September 2009 by The Mining Advocate

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Moranbah champion to defend title in local bout

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THIS EDITION • Mines meet on Isa private rail bid • Sunday trade win for mining communities • Rescue teams show class at EK Healy Cup • Shutdown shift brings Century safety gains

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NEWS

The Mining Advocate | September 2009

September 2009

3 Sunday trading win Moranbah’s major retailers have won the right to open on Sundays in a case that has set a precedent for mining communities, according to the National Retail Association. Now the retail body is advocating seven-day trading for Mount Isa in a case to be determined in December.

Cream of the crop

Top mines rescue teams from Queensland coal operations were put through their paces at the recent EK Healy Cup competition at Broadmeadows Mine near Moranbah. The best performers, including the winning team from Rio Tinto Coal’s Kestrel Mine, will now represent the state at a national competition in Lithgow, New South Wales in October.

7 Shutdown safety gains Century Mine staﬀ backed a winner when they came up with a strategy to change their maintenance outage schedule in response to a cost-cutting challenge from management early this year. MMG Century deputy general manager Karl Spaleck tells how the shift from four shutdowns per year to three has saved the lower Gulf zinc operation money and contributed to a reduction in injuries.

12 Roseby resurrected

Moranbah boxer Dan Cody plans a farewell fight on home turf after winning the Queensland lightweight boxing title in a recent Townsville bout – Page 3. (Action photos above and on the cover courtesy of Stephen Duffie, Wizpics Photography. Family photo by Erica Smith.)

FEATURES 6 Mount Isa Regional Capacity 10 Mackay Regional Capacity 14 Townsville Regional Capacity 16 Industry Update A comprehensive wrap of exploration and operations in Queensland and the Northern Territory.

Rising copper prices and an improved environment for project ﬁnancing has seen Universal Resources resume its eﬀorts to secure backers for the Roseby copper project in north-west Queensland.

18 Coal and Gas Update News in brief across the coal and gas industries.

In this edition The Mining Advocate talks to Universal managing director Peter Ingram about that company’s plans and checks on the status of existing copper projects where operations have stalled due to the economic downturn.

33 Uniting the workers Bob Boscacci retired recently from his role as Australian Workers Union Northern District secretary, ending a 28-year career as a union oﬃcial. He shares his memories of his time in the job and tells of the satisfaction of being able to improve the lot of individuals in the face of unfair treatment at work.

20 Between Shifts 24 North West Crane Hire 26 Safety 28 Building Mining Communities 34 SunWater 36 Queensland Nickel 41 Mount Isa Celebrates 85 Years

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Advertising booking deadline November edition: October 28 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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NEWS

September 2009 |

The Mining Advocate

Broad horizons A steel fabrication firm is filling multimilliondollar orders throughout Queensland and interstate from its base in Cairns. A far north Queensland address has proved no object to winning major contracts as far afield as Port Hedland and Newcastle for Cairns Steel Fabricators. The firm recently filled a $400,000 contract to supply 95 tonnes of heavy steel components for the CITIC Pacific Sino-Iron project in northern Western Australia. Cairns Steel Fabrications general manager/director Sean Adams said this had included runway beams, piling and crane support used in the construction of Port Hedland wharf facilities for the project. Mr Adams believed northern WA provided great opportunities that more Cairns businesses could be tapping into. “A lot of people may rule us (Cairns) out and think we’re too far north, too far away,” he said.

“But in these remote areas, the transport costs, in the scheme of things, are not a huge factor.” While the steel for the Port Hedland project had been loaded on to two supplied road trains, Mr Adams said the company usually used its own semitrailers to transport its products throughout Queensland. Cairns Steel Fabricators has a $6.5 million contract as part of the Boyne Smelters refurbishment in Gladstone. “We’re supplying 220 walkway platforms – 12m long by about 1.2m wide – and a lot of miscellaneous steel,” Mr Adams said “We can only get 10 (walkway platforms) to a truck – so that’s a lot of truckloads going down the highway. “We have been working on that since November last year

Industry is the winner out of a major investment by KSB Australia Pty Ltd which has recently opened a new pumps sales and service centre in Townsville. Townsville Branch Manager Bret Kendall dall and Service Manager Ces Honeyball have over 35 years experience between them in the pump industry. Both have established ed relationships and contacts across all industries.

Cairns Steel Fabricators general manager/director Sean Adams.

and it will probably go through until about February next year.” The company also has a $2.9 million contract as part of the Abbot Point Expansion Project outside Bowen, following on from a similar supply contract with the same builder ( John Holland) on the recently completed Dalrymple Bay Coal Terminal expansion at Mackay. “We have been supplying the conveyor galleries – structures

Photo: Romy Siegmann

that are 24m long, 5.5m wide and 4m high,” Mr Adams said. Mr Adams said Cairns Steel Fabricators, which employs 135 workers and has been running since 1979, ran on a 50/50 mix of mining-related jobs and other work. “We have a $9 million contract to supply and erect (steel) for the Cairns airport redevelopment and have been working at Lavarack Barracks (in

“KSB Australia now provides its high quality pumps with an increased capacity meaning fast tracked after-sales service and spare parts at short notice,” he said. “We also offer consulting and engineering across the range of applications.” The new centre is ultra modern, and the workshop is equipped with brand new state of the art machinery. The new branch will help in generating more employment for the area and provide local expert service to the industries in the North. Townsville and North Queensland in general is an important area for the company in terms of the growing infrastructure which includes all industries, Mining, Water and Waste Water, Industrial, Energy and Building Services and new facility will be a big asset to local industry said Mr Kendall.

Townsville) for the last 25 years,” he said. “We do a lot of shopping centres, industrial and commercial work. We try to stay as diverse as possible so we can ride the ups and downs.” The secret behind winning contracts such as the Boyne Smelters and Abbot Point work was reputation and a focus on quality product and customer service, he said.

The big point of difference for customers is that KSB manufactures and supports its own products, says Mr Kendall. “We have pride in our products which is supported with local knowledge and networks.” “All customers can enjoy our superior standards as we can service maintain all makes of pumps and accessories,” he said. The KSB Group has a presence on all five continents with its own sales and marketing organisations, manufacturing facilities and service operations. With a workforce of approximately 13,000 worldwide, the Group generates a total sales volume in the region of 2 billion. Mr Kendall extended an open invitation to all industry to inspect the new facility at 780-786 Ingham Road, next the Mack Truck facility. For further information, please contact KSB Australia Pty Ltd Bret Kendall - Mobile: 0438 127 230

KSB Australia Townsville branch manager Bret Kendall an Service Manager Ces Honeyball “Our product has applications in every facet in industry where pumping in required. Our staff have an appreciation of engineering needs across all demands of industry be it underground mining or others facing extremes of weather like that in the last wet season.

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NEWS

The Mining Advocate | September 2009

Sunday trade win for coal town A decision on shopping hours for one Bowen Basin community carries significance for other mining centres, a peak industry body says. Moranbah residents are enjoying the beneﬁts of a seven-day trading win that has set a precedent for Queensland mining communities, according to the National Retail Association. The Queensland Industrial Relations Commission decision allowed the coal town’s major retailers, Target and Coles, to open on Sundays from late August. “That means that essentially all retailers are now able to exercise the choice as to whether to open on Sundays in Moranbah,” National Retail Association executive director Gary Black said. “It’s quite a signiﬁcant decision and a decision which was unprecedented. “(The Moranbah case) was

argued on very special grounds and I think it addressed a particular need which is replicated across some other communities where you have factors such as relative isolation, major retailers faced with closure when they would like to open and a community that has few other options.” Mr Black said Moranbah residents wishing to purchase groceries on a Sunday had previously faced an hour-and-ahalf round trip to Dysart, which has an independent supermarket, or to more distant centres. He said also a key factor in the supporting case for Sunday trading was the work shift patterns that dominate mining communities. Mr Black said the mining city of Mount Isa in north-west

Mine backing sought for private rail scheme A private scheme to take over and upgrade the Mount IsaTownsville rail line has reached a crucial point, with plans for a mid-September meeting with mining companies to help nut out bid details. Australian Transport and Energy Corridor (ATEC) aims to enlist several mining companies as partners in its $4 billion proposal to buy Queensland Rail’s (QR’s) northwestern railway, rebuild it and extend it to Abbot Point, outside Bowen. Mount Isa business identity Albert Hakfoort - an ATEC director - said Xstrata, Incitec Pivot, Legend International Holdings and Ivanhoe Australia were among the parties invited to a meeting to formulate a proposal to take to the State Government. “We have a very successful template and that’s the Surat Basin rail,” Mr Hakfoort said. “In conjunction with (mining companies), we believe we can upgrade that (Mount IsaTownsville) line. “We would immediately start putting in extra bypass lanes and just make it more eﬃcient.” Mount Isa to Townsville Economic Zone (MITEZ) chair David Glasson said that group was keen to hear more about the ATEC plan. “I think it’s going to bring some issues to the forefront (regarding the standard of the region’s rail service),” he said. “Our concern is how it would be funded.” In the absence of a submission from ATEC, Queensland

Transport Minister Rachel Nolan had little comment to oﬀer on the issue. “If ATEC wants to make an unsolicited proposal to government, that is a matter for them. No proposal has been received,” a ministerial spokeswoman said. ATEC, led by chairman Everald Compton, is perhaps most widely known as the proponent of the Australian Inland Rail Expressway from Melbourne to Darwin. The company is also part of a joint venture to develop the Surat Basin Rail Project, linking Toowoomba to Gladstone, and has entered a memorandum of understanding with Minemakers to look into the development of a rail spur from its Wonarah phosphate deposit in the Northern Territory to Tennant Creek. Mr Hakfoort said the poor condition of the Mount IsaTownsville rail line was holding the north-west mineral province back and QR did not have the funds to address its problems. QR recently released its Mount Isa System Rail Infrastructure Master Plan, identifying the $180 million upgrade of the Eastern Access Corridor Railway at the Port of Townsville as an essential step towards building capacity on the line. The current capacity is 7.5 million tonnes per annum. The master plan showed that a ﬁve-million-tonne increase would come at a cost of approximately $788 million, while an increase to 20 million tonnes per annum would cost $1.35 billion.

Queensland also had a sevenday trading application pending which was due to be heard in December. That application has been submitted by the National Retail Association. Mackay and Rockhampton also have matters pending. Mount Isa Chamber of Commerce president Brett Peterson said that city’s biggest industry – mining – ran seven days a week and it would be good to see trading hours fall into line with that pattern. “I’m all for seven-day trading,” he said. The Moranbah-based deputy

mayor of Isaac Regional Council, Roger Ferguson, said the mining lifestyle was a key factor in that council’s decision to throw its full support behind the Moranbah seven-day trading application. “We have a lot of shift workers and there has to be an availability of seven-day trading for those people,” he said. “We had people living in our community who were driving to Dysart and Clermont, where they have IGA stores open on the weekend, and doing shopping because we don’t have the availability of a corner shop in Moranbah. “We’re trying to keep the

money in our community and keep people oﬀ the road if we can – it’s just about progress.” The town’s largest employer, BHP Billiton Mitsubishi Alliance (BMA), also supported the application Coles media relations manager Jim Cooper said Sundays had been among the strongest trading days each week for the chain’s Moranbah supermarket since the new shopping hours were implemented. Target Moranbah store manager Brett Marsten said he had been pleased by customers’ positive response to Sunday trading.

Title-fight triumph for Cody Meet Queensland’s new lightweight boxing champion. In his own words, Moranbah Mine Assist manager Dan Cody “had a cracker” when he came up against Townsville boxer Leigh Lindgren recently and came away with the title. Now the 33-year-old father of three plans to end his boxing career after one more fight – a contest to take place in his home town on September 26. His bout will be part of a major mining unionsponsored professional and amateur fight night, with a number of fighters from New Zealand flying in for the event. While he would have hung up the gloves regardless of the result of his most recent fight, Cody said it was great to go out on a high note. “There are mixed feelings – it’s been 16 years of my life, so it was definitely a hard decision,” he said. “But I don’t need to push my body like that anymore – I’m happy to step back and let the younger guys keep working at it.” He said he would be concentrating more time on family and work from now on, but still planned to keep training and coaching young boxers in Moranbah. Cody took on Lindgren for the Queensland lightweight title during a Townsville fight night organised by his opponent’s brother, Tony Lindgren of RMK Promotions. The promoter was full of praise for Leigh’s opponent. “Dan’s been around a long time and has never ducked anyone – he’s fought the best in the country and often fought them on short notice,” Mr Lindgren said.

Dan Cody with his sons Will (kneeling) and Blake.

“It’s either take those fights or not get fights at all if you live in the country. “I said to Dan after the fight – and Leigh said the same – if anyone deserves a Queensland title it’s Dan Cody. “He’s never ducked anyone and he’s a really nice guy out of the ring – a true gentleman and sportsman.” Cody was rated No. 9 nationally in the lightweight division going into the fight while Lindgren was ranked No. 7 in the weight division below. “Dan was just too strong on the night,” Mr Lindgren said. “It was a close fight until round five, when Dan actually put Leigh down.” Lindgren, fighting professionally in the lightweight division for the first time, was knocked to the

Photo: Erica Smith

ground twice with body blows before his camp threw in the towel. Cody will be defending his Queensland title when he takes on Mareeba-based fighter Damon Eales during the Moranbah Boxing Club fight night. “Damon and his coach have issued a formal challenge so, we took them up on it,” Cody said. “He thinks he can win, we think we can win... He is going to be a real tough fight. “We want to put on a good show here in Moranbah and finish off with a good hard battle.” That fight will be one of two professional bouts alongside a strong line-up of amateur contests during the September 26 event, sponsored by the CFMEU.

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NEWS

The Mining Advocate | September 2009

Shutdown shift for IPL A joint maintenance outage is on the cards for Mount Isa in the first quarter of 2010 for two of the region’s largest mineral operations. Incitec Pivot has postponed a scheduled October maintenance outage at its north-west Queensland facilities to align its major works with Xstrata, which has flagged plans for a March copper smelter shutdown. The companies have previously timed their major three-yearly plant overhauls to coincide, however Incitec Pivot (IPL) was prepared to go it alone this year after Xstrata announced it was deferring its work beyond 2009. The shift came in August, when IPL shutdown manager Dan Miller said that company was notified that Xstrata was preparing for a March 2010 shutdown date. “It’s very beneficial to align the Xstrata and IPL shutdowns,” Mr Miller said.

“Obviously it’s better for the environment because we take Xstrata’s oﬀ-gas and it’s better for both businesses, because we work together as a rule.” IPL’s Mount Isa acid plant takes sulphur dioxide gas from the Xstrata copper smelter to convert to sulphuric acid required in its fertiliser manufacturing operations. The last joint shutdown in 2006, when Xstrata Mount Isa Mines carried out a $23 million copper smelter rebrick and maintenance program, stretched local accommodation to the limit as contractors ﬂooded the northwestern city. Mr Miller said accommodation was likely to be squeezed again during the 2010 event. Mr Miller conceded that

IPL shutdown manager Dan Miller at the Mount Isa acid plant.

postponing the outages at IPL’s Mount Isa acid plant and Phosphate Hill mine site after months of preparation would involve both cost and inconvenience to the company. “But we feel the beneﬁts to both businesses (of running the shuts together) exceeds the downsides,” he said. “We’re still targeting an October 1 readiness for the shut – then we’ll put the shutdown on the shelf, get our people doing other work and remobilise

in January to get ready for the execution.” IPL plans a month-long staggered schedule of works, now expected to involve 300 to 350 outside contractors at each site in addition to IPL teams. Xstrata Copper North Queensland announced early this year that it would defer its 2009 scheduled major rebrick of the Mount Isa copper smelter, with chief operating oﬃcer Steve de Kruijﬀ stating that the company was committed to ensuring its

Photo: Roslyn Budd

North Queensland operations remained sustainable during challenging economic times. “That’s why going forward, we are taking a measured approach through working collaboratively with all our employees, contractors and suppliers in identifying opportunities and synergies to reduce costs,” he said. An Xstrata Copper spokeswoman said the company had no further update to provide at this stage regarding its copper smelter rebrick plans.

Top rescue teams battle for EK Healy Cup A rescue team from Rio Tinto Coal’s Kestrel Mine near Emerald has taken top honours at this year’s EK Healy Cup. The Kestrel team will represent Queensland at the national competition in Lithgow, New South Wales, in October along with teams from the Crinum, Oaky No. 1 and Moranbah North coal mines. Queensland’s top four for 2009 have big shoes to ﬁll – following the success of a Moranbah North team that retired undefeated after winning the national rescue contest three years running and claiming an international title in Reno, Nevada last year. However chief assessor for the EK Healy Cup competition, Queensland Mines Rescue Service (QMRS) operations manager Lindsay Creighton, believes the new Moranbah

North team and the other 2009 winners are of similar calibre. Mr Creighton trains rescue teams for QMRS and will assist Queensland teams in their preparations for the national underground coal rescue competition. He said he was hoping to see a whitewash of their competition from Tasmania and New South Wales, a feat that would require Queensland claiming the top four places. “We’ve had 1, 3 and 4 before, but we’ve just fallen short (of taking all places),” Mr Creighton said. The 2009 EK Healy Cup competition was held at BMA’s Broadmeadows Mine, north of Moranbah, on September 3. The competition pitted last year’s top four EK Healy Cup teams – Moranbah North,

Winning Kestrel team members - (back row) Gianni Storti, Mick Walther, Shane Cook, Derrin Powell, Jason Kachel, (front row) Richard Cooper and Rod Graves.

Broadmeadows, Crinum and Oaky No. 1– against the top four performers from the 2009 QMRS Memorial Cup. Those teams included volunteer rescue personnel from Oaky North, Grasstree, Kestrel and North Goonyella mines. Mr Creighton said the EK Healy Cup competition included a theory component and two underground exercises, each including multiple skills tests. The assessors were pleased with

the overall performance of teams, who had to deal with a number of distractions built into the exercises, he said. “We’re very conﬁdent that they will perform very well if asked to do so in a real event – and that’s what we’re trying to achieve, the competitions should really reﬂect how we would operate under real circumstances,” he said. The Matt Best Memorial Shield for best captain in the competition went to Andy Neville

from North Goonyella mine. Jason Kachel from Kestrel mine and Oaky No. 1 team members Leith Luckel and Trent Griﬃths were joint winners of the Chief Inspector’s Cup for best theory paper. • The Northern Territory Mines Rescue Competition and the Queensland Mine Rescue Challenge were both suspended this year - casualities of the global ﬁnancial crisis and its impact on the mining industry.

New mine stirs dust debate Concerns about dust pollution in Moranbah have prompted the coal miners’ union to seek a comprehensive monitoring scheme measuring the combined eﬀect of mining operations within 40km of the town. The CFMEU has lodged a submission as part of the environmental impact statement process for BMA’s proposed Caval Ridge mine. The mine plans also sparked two recent public meetings, attended by more than 140 people. CFMEU Mining and Energy Division senior vice president Stuart Vaccaneo said Aquila Resources’ nearby Isaac Plains operation was already creating dust complaints, so plans for another mine within 6km of Moranbah had generated increased concern. The union wants BMA to commit to continuous monitoring at Caval Ridge and set up a scientiﬁcally-based Trigger Action Response Plan to control activities that could impact on near neighbours, including halting particular operations in unfavourable conditions. It wants similar conditions placed on Isaac Plains and recommends that all current and

proposed operators of mines within a 40km radius of the town commit to a monitoring scheme to provide data on the cumulative impacts in terms of dust, noise and vibration. A BMA spokeswoman said the company was committed to the long-term monitoring of the impacts of its operations, including detailed air quality monitoring. “The details of this monitoring will be included in the supplementary Environmental Impact Statement (EIS) for the proposed Caval Ridge mine project,” the spokeswoman said. BMA had agreed to a one-week extension to the consultation period for the draft EIS for Caval Ridge to encourage all interested stakeholders to prepare submissions. “BMA understands that continued mining growth has the potential to impact on local communities and our stakeholders, and we are committed to conducting an open and transparent engagement process about our growth plans in order to help us understand and minimise potential impacts on the community,”the spokeswoman said.

Part Of The Solution

September 2009 |

The Mining Advocate

NRA receives business award

NRA directors Des Bolton, Neil Boland and Tim Anderson with Sensis chief executive officer Bruce Akhurst.

NRA Environmental Consultants has been recognised in the 2009 Telstra Business Awards for its groundbreaking work to put environmental issues on the agenda.

“Our success and our reputation are founded on scientific expertise, personalised service and developing solutions that work,” Mr Boland said.

The independent consultancy – with offices in Townsville and Cairns - took out the Sensis Social Responsibility Award for demonstrated leadership and contribution by a Queensland business to the environment, people, education or the community.

“Our goal has always been to make a difference.” When NRA was established 25 years ago to promote the sustainable management of resources, its founders were considered eccentric.

“We are proud and excited to have won the Sensis Social Responsibility Award at the state level,” NRA director and principal scientist Neil Boland said.

“It was not until the mid 1990s that environmental management gained sufficient legislative support for attitudes to change and natural resource management became the accepted discipline it is today,” Mr Boland said.

“The Telstra Business Awards have allowed us to focus on and celebrate our achievements.”

“The company predates today’s State and Commonwealth environmental regulatory agencies.”

An innovator in the arena of environmental services, NRA provides independent specialist services in environmental regulatory compliance and the management of natural resources throughout Australia and the Asia Pacific region

Telstra chief executive officer David Thodey described the Telstra Business Awards, now in their 17th year, as Australia’s pre-eminent national awards program for small and medium businesses.

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Mount Isa Regional Capacity

The Mining Advocate | September 2009

Safety gains at Century A tweak in the timing of the zinc mine’s maintenance outages has produced good results, writes Belinda Humphries. A shift in shutdown scheduling has saved Century mine about $2 million this year and delivered unexpected safety benefits. The north-west Queensland operation moved from four shutdowns per year to three after management issued a “business improvement challenge” to generate cost-cutting ideas at the height of former owner OZ Minerals’ financial struggles. MMG Century deputy general manager Karl Spaleck said the strategy had worked well, with successful outages completed in February and July this year. The operation is now gearing up for its final shutdown for 2009 - a $2.4 million maintenance program planned to run from November 10 to 13 at the Lawn Hill mine site and November 14 to 17 at the Karumba dewatering facility. “It’s all working perfectly,” Mr Spaleck said. “Then there’s the safety aspect – that’s what has blown us away. Mr Spaleck said the Lawn Hill and Karumba sites had recorded just one first-aid injury during the past two maintenance outages. This compared to an average of four first-aid injuries recorded during each of the four shutdowns in 2008 – a result Mr Spaleck described as disappointing. He said the longer period between shuts this year meant

SHUTDOWN SHOPPING LIST Workers on site during the four-day shutdown at MMG Century’s Lawn Hill site in July consumed: 1200 litres of milk 900 loaves of bread 5000 eggs 200kg of bacon 600kg of potatoes 400kg of apples 400kg of oranges 30 extra-large pumpkins 300 chickens A quarter of a steer (180kg of beef ) 160kg of sausages 200 litres of gravy 200 litres of tomato sauce 200 litres of ice cream This was about twice as much food as the site workers would usually go through, MMG stakeholder relations officer Jillian D’Urso said.

the team had time to better plan each outage, aiding safety as well as project eﬃciency. Mr Spaleck said also a sitewide focus on safety leadership meant MMG Century’s safety team was now involved in shutdown planning and set stringent performance and supervision targets. “Our general manager ( John Lamb) also meets with shutdown crews to discuss our

Report lays out region’s long-term energy options The State Government has opened the doors to all comers in the challenge to meet northwest Queensland’s growing energy needs. A report released recently mapped the options for local power generation or for a highvoltage transmission line to connect the north-west to the national grid. Queensland Treasurer Andrew Fraser said the Sims Review had recommended a competitive process during the next 12 months for proponents to bid for a long-term energy solution for the region. “The review found that the numbers are too close to call on the best energy solution for the north-west, so we’re putting all options in process,” Mr Fraser said. “One of the big barriers is the high bidding costs facing the proponents of the transmission line, so we are prepared to reimburse part of the costs of a feasibility study. “The main options are to

continue generating electricity locally or to connect the region to the national electricity grid. “All options have advantages and disadvantages so we expect to see industry working with all parts of the supply chain, as well as seeking input from the community, to develop a preferred solution.” The review was commissioned by the State Government and the Queensland Resources Council (QRC). QRC chief executive Michael Roche described removing the energy security shackles from mineral exploration and development in the north-west as a national interest priority. “The Sims Review has mapped out a process for the region’s huge mineral potential to be realised,” he said. “I’d like to thank all the QRC members who opened their books to the review and provided the data that allowed (consultant Rod) Sims to conﬁdentially examine the commerciality of each energy supply proposal.”

A giant hydraulic hammer moves jammed liner bolts from the SAG mill during the July shutdown at MMG Century Mine.

commitment to safety,” he said. MMG Century brings in about 200 extra contractors for each of its shutdowns. Mr Spaleck said the company drew on the same labour hire companies for each shutdown. “We try to use as many of the same people as possible, mainly because of all the inductions and safety training we give the guys,” he said. Mr Spaleck said the company’s reliability studies had proven it could extend the running time of some of its key equipment by 30 per cent without aﬀecting performance. However it could not take that

out to 50 per cent (ie reducing shutdowns to twice a year only). “We haven’t reduced the (overall) hours – each shut is a bit longer,” Mr Spaleck said. The November shutdown will include the annual service of Century Mine’s SAG (SemiAutogenous Grinding) mill motor. An expert maintenance crew from ABB, the motor manufacturer, will be among the contractors ﬂying in for the shutdown. Work at the Lawn Hill mine site will be followed by a maintenance outage at MMG Century’s Karumba dewatering

facility, where extensive work is planned on the concentrate drier. The company allows 72 hours to elapse between the start of the shutdown at Lawn Hill and any outage at Karumba. This enables any mineral concentrate in the slurry pipeline between the sites to reach its destination before the dewatering facility goes oﬄine. Mr Spaleck said MMG Century’s 2010 shutdown schedule would follow the same pattern as this year, with work conducted in the second week of February, the second week of July and the second week of November.

New networking scheme Mining supply businesses in the Mount Isa region are being urged to tap into a new networking scheme linking communities across outback Australia. Mining services is among ﬁve key industry categories targeted under the Desert Knowledge Australia Outback Business Networks Project. The project, a $10 million initiative over three years, aims to connect small and medium-sized businesses across desert Australia. It covers nine regions based around the centres of Mount Isa, Tennant Creek, Alice Springs, Longreach, Broken Hill, Port Augusta, Kalgoorlie-Boulder, Geraldton and Port Hedland. Mount Isa-based network development oﬃcer Jo Culbertson said the project helped businesses share information, including trouble-shooting advice stemming from their experiences operating in a similar environment. “What we’re trying to

Jo Culbertson Desert Knowledge Australia Outback Business Networks network development officer

do is make cross-border connections and also to assist people in developing initiatives that come out of those business networks,” she said. Mrs Culbertson said the networking project could help businesses band together to increase opportunities, as it had in the pilot project

when ﬁve small engineering companies in Broken Hill collaborated to form a new company - Alliance Engineering - to bid for larger contracts than they could individually attempt. This alliance then collaborated on projects with businesses in other regions, including Alice Springs and Mount Isa. Mrs Culbertson is calling on north-west Queensland businesses involved in the areas of mining services, sustainable building, tourism, creative industries and local produce to join the project’s business database. Mrs Culbertson’s position is hosted by the Mount Isa Chamber of Commerce in partnership with the Queensland Department of Employment, Economic Development and Innovation. Businesses interested in the Desert Knowledge Australia Outback Business Networks Project can contact her on (07) 4743 9881.

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NEWS

The Mining Advocate | September 2009

Push for clean energy funding Two groundbreaking Queensland projects are in line to receive Federal support as the march to advance ‘greener’ technologies continues. The Queensland Government has nominated the ZeroGen and Wandoan low-emission coal power projects for funding under the Commonwealth’s $2 billion Carbon Capture and Storage (CCS) Flagships Program. It is also seeking funds for an accelerated program to identify and assess suitable sites for the long-term safe storage of carbon dioxide in Queensland – focusing on the Surat, Bowen and Eromanga basins. Queensland Resources Council chief executive Michael Roche said securing the

funding would be an important milestone for clean energy in Queensland. “With two major integrated gasification combined cycle (IGCC) and CCS projects already in the pipeline, I’m confident Queensland will have a good chance of receiving significant support from the program,” Mr Roche said. GE Energy is working with Stanwell and Xstrata Coal to develop the 400-megawatt Wandoan project, near Wandoan in the Surat Basin, which the proponents hope to be ready for commercial

Business community wants vote delayed The majority of Queensland businesses believe the Federal Government should hold oﬀ on any Senate vote on the Carbon Pollution Reduction Scheme (CPRS) until after the Copenhagen Climate Change Summit in December this year, according to the Queensland Chamber of Commerce and Industry. A recent chamber snap poll of 244 businesses showed almost 88 per cent regarded the CPRS as little more than a new tax and 84.5 per cent agreed that Australia’s CPRS should be delayed until global competitors agreed on measures to limit the eﬀects of climate change. The survey showed an increasing belief that the impact of the CPRS would be largely negative. Legislation to introduce the CPRS was rejected in a vote in the Federal Senate in August and the Rudd Government is expected to re-introduce the

relevant bills in November. Mount Isa to Townsville Economic Zone (MITEZ) chair David Glasson recently expressed concern about the added impact of the CPRS on the north-west due to the fact that much of the cost of the proposed Emissions Trading Scheme (ETS) would be added on to fuel, energy, foods and most input costs. Mr Glasson said the region was already disadvantaged due to distance from the coast, with the cost of transporting commodities adding signiﬁcantly to living expenses and business costs. “MITEZ’s concern is ETS will add another layer of costs on to what are already higher input costs for almost everything we do,” he said. He suggested businesses in the north-west should be assisted to overcome any resulting disadvantage when the ETS came into eﬀect, with rebates to energy intensive industries and an increased zone allowance.

Robertson said low-emission coal technologies and CCS would be critical to ensuring sustainable electricity supplies and a clean energy future for Queensland. The State Government recently revised approval conditions for new coal-ﬁred power stations in Queensland, stipulating that they must use world’s best practice low-

operation in late 2015 or early 2016. The 530-megawatt ZeroGen project, being developed in conjunction with Mitsubishi Heavy Industries and Mitsubishi Corporation, is planned to go online in 2015, with proponents still to determine a site for the plant. Natural Resources, Mines and Energy Minister Stephen

emission technology, be CCS ready and undertake to retrofit that technology within five years of CCS being proven on a commercial scale. The QRC has made a video clip available on its website at www.qrc.org.au explaining CCS technologies under trial or development including oxy-fuel firing, post combustion capture and coal gasification.

Word on the street The Mining Advocate put the following question to participants at the recent 2009 Queensland Mining Industry Health and Safety Conference in Townsville.

“How do you think the Carbon Pollution Reduction Scheme will impact on mining communities?”

“

No one is looking at the skills required to sustain the new technology. Mining communities need to get their heads around the new business. Those skills could be sourced away from mining communities.

”

Deb Jones, Brisbane

Warren Dale, Moranbah

“

Tristan Cook, Brisbane

There needs to be a distinction. The coal we dig is coking coal, so has a small carbon footprint. In the media coal is bad, full stop. The effect could be devastating on communities.

“

I think the effect is unknown and I think the economic forecasting in it is general forecasting and anyone who says they know what the results are going to be, doesn’t … Anyone who gives you an answer that they know what the effect will be, doesn’t.

”

It will have an impact, more so because a lot more people currently employed may not have a job. It is not going to be cost free.

”

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Mackay Regional Capacity

The Mining Advocate | September 2009

Bright ideas for cutting carbon Lowering emissions can be as easy as changing a light bulb according to a central Queensland firm taking “green” technology to local industry. Mackay electrician Jemal Solo aims to help more mining operations switch on to the benefits of energy-efficient lighting. While his firm Carbon Friendly Enterprises was having trouble keeping up with demand from general industry clients such as warehouse operations, Mr Solo said mines had been slower to take up such technology. “We see this (energy-efficient lighting) as an easy option for industry to have quite a substantial impact on their carbon footprint without major change,” Mr Solo said. “Simply changing the type of lamps or light fittings used can have a major impact.” Mr Solo said the firm’s work at central Queensland coal mines had included trials of LED area lights at Peabody Energy’s Millennium Mine and industrial compact fluorescent replacement lights in BMA’s North Blackwater washplant. Installing compact fluorescent lights in the washplant warehouse was saving the operation $99 per fitting per annum in energy costs plus half

a tonne of carbon dioxide per fitting, he said. Carbon Friendly Enterprises had also installed some standalone solar LED systems at BMA’s Peak Downs operation and was involved in an LED street lighting trial involving Ergon Energy, Energex and the Department of Mines and Energy, he said. Mr Solo operated a general electrical contracting and mining maintenance company before starting Carbon Friendly Enterprises five years ago in response to a growing interest in such technology. “The more we looked into it, the more intrigued we became,” he said. “We decided to invest substantial resources into research and development regarding the products out on the market.” Mr Solo said accessing energyefficient technology that was practical and of high quality had been like navigating a maze, with some products failing to match the manufacturers’ claims. But after visiting many factories and carrying out their own field tests, he said Carbon

Upsurge in projects The value of projects under construction or in the pipeline for the Mackay-Whitsunday region increased by 13 per cent last quarter, according to the latest figures from the Regional Economic Development Corporation (REDC). The Regional Development Register released by REDC at the end of August lists projects with a value of more than $45.7 billion, including more than $13.5 billion in mining development. REDC chief executive officer Narelle Pearse said new entries included $1.97 billion worth of rail infrastructure and a proposed export terminal at Abbot Point, outside Bowen, associated with Waratah Coal’s proposed China First coal project. “The mine is in the Galilee Basin but exports will go through our region.That has been a major factor in boosting figures for this period,” she said.

Hail Creek hiring Rio Tinto Coal Australia hopes to bring on about 150 new employees at its Hail Creek Mine, 120km south-west of Mackay, from September as it moves to step up production. “We have a range of new equipment that will be coming to site over the next six to eight months, including Hail Creek Mine’s first rope shovel plus ancillary equipment,” general manager – operations Andrew Woodley said. “This equipment will all require more people to operate them. The first wave of new employees is expected to arrive on site in September, continuing through to the end of the year. “We will be aiming to continue to target local people for these roles to benefit local employment and the region’s economy, and to keep in step with our female employment strategy.”

Friendly Enterprises had come up with a range of robust, reliable products to supply to industry. While some-energy efficient technology was two or three times the cost of conventional lighting upfront, Mr Solo said this was outweighed “hands down” by long-term cost savings and environmental benefits. He said making the change could save up to $200 per annum per light fitting in power costs for a warehouse or plant, many of which had hundreds of highintensity lamps. Energy-efficient lights radiated less heat in the workplace and maintenance costs were also reduced, with LED products in particular boasting a longer life span than conventional lamps. “The general life of an LED ranges from 50,000 to 80,000 hours,” Mr Solo said. “If you’re looking at work periods of up to 12 hours a day, that’s up to 19 years one could be running without replacement.”

Carbon Friendly Enterprises technical operations manager Jemal Solo with an industrial compact fluorescent light.

Longwall gear up and running after $200m installation project Anglo Coal’s Moranbah North Mine has started cutting coal with its new JOY 7LS6 shearer in the culmination of a $200 million works project over more than two years. Project manager Johan Laubscher said advanced new longwall equipment had been successfully installed about 9km underground. “The new equipment incorporates Landmark Automation technology and includes the implementation of massive 1750-tonnerated powered roof supports underground, the most powerful in the world,” Mr Laubscher said. “After three months of installation work, the 148 hydraulically powered roof supports are now in place and coal cutting has commenced. “Ramp up to full production will incorporate the completion of the operational training of the crews and the ﬁnal wet commissioning of the new longwall. “This is because a lot of the ﬁnal calibration of the new equipment can only be done once it is loaded, cutting coal.” The new longwall was expected to have an average production capacity of 120,000 tonnes per week, Mr Laubscher said. Anglo Coal Australia and its joint venture partners, including

Johan Laubscher Moranbah North Mine powered roof support project manager

Mitsui and Nippon Steel Australia, committed about $200 million to installing the new equipment to improve the mine’s productivity at increasing depths. “As Moranbah gets deeper the geology is less favourable, which is one of the reasons why we bought the higher-rated roof supports,” Mr Laubscher said. The new Joy roof supports are 2m wide, have a height range of 2.4m to 5m, operating at around 4.3m, and are controlled by Joy’s RS20s control system. Other improvements at the mine include two new shearers,

a new armoured face conveyor system and purpose-built longwall move equipment. The new longwall will use a monorail, constructed at a cost of more than $5 million, to supply the necessary power, communications, hydraulics, water and compressed air services to the longwall face. Mr Laubscher said Moranbah North had a unique opportunity with the new longwall’s installation as the equipment could be installed as a complete longwall system without having the normal issues around waiting for gear from the previous panel’s take-oﬀ face. Specially designed carriers were built by Industrea Mining Equipment to get the equipment underground. The installation occurred from late May following extensive compatibility testing on the surface. While the compatibility testing was being carried out on the surface, work preparing the new longwall install road was under way underground. Mr Laubscher said the underground roadways required some extra attention to ensure the intersections would allow enough space for turns with the equipment, including the massive 64-tonne gate end supports.

NEWS

September 2009 |

Roseby project back on the table Universal Resources has resumed efforts to finance a copper mine outside Mount Isa as metal prices and credit markets improve. A north-west Queensland copper project mothballed when the global financial crisis struck in late 2008 is back on track, with the proponents aiming to begin construction in early 2010. Universal Resources has recently resumed discussions with potential backers for its Roseby copper project, a proposed five-milliontonnes-per-annum operation about 90km north-east of Mount Isa. A detailed feasibility study completed in September 2008 indicated the project was both technically feasible and economically viable. But the company dropped its efforts to develop the project late last year as credit markets collapsed and metal prices took a nosedive. Universal Resources managing director Peter Ingram said the company was now optimistic that it could secure funding for the $200 million-plus project in an improved economic climate and was actively involved in discussions with financiers. “This is probably the most advanced undeveloped copper project in the district or, in fact, Australia,” Mr Ingram said. “We were having our discussions with banks in October- November last year when the crunch came and it became obvious we weren’t going to be able to fund it in that climate. Copper prices plunged to $US1.25 (per pound) – but they are now back around $US2.95 and most of the analysts we’ve talked to are very positive about the future of copper prices. “The improving environment for metal prices and project financing means we’re now re-activating the project.” A proposed merger between Universal and Vulcan Resources, announced recently, should also improve the prospects of advancing the Roseby project, with that company bringing $28.4 million in cash to the table, Mr Ingram said. However, the question may arise about whether to develop Roseby or Vulcan’s advanced Kylylahti copper-cobalt project in Finland first. As well as talking with financiers, Universal has resumed work on a detailed final environmental management plan in order to gain environmental approvals for the Roseby project. Mr Ingram said Universal aimed to start construction around April 2010, following the next wet season, and start production in the fourth quarter of 2011.

Meeting this timetable would be dependent upon gaining environmental approval and ﬁnancing by early 2010. Mr Ingram expected the construction phase to generate roughly 450 jobs, while ongoing operations would require a permanent workforce of 250 including contractors. “We’re looking at mining 15 to 20 million tonnes of material per annum for ﬁve million tonnes of ore, producing about 26,000

tonnes of copper in concentrate,” he said. Mr Ingram said the multi-pit mine, with mill and concentrator, would be a long-term operation. “We have an initial mine life of 10 years, but we think with the exploration potential we have and we’ve hardly touched the surface there - it should provide opportunity for us to extend the mine life another 10 years,” he said. The project holds 128.54 million tonnes of JORC-compliant resources containing 878,000 tonnes of copper and 239,000 ounces of gold.

The Mining Advocate

Copper sites in limbo • Aditya Birla Minerals would require more certainty in the market to restart operations at Mt Gordon, about 120km north of Mount Isa, according to chief financial officer Ram Maruwada. He said the company would continue to evaluate market conditions and its options at Mt Gordon, including the processing of low-grade ore stockpiles. A crew of about half a dozen people remained at the site for care and maintenance as well as water treatment work required as a result of flooding early this year, Mr Maruwada said. The operation employed about 185 contractors and 115 Aditya Birla personnel before the company started to wind down activities against a backdrop of plummeting copper prices. • The new owners of Lady Annie copper mine, Cape Lambert Iron Ore, have announced plans to “spin out” the asset via an IPO on the stock exchange. Cape Lambert took over Lady Annie, 120km north of Mount Isa, earlier this year as part of a package of CopperCo assets acquired from receivers. Executive chairman Tony Sage said the company was also continuing the trade sale process for Lady Annie and had hosted seven individual groups to site in recent weeks. • The Osborne copper-gold mine, 195km south-east of Mount Isa, is expected to close in early 2010 after Barrick Gold dropped plans to develop the Kulthor underground project early this year against a background of low copper prices. Barrick Australia Pacific acting public affairs manager Andy Lloyd said the company had not altered that decision. “As a matter of course, we continuously review all options for our mines based on evolving circumstances, however we have not announced any change in Osborne’s expected closure date at this time,” he said. • Private company FMR Investment decided to place the Eloise mine on care and maintenance late last year due to production difficulties and poor copper prices, terminating its mining contract with Barminco in January 2009. The company declined to respond to The Mining Advocate’s recent requests for information on its plans for the site, 60km south-east of Cloncurry. • Matrix Metals, operators of the Leichhardt copper project north of Mount Isa, called in the administrators last November and the company has since gone into liquidation. Deep Yellow acquired some tenements in May which had been part of a uranium joint venture with Matrix, however a spokesman for receivers Deloitte said there had been no further asset sales announced at this stage.

Photo: courtesy Snowden

Winning photograph An image titled Woman Power, depicting laborers at a mine in Guinea in West Africa, has been selected as the overall winner for 2009 in Snowden’s annual photography competition. More than 1000 entries from around the globe were submitted in this year’s “Celebrating the Mining Industry” competition, a 30 per cent increase on last year. Winning photographer Brian Levet from the United Kingdom said his Woman Power image (above) was taken at a mine in Guinea with more than 100 women working and just two men. “This is quite normal for

the territory,” he said. “The women, many with small children on their backs, usually did most of the work at the mines.” The mining sector generates about 25 per cent of Guinea’s income, with bauxite production the most important contributor followed by gold and diamonds. Levet received $10,000 for his winning eﬀort. The 2009 category prize winners and other highly commended entries can be viewed at the Snowden website at www. snowdengroup.com.

ERA aims for 2010 start on key works Energy Resources of Australia (ERA) has announced record halfyearly profits as it continues working towards a potential 2010 start for construction on two major developments at its Ranger uranium mine. The company reported a net profit of $127.55 million for the first half of 2009 - more than triple the $38.9 million profit recorded in the corresponding period last year. ERA communications and external relations general manager David Paterson said the result was underpinned by increased production at Ranger and very strong average realised prices. ERA has two major projects in the pipeline to unlock further sources of ore at its Northern Territory mine – a planned heap leach facility and an exploration decline to gain further knowledge of the major Ranger 3 Deeps uranium oxide discovery. Mr Paterson said construction of the heap leach facility, hoped to commence next year, was expected to generate 300 to 500 jobs. The project - going through the environmental impact assessment stage - would allow the Ranger operation to treat the stockpiles of lowgrade material it had accumulated over 29 years of mining, as well as further low-grade material coming out of the pit, he said. The the proposed Ranger 3 Deeps project is at the feasibility study stage. It centres on the discovery last year of a uranium oxide resource of about 34,000 tonnes in an area just east of the existing pit at Ranger.

NEWS

The Mining Advocate | September 2009

Coal trainee shows her class Her inspiring efforts at Dawson Mine have seen this truck-driving mum named as a finalist in the 2009 Mining Industry Skills Centre Awards. This time last year mother-ofsix Patricia Rankin was working as a teachers’ aide at Wadja Wadja High School in the central Queensland Aboriginal community of Woorabinda. Now she takes her place behind the wheel of a haul truck at Moura’s Dawson Mine, a “star pupil” in Anglo Coal’s traineeship program. Ms Rankin has been named among the finalists in the 2009 Mining Industry Skills Centre Trainee of the Year Awards, with her employer describing her efforts as inspiring. “I was really humbled by the nomination and I am so proud to be a finalist in the awards,” Ms Rankin said. “I have loved everything about the traineeship. I grew up in a country town and was always interested in semis. “But I dismissed the idea of it because I always thought it was a man’s career. “I’m glad I took up the traineeship and now I want to encourage others to give it a try too.

“The highlight for me in all this was when the Mayor of Woorabinda congratulated me on my achievement and told me I was someone for all the other women in our community to look up to, a mentor. “That made all the work worthwhile for me.”

others and honesty has gotten me a long way.” Ms Rankin is halfway through a Certiﬁcate II course in Coal Surface Operations facilitated by Anglo Coal supervisors. The course requires her to complete nine core competencies including safety, communication and teamwork, while also developing the practical skills to operate two pieces of equipment. Ms Rankin said the course and hands-on experience at site

“I’m glad I took up the traineeship and now I want to encourage others to give it a try too” Ms Rankin said she especially wanted to be a good role model for her daughter, the eldest of six children ranging in age from nine to 20. “She’s 20 now and all the other mothers often ask me how I got such a good daughter,” she said. “I did spoil her, but I always asked for two things in return: respect and honesty. “I see she has taken this on board as an adult. “I myself continue to apply those two key things to everything I do, respect for

had whet her appetite for further development opportunities. “When I come to the end of the traineeship, I know I will still want to learn more. I want to learn to teach others too, get the skills I need to become a trainer and assessor,” she said. The 2009 Mining Industry Skills Centre Training Awards dinner is being held at the Brisbane Convention and Exhibition Centre on September 25. Chief executive oﬃcer Derek Hunter said the skills centre was overwhelmed by the

Mining Industry Skills Centre Awards finalist Patricia Rankin.

record number of high-calibre nominations for the 2009 awards. “Each year, we are seeing an increase in the number of highquality entries into our awards and this year is certainly no exception,” Mr Hunter said “This year we have ﬁnalists from all over the country

including New South Wales, Western Australia and Queensland. “At the skills centre we are proud to see that our training awards continue to be representative of the innovative and quality work being undertaken in the industry nationwide.”

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Part Of The Solution

September 2009 |

The Mining Advocate

Marking the way forward Leading Townsville based plant hire and crushing company Markwell is bucking the trend and expanding its fleet. The investment of $4m means there are now more than 100 units of equipment the company can hire at any one time to the mining, construction, processing and maintenance industries. A new jaw crusher brings the crushing capacity up to ten mobile machines consisting of five track mounted jaw crushers, four cone crushers and one vertical shaft impacter. The number of screens has also increased to six with two new additions to the inventory. It was a sign of optimism in the industry said company Director Gavin Markwell.

Markwell Hire and Crushing is preparing for the upswing in mining and construction investment by investing in new plant.

“North Queensland is much too diverse and vital an economy to stagnate,” Mr Markwell said. “ A downturn in mining will see investment in maintenance programs. Sugar has been up and there has been some significant capital works and road building programs.

“The economy is turning around and we are keen to follow the upward trend by increasing our presence as a hire provider of first choice. “We can see demand for crushers increasing with new main roads work over next couple of years. The sealing of the Gregory Development Road is one example. “From there we are anticipating an upswing in mining. Already there is investment in new hardrock and coal mining operations.” “We are savvy in the demands and expectations of contractors and operators” he said. “We can be on site and set up with crushers swiftly and seamlessly.” “We can compliment existing arrangements with plant and equipment; we can supplement with alternative plant when machinery is under maintenance and we supply a total service with supporting loaders, excavators and graders, for example. Markwell Hire and Crushing can be contacted on (07) 4774-7300. See also website: http://markwellgroup.com.au/

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Townsville Regional Capacity

The Mining Advocate | September 2009

City targets Guam expansion A trade mission aims to help northern firms tap into opportunities presented by an island nation’s multibillion-dollar growth spurt. Townsville is well placed to capitalise on a construction boom in Guam, where the United States is investing more than $12 billion over ﬁve years in a military build-up, according to Townsville Enterprise. The organisation is preparing for a Townsville trade mission to Guam, led by Mayor Les Tyrell, from October 12 to 15 to help local ﬁrms tap into the business opportunities there. Townsville Enterprise economic development general

manager Dr Lisa McDonald said local companies had capabilities that matched the island nation’s needs – including expertise in tropical construction and services for remote work sites such as mining camps. The city enjoys relatively good access to the Western Pacific nation, which is a four-hour flight away from Cairns. Dr McDonald said Mariana Express Lines offered a shipping service that left Townsville port every two weeks for a 21-day

Legend signs off on $3 billion phosphate transport deal P&O Trans Australia has won a transport deal worth up to $3 billion for Legend International Holdings’ phosphate project in north-west Queensland. Legend and P&O Trans Australia have signed a memorandum of understanding (MOU) regarding haulage and handling services associated with the Georgina Basin phosphate project. This MOU will guide contract negotiations worth about $40 million during the first year of operations and up to $3 billion over the life of a 20-year agreement. P&O Trans Australia managing director Paul Digney said that for the initial contract components about 50 new jobs would be created in that company, split between Mount Isa and Townsville. Legend president and chief executive officer Joseph Gutnick cited P&O Trans Australia’s commitment to flexibility as a key factor in the appointment. “This is a staged project, commencing late 2009/early 2010 with an annual volume

of between 0.5 and 1 million tonnes per annum which, with the construction of several key components of infrastructure will rapidly increase to up to 5 million tonnes per annum,” Mr Gutnick said. P&O Trans Australia had been the only bidder to offer a packaged suite of services, designed to flow seamlessly between Stage 1 packaged material and the shift to bulk haulage during Stage 2, he said. The bid included:• Road cartage from D-Tree and Paradise North tenements, both about 160km from the rail head in Mount Isa; • Rail haulage from Mount Isa to the Port of Townsville, about 1000km east; and, • Various storage and material handling tasks. Mr Gutnick said that Legend had been in extensive negotiations with QR Network, the below-rail manager on the Mount Isa-to-Townsville network, and he was confident that the necessary rail capacity would be made available.

Dr Lisa McDonald Townsville Enterprise economic development general manager

trip to Guam via Taiwan. Dr McDonald – who recently visited Guam on an Austrade

mission - said the US military planned to relocate 8000 marines and 1000 regular army there and upgrade the island’s air force base. With families and support staﬀ included, the island could see up to 30,000 extra people locate there. “Townsville has many similarities to Guam,” Dr McDonald said. “Five years ago we found ourselves on the brink of a major growth period, with billions spent on major projects during that time. “We developed a range of specialist skills within the region in design, building and construction in a tropical

environment. This knowledge would be of great value to Guam.” Dr McDonald said representatives from about 20 companies had attended a recent seminar to discuss opportunities in Guam and more ﬁrms had expressed interest in the trade mission. “We will be working with companies interested in coming to prepare them and organise some one-on-one meetings,” she said. Dr McDonald said ﬁrms interested in the trade mission should contact Bree Dixon at Townsville Enterprise by emailing bree@tel.com.au or phoning (07) 4726 2751.

BP starts work on $30m plant BP Australia is building a $30 million bitumen import, manufacturing and distribution facility in Townsville to meet growing demand from road infrastructure projects in Queensland. This represents a 240 per cent increase in BP’s current bitumen supply capability out of Townsville “Townsville has become a critical link for nearly every industry in the region, and is without doubt the right place for BP to invest to deliver this region’s bitumen needs efficiently and cost effectively,” BP executive Kathy Hirschfeld said. The new facility will be capable of supplying about 120,000 tonnes of bitumen each year – enough for the development and maintenance of almost 4000km of road. BP has leased land at the Port of Townsville and construction of the facility has begun, including six storage tanks with a total capacity of 18,000 tonnes. The Port of Townsville is also undertaking a significant upgrade to the bulk liquids

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wharf to accommodate the trade. BP said it expected that more than 200 construction workers would be employed on

site until the facility was fully commissioned by 2011/12, and six workers would be employed on an ongoing basis.

New TREC board The reinvigorated Townsville Regional Engineering Cluster (TREC) has announced the appointment of a new board of directors. Members include chairman Tim Reynolds of Rockfield Technologies Australia, TCS managing director Dawson Wilkie, Wulguru Steel general manager Wayne Landrigan, Townsville Enterprise chief executive officer Trevor Goldstone and Townsville Enterprise economic development general manager Lisa McDonald. TREC general manager David Wylie said the new board would play an important role in setting strategic direction and identifying new opportunities to increase the region’s engineering capacity and capabilities. “The collective capabilities of our members is significant and the current TREC membership includes a range of diverse engineering based companies that will enable members to work on larger regional projects and developments,” Mr Wylie said. “TREC’s role is to market these services locally and internationally in order to secure new opportunities for local business. “TREC will also be engaging similar clusters from throughout Queensland to create opportunities for local companies to work with state counterparts to secure work on significant state, national and global projects.”

INDUSTRY UPDATE

September 2009 |

Out and about

The alliance will involve Tanami transferring its NT tenements to ABM, which will initially spend a minimum of $10 million on the tenements over a two-year period subject to access conditions.

The Mining Advocate

“We are looking forward to our ongoing ﬁeld programs rapidly deﬁning further gold prospects that will provide a focus for future drilling.”

Mount Peake stacks up

Australian resources company TNG has reported positive results from an initial scoping study completed on its Mount Peake vanadium project, 80km northeast of Alice Springs in the Northern Territory. Despite Water the high estimated Trucks capital cost – $400 to $500 million - the results demonstrated viable project economics given the parameters of this initial study, TNG said. www.equipmentplacement.com.au

In return for the transfer of those tenements to ABM, Tanami Gold will receive $1.5 million in cash, a shares and options package and a seat on the ABM board.

Cape Alumina board members with local residents at Mapoon, Cape York.

Cape Alumina recently held its first regional board meeting on Cape York, in what company chief executive officer Dr Paul Messenger described as a corporate first for a Brisbane-based board. The six-man board met at the Mapoon Council Chambers before visiting the Pisolite Hills region to inspect the area of the proposed bauxite mine and Port Musgrave, the shipping point. Cape Alumina non-executive director Jijun Liu made a special visit from China for the meeting in a 15,000km round trip. The company also recently took traditional owners from Cape York on a trip to Whyalla, South Australia to view the CSL Shipping facility on which Cape Alumina plans to model its shipping when it begins production in 2013/2014.

Moly magic at Merlin Ivanhoe Australia has reported new high-grade intercepts from recent drilling at its Merlin molybdenum and rhenium deposit south of Cloncurry, including an intersection of almost pure molybdenite mineralisation. The company said drilling on the eastern flank of the Merlin mineralisation had extended the mineralised zone down dip to a depth of 500m below surface. One hole had identified mineralisation of higher grade and purity than any molybdenite mineralisation identified to date on the Merlin project, with a 0.9m sample representing a molybdenite content of about 77 per cent. The company is preparing a Canadiancompliant resources estimate for the deposit and expects to finalise a preliminary scoping study soon.

Steel mill plans revealed The ﬁrst round of environmental assessments have begun for the proposed $2.2 billion Boulder Steel project in Gladstone. Queensland Premier Anna Bligh recently announced the release of the draft terms of reference for the project, tipped to create more than 1100 longterm jobs in the region. Ms Bligh said the facility would be developed in two stages, with an estimated cost of $1.1 billion for each stage. “Stage 1 will see an initial export capacity of 2.1 million tonnes per annum (mtpa) of steel product, increasing to 5 mtpa in the second stage,” Ms Bligh said. A decision on whether to approve the project, approve with amendments

or not approve will be made by Queensland Co-ordinator-General Colin Jensen after the environmental assessment process has been completed.

Silver Hill sparkles Trial grade-control drill results have confirmed the robust and consistent nature of the mineralisation at the Silver Hill deposit in North Queensland, according to Conquest managing director John Terpu. “These results, which include spectacular and wide zones of highgrade gold mineralisation, further underpin our confidence in the potential upside of Silver Hill, which is already set to be one of Australia’s premier new gold mines,” Mr Terpu said. The company also confirmed that the Silver Hill definitive feasibility study (DFS) being undertaken by Arccon Mining Services was on track for completion in November 2009. “With the key DFS teams appointed and working on long lead time engineering, development and procurement, we’re on target for completion of the study in November 2009 and a rapid move into the construction phase by March next year,” Mr Terpu said. The mine, on Conquest’s Mt Carlton tenements north-west of Collinsville, is expected to employ more than 150 people, with the company flagging a preference to source workers from the Whitsunday and Townsville regions.

Tanami tenement transfer Tanami Gold has entered into an alliance with ABM Resources to explore for gold, copper and other minerals in the highly prospective Tanami-Arunta province in the Northern Territory.

Tanami Gold managing director Graeme Sloan said the aim of the transaction was to fast-track exploration of the Tanami-Arunta tenements, which include granted exploration licences covering 2210sq km and exploration licence applications covering 21,334sq km.

NQM raises $4.1m North Queensland Metals, operator of the Pajingo gold mine outside Charters Towers, has completed a share placement to raise $4.1 million. NQM chief executive oﬃcer John McKinstry said the funds had been raised to progress the company’s strategy of becoming a mid-tier gold producer. “The aim is to ﬁnalise the acquisition of the Twin Hills mine and evaluation of the Dotswood deposit, advancing the prefeasibility work required to bring these assets to a cash-producing status as quickly as possible,” he said. “Additionally, NQM plans to continue to accelerate delineation and development of new mining areas at Pajingo.”

Positive results at Barbara Syndicated Metals reports that its recently completed drilling program at the Barbara copper project, about 50km north-east of Mount Isa, has returned positive results. The latest results had considerably enhanced the project and built signiﬁcantly on the company’s understanding of the deposit, Syndicated said. Drilling was expected to recommence in September.

Liontown roars in NQ Liontown Resources has opened up a significant new exploration front at its Mount Windsor Volcanics Project, 40km south-west of Charters Towers in North Queensland, after identifying numerous promising gold exploration targets within its tenement package. The company said it had located 39 discrete Carbo-Permian intrusive related gold targets, 12 of which had been checked and sampled in the field. “The results of this initial followup and ground truthing of what were essentially conceptual targets have confirmed our belief that our tenements hold exciting gold potential in addition to the well-known base metal potential,” Liontown chairman Tim Goyder said.

“The Board of TNG is pleased with the results and will now consider the optimum route to progress the Mount Peake project to the next phase, including the possibility of introducing a joint venture partner to fund ongoing resource drilling and project feasibility work,” the company stated.

Kroombit exploration program Argonaut Resources has launched a new exploration program targeting additional deposits in the vicinity of the company’s Kroombit zinc-copper deposit near Gladstone in central Queensland. Geo Discovery Group will undertake the program, with the ﬁrst phase of work set to involve a ﬁeld appraisal of 27 previously recorded small-scale historical mines, exploration prospects and mineral occurrences. Argonaut announced a maiden resource estimate for the Kroombit deposit in June of 5.2 million tonnes of zinc ore containing 98,800 tonnes of zinc and 7800 tonnes of copper as well as an additional copper resource of 0.9 million tonnes containing 9000 tonnes of copper.

Crossland gets cracking Crossland Uranium Mines says the start of the dry season in the Northern Territory has enabled the company to accelerate exploration activities on its ﬂagship uranium projects. Work under way on Crossland’s two main uranium prospects – Chilling and Charley Creek – includes the assessment of previous promising exploration results, with a primary focus on identifying targets suitable for possible drilling programs later in the dry season.

Cloncurry resource upgrade Exco Resources has reported a 22 per cent increase in indicated resources at the Cloncurry Copper Project in north-west Queensland to 28 million tonnes at 0.91 per cent copper and 0.25 per cent gold. This meant the company had achieved its interim goal of establishing more than 25 million tonnes of indicated resources as the basis for a deﬁnitive feasibility study, Exco said.

INDUSTRY UPDATE

The Mining Advocate | September 2009

Bulk sampling at Wonarah

production to 164,034 tonnes and a drop in operating costs.

Minemakers has won conditional approval from the Northern Territory Government for its plans to extract a bulk sample of more than 10,000 tonnes of rock phosphate from the Wonarah deposit.

Chief executive oﬃcer Peter Toth said the new optimised Bootu Creek mine plan developed for 2009/10 was successfully implemented with record material mined for the June quarter.

The company said this would provide large samples for testwork by potential customers, including Ballance AgriNutrients in New Zealand.

This reflected improvements in mining efficiency and a focus on aggressive prestripping and ROM stockpile building during the first half of the year.

The bulk sampling exercise would also provide invaluable mining and grade control data for the proposed full mining operation, Minemakers managing director Andrew Drummond said. “There has been much commercial interest shown in Wonarah rock phosphate, with several potential customers seeking further and larger samples for more detailed suitability testing,” he said. “The Ballance request, and the approval which enables Minemakers to deliver it early, are very positive steps in the development of Wonarah”

Ready for 2010 start Eromanga Uranium expects to begin full-scale production at its newly acquired Georgetown alluvial gold operations in North Queensland in the ﬁrst quarter of 2010. The company has undertaken a program of upgrading and repairing mobile mining plant and gold processing equipment at the operation. It is now dedicating personnel and physical resources towards an aggressive bulk sampling program.

New strategy pays off A new production and marketing strategy has seen OM Holdings set new records during the June 2009 quarter from its Bootu Creek manganese operations in the Northern Territory. The company reported a 74 per cent increase in quarterly manganese

development of several mines in the Mt Coolon region.”

Positive study for Redbank Redbank Copper has released its comprehensive mine study for the development of its namesake project in the Northern Territory. Redbank managing director Bruce Morrin said the study conﬁrmed the positive economics of the copper cathode and CAIRNS concentrate project.

“The mine’s TOWNSVILLE It included a base ultimate capability THURSDAY ISLAND case model for an to achieve open-cut copper improved mining, mine with a life of yield and recovery 10 years, including performance from production from this production both oxide and strategy was clearly Without a travel agent you’re on your own sulphide ores. demonstrated in “The mine study June, which saw shows that with relatively small capital record monthly production of 77,083 outlay we can return the Redbank project into production,” Mr Morrin tonnes at an average grade of 38.8 per said. cent manganese,” Mr Toth said. “Our focus now is on continuing the exploration program and moving the High-grade results project forward to be in a position to Drummond Gold has reported highpotentially commence production mid grade results from its ﬁrst diamond drill next year.” hole into the East Hill discovery at the The Redbank copper project is located Yandan gold project, 45km west of Mt about 30km from the Queensland Coolon in North Queensland. border and 70km south of the Gulf of Carpentaria. Intersections included 13m at 5.91g per

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tonne gold (including 3m at 20.92g), 2m at 9.96g per tonne gold, and 1.9m at 48.12g per tonne gold. Drummond managing director Doug Grewar said the results conﬁrmed the presence of high-grade mineralisation which may be suitable for underground mining. “Additional drilling is now required to substantiate East Hill’s potential as an economic mine,” he said. “The latest results represent signiﬁcant progress towards achieving Drummond’s aim of becoming a gold producer in the Drummond Basin through the

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Brightlands drilling campaign GBM Resources has commenced its ﬁrst exploration drilling campaign on the Tiger and Tambourine prospects on the Brightlands project, south-west of Cloncurry. The Tiger and Tambourine prospects have been selected for 2500m of reverse circulation (RC) drilling, with assay results expected to be available at the end of September.

Exploration research grants Four junior mineral explorers have received a total of $159,000 in

Queensland Government grants under the latest round of Industry Network Initiative funding for innovative research to advance exploration. The successful companies were ActivEX, Icon Resources, Earth Ray Exploration and CNW.

Isa expansion Cape Lambert Iron Ore has acquired a parcel of 15 exploration tenements covering 5000sq km in the Mount Isa area. The company recently signed an agreement to acquire 100 per cent of the share capital of MOJO Minerals, which held those tenements. Cape Lambert chairman Tony Sage said the transaction gave the company a dominant position in the Mount Isa minerals province. The MOJO tenement package is contiguous to the 38,000sq km package held by Cape Lambert subsidiary Australis Exploration and lies south of the Lady Annie project, which it also owns. The company also holds a 25 per cent interest in the nearby Lady Loretta project.

Equipment sales drop The Australian construction and mining equipment market declined by 28.8 per cent in the first six months of 2009 compared with the same period in 2008, according to figures released by the Construction and Mining Equipment Industry Group (CMEIG) and ERG International. CMEIG chief executive officer John Reid said the rate of decline had slowed in June, probably as a result of government investment allowance initiatives. Recent Federal and State government announcements of major increases in spending for infrastructure projects should have a positive effect on equipment sales in the second half of the year, he said. But Mr Reid said overall sales for 2009 were still expected to be around 20 per cent lower than in 2008.

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INDUSTRY UPDATE - COAL AND GAS

Oaky 1 back online Xstrata Coal has recommenced production at its Oaky No.1 longwall, outside Tieri in central Queensland, where operations were suspended in December in response to weak demand from steelmakers. The company restarted the mine to meet speciďŹ c spot sales, which would take operations through to the end of 2009, Xstrata Coal communications manager James Rickards said. â&#x20AC;&#x153;Then weâ&#x20AC;&#x2122;ll review the market conditions to determine whether to continue production from the mine,â&#x20AC;? he said. He said Xstrata had shifted a development team across to operate the mine in addition to a small number of contractors.

$300m Peak Downs contract BHP Billiton Mitsubishi Alliance (BMA) has awarded Leighton Contractorsâ&#x20AC;&#x2122; resources division a threeyear contract extension worth $300 million for work at the Peak Downs Mine. The contract covers project management, surface mining, engineering and maintenance work required to deliver the overburden removal services at the Bowen Basin mine.

Braemar plant opens The new gas-ďŹ red Braemar 2 Power Station, near Dalby, will produce enough electricity to power 3 per cent of Queensland and New South Wales. At the recent oďŹ&#x192;cial opening, Queensland Infrastructure and Planning Minister Stirling HinchliďŹ&#x20AC;e said the $546 million, 450-megawatt power station would cut carbon emissions by up to 50 per cent and water consumption by up to 90 per cent compared with coal-ďŹ red stations. He said the project, a joint venture between ERM Power and Arrow Energy, brought about $60 million to the local economy and employed

September 2009 |

around 400 Queenslanders during peak construction.

Gas-fired jobs bonanza A 230ha site at Laird Point on Gladstoneâ&#x20AC;&#x2122;s Curtis Island has been earmarked for Australia PaciďŹ c LNGâ&#x20AC;&#x2122;s proposed liqueďŹ ed natural gas plant. The project is expected to create an average of 10,300 jobs during the 10year construction period, reaching a peak of 18,600 direct and indirect jobs nationally during the four peak years of construction (2012 to 2015), according to analysis by KPMG Econtech.

permanent positions during operation. An executive summary of the Queensland Curtis LNG Project EIS can be viewed online at www.dip.qld. gov.au/projects or the full EIS at www. qclng.com.

Moura site selected Molopo Australia has signed agreements to acquire a site in Moura, central Queensland, for its gas-ďŹ red power project based on coal-bed methane.

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â&#x20AC;&#x153;The KPMG analysis highlights the potential job creation from the Australia PaciďŹ c LNG project,â&#x20AC;? project director Todd Creeger said. â&#x20AC;&#x153;By selecting its preferred site, Australia PaciďŹ c LNG has reached another milestone with its $35 billion investment in Queensland.â&#x20AC;? Australia PaciďŹ c LNG is a 50:50 coal seam gas (CSG) to LNG joint venture between Origin and ConocoPhillips.

EIS for Curtis Island project QGC Limited, a BG Group business, has released its environmental impact statement (EIS) for the multibilliondollar Queensland Curtis LNG Project. The proposed project would see coal seam gas from the Surat Basin transported via a 380km underground pipeline to a liqueďŹ ed natural gas (LNG) processing plant and export facility on Curtis Island, Gladstone. The company said the project would generate signiďŹ cant economic beneďŹ ts for Australia and Queensland, including more than 4000 direct jobs at the peak of construction and about 1000

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The company said the project would be built in two stages â&#x20AC;&#x201C; each of 30-megawatt capacity.

The plant was expected to be operational by mid-2011 and would supply electricity to the national grid, Molopo said.

Push for 2010 mine start Northern Energy Corporation (NEC) has announced an initial inferred resource of ďŹ ve million tonnes of hard coking coal in the proposed Colton Mine area, north of Maryborough, Queensland NEC managing director Keith Barker said the company would now ďŹ nalise the proposed mining lease application area for the mine and complete the supporting environmental management plan. â&#x20AC;&#x153;With rail and road capacity currently available to transport product coal to either Gladstone or Bundaberg respectively, NEC is seeking to establish an open cut mine in the Colton area in 2010 subject to the relevant approval processes,â&#x20AC;? he said.

Ensham revises proposal Ensham Resources has submitted revised plans to the Queensland

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Government for the proposed $1.2 billion Ensham Central Project to boost its mining operation outside Emerald. The company says the shift in the mining methodologies compared to those outlined in its 2007 environmental impact statement will signiďŹ cantly reduce the potential environmental impact of the mine and help secure 3000 jobs in the region. â&#x20AC;&#x153;The key change to the plan is our decision not to access the coal beneath the central ďŹ&#x201A;oodplain north of the Nogoa River through open-cut mining,â&#x20AC;? Ensham chief executive oďŹ&#x192;cer Peter Westerhuis said. â&#x20AC;&#x153;The decision results in a reduction in the total area of open-cut mining of 830ha.â&#x20AC;? Accessing coal in that area by underground mining would avoid disturbance in the anabranch of the Nogoa River and the need to construct an additional 12km of levee banks, he said.

LNG boost for NT Northern Territory Chief Minister Paul Henderson has welcomed a new partnership between Santos and GDF SUEZ that will see development of the Petrel, Tern and Frigate natural gas ďŹ elds oďŹ&#x20AC; the north-west coast of Australia. Santos and GDF SUEZ recently announced a partnership to develop a ďŹ&#x201A;oating liquefaction plant with a planned capacity of 2 million tonnes per annum in the Bonaparte Basin. Mr Henderson said the ďŹ&#x201A;oating LNG project would further entrench Darwinâ&#x20AC;&#x2122;s reputation as a regional gas hub. â&#x20AC;&#x153;It also adds weight to the Territory Governmentâ&#x20AC;&#x2122;s plans to develop a marine supply base to service and supply the oďŹ&#x20AC;-shore petroleum exploration and production industries in our region,â&#x20AC;? he said.

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INDUSTRY UPDATE - COAL AND GAS

The Mining Advocate | September 2009

Arcturus study launched

Port development plans

Bandanna Energy has engaged an The Gladstone Ports Corporation independent consulting group to (GPC) and Xstrata Coal are involved in undertake a concept study for the talks over the potential development of development of its Arcturus project as a a coal terminal at Port Alma. potential open-cut thermal mine. GPC chief executive oﬃcer Leo Arcturus is located between the FelixZussino said the corporation was operated Minerva coal mine (located developing a strategic plan to realise on the Springsure rail corridor) and Port Alma’s potential. the Xstrata-operated Rolleston coal “We are currently discussing the mine (located on the Rolleston rail options available corridor) west of to Xstrata Coal to Service Rockhampton develop the port Trucks in central as a major coal Queensland. export facility,” Mr “This is the ﬁrst Zussino said. study of this type “Xstrata Coal have undertaken by been given the the company and right to build a coal highlights both our terminal which will focus on handle up to 30 developing million tonnes of www.equipmentplacement.com.au Arcturus as coal per annum.” an open-cut He said the opportunity and of the overall maturing development of the coal terminal was nature of the company’s key exploration tied to Xstrata’s Wandoan coal project. assets,” Bandanna managing director Dr Ray Shaw said.

Coalfields contract for Huddy’s

Linc completes capital raising Linc Energy has raised $77.4 million through an institutional share placement and share purchase plane. The capital raising was undertaken to provide additional funds for a range of projects including an expansion of Linc’s drilling and exploration programs in Queensland’s Galilee basin and completion of the fourth underground coal gasiﬁcation (UCG) generator at the company’s Chinchilla demonstration site.

Exploration drilling at Capella East Energy Resources is commencing an exploration drilling program at its Capella coal tenement in the Bowen Basin. The company described the tenement as bearing the hallmarks of an area with the potential to host an economic coal resource. It is located 10-15km west of the German Creek, Oakey Creek and Gregory coal mines.

A push into the coalﬁelds is paying oﬀ for Mount Isa-based Huddy’s Mining Services, which recently won a $30 million per annum contract at Cockatoo Coal’s Baralaba mine. That work combined with recent Rio Tinto Coal contracts in the Bowen Basin and Hunter Valley has helped compensate for the revenue lost when Xstrata terminated Huddy’s largest contract early this year due to a decision to place the Handlebar Hill mine on care and maintenance. Industrea managing director Robin Levison said this demonstrated the realisation of the group’s strategy to target the thermal coal sector upon its purchase of the Huddy’s business for $250 million in 2008. The contract term at the Baralaba mine, about 50km north of Moura, is for 18 months with an 18-month extension.

Geothermal exploration The Queensland Government has released an extra 16,000sq km of land

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Thumbs up for Eagle Downs

Exploration drill rigs at work on the Eagle Downs tenements near Moranbah.

Aquila Resources says a feasibility study for the Eagle Downs project near Moranbah has confirmed its technical and financial viability The mine, adjacent to the BMA Peak Downs operation, would initially produce up to 4 million tonnes per annum of hard coking coal from one longwall and up to 8 million tonnes when the second longwall is installed. The $977 million project, a joint venture with Vale, is expected to employ up to 700 people in construction and 300 after operations begin. Aquila said construction of the mine could commence in 2011 with first coal to be mined in 2012 and installation of the first longwall expected in 2014, followed by the second in 2020. The company also announced a maiden reserve for the Eagle Downs project of 159 million tonnes of coal.

for geothermal exploration. Natural Resources, Mines and Energy Minister Stephen Robertson invited competitive tenders for exploration permits covering 29 areas of the state under the Geothermal Exploration Permit Round 5 tender process. “These 29 areas are located west of Cairns and Townsville in North Queensland and around Gayndah in the south-east of the state,” he said.

Administrators appointed Contractor Bounty Mining has gone into voluntary administration after hitting ﬁnancial diﬃculties. The company lost key Queensland contracts at Anglo Coal’s Aquila and Bundoora sites earlier this year.

$17.5m for gas pipe research The Australian Pipeline Industry Association has welcomed a plan to establish a new Co-operative Research Centre (CRC) focusing on the nation’s gas transmission pipeline network. Minister for Innovation, Industry, Science and Research, Senator Kim Carr, recently announced a $17.5 million grant to establish a new CRC in Energy Pipelines and $28 million to establish a Deep Exploration CRC. Senator Carr said this would focus on developing new technologies to drill faster, cheaper, deeper and safer to address increasingly high production costs and low mineral exploration success in Australia.

BETWEEN SHIFTS

September 2009 |

SGA 2009 conference icebreaker

The Mining Advocate

PHOTOS: Stewart McLean

Townsville Entertainment and Convention Centre

Andre de Oliveira (Yamana Gold), Steffen Hagemann (Centre for Exploration Targeting, University of Western Australia) and Marcelo Juliano de Carvalho (Yamana Gold).

David Holwell (University of Leicester) and Clair Wilkinson (Centre of Excellence in Ore Deposits, University of Tasmania).

John Wass (Xstrata Copper) and Richard Lilly (Xstrata Copper).

Independent geologist James Stemler and Allan Turner (Northwest Corp).

Steven McCutcheon (McCutcheon Geo-Consulting), centre, with Lyal Harris and Michel Malo (both from Canadaâ&#x20AC;&#x2122;s National Institute of Scientific Research Water, Earth and Environment Centre).

Michael Agnew (Anglo Gold Ashanti) and Sophie Hancock (Colorado School of Mines).

Engineers Australia Cairns local group luncheon

PHOTOS: Romy Seigmann

Mercure Harbourside, Cairns Sean McGuinness, Christian Jensen and Ross Hicks (all from Ergon).

Jeff Bunt and Warren Olsen (FNQ Ports Corporation).

Daniel Tierney and Warren Hughs (both from AECOM).

Justin Zanetich, Jason Coe and Julian Haysom (all AECOM).

Sunday 11 October 2009 in Anzac Park, The Strand Sausage sizzle from 7 - 7.45am Registration from 7am Memorial Service commencing @ 8am Sadly each year in Australia approximately 58,000 couples experience reproductive loss through early pregnancy loss, stillbirth or death in infancy. Join us at the Band Rotunda, Anzac Park The Strand, Townsville 11 October 2009 for A Memorial Service, Live Butterfly Release, a Walk along The Strand and light refreshments Register for your live butterfly and T-Shirt by 1 October 2009 You may register on-line at www.sandstownsville.org Or contact SANDS Townsville Region Email: marie@sandstownsville.org Phone: (07) 4775 5957

Wayne Kattenberg (Perrott Engineering) and Trent Watson (Ergon).

BETWEEN SHIFTS

The Mining Advocate | September 2009

QREX exhibition

PHOTOS: Belinda Humphries

Rockhampton Showgrounds

Steven Marshall, Glen Fox and George Blyth (all from BMA Saraji Mine) with Larry Gill (Offroad Trucks Australia).

Mathew Gillett and Greg Barclay (Rockhampton Hydraulics).

Brent Hudson (Hudson Specialist Maintenance Services), Gavan McMaster (PRM Maintenance Services) and Robert Dogao (West Auto Electrical).

Peter G Mueller (Straub), Bryan Dobby (Humes) and Wolf Kessler (KCES).

Jim Faix (A C Whalan), Harley Denning (Magnum Australia) and Geoff Wilson (A C Whalan).

Ash Greer (Pioneer Drilling) and Kevin Corporaal (Drillstar Engineering).

Mackay Area Industry Network (MAIN) breakfast

PHOTOS: Lauren Reed

Ocean International, Mackay

Peter Wotherspoon (DBCT Management) with Andrew Garret (Dalrymple Bay Coal Terminal).

Cameron McLean, Alan Haynes, Margaret Clegg and Laurie Willett (all from Haynes Mechanical).

Cr Col Meng (Mackay Regional Council) and James Bidgood (Federal Member for Dawson).

David Dowden (Dowden Plumbing), Tim Squance (Hail Creek Mine) and Dr Bill McWhinney (GROUP Engineering).

Melanie Woodman, Karen McIntyre, Darron Crocker and Sarah Humphries (all from MAIN)

Jamie Reid, Ian Gray (Melco Engineering) and Mark Mattes (CBA).

BETWEEN SHIFTS

September 2009 |

Bush Kids - Cowboys charity ball

The Mining Advocate

PHOTOS: Roslyn Budd

Mount Isa Irish Club

Clayton Cook (TP Human Capital), Annette Bartels and Dr Neil Bartels (Royal Queensland Bush Children’s Health Scheme ), Jennifer and Michael Holmes (Xstrata Copper, Mount Isa Mines).

Keith and Di Clarris with Mark Vandertogt (Just 4 Kids children’s charity).

Nikki and Richard Cooper (Xstrata).

Barbara Gate, AnnMarie MacRae and Elizabeth Gallard (all Allied Health).

Cheryl Miller (Royal Queensland Bush Children’s Health Scheme) with Terry Johnston (NQ Cowboys).

Peter Collings (WestWing Aviation), Fiona Pelling (NQ Cowboys), Dean Lance (NQ Cowboys) and Owen Taylor (WestWing Aviation).

Engineers Australia north western local group ball Redearth Boutique Hotel, Mount Isa Paul Steene (iPowerSolutions), Wayne O’Hanlon (iPowerSolutions), Monica Joseph (Xstrata Copper), Clealand Smith (Bilfinger Berger) and Gary Osman (Bilfinger Berger).

John McGuffin (Xstrata) and Samantha McGuffin.

Stella De Best and Charlie Gilmore (both from Xstrata Copper).

Davey Cawood (Xstrata Copper), Matthew Briant (Remote Control Technologies) and John Scibberas (Xstrata Copper).

Tyr Ibardolaza (Xstrata Copper), Sharyn Memmott (Mount Isa City Council) and Fair Ibardolaza (Queensland Education Department).

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BETWEEN SHIFTS

The Mining Advocate | September 2009

Queensland Mining Industry Health and Safety Conference

PHOTOS: Stewart McLean

Townsville Entertainment and Convention Centre

Bill Champion (Rio Tinto Coal Australia) and wife Barbara with Shane Phillips (BMA Saraji Mine).

Emma Schumacker and Stephen Scott (University of Queensland) with Lesley Philp (University of Central Queensland).

Ian McDonell (Peabody Energy), Geoff Nugent (Queensland Mines Rescue Service) and John Rose (Centennial Coal).

Rob Walker and Stephen McInerney (both from Xstrata Zinc).

Kevin Stockton, Eddie Booth and Shane Phillips (all from BMA Gregory Crinum Mine).

Jason Economidis (BHP Billiton Mitsubishi Alliance), Michael Roche (Queensland Resources Council), Steven Keyser (Leighton Mining) and Marcelo Bastos (BHP Billiton Mitsubishi Alliance).

Goonyella Riverside Social Club Hollywood-themed fancy dress night

PHOTOS: Erica Smith

Moranbah Workers Club Bruce McCosker (Joker), Andrea McCosker (Batgirl), Sonia Horvat (Felicity Shagwell) and Frank Horvat (Austin Powers).

Cathy Storer (Cruella de Vil), Eddie Storer (Al Capone). Dianne Clough (Priscilla), Warren Clough (Elvis), Graham Child (Sonny) and Joanne Child (Cher).

Janine Madden (Marilyn Monroe) and Daniel Corney (Benicio Del Toro).

North West Crane Hire

September 2009 |

The Mining Advocate

Firm delivers on client needs North West Crane Hire was born out of a demand for good service and its owners take pride in continuing to fill that brief. An aﬃnity with clients’ need to have problems solved is at the centre of what has become the largest crane hire business in north-western Queensland. Mark Bellamy was working in the Gulf of Carpentaria when he met his wife and business partner, Leanne. They were 16 years old at the time. Mr Bellamy had already been working for his fencer uncle for two years, starting at four in the morning and often ﬁnishing at seven in the evening. It formed his work ethic, he said. He became a rigger, operator and supervisor for a number of companies in Mount Isa, then in 2004 he had an itch … to buy a crane. Mr Bellamy was driving the 50-tonne rig back from Brisbane

at around 70km/h – his bank balance battered – when, at about Winton, he received a mobile phone call that resulted in his first job with the crane (at ERA’s Ranger uranium mine in the Northern Territory). North West Crane Hire was born out of the need for good service and grew on delivering the same, Mr Bellamy said. “When someone rang up with a problem, I wanted to solve it,” he said. “I didn’t want clients to go to someone else. That was the key behind it. I wanted to be the first port of call. “Even if I didn’t have a crane, or didn’t have a truck or chain block, I would find it and make it happen. “If I didn’t have a Franna or

Managing directors Mark and Leanne Bellamy with one of their Kenworth prime movers. Photo: Roslyn Budd

a 100-tonne crane, I would hire it and make sure everything was ready to go and the client didn`t have to worry.” The business is in its ﬁfth year now and has grown to the point where there are 97 units on the inventory including 16 cranes, 13

cherry pickers, ﬁve prime movers and 15 trailers and dollies. The company now has two cranes in Brisbane. There’s another crane in Dalby on Queensland’s Darling Downs and one in Western Australia. There are now more than 50

Yard boss is ‘Choice’

Workers encouraged to enhance skills Mark and Leanne Bellamy drew from their experience in various businesses including other hire companies when starting North West Crane Hire in 2004. As the business expanded they needed both the backup of good people with their own experience and a training system to meet the requirements of upgraded plant and facilities. That presented opportunities for staﬀ, Mr Bellamy said. “One thing I am about is training our blokes up,” he said. “We also like to train young people as well.

“If our blokes want to better themselves … I am all for it because at the end of the day, if they’re willing to put the time in, then we can use them.” Attracting and retaining likeminded staﬀ has been a priority. “If you don’t have the right people, you can’t do the job properly, that’s the bottom line,” Mr Bellamy said. “I’ve had good people right from the start. I knew them from previous employment and I knew they were the people I wanted because they had the same ideas as I did. “

Safety top priority Professionalism and consistency of staff make for a safe work environment when vehicles from North West Crane Hire are on site. It was no co-incidence the business had such a good safety record, company safety officer Torren Bocos said. “To work for a company where training is the priority is the ultimate for a safety officer,” he said. “It has to be that way, because if you don’t have the management above you thinking that safety is No 1, then you have nothing. “We have to be professional about everything we do and the professionalism comes from the top. Without their support and go-ahead you have nothing.” The retention of key staff was another key, he said.

The breathalyser in the main North West Crane Hire admin building shows how serious the company is about setting standards in safety. It was a preventative measure not a punitive one, company director Mark Bellamy said. “I introduced it to ensure that all our blokes are ﬁt to work any time of the day,” he said. “If they get a call in, they come in here and blow in the bag. If they are on site we have handheld units and all our blokes blow in the bag. “Our policy is a zero alcohol limit and no drugs in their system. It is up to them and they know if they blow a reading, they are gone (oﬀ site).” The units had the capacity to tell people what they often didn’t know about themselves, Mr Bellamy said.

staﬀ on the North West Crane Hire payroll. That’s a long way to come in the short time since Leanne Bellamy was processing pays in the family dining room in between shifts earning wages. The business had a simple tenet to solve problems and not create them, which came down to having pride in workmanship, Mr Bellamy said. “Mines want minimum down time on shutdowns,” he said. “If you go in there with stateof-the-art equipment with all the safety gear on, you know that everything is taken out of the equation in that regard. “When you go there you do the job safely, you’re not going to break down and their plant is going to be running quickly. It’s in and out, more or less. “If you’re ‘Joe Blow’ with a 1920s tractor, it is really not going to make it.”

Operations manager Kelvin Ryan and head crane operator Bevan Shillabeer. Photo: Roslyn Budd

Quality people and excellent equipment foster conﬁdence North West Crane Hire operations manager Kelvin Ryan, born and bred in Mount Isa, says working for a company with a good reputation makes for “an easier day”. Mr Ryan, fellow supervisor Martin Carrington and senior operator Bevan Shillabeer deliver on the promises made by North West Crane Hire to clients. Mr Ryan arrived at the business three and a half years ago as a rigger operator and now

plays a major role in organising shutdowns and maintenance operations for North West Crane Hire that could mean millions of dollars in downtime to the client. Quality people and quality equipment meant that the client could be conﬁdent the company was able to provide services on time and on budget, he said. A ﬂat management structure promoted commitment, Mr Ryan said.

Safety manager Torren Bocos breath tests supervisor Martin Carrington. Photo: Roslyn Budd

Choice North West Crane Hire “yard boss”

The reputation of yard bosses varies from site to site only in degrees. To say they are a warmhearted and compassionate lot given to forgiving small indiscretions, like not cleaning the machinery after it has been in the field, is probably stretching it. In fact, most yard bosses would take your leg off. The yard boss at North West Crane Hire is more likely to cock a leg at shoddy work. “Choice”, the 10-year-old bull mastiff cross, oversees the North West Crane Hire fleet of more than 90 units and has a sharp nose for misbehaviour. He inspects the comings and goings of all vehicles and people. North West Crane Hire director Leanne Bellamy said staff showed the appropriate amount of respect. “When the guys knock off in the afternoons, he’ll go out there and get his pat and sniff all the machines,” she said. “In the mornings and at smoko he gets fed like a king. Everyone loves him.”

North West Crane Hire

The Mining Advocate | September 2009

Who’s ugly? North West Crane Hire’s generous support of charity once sparked an insulting encounter involving a league legend. When Brisbane Broncos enforcer Tonie Carroll called a Mount Isa pooch ugly, it was described as a case of the pot calling the kettle black. At the time, Carroll and other legends of league Mick Hancock and Gene Miles were attending a sportsman’s dinner at Mount Isa’s Redearth Boutique Hotel to help raise funds for the Royal Flying Doctor Service. Carroll ended up slighting company director Leanne Bellamy’s Shar-Pei while oﬃcially handing over a framed tribute in recognition of North West Crane Hire making the largest donation of the night. Mrs Bellamy recalls it was the result of some spirited bidding by eldest daughter, Danielle, who ended up setting a benchmark $10,000 for the event. “Our daughter went mad bidding and we spent the most money of the night,” she said. “I rang the organisers and asked if the footballers could come down to the yard and hand them over.

“They came out on the Sunday and brought the big framed portraits. We took the opportunity to bring the kids down and take some photos - it was great.” The company’s sponsorship of NQ Rescue (the North Queensland Helicopter Rescue Service), which has so far totalled more than $75,000, was part of North West Crane Hire’s commitment to the community, Mrs Bellamy said. “We are a great believer in NQ Rescue,” she said. “We all live, work and play in at times some very isolated areas. It is good to have peace of mind for not only our workforce but the entire community.” NQ Rescue is a not-forproﬁt organisation established in Mount Isa in early 2007 to provide a full-time dedicated community rescue helicopter service for the people of the north-west. North West Crane Hire is also involved in sponsoring sporting clubs and events, including the

North West Crane Hire has the following equipment and cranes on offer: 18-220t Cranes 34ft – 85ft EWP’s 3 x 10m Tippers Semi’s, Flat top and Step Deck Trailers IT Loader 3t-7t Forklifts Tilt Trays Crane Operators, Riggers, Labourers, Tradespeople and Supervisors available The company, directed by Mark and Leanne Bellamy, commenced in 2004 with one 50t Crane and now the fleet has expanded to 97 various units with more cranes, semi’s and equipment on order and due to arrive in 2010. Mark Bellamy: 0407 620 868 Kelvin Ryan: 0422 124 083

Battle of the Mines rugby league competition held in Cloncurry each year. “That’s one thing (co-director) Mark (Bellamy) and I strongly believe in,” Mrs Bellamy said. “We sponsor a lot of teams; (including) tennis and boxing. Softball is one of our major ones as well as junior rugby league and touch football.” This year alone, local sporting and community groups will receive more than $20,000 from the company.

NQ Rescue has received more than $75,000 in donations from North West Crane Hire. Photo: Roslyn Budd

Admin the backbone of business In business, safety and profitability are related to governance like the tides are to the moon. The management of procedures and process falls to the administration section at North West Crane Hire. A business that grew from one employee to 50 in four years has to be watertight when it comes to accountability and Leanne Bellamy says each staff member has a role that carries as much weight as the next. “I expect loyalty and reliability from staff and they can expect it from us,” she said. “We have a very low turnover and I think that is because of the way we treat our people.” The administrative staff were hand-picked, Mrs Bellamy said.

“We have Linda King; she’s our Xstrata accounts person. She meets every supervisor on site that calls in contractors and gets them to sign off on the paperwork. That ensures a smooth run. “Shayne Fox is our finance manager and senior admin person. She looks out for us and picks up all the loose ends. She is very company oriented, loyal and very efficient. “We are also very proud of both our daughters. They both came from admin backgrounds but have both become very competent riggers and crane operators. “Terrianne is now back in the office and Danielle operates one of the cranes in Port Hedland”

SAFETY

September 2009 |

The Mining Advocate

Industry innovation honoured A fall guard for longwall conveyor belts and a safer way of shifting coal feeder blockages have drawn accolades for their inventors. BMA’s Gregory Crinum and Saraji mines took top honours in a recent awards night in Townsville recognising innovations to improve safety on Queensland mine sites. Gregory Crinum Mine received the 2009 Queensland Mining Industry Health and Safety Innovations Award for a safety guard to prevent falls on to exposed longwall mine conveyor belts. The team of employees who developed the winning conveyor belt guarding system included Mike Nesbitt, Andrew Kruger, Eddie Booth, Peter Smitt, Mick Parsons and Brad Stewart. Saraji Mine’s feeder blockage removal device was named People’s Choice in the innovation awards.

The device enables blockages under coal stockpile feeders to be cleared remotely, keeping workers out of harm’s way. The team behind that innovation included Shane Phillips, Glen Althaus, Glenn Deaves, Matt Boswood, Dave Kilpatrick, Warren Borg, Max Fraser and Bob Eldridge. A highly commended award went to Anglo Coal Australia’s Dawson Mine for a work platform that provides better access to the CAT 797 haul truck to enable maintenance to be carried out more safely. BHP Billiton Mitsubishi Alliance chief executive oﬃcer Marcelo Bastos congratulated the BMA employees recognised in the innovation awards. In addition to the winning

Mike Nesbitt and Eddie Booth from BMA’s Gregory Crinum Mine with the 2009 Queensland Mining Industry Health and Safety Innovations Award following the presentation in Townsville. Photo: Mark Duffus

entries from Gregory Crinum and Saraji teams, he said BMA’s Goonyella Riverside Mine was among the 10 award ﬁnalists with its Dipper Trip System Improvement Project. “BMA proudly supports our safety leaders, such as these award winners, as we work towards a safety culture where

Jellinbah named top workplace in Healthy Queensland Awards Employee health is a vital factor in maintaining a safe workplace, according to Jellinbah mine general manager Ian Cooper. As the winner of the workplace category of the inaugural Healthy Queensland Awards, Jellinbah Mining has been recognised as an industry leader in supporting wellbeing initiatives for its employees. “One of the things I said at the awards is it’s very difficult for us to achieve zero harm if we have, for example, an unfit miner trying to get up into a piece of equipment,” Mr Cooper said “How can we not have incidents if for some reason they pull a muscle or slip because their health and condition is not suitable for the activity we’re asking them to do? “People have to be alert, physically fit and able to concentrate.” As a result of its recent win, the company has been awarded $35,000 for research on how to further enhance the engagement of workers in its wellness program. The Jellinbah coal mine, between Bluff and Blackwater in central Queensland, employs about 130 people directly and a

further 180 through contractors. Mr Cooper said the operation enjoyed high staff retention levels thanks to a raft of initiatives including its wellness program and a friendly rostering policy, including no Saturday night or Sunday production shifts. “We have things like free doctor’s assessments on site, quit smoking treatments, a safe spine program – which includes exercises at the start of and during their shifts to build up core muscle strength – and we offer reimbursement for money spent on local gym visits,” he said. “There’s support there for families as well as personnel, whether to do with financial counselling or other stressful events that may not even be work related.” Jellinbah Mining and Ford Health are spending about $200,000 on research to improve employee uptake of health initiatives and information. Mr Cooper said they were also looking into establishing online protected access to people’s own medical records to allow individuals who moved from town to town to maintain

connection with their medical history. The Queensland Government initiated the Healthy Queensland Awards, in partnership with Keep Australia Beautiful Queensland, to help meet its 2020 target to make Queenslanders Australia’s healthiest people. BHP Billiton Mitsubishi Alliance’s (BMA) Saraji Mine also reached the award ﬁnals after winning the regional Healthy Workplace award for the Whitsunday, Mackay and Isaac regions.

every person shows a genuine desire to assist and support each other in the pursuit of zero harm,” Mr Bastos said. Natural Resources, Mines and Energy Minister Stephen Robertson presented the awards at the Queensland Mining Industry Health and Safety Conference.

About 600 people converged on Townsville for the conference, hosted jointly by the Queensland Government, the Queensland Resources Council and mining unions the CFMEU and AWU. The innovation awards drew 44 entries this year.

Understanding snakes Preparing employees for encounters with snakes is part of the training brief for remote work sites such as BHP Billiton’s Cannington Mine in north-west Queensland. The operation recently ran two fauna relocation and management courses, conducted on site by Sonia Dewdney from the Australian Reptile Research and Breeding Centre. The courses were organised to increase employees’ understanding of native fauna as well as ensuring there are suﬃcient numbers of

trained personnel to assist the mine’s environmental department in the relocation of snakes and other reptiles. Snakes are protected by law throughout Australia and may not be killed unless they threaten life. Ms Dewdney said many of the snake bites in Australia could be avoided, but it took training to understand a snake’s behaviour and how to respond safely. First aid and reducing the likelihood of snakes entering the workplace were core components of the course.

Tarong achieves low injury record Tarong Energy says it achieved a safety record during a recent $35 million generator overhaul at Tarong Power Station, 180km north-west of Brisbane. The eight-week overhaul – the largest in the operation’s 25-year history – saw more than 600 contractors join Tarong Energy employees to carry out more than 180,000 hours of work. Tarong Energy chief executive oﬃcer Helen Gluer said the landmark shutdown delivered a major boost to the local economy

with a safety record that was a testament to the professionalism of Tarong staﬀ and contractors. “During the shutdown of Unit 2 a record number of man-hours were worked with not a single lost time injury,” she said. “Since our 2005 overhaul of Unit 2, we have consistently improved safety to a point where this shutdown produced a 90 per cent reduction in incidents requiring minor treatment.” As part of the Unit 2 shutdown, Tarong Energy

installed 30 low nitrogen oxide burners. Sixty such burners are now installed at two of Tarong Power Station’s units, the only coal-ﬁred power station in Australia to use this type of emission-reducing burner. Tarong Energy is overhauling all four generating units at the power station, with the Unit 1 shutdown completed successfully in January 2009. Units 3 and 4 are due for major overhauls over the next couple of years.

SAFETY

The Mining Advocate | September 2009

Campaign to cut mine crashes A State safety leader says the time has come for the resources industry to take up technology to help prevent deadly vehicle accidents. A push to have life-saving proximity detection and collision avoidance devices installed across all Queensland mining operations is top of the agenda for the State’s new Mine Safety and Health Commissioner. Stewart Bell said the Queensland Government would soon make such systems mandatory, although he would not stipulate a timeframe for such a move. The Mines and Energy Department has been conducting seminars throughout the state to showcase the technology available in a bid to increase its take up by coal and metalliferous mining operations. “We’ll give industry reasonable time - it will be a reasonably short period of time - where if they haven’t taken steps to put that technology in we will be looking at a mandate to do it,” Mr Bell said. He said the state’s mines and quarries had suﬀered four fatalities last ﬁnancial year and one early in 2009/10.

“Four of those ﬁve involved vehicles in one form or another and proximity detection would have stopped at least two of them,” Mr Bell said. “30 or 40 per cent of fatalities could be avoided with proximity detection or collision avoidance on underground and surface mines. “They’re the sort of numbers we’re looking at.” The seminars run in Mackay, Blackwater, Townsville and Toowoomba in AugustSeptember included presentations by technology suppliers as well as mine operators already using proximity detection and collision avoidance technology, he said. “We can’t mandate something that is not technically feasible. That’s why we’re very careful – the people at these seminars, the technology they put forward has to work,” Mr Bell said. BMA’s system at Gregory Mine, Downer EDI operating at Millenium and Xstrata in Mount Isa were among the operations

Queensland Mine Safety and Health Commissioner Stewart Bell. Photo: Bruce Peebles

using proximity detection and collision avoidance technology eﬀectively, he said. “The percentage of coverage (across Queensland mines) at the moment is maybe 10 to 20 per cent, open cut and underground,” Mr Bell said. “What’s happened is in recent years the technology has really advanced to the stage where the systems work well. Things that have caused problems in the past have been ironed out.

“These systems run on a range of technology – some GPS, some radar, some sonar and some cameras. “We’re showing the industry what’s out there.” The Bligh Government introduced the independent statutory position of Commissioner for Mine Safety and Health following a recommendation from the Queensland Ombudsman. As Commissioner Mr Bell will

provide advice directly to the Mines and Energy Minister on mine safety and health issues, act as an advocate for mine safety and provide a written report to Parliament on the performance of the Mines Inspectorate. He is also responsible for commencing prosecutions under Queensland’s various mining safety and health laws. Mr Bell held the position of Safety and Health Division executor director within Queensland Mines and Energy prior to his appointment as Commissioner and will continue in that role. In addition to collision avoidance and proximity detection technology, Mr Bell said the two major issues he was focusing on at the moment included health issues such as dust, noise exposure and musculoskeletal damage. He said the role of human behaviour in accidents was also at the centre of a major project, HFACS (Human Factors Analysis and Classiﬁcation System), to help investigators identify underlying causes and potential changes to reduce risk.

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Building Mining Communities

September 2009 |

The Mining Advocate

Workers donate safety bonus The local community is reaping the rewards of a generous funding initiative by coal mine employees. safety bonus paid recently after the BMA site reached a milestone of 50 days free from classiﬁed injuries. Mine general manager Dave Crawford said

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A Dysart boy aﬀected by cerebral palsy is among the beneﬁciaries of $51,000 in community donations from the workforce at Peak Downs Mine. The funds stem from a

Peak Downs employees had donated more than $700,000 for community and other projects in the past ﬁve years. “The generosity of our workforce has funded initiatives and projects which beneﬁt not only the clubs and organisations receiving the funds, but the wider community,” he said.

“This reward will fund a number of community projects including the purchase of a secondhand vehicle to carry a large water tank for the Grosvenor Creek Rural Fire Brigade, a kitchen upgrade at the playgroup building and the upgrade of the track and ﬁeld facilities at the Moranbah East State School. “In addition, I am very proud to announce that $1000 will go towards helping one of the special needs children in our community.” Cade Beradi suﬀers from mild cerebral palsy in his right side and his mother Michelle sought help to purchase a tricycle designed for children with special needs. ”The tricycle will be great because it will help him to feel independent, enable him to exercise muscles that he would not normally use during his everyday activities and will allow him to get outdoors to participate in games with his brother and sister,” she said.

Cade Beradi with Peak Downs Mine general manager David Crawford, human resources manager Mark Stroppiana and maintenance manager Brendan Lynn.

The reward program started as an incentive to reduce workplace hazards and to encourage the reporting of potential accidents or near misses, to make people more aware of safety. CFMEU Peak Downs lodge president Terry Low said workers had originally been oﬀered rewards such as dinner vouchers. “However our members took the view that they did not require ﬁnancial

We remember Moura No. 2 Explosion, 1994 7 August 2009 On 7 August, 1994, an explosion claimed the lives of 11 night shift workers at the Moura No. 2 Mine in Central Queensland. Those who died were John Dullahide, 44, Darrell Hogarth, 46, David King, 24, Geoffrey Mazzer, 45, Mark Nelson, 36, Robert Newton, 39, Robert Parker, 39, Chris Ritchie, 27, Michael Ryan, 31, Michael Shaw, 27, and Terry Vivian, 49. The men who died were working 265 metres underground and three kilometres from the mine entrance. A subsequent formal inquiry into the loss of life said management had not taken adequate steps to inform Moura workers of risks of explosion and had made no attempt to keep miners out of the mine. The report of the inquiry said management assuptions on safety represented a passage of management neglect "which must never be repeated in the coal mining industry." The CFMEU is lobbying to maintain Industry Specific Legislation, to ensure disasters like this never happen again. In 13 incidents since 1961, 47 lives have been lost in the MouraKianga coal fields. The largest of these were Kianga No. 1 in 1975 (13 lives), Moura No. 4 in 1986 (12 lives) and Moura No. 2 in 1994 (11 lives).

incentives to stop themselves getting hurt at work,” he said. “The company was keen to put money towards safety in some form so we said ‘don’t give it to us, channel it towards some community organisations’.” He said CFMEU representatives were included in the committee that had been established to assess potential safety fund recipients.

Building Mining Communities

The Mining Advocate | September 2009

Diane inspired by schoolgirl’s story Visiting Cambodia as part of a leadership challenge proved a ‘life-changing’ experience for this central Queensland resident. A simple portrait of a Cambodian schoolgirl sits as inspiration in the Mackay oﬃce of Maritime Mining Power Credit Union business development oﬃcer Diane Saroglia. Ten-year-old Sopheap takes English classes after school before helping her mother sell bottled drinks from the family’s home in a rural village in the Sangke district. “She told us she wants to be a doctor and is saving 25 cents a month so that she can go to university,” Ms Saroglia said. “She really inspired me.” Sopheap was among the many “everyday” Cambodian people who contributed to what Ms Saroglia describes as a lifechanging experience when she travelled to the poverty-stricken South-East Asian nation as part of a Credit Union Foundation

Ten-year-old Sopheap is saving money to go to university.

Australia (CUFA) initiative. Ms Saroglia spent 10 days in the country, including a fourand-a-half-day bicycle trip, for CUFA’s Cambodian Leadership Challenge 2009.

Her eﬀorts to raise the $3000 required to qualify for the trip drew generous assistance from the CFMEU Mining and Energy Division and the Maritime Union of Australia. Ms Saroglia’s area of responsibility with the credit union stretches from Mackay west to Blackwater, south to Gladstone and north to Townsville and is centred on a clientele of CFMEU and Maritime Union of Australia members. “I ended up raising more than $6000 – mainly from the CFMEU and the Maritime Union,” Ms Saroglia said. “All of the money raised – 100 per cent - goes directly to CUFA’s Children’s Financial Literacy Program.” Ms Saroglia, 48, said the leadership challenge had included a 235km cycle ride through Cambodia – a feat she found quite taxing physically. However, she said hitting the back roads on a bicycle had the beneﬁt of putting the challenge

Mackay-based Maritime Mining Power Credit Union business development officer Diane Saroglia. Photo: Lauren Reed

participants in closer contact with the reality of daily life in Cambodia’s poorer provinces. The trip also included a program of visits to the small savings banks that operated as credit unions for local residents, she said. Ms Saroglia said the group had gone into four schools as well and made family visits as part of a ﬁnancial education initiative to help rural children. She said they had spoken to children who revealed they were aged about 10, despite appearing as tiny as ﬁve-year-olds due

to the eﬀects of long-term undernourishment. And they had found very small children who were saving what little money they could earn towards long-term goals such as going to university, she said. Ms Saroglia said her experience had prompted her to join CUFA’s Village Entrepreneur Initiative (details at www.cufa.com.au ), contributing $32.50 a month to help a Cambodian villager achieve a business goal.

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Building Mining Communities

September 2009 |

The Mining Advocate

Riversleigh trainees riding tall At-risk youths have the chance to develop key skills for the pastoral industry in a program supported by a northern zinc operation. Six indigenous pastoral trainees demonstrated their horsemanship in front of more than 100 people from Gulf communities, neighbouring properties and MMG Century Mine at this year’s Riversleigh open day. The trainees - from Doomadgee, Mornington Island and Gregory - are completing their Certiﬁcate II in Agriculture – Beef Production at Riversleigh Station, about 225km north of Mount Isa. The station is part of a 218,000ha pastoral property operated by the Lawn Hill Riversleigh Pastoral Holding Company. Each year, the company selects at-risk youth interested in pursuing a career in the pastoral industry to participate in a two-

year course at the station. More than 30 young indigenous people, aged 14 to 25, have been employed as pastoral trainees at Riversleigh since the training program began in 2002. This year’s open day saw the family of the late Don George, a founding director of the pastoral holding company, oﬃcially opening the Don George Training Complex. The training complex, donated by MMG Century, will provide opportunities for trainees to learn computing and business skills in addition to their pastoral qualiﬁcations. MMG Century general manager John Lamb, a member of the pastoral holding company board, described the open day as a chance for the community to come together to recognise the

Sharon helps pupils master three Rs Indigenous teacher aide Sharon Priestly is helping improve the literacy and numeracy of 30 students from Clermont State School thanks to funding from Rio Tinto Coal Australia. The company’s Clermont Aboriginal Community Development Fund has provided $29,000 to the school to employ Ms Priestly, who provides support for children requiring extra help with those basic skills. Teacher Jenny Cruickshank said the school was very pleased to receive assistance from the fund, which will also provide additional books and reading resources for the students. “Sharon supports around 30 indigenous and non-indigenous students from years 1 to 7 who require extra help with their learning,” she said. “She helps deliver interactive reading and writing programs by playing educational games and in some cases, helps the students chart their progress to increase their motivation levels. “Her work also connects students from three diﬀerent locations in Queensland via the internet so they can participate in web conferences, attend virtual classrooms and hone their email and communication skills.” The Clermont Aboriginal Development Fund was launched in November 2008 to assist the Wangan and Jagalingou people, the traditional owners of the land on which Clermont and Blair Athol mines operate. Fund executive oﬃcer Debbie Alvoen said the fund aimed

hard work of the trainees. “The pastoral company aims to provide personal growth opportunities, as well as career options, for young indigenous people,” he said. “These six young men, and the men and women before them, have shown that with commitment, enthusiasm and hard work this, and many other things, are possible.” 2009 Beef Australia Rabobank Young Ambassador Elisha Seekamp attended the open day and said that she was impressed by the commitment of the pastoral company in assisting local indigenous youth to gain employment. Riversleigh is located about 60km from the MMG Century Mine site at Lawn Hill and was one of ﬁve pastoral properties purchased in 1997 during the development phase of the operation. In accordance with the Gulf Communities Agreement, under which MMG Century operates, these ﬁve pastoral properties are to be transferred to the appropriate Native Title groups. Today the pastoral holding company is 51 per cent owned by the Waayni people and 49 per cent owned by MMG Century.

Beef Australia Rabobank Young Ambassador Elisha Seekamp with pastoral trainee Charlie Dick, who won the horsemanship challenge during the Riversleigh open day.

Support by the truckload RIGHT: Ernest Henry Mining employees Vicki Wilson, Belinda Benjamin and Nicole Bulley dressed in 1860s costumes for EHM’s float in the Curry Merry Muster Festival’s mardi gras parade. BELOW: EHM’s entry in the 2009 Ernest Henry Mining Curry Merry Muster Festival mardi gras parade included a 50-tonne service truck.

Sharon Priestly Clermont State School teacher aide

to support projects providing the Aboriginal community with opportunities in business development, education and training.

Dyno Nobel backs Bush Kids scheme Explosives ﬁrm Dyno Nobel had added its weight to a NQ Cowboys-led program to assist in the revitalisation of the Royal Queensland Bush Children’s Health Scheme in Mount Isa. “We have a keen interest in the Mount Isa area with a major depot and a large local employee base there, and our partnership reﬂects our community commitment and focus on families,” said Dyno Nobel business manager – underground, for Queensland and the Northern Territory, James Woodgate. “Bush Kids are a fantastic organisation

providing local access to treatment and services that would otherwise involve signiﬁcant travel to larger centres, and Dyno Nobel is proud to be involved in securing their ongoing operation.” The ﬁrm joins TP human capital, BHP Billiton Cannington Mine, Mount Isa Airport, Mount Isa Irish Club and the Port of Townsville in supporting the organisation through the Cowboys Community Partners’ Program.

A 50-tonne Ernest Henry Mining (EHM) truck led the mardi gras street parade at this year’s Curry Merry Muster Festival as part of a company entry celebrating the region’s mining heritage. About 20 EHM employees took part in the parade, including some dressed as miners and women from the 1860s when pioneer Ernest Henry prospected and mined in the Cloncurry region. Others dressed in modern mining attire with full personal protective equipment. The theme for the 2009 mardi gras parade was “Q150 – digging up Cloncurry’s past” and EHM called its entry “Mining – past and present”. The copper miner has committed as naming rights sponsor for the Cloncurry festival, which includes the Merry Muster Rodeo, for this year and 2010.

Building Mining Communities

The Mining Advocate | September 2009

New health partnership

In touch BHP Billiton’s Cannington Community Fund is aiding a project to link sick kids with vital cancer services via the internet. Children with cancer in regional Queensland may be spared trips to Brisbane for specialist outpatient care in future thanks to a new partnership between the Royal Children’s Hospital (RCH) Foundation and a northwest Queensland mine. The RCH Foundation has formed a two-year partnership with BHP Billiton Cannington’s Community Fund to develop the Internet-Video Care for Children with Cancer (ICCC) Project. The Cannington Community Fund is providing more than $118,000 for the project, which will investigate the role that home-based internet and webcams may be able to play in providing specialist care to children with cancer in regional and remote areas. RCH Foundation chief executive oﬃcer Karenlee Spillane said the project team from hospital’s Centre for Online Health would work alongside the Queensland Children’s Cancer Centre, also based at the Royal Children’s Hospital. “Each year, the QCCC cares for more than 120 newly diagnosed patients, with the majority from regional and remote areas of the state,” she said. “Children with cancer require many months of initial intensive treatment as a hospital inpatient. “When the children are well enough to be discharged, most

will require years of outpatient treatment and monitoring to ensure their cancer doesn’t return.” While the diagnosis and treatment of a child with cancer represented a major stress for any family, she said those in regional areas were additionally burdened by the cost and disruption involved with the need to travel long distances for specialist care. “The ICCC Project hopes to minimise this stress for regional families,” Ms Spillane said. “It aims to reduce the need for them to undertake frequent travel for outpatient visits. “Furthermore, in cases where children do need to travel to Brisbane for care, it is also using webcams to link family members who have had to stay at home.” BHP Billiton Cannington asset leader Bob Fulker said the mine’s community fund existed to help people in a number of ways, including through sustainable health projects. “Even though the focus of the fund is on northern and western Queensland where our operations are located, it’s great to support projects that have beneﬁts across a wide area,” he said. The ICCC Project has just commenced and is still recruiting patients to participate.

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Champion eﬀort in shave challenge Queensland mining communities have demonstrated great support for leukaemia patients and their families, raising more than $350,000 across the state in the 2009 World’s Greatest Shave Mine Challenge. The top resources industry fundraisers included BMA Blackwater Mine, Xstrata Mount Isa Mine, Bechtel Australia,

Darryl Atkinson, his wife Teresa and their children Jayden (5), Logan (3) and Caleb (17 months) raised more than $12,000 as part of the World’s Greatest Shave event.

Social club contributes Hastings Deering Townsville recently donated a total of $3000 to children’s charities after winning two company safety awards, The monthly safety awards earned the branch $3000 on each occasion – $1500 towards its social club and the remaining $1500 to be donated to charity. Social club members voted to donate to the Starlight Children’s Foundation and Camp Quality.

Paul Barnard (centre) from the Leukaemia Foundation of Queensland presents BMA Blackwater Mine employees John Hembrow, Pam McGorrery, James Davis, Steve Badenhorst, Lenny Ryan and Mithran Manuel with the Mine Challenge Shield, recognising their team as highest fundraiser in the 2009 World’s Greatest Shave Mine Challenge.

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BMA Peak Downs Mine, BMA Saraji Mine, Ensham Resources, Xstrata Coal Queensland, BMA Goonyella Riverside Mine and BP Bulwer Island Refinery. Leukaemia Foundation of Queensland chief executive officer Peter Johnstone said those parties had collectively raised more than $193,000 in the mine challenge and were all within the State’s Top 30 fundraisers overall for this year’s World’s Greatest Shave event in March. More recently, BMA Saraji Mine employee Darryl Atkinson along with his wife Teresa and their children Jayden (5), Logan (3) and Caleb (17 months) all shaved their heads for the cause, raising more than $12,000 from their efforts. Thanks to BMA Saraji Mine matching each dollar raised, the total funds raised in the Dysart family’s effort would amount to more than $24,000, Mr Johnstone said. Mr Johnstone said every dollar raised through the Mine Challenge would directly benefit patients and their families living with leukaemias, lymphomas, myeloma and related blood disorders, with funds helping the Leukaemia Foundation continue to deliver its vision to cure and mission to care. “Every site and representative who did their bit to colour, shave or support others who bravely put their locks on the line deserves recognition for their terrific effort and commitment to making a difference to the lives of affected patients and their families,” Mr Johnstone said. BMA vice-president of health, safety, environment and community, Jason Economidis, said he was continually amazed at the generosity of BMA’s workforce and their ability to dig deep in response to worthy causes. “The World’s Greatest Shave is an event which makes people stop and think about the challenges faced by people battling with leukaemia,” he said. “BMA is very supportive of our employees’ involvement in causes that are important to them and that shows by the level of funds our employees have raised. “I would like to particularly mention the effort of BMA’s Blackwater, Peak Downs, Saraji and Goonyella Riverside Mines, who collectively raised more than $92,000.”

Building Mining Communities

September 2009 |

The Mining Advocate

BMA community advisor Leah Fay shows off the Norwich Park mural with Dysart High School students Helena Tramacchi, Terri Lehmann, Tayla Sauney, Ellouise Fennell, Connie Moore, art teacher Suzi O’Hare and local artist Jo Beatty.

Dysart marks anniversary year Six Dysart high school students have helped transform the Norwich Park Mine’s administration building in a mural project to mark the Bowen Basin coal operation’s 30th anniversary. Norwich Park Mine is joining Saraji Mine and the Dysart Community Centre to host a

“Big Birthday Bash” on October 17 to celebrate the BMAowned mines’ 30 and 35-year anniversaries respectively and Queensland turning 150. The celebration, centred on Dysart’s Centenary Park, is set to include performances from pop star Jessica Mauboy and Hunters and Collectors front

man Mark Seymour as well as a street parade and a host of other family activities. Norwich Park Mine general manager Gus Gomes said connecting with the community had been an integral part of the operation’s 30-year journey. The 6m-wide mural commissioned for the

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anniversary year reﬂects the essence of mining, the environment and community. It was completed over a week by six Year 10 students and their teacher along with Dysart artist Jo Beatty. Ms Beatty had additional inspiration to paint the mural at Norwich Park Mine, with her

partner being an employee at the operation and many of her friends working there as well. ”I couldn’t pass up the opportunity to create a lasting portrait of past, present and future employees, along with some of the current employees’ children,” she said.

Building Mining Communities

The Mining Advocate | September 2009

End of an era as Bob bows out An Australian Workers Union stalwart looks back on a 28-year career devoted to the organisation and its members. Bob Boscacci was a 35-yearold machinery operator at Townsville’s bulk sugar terminal when he was approached in 1981 to give up that role and take on a full-time position with the Australian Workers Union (AWU). “I was told ‘the money is slightly better than you are on now, but don’t think you’ll get any thanks – you’ll never satisfy anyone’,” he said. Mr Boscacci accepted the position as an AWU organiser for the Northern District, later realising that his first day at work was to be April Fool’s Day. It was a move he says he has never regretted. “It was one of the greatest things I ever did – just being able to help people,” Mr Boscacci said. Mr Boscacci retired recently after 28 years as a union official – a term which spanned a number of major industrial battles in the North including the Northern Australian Cement dispute in 1983, the Mount Isa Mines strike in 1995 and the Korea Zinc (Sun Metals refinery) construction site standoff in 1998. Beyond the heat of such major struggles, Mr Boscacci takes pride in the individual victories achieved in his role – assisting those workers who were underpaid, injured or wrongfully dismissed.

And, despite his colleague’s warning at the very start that he would get no thanks, Mr Boscacci said many members had shown a great deal of gratitude for his efforts. The long-time Townsville resident, now aged 63, said he had made the decision not to seek another four-year term as Northern District secretary for the AWU after a few years of urging by family members. “I’m not fully retired though – I still hold a vice-president’s position in the national union, I’m still a Northern District representative on the state executive committee and I’m a trustee director on a superannuation fund,” he said. But he admitted he was not finding the transition from “fullon” to a more laid-back role easy. Mr Boscacci grew up in the Ingham district, where his father Harry cut cane before taking a job as a delivery driver. Harry Boscacci then worked on the wharves with his brothers-in-law after Bob’s grandfather Enrico bought a hotel at Lucinda. “Dad went on to become an AWU rep in Townsville when our family moved here in 1958,” Mr Boscacci said. Bob Boscacci’s own career began with an electrical apprenticeship in the early 1960s, followed by a stint in the RAAF as an instrument fitter.

Bob Boscacci (front) with his successor as Australian Workers Union Northern District secretary, Rod “Cowboy” Stockham. Photo: Stewart McLean

“I got out of the air force in June 1971 and worked as a salesman here (in Townsville) for a while, then went to Mount Isa and worked for a contractor a month or two,” he said. “I then went to the (No.4

On union business in 1987, AWU Northern District Secretary Bob Boscacci (above right) and AWU Mount Isa Mines organiser Dave Harris ended up on Devoncourt Station south of Cloncurry. Showing typical western hospitality, then National Party President Don McDonald offered them tea and coffee at the homestead before sending them in the right direction.

concentrator) construction site at Mount Isa Mines. “I was only there two weeks when an ETU (Electrical Trades Union) representative was promoted and the boys elected me. “That was my first taste of the union.” Mr Boscacci said he had always been one to get involved and “wasn’t a shy sort of bloke”. He signed up with the AWU in 1973, when he joined Roberts Holland Construction – working on the Yabulu-Greenvale rail line and at Blackwater. Mr Boscacci started work at the Townsville bulk sugar terminal in 1975 and became the site AWU representative within a week – taking over from his father. He was appointed on the Northern District Committee in 1978 and in 1981 was offered the full-time role of Northern District organiser, based in Townsville. He was elected as Northern District secretary in 1986. Mr Boscacci recalls one of the first disputes he was involved in as a union representative (while still with the ETU), when a group of “red raggers” whose enthusiasm for work had been sapped by a big weekend agitated over the fact their employer was supplying powdered milk rather than fresh for their morning cuppa. His most difficult dispute throughout his union career had

been the industrial action at the Korea Zinc construction project, he said. A core group of unions including the AWU had reached a local agreement for employees on the site which had not included a living-awayfrom-home allowance as there had been a push to favour local labour, Mr Boscacci said. Other unions entered the arena and a dispute arose which Mr Boscacci said had centred on this issue on the surface but had actually been over union coverage. Mr Boscacci said the dispute had been especially frustrating and the industrial action caused hardship for some families. “I remember a guy who had only been on site about a week and a half when the strike started,” he said. “His family was living in a motel while they found other accommodation, then the strike hit and he couldn’t afford to stay there. “He left to get a job somewhere else. When he found somewhere a week or more later for his wife and kids to live, the motel owners wouldn’t release her gear until she paid. She rang up looking for help.” Mr Boscacci’s successor as AWU Northern District secretary, Rod “Cowboy” Stockham, said the pair had become friends during the industrial dispute in the 1980s at Northern Australian Cement – where Mr Stockham was employed at the time. “I can remember well the time we spent on the grass there – picket lines, food vouchers and that,” he said. “They were the good old days – Lance Butler was the Northern District secretary at the time and Bob Boscacci was the senior organiser with the union and Bob looked after us at the cement works. “Bob and I became very good friends during this period. “We realised how much we had in common with our love of the bush, hunting and fishing.” Mr Stockham praised Mr Boscacci for his staunch support during the many years they had worked together as union officials. “Through the tough disputes, the horror Howard years and everything else thrown at us he never let me down,” Mr Stockham said. “He has lived for the union and our officials, staff and members and I sincerely wish Bob all the best in his retirement.” Mr Boscacci plans to spend at least some of his newly found leisure time visiting Italy and California in the United States, where he has relatives.

SunWater

September 2009 |

The Mining Advocate

New water solution on its way Preliminary work is progressing well on a project offering more than 40,000 megalitres a year for the northern Bowen Basin. SunWater is aiming for a 2011 start to construction for the proposed Connors River Dam in central Queensland. The dam, to be built about 70km south of Sarina and 110km east of Moranbah, would ultimately be capable of delivering more than 40,000 megalitres of water a year to northern Bowen Basin mining operations. The final terms of reference for the project have been made available to the public through the Queensland Co-ordinator General’s office. Project manager Sean Fleming said SunWater was now working on a business case to determine the feasibility of the project and completing the environmental impact statement. “A decision on the business case is expected to be finalised in mid 2010,” Mr Fleming said. Meanwhile, the project team is continuing preliminary work in and around project sites. “At present, SunWater is firming up quarry locations in the region that will provide enough suitable material to build the dam,” Mr Fleming said. “SunWater is also finalising the pipeline route and carrying out preliminary engineering of the pipeline itself. “The team is also locating satisfactory sources for pipeline bedding sands and carrying out cultural heritage surveys along the pipeline route.” The Connors River Dam and Pipelines Project was identified within the Central Queensland Regional Water Supply Strategy, released by the Queensland Government in December 2006, as the preferred medium-to-longterm solution to meet future demands in the Bowen Basin region. It comes on top of SunWater’s $280 million Burdekin-Moranbah pipeline, commissioned in August 2007. Until that pipeline and its eastern and southern spurs were constructed – delivering around 23,000 megalitres of water annually - the Bowen Basin’s primary water source was via the Eungella Dam. “After a series of failed wet seasons, it was clear that the Eungella Dam, which was at historically low levels, could not adequately support the region in terms of reliable

THE FACTS The dam will be located south of the central Queensland town of Sarina, near Mt Bridget. The 602m-wide dam will have a 250m-wide spillway about 36m above the existing river bed. Full capacity will be 373,700 megalitres. About 285,000 cubic metres of concrete and 690 tonnes of reinforced steel will be used in the dam’s construction. 135km of pipeline (mostly buried) will ultimately transport about 45,000 megalitres of water to the Bowen Basin coalfields annually.

Sand testing at Connors River.

Sean Fleming SunWater project manager

water supply,” Mr Fleming said. He said the Connors River Dam and Pipelines Project would ensure secure water supplies for the region. Mr Fleming said SunWater was committed to consulting local communities and keeping them informed on the project’s progress. It was achieving this through a program including public information sessions, project newsletters and the establishment of a community liaison group, he said. “SunWater has been very pleased with the positive project feedback it has received from the general public at its ongoing information sessions held in Nebo, Moranbah and Mackay,” Mr Fleming said. “It is also pleased with the level of engagement it has had with community representatives through community liaison group meetings held in Nebo since project investigations began.” SunWater is a State Government-owned corporation that provides water supply, treatment and transportation services to more than 6000 irrigation, industrial, mining and urban customers across Queensland. People seeking more information on the Connors River Dam and Pipelines Project should phone 1800 244 771, email connorsriverdam@ sunwater.com.au or visit www. sunwater.com.au

The proposed pipeline route for SunWater’s Connors River Dam project.

Growth sparks pipeline study Expected mining growth in the southern Bowen Basin has prompted SunWater to investigate demand for a new pipeline to take water south from its Moranbah terminal storage from about 2013. Southern Bowen Basin Pipeline project manager Peter MacTaggart said several mining companies had approached SunWater regarding the need for water transportation capacity to new coal projects in that area. The corporation had seen an opportunity to develop a multi-user pipeline as an economical method of meeting those demands, he said. “SunWater is providing an opportunity to any mining company that is interested in obtaining capacity in a new southern pipeline to

Peter MacTaggart Southern Bowen Basin Pipeline project manager

join the pipeline project,” Mr MacTaggart said. “SunWater is intending to wait until all companies

have had an opportunity to discuss their water supply requirements prior to commencing work on route selection and preliminary engineering. “However development work will commence in October 2009 at the latest, by which time SunWater is hoping to have identiﬁed all potential customers.” He said the commissioning timeframe would be based on the needs of the pipeline customers, which appeared to be ﬁrst water in 2013. “This timeframe aligns neatly with water availability from Connors River Dam, meaning that mining projects have an opportunity to access both water supply and transport capacity for their projects,” Mr MacTaggart said.

SunWater

The Mining Advocate | September 2009

Connecting Cloncurry A 38km link now under construction is expected to solve the water woes that have plagued this north-west Queensland town. Cloncurry’s new $42.5 million water pipeline project is fast taking shape, with hundreds of pipes laid in the first few weeks of construction. SunWater chief executive officer Peter Boettcher said construction was expected to be completed in December with first water delivered to the north-west Queensland town in March. The 38km pipeline will link Cloncurry to the Lake Julius water supply via a connection with SunWater’s 110km North West Queensland Water Pipeline, which runs to Xstrata’s Ernest Henry mine. “Construction crews have pulled out all stops to ensure this project is completed by March and I am pleased to report that we are ahead of schedule,” Mr Boettcher said.

He said about 60 people were working on the pipeline’s construction, including tradesmen and labourers from Cloncurry as well as personnel who had come in with the key contractor. Queensland-based company Moody Civil and Pipe was awarded the construction contract for the droughtprooﬁng project, while Iplex Pipelines has supplied 28km of ductile iron pipes. The pipeline will deliver up to 900 megalitres of water to Cloncurry’s water treatment plant each year and guarantee a year-round supply. Its construction follows an appeal by Cloncurry Shire Council to the State Government for assistance last year as an extended drought left the north-western town

experiencing a severe water shortage. Cloncurry Mayor Andrew Daniels said the shire had been seeking this water solution for many years and it was very exciting to see its realisation. “We now have a guarantee of water, 365 days a year, no matter how harsh the conditions - and that is great news for the entire shire,” he said. Cr Daniels said the Chinaman Creek Dam, built in 1992, had failed in three out of every four years to meet the town’s water needs. The council has supplemented dam supplies with water from bores and riverbed soaks, leaving the town’s tap water unsuitable for drinking. Severe drought late last year saw the town railing in up to 120,000 litres of water a day, Cr Daniels said. Ernest Henry Mining joined forces with the council to provide fresh drinking water to the town’s schools from the mine’s water treatment plant.

Member for Mount Isa Betty Kiernan and Cloncurry Mayor Andrew Daniels.

Cr Daniels said completion of the pipeline should mean an end to residents having to endure severe water restrictions. Member for Mount Isa Betty Kiernan said completion of the pipeline project would help Cloncurry attract and sustain

population and industrial growth. “The Government has come through on its commitment to provide water security and reliability for Cloncurry, ensuring water will never again need to be transported into town,” she said.

Queensland Nickel

September 2009 |

The Mining Advocate

Dark days give way to optimism Queensland Nickel’s workforce is upbeat as the North Queensland operation enters a new era, the chief operating officer says. Neil Meadows readily admits that his entire workforce went through some dark days before the Yabulu refinery’s fate was resolved in late June. The chief operating officer at Queensland Nickel recalls the weeks of rumours, uncertainty and the strain of having to work on a corporate strategy for a potential plant closure while still striving to optimise operations. “Everyone from me right through the entire organisation went through some pretty bleak days,” he said But it is a different story now, following billionaire Clive Palmer’s arrival on the scene and confirmation that the Yabulu plant will not only remain open but that its new owner is keen to enhance operations. “I’ve worked here twice in the last 10 years and I’ve not seen the workforce as happy and upbeat as it is now,” Mr Meadows said. “Particularly having had Clive up here. He had a lot of access to personnel, with people speaking to him and hearing what he had to say. “They were very happy with what they saw and very thankful that the operation has stayed open. “But they are also looking to the future and very energetic in trying to squeeze as much as we can out of this operation.” Mr Meadows was general manager of the Yabulu refinery under former owners BHP Billiton from September 2008 to July 2009. He had previously worked as operations manager for QNI Yabulu in 2000 to 2003, before leaving to work with major Australian nickel producer Minara Resources. Mr Meadows said Mr Palmer’s purchase of the operation had ended a period of uncertainty which had been difficult to navigate as a manager. “It’s management’s responsibility to make sure that the workforce is looked out for as best as possible, no matter what the circumstances,” he said. “For six months we had parallel campaigns of restructuring the refinery’s operating scenario to optimise it while also working on what closure would look like and working towards divestment. “Some of the things that happen – people from (BHP Billiton) stainless steel materials in Perth being here in Townsville and getting seen in the airport, certain transactions in the accounting system – these things raise people’s eyebrows and generate rumours - it was extremely difficult to manage.” At the time, BHP Billiton

Neil Meadows Queensland Nickel chief operating officer

had publicly announced it was undertaking a future options study for the refinery, to be completed by July this year. This encompassed options including temporary suspension of the refinery’s operations, extended care and maintenance, sale or closure. BHP Billiton had already suspended operations at its $2 billion Ravensthorpe nickel mine in January. The company also announced at that time that it was shedding 3300 jobs across Australia including 350 at Yabulu, although Mr Meadows said that figure had proved to be overstated. “At the end of the day we lost just over 100 BHP Billiton personnel directly employed by the operation and probably close to 150 contractor positions,” he said. The fate of the Ravensthorpe and Yabulu operations, both haemorrhaging cash during a period of low nickel prices, was closely tied. The Yabulu plant had been expanded at a cost of more than $620 million only three years ago to process a concentrate from the Western Australian mine in addition to its traditional ore feed from overseas, but was receiving well under the expected levels of Ravensthorpe feed in early 2009. Mr Meadows said most refinery employees well understood the operation’s strong niche in processing low-grade ore generated in New Caledonia and believed a buyer would come forward. “Up until the end of June everybody had been quite buoyant because we’d stopped losing money and we were producing nickel at forecast tonnages or better,” he said.

“Everybody was convinced someone would buy it. “We saw a lot of people come through - we knew the interest was there. “But in the last week or so of June people got the feeling that maybe this wasn’t going to end up a positive story.” He said Mr Palmer’s bid for the plant had struck a hurdle at that stage, when it was unclear if the State Government would extend various concessions granted to BHP Billiton to a new owner. “Personally, I wrote it oﬀ at that point, but we were alerted that something was developing on the last Thursday of June,” Mr Meadows said. “The Townsville Bulletin that morning greeted us with the news and when we came to work that morning Clive Palmer conﬁrmed he was going to complete the negotiations.” Mr Meadows said it was too early to say exactly what changes the new ownership would bring to the operation now that its future had been secured by that deal. But he believed the overall outlook was good. “I think we can make a healthy margin going forward, with

The gas plant at the Yabulu nickel refinery.

the world pulling out of the recession,” he said. “I see nothing but positives and upsides for the operation. “It’s at the dawning of an era where it can really set itself up and the way Clive has structured

Photo: Stewart McLean

the company and ﬁnances means we’ll be putting money aside for the next downturn - whenever that may be – so we don’t get ourselves in the situation where people are wanting to close us again.”

Queensland Nickel employees ‘meet and greet’ new owner Billionaire businessman Clive Palmer took time during a recent visit to Townsville to meet Queensland Nickel staﬀ outside of work.

The new Yabulu reﬁnery owner attended an informal “meet and greet” function with middle management team members at the Mercure Inn.

Clive Palmer (centre) with Basil Ahyick, Cheryl Ward, Terfor Flood and Gavin Marty.

Peter Kervin, Jeremy Bill and Vaughan Jones.

Photos: Stewart McLean

Grant McGregor, Peter Cream and Mark Vickers.

Queensland Nickel

The Mining Advocate | September 2009

‘Entrepreneurial’ approach to boost output

Growth potential The Yabulu refinery’s operators are seeking opportunities to make the most of the plant’s capacity, with hopes of doubling production. The new Queensland Nickel is actively seeking additional feedstock to better utilise its Yabulu refinery and will not shy away from taking a more entrepreneurial approach to its business, according to chief operating officer Neil Meadows. “There’s a genuine ability to double the production through this plant if we can get the right material as a substitute for the MHP (mixed nickel and cobalt hydroxide intermediate product) no longer coming from Ravensthorpe,” Mr Meadows said. “We’ve appointed an ore supply and business development manager as part of the new structure who will be located here at the refinery. One of his tasks will be to assess all opportunities big and small.” The operation currently produces about 32,000 tonnes per annum of nickel and 1800 tonnes of cobalt. Mr Meadows hopes to see that lift to more than 70,000 tonnes of nickel.

The Yabulu refinery, recently purchased by mining magnate Clive Palmer from BHP Billiton, employs 520 Queensland Nickel staff and about 300 full-time contractors. The plant is processing nickelcobalt ore at a rate of about 3.5 million wet tonnes per annum, with about 50 per cent of that feed shipped from New Caledonia, 30 per cent from Indonesia and 20 per cent from the Philippines. Under BHP Billiton ownership it had also been processing MHP from the Ravensthorpe mine in Western Australia until the company’s decision in January to suspend operations there. Mr Meadows said BHP Billiton had intended the plant to process 400,0000 wet tonnes of material annually from that source. “But we got it at very reduced rates – we were getting about 2000 or 3000 tonnes a month for seven or eight months,” he said. The section of the refinery

established to process that material under the Yabulu Extension Project is now idle. While there were no immediate plans to increase staﬀ under the new ownership, Mr Meadows said if the operation acquired enough feed to justify operating an additional nickel line it would require an extra 50 or 60 personnel. The attempts to

Queensland Nickel ‘s Yabulu refinery.

maximise the value of product coming out of Yabulu could see the operation diversify, he said.

Changing identity The Yabulu reﬁnery has been a part of North Queensland’s industrial landscape since the early 1970s. Commissioned in 1974, the plant was built to process ore from the Greenvale nickel mine, about 225km north-west of Townsville, in a joint venture between Metals Exploration Qld and Freeport Queensland Nickel. Queensland Nickel began importing ore from New Caledonia, Indonesia and the Philippines in 1986 as material from Greenvale

began to run out. QNI Limited was incorporated in 1992 and acquired 100 per cent of the asset in 1995. The QNI reﬁnery changed hands in 1997, when it was purchased by South African group Billiton, which merged with BHP in 2001. The BHP Billiton Yabulu operation was renamed Queensland Nickel after its purchase in July by Mineralogy founder Clive Palmer.

Photo: Stewart McLean

“Before BHP Billiton was involved Queensland Nickel was quite an entrepreneurial operation,” Mr Meadows said. “We used to get our hands on small quantities of cobalt intermediate product or other cobalt feedstocks that we could refine and value-add. We also have a limited ability to treat some sulphide materials, which was not the case in the past, and we will try to assess opportunities out there for MHP material to come through the plant in future.” Ravensthorpe remains a potential source of material. “The nickel price has doubled in the last six months and, with the ability for a different owner to direct the final product to different places on the stainless steel production chain, I firmly believe someone will be attempting a restart by 2010,” Mr Meadows said.

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Queensland Nickel

The Mining Advocate | September 2009

Refinery operator a team player Establishing a reputation for its good work in the local community is an important focus for this key Townsville enterprise. A change of ownership means a new game plan when it comes to community involvement for Queensland Nickel. The Yabulu-based operation is flying its new colours very prominently in the sporting arena after signing up as major sponsor for North Queensland’s new A-League football team, the NQ Fury. But such high-profile patronage is just part of the picture, with the company flagging increased support for a range of community causes. “We really want to get the new brand out there and we want the community to benefit from our largesse,” Queensland Nickel chief operating officer Neil Meadows said. “We want to be known for our good work in the community here in Townsville.” Queensland Nickel came on board as the Fury’s inaugural major sponsor shortly after mining magnate Clive Palmer purchased the Yabulu plant - just in time for the team to carry

the refinery’s new logo on to the field for their A-League debut at Dairy Farmers Stadium. Mr Palmer - renowned as Queensland’s richest man - personally owns another A-League team, the Gold Coast United Football Club. Queensland Nickel community relations advisor Erin Carnwell said sponsoring the Fury had provided the company with a great opportunity to get its new name into the community by getting involved in a popular sport that was growing in appeal. Ms Carnwell said the refinery, which started operating at Yabulu more than 30 years ago, had a long history of community contribution under various owners. Projects backed in recent years include; - the Eco-Active Centre at Riverway, showcasing alternative energy sources, - the Enchanted Rainforest exhibition at the Museum of Tropical Queensland,

Queensland Nickel chief operating officer Neil Meadows and owner Clive Palmer with NQ Fury chairman Don Matheson and captain Robbie Fowler.

- an engineering scholarship program with James Cook University, - Townsville’s School Breakfast program – a joint initiative with the Townsville City Council and Food Relief NQ to provide a healthy start for children at seven local schools. Ms Carnwell said Queensland Nickel would continue its

involvement in such signiﬁcant sponsorship alliances. “But we’ll also be focusing more this year on smaller community support and sponsorship projects,” she said. “Things like local schools and council festivals. “We’ve also had a proposal put to us about sponsoring Townsville Basketball. We see

some very good synergies in that and a bonus is that they have a national league team (Townsville Fire, playing in the Women’s National Basketball League). “We’ll be continuing with a lot of the partners we’ve had in the past, but we are also trying to work out how we can maximise our community involvement and what we can do better.”

Queensland Nickel

September 2009 |

The Mining Advocate

Local team proves its talent Faced with ‘insourcing’ tasks previously handled elsewhere, Queensland Nickel has been able to fill the new roles from within. Severing the apron strings of a major multi-national mining company means an increase in autonomy and responsibility for the Yabulu refinery’s management team. New owner Clive Palmer is drawing on the skills and experience of existing North Queensland-based personnel to bridge the gaps as the operation breaks away from the BHP Billiton structure. Queensland Nickel chief operating officer Neil Meadows said refinery personnel had embraced the opportunity for increased autonomy. “We see it at the manager level and that has to translate down to all other personnel,” he said.

Mr Meadows said Queensland Nickel was going through the process of “insourcing” tasks that had previously been handled elsewhere in the BHP Billiton organisation. This included ore supply, human resources functions and product marketing work previously handled in Singapore, Hong Kong and Adelaide, for example. “All of these functions have to be brought in and our current target is to have most, if not all of that done in mid-December,” Mr Meadows said. “That also includes being able to extricate ourselves from the BHP Billiton computing systems.”

Mr Meadows said Mr Palmer had purchased the Yabulu operation through a structure of three companies. “An interim board has been established and the on-site management team has been modiﬁed to take on the extra roles that have to be insourced from BHP Billiton,” he said. “We have done that entirely from within. On the marketing side, the marketing director

had been seconded from QNI into BHP Billiton - so it was relatively easy to get him to come back.” Mr Meadows said reports that management had received an across-the-board pay rise following the change in ownership were incorrect. “The truth of the matter is that various reﬁnery personnel have taken on extra responsibilities as a result of the restructure and

their salaries reﬂect that change,” he said. Meanwhile Mr Meadows said an incentive scheme established under the new ownership was likely to bring increased payoﬀs for people throughout the organisation. There would also be scope for Yabulu employees seeking career opportunities elsewhere to transfer to other parts of Mr Palmer’s mining empire.

Company rewards long service More than 30 employees were recently recognised for long service with the Yabulu reﬁnery at a presentation dinner at Mercure Inn Townsville. Queensland Nickel handed out mementos for employees who had reached the 15, 20, 25, 30 and 35-year service marks with the nickel operation.

Civic leaders welcome new corporate citizen Billionaire businessman Clive Palmer’s decision to purchase the Yabulu refinery staved off a potentially crippling economic blow for Townsville. Townsville Enterprise economic development general manager Lisa McDonald said that organisation’s studies had shown that the nickel plant’s closure would have had a huge knock-on effect for regional employment – with about two jobs lost in the general community for every refinery job lost. “We were very nervous,” Dr McDonald said. “It’s just such a wonderful thing for the city that Clive has come in and bought Yabulu. “Something of that magnitude (the refinery’s closure) would have had a large economic impact and destroyed a lot of confidence in the region from a future investment point of view.” Dr McDonald said the business community had been encouraged

by Mr Palmer’s upbeat outlook for the reﬁnery and the resources sector generally during a recent visit to Townsville. Townsville Mayor Les Tyrell said Mr Palmer had already made a huge impression through his commitment to support the local community, not to mention the impact that the reﬁnery’s continued operation had on local employment and the economy. “Apart from their announcement to support our Fury team, Queensland Nickel is also contributing to some important council initiatives through the Together Townsville program,” Cr Tyrell said. “These are great initiatives and we value this partnership as they all contribute to our community’s social well-being. “I believe this is an exciting time for Townsville and we look forward to working with Queensland Nickel to strengthen our region.”

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Isa Celebrates 85 Years

The Mining Advocate | September 2009

Chamber president highlights city strengths

Powering ahead Mount Isa boasts a buzzing commercial heart, unrealised tourism potential and a strong mining future, according to this civic leader. The 85th year of commerce and community in Mount Isa finds the city continuing to advance and grow at an impressive rate, according to Chamber of Commerce president Brett Peterson. The north-western mining centre had weathered the economic downturn well and was experiencing a commercial “buzz”, with many new businesses opening their doors in recent months, he said. “To have the Isa Hotel rebuilt, with the significant investment that involved, and to have The Coffee Club open in Mount Isa and be among the Top 5 franchise branches in Australia for its takings in the first week – that gives you an idea of the vibrant business environment out here,” he said. “The town is in a buzz and has been for quite some time.” Mr Peterson said local mining supply companies had felt the impact of the downturn in the resources industry this

year, however the retail sector generally seemed to have come through without any sustained drop in trade. The region remained an attractive investment option, with locals maintaining a high disposable income, he said. And while people in many other parts of Australia were struggling to find jobs, Mr Peterson said the Mount Isa region continued to experience a huge demand for workers. “Mount Isa is still struggling to find workers, and not just in mining,” he said “There are industry shortages ranging from plumbers and carpenters to administration and hospitality staff. “The shortage is so great, that some local businesses have sought employment from the coast and even overseas.” The number of proposed mining operations in the pipeline and the vast quantities of unexploited mineral wealth in the region were likely to

Mount Isa, viewed from the city lookout.

Brett Peterson Chamber of Commerce president

guarantee its economic security for many years to come, he said. “One major organisation gaining a lot of positive publicity at present is Legend International Holdings, led by Joseph Gutnick or ‘Diamond Joe’ as he is known,” Mr Peterson said. “Legend will focus on creating an $880 million phosphate mine outside Mount Isa. “With phosphate gaining strong demand due to crisislevel food shortages across

the world, the timing and the relevance of this new industry looks very positive.” Mr Peterson said also the region’s tourism industry had a great deal to oﬀer and Australia was yet to realise the northwest’s full potential in that area. “We are now accessible through airlines oﬀering services to Darwin, Cairns, Brisbane, the Gold Coast and Townsville,” Mr Peterson said. “This makes Mount Isa an attractive destination for international visitors seeking a taste of Outback Queensland.” The Mount Isa Chamber of

Photo: Roslyn Budd

Commerce has a proud history of serving the region and has been an active leader and strong voice for the commercial, industrial, civic and general interests of the north west. The chamber is also a proactive force in employment issues, regional and economic development, government relations and events management. Mr Peterson said the chamber had a loyal membership base which had continued to grow despite the economic downturn.

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Isa Celebrates 85 Years

September 2009 |

The Mining Advocate

A major player in key industries IPL has become a significant force in the north-west with its purchase of phosphate facilities and the Dyno Nobel business. Incitec Pivot Limited (IPL) is a relative newcomer to the north-west, but the names associated with IPL are wellknown operations which make a vital contribution to the two great Australian industries of agriculture and resources. The company’s Phosphate Hill plant, 200km south of Mount Isa, is Australia’s only manufacturer of ammonium phosphate fertiliser. It was originally established by WMC, which in 1996 announced the decision to develop a $700 million fertiliser project in the region. By 2000, the Queensland Fertilizer Plant was commissioned and it became fully operational two years later. BHP Billiton took over WMC in 2005 and in 2006 IPL purchased its Southern Cross

Fertilisers operations - which included the phosphate mine and fertiliser manufacturing plant at Phosphate Hill, an acid manufacturing plant at Mount Isa and port logistics facilities at Townsville. Increasing demand from farmers for the product has prompted IPL to allocate funds to expand production at Phosphate Hill to about a million tonnes a year. Last year, IPL acquired Dyno Nobel, a supplier of industrial explosives and initiating systems to the mining, quarrying and construction industries in Australia, the Paciﬁc and North and Central America. From its base in Mount Isa, Dyno Nobel services mines in the region. IPL employs more than 500 staﬀ in the north-west region.

The company is also committing almost $1 billion to develop a plant at Moranbah in central Queensland which will produce 330,000 tonnes a year of ammonium nitrate as industrial explosives and fertiliser. The project is about onethird complete but construction

IPL’s Phosphate Hill plant, about 200km south of Mount Isa.

was temporarily halted early this year due to a forecast of falling demand from resources companies hit by the global ﬁnancial crisis. When construction

recommences next year, some 500 people will be employed at the site. About 70 will be employed at the Moranbah operation when production starts.

More flights for Mount Isa Regional Pacific Airlines has stepped in to meet demand for Cairns-Mount Isa flights, offering three services a week between the centres on a 30-seat aircraft. Chief executive officer Anthony Sandford said the company had kicked off with two flights between the centres in July and stepped the service up to three flights a week in August. “We were planning to offer up to five flights a week, but we don’t see that the market has that much demand as yet,” he said. The airline is stepping into a gap created by the demise of MacAir Airlines, which was running six return flights between the centres in late 2008.

While the bulk of the custom was mining industry related, Mr Sandford said Regional Paciﬁc Airlines was developing new products including holiday packages to stimulate further interest. Northern Territory-based airline Airnorth also recently launched weekly return ﬂights linking Mount Isa to the Gold Coast and Darwin. Airnorth chief executive Michael Bridge said the move followed detailed discussions with resource sector representatives. “This initiative provides a logical link between two of Australia’s largest resource areas, western Queensland and the Top End,” he said.

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Isa Celebrates 85 Years

The Mining Advocate | September 2009

Birth of a mighty mining hub From diggers’ camp to vibrant regional city, Mount Isa’s fortunes have been closely tied to the company whose founding started it all. The establishment of Mount Isa Mines 85 years ago marked the birth of one of Australia’s foremost mining centres. It followed prospector John Campbell Miles’ discovery of lead ore in the region in 1923. Convinced of the importance of his discovery, Miles quickly pegged out a lease he named Mount Isa - after the West Australian goldfield Mount Ida. More prospectors moved into the region as word of the discovery spread and by November 1923 a very simple general store was established among the miners’ camps On January 19, 1924, Mount Isa Mines was established. Milling and smelter operations began in 1931 and the company enjoyed its first operating profit in 1937 - 13

years after its establishment. In 1943 the mine halted lead mining and started mining for copper to meet the government’s World War II needs. This switch was reversed in 1946, then parallel production of lead and copper began in 1953. By 1955 Mount Isa Mines had become the largest mining company in Australia. It had weathered technical and financial difficulties, and industrial unrest, to become Australia’s largest single creator of export income. Since its acquisition of Mount Isa Mines in June 2003, Xstrata has invested more than $570 million in operational development. Today Xstrata Mount Isa Mines directly employs about 3500 staff and 700 contractors.

The operations contributed $2.75 billion to the Queensland economy through wages, purchase of good and services, community partnerships and royalties in 2008. “With the support of the mines, Mount Isa has grown from a diggers’ camp of 300 in 1924 into a vibrant and progressive city of more than 23,500,” Xstrata Copper North Queensland chief operating officer Steve de Kruijff said. Key to the sustainability of the operations was the company’s continued investment in the social, economic and institutional development of Mount Isa, Mr de Kruijff said. “In December 2004, Xstrata launched the Xstrata Community Partnership Program North Queensland following extensive community consultation in the region,” he said. “Now in its fifth year, the program has a total value of around $11 million and has

John Campbell Miles (far left) with original mine workers Con Davidson, Will Simpson, Will Purdy, mine manager S. Boyce and mine superintendent E.C. Saint Smith at Mount Isa in 1924. Photo: courtesy of Xstrata Mount Isa Mines

supported over 60 initiatives in Mount Isa, Cloncurry, Townsville and Bowen. “Our Mount Isa operations generate signiﬁcant direct

and indirect employment opportunities and also make a signiﬁcant contribution to regional economic growth and development.”

Rich history in lower Gulf Region kicking goals Much has changed since 1869, the year that base metals were first discovered in the Lawn Hill region. At the time, it took months for prospectors to journey from the southern colonies to reach these mining fields, while now it takes a little over 90 minutes to travel by air from Townsville. Back then, lead and silver were the main minerals sought – today it’s zinc, with MMG Century producing about 500,000 tonnes of the product annually. The world’s second largest zinc mine has a rich history in the lower Gulf region of north-west Queensland. Its name, Century, is testament to this history and marks the granting of exploration titles to CRA in 1987 – exactly 100 years after the first mining lease was pegged in the region. Three years after the exploration titles were granted, CRA began about $1 billion of development work at the mine’s Lawn Hill site. Work geared up in the late 1990s, when the company commenced an intensive 18-month construction program. The key to being able to mine at such a remote location was being able to turn the ore into a slurry which could then be pumped via a 304km underground pipeline from processing facilities at Lawn Hill to port operations at Karumba. From here, 5000-tonne parcels of zinc and lead concentrates are transported in Century’s specially built transfer vessel, the MV Wunma, to export ships anchored in a designated area offshore. The mine and processing operation at Lawn Hill, and associated dewatering and

on and oﬀ the ﬁeld

The Century site in August, 1998, with the concentrator structure under construction.

shipping facilities at Karumba, were oﬃcially commissioned in 2000. An important aspect of Century’s development was the historic Gulf Communities Agreement (GCA), which provides for employment and training opportunities for people of the lower-Gulf region, cultural and environment assurances and compensation for the life of the mine. Although there have been a number of corporate ownership changes, the mine has developed its own identity and place in the region as a strong supporter of local communities. Under the ownership of MMG, the team looks forward,

as economic conditions stabilise, to continuing to deliver beneﬁts to the local economy. While MMG continues to undertake exploration work to identify alternative ore for the mill, the company says it is also preparing for the day the mine will close. The company stresses that mine closure planning is more than just working out how to close the operation – it is about ensuring that the mine leaves behind a positive and lasting legacy. Environmental rehabilitation works have already commenced and consultation will be carried out to engage communities and other stakeholders in the closure process.

Local businessman Max Smith’s dream is to see his beloved Mount Isa Rugby League’s fortunes match the success of local industry. The managing director of MAS Mechanical is president of the local league and a Mount Isa Chamber of Commerce committee member. Businesswise, he believes there is no doubt the region will continue to thrive. “Cloncurry has more mines coming online and when the uranium starts up we will have a couple of those mines in the area as well,” Mr Smith said. “We’re only going to get stronger.” And he hopes the local league scene will enjoy a similar upward trajectory. Mr Smith said the league had been having trouble attracting membership and monetary support in recent years, but he believed the present committee was turning that around. “(The league) was strong back when I started playing (in 1987) and it gradually got worse,” Mr Smith said. “Violence in the games had a bit to do with it, but it is a lot cleaner now.” This year saw both Mount Isa’s A Grade and Under 20 sides notch up some very strong victories to win the Queensland Rugby League Outback Carnival for the ﬁrst time in the competition’s ﬁve-year history, he said. Mr Smith said there was still a lot of work to do in terms of attracting sponsorship, with the league attempting to sell spots

Max Smith MAS Mechanical managing director

on individual players’ Mount Isa jerseys for such inter-region competitions, including Foley Shield games, in addition to seeking round and competition sponsors. The league has also sought the assistance of local firms to offer jobs to Queensland Cup players willing to move to Mount Isa in a bid to inject extra expertise into the city’s playing pool. MAS Mechanical offers a range of services including auto-electrics, hydraulics, air conditioning and radiator repairs. “We also have a drill fitter mechanic who does up the air tools, air winches, hydraulic components, endless chains etc,” Mr Smith said. The business provides everything from minor services to complete overhauls on heavy and light vehicles, underground and earthmoving equipment.

Isa Celebrates 85 Years

September 2009 |

The Mining Advocate

Hotel baron “still pretty keen” on Mount Isa

Comeback king This former Chamber of Commerce head has returned as a heavyweight in local business, investing millions in two high-profile projects. Five years ago Albert Hakfoort Snr was forced to sell oﬀ his Mount Isa business interests, a portfolio worth about $10 million, as he battled cancer. Today, describing himself as “pretty close to cured”, he is once again a major player in Mount Isa’s commercial landscape, having invested about $18 million in two city hotels. The Brisbane-based owner of the Hakfoort Group said he was “still pretty keen” on Mount Isa. And he takes obvious pride in the results of his recent investments - producing the Redearth Boutique Hotel, a remake of the old Boyd’s Hotel which opened in 2006, and the Isa Hotel, which re-opened in June after major renovations. The Redearth was named

“best superior accommodation” at last year’s Queensland Hotels Association Awards for Excellence and Mr Hakfoort boasts that his food-oriented Isa Hotel serves the best steaks around. They are among seven hotels the Hakfoort Group runs, including premises in Brisbane, Gladstone and Toowoomba. Mr Hakfoort said the two Mount Isa hotels came up for sale as he was recovering, following succesful cancer treatment, and had presented a good opportunity for the family business. Mr Hakfoort’s years in business in Mount Isa included a stint as president of the Mount Isa Chamber of Commerce, when he was instrumental in the introduction of the region’s

The Redearth Boutique Hotel.

Albert Hakfoort Hakfoort Group owner

Easifind phone directory, the first of its kind in Australia. “That directory gave us enough advertising income to fund the administration of the chamber of commerce,” Mr Hakfoort said. “Since then the chamber has had an office and employed people - that was one of the

things we achieved.” Mr Hakfoort moved to the Isa from Townsville in 1967. He said he had been working in the printing and advertising business when he saw a business opportunity in Mount Isa which met with no interest from his employer at the time. “The seed was planted in my mind and, after 18 months, I ended up in Mount Isa and set up a little printing works,” he said. “That grew and grew and we went into oﬃce equipment and grew and grew.” The result was a business employing about 40 people – HOSIPS, combining Hub Oﬃce Supplies and Isa Printing Service.

Mr Hakfoort later sold the printing side of the business to The North West Star and focused on oﬃce equipment and stationery. “At one stage we were supplying just about all the mining operations in north-west Queensland - from Hughenden to Tennant Creek and Longreach and up to the Gulf,” he said. Before selling his Mount Isa interests in 2004, Mr Hakfoort’s commercial property portfolio included Mount Isa House, Mid Town Plaza and the Crazy Clark’s building. He describes the Mount Isa mineral province as containing astounding deposits of base metals, rare earths and uranium.

Newcomer invests $1.8m to set up shop in north-west One of Mount Isa’s newest businesses, HardRok Engineering, has established itself with a $1.8 million vote of conﬁdence in the mining city. The company has spent about $1.2 million on a new workshop, completed in May, and a further $600,000 on equipment. Managing director Ray White, formerly based in Mackay, said the new business had emerged from the purchase in November 2008 of Rob Harvey Conveyor Products. That business had oﬀered services including belt splicing,

conveyor repairs and rubber lining as well as the supply of conveyor products, he said. HardRok is expanding on that range by moving further into metal fabrication, site services and mechanical repairs. As well as adding competition to Mount Isa’s engineering sector, Mr White said HardRok Engineering had introduced a new service for the city – oﬀering rubber lining vulcanisation. The company is expecting delivery later this year of a new autoclave with the ability to

HardRok Engineering director and workshop manager Peter (Duke) Ellington with managing director Ray White. Photo: Roslyn Budd

vulcanise rubber products up to 6.5m in length and 2m in diameter. “We started looking at products that were being sourced outside the Mount Isa area and found that a lot rubber-lining

of components was being done in Newcastle and south-east Queensland,” Mr White said. “So we thought we would get into that market as well. “We saw an opportunity to cover the whole spectrum and

we’re aiming for steady growth to build the business.” Mr White said the business employed eight people, but he hoped to see that build to 25 or 30 over the next 12 months.

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Case Study ABC Mining are building a new mine in a remote area. They require 3 x 350kva generators to provide power to the project. ABC Mining is looking at the cost of hire vs purchase for these units over the course of their 12 month project. They release a tender to 4 suppliers, two rental companies and four sales companies. The resultant offers come in like this.

SALES COMPANY A

$367,000.00

TOTAL PURCHASE PRICE

SALES COMPANY B

$358,000.00

TOTAL PURCHASE PRICE

HIRE COMPANY C

$21,397.00

PER MONTH RENTAL

HIRE COMPANY D

$18,978.00

PER MONTH RENTAL

Sales company A and Hire Company C are eliminated from the tender process on price and the project manager decides hire is the way to go. Hire Company D is awarded the contract. The tender process has been a success.

REAL COST SAVINGS IN TOUGH TIMES OVER 90%

OF THE COST OF RUNNING A GENERATOR IS FUEL

Taking a new approach to the Project ABC Mining then invites WASP to submit a proposal for the project. We begin by looking at the actual needs of the project. Not being tied to any one engine or alternator manufacturer, WASP Diesel starts the proposal from the perspective of the customer. Being a Prime Power fixed application, it is decided that fuel economy is the key to delivering true value to the project. WASP does a review of available engine manufacturer’s in this size range and finds that the WP625* engine is currently the most fuel efficient in this class. It delivers 5 litres per hour superior fuel economy than it’s nearest rival and in fact provides a 7.2 litre per hour saving over the best engine offered by companies A,B,C or D in the original tender process.

Surprisingly, even experienced generator users are unaware that over 90% of the cost of operating a generator is fuel. Installing new or replacing existing generators and generator systems with fuel optimized alternatives offers significant fuel and carbon emission benefits. WASP has supplied and installed fuel efficient generators and generator systems to Australia’s most recognised mining companies in all states and territories of Australia and in South East Asia.

In most cases, whether you’re looking for a new installation or replacing an existing generator or generator system, the extra capital or rental cost of implementing the new system is paid back in fuel savings in a matter of months.

Using 3 x WP625 engines will mean the project is 21.6 litres per hour more efficient than any of the other offers. As a prime power application, this means a 518.4 litre per day saving. That translates to 3628.8 litres per week, 15,724.8 litres per month and a whopping 188,697.6 litres of diesel per year in savings to the project.

Please contact our Mining Services Manager Craig Watson on 1300 302 991 for a free assessment of the fuel and carbon emission savings WASP can offer your project or ongoing installation.

generators, compressors and welders

Even a fuel saving of 1 litre per hour, per machine on this project, means an overall saving of 26,208 litres of fuel over the course of the project.

As you can see, the WASP approach is all about perspective. This kind of analysis offers a way to measure genuine value, regardless of the size or term of a project.

www.waspdiesel.com

1300 302 991

BRISBANE • SYDNEY • PERTH • KALGOORLIE • PT HEDLAND • KARRATHA • MACKAY

* The WPD625 is based on an actual engine and this case study is based on an actual WASP Diesel Project, the names of our competitors and engine manufacturer’s have been changed to protect the innocent.

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