parents were separated. (http://www. qualitytime.com.au/) Workaway Storybook, originated by Perth mum Kirsten Drummond, allows families to create a personalised storybook by uploading photos and adding voice recordings. “My partner works offshore (on gas rigs) and has done since before we had kids. When kids enter the equation it puts a whole different spin on things,” she said. Her app, launched in July,

helps children understand what the absent parent is doing and where they are at different times of day through images such as pictures of the workplace, meals room and sleeping quarters. “My youngest son is three and a half and he will say at night ‘is daddy sleeping in his bunk bed now?’ - he can visualise that,” Mrs Drummond said. “You can put your own photos in the book and change them whenever you like.” (http:// workawaystorybook.com/) Another example is the Home2You App designed by military families advocate Brie Backo and directed at any families separated by

employment, military service or personal circumstance. Ms Backo said the app was designed to allow families to create special messages, memories and milestones that could be treasured during times away. It includes a countdown feature to help children check on how many days are left until mum or dad is home again. (www.home2youapp.com) The One Minute Closer mobile app for iPhone and Android promises group chat capability as well as helping

remote workers to manage and share their roster and keep family and friends up to date on expected arrival times back at home base. (http:// oneminutecloser.com.au/) A raft of apps has been released targeting roster management and sharing for workers including FIFOapp, iFifo and the FIFO RnR app, allowing users to upload and update schedules and to help coordinate time off with mates. Mining Family Matters founder and director Alicia

Ranford said there had been a noticeable rise in apps targeting FIFO families, in line with a general growth in products and services in the area including picture books and calendars. Her organisation often drew the attention of companies and families to apps that may be useful in keeping workers connected with loved ones and mates, she said. “Anything that helps connect people whilst they are away to their support network at home is a fantastic thing,” she said.

Above - Screen shots from the Quality Time app.

Left - Turning the page at story time on the Quality Time app.

Above - The Drummond children Jahzara and Tynan use their Workaway Storybook.

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20 ROADS

Queensland Industry Advocate | September 2015

Multinational starts principal contractor role North Queensland construction manager James Ramsay is in the driver’s seat as AECOM services take a new turn, starting with a council road project in the central west. The rehabilitation and improvement work under way on McMaster Rd, the access to Winton Shire’s airport, marks AECOM Australia’s first project as principal contractor. But it is familiar territory in more ways than one for Mr Ramsay, whose two decades of practical experience has included a strong focus on north-west and central western Queensland “One of the reasons I’m sure they (AECOM) got me on board was to help move into that side of civil infrastructure work,” he said. AECOM Australia, more widely involved in road design and planning, started work as principal contractor in July on the McMaster Rd project – a 1.9km bitumen stretch being rehabilitated under Natural Disaster Recovery and Relief Arrangements (NDRRA). “AECOM is a global company and in various parts of our global company, construction work has always been part of the service,” Mr Ramsay said. “We feel there is value to our client having an integrated service delivery model as an option to consider on top of the traditional separately staged models.”

Based in Townsville as AECOM associate director transport for the past four years, Mr Ramsay has been involved in a raft of NDRRA work across rural Queensland, including in the Winton and McKinlay shires, as well as project managing detailed design work for the Cloncurry heavy vehicle bypass. He agrees that road building and restoration in rural and remote areas brings its own challenges. “For me the main thing is the tyranny of distance from resources, not just subcontractors or contractors but materials and even access to water,” he said. That meant a bit more thought and management was required to ensure a project was not held up unnecessarily, Mr Ramsay said. “I think it helps to be a bit multi-skilled too and I find a lot of the guys can do more than one job and they’re willing to have a go,” he said. Mr Ramsay grew up in Brisbane and completed a Bachelor of Engineering Technology at James Cook University before beginning his career in 1995 with RTCS (the forerunner to RoadTek). “I completed post-graduate qualifications in project management and built my experience from there in the field,” he said. “I feel lucky as those I worked with, from both technical and non-technical

AECOM associate director transport James Ramsay.

backgrounds, were willing to teach, guide and mentor me.” His time with the Department of Transport and Main Roads included managing the RoadTek Northwestern Work Centre in Cloncurry, with an area of responsibility stretching from

Pormpuraaw in the north to Birdsville in the south. His latest commitments at Winton have been seeing him travel regularly to the central western shire, mostly by car. “There is some travel involved – but you’ll find people in the

western areas don’t see a four or six-hour drive as a big thing,” Mr Ramsay said. He said he would not able to do this work without the support of his wife Kelly, and their three children, Angus (15), Alyssa (13) and Aimee (11).

Funds for western upgrade The State Government has unveiled a $40 million roads funding package for western Queensland over the next two years, including $13 million to be spent on the Diamantina Developmental Rd. Four key upgrades from Charleville to Boulia on that route were among the 14 priority road projects identified for the region in the Palaszczuk Government’s 2015-16 State Budget. The Western Roads Upgrade Program will focus on widening and sealing works to make the roads smoother and safer. Included in the upgrade program is a $3.2 million project to widen and strengthen high-priority sections of the

Wills Development Rd in the far north-west and $2 million to upgrade sections of the Bulloo Development Rd from Cunnamulla to Thargomindah in the south west. The Wills Development Rd is scheduled for further works this financial year outside the Western Upgrade Program, including $1.2 million to be spent on a section between Julia Creek and the Burke and Wills Junction in the McKinlay Shire. A further $3 million will be spent to widen and rehabilitate a section of the road between the Burke and Wills junction and Gregory in the Cloncurry Shire. These works will be undertaken by Myuma.

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21

Queensland Industry Advocate | September 2015

ROADS

Investment in roads reinstated State and federal funding boosts mean an extra $1 billion will be channelled into council road projects in Queensland over the next two years, the Local Government Association of Queensland says. LGAQ chief executive Greg Hallam said this represented an increase of about one third in total funding, taking the construction and special maintenance spend for councils statewide to around $4 billion over 2015-16 and 2016-17. “It’s a sweet spot and our aim now is to continue it beyond the two years,” he said. “Things are tough in regional Australia and there is no doubt that this is a classic Keynesian counter-cyclical economic stimulus measure, but it also reflects the tight political situation at state and federal levels.” The extra roads funding from State and federal levels totals about $700 million over two years, resulting in a $1 billion boost when matched funding from local government is taken into account. It comes from areas including fuel excise indexation, the Roads to Recovery and Building

Chris Safonoff FKG Group business development manager – engineering

Our Regions programs, and a renewed commitment to the Transport Infrastructure Development Scheme. FKG Group business development manager – engineering Chris Safonoff said the availability of councilfunded roadworks was essential to contractors who had invested in establishing themselves in regional locations. They sustained the local labour force, allowing equipment to be based locally and utilised regularly. The injection of State and Australian Government funds into the road industry would go a long way to alleviating some of

the stresses on the marketplace due to a recent downturn of projects, Mr Safonoff said. “When markets are stressed, as is the case currently, some contractors will ‘buy’ works at cost to maintain their workforce,” he said. “This places great pressure on not only contractors but the entire supply chain as these cuts are required to be absorbed in other areas. “A solid pipeline of future government spending can give the industry more clarity about upcoming project values and the regions where the work will be awarded in the next 12-24 months.” The Palaszczuk Government Budget for 2015/16 reinstated the State commitment to the Transport Infrastructure Development Scheme (TIDS), which Mr Hallam said was created to allow councils to conduct longer-term strategic planning across council boundaries and across funding years. “Councils fund this 50/50 and it was disappointing for us under the last government that the TIDS money was cut back to $30 million (annually), which

really did put a dampener on the process,” he said. He said it was an absolute godsend to have the current State Government double that amount and add $10 million (taking its contribution to $70

million a year for the next two years). The Queensland Government has also dedicated $200 million of its Building Our Regions program over the next two years to local government projects.

Completed upgrade works at Middle Rd, Anduramba, north of Toowoomba.

Finish to recovery works Toowoomba Regional Council recently marked completion of the largest flood recovery program the region has seen with the opening of the Middle Rd project in the Anduramba area. The flood events of 2011 and 2013 have seen more than 1600 projects at a cost of more than $250 million undertaken across the region to rebuild and better

prepare for future events. Toowoomba Region Mayor Paul Antonio said the Middle Rd project typified the Natural Disaster Relief and Recovery Arrangements, a joint initiative between all three levels of government. It was undertaken as an alternative solution after a decision to close Anduramba Range Rd following repeated flood damage.

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22 ROADS

Queensland Industry Advocate | September 2015

Innovation to allow diagnosis from a distance Imagine a bridge that tells you when and where it hurts via instant communications technology such as an SMS or email. Townsville-based Rockfield Technologies is developing a system that does just that and expects to be in a position to start pilot projects with asset owners next year. Chief executive officer Govinda Pandey said sensors on the road bridges would be able to provide remote feedback, sending an alert when a structural change was detected and an asset should be inspected for damage. Having such a tool to monitor bridge condition would be of particular benefit in regional Queensland, given the vast distances often involved in physically inspecting assets, he said. “Normally we would send people out to do periodic

Govinda Pandey Rockfield Technologies CEO

inspections, but that is costly and any critical damage that may occur in between inspections may pose safety risks,” he said. “If we have a bridge smart enough to tell us when it’s hurt and where it’s hurt, then how good would that be? That is the motivation behind the project.”

Dr Pandey said Rockfield had been working on the concept for about six years, including through an AusIndustry Researcher in Business collaboration with the Queensland University of Technology. James Cook University is now conducting scale model tests with bridge girders and sensor technology. JCU senior lecturer, infrastructure and design, Dr Rabin Tuladhar said engineering undergraduates Carl Pinkstone and Joel Scott were capturing data before and after inflicting damage on the girders and analysing that to see how it reflected severity and location of the impact.

“It is a small-scale experiment to verify the procedure of structural health monitoring using the sensors,” he said. This research project matched well with JCU’s engineering direction, as it geared up for the introduction of a new Bachelor of Engineering program in the Internet of Things next year, Dr Tuladhar said. “We would be looking in the next stage to involve some electrical engineering and the wireless communication side of things as well,” he said. The system had the potential to replace industry’s reliance on subjective, time-consuming visual inspections with an automated

process that provided more quantitative, reliable data, he said. Dr Pandey said the communications side of the bridge monitoring system was already tested and proven. “It has evolved to where we can remotely reprogram the data logging system. Also, now in the research project we have developed a web user interface so the end user could log into the portal and see what is going on at any time,” he said. Rockfield has been collaborating with National ICT Australia also on projects involving sensor technology, including systems to detect damage to mining equipment.

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Livingstone Shire Council is investigating funding options to help cover the estimated $23 million cost to repair and upgrade the Scenic Highway at Statue Bay on the Capricorn Coast. The area has suffered significant landslide and rock fall events since 2008, most recently during Cyclone Marcia, and the northbound lane remains closed to traffic. After engaging engineering firm Hyder Consulting, council recently received a concept design report outlining four reconstruction options. “Council has endorsed the recommended option which includes using a combination of rockbolts, shotcrete and trimming the existing road

batter to shore up the upper slopes of the embankment and prevent further landslips,” chief executive officer Justin Commons said. “This plan also includes lowering the road level, widening the embankment on the sea side of the road and the construction of a retaining wall further down the slope.” The council is preparing a submission to obtain Natural Disaster Recovery and Relief Arrangements (NDRRA) funding for the project. “We estimate a project of this scale will take around 18 months to complete so we want to get actual construction underway as soon as practical,” Mr Commons said. More at www.livingstone.qld.gov.au


23

Queensland Industry Advocate | September 2015

ROADS March start for western job Work on the $25 million Flinders Highway Upgrade Project is expected to start in March next year, and be completed by June 2017, weather permitting. A Department of Transport and Main Roads spokeswoman said the upgrade would enhance and widen sections of the Flinders Highway, between Hughenden and Cloncurry. “We are undertaking a procurement assessment, to determine the best value for money delivery options,” she said. The Australian Government has committed $20 million towards the project under the National Highway Upgrade Program and the Queensland Government will fund the remaining $5 million. Meanwhile Calibre Consulting is preparing the design for upgrade work on Ramsay St, Cloncurry, which is expected to be completed by the end of the year.

Warrego Highway update Work on the Warrego Highway, Toowoomba to Oakey Stage 1 upgrade between Nugent Pinch Rd and Charlton is on track for completion by mid-2016, according to principal contractor Seymour Whyte. The $44 million project involves upgrading a 5.7km section of the road to a four-lane standard highway, including the installation of traffic signals at Gowrie Junction Rd and O’Mara and Stegers roads, a grade separated interchange at Troys Rd (Charlton Connection Rd) and a U-turn facility at Nass Rd. It is part of a $635 million package of 15 projects to upgrade the Warrego Highway between Toowoomba and Miles. The Department on Transport and Main Roads is undergoing a procurement process for the BrigalowChinchilla Upgrade to widen 11km of the highway on the eastern approach to Chinchilla. Construction is expected to start in late 2015. The next project will be Jingi Jingi Creek Upgrade, 53km west of Dalby, with construction expected to start in mid-2016. More at https://www.qld.gov.au/transport/projects/ warrego/

The department spokeswoman said a tender was expected to be released for construction by the end of September.

Seymour Whyte leads overhaul Seymour Whyte Constructions has won the main contract for a $45 million upgrade of the Bruce Highway at Yellow Gin Creek, 80km north of Bowen. Construction of the bridge upgrade is expected to commence in September and to be completed in late

Southern Access in design Detailed design work has started on a $58 million project to widen 2.1km of the Bruce Highway south of Cairns from four to six lanes. The Cairns Southern Access Corridor—Robert Rd to Foster Rd project is intended to reduce delays and improve safety for the thousands of motorists who use the road each day. Federal Member for Leichhardt Warren Entsch said construction on the upgrade was expected to start next year after the wet season and be completed in late 2017. The project is expected to create about 140 direct jobs.

2016. Federal Member for Dawson George Christensen said the Liberal National Government was doing what it could to bring forward projects in its $6.7 billion commitment to fix the Bruce Highway. Seymour Whyte also recently won the construction contract for the $74.7 million Coomera Interchange upgrade project, jointly funded by the Queensland Government, the Australian Government and Scentre Group.

Roundabout work kicks off Vassallo Constructions has been awarded the contract to build a new dual-lane roundabout at the intersection of the Bruce Highway and Hay Point Rd. Federal Member for Capricornia Michelle Landry said the new 80m-wide roundabout would improve safety for motorists. “The needs of the road freight industry were carefully considered during the project’s design phase, with a particular focus on ensuring heavy vehicles can access the two coal terminals without causing major

disruptions to normal traffic flows,” she said. The $15 million project is expected to be completed by mid-2016.

Laser survey for Bundy region Bundaberg Regional Council has engaged Pavement Management Services to undertake a complete assessment of the region’s roads using laser technology. “This technology will identify every rut and crack along our 2000km sealed road network,” roads and drainage portfolio spokesman Cr Tony Ricciardi said. “The need for this program, which allows council to stay up to date with asset management planning, was identified as works were being progressed through Natural Disaster Relief and Recovery Arrangements from State and federal Governments.”

BMD on Marlborough project BMD Constructions has been awarded the contract to construct new south-bound overtaking lanes on the Bruce Highway about 10km south of Marlborough. Work began late August on the $7.9 million project, with the new lanes expected to be open to traffic in 2016.

Geotechnical challenges AECOM expects to complete detailed design work within two years for the Mackay Ring Rd. AECOM project director David Derrick said the majority of the work would be delivered through the AECOM Mackay office, with support from the AECOM bridge team out of Brisbane and a number of other local consultants and specialist sub-consultants from Brisbane. Mr Derrick said the project included complex bridge work over the Pioneer River and Fursden Creek. “Past projects have found geotechnical conditions across the Pioneer River to be very challenging,” he said. “The project team is excited and confident we can develop a solution that will mitigate these construction risks whilst providing cost effective solutions.” Construction of the $560 million project was programmed for mid-2017, and it was likely to take about two and a half years, he said.

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24 ROADS

Queensland Industry Advocate | September 2015

Cape supply chain opportunities Civil Mining and Construction has been awarded the tender for the Mein Deviation project to seal 29km of the Peninsula Developmental Rd south of Coen in Cape York. Infrastructure and Regional Development Minister Warren Truss said the project formed part of a $135 million early works package on the Peninsula Developmental Rd being funded as part of the $260.5 million Cape York Region Package. “Civil Mining and Construction were awarded the contract following demonstration of its capability to include

employment and training opportunities for Indigenous businesses and individuals within the area,” Mr Truss said. Queensland Transport and Main Roads says it is planning three more projects on the Peninsula Developmental Rd this calendar year, two between Laura and Coen and one between Coen and Weipa. “The tender process for these projects is still being determined,” a department spokesman said. CMC business development manager Kevin Mills told Queensland Industry Advocate the company was open to inquiries from local business regarding

supply opportunities on the Mein Deviation job. “Our normal business model is that we become part of the local communities in which we are working and we would use local suppliers and local subcontractors as much as is practical,” he said. Federal Member for Leichardt Warren Entsch recently welcomed the signing off of the Mein Deviation contract to ensure the work commenced as soon as possible, but said he was disappointed that local contractors hadn’t been given the opportunity to tender. “I will continue to lobby that local

businesses are given the opportunity to be the primary contractors on future works in accordance with our intent to maximise the benefits within our local communities where this work is occurring,” he said. Last year 34km of the Peninsula Developmental Rd was sealed with funding provided through the Cape York Region Package. More information on Queensland roads projects at: https://publications.qld.gov.au/ dataset/queensland-transport-and-roadsinvestment-program-qtrip-2015-16to-2018-19

Bridge build on track to meet deadline BMD Constructions is forging ahead with the $40 million Bohle River Bridge upgrade project at Townsville in a construction effort it says has achieved 95 per cent local industry content. “There’s certainly enough skill in Townsville across tradesmen and tradeswomen to build bridges and projects like this,” project manager Glen Langfeldt said. “At the moment the only two specialist contracts we’ve had to outsource (outside NQ) have been to do with the piling.” BMD Constructions began work in April on the project, which includes a five-span bridge across the Bohle River and a six-span bridge across the overflow area which is often flooded when the river level rises. “It’s a 2km stretch of road upgrade across the Bohle River on Dalrymple Rd and includes an intersection upgrade to the Greater Ascot housing development

(the Greater Ascot Avenue intersection),” Mr Langfeldt said. Mr Langfeldt, who is regional construction manager for BMD, said the Townsville City Council had given the community an expectation of a mid-2016 completion date and the project was currently tracking ahead of schedule. He said the biggest challenge the team had faced was the need to push ahead early on to minimise risk during the wet season. “So the challenge has been really to co-ordinate the works and align trades to ensure a quick start and a well-managed build,” he said. BMD celebrated its 20th year in Townsville last year, having established a permanent presence in NQ in 1994 when it was awarded Stage 42 of Delfin Property Group and Defence Housing Australia’s Willow Gardens Estate. “We consider ourselves very

Material facts The Bohle River Bridge project involves: • 37,000 tonnes of cement modified pavement • 209 bridge piles • 451 pre-cast deck units • 4500 cubic metres of concrete • 220,000 tonnes of imported material for embankments

much local and one thing we pride ourselves in is local content from suppliers and subcontractors,” Mr Langfeldt said. The Bohle River Bridge project is using supplies and services from local Holcim

quarries, Humes in Bohle, Arid to Oasis Traffic Solutions, Soil Engineering Services in Bohle, Artcraft and Vision Surveys. ARC Townsville is supplying steel, the local Boral business is carrying out asphalt sealing and Achieve Group is providing

additional labour. Mr Langfeldt said the Townsville City Council project was funded with federal, state and local government money. “It has created a good 100 jobs in the local area and secondary jobs offsite,” he said.


25

Queensland Industry Advocate | September 2015

TRAINING

Beware the shonks make sure they are allowed to deliver the course you want to do.

Queensland training providers have been put on notice to be aware of their obligations under the Australian Consumer Law when signing up students and delivering courses. Training and Skills Minister Yvette D’Ath said Queensland had a high quality vocational training sector, however the availability of government subsidies also made the industry attractive to shonks looking to make a quick buck. The Queensland Office of Fair Trading had received reports of training providers targeting vulnerable consumers by offering free tablet

computers in exchange for personal information, then using those details to sign the person up for a course and claim a government subsidy, she said. “Reports also suggest marketers are approaching job-seekers outside Centrelink offices, attempting to sign them up for training courses they don’t need, won’t be able to complete or that won’t enhance their prospects of finding work,â€? Ms D’Ath said. Before signing up to courses, consumers should: • Check the training provider is a Registered Training Organisation with the Australian Skills Quality Authority and

• Check the training provider can offer loans from the Commonwealth Government’s Higher Education Loan Program. Loans for vocational education and training are called VET FEE-HELP loans. • Shop around and compare training courses on the basis of cost, length, course content and likely job opportunities. • Be wary of incentive offers or tactics designed to get you to sign up on the spot. Marketers and training providers are banned from offering incentives such as laptops or tablets to get you to sign up. • Read the contract very carefully, question anything you don’t understand and keep a copy of everything you sign.

ADVERTORIAL

NQ invests in quality regional training Building on an already solid success in its mission to build trade skills in the region by making quality trade training accessible for all, Tec-NQ has raised the bar yet again. Recently, as part of Round 4 of the Regional Development Australia Fund in 2014, the college was successful in obtaining $2 million of federal funding to build a Regional Training Accommodation Facility (RTAF) in Townsville, with Tec-NQ investing the rest of the funding needed to provide this facility. The development and construction of this facility will primarily focus on providing accommodation services to allow students from across regional Queensland to access its trade-focussed, school-based and full-time apprentice programs in Townsville. The facility is currently undergoing transformation and is expected to be ready by September. The student accommodation will allow students to access Tec-NQ’s awardwinning program. “We’re proud of the fact this project will be able to give students from the regions the opportunity to develop their trade skills while studying Year 11 and 12,� Tec-NQ CEO Tom Petterson enthused about the project. In the first example of this in action, Tec-NQ and Wilmar Sugar worked together to utilise Tec-NQ’s Regional Training Accommodation Facility, launching an eight-week “Apprentice Safe Start Program� in January, with 25 first-year Wilmar Sugar apprentices from various sugar mills throughout North Queensland utilising the facility. Mr Petterson said; “In the past Tec-NQ has had plenty of regional interest in providing short or long-term training options for apprentices; however accommodation has always been a problem. Under the Australian Government Community Development Grants Program we were able to secure and provide an accommodation facility that allows for this type of short-term regional training to occur. We’re really excited about what this will mean for training in the region.�

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26 TRAINING

Queensland Industry Advocate | September 2015

Award-winning skills commitment at Wilmar Consistency is the key to successful training across Wilmar Sugar’s North Queensland milling operations, according to manager, learning and development Tina Klekar. The company had kept up its training and development investment despite the battering sugar prices had taken in recent years, she said. Ms Klekar said Wilmar had spent about $2 million on accredited and non-accredited training courses at its eight mills in the Herbert, Burdekin, Proserpine and Plane Creek growing regions last financial year. “Essentially 100 per cent of our employees go through training at different levels of competency or skills-based training relevant to their roles,” she said. “We have also kept a strong focus on providing

career pathways for our younger generation through apprenticeships, cadetships, traineeships and graduate positions.” Wilmar’s training approach recently saw it named employer of the year at the North Queensland regional finals of the 2015 Queensland Training Awards (QTA), with the State winners to be announced on September 11. Ms Klekar said the consistency in Wilmar’s training commitment meant the ability to plan programs for advanced outcomes with a sense of security that they would continue. “It’s a big call to make when prices are the way they are and they’re looking for cost savings across the business,” she said. “It’s a very strong message back to the employees - we are still committed, we are still investing, we believe you are the

future of our business and that’s why we’re putting the money there.” Wilmar will take on 27 apprentices across North Queensland in 2016 and four people for its new operator traineeship program. “The apprentices have a Certificate III outcome and our new operator trainees will as well, with a combination of sugar and engineering skills, offering an additional career path option for young people,” Ms Klekar said. “The contract will run over three years.” Trainees and apprentices will be recruited in October through an assessment centre process. Wilmar offers apprenticeships in boilermaking, fitting and turning and diesel fitting as well as electrical trades.

Burdekin apprentice Shane Kennedy (left) and cadet Ben Smith.

Online delivery to meet tough economic times

Some courses for the coal industry are being offered in an online format.

Face-to-face training is giving way to online in the coal industry, as the industry explores less expensive ways to present government-mandated induction courses, according to registered training organisation AlertForce. AlertForce chief executive officer Brendan Torazzi said the advantages of doing theory training online included working at your own pace and the fact there was no travel involved. There were other cost savings for employers such as the initial cost of the course, Mr Torazzi said. “The momentum has shifted,” he said. AlertForce has taken up the challenge by providing its latest induction course for new employees in Queensland’s coal industry in an online-only format.

“The online program is comprehensive and in most ways more detailed than face-to-face training,” Mr Torazzi said. “The introductory price also represents a significant discount to current face-to-face offerings – important for coal producers faced with a fluctuating coal price and rising costs. “Practical skills are validated by a supervisor on the job.” AlertForce has also decided to offer refresher coal surface training this year in an online format following the success of a similar AlertForce offering to NBN Co workers employed on the national broadband network.

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27

Queensland Industry Advocate | September 2015

TRAINING

Site supervisor qualifications questioned A union safety delegate has raised concerns about increasingly brief courses being offered in competencies required to become a mine site supervisor. Industry safety and health representative for CFMEU’s Queensland Mining and Energy Division Greg Dalliston said some courses to achieve the competencies widely known as S1, S2 and S3 were being completed within 10-24 hours. “Most of the supervisors pick up their S1, S2, S3 competencies in less than half a week - in some cases not much more than a day and in a lot of those cases they are in a classroom, not on site looking at the mine systems,” he said. “I don’t believe (these courses) are adequate.” Mr Dalliston said he had raised the issue in his role on Queensland’s Coal Mining Safety and Health Advisory Committee, which had been trying to get SkillsDMC to review or change the relevant training package. SkillsDMC declined the Queensland Industry Advocate’s request for comment on the issue. Resources Industry Skills Association (RISA) chief executive officer Rod Ramsay also voiced concerns about the way some

trainers were delivering the units, coded RIIWHS301D, RIICOM301D and RIIRIS301D. “It was originally a five-day course when it started a few years ago, then it went down to three days and now one or two days,” he said. Mr Ramsay questioned the competency system, saying some people could have the background knowledge to be properly prepared through a quicker course while others would not. “Even though from a national training perspective it’s within the guidelines for them to do that (offer shorter courses), the outcome is the problem – do we have good outcomes or not?” he said. “In a lot of cases I don’t believe the quality is there, especially for someone in a supervisor’s position.” Mr Ramsay stressed that some registered training organisations were feeling pressure from the offerings competitors advertised and from mining companies who did not want to lose workers from site for extended periods. There was a range of acceptable practices in terms of how the competencies were delivered, both in course delivery and assessment, he said. Some RTOs were delivering in four or five days and setting students follow-up

across a range of sectors in the defined requirements. Apart from national strategic reviews it had the statutory position of open-cut undertaken. examiner, supervisors on open-cut “While Australia’s competencyoperations only had to be appointed based skills systems does not dictate by the SSE, with the relevant Act how long a training program saying they should be competent should go for, the Australian to perform the task assigned and Qualifications Framework does have the relevant health and safety include competencies. guidance on Mr Dalliston the length of argued that Most of the supervisors time different about 40 per qualifications cent of such pick up their S1, S2, S3 should take. All supervisors competencies in less than RTOs must did not have half a week - in some cases comply with adequate not much more than a day all aspects of technical the AQF,” he knowledge and Greg Dalliston said. National experience in standards the area they implemented are supervising. this year also mean RTOs must Then there was the question of ensure the amount of training the S1, S2 and S3 competencies they provide is consistent with covering the areas of accident the requirements of packages investigation, risk management and and VET-accredited courses and communications above worker/ enable each learner to meet the operator level, Mr Dalliston said. requirements for each unit of He was particularly concerned competency. about the safety implications and “RTOs that cannot demonstrate shortcomings in investigations into how they comply with these serious incidents as a result of these requirements may be subject to areas not being covered adequately. a range of sanctions including, Australian Skills Quality in serious cases, suspension or Authority chief commissioner cancellation of their registration,” Chris Robinson said ASQA raised Mr Robinson said. the issue of super short courses

Greg Dalliston CFMEU safety and health representative

assignments to be completed at work and submitted later, which would better meet benchmark process and effective outcomes. “Unfortunately, there is also a range of delivery processes that do not lead to effective outcomes for supervisors, and therefore may compromise safety in the workplace,” Mr Ramsay said. Mr Dalliston said his concerns related mainly to open-cut coal mines, as most supervisory positions underground involved statutory certificates and had better


28 LOCAL GOVERNMENT

Queensland Industry Advocate | September 2015

Geothermal interest heats up for councils Winton Shire chief executive officer Tom Upton

Winton may be leading the way for a raft of councils in the central west as it prepares to build a geothermal power plant within months to exploit the area’s hot artesian water. Project manager LGIS (Local Government Infrastructure Services) plans to start construction in February 2016 on the geothermal plant. “From about September we will help the council procure the people to construct the geothermal plant and the underground network they are going to use to distribute the power to council assets,” LGIS director operations Daniel Westall said. Winton Shire Council has earmarked $3.5million to develop the plant, which

is expected to save it about $400,000 a year in electricity costs. Mr Westall said other councils in the area were talking to LGIS about the possibility of harnessing their own hot bore water for energy. “We’re very optimistic of the future of this,” he said. “There’s huge scope in Queensland and the rest of the country to use the technology and provide solutions for councils.” Murweh Shire Mayor Denis Cook said the council was undertaking a feasibility study with LGIS into powering its facilities with a geothermal plant. Cr Cook said the community was at “the end of the line” for grid power and frequently

suffered brown-outs. Mr Westall said Winton was quite unusual in that a bore drilled for town supply accessed water at a temperature in excess of 80 degrees, which was ideal for the geothermal plant. In the case of other centres they were considering whether it would be cost effective to drill deeper to access hotter water than was presently coming from the bores, he said. “We’re talking with several other councils – Longreach, Murweh, Blackall-Tambo and others about the potential,” Mr Westall said. While councils were presently considering such schemes to power their own facilities, Mr

Westall said LGIS was talking to the State Government about the potential to feed into the Ergon network. “The Queensland Government is very interested in councils having a greater role in power supply and we’re talking to the Department of Energy and Water Supply regarding the possibility of using the existing network to power the whole community, he said. A Departmental spokesman told Queensland Industry Advocate the government was willing to work with LGIS and council to help identify the potential benefits the next stage in the geothermal project could bring.

Peak power partnering Mackay Regional Council will feed power into the Ergon Energy network from diesel generators in peak periods after formalising a Network Support Agreement to participate in the Mackay Empower program.

Under the terms of the agreement, the council will synchronise three of its diesel generators at Paget and Bakers Creek to provide power when required during peak usage times.

PentaCon takes over Western Downs Regional Council has awarded PentaCon the contract for the remainder of the Stage Two Chinchilla Trunk Drainage Scheme, after initial contractor RHA Australia went into liquidation. Works and Engineering Services spokesman Councillor Andrew Smith said the remainder of the works had an expected completion date of December 2015. “Council has allowed a total budget of $2.8 million for the Stage Two project, which includes the completion of the works left over by RHA Australia and will allow for Stage One of the Trunk Drainage Scheme to be linked, finalising the project,” he said.

“The government is supportive of localised renewable energy solutions and has asked the Queensland Productivity Commission to inquire into opportunities for local governments to have direct involvement in the supply of electricity through communitybased initiatives,” he said. Winton Shire chief executive officer Tom Upton said the council had spent 18 months looking into the geothermal proposal. “We’re confident there’s an economic case to do it, but it also ticks boxes in terms of innovation, green energy and reduction in carbon footprint, also in terms of improved power supply in the region,” he said.

Member for Mackay Julianne Gilbert (left), Mackay Mayor Deirdre Comerford and Ergon executive general manager network optimisation David Edmunds with one of the generators to be used in the Empower Mackay deal.

They will initially generate internally to take the site load off the grid and later in the year they will be configured to export into the grid. The move follows the council providing a letter of intent last year to market aggregator Velocity Energy to participate in the program. The Empower Mackay program is part of a suite of initiatives being undertaken by Ergon to keep power prices down by deferring expenditure on high-cost infrastructure. Executive general manager network optimisation David Edmunds said the agreement with Mackay Regional Council involved about 2.5MW equating to enough electricity to power around 500 homes when the network might otherwise be constrained. Mayor Deirdre Comerford said council was expecting to save about $40,000 a year.

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