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Fabricating the future THIS EDITION • Emerging energy sector battles for lift-off in Qld • Coal industry struggles set to continue in 2014 • Metal giant in touch with its feminine side • Spotlight on materials handling and logistics

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NEWS

The Mining Advocate | January 2014

1

COVER IMAGE: Sparks fly at Totalfab Engineering Services, Townsville. Photo: Allison Bessell

January 2014

FEATURES

2 Women’s work

10 Our Mining Heritage

Seven women with experience in the Queensland resources industry have made an annual list of “100 Global Inspirational Women in Mining”. Meanwhile the success of MMG’s recent Women in Resources Forum at Century Mine in north-west Queensland has prompted plans to extend the initiative.

12 Industry Update - Coal and Gas

3 Underwhelmed

News in brief across the coal and gas industries.

13 Industry Update - Hard Rock

Underground coal gasification (UCG) proponents say lack of State Government support for the industry is seeing technology developed in Queensland being taken overseas at a time when eastern Australia is crying out for clean, economical energy.

A comprehensive wrap of exploration and operations in Queensland and the Northern Territory.

Queensland’s leaders in

14 Between Shifts

safety...

5 War of spoils

16 Living Remotely

Despite approval from Federal Environment Minister Greg Hunt, it is still not all smooth sailing for a controversial dredging project to expand the Abbot Point coal export facility near Bowen.

9 Jobs dilemma

• Safety Audits and Compliance Reviews • Safety Management Systems Development

17 Building Mining Communities 18 Business to Business

As many mining companies pare down their workforce, an initiative to increase indigenous representation in the resources industry has turned its focus on retention and support for those who have managed to gain a foothold.

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19 Industry Profiles

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21 Fabricating the Future

21 Fabricating the future

25 Australian Steel Fabricators

A look at the issues facing the metal engineering industry, including the launch of an alliance of five North Queensland companies hoping to draw more major project work to the region.

30 Logistics and Materials Handling

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NEWS

January 2014 |

The Mining Advocate

Sisters speak up for themselves Inaugural forum gives women a chance to increase profile in male-dominated sector Women in the mining industry are standing up to be counted. And they’re being backed by one of the largest zinc miners in the world. MMG’s Queensland operations is saying diversity is good for business. The women at MMG are saying that includes more females in leadership roles. MMG Century’s Lawn Hill site in the Gulf of Carpentaria recently played host to the inaugural Women in Resources Forum. The forum attracted more than 60 staff and organisers, buoyed by the reception, hope to take the messages further afield. “There is a lot on the horizon. The committee wants to hold another forum (in 2014),” site human resources superintendent Rebecca Stevenson said. “We’d like to link in with other mine sites in the area ... and extend the opportunity to

women in the wider community.” The corporate culture to promote diversity and inclusion had been encouraged by the mine’s commitment to the Gulf Communities Agreement, which was signed with native title groups in 1997, Ms Stevenson said. The theme of the forum: “Resilience and career development in a male dominated industry”, had particular significance to fly in-fly out operations said Ms Stevenson, who has worked on sites in Western Australia and New South Wales. “Fly in-fly out operations are very different,” she said. “You work 12-hour days and are isolated from family and friends and you need to be able to rely on your colleagues on site. “Studies have shown that gender equality and women in leadership positions helps

promote more successful operations and profitability through greater retention and innovation and a healthier organisational culture. “Anecdotally and from experience, these returns are greater on remote area sites. This is backed up by studies from the Diversity Council of Australia.” Each of the nine speakers at the MMG forum reinforced that message, Ms Stevenson said. Topics covered during the two-day forum included mental health, building resilience and “shaping our thinking to get better outcomes in life”. Sentis chief executive officer Chandra Clements - the 2012 Telstra Young Business Woman of the Year - opened the forum. MMG Queensland Operations is working with the Queensland Resources Council and Women in Mining and Resources Queensland (WIMARQ) to increase female participation in the resources sector. • Forum social photos - page 14

Rio Tinto Coal Australia executive Heather Bell with her family.

Seven make global list Seven women who have worked in the Queensland resources sector have been included in an annual list of “100 Global Inspirational Women in Mining” selected by Women in Mining UK. Among them was Rio Tinto Coal Australia NSW regional manager for resource development Heather Bell - whose achievements in a 12-year mining career saw her claim top honours at the Queensland Resources Council’s last Resources Awards for Women event. “We have so many outstanding and talented women in the resources sector in Queensland and their listing just goes to reinforce this,” QRC chief executive Michael Roche said. “It’s very pleasing to see that four of them - Heather Bell, Sandra Collins, Tina Markovic and Myfwangy Szepanowski - are current or past winners of the QRC’s Resources Awards for Women (RAW ).” Also included in the top 100 are Donna Frater and Alison Keogh, who have been instrumental in the formation of groups to support women in the resources sector, as well as Dr Megan Clark, CSIRO chief executive and previously BHP Billiton Australia vice-president. Entries for the 2014 QRC Resources Awards for Women are now open.


NEWS

The Mining Advocate | January 2014

3

State of uncertainty for UCG Pioneering energy industry battling to break into commercial operations in Queensland Queensland-based company Linc Energy is moving its underground coal gasification (UCG) technology offshore due to what it calls a lack of certainty from the State Government. The Government’s stance has also drawn criticism from gas plant proponent Liberty Resources, with managing director Andrew Haythorpe saying the state’s budding UCG industry was being held to far more onerous standards than coal seam gas or any other mining sector. “It’s the first industry to my knowledge that’s had to show it could decommission before it actually gets to commission,” he said. A Department of Environment and Heritage Protection spokeswoman said the Queensland Government supported the development of new energy industries using technology that was proven to be technically, environmentally and commercially viable. And while Linc is ceasing operations at its Chinchilla UCG demonstration facility, another pilot plant operator – Carbon Energy – said it was continuing to work with the Government to meet the conditions required to allow commercial UCG operations. A third pilot plant operator - Cougar Energy (now known as Moreton Resources) – was recently fined over environmental breaches in 2010 at its sincesuspended UCG project at Kingaroy, although the company argues no environmental harm arose from the offences. Linc Energy clean energy president Adam Bond said the lack of confidence regarding a government policy platform for UCG in Queensland had led the company to decide that it probably needed to be looking offshore to deploy what was a unique and world-leading technology. “From an industry perspective,

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Linc Energy’s demonstration facility in Chinchilla. Photo: courtesy Linc Energy

Adam Bond Linc Energy president clean energy

we’ve seen very little clear drivers from the Government that they would like to see UCG industry in Queensland,” he said. “It’s that lack of certainty which makes investment decisions very difficult and challenging in this region. However that could change very quickly and we would encourage and be happy to work with the Government to facilitate that. In no way have we given up on Queensland - we are still a Queensland-based company, our head office is still in Brisbane and we still have a very strong desire to operate our technology in Queensland going forward.” Linc Energy is embarking on a decommissioning strategy and implementation program at its Chinchilla UCG demonstration facility after 14 years of operation. Liberty Resources last year announced plans to prioritise development of a $1.4 billion gas plant using UCG technology in the Miles or Injune area as part of a larger energy and fertiliser project. “There’s a very clear need for the Queensland Government to support and encourage a new environmentally responsible industry that can supply gas and energy and jobs for the entire east coast economy,” Mr Haythorpe said. With the Government stating it would not allow a commercial UCG operation until successful decommissioning had been demonstrated, Mr Haythorpe said Queensland risked seeing leading technology developed in the state being exploited overseas. “In the area of resources we have this massive geological endowment (that could be harnessed with UCG) and we’re just snatching defeat from the jaws of victory,” he said. Mr Haythorpe said Liberty would continue “quietly working away in the background” on its gas project and looked forward to being given a fair go in the future.

The Department of Environment and Heritage Protection spokeswoman said there was no double standard being applied to the environmental management of the UCG industry as all resource industries operating in Queensland must demonstrate safe and environmentally sustainable operations and practices. “The principle difference is that coal seam gas, conventional oil and mining involve the use of proven technologies which already operate on a commercial scale, whereas UCG is a new and emerging technology which operates in Queensland on a pilot basis,” she said. The Government had set out clear expectations in 2009 in its Underground Coal Gasification Policy about how the pilot trial would proceed and in June 2013 an independent scientific panel presented a peer-reviewed report on the UCG industry to Government. “While the report’s key findings acknowledge the extensive

development of UCG technology, it also acknowledged more work needs to be done for the industry to demonstrate its ability to operate in a manner that is

environmentally sound,” she said. The Government would work with the pilot participants in developing final decommissioning and rehabilitation plans, she said.

What is underground coal gasification? UCG uses the process of gasification to produce syngas, which is rich in hydrogen, carbon monoxide and methane. The process gasifies coal in-situ, eliminating the need for mining the coal and processing it through a surface gasification plant. UCG offers the potential to use the energy stored in coal deposits that are uneconomic to mine by conventional methods. How it works: • Vertical wells are drilled into the coal and linked horizontally. • The coal seam is ignited and air or oxygen pumped into an injection well to allow for combustion. • Through a series of chemical reactions involving pressure, heat and carbon dioxide from combustion, steam (generated from water in the coal) and carbon from the coal, syngas is produced. • The syngas flows to the surface through a production well. Source: Australian Syngas Association.

Carbon Energy keen to push ahead at Bloodwood Creek Carbon Energy has big plans to provide efficient energy and become a major gas provider in the Queensland market. The company recently announced an 83 per cent increase in proved and probable (2P) UCG gas reserves at its Bloodwood Creek site near Dalby. Company chief executive officer Morné Engelbrecht said the opportunities for UCG technology in Queensland were wide. “The efficiency of (UCG) makes a lot sense for governments and companies around the world,” he said. “Obviously there’s great debate going on about gas reservation and the gas shortage on the east coast of Australia so we’re hoping to be part of a solution.” Carbon Energy is the only UCG venture remaining from three pilot plants in Queensland including Linc Energy’s Chinchilla plant and the former Cougar Energy plant at Kingaroy. The Queensland Government in 2013 released the final recommendations from an Independent Scientific Panel (ISP) examining the future of UCG industry in the state. The ISP recommended that no commercial UCG facility should be commenced until successful decommissioning of the underground cavities used in the process could be demonstrated. Natural Resources and Mines Minister Andrew

Cripps said at the time that the ISP report suggested Queensland was possibly leading the world in developing UCG technology and that Carbon Energy and Linc Energy had shown they could successfully commission and operate their technology. “However, neither has yet demonstrated effective remediation of underground chambers,” he said. Mr Engelbrecht said Carbon Energy was in the process of developing a plan alongside the Queensland Government to meet the required criteria. “We still have a positive outlook,” Mr Engelbrecht said. “It’s been a slow process getting to this point but we’ve been encouraged by the positive ISP report. We’re looking forward to getting over hurdles like the rehabilitation plan, which we’re happy to go through. It’s part of proving the technology and also monetising quite a sizeable asset for the company.” In the meantime Carbon energy is implementing UCG technology overseas. “We actually just started our project in inner Mongolia with our project partners there,” Mr Engelbrecht said. The company was also working on opportunities on in Argentina and Chile. “We’ve had a really good response overseas. As an efficient use of resources, nothing really compares to UCG,” Mr Engelbrecht said.


4

NEWS

January 2014 |

The Mining Advocate

Coal struggles set to continue Analysts are flagging a lacklustre year ahead for the industry, writes Bruce Macdonald. Experts agree there is a global oversupply of thermal and metallurgical coal which has pushed prices down, with the glut unlikely to ease as Queensland producers ramp up exports through production efficiencies. The latest Federal Bureau of Resources and Energy Economics (BREE) quarterly report said new mines coming online over the past few years had entered an environment where demand growth has moderated. BREE’s report also pointed to the rapid increase in the trade of low rank Indonesian thermal coal which has placed additional downward pressure on prices. For 2014, BREE is forecasting that the benchmark price for thermal coal will settle around $US89 a tonne. International banking group Goldman Sachs said seaborne prices near marginal costs of production suggested that most thermal coal growth projects would struggle to earn positive returns for their owners. But the company wasn’t predicting the end of thermal coal, saying that demand would continue from China and India. Another international banking organisation, Citigroup, was predicting global oversupply of metallurgical coal of about 8.5 million tonnes, or about 3 per cent of global demand, last year. Prices of metallurgical coal fell about 20 per cent in Australia

last year but industry analysts are predicting a price per tonne of around $155 driven by Asian buyers after trading at $140 last September. In the December quarter, metallurgical coal traded at $152 per tonne. The Goldman Sachs report said that the glut would continue to at least 2015 and Chinese analysts are forecasting a thermal coal price of $US85 a tonne in the foreseeable future, close to the BREE estimate. On a brighter note for the export industry was the fall in the Australian dollar which recently slumped below 90 cents to the US dollar. Energy Economics’ Central Queensland Coal Railing Forecast is predicting significant increases in tonnages from 182.3 million tonnes in fiscal 2013 to 219.7 million tonnes in fiscal 2017, an increase of 37.4 per cent over the four-year period. Coal railings to domestic customers in Queensland are expected to increase by 1.9 million tonnes over the same forecast period. Coal demand in Queensland has fallen in recent years, according to the report, as gasfired and renewable energy generation capacity has impacted load factors at coal-fired power stations. But the report added that a recovery in domestic coal demand is based on forecast strong growth in electricity

consumption and an assumption that domestic gas prices will increase toward export parity levels from Curtis Island off Gladstone, where three LNG plants will be exporting in 2016. Queensland’s coal exports are comprised of 72 per cent metallurgical coal and 28 per cent thermal coal. Energy Economics said global demand for metallurgical coal imports was forecast to grow from 312 million tonnes in 2013 to 394 million tonnes in 2017, an average growth of 20 million tonnes per year over that period. Thermal coal global imports are predicted to grow from 956 million in 2013 to 1144 million tonnes in 2017, an average annual increase of 45 million tonnes.

Experts have highlighted an oversupply of coal.

Suppliers urged to adapt Queensland coal export tonnages have risen steeply, but businesses linked to the coal industry supply chain are still struggling, according to industry experts. Capricorn Enterprise economic development manager Neil Lethlean said businesses servicing the coal mining industry in Rockhampton, Mackay and within the Bowen Basin had not adapted quickly enough to reflect the marked change in operating conditions. Thousands of staff have been made redundant and cost-saving measures have been adopted across all sectors of the coal mining industry. State Treasurer Tim Nicholls has been trumpeting how the diligence of his government has played a role in delivering potentially record levels of coal exports.

Caval Ridge nears finish line BMA’s new Caval Ridge metallurgical coal mine under construction near Moranbah is nearing the commissioning phase and is on target

to ship first coal for export later in the year. A BMA spokeswoman said an official announcement on project

Work under way at BMA’s Caval Ridge coal processing plant.

Photo: Daimen Carty

progress would be made on January 22. The mine project, valued at $4.2 billion, has employed about 2000 workers in construction for elements including civil works, a rail loop, coal handling and preparation plant plus an accommodation village. When fully operational, about 500 staff will be employed. The project has been at the centre of controversy with BMA determined to stick with its policy to employ FIFO workers only, excluding out-of-work miners who live in the area who would commute by car. Isaac Regional Council mayor Anne Baker said Queensland Co-ordinatorgeneral Barry Broe’s development approval for Caval Ridge’s 1945-room Buffel Park Accommodation Village in Moranbah would adversely impact the local community.

Mr Nicholls pointed to record Gladstone exports of 5.98 million tonnes in October, up 17.4 per cent on the previous year, while his colleague, Transport and Main Roads Minister Scott Emerson said Queensland’s ports were on target to top the 200-million-tonne mark for 2013-14. Mackay Area Industry Network (MAIN) director and Mackay Chamber of Commerce chair Tim Miles joined Mr Lethlean in pointing out that the bumper export numbers do not reflect what is happening in regional centres servicing the coal mining industry. Mr Miles said businesses in his area had experienced a marked decrease in money offered to service the Bowen Basin coal mine operators. MAIN has become so concerned with the situation it has set up a specialist panel to deal directly with mine company representatives focused on the procurement area. “We want a clearer picture of what mining companies want and how it can be best delivered by (supply chain) businesses,” Mr Miles said. MAIN was urging its members to form partnerships with other (allied) businesses to get work, he said. The Queensland coal industry is producing preGFC export tonnages but with leaner and much more cost-effective operating systems at near half the price per tonne of the boom levels. Mr Miles said the impact had manifested itself markedly in the real estate market where only three years ago accommodation vacancy rates tracked at 0.7 per cent but now sat around 8 per cent in the Mackay area. “The norm is around 5 to 6 per cent, but in Mackay it appears to have stabilised at about 8 per cent,” he said. Mr Lethlean said Rockhampton’s dependence on the coal mining industry wasn’t as marked as Mackay, but its real estate vacancies had been tracking at 1 per cent 15 months ago and were now around 3 per cent. Mr Lethlean believed there would be little change until multibillion-dollar Galilee Basin projects moved into the construction phase. “Capricorn Enterprise is urging businesses to start thinking about strategies to service those big Galilee Basin contracts now so they will be ready when opportunities arise,” he said.


NEWS

The Mining Advocate | January 2014

5

Dredging plan awaits green light Spoil dump remains a stumbling block, writes Bruce Macdonald. The controversial dredging project for the Abbot Point coal loading facility remains in limbo despite recent approval from Federal Environment Minister Greg Hunt. The Great Barrier Reef Marine Park Authority (GBRMPA) had 10 working days after Mr Hunt’s December announcement to lodge a report stating its position on the dredging of 3 million cubic metres of spoil to another site within the marine park. GBRMPA manager for biodiversity, conservation and sustainable use Bruce Elliot said it was carefully considering the permit application from North Queensland Bulk Ports (NQBP) for disposal of dredge material. “We have extended the time for making a decision on the dredge disposal application under the

Great Barrier Reef Marine Park Act until January 31,” he said. A site north-east of Abbot Point, about 3km from a WWII submerged Catalina aircraft wreck, has been presented as the favoured destination for the spoil. NQBP chief executive officer Brad Fish said the Public Environmental Report scientific studies of the site were robust and did not identify any significant impacts. However, the conditions of Mr Hunt’s approval of the project included GBRMPA and the Department of Environment working through the Disposal Site Analysis Plan to determine whether there was a better alternative offshore disposal site which provided equivalent or lesser environmental impact, he said.

Abbot Point coal loading facility near Bowen in North Queensland.

“A final site will be selected after completing the DSAP in consultation with the two regulators (GBRMPA and DoE) and the Technical Advisory Consultative Committee,” Mr Fish said. NQBP has only a few windows each year where

Westerman takes the reins as de Kruijff says farewell North-west Queensland enters 2014 with a major shake-up of management for Mount Isa Mines and Ernest Henry Mining, as chief operating officer and long-time employee Steve de Kruijff flies the coop. The raft of executive changes comes at a time when the community is still trying to get the measure of new corporate owners Glencore, according to Mount Isa businessman and deputy mayor Brett Peterson. “It’s the same as in 2003 when Xstrata took over – and we were pleasantly surprised. They were a community partner and great corporate citizens,” he said. “We’re hoping Glencore will follow the same procedure.” Mr Peterson stressed the need to move forward and build confidence in the north-west mining hub as the resources industry downturn took its toll. And he said some of the economic effects that people were blaming on the Glencore takeover of local mining operations were actually symptoms of the general downturn. Mr Peterson said Mr de Kruijff ’s impact during

conditions are favourable to undertake the dredging project. “There are specific months which are best for dredging as well as weather variables which impact the timing,” Mr Fish said. Meanwhile mining

companies planning multimillion-dollar projects in the Galilee Basin are still going through environmental impact studies and planning exact alignments of rail links. GVK Hancock and Adani plan to build rail

infrastructure to get coal to Abbot Point if the necessary approvals are granted. Both companies plan expansions at the facility and an associated State Industrial Area has been earmarked by the Queensland Government to service the growth.

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www.worksafeconnect.com Steve de Kruijff

Mike Westerman

his time at the helm of Glencore/Xstrata’s North Queensland copper operations had been phenomenal and that his successor had a big set of boots to fill. However, he said new chief operating officer Mike Westerman had been in Mount Isa since 2000 and had also shown a willingness to become involved in the local community. “I know losing someone like Steve who has been here since the early ’70s will have a huge impact on the community,” he said. “I suppose there will be probably a different management style. The main thing is that we can

start to move forward as a community whether business or residential.” Myles Johnston also recently left his position as general manager Ernest Henry Mining, which has become defunct. Under a new merged management structure Matt O’Neill has been appointed as chief mining officer and Richard Harvey as chief processing officer for the Cloncurry and Mount Isa operations. Mr de Kruijff, who is retiring in February, issued a statement thanking the workforce and community for all the support they had provided since he took the chief operating officer position in 2006.

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REGIONAL ROUND-UP

January 2014 |

The Mining Advocate

Rockhampton

Cape York

Rockhampton’s great potential as a fly in-fly out centre for the developing Galilee Basin was highlighted at a recent Capricorn Enterprise Business Leaders series forum. AMCI investments general manager of project development Rob McNamara said the Galilee Basin could have a FIFO workforce of 8000-10,000 in the long term, The Morning Bulletin reported. “If Rockhampton was able to secure, say, just 1000, that would generate a direct population increase of maybe an additional 4000 or 5000 people,” Mr McNamara said. AMCI is joint venture partner with Bandanna Energy in the South Galilee coal project, in the Alpha area.

Cape Alumina is scrapping the proposed $1.2 billion Pisolite Hills project following a State Government decision to ban development in the nearby Steve Irwin Reserve and sections of the Wenlock River. The Cairns Post reported that up to 400 existing jobs would be lost, including the contracts of 75 traditional owners from nearby communities. Cape Alumina managing director Graeme Sherlock said the company, which had spent about $20 million on the Pisolite Hills project, was only told of the decision to declare the Steve Irwin Reserve a “strategic environmental area” an hour before the public announcement. The project, north of Weipa, had been tipped to create about 1700 jobs over the mine’s 14-year lifespan. “We’re talking billions of dollars in lost opportunities,” Mr Sherlock told the paper. Cape Alumina has announced that it will now focus on development of its Bauxite Hills mine and port project.

Mount Isa

Gladstone

Mount Isa Mayor Tony McGrady is calling for cooperation across northern Australia to put pressure on the federal government to deliver tax breaks for regional workers. Judging by comments at a recent business forum in the city, the zone allowance still featured highly on the list of what was important to Mount Isans and regional areas in general, he said. “What I propose to do is mount a campaign taking in the whole of northern Australia – encompassing Western Australia, the Northern Territory and Queensland – to take the issue of the zone tax before the Prime Minister,” Cr McGrady said. State Member for Mount Isa Robbie Katter also argues that a special zone tax or allowance remains pivotal to the development of North Queensland. “What also needs to be addressed in North Queensland, apart from just tax breaks, are infrastructure, access to cheap power, roads we can rely on, quality communications services, and affordable air services to major regional and metropolitan centres,” Mr Katter said.

The pressures that led to Rio Tinto closing its Gove alumina refinery in the Northern Territory are bearing down on its two refineries at Gladstone, The Australian has reported. Rio’s alumina and bauxite head Pat Fiore told the paper the recently expanded Yarwun refinery and the Queensland Alumina (QAL) refinery were operating in a challenging environment of Chinese overcapacity and low alumina prices. “Their costs are much better (than Gove), which is good, but they know the market is so tight that they have to keep improving,” he said. The Observer reported that Gladstone’s Boyne Smelter was cutting back aluminium production by 14,000 tonnes for the first three months of 2014 – a decision which followed months of negotiations with Queensland electricity suppliers to try to secure a competitive price for 140MW of the smelter’s electricity. Boyne Smelters general manager Joe Rea had earlier told the paper: “It is an ongoing concern for our business that electricity prices in Queensland are significantly higher than other states in Australia, at a time when the price for aluminium in Australian dollar terms is 20 per cent lower now than during the global financial crisis.”

Emerald The final stage for the Nogoa Rise Estate development is approaching completion, with 68 vacant blocks to be sold by auction in 2014, according to the Central Highlands Regional Council. A total of 184 lots of land were created in the development, which the council undertook to increase Emerald’s residential supply and build its rates base. “Council is taking a long-term view about residential development. We started developing this estate when there was no interest from the private sector,” Mayor Peter Maguire said. “Emerald has a diverse economy and will continue to grow. The mining industry will come back - so we need to be ready and have land available for population growth.” The council said other land development happening in the region included works at the Gemfields, investigative options in Springsure and Capella, as well as developments with EDQ (Economic Development Queensland) in Blackwater.

Dalby Ostwald Bros has put a call out for any of the staff made redundant by the recent closure of the Wilkie Creek mine to discuss job opportunities in the company. The Chronicle reported that the firm was trying to recruit 300 workers as it rushed to keep up with a heavy flow of work from the region’s growing gas industry. Peabody Energy announced in late 2013 that it was closing Wilkie Creek coal mine in response to low coal prices and high operational costs. Western Downs Regional Council mayor Ray Brown said before Christmas that coal seam gas companies operating in the region had already taken on some workers. And Construction, Forestry, Mining and Energy Union district vice-president Shane Brunker told The Chronicle a number of workers were likely to relocate within Peabody. APN reported that Peabody opted to shut down Wilkie Creek at the end of a company review after struggling to offload the operation for at least 18 months.

Townsville’s ship comes in, with QN backing Japanese company Daiichi Chuo Shipping Group has named its newest vessel MV Townsville Maru after the unofficial second capital of Queensland. A host of dignitaries gathered

at Berth Two at the Port of Townsville recently to watch the 58,000 dead weight tonnes (DWT) vessel unload its first shipment of nickel ore from Indonesia, bound for Queensland

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Nickel’s (QN) Yabulu refinery. QN managing director operations Ian Ferguson said Daiichi’s construction of the vessel was a further indication of the longer-term future of the refinery. Daiichi spokesman David Ramsay said the MV Townsville Maru – which will spend most of its time servicing the Port of Townsville - was built as part of the company’s fleet renewal and expansion program. It was named in honour of the 16-year association between the shipping group and QN. “Queensland Nickel is one of Daiichi’s biggest customers and Townsville is the most frequented port of call for our Supramax fleet,” he said. Mr Ferguson said QN had undertaken a major time and motion study and intensive training of port-based staff to

The MV Townsville Maru at the Port of Townsville recently.

improve the turnaround of the Daiichi Supramax fleet. “Unloading used to take four to five days, now we can complete the job in two to three days,” he said. QN has purchased a new unloading hopper and has had special grab buckets fabricated to match the hopper’s dimensions.

“We have arranged with Daiichi shipping crews to fit our grabber for unloading,” Mr Ferguson said. Three locomotives hauling 39 wagons work around the clock unloading the bulk ore carriers and unloaded more than 400,000 tonnes of nickel ore in December.


NEWS

The Mining Advocate | January 2014

7

Projects home to innovation Changing demands drive a new take on housing, writes Bruce Macdonald. The coal seam gas boom in the Surat Basin has seen the emergence of innovative, affordable housing projects in centres like Miles and Roma. Data from the Office of Economic and Statistical Research reveals that by

Horizon Housing is leading the way in creative use of space and shared living areas. Horizon projects include a $1 million studio unit complex at Roma and nine new townhouses in Miles, which are all occupied.

Residents’ representative Jessie Roberts (left) talks with Horizon Housing representative Anna Campbell at the Roma complex.

2031 almost 60 per cent of households in the Western Downs and Maranoa regional council boundaries will be made up of couples without children or singles. It raises the question of how best to accommodate this future population. Despite the trend away from the traditional family unit, centres like Roma and Miles are still dominated by larger three and fourbedroom homes. Gold Coast-based affordable housing company,

Additional developments are planned in 2014 and 2015 as Horizon Housing moves towards its target of providing 50 dwellings in Roma and Miles. Properties already completed are rented under various schemes at well below market prices for rent. The nine new two and three-room units built at Miles were financed as part of Australia Pacific LNG’s $10 million funding package to support communities surrounding

its gas fields in the Surat Basin. It has also allocated $1.75 million for a development in Roma to be delivered in partnership with Horizon. This will include six three-bedroom townhouses and four two-bedroom townhouses, scheduled for completion in September, with an additional eight townhouses scheduled to be built in 2015. Santos GLNG has also joined the push to develop affordable housing options for younger people living in Roma. A $1 million project delivered in tandem with Horizon in Roma features two buildings containing eight studio apartments with communal bathroom, living, kitchen and laundry areas. Rental costs at the Roma Community Housing Project start at as little as $159 per week. Resident Jessie Roberts has taken on the role as residents’ spokesperson at the Roma complex. “I have lived in Roma for about two years and not only is it difficult to find a good place to rent, it can also be expensive - which means it is hard for young people to be independent,” she said. “It’s fantastic to have a brand new place to live in which offers the privacy of your own space along with the opportunity to mix with other younger people who are in a similar situation.”

Development wins award An affordable housing project opened in Miles last year has won the inaugural Mining and Resource category at the Urban Development Institute of Australia (UDIA) Queensland Awards for Excellence. Developed by not-forprofit Horizon Housing in partnership with Australia Pacific LNG, the development features three triplexes for a total of nine two and threebedroom units at two street locations. Horizon Housing sold two of the units to owneroccupiers and has retained seven for rent to local families and key workers at affordable rates.

Chief executive officer Jason Cubit said the team at Horizon Housing was delighted with the UDIA award, which would help to highlight the

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8

NEWS

January 2014 |

The Mining Advocate

Peak performance from engineers Regional professionals have won recognition for top-notch work, writes Dominique Kimber. The recent 2013 Townsville Engineering Excellence Awards was a sold-out event with a record attendance of 136 people. Engineers Australia Townsville Regional Group Chair Bill Hutton said the awards confirmed the high level of work being completed by engineers in the north of Australia. “The quality of the nominations was outstanding. The judges had quite a hard time picking the winners. For this reason we had the winners but we also had a commendation for the runnersup,” Mr Hutton said. The Townsville Port Access Road by AECOM took out the Townsville Region Major Project of the Year award, while Golder Associates was awarded the Townsville Region Minor Project of the Year for

Wallaman Falls Cyclone Yasi and other national disaster recovery works. Russell Olsen from GHD received the Townsville Region Professional Engineer of the Year award and Donald McPhail from Ergon Energy was named as the Townsville Region Young Professional Engineer of the Year. The awards lined up with the 2013 Northern Regional Engineering Conference and acted as part of the conference social program. The theme of the two-day conference, which attracted 125 delegates, was Infrastructure Innovation and Risk. “Townsville generally has good infrastructure but the rest of regional north Queensland doesn’t really have the infrastructure in place to support the predicted growth we’re going to have in the

A major new crossing at the mouth of the Ross River – the John McIntyre Bridge – was erected as part of the award-winning Townsville Port Access Road project.

Bill Hutton Engineers Australia Townsville Regional Group chair

industry,” Mr Hutton said. “That’s been identified in the recent Australian regional

institute report and by an Engineers Australia report card on infrastructure. “So we really wanted to identify that we do have some good infrastructure here in Townsville but to highlight that we need further infrastructure in the region to support growth in future years. “One of the key messages that came out in the conference I think is that we need to

look to innovative solutions to meet the requirements of the engineering community moving forward and we need to manage the risks moving forward. Especially here in the north where risks include cyclones and things like that.” The annual conference which moves between Mackay, Townsville, and Cairns – will be held in Cairns in 2014.

Yasi works blow judges away A project by Aurecon and Queensland Sugar to restore the Lucinda Bulk Sugar Terminal after Cyclone Yasi was among the

Engineers Australia national president Dr Marlene Kanga with Aurecon technical director Arne Wilson and Queensland Sugar special projects manager David Williams at the national awards ceremony. Photo: Andrew Taylor

big winners at the 2013 Australian Engineering Excellence Awards, announced in Canberra recently. The project took out an Engineering Excellence Award for its damage assessment and recovery design. Aurecon said a feature of the project’s engineering was a focus on understanding the Cyclone Yasi event, why damage occurred, and application of this in cost-effectively designing the repair works to be more resilient to future extreme events. Brisbane’s $5.6 billion infrastructure project the Airport Link Northern Busway and Airport Roundabout Upgrade was announced as the top award recipient. A rock-bolting rig entered by Robert Elks & Associates, SapuraClough Offshore and Phillips Engineering was also among the Engineering Excellence Award winners for its

innovative solution to securing underwater pipelines to seabeds, using a remotely operated subsea vehicle. Origin Energy senior instrumentation, control and electrical engineer Andrew Leeson was among the individual award winners. Named the National Young Engineering Technologist of the Year 2013, Mr Leeson is responsible for engineering through all phases of CSG and conventional hydrocarbon projects for Origin. Other Queensland winners included transport department stalwart Bryan McSweeney, who was named the National Engineering Associate of the Year. . The National Professional Engineer of the Year was WorleyParsons engineering manager for Australia and New Zealand, Stuart Payne, of Western Australia.

Rallying call on disaster planning Engineers could be doing more to provide crucial help when it comes to natural disaster planning and management in Australia. Engineers Australia president Marlene Kanga, in Townsville for the Northern Regional Engineering Conference, said engineers had the knowledge and expertise to develop planning that would help Australians respond more effectively to hazards such as bushfires, floods, and cyclones. “We (engineers) actually have a key role here. We can be quite apolitical and just give the facts on engineering but we should be doing more and speaking out,” Ms Kanga said. “We have the expertise and so we should say ‘what are going to do about it?’ Conferences like this are very important but we need to go the next step and engage with media and government on issues like

natural disasters.” Ms Kanga said the key to effective planning was to identify the risk of a natural disaster and weigh up the consequences through a process of mapping historical events. “Once you’ve assessed, what are you going to do about it? You need to prioritise risk and introduce planned mitigation actions looking at structural measures and non-structural measures,” she said. “The most important thing in all of this is communication though. The community needs to understand the planning and they need to buy into it. “There’s a pressing need to develop and transparently share hazard mapping to understand natural hazards. “So we really need to work with the government on policy making to develop better responses.”


NEWS

The Mining Advocate | January 2014

9

Indigenous retention the key Brisbane forum highlights the need to ensure workers feel they are part of the process A forum in Brisbane has highlighted retention of indigenous employees as an important step in building the indigenous workforce in the resources industry. The recent forum stemmed from a Memorandum of Understanding (MOU) between the Queensland Resources Council and the state and federal governments. The MOU aims to create more jobs for indigenous people in mining and more business opportunities for indigenous people in the supply chain in the resources sector. Partnership facilitator Michael Limerick said that following what has been a turbulent few years in the industry, the most recent forum focused on

retaining and developing the current indigenous workforce. “The industry is cyclical, so one of the issues is timing,” he said. “When the process (MOU) first started in north-west Queensland in 2008 it was just after the GFC and there wasn’t a lot of jobs growth. “Unfortunately the same thing happened in 2011 after we expanded to the coal sector, which coincided with the downturn in coal prices. A lot of the coal companies started to shed jobs, which made it difficult to have the conversation with companies about increasing indigenous employment.” One of the solutions raised at the recent meeting was for companies to improve their

Michael Limerick Partnership facilitator

support systems for indigenous employees including mentoring and more flexible work practices. “We also talked about how government can work better with industry around what we call wrap-around support needs of indigenous employees and

trainees,” Mr Limerick said. This included areas such as connecting to health services, connecting to the transport department or literacy and numeracy supports provided by government programs. The current MOU runs until June, and Mr Limerick said those involved would be working hard to prove the worth of the concept for the future. “The engine of the partnership process is the regular forums. At first I wondered what that could achieve on its own - they’re just meetings after all. But what I’ve found as partnerships have progressed is that those forums actually generate a lot of momentum for this area and we get some really positive information sharing between companies,” he said. “More importantly is that it’s more of a motivational thing

and people take it back to their workplaces. So it empowers them to implement things in their own workplace. “We had an independent evaluation earlier this year by the University of Queensland where every party interviewed endorsed the concept and the conclusion is that indigenous participation is a challenging area in the resources industry and that the only sustainable solution is through partnerships. The MOU is an important part of making those partnerships happen.” The most recent forum – held at Rydges Hotel, South Bank in Brisbane – included presentations from parties including the QRC, Wesfarmers, Thiess, MMG, QGC, BMA, Compass Group, Morris, the Department of Employment and The Mining Advocate managing editor Robert Dark.

Campaign brings fresh options for Gulf youth Eleven young people from around the Gulf of Carpentaria are benefiting from MMG Century mine’s renewed approach to training and employment in 2014, with opportunities in fields ranging from mining to childcare. The 11 are the operation’s latest graduates from the Work Ready, Job Ready program at the Myuma training facility near Camooweal, 200km west of Mount Isa. Under the program, MMG Century recruits participants, pays their wages and funds three full-time mentors to support the group during their time at Myuma. The Queensland Government provides funding for the training aspects of the program. While six of the 11 graduates have taken up apprenticeships and traineeships at Century’s Lawn Hill operation, one will be employed as an automotive apprentice with a major vehicle retailer in Townsville while another participant will take up a child care traineeship in Normanton. Two of the graduates have been offered positions in administration and traffic control at Myuma and another has been placed with CopperChem in Cloncurry. MMG Queensland operations general manager Mark Adams said while mining companies usually trained people to take on roles within the resources sector, Century had taken a more creative approach with its latest intake of trainees and apprentices. “Now as we approach the end of production from the

Century open pit, we’re looking to help reduce reliance on the mine for employment while still providing opportunities for young people in areas that appeal to their individual strengths and preferences,” he said. “We’re in a position to help young people from the Gulf region gain skills and qualifications that will help them in their future careers. Seeing them grab these diverse training

opportunities is, in our view, what success looks like.” During the 13-week Work Ready, Job Ready program at Myuma, participants are trained in a range of areas from machinery operation to safety and health. The facility provides pre-employment training for a number of companies, including MMG.

Century’s Work Ready, Job Ready participants at Myuma.

Family support crucial for workers Mining companies need to increase support services for indigenous workers with young families in order to retain them, according to the manager of the indigenous training organisation, Myuma Group. Myuma Group director Colin Saltmere says that more of a

focus needs to be placed on indigenous families for company indigenous programs and initiatives to be successful. “When a worker is out of the family for three, two, or even one week there’s a whole range of stuff that can happen at home and obviously the more remote

QGC workplace mentor Isaac Mundraby (left) and indigenous relations specialist Kevin Alley (front right) with a group of QGC wellsite operators.

you are the more problems you can have. Mining companies have to take these issues into consideration,” he said. “Those who suffer the most usually drop out and I think that that is something that all parties need to address.” Mr Saltmere said that the best way for companies to address issues beyond the mine site was to have flexibility in the workforce and to open communication in a way that made indigenous workers feel that they could open up about issues affecting them. “Having people and liaison officers available to workers who understand the issues is important,” he said. “I know they usually have mentors on site, and I know people say they can’t be family psychologists and all that, but I think there needs to be someone available who they can have open and direct dialogue with, someone that’s culturally appropriate. Basically they need someone there that they can

trust to talk openly with.” Queensland gas company, QGC recently released its own reconciliation action plan setting targets for indigenous employment numbers, contracts with indigenous businesses, and mentoring schemes up to 2015. QGC vice-president of sustainability Brett Smith said a key part of the plan would be a cultural awareness training program for QGC staff. “As part of the plan, traditional owners will be consulted in the development of a cultural awareness program which will include the display of flags on all premises, standard ‘welcome to country’ acknowledgements, celebrating NAIDOC week, displaying traditional owner artefacts and an intranet page listing cultural events. “We will have extended our mentoring service – available to all QGC Aboriginal and Torres Strait Islander employees – to QGC’s contractors by the middle of next year.”


10

OUR MINING HERITAGE

January 2014 |

The Mining Advocate

School mined wealth of talent In 1877 some of Charters Towers’ most influential men conceived the idea of a school of mines to provide training for future generations of miners. After more than 20 years of planning and fund raising, the school opened its doors to students in 1899. Regional archivist, community historian and author of more than 20 publications on Charters Towers’ history, Michael Brumby, says the concept for the school was forward thinking for its time. “It came at a time when Queensland didn’t in its own right have any formal tertiary education,” he said. “The whole idea of having high schools didn’t come around until 1912, so to actually have an

institution that was post-primary to encourage young men to learn the ropes of the mining industry was quite revolutionary. “They taught subjects back to back so that shift workers could get to lessons, which was very forward-thinking for the time. “They had all sorts of courses ranging from metallurgy, to mining surveying, to engineering. “Most of the classroom areas were laboratories, chemical laboratories, chemistry lecture rooms, drawing and design rooms, and there was a furnace room.” Mr Brumby said the school was also recognised for some of its influential and well-known graduates. “The school was the only one

Scholar.” Other graduates included Dave Morris, Peter Mansini, Harry Shaw, David Morris and Tom Morrison who went on to work for BHP, mainly at Newcastle. “These guys never found long-term work within the Charters Towers mines but these graduates ended up in places like Mount Morgan, Cloncurry, Ravenswood, Newcastle, and

even West Africa,” Mr Brumby said. “Just because we missed out with these workers locally doesn’t mean to say their skills went un-used. They worked in all parts of Australia and even overseas. “The school really was one of the cleverer things that they did at the time, and was really quite visionary.”

Michael Brumby Community historian

of its kind in Queensland, and according to my figures had more students than any other school of mining other than the one at Kalgoorlie, so it was quite significant,” he said. “Some of the people who went there included Oliver Woodward - who was a World War I tunneller and his life was depicted in the film Beneath Hill 60. “George Hall attended for some time and he was North Queensland’s first Rhodes

Mining and surveying lecture room.

Groups join forces for Charters Towers conference Charters Towers will host the 10th International Mining History Congress and 20th Australasian Mining History Association Conference as a joint event in 2014. It will be the first time that the two internationally recognised mining groups have joined to form one large meeting, running from July 6 to 12 with the theme Past Heritages: Future Prospects. The conference co-ordinator, Charters Towers historian Kett Kennedy, says it

will be a once-in-a-lifetime event. “In the past the International Mining History Congress has been held in Germany, Japan, India, Greece and the last one was in Johannesburg - which is where the idea came up to combine the two events and turn it into one major event,” he said. “The Past Heritages section of the event will be held in Charters Towers, which is the perfect setting and will hopefully remind everyone about how rich the town’s history is.

“On Saturday the 12th, the event will move to Townsville for one day and will cover Future Prospects.” This would see big names from around the world presenting papers on issues such as fracking and fly in-fly out workforces, he said. Charters Towers Regional Council Mayor Frank Beveridge said the event would give a significant boost to the town’s economy. “An event like this brings in international tourists, which puts us on

an international stage,” Cr Beveridge said. “It books out the accommodation and there should be a knock-on effect as people visit other areas in the region. “Charters Towers has a continuous mining history of over 135 years and it’s fitting in an area that was built on mining that you would have an international conference.” For more information visit www. ct2014miningcongress.com

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OUR MINING HERITAGE

The Mining Advocate | January 2014

11

~ Life at the lodge ~

Strike stands out in memories It was a bitter battle, but former CFMEU Peak Downs lodge president Marty Crane has a few chuckles to share, along with great pride in the local community, when he recounts the landmark 2001 dispute with BHP at its Dysart and Moranbah sites. A member of the lodge for about 40 years, having been with the Federated Engine Drivers and Firemen’s Association (FEDFA) before it amalgamated into what later became the CFMEU, the former dragline and pre-strip operator has now retired to Armstrong Beach near Sarina. But he led striking Peak Downs lodge members alongside CFMEU district vice-president Steve Pierce during the 2001 standoff with the coal-mining giant over changes the union feared would damage local communities by increasing the drive in-drive out and fly in-fly-

x

out component of the workforce. “We were on strike for six weeks, held a picket line for six weeks and during that time we stopped trains, stopped them loading,” Mr Crane said. “We talked to the railway unions and they would ring whenever a train was due – mostly early hours of the morning when BHP would try to sneak the trains in to be loaded.” He has many fond memories of the Peak Downs picket line, which included a camp set up with marquees and coldrooms near the turn-off to Dysart. “After it was over we built a big barbecue area out there, so next time there was a strike we would have cover over our heads - they (the company) cracked up because we said we were going to call it Picket Park,” Mr Crane said. Striking workers were rostered to man the picket line 24-7 at the

Marty Crane former Peak Downs lodge president

height of the 2001 dispute, and Mr Crane said there were “heaps of funny things” that went on as they kept themselves occupied.

“We had a fair few good blokes who were staunch blokes, but pretty rough,” he said. “I’d say ‘you can be on permanent night shift if you like’ and when I’d get out there at four in the morning there they would be – covered in coal dust. “I’d say ‘where have you been?’ and they’d say ‘it’s alright the train won’t get through and the loader won’t work today’ - they’d been in there all night just playing bugger up, because the staff were trying to drive the gear.” One larrikin’s constant loud antics on the picket line had his mates mock pleading with the police to take him away, Mr Crane said. “Many funny incidents happened on the picket line and it was strongly supported by the communities, which helped keep the morale of the men up,” he said. Chasing the trains was one of the activities they enjoyed the most. “If I had a message a train was coming through at a certain time I would do a ring-around and get people out to Peak Downs, set up our gear so the trains wouldn’t go through,” Mr Crane said. “We set up all our blokes at the side of the line and put a couple of red flags out and the train

drivers would stop. We had the police come out once when we stopped them going into Saraji – had about 30 or 40 cops turn up to arrest the whole lot of us. “I said to the sergeant ‘don’t get serious about this one, we don’t want to fight with you blokes just give us a minute will you’. “There were about 150 of us Norwich Park, Saraji and Peak Downs blokes - and I said to them ‘scatter as far up and down the track as you can go.’ “I went back and said to the sergeant ‘how you going to arrest us now?’. He said ‘get stuffed, I’m going back to town’. That sort of stuff was fun.” Mr Crane said the outcome was eventually favourable to the union. “We went back to work – they agreed to sit down and renegotiate,” he said. Mr Crane credits the women of Moranbah and Dysart as being one of the key factors in the unionists coming out on top. “They rallied behind us and where we were barred from holding meetings in town and doing things in town the women took over and they would have a blockade of staff going to work and that – it was fantastic,” he said.

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12

INDUSTRY UPDATE - COAL AND GAS

End of the line BG Group celebrated a milestone recently in development of the Queensland Curtis LNG project, with first gas transported from the Surat Basin coal seam gas fields to the liquefaction terminal site. This marked the successful completion of a two-year task to lay more than 46,000 lengths of 1m diameter steel pipe over 540km - the longest largediameter buried pipeline in Australia. “We are now entering the final construction and commissioning phases and we remain firmly on track to deliver first commercial LNG in the second half of 2014, as scheduled and within the $20.4 billion budget,” BG Group chief executive Chris Finlayson said.

Origin supply deal GLNG project participants have executed an agreement with Origin Energy for the purchase of 100 petajoules of gas for supply to the project. The gas will be supplied at Wallumbilla over a period of five years commencing in January 2016. Vice-president downstream GLNG Rod Duke said the project had secured a diverse gas supply portfolio, comprising supply from GLNG’s own coal seam gas fields, Santos portfolio gas, underground storage and third party supply.

Green light for Waratah Waratah Coal’s proposed $6.4 billion China First project - also known as the Galilee Coal Project (Northern Export Facility) - has received Commonwealth approval for its environmental impact statement. Brisbane-based Waratah Coal, a subsidiary of Clive Palmer’s Mineralogy, plans to build a thermal coal mine near Alpha, west of Emerald, as part of its China First project. The mine is proposed to be linked to a coal terminal at Abbot Point near Bowen by a new 453km standard gauge, heavy haul railway line, capable of carrying 400 million tonnes per annum of coal.

Waratah said this would provide sufficient capacity to cater for all proposed Galilee Basin coal mine proponents.

Progress on Galilee rail An agreement between Aurizon and GVK Coal Infrastructure on a proposed rail linkage between Galilee Basin coal projects and Abbot Point has been welcomed by the State Government. Deputy Premier Jeff Seeney said the transport infrastructure was required to unlock the Galilee Basin’s massive coal reserves. Aurizon and GVK Coal Infrastructure said they had reached a significant milestone towards their proposed transaction for the joint development of a rail line and a new Abbot Point coal terminal to unlock coal resources including GVK Hancock’s Alpha, Alpha West and Kevin’s Corner coal projects. Under the proposed framework, Aurizon would acquire a majority interest in Hancock Coal Infrastructure (HCI), which owns GVK Hancock’s rail and port projects, and would invest in each phase of the projects.

Thiess in $550m expansion Jellinbah Resources has awarded Thiess a $550 million contract expansion at the Lake Vermont coal mine, near Dysart. Thiess will help increase production from 6 million tonnes to 8 million tonnes of coal per annum, increasing the annual capacity of the mine over the remaining five years of the current contract. Jellinbah Resources chief executive officer Greg Chalmers said the additional production at Lake Vermont would ensure a profitable future for the mine.

Eagle Downs work goes to WDS WDS has won a drifts construction contract worth about $143 million for the Eagle Downs hard coking coal project, 25km south-east of Moranbah. Aquila Resources, which is developing the mine in joint venture with Vale, said the contract was primarily a rates-based

January 2014 |

agreement with expenditure estimated to be $142.8 million. It covers the construction of two drifts extending on a 2km decline to a vertical depth of 270m. Aquila said the drifts driveage would be completed using two roadheaders specifically engineered to meet the requirements of the contract, including onboard roof-bolting and shotcrete tunnel-lining capabilities. Construction work on the new underground longwall mine is scheduled for completion in the first half of 2017.

Bluff project gains steam Carabella Resources has announced an initial JORC estimate of 11 million tonnes of mineable reserves for its Bluff ultra-low volatile PCI project near Blackwater in central Queensland. The company lodged an Environmental Authority (EA) application and supporting documentation for the project under the Queensland Government’s new Green Tape Reduction process in early November. It says it the mining lease application will be processed in parallel with the EA application and it is expecting project approvals to be received in the first quarter of 2014. Wealth Mining, a wholly owned subsidiary of China Kingho Energy Group, recently launched a hostile takeover bid on Carabella.

Moorlands on track A scoping study for the Moorlands project has confirmed the potential for a robust open-cut export thermal coal operation west of the Blair Athol and Clermont coal mines, proponent Cuesta Coal says. Cuesta is on track to commence a definitive feasibility study in the first quarter of this year, with first coal production scheduled for 2016.

Bandanna EIS approved The Queensland Government has approved the environmental impact statement for Bandanna Energy’s $1.2 billion Springsure Creek project

The Mining Advocate

in the Bowen Basin. Managing director Michael Gray said the approval meant the proposed Springsure Creek underground coal mine remained on track to commence production and exports in mid-2015. “This is one of the few current mining projects in Queensland that is ready to proceed in the immediate future with access to existing rail and port capacity,” he said. If it proceeds, construction of the first stage of the project will directly create 1022 full-time jobs in Queensland and a further 2104 jobs indirectly, according to the company.

Curragh contract extension Wesfarmers Resources has awarded Thiess a four-year contract worth $570 million to extend its involvement in the Curragh North coal mine, near Blackwater. The contract extension complements the 10-year agreement signed in 2010 and will see Thiess continue its activities to optimise productivity in overburden removal and coal mining. Wesfarmers Curragh will continue to provide dragline operations and drill and blast.

Coal spin-off plans Linc Energy has announced plans to sell or spin off its coal division, New Emerald Coal, which recently entered an agreement to acquire the Blair Athol mine in central Queensland. Linc said divesting or demerging NEC marked a significant step in the company’s strategy to focus on its core energy business of conventional and unconventional oil, gas, shale and UCG (underground coal gasification) while unlocking the value of its conventional coal assets. Chief executive officer Peter Bond said NEC was well positioned to become a leading coal production company through a solid development plan and the focus on purchasing low-cost coal assets with immediate production capabilities. NEC is negotiating with several cornerstone investors. Its assets include the Teresa coal project north of Emerald.


INDUSTRY UPDATE - HARD ROCK

The Mining Advocate | January 2014

Dugald River drill campaign The MMG board has approved an additional $57 million to progress trial stoping and diamond drilling throughout 2014 at the Dugald River project, near Cloncurry. Development of the new zinc mine has been delayed by the discovery of complexities in the ore body prompting a review of the planned mining method, optimum mine production volumes and ore processing facilities. “The geotechnical aspects of the Dugald River ore body continue to appear more challenging than prior assumptions, with poor ground conditions making the initial mine plan difficult to achieve,” MMG chief executive officer Andrew Michelmore said. “The 2014 work program is critical for us to identify the preferred mining method and any decision on further development will be deferred while this work is under way.” MMG has confirmed it will not achieve the previously announced schedule of a first concentrate shipment from Dugald River in late 2015.

Honour for Sartain Queensland mining executive Charlie Sartain has been awarded the prestigious Queensland Resources Council (QRC) Medal for his services to the industry, and his support for education and training. Mr Sartain started his career in 1983 with MIM Holdings as a mining engineer in north-west Queensland and rose to the rank of chief executive of Xstrata’s global copper business. He left the Xstrata group following the merger with Glencore in May after more than 30 years’ continuous service with MIM and Xstrata.

Ben Hur gets bigger Aeon Metals has announced a maiden resource for the John Hill copper-silvermolybdenum deposit within the Ben Hur project, west of Monto. The company, formerly known as Aussie

Q Resources, said the deposit was estimated to contain a mineral resource of 190,000 tonnes of copper, 2.7 million ounces of silver and 16.7 million lbs of molybdenum.

13

Totally tubular technology

The combined mineral resource estimate for the company’s Ben Hur and Greater Whitewash projects is now 475,000 tonnes of copper, 14.8 million ounces of silver and 158 million lbs of molybdenum.

New rental regime The Newman Government is reviewing the rents-payable system for holders of mineral development licences. Natural Resources and Mines Minister Andrew Cripps said all mineral tenures paid an annual rent for the land, but the rates had not been modernised for two decades under Labor. “Queensland is the only state that has a rental regime for mineral development licences that incorporates an increasing rate over the first five years of a licence, as well as increasing discounts for larger areas,” Mr Cripps said. “The former Labor Government let this system continue to operate for almost two decades, without ensuring that the arrangements were efficient and relevant to the modern resource sector. “Some tenure holders have amassed large tracts of land for extensive periods of time, which fails to encourage exploration and development. The Newman Government would like to see prospective land developed or turned over to companies that will pursue exploration and this proposal will be a boost for explorers in Queensland.” He said a Regulatory Impact Statement, released recently to industry, proposed that rental rates increase progressively over 10 years to match the rental rate payable on a mining lease and for area discounts to be phased out over a fouryear period. Interested parties have until February 28 to lodge submissions on the proposed changes.

Cyanide plant comes online Queensland silver producer Alcyone Resources has commissioned its own

North West Crane Hire: The largest fleet in NW Queensland including: 18-220t Cranes 34ft-85ft EWPs 3t-7t Forklifts Remote area capabilities including: Side Tippers Semis, Flat top and Step Deck Trailers IT Loader Tilt Trays, and Long-serving, experienced staff, including: Crane Operators, Riggers, Supervisors, Tradespeople and Labourers This means Machines on the ground when you want them and offsite just as quickly. Call the owner Mark Bellamy on 0407 620 868 or Martin Carrington 0407 771 060 NOW to make it happen.

A prototype of the world’s first Coiled Tubing Drill Rig (CT Rig) for mineral exploration has been launched in South Australia. Instead of drill rods, the CT Rig uses a continuous reel of tubing which eliminates manual handling of drill rods and maximises the time the drill bit is actually at the bottom of the hole drilling. Commissioned by the Adelaide-based Deep Exploration Technologies Cooperative Research Centre (DET CRC), the CT Rig promises to significantly reduce the time and expense associated with drilling operations to find new mineral deposits. DET CRC chief executive officer Richard Hillis said the launch came at a vital time for the mining industry. “More than ever, we need to find cost-effective methods of minerals exploration,” he said. “Currently, 80 per cent of Australia’s minerals production comes from mines that were discovered more than 30 years ago, yet more than 50 per cent of Australia’s export income comes from mining.”

cyanide mixing facility for the Twin Hills mine at its Texas silver project in south-east Queensland. Construction of the plant followed a recent review of operations which identified the need to reduce reagent costs significantly. The company has also brought online a new primary crusher, installing capacity

of 1.1 million tonnes per annum. Alcyone managing director Michael Reed said the successful completion of the crushing circuit upgrade would allow the company to increase production volumes to nameplate capacity, reduce costs at the mine and provide the foundation for producing about 100,000 ounces of silver per month.


14

BETWEEN SHIFTS

January 2014 |

The Mining Advocate

MMG Queensland Women in Resources forum MMG Century Mine

Asha Jeet (Toll-NQX), Eileen Heywood (Heywood Consulting) and Jules Brown (AMEC).

Brea Stephen (MMG Dugald River) and Anna Lewin (MMG Melbourne).

Stephanie Carter and Rachel Jacob (MMG Century).

Kasey Assange and Jessica Keast (Prospectors Suppliers).

Todd Wild and Kristy Barnes (Salva Resources).

Natasha Fisher and Marisa Garbrio (MMG Century).

Northern Regional Engineering Conference

PHOTOS: Allison Bessell

Rydges Southbank, Townsville

Front - Bill Peach (Bill Peach Consulting) and Sean Kane (Aspec Engineering). Back - David Croce (Aurecon), Steven Shears and Ben Mills (both SunWater).

Bill Hutton, Marlene Kanga and Simon Orton (Engineers Australia).

Ben Sanderson, Carson Care and Ben Kingsun (all from Ergon Energy).

Andrew Turnour (Incitec Pivot) with Benjamin Wells (SKM).

Emma-Lee Wood, Jazmin Kesteven, Tayla Hickey, Wenxian Lin and Bobby Mathan.

Brooke Veliscek (SPA Consulting), Tamara Cusack (Townsville City Council) and Erwin Van Wyk (Ergon Energy).

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BETWEEN SHIFTS

The Mining Advocate | January 2014

Capricorn Enterprise Business Leaders series forum

15

PHOTOS: Michael Kennedy

Travelodge, Rockhampton

Brad Norris, Geoff Maxwell, and Rebecca McLellan (all Workforce Express).

Neil Fisher (Rockhampton Regional Council) with Kevin Silver and Ray Gottke (both Bradmans).

Tom Pearce, Rodney Moore and Sharon Moore (all Paint Place).

Leanne Ascott and Mark Hogan (both from AON).

Helen Qualfe (Department of State Development, Infrastructure and Planning) with Jessie Conway and Brad Perry (Stanwell).

Marilyn Steel (Rowland) with Julie Tanner and Samantha Willoughby (both Tanner Consulting).

REDC State of the Region panel discussion

PHOTOS: Damien Carty

Souths Leagues Club, Mackay

Rob Porter (Mackay Airport), Brett Rose (North Queensland Airports) and Chris Bonanno (Mackay Regional Council).

Andrew Duck (Brown & Bird Accountants), Tony Stevens (Paynter Dixon) and Peter Gill (Mackay Sugar).

Mark Hennessy, Danny Schneider, Julia Campos and Glenn Byron (all NAB).

John Fordyce (MRAEL Group) with Rita Jewell, Liam Donald and Michael Jewell (all Cardno HRP).

Greg Chappell (PRD Estate), Des Besanko (LJ Hooker) and Annette Reilly (Carlisle Motors).

Felicity Lamb (Whitsunday Surveys)and Mark Mattes (Suncorp) with Damien Frey and Anne Zareh (both Whitsunday Surveys).

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REMEMBERING the past • Supporting the future


16

LIVING REMOTELY

January 2014 |

The Mining Advocate

Playful way to embrace FIFO life A Clermont-based family has come up with a cute and cuddly way for kids to deal with parents working a FIFO roster at the mines. The hi-vis-wearing Zooty Bear is the creation of online company Cuties by Zootys. The stuffed toy is the main character in a new series of children’s books designed to keep children company and help them understand when parents are away for work. Company owner and manager Shauna Zoutenbier said the idea for Zooty Bear originally came from her own family’s experience with the FIFO lifestyle. “I have two sons Pax, who is four, and Boston who is 20 months,� she said. “My four-year-old is the reason I started the company. When he was three all he wanted for his fourth birthday was to look like his Dad and there wasn’t anything available online, so I started to look at ways for kids to connect with their parents who work away. “Both of my boys connected to the bears straight away and the first thing they said was when they saw them was ‘Daddy the bear’.� Mrs Zoutenbier said the books and the bears were great tools for parents.

“Talk to your child as much as possible,� she said. “The books really explain to kids about why parents are going away to work and what they actually do at work. That’s what we did with

Cuties by Zootys books and bears are aimed at FIFO families.

our little fella and he understood a lot more. We would read the books with him and then the next morning, after

his dad would come home, he would be like ‘Dad did you see this out there, or that out there?’ He became more excited about

Safety campaign targets driver fatigue The MAC Services Group is partnering with the Mackay-based Road Accident Action Group (RAAG) in a new safety campaign aimed at reminding workers in the Bowen Basin of the dangers of driving tired over the holiday season. The “Rest Up Rock Star� campaign will be in force until midMarch through the MAC’s 3000-room Coppabella village, the largest workforce accommodation village in Central Queensland. RAAG road safety co-ordinator Graeme Ransley said that group had been working in collaboration with the MAC to design a program to address one of the biggest road safety issues for the region.

“We want to remind road users that fatigue affects everyone, regardless of age or gender and the only cure is a good night’s rest,� he said. “This trial will allow us to capture some valuable data on how workers are travelling around the region, while also giving drivers simple, easy-to-follow tips to help them recognise the signs of fatigue and to act. We wanted to make it interesting to the target audience, using a ‘rock star’ theme throughout. We hope the safety message is as catchy as the songs we feature.� The campaign includes a Whitsundays holiday giveaway and emails from RAAG with a focus on changing driver behaviour.

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hearing what Dad gets up to at work and about talking over the stories with Dad when he would come home.�


Building Mining Communities 17

The Mining Advocate | January 2014

SUPPORTED BY BHP BILLITON CANNINGTON Ivy Roger using equipment purchased with Easternwell grant money.

Cannington Redpath project manager Randy McMahon, the National Breast Cancer Foundation’s Jackie Horwill, Cannington asset president Laura Tyler and general manager operations Troy Wilson (with cheque) join workers celebrating the fundraising achievement. Photo: John de Rooy

Charity singled out BHP Billiton Cannington, in partnership with Redpath Australia, has donated more than $61,000 to the National Breast Cancer Foundation in the culmination of a new annual fundraising initiative. Cannington Mine kicked off the campaign in February 2013 by introducing a bright pink excavator to its mine site. Employees and corporate partners remained engaged in the campaign throughout the

year with charity golf days, the Julia Creek Cannington Dirt and Dust Triathlon, site-wide silent auctions and the annual Christmas party. Asset president Laura Tyler said Cannington’s decision to focus all of its fundraising efforts on a single charity in 2013 aimed to generate greater awareness and a more significant donation for the National Breast Cancer Foundation. “In the past Cannington has

spread its fundraising ventures across a number of charities but, while every bit helps, we hoped that a more concentrated fundraising effort would make a bigger difference,” Mrs Tyler said. Cannington’s 2014 Charity of Choice campaign will focus on the Brainchild Foundation; a charity established in 2010 that aims to assist children living with brain and spinal cord tumours and their families.

Dawson’s pink and blue babies Two Caterpillar 797B haul trucks at Anglo American’s Dawson mine have been given a makeover with pink and blue trays to raise breast and prostate cancer awareness and promote early cancer detection. The two upgraded trucks returned to the haul route at Dawson mine just before Christmas and two lucky

operators, Katrina Boardman and Wayne Makawe, were drawn out of a hat to be the first to drive the rear dumps. Both employees received a gift pack from Hastings Deering, who fitted the new trays after Rockhampton supplier SMW completed the repairs and new paint job. Dawson mobile planner for

Haul truck operators Wayne Makawe (back) and Katrina Boardman pose with the revamped Caterpillar 797B haul trucks.

trucks and engineering Adam Warren said he had commissioned a project to repair the 797 trays, which had sustained wear and tear damage. “Included in the scope of work was a full respray of the tray at completion and I thought why not spray them with another colour and use this as a way to raise awareness for cancer prevention at no extra cost?” he said. “After an indirect family member was diagnosed with cancer and I had a bit of a scare last year which led to a trip to the doctors, blood test and hospital visit, it really got me thinking. It turned out alright for me, but it brought to light how important it is to get checked.” Dawson mine staff held a raffle to raise funds for the Cancer Council.

Funds directed to Dalby Community groups in Dalby have received $4000 through Easternwell’s community grants program, with much needed funds going to Dalby South State School Special Education Program and Dalby Meals on Wheels. Easternwell, one of Australia’s leading drilling and well servicing companies, has been providing financial and social assistance to communities across the country since the launch of the Community Grants program in August 2011. The program has provided more than $90,000 to more

than 56 groups in the areas of education and training, health, indigenous, safety, community and youth. “By working with organisations like Dalby South State School Special Education Program we can provide support to the Dalby community in areas where they have demonstrated a real need,” Easternwell chief operations officer Darren Greer said. The Easternwell Community Grants program awards $40,000 spread across two rounds biannually. Applications for the next round of Community Grants will open in March.

Housing for health workers Health services on the Western Downs have been boosted by the recruitment of two new professionals who are living in houses built by QGC. QGC’s provision of two fourbedroom houses has supported Darling Downs Hospital and Health Service to recruit a dentist and director of nursing who are now both based in Miles. The houses are being leased to the health service at a nominal fee for the next three years through an initiative under the $150 million Social Impact Management Plan for the Queensland Curtis LNG Project.

Executive director of Rural Health and Aged Care for Darling Downs Hospital and Health Services Michael Bishop said it was an ongoing challenge for regional health care services to encourage specialists, such as dentists, to choose to work in regional centres rather than metropolitan areas. “These people will be based in Miles, but help to ensure better access to dental care and improved nursing services for the wider community,’’ he said. QGC has constructed 26 houses in the Western Downs area under the QCLNG Social Impact Management Plan.

Neighbourly invitation A small group of landowners was given the opportunity to check out the latest developments at Ernest Henry Mine, north-east of Cloncurry, at the company’s annual neighbours’ day. An Ernest Henry Mining spokeswoman said attendees were impressed with progress made on the construction of the mine’s underground shaft in recent years. “We are surrounded by pastoral properties so we invite our pastoral neighbours along,” she said. “The idea is it’s a chance to catch up with us face-to-face for updates on what’s going on - how health and safety, environmental and community projects, and, of course, how operations are going.”

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18

BUSINESS TO BUSINESS

January 2014 |

The Mining Advocate

Health and safety high on agenda An industry body has warned that contractors looking for employment in the coal seam gas and liquefied natural gas industries need to ensure they comply with health and safety requirements of gas companies and the Queensland Government. Energy Skills Queensland chief executive officer Glenn Porter says there is a lack of understanding of safety regulation and legislation among small to medium-sized contractors. “The safety culture in some organisations could be improved and that’s up to organisations to implement from the top down,” Mr Porter said. “It’s up to the companies to up-skill and train their new and existing workers to meet competency standards.” Mr Porter said the first step for contractors was to become familiar with the relevant legislation for their particular sub-sector so they were prepared for the work. “The Queensland Government has developed a very regulated industry now and that’s due to a higher-than-average number of incidents taking place in the past,” he said. “For example the drilling industry should contact the petroleum gas inspectorate for information on regulation and legislation. The other different sub-sectors would have similar regulators that could provide assistance.” Workplace safety group

OHS72 owner/director Nicola Kelbie said there was a wealth of free support available to small to medium-sized businesses in the area of health and safety competency. “They absolutely need to be 100 per cent compliant with statute law,” she said. “Many small to medium enterprises are undertaking extensive reviews of all of their health and safety documents. Companies should all be moving in that direction and attending the information and networking sessions in the region. “For example, Gladstone Engineering Alliance has been,

and will be, well into 2014 delivering and developing projects where they get clarification of the contracts that are going to be on offer. “They also have businessbuilding capability workshops that allow businesses to touch base, form networks for cluster groups, and they have further projects to assist them and partially fund businesses to achieve accreditation.” Other sources of information on the legislative requirements for businesses can be found at Workplace Health and Safety Queensland. “Workplace Health and

OHS72 owner/director Nicola Kelbie (right) with Gladstone Engineering Alliance general manager Carli Hobbs. Photo: Katrina Elliott.

Safety Queensland has a lot of resources as well as full packages that small businesses can access. On top of this they have phonebased support and a lot of the

government initiatives have small business workshops, mentoring programs, and funds available to improve documentation,” Ms Kelbie said.

Major changes in industry highlighted Business leaders in the construction and infrastructure sectors have been warned to prepare for significant changes over the next five years as new materials and methodologies emerge, particularly in concrete and steel. Construction Skills Queensland chief executive officer Brett Schimming told a major projects summit recently that employers must ask themselves the question: “What do I need? What do I have?” in terms of their workforce. “Employers must train staff to provide the skills to improve productivity. You must have the right person for the job.” Mr Schimming pointed to Queensland’s massive coal seam gas to liquefied natural gas projects as a prime example of the emergence of new materials and methodologies. “I’m talking about jobs that don’t exist (in Australia) at the moment but in five years they will,” he said. He cited Building Information Modelling (BIM) as the next big thing. BIM refers to a way of managing building data sets – from the design phase through to construction and building management.

“It is through embedding a range of metadata (such as materials cost, construction times, management/replacement information) that BIM becomes useful across the entire spectrum of construction – from designing a building to scheduling construction in the build phase, generating building estimates and managing a building once construction has been finished,” Mr Schimming said. The theme of Mr Schimming’s address at the Whitsundays Major Projects Summit was: “Changing Gears – The Transition from Big Boom to New Normal”. “Since the GFC and a resources (sector) cooling off we are seeing a shift to the new normal,” he said. “It (the market) is soft in civil engineering – the workforce has shifted to the heavy industry space.” Construction Skills Queensland had forged a strong partnership with industry; building connections via field operations and local forums to keep CSQ aligned to the needs of regions, Mr Schimming said.


INDUSTRY PROFILES

The Mining Advocate | January 2014

19

Cooking keeps Candice’s crew happy Candice Vella Operator with HSE Mining at Peak Downs

As a child Candice Vella never imagined herself as a miner, but the self-described girlie-girl with a passion for sweet treats now works as an operator with HSE Mining at Peak Downs, near Moranbah. Ms Vella decided to drop out of a social work degree at university two years ago to pursue a new opportunity in the mining industry.

“I was at university studying social work and working part time. I wasn’t really enjoying what I was doing so I decided to try something new,” she said. “When I was younger I wanted to be a fairy. “It’s not really a profession, though, so I had no idea what I wanted to do. “If you had told me that I was going to be a miner

when I was at school I would have said no way in hell. “I had no plans to be here, but here I am, and I love it.” The Mackay resident has been in her current position for about six months and says her crew all get along well, but when she entered the industry she had her doubts. “When I first started I had a lot of fears about being

a girl and being out there. At first I sort of tried to fly under the radar. I didn’t want to be labelled as a girlie-girl,” she said. “My first day working in mining I was absolutely petrified but I had a really good trainer and most of the guys were really good. “I haven’t encountered any chauvinistic behaviour. “It’s really like going to work with a whole heap of dads and older brothers I suppose.” Ms Vella’s mum also works as a truck driver at the mine, and is currently on the same roster and in the same crew. Both have a passion for baking and often join forces to create delicious desserts which Ms Vella says keeps the mining blokes on side. “We (Candice and her mum) usually bake the day before we go back to work

so that it’s nice and fresh,” she said. “I think it makes a better atmosphere for the crew. We do things for the guys’ birthdays and it makes everybody happy. Our crew gets on really well and, for us, baking and sharing just creates a better culture out there.” Ms Vella aims to become

a multi-skilled worker in the future. “I would like to stay with the company I’m with now and I would like the opportunity to train on other equipment,” she said. “Maybe in five years’ time I’d like to be able to operate the grader, the dozer and maybe even the digger.”

Ms Vella with the results of her baking.

Dylan’s lifestyle choice the wheel deal Dylan Viviers Trainee quarry supervisor with Holcim Bohle

Cycling the equivalent distance of Townsville to Cairns each week is one of the ways trainee quarry supervisor Dylan Viviers makes sure he does not take life for granted.

Throughout the working week, Mr Viviers can be found at the Holcim Bohle quarry, but most of his hours off-site are spent on his bike - racking up more than 350km of ride time

each week. “I ride usually Monday, Wednesday, Friday mornings and my 12-year-old son is getting into riding - so we do that a couple of afternoons a week,” he said.

“We ride Saturday and Sunday, swim two mornings a week and run two afternoons a week. So fitness is a big part of my life and it always has been.” Mr Viviers said he had been involved in a car accident when he was about 16. “I was on a bit of a bad path at the time,” he said. “I was left in hospital for a few weeks and I think it’s one of the events that changed who I am. “I stopped taking life for granted. It made me realise life can be over just like that, so now I enjoy every day.”

Mr Viviers credits his career in quarrying for his healthy, family-friendly lifestyle. “Working in a quarry means you don’t have to travel away from your family, which is really important to me,” he said. “I have more time to spend with my family and to ride. I also think that it’s a personal industry and we all get to know one another and it means you’re not just a number.” Mr Viviers said the best thing about working in the quarrying industry was the people - even if he did cop a bit of flack from his team.

“I’m short, I’m only 1m 53cm - so I cop a bit about that. I get asked if I need a ladder to get in my car and that type of thing. But it’s all in fun,” he said. “I also cop a bit about wearing the lycra for cycling. Paul Sutton (Institute of Quarrying Australia general manager) has kindly given me the label of MAMIL (Middle Aged Man in Lycra). “I really enjoy working with the people, it’s the best thing about the job. “So I’m learning all that I can and hopefully I would like to become a quarry manager one day.”

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Wet season service enhanced by local knowledge RPS has your business covered in the wet season. The business has more than 160 staff in nine locations across North Queensland, giving it immediate on-the-ground assessment and response capabilities. As a practical and commercial problem-solver, RPS provides innovative solutions to the mining industry for water management, cultural heritage, environmental management, planning, project management and surveying services. The cyclone season brings different fortunes to different regions. Townsville is protected but subject to tidal surges, Mackay is flat and much of the Cassowary Coast is exposed. Airlie Beach manager Scott Reid said that after an event, RPS survey teams could quickly mobilise professional skills and local knowledge where they operated. “They have first-hand knowledge of the regions at risk of flooding,�

Mr Reid said. “This is backed up by technical expertise in water management that can be drawn on from across the country. “The most important single issue following a cyclone is communication, ensuring efficient recovery and repair to mine infrastructure. RPS has made a priority to establish relationships with local, state and federal authorities and other relevant community and stakeholder groups and industry bodies. “So our professional staff are involved right through the recovery process.� Quick mobilisation and understanding of local conditions are key factors in delivery of successful pre -wet season environmental management services. Mr Reid said management plans that minimised stormwater impacts were essential on a mine site. “Issues created by monsoonal weather, such as erosion and

stormwater runoff require effective solutions to minimise monitoring and maintenance costs,� he said. Aerial photography, LiDAR data and survey coupled with risk analysis of stormwater impacts, meant the RPS environment teams were well prepared prior to site visits, Mr Reid said. The resulting appreciation of issues including flood zones and potential erosion risks ensured successful outcomes were delivered. Recent RPS work for mining clients includes:

*A site investigation of a refinery’s erosion and sediment controls. Conducted site observations, reviewed existing control structures and water quality monitoring data to develop a number of short-term wet season preparedness strategies and longer-term storm water infrastructure upgrade strategies. * Addressing mine surface water management in preparation for mine closure. The reports fulfilled the Environmental Authority’s requirement to formulate an Erosion

and Sediment Control Program and improved mine landform stability, offsite water quality and rehabilitation success. * Help in the delivery of a Receiving Environmental Monitoring Program. This enabled background water quality data collection and monitoring of local surface-water aquatic ecosystems, as well as monitoring of water discharge to surface waters in local waterways.

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Fabricating the Future


22

Fabricating the Future

January 2014 |

Apprentice

Resort project a shot in the arm Steel fabrication business owners in Cairns are searching far afield for work, but a multibilliondollar project on their doorstep is seen as a possible escape from the doldrums. Proponents of the $4.2 billion Aquis Great Barrier Reef Resort at Yorkeys Knob to the north of the city have lodged an environmental impact statement (EIS) with the State Government which is now subject to a formal review. In the meantime, businesses like Dawsons Engineering are winning contracts as far afield as South Australia and the Torres Strait. Company director Sharon Dawson said the business had evolved to survive in the tough operating conditions, prefabricating equipment and then providing the transportation and

Sharon Dawson Dawsons Engineering company director

installation components as a value add. Ms Dawson said her company was involved in specialised work for the massive coal seam gas to liquefied natural gas projects in the construction phase in the Surat Basin and on Curtis Island

off Gladstone. Dawsons Engineering specialises in tank work and offers transport and installation services as part of the package. The group has a “fluid” workforce of specialist tradesmen who are called into action as work is won. “We are getting by but it is quiet in Cairns,” Ms Dawson said. Ms Dawson was following the progress of the Aquis project with great interest, as were many other businesses in Cairns which could pick up work if it moves forward. Aquis project chief executive officer Justin Fung said the submission of the EIS was a significant milestone. Subject to the approval of the EIS and the granting of an appropriate casino licence, the project proponents expect to commence construction this year with an official opening in 2018.

Wulguru Group employees Barry Weir (26 years’ service), Jeff Dellit (16 years) and Kevin Cox (32 years).

Wulguru Steel - experienced people with the right skill sets A Townsville-based business specialising in steel fabrication and supplying equipment and services to the mining and mineral processing sectors continues to prosper in the market as many competitors have been forced to downsize as commodity prices contract. The Wulguru Group boasts 150 employees and company director Wayne Landrigan reckons he knows why

the business continues to do well. “It’s our people - we don’t have much turnover, within the last few years having several employees reaching milestones of 15, 20 as well as 30 years with us,” he said. “We have experienced people with the right skill sets who are known by our clients through repeat business, that’s where we shine.”

Wulguru Group staff are skilled in a variety of engineering applications including steel, plate work, tanks and pressure pipe work. Clients include the BHP Billiton Cannington Mine in the North West, Phosphate Hill, Queensland Nickel, Glencore and the Port of Townsville.

the changing market conditions, but one common thread has run through the business since its inception – acquiring the very best staff with a shared view of excellence and a capacity to present engineering solutions across a range of engineering, welding and fabrication applications.

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For more details visit: www.wulgurusteel. com

The Mining Advocate

boilermaker Travis McElligott.

Mount Isa might on show Three young Mount Isa men have given their trade careers a real boost by participating in the WorldSkills Australia competition in Sydney. Daniel Salucci, Darien Harm and Travis McElligott all first entered the North Queensland division of the national competition, which showcases the talent and versatility of young people working in a number of trades. Apprentice boilermakers Travis and Darien won the steel fabrication and welding categories respectively against other apprentices from Cairns and Townsville. Apprentice electrician Daniel won the electrical installation category. They travelled to Brisbane with Mount Isa TAFE instructor Len Farren, a boilermaker by trade, and joined the rest of the Queensland team. It was then off to Sydney for the 60-strong team, who were given complex

tasks to complete over three intense days of competition. Mr Salucci claimed the silver medal against all comers while Mr McElligott finished fourth in the steel fabrication section, where he was required to fabricate a section of the famous Sydney Harbour Bridge. Mr Harm was unplaced but will have another crack at the competition this year in Perth if he wins the regional qualification section, according to Mr Farren. A former Xstrata employee, Mr Harm now works at Start Construction and Hire with Mr McElligott - who runs the fabrication division of the company owned by his parents, Shane and Theresa. Mr Salucci is employed with Dave Clancy Electrical.


Fabricating the Future

The Mining Advocate | January 2014

23

Costs place locals on back foot Gladstone-based fabrication and general engineering company owners are seeing their livelihoods steadily eroded from within and without, according to a peak industry body. Gladstone Engineering Alliance (GEA) general manager Carli Hobbs pointed to the 80plus modules built overseas destined for the construction of Curtis Island LNG plants as an example of how the wage spiral has made it impossible for local businesses to compete. “It’s clearly cheaper to build those modules overseas (and get local labour to put them together),” she said. And to compound the problem, Ms Hobbs said fabrication and engineering companies in the southeast corner of Queensland were undercutting local businesses on tender contracts. “It’s simple, boilermakers are being paid $25 an hour in Brisbane but those living and working

in a regional centre like Gladstone are earning $40 per hour,” she said. “The GEA would also like to see a better definition of local content requirements.” Ms Hobbs said she was seeing more and more manufacturing going overseas and it was up to local businesses to be more innovative and adaptive to retain market share. But she said Australian wages were simply too costly and contractors were mindful of costs. Australian Manufacturing Workers Union Queensland secretary Rohan Webb disputed Ms Hobbs’ view on local wages. “The fact is that companies are off-shoring to take advantage of wages in developing countries from some of the most vulnerable people around the globe,” he said. “Australian workers in engineering and fabrication workshops earn modest wages in comparison to the national average - that’s why we fight for them

ISO rating set to ignite business for engineering company Nationally recognised certification for quality assurance, safety and environment procedures has completed Townsville company Rocket Fab Engineering’s offer as a top-shelf supplier. Rocket Fab had already developed an enviable reputation by winning preferred status with clients including international agricultural and mining companies operating in Queensland. The business is led by two families who lay claim to the north’s engineering heritage. The sugar and processing industries are the cradle of engineering expertise in the north and Rocket Fab directors Jason Rowe and Andrew McLennan (BM) can claim that background at Queensland Nickel in Townsville and Giru’s Invicta Sugar Mill respectively. The experience laid a good foundation for their business said fitter and turner/boiler maker Jason and Andrew, who’s also a boilermaker.

“During the crushing season there is an urgency in meeting challenges that arise in every manufacturing process,” Andrew said. “The intensity rises with any backlog and the volumes simply need to be handled. Breakdowns and maintenance need to be addressed quickly and accurately. It can be a pressure cooker atmosphere and it teaches you an appreciation of the needs of industry, how to set priorities and how to manage resources and staff. “This is a culture we promote among our core staff. We hold the same expectations and standards for the tradesmen that make up our labour hire offer”. The company has longterm clients, many of them international, and Jason puts that down to attention to detail when quoting, consultation in design and communication in executing the work. “Good relationships are built on commitment, honesty and communication,” Jason said. “We are well aware of the need

A prefabricated module arrives for Curtis Island LNG construction work.

to get a better deal. We cannot and should not compete on labour costs. It’s about the quality and standard of work.” Mr Webb argued that

imported modules did not have to meet Australian standards and said the AMWU had seen too many examples of faulty work being imported.

“We have seen rework of these imported (Curtis Island) modules as high as 65 per cent,” he said. However Bechtel Gladstone general manager

Kevin Berg said rework had been negligible and that the modular units for the Curtis Island projects - built in yards managed by Bechtel in Thailand, the Philippines and Indonesia met Australian standards in every way required. “Modularisation of LNG plants is now the norm,” he said. “Just as prefabricated trusses from a factory form the framework of modern roofs today, it is more efficient and safer to build these structures in a factory ‘assembly-line’ production environment than to ‘stick build’ on site.” A range of other steel components used in construction of the LNG plants were fabricated in Australia, Mr Berg said. Ms Hobbs and Mr Webb believed governments needed to play a more proactive role in empowering business owners and employees to adapt more quickly and efficiently to emerging methodologies and products already in use overseas.

Townsville company Rocket Fab Engineering’s offer as a top-shelf supplier to assess, address and egress as quickly as possible. As the business leaders, we made ourselves aware of both the technical demands on each site and the specifications we need to meet. So we’re well briefed and tooled up. Of course the longer contracts mean we are very familiar with these standards. “This doesn’t mean much if you don’t have good office process and procedures. Despite our relationships, we respect the needs of our clients to have their suppliers comply with recognised standards including but not limited to safety, environment and quality assurance. We’ve undertaken ISO 9001, 1801, 4801 and 14001 qualifications as a step in the next phase of our growth.” The company is based in the Townsville suburb of Stuart where it can be found at 54 Southwood Road. Ring Alicia (07) 4778-2525. The company directors guarantee a quick turnaround to all inquiries.

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24

Fabricating the Future

January 2014 |

The Mining Advocate

Solid project base in Capricorn A number of major projects coming online in the Capricorn area centred around Rockhampton look likely to ease the pressure on the steel fabrication industry during 2014. Capricorn Enterprise economic development manager Neil Lethlean said Rockhampton’s diversified industry, agriculture, beef and services base had allowed something of a “soft landing” for businesses in the city. Mr Lethlean said the satellite centre of Gracemere was the focal point for extensive housing

and infrastructure development, with CQ Properties building homes and Melbourne-based Gibb Group starting work on stage one of a $25 million transportation hub on a 40ha site. The project includes covered warehousing and a put-down area capable of handling 40 B-double semi-trailers. Mr Lethlean said work started before Christmas and should be completed with six months. He said the 1300ha Gracemere Industrial Area was being populated by transport and logistics companies, and he

was confident mining companies would also look at using the estate as projects in the Bowen and Galilee basins came online in the years ahead. A $600 million development on Great Keppel Island to be completed over 10 years will also gladden workers in the steel fabrication industry. Mr Lethlean said the Japanese Iwasaki group was looking at a 150ha tourist development at Yeppoon and was in talks with the State Government to secure a project of state significance listing which would help to fast-

track the development. Rockhampton is an inland centre with no port access, a point Mr Lethlean conceded was a disadvantage, but he added that the central location of the city offset that shortcoming. He is a strong advocate of the State Government’s Moving Freight Strategy, which places its first priority on boosting rail infrastructure to ease congestion on the road network. Mr Lethlean hailed the duplication of the Blackwater rail line spur as a significant economic driver for the region

with a potential to quadruple rail movements. Capricorn Enterprise released a Major Project Status Report last year which revealed that $159 billion worth of projects continue to be under way or planned over the next decade. The body’s chief executive officer, Mary Carroll, said the figure represented nearly a 10 per cent hike in the value of major projects under way and planned for the area since April 2011. The report categories include coal, minerals, energy, rail, road and development.

Mining MOU to aid supplier sustainability A group representing the METS (mining equipment, technology and service) sector has signed an MOU with the Minerals Council of Australia in a move to boost innovation and communication. The MOU outlines the basis upon which Austmine and the MCA will collaborate to leverage greater efficiencies and effectiveness in industry representation, policy advocacy plus technological and innovative progress in mining. It was signed by Austmine chair Alan Broome and the senior vice chair of MCA and managing director Australia of Rio Tinto David Peever. “The MOU formalises the relationship between the Australian METS sector and Australia’s largest mining

companies,” Mr Broome said. “The formal alliance has been under development for several years, but the impetus for signing the MOU now is driven by the realisation that the mining industry today and in the future will be more heavily reliant on innovation and technologies to keep Australia at the lowest end of the cost curve.” Mr Broome said he hoped the MOU would increase the awareness and exchange between individual mining companies and METS suppliers. The cornerstone of the MOU is the establishment of an Innovation and Technology Committee and various activities aimed at fostering close communication between

Austmine hopes to enhance supplier links with the mining industry.

Photo: Damien Carty

the METS suppliers and mining companies. Austmine estimates that the METS industry in

Australia is worth $90 billion. “This MOU reinforces the strong linkages between METS

and mining and works towards the sustainability of the industry as a whole,” Mr Broome said.

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Australian Steel Fabricators feature

The Mining Advocate | January 2014

25

Men of steel combine abilities Five North Queensland companies have joined forces to form Australian Steel Fabricators, an alliance aimed at competing for business on a global scale and keeping jobs in Australia. Company director Marcel McLeod said Australian Steel Fabricators was formed on the

need for industry to step up and bring work opportunities back to Australia and to boost regional growth. “The main aim of the group is to be able to tender on the larger infrastructure and mining projects that we’re not currently capable of tendering on in our own right,” he

said. “There’s Abbot Point - that’s obviously of interest, but also the mines in and around the Bowen Basin awaiting approval. There’s also some other projects that are on the waiting list to start. “We have projects happening on our doorstep but we’re not getting the opportunities as we’re

being seen as not having the capacity in our region. That may be true in terms of individual companies but we were able to bring it all together as a larger entity by working together and having one port of call for the projects. “This has a flow-on effect in terms of risk, accessibility, knowledge of the area and environment - so it has a lot of benefits for the projects.” The five companies involved are Totalfab Engineering Services (Townsville), Cairns Steel Fabricators (Cairns), Thomas Steel Fabrication (Townsville), Industrial Laser Cutting (Townsville) and Australian Professional Galvanizing (based in Townsville with branches in Cairns and Mackay). Mr McLeod said it was important to ensure that everyone involved had the same vision and could work well in the team. “A bit of work went into who do we select. We have to have the ability to work together. When you’ve been in the industry for a

while, people get to know who you are, so that’s how it worked,” he said. “We’re all competitors individually - we can still do that, but at a higher level we’re not competing, we’re opening opportunities. “They’re opportunities not just for us, but for other companies and contractors that will work under us.” Mr McLeod said that Australian Steel Fabricators would take a different approach to organisations such as the Townsville Regional Engineering Cluster (TREC) and Cairns Regional Engineering Network (CREN). “TREC was more of a membership base, it was open for anyone to join the group,” he said. “It was a model that at the time they thought was the way to go, but obviously the model wasn’t right. We’ve (Australian Steel Fabricators) formed a company and we will be the ones who go out there and find the work and tender on the work.”

On the front foot to score tenders

Founding directors Sean Adams (Cairns Steel Fabricators), John Lane (Thomas Steel Fabrication), Trevor Raiteri (Australian Professional Galvanizing) and Marcel McLeod (Totalfab Engineering Services) with independent chairman Peter Van Iersel.

New group promises spin-offs for others

The Australian Professional Galvanizing Townsville plant is among the ASF operations.

The formation of joint venture company Australian Steel Fabricators in North Queensland has the potential to benefit many businesses in the region linked to the steel industry, according to director Trevor Raiteri of Australian Professional Galvanizing, one of the five foundation companies that make up the alliance. Mr Raiteri said the forging of close associations with other steel industry businesses was a key plank in the ongoing viability of the ASF operation. “We are looking for associates - we can’t handle everything ourselves,” he said. Mr Raiteri has put his hand up to deal with quality assurance issues for the new JV and has a long-term vision of setting up training and safety programs that will be consistent in all five joint venture businesses. In the longer term these would flow to associates as well. “When we tender for big contracts it will be a big advantage to have all businesses involved using the same quality assurance (programs),” he said. Mr Raiteri said it was important for steel businesses in the north to realise that ASF was looking to form partnerships, contrary to the impressions of some operators who believed they could be forced out of business.

Photo: Allison Bessell

The man tasked with making Australian Steel Fabricators (ASF) a profitable reality, Peter Van Iersel, said he was privileged and excited about the challenge awaiting him. “My first priority will be to go to Brisbane and meet representatives of big companies and get ASF on their tender lists,” he said. “I’m also planning a board

meeting in Brisbane, probably in April, where I hope to be able to set up meetings.” Mr Van Iersel said the feedback he had received already from organisations like the Queensland Resources Council had given him encouragement. “The feedback already is that they (construction and mining companies) want to give us a go,” he said. “I believe we are a value proposition with local availability of labour and a wide range of skills right across the steel industry.” But Mr Van Iersel realises a challenge awaits him, saying “it’s tougher than ever out there”. He lives in Mackay and has witnessed the highs and lows experienced by businesses in the regional centre. In his former role with Enterprise Connect he had often received feedback from large construction and mining companies that they would welcome Australian businesses winning tenders for larger projects, he said. “That sentiment remains from my early discussions, but it’s down to us to be able to come up with competitive tenders,” Mr Van Iersel said. ASF board member Marcel McLeod said the alliance company would operate as a separate entity to the five member businesses. “ASF will act as a project management company leveraging the capacities of the businesses involved in the joint venture,” he said.


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Australian Steel Fabricators feature

The Mining Advocate | January 2014

Collaboration

Stepping stones to alliance The collaborative alliance formed between five North Queensland steel companies to tender for large-scale projects previously beyond their individual reach is being held up as an example of what can be achieved by a shared vision and hard work. Enterprise Connect, a federally funded body with a brief to foster such business alliances, first met with senior representatives of the five businesses – Thomas Steel Fabrication, Totalfab Engineering Services, Industrial Laser Cutting, Cairns Steel Fabricators and Australian Professional Galvanizing – in February 2013. Facilitated by Peter McLean, an expert in the development of strategic alliances, representatives from the five businesses were armed with the tools to advance the concept. “The outcome of this workshop was positive, with all participants deciding to commit to forming an alliance,” Totalfab managing director Marcel McLeod said. A few months later representatives met in Townsville and over two days formulated a strategy and structure for the alliance. “At that meeting we discussed things like value propositions, challenges, opportunities,

concerns, options and what needed to happen for the alliance to form,” Mr McLeod said. Mr McLeod said third party involvement from groups like Enterprise Connect had been vital to the formation of Australian Steel Fabricators. He also paid tribute to the encouragement and support of Dennis O’Neil, who is the Federal Government’s national steel supplier advocate. “Dennis had done a review on issues facing the Australian steel industry and submitted a report to the Australian Government in 2011 covering a number of issues and made recommendations,” Mr McLeod said. Mr O’Neil first met with Cairns Steel Fabricators general manager Sean Adams in 2012 and sowed the seed to think outside the square. Mr Adams had toured China and Thailand and witnessed first hand how fabrication projects were undertaken in those countries. “It made me realise that you can’t just sit around and wait (for something to happen) you have to be proactive,” Mr Adams said. He said Mr O’Neil had already prepared a document to set up a joint venture, which was a great

27

is hoped to give the five ASF firms a competitive edge. Photo: Allison Bessell

help in the formation of ASF. The North Queensland alliance is the first to be up and running under Mr O’Neil’s model. “The formation of Australian Steel Fabricators using the incorporated joint venture model is great news for Australian industry,” Mr O’Neil said. “This model was initiated from my work

as the Federal Government’s steel supplier advocate.” The five new board directors of Australian Steel Fabricators – Mr McLeod, Mr Adams, John Lane (Thomas Steel Fabrication), Trevor Raiteri (Australian Professional Galvanizing) and Brad Drury (Industrial Laser Cutting) - have already met for the first time and

appointed a former Enterprise Connect member, Peter Van Iersel from Mackay, as non-executive chairman. Mr Van Iersel has wide experience in a range of business undertakings and is the current chair of the Mackay Area Industry Network (MAIN). He will work from Mackay.

ASF approach leads the way

Work at Mulgrave Mill undertaken by ASF member Cairns Steel Fabricators.

The joint venture between five North Queensland businesses to create Australian Steel Fabricators has sparked much interest from other industry players. The alliance is the culmination of extensive preparatory work behind the scenes by the Federally-funded Australian Institute of Commercialisation, Enterprise Connect and the Industry Capability Network. Australian Institute of Commercialisation lead consultant Denise Raybould praised the efforts of the five directors of ASF who took the joint venture from a concept to reality in nine months. Ms Raybould addressed an industry gathering in Mackay just before Christmas and sensed a real change of philosophy among the guests. “Setting up JVs (joint ventures) has been driven by governments in the past and businesspeople have been fearful of collaboration with competitors,” she said. “But industry in general is now more ready (for change) and can see the benefits in innovation and collaboration.” Marcel McLeod, one of the five ASF directors, also addressed the Mackay industry gathering and Ms Raybould was struck by the number of inquiries he fielded during the question and answer session at the end of his address.

“That was just another example of how businesspeople see JVs, they realise that to survive in the changing workplace they need to form alliances,” Ms Raybould said. “Small to medium enterprises need to combine to be in the running to win bigger tenders in the construction and mining sectors.” Ms Raybould said the AIC, ICN and Enterprise Connect - which have been working together to change the mindset of business owners - each had their respective areas of expertise. The ICN tends to specialise in supply chain issues, the AIC in the philosophy of embracing the benefits of innovation and collaboration and Enterprise Connect facilitates the formation of JVs through workshops. “It’s clear (to me) that industry is now driving this change and I took the advantage to underscore what can be achieved by highlighting how quickly a JV can be set up using ASF as an example (when speaking in Mackay),” Ms Raybould said. “ASF haven’t won a tender yet but they have put themselves in a good position to do so in the new year.”



NSS in focus

The Mining Advocate | January 2014

29

All the right moves for clients The rapidly evolving maritime cargo handling business has changed dramatically over the past 40 years with the rise of computerisation and containerisation on a global scale. Northern Stevedoring Services (NSS) has been in business in Queensland for 42 years and has grown and evolved with the demands of the 21st Century, forming strategic partnerships and broadening its skill set and equipment. NSS offers export and import points right up Queensland’s eastern seaboard through Gladstone, Mackay, Townsville and Cairns and also from Weipa on the west coast of Cape York. The commodities boom in areas like the Surat Basin and the Bowen Basin has seen the business increasing its role in those regions and elsewhere.

The company believes the key to its ongoing success involves offering clients a service that moves commodities from source to port and onward to markets across the world by sea. The partnership with copper concentrate producer Inova (formerly Ivanhoe Australia) illustrates the NSS philosophy of providing a one-stop service. Inova was in need of a reliable supply chain for its Osborne mine operation in the North West Mineral Province, which faced challenges in getting its product to market because of a cluttered rail service dominated by bigger players in the region. NSS came up with a costeffective solution - utilising its class-leading Rotabox technology, which minimised handling costs but offered the flexibility of road transport. Concentrate is loaded

Ross Grenside NSS commercial manager

directly into Rotabox containers and transported by road to the Port of Townsville, where it can be loaded directly on to ships or stored at the NSS storage facility. Inova general manager

operations Neal Valk said his company had to operate as cost effectively as possible. “We saw NSS as a one-stop shop for concentrate movements as they could integrate all three services (containers, road haulage and shipping) from end to end using their connections to take delivery of our concentrate from the mine until it was put in the hold of the ship,” he said. “Inova was looking for a service provider with a strong reputation, which made NSS an obvious choice as they are clearly in the top three stevedores in Australia.” NSS has its own berth at Townsville Port, another significant factor in securing the Inova contract and being able to offer customers continuity of cargo movement. Since the partnership with Inova began in February 2012,

tonnages doubled to 100,000 tonnes in the first year. Mr Valk said NSS was committed to investing in additional equipment to service Inova’s growing needs, another key factor that won it the contract. NSS commercial manager Ross Grenside said the company continued to commit to development of its bulk loading capability, with an 8500sq m pressurised bulk shed due for completion by April. “The logistics solution provided to Inova typifies the service at which NSS excels,” he said. “NSS currently has a number of strategic partnerships in place including transporting, storage, packing and stevedoring of Sun Metals refined zinc products and warehousing, container packing and stevedoring of Evolution Mining gold/silver ore in bulk bags.”

NSS has technological edge ‘in the box’ Regional Queensland’s largest integrated supply chain management provider, Northern Stevedoring Services, has strengthened its commitment to innovation by adopting a new form of bulk material handling technology. NSS recently introduced the Rotabox into its operations. The award-winning lightweight container rotator technology is ideally suited to loading bulk products using geared vessels, boasting productivity in excess of

300 tonnes per hour per hook. “The Rotabox technology is a stand-out in terms of performance, sustainability and efficiency,” NSS general manager Chris Ullett said. “Not only does the Rotabox reduce costs of transporting ocean-going cargo, it also has positive environmental impacts. “The vessel loading solution is pioneering in design eliminating fugitive dust and product spillages while also minimising clean-up costs.” The Rotabox bulk loading

Loading half containers.

system carries cargo in sealed containers from the mine site through to the vessel hold. The lid of the specially designed containers is only lifted once, when they are lowered into the vessel’s hold. The Rotabox was awarded a prize for the best dust control technology, application or practice at the 2011 Australian Bulk Handling Awards. It is capable of lifting a 31-tonne payload and works by loading small to medium-sized parcels into bulk or general cargo vessels via a tipping frame that rotates the container and discharges bulk material into a ship’s hold. Part of the technology also involves the use of a purposebuilt half-height container to optimise material flow, while the light-weight container rotating frame can be used with either ship or shore-based cranes. NSS commercial manager Ross Grenside said Rotabox technology was developed to meet the requirements of small and mid-level mining companies seeking a lowcost and environmentally

sustainable solution for mineral concentrates and ores. “Benefits to these companies include a decrease in product losses throughout the export supply chain, environmental

friendliness, lower operating costs and removing the necessity for the development of expensive material handling and loading infrastructure at the mine site and the port,” he said.

Tipping the full Rotabox into the ship’s hull.

Storage options are available at the NSS port facility in Townsville. Trucking containers to the Port of Townsville


LOGISTICS & MATERIALS HANDLING

Photo: Damien Carty

Heat on freight strategy rail priorities The Queensland Government’s Moving Freight Strategy has won support from industry organisations, but its implementation is set to spark divisions over priority. Transport and Main Roads Minister Scott Emerson said freight volumes in Queensland were expected to increase from 871 million tonnes (2010-2011) to about 1700 million tonnes by 2026. The Moving Freight Strategy identifies 38 actions to meet demand over the next 10 years and has a focus on shifting more freight on to rail. A rail loop to the Port of Brisbane to ease road congestion

and enhance throughput has been listed as a high priority. Action on this project is to be among the first undertaken, while the Mount Isa Rail Corridor is listed to be three to five years away. Mount Isa MP and Katter’s Australia Party representative, Robbie Katter, is not happy with that low priority. “Plans for critical improvements on the Mount Isa to Townsville rail line must be accelerated if the Government is serious about servicing the resource-rich North West Minerals Province,” Mr Katter said. A North Queensland

Resources Supply Chain Steering Committee has been formed to support the development of the corridor, with goals including optimising the capacity and performance of the rail system for freight. It is due to report to State Parliament by mid-2014. The Moving Freight Strategy sees rail playing a key role in supporting the agricultural sector, particularly in the areas of livestock and grain movements. Existing government transport service contracts provide certainty until 2015 for livestock and general freight services. With a stated aim to double the value of food production by

2040, the Government faces a juggling act to reach that goal while retaining capacity for the growing mining sector. High volumes of coal exports have already seen a contracting of rail capacity, which is often perceived as being at the expense of the agricultural commodities and general freight requirements. Australian Logistics Council managing director Michael Kilgariff said the challenge before all governments was to follow through on the high-level recommendations contained in their strategies and deliver the infrastructure and regulatory reforms necessary to improve freight efficiency.

“The ALC submission on the draft Moving Freight Strategy pointed to the economic and social benefits of getting more freight on to rail, particularly from port to intermodal terminals to improve freight efficiency, improve urban amenity to reduce road congestion and to decrease queuing time at ports,” he said. But Mr Kilgariff offered some cautionary advice when he added “the commitment, however, needs to be backed with the provision of funds for dedicated rail freight infrastructure, with rail lines servicing the Port of Brisbane as the first priority.”


Logistics and Materials Handling

The Mining Advocate | January 2014

31

Lines of communication open A promised federal focus on northern Australia is presenting a great opportunity to get the logistics environment right for future growth, according to Tracey Lines. The Townsville-based consultant, who has worked in logistics for more than six years, is excited to be involved in key Infrastructure Australia programs such as the National Ports Strategy as the spotlight hits northern economic development. “The advantage northern Australia has is we are so uncongested and unconstrained in comparison to the south,” Ms Lines said. “We have the opportunity to do it much better if we take a long-term view now, looking at what the big-picture vision for northern Australia is and building our infrastructure and

investment base around that.” This was a critical time to get logistics planning right and take care of issues such as corridor and shipping channel protection, governance and infrastructure investment, she said. “If we can build efficiencies in logistics while doing planning for northern Australia, it’s going to make our future that much stronger,” Ms Lines said. Ms Lines is the director of her own company, Tracey Lines Consulting, which offers a range of economic, logistics and commercial advisory services to the private sector in addition to her work with Infrastructure Australia. The former Port of Townsville Limited client services and trade manager was instrumental in the development of the MITEZ 50-year freight infrastructure plan, work which was recognised

when she was named National Ports Leader of the Year in 2012. Recent projects have included providing supply chain and logistics advice to CuDeco, which is preparing to export copper and cobalt concentrates from its Rocklands project in north-west Queensland. Away from the office Ms Lines says she enjoys lapping up the northern way of life at the beach, lazing in the pool and spending time with her sons Jaxon and Braithe. “I have a great work-life balance at the moment. I do travel a lot but other than that I have a home office. Because it’s my own business I can work it around my life commitment my children,” she said. “I love going to the gym, going to the beach and hanging with my girlfriends, sitting in my pool, basically the North

Logistics consultant Tracey Lines with sons Jaxon and Braithe enjoying the northern way of life. Photo: Andrew Rankin

Queensland lifestyle. My boys are so supportive and I think they’re very proud of me and they tell me quite often. “For the next five or six years it will be about growing the

business and personally we (Ms Lines and her two sons) have big plans for travel. I just want to keep doing what I’m doing and really progress the northern Australia work.”

Winning ways with in-pit crushing and conveying A Brisbane engineer with a focus on in-pit crushing and conveying systems has won the prestigious A.W. Roberts Award, presented by the Australian Society for Bulk Solids Handling for 2013. Sinclair Knight Merz (SKM) electrical engineer Jacob Power, 28, claimed the award which recognises the achievements and notable contribution of a young person in bulk materials handling in the areas of research, design and/or practice. Mr Power was recognised for his particular expertise in the design of materials handling projects and in-pit crushing and conveying systems (IPCC) for major projects undertaken by SKM at the Clermont coal mine in Queensland and Ferro Carajas S11D iron ore project in Brazil. Mr Power said he enjoyed the challenges IPCC systems presented, with the need for innovative design. They required maximum flexibility in the electrical and control system infrastructure to

Long-time bulk solids handling expert Emeritus Professor Alan Roberts with Jacob Power.

support the continual development and relocation of the mining face, he said. “A key area of design and interest is the application of 3D laser scanners and centimetreaccurate global navigation satellite systems for real time machine control and collision avoidance,” Mr Power said. “Another aspect essential to creating flexibility in mining equipment relocation is the use of high-voltage cabling systems with integrated fibre optics that are extendable and able to withstand the harsh mining environment. “I believe the future of IPCC systems are truckless, 24-hour, man-less - operated and automatically controlled through the implementation of advanced control systems using 3D virtual environments.” Mr Power joined SKM in 2007 after graduating from the Queensland University of Technology and is acting as electrical asset manager as part of a Brisbane-based SKM team delivering the truckless component of Vale’s S11D project in Brazil.

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Blackwoods is delighted with results of the Ligentia road transport and distribution service innovations, further improving delivery, especially to customers in the SW QLD Energy Sector. Delivery performance and efficiency is critical to our business, as well as those of our customers, Ligentia Australia is playing an important role.

Adrian Gower, Senior Manager – Major Projects Blackwoods Northern Region (28 August 2013)


32

Logistics and Materials Handling

January 2014 |

The Mining Advocate

Defence in logistics overhaul The Australian Defence Force is embarking on its most comprehensive logistics transformation program and has turned to the private sector, including the mining industry, for input and future partnerships. Director of the Defence Logistics Transformation Program, David McGahey, spoke in Townsville recently with an overview of the project that will see the ADF rationalise 24 sites to seven primary sites, including locations in Brisbane and Townsville. Mr McGahey said more than $750 million would be spent

on purpose-built infrastructure using new technologies and systems. Key to the success of the new business service is leveraging commercial better practices adapted for Defence’s unique operating environment. Two new national performance-based logistics service contracts in warehousing and distribution and the other in land material maintenance will be a key component of the ambitious project. Mr McGahey said a new culture of “collaborative innovation” that embraced innovation and continuous

improvement in the management of the Defence logistics network was critical to a successful outcome. “We must bring commercial logistics experience, knowledge and input as it is a key driver to bring innovation into the operation of the logistics network,” he said. This would also involve a significant “up-skilling” of staff in areas like utilising bar coding, making things easier for the ADF’s commercial suppliers, Mr McGahey said. He was confident that savings of $320 million could be made over the next decade.

During one of his fact finding missions to Perth late last year, Mr McGahey visited Rio Tinto’s warehousing facility on the outskirts of the city. “They had locomotives and wagons stacked to the ceiling and I thought Defence was the only organisation that kept things on that scale,” he said. “But it was explained to me that there only had to be a small fluctuation in the price of iron ore and this equipment would be needed.” Townsville’s Lavarack Barracks is home to the Australian Army’s largest base and will play a key role in the The final stacker gantry is lifted into place at the WICET coal stockyard.

Gantry lift ends excellent year at WICET The Wiggins Island Coal Export Terminal (WICET) team ticked off a reel of project milestones in 2013, completing the year with the largest stacker gantry lifted into place at the coal stockyard. John Holland carried out the lift and installation of the 280-tonne structure, with the gantry placed on top of the stockyard trestles. It was the last of 21 gantries, which together weigh almost 5000 tonnes and span approximately 950m, to be lifted into place at the new Gladstone facility. The stacker gantries will form the backbone of the in-loading coal delivery system, linking the rail receival area to the coal stockyard via the overland conveyor. Construction of the $2.5 billion Stage One WICET project reached 70 per cent completion in December, when the 350-tonne surge bin was also installed. The 23m tall structure was moved from the on-site laydown area to its permanent location using a self-propelled modular transporter (SPMT).

“A large number of steel structures are now being installed,” WICET general manager – project delivery Malcolm McPhan said. “This is dramatically changing the look of the WICET skyline, with the coal stockyard trestles and gantries now starting to dominate the site.” The civil and earth works associated with the rail receival area, located south of Gladstone-Mt Larcom Rd, reached

practical completion in late November. Work on the coal stockyard infrastructure will continue in the new year, with the installation of the other major stockyard coal delivery components including the stacker bridges, tripper and drive system. WICET Stage One, privately funded by eight coal companies, is due to begin operations in 2015.

Infrastructure forum for NT A national forum to discuss vital remote and regional infrastructure issues is to be held in Alice Springs in May. The Remote and Regional Transport Infrastructure and Services Forum will bring together transport ministers from every Australian jurisdiction,

transport and infrastructure industry leaders and key national stakeholders. NT Transport Minister Peter Styles said the forum would present a good avenue for all jurisdictions to have input into the Australian Government’s White Paper on Developing Northern Australia.

logistics overhaul. A total of $152 million will be spent in Townsville on the works package, which began in March last year and is expected to be complete by May 2016, employing 1220 personnel directly and indirectly. Mr McGahey estimated that $94 million per annum would be contributed to the Gross Regional Product at the peak of the project. Included in the scope of works are a cargo consolidation point; internal and external foodstuffs facilities and a weapons test fire facility.

Surat Basin Rail timing uncertain An exclusive mandate issued in 2006 to develop a railway line between Wandoan and Banana has been discontinued. The Surat Basin Rail Joint Venture participants (ATEC Rail Group, Glencore Coal and Aurizon) and the Queensland Government announced the mutual decision in December. It came after Glencore confirmed it was putting its proposed $7 billion Wandoan coal project, linked to the rail development, on hold. Joint venture chief operating officer Allan Miller said due to the impact of global coal market conditions, the timeframe to develop the railway remained uncertain. At this point the exclusive mandate was no longer necessary as the SBRJV had substantially progressed development of the project, including holding various licences and approvals required to develop the railway, he said. Mr Miller said that each SBRJV participant retained a common interest in developing the rail project at a later time. Deputy Premier Jeff Seeney said that in recognition of the unique nature of the mandate, the State Government intended to make payments of up to $10,000 to eligible landholders along the proposed rail corridor.

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