March 2013

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Hard-rock heartland powers ahead THIS EDITION • Mines Minister Cripps – one year in • Breakthrough run for shale • Author digs deep into history • Gas keeps Roma on the rise

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NEWS

The Mining Advocate | March 2013

1

COVER IMAGE: Townsville Bulk Handling and Storage director Dewayne Cannon and stevedore manager Peter Craw with one of company’s “rotainers”. Photo: Darren Hilder

March 2013

FEATURES

3 Shale be right

13 Drilling and Exploration

Recent announcements have highlighted the potential of oil shale as an alternative energy source and, with 90 per cent of Australia’s known oil shale resources, Queensland is in the box-seat to tap new opportunities.

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

4 Minister on a mission 16 Between Shifts

Queensland Natural Resources and Mines Minister Andrew Cripps reflects on his first year in the job and discusses the challenges ahead.

20 Building Mining Communities

9 Question of power Electricity industry professional Tim Duignan says a quick decision is needed on major infrastructure projects to power greenfields mining expansion in the Galilee Basin.

22 Living Remotely

11 Focus on Roma

23 Big Boys’ Toys

The Mining Advocate continues its series on regional centres on the frontline of the resources industry boom with a look at this long-time gas hub in inland Queensland’s Maranoa district.

24 Safety and Rescue

26-36 The great North West

25 Building NW Queensland

Activity in the mighty Isa-Carpentaria minerals province is a major theme in this edition, released in the lead-up to the Xstrata Mount Isa Mining Expo. Our cover shot shows one of Townsville Bulk Handling and Storage’s “rotainers” - often used for transporting products from north-west Queensland mines to port.

26 Isa Carpentaria Projects Feature

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All material is copyright and cannot be reproduced in part or in full by any means without written permission of the managing editor. The views expressed in this publication are not necessarily those of the publisher.

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NEWS

The Mining Advocate | March 2013

3

Spotlight on shale Recent breakthoughs herald the potential of this energy source, writes Bruce Macdonald. Queensland is well placed to take a leading role in an emerging alternative liquid fuels industry, resources chiefs say. Mining and exploration companies, particularly Queensland Energy Resources, received a fillip from the Newman Government with the recent announcement that it would back the development of a commercial oil shale industry. Queensland Resources Council chief executive Michael Roche welcomed the green light for oil shale, saying it enhanced the realisation of Queensland’s potential as a global energy hub. “By 2015, the Federal Government estimates that Australia will be importing around $30 billion a year in liquid fuels, but companies in Queensland – notably QER and Linc Energy – are demonstrating that there are viable home-grown alternatives to conventional fuels,” he said. “Queensland’s potential to significantly expand its contribution to the country’s energy needs is only starting to be understood.” Queensland has about 90 per cent of Australia’s known oil shale resources, which are equivalent to about 22 billion barrels of oil, according to State Natural Resources and Mines Minister Andrew Cripps. “As the world supply of conventional crude oil diminishes, there are strong prospects for oil shale to become the next major source of liquid fuel supplies in Australia, and Queensland is well placed to lead the charge,” he said. Mr Cripps said the Government’s new oil shale policy set rigorous environmental controls on the industry and

would allow existing oil shale operator QER to progress its trial plant at Gladstone to commercial stage. But a moratorium on the large McFarlane oil shale deposit near Proserpine will remain in force until 2028. The credibility of shale yielding up a solution to the nation’s potential fuel shortage took a giant leap forward in January with news of a find by Queensland company Linc Energy in South Australia’s Arckaringa Basin.

Peter Bond Linc Energy general manager

Reports drawn up by consultants De Golyer and McNaughton and Gustavson Associates indicate untapped reserves around Coober Pedy from 3.5 billion to 233 billion barrels of oil. Linc general manager Peter Bond said if the higher end figures proved accurate, the find “would be several times bigger than all of the oil in Australia”. He said if further testing of

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six wells already sunk confirmed the Arckaringa Basin’s potential then it could well and truly bring Australia back to oil selfsufficiency. Linc – which has also produced synthetic fuel using underground coal gasification and gas-to-liquids technology at Chinchilla - has hired Barclays Bank to identify an investment partner to take the Arckaringa project to the next stage. Santos created history in October when it opened the country’s first commercial shale gas well in the Cooper Basin, which straddles the Queensland and South Australia border, further underscoring shale as a potential medium to offset declining conventional energy supplies. Santos vice-resident for eastern Australia James Baulderstone said the connection of the Moomba 191 shale well was a significant step forward in unlocking the vast unconventional potential of the Cooper Basin. The Australian Petroleum Production and Exploration Association (APPEA) sees potential in exploiting Australia’s massive shale resource given Geoscience Australia’s assessment that the “inferred resource is estimated to amount to about 8000 million barrels”. • NT’s hydrocarbon high - P13

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QER team leader - operations Wayne Harlen adjusts the flow rate for oxygen analysis at the Yarwun plant. Photo: Chrissy Harris

Rock-solid resource Freeing energy from shale takes different forms, with Brisbane–based Queensland Energy Resources developing technology to extract oil directly from rock via an open-pit method. A small demonstration refinery, capable of delivering 37 to 40 barrels a day, is operating at Yarwun in north Gladstone using cuttingedge American technology. After assessing 60 technology variants to extract oil from shale, the American-designed and built Paraho II system was selected and has been operating for the past 14 months. QER corporate affairs manager John Hewitt said investment so far in the oil shale project, including the acquisition of the Yarwun site in 2004, had topped $700 million. QER uses product from its nearby Stuart mining site, which has a potential to yield 1 billion barrels of oil, according to Mr Hewitt. The oil shale is mined by open-pit operations, processed at the plant, then returned to the mining site once the oil is extracted for site rehabilitation, unlike other processes which use various forms of drilling and fraccing. QER chief executive and managing director Pearce Bowman said the recent State Government decision on oil shale was a step forward and recognised the potential importance of the resource to Australia’s transport future. “We recognised the need to demonstrate to the community and the Government that we can make high-quality transport fuels from Queensland oil shale in a responsible and sustainable way,” Mr Bowman said. “Our communities and industries will need transport fuels, such as diesel and jet fuel, well into the future. Australia is having to import more and more of those fuels from across the world, while we could be making them right here in Queensland.” Mr Bowman remained unclear on just when QER would move to the next step with the demonstration plant. “This announcement simply gives QER the option to seek approval for a commercial development in the future,” he said. “We will continue with a systematic, step-by-step approach to development, and I think our track record speaks for itself.”


4

NEWS

March 2013 |

The Mining Advocate

Man on a mission for mining As Andrew Cripps marks 12 months as Queensland Natural Resources and Mines Minister, he reflects on that time and the challenges ahead. By Bruce Macdonald. Two recent announcements give a clear indication that Andrew Cripps is determined to see the resources industry in the state prosper in the years ahead. The Natural Resources and Mines Minister won no friends among environmental lobby groups or the Labor Party when he flagged in October last year the resumption of uranium mining and in February paved the way for unconventional energy resource oil shale to move to the commercial phase of its development. Mr Cripps described his two big announcements as a “step in the right direction for the future position of Queensland to attract investment in new technologies”. His mantra is that any resource project that comes online during his watch must meet world best practice in the realms of environment, safety and community engagement. However Mr Cripps believes the resources sector is being strangled by “prescriptive

practices” (red tape) and one of his major projects for 2013 is to focus on outcomes and creative processes to tackle that issue. “I’ve enjoyed the challenge, time has really flown,” Mr Cripps said of his time as Minister to date. Mr Cripps, 32, won the seat of Hinchinbrook in 2006 for the National Party and has held a string of shadow ministry posts including Resources and Water, Public Works, Economic Development and Barrier Reef Protection. Born in Tully, Mr Cripps is a country boy through and through with a degree in agricultural economics and political science with honours behind him. Mr Cripps believes growing up in the country has better equipped him to understand the needs of rural communities in resource areas. “Understanding the dynamics of regional communities is an advantage I do have,” he said.

Natural Resources and Mines Minister Andrew Cripps (back) with Xstrata Copper North Queensland chief operating officer Steve de Kruijff in Mount Isa.

“I will be implementing initiatives to try and improve the balance between the resources and agriculture sectors.” Mr Cripps pointed to the establishment of the statutory regional planning process on the Darling Downs and in central Queensland, the GasFields Commission and the state’s land access framework as

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administrative tools to ensure the resource sector runs more smoothly, efficiently and fairly. Mr Cripps said a committee had been established and would start implementing processes dealing with land access issues in the areas of arbitration and mediation in the second half of the year. He understands there are

many challenges facing the resources industry, particularly in the coal sector. “Demand for skilled employees has seen some high costs in this sector,” he said. “Companies need to have a good look at the cost side of business.” Mr Cripps said the Government was always looking at new opportunities to reduce the operating cost side of business. “We are working hard to streamline the approvals side of the business (the environmental impact statement process) to ensure costs are minimised in relation to projects getting up,” he said. Mr Cripps urged resource sector players to engage with the Government in making the approval process work more efficiently and quickly. “I’m giving the resource sector the opportunity to work with us to achieve results,” he said. But he added a word of caution. “While the Newman Government wants to encourage a strong resources sector ... we have big expectations in the areas of public safety and environmental issues,” he said.

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5

NEWS

The Mining Advocate | March 2013

Second wind for Kagara assets The Mount Garnet processing plant and other stalled projects are set for a reboot. New owners Snow Peak International Investment plan to resume mining from at least one halted Kagara operation in central North Queensland by early April. Sourcing ore from the Balcooma/Surveyor or Baal Gammon sites is one of the “gap-filler” measures planned to make use of the Mount Garnet processing plant - gained as part of a Kagara asset package - until Consolidated Tin Mines brings its Mount Garnet tin project online. Consolidated Tin Mines holds a 10 per cent stake in Snow Peak and had lobbied for the purchase of the Kagara concentrator described as being of major strategic value to the development of its nearby tin project. “What we are investigating and making decisions on is going back to mine some of the better opportunities (within the Kagara package),” Consolidated managing director Ralph De Lacey said. “We would be doing that fairly quickly – around about the end of the wet season, say April 1 or something like that – stockpiling ore at Mount Garnet and looking to get the concentrator going again mid-year.” Snow Peak and Consolidated Tin Mines have more than 35 local staff and Mr De Lacey expected workforce numbers to step up to about 100 by the time the concentrator came back online, including contract miners. He said Kagara, which is in administration, had completed a lot of underground development work at Balcooma/Survey just before the company ran out of money – so a deposit there was ready to mine

immediately. Snow Peak was also committed to completing the stage-one pit at Baal Gammon near Herberton, which had suffered a contaminated water spill in March 2012, Mr De Lacey said. This would allow the return of waste rock into the pit, before capping and closing it down. “We are also looking at some opportunities to potentially mine stage two, but this would only be underground – where there is no further environmental impact,” Mr De Lacey said Consolidated would also look to process small non-skarn tin deposits from its North Queensland tenements before its flagship skarn tin project at Gillian near Mount Garnet moves into production. Mr De Lacey said that project was on track to begin production in 2014. Consolidated Tin Mines has launched a fresh prefeasibility study for that project taking into account use of the former Kagara processing plant, which has an annual capacity of one million tonnes. This will reduce the anticipated $140-160 million start-up cost considerably. The Gillian tin project boasts a near-surface JORC resource of

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New owners are considering a number of options to make the most of the Mount Garnet processing plant.

three million tonnes at 0.78 per cent tin. Consolidated is managing the Kagara central region assets for Snow Peak, which paid $40 million for the package. It has employed ex-Kagara central regional general manager John Banning as executive general manager to implement the project development plans. Mr De Lacey said the raft of Kagara mineral projects that came with Snow Peak’s purchase of the Mount Garnet concentrator included some really good assets. The Einasleigh copper project, formerly owned by CopperStrike, for example, was a potential companymaker, he said. “The projects like Maitland, Einasleigh and even Surveyor have the potential to become another hub,” Mr De Lacey said. “I guess we need to take them one step at a time - and our priority is to get our tin project up and running - but there is potential for a second

processing plant in that Einasleigh area.” Mr De Lacey said the Kagara purchase meant Consolidated Tin Mines was now certain to become a significant mining company for the far northern region. “The market hasn’t realised the big change, I guess that’s because

people – myself in particular – have been too busy to get out there explaining it,” he said. “But it changes the whole ball game.” Kagara’s northern and southern region assets including the Thalanga processing operation and Mungana underground mine remain on the market. Cairns

Lake Mitchell

Cape Grafton

Mareeba

Dimbulah

1

Lake Tinaroo

Baal Gammon Innisfail

Mount Garnet tin project

59 21

Mount Garnet processing Tully

Lake Koombooloomba

Georgetown

46

Einasleigh copper project

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Hinchinbrook Island

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Townsville

The Mount Garnet tin project and key former Kagara assets in the region.


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REGIONAL ROUND-UP

The Mining Advocate | March 2013

7

Cairns

Townsville

BHP Billiton Mitsubishi Alliance has earmarked Cairns as source region for the FIFO (fly in-fly out) workforce required for its new Daunia and Caval Ridge coal mines in the Bowen Basin. Asset president Stephen Dumble said BMA aimed to recruit up to 250 mine employees from the region, increasing flights by four per week. About 14,000 Brisbane-based tradies have already applied for the other 750 jobs at the Moranbah district mines, and BMA expects similar interest from the far north, according to The Cairns Post. Cairns Mayor Bob Manning described the plan as “visionary”. But Construction Forestry Mining and Energy Union national mining and energy secretary Andrew Vickers said it was a “slap in the face” for central Queensland, The Daily Mercury reported. Mr Dumble said BMA’s assessment suggested there was capacity for workers to come from Brisbane and Cairns without impacting existing regional employment markets.

The State Government has released a new strategy to drive industrial development in the Townsville area. Queensland’s Co-ordinator-General recently approved the Development Opportunities Strategy for the Townsville State Development Area (TSDA) – a 4900ha precinct south of the city’s port. However the Townsville Bulletin reported warnings from business that access to land in the area - at present held by a few large private players including Xstrata - could be a stumbling block. Deputy Premier Jeff Seeney said Townsville was key to the continued growth of Queensland and a major hub for development in the state’s north. “We need to ensure we get the development mix right, and that is exactly what this strategy outlines,” he said. Townsville Chamber of Commerce president Dawson Wilkie told the Townsville Bulletin it was good to see the Government provide more structure to support the development area but he was concerned about access.

Mount Isa

Moranbah

The retirement of Mount Isa’s only heavy traffic licence examiner has left training groups with a backlog of more than 40 drivers awaiting certification, according to The North West Star. The Department of Transport told the paper it was looking for recruits to fill the assessor’s position, but couldn’t confirm when a new assessor would be likely to start. Meanwhile the city has to rely on examiners from Townsville making a trip to the North-West once a month to assess those seeking a licence. State Member for Mount Isa Rob Katter said the backlog of drivers waiting to be tested for their heavy traffic licences in Mount Isa was appalling, especially in a city that serviced several major mines. Labourer and operator Graeme Hetherington told The North West Star he had already been on a waiting list for three months to complete his training and assessment for a semi licence.

Gladstone Gladstone Regional Council has put its foot down on corporate contributions to community infrastructure. It says the environmental impact statement for Boulder Steel’s planned $4.4 billion Gladstone Steel Plant Project makes only minor commitments to such infrastructure, with the proponent reasoning that adverse effects would be offset by increased job opportunities and economic growth. Gladstone Mayor Gail Sellers said council’s experience with previous major projects would suggest otherwise. “With that in mind, council’s submission seeks $44 million from GSPP, 1 per cent of the project’s estimated $4.4 billion capital cost, towards community infrastructure works nominated by council,” she said. The council also recently called on the State Government for the immediate release of $13.5 million from the Gladstone Foundation, which receives voluntary payments from LNG proponents and major companies to meet the region’s social infrastructure needs. “The community is yet to benefit from this funding, and in liaison with the proponents involved, the consensus is that it now seems appropriate to access these funds as the region recovers from extensive flooding,” Cr Sellers said.

Surat Basin

A former central Queensland mine worker is due to face court in April for allegedly smoking in an underground operation near Moranbah. ABC News reported the contract worker had been sacked from Peabody Energy’s North Goonyella coal mine in April last year for allegedly lighting a cigarette while working underground. The Department of Natural Resources and Mines has charged the 24-year-old New Zealand man with two breaches of the Coal Mining Safety and Health Act. The maximum penalty for a breach of the Act is $50,000 or six months in prison. He may also be in breach of his contract as the mines have a strict zero tolerance on drinking and smoking while at work, The Morning Bulletin said. The matter was mentioned in Rockhampton Magistrates Court on February 26 and is expected to be heard on a date to be fixed in April.

Queensland Premier Campbell Newman has backed calls for the Crime and Misconduct Commission to probe the former Bligh government’s approval of two of the state’s biggest CSG-LNG projects. Mr Newman told The Courier-Mail he had no concerns about anything the companies were doing, but shared the Lock the Gate Alliance’s doubts about the approvals process. The newspaper had previously reported that the QGC and Santos-led CSG-to-LNG projects were approved by public servants panicked by a Bligh government order to sign off on them quickly. Lock the Gate president Drew Hutton has referred the matter to the CMC. Meanwhile Basin Sustainability Alliance - a group representing landholders impacted by coal seam gas development - has demanded the State Government give assurances the gas projects will be halted if scientific studies uncover any unacceptable risks, according to The Chronicle. Alliance chairman David Hamilton said the group had been concerned for years over the pace of the industry roll-out.


8

NEWS

March 2013 |

The Mining Advocate

Hot topics FIFO tailspin The name alone sparked debate when a federal parliamentary committee released its report on fly in-fly out workforce practices in regional Australia. “Cancer of the bush or salvation for our cities?” asked the title of the report, which a Townsville Bulletin article described as outlining disturbing stories of people being pushed into FIFO or drive in-drive out (DIDO) work, women afraid of large numbers of men on the streets and young people forced to leave their home towns because they could not afford to stay on low apprentice wages. The Australian Mines and Metals Association took offence at the cancer reference and said the long-awaited report demonised Australia’s resource employers. “The ‘cancer of the bush’ headline arising from the committee’s report is demeaning to thousands of Australian FIFO workers and offensive to families who have lost loved ones to cancer,” AMMA chief executive Steve Knott said. He said the inquiry had dropped the ball on a unique opportunity to discuss how the industry and government could work together to address skills, regional infrastructure and community development. Inquiry chair Tony Windsor explained in the report forward that the “cancer of the bush” tag came from the mayor of Kalgoorlie. “He claimed, and many others agreed, that it is eroding the way of life in traditional mining communities like Kalgoorlie, Karratha, Mount Isa, Broken Hill and Moranbah,” he wrote. “In a different light, FIFO/DIDO

is presented as offering work opportunities to ease unemployment in cities and coastal areas, spreading the wealth of the resources industry and raising the question: could this be the salvation for our cities?” While the inquiry heard extensive arguments from both sides of the debate – the benefits that high wages and time at home bring to FIFO/DIDO workers and their families, and the damage that the practice was doing to some of those in regional communities – he said the mantra of choice came through strongly. The Standing Committee on Regional Australia spent almost 18 months working on the report, which makes 21 recommendations to government and 14 suggestions to

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industry to help build stronger regional communities alongside a strong resources sector. The Mining Family Matters support group said it backed the committee’s recommendations to ensure regional communities received a greater share of the benefits of the mining boom as well as calls for comprehensive research into the impact of FIFO/DIDO on regional communities as well as the workers and their families. “However, we are very keen to ensure that FIFO/DIDO workers aren’t further vilified as part of this debate – or made to feel bad for the work choices they have made for themselves and their families,” a group statement stressed. CFMEU national president Tony Maher said mining companies should have to prove there was no reasonable alternative before being allowed to fly in transient workforces for projects. “Over time we are seeing the fallout from FIFO - diminishing services in regional areas, social discord with large groups of single men camped on the edge of country towns, and the growing failure of mining companies to invest in training for young Australians,” he said. Mr Maher said the committee’s report had made some welcome recommendations, but there were further areas for investigation and reform, including the punishing rosters many FIFO workers were subjected to on construction projects. The Gillard Government has said it would consider scrapping lucrative tax exemptions for miners using fly infly out workers as recommended in the report – a proposal slammed by miners, according to The Australian.


NEWS

The Mining Advocate | March 2013

9

Racing towards a power cliff An industry expert sums up the electricity challenges on Queensland’s near horizon. A quick decision needs to be made on major infrastructure projects to power greenfields mining expansion in the Galilee Basin. That’s come from power industry professional Tim Duignan, whose company Arc Developments International consults on energy infrastructure development to the mining industry. The window of opportunity to meet the expected demands of 1000MW from the likes of Adani, GVK Hancock and Waratah was closing, Mr Duignan said. “The forecast demand for power from a new base-load station is pointing towards 2018-2020,” Mr Duignan said. “You’re up against it now with the two years of approvals and a three years’ construction period required for a greenfield coal-fired power station development. “Government has said it is unwilling to put any money into a power station and has been quite clear a new base-load facility will be privately funded. Government sees itself as the developer of last resort for future power stations.”

Queensland’s next generation base-load power would be coalfired, Mr Duignan said. Firstly the building costs have come back slightly and, secondly, the alternatives are more expensive on whole-of-life basis. “Demand for equipment and infrastructure coming from India and China has eased somewhat from a few years ago, so access is easier,” he said. “Also gas is becoming more expensive. Santos said (recently), with cost increases, the well head price of gas they will sell into the market will be between $6 and $9 a gigajoule. “Using those numbers, coal-fired power is cheaper and will be the cheaper alternative into the future, even with the carbon tax.” Mr Duignan also questioned the feasibility of new technology power plants to reduce the carbon footprint. He pointed towards the 400MW Texas Clean Energy Integrated Gasification Combined Cycle (IGCC) project to be located near Odessa, Texas, which has a price tag of more than $US2.5 billion

Mr Duignan said he had been working on a series of energy modelling scenarios for North Queensland, one of which had shown promise involving a baseload power station with a capacity of about 345MW. He applauded industry group Townsville Enterprise for planning to complete a feasibility study into base-load power in the region. Townsville Enterprise is

concerned by the costs faced by high-volume commercial and industrial electricity users because of the distance between power generation (Gladstone) and the north and the absence of a State Government subsidy scheme. One site being actively looked at and included in Mr Duignan’s modelling plans is the Pentland area in the northern section of the Galilee Basin, which

has known coal reserves. Mr Duignan said while the State Government had shown no inclination to build power stations it could play a very important role in co-ordinating the transmission asset investment in the Galilee Basin and Pentland regions to ensure power stations associated with the coal mines in those areas had access to the National Electricity Market.

Heavy traffic, coal-country style Fifteen 44-tonne dump truck trays made their way out to Peabody Energy’s Millennium mine between Coppabella and Moranbah recently thanks to NQ Group. A job of this size is par for the course for the company’s Mackay branch, which continues to transport a steady stream of heavy equipment for the region’s coal industry despite the recent downturn, according to operations manager Darren Sargeant. “It’s been going fairly strong actually, keeping in mind a lot of this new equipment would have been ordered prior to the downturn,” he said.

A 44-tonne tray bound for Millennium coal mine.

The DT Hercules trays bound for Millennium had been shipped in from Western Australia and underwent modifications in Mackay. Mr Sargeant said the first two left Mackay on January 21 and the last left for Millennium mine in late February.

Photo: Damien Carty

“We knew what to expect with these trays after transporting similar units to Peabody Energy’s Coppabella mine from ESCO here in Mackay,” he said. “We also transport the (Caterpillar) 797 trays... We’re doing 12 more Liebherr T282 C dump trucks to Lake Vermont now.”

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NEWS

March 2013 |

The Mining Advocate

Col mines wealth of history The Charters Towers area is the latest focus of a book series, writes Bruce Macdonald. Mechanical engineer and Townsville-based historian Col Hooper doesn’t mind a challenge. He has taken up the mammoth task of recording in detail the rise and fall of more than 500 mining communities in northern Queensland, where intrepid men and women sought their fortune and often perished in their quest.

In a series of 10 volumes, which is still a work in progress, Mr Hooper has harvested a rich bounty of anecdotal and historical information. Mr Hooper’s focus is obviously an historical account of mining in the 1800s and early 1900s, but his work also pulls into sharp focus the character and determination of those early fortune seekers.

It’s a challenge enough driving to Cape York in an airconditioned four-wheel-drive let alone doing it on foot or on horseback through country often unseen by all but the Aboriginal inhabitants. But what rankles Mr Hooper most is that abandoned mining centres are passing into history with but a few mine shafts, rusting equipment and crumbling buildings as legacy of the glory days.

The Charters Towers Stock Exchange as it looked in 1891. It is now a tourist attraction.

Col Hooper Mechanical engineer and historian

The elaborate woodwork at the abandoned Duke of Edinburgh mine at Ravenswood.

So he has taken it upon himself and for posterity to chronicle those rip-roaring days

in his expansive series of volumes Deserted Towns A-Z: stories of 520 deserted towns and mining camps in North Queensland. Mr Hooper is currently working on volume seven in the series, Cape River, Charters Towers and Ravenswood - which he hopes to publish later this year. He is on something of a mission at the moment to source a photograph of Charters Towers resident Daisy Clifton, the daughter of brewery owner, Ralph Clifton. Daisy would have been a fine catch, she was

Queensland’s first entrant in the 1908 Miss Australia Quest. Much of Mr Hooper’s information on the mining industry’s pioneers has been garnered from old diaries. He would be delighted to hear from anybody who may possess old diaries or other documents that throw further light on the subject. He can be contacted via email on: hmeng@bigpond.com More information on Mr Hooper’s published volumes can be viewed at: www.desertedtowns atoz.com

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NEWS

The Mining Advocate | March 2013

In a new series, The Mining Advocate profi les regional communities feeling the impact of mining and energy development. This edition sees Bruce Macdonald shine the spotlight on Roma in the Maranoa district. Roma is one of those iconic Queensland Outback communities that has survived drought, flood and fire in equal measure since the 1860s. The town has a population of about 8000 according to latest Census figures and 10 pubs to slake a thirst on a hot day. It is the hub of the Maranoa district in the south-west Darling Downs and has traditionally produced beef, wool and grain crops. Like so many rural communities it is undergoing rapid change because of the riches being yielded up by the Surat Basin resources industry. But here the gas boom is not new - natural gas was discovered in the early 1900s and provided lighting for the community. Oil was also found in the district, among the first discoveries in Australia. Santos has been a major player, with assets in the Roma area comprising about 70 small to medium gas fields and several small oil fields. Sustained gas production commenced in 1961 with the Timbury Hills 2 well supplying a gas-fired generator in Roma, which represented Australia’s first commercial gas project. First production to Brisbane commenced in 1969. The first coal seam gas (CSG) production in Australia commenced in 1988 from a single well in the Pleasant Hills field. The well continues to produce coal seam gas at Walloon. Origin Energy has also unlocked the massive potential of the area with its Spring Gully CSG development about 80km north of Roma. A gas pipeline runs from the site to the Wallumbilla hub, which connects to the 434km Roma to Brisbane pipeline.

Even though the commodities boom has given Roma a significant boost into the 21st century, the Maranoa district’s agricultural industry generates around $620 million annually. More than 60 per cent of that revenue comes from crops. Cattle also play a significant role, with Roma being the site of one of the country’s largest sale yards. Toowoomba and Surat Basin Enterprise chief executive officer Shane Charles believes the Roma community is fortunate and better placed than a number of centres in the area in its efforts to co-exist with mining companies. “Roma has had 50 years of association with the gas sector, and particularly Santos, which has provided perhaps a better base from which to manage the current growth to the benefit of the community,” he said. “There are numerous landholders with long, harmonious associations working with Santos. Don’t get me wrong, there are certainly instances of conflicts, but for the most part both sides seem to be solution focused and outcome orientated.” Mr Charles, who also has the role of TSBE gas fields commissioner, said the business community had adapted cleverly to service the new demands, from accommodation through to trade services - offering multifaceted service to the agricultural and gas operations. But Mr Charles conceded that the agriculture sector had suffered significantly. “Wages have increased (along with fertiliser and fuel) substantially,” he said. “But on a positive front, many farmers and their children have found work in the resource sector which has allowed them

11

Roma

A statue of John Machado at Roma’s tourist information centre. Machado, who helped train the first Australian oil drilling teams, came to Roma in 1923. Photos on this page: courtesy Maranoa Regional Council and Santos

to stay on the family farm and in the region.” Maranoa Regional Council Mayor Robert Loughnan said there was no doubt that the presence of big players like Origin and Santos had brought opportunities for many businesses around Roma. The $16 million upgrade of the airport last year is evidence of the prosperity in Roma, with passenger numbers outstripping predictions by 80 per cent. Cr Loughnan said the council had budgeted for about 100,000

arrivals at the airport this year but forward predictions put that figure potentially as high as 180,000. Fortunately the airport on the outskirts of Roma has room to grow and the council is already looking at expanding the car park area and toilet facilities. While the airport is a boon to the wider community, council picked up a substantial slice of the cost. The State Government contributed $4.5 million, Santos $2.5 million, Origin $1 million and the Federal

Roma’s expanded airport facilities.

Government about $700,000 for airport security and scanning equipment. An accommodation crisis is beginning to bite around Roma with many long-term residents forced to leave the community because of rental costs. The construction of the Diamantina Village, which can accommodate 660 people, has taken some pressure off the accommodation sector but Cr Loughnan said the problem had not gone away. “Hopefully the opening of the village will reintroduce a bit of sanity (to the rental market),” he said. “But we need to make more houses available in the base market.” Council representatives are in talks with the State Government to assist in developing council land for low cost housing. Cr Loughnan is well aware that there have been benefits to the community but is equally aware that the commodities boom will not last forever and planning must take into account preparing the community for a shift of focus in the decades ahead.

Regional air route declared open

A gas works in Roma circa 1906.

A Queensland Government review has cleared the way for airlines to run direct flights between Toowoomba and Roma. Transport and Main Roads Minister Scott Emerson said lobbying by local MPs and councils led to an investigation into whether the air route between Toowoomba and Roma was regulated. “The legal advice I received confirmed that airlines interested in operating on the proposed route will not require a government service contract,” Mr Emerson said. “Opening up this route provides alternatives for anyone wanting to travel to and from Toowoomba and the rapidly developing Roma area.”

Skytrans jumped on the news, saying it would immediately start a process to understand the needs of the communities in the region and match them against available resources and required return. The company is seeking feedback from businesses regarding the level of interest and preferred timings and scheduling. Member for Warrego Howard Hobbs welcomed the move to allow commercial airlines to operate from Roma to Toowoomba. “There are already airlines operating between Sydney and Toowoomba, and now there is the opportunity to connect to Roma,” he said.

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NEWS

March 2013 |

The Mining Advocate

Mackay innovation hits market A device promising improved processing throughput is hoped to draw global interest. Mackay’s GROUP Engineering is launching its new volumetric scanner to the market after field testing in the Bowen Basin. GROUP managing director Allan Ruming said fine tuning as a result of that work meant the NISSEN scanner could provide a very accurate measure of volume, allowing process plant adjustments to maximise efficiency. A simplified version of the scanner also controls blending of coal and detection/prevention of transfer chute blockages.

What gave this product an edge over other technology, he said, was the way GROUP was integrating it into process control to improve plant throughput. “If you can improve throughput by 1 per cent or half a per cent, that’s a lot of product coal at the other end of the plant that would have otherwise gone to waste or been lost in the process,” he said. “It increases the productivity and if you have an eight-milliontonne-per-year process – 1 per cent is significant.” Mr Ruming said the scanner

had been tried on a coal feeder running from a ROM (run of mine) stockpile as well as a raw coal feed into the processing plant at a Bowen Basin site. He said the first unit remained with the mine where it was tested and the technology was on offer to a number of mines and a wash plant designer. GROUP would manufacture the scanners internally in the short term, but was considering licensing the manufacturing process out as orders increased. “We intend to market this worldwide, we now have to decide on the best model to take the equipment to market,” Mr Ruming said. “GROUP is

GROUP Engineering’s volumetric scanner at work.

working with a coaching team from The Australian Institute of Commercialisation - a division of QMI - to assist in taking the product to market.” GROUP Engineering has also developed a belt splice integrated

transformer and control unit – SpliceMate - which combines all belt-splicing equipment bar the platens into one machine that can be easily transported above or underground for conveyor belt repair in mines.

Engineering boss retires after 42 years in the job

Bernie Byrnes (centre, front row) at a farewell function with Townsville Engineering Industries colleagues Adrian Part, Evan Stagg, Richard Parker, Nickolette Conroy, Jody McGuinness and (back, from left) Deena Stirling, Armin Richter, Grant Evans, Adam Packer, Jarrod Casey and Byron Carter.

Many Generation X and Y-ers would find it hard, if not impossible to comprehend how an individual could stay in one company for 10 years let alone 42. Retired director and general manager of Townsville Engineering Industries, Bernie Byrnes, did just that after starting his career in 1964 as an apprentice boilermaker/ blacksmith with Townsvillebased Brambles Engineering. In 1971 the 21-year-old

joined GEA Trading after completing his apprenticeship and quickly made his mark on the company, catching the eye of boss Tony Rock. He was a key member of the management team until Mr Rock died in 1996 and joined in a partnership to buy the business, which became TEI soon after. Even though Mr Byrnes’ focus was principally on ensuring the ongoing profitability of the company, he never lost

the connection with his roots, training hundreds of apprentices who passed through the company. During his tenure in the management side of the business he expanded TEI into a global operation overseeing projects in Africa, Indonesia, New Caledonia and Papua New Guinea. He is succeeded by Richard Parker as general manager.

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DRILLING AND EXPLORATION

The Mining Advocate | March 2013

Drawing the line

NT spotlight on oil and gas drive A spike in onshore hydrocarbon projects will be among the headline topics at a key Northern Territory exploration forum for 2013. Northern Territory Geological Survey director Ian Scrimgeour said companies had invested more than $100 million in such exploration in the NT in 2012 and this was likely to rise again this year. “A really important development is that we’ve seen a lot of large companies getting involved in (oil and gas) joint venture projects,” he said. “We’ve had Statoil – a large Norwegian petroleum company, we’ve had Santos getting very involved in the Territory, and we have already seen a significant farm-in by Hess – a large American company. “So we have seen interest from major companies now, which is really driving things along.” Dr Scrimgeour said the Annual Geoscience Exploration Seminar (AGES), to be held in Alice Springs from March 1920, would include presentations regarding hydrocarbon potential across the Territory. “There’s a lot of emerging interest in shale gas and other new petroleum plays,” he said. “Normally at AGES we focus on minerals, and we’ll still have a strong minerals focus, but we’ll also have a number of talks on recent exploration highlights

Ian Scrimgeour Northern Territory Geological Survey director

for conventional petroleum as well as work done on resource potential for unconventional petroleum in the NT.” Dr Scrimgeour said the hydrocarbon hot spots were spread right across the Territory. There had been a lot of success recently in the area around Borroloola in the McArthur Basin – the same geological formation that hosts the McArthur River lead-zinc deposit. “This is some of the oldest oil and gas in the world – around 1600 million years old,” Dr Scrimgeour said. “It’s quite geologically unusual and we see some fantastic

potential to have some new petroleum production from these very old rocks.” While Armour Energy has been having success with gas finds in that area, Central Petroleum has made the first new onshore oil discovery in the NT in about 50 years in an area west of Alice Springs. Dr Scrimgeour said the NT had been producing gas and a small amount of oil from the Mereenie and Palm Valley fields in central Australia for years, but they had limited resources left. “Over the last 20 years or so there has been very little onshore hydrocarbon exploration but it has suddenly taken off over the last two or three years,” he said. This could be attributed mainly to the development of new technologies allowing extraction of oil and gas from “tight” rocks - rocks with very low permeability. While exact figures for hydrocarbon exploration were not available, Dr Scrimgeour said spending had certainly risen significantly in the past year. At the same time, the amount spent on NT mineral exploration is believed to have dropped from $228 million in 2011 to about $170 million in 2012 (with last year’s figures still to be finalised).

LandTrack Systems has set up a new avenue for prospectors, geologists and others to gain up-to-date data on mining tenement boundaries. The company, which collects tenement data from across Australia for its land-use tracking tools, is making the information freely available as an extension to Google Maps called LandTracker Maps. LandTrack Systems managing director Justin von Perger said the free app would allow people to view and download tenements anywhere in Australia on any GPS device, without needing expensive GIS Software. Boundaries are updated every morning from state government mines departments across Australia.

Seminar highlights The Northern Territory Geological Survey’s 14th Annual Geoscience Exploration Seminar (AGES) will be held at the Alice Springs Convention Centre on March 19-20, following workshops on March 18. Seminar topics include: • copper and gold potential in the Arunta region of central Australia, where NTGS mapping has identified similar mineral alteration to that found around Olympic Dam, • how the NTGS Hylogger (a hyperspectral imaging device ) can be used to understand mineral alterations surrounding deposits in the Tenant Creek area and its potential to identify rare earths in the drill core collection held by the Government, • dedicated rare earths sessions highlighting some of the significant deposits in the NT and potential rare earth developments, • the geology of some of the deposits at the centre of a gold exploration boom in the Tanami region, and • results of modelling from a major gravity survey conducted in southern NT, over the Amadeus Basin, in 2012.

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INDUSTRY UPDATE COAL AND GAS

LNG’s long haul LNG project teams have completed what has been hailed as a worldclass engineering achievement in simultaneously laying two 1m-diameter gas pipelines across Gladstone harbour. The five-day operation to winch the pipelines 2.3km from the mainland to Curtis Island represented Australia’s longest large-diameter underwater “pipe pull”, according to gas company QGC. QGC managed the project under which pipelines for the Queensland Curtis LNG project and the Australia Pacific LNG project were laid in a trench by pipeline construction contractor MCJV, a joint venture between McConnell Dowell Constructors and Consolidated Contracting Company Australia. The segments will connect each project’s main pipelines from the Surat Basin gas fields, about 300km inland, to liquefied natural gas plants on Curtis Island. The harbour crossing involved construction of temporary facilities including a 2km-long road, two bridges and a railway line to move the pipes across two creeks, marshes and mud flats. It used a temporary 450-tonne capacity winch on Curtis Island to pull the pipes – which together weighed 8000 tonnes – through the sub-sea trench. “This engineering feat is significant on a world scale in terms of scope and complexity,” QGC pipelines project director Norman Ingram said.

Uplifting experience The Queensland Curtis LNG construction team has lifted a 900-tonne steel dome roof to the top of a 38m high tank using air. The tank roof – 79m in diameter - is the first to be placed into position across the three LNG projects under way in Gladstone. Bechtel Oil, Gas and Chemicals - the construction contractor for the QCLNG plant - began building the first tank 15 months ago. Bechtel said the roof had been assembled inside the tank wall, close to the ground, during the early stages of the tank construction process. To lift the roof, the

March 2013 |

tank entrance was sealed and three large fans pumped air underneath the roof, creating an increase in air pressure that enabled the roof to rise in a three-hour process. The roof will be covered with concrete while the interior of the tank will be insulated and lined with nickel steel to keep the gas liquefied at minus 162 degrees.

APLNG construction on track A schedule and cost review of Australia Pacific LNG’s coal seam gas to liquefied natural gas project has found the first train to be on track for completion on or ahead of schedule, with the first LNG cargo expected in mid-2015. Train 2 is expected to be completed at least three months earlier than scheduled, with start-up expected in the fourth quarter of 2015. Cost estimates for the project have risen from $23 billion in July to $24.7 billion.

Online aptitude test Energy Skills Queensland has launched a new aptitude test to help energy industry employers recruit suitable candidates. The online tool – at www.energyskillstest. com.au - gauges a candidate’s suitability for a trade career in the energy industry, including the electrical, gas and telecommunications sectors. ESQ workforce development consultant Jody McAully said the test should help reduce the number of apprentices dropping out. “Around one in three electrical apprentices fail to become tradespersons and this high noncompletion rate is costing employers thousands in recruitment expenses and poor productivity,” Ms McAully said.

“A $1.2billion project is now likely in the Northern Territory, made up of approximately $500 million in infrastructure upgrades to allow Eni to flow gas from Blacktip to Gove, $200 million for Pacific Aluminium to convert their generators to gas at the Gove refinery, and approximately $500 million to construct the new pipeline,” Mr Mills said. “The Commonwealth Government has shown its support for the Northern Territory Government’s decision to release gas to Rio Tinto, and must now follow through on their commitment to underwrite the financing of a gas pipeline to Gove.” Rio Tinto said Pacific Aluminium was advancing plans for conversion from heavy fuel oil to gas but noted there were still a number of important steps remaining to deliver gas to Gove. It has threatened to close the operation, saying the rising cost of heavy fuel oil coupled with a high exchange rate and low alumina price meant the plant had sustained heavy losses for some time.

Skills groups join forces Energy Skills Queensland and Kinetic Group are joining forces to provide a broader range of workforce planning and development services to the energy and mining industries.

The Northern Territory Government has committed to supply enough gas to keep Rio Tinto’s alumina refinery in Gove open for 10 years.

ESQ is responsible for leading industry and government engagement on education and training, skills development and labour market issues for the energy sector. The Kinetic Group is the skills advisor to the resources sector.

Chief Minister Terry Mills said the Government would finalise the necessary documents and formalise the arrangements for the release of gas as soon as possible.

ESQ chief executive officer Glenn Porter said the merger would create a bigger and stronger organisation that had increased capabilities to service and meet the needs of the industry and its stakeholders.

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Meridian strengthens WestSide Corporation has announced a significant upgrade to its certified reserves after receiving a report highlighting 2012 results from the Meridian SeamGas CSG field near Moura. Net 1P reserves were up 40.7PJ to 47.2PJ, while 2P reserves rose from 258PJ to 347PJ and 3P reserves increased from 725PJ to 885PJ. WestSide chief executive officer Julie Beeby said the report acknowledged the company’s achievements in bringing new wells into production at Meridian and extending the life and productivity of existing wells within the field.

New Oakleigh bows out The New Oakleigh open-cut coal mine in the Ipswich region has shut up shop after coming to the end of its productive life. New Hope Group chief operating officer Bruce Denney said the company, which formed in Ipswich in 1952, would continue its strong local links through its nearby Jeebropilly mine. Mr Denney said the company had been working closely with about 30 staff members to find other positions within New Hope where possible. Some would be retained at the site to continue rehabilitation work, he said.

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INDUSTRY UPDATE COAL AND GAS

The Mining Advocate | March 2013

Economic windfall Bandanna Energy’s proposed Springsure Creek coal project will deliver the state an economic windfall of almost $1 billion and more than 2000 new jobs, according to new modelling. A study by economic consultancy AECgroup shows construction of the first stage of the project between 2013 and 2015 would directly create 1022 fulltime jobs in Queensland and a further 2104 jobs indirectly. These include 380 direct full-time positions and 560 flow-on jobs in the Central Highlands, Rockhampton and Gladstone regional council areas surrounding the proposed underground mine, 47km south-east of Emerald. Bandanna’s total capital expenditure on the first longwall operation is expected to be about $750 million, with an additional $400 million spent during construction of the second longwall from 2020. The definitive feasibility study for the project has been completed. Bandanna managing director Michael Gray said, with delays to many other new projects, the company was confident it would be producing coal at a world competitive cost in a market of increasing demand and limited new supply.

Collinsville control shift Xstrata Coal will take the reins at the Collinsville coal mine from Thiess, in a move expected to cost the contractor about $650 million in lost work over the next four years. Following a review of operations at the mine, Thiess said it had entered a transition agreement with Xstrata Coal which would see the site move to an owner-operator model from August 2013. The Bowen Basin mine has suffered substantial financial losses in 2012/13 – attributed to factors including the weak coal export market, strong Australian dollar and high costs. Xstrata Coal said the change in management aimed to restore the mine’s viability.

“As owner-operators Xstrata Coal will be able to make the decisions and changes necessary to improve productivity and reduce costs,” the company said in a statement. Collinsville Coal Mine produces about 3.9 million tonnes of coking and thermal coal per annum. It is owned by a joint venture partnership between Xstrata Coal (with 55 per cent ownership), Itochu Coal Resources and Sumitomo.

Solar power study The Australian Government is backing a feasibility study into the potential conversion of the Collinsville coal-fired power station into a hybrid gas/solar thermal plant. Resources and Energy Minister Martin Ferguson announced $2.5 million in funding under the Australian Renewable Energy Agency’s (ARENA’s) Emerging Renewables Program towards the study. Initiated by Collinsville Power Station owner RATCH-Australia, the $5.6 million study will assess the viability of converting the 180MW plant to a 30MW hybrid solar thermal/gas power station with the help of ARENA. “The feasibility study will help other generators to assess the possibility of using solar thermal technologies at coalfired plants,” Mr Ferguson said. The University of Queensland will contribute through a research program that investigates potential early stage operation and any commissioning issues.

Virgin flies to Moranbah Virgin Australia plans to start flights between Brisbane and Moranbah in April. The company said its ATR Turboprop aircraft would initially operate two daily return flights on weekdays, increasing to three daily return flights from April 15, as well as one daily return flight every Sunday. “Moranbah is situated in the heart of the Bowen Basin and we are pleased to be supporting both the local community and the resources industry by bringing much-needed competition to this

15

market,’’ Virgin Australia group executive of alliances, network and yield Merren McArthur said.

the Belvedere coal project, near Moura in the Bowen Basin, giving the Brazilian mining giant 100 per cent ownership.

Deputy Premier Jeff Seeney recently opened the $46 million Moranbah airport expansion, which was funded by BHP Billiton Mitsubishi Alliance. The upgraded airport can support an estimated 110 flights each week.

The company has also paid $20 million in an agreement to settle legal disputes with Aquila Resources.

Gregory Crinum sale prospect BHP Billiton has confirmed it is investigating potential sale of the Gregory Crinum mining operation near Emerald. The company said it was also assessing options to further extend the life of the complex, owned and operated by the BHP Billiton Mitsubishi Alliance. BMA closed the Gregory open-cut mine in October last year due to its unprofitability in current market conditions. The company said the Crinum underground mine remained profitable and would continue to operate in the event that the Gregory Crinum complex was retained within the BMA portfolio. “Any decision to proceed with divestment, or otherwise, is unlikely for six to nine months and will depend on market interest and other commercial factors,” a BMA spokeswoman said.

More for Moorlands Queensland coal explorer Cuesta Coal has further capital to advance its Moorlands thermal coal project in the Bowen Basin after raising $12 million through a share placement agreement with Beijing Guoli Energy Investment Co. “Our immediate priority is to complete the mine scoping study at Moorlands in Q1 2013 followed by resource drilling programs in the lead up to feasibility studies,” Cuesta Coal managing director Matthew Crawford said.

Deal sealed on Belvedere Vale has paid $150 million to acquire Aquila Resources’ 24.5 per cent stake in

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Aquila said it now had more than $600 million in cash available to progress various projects, most notably the construction of the Eagle Downs coking coal project - which is under way 25km south-east of Moranbah.

Merger forms MEM Group Mackay-based company DPSA Engineering and Rockhampton-based Mining Equipment Maintenance have merged to create MEM Group. MEM Group chief executive officer David Blower said MEM Group Mackay and MEM Group Rockhampton would enjoy significant infrastructure redevelopments in 2013. MEM Group Mackay had relocated to a 6600sq m purpose-built complex in Paget, including two fabrication and repair facilities, while a redevelopment was planned for the group’s 8ha North Rockhampton site to increase heavy equipment and medium vehicle service capacity, he said.

E-mentoring for resource women The Australian Women in Resources Alliance has launched a dedicated virtual mentoring program for women working across Australia’s resource sector. The online portal is delivered by resource industry employer group AMMA with support from the Australian Government under the National Resource Sector Workforce Strategy. The program connects experienced mining, oil and gas professionals with women in the earlier stages of their careers. AMMA director of group services Tara Diamond said the first round of AWRA e-mentoring partnerships had commenced, with male and female mentors providing guidance to women seeking to further their resources careers.


16

BETWEEN SHIFTS

March 2013 |

Mackay Area Industry Network breakfast

The Mining Advocate

PHOTOS: Damien Carty

Ocean International Hotel, Mackay

Ruston Kemp (Excel Drilling), Michelle Berkhout (VIA), James Harris (Brown & Bird), and Hans Berkhout (RCS).

Stephen Ross (Gibsons) with Michelle McAuliffe and Allistair Emery (both Momentum Software Solutions).

Ray Vella and Drew Callander (DAC Mining Services) with Luke Harrison (Diamond Protective Coating) and Paul Squire (NZ Professional Health & Safety Services).

Jessica Simpson (BMC), Ray Allan (AIM), Gina Davis (Gina’s Flags), Nikki Crouch (Veolia), and Leon du Preez (Mastermyne).

Terry Sammut (Elite), Dan Thompson (NAB), Garry Pennell (Vantage), Bill Hopton (CTPM) and Troy Pantall (QCCS).

Shayne Ritchings (Jet Engineering), Jeff O’Keefe (Mastermyne), Danny Schneider (NAB) and Matthew Gray (KPMG).

Gladstone Engineering Alliance industry update lunch Rydges Gladstone

Doug Forster and Allan Jerrery (Seventeen Seventy Beach Pty Ltd) with Cameron Price (Fodico Marine Group).

Matt Ireland (Ireland & Co.), Nicola Kelbie (Cement Australia) and Bill Blake (McKays Solicitors).

Brendan Kanofski and Sean Grey (both from Total Drafting Service).

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BETWEEN SHIFTS

The Mining Advocate | March 2013

17

TSBE February Enterprise Evening Dalby Bowls Club

Ross Low and Geoffrey Campbell (both Country Petroleum) with Gavin Walton (CEC).

Reagan Parle (Toowoomba Surat Basin Enterprise), Beth Wood (DCCI) and Wilhemena Mclean (Origin Energy).

Peter Worth (Rocla), Andrew Bowden (Queensland Survey Pegs), and Adam Bradley (Rocla).

Michael Hubbard (ANZ), Nick Koeing (DCCI), and Tony Randall (Murdoch Lawyers).

Dallas Hunter (FKG) and Terry Smoothy (Verifact).

Bill Gammack (AMVL) and Bruce Cameron (Cottrell Cameron and Steen Surveys).

John Eales motivation session

PHOTOS: Damien Carty

Windmill Motel and Reception Centre, Mackay

Kate and Greg Power (both WES Gas Energy) with Tim Miles (Results Plus).

Tony Bright, Ella Brownsey, Sally Howard and Courtney Lavender (all Chandler Macleod).

Rob Mace (BTP) and Daniel Rose (Kadan K9 Training) with Joanne and Lawrence Pappin (both CCTS).

Kate O’Dea (G&S Engineering), Andrew Pellow (Mastermyne) and John May (Eagle Boys Sarina).

Craig Forsyth (Flanagan Consulting Group), Steve Lawn (EHS Manufacturing), Tony Hutchinson (Jet Engineering) and Alan Hayes (Hayes HR).

Joanne Hamilton (NAB), John Vella (Dowdens) and Martin Lambert (Stamford Financial).

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18

BETWEEN SHIFTS

March 2013 |

Sportsman Dinner

The Mining Advocate

PHOTOS: Roslyn Budd

Overlander Motel, Mount Isa

Jason Taumalolo and Chris Grevsmuhl (Cowboys) with Grant Torta and Chloe Hornsby (AWX), and Curtis Rona (Cowboys).

Julie Loccisano and Tariq Sims (Cowboys).

Linda and Lee Pullman (Mount Isa Bell & Moir Toyota) with Neil Henry and Peter Parr (Cowboys).

Chris McCleave, Natalie Lund, and Bryant Schwengler (back), with Huw Werrett and Steve de Kruijff (all from Xstrata).

Adam Dotta and Cameran Conlan (ASPIC) with Kristian Woolf (Broncos).

Len Farren, Ron Pertovt and Kim Kretschmann (back), with Deb and Gary Cooke (representing Migate).

Stuart and Rebecca Pascoe (Northwest Equipment Hire).

Anthony Griffin (Broncos) with Carli Schulz and Emily White.

Dylan O’Neill and Jamie Hull (Dave Clancy Electrical).

Darwin Mining Club lunch

PHOTOS: Christopher Knight

Crowne Plaza, Darwin

Siggi Buba (Geminex) with Seamus and Fred May (May Drilling).

Chris Roe (KSB Australia), Colin McTaggart and Adam Stockwell (Thinkwater), Glenn Rossiter (Thrifty), and Glen Funnell (KSB).

Deb Carr (RTO Temphelp), Rosemary Yanz (Mt Todd), and Jeanette Button (Creative Territory).

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BETWEEN SHIFTS

The Mining Advocate | March 2013

AusIMM trivia night

19

PHOTOS: Roslyn Budd

Island Bowls Club, Mount Isa

“Toga Crew” - (back) Jazmine Ketsteven, Toni Khun, Emily White, Carli Schulz, (front) Andrew Murray, Kellie Green, and Catherine Cantony.

Xstrata vacation students - (back) Phill Henderson, Jason Squires, Warwick Devlin, (front) Caitlyn Standen, Roland duToit and Akshay Kumar.

“Norfolk and Chance” - (back) Gareth Parkinson, Laura Parkinson, Richard Ogle, Daniel Woolmer, (front) Anna Chase, Jack Pilkington, and Eileen Rowe.

“Penny Pinchers” - Billy Reid, Felix Koeppen, Graham Ball, Nick Patterson, and Douglas Ball.

Xstrata second-year graduates - (back) Mel Rickets, Ashleigh Job, Hank McDonell, Alfie Tsang, (front) Anne Schoemaker, Matt Harland, Matt Grayland, and Belinda Wong.

“Sharapova Screamers” - (back) Alyssa Hunt, Glenn Bradley Trueman, Jack Lowe, (front) Glen Molanano, Pete Kroek, Samuel Alexander, Michael Milne, and Jenifer Bonafe.

Diamantina Power Station visit

PHOTOS: Roslyn Budd

Mount Isa

Brett Peterson (Mount Isa City Council) with Grahame West and Loughlin Nolan (both APA Group).

Steve McDougall (KBR) and Anne Seymour (Mount Isa City Council).

Jean Ferris (Mount Isa City Council), with David Jones and Colin Popple (APA Group), and Mark Williamson (Ergon Energy).

Kim Coughlan (Mount Isa City Council) and Michael Butler (APA Group).

Stephen Ohl (DPS) and Tony McGrady (Mount Isa City Council).

Mark Magnowski (DPS) and Mark Shadur (MITEZ).

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20 Building Mining Communities

March 2013 |

The Mining Advocate

SUPPORTED BY BHP BILLITON CANNINGTON

They’ve dunnart Julia Creek has suffered in past years by not being able to rival other north-west Queensland townships with a tourist attraction that would entice the grey nomads who crisscross Australia in caravans and motor homes to stay a while. That has changed with what McKinlay Shire Council chief executive officer Shane Cagney describes as “phenomenal” support from the BHP Billiton Cannington mine, which has invested $1 million into stages one and two of Julia Creek’s Tourist Information Centre. “Hughenden and Richmond have their dinosaur bones while Cloncurry and Mount Isa have mining,” Mr Cagney said. “Julia Creek had no hook to entice the grey nomads to stay overnight here, but that has all changed now and the business community is starting to realise the benefits.” Stage two of the project officially opened in December – has been named “Beneath The Creek” and features a modern building fitted with state-of-the-art audiovisual equipment. A focal point is a display

featuring two rare carnivorous marsupials, dunnarts Rex and Dingo. They were donated by the University of Queensland’s Native Wildlife Teaching and Research Facility at Gatton, near Brisbane. Mr Cagney said Julia Creek was the only place outside of the wild where members of the public could see the mouse-like creatures. One of the most popular

features is the recreation of a section of bush on the floor of the new building where visitors can see a dunnart scurry off as they stand on a tuft of spinifex grass. Mr Cagney said the four walls of the new building featured the geology of the region from the Cannington mine north to the Gulf; fauna of the region; flora and the pioneers who settled the area.

Bandanna Energy managing director Michael Gray examines a wheat crop with Anthony Diprose from Customised Farm Management and fellow Bandanna executives Matthew Palmer and Stuart Clarke.

Stage two of the Julia Creek Tourist Information Centre opened recently, thanks to support from BHP Billiton Cannington.

Mung beans mix with coal dreams Bandanna Energy has launched a ground-breaking agricultural project at its Springsure Creek mining lease in central Queensland to prove that mining wealth can come without sacrificing strategic cropping land. Bandanna aims to maintain or improve crop production at its wholly-owned Den-Lo Park property while it operates its proposed 11mtpa thermal coal mine underneath. The Den-Lo property – south-east of Emerald produces wheat, corn, cotton, sorghum and mung beans. Bandanna managing director Michael Gray said the company would draw on Queensland’s top farming experts to help guide research on strategies to maximise agricultural productivity above an underground mine in a bid to help solve one of the major economic dilemmas facing the community. The project, costing at least $10 million in its first phase, involves a three-year research program overseen by an independent steering committee of leading farming academics and consultants

This pink excavator and workers with gear to match are doing their bit to fund breast cancer research. Photo: Greg Crow

Redpath Australia in the pink at Cannington operation Mining contractor Redpath Australia has introduced a bright pink excavator and pink work wear to BHP Billiton’s Cannington mine in a breast cancer awareness and fundraising initiative. Redpath has volunteered to donate $10 for every hour the pink excavator is

at work at the north-west Queensland mine throughout 2013, with BHP Billiton contributing $10,000 dollars to the cause. All Cannington workers also have the opportunity to get involved, with any person who donates $50 given a pink hard hat and work shirt to wear on site.

Redpath said the initiative, run in partnership with the National Breast Cancer Foundation (NBCF), kicked off in January. While it was too early to gain figures for the number of employees donning pink, Redpath Australia marketing manager

Rhiannon Vines said the response had been extremely positive. “Initially we weren’t sure how enthusiastic our workers would be about wearing bright pink to work, but they have been incredibly supportive, with many volunteering and getting involved,” she said.

Proudly supporting mining communities Cannington


Building Mining Communities 21

The Mining Advocate | March 2013

SUPPORTED BY BHP BILLITON CANNINGTON

Fight for better bites The Royal Flying Doctor Service (RFDS) is swapping wings for wheels to help address regional Queensland’s oral health problems. The RFDS initiative is backed by mining company QCoal, which has committed $3 million to deliver a new mobile dental service from an 18-wheel semi-trailer housing two dental surgeries and a team of dental experts. The QCoal Community Dental Service will visit regional Queensland communities where oral health services are limited, providing access to preventative dental care and treatment with no out-of-pocket expense for users. QCoal managing director Christopher Wallin said regional Queensland had a serious dentist shortage, leaving far too many people without proper dental care.

“I’ve worked in regional Queensland for decades and have seen the toll this shortage is taking on people’s overall health,” Mr Wallin said. “People in the regions have fewer teeth and more untreated decay, which can lead to the onset of a range of other chronic health conditions. “QCoal is keen to support Queensland’s rural and remote communities, including those we work in. I know from talking to our employees and their families that having regular, reliable access to dental care is a major concern for them.” The truck contains equipment including an orthopantomogram (OPG), which allows RFDS dentists to take an x-ray of the teeth and jaws. RFDS Queensland chief executive officer Nino Di Marco

said the QCoal Community Dental Service would offer everything from a simple check and clean through to an extraction or x-ray. “With around 80 per cent of all dental practitioners located in major cities and less than 1 per cent working in remote areas, this new service will fill a real gap in many communities,” he said. “The RFDS aims to provide equity of access to quality health care for all those who live and work in rural and regional Queensland and we’ve identified dental health as an area of significant need.” The QCoal Community Dental Service will visit towns including Clermont, Moranbah, Collinsville, Bowen, Hughenden and Camooweal. For more information visit http://www.flyingdoctor.org.au/ dental

Moranbah North human relations co-ordinator Tanya Vaughan, stakeholder engagement specialist Lynda Pollock and Moranbah Community Playgroup co-ordinator Lisa Hardwick show off the new equipment with children from the Milburn, Hardwick and Walker families.

Mine funds for playgroup fun Children at the Moranbah Community Playgroup are enjoying new playground equipment purchased with social investment funds donated by Anglo American’s Moranbah North mine. Playgroup co-ordinator Lisa Hardwick said until recently the centre had only an older plastic fort with a slide, which had become unsafe, so she urgently needed funding to purchase some new equipment. After applying for funding through Anglo American’s 2012 social investments and donations

program, the centre received funding for a new play fort and a colourful “worm tunnel”. “Our playgroup was established in 2006 to address a need with new families moving to town and looking for a social place to bring their young kids while making local contacts and friends themselves,” Ms Hardwick said. “It’s grown into a wonderful place for children to learn through play and make new friends while parents find they establish a support network as they become part of our community.”

A Brisbane paediatric neurologist engages in a consultation with remote clinical staff.

Telehealth link to serve Dalby region Gas company QGC is investing $1.3 million to give families in the Western Downs better access to medical specialists in Toowoomba and Brisbane. The investment will establish a telehealth service at Dalby Hospital from mid-2013 and fund running costs for the first two years, enabling families in the region to get specialist medical consultations online. The Health e-REGIONS service will be run by the University of Queensland’s Centre for Online Health, with assistance from the university’s main research commercialisation company, UniQuest. QGC said patients from Dalby, Chinchilla and Miles would have access to the broadest online network of specialist paediatric, geriatric and aged-care services in Australia at participating hospitals, general practitioners and aged-care facilities. Under this system patients can have specialist appointments by video conference, reducing the need for long-distance travel for face-to-face consultations. QGC vice-president sustainability Brett Smith said the project reflected QGC’s commitment to rural health services. “Community health is a key focus of our $150 million social contribution, through which we manage social impacts and maximise benefits from our Queensland Curtis LNG project,” Mr Smith said. “As part of this work, we funded a study of health services in the region in 2012 which highlighted the need for greater access to specialist medical care.”

Dysart medical boost Dysart is set to gain a new medical centre after Isaac Regional Council received $750,000 from Queensland’s Royalties for the Regions program. The council is one of six local governments across Queensland that was shortlisted for funding under the first pilot round of the program. Deputy Premier Jeff Seeney said Dysart had a residential population of about 3450 people, or 5530 when non-resident workers were taken into account. The new project would deliver a medical centre with three consulting rooms and two treatment rooms, he said. “It will house two GPs, two part-time practice nurses and visiting allied health specialists such as dentists, chiropractors and optometrists,” Mr Seeney said. It followed the announcement in January of a $5 million commitment for Emerald’s Nogoa River Rail Bridge flood mitigation project - the first project to receive funding under the Newman Government’s $495 million Royalties for the Regions program.

Proudly supporting mining communities Cannington


22

LIVING REMOTELY

March 2013 |

The $50 million

New rooms for Roma Rental accommodation in Roma received a major boost with the recent opening of the $50 million Diamantina Village complex, 5km east of the CBD. Stage one of the project will accommodate 660 people, according to Brisbanebased company Modular Accommodation Solutions. MAS general manager James Donnelly said the village was the first of a series of projects planned by his company, with Gladstone the site for a second project expected to start in August or September this year. Mr Donnelly said he received

the full backing of the Maranoa Regional Council during the approval stage of the Roma project. The Roma complex is aimed at mining industry workers but is also open to the general public. It offers fully self-contained units with a host of facilities including a licensed bar, gymnasium, tennis courts, barbecue area, pool tables, cafe, general store and a swimming pool with sauna. Each room in the village contains reversecycle airconditioning, ensuite bathroom, pay TV, refrigerator and a work space.

The Mining Advocate

Diamantina Village complex opened recently in Roma.

A training room is also available, featuring high-speed internet to provide conference calls and induction courses for new workers destined for the major mining sites in the district. Mr Donnelly said his company had decided to go ahead with the ambitious project with no pre-commitment from mining

companies to take out long-term leases. “We adopted the philosophy that if we build it, they will come,” Mr Donnelly said. The village is being built by the FK Gardner Group. Stage two of the project, which has council approval, will allow the village to accommodate more

than 1000 people. It is expected to be completed by the end of the year. Mr Donnelly has 20 years’ experience in property development and his name may seem familiar to some readers. He made 23 appearances for the Brisbane Broncos between 1989 and 1991.

Miners embrace health and fitness program A health and fitness program run by one of Australia’s largest mining services companies has seen 1412 fly in-fly out workers lose 3872kg in a 12-week challenge. ESS Support Services Worldwide (ESS) has been running the Tastelife program throughout its Australian mining villages since 2004 and in 2006 kicked off an annual weight loss challenge as part of the scheme. The overall winner of the latest challenge – David Law from the Eureka Village at Goonyella Riverside mine, Moranbah shed 24.5 per cent of his body weight by losing 31.7kg. “I became frustrated by being overweight when I realised I couldn’t tie my boots

comfortably,” Mr Law said. “I was always fit and healthy in my younger days and just became lazier as I got older. Now I enjoy feeling fit, healthy and being active.” The Tastelife Weight Loss Challenge sees FIFO workers participate in activities to increase their awareness about weight gain and improve their overall health, fitness and lifestyle choices through a program of activities coordinated by on-site ESS Activelife coaches. ESS Eureka Village project manager Adam Rolfe said participation in the challenge was growing due to an increased awareness amongst village residents of how their lifestyle

choices affected their health, combined with the assistance and encouragement they received from Activelife co-ordinators on site. He said there had also been a definite increase in the number of residents becoming involved generally in the sporting and group fitness activities offered on site as people had become more aware of the negative side effects of making poor health and fitness choices and the obesity crisis was highlighted in the media. “One of the major trends we have seen is the positive benefits the Tastelife program is having on residents when they leave site and head home on their R&R – they are continuing their new

healthy habits, such as increased physical activity and healthy eating, when at home with their families,” he said.

Central Queensland miner Dave Law before and after the challenge.

Darwin

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“This is a great endorsement of the Tastelife program and the long-term positive changes it can inspire in residents.”


BIG BOYS’ TOYS

The Mining Advocate | March 2013

23

Boom times for custom car club Mackay Rod and Custom Club pesident Steve “Stumpy” Ware’s Chevrolet Tudor.

The coal mining boom in the Bowen Basin has had a welcome impact on the Mackay Rod and Custom Club, which has seen its membership double to 110 enthusiasts in the past five years. As the name indicates, the club is for automobile fanciers who like to modify their vehicles. The club has operated for 30 years and current president Steve “Stumpy” Ware has been a member for 20 years. He is the proud owner of a 1930 Ford closed-cab rod and a Chevrolet Tudor.

Stumpy said there was no doubting that the mining boom had been good for the club. Club members head off down the highway once a month and gather for a regular Friday night cruise around Mackay. “We pretty much decide on the night where we go,” Stumpy said. It’s the club’s 30th anniversary this year and Stumpy and his committee are planning some big events to celebrate the occasion. But the highlight of 2013 will be the biennial club show at the Mackay Showgrounds on May 11 and 12. The last show in 2011 attracted 211 vehicles from across Queensland and interstate. The club caters to a wide cross-section of motoring enthusiasts from fanciers of Australian and American muscle cars to all types of hot rods. “We even have a Ferrari owner in the club,” Stumpy said. Club membership is $100 per year and prospective members must attend three meetings before being voted into the club. Membership has its benefits including cheaper registration for members’ custom vehicles. Contact Stumpy on 0428 184 773 or visit the website at: www.mrcc.org.au

Boats to lure you in Love your lure fishing but just don’t have the time to reach your best spots? Self-confessed fishing tragic Josh Batterson stumbled upon the American-built Skeeter range of boats when watching a television program on US bass fishing. The Sydney-based angler was hooked and has had the Australian distribution rights for the Skeeter range since 2004. Uptake on the purpose-built lure fishing platforms was slow initially but he now sells 70 to 80 boats annually from his Penrith boat yard. Skeeter boats are designed to travel quickly to fishing hot spots and provide a stable, carpeted fishing platform. Everything is stowed below the deck, optimising the lure casting area. The craft are fast, with many capable of travelling at well over 100km/h - allowing the crew maximum fishing time at their favourite locations. Skeeter Boats has been building specialised lure fishing craft for 60 years in the US and it was the attention to detail and quality of workmanship

which won Josh over. “I’ve been fishing all my life, mainly from aluminium boats. There was nothing like the Skeeter boats in Australia until I started importing them,” he said. “With more fishing tournaments in Australia the popularity of the boats has grown, particularly amongst barramundi anglers.” The strong Aussie dollar means you can get into a Skeeter boat for $40,000 right through to the top-of-the-range craft at $110,000. While 80 per cent of the Skeeter boats sold by Josh are for fishing, ski and pleasure craft also feature in the range. Secondhand craft are also available from around $22,000 for 2004, 2005 or 2006 models. For more information visit www.skeeterboats. com.au

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24

SAFETY AND RESCUE

March 2013 |

The Mining Advocate

Refuge revamp

Krause Health and Safety has added Canary software to its training repertoire.

Technology gives trainers the edge A Mount Isa business is using interactive software with an Xbox control system to take a new generation of miners through their safety paces. Krause Health and Safety began running courses with the Canary technology in January after getting its team of trainers up to speed with the system. General manager Dave Anderson said not all of the trainers found it easy to adjust to using the complex Xbox controls – unlike those Generation Y students attending the new courses. “They are able to pick up the controller and make it look easy,” Mr Anderson said. “It’s the future: we’re getting a lot more of the more senior people retiring and moving out of the

industry and we have the new generation coming through. It suits their learning, and adjusting to their needs is part of what we do as an RTO (registered training organisation).” Use of the Canary technology is not confined to newcomers, however - it is also helping take existing mining industry employees through refresher training. In addition to generic induction scenarios, Mr Anderson said the Canary system offered training in areas such as driving, supervisory skills and incident investigation. Mr Anderson said the technology represented a substantial investment for Krause Health and Safety. It was a case of moving with the

times and finding better ways to engage people, he said. The Canary system allows trainers to project computer animated scenarios for their class – putting students in the shoes of a miner as they apply day-today safety procedures in a virtual reality environment. “It allows students to make mistakes in a training environment and understand the mistakes that would not be acceptable on a mine site when it comes to safety and health,” Mr Anderson said. The response from students so far had been very positive, he said. “Rather than sitting there and listening to a trainer use a power point (presentation) as a tool, the Canary is a lot more interactive,” Mr Anderson said.

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MineARC Systems has launched a new range of refuge chambers for the hard-rock mining industry – the HRM Series IV. MineARC general manager Mike Lincoln said Series IV built on the success of the Series III. “It’s now even safer, it’s smarter, and it’s easier to maintain and service. We’ve also included a number of structural modifications that make it easier to position on site,” he said. Upgrades include a new carbon monoxide/carbon dioxide scrubbing system and an intelligent voice audio navigation system to “talk” occupants through operating procedures and alerts.

An arresting display QAL’s safety team have rammed home the importance of clearance calculation when working with fall-arrest systems.

The team in February set up a display at the Gladstone refinery’s front entrance, using a mannequin and orange scissor lift platform, to draw attention to the issue. QAL safety advisor Jo Burke said the idea of the display was to show how far a fall-arrest system could deploy and the clearances required. A worker’s height, the length of the lanyard attached to them and the maximum energy absorber extension must all be taken into account to ensure the fall arrest system is safe given their distance from the ground. Mrs Burke said there needed to be at least 1m clearance below the person’s feet after deployment to prevent a serious injury.

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BUILDING NW QUEENSLAND

The Mining Advocate | March 2013

25

Birthday bashes rock Mount Isa Resource industry representatives, businesspeople and members of the public gathered at the Mount Isa Civic Theatre to celebrate two milestones on February 23 - the 90th anniversary of the Isa and 50 years since the mining centre was declared a city. The Swinging Sixties was the theme for the function, attended by 300 people. In a novel twist, each table was named after a solo artist or band from the era and the people from Vivid Realty

claimed the $1000 door prize for best representing the Monkeys pop group, right down to the bananas and nuts on their table. Mount Isa Mayor Tony McGrady said ‘60s tribute group Green Velvet was a huge hit with the patrons, who sat down to a five-course meal with the menu printed on old 70rpm vinyl records. “It was a great night and everybody had a wow of a time,” Cr McGrady said. Highlight of the night occurred

at the stroke of midnight when about 250 people walked from the civic centre to the site of the old town hall clock, which was removed 15 years ago. Long-time Mount Isa businessman and Rotarian Bob Keoghan raised $45,000 towards a new clock and local businesses offered their expertise to install the time piece. “Guests danced to the Bill Haley and the Comets classic Rock Around The Clock as the clock

Revellers at the Mount Isa Civic Theatre toast the city’s 90th birthday.

struck midnight before heading back to the civic theatre to party on,” Cr McGrady said. Celebrations will continue throughout the year including a Back to Mount Isa function in July, and the annual show and Mount Isa Rodeo taking on 90th anniversary themes.

Cr McGrady said a reenactment of the very first Mount Isa City Council meeting on July 12, 1963 in the CWA Hall would be another highlight. “We are asking former councillors, mayors and their families to join us at the reenactment,” Cr McGrady said.

ARTful approach to answering mining needs

ART Airconditioning & Sheetmetal employees Drew Hicks and Faith McClelland with a label fresh off the laser etching machine

Providing innovative solutions for the mining industry has seen Mount Isa business ART Airconditioning & Sheetmetal staff numbers go from seven to 16 in the past five years. Merv Whitney owned and operated Bear Instrumentation for 13 years and shared a commercial land site with ART, which opened in 1998. Realising there was a synergy

between the two businesses he purchased ART, pooling the expertise of the businesses. Since then, Mr Whitney has added experienced employees with the skills to work underground and provide a measure and quote for airconditioning systems at the mine face. He has recently purchased a specialised laser cutting and etching

machine which can perform a host of useful tasks, particularly in the area of safety. When ART Airconditioning & Sheetmetal staff install electrical switchboards, for example, cable tags etched by the laser ensure people who have reason to work on the switchboard in the future will know clearly what every wire is used for.

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Isa Carpentaria projects feature

March 2013 |

The Mining Advocate

Bumper run for Century output Century mine achieved annual and quarterly production records in 2012 due to excellent plant throughput and an ongoing focus on asset utilisation, owner MMG said. The mine produced 514,707 tonnes of zinc concentrate last year - a 4 per cent increase on 2011. The company said a record 152,684 tonnes of that was produced during the fourth quarter – a 14 per cent increase on the same period in 2011. MMG Queensland operations manager Mark Adams said that the production records demonstrated the importance of the mine’s ongoing work to debottleneck and improve asset utilisation. “This annual production record, which was achieved despite a major maintenance outage mid-year, demonstrates the value of investing in efficiency and reliability across the operation,” he said.

Mark Adams MMG Queensland operations manager

“Our investments have included extensive maintenance and improvements to mine infrastructure as well as organisational changes.” Mr Adams said that MMG

would continue to focus on extracting maximum value from Century during 2013. “Building on recent operational efficiency improvements will ensure the strength of the operation as we progress through the final stages of open-cut zinc production at Century,” he said. MMG Century expects to mine lower grade ore in 2013 as mining activity starts to progress through these final stages, producing 480,000–490,000 tonnes of zinc concentrate. MMG also expects to produce 38,000-42,000 tonnes of lead in concentrate in 2013, which includes the processing of some tailings from the dam. The company is nearing completion on a scoping study to assess utilisation of Century infrastructure to process phosphate following the exhaustion of the open-pit zinc operation post-2016.

The telecommunications tower at Lady Loretta.

Photo: Roslyn Budd

Lady Loretta roll-out The Lady Loretta team aims to deliver 380,000 tonnes of ore to Xstrata Zinc’s processing facilities in Mount Isa this year, according to site senior executive Chris McCleave. The new underground zinc-lead-silver mine commenced ore production ahead of schedule in September last year and owner Xstrata Zinc recently announced plans for a production rate of 1.6 million tonnes per annum by 2016. Development work is continuing at the site, 140km north-west of Mount Isa, and Mr McCleave said commercial-scale mining was set to start mid-year, with a workforce of more than 200 people. Recent work has included installation of a telecommunications tower to provide 3G mobile service across the site. The batch plant is complete and has been handed over to the operational crew. Construction of the paste plant is also complete, with only commissioning works to finalise. The Lady Loretta deposit contains an estimated 12.7 million tonne reserve, consisting of 14.2 per cent zinc and 4.8 per cent lead as well as 84g of silver per tonne.

Will your business succeed or fail? Are you prepared for what’s coming next?

answer that question, here are a few questions to get you started.

Asks Tim Kummerfeld, Director of Launch Accounting.

> Where do you want to be in next 12 months, and then the next 3 years?

Every day I come across companies in the mining industry who have high turnover, great margins and are growing at a rapid rate.

> What do you want your business to look like?

Most of these businesses have started from the family home, which then over night have ended up with 50 employees, a fleet of motor vehicles and a workshop to go with it. Sound familiar? What you don’t generally see is the mountain of working capital required to grow so fast (usually financed by an overdraft secured by the family home and in some cases money that should be set aside to pay the businesses ATO obligations). The business will usually have inadequate policies and procedures in place and this leads to instability at the very foundations of the business. It doesn’t matter what industry the business is operating in, the principles remain the same.

These are all questions you should know the answers to or be working towards the answer for. The best safety net for your business is planning to succeed in good times and in bad rather than not planning at all. Businesses that have performed the best in all phases of the mining cycle are the businesses who were prepared. The majority of these businesses had strategic plans in place to diversify in case of a slowdown in the marketplace. They were able to respond quickly, and were able to measure the effect of their decisions within a timely manner.

Building a business is similar to building a house. Before you even start you need an architect to help you design your plan. Like a house the business needs to be built based on that plan. You don’t build your house without planning out each minute detail, so why should your business be any different? Your business needs to have strong foundations to support your framework and it needs quality materials, a good design and a competent builder if you expect it to withstand both the good and bad times. One of the most important questions you should consider is “what is your business’s strategic plan?” If you can not

> What does success mean to you?

> How would/does your business management structure look?

business plan evolve with it. Referring to and reflecting on your business plan will help you steer your business in the right direction. This is only part of the service we provide to our clients at Launch Accounting. Part of our ‘client first’ philosophy means that you won’t get billed for giving us a call. You have nothing to lose by giving me a call on 0408 153 326 for a confidential and obligation free discussion. Disclaimer: Liability limited by a scheme approved under professional standards legislation.

> What is your exit strategy?

More often than not the business plan is completed and then sits in the bottom of a filing cabinet somewhere collecting dust. The common perception is that it is only good to get bank finance, after that there is no use for it. Go back to the house analogy and think about it like this. You’ve taken the time to sit down with your architect and draw up plans for the house only to find that the builder has built the house and not looked at or used the plans at all. Your business plan isn’t just ‘set and forget,’ you should be reviewing it monthly, quarterly or at the very least six monthly with your trusted advisor. We all know business is a constantly changing environment and so should your

Director Tim Kummerfeld 0408 153 326 business@launchaccounting.com www.launchaccounting.com


Isa Carpentaria Projects Feature

The Mining Advocate | March 2013

27

Isa zinc rises to rival top dogs Xstrata Zinc’s Mount Isa operations are the fourth largest in the world for zinc output, vaulting up from 14th place in 2003. Brook Hunt and Associates estimates for 2012 show their zinc concentrate production rate sat only behind Rampura-Agucha in Chile, Red Dog in Alaska and north-west Queensland’s MMG Century mine, which is winding down in the next few years. But expansion projects and product from the new Lady Loretta mine should soon lift that production rate well above the 390,407 tonnes achieved last year. The George Fisher mine, which boasts one of the world’s largest zinc reserves, is undergoing a $274 million expansion. Xstrata Zinc chief operating officer Brian Hearne said the stepped-up production rate postexpansion – 4.5 million tonnes of ore per annum - was expected to reduce the life of the underground mine by five years to 21 years. However, the ore body remains open at depth to the north of the mine – presenting the potential for a further increase in the site’s hefty zinc reserves. The expansion project involves the development of a second hoisting shaft and associated

Technical services manager Johannes Grobler at the George Fisher expansion project drill rig.

Photo: Roslyn Budd

infrastructure to service the northern area of the mine using large diameter raise-boring technology. It also includes the installation of an underground crushing and ore handling facility and upgrades

to power and air ventilation services. An existing shaft servicing the northern end of the mine will be lined and extended by 420m to a depth of 1140m. Mr Hearne said the newly opened section of the George

Fisher mine began producing ore in October last year. Stripping and lining of shafts had begun and supporting infrastructure, such as the new materials handling system, were due to commence in March, he said. Meanwhile a $30 million works project is under way at sister operation Handlebar Hill to extend the life of mine by a year to 2014. It adds about one million tonnes of ore to the Handlebar Hill open-cut reserve. On the horizon is the potential Mount Isa Open Pit project – a

large-scale zinc-lead-copper open pit which could begin some time after 2016 and extend the life of the combined operations on the Mount Isa Mines footprint beyond 2060. Xstrata Mount Isa Mines is conducting a $47 million prefeasibility study into the potential development. A MIOP concept study completed in May 2011 indicated the potential to mine and process at least 340 million tonnes of zinc-lead ore and 130 million tonnes of copper ore.

The George Fisher mine headframe.

Photo: Roslyn Budd


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Isa Carpentaria projects feature

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The Mining Advocate

The former

Tailings a kick-start opportunity Tailings at north-west Queensland mining operations may provide a fast-track start to the state’s new uranium industry. Uranium Implementation Committee chairman Paul Bell, a Central Highlands councillor, said there were a number of cases in the region where uranium was present in the ore mined for core products such as copper and would be available for extraction from tailings dams. In addition, he said the defunct Mary Kathleen uranium mine held a substantial quantity of uranium in a capped tailings dam which the committee believed would be available for further production. “Some of the first opportunities for uranium production in Queensland might be from mining companies looking at extraction of uranium out of those tailings,” Cr Bell said. This may be a good way to restart the industry at a time

Cr Paul Bell Uranium Implementation Committee chairman

when global uranium prices were not conducive to developing new mining operations, he said. The Uranium Implementation Committee was tasked to establish a best-practice framework for the recommencement of uranium mining in Queensland after the

Mary Kathleen uranium mine.

Government’s announcement last year that it would lift the ban in place since the 1980s. The committee, which visited Mount Isa recently as part of its investigations, expects to hand its final report to the State Government by March 18. “We’re very confident we’ve had a very thorough but targeted consultation process,” Cr Bell said. “We are finalising the report with a number of recommendations to government to make sure we have adequate health and safety guidelines, adequate regulatory arrangements in place environmentally and in regards to mining, and that we can put some structures in place to help communities understand and to engage in discussion about uranium mining.”

Committee investigations included discussions in the Northern Territory and South Australia which indicated the way would be open for new Queensland uranium operations to transport their product through ports in those jurisdictions, which were already licensed to handle the product, Cr Bell said. However he said this did not exclude the potential for Queensland bulk ports to handle such trade in the future. Cr Bell said the lifting of the uranium mining ban was creating a new interest in exploration and opportunities in the Carpentaria and Mount Isa mineral province and in Mary Kathleen in particular. “Certainly one of the things we think the Government may need to look at very quickly is to look at

what it can do with Mary K and whether or not it should possibly be investigated as an opportunity for early mining because of the ease of getting into the old tailings and the presence of rare earths as well,” he said. The Geological Survey of Queensland is undertaking an assessment for the State Government of the potential for rare earths development options at Mary Kathleen, a former mine between Mount Isa and Cloncurry which ceased production of uranium in 1982. About 7 million tonnes of ore tailings is stored on the Mary Kathleen site, with an estimated content of about 3 per cent total rare earth oxides - making it one of the largest rare earth deposits in Australia.

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Isa Carpentaria projects feature

The Mining Advocate | March 2013

29

Great Australian success story Cloncurry’s employment will be boosted by more than 100 the way CopperChem is heading. That 3 per cent or so increase in the town’s employment is forecast with the advent of underground mining at the Mt Collins lease about 60km west of town towards Mount Isa. It is one of the assets purchased with the takeover of Exco in September last year, when the owners reached an agreement with listed diversified investment company Washington H Soul Pattison after an unsolicited offer. Others include the Kangaroo Rat and Salebury copper resources and the Wallace South gold deposit, all on Cloncurry’s border. CopperChem’s current productive resource is the old Great Australia mine just north of Cloncurry. The introduction of a copper concentrator to compliment the heap leach operation and implementation of mine sequencing to keep both facilities

working to capacity are credited with bringing CopperChem into profitability. There are a few big ticket items at the top of the company’s “to do” list. The first development priority is the Collins lease. “This will be the first underground mine for the company,” chief executive officer Brendan James said. “We will start mining in January 2014, with the first ore being delivered by April 2014.” “We are certainly looking for people in the region and to attract people to the Cloncurry region to fill places. “It is very important to be a part of the region you’re in and that the people in your mine are committed to your region being successful. That process has already begun. “We recently went from contract crushing (at the Great Australia mine) to our own team and have sourced all 12 jobs locally. All replacements from there on in will be made locally.”

Steve Cocks bags copper sulphate pentahydrate crystal at the CopperChem plant. Photo: Graham Wharton

That’s also the case Mr James makes for the new underground operation and it is an offer extended to the local indigenous people, the Mitakoodi. “We want to support and facilitate that local

Tried and tested team leader There’s a new knight at Cloncurry’s round table. CopperChem chief executive officer Brendan James has slayed the debt dragon at one of the North West’s older mines, Great Australia. The beast that grew to a whopping $32 million in the 2011 financial year now lies beaten and bleeding at his feet with a sword at its throat. Mr James practised his killer blows with the big miners and learned subtlety and restraint with the smaller companies. As a greenhorn engineer he was with Straits Resources at Girilambone

in central western New South Wales mining copper working on shift. It was a good start and something missing in the education of young engineers today, he said. He had various roles with the then WMC-owned Olympic Dam and later was global head of Rio Tinto’s hydrometallurgy technical group. The experience of seeing how small and large companies were run gave him perspective, Mr James said. “Both have attributes,” he said. “You need to understand what you can do with significant funding capital and what you

resource of five million tonnes and is being considered as a stand-alone operation. CopperChem produces copper chemicals including copper sulphate.

involvement as much as we can,” Mr James said The company’s big “sleeper” project is the Turpentine Deposit, about 120km north of Cloncurry, which has an identified copper

have to do when you don’t (have that).” From there it was on with a suit and tie as a partner with fund manager Perennial in Melbourne, whose assets included an underperforming operation in Spain. This was a chance to test his mettle and he once again donned the reflective gear as managing director to take the uranium project back into profitability. The last six months as CopperChem CEO has seen a similar turnaround. The operation recorded a profit early in 2013 despite a high Australian dollar and a lacklustre copper price.

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Isa Carpentaria projects feature

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The Mining Advocate

Altona maintains rosy outlook Altona Mining aims to lock in financing for its $320 million Roseby copper-gold project by mid-year, allowing construction to kick off before the next wet season. The company is in the market for a partnership deal after Xstrata Copper in January announced it would not exercise its option to purchase 51 per cent of the north-west Queensland project. Altona managing director Alistair Cowden said the Xstrata decision would not affect the timeline for the project and, if anything, had improved its outlook and allowed his company greater flexibility. “Xstrata would have their agenda, and only they can speak to that, but it would probably fall around feeding the Ernest Henry mills and the best thing for the (Roseby) project is to have something there to fully exploit all the resources,” he said. “I think that’s a better deal for everyone - for Queensland, for the company and for the region.” Roseby, a 65km drive north of Cloncurry on the Burke Developmental Rd, boasts a resource of 1.52 million tonnes of contained copper and just under 400,000oz of gold.

Alistair Cowden Altona managing director

Altona has completed a feasibility study focused on mining and processing ore from the 100 million-tonne Little Eva deposit within that project area, with a resource of about 540,000 tonnes of contained copper and 270,000oz of gold. “Essentially the strategy is to look at this asset in a very simple way – one very large pit with very simple metallurgy, very simple mining and quite large scale,” Mr Cowden said. “That is how we’ll start up and once we get going we’ll look to expand by exploiting the

other resources in the area.” Mr Cowden said Little Eva would be a seven-million-tonnea-year operation – producing just under 40,000 tonnes of copper and about 17,000oz of gold annually. Altona hopes to secure financing certainty by the middle of 2013, allowing a go-ahead decision in the second half of the year and a start to construction before the next wet sets in. “We were not unaware that these days were coming and we didn’t count at all on Xstrata doing anything – so we’ve got the project essentially developmentready,” Mr Cowden said. “The native title arrangements with the Kalkadoon people are in place, the environmental permitting is completed and mining leases are granted. “It may sound a little flippant – but it really is a case of just add money and we can start building it.” Mr Cowden said Altona would be encouraging a local workforce as much as possible, although Roseby was a little far from Cloncurry for an easy commute by road and would include an onsite village. While he expected to see some people based in Cloncurry as a

The Mt Roseby area at the centre of Altona’s copper project.

lifestyle preference, the reality was that much of the 300-strong workforce would be likely to be fly in-fly out miners, he said. While Altona was a strong company with a producing mine in Finland, it required backing from another party to start up Roseby, Mr Cowden said. He said Altona had received a lot of interest from other potential partners in the project since Xstrata opted out, ranging from smelters in Asia to various

financial groups and other mining companies. The main consideration was to create value for shareholders, with a potential sale of the project among the options, Mr Cowden said. “Clearly a partnership arrangement where we can continue to build and manage the project is our preference. But if it’s a good deal and it makes money for shareholders, you take it,” he said.

Ivanhoe Australia is creating a long term future in North West Queensland, developing multiple mining projects in gold and a variety of base metals. With clear priorities and goals established for both Exploration and Operation, Ivanhoe Australia continues to progress as both an explorer and producer. With an exciting portfolio and a vision to build a substantial Australian based company focusing on the exploration, and development of major copper-gold, molybdenum-rhenium and uranium deposits , it is another step in our enduring partnership for prosperity with this great Australian region. For further information visit our website www.ivanhoeaustralia.com


Isa Carpentaria projects feature

The Mining Advocate | March 2013

31

CuDeco gear not run of the mill CuDeco’s new ball mill has arrived from China as construction work powers ahead at its $250 million Rocklands group copper project outside Cloncurry in north-west Queensland. The mill - produced by Citec - is 5.8m in diameter, 8.5m long and will crush 375 tonnes of ore an hour when installed. CuDeco logistics manager John Green said its shell had been transported in five parts – two end pieces weighing up to 60 tonnes each and three barrel pieces weighing 35.5 tonnes each. “This is the single biggest component of our processing plant. It has been custom made in China – you can’t just buy it off the shelf,” he said. Mr Green said the company was also importing one of the largest scrubbers seen in Australia for its Rocklands processing plant, which is expected to be commissioned in early 2014 to kick off commercial production. The processing plant to be installed at Rocklands will have a capacity of three million tonnes per annum and will produce

copper-gold, cobalt-clean pyrite, native copper and magnetite concentrates. On-site work is already well under way, with construction of the 500-tonnes-per-hour primary and secondary crushing circuits starting shortly after the Christmas break. Mr Green said the relatively dry wet season in the Cloncurry area had been a boon for earthworks and other site development activities at the Rocklands mining leases – which have seen up to 1m of rain over similar periods in previous years. Construction activity is expected to peak in the third quarter of this year, when Mr Green said the on-site workforce would reach about 400. Meanwhile, he said construction on a planned multiuser rail load-out facility for the region was expected to begin mid-year. CuDeco, Xstrata and MMG have entered a joint venture to fully fund construction of the facility about 8km east of Cloncurry.

The finished ball mill before shipment to Australia.

Golden deal for Lorena start-up Cloncurry could see a new gold operation up and running by the end of the year after Malachite Resources recently entered an agreement with BCD Resources to develop the Lorena deposit. The agreement would see the companies act in joint venture to develop and operate the Lorena gold mine, 15km east of Cloncurry, with BCD to fully fund and develop a flotation processing facility on site to commence

commercial gold operations by the fourth quarter of 2013. Concentrate would be processed at BCD’s Beaconsfield treatment plant in Tasmania to produce gold dore. Lorena has a total JORC mineral resource of about 56,000oz of gold at a 2g/tonne cut-off grade. The heads of agreement between Malachite and BCD is subject to completion of due diligence by both parties.

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Isa Carpentaria projects feature

March 2013 |

ADVERTORIAL

Better bulk haulage for North Queensland Life has gotten a whole lot better for bulk commodities exporters from the Port of Townsville. The introduction of “rotainers�, rotating halfheight containers, is one of the solutions that has addressed the perception of dust escaping to nearby inner-city suburbs. Townsville Bulk Storage and Handling (TBSH) was the first in North Queensland to use halfheight systems in their bulk material handling operations. “The bulk material is transported from mine to vessel in sealed half-height containers,� TBSH joint owner Peta Connelly said. “This minimises product loss through the export chain and cuts out the need for stockpiles.The system

reduces costs for both operations.� Peta and her partner and co-owner Dewayne Cannon founded TBSH four years ago.They now have 13,000sq m under roof at Port of Townsville and another 6000sq m warehouse being developed which allows Type 2 triple road trains direct access from the new Port Access Rd.They also have 30,000sq m hardstand to accommodate containers and break bulk cargo and provide an approved imports and exports depot. The company employs more than 70 staff including their own highly skilled stevedoring crew. They can immediately provide capacity by calling on their large fleet of prime movers to haul containers

from the North West Minerals Province for export, and count miners among their long-term clients. Ms Connelly said the reason for client loyalty was TBSH’s commitment to providing quality and ongoing improvements to services. “We place a priority on safety management and environmental compliance to stay ahead of expectations,� she said. “This is the sort of reporting that operators at modern ports need to be aware of. We are also very conscious that there is nothing more important for the client than to track the movements of commodities through the export chain and our commitment to accurate reporting is something we are recognised for.�

The Mining Advocate

New man at the helm Chinalco Yunnan Copper Resources has appointed Paul Williams as the new managing director, following the retirement of Jason Beckton from that role in late 2012. Mr Williams has spent the past few years working in Mitsui’s coal division and previously worked for 17 years as a commercial lawyer with Brisbane firm Hopgood Ganim and two years as chief executive officer of Eastern Corporation (now known as Galilee Energy). Mr Williams said that he was privileged to be appointed to a senior management role at a company within the Chinalco/ Yunnan Copper group. Chinalco Yunnan Copper Resources’ interests include the Elaine copper-gold project in

north-west Queensland, where a JORC inferred resource of 27.7 million tonnes containing 147,000 tonnes of copper and 75,000oz of gold was defined in 2012.

Paul Williams Chinalco Yunnan Copper Resources managing director

Bedourie district land release The State Government is releasing three new areas of land in northwest Queensland for mineral exploration. Natural Resources and Mines Minister Andrew Cripps said the 2364sq km of land was near Bedourie within Restricted Areas 351, 353 and 354 which currently preclude any exploration activities. “Recent airborne geophysical and ground gravity survey data collected as part of the Queensland Government’s $20 million Smart Exploration program has indicated the area is potentially rich in a range of minerals and rare earth elements,� he said. “That’s why the Government intends to repeal Restricted Areas 351, 353 and 354 in July 2013 to allow companies to apply for exploration permits for minerals.�

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Isa Carpentaria projects feature

The Mining Advocate | March 2013

33

Switch for Isa’s energy aspirations The Diamantina Power Station will mark a real change of scenery for energy generation in Mount Isa, according to newly appointed manager Mark Magnowski. Mr Magnowski left a position with Alinta Energy in Perth to take the helm at the new combined-cycle gas-fired plant being built near the 50-year-old Mica Creek Power Station. “I saw it as a great opportunity,” he said of the move. “It doesn’t happen very often that you have the chance to start a new operation - a greenfield operation with the latest technology, very much what you can buy from the top shelf at this time. So it’s exciting times.” Diamantina Power Station will comprise two 121MW power trains - each consisting of two 40MW Siemens SGT800 gas turbines, two NEM heat recovery steam generators and one 40MW SST-400 steam turbine. It will be fitted with air inlet chillers which will maximise power output and efficiency of the turbines regardless of ambient air temperature and humidity. Mr Magnowski said the plant would have a fully automated operating system and boast very high efficiency. As well as offering the north-

west mining region a reliable long-term electricity supply, he said the plant owners believed that the region had great potential for expansion. “We are building an additional 60MW power station next door called the Leichhardt Power Station and this is to provide a back-up power supply as well as potentially being available to meet additional demand,” he said. On-site construction work is set to peak in March/April, with a workforce of about 350 people. Mr Magnowski said in late A recent view of progress at the Diamantina Power Station construction site at Mount Isa.

generators were being assembled and the cooling tower was being built. The team was on track to have some 80MW of

On-site construction work is set to peak in March/April with a workforce of about 350

Mark Magnowski Diamantina Power Station manager

February the two gas turbines were in position for the first train, the heat recovery steam

power available mid-year as planned, with the total 242MW due to come online in mid-2014, he said. Diamantina Power Station joint project owners APA Group and AGL Energy also

plan to bring the open-cycle Leichhardt Power Station online in mid-2014. While the move from Western Australia was a large geographical leap, Mr Magnowski said it was “no big change” for he and wife Ada. The pair lived in Mount Isa from 1989-1997, when their two children were schooled in the city. “We both have very good memories of the Isa,” he said. Mr Magnowski worked in Xstrata Mount Isa Mines mining and construction operations and then at Mica Creek Power Station in that time.

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Isa Carpentaria projects

March 2013 |

The Mining Advocate

Shale rights shuffle Xtract has assigned its oil shale rights in a package of Julia Creek tenements to Global Oil Shale Group in a deal including a shares package, royalties and $50,000 initial cash payment The Julia Creek tenements cover an area of 709sq km and contain JORC indicated and inferred resources of 2.18 billion barrels of shale oil at an average grade of 61 litres per tonne at zero moisture (LT0M). Global Oil Shale Group executive chairman Petri Karjalainen said the company had extensively

evaluated the Julia Creek opportunity and felt confident its low emission Kerogex/Kerocon beneficiation approach, coupled with partnerships with leading providers of proven oil shale processing technologies, provided a strong basis for a commercial development of the Julia Creek deposit, subject to local permitting. “Furthermore Julia Creek will complement well our other oil shale developments in Jordan, Morocco and Israel with a key aim of using oil shale as a source for longterm environmentally

sustainable production of petroleum and other value-add products,” he said. The Newman Government recently announced it would allow the development of a commercial oil shale industry in Queensland under strict environmental conditions. Blue Ensign Technologies also holds an oil shale resource near Julia Creek containing total indicated and inferred resources equivalent to 895 million barrels of shale oil producible.

Armour targets NQ Shale gas explorer Armour Energy plans to start drilling in April at a 7128sq km (1.76 million-acre) exploration tenement granted in the lower Gulf area about 500km noth of Mount Isa late last year. The company has engaged Silver City Drilling to carry out drilling for its 2013 exploration program in North Queensland and the Northern Territory. Armour said the program would commence in the recently granted ATP 1087 area in North Queensland, targeting the highly prospective shale gas

potential of the Lawn Hill formation. Armour Energy’s 2013 drilling plans also include exploration of a newly identified regionally extensive shale gas play within the Riversleigh shale formation. The company said this shale was a stratigraphic equivalent of the Barney Creek Shale in the McArthur Basin, Northern Territory, over which Armour holds tenements and applications over 125,000sq km.

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The Mining Advocate | March 2013

Isa Carpentaria projects 35

Mt Gordon game plan AMC Consultants have completed a scoping study to develop mine design for Aditya Birla Minerals’ Mt Gordon operations. The scoping study demonstrated that a fourmillion-tonne-per-annum mechanised sublevel cave mining operation may be economically feasible, Aditya Birla said. Aditya Birla said the design extended over the Mammoth

Surrounds, Mammoth Deeps, Mammoth North, Esperanza Pluto, Esperanza South and Green Stone deposits. Underground mining at the Mt Gordon copper operation, about 120km north of Mount Isa, is currently carried out using the longhole open stoping method. “The completion of the scoping study marks a significant milestone for Mt Gordon operations

and Aditya Birla Minerals … the study indicates that Mt Gordon might produce approximately 4mtpa for nine years with a total life of mine of 16 years,” the company said in a statement. Further work is being carried out including a strategic review by ANZ Bank to advise management on various strategic options based on the scoping study results.

ADVERTORIAL

The recently opened Discovery Parks village in Cloncurry.

A little further north Discovery Parks has expanded its operations into Darwin with the acquisition of Shady Glen Tourist Park, centrally located near the airport. The acquisition of the Darwin site continues the company’s move into offering a variety of accommodation for tourists, long-term residents and, more recently, workforce villages located in Australia’s resource areas. The new site in Darwin was purchased with an eye to expansion. The site boasts 90 four-star studio rooms and cabins with kitchenette facilities, queen-size bed, ensuite bathroom, airconditioning, TV/DVD and wifi access. The cabins are less than three years old and many are new. Discovery Parks plans to expand the site to accommodate additional ensuite Shady Glen Tourist Park in Darwin. rooms and a dining hall facility in the near future. The Darwin acquisition follows workforce and corporate-oriented sites coming online in Mount Isa, Cloncurry, Blackwater, Biloela and Emerald over the past few years. Business development manager Robyn Sefton said corporate and workforce villages now represented a substantial part of the business. “The expansion into resource areas has been a successful strategy offering continuity of occupancy to be able to cater for larger workforce numbers in one place and provide a wider range of accommodation options,” she said. “But we have retained a mix of clients with tourists and permanent residents still catered for.” Discovery Parks owns and operates more than 30 parks across Australia.


36

Isa Carpentaria projects feature

March 2013 |

The Mining Advocate

Rare opportunity for Krucible Krucible Metals is intensifying its focus on the rare earths potential of its north-west Queensland tenements as it moves on from the Korella project. The Townsville-based exploration company recently reached a $12 million agreement to sell 13 proven and potential phosphate tenements, including the Korella project, to fertiliser manufacturer Daton Group Australia. While focusing its efforts on that project, managing director Allan Branch said Krucible had also been building its knowledge of rare earths after discovering yttrium and others during exploration in the region. With the political manipulation involved in the rare earths market and recent prices not so high, Mr Branch said he had held some concerns about focusing company resources in that area and recently decided to “really dig in” and analyse the industry. “I came out of that analysis really excited because I’m convinced now that it’s really worthwhile being in,” Mr Branch said. Krucible received approval in August 2012 for the mining lease for Korella, where it had established an inferred resource of 5 million tonnes at 30.8 per cent phosphate. The site also hosts yttrium. Krucible invests about $1 million a year on its exploration program, which Mr Branch said would now have two key avenues - rare earths plus base and precious metals. A Krucible tenement called Yttrio and one under application called Coorabulka are prospective for rare earth elements including yttrium, neodymium and strontium.

Mr Branch said many rare earth elements were actually quite prevalent – but it was rare to find commercially exploitable sources. He said China, which supplied about 95 per cent of the world’s rare earths, had openly wanted to control the market. But attempts to manipulate price by limiting exports had seen only a short-term spike before prices dropped again, despite the apparent demand. After researching the area, Mr Branch believes this was because much of the rare earth exported went into consumer products such as cell phones and super magnets for small motors in household appliances. “Consumer products are a commodity and they have a price ceiling themselves,” he said.

Yttrium material from the Korella deposit near Incitec Pivot’s Phosphate Hill operation in north-west Queensland.

“This has been happening for two or three years now and that’s long enough for some of those companies to find alternatives and therefore not buy the rare

earth,” Mr Branch said. “That’s why lack of supply from China hasn’t driven the price up like they expected. Just very recently China has realised

that and instead of stopping supply now they’re trying to encourage it – so the market should stabilise at what the demand price is.”

Allan’s first passion was robots

Allan Branch Krucible Metals managing director

“Such consumer items, if they become too expensive people just don’t buy them.” The manufacturers had initially paid more for rare earths but then began looking for alternative suppliers or alternative technological solutions that did not require rare earths.

Allan Branch may be delving into the world of mining now, but his business career began with robots. A mobile educational robot developed in 1979 – the Tasman Turtle – kicked things off for the technology enthusiast from the Apple Isle. “I started out as a hi-tech nerd - didn’t even own a suit,” Mr Branch said. “I invented this robot and discovered demand for it around the world.” Mr Branch went on to run several companies pioneering smart mobile robot technology, including Denning Branch International, and has advised a raft of major manufacturers in the field of robotics development and use. He said his achievements had included developing the first autonomous navigation system and the first autonomous household robotic vacuum cleaners (Florbot for General Electric in 1989 and D’Entrecasteaux for Moulinex in 1991). After being immersed in that field for years, he said he had come to the realisation that there was no great

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market for robots – as sexy as the technology seemed. “That was a huge shock for me because I had lived and breathed robots for about 18 years,” he said. Mr Branch said he had been able to turn his company-building expertise to a new career as a corporate manager – work that has taken him all over the world to turn around “stressed”companies. He said these had included biotechs in Zurich and Pittsburgh, dotcoms in Chennai and San Jose, multimedia in Sydney and Los Angeles, retailing, construction, medical technology, management services and non-profit organisations. Mr Branch said he had returned to Tasmania a few years ago for family reasons and worked for a string of companies including Hobart-based mining company Creat Resources Holdings before taking up his role with Krucible Metals in May last year. In this case the Townsville-based company was not stressed but was at a stage where it needed to commercialise some assets to ensure continued operations, he said.


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