Mnm oct nov 2013 website by MWK Design

MINERS NEWS OCT/NOV 2013

Magazine Tel: 010 595 0208 Fax: 086 650 9939 Cell: 082 531 2835 076 608 7604 072 317 4877 E-mail: info@mcsmining.co.za

MCS Mining is a dynamic, well established company with a wide range of mining and civil related experience and expertise, with the ability to apply our professionalism towards meeting set targets and achieving most requirements. The MCS Workshop is fully equipped to maintain, service and supply all the necessary machinery used for all projects. As suppliers, we also cater for construction related supplies, safety equipment and basic mining needs including drilling equipment and cementation products.

P.O. Box 2147, Noordheuwel Ext 4, Krugersdorp, 1756

PUBLISHED BY: WOOTA PUBLISHERS AND PROJECTS TEL: +27 11 027 7687 FAX: +27 86 601 9195 EMAIL: info@minersmagazine.com WEBSITE: www.minersmagazine.com P.O.BOX 46593 ORANGE GROVE 2119 NO 6, 1ST ROAD, KEW, 2090 JOHANNESBURG SOUTH AFRICA

The Publisher does not accept any responsiblity for the accuracy or authenticity of the contributions contained in the Magazine and advertisements. Views expressed by the contributors are not necessarily those of the Publishers.

QCG on track to produce first LNG in 2014 The start-up of QCGâ&#x20AC;&#x2122;s LNG plant is one step

the gas fields to Curtis Island.

closer after the last piece of gas pipelined needed to transport CSG has been laid in

The company says facilities north of Miles

Queensland.

and on Curtis Island are being finalised to

The last of the pipe completes a two-year

QGC managing director Derek Fisher said

project for the gas giant which involved laying

the milestone represented a world-class

the longest large-diameter buried pipeline in

engineering feat.

regulate the flow of gas through the pipes.

Australia over 540km. The final kilometre of the 1m-diameter pipeline has been laid in near

"This is a tremendous achievement,

Biloela, with QCG expecting integrity tests to

meaning we remain on track to start

commence in the coming weeks.

commissioning the world's first plant to convert natural gas from coal seams into

When commissioned later this year, the

liquefied natural gas next year," Fisher said.

pipeline will move CSG from wells in the Surat Basin to the QCLNG plant on Curtis Island

"In the process we have set records for

near Gladstone where it will be processed for

Australian pipeline construction, including

export.

the longest twin pipe-pull in Australia when The Narrows channel at Curtis Island was

The pipeline comprises about 200km from

crossed earlier this year."

Dalby to Wandoan and more than 340km from

Sandvik cuts NSW manufacturing jobs Mining equipment manufacturer Sandvik will cut 37 jobs from its New South Wales operations as it battles weaker demand.

“Unfortunately, the continuing decline in market conditions has meant a decreasing order intake for our mining products,” Sandvik Australia country manager Rowan Melrose said.

have seen a further reduction in outbound orders during the year,” Melrose said. “This means we have no choice but to make these additional changes.”

The company said 25 jobs will be lost when it closes its conveyor component production unit located in Heatherbrae, NSW, relocating operations to Bayswater, WA.

Sandvik’s existing Bayswater operation currently manufactures the majority of rollers and pulleys for the local Australian market.

“We deeply regret the impact these decisions will have on the individuals concerned, their families and the Newcastle/Hunter region,” he said. Melrose said the move is “absolutely necessary” to ensure its components business stays in Australia. “While the closure of the Heatherbrae conveyor component production unit is a poor outcome for all concerned, the company is in the position where this is absolutely necessary to ensure the continuing viability of our conveyor components business,” he said. The company said redundancies will be finalised once its voluntary redundancy process is completed. Weaker conditions across both Australian and global mining sectors will see an additional 12 redundancies made across other production units at its Heatherbrae Hunter Valley Site (HVS) facility. “Since we announced some redundancies at this site in May 2013, forward orders have slowed further, plus we

Melrose said the company conducted a review of its global conveyor component capacity and decided to consolidate its entire Australian roller manufacturing activities. “Operating for over 50 years, the Bayswater facility is also our main location for conveyor components engineering, technical and production expertise,” he said. Melrose said Bayswater has recently been upgraded to improve production efficiency. “We have made significant investments in equipment, facilities and processes,” he said. Job losses have been experienced across many of the major mining equipment manufacturers this year. “Unfortunately, Sandvik is not alone in having to make these difficult decisions, with other suppliers of equipment and services, along with mining companies, announcing employment reductions and facing the same situation,” Melrose said.

Northern Star uncovers coal in the Pilbara In the meantime Northern Star has approved a budget of $2 million to carry out further drilling and establish a maiden JORC resource. “Whilst being disciplined in our spending, we propose to establish a JORC resource estimate and undertake the preliminary preparations for a corporate solution to potentially monetise our discovery,” Beament said.

Northern Star Resources has struck coal while looking for gold in Western Australia’s Pilbara region. The gold miner has made a significant coal discovery just 100 kilometres from its Paulsens gold mine.northern-starcoal-location.JPG. The discovery was made during reconnaissance drilling targeting palaeo-channels which the company thought would contain gold. Northern Star managing director Bill Beament said the discovery is a “potentially valuable find with the scope to emerge as a large-scale thermal coal deposit”. Initial exploration suggests the coal target could be as large as 340 to 615 million tonnes. Before making the announcement, the company was placed into a trading halt on Monday. Drilling indicates thermal coal intersections varying in thickness from 12 metres to 65 metres recorded in eight aircore drill holes along a seven kilometre strike, four of which ended in coal. The discovery lies beneath soft overburden ranging from 32 metres to 73 metres in thickness. Engaging independent coal consultant Xenith, preliminary analysis suggests the resource is a low-rank thermal

coal, similar to that mined in Indonesia and currently exported to India and China. The company said it will remain focussed on gold but plans to develop its coal assets via a joint venture, inspecie distribution of shares in a separate company or possibly put the find up for sale. “Northern Star has begun studying ways to optimise this discovery without changing its focus from gold,” the company said. “Initial analysis shows the coal would be suitable for fuelling a major base-load power station and may also be amenable for a coal-to-liquids project which could supply diesel to the Pilbara.” Follow-up drilling has already commenced with results due in the March quarter of 2014. The bulk of the exploration work completed to date has been on tenements that are 100 per cent owned by Northern Star. But the company said there is a potential for the seam to run onto tenements held by Fortescue Metals Group. “These tenements are subject to a joint venture agreement under which Northern Star can earn up to 60 per cent of the non-iron ore rights,” the company said.

becker- electronics wrap- intrinsically-safe...one Released by Lindy Morton, Festivitas, telephone (031) 502 2374 or 083 268 6666 For further information Mr Johann Smit, Becker Mining South Africa

Becker Mining South Africa, specialists in leading technology for the global mining sector, has a locally designed and manufactured Wi-Fi system which ensures reliable, safe and efficient communication underground. This system does not limit usage to a single technology, but encompasses migration and integration of many technologies.

WRAP is the primary component in creating the Becker WiFi IS backbone. The internal layer 3 router contains the logic to route all network traffic to the correct interface card or to the correct fibre point. The route of network traffic is based on the rules configured into the router itself. Firewall rules can also be configured to control bandwidth usage of protocols, as well as to provide security to the network.

The Becker WRAP (Wireless Router Access Point) provides a high speed backbone for wireless VoIP, seamless roaming of devices, advanced vehicular dispatch systems, process automation, as well as any device which can utilise a wireless, serial or fibre backbone.

If suitable radiating cable is used, the signal will be distributed evenly along the length of the cable, overcoming multi-path distortion. This results in excellent data speeds and throughput in underground installations.

WRAP has a versatile design, which means a combination of communications backbones can be used to optimise the system. For example, fibre can be used for high data throughput. In working sections of a coal mine, where there is frenetic activity, a wireless mesh topology is recommended. “Becker Electronics has made a substantial investment in researching and testing underground Wi-Fi systems to overcome the problems with conventional Wi-Fi systems in underground conditions,” says Johann Smit, Becker Mining South Africa. “A critical feature of this advanced system is its intrinsically safe design, which enables safe use in hazardous and harsh mining conditions underground. What's important about Becker's systems – each of which can be customised to exact requirements - is that each product can be installed as a single stand-alone system, or can be deployed using a phased approach to minimise a huge initial capital outlay.”

more becker-electronics-wrap-intrinsicallysafe...two This system incorporates on board tag readers, which reduces the equipment necessary in a full tagging and tracking solution. WRAP supports various configuration implementations ranging from traditional distributed antenna backbones, interconnected via a redundant fibre optic loop - to mixed configurations of distributed and leaky feeder backbones, using redundant a WDS (wireless distribution system) and redundant fibre optic loops. The unit incorporates an additional fibre optic port for teeing off the main backbone used for connecting to a switch. Each unit also includes an RS485 bus to communicate with any industrial serial device, such as multiple Becker UATRs (UHF active tag readers) for tagging and tracking implementations. An important feature of Becker's technology is each system is designed to facilitate future upgrades. These advancements are usually applied in the form of a software update. Hardware upgrades are implemented on an exchange programme basis. Systems from Becker Mining South Africa include near and far field proximity detection, collision avoidance and leaky feeder systems, as well as Wi-Fi, underground tracking of personnel and vehicles, decline traffic information and control and underground remote evacuation signalling. Fibre optic and digital radio networks, belt rip detection for overland conveyors and SCADA and Ethernet networks are also available from Becker Mining South Africa. Suggested Caption Becker Mining South Africa has designed a Wi-Fi system which ensures reliable, safe and efficient communication underground. The Becker WRAP (Wireless Router Access Point) is intrinsically safe for use in hazardous and nonhazardous environments.

Centennial slashes 120 NSW mining jobs Blaming the “ongoing economic downturn” for the cuts, Centennial said high production costs, weaker commodity prices and a stubbornly high Australian dollar is impacting the company’s competitiveness.

A spokesperson for the company said roughly two thirds of the redundancies will be made from Centennial's western Operations which includes Lithgow and Mudgee.

“Centennial has no option other than to reduce employee and contractor numbers further,” the company stated.

He added about one third of the cuts will be from its Lake Macquarie site.

“Unfortunately, as there are few signs of an immediate improvement and following the conclusion of a business review of all operations, further cost reductions will have to be made in order for Centennial to sustain its business and be competitive under current market conditions.” The company said it will attempt to keep redundancies to a minimum but expects 120 employees and contractors will be affected. Warning more cost cuts are in the pipeline, Centennial said it will be looking to cut supplier costs and secure production efficiencies.

Centennial Coal is cutting 120 jobs across its New South Wales operations.

The company said retrenchments will begin this week, with the majority taking place today. In the last year Centennial has placed its Mannering and Airly mines into care maintenance mode. “Both mines have struggled to make a positive contribution in their own right not only through the lower coal price but a combination of difficult mining conditions, poor coal quality and, in the case of Airly, transport costs have hindered the viability of these mines,” Centennial chief operating officer Steve Bracken said at the time.

BULK BAGS any given environmental scenario. Given the fact that the bulk bags are normally cubical in shape, space is easily maximised. Thus, freight and handling costs are reduced plus allowing proper utilization of warehouse space. Moreover, the super bags are in-built with discharge spouts that can be used in controlling the flow of products leaving the bags. In relation to the custom design, the bulk bags can be designed in such a way that the held products are protected from external Begin with, a bulk bag is also known as big bag, jumbo

contaminants like moisture. Special coating can be

bag, super bag or bulk sack. Bulk bags are known to be a

done on the bag or rather by putting a poly liner inside

very perfect solution when it comes to handling many

the bag.

bulk jobs. They can be purchased from stockinventories of used or refurbished, new or even be customized as per the user's specifications and needs.

chemical and construction industries to store and

For instance, a given company can work with the bulk

transport dry and flow able products like sand.

bag manufacturers to design the most favourable bulk

Transporting or loading is done on either pallets or by

handling solution. Bulk bags are made from strong

lifting from the loops. The big bags are made with one or

polypropylene woven material, which comes in different

several lifting loops. The single loop bag is designed to

sizes and hence a number of options can be seen due to

be operated by an individual since no other person is

different demands amongst the clients. The bags are

required to put the loops on the loader hook. In this case,

designed with a safety factor of 5:1, 6:1 and 8:1. This is

there are various options of emptying the bag. This is

to accommodate most of the available material as well

either by cutting it open or by using the special opening

as handling conditions. Custom designs are available

at the bottom like the discharge spout.

for projects ranging from small to large. Aside from that a number of bulk bags have been designed and sold to meet needs such as space, stacking, filling and discharge issues, handling of special materials, concerns on static guards and durability. Bulk bags are used for various purposes. First and foremost, using bulk sacks is less costly and calls for much less time as compared to usage of multiple small bags. They are also very safe to use and adapt evenly to 6

Bulk bags are often used in industries such as the

Australia should strive to be the world’s top uranium producer: AUA “The environmental assessment and approval process has been applied to uranium with a caution that is not proportionate to the environmental risks posed by the industry.”

In its latest newsletter the Australian Uranium Association said it’s about time Australia aimed to be the world’s top uranium producer, pointing to a raft of policy changes required to meet the target. The association says a political commitment to becoming number one combined with the completion of a policy framework are two key issues in increasing the production of uranium in Australia. “We can do it if we set our sights on becoming number one and if we address some of the remaining economic and policy issues that have impeded our rise in the uranium league tables,” the AUA said. It says the policy requirements needed to meet the goal of becoming a top producer are the same policy requirements for the resource industry as a whole, not for the first time calling on uranium to be treated just like any other commodity. “Becoming the world’s largest uranium producer is the next obvious goal in the normalisation of the uranium industry. It is only waiting for someone to say so,” the association said. Other policy needs it sees as important in boosting Australia’s uranium production potential include increases in competitiveness through productivity improvement, more efficient environmental assessments and approvals and addressing Australia’s high capital costs. Australia has the world’s largest endowment of uranium, with 33 per cent of the world's recoverable resources. In 2012, production from Australian mines rose more than 17 per cent to top 8000 tonnes. However, the level is below the period between 2003 and 2009 when it was 9000 to 11,000 tonnes. The AUA predicts that if the uranium industry was able to reach its full potential, exports would increase from 9,000 tonnes a year to 28, 500 tonnes a year. This would equate to between a $14.2 billion to $17.4 billion net value to the Australian GDP. Currently the mining of uranium is only allowed in the Northern Territory, South Australia and more recently in Western Australia with the association stating that “chequered policy settings” and a lack of a “national political consensus” has hampered its wide-scale production. The association says that while political impediments remain they will continue to give rise to uncertainty, keeping the industry from reaching its full potential. It points to policy approaches in both Canada and Kazakhstan, the world’s top uranium producers, as a pathway Australia can replicate to increase uranium production.

They say Kazakhstan is an example of how national goals to increase production can pave the way to become a top developer and exporter. Earlier this year AUA chief executive Michael Angwin said the local industry has been politically choked by fear. "I think there has been a political fear there will be a public backlash party if there is any support for the uranium industry," Angwin said. "A lot of this fear has been sparked by non-government organisations running scare campaigns in the media.” Australian Mining recently talked to Vanessa Guthrie, managing director of Toro Energy who said nuclear energy was still largely misunderstood in Australia and this led to misinformation and fear. “The nuclear fuel cycle is not well understood because we don’t have nuclear power in Australia and uranium itself and its properties are not well understood so it’s easy to create fear when there is not good information out there,” she stated. Guthrie pointed to BHP’s Olympic Dam mine in South Australia and ERA’s Ranger mine in the Northern Territory as examples of how attitudes around the sector are changing as the companies get on with the business of producing uranium without incident. “If you go into South Australia and go look back thirty or forty years when Olympic Dam was commencing, you saw the same sentiment, but in fact in South Australia today, while there are still some opponents to nuclear power, the community at large respects the mine and BHP’s right to get on with business.” However the industry still faces a hostile response from activists who claim the uranium industry is dangerous and an unnecessary response to world energy needs. Australian Conservation Foundation spokesman Dave Sweeney has previously told Australian Mining that the uranium industry is one of ‘headlines and heartaches’ and says the foundation is committed to ‘highlighting the costs and consequences (of uranium mining) both here and overseas”.

NSW mining supports ICAC recommendations Galilee has cautioned that a number of the recommendations may have potential cost implications for established mining operations and has asked the State Government to consult with both the industry and the community during the development of any new processes which stem from the ICAC recommendations.

The NSW Minerals Council said the Independent Commission Against Corruption report recognises the strategic economic importance of coal mining in NSW and outlines a framework which it says will create a more transparent regulatory environment.

mining in NSW that would help achieve this outcome, recognising the strategic economic importance of mining for the NSW economy, including for jobs, investment, trade, infrastructure, regional development, and energy supply,” Galilee said.

“We welcome a more transparent and properly governed approach that provides industry certainty,” NSW Minerals Council CEO Stephen Galilee said today.

“An Industry Action Plan for mining should be developed in the near future to give more confidence to the community, the industry and more than 10,500 local businesses that supply our mines in NSW.”

“A strong mining industry is good for jobs and the state’s economy, but it can only be strong if the community can have faith in a robust regulatory system that governs it. “We particularly welcome the identification of the need for a more cohesive approach across government to the overall development of the sector.” The Report’s very first recommendation outlines the need to align the development of NSW coal resources with the NSW 2021 state plan and provide clear policy objectives that guide the development of the industry. “We’ve recently called for an Industry Action Plan for

Helensburgh miners to vote down Peabody pay deal: union Peabody has maintained it is commitment to come to an agreement which “reflects current market conditions, lifts productivity, reduces costs, enhances safety and provides greater job security for Metropolitan mine employees.

More than 200 workers at Peabody’s Helensburgh Metropolitan Colliery have voted to take further strikes after the company tries to force a vote on a new enterprise agreement not approved by the union. The strike is expected to run until Saturday when the employees will place bans and limitations around production. The move comes after Peabody idled the mine for seven days last week, “as a result of disruptive industrial action initiated by the CFMEU”, which has included numerous 48 hour strikes and limitations by the workforce. The dispute centres around a new agreement proposed by the multinational miner which will see workers receive zero, two and two, plus bonuses over a three year period. The union has previously stated its members were sceptical of the bonuses contained in Peabody’s offer as they were ‘‘subject to logical problems’’ and the ‘‘company’s whim’’. ‘‘It’s what we call an at-risk component of our wages and we’re not prepared to offset an hourly wage increase with an at-risk bonus increase,’’ CFMEU south-western district vice president Bob Timbs said. He also claims the deal would mean workers’ wages would be 20 per cent behind those at other operations in the Illawarra.

Timbs told the Illawarra Mercury yesterday that the company’s move to put forward the agreement had angered workers. ‘‘They’re very angry about it, angry and concerned that the company has practically thrown away the draft enterprise agreement the bargaining committee had agreed on excluding remuneration payments and have gone along and modified it by themselves,” Timbs said. Timbs does not expect the workers to vote the agreement up when secret ballots are held next Sunday and Monday.

QLD exploration falls 30% Queensland’s exploration scorecard is reflecting a difficult year for the state’s explore Queensland’s exploration scorecard is reflecting a difficult year for the state’s explorers with minerals exploration falling 31 per cent to $732 million for 2012-13.rs with minerals exploration falling 31 per cent to $732 million for 2012-13.

The Queensland Exploration Council’s scorecard lists the continued drop of market capitalisations and heightened capital scarcity as significant factors affecting explorers. “This is not just a Queensland trend, but a problem being felt right across Australia, and indeed globally,” the QEC said. Access to equity capital was listed as a significant problem with companies exploring in Queensland announcing $63 million in capital raisings in 2012-13, down 76 per cent in comparison to 2011-12. Nationally, the amount of raisings was down 60 per cent in 2012-13 from $853 million to $342 million, the report indicates. About one third has been wiped off the market capitalisation of Queensland’s juniors over the past 12 months, a figure which jumps to 81 per cent over the past two years. The scorecard which aims to record the progress of Queensland’s exploration sector, indicates the outlook for the state’s exploration sector remains uncertain. “Despite the strength of the global fundamentals likely to drive resources demand well into the future, investors remain wary given continued uncertainty in the global economy, softening prices, and high costs which

continue to plague domestic operations,” The QEC said. Sentiment amongst Queensland’s explorers has also dipped, with respondents indicating the state is rating more negatively on factors like government assistance, permitting processes, environmental regulations. The Queensland Resources Council said these findings are despite a raft of recently implemented government initiatives including the reduction of red tape around approvals processes. “These are issues that the QRC will raise with government as a matter of priority,” the QRC said. “Encouragingly, the government has committed to work with the QRC and industry to deliver necessary reforms to support the exploration sector.” Coal exploration was lower in 2012-13 as companies contend with over supply and price falls, copper was also down. In contrast gold exploration activities increased over the same period. On the flip side, the state has experienced a surge in old and gas activity with petroleum exploration up 40 per cent to $655 million. “This was on account of continued expenditure on coal

Pilbara rental prices slide as mining boom wanes “The resources sector is always going to dominate the economy in the Pilbara, but we want to diversify the economy here in the Pilbara. So as beds become available that are not being used by the resources sector, that's a great opportunity for tourists to come visit and stay at an affordable rate.”

Some rental property prices in the resource-rich Pilbara region have slid by more than $1000 as the shine comes off the mining boom, with vacancy rates sky-rocketing from 3 to 15 per cent. David Hipworth, a Karratha real estate agent said the rental market in the town is at its lowest point since 1996 and continues to track down. Hipworth told the ABC’s PM program that rental prices for houses have dipped from $2500 to $2750 per week to around $1800 per week. “You're lucky to get a tenant these days," Hipworth said. "There are some of our competitors that are offering one week's free rent." Port Hedland is also feeling the rental market slide but real estate agent Leigh Anderson is not surprised at the drop in prices.

would suffer. “There are some people that are suffering mortgage stress, and unfortunately they're going to have to sell out at whatever price they can get,” she said. Hipworth called the drop “the absolute best thing”, and said it would give the people who are not involved in the mining sector some breathing space. “..we finally get a chance to grow our community, because the more people that are here, the more people who are involved in industries other than mining, the better we can get ourselves back to being a community of volunteers that actually go and run the local rugby, or they run the local little athletics. And these are great places to bring up families.” Pilbara’s Development Commissioner Ken King agrees.

“It had to happen. It was just going crazy. And it's a good thing, because it couldn't continue on, it couldn't be sustained,” Anderson said. While the price slide may be good for those looking to rent in the region, Anderson said some property owners 12

“I think there have been some significant challenges, and particularly for those workers who are not employed directly by the resource sector,” King said.

Gujarat workers asked to take leave without pay, chairman steps down On the same day Gujarat NRE executive chairman Arun Jagatramka stepped down, the company has asked workers to take unpaid leave, despite not paying its miners properly for over a month. In a meeting this morning the company announced a “light crew” would be kept on at its two mines, and asked other workers to take unpaid or long service leave for at least the next four weeks.

The request comes as the workforce faces close to 40 days without the regular payment of their wages. However, the CFMEU says anyone who wished to work should do so with the expectation they will be paid when the money becomes available, The Illawarra Merucry reported. CFMEU southwestern district vice-president Bob Timbs said the Gujarat had no right to withhold pay from employees who showed up for work. Meanwhile, Arun Jagatramka has resigned as chief executive of the company. A media statement said his resignation was “reluctantly accepted by the other board members who also put on record their deep appreciation for the services provided by Mr Jagatramka". Jasbir Singh, Jindal Steel and Power Group’s Australian general manager, is set to replace Jagatramka.

Rio to sell majority stake of Clermont coal mine Rio has agreed to sell off more than 50 per cent of its interest in Clermont to GlencoreXstrata for more than $1 billion. The mine was originally put up for sale in April this year, as Rio looked to offload a number of its coal assets. Sam Walsh, who took over as Rio’s chief in January, is said to be moving quickly in a bid to improve returns for investors. The company flagged they will improve shareholder value by selling weak assets. However despite the mine's relatively new status, opening only in 2010, it had not received a solid offer, and as recently as the beginning of this month was still fielding lowball offers of less than $850 million. The offers were reportedly made by Indian miner Andani, Dutch trading house Trafigura and Australian coal mining company New Hope Corporation. Now GlencoreXstrata, through its jointly owned subsidiary GS Coal, has purchased Rio Tinto's 50.1 per cent interest in Clermont for US$1.015 billion. 14

RioTinto chief financial officer Chris Lynch said "the sale of Clermont Mine will allow us to realise value for our shareholders as we continue optimising our portfolio. It also demonstrates our focus on strengthening our balance sheet and taking a disciplined approach to allocating capital across the Group."Rio Tinto remains committed to a long-term future in central Queensland. Production has recently commenced from the US$2 billion extension of the Kestrel Mine and studies are currently underway to extend production from the Hail Creek Mine. "We expect the Clermont Mine will continue to perform strongly under its new ownership and make an ongoing contribution as a member of the local community. We will maintain high safety and environmental standards at Clermont Mine, through the transition period to the new manager." This latest sale takes the value of Rio Tinto's total offloaded assets to US$2.915 billion

Environment Minister to visit Abbot Point as decision on approval Federal Environment Minister Greg Hunt will visit Abbot Point coal terminal today as the decision to approve or reject its proposed expansion draws closer. Hunt last week delayed making a decision on the project until December 13, stating more time was needed to assess its potential impacts. Hunt is expected to meet with the fishing industry, tourism operators and business representatives during his tour. The $6.2 billion expansion of the coal port would see four additional coal terminals built; which would provide an extra annual capacity of 120 million tonnes and would support the developments in the Bowen, Surat, and Galilee Basins of Queensland. Combined with other port expansions, this latest development would make Abbot Point one of the worldâ&#x20AC;&#x2122;s largest coal ports, boasting seven terminals and a capacity of almost 300 million tonnes annually. There is strong support from Bowen locals who want to see the expansion go ahead with more than 600 hundred people attending a rally in July urging the Federal Government to back the project.

However environmental activists are calling on the expansion to be dumped with concerns that dredging at the site will have widespread impacts. WWF Australia spokesman Richard Leck said the government would have no choice but to dismiss the proposal, The Chronicle reported. "Once all impacts are fully considered, we believe the government will have little choice but to eventually reject this application for Abbot Point and rule out Reef dumping altogether,â&#x20AC;? Leck said. While Greens Senator Larissa Waters has also called on the government to reject the project. "There's a proposal for three million cubic metres of dredging in the Great Barrier Reef world heritage area and then dumping that sea bed right back into marine park waters,â&#x20AC;? Waters said.

BHP and contractor slapped with fine over worker death BHP Billiton Iron Ore and sub-contractor HWE Newman Services have been fined over $230000 for a fatal accident in Western Australia. Mobile maintenance supervisor Paul Sparkes, 29, was killed whilst working at BHP’s Yandi mine in 2008 when he was struck by an arm of a tyre handler device sprung off as a heavy earth mover tyre was overinflated. Both companies were found guilty of failing to provide a safe working environment in April 2013, following a thorough investigation and prosecution led by the Department of Mines and Petroleum, The Perth Magistrates Court heard that BHP and HWE both failed to provide the necessary equipment for safe tyre assembly, and that Sparkes did not receive sufficient training for the task. Magistrate Steven Malley said that while there was not a blatant disregard in relation to safety “there was a systems failure with dire consequences”. Sub-contractor HWE Newman Services was found to have prime responsibility for the incident and was fined $136,000.

court costs. DMP Resources Safety Executive Director Simon Ridge said while he welcomed this successful prosecution, the department would not rest on its laurels. “The majority of mining companies are operating to high safety standards right now – but there are always some occasions where more needs to be done, and this was certainly a tragic event back in 2008,” Ridge said. “That is why it is crucial for the department to continue to hold to account those who aren’t doing the right thing.” Ridge said safety measures must always be in place to reduce worker risks to an acceptable level. “While mining activities can pose risk, mining workers should not be placed in harm’s way, it is completely unacceptable,” he said. “It is up to all of us – companies, government and workers – to work together to achieve ‘zero harm’.”

BHP was fined $102,000. Both companies also had to pay a total of $125,000 in

Centennial slashes 120 NSW mining jobs Centennial Coal is cutting 120 jobs across its New South Wales operations. Blaming the “ongoing economic downturn” for the cuts, Centennial said high production costs, weaker commodity prices and a stubbornly high Australian dollar is impacting the company’s competitiveness. “Centennial has no option other than to reduce employee and contractor numbers further,” the company stated. “Unfortunately, as there are few signs of an immediate improvement and following the conclusion of a business review of all operations, further cost reductions will have to be made in order for Centennial to sustain its business and be competitive under current market conditions.”

contractors will be affected. Warning more cost cuts are in the pipeline, Centennial said it will be looking to cut supplier costs and secure production efficiencies. A spokesperson for the company said roughly two thirds of the redundancies will be made from Centennial's western Operations which includes Lithgow and Mudgee. He added about one third of the cuts will be from its Lake Macquarie site. The company said retrenchments will begin this week, with the majority taking place today. In the last year Centennial has placed its Mannering and Airly mines into care maintenance mode.

“Both mines have struggled to make a positive contribution in their own right not only through the lower coal price but a combination of difficult mining conditions, poor coal quality and, in the case of Airly, transport costs have hindered the viability of these mines,” Centennial chief operating officer Steve Bracken said at the time.

The company said it will attempt to keep redundancies to a minimum but expects 120 employees and 17

Komatsu cuts profit target as mining demand drops Weak demand in the resource sector has forced mining equipment manufacturer Komatsu to cut its full-year operating profit forecast by a third to $2.16 billion.

Komatsu said the drop in demand for mining equipment had been worse than expected, stating it expects operating profit for the year to next March to total 210 billion yen ($2.16 billion), down from its prior forecast of 305 billion yen. "The tough mining market prompted us to cut our outlook," Komatsu chief financial officer Mikio Fujitsuka said in Tokyo. The company said demand from Latin America, Indonesia and Australia had waned, but that growth in Japan and China was expected. Heavy equipment maker Caterpillar has also cut its fullyear profit forecast, blaming weak demand for mining equipment.

Science should be at the centre of mining debates: Macfarlane The Federal Minister for industry Ian Macfarlane says he finds it ironic that communities which were founded on the mining industry are now ‘hot-beds of resistance’, saying some of the debate around the coal and CSG industries has moved away from science. Speaking at an industry conference in Sydney, Macfarlane said while he had no problem with an old fashioned protest, he would not stand for people who “wilfully tear down fences, destroy vehicles and deliberaltey break the law”. Macfarlane said the debate around CSG and proposed mining operations should centre around science. ‘‘Yes, it’s got to comply with environmental standards, yes it’s got to protect the water, etcetera, etcetera, but I think some of the protests go beyond the actual science and almost into the hearsay and what ifs,” he said. Macfarlane said all mining applications went through vigorous environmental assessments, stating there is no way to object the science and if there is no proven long-term harm, and if farmers want operation on their properties, no one has the right to object.

boom. “There are issues and lessons the whole industry can learn from coal seam gas,’ he stated. Macfarlane said his government was committed to removing a “whole range of impediments” to the longterm stability and growth of the industry. He reinforced commitments to cut through red and green tape, abolish the mining and carbon taxes and flagged the introduction of an exploration incentive scheme next year. “Our government is about restoring confidence to the mining industry,” he said. “We want Australians to be proud of the resources industry. “It’s a great industry and the basis of our economic wellbeing.”

"In Queensland we've got 4000 co-existence agreements, we've got farmers earning up to $6 million over the next 20 years... and the CSG companies are there at the invitation of the farmer." Speaking about community angst around mining operations, Macfarlane said critics needed to recognise that many regions in NSW had been built on the back of mining. ‘‘If there’s an aerodrome or an airport and people move there and then start complaining about aircraft noise I don’t get that,’’ Macfarlane said. ‘‘If they’ve moved into a coalmining area, and the Hunter Valley has been a coalmining area since well before Federation ... if you live in that area you’ve got to expect coalmining. ‘‘That’s the industry that built it – coalmining, iron and steel. A former famer himself, Macfarlane said he is an advocate of the CSG industry and commented that the energy boom seen in Queensland had meant farmers could stay on their land and repopulate regional communities, keeping them viable. Macfarlane said it was the industry’s responsibility to communicate the potential benefits of the energy 19

Ok Tedi immunity gone, with implications beyond BHP Miners, governments, mine-affected communities and NGOs are monitoring the Ok Tedi case with great interest. It remains a terribly compelling, modern day example of the tensions between corporations, communities, government and the environment. And now a stark reminder that forgiveness or impunity once agreed may be reversible. Sara Bice does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.The Conversation

Remote Mount Fubilan, near the source of Papua New Guinea’s Tedi River, is once again the site of global controversy surrounding the Ok Tedi copper gold mine. Since the late 1980s, Ok Tedi has symbolised the David and Goliath struggle between major multinational miners, remote developing communities and the environment. Ok Tedi resumed the spotlight in recent weeks when the Papua New Guinean Parliament removed former mine operator BHP Billiton’s immunity from legal prosecution for environmental damages caused. On 19 September, PNG Prime Minister Peter O'Neill led Parliamentary actions to pass a bill allowing the Papua New Guinean Government to take complete ownership of the Ok Tedi Mine. In a separate bill passed at the same time, new legislation removed BHP Billiton’s immunity from legal action for environmental damage caused by the mine’s operations. BHP Billiton’s legal immunity arose through a 2001 agreement in which the company voluntarily divested its interests in Ok Tedi, placing its majority shareholding into a charitable trust, the PNG Sustainable Development Program (PNGSDP). The Program held 63.4% ownership of the mine, with the PNG Government holding the remainder. This recent legislation transfers full ownership to the PNG state and removes that agreed immunity. The environmental damage caused by the Ok Tedi mine is extensive and, many scientists argue, likely to be irreversible. During the 1980s and 1990s, the mine dumped an estimated 80,000 tonnes of limestone sludge, containing chemicals and minerals, into the upper Tedi River. A 1984 effort to build a tailings dam failed, with the company arguing that a dam was impossible in a geologically unstable terrain with heavy rainfall. Scientific studies found the large amounts of contaminated sediments have changed the river’s ecosystem, with severe loss of fish, reports of death to riverside rainforests and areas along the river’s considerable flood plain. In passing the legislation, PM O'Neill declared to Parliament that the immunity granted to BHP Billiton marked “a very bad decision [by the then-PNG Government led by PM Mekere Morauta]…preventing its own people from exercising their right under law to sue for permanent damages done to their environment and their livelihood”. Global fallout The PNG Government’s decisions raise substantial questions for mining companies, mine-affected communities and governments worldwide. All of whom continue to grapple with balancing the economic and social development possible through mining, and the industry’s negative environmental and social impacts.

What, if any, ongoing protection should companies expect or receive when immunity deals are struck? Which individuals within mine-affected societies should contribute to decisions about when and how mining companies are held to account? Are agreements made with one era’s elected officials themselves immune to the attitudes and decisions of those who follow? The Ok Tedi case is particularly thorny. Despite the extraordinary environmental damage, Papua New Guinea of the late 1990s was a country struggling under enormous economic pressures, including ballooning interest and inflation rates blamed on years of gross mismanagement. Government services strained under the weight of economic failure, leaving many remote communities bereft. At the time of the 2001 agreement, BHP Billiton’s preference was for closure of Ok Tedi. Yet the mine comprised an estimated 11 per cent of GDP and produced 19 per cent of total exports. For a country in economic strife, the closure costs associated with such an asset were deemed too great, the environment another victim of national economic necessity. The reneging of legal immunity for Ok Tedi comes at a time when serious concerns are once again being raised about other PNG mining operations. The Panguna Mine in Bougainville, for example, holds the ongoing attention of international NGOs and local activists. Local communities are now fighting a potential reopening of the mine, which Jubilee Australia highlights as having a history of military-community conflicts. The continued operations of the Hidden Valley Morobe Joint Venture also garner ongoing attention from NGOs and activist groups worried about tribal conflicts, land disputes, environmental damage and insufficient compensation. The recent raising of Ok Tedi’s ghost highlights the pernicious nature of mining’s impacts and the ongoing requirements of redress and responsibility. Interestingly, the PNGSDP claims that the immunity granted to BHP Billiton also extended to the State as partial mine owner. Removal of the immunity does not only affect BHP, they argue, but the Government itself. The legal reality of this assertion has yet to play out or be investigated. Along with these questions, the case also reminds governments, especially those of developing nations, of the importance of foreign direct investment. Highlighting the tricky relationships between encouraging investment and protecting local societies and environments. In response to the legislative changes, BHP Billiton has warned the Government’s actions raise PNG’s ‘sovereign risk’. In other words, investors considering PNG as an option will now more carefully consider the levels of risk and uncertainty which may come with business commitments in PNG.

Strategic Graphite launches $10m raising to kick start Uley mine Gearing up to restart production at its Uley mine early next year, Strategic Graphite Limited is looking to raise up to $10 million in a rights issue and share placement. The Adelaide based company is aiming to launch production at the historic Uley graphite mine in the Lower Eyre Peninsula region of South Australia at the start of 2014, a move which will make it Australia’s only operating graphite mine. Launching production at the site will create about 50 jobs, including 40 at the mine site. “Over the past two years, approximately $3 million has been spent refurbishing the existing road, electricity, and water infrastructure at site,” managing director and chief executive Christopher Darby said.

He explained with mining licences and processing infrastructure already in place, the company is in a position to begin the process to restart graphite production. The Uley graphite mine, located 23 kilometres from Port Lincoln, was discovered in the early 1800’s and has been in intermittent production since the late 1920s. When in operation, the plant was capable of producing up to 14,000 tonnes of graphite concentrate each year. The mine has been is care and maintenance mode since 1993. The project has a JORC compliant indicated and inferred resource of 6.4 million tonnes at an average grade of 7.1% graphitic carbon with a low strip ratio of 3:1. The company explained ramping up production at the site will be a two part operation. Phase one will see existing stockpiles processed which are estimated to contain more than 7,500 tonnes of graphite and is expected to generate immediate revenues of $12 million over the next year. Later in 2014 phase two will see plant production increase to 50,000 tonnes of graphite per annum, a move expected to be funded by revenues generated in phase one as well as offtake, royalty and debt finance. Strategic Graphite’s recent scoping study indicates the sites mining and processing costs will be about $AU550 per tonne. A Bankable Feasibility study is expected to be completed in the first quarter of 2014. “The graphite price has grown at a steady rate of about 15 per cent since the early 2000s,” Darby said. “Despite the dramatic price increase in recent years, it continues on this strong growth path, which bodes well for Strategic Graphite and our production forecasts.” The company said it expects to list on the Australian Securities Exchange by the end of 2013 and estimates it will have a market capitalisation of approximately $34 million on the offer price of 20 cents per share

BHP boosts iron ore output, stabilises coal BHP Billiton has seen iron ore output surge in the third quarter, lifting 23 per cent to 49 million tonnes compared to the same time last year. Releasing its quarterly results, efforts to streamline the company’s Western Australian iron ore supply chain are being realised with an extra 220 million tonnes per annum capacity added. Deploying mobile crushing units and eliminating bottlenecks in its WA supply chain has underpinned a five million tonne increase in Western Australia Iron Ore’s production guidance for the 2014 financial year, BHP Billiton chief executive Andrew Mackenzie said. “Our pursuit of productivity gains and operating excellence is already yielding strong results,” he said. Mackenzie said cash rationalisation measures will continue into the 2014 financial year. “A 25 per cent reduction in capital and exploration expenditure to US$16 billion in the 2014 financial year has significantly increased internal competition for capital,” he said. “Our rate of expenditure will decline again next year and if our investment criteria cannot be met in any one project, product or geography, we will redirect our capital elsewhere or we will not invest.”

Total iron ore output lifted 2 per cent from quarter two, with four projects delivering first production in the September quarter, including the Jimblebar mine expansion.

Productivity gains also saw BHP’s Queensland coal operations sustain an annualised production rate of 61 million tonnes.

Ramping up Jimblebar to 35 million tonnes per annum is expected to be completed by the end of the 2015 financial year. Coal The company said the result was underpinned by the continued ramp up of Daunia mine, record quarterly production at South Walker Creek and improved Coal Preparation Plant performance at Blackwater and Saraji. But the company’s coal business also suffered a number of setbacks during the September quarter, including a planned longwall move at Crinum mine and scheduled Coal Preparation Plant maintenance at Goonyella Riverside and Peak Downs. An extended outage and a roof collapse at Dendrobium mine, as well as a scheduled longwall move at West Cliff saw Illawarra Coal’s production drop 39 per cent from the June 2013 quarter

RCR Tomlinson win $125m in mining contracts RCR Tomlinson have been awarded three major mining contracts totalling around $125 million.

and conveying (IPCC) plant design and construct award.

The largest contract is for work on GlencoreXstrata's Ernest Henry mine expansion.

The work will see it provide the sizing plant for Rio Tinto's MESA J mining operations at Pannawonica in WA.

The $70 million contract includes major mechanical, piping, electrical and instrumentation work across three packages and includes the installation of underground crushing and materials handling equipment, along with its associated infrastructure. Work will begin immediately. It also won an extension to its existing underground mine work at Newcrest's Cadia Valley operations. In particular, the works for the West Crusher of Panel Cave 2.

It will have a minimum production capacity of 12 million tonnes per annum and is expected to be completed by March 2015.

The contract's scope includes design, supply, manufacture, pre-assembly and site installation. RCR's CEO Paul Dalgleish said the award for the inpit ore sizing plant at Rio's Mesa J operations is a result of its investment in IPCC solutions. "This project for Rio Tinto follows our long held commitment to developing in-pit mining and crushing solutions for the iron ore sector which is a significant differentiator for RCR," he said

It has also just won its first iron ore in-pit crushing 23

Global exploration budgets take a hit Global non-ferrous metal exploration budgets have plummeted almost 30 per cent this year, new research suggests. SNL Metal Economics Group’s Corporate Exploration Strategies surveyed almost 3500 mining companies around the world. The group found total non-ferrous exploration budgets fell to $US15.2 billion. Major miners recorded a 24 per cent drop in exploration spend. But juniors took a bigger hit, with exploration budgets falling 39 per cent over 2012, miningnews.net reports. “In contrast, many junior companies sharply curtailed late-stage and feasibility programs in an effort to conserve cash, while some majors made strategic decisions to scale back late-stage exploration due to near and medium-term uncertainty,” SNL Metal Economics Group said.

With mining investment drying up and internal fights for capital heating up many miners are cutting costs and reallocating capital to productivity improvement projects as well as looking to improve investor returns. “Although most metals prices remain at or near 10-year averages, higher operating and capital costs, along with pressure from activist shareholders, have required major companies to focus on a return to healthy margins after years of growth-oriented spending,” SNL Metal Economics Group said. Topping the list for exploration spend is Australia and Canada, closely followed by the US, Mexico and Chile. The report found exploration activities are still planned for 127 counties in 2013, slightly down from 129 recorded in 2012. Despite a drop in exploration funding, the research predicts the number of asset sales to climb as miners attempt to improve their financial standing. “With many companies facing tough financial and strategic choices, the pool of early and late-stage assets available for sale is likely near an all-time high—a situation yet to be taken advantage of by potential buyers, such as mid-tier producers, new industry entrants, or companies based in emerging economies.”

Anglo American starts tunnel boring at Grosvenor coal mine Anglo American has started running its innovative tunnel boring machine at the Grosvenor coal mine in Moranbah. The miner is working with Redpath on what is a first for the mining industry, by using a tunnel boring machine (TBM) for drift excavation.

As it advances forward Anglo will use pre-cast concrete rings segments to line the inside of the drift. Using the TBM removes the need to rehabilitate the drift support every 10 years as the TBM support has a life expectancy five times that which is laid for the road header.

Officially launching the project yesterday, Anglo American's head of underground excellence, Dieter Haage, said this development was an important milestone in the overall delivery of Grosvenor, which is located next to Anglo's existing North longwall mine.

"Similar to the tunnel borers that have been used to construct the road tunnels in Brisbane, the TBM tunnelling method will deliver advances in safety, higher quality drifts and faster project development," Anglo American's Grosvenor project director Glenn Tonkin added.

"It is exciting to reach this milestone today after almost 1.5 years of construction activity," Haage said.

There are currently 700 people on site during the construction phase, and once in production employee levels will stabilise at around 350 staff.

"The $40 million earth pressure balance machine will allow us to reach the coal seam early next year, bringing us that step closer to longwall production in late 2016," he added. The eight metre diameter Earth Pressure Balance (EPB) TBM was manufactured by Robbins and will be used on the coal mine to excavate two drifts instead of the traditional method of using a road header.

One drift will be used for transporting the coal from the longwall to the stockpile on the surface, while the other will be used for personnel and vehicle access. According to Redpathâ&#x20AC;&#x2122;s general manager of coal Gavin Ramage, TBM offers a safer, quicker and more stable excavation option. "The tunnel boring machine is expected to excavate drifts at least three times faster than a road header, which provides much quicker access to coal," Ramage said. "There are also a number of safety benefits associated with using the TBM, mainly from the highly stable and durable ground support required, which has a 50 year life expectancy, as opposed to the less stable support used for a road header." The TBM will pass beneath a steel archway roof that has been installed at the driftâ&#x20AC;&#x2122;s entrance and begin drilling into the ground to build the seven metre diameter tunnel, descending at an angle of one in eight until it reaches the depth of the coal seam approximately 160 metres below.

Boral puts Berrima Colliery into care and maintenance, 40 jobs cut The coal mine which has been in operation since the 1920s provides about 220,000 tonnes of coal a year to Boral’s nearby Berrima cement Works and employs 40 people.

Almost 40 jobs will be cut as production is halted at Boral’s Berrima Colliery this week. Boral announced the colliery will be put into care and maintenance mode, suspending all coal mining activities. The announcement comes after plans to double output at the Southern Highland’s coal mine were on Wednesday rejected by the Land and Environment Court. Berrima Colliery operations manager, Stuart Hutchings, said transitioning into care and maintenance hasn’t been an easy decision. “Our decision to enter 'care and maintenance' at the Colliery follows a review which confirmed that continuing mining at Medway was unsustainable in the current market,” he said. “This is due to increased costs, in turn making it difficult for Boral to compete with imported cement material, and the flat outlook for cement sales generally.” Expansion plans were challenged by the local Wingecarribee Council and Southern Highlands Coal Action Group when it was revealed heavy metals being discharged from the mine into the Wingecarribee River that were allegedly above accepted levels, The Southern Highland’s News reports.

Engaging the services of the Environmental Defender's Office (EDO), a merit appeal was upheld in court on Wednesday. Boral said the move to suspend operations was a result of uncertainties arising from the planning system and the need to reduce costs in order to remain competitive in “difficult market conditions”. “We remain disappointed that, despite a lengthy and rigorous assessment process over more than two years to secure the project approval as granted by the Government’s expert panel in 2012, this approval was overturned by the Land and Environment Court at Southern Highlands Coal Action Group’s instigation,” Hutchings said. The company said it would work with mining contractor Delta Mining to support staff affected by the decision. The company added that it remains committed to its cement operations at Berrima, which employ some 130 staff. “Instead of using coal from the Colliery for cement manufacturing, we will start buying coal from third parties.”

PNG seeks legal advice over seabed Papua New Guinea's Government is seeking legal advice after the deadline passes for it to pay back seabed miner Nautilus Minerals. It came after the miner won its arbitration case against the PNG Government following a prolonged impasse with PNG over their partnership in the Solwara 1 underwater mining project earlier this year. Earlier this year Michael Johnston,Nautilus president and CEO, said that the miner has been willing to provide Papua New Guinea ownership of intellectual property rights. But the problem, as Johnston told it, was that many of the deeds covering proprietary technology and subsea mining methods, which Nautilus and several partners developed over the years, did not contain clauses allowing for a third party, such as the Papua New Guinean government, to come on board as an additional partner and owner of the intellectual property rights. Johnston described sensitive negotiations over the past few months in which Nautilus had to go to its partners,â&#x20AC;&#x153;household namesâ&#x20AC;? in the dredging business he gave as examples, to convince them to redraw the deeds to allow the Papua New Guinea government to gain direct 30 per cent ownership of the intellectual property rights.

The PNG Government was obliged to pay the miner by 23 October, however the deadline has passed and now it is seeking legal advice over the tribunal's decision and payment time frame, according to the ABC. PNG prime minister Peter O'Neill said "since the decision was handed down, we have been reviewing it and have sought legal advice. The state is looking at its options, and we have commenced discussions with Nautilus for an amicable solution to this". "There are other issues connected with this project that were raised, in the local community and in Parliament, which the government was dealing with before this arbitration decision landed on us. "So there are a whole ranges of issues we are dealing with, so we need to be careful about placing time limits on these issues," he said. "We respect the decision of the tribunal, and we are dealing with it in the best possible way." Nautilus has since issued statements saying that it is aiming to resolve the issue 'amicablyâ&#x20AC;&#x2122;

Now Johnston said Nautilus has redrawn the deeds with its partners and delivered the new terms to the Papua New Guinea government. Following this the two entered arbitration to come to a conclusion, with Murray Gleeson, AC QC issuing an award in Nautilus' favour.

The current state of copper: Too soon for surplus? In a note out late last week, French bank, Natixis, queries the assumption that the copper market is already in surplus. While it doesn't dispute that the copper market could move into surplus over the next few years, the bank maintains that saying it is already in surplus could be premature. The reason for the dispute is the level of stocking or destocking in China that has taken place over the last few months - an issue that caused problems for copper price predictions previously. See also: Dr. Copper heading back to school According to Natixis, if one goes only by the level of copper stocks held in exchange warehouses, which it defines as those belonging to the LME, SHFE and Comex, then it does look decidedly like the market is in surplus, as these stocks have risen by about 110,000 tonnes since the beginning of the year. But, it says, "Anecdotal reports suggest that stocks of copper held at bonded warehouses in China peaked at somewhere between 1mn and 1.1mn tonnes in January, and have since fallen to a low of little more than 300,000 tonnes. Netting off 110,000 tonnes of higher exchange stocks versus 700-800,000 tonnes of lower bonded stocks suggests a substantial deficit." The problem that faces Natixis, however, is trying to figure out how much of these withdrawn stocks have actually been consumed. The group then posits 3 different models in a bid to solve that question. The first supposes that Chinese imports of refined copper have averaged roughly the same as in 2012 "somewhere around 280,000 tonnes per month".

Such an assumption, taking the data from the first five months of the year, would imply, "Chinese destocking of a little over 300,000 tonnes of copper, followed by a neutral effect between June and August". The second model, examines the data under the assumption that Chinese end-user demand for copper grows in line with GDP. "Under this model," Natixis writes, "measuring estimated demand versus apparent demand (production + net imports -stock changes in reported inventories) would give us destocking from unreported inventories of almost 300,000 tonnes over the first four months of the year, followed by restocking of around 165,000 tonnes in the months since then. The group says it is more inclined to believe the above two models than the third one which is based on copper semis fabrication. While it says, that this last model provides "a number most closely in line with the anecdotal fall in stocks at bonded warehouses, we suspect that this overstates the true situation substantially, since many of these bonded copper stockpiles were reportedly diverted to other warehouses in the Far East" According to Natixis, between January and June, stocks of copper held at exchange warehouses rose by just over 340,000 tonnes. Since then, it says, exchange inventories have fallen around 15,000 tonnes per week. But, it adds, "Around the turn of the year, aggregate volumes of copper futures traded on the SHFE fell to abnormally low levels, alongside a decline in aggregate open interest. After the sharp decline in copper prices in April, SHFE futures volumes surged and open interest peaked. This not only suggests a period of destocking early in the year, but also supports the idea that Chinese buyers began to restock in response to lower prices over the summer months." Adding, "If, as our models suggest, Chinese destocking accounted for around 300,000 tonnes of copper early this year, measures of consumption based on end-user demand rather than apparent demand would give us a deficit for the year of anything from 60,000 to 225,000 tonnes." It is difficult to know whether or not this is an accurate view. But if it proves to be so, it could result in unexpectedly higher prices for the red metal over the next few months.

BHP provides $10m for Australian Indigenous scholarships "We’re very pleased to be working with BHP Billiton and, together with the students and their families, celebrating the success we are achieving each year."

BHP Billiton has provided an additional $10 million to the Australian Indigenous Education Fund (AIEF) for secondary and tertiary scholarships for Indigenous students.

"One of the biggest barriers toachieving Indigenous equality in Australia is education – we know wehave found a sustainable, and scalable, solution that works. We’re seeing it inaction every day.

It is part of the miner's wider relationship with the AIEF, which has already run for three year, and brings BHP's total funding commitment to $16.3 million to day. BHP's iron ore head Jimmy Wilson said the partnership demonstrates its commitment to supporting Indigenous people's education and development in Australia. "I have been privileged enough to spend time with some of the young people on our scholarship program, and their commitment and dedication to achieving their goals is inspiring," Wilson said. "Not only does the scholarship recipient benefit, they also become role models to other young people in their communities, who can then follow in their footsteps. This ripple effect is very powerful and something that we’re incredibly proud to be associated with. "Over the past five financial years,we have committed more than $55 million in education initiatives through the BHP Billiton Community Development Program." The announcement of additional funding waswelcomed by the AIEF's CEO Andrew Penfold, who stated it would make a substantialdifference.

Newcrest’s gold output drops quarter-on-quarter Newcrest’s gold output drops quarter-on-quarter

Gold miner Newcrest Mining has recorded back-to-back quarters of declining gold and copper production. Quarterly gold production for September fell 9 per cent below the June quarter’s results to 586,573 ounces, while copper dropped 14 per cent to 19,632 tonnes for the same period.

Newcrest explained the drop was due to a “significant reduction in the average gold feed grade”, and lower mill throughput. A disruption to the company’s underground hoisting system resulted in lower gold feed grades and throughputs as ore was sourced from Telfer’s open pit stockpiles.

But comparing year-on-year, Newcrest actually boosted gold production by 27 per cent and lifted copper outputs by 6 per cent. The miner reported an all-in sustain cost of $AU1,093 per ounce, a slight drop below the 2013 financial year average. Newcrest’s Cadia Valley operation boosted mine production by 18 per cent at its Cadia East Panel Cave 1 which when combined with Ridgeway production lifted gold output by 10 per cent.

“The underground operation returned to planned production levels late in the quarter following the repair of the hoisting system,” Newcrest said. “A progressive reduction in open pit mining activity is planned for the remainder of the financial year.”

“Gold production increased 10 per cent over the previous quarter (June 2013) reflecting higher feed grades from Ridgeway and the increasing level of production from Cadia East displacing stockpile material as mill feed,” Newcrest said. Gold outputs at Newcrest’s Telfer operation dropped by almost a quarter compared to the three months to June, coming in at 123,691 ounces. 30

Newcrest is maintaining its production guidance of between 2million and 2.3million ounces of gold and between 75,000 and 85,000 tonnes of copper for the full year. Earlier this month Newcrest appointed a new chairman and a new CEO, as Greg Robinson steps down. The news came after the embattled miner recorded its first annual loss in 11 years as well as the biggest annual loss in its history, after an $AU6.23 billion write-down.

Removing blasting risks In doing so Action Drill & Blast says it has reduced the risk of the physical labour of manually loading ANFO as well as the risk of injury.

As much as miners would like to operate on an even surface, the simple nature of the site rarely allows it. Contours and slopes build an undulating and uneven surface for miners to work on. This means that during mine construction and operation these contours and slopes need to be developed and blasted. However this comes with potential dangers. The ammonium nitrate fuel oil (ANFO) needed for blasting is delivered to the hole by the way of MPU either traversing less than optimum slopes to auger directly into the hole or via a large crew of personnel carrying the ANFO in buckets to complete the process. Historically one of the major risks associated with mine development for drill and blast contractors has been working safely on these contours, according to Action Drill & Blast. "Whilst issues surrounding drilling on contours had been addressed there remained a significant manual handling hazard to personnel due to the requirement for shot crew to physically walk the contours to prime, load, stem, and tie-in the shot," the contractor explained. "The manual handling issues associated with these exercises can be enormous and presents one of the most frequent hazards for causing injury of any activity on a mine site." In recognising this ever present danger on site Action Drill & Blast examined a number of questions, namely: How can we best protect our shot crew in carrying out their day to day duties; how can we deliver bulk explosives to the hole safely and efficiency; how can we eliminate, as far as is practical, the use of 20 litre buckets to carry ammonium nitrate fuel oil onto contours; and how can we record charge weight per hole throughout this process to better comply with increasingly onerous legislative requirements.

Contractors can limit the loads the crews carry to reduce the weight factor, but in doing so they increase the number of foot trips across the site, in turn increasing the potential for injury. While pumping bulk explosives can be delivered by a 40 metre hose, resolving some of the issues, the hose length and availability preclude its use in many situations. To overcome these inherent issues the company, in conjunction with International Explosives Equipment and the WA Department of Minerals and Petroleum, has developed a hopper to carry bulk ANFO onto contours. It created two models, one up to 1.8 tonnes, which have an IT hitch and quick release couplings to allow discharge capacity on either side of the loader for differing slope conditions, a dual control capacity from the cab of the IT and the discharge point on the ground, and a variable delivery speed of up to 100 kilograms per minute. It has also allowed it to reduce the number of shot crew required. Additionally, an inbuilt discharge meter enables more accurate recording of explosives used on a hole by hole basis.

NSW joins Qld, streamlines mining approvals Following Queensland’s example earlier this week, the New South Wales Government is moving to streamline its approvals processes for the resources sector. The NSW Government has amended its mining lease standards to reduce duplication, cut red tape and improve regulatory outcomes for the resources sector. “The changes will see the number of conditions for future standard coal mining leases reduced from 24 to nine and for other future mining leases reduced from 23 to eight,” Hartcher said. Addressing the CEDA Energy Series forum today, minister for resources and energy, Chris Hartcher said announced new service timeframes are being set for the processing of applications under the Mining Act. “Industry has long-called for certainty in process and in regulatory timeframes. We have heard this message and will continue our focus on cutting both red and green tape,” Hartcher said. The average processing timeframes for minerals exploration licences and leases will be reduced from 80 business days down to 45 business days. Average processing timeframes for coal exploration licences and leases will be reduced from 150 business days to just over three months. And processing timeframes for renewal of coal exploration licences and

leases will also be reduced from 100 business days to 55 business days. Environmental and community protections will still apply and compliance monitoring and reporting requirements have been strengthened, he explained. “Having listened to industry we know that when these processes take too long or when regulations change too frequently this introduces unnecessary risk and costs to projects,” Hartcher said.

Streamlining the regulatory framework is expected to harness business costs, boost process transparency, and restore investor confidence by providing greater regulatory stability.

Hartcher also said the state government supports the Commonwealth’s one-stop approvals shop policy. “We welcome the new Federal Coalition Government’s intent to abolish the mining tax and the carbon tax, as well as its intent to introduce a tax credit for exploration costs and streamline green-tape,” he said. He said the two levels of government will work together to create a strong agreement that recognises the importance of the mining sector. “This is part of a range of actions the government is taking to minimise the costs of doing business in NSW and boost investment certainty,” Hartcher said.

Government commits to keeping Antarctica free of mining Australia lays claim to around 40 per cent of Antarctica’s territory and was one of the first signatories to the 1959 Antarctic Treaty.

Environment Minister Greg Hunt said Antarctica should not be a place of mineral exploitation, stating it was critical for Australia to protect the southern continent from resource exploration. Unveiling the terms of reference for the Abbott government’s 20-year Antarctica strategic plan in Hobart yesterday, Hunt said it was critical to ensure the southern continent remained a "rare place of peace in the world”. "Our goal is to make sure that this is not a place of strategic competition, that it is not a place of mineral exploitation," he told AAP reporters. "The only drilling in Antarctica should be for ice cores and not for minerals." Antarctica is thought to have reserves of coal, iron ore, oil and gas, and other base minerals, but the deposits are located in largely inhospitable environments that are difficult and costly to reach. China and Russia have already voiced interest in exploring Antarctica: China has received approval to explore between Africa and Antarctica, and Russia has already started exploring some regions of the Arctic in the northern hemisphere. Last week, a report by the Australian Strategic Policy Institute titled “Cold Calculations"’ said with growing interest in the region, the continent risked facing issues around sovereignty and mining.

"We could see the Antarctic Treaty break down, illegal fishing become rampant, our territorial claim disputed, the environment irreparably damaged, and a cold rush for oil, gas and minerals begin," the report said. The report stated that Australia should protect its territorial, environmental and research interests in the region. Hunt said the commitment to ensure the continent stays mining free was ‘iron-clad’, stating he would work within the Antarctic treaty system to ensure an international consensus could be reached.

Peabody’s dusty mine angers locals Mudgee District Environment Group (MDEG) has accused Peabody Energy’s Wilpinjong Coal of disregarding its Environmental Pollution Licence twice last week, resulting in clouds of coal dust blowing through the town of Wollar.

“Notwithstanding this, the mine undertakes a range of activities to ensure that we control dust from site but also comply with environmental obligations.

The group say the coal miner was operating heaving machinery to move overburdern during windy conditions on Thursday October 10, and Sunday October 13.

“Wilpinjong Coal considers itself as a responsible and active member of the community.”

They say because the miner did not stop the operations during adverse weather, “clouds of polluting dust” were generated.

With community concerns over the potential health impacts of coal dust, the EPA launched the next stage of its dust management agenda in early September.

The group told the Mudgee Guardian they were “greatly concerned by the photographs taken by Wollar residents showing high levels of dust pollution leaving the mine site and blowing through the village”.

The Dust Stop Program enforces new standards on dust control, aiming to achieve an 80 per cent dust reduction by August next year.

MDEG chairperson Bev Smiles said the mine had strict environmental management rules it had to comply with. “The issue of dust pollution and health has been highlighted in communities in the Hunter Valley. This has caused the EPA to develop pollution reduction programs with stricter conditions,” she said.

Now it its third stage of implementation, the program requires all 30 of NSW open cut coal mines to assess their dust control plans including minimising haul road emissions and enforcing poor weather operation standards. “Mine haul roads are generally dirt roads and sustain continuous heavy vehicle traffic,” EPA acting chief executive Mark Gifford said.

“MDEG is concerned that Wilpinjong mine has not complied with conditions of their EPL which requires the cessation of handling of overburden material during adverse weather conditions.

“Dust generated from haul roads within the mines is the biggest source of fine dust particles on most mine sites, contributing about 40 per cent of total emissions.”

“The wind has been so wild, no amount of water will suppress dust caused by large mine vehicles.

While loading, dumping and moving overburden is also a major source of dust emissions at coal mines.

“Wilpinjong mine is required to cease the operation of mining activities during these type of conditions.”

“When it is windy and dry, this [overburden] dust is more likely to leave mine sites, so tighter control is needed at these times,” Gifford said.

Smiles said matter had been reported to the EPA. A Peadbody spokesperson said the mine “takes its environmental responsibilities very seriously”. “Given recent weather conditions with below average

rainfall and high winds, the district has experienced higher than normal airborne dust levels,” she said.

Dairy company's open cut coal mine given the go ahead Fonterra, one of the world's largest dairy companies, has been approved to start work on its Mangatangi open cut coal mine in New Zealand. Working through its subsidiary Glencoal Energy it received approvals to mine the 30 hectare site for the next eight years, according to Stuff.co.nz. It initially announced plans to mine at Mangatangi late last year, as it winds down operations at its existing Kopako 3 (K3) mine. David Wright, Fonterra's national consents manager explained that it chose to develop its own mine as Fonterra wanted to ensure the cost of coal and security of supply. The 120 000 tonnes of coal mined will beused to power its milk drying plants at Waitoa, Te Awamutu, and Hautapu. However the approvals have not been welcomed by local residents.

Protests began earlier this year when activists handed out free Fonterra products with a side of coal highlight the company's mining actions. The group behind the protest said that coal is adding to climate change issues and instead argue more sustainable fuels should be used. Locals say they are now 'gutted' by the news of the coal mine's approval and will consider action to stop operations at the site. We'll have a get-together and decide if we are going to go any further," Coal Free Mangatawhiri chief Bill Morris said.

Jindal takes over Gujarat but still no relief for unpaid workers Gujarat NRE shareholders have voted in favour of a takeover deal by Jindal Steel, but the exact date workers can expect to be paid four weeks’ worth of wages is still anyone’s guess. Around 200 shareholders voted unanimously yesterday to allow the Indian company to buy up to 53.63 per cent of Gujarat shares.

While workers at the meeting told the Mercury the deal did little to alleviate concerns about the future of their jobs or the financial the stress they have faced. ‘‘I think most of us would have been happy to find out more of Jindal’s plans,’’ one said. ‘‘What we’re worried about is that this might go on for three, four, five more weeks.’’

The deal is expected to inject $68.8 million of new capital into the company, and once debts are paid, $18.7 million will be left for Gujarat to pay its workers and suppliers.

Another worker said there had been ‘‘no relief at all here today’’.

However, after the shareholder meeting, the workforce was still left in the dark as to when it should expect the money.

CFMEU general-vice president Wayne McAndrew slammed the company for failing to provide a clear date around when the workers could expect the cash.

The Illawarra Mercury reports that Jindal representative Jasbir Singh said the company was still ‘‘only an investor’’ in Gujarat, meaning it was unable to say when the wages would be available for workers.

‘‘It is simply unacceptable that Gujarat NRE has left them in limbo and could not give a satisfactory answer when questioned about whether workers should donate their labour for free next week,” McAndrew.

‘‘We are doing our due diligence, and it would not be fair to comment just now when they salaries [will be paid] because it’s the company who has to come up with a plan when they are doing their day to day business,’’ Singh said.

Before voting got underway Jagatramka said he “always treated my employees as part of my family and our current situation causes me great pain.”

‘‘The existing management and existing operations stays as it is, but I can say that our large investment is at stake and we are not taking it lightly, we are taking it very seriously.’’ While chairman Arun Jagatramka, who caused ire by arriving to the meeting in a black Bentley, told the crowd they could expect “a statement in the next few days” about the payment of wages.

Keira MP Ryan Park and Cunningham MP Sharon Bird said paying workers what is owed to them should be priority number one for the company.

‘‘I once again extend my sincere apologies to my employees and their families for the problems that you are experiencing,’’ he said. ‘‘The support given by all Gujarat NRE workers is greatly appreciated and we would not have been able to accomplish so much without your dedication and spirit.’’ While Shellharbour MP Anna Watson will meet NSW Minister for Energy and Resources, Chris Hartcher, today to discuss the situation.

‘‘As a board, we will be meeting after this meeting and we will be discussing these things,’’ Jagatramka said. ‘‘The thing is, we have sort out many things, before we actually start working.’’ One shareholder Allan Carrol, let his feeling be known at the end of the meeting. ‘‘You’re up there eating fillet steak and those guys can’t even afford mince and pay their bills,’’ Carrol shouted at Jagatramka. ‘‘You haven’t been paying your bills for years and years, mate.’’ 39

Abbott’s one-stop approvals shop opening soon Hooke’s calls for a single assessment and approvals process which covers both State and Commonwealth environmental matters that is bound to statutory timeframes seems to have now been heard.

Tony Abbott’s pre-election promise of a one-stop mining approvals shop is inching closer to being realised with the states close to a deal set to hasten the process.

there are challenges in dealing with departments that have had, until recently, a very different approach to environmental assessment processes," Newman wrote.

The Federal Government has this week approved the framework for achieving a one-stop shop to streamline environmental approvals for major projects.

"We look forward to achieving real outcomes to get significant projects in Queensland moving and unlock their potential to create thousands of jobs."

The new framework aims to slash green tape and fasttrack the approvals for mining developments.

Hunt said the initiative is “about setting the highest standards, making swift decisions and delivering certain outcomes”.

“The one-stop-shop will slash red tape and increase jobs and investment, whilst maintaining environmental standards,” Environment Minister Greg Hunt wrote in a statement. To achieve a single environmental approvals process, the Federal Government will sign a memorandum of understanding with each willing state. Under the plan co-operating states will reportedly be handed project approval powers, while the Federal Government will oversee the process which calls for approvals to be settled within 12 months of submission. To assist the process, the Federal Government is also offering to place staff in the state offices to ensure a smooth transition. The Federal Government said it has already done a significant amount of the legwork to draft the first MOU with the states. Each will be signed by the Prime Minister and the respective Premier. “We expect that the first will be signed shortly as we implement our commitment to cut red tape,” Hunt said. In September Queensland Premier Campbell Newman said his state is willing to work towards a system that will improve business certainty whilst protecting the environment. "The federal government has displayed its willingness to work with us to achieve this outcome: we understand

Prolonged, duplicated, and costly approvals processes pushes development costs up, delay prospective projects, and has long been a bug-bear of the mining sector. “Access to grounds for exploration is being constrained,” Anglo American boss Mark Cutifani said before the federal election. “Resource developments are being strangled by duplicated bureaucratic processes and red tape.” He explained that current approvals systems at a state and federal level “needlessly delay projects, costs companies millions and threaten job losses”. Cutifani called for the “turf wars” between federal, state, and local governments to be ended. “We can no longer handle having three levels of government telling us what to do,” he said. Minerals Council chief executive Mitch Hooke also recently weighed into the approvals debate saying the process has moved on from a “major issue to a full blown crisis”. “Every Australian mining company has a list of projects beset by unnecessary regulatory delay; bound-up in state and federal green tape,” he said. “Much of the delay can be attributed to the duplication of state and federal approvals processes. This is not only creating significant and unnecessary delays but also adding massive extra costs.”

Where the mining jobs are: Hays Quarterly Hotspots According to the recruiter’s latest Hays Quarterly Hotspots list of skills in demand, staff movement is creating vacancy activity as people decide to change employers. “The movement of candidates onto the jobs market to explore their options and change employers is fuelling an active jobs market,” says Simon Winfield, senior regional director of Hays Resources & Mining. “This movement of candidates between jobs is a trend not reflected in the unemployment rate, but it is a good sign of candidates’ confidence that they can improve their prospects by looking for a new job. As a result overall vacancy activity is expected to increase this quarter.” Winfield said the need for candidates with experience was a clear trend, with workers who have changed employers often viewed as less favourable than those who have stayed loyal. The report also reveals that the recruitment process is getting longer, as companies assess applicants more thoroughly. According Hays, another trend is the preference for companies to recruit on a temporary-to-permanent basis in order to trial a candidate in the role. “Many employers prefer temporary assignments to not just cover workload peaks, but to trial a candidate to ensure they are a good fit, both in terms of skills and with the business’ culture, before offering them a permanent job,” Winfield said. “Fixed-term contracts meanwhile are also popular as they help control costs. Those candidates prepared to commit to contracts running through until Easter are highly desirable,” he said. According to the Hays Quarterly Hotspots list, demand exists for the following skilled professionals in Australia’s resources and mining market: Queensland: •Mining Engineers – As mining companies streamline their workforce they are looking for more highly skilled candidates to perform in both planning and production roles, Hays said. However salaries have remained the same. •Geotechnical Engineers – Geotechnical Engineers with at least one to three years underground experience are being sought rather than taking on

graduates. However Hays said there is a shortage of suitable candidates at this level. •Senior Metallurgists – As mining companies remain focused on increasing productivity from their existing plants, employers are looking for Senior Metallurgists with specialised experienced. •HV Electricians – Hays said there are many candidates in the market with the correct qualifications, but mining companies are looking for candidates that have very specific experience with the type and model of machinery used on their projects.

Mining engineers, senior metallurgists and HV electricians are just three of the professionals being sought by miners as candidate movement and the preference for people with experience in previous roles impacts hiring decisions, says recruiting experts Hays Resources & Mining.

•Diesel Fitters – As with HV Electricians, miners demand very specific experience in terms of the type and model of the machinery previously worked on. Western Australia •All-round Trainers & Assessors – Hays said these candidates are always in high demand as few people gain enough experience operating the broad range of machinery used on mining sites. •Authorised Mine Surveyors – Hays said that because this is a role with statutory requirements, employers must have an Authorised Mine Surveyor to sign off changes with demand for these professionals very high. •Reliability Engineers –Hays called people with experience in this role ‘scarce’, saying few people have the degree and mine site experience required. •Maintenance Planners – Hays said because this role requires experience with a minimum of 10 years in a trade, followed by progression into the highly trained role of planner rather than supervisor, these professionals are highly sought after. And as mine sites age and equipment depreciates, there is more focus on maintenance with demand for these skills increasing as a result. •Shutdown Planners – Hays said planners are always in demand as site shutdowns require specialised planners who have the skills and experience to understand the procedures involved. •Underground Heavy Diesel Fitters – Companies now require candidates with HDF trade certification Hays said, however there are currently not enough qualified fitters in the market. Previously, candidates with site experience were accepted, but now OHS requirements and changes in insurance coverage mean that they need the correct documentation to back up their skills. 41

Sirius' Nova-Bollinger on track to catch nickel revival wave Sirius Resources’ Definitive Feasibility Study for its $AU471 million Nova-Bollinger nickel mine, in Western Australia, is on track for a go-ahead decision expected in June. Sirius managing director Mark Bennett said the company is already fielding significant interest from financiers after releasing its Scoping Study in September. “Our scoping study has firmed that Nova and its nearby subsequent Bollinger discovery is a financially and technically low risk minimum ten year mine life project,” Bennett said. Bennet said the project is attracting unsolicited financing offers at “incredibly cheap rates” just so that parties could “get a seat at the table”. “We believe that once production commences, Sirius will emerge as between the 10th and 14th largest nickel producer in the world,” he said. Nova has anticipated C1 cash costs of $US1.57/pound in concentrates net of by-product credits. “The $471million capex is in line with our expectations

but does include a contingency of $AU51 million for delays and inflation – but hopefully we won’t encounter those,” Bennett said. The stars continue to align for Sirius with the expected ramp up of the Nova mine expected to coincide with a predicted revival of the nickel price. Bennet said the project is an opportunity to “catch the wave that is coming”, particularly with world nickel production increasingly being “under the water”. “The consensus nickel pricing during our ten year mine life, starting in 2016 after a two year mine construction period, is forecast to be around $US10 a pound,” Bennett said. “Using a flat 0.90 US/AU exchange rate, this will generate revenue of $AU4.6 billion and net cash flow of A$2.8 billion. “We are highly leveraged to the nickel price with $AU440 million cash flow per $US1/lb change.

GlencoreXstrata refuse to meet with Collinsville locals Locals say it was an opportunity for GlencoreXstrata to present their side of the argument, but the multinational miner refused to attend a community member meeting in Collinsville this week. Mining Communities United (MCU) president, and Collinsville resident, Donna Bulloch, invited representatives from the CFMEU and Glencore to a community forum in the town. However GlencoreXstrata refused to attend. Bulloch told Australian Mining the meeting had now been cancelled. “GlencoreXstrata are saying there are a lot of untruths being represented in the media, but won’t come and tell their side of things to locals,” she said. A letter sent by the company stated: “…we do not believe that a public debate with the CFMEU as proposed in your correspondence would provide a platform for genuine and constructive progression of discussion about the situation at our Collinsville mine." Bulloch said a second meeting was requested because ‘nothing solid’ came out of a meeting with the miner earlier this month, held with only 14 people at the mine itself. She added that the meeting in town would have been open to anyone who wanted to attend, giving GlencoreXstrata a chance to ‘clear the air’. The local community have become increasingly concerned that their town may go under after the closure of the mine in early September, with the multinational miner refusing to grant preference to the existing workforce as it moves to an owner-operator model.

A spokesperson for Glencore told Australian Mining this morning that an agreement with the union was "some way off". "We are very disappointed by the union’s intransigence and, as a result, remain some way off finalising new, modern, flexible workplace agreements – similar to those in place at our other coal mines in Queensland – that are essential for the mine to re-start operations and have a viable, long-term future," the spokesperson said. The spokeperson added that Glencore was committed to holding meetings with locals. “...earlier this week we met with a number of local landowners; next week we will meet with local indigenous groups; and shortly after that we will meet with a number of local Collinsville business owners," he said.

The CFMEU have accused GlencoreXstrata of being anti-union and anticollective bargaining, stepping up their fight against the multi-national miner by announcing that it plans to take GlencoreXstrata to court to block the miner from hiring new workers.

"The purpose of these meetings is to provide a comprehensive update on the current situation; repeat our willingness to invest in the future of the Collinsville mine – with new, modern, flexible workplace arrangements; and address any questions or concerns that members of each group may have. " While most aspects of the new workplace agreement remains under wraps, an ad taken out by GlencoreXstrata in a Bowen newspaper said its new salary for a seven day roster was higher by $1900 $5,370 per year to $119,989 - $128,943. Superannuation contributions will rise by $410 - $1240 a year to $11,099 - $11,927. However critics say higher wages come at the cost of reduced entitlements such as rental assistance which makes the agreement less attractive.

GlencoreXstrata say previous workplace agreements are restrictive and want to re-hire workers under differing contracts which are “modern and flexible”, a move which has angered the unions and the community alike. GlencoreXstrata said the coal mine will not reopen until early 2014 if new employee arrangements cannot be finalised. However with the state of businesses on the ground being described as ‘dire’ since the closure of the mine, many say if the operation remains closed until 2014 some won’t survive. It has claimed the miner is attempting to reduce the CFMEU’s footprint in the region.

Mining is critical for everyone on the planet, Cutifani says The ICMM now serves as an agent for change and continual improvement on issues relating to mining and sustainable development. It requires member companies to make a public commitment to improve their sustainability performance and report against their progress on an annual basis. In addition, to augment these efforts, it engages with a broad range of stakeholders (governments, international organizations, communities and indigenous peoples, civil society and academia) to build strategic partnerships.

“Mining is critical for everyone on the planet” said Mark Cutifani at an ICMM reception yesterday evening in London, as he set out his stall on what he thinks the International Council on Mining and Metals should be focussing on as his term begins as the august organisation’s chairman. According to its website, the ICMM’s basic brief is as follows:to improve sustainable development performance in the mining and metals industry. Its core membership comprises 21 mining and metals companies (the world’s largest miners) as well as 35 national and regional mining associations and global commodity associations working, in combination, to address core sustainable development challenges. To an extent though the ICMM is largely working with the already converted, and Cutifani, the new CEO of Anglo American Corporation who has become ICMM chairman almost by default as some other possible top mining company CEO contenders have fallen by the wayside in the past few months of bloodletting in the industry, obviously feels the organisation should go further in getting ‘the mining is critical’ message across to the general public rather than just raise standards in the industry itself, at which it has proven to be an excellent guide. Talking to Mineweb at the reception, Cutifani comes across as a grass roots miner who has an inherent understanding of the industry, and its flaws, which he brings into his management style. He strongly believes that mining is indeed critical to the welfare and standard of living of everybody on the planet and insists that his troops, i.e. his employees down the line, should also be proactive at getting their message across to the community at large. They should be proud of their industry, which perhaps contributes to about 45% of the global economy, yet only takes up a minute portion of the planet’s land surface. Mineral extraction is one of the world’s two basic industries – the other being agriculture – and even agriculture would not be able to supply the globe’s needs without mining of the key fertiliser minerals, potash and phosphates to boost production sufficiently to provide for us all. And as for everything else that contributes to our way of life, ‘mining’ in its broadest sense supplies it. Without mining and metallurgy, we’d be living in mud huts, working with primitive stone tools – indeed we’d be back in the stone age.

But how do you get this across to the people who nowadays just take mining products for granted, yet are happy to support supposed environmental activists who seem to oppose mining at every level and are more than happy to promote scare stories, and often use outright lies or certainly economies with the truth, to try and get their frequently misleading and self-serving agendas across? If Mark Cutifani can somehow enable the industry, via the ICMM, to get its own case across and get people in general to understand that we just can’t survive in the manner to which we have become accustomed without mining, then he will be doing the industry, and the world, an enormous service. In the ICMM there is an organisation which certainly has the intellectual capability of doing this, but perhaps not the financial resources. It has been hugely successful in raising standards within the industry itself, a very limited universe, but can it bring this success to the broader audience necessary for sustained change? As implied above, Cutifani is not out of the self-important mould that has been the pattern with so many mining, and other company, CEOs of the past. When he took over as CEO of Anglo American he took his time to get round to all his head office staff and talk to them about their own aspirations and outlook on life – not a cursory handshake and brief introduction which some former CEOs may have undertaken – if that. He also understands that if the grass roots of the industry can be mobilised to promote understanding of it among friends, family and the general public, that can be a huge part of the battle, and the ICMM can certainly provide good ammunition for doing this. At the reception he recounted a story of receiving a letter from a widow congratulating him on pulling out of an unnamed North American project which she seemed to feel would be a disaster and the ultimate environmental nightmare which would rebound on her children and grandchildren. Instead of just ignoring it he penned a 2-page letter in reply pointing out the importance of massive projects of this type in maintaining life on this planet as we know it and how important they are for the future of his own children and grandchildren! If all mining stakeholders were prepared to make this kind of effort in supporting their industry then maybe it would not find itself under so much pressure in so many countries, many of whose wealth was literally built on the back of mining development. Familiarity breeds contempt, and perhaps nowhere is this more valid than in the perception of global mining. If Mark Cutifani can use his time as chairman of the ICMM Council in getting mining’s message across to the world at large, he will be doing everyone an immense service.

becker - collision avoidance - cas - 400 - series...one Released by Lindy Morton, Festivitas, Telephone (031) 502 2374 or 083 268 6666 For further information Johann Smit, Chief Sales Officer, Becker Mining South Africa (Pty) Ltd PO Box 124185, Alrode, 1451 Telephone (011) 617 6300 Email info@za.beckermining.com Web www.za.beckermining.com October 2013

Collision Avoidance Systems (CAS) developed for the

the threat. An onboard buffer enables authorised personnel

mining sector by Becker Mining South Africa, prevent

to download daily movement details, either physically, or

fatalities, injuries, damage and down time resulting from

via a wireless network, like a leaky feeder system.

the operation of vehicles in the proximity of personnel - on

more becker-collision-avoidance-cas-400-series...two

the surface, or underground. Miners are cautioned by a transceiver tag (Personnel These modular systems, which range from a simple, lowcost single technology system, to an integrated multitechnological system, encompass all aspects of the most advanced mining communications and technology.

Avoidance System or PAS) when they come close to any vehicle, by means of a flashing light and buzzer on a cap lamp. The number of flashes, which is limited to five, indicates the number of vehicles in a miner's vicinity. The

Becker's latest patented tri-technology Collision Avoidance System, with four proximity warning zones, has been designed to overcome the limitations of existing systems and can even bring the mine vehicle to a complete 'STOP', should this be necessary.

“This reliable system, which is installed in various mine vehicles and cap lamp battery packs, acts as an early warning indicator to both vehicle operators and pedestrians, playing a vital role in enhancing safety,” says

detecting range can be set according to specific requirements. The combination of this system provides a warning where miners are warned of machines, machines are warned of personnel and machines are warned of other machines. A further advantage of Becker's new multiple technology approach is that mines now have the flexibility of being able to monitor both slow and fast moving equipment on surface and underground with one system.

Johann Smit, chief sales officer, Becker Mining South

With the new patented tri-technology Collision Avoidance

Africa. “CAS is a very necessary safety system on the

System, absolute distances constituting each zone

mines, particularly underground, because in this harsh

transition threshold are variable, but default values for slow

environment, it is impossible for a vehicle operator to

moving vehicles – less than 10 km/hr – are clearly defined.

always be fully aware of other miners and vehicles in his

In the critical zone, up to 5m, vehicles are forced to stop. In

immediate proximity.”

the warning zone, between 5 m and 12,5 m, there is an intense warning for vehicle operators and miners. In the

Becker collision and personnel avoidance systems consist of personnel and vehicle tags and the machine mounted devices which detect them. Higher end tags warn

caution zone, between 12,5 m and 100 m, there is a gentle warning for vehicle operators and miners. In the safe zone –more than 100 m, no warning is necessary.

personnel of an approaching vehicle. These products may be utilised as a simple stand alone or complete system and can be deployed using a phased approach, to minimise a huge initial capital outlay. The new CAS-400 series receiver provides first in its class audible voice annunciation (customisable in different languages - on request) and visual warning proportional to the position of 46

An important feature of Becker Mining South Africa's safety systems is they are designed to facilitate future upgrades. Suggested Caption Becker Mining South Africa's latest patented tri-technology Collision Avoidance System (the CAS-400 series) with four proximity warning zones, has been designed to overcome the limitations of existing systems and can even bring the mine vehicle to a complete 'STOP', should this be necessary.

Peabody locks workers out of mine “To minimise the impact on the mine and its operations Peabody is exercising its rights under the Fair Work Act to idle the mine for the 72 hour period of the notified industrial action.”

More than 200 workers at Peabody’s Helensburgh Metropolitan Colliery have been locked out of the mine for 72 hours as the dispute around a new enterprise agreement continues.

The most recent planned industrial action comes after workers walked off the job for 48 hours last week following two days of bans on production and limitations by the mine’s workforce.

The company took the action yesterday after staff planned further bans and limitations around production.

Strikes at the mine started in early October, with a 48hour work stoppage held over the long weekend.

A Peabody spokesperson said the company would idle the mine for 72 hours “as a result of disruptive industrial action initiated by the CFMEU”.

The CFMEU claims the new agreement would freeze employees pay increases, putting their wages behind those at other operations in the region by more than 20 per cent.

“Despite attempts to advance negotiations this week, Peabody has been notified of further industrial action,” the spokesperson said.

"First, they offered zero per cent increase in pay over three years, then they made a counter-offer with minimal increases over years two and three," he said.

CFMEU south-western district vice president Bob Timbs said the company’s response was disappointing, adding that during last weekend’s industrial action, some employees had worked to secure the safety of the longwall, Illawarra Mercury reported.

A previous statement by a spokesman for the colliery said the company had been trying to negotiate a "fair and sustainable outcome for all employees and the company".

‘‘Last week we went in to run the mine when there were some geological abnormalities with the longwall, so we drove the longwall into a good condition and the thanks we get for that is that now they’ve locked us out,’’ Timbs said.

"Peabody is committed to working with our employees and the union to deliver an agreement which mirrors current market conditions, enables the company to manage current industry challenges and provides job security for all employees," the spokesman said.

He said the union will hold a meeting with workers today.

Chevron pulls intimate quiz A probing Chevron recruitment questionnaire which asks prospective job seekers, amongst other things, about their reproductive history has now been pulled. Chevron issued an internal statement on Friday saying many of the questions “are not relevant for our local Australian employment situation”, and that the global form will be amended, Fairfax Media reports.

"Our forms will be amended to ask only medical information relevant to the position. It is in our best interest to ensure our people are safe and fit for duty," the email stated. "We were pleased to hear from the workforce on this matter and encourage anyone who would like to make suggestions or comments to use [management team feedback resource]." The questions appear in ‘Part F’ of a questionnaire, entitled ‘Reproductive Outcomes’, and states “Men and women should answer all of these questions to the best of their knowledge”. The ‘all’ is underlined on the form providing extra emphasis. Underneath it states 'Section F' is optional but that “we would appreciate your response. Thank you”. The form asks if the job seeker – or their partner- has ever been pregnant, how old the mother was during pregnancy, if the mother has had a miscarriage, stillbirth or an abortion. The medical history form also asks if women have fertility issues and to list the date of their last period

Copper find could see Mt Gordon reopened A new copper find at Aditya Birla’s Mount Gordon mine near Mount Isa in Queensland is being reviewed by ANZ Bank, fuelling speculation about the mine’s future.

The company estimates the lens contains a minimum inferred mineral resource of 12.53 million tonnes at 1.29 per cent copper.

The Mt Gordon operation, located 120 kilometres north of Mount Isa, was put into care and maintenance mode in April just two years after the company announced it would reopen the site in 2011.

According to the North West Star, the find could add another 16 years mine life to the operation if it was ramped up once again.

Aditya Birla said at the time the move to shut the mine was made because of falling copper prices, which plummeted in June. But recent exploration efforts have identified what appears to be a new lens and additional mineralisation to the south of the lease.

Aditya Birla chief financial officer Shanti Lal Dugar said the company's most recent Australian Stock Exchange report shows a 13 per cent increase in its copper resource, jumping from 154 million tonnes in March 2013 to 185 million tonnes as of September 30. ``Our head copper has increased 2.05 million tonnes to 2.3 million tonnes roughly so that's a good outcome on the exploration,'' he said. Lal Dugar said the future of the site depends on the ANZ Bank's strategic review of the operation. But the North West reports the mine estimated if production was to restart the number of jobs available could be more than 500. A community meeting at Mt Gordon has been slated for next Tuesday and is expected to cover any environmental concerns the operation’s neighbours may have if the mine was to go back into production. In 2011 Aditya Birla was fined for failing to comply with orders to improve environmental management problems

Glencore to open Ulan mines to GlencoreXstrata will open the gates of its Ulan Coal mines to locals on November 9 as part of a community day aimed at showcasing both its open cut and underground operations. The event is expected to highlight the mine’s equipment and technology, as well provide a history to Ulan Coal’s operations which date back to 1920. Mudgee Guardian reports this will be the first community day held at Ulan West underground mine after the open cut operation last hosted the community in 2012 and 2007. GlencoreXstrata’s general manager of western operations, Dan Clifford, said members of the local community will have the chance to view both open cut and underground operations. “The day provides an opportunity for the community and families of employees to understand mining processes at Ulan and to get a first-hand view of where their parent, spouse, friend or relative works,” he said. 50

“It will also show there are many facets to mining including several environmental initiatives and heritage considerations.” Clifford said the day had been in the works for many months, with activities for the whole family including a jumping castle, giveaways and a barbecue. Glencore has arranged tours of the mine, equipment displays, supplier demonstrations and catering. Information around community projects and careers at the mine will also be on display.

Cripps defends Queensland mine safety review Queensland Mines Minister Andrew Cripps has defended his review of the state’s mine safety regulations, dismissing claims by the CFMEU the reforms will lead to decreased safety. In early September the government put forward mine safety improvements, asking for industry feedback. But the CFMEU is not satisfied with the changes and cautioned workers to be “wary” of the new changes made by the state’s Department of Mines. Queensland district president Stephen Smyth said while they supported the additional representative, they would not back changes to their authority. "We have world's best practice," Smyth said. "The LNP Government keep telling us that as well and we know that for a fact, so why change something that isn't broke? "This is the issue we have with submissions put forward so far for the changes. "If you look at the objectives and the scope of what this is about, some of those proposals just don't fit into the scope of the objectives." However, Cripps said the review will be thorough and will improve safety and accountability. "There'll be no change for change's sake," he said. "We'll be making informed decisions about what we do with our mine safety legislation. "If harmonisation with other jurisdictions is in Queensland's best interest, then we'll

pursue those changes but if not, we'll be maintaining Queensland's standards, which are internationally recognised as being as one of the best in the world." Cripps said the review would look closely at the unions involvement in shutting down mines. "What we have seen under existing legislation is that union officials in Brisbane can make a phone call and shut down a mine without even setting foot on the worksite and I challenge the CFMEU to be honest about those instances where union-appointed safety officials have inappropriately stopped production," he said. Cripps said the review was aimed at ensuring that legislation protects workers. "We're absolutely determined to ensure that Queensland's mine safety and health laws are about that, the safety and health of workers, and that they're not used as weapons in industrial relations disputes or flouted by operators who don't take them seriously enough," he said. The improvements include an additional coal industry health and safety representative, more protection of contract workers, and regulation of alcohol, drug and fatigue management on mine sites. It also includes changes to health guidelines for contractors and workers, and laws to make sure the hazards of explosive dust would be alleviated with “stone dusting”