The Mining Advocate November 2013

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NEWS

The Mining Advocate | November 2013

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COVER IMAGE: Holcim quarry operations in Bohle, Townsville. Photo: Allison Bessell

November 2013

FEATURES

3 Tungsten groove

10 Whitsunday Major Projects Summit

North Queensland operations look set to ride a wave of increased tungsten demand as users seek supplies of the metal outside China.

12 Our Mining Heritage

4-5 Memorial day

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

With Queensland honouring those workers lost in mining accidents over the years, a retired union inspector shares his painful recollections of one of the darkest days in the state’s coal industry history.

Queensland’s

15 Industry Update - Hard Rock A comprehensive wrap of exploration and operations in Queensland and the Northern Territory.

leaders in

9 Hot performance

safety...

The mine rescue team from Glencore’s Oaky Creek North operation has seized victory for Queensland after battling it out in 39-degree heat at the recent Australian Mines Rescue Competition.

• Safety Audits and Compliance Reviews

18 Living Remotely

• Safety Management Systems Development

19 Building Mining Communities

10-11 Burning issue The fate of Abbot Point coal export expansion plans took centre stage when Bowen hosted the Whitsundays Major Projects Summit recently.

16 Between Shifts

Professional and practical solutions at www.csmsafety.com.au

20 Logistics

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21 Business to Business

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22 Roads – design, construct, maintain

31-36 Rock solid A look at our quarrying industry’s achievements, capabilities and challenges to mark the successful staging of the IQA 56th Annual Conference in Townsville recently.

30 Industry Profiles 31 IQA 56th Annual Conference

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It’s tungsten’s time to shine Queensland mines are ready to capitalise on increased demand, writes Dominique Kimber Tungsten could become the next big commodity for Queensland as demand for the metal increases worldwide and users look to diversify their supply away from China. Senior resource analyst for MineLife, Gavin Wendt, says low commodity prices over the past 20 years saw many mining operations in Queensland shut down, but that a recent lack of supply in the market has opened up fresh opportunities. “What you had for the better part of the last two decades was very low tungsten prices. Mining operations not only in Queensland and Australia but worldwide were shut down as a result of poor economics,” he said. “As a result, China emerged as the world’s biggest supplier and, like a lot of commodities, China has pretty much a monopoly on the market at the present time. “The potential for the tungsten industry (in Queensland) is sizeable. Historically the big commodities so far are things like coal and copper.

Gus Phillips

The processing facility at Wolfram Camp tungsten mine in North Queensland.

Wolfram Camp CEO

“Equally I can see tungsten as being the next big thing, not necessarily on the same sort of scale because we’re talking about smaller operations and smaller overall revenues, but it is a metal that we’re finding greater use for and there are new sources of demand opening up all of the

time. At the moment it’s China filling the void, but Australia and Queensland could certainly play a part in filling that void into the future.” Bamford Hill and Wolfram Camp - considered key mining centres for the world’s supply of tungsten before World War I - are among the North Queensland sites in line to fill that demand. Deutsche Rohstoff wholly owns the two adjacent tungsten deposits. Wolfram Camp’s operations produce between three and four tonnes of tungsten concentrate per day, with the site being one of the few tungsten mines

operating outside of China. Wolfram Camp chief executive officer Gus Phillips says the area also holds significant exploration potential. “Wolfram Camp at this stage without further exploration is about a five-year life, but future exploration potential is huge,” he said. “Bamford Hill, which is located about 30km from Wolfram Camp, is almost a mirror image of Wolfram Camp. There’s very, very good potential for us to stay out here for the next 10 years. “Bamford Hill I would anticipate coming into the

schedule within about two and a half years.” Carbine Tungsten is another company focusing on tungsten production in North Queensland. The company’s flagship project at Mount Carbine, north-west of Cairns, aims to become one of the leading western producers of tungsten concentrate through its tailings retreatment project, which commenced production in 2012, along with the re-awakening of the hard rock open-cut mine, which is scheduled to commence production in 2014.

Greenfields goal in sight The open-cut tungsten mine at Wolfram Camp, in the Dimbulah district.

Tungsten Tungsten, formerly known as wolfram, is used in an array of industries as well as in many day-to-day products and appliances. Tungsten has the highest melting point of any metal, which makes it an attractive commodity for industry. Tungsten is commonly used in the following industries: • High-speed tools • Lighting technology • Electronics • Power engineering • Automotive and aerospace industries • Medical technology Tungsten can also be found in day-to-day items such as: • Light bulbs • Mobile phones • Television sets • Microwave ovens • The balls on the end of ball-point-pens Source: International Tungsten Industry Association

Vital Metals’ Watershed project could become Mr Strizek said the project was aiming for at Australia’s first greenfield tungsten project to come least a 10-year mine life with the potential for online in more than a decade if all goes to plan. more than 100 jobs in the production phase of “With the Watershed project we definitely think operations. that we’re well-placed to make the goal of being the As with any mining project, for every direct first greenfields tungsten project for more than a job created there would be multiple indirect jobs generation,” managing director Mark Strizek said. stemming from the activity, he said. “There is obviously Wolfram “We believe there is about Camp and Mount Carbine but an 18-month time period for they are brownfields projects. construction from go. That “With the recent securing of allows some time for wet our environmental approvals, season delays and those sorts of we’re well placed to make it things,” Mr Strizek said. happen. We need to finalise “It wouldn’t be unrealistic to our bankable feasibility study, say there will be some activity but in regards to some of the by the end of 2014 with some major environmental approvals product coming out 2015-16. we’ve been able to tick that box. • Confined Space Entry “At this stage our goal is a “We have the endorsement of 10-year mine life. Systems and Support the Queensland Government “A lot of these projects and by the Department of • Locum Safety Advisors though, once you get started Environment and Heritage you can often find additional • Safety Training and Protection. We expect that the resources which may lead to an Education mining leases will be granted increase in mine life.” before the end of the year and Professional and practical solutions at Other Australian tungsten these are major pieces of the www.csmsafety.com.au projects include Thor Mining’s puzzle when getting a resource Molyhil deposit, an advanced project online. I think we’re on sales@csmsafety.com.au tungsten/molybdenum project track, we think we will be the Ph: 07 4723 7652 first in Australia.” in the Northern Territory

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NEWS

November 2013 |

The Mining Advocate

Miners memorial Government and union are at odds over safety legislation, writes Dominique Kimber. Proposed changes to mining health and safety legislation proved to be a topic of hot debate at this year’s Miners Memorial Day service. Natural Resources and Mines Minister Andrew Cripps and CFMEU health and safety rep Greg Dalliston raised the issue at the service. A regulatory impact statement released by the Queensland Government in September has put forward a number of mining safety legislation reforms. Mr Cripps said the proposed changes were necessary as the mining industry evolved. “We’re spurred on, particularly on days like Miners Memorial Day, to increase our efforts to stay ahead of the game in terms of the safety framework that we have in our resources sector,” he said. “One of the things we’re doing to try and stay ahead of the game, as far as changes, is in the way we operate on Queensland mining sites. “There’s very significant changes that are proposed in relation to the movement of additional positions on mine sites to be statutory positions to ensure that there are experienced and competent

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people who are in charge of safety requirements on Queensland mine sites. “We’re talking about increasing the number of industry safety and health representatives that will be appointed in the coal industry. “Critically, we’re talking about the amalgamation of the health and safety frameworks for both mine employees and contractors on mine sites. Increasingly there’s

more contractors operating on mine sites.” Mr Dalliston said the union had raised a number of concerns with the proposals, including the reduction of power for district union inspectors. “These reforms put more workers at risk,” he said. “District union inspectors like me are here to protect workers, and they’re trying to take the power away from us. “Workers come to us with their problems and we action them. But at the end of the day if the mines do nothing wrong we don’t try and stop the mines from what they’re doing. The reforms are only in the impact statement phase but the Government doesn’t put out a document for nothing. If they didn’t want to go ahead with it, it wouldn’t be put in the document.” Mr Cripps said the statement was open for discussion and that the department would happily receive feedback within the designated timeframe. “All I would say is that I hope that we would have a mature and informed debate about the proposed changes so that we can make sure that the changes that we do make to the legislation are the best for safety outcomes in the Queensland resources sector,” he said.


NEWS

The Mining Advocate | November 2013

- Queensland pays tribute About 100 people attended the sixth annual Queensland Miners Memorial Day service in Townsville to remember 1470 mine workers who have lost their lives over the last three centuries of mining in the state. Each year the memorial is held on the anniversary of Queensland’s worst mining disaster, which occurred at the Mount Mulligan coal mine, west of Cairns, on September 19, 1921. State Natural Resources and Mines Minister Andrew Cripps attended the service and described the event as an important day on

the mining calendar. “In particular, we remember the 75 miners lost in Queensland’s worst mining disaster which occurred at the Mount Mulligan coal mine in far north Queensland on September 19, 1921,” he said. “We also pay tribute to those Queenslanders who lost their lives in other mine accidents, including the most recent fatality in North Queensland, which occurred on August 26, 2012, at the Mt Moss iron ore mine, 150km north-west of Townsville. “For mine workers, families and friends today is about

gathering to remember those who have contributed so much to Queensland’s growth and prosperity.” Mr Cripps said although Queensland had one of the safest mining industries in the world, there was always room for improvement. “We need to ensure we continue to review our procedures so we can best protect our mine workers from the hazards associated with the mining industry,” he said. “As a result, we are delivering reforms to further enhance Queensland’s mine safety framework.”

Bill still feels pain of loss Bill Allison has seen some of Queensland’s worst mining disasters unfold over the last 40 years, but August 7, 1994 sticks out as one of the hardest days of his career. Mr Allison is a retired District Union Chief Inspector, a role which placed him in dangerous situations and as witness to some of Queensland’s worst mining accidents. “I was involved in all of the major disasters in Queensland bar the Mount Mulligan one,” he said. “Moura No.2 was the worst disaster for me because it just shouldn’t have happened.” The Moura No. 2 explosion took the lives of 11 mine workers - 11 men Mr Allison says should still be alive today. “All the information that they had at the time showed that that section of the mine was going to go through the explosive range,” he said. “There were all of the elements

needed for an explosion. Knowing all that, they still sent the men underground.” Mr Allison said that following the Kianga mine explosion of 1975, he had pushed hard to make chromatographs available on mine sites. The chromatograph is a device used to analyse the atmosphere in underground mines and as a way of checking it is a safe environment for workers to enter. “At the Moura No.2 mine they had a gas chromatograph on site that they didn’t use. That chromatograph would have established for certain that there was a heating in that part of the mine which was hot enough to ignite methane. It wasn’t used,” Mr Allison said. Mr Allison received a phone call on the evening of the explosion to advise him of what had happened. “I caught a charter plane to the mine, and we knew that there was going to be a second explosion so we couldn’t send a rescue team

down the mine,” he said. “So we had to just wait for the second explosion which occurred about 30 hours later. “We had to make a decision to seal the mine and we couldn’t recover the bodies. “Even if they weren’t killed by the blast we knew they would have been killed by the fumes.” Mr Allison says that his career as an inspector has certainly left its mark on him personally. “You can’t describe how it feels to face families, especially when the accidents could easily have been prevented,” he said. “Women losing their husbands, children losing their fathers - it’s just terrible. You can’t totally understand the feeling of the families but you do still feel it. I’ve lost many friends. “That’s partly why I took early retirement, I’d just seen enough. “It’s upsetting for me and I must admit I shed a tear at the memorial, it just brings back hard memories.”

“It’s upsetting for me and I must admit I shed a tear at the memorial, it just brings back hard memories.” Bill Allison

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REGIONAL ROUND-UP

November 2013 |

The Mining Advocate

Pentland

Townsville

A consortium led by GHD is evaluating the viability of a proposed baseload power station and irrigated agriculture precinct west of Townsville. Regional development body Townsville Enterprise recently named the group as the winning tenderer for the Pentland project feasibility studies, backed by $2.5 million in funding committed by the former Labor federal government. GHD North Queensland operations manager Jose Foruria said the studies - due for completion by the end of 2013 - should be viewed as a trigger for renewed investment in large scale projects across key pillars. “Australia’s business and political leaders are pivoting their development focus to northern Australia, and more than any time in recent history we need to leverage the potential in this region to drive economic growth,” he said.

The Port of Townsville’s $85 million Wharf 10 redevelopment and Quayside terminal project would help Queensland’s economy grow by ensuring business, tourism and the defence forces were better served, Treasurer Tim Nicholls said. Mr Nicholls was commenting on the recent official opening of the facilities - funded by the State and Federal governments, Townsville Regional Council and the Port of Townsville. Port of Townsville acting chief executive officer Ranee Crosby told the Townsville Bulletin that the project had lived up to its hype - with dozens of cruise, military and commercial vessels already lined up to visit. “This facility really cements Townsville’s capacity as a mature destination for the diverse sectors Townsville is renowned for catering to,’’ she said. Townsville is one of five major ports being considered as priority ports for development under the State Government’s draft Queensland ports strategy.

Mount Isa

Bundaberg

The $570 million Diamantina Power Station has delivered its first electricity to the North West Power System as construction on the site continues. The power was generated using one of four Siemens SGT-800 gas turbines in the 242MW combined cycle plant, being developed by APA Group and AGL Energy. APA says progress is also being made with the construction of the adjacent 60MW Leichhardt Power Station. Full commissioning is expected by mid-2014.

Australia’s largest catchment-scale flood hazard mapping study was unveiled at the recent Engineers Australia Central Regional Conference in Bundaberg. The New Era - Regional Flood Mapping report was presented by its author, flood engineer Joanna Tinnion, at the conference – which attracted more than 100 people. Engineers Australia Bundaberg Committee chair Ben Taylor said the report shared innovations to conduct broad-scale flood modelling to allow a better understanding of floodplains, particularly in rural and remote locations. “New advances in flood modelling and ground surface data collection play a critical role in helping engineers, land planners and emergency services to better prepare for, and respond to, floods,” he said.

Roma Construction work has started on a $15.6 million flood levee to safeguard Roma. Jointly funded by the Maranoa Regional Council and the State and Federal governments, the first stage of the levee will extend 4.9km from the north of the airport to the eastern side of town along Bungil Creek and protect about 420 homes.

Miles Miles is set for a population surge after Western Downs Regional Council approved a Landtrak Corporation plan for a 3000-bed accommodation camp for the town, The Chronicle reports. Councillors voted 5-4 in favour of approving stages one and two of the project, to be built on Laycock Rd, with division over plans to cart the water required to service the camp.

Ostwald Bros was the successful bidder for the $10.4million project to design and construct the embankment from the Roma Airport towards Lovell St. Chief executive officer Brendan Ostwald described the project as being close to the heart of the Ostwald Bros team, saying his family had been personally touched by the flood events in recent years.

Cloncurry The Cloncurry airport has received State backing for an upgrade as Virgin Australia kicks off a twice-weekly non-stop service between the mining centre and Brisbane. Virgin Australia chief commercial officer Judith Crompton described Cloncurry as an important regional centre that had seen strong growth in the agricultural and resources industries. Meanwhile the State Government has awarded Cloncurry Shire Council $500,000 in Royalties for the Regions funds to upgrade the Cloncurry Regional Airport Terminal. Deputy Premier Jeff Seeney said passenger numbers passing through the airport had climbed from 27,000 in 2009 to 61,000 this year and were expected to top 100,000 in the next two years. Cloncurry Mayor Andrew Daniels told The North West Star the first step in the planned $3.6 million upgrade would create more stopping areas for planes and ensure the tarmac could bear heavier aircraft.

Toowoomba

Skytrans will operate daily flights between Toowoomba and Roma on weekdays from January 13. Skytrans managing director Simon Wild said a Department of Transport and Main Roads review had paved the way to launch the new regional service. “In partnership with local council, we lobbied vigorously for this change to occur and while today’s announcement is great news for Skytrans, so too is it a win-win for people living, working and doing business in the Darling Downs and south-west Queensland regional communities,” he said. “With the outcomes being greater productivity and convenience, our service will effectively slash travel times from a four-and-a-half-hour drive to a one-hour flight. “It also underscores our commitment to Toowoomba as a key aviation hub that currently operates daily services to Sydney and key regional centres on TMR’s Q Connect Network.”

Chinchilla ready to go with the (Kenya) flow QGC has marked a $1 billion milestone with Queensland Deputy Premier Jeff Seeney inaugurating its Kenya Water Treatment Plant, about 35km south-west of Chinchilla.

The plant - built by a consortium of GE Betz and Laing O’Rourke Construction - purifies water that generally would otherwise not be available for crops or drinking because

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it is too salty. Companies that extract such water, contained in coal seams, when sourcing natural gas are obliged to treat it for use in agriculture, industry and town supply. The plant, which involves an investment by QGC of more than $1 billion in water infrastructure, can treat 92 megalitres a day and will be supplying water to about 20 landholders and the town of Chinchilla in south-western Queensland. It is the first of two such plants that form part of QGC’s Queensland Curtis LNG Project, which is scheduled to begin exports in 2014. SunWater built and operates the 20km pipeline that transports treated water from the Kenya plant to landholders and Chinchilla Weir. SunWater took out the top regional award in the 2013

Kenya Water Treatment Plant brine concentrators.

Queensland Project Management Achievement Awards for its work building and managing the Kenya to Chinchilla Weir Pipeline. QGC said the main gas pipeline for the QCLNG Project was now in the ground, with the final kilometre of the 1m-diameter pipeline having been laid near Biloela in central

Queensland recently. The pipeline comprises about 200km from Dalby to Wandoan and more than 340km from the gasfields to Curtis Island. The longest and last of 80 modular components required to build the QCLNG plant arrived by ship at Curtis Island in late October.


NEWS

The Mining Advocate | November 2013

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Armour set to meet demand Gas company Armour Energy is tapping into conventional and unconventional gas resources in northern Australia in response to a growth in demand for gas on the east coast. Armour Energy listed on the ASX just over a year ago and since then the company has launched a number of gas projects in Queensland and the Northern Territory. Chief executive officer Robbert de Weijer says Armour has large acreage in the Northern Territory and Queensland with the potential to meet Australia’s growing demand for gas. “Armour’s acreage is 133,000sq km, two-thirds the size of England, larger than the US Barnett and Eagleford shales combined. Like they have done in the US, we will be looking for sweet spots. Our exploration areas are proven petroleum systems and we know there is lots of highquality gas,” he said. “We recently signed an agreement with APA, which is quite a reputable pipeline association. It’s about us working with them to build transport infrastructure around pipelines that are going to connect our assets to markets in the Northern Territory and in Queensland. “Our monetisation strategy is built on three stages. Stage 1 is to supply gas to local customers in the areas where we operate in NT and Queensland. “Stage 2 would be a 300km pipeline from our Queensland tenement to Mount Isa and surrounding areas – a very sizeable

Robbert de Weijer Armour Energy chief executive officer

market of about 40 PJ/ annum. This would also connect us directly to the broader east coast market through existing infrastructure. “The third stage would be further infrastructure to supply much larger volumes of gas to the Northern Territory and east Australian markets through dedicated pipelines. The east coast of Australia is projected to be significantly short of gas. Whilst the areas where we operate could be seen as remote, our assets certainly aren’t stranded from domestic and international markets.” Mr de Weijer said

Armour had the potential to become a very significant player in the gas industry in the future. “Armour has a market cap of less than $100 million now but certainly has the potential to become a multibillion dollar company. For that to happen we need to be successful with our exploration and appraisal work. The results so far have been very encouraging,” he said. The company has had some recent developments on two Queensland gas wells - Egliabria 2 and Egilabria 4. “We drilled the Egliabria 2 well and subsequently we hydraulically stimulated the horizontal section of that well in the Lawn shale formation,” Mr de Weijer said. “At the moment we’re still recovering the fluid we pumped into the well and at this stage we have recovered about 42 per cent. After we have flowed back the fluid is when we will see the gas coming through. The time scales are hard to say, it varies from well to well, we could be seeing gas within the next couple of weeks but it could take another couple of months.’’

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Rio Tinto seals Clermont deal Rio Tinto has sealed a $US1 billion deal to sell its 50.1 per cent interest in the Clermont coal mine in central Queensland to Glencore Xstrata and Sumitomo Corporation. Under the terms of the sale, Glencore Xstrata will take over management of the open-cut operation, Australia’s third largest thermal coal mine. Head of Glencore’s coal assets, Peter Freyberg, described Clermont as a large-scale, low-cost, producing mine offering an attractive financial return. The sale is subject to agreement

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NEWS

November 2013 |

The Mining Advocate

Teams pay respects at tournament Rugby league players put competition to one side briefly, writes Bruce Macdonald The fourth annual Central Highlands Battle of the Mines tournament in Emerald was tinged with sadness when players from the five competing teams observed a minute’s silence following the deaths of two people linked to the sport. Former Springsure and Middlemount player Allan Johnson died in a car accident a week before the tournament and a second player, David Williams, lost his newborn son, Matty. On the field, Rio Tinto Coal’s Clermont team was a class above the opposition, needing to play only three of its four games in the round-robin competition to claim the trophy. Clermont’s third game against the CFMEU Pride line-up served as the grand final, with Pride the only team with a mathematical chance of catching the pacesetters. Clermont defeated the Pride 26-10 and the Lake Lindsay Battlers forfeited their final game with the tournament

result already decided. Rio Tinto Kestrel and the Oaky Creek Crusaders were the other two teams competing on the day. Organiser Andrew Lawrence said a good crowd attended the tournament, where more than $5000 was raised to aid the Central Families organisation which assists disabled people in a home environment and the Men of League, an organisation that supports former players who have fallen on hard times. Mr Lawrence said the tournament was a great concept which fostered camaraderie among employees from the mining companies involved. “I congratulate Stellar Recruitment (major sponsor), the CFMEU, Central Highlands Regional Council, Central Families, Emerald Brothers Junior Rugby League plus Ron Richardson and Thomas Dungavell - our two referees for the day,” he said. Mr Lawrence said he hoped to be involved with the

Players observe a minute’s silence at the Central Highlands Battle of the Mines tournament in Emerald.

organisation of the tournament next year and added that it would more than likely be held in Emerald again because of its central location. The annual hard rock Battle of the Mines was cancelled, with event founder John Green saying the Cloncurry league tournament had fallen

prey to tough times in the mining industry in 2013. The north-western Battle of the Mines is the longest running mines football tournament in Queensland. Held in Cloncurry each October, it has regularly attracted 10 nominations, with Mount Isa Mines accounting for four teams.

“It’s turned out to be a very, very hard year in mining this year,” Mr Green said. “We are not killing the event, we decided just to put it off for one year. “It will definitely go ahead next year, and I think it will bounce back bigger and better than ever next year.”

Work recognised The Mining Advocate journalist Dominique Kimber received recognition for her portfolio of work focusing on the mining industry at this year’s Clarion Awards in Brisbane. Ms Kimber (nee Clarke) was named as the runner-up in the Most Outstanding Regional Journalism Student category for her body of work named A Focus on the Queensland Mining Sector in Regional Queensland. Judges were impressed with the work that “addressed a wide range of issues in the mining sector”. Ms Kimber said she was surprised and honoured to have been nominated.

Dominique Kimber was recognised for her mining sector journalism.

CopperChem and Exco on the crest of a wave The future holds many opportunities for CopperChem and Exco Resources, according to chief executive officer Brendan James. The sister companies have a number of projects in the pipeline in the Cloncurry district – including the Mt Colin coppergold project, which is set to come online

in November. “We’re looking at around a seven-year mine life for Mt Colin,” Mr James said. “It will run for the first one to two years as open cut and the remainder of the life will be underground.” Mr James also expected Exco’s Kangaroo Rat project to be ready for production within 12 months. “That’s not to say that it will come online then, we’ll look at the right timeline,” he said. “Kangaroo Rat at the moment is about a 1.3 million-tonne resource with about 1.3 per cent copper but it does look like it has quite a lot of upside in the vicinity. “It’s still quite a good resource, only being around 8km from the Cloncurry processing facilities. Kangaroo Rat will be a couple of years of operation and Wallace South (a stand-alone gold project) will be probably another two years of operation.”

Brendan James CopperChem CEO

CopperChem – which operates the Great Australia mine and copper processing operation at Cloncurry - recently finalised its joint venture agreement with Syndicated for the development of the Barbara copper-gold project, 60km north-east of Mount Isa. “The Barbara deposit is something that

we’re quite excited about. It’s progressing very well towards the feasibility study and that will be completed within the next 12 months,” Mr James said. “Then we’ll look at when is the right time to get into production and that will lead to processing through the Cloncurry processing facilities or potentially another facility at Barbara, that’s what we’re assessing at the moment.” Mr James said CopperChem had developed more quickly than anticipated due to good opportunities in the market. “It’s an exciting time - we’re growing and growing quickly and we’re looking to continue that growth moving forward,” he said. “We’re well funded and we have a very good parent in WH Soul Pattinson that’s allowing us to take advantage of opportunities. “There’s a lot more to come from CopperChem moving forward. We’re a genuine and profitable producer in the region and we’re going to continue to grow.” Mr James said that as part of project developments employee levels had increased and that the company was looking into plans to utilise current employees across a number of ongoing projects.


NEWS

The Mining Advocate | November 2013

9

Oaky North too hot for the rest Queensland team beats extreme conditions and strong opposition to take out rescue title The team from Oaky North Mine battled in 39-degree heat to take out first place at the 51st Australian Mines Rescue Competition held at Cook Colliery in the Bowen Basin recently. Eight teams competed at the event including four from Queensland, two from New South Wales and one from Tasmania. Another team, named The Barbarians, consisted of the seventh man from each of the competing rescue crews. Queensland took out three of the four top spots, with second place awarded to BMA’s Broadmeadow mine, third place to North Wambo mine (NSW ) and fourth place to Crinum mine. Queensland Mine Rescue Services operation manager and chief assessor Ray Smith said the hot weather at this year’s event made the going tough for teams. “We had a team who flew in from Tasmania where it was 12 degrees and then they came into

the severe heat,” he said. “The event pushed the teams to their limits and it means that

they’re prepared for extreme conditions. The skills required for some of the surface exercises this year were a little bit more unique and really challenged the competitors.

“Teams were required to work with limited resources. In one instance they were issued with only four hoses and what they required was five in order to reach the fire. They dealt with the situation really well and overcame the challenges while staying within Queensland and New South Wales guidelines.” Mr Smith said the Oaky North team members Lenny Suluvale, Steve Dawe, Luke Vella, Michael Corrie, Tim Trewin and Jim Young at the 51st Australian Mines Rescue Competition.

competition highlighted some of the strongest teams in Queensland and New South Wales while acting as a way of further developing the skills of rescue teams across the board. A Glencore spokesman said the Oaky North team undertook three weeks of intense training at Cook Colliery, the Tieri fire station and the Dysart Mines Rescue Facility before the event. It also participated in a motivational session which emphasised the effort required prior to the event and focus needed on the day itself.

Industry will employ up to 15,000 people Queensland’s CSG to LNG industry will employ about 15,000 people when it reaches its peak, according to a new report. Energy Skills Queensland (ESQ) recently released its 2013 Queensland CSG to LNG Workforce Plan. ESQ chief executive officer Glenn Porter said that over a 20-year forecast period the workforce was expected to peak around 14,900 workers in 2024. “There is now a greater understanding

of the required contracting workforce and updated project figures, meaning the peak workforce numbers have more than doubled from original estimates,” Mr Porter said. The report also found that about 65 per cent of the workforce would be employed through sub-contractors and suppliers rather than directly by the major gas companies. Mr Porter said supply chain contractors should be given access to further

training in health, safety and environment in order to meet future requirements. “Small to medium-size contractors need support to improve their competency assurance systems to ensure they comply with the health and safety requirements of gas companies and the Queensland Government,” he said. Boosting such support would allow for greater participation of local operators, he said.


10

Whitsundays Major Projects Summit

November 2013 |

The Mining Advocate

Abbot Point takes centre stage Federal Environment Minister Greg Hunt drew a posse of journalists as he joined the recent Whitsundays Major Projects Summit to deliver an update on his study of a dredging project vital to the expansion of the Abbot Point coal loading facility. Two multi-billion-dollar coal projects are in limbo until Mr Hunt gives his blessing or otherwise for the project, which could see Abbot Point become the biggest facility of its type in the world. He was adamant a decision would be made on or before the December 13 deadline. A decision has previously been deferred on two occasions. Mr Hunt made a cameo visit to the summit during a break from speaking with various parties involved in the dispute centred around dredging at the Abbot Point facility north of Bowen. Journalists milled around the rear of the Queens Beach, Bowen

indication of where he stood when he said: “the Whitsunday region has an exciting future; community and business leaders are not waiting for government handouts or White Papers, they are ready and rarin’ to go.” Whitsundays Marketing and Development chief executive officer Danial Rochford said he was delighted with the summit

attendance and calibre of speakers who addressed delegates over the two days. “To have the Director-General of the Department of State Development, Infrastructure and Planning David Edwards was a real coup,” Mr Rochford said. “It was also an opportunity for developers who are spending millions of dollars in the

Greg Hunt Federal Environment Minister

summit venue while Mr Hunt addressed 184 government and business delegates. Looking on with great interest was Senator Ian Macdonald, who gave a clear

Arrays of hope for Collinsville plant

Abbot Point coal export facilities near Bowen.

The coal-fired Collinsville power station has had a chequered and often controversial history since it was built in 1968. It has been closed, reopened and now lies in a care and maintenance mode. Delegates to the Whitsundays Major Projects Summit were told the power station could again rise as a new-generation electricity producer in a hybrid form, exploiting the abundant sunshine in the area 90km southwest of Bowen. Ratch-Australia Corporation (RAC) executive general manager Geoff Dutton told the summit that public meetings would take place in November in Collinsville and Bowen ahead of work in the new year to assess the viability of converting the Collinsville power station to a 30MW solar thermal/gas energy producer. Mr Dutton said the Federal Government had committed $2.5 million to the project through ARENA (Australian Renewable Energy Agency), which would be matched by RAC. He said the plan was to start small with two 20ha arrays of PV solar panels next year which “will put us in a good position to grow on this (500ha) site”. Also being looked at is a 50ha array of reflective mirrors, which will be focused on steam pipes leading to a turbine at the power station. RAC has executed a memorandum of understanding with Westside to assess the viability of gas supply from its tenements, including Mount Saint Martin and Tilbrook. Mr Dutton said the gas pipeline route survey and environmental studies were expected to begin before the end of the year. He said a major capital investment of around $200 million could flow into the community and create 60 jobs during the construction phase and another 16 during operations. “But the operation must be commercial ... there are limitations in our industry,” he said.

Ports boss combats critics North Queensland Bulk Ports chief executive officer Brad Fish has moved quickly to scupper speculation that the formal withdrawal of BHP Billiton from the Abbot Point coal loading facility expansion project will impact its viability. Speculation that BHP Billiton would withdraw from the Terminal 2 (T2) development and associated rail connection from Goonyella to the port, valued at $5 billion, first surfaced late last year. The recent formal announcement follows a decision in July last year by Rio Tinto to shelve its interest in the project, blaming uncertainty in the market. Mr Fish said BHP Billiton had not been looking to develop at Abbot Point for “quite some time” anyway. “We (NQBP) will now work with the State very closely,” he said. “A number of people are bouncing around the edges.”

Call to embrace ‘the Four Cs’ Enhancing business competitiveness is the challenge facing the mining and resources industries, according to Director-General of the Queensland Government’s Department of State Development, Infrastructure and Planning, David Edwards. He urged the audience at the Whitsundays Major Projects Summit in Bowen in late October to embrace “The Four Cs” – cost, certainty, community and the commonwealth (state relationships) – to remain competitive on the global stage and domestically. “Business fundaments (in Australia) are strong, and the global outlook is bright – we’ve been through worse,” Mr Edwards said.

Whitsundays to showcase their projects to an audience from around Queensland and interstate.” Quite apart from Mr Hunt’s cameo appearance, Abbot Point was a recurring theme among keynote speakers during the summit. North Queensland Bulk Ports chief executive officer Brad Fish couldn’t hide his frustration over the delays associated with the Abbot Point upgrade. He told the audience that $2 million had been spent on the science surrounding the dredging of three million cubic metres of spoil and described media reports on water turbidity as overstated and ill-informed. GVK Hancock Coal executive project director Malcolm Northey said his company was still committed to its development in the Galilee Basin near Alpha even though he could also see a costly court-related strategy delay progress. Anglo American Metallurgical Coal head of infrastructure John Cleland said Abbot Point was his company’s preferred option for loading for the Grosvenor project.

“But Queensland is a trade-dependent state and foreign investors have choices – Africa, South America and Asia. We can’t control exchange rates and commodity prices but we can control competitiveness.” Mr Edwards said Queensland needed to create a superior investment climate to enable and enhance business confidence, underpinned by rolling reform in areas like regional statutory planning between landholders and mining and exploration companies. Central to his department’s role in driving business competitiveness in Queensland is a 50 per cent reduction of assessment times for major projects.

Brad Fish North Queensland Bulk Ports CEO

Federal Environment Minister Greg Hunt visited Bowen and Abbot Point in October and will make a decision on approving a dredging project, which is essential to the expansion project, on or before December 13. Mr Fish said media coverage quoting individuals and groups opposed to the project was “misinformed” and didn’t portray the efforts of NQBP to address the impact of dredging three million cubic metres of spoil and relocating it elsewhere within the Great Barrier Reef Marine Park area. He said $2 million and two years of research had gone in to determining the best-practice method of relocating the dredged up material. “We have access to the best science in the world,” he said. Reports that plumes associated

with dredging at the site could extend 100km were “simply wrong” according to Mr Fish, who said any impact would be localised and extend a “couple of kilometres”. He pointed to dredging at Abbot Point in 2008, using “before and after” slides to emphasise his point. Mr Fish was particularly upset by opponents quoting a Great Barrier Reef Marine Park Authority Improved Dredge Material Management report that invested $200,000 in assessing 10 sites along the reef. “It was never designed to be used for impact assessment,” he said. “The model was developed to help determine whether there were comparative benefits in placing dredged material inshore or offshore within the Great Barrier Reef lagoon.” Mr Fish said an approval to start dredging would not see activity at the site any time soon. “The community needs to appreciate that the dredging approval is obviously important for both the Adani and GVK projects. However, both projects are still working through other approval issues and until all approvals are finalised there will be no decision to start work,” he said. The two Indian companies plan extensive coal operations in the Galilee Basin, with rail links to be constructed from their respective mining leases.


The Mining Advocate | November 2013

Major Projects Summit

11

Paul McLaughlin (Tourism Bowen) with Leanne Zeid and Hollie Ellis (both from WMDL).

Craig Nicholls (Jasstech), Dean Deighton (Careers Australia), Joe Hoolihan (Tech-NQ) and Scott Waters (Whitsunday Regional Council).

Nick Taylor (Virgin Australia), Annie Judd (Charter Yachts Australia) and Greg France (WMDL).

Paul Young (ATCO) with Karen Hindle (RSEA) and Rhys Hancock (ATCO).


12

OUR MINING HERITAGE

November 2013 |

The Mining Advocate

This Finn feels right at home by Dominique Kimber Lauri Iso-aho describes his arrival in Mount Isa in 1967 as like walking into an old western movie but says that he is now among the many Finnish immigrants who call Australia home. Mr Iso-aho moved to Australia with his wife Anniki in an attempt to find work, and in 1968 he began working with Mount Isa Mines. “The Finns came to Australia because in Finland there was a high level of unemployment,” he said. “My brother came to Australia eight years earlier and he moved to Mount Isa and worked at the mines so I came straight to Mount Isa to join him.” Mr Iso-aho said moving to Australia from Finland was a big transition, but that it was made easier by the large Finnish population in Mount Isa at the time. “When the aircraft landed in Mount Isa, we walked off the plane and I felt the heat coming up from the ground and burning my feet,” he said. “It’s cool

Pastor Lauri Iso-aho arrived in Mount Isa in 1967. Photo: Roslyn Budd

Laurie Iso-aho, centre, with fellow mine workers.

weather in Finland and we had never felt anything like it before. “Our first experience was seeing a woman ride on horseback and it reminded us of old western

movies that we‘d watched in Finland with the cowboys and all that. “At the end of the 1960s-beginning of 1970s it was

the largest number of Finnish people in Mount Isa. “The many Finns living in Mount Isa really helped us to settle down. We had the Finnish hall, shops and café. It was a very active Finnish community.” While a small number of first-generation Finns still live in Mount Isa, the strong presence of the Finnish culture died in the 1980s. Mr Iso-aho retired from mine work in 2000 and now works as the local pastor at the Finnish church. “We don’t have such a

large Finnish population any more. We just have the church,” Mr Iso-aho said. “It dropped off in about 1980, with no new migrants from Finland. People got older and moved away. The second and third-generation Finns in Mount Isa are more Australian than Finnish, and they seem to have lost their language too.” The Finnish Ambassador Pasi Patokallio recently visited Mount Isa, where he met the Finnish residents and was taken on a tour of the town.

~ Life at the lodge ~ Shane Kinnane is back out enjoying his beloved Harley Davidson this year after giving up the CFMEU Goonyella Riverside Lodge presidency for the second time in his long union career. The Goonyella lodge in the mining union’s Bowen Basin heartland was established in 1970 and Mr Kinnane joined in 1974, before it amalgamated with Riverside. Mr Kinnane had taken on a plumbing apprenticeship in Moranbah after leaving the Navy and was offered a job

at the Goonyella mine about two years after coming to town. “You had to be a union member back in those days, so I joined the union and then I got involved,” he said. “I became a delegate and about five years later I became president.” Mr Kinnane has had two stints as president, totalling 23 years, but said the heavy workload had prompted him to give up the post for good late last year. He said the job had carried an increasing burden of paperwork and

legal requirements. No longer being required to follow up on members’ concerns had freed up a lot of time. “I have had a Harley Davidson for 20 years and I’m back out riding that occasionally and have got back into gardening and other things.” Mr Kinnane said he had been comfortable retiring from the presidency at the lodge’s last AGM due to the calibre of executive members Simon West and Russell Robertson, who is now president.

Current Goonyella Riverside Lodge president Russell Robertson and secretary/treasurer Simon West at a picket line with long-time president Shane Kinnane.

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14

INDUSTRY UPDATE - COAL AND GAS

This Kevin’s a winner GVK has welcomed a Federal Government decision to grant environmental approval for its Kevin’s Corner project, 50km north of Alpha. The Indian conglomerate has acquired a 100 per cent stake in the Kevin’s Corner project from Hancock Prospecting and a 79 per cent stake in the Alpha Coal and Alpha West Coal projects. When combined, the Galilee Basin projects will create one of the largest coal mining operations in the world, with a peak capacity around 80 million tonnes per annum, according to GVK. “We commend the Federal Government on its thorough environmental assessment process and its decision to approve this significant project that will create immense employment opportunities,” GVK Power and Infrastructure managing director GVK Reddy said.

LNG projects join forces Two key LNG plant proponents have signed gas swap and infrastructure connection agreements that will make the projects’ gas transportation more efficient and reduce the need for additional pipeline infrastructure. Santos GLNG and Australia Pacific LNG are joint venture partners in a number of permits in the Surat and Bowen basins, and the agreements will allow both parties to more efficiently access and transport their equity gas in order to meet the requirements of their CSG-LNG projects. Without this agreement both projects would need a total of 140km of additional pipelines and multiple connection point compressor stations to deliver gas to Curtis Island.

Leighton lands Isaac Plains job Leighton Contractors has landed a three-year, $249 million contract at the Isaac Plains open-cut coal mine at Moranbah. The contract includes a range of contract mining services, including the operation of a BE1370 dragline and the supply

November 2013 |

and maintenance of mobile plant and equipment, to produce about 2.7 million ROM tonnes of coal each year. Leighton Contractors will employ about 160 personnel at the mine - a joint venture project between Sumitomo Corporation and Vale Australia.

Arrow EIS hits the mark Queensland Co-ordinator-General Barry Broe has approved the environmental impact statement for Arrow Energy’s $15 billion liquefied natural gas plant at Gladstone. Arrow chief executive officer Andrew Faulkner said the company now had state-level approval for three of the five components of the overall Arrow CSG-LNG project - the LNG plant as well as pipelines from the Surat and Bowen basins.

Bechtel claims training title

Thiess has won a $1.8 billion contract for construction of gas compression facilities and associated works for the QCLNG project in the Surat Basin.

Mine water strategy expands

The new contract significantly expands Thiess’ role in the coal seam gasliquefied natural gas project, which now includes construction of all 18 field compressor stations and four central processing plants, with works to be completed by November 2014.

The Queensland Government has granted Cockatoo Coal two mining leases which pave the way for the

Bandanna Energy has entered an agreement with a major Korean electricity generator for potential investment and long-term coal off take from the Springsure Creek project in central Queensland. The company said the non-binding heads of agreement with Korea Midland Power provided a high-level framework for ongoing discussions and negotiations between the parties.

A control room co-ordinator from the BMA Crinum coal mine near Emerald has won an award for his contribution to the safety of workers in underground mine operations. Robert Wills, from Yeppoon, was named the Peter Dent Simtars Gas Chromatographer of the Year for his skill operating Camgas, an underground mine gas monitoring system developed by the Queensland Government’s Safety in Mines Testing and Research Station (Simtars).

Thiess wins $1.8b contract

Cockatoo leases granted

Bandanna lures Korean investor

Champion gas monitor

Construction company Bechtel has been named Employer of the Year at the Queensland Training Awards in Brisbane. The win comes after Bechtel won the Central Queensland Employer of the Year title in July for outstanding commitment to the vocational education and training of the 10,000-strong workforce on Curtis Island, Gladstone.

Thiess is ramping up its workforce in the Surat Basin to a forecast peak of 2600 by early 2014.

company’s Baralaba expansion project to the north of its existing Baralaba mine in the Bowen Basin. The leases have been granted with approval to initially mine at rates of up to one million tonnes per annum for a term of 30 years. Cockatoo Coal said the granting of the mining leases would help its financing plans for the project to move forward.

The Queensland Government has announced the expansion of the Fitzroy Basin coal mine water pilot program to effectively manage releases. Deputy Premier Jeff Seeney said the expanded pilot program would allow participating coal mines to take advantage of flow events to maximise the release of legacy mine water. To gain the benefits from this additional release opportunity, coal mines would need to demonstrate improved mine water management practices, he said. “In addition to the four BMA mines from the 2012-13 pilot, other coal mines in the Fitzroy Basin will be

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assessed on a case-by-case basis on whether they can join the expanded pilot,” Mr Seeney said.

Fine over UCG glitches Cougar Energy recently pleaded guilty in the Brisbane Magistrates’ Court to three summary charges stemming from environmental concerns at its underground coal gasification (UCG) project at Kingaroy in 2010. The company – which has since changed its name to Moreton Resources - has been ordered to pay a total fine of $75,000 for all three charges, and agreed to pay $40,000 for legal and investigation costs. Cougar said the Department of Environment and Heritage Protection acknowledged that the company’s dedicated groundwater monitoring bores had provided an early warning detection system, and that no environmental harm resulted from the incident. Chairman Andrew Matheson said this was the last of the legal actions relating to the Kingaroy UCG site, allowing the board and management to focus on the company’s conventional coal development work in the Bowen and Surat basins.

Kestrel flies into new era A new era has begun for the Kestrel mine, west of Emerald, with the official opening of the Kestrel South extension by Queensland Treasurer Tim Nicholls. Mr Nicholls said the opening provided yet more evidence that Queensland’s coal industry had a vibrant future. “Kestrel Mine, managed by Rio Tinto, will have its life extended by 20 years with the opening of this extension and will employ more than 500 people,” Mr Nicholls said. “Kestrel South will contribute to our expected 7.6 per cent growth in coal exports this year. “Queensland ports are putting through tonnages at pre-GFC levels with a total of just over 34 million tonnes exported from Queensland in July and August.” The event followed the official opening in September of BMA’s $1.4 billion Daunia metallurgical coal mine in central Queensland.

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INDUSTRY UPDATE - HARD ROCK

The Mining Advocate | November 2013

Aurukun interest Two groups have submitted proposals to develop the Aurukun bauxite deposit on western Cape York after the Queensland Government launched an expressions of interest process. Deputy Premier Jeff Seeney said Australian Indigenous Resources (AIR) and Glencore International had submitted proposals, which the State Government would evaluate. “We have called for expressions of interest, selected a shortlist of proponents capable of delivering the development and invited these proponents to submit their detailed plans,” he said. Mr Seeney said two of the shortlisted groups – Chalco and Rio Tinto Aluminium - had decided to withdraw from the competitive bid process. Cape Alumina did not withdraw, but had not lodged a proposal by the deadline. “The government will now work towards a final decision on a preferred proponent by the end of the year,” Mr Seeney said.

Red letter day

mineral sands project, 3km south-west of Weipa. The zircon-rutile project incorporates high-grade mineral sands from surface to a depth of 3m, according to Metallica managing director Andrew Gillies. “Subject to the mining lease being granted and funding obtained by the end of calendar 2013, Metallica will target zircon-rutile HMS (heavy mineral sand) production for the third quarter of 2014,” he said. Oresome is obtaining quotes from suppliers for plant and equipment required to establish a full-scale commercial mineral sands operation, with a sand processing throughput target of 300 tonnes per hour producing about 20,000 tonnes per annum of about 50 per cent zircon and 40 per cent rutile sand concentrate.

Inova Resources has reported positive gold results from recent drilling at the Confucius prospect, 4km south-east of its Mt Elliott deposit in the Cloncurry district.

Natural Resources and Mines Minister Andrew Cripps presented the awards at the Mining 2013 Resources Convention. The awards judging committee included members of the Queensland Government, the Queensland Resources Council and Mining 2013 organisers Vertical Events.

Inova Resources chief executive officer Bob Vassie said the company was hopeful that the Confucius prospect could well prove to be an exciting gold discovery.

Vertical Events managing director Stewart McDonald said Red Metal and Evolution Mining had made significant contributions to the Queensland resources industry.

Tick for Oresome project Metallica Minerals subsidiary Oresome Australia has received State environmental authority for the mining lease application for its Urquhart Point

“If Confucius proves to be a successful discovery, there is also the potential for it to leverage off the company’s existing infrastructure at the Osborne processing centre,” he said.

“Unlike other projects, Mount Garnet boasts existing infrastructure and nearsurface ore, which are the drivers of low capital and operating costs,” he said. “The PFS has confirmed that we have the opportunity to develop a substantial and profitable tin mining project.”

Altona managing director Alistair Cowden said Altona was concentrating its efforts at Roseby on the Little Eva development through reviewing and updating the 2012 definitive feasibility study.

He said the company aimed to achieve tin production by the end of 2014.

Millenium joint venture Chinalco Yunnan Copper Resources (CYU) has entered into a binding term sheet to create a joint venture with Elementos to explore for copper, cobalt and gold and ultimately earn a majority interest in the Millenium project near Cloncurry. The project includes 134ha of mining leases as well as exploration permits and applications.

Golden signs from Confucius

Exploration company Red Metal and gold mining company Evolution Mining were named Queensland Explorer of the Year and Queensland Miner of the Year recently.

Copper Resources spending at least $1 million on exploration activities in the next two years. A 70 per cent stake would involve funding and completing a definitive feasibility study along with a decision to mine on a substantive mining project.

“We are seeking a transaction to sell, partner or finance Little Eva whilst minimising dilution to shareholders,” he said.

Oresome has recently completed a revised mineral resource estimate for Urquhart Point according to the guidelines of the JORC Code 2012. The project has an indicated resource of 2.7 million tonnes at 6.53 per cent heavy minerals.

CYU managing director Paul Williams said the Millenium joint venture was another important step in the company’s focus on exploring and developing world-class deposits in the Mount Isa region. “In addition to the Roseby South joint venture announced to the market, CYU has now secured access to a highly prospective and contiguous parcel of mining tenures. Our exploration team has identified a number of targets for immediate evaluation,” he said.

Tin study comes up trumps

Roseby earn-in deal Altona Mining has entered an agreement allowing Chinalco Yunnan Copper Resources to earn an interest of up to 70 per cent in the southern tenements at its Roseby copper-gold project, 95km north-east of Mount Isa. The terms include Chinalco Yunnan

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

15

Consolidated Tin Mines says its prefeasibility (PFS) study of the Mount Garnet tin project in North Queensland has confirmed the potential for an operation producing one million tonnes per annum for at least nine years. Consolidated Tin Mines chairman and managing director Ralph De Lacey said the study demonstrated the economics of a robust and significant tin project.

RCR wins $70m underground job RCR Resources has won expansion work to the value of $70 million at Glencore’s Ernest Henry mine project near Cloncurry. RCR’s scope of work will include the installation and commissioning of underground crushing and materials handling equipment, along with associated infrastructure.

Mount Peake in major league The Northern Territory Government has awarded major project status to the Mount Peake project in central Australia. TNG’s strategic metals project is located 235km north-west of Alice Springs and is going through a feasibility study, which is due for completion early next year. “If it proceeds to full development, Mount Peake would be one of the largest emerging vanadium projects in the world,” NT Chief Minister Adam Giles said. “This granting of major project status recognises how important the project could be to the economy.” TNG is aiming to begin construction in 2014, with production and exports scheduled to begin in 2015. The company recently signed a binding agreement with process engineering group Mineral Engineering Technical Services (METS) to acquire 100 per cent of the interests in the TIVAN hydrometallurgical process. The process and technology – which forms a central plank of the development plan for Mount Peake - has been co-developed by TNG and METS over the past four years.


16

BETWEEN SHIFTS

November 2013 |

Lake Moondarra Fishing Classic

The Mining Advocate

PHOTOS: Roslyn Budd

Lake Moondarra, Mount Isa

Kara Thompson and Alex Dorr (RACQ NQ Rescue).

Chris and Sarah Swan with Steve and Denise Curry.

Trevor and Lyn Kidd ready to take to the water.

Dave Watson, Paul Griffiths and Keith Griffiths (Mount Isa Fish Stocking Group).

Ally and Terry Johns with son, Darcy.

Tanya and Dustin Malouf.

Mining 2013 Resources Convention

PHOTOS: Dan Cole

Brisbane Convention and Exhibition Centre

Ty Grantham (IMC Mining Group) with Hamish Fraser (investor) and Francois Bazin (IMC Mining Group).

Lloyd Hamilton (geologist) with John Ferguson (investor).

Andrew Somers (Olympus) with Rob Curtis (EMR Capital).

James Douglass (Kula Gold) with Gillian Oliver (Action Drill and Blast), Andrew McNeill and Ben Waining (MRT).

Graham Muggeridge (Grange Geoscience) with Ian Reudavey (Diatreme Resources), Simone Jelley (investor) and David Jelley (Diatreme Resources).

Paul Paparella (Asia World Shipping) with Julian Hanna (MOD Resources) and Andrew Shearer (Pac Partners).

Queensland Exploration Council capital-raising seminar

PHOTOS: Dan Cole

The Greek Club, South Brisbane

Andrew Rogers (KHAR Resources) with Albert Loots (BDO).

Scott Waddell and Jeames McKibbon.

Jian Xi and Wenzhe Xia (Shenhuo International Group).

Scott Birkett, Brent van Staden and Jesse Zhao.

Ken Harvey (Superior Resources) with Doug Young (Activex).

Arnold Getz (investor) with Jeff Vassallo (explorer).


BETWEEN SHIFTS

The Mining Advocate | November 2013

Black Dog Ball

17

PHOTOS: Michael Kennedy

Paradise Lagoons, Rockhampton

Tracey Watt, Kristy Moore, Judy Podcock, Berie Draper and Raylene Prestidge.

Janet and Rob Pleash.

Natalia Corsaro, Michelle Pflugradt, Gillian Finckh, Zoe Cotton, Anna McAuliffe and Rebecca Smith.

Kara Lamb, Julie Day, Maddy Day, Jackie Osborne and Elliot Green.

Kylie Harte, Kimberly Muller, Annie Gowdy and Mitchell Withers.

Eden Finger and Nicole Clark with Crystal Ferris.

Bowen Basin Mining Club networking luncheon

PHOTOS: courtesy Bowen Basin Mining Club

Alan McIndoe Park, Emerald

Jodie Currie (BBMC), Geoff MacKenzie (Linc Energy) and Sandra Hobbs (CHDC).

Hannah Sorensen and Rachelle Lobodin (both Generate PR) with Katrina Gasnier (Linc Energy).

Troy Mundy (Downdens Pumping), Michael McGrath (GW Industrial), Grant Craker (SMH Group) and Kel Curtis (Ausenco).

Katy Gowers (Wilson Survey Group) and Aliana Fitzgerald (Coalfields Pty Ltd).

Damien Furguson (Planpac Group) and Clive Pigdon (Rimcorp).

Jim Bennett (Prime Rentals) with Teresa Vella (BBMC).

Whilst some pay the ultimate sacrifice, others return requiring assistance RSL (Queensland Branch) supports over 45,000 current and ex-service personnel. Your support of the RSL will help provide vital services to these men and women. Your direct donation, bequest or sponsorship will make a real difference and enable the RSL to continue with this vital support and assistance. Make a donation at www.rslqld.org or call (07) 3634 9444

The Returned & Services League of Australia (Queensland Branch)

REMEMBERING the past • Supporting the future


18

LIVING REMOTELY

November 2013 |

The Mining Advocate

Calendar suits FIFO families One mining family’s experience ence purred of the FIFO lifestyle has spurred uding a whole product line – including lps a colourful calendar that helps h children come to grips with their parents’ work rosters. Mother of two Deanne Hislop is the Perth-based fo powerhouse behind My Fifo hed Family, an enterprise launched last year after husband Paull became a fly in-fly out n. worker in the Pilbara region. “My children, then two and three years, didn’t cope well with the changes, which placed an enormous amount of stress on both me and my partner,” Mrs Hislop said. “If choosing against FIFO had been an option we probably would have tried too get work in Perth. After searching everywhere for resources that would help my two-year-old boy understand the routine of FIFO and stop clinging to my

husband’s leg every time he left the room, I decided to make my own.” As their son was too young to count sleeps he needed a visual guide to help him understand

the routine of FIFO, she said The calendar she has designed includes more than 1000 stickers that families can place to symbolise when the parent is going to be home, on a plane, away, and when you are going to call or Skype, along with other symbols to represent special days like a birthday. “I liaise with a number of child psychologists, child health professionals, companies, parents and most importantly my children in the creation of all of our products,” Mrs Hislop said. “The calendars also contain great tips at the back on making FIFO work for your family and a number of other support agencies.” The 2014 calendar will be the second My Fifo Family has produced, with the first having gone to almost 5000 homes across Australia and NZ.

Stayover opens for business Ausco Modular recently opened its Stayover in Darwin accommodation facility, built for the region’s oil and gas workers. The complex, in Karama, will initially house up to 140 guests with plans to increase capacity to 500 in 2014. Ausco Modular managing director Anthony Walsh said the Stayover model was designed specifically so regions could respond quickly to accommodation pressures like those felt in the Northern Territory. Mr Walsh said modular construction provided a faster, less invasive alternative to permanent accommodation

options to support local projects. “The use of modular buildings means that construction work on site is reduced significantly which in turn creates less disruption to the area and is a much faster process,” he said. “Ausco Modular received development approval in

December 2012 and already we are able to cater for our first guests in well-appointed, comfortable accommodation that offers more than just a bed to sleep in, but facilities to be active and interact with their colleagues, and the wider community.”

Stayover in Darwin. Photo: Shaana McNaught

Deanne and Paul Hislop with Chenin and Jai.

“We have had some great support from a number of companies like NRW and Mineral Resources who choose to send them out to employees as well as include them in their induction kits,” Mrs Hislop said.

Retracom Hire backs Toowoomba growth Queensland business Retracom has placed a vote of confidence in the Toowoomba region, where it recently established a Retracom Hire branch at O’Mara Rd. General manager Shannon Porter said the company recognised the go-ahead nature of Toowoomba and region and looked to fill the gap for a locally-based, quality temporary building supplier. Retracom Hire provides temporary and long-term accommodation solutions for major projects, building contractors, subcontractors, government and statutory authorities. Mr Porter said the company had recently been awarded contracts within the QGC gas project supply chain, on top of supply of site offices to the construction, mining and services sectors.

Darwin

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Building Mining Communities 19

The Mining Advocate | November 2013

SUPPORTED BY BHP BILLITON CANNINGTON

Nebo SES controller Alex McPhee, Moranbah group leader Gerard Corkhil and Helen Singer from Hail Creek Mine community relations check out the new equipment. Councillor Tony Batt with Charli Curr, Toby Fitchett and Cannington manager communities John Liston at the McKinlay Shire presentation.

Sports stars cash in Rising sporting stars from 22 regional councils and shires across North Queensland have again benefited from the BHP Billiton Cannington bursary program which allows all of them to advance their chosen careers in sport. Cannington has partnered with the North Queensland Sports Foundation to deliver the vital program since 2004 and has delivered more than $240,000 to outstanding athletes in a host of sports challenged by remoteness and a lack of regular competition at the highest levels. This year 32 bursaries have been distributed across the region.

North Queensland Sports Foundation manager Andrew Bligh said Cannington’s support had had a profound impact on the success many talented sportsmen and women from country areas now enjoyed. “Justin O’Neill who plays with the Melbourne Storm is a former bursary recipient,” Mr Bligh said. The 91kg winger/ centre played his junior rugby league with the Hughenden Hawks and won his award in 2004. Each bursary is worth $750 and the only stipulation placed upon the recipients is that the money is used to further their careers.

“Some use the money for travel, others buy equipment,” Mr Bligh said. He said the foundation’s development committee met to decide the final 32 bursary winners after each of the 22 councils and shires lodged nominations. “There is a maximum of two nominations from each council and shire and every applicant is assessed on merit, not where they live,” Mr Bligh said. He applauded Cannington’s generous support, adding that over the years the value of the bursaries had been increased to reflect the rising cost of representative commitments.

Helipad help much appreciated Two new helipads were officially opened at the Cloncurry and Mount Isa hospitals recently thanks to industry chipping in. RACQ NQ Rescue chief

executive officer Alex Dorr says the helipads are an important addition to the local communities. “These helipads save a considerable amount of time

Katie Collins and Adrian Tersigni from Auzscot Civil Engineering joined Ernest Henry Mining sustainable development manager Brendan Callaghan, Cloncurry Shire Mayor Andrew Daniels, RACQ NQ Rescue chief executive officer Alex Dorr, Mitakoodi people elder Pearl Connelly, North Queensland Health and Hospital Board chairman Paul Woodhouse and State Member for Mount Isa Rob Katter at the official opening of the Cloncurry Hospital helipad.

during the transportation process as they allow us to land at the hospital doorstep,” he said. “They also help to make the patient a lot more comfortable, providing better patient outcomes overall.” The helipads were funded by RACQ NQ Rescue through the help of grants and donations from local business. “Special mention must be given to Aurizon, who donated $20,000 toward the Mount Isa Hospital helipad, and Auzscot Civil Engineering and Bell Rural Contracting, who donated $25,000 toward the Cloncurry Hospital helipad,” Mr Dorr said. Ernest Henry Mining and its social club also provided support for Cloncurry’s helipad by purchasing and providing a wind sock and lighting.

SES equipment a lifesaver The Nebo State Emergency Service (SES) is better equipped to handle roadside medical emergencies on the Peak Downs Highway thanks to support from a partnership between Isaac Regional Council and Hail Creek Mine. The Nebo SES has received an Automatic External Defibrillator (AED) machine and training on using the equipment, increasing the team’s capacity to provide efficient first aid care for patients requiring resuscitation. Nebo SES controller Alex McPhee said that service was often first on the scene for accidents on the Peak Downs

Highway, so the new equipment and training had the potential to save lives. “The Nebo Community Benefits Scheme has now been running for a decade and has significantly improved the capacity of our team since 2003,” he said. “The benefits scheme has previously provided operation shelters for casualties, a Stab Fast stabilisation unit to minimise vehicle movement as well as vehicle-cutting equipment enabling access to casualties quickly and safely. Now we are able to take the next step in applying advanced first aid care.”

CQ ball tops $13,000 to help tackle depression The Department of Natural Resources and Mines played a lead role in the success of the inaugural Black Dog Ball held at Paradise Lagoons cattle property near Rockhampton in October. Queensland Health also contributed to the event with sponsorship support. Organising committee member Debbie Hughes said more than $13,000 was raised at the event, which attracted 320 people. The Black Dog Ball was staged to draw attention to mental illness, particularly among people living and working in remote locations at mine sites and pastoral properties. Ms Hughes said the funds raised would go to headspace, a national organisation with a brief to help people aged 12-25 living with depression. “The organising committee thought that with a headspace centre being set up in Rockhampton next year it was appropriate to support that organisation,” she said. “Dealing with and treating depression is all about early detection.” Ms Hughes said she was encouraged by the diverse crowd at the ball, which ranged in age from the early 20s through to the over-60s. “Everybody who was associated with the event had a great time and the main sponsors have indicated they will back it again next year,” Ms Hughes said.

Proudly supporting

mining communities Cannington


20

LOGISTICS

November 2013 |

Intelligent take on traffic control Intelligent Transport Systems (ITS) are replacing traditional methods of rail signalling and traffic control, which is in turn aiding mine-toport transportation and road congestion management. Sinclair Knight Merz group manager for ITS, Gino Dompietro, said the technology had been available for a while but was becoming increasingly popular as a way of improving efficiency and reducing costs. “Intelligent transport systems is one of those broad terms that’s used to describe the application of information of communication technologies to the transport task,” he said. “So it’s wherever computing and communications meet vehicles and road, sea and rail. So it’s one of those IT type terms that applies directly to transport. “ITS in vehicles ranges from satellite navigation systems to assisted braking systems, adaptive cruise control, all of those things you see in vehicles. There’s a whole bunch of safety systems like driver warnings and even the deployment of airbags - anything that involves the use of computers and sensors in vehicles is ITS.” Mr Dompietro said ITS also played a big part in rail systems used to transport goods such as coal or iron ore from the mine to the port. “More often than not transportation of ore is carried out by rail and rail is a fertile area for ITS, particularly in areas

Gino Dompietro Sinclair Knight Merz ITS group manager

of signalling where we would be relying less on mechanical signalling and more on high capacity signalling,” he said. ITS technologies are also being used increasingly in major cities to reduce traffic congestion. Mr Dompietro said the technology was becoming a more viable option for congestion management as funding for infrastructure was reduced. “In cities mobility is a big factor for people. ITS improve traffic congestion and make things run a lot more smoothly,” he said. “On the road you’d be looking at things like lane use management systems. “In Brisbane you have managed motorways which include electronic signs that alter speed limits. There are also

sensors in the road that detect what the traffic is doing at any time.” ITS technology has already been deployed on mine sites through autonomous vehicles and trucks, spurred on by a tough economic climate and a focus on safety. “On the mine site itself is an area that’s starting to be popular for ITS. The technology has been around for a long time but it’s becoming more popular now as businesses are trying to do more for less cost,” Mr Dompietro said. “It’s also for safety reasons. The idea is that one day we’ll have vehicles that can’t crash as we take the human element out of it. So it’s a combination of economics and safety.”

The Mining Advocate

Smartphone app tracks freight Pacific National Rail has launched a smartphone application and online system to give customers access to realtime data on freight movement and delivery along with their service details, container location and freight terminal activity. The company said the custom-built smartphone app had been designed, built and tested in-house and was available for download through a number of online app stores. Pacific National Rail has also enhanced its internet-based FreightWeb service, with a new module called Freight Tracker. Freight Tracker presents a real-time display of customer freight-specific train performance or the current ground location of the freight on an interactive map of Australia.

Pacific National Rail is boosting customer service through technology.

The new Pacific National Rail app gives real time freight data.

Freight Tracker also provides bulk commodities customers with the functionality to “unload” their wagons online after the train has arrived at its destination. Pacific National Rail director Angus McKay said the initiatives stemmed from feedback from a recent customer survey. “The tracking of freight movements through this new technology will improve our customers’ ability to interface with us and enable them to accurately plan for the efficient movement of their freight across their supply chain,” he said. “The initiatives also build on our commitment to investing in new technology as a means to position rail as a preferred mode of transport within Australia’s overall intermodal freight mix.”

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BUSINESS TO BUSINESS

The Mining Advocate | November 2013

21

Reay digs in for the long haul Mackay-based contractor Reay Services Group deliberately maintained its focus on core Bowen Basin clients rather than joining the throng of businesses targeting pipeline construction and related works when CSGLNG projects started ramping up in the Surat Basin. The gas and water pipeline specialists focused on offering gas drainage, water services and surface civil works to mining operations, particularly in the Bowen Basin - where they have a solid client base including Anglo American and BMA, according to managing director Brett Reay. “There are so many companies, so many people down there for the CSG-LNG projects. I didn’t want to lose focus on our mining clients because they started me off and I am very loyal regarding that,” he said. But a decision about three years ago to add trenching machines to the group’s assets has given it a presence in that region via a different avenue – with that equipment now hired out for Surat Basin work. Mr Reay admits he lost sleep over the decision to sink funds into the first Vermeer trencher, but that side of the business has gone so well the group - which now includes an arm known as All Trenching Australia - plans to import a trencher that would be the largest in the country for mining and pipeline industry work. Mr Reay – a plumber, drainer and gas fitter by trade – started working for himself a decade ago with Reay Gas and Plumbing Services and expanded the business to become Reay Services Group in 2007. The Mackay-based operation has grown from a workforce of

A Vermeer T955 trencher at work.

two to 60 and in October opened a Darwin office. “The Darwin office will cover our operations in the Northern Territory, north Western Australia and branching out to PNG,” Mr Reay said. The group’s fleet now includes

five Vermeer trenchers as well as earthmoving and civil machinery including dozers, graders, excavators, loaders and water trucks. “We’re starting to get a considerable amount of plant and machinery together now,”

Mr Reay said. “The natural progression for us from our initial coal seam gathering work was to branch out into civil and mining services such as surface roads and drill pad sites, for example. “The mines were after

someone who could do everything and they approached us and we took it with both hands. We have increased our capability across the board so we can do a turnkey project for the client in gas or water pipelines from start to finish – so from pre-stripping and grubbing of bushland through to the final handover to the client.” Mr Reay said his advice to anyone going into business was to have a business plan. “Ride things out and be patient in terms of how you want to grow and make sure you maintain your focus. If you haven’t got a business plan no matter what line of work you are in, you can’t measure your achievements,” he said. “The other advice I would give is don’t be afraid to ask for help when you need it - don’t think you can do it all by yourself.”

Land release positive for supply chain

Jodie Currie Bowen Basin Mining Club director

Bowen Basin Mining Club director Jodie Currie has welcomed the latest land release for coal exploration in the region, saying the flow-on effects will bolster supply chains. She was commenting after Natural Resources and Mines Minister Andrew Cripps announced the first ever non-cash tender for coal exploration relating to seven areas of land covering more than 1292sq km in the northern Bowen Basin. “Our club represents more than 6000 members in the Bowen Basin mining industry and this announcement is very good news,” Ms Currie said. “I congratulate the Newman Government on easing this process with non-cash tender processes. “The flow-on effects of this exploration will bolster our regional supply chains as junior explorers become established and procure suppliers.” Ms Currie encouraged contractors and

consultants to be visible as projects started to gear back into full swing. “Suppliers have been very quiet but the smart businesses are still making phone calls, even if they aren’t taking any,” she said. “The advice that seems to circulate the room at our functions is to use this time to establish good and reputable relationships with clients and be ready to progress work as it comes. “Networking with industry is a fantastic way to achieve this.” Mr Cripps said the Government understood that a vibrant exploration sector was critical to uncovering the mineral deposits and mines of the future, and non-cash tender processes offered the opportunity for junior explorers to make their mark. More information about the tender is available at www.mines.industry.qld.gov.au


22

Roads – design, construct, maintain

November 2013 |

The Mining Advocate

Cash splash not enough for all When it comes to handouts, there is usually not enough to go around and the Queensland Government’s Royalties for the Regions (R4R) program is no different. State Development, Infrastructure and Planning Minister Jeff Seeney must have known when he announced that all councils and shires in the state - excluding the south-east corner - were now eligible to apply for funding harvested from mining royalties that it would be oversubscribed. The LNP government selected a list of 14 candidates for the first round of funding in 2012, of which only six were successful. Applications for funding up to a maximum of $10 million from a potential pot of $104 million in 2013 spiked dramatically, with 41 eligible local government bodies submitting 90 expressions of interest valued at nearly $311 million for infrastructure and road projects worth a total of $521.8 million. Simple arithmetic indicates that there were going to be disappointed parties left waiting in the line. Mr Seeney recently announced that 32 projects across 20 regional and shire councils would receive

funding. “These projects have a total cost of almost $230 million, of which Royalties for the Regions will provide just over $100 million,” he said. State Member for Mount Isa Robbie Katter has called for an independent review of the government’s Royalties for the Regions scheme. He believes bigger centres like Cairns and Townsville should not be eligible for funding. Mr Katter said in 2012-13 mining royalties were estimated to contribute $2.3 billion to the State’s total revenue, while the Government was handing out a

Many councils have missed out on funding for infrastructure from the Royalties for the Regions scheme.

meagre $125 million per year. “This (second round of funding) falls embarrassingly short of what is required in Queensland, offering less than

4 per cent return compared to 25 per cent in the highly successful West Australian system,” Mr Katter said. Mr Katter was disappointed

Mount Isa did not figure in the shortlist of 32 projects this year. “The second round of grants were bittersweet for my electorate of Mount Isa,” he said. “I was pleased that three projects in the Cloncurry and McKinlay shires will share $6.3 million, but on the downside it was a slap in the face for Mount Isa.” Shortlisted councils and shires must prepare business cases before the money will be released. All applicants have been urged to seek partnerships with the industry sector to enhance the prospects of being successful.

State counts the cost of natural disasters Queensland’s succession of natural disasters since 2010 has come at a huge physical and emotional cost. Department of Transport and Main Roads Reconstructing Queensland division figures bring into focus the scope of damage to the state’s road network. In early 2011, Reconstructing Queensland figures revealed that 100 per cent of the state was deemed disaster-affected with 20,610km of roads closed. In 2012 the state was again heavily impacted by natural disasters, with more than 10,890km of state-controlled roads closed. The Government’s response was to allocate

$6 billion to reconstruct 8545km of roads impacted by floods and cyclones in the summers of 2010, 2011 and 2012. As Charters Towers Regional Council chief executive officer Mark Crawley points out, that is to restore roads to a state they were in before the natural disasters struck. That council – which covers an area larger than Tasmania - has had $61 million of a total funding allocation of $65 million approved for its road networks. State and Federal funding on roads is welcomed, but new projects have slowed, particularly in areas outside major population centres - regions where resource companies

have unearthed riches to feed the Australian and international hunger for energy and metals. The LNP’s Royalties for the Regions program has set aside $495 million over four years, then $200 million each year, for regional projects including roadworks. The first allocation in 2012 of $49 million benefited six councils directly linked to the mining industry. In addition, the mining industry contributed $9.7 million, councils contributed $6.7 million with an additional $12.4 million coming from other State and Federal agencies - bringing the total to $78 million.

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Roads – design, construct, maintain

The Mining Advocate | November 2013

23

Council challenge on damage Mining operations are placing significant strain on the condition of local roads throughout central Queensland, according to Isaac Regional Council chief executive officer Terry Dodds. The council put forward its Social Impact Assessment Guidelines – Genuine Local Government Partnership motion at the recent Local Government Association Queensland (LGAQ) conference held in Cairns, which addressed a number of issues including road damage. Mr Dodds said mining operations should be held more accountable for damage to local roads. “As one of Australia’s top coal mining provinces, the Isaac region has struggled to mitigate impacts from poorly planned industry development,” he said. “This continues to place significant strain on our infrastructure and, as we plan for the future, we need greater clarity and decision-making power from the Social Impact Assessment (SIA) guidelines to manage these impacts, especially mining. “We will continue to see infrastructure impacts across all communities in our region as our roads struggle to cope with an increase in the amount and

Roads being damaged by mining trucks is a vexing issue for regional councils.

roads through the EIS process, but when you get roads where trucks can run from various mining companies it’s hard to pin down and there has been some significant damage, so we’re looking for some compensation for that.”

A Queensland Resources Council spokesman said road users, including mining companies, paid for damage through a federal excise on fuel of 38 cents a litre, which was an equitable user-pays system. “This financial year, the

Photo: shutterstock.com/wawritto

Queensland minerals and energy sector is forecast to pay $2.6 billion to the State Government in royalties, which is used for the construction and maintenance of essential services across the state, including roads,” he said.

Terry Dodds Isaac Regional Council CEO

type of traffic using our roads. Simply, there is more activity than there is compensation to maintain our assets. “While local roads remain essential council business, our roads continue to be impacted by heavy machinery equipment which supports a range of local industries.” CQ Local Government Association (CQLGA) president Rick Hansen said that following the recent approval of an Isaac Regional Council motion, the LGAQ would pursue the matter with the State Government. “Much damage to local roads is due to the mining industry,” he said. “Some of the projects are required to take care of the

Road work waits on weather The Central Highlands Regional Council has $11.8 million to spend on road improvements south of Rolleston but the drought that grips many parts of inland Queensland has put a halt to the project. “The only thing that is stopping us now is the continued dry weather,” Mayor Peter Maguire said. The council has begun preliminary work, purchasing materials and making gravel, but any further work must wait until the drought breaks. The State Government’s Royalties for the Regions program provided $8 million towards the project - with an additional $400,000 from the Transport Infrastructure Scheme, $400,000 from council and the remainder from energy company Santos, a partner in the $18.5 billion GLNG coal seam gas-liquefied natural gas project. Council executive manager of corporate

communications Monica Sidhu said Santos had been conducting exploratory drilling in the Arcadia Valley Road area, the site of the project. A 23.5km section of the road will be upgraded to provide a consistent, all-weather surface. Other sections of the road will be widened to safeguard against motorists being forced on to the dirt shoulders to avoid oncoming traffic. Minor changes will also be made to road alignment, intersection works plus improved signage. “This will greatly improve traffic safety for all road users,” Cr Maguire said. “The increase of traffic caused by the coal seam gas industry activity has been significant. For the residents, a safe, trafficable road is a lifeline for their businesses, their education and their social wellbeing.” Cr Maguire said the contributions of the State Government and Santos were most welcome.

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24

Roads – design, construct, maintain

November 2013 |

Council on right track with works The Charters Towers Regional Council is two-thirds of the way through the largest road reconstruction project ever seen in the region. A total of $65 million will be spent on the council’s 4099km road network, which occupies an area larger than Tasmania. The massive project is part of the state-wide Natural Disaster Relief Recovery Arrangements (NDRRA) in the wake of flood and cyclonic events which battered Queensland between 2010 and 2013. Council chief executive officer Mark Crawley said council employees were responsible for completing about 20 per cent of the project, with a team of 20-30 workers on the job. The remainder of the work is being undertaken by contractors, many of them from the community. Mr Crawley was confident that the work would be completed by the June 30, 2014 deadline, barring any complications caused by the imminent wet season. The NDRRA funds must be

Mark Crawley Charters Towers Regional Council chief executive officer

used for the sole purpose of remediation of council’s road asset to a state before the latest flood event in 2012. The funds do not include any upgrade or maintenance of existing roads. Mr Crawley said he was disappointed that some of the funds couldn’t be used to better

upgrade certain sections of road. “But the comments we are getting from graziers is that they have never seen the roads so good, so it’s clear the people appreciate what has been done,” Mr Crawley said. The work is being completed as funds become available from the State and Federal coffers. Six of the council’s seven funding applications have been approved but Mr Crawley said he had not received confirmation of the seventh, worth just over $4 million, when The Mining Advocate went to press. Council’s director of road infrastructure, Cameron Scott, said it was a “very good outcome” for the council team which was working on the reconstruction. “It proved our work is of a high standard and that is really beneficial to our staff,” he said. “We’ve proved that we can do this work efficiently and we can now apply this same methodology to other work.”

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The Mining Advocate

Increase in heavy traffic places real pressure on route The Charters Towers Regional Council is following up on reports from graziers that there has been a marked increase in heavy traffic using the road to Lake Buchanan off the Gregory Development Rd south-west of the town. Council chief executive officer Mark Crawley said he had travelled the area and seen heavy trucks himself while speaking to graziers. To quantify the increase in traffic, the council plans to place a road counter in the area to gather accurate data. Mr Crawley said the road had suffered as a consequence of the increased traffic and graziers in the area were concerned. He said graziers were uncertain who owned the trucks but two possibilities were being considered: increased exploration in the area and Indian company Adani, which is going through the preliminary stages of gaining a mining lease for its Carmichael mine site, just over the council’s border with the Isaac Regional Council area. Mr Crawley said he had heard reports that Adani was shipping infrastructure equipment through the Port of Townsville along the Flinders Highway on to the Gregory Development Rd and then down the road to Lake Buchanan. Adani has a work camp near the Carmichael lease which is understood to accommodate close to 3000 workers. Though the council has taken no formal steps at this stage, Mr Crawley did not rule out an approach to Adani in the new year to gain a greater understanding of future impacts on council’s roads.


Roads – design, construct, maintain

The Mining Advocate | November 2013

25

Expert says more cash needed A $10 million upgrade for the Bowen Development Rd announced by the State Government recently is a “drop in the ocean”, according to a Mackaybased road safety expert. Road Accident Action Group (RAAG) road safety co-ordinator Graeme Ransley said that with the huge Adani coal mining project expected to go ahead in the Galilee Basin, subject to State and Federal government approvals, heavy vehicle traffic along the road would ramp up dramatically. Any future coal mining projects in the Galilee Basin would result in the Bowen Development Rd carrying larger volumes of traffic because of its close proximity to the railway line to Abbot Point, he said. Extensive work on the existing railway line plus new sections are planned by Adani. The Bowen Development Rd joins the Bruce Highway just outside Bowen, runs south-west through to Collinsville and eventually joins the Gregory

Development Rd in the Bowen Basin. A joint submission from the Mackay Regional Council, the Whitsunday Regional Council and the Isaac Regional Council to the State Government’s Royalties for the Regions program resulted in the $10 million windfall. Mr Ransley said he drove the Bowen Development Rd earlier this year and was concerned by the state of the road. “There is an absence of rest stops for heavy vehicle drivers,” Mr Ransley said. “And there’s a work camp near the Adani lease that I reckon could accommodate 3000 people.” Whitsunday Regional Council Mayor Jennifer Whitney said the community and council had held strong concerns about the safety of the road for a long time. “The upgrade is a priority and council has been working tirelessly to secure funding for this road, which is a vital linkage for both the community and resources sector,” she said. “There is no doubt in anyone’s

Road Accident Action Group road safety co-ordinator Graeme Ransley.

mind that with the increase in the traffic volume over the past 10 years and the projected increase in traffic in the future, the upgrade will be vital in sustaining heavy transport loads, reducing ongoing maintenance costs and, most

importantly, improving the safety of road users.” Cr Whitney applauded the work of her colleagues from the Mackay and Isaac councils who played a pivotal role in securing the funding.

Photo: Damien Carty

She pinpointed the section of the Bowen Development Rd from Euri Creek to Bogie River as the highest priority section for the upgrade. Work is expected to begin early next year after the end of the wet season.

RAAG picks up award for vehicle rest area The heavy vehicle rest area at Waverley Creek, south of Mackay.

The Queensland University of Technology Centre for Accident Research and Road Safety Queensland (CARRS-Q) presented the Mackay Road Accident Action Group (RAAG) with the 2013 Queensland Industry and Business category award at its recent conference in Rockhampton. RAAG was recognised for its extensive community, industry and government collaboration to establish a state-of-the-art heavy vehicle rest area at Waverley Creek, south of Mackay on the Bruce Highway, and its continued efforts to campaign for better fatigue

management on Queensland roads. RAAG road safety co-ordinator Graeme Ransley said the rest area project had been years in the making, requiring the ongoing efforts and support of stakeholders across central Queensland. The facility includes separated parking for heavy vehicles and cars, short and long-stay parking, a bund wall to suppress highway noise and headlights, and new toilet facilities and rest shelters. Truck drivers had an input to the newly engineered facility through a survey held at Waverley Creek in May this year.

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Roads – design, construct, maintain

November 2013 |

FKG rises to the challenge A $100 million road contract for a major LNG player and the largest foamed bitumen stabilisation project undertaken in the southern hemisphere are among the tasks the FK Gardner & Sons Group has taken in its stride. The company has been in the civil and commercial construction business for more than 40 years. In recent times the group has expanded its operations to capitalise on opportunities aligned with the Queensland energy and resources boom. The company has also been a leading player in restoring the state’s road infrastructure in the wake of the natural disasters which struck between 2010 and 2012. These works have been delivered in regions including Isaac Regional Council,

A tanker carrying bitumen unloads into a resurfacing machine for a project on the outskirts of Toowoomba.

Maranoa Regional Council and Toowoomba Regional Council areas, and have totalled in excess of $180 million. To keep pace with the growth of the business, FKG now boasts strategically placed offices in Toowoomba, Roma, Brisbane, Mackay and Cairns to support their on-ground operations. In June 2013, FKG completed a $100 million roads project at Injune in the Surat Basin for the $18.5 billion GLNG project. The contract scope of works included construction of new roads and widening of existing ones to provide access to GLNG’s Fairview gasfields. It was FKG’s largest project to date. Project manager civil Mark Martin said the project threw up logistical problems keeping the

road open during construction. “Because of the critical nature of this road (in the heart of the gasfields) and upgrading it from a dirt road to sealed bitumen it was, in its own right, a major task and achievement,” he said. FKG is also an innovative company and is working on a

flood-damaged road project from the outskirts of Toowoomba to Pittsworth (northern corridor) and Pittsworth to Millmerran (southern corridor) which is the largest foamed bitumen stabilisation project undertaken in the southern hemisphere.The process involves overlaying and

Civvil Construc tion

widening existing pavement where required prior to stabilisation. Completion of the initial scope of foamed bitumen will see 39km of road rehabilitated using six million litres of bitumen and more than 6000 tonnes of lime within the foam bitumen stabilisation process.

Floodway funds for Central Highlands The Central Highlands Council has received more than $800,000 to upgrade 10 gravel floodways washed out in 2011 and again this year. The council will use money provided from the Betterment Fund to replace damaged gravel floodways with stronger concrete structures and stabilised gravel approaches to prevent damage in future floods.

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State Community Recovery and Resilience Minister David Crisafulli said the road upgrades were necessary as they were “vital links to emergency services and supplies during natural disasters” . The Betterment Fund is jointly funded by the State and Federal governments to give councils the chance to rebuild flood-damaged public infrastructure to a more resilient standard.

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Roads – design, construct, maintain

The Mining Advocate | November 2013

27

Leap of faith delivers results Andrew Franzmann and Jim Sullivan worked together with two major companies in North Queensland in senior positions and came to the same conclusion that what Northern Australia needed was a project management consultancy specialising in the delivery of infrastructure and assets. Both men have engineering degrees from James Cook University with more than 45 years’ combined industry experience and both are “boys from the bush” – Mr Sullivan from Mount Isa and Mr Franzmann from Hughenden. In 2007 the pair set up Project Delivery Managers (PDM) with a staff of three. PDM now boasts a staff of 28 who all subscribe to the company mantra, “Quality People, Quality Outcomes”. The cornerstone upon which the business has risen is independence and a sharp focus upon the needs of the client and the finished product. “Our role is to scope up what needs to be done for a client, then handle all aspects of the delivery train - this includes

the project feasibility, the engagement of designers for the design documentation, then the management and procurement of contractors to deliver the product the client is seeking. This often involves a site presence to monitor the quality of deliverables,” Mr Franzmann said. PDM’s areas of expertise cover project and contract management and the construction management as well as LiDAR. One project of significance to the mining sector that the company is currently project managing is the NDRRA work for the Charters Towers Regional Council, which is estimated at $65 million in value. This is funded under the federal and state National Disaster Relief Recovery Arrangements. Such is the diverse nature of the PDM team’s experiences, they have undertaken project management roles for a variety of clientele including mining companies undertaking access roads and tailings facilities, local government with water, sewer and landfill projects, roads and airports, the Australian Institute of Marine Science (AIMS) in delivering a

PDM LiDAR and GIS co-ordinator Andrew Lashmar, LiDAR and assets manager James Gage and director Andrew Franzmann.

leading facility for climate change research and even managing the winning, testing and shipping of sand from the Burdekin region to an oil and gas project in Russia. PDM has increased its professional services capability by offering LiDAR and 3D modelling services with the introduction to Australia of one of the most advanced mobile laser

scanners available on the market from LiDAR specialist Fagerman Technologies from the United States. Mr Franzmann said he and Mr Sullivan embraced new technology which would deliver PDM’s clients a higher standard of service. But paramount to both is the company culture. “Trust and reliability are

non-negotiable aspects of any working relationship between project manager and client,” Mr Franzmann said. “These are the fundamentals that PDM applies to every project to ensure the best possible outcome for their client. This allows our clients to focus on their core business knowing that their key project objectives will be met.”

Myuma meets indigenous training need The Myuma Aboriginal training organisation working out of the old Queensland Department of Main Roads camp at Camooweal in the north west of the state is streaming its trainees into hands-on work on two major road restoration projects. Indigenous trainees are learning to operate graders, rollers and drive trucks on the Gregory Rd project near Camooweal and on the Diamantina Highway near Mount Isa. Participants are bused to the projects and stay overnight in a work camp on Gregory Rd. Myuma Group managing director Colin Saltmere is a proud member of the local Indijlandji tribe and has worked in and around Camooweal most of his life in the

pastoral industry. He was disenchanted with the job openings for indigenous people in the district as the mining boom gathered momentum. He formed the Myuma (“do good” in the Indijlandji language) training organisation with the help of local businesses in 2006-07 and since then more than 350 indigenous people have completed a range of training courses. The 12-week residential courses are now run three times a year with an intake of 20 trainees. Over the years Mr Saltmere’s efforts and success rates have not gone unnoticed by the mining industry plus the State and Federal governments, which equally fund the program. The Myuma Group was recently

recognised at the 2013 Queensland Reconciliation Awards, where it was joint winner of the Premier’s award. Myuma is also a fully accredited not-forprofit road-making operation with a staff of 100 workers, of which 73 are indigenous. Mr Saltmere has formed close working relationships with Century Mine and CopperChem as well as BMA mines in the Bowen Basin, which all advertise trainee positions at their sites for courses at Myuma. Mr Saltmere said there were more applicants than trainee positions and the final selection was undertaken by the mining companies. Of the trainees involved in the past three courses, 90 per cent have gone on to secure full-time employment, according to Mr Saltmere.

Major project will end flood plain pain Work is expected to begin early in 2014 on a crucial piece of road infrastructure aimed at taking another key step forward in flood-proofing the Bruce Highway. The State Government has approved the $256 million Yeppen South project, south of Rockhampton, which will feature a 2.8km elevated section of roadway across the Yeppen flood plain, a notorious blackspot. The new structure will boost the current flood immunity from a one-in-15-years event to a one-in-100-years event. “It is hard to overstate the importance of the Yeppen South project,” Rockhampton Regional Council Mayor Margaret Strelow said. “The project will allow flood-free access to our new industrial precinct at the Gracemere Industrial Area, which highlights that Rockhampton is playing

an ever-increasing role as a major supply centre for the Bowen Basin coal mines.” Cr Strelow said the project would also provide improved access for traffic and freight travelling from Rockhampton to Gladstone and also to western and northern Queensland. The Bruce Highway was closed for 14 days during the 2011 flood, causing chaos for motorists and disrupting the passage of freight north of Rockhampton. Once complete, the Yeppen South project will feature an elevated crossing from the Burnett Highway intersection to the Yeppen roundabout. It will link with the northern end of the floodplain which is already protected against a one-in-100years flood event. Outside of flood events, the Yeppen South project will increase the capacity of the Bruce Highway south

of Rockhampton. When completed, northbound traffic will use the high-level corridor while southbound traffic will continue using existing lanes. In a flood, traffic will revert to one lane each on the high level corridor. Department of Transport and Main Roads staff have shortlisted five companies/joint ventures to undertake the project. Representatives from the shortlisted companies are working through the early tender process with an announcement of the successful applicant expected by the end of the year. Depending on site conditions on the floodplain after the wet season, construction could begin as early as January. It is expected to take about two years to complete.

He said the trainees had gone on to become dump truck drivers, machine operators, apprentices, environment workers and even in the processing division of mining operations. Courses offered include Certificate II Mining Surface (extraction) plus land and sea rangers’ courses aimed at looking after rivers and creeks in north-west Queensland and the lower Gulf region. In addition to the 10-week traineeship, two weeks at the start and end of the course are devoted to developing leadership skills which have potential to be of great benefit at work and in the wider community. “I’ve got great feedback from the families of the trainees,” Mr Saltmere said. “In the past they (the trainees) couldn’t get a job. “I’m told that some of them are buying houses while others are planning travel overseas.”

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Roads – design, construct, maintain

Funds will ease major congestion Development body Toowoomba and Surat Basin Enterprise and the Toowoomba Regional Council have had a significant win in easing ongoing traffic congestion caused by heavy vehicles using O’Mara Rd on the outskirts of Toowoomba. O’Mara Rd intersects the Warrego Highway, where large trucks were turning to access the new 2000ha Charlton Wellcamp industrial estate. TSBE chief executive officer Shane Charles said turning trucks, many of them B-doubles carrying pipes, were causing chaos on the Warrego Highway - prompting the State Transport and Main Roads Department to deny access to those vehicles. “The trucks were forced to take a long detour to reach the

industrial estate, so we started lobbying the State Government about 10 months ago to do something to fix the problem,” Mr Charles said. The result was a provisional $10 million in funding from the Royalties for the Regions program. Private and developer contributions of $3.86 million and $7.2 million in council funding will also back the $21 million project. “This work will upgrade the O’Mara Rd connection to the Warrego Highway, enhancing its capacity to support increased traffic, improve road safety and also improve access to the Charlton Wellcamp Enterprise Area,” Deputy Premier and Minister for State Development, Infrastructure

November 2013 |

The Mining Advocate

Right - Deputy Premier Jeff Seeney with Toowoomba Mayor Paul Antonio.

Below - An artist’s impression of the O’Mara Rd project

and Planning Jeff Seeney said. Mr Seeney said the project was the initial phase of the duplication of O’Mara Rd

between the Warrego Highway and Toowoomba-Cecil Plains Rd. Toowoomba Regional

Council will now have to submit a detailed business case for the project to have the funding confirmed.


Roads – design, construct, maintain

The Mining Advocate | November 2013

29

Milray Contracting on a roll Charters Towers-based Milray Contracting is investing heavily in people and equipment as it continues to expand into more civil and miningfocused business. Formed in 2008 by cattle property owner Shane Meteyard with a workforce of three, the Charters Towers-based business now boasts 50 contractors and fulltime employees and is continuing to grow. Like many cattle property owners, Mr Meteyard ran earthmoving equipment to tackle a variety of tasks but was quick to realise it was underutilised and seized upon adversity out west in 2009 during the floods to contract his equipment for road repairs. Word spread that he is a man who delivers results and has had a road maintenance and repair contract for the Charters Towers Regional Council. Always on the lookout for new opportunities, Mr Meteyard and his team have formed partnerships with mining

Shane Meteyard Milray Contracting founder

exploration companies in the Bowen and Galilee basins performing various earthmoving activities. Mr Meteyard’s philosophy is summed up as only a boy from the bush could explain it: “Bite off big chunks and chew like hell.” Milray operations manager Dave Muguira said the company had invested significantly in equipment in the past six months. Joining the fleet is

a Caterpillar RM500 stabiliser and Streumaster SW20MC binding agent spreader. The new equipment is used in the road-making arm of the business. Milray has formed a close working relationship with Caterpillar and the bulk of the company’s fleet is made up of Cat equipment. “If we need specific equipment we have a professional relationship with Cat Rental,” Mr Muguira said. While quality equipment is a hallmark of Milray Contracting’s business focus, so is maintaining high skill and safety levels within the workforce. Milray Contracting has a qualified trainer and assessor with vast experience operating plant throughout Queensland. He is tasked with keeping equipment operators up to speed with industry bestpractice methods. Milray Contracting has a project-driven philosophy which has seen the company tender for

Infrastructure alarm An organisation representing consultants operating in the built and natural environment has painted a bleak picture, with thousands of staff cutbacks across Queensland. Consult Australia Queensland manager Stacey Rawlings said while there had been renewed confidence for road building with the change of the Federal Government, the scale of the infrastructure backlog nationally and in Queensland remained enormous. “The funding and financing challenge for infrastructure across the state remains acute,” she said. “The recent contraction in infrastructure spending across government means that those industries servicing infrastructure, property and construction are struggling.” Consult Australia represents an industry employing more than 240,000 people nationwide. A survey of Queensland members revealed more than 2000 staff redundancies across engineering, architecture, project management, quantity surveying and related professions in the past 12 months. While the situation is dire

according to Ms Rawlings, there is also concern for the longer-term productivity impacts associated with underinvestment in critical infrastructure. “With all infrastructure projects, including roads, we see a significant time lag between their prioritisation

and the securing of funds to the flow-on to jobs to the consulting industry,” she said. A solution could lie in industry and government collaborating to decrease the impacts of boom and bust cycles to bring about a longterm pipeline of projects, Ms Rawlings said.

Govt unveils asset management roles Three Australian groups have been awarded fiveyear contracts by the State Government for road asset management in south-east Queensland. The companies involved are Leighton Boral Amey Joint Venture (Gold Coast area), Road Infrastructure Services (Brisbane area) and Downer Mouchel (Sunshine Coast area). Transport and Main Roads Minister Scott Emerson said the contracts were part of a program which would underpin local jobs and give taxpayers real value for money. “During the past 10 years taxpayers have been slugged far too much for roadworks, with the cost of building and maintaining roads in Queensland increasing at well above the national average,” Mr Emerson said. “These new contracts will deliver more bang for our buck, and encourage innovation and the use of new products and treatments as we keep striving to deliver better infrastructure and better planning for Queensland.” The new contracts are a result of government reforms to RoadTek across south-east Queensland, which were announced in June 2012. RoadTek will still play a role in regional and remote areas to deliver when private firms are unable to do so.

The Milray Contracting fleet gets down to work.

projects outside the core business of earthmoving and road construction. Milray Contracting’s current project at Carborough Downs coal mine, 20km east of Moranbah, could well be a precursor to a significant expansion of the roadmaking operation. The mine’s 4km

bitumen access road is being upgraded using new equipment including a stabiliser and the Streumaster spreader. Mr Meteyard is looking confidently to the future with his eye on also building and upgrading haul roads at mining sites and constructing tailing dams.

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Never one to miss an opportunity, he has started a mechanical repairs workshop and is looking into offering not only in-house training for his employees but a raft of courses for other businesses. “If you stop moving forward you go backwards,” he declares.

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30

INDUSTRY PROFILES

November 2013 |

The Mining Advocate

George finds the need for speed George Brischetto Workshop lead hand at MMG’s Century mine

George Brischetto has two women in his life; Tanya, his wife of 17 years, and Wilma, the pink VL Commodore that he built from scratch and can now be seen tearing up the dirt at speedway races. Mr Brischetto is the workshop lead hand at MMG’s Century mine in north-west Queensland, where he has worked since 2006. He is responsible

for allocating jobs in the workshop, ordering and organising parts, and conducting handovers between staff. Mr Brischetto said the fly in-fly out nature of his job gave him longer periods of time to spend at home with his family doing the things that they loved. “The family is the most important thing to anyone,

at least it certainly is for me,” he said. “When you don’t have that face-to-face contact it’s hard and there’s little things that you do miss as FIFO. “The other side of the coin is that when you are home, you’re home for five or six days at a time. The lifestyle has its negatives but the positives certainly outweigh them.” The Brisbane resident

uses his spare time to build and restore cars. He also acts as the “Family Crew Chief ” for his wife, who races at speedway, and his son who works professionally on V8 Supercars. “Building cars is one of my passions, we love our motorsport in our family,” he said. Mr Brischetto said he had always worked in quarrying and mining despite his aspirations as a young boy to join the police force. “When I was a little boy believe it or not I wanted to be a policeman. It was one of my dreams back then to join the force,” he said. “Things change, you know, from when you’re nine or 10. I guess I just wanted to help people. “I think I do get to apply some of that helping people in the role that I’m in now

as leading hand with the apprentices. “I get to be there for them if they need someone to talk to about anything and everything. I can pass on things that worked for me in my experiences and just share that information.” Mr Brischetto says he would like to further his

training and move up in the ranks with MMG. “One day I’d like to become a supervisor on my own merit,” he said. “I have a lot of things to learn. There are a lot of things that I’d like to do and MMG is a company that gives the opportunity to train and learn.”

Wilma, the other woman.

Engineer Adam excels at selling Adam Bradley Rocla Pipelines Products capital works sales engineer

Rocla Pipelines Products employee Adam Bradley is only 27 but has already taken significant steps up the corporate ladder, not just because of his double degree from the

University of Queensland in civil engineering and commerce. Mr Bradley has found he has an innate ability beyond his academic skill set – selling. “I’ve always enjoyed

meeting people and I have always been interested in sales,” he said. The Brisbane boy’s career path was on a more conventional track when he took a job with a

design firm soon after he graduated in 2008. “I found it boring in an office, I like to get out and about,” Mr Bradley said. He said a recruitment agency offered him a job interview as Rocla’s capital works sales engineer and he seamlessly slotted into his new role, where his latent skills have flourished. Good timing also played a pivotal role as Rocla was looking to tap into the opportunities in the Surat Basin, where international consortia are tapping into massive coal seam gas reserves which are being piped hundreds of

kilometres to Curtis Island, Gladstone, for conversion into LNG. Mr Bradley has been with Rocla a little over three years and in that time has clinched supply contracts with big players on the Australian construction scene, Thiess and Laing O’Rourke. He has also developed an extensive network of contacts through his close association with Toowoomba Surat Basin Enterprise. “Rocla has supported and encouraged my development and allowed me to work autonomously throughout the Surat

Basin region, which has been the driving factor behind our success in this market,” Mr Bradley said Mr Bradley agrees he is probably an “overqualified” salesman but is quick to add his engineering and commerce skills have been more than useful in the cut and thrust of negotiations. Mr Bradley is Brisbanebased but spends probably three days per fortnight on the road dealing with his clients. He sees more challenges ahead with Rocla once the Curtis Island LNG projects transition to the production phase.

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56 Annual Conference

The movers and shakers of the quarrying business gathered in Townsville recently for the IQA 56th Annual Conference. The IQA - Institute Of Quarrying Australia represents members across a range of extractive and processing industries. This special feature looks at quarrying challenges, capabilities and achievements in Queensland.

Lou Renard and Steve Duffy (both Raev Engineering) with Ciaran Ryan (Sandvik Mobiles).

Derek Moullae (Rocla) and Jim Hankins (Rivergum Industries).

Graham Smith, Geoff Price, Steve Daly and Allan Schoenfisch.

Jim Lawler (Groundwork Plus), Paul Kerr (Precisionscreen) and Clayton Hill (Groundwork Plus).


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IQA 56th Annual Conference

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The Mining Advocate

Conveying a sense of excellence Conveying is an industry that is often overlooked but it plays a big part in many projects and operations worldwide, according to Conveyor Maintenance Services managing director Dave Allen. Quarries, sugar mills, mobile crushing and screening units, agriculture, food industries and cardboard manufacturing are just some of the areas that use conveyor systems for their material handling solutions. Conveyor Maintenance Services (CMS) in Townsville provides conveyor products, installation and repairs in all of these areas. “We service customers throughout Queensland from Mackay, west to Mount Isa, Georgetown and north-west Cairns region,” Mr Allen said. “I think customers like that

we have a large variety of stock. Our field service teams are able to install the products, and the job

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CMS carries a large range of conveyor belt products.

is completed with nil or minor assistance from the customer. “Our field service trucks are fully self-contained with power, air, water, winching equipment and all tools needed for remote site work.’’ Conveyor Maintenance Services stocks a wide range of products

including conveyor belts of all widths, conveyor rollers and frames, conveyor belt cleaners and skirting rubber. The business has the capability to hot splice conveyor and transmission belts from 30mm wide up to 2200mm wide - rubber, steel cord, solid

woven and PVC belting. “We are an owner-occupied, family-run business that is continuing to grow,” Mr Allen said. “We’ve been operating in Townsville for nearly 11 years servicing local and regional customers. We also have the

capabilities to custom-design conveyors for our clients - any width, any length and to carry a variety of products whether it’s sand, gravel, hard rock, fertiliser or frozen food. “I have 25 years’ experience in the conveying industry, and the company has an experienced workforce. I’m fairly familiar with customer needs, with the experience I have, and I do feel like I can relate to customers needs. “We have very competitive pricing and most of our products are supplied direct from a manufacturer. All of our products are certified to their relevant Australian standards.”

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IQA 56th Annual Conference

The Mining Advocate | November 2013

33

Institute digs deep on issues by Dominique Kimber Workforce issues are at the centre of quarrying industry concerns according to the Institute of Quarrying Australia (IQA) general manager Paul Sutton. Mr Sutton said skills shortages, limited opportunity for development and the presence of an ageing workforce were all factors impacting on business. “A lack of skilled workers and a lack of training opportunities, especially in very small operations where training someone can have an impact on production, means quarries can have difficulty in attracting the right staff,” Mr Sutton said. “If you employ somebody and they don’t have the experience and skills required, you spend a lot of time working hand in hand with them to get them across the line. “It makes things quite difficult for quarry owners and managers in particular. “There is also the issue of an ageing workforce. We’re not saying there’s a problem with the age of the workforce, what we’re saying is that a lot of good corporate skills and knowledge will be leaving the industry soon.” The IQA is working with regulators and executive bodies across Australia to help address workforce-related issues.

Paul Sutton Institute of Quarrying Australia general manager

Throughout 2014 the IQA will focus on its quarry management certification system, a program aimed at providing its members with recognised qualifications in quarry management and supervision. “We’ve introduced the quarry management certification system, which provides an opportunity for our members working in the quarries to become certified either as a quarry supervisor or quarry manager. The certification meets the legislative requirements of the regulators in the various states and

The IQA is working to address workforce issues across the quarrying industry.

territories,” Mr Sutton said. “Workforce issues are the IQA’s major role. We provide education through our professional development programs, online programs and coaching or mentoring programs. “We provide professional networking opportunities to ensure that we can address and deal with skills shortages, we’re attracting the right staff,

and we’re able to engage our young members. We have also increased or expanded our professional development programs to include technical and management to help the operators and to give the workers the knowledge and the skills to move forward.” Mr Sutton said an increase in IQA memberships over recent years proved that what the IQA was doing was relevant for the

Photo: Stewart McLean

industry. “Membership has been on the up for the last three years. “I think we’ve seen around a 20 per cent increase and a rapid increase in the number of young members,” he said. “We envisage this continuing. There are only about 2000 people working in quarrying across Australia and at this stage we have about half of that in members.”

Delegates enjoy the chance to get together More than 380 delegates attended this year’s Institute of Quarrying Australia (IQA) conference in Townsville. The conference ran over three days and included a range of talks from industry experts, a trip to the Holcim quarry in Bohle and the presentation of 11 awards. This year was the first time the conference had been held in North Queensland. Conference chairman Gavin Markwell said the local area would have felt the benefits of strong attendance numbers. “Over 380 people hit the town for the conference, which would have been a great boost for the Townsville economy,” he said. “These conferences are important for industry because it’s an opportunity for industry people who attend to get together. “We’ve had very positive feedback from delegates that attended. Delegates enjoyed the Holcim day and enjoyed the conference being held in the one area and I think they also enjoyed the good range of speakers that we had.” Mr Markwell was among this year’s conference award winners. He received the Rocktec Innovation Award which recognises an individual’s contribution to excellence and innovation in the quarrying industry. Other winners included Carlson Daniels with the Hap Seng Fellowship Award, Brad Doyle with the Caterpillar Continuous Improvement Award and Craig Potts with the ESCO Young Members Award. A full list of this year’s award winners can be found on the IQA website www.quarry.com.au

Markwell Group managing director Gavin Markwell speaks at the Institute of Quarrying Australia 56th annual conference in Townsville. Photo: Allison Bessell

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IQA 56th Annual Conference

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Markwell makes an impact on industry Customer service, innovation and safety are all key focuses for Markwell Group. The Townsville-based family business has been specialising in plant hire, rock crushing, demolition and asbestos removal for more than 30 years. Its services are available throughout Queensland and as far afield as Papua New Guinea. “We provide crushing and plant hire services on dry and wet hire, contracting to mines, quarries and the civil construction area, as well as demolition works including asbestos removal,” managing director Gavin Markwell said. “Markwell Demolition is well known throughout North Queensland. Markwell was the contractor for the old Townsville Hospital in North Ward and more recently the demolishers for the Stockland multi-storey carpark in Townsville as well as stripout works for the entire upgrade of the shopping centre.” Mine sites and quarries are a specialty, with the company having completed project works at Moorevale mine, Lady Annie mine, CopperChem, Ernest Henry mine and Century mine as well as Holcim, Hanson and privately-owned quarries. Mr Markwell said the crushing division of Markwell Group not only hired out equipment but assisted the customer by advising them of their best options to maximise quality and quantity of production for their project. “We can also provide the ancillary equipment including longreach excavators, rockbreakers, loaders and dump trucks,” he said. “Training and on-site machine servicing are also available. As part of the Markwell service we can

assist the customer by visiting their site and ensuring they are getting the right machine for the job. We offer the option of a tonnage rate or an hourly rate that will suit the individual customer.” Mr Markwell said the Markwell Group was a key player in North Queensland plant hire and was constantly striving towards staying in that position into the future. The company is always looking for new and innovative ways to complete work – a fact that received recognition at this year’s IQA conference in Townsville, where Mr Markwell received the Rocktec Innovation Award. The national honour was awarded for the idea of a modified guard system for crusher, screening and conveyor plants. This innovation allows the guards to be cleaned without being removed. Mr Markwell said the idea was driven by a need to increase workplace safety. “In recent years, there have been a number of fatalities in the industry through not having guards installed on conveyor rollers and I wanted to minimise the risk of it occurring with our machines,” he said. Mr Markwell’s design reduces the manual handling involved in cleaning the rollers while preventing the guards being removed by operators. Mr Markwell said a primary focus for Markwell Group was to deliver excellent customer service. “We recognise that this industry thrives on relationships and we pride ourselves on building those relationships with our clients,” he said. “We’re online, on the phone, and we’re on Facebook, so you can find us in a number of ways.”

The Mining Advocate

Markwell Group general manager Tonya Kyle with managing director Gavin Markwell and Lachlan Miller at the TORGAS awards.

Time invested in staff Providing career development and opportunities for others through training and work experience is a passion for Markwell Group general manager Tonya Kyle. Ms Kyle says the company delivers excellent customer service through its current staff, and will continue to do so through the staff of the future. “We invest a lot of time in our training and it’s something we’ve been heavily focused on. We don’t just want to develop a diesel fitter, we want to develop a great diesel fitter,” she said. “We have about 65 employees at the moment but it usually varies between 65 and 85 depending on the season. “We promote people moving within the company. So, for example, we have operators that have had training and development and have moved into office functions. We’ve also had office staff who’ve gone on to work in the yard. It gives us a chance to

offer diversity to our employees. “We have a number of different areas of business, which provides the opportunity for our staff to gain valuable experience across the business.” The company also takes on apprentices each year to introduce young people to potential career opportunities. Ms Kyle was awarded as Mentor of the Year at this year’s TORGAS (Townsville Regional Group Apprentices Scheme) awards, and one of the company’s apprentices - Lachlan Miller - took out the Most Outstanding First-Year Automotive Apprentice award. Markwell Group managing director Gavin Markwell is also the director of TORGAS and says the scheme allows Markwell Group to open opportunities for youth in Townsville. He has also recognised that an investment in apprenticeships now is an investment in the future of the industry.


IQA 56th Annual Conference

The Mining Advocate | November 2013

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Hard job keeping Gen-Y workers by Dominique Kimber The No.1 reason Australians give for leaving a job is that they don’t feel their career is progressing fast enough, meanwhile employers are struggling with the cost of constantly having to recruit and train new staff. Chief creative officer and cofounder of behavioural change group Changelabs, Dominic Thurbon, spoke to this year’s Institute of Quarrying Australia

(IQA) conference attendees about the struggles between employers and Gen-Y staff. Generation-Y staff are classed as those aged between 18 and 25 and in fulltime employment. A common complaint from employers is that Gen-Y staff don’t stay long enough in their jobs. Mr Thurbon said there were ways that employers could manage their Gen-Y talent more effectively. “When you consider that the

cost of replacing a staff member can be anywhere from the average $10,000 of hard costs on advertising, interviewing and that kind of stuff up to two times their salary depending on how complex their job is and how long it takes to retrain them, it’s important to take a look at how we do talent attraction and engagement a little bit better,” he said. Mr Thurbon said the issue was particularly relevant to quarrying and related industries.

“The whole ‘our Gen-Y staff don’t stay long enough’ is particularly prominent in tradebased, construction-based and what you might call the bluecollar industries,” he said. “With internet, social media and all that kind of stuff, the talent go fast. Faster than ever before. “Supply and demand is shifting in the labour market. It used to be take a job and stay with it for life. Now the average Gen-Y will have anywhere

between 25 and 30 jobs across five different industries, three of which don’t yet exist today in the form they will when they work in them. The shape of careers is changing. We need to find a way of providing the feeling of career progression. “It used to be a psychological contract of loyalty for job security, now it’s a trade of turning up in return for making an employee more employable for when they leave … and they will leave eventually.”

Beacon visit to quarry shines a light for students Forty-five high school students joined IQA conference delegates for a visit to the Holcim quarry at the Bohle near Townsville. The trip was organised in conjunction with the Beacon Foundation - an organisation which aims to tackle the issue of youth unemployment by working alongside schools, students and businesses such as Holcim. Holcim area manager Chris Larson said the students were there to gain exposure to some of the career paths available to them in the quarrying industry. “The main aim was to show students the mining and quarrying industries and what’s involved. We also expose them to various operators and to some of the opportunities available to them,” he said. “We have tonnes of opportunities and career paths here at Holcim - geologists, engineers, boiler makers, technical engineers, so a whole range of opportunities. “We also have options for young people who don’t want to go through a full education process at uni, a pathway to take them through quarry management through the quarry institute. “Holcim has been involved with the Beacon Foundation for 14 years now across Australia.” According to the 2013 ABS Labour Force Survey, Queensland’s north has a youth unemployment (ages 15-24) rate of 10.9 per cent. Partnership manager for the Beacon Foundation in the Townsville and Sunshine Coast regions Jade Leishman said student visits to places such as the

Holcim quarry gave Beacon the opportunity to educate and inspire kids. “Youth unemployment generally runs around four times higher than the national unemployment rate,” she said. “We work with three schools in the region – Thuringowa State High School, Kirwan State High School and Ingham State High School. “A part of what we do is engage students in a hands-on activity on site. The quarry visit is a really good example of that. “It’s an opportunity to not only experience the industry but meet people, because we find that that one-on-one connection can be really powerful for young kids. “With the quarrying industry in particular, we work with Holcim to really engage young people to that industry and they have an ageing workforce so it’s also a really good way for Holcim to tackle that issue moving forward.” Miss Leishman said the visit to the quarry during the annual IQA conference was received well by the students. “One of our core beliefs is that it takes a village to raise a child and I think that that really captures what we aim to do,” she said. “We had a phenomenal response from the students. Some of the feedback has been powerful and some of the students said that being there was life changing for them, which is amazing. “It’s about unlocking that motivation in students for their career pathways.” Operations at Holcim’s Bohle quarry.

Photo: Allison Bessell

Long-term plan in place for Bohle site

Holcim area manager Chris Larson with Ingham State High School students Drew Jerman, Kyle Inserra, Jye Thomas, Chris Deluca, Sam Parker, Kurt Tane, Robert Crump, Paul Fenlogia and Kieren Gosney. Photo: Allison Bessell

The Holcim quarry in Bohle is set to end its current operations in the next two decades. And there are plans afoot to turn the site into a reservoir system in partnership with the Townsville City Council. Holcim area manager of NQ aggregates Chris Larson says the Bohle quarry has been in operation for 70 years. “This quarry has been operating since 1943. Holcim took it over about 45 years ago. It’s a critical part of the aggregate supply chain in Townsville,” he said. “The future for the quarry is a reservoir system in production with Townsville City Council. So when we finish quarrying we will turn it into a water mass. “At this stage, that will all go ahead in about 20 years’ time.” Holcim has also re-started its quarrying operations at Roseneath in preparation for the Bohle quarry closure. “Our quarry at Roseneath will take over from this quarry in the future. We re-opened it two years ago and eventually it will supply high-quality aggregate,” Mr Larson said.


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Core values guide company Geologist turned businessman Richard Ernst joined Crushing Industries in Mackay about 18 months ago knowing he had a challenging assignment given the toll that the GFC and the coal sector downturn had taken on local businesses. He had a clear plan and a set of core values – network, knowledge, performance – to grow the business in a challenging market in his role as chief executive officer. The business has prospered via the company’s network of 13 strategically located quarries in the Bowen Basin and a knowledgeable staff of 44. Innovation and a “can do” attitude have also ensured that Crushing Industries enjoys repeat business in a competitive marketplace where contracts are no longer easy to come by, according to Mr Ernst. “Getting the company’s name out there to players such as

the mining giants, the State Government, councils, and small to medium companies like concrete and asphalt production businesses is important,” Mr Ernst said. “Gone are the days where there seemed to be a new coal mine popping up every week.” The company is close to running field trials on two new products specifically designed for use at mining sites and on road construction projects. Initial testing has allowed staff to develop a road surface product with low dust qualities and another that creates a lowskid surface, both attractive products at mine sites and in road construction. Mr Ernst cited two recent projects which underscore the company’s ability to deliver a product with very specific requirements. Crushing Industries delivered 400,000 tonnes of road base

IPCC drives major change in the industry by Dominique Kimber Capital costs and high energy prices present big issues for In-Pit Crushing and Conveying (IPCC), according to an industry expert. IPCC is an alternative means of material processing and handling, and with reduced labour and operation costs it has proven to be a popular option for larger mining and quarrying projects over traditional truck and shovel operations. Sinclair Knight Merz manager of integrated mining systems David Morrison says despite its advantages, IPCC is not suitable for everyone. “The main attraction we’re looking at with IPCC is a reduction in operation costs, and really the reduction of labour costs,” he said “IPCC approaches to mining are becoming more and more appealing but the thing is that the capital costs with these systems is huge, and facing up to that challenge is a big one. “It’s important to really prove that the system can provide the flexibility of operations that’s needed in order to meet a company’s

day-to-day, month-bymonth production profiles. “I’m confident that there will be a number of operations that really will be served by this technology, but a lot of the smaller startup operations probably won’t be. The technology has its place in large quarries with the jaw crushing stations and in the really big open cut mines that will likely be coming online in the next three to five years.” Mr Morrison said an important consideration for companies that were interested in implementing IPCC was the cost of energy to power the technology. “Energy is the biggest issue moving forward. It is a very energy-intensive business and availability of energy is going to be the big issue that these operations face in the future,” he said. “The future depends on carbon pricing, but it’s also going to depend on renewable-type generation systems, so I imagine there will be a lot of interest there. “Places where energy intensity is expensive, IPCC may not be so attractive.”

Crushing Industries Australia chief executive officer Richard Ernst.

to the Broadmeadow mine in the Bowen Basin, with 100,000 tonnes having to be crushed and sorted to a specific diameter of 200-400mm. The material was used to create a protective fabric over an incline adjacent to a watercourse and each 5000-tonne batch was checked by a client geologist to ensure it met requirements. Work on a flood-damaged section of the Landsborough Highway west of Barcaldine

also threw up a logistical challenge. The job required 130,000 tonnes of Type 2.3 road base which needed to be run through a pug mill in order to apply moisture to the material to aid compaction at the road site. “It wasn’t feasible to truck the (wetted) road base from our quarry at Alpha about 200km away because it would have dried out by the time it arrived on site,” Mr Ernst said.

“So we moved the pug mill to a site near the road works, trucked the material from Alpha, and wetted it at the temporary processing site.” Mr Ernst believes he has built his success on customer service, quality products, an unrelenting focus on performance improvement and most importantly, “doing what you say you will do”.

Astec’s new machinery crushes the competition A new crusher aims to increase productivity and safety for its users while reducing the cost of mining and quarrying operations. Astec Australia’s Telsmith T900 Cone Crusher promises to meet the 24/7 operating demands of hard rock mining applications. The mine-duty machine has a capacity output range from 550 to 2100 metric tonnes per hour, with up to a 15-inch feed size. The T900 is rated with the largest in-class clearing stroke, the highest in-class crushing force and has 900-HP performance, according to Telsmith director of engineering Albert Van Mullem. He said the new design of the T900 placed a key emphasis on safety and serviceability. “For example, its large clearing circuit is engineered to safely and quickly allow any uncrushable materials to pass; and its numerous innovative serviceability features differentiate the T900 from conventional units that typically require significantly more time in routine service,” he said. The crusher is designed with eight cylinders (versus 12 cylinders in conventional units) to reduce maintenance time and costs. It offers a new patent-pending antispin feature that prevents head spin, to extend manganese life. Like other key components, it’s mounted on top of the machine to offer top-service access. It’s

also designed to operate with pressure lubrication oil, while eliminating the use of a gearbox and a separate hydraulic circuit.


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