Australian Mining April 2013 by Prime Creative Media

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AM0413_003.pdf

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COMMENT

Mining Australian

Associate Publisher – Martin Sinclair Email: martin.sinclair@cirrusmedia.com.au Editor – Cole Latimer Tel: (02) 9422 2352 Email: ozmining@cirrusmedia.com.au Journalists – Vicky Validakis Tel: (02) 9422 2964 Email: vicky.validakis@cirrusmedia.com.au Brent Balinski Tel: (02) 9422 2408 Email: brent.balinski@cirrusmedia.com.au Alex Heber Tel: (02) 9422 2884 Email: alexandra.heber@cirrusmedia.com.au QLD and SA Sales Manager – Sharon Amos Tel: (07) 3261 8857 Fax: (07) 3261 8347 Mob: 0417 072 625 Email: sharon.amos@cirrusmedia.com.au WA Representative – Jamie Wade Mob: 0435 945 868 Email: jamie@wadebusiness.com.au South Africa – Bob Stephen Stephen Marketing PO Box 75, Tarlton, Gauteng 1749, South Africa Tel: 27(011) 952 1721 Fax: 27(011) 952 1607 USA – Jonathan Sismey Cirrus Media 24th Floor, 125 Park Avenue, New York, NY 10017 Tel: (1) 212 370 7445 Fax: (1) 212 370 7441 Email: jsismey@ix.netcom.com Larry Arthur RBI Suite 203, 3700 Campus Drive, Newport Beach, CA 92660 Tel: (1) 949 756 1057 Fax: (1) 949 756 2514 Email: lharthur@ix.netcom.com Cirrus Media Manufacturing & Electronics Group: Graphic Designer – Dave Ashley Production Co-ordinator – Tracy Engle Tel: (02) 9422 2707 Fax: (02) 9422 2966 Subscription Rates – Australia (surface mail) $140.00 (incl GST) New Zealand A$148.00 Overseas A$156.00 Reader Services – 1300 360 126 ISSN 0004-976X

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The way forward Mining is recovering, let’s just hope we can stay on course and weather these turbulent times.

e are just over three months into the year and I’d like to take a moment to look at how far we’ve come and how different this period is compared to the same time last year. The cyclical process that is mining is never better high lighted than in an instance like this. The dizzying heights of nearly $200 per tonne for iron ore and price spikes for coal plummeting rapidly to earth and initiating massive lay offs showcased a year of two distinct halves. What goes up has to come down. Yet governments hungry for a larger share of what seems to lately be an ever diminishing pie do not grasp the cyclical nature of the min

www.miningaustralia.com.au

Cole Latimer ozmining@reedbusiness.com.au ing and resources industry. It will go up, and 2011/12 dem onstrated this fully, but when it comes down it comes down hard, and 2008 and the last half of 2012 certainly showed this to be the case. So why, when it has been clearly demonstrated on pre vious occasions, do they per sist in raising taxes and royal ties and basing their budgets around their returns. If they approached a min ing tax in a sensible way orig inally the billion dollar black hole that arose earlier this year wouldn’t have occurred

– and miners may have actu ally paid some of this tax. It’s simple really. But let’s step back for a moment and look at how we’ve fared this year so far without taking into account the failure that was the Min eral Resources Rent Tax. We’ve gone through a slight recovery in iron ore and coal, gold as always remains strong, copper is predicted to be the next darling of the re sources sector, and investors are returning to mining, al beit slowly. But the driver of much of our growth – China

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Comment

– is cooling its heels on our re sources, as its own economy slows and its steel industry contracts. So our industry is likely to contract as well, although not to the degree we saw last year. Mining is ok, battered, but resilient; and in the years I’ve been writing on this in dustry I’ve watched it go gangbusters and then in turn stall, pundits in the media de clare the end of the resources sector, only for it to come back again – dragging our economy out of the global financial crisis in the process. Unfortunately we may see it stall and slow again, but as long as exploration con tinues, (which admittedly is not happening to the degree it should be) we will be ok, and remain a keystone of Austra lia’s economy.

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ON this edition’s front cover we’ve featured the coal reclaimers at Newcastle’s Kooragang Island. These reclaimers are at the gateway of the Hunter Valley’s access to the world. Despite a slowdown in the demand for coal, particularly metallurgical coal, the Hunter Valley is still experiencing growth. The Bureau of Resources and Energy Economics recently stated that the region is posting record export volumes. BREE executive director Quentin Grafton explained that unprofitable mines in the Hunter were an exception, and there have “always been issues” with some sites. “There still may be issues for individual mines, but for the industry as a whole, that’s not our view at all,” he said. “We would expect there would be new mines opening.” Grafton also said BREE was projecting coal prices to steady over the coming years rather than fall further. “[There will be] very substantial growth for metallurgical coal and thermal coal over the next five 1 2 / 0 2 / 1 3 , 5 : 5 3 PM years, close to 100 per cent in one case and 50 per cent in the other case,” he said.

AustralianMining

April 2013

AM0413_004.pdf

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Contents

April 2013 issue

Protective enclosures

Kalgoorlie’s latest gold mine

Protecting your equipment on site….p44-47

The lowdown on KalNorth’s newest mine….p58-60

Features HUNTER VALLEY SPOTLIGHT

No rest for the ICAC The continuing corruption trial ........................................................... p12 The candid candidate A one on one with the Upper Hunter’s mayor ................................ p14-16 Pushing the limits A new contender in the Hunter Valley ........................................... p18-19 Rehabilitating the Hunter How miners are keeping the Hunter green .......................................... p20

MINING JOBS

Mining’s graduating workforce The hunt for workers is going global................................................... p22

INFRASTRUCTURE

Mining’s innovative opportunity Preparing for the future ....................................................................... p42

POWER GENERATION & ELECTRICAL EQUIPMENT

Off the grid solar solutions Power from a different source ........................................................ p48-49

GRANT THORNTON

Optimism always prevails Confidence remains buoyant ............................................................... p50

AUSTRALIAN MINING ON SITE

The dish on Northparkes The latest developments at the block caving mine .......................... p56-57

Creating capacity Building your infrastructure ................................................................ p24 From port to pit Overcoming Australia’s infrastructure issues ....................................... p26

REPORTING & REGULATIONS

HIRE & RENTAL

The mining tax court challenge explained What it means for you.................................................................... p64-65

Mining equipment auctioned Australia’s growing auction market................................................ p28-29

UNDERGROUND MINING

New ways to bore The latest developments in tunnelling.................................................. p30 Q&A: Underground Mine Manager Daily life as an underground mine manager ........................................ p32 Longwall low seams New longwall miners .......................................................................... p34

MANUFACTURING FOR MINING

Keeping miners moving Building better hydraulic hoses............................................................ p36

CONTRACT MINING, ENGINEERING & SERVICES

Mining contractors feel the squeeze Contractors future in trouble as miners move to owner operator .... p40-41 4

April 2013

AustralianMining

What the new JORC codes means for miners How will your business change ...................................................... p62-63

LEGAL

SAFETY

Miners shown the door for shaking Social media on site, and its risks ........................................................ p66

Regulars INDUSTRY COMMENT ......................................................................... p6 NEWS ................................................................................................... p8 MINING FAMILY MATTERS................................................................ p10 PRODUCT FOCUS: Cranes & Lifting ............................................. p52-54 PRODUCT SHOWCASE ................................................................. p68-72 PROSPECT AWARDS ......................................................................... p74 JOBS ................................................................................................... p77 EVENTS .............................................................................................. p78 www.miningaustralia.com.au

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INDUSTRY COMMENT

FIFTY SHADES of Gray The mining industry has a new resources minister following Labor’s leadership turmoil last month, but with an election only six months away, how much can he achieve, The Dirt asks.

he Labor Party’s failed leadership coup last month overshadowed most of the Australian political scene. And in case punters were unsure what the contest meant for the mining industry, the Liberal leaders of WA and QLD were quick to spell it out. “It has been embarrassing for Australia for a long time and I might say that the point has been made to me by political leaders around Asia,” WA premier Colin Barnett said after the challenge. Joining Barnett at the firing line was QLD premier Campbell Newman, who claimed constant leadership executive, Gary Gray, took speculation within the ALP charge of the nation’s indusfailed to provide a “clear di- try. rection” for the nation. Ferguson was an expeBut outside what had rienced and well-respected clearly become political point minister, considering the scoring for conservative pre- unpopularity of Labor, and miers, the mining industry did Gray’s appointment already register a significant change has pundits wondering what following the turmoil. he’ll bring to the new role. Prominent Rudd-backer While he was quick to and resources minister Mar- claim it would be “business tin Ferguson resigned from as usual” for the industry, his post after the contest, and Gray has already underlined A D _ A MA B L O C T _ 1 2 . p d f a ge 1 1 3 / in his place former Woodside a key focusPpoint for his time

in Government, and he’s not shied away from the big issues. Unwilling to make changes to the mining tax Gray has instead signalled a softening line on foreign labour, conceding such workers are “vital” to the industry. The concession does not represent a break in policy for the ALP, but it does underline a more nuanced approach to the issue, which 0 9 / 1 2 , : 4 4 AM has become 1a 0new flash-

point for Federal Labor. The rhetoric over foreign workers has changed track several times over the last 12 months, and Gray may want to stamp his mark on the debate to stop it changing further. In a sign of uncertainty around how best to regulate foreign workers Labor has on one hand helped draw up the Enterprise Migration Agreement policy and on the other signalled

reforms to the 457 system. The 457 reforms come as miners ratchet down their demands for overseas labour, and it shows some inconsistency in the way the ALP has dealt with the issue. Gray’s conciliatory approach will no doubt be welcomed from the industry, which has called for a cautious debate over 457 reform. It will also signal steadying management on an issue that has lacked clarity over the last few months, particularly from the Federal Government. But with an election only six months away the influence Gray will have on the industry is unlikely to be groundbreaking, considering the chances of Labor’s re-election. In such a climate Gray has essentially been rendered ‘night watchman’ for the nation’s mining sector, and while anything can happen in the world of politics, it’s unlikely he’ll drive major reforms in the lead up to September. His legacy may well be that of Ferguson’s, and one the industry will be glad to see the end of.

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AM0413_008.pdf

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HEADLINES

The latest mining news and safety Australian Mining presents the latest news and safety affecting you from the boardroom to the mine and everywhere in between. Visit www.miningaustralia.com.au to keep up to date with what is happening. Prospector found dead in outback NSW

Poll shows support for Gillard’s 457 visa stance

A missing prospector has been found dead and A poll carried out by the Construction, Forestry, his companion has been taken to hospital after Mining and Energy Union (CFMEU) has revealed their 4WD became bogged in mud near Broken that 89 per cent of Australians believe that Hill in outback NSW. that mining companies should look for local The dead man, William Coles, 78 and his friend, workers before employing foreign workers Raymond Davis, 81 were on a prospecting trip on 457 visas. In addition, 77 per cent of the when their vehicle became stuck. population supports the Federal Government’s They were believed to be heading to a sheep crackdown on rorting of the visa system. station north of Broken Hil. Following a rise in the visas over the last year Their families raised the alarm after they failed and claims of abuse within the system, Prime to return to Broken Hill that day. Minister Julia Gillard announced last week that The police and State Emergency Service her government intends to tighten the use of conducted a search involving two aeroplanes the visas and aims to put “Aussie jobs first”. and landholders were told to keep a look out CFMEU National Assistant Secretary and head for the two men. of the Construction Division Dave Noonan A local landowner found the vehicle near called for legislation to ensure an end to abuse Euriowie, about 70 kilometres north of Broken of the system. Hill. “We need legislation that forces employers There was plenty of food and water in the to be honest and accountable to skilled vehicle and neither man had attempted to Australians who are looking for work. If there is leave the vehicle. a genuine shortage proven, then and only then, Mr Davis was assessed by paramedics and can employers take this route; as a safeguard then taken to Broken Hill Base Hospital for A D _ A M L A N A P R _ 1 3 . p d against f Psystemic a g e abuse 1 of1these 1 / vulnerable 0 3 / 1 3 , further checks. guest workers,” he said.

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Gold miner creates 120 jobs Gold miner La Mancha Resources has announced massive expansion plans and will be launching a recruitment drive in order to double its WA Goldfields workforce. The company will create 80 new positions to bring the White Foil open pit near Kalgoorlie back into production by the December quarter. The company will also hire another 40 workers for its new $110 million processing plant, which will be completed next year. The new jobs will be added to the existing 160-strong workforce stationed at La Mancha’s Frog’s Leg underground mine, also near Kalgoorlie. La Mancha joins a number of other Goldfields companies currently undertaking expansions, with Norton Gold Fields hiring 40 new workers in the last 12 months. Australian Mining gets the latest news every day, providing mining professionals with the up to the minute information on safety, news and technology for the Australian mining and resources 1 0 : 1 1 : 0 5 AM AEDT industry. “The CFMEU welcomes the Prime Minister’s acknowledgement of the evidence of the failures of the 457 visa system. 457 visas have shot up 20 per cent over the last year while employment has only grown by 1 per cent.” The government changes are to include a requirement for employers to demonstrate a genuine shortage of potential employees before nominating positions for 457 visas and raising the English language requirements for certain positions.

Xstrata set to double coal production in QLD Xstrata is pushing ahead with its expansion of Rolleston coal mine in Queensland, signing a deal with Aurizon that will see haulage increase to 20 million tonnes per year. The expansion is set to double the amount of coal mined, with current production levels sitting at around 9.4 million tonnes. Under the contract,tonnages will hauled to RG Tanna Terminal in Gladstone and the new Wiggins Island Coal Terminal which is under construction in Gladstone. Aurizon chief Lance Hockridge said he was pleased his company won the bid. “Xstrata ran a competitive bidding process for this large-scale contract for Rolleston, so Aurizon is extremely pleased with this vote of confidence in our continued high performance on this haul.” Aurizon provides Xstrata with 80% of its haulage services in Queensland.

Fortescue again increases Nyidinghu resource Fortescue Metals Group has again increased its iron ore resource at Nyidinghu, after uncovering an additional 450 million tonnes. In October 2011 the miner increased its total delineated resource at the site from 1.03 billion to 2.01 billion, with a cut off grade of 52% Fe. At the time Fortescue said “it is contained within an area of about 14 square kilometres, and has an expected strip ratio of less than 2:1”. Now it has once again increased the resources at the site, pushing the total amount to 2.46 billion tonnes, using the same 52% grade cut off point. This estimate includes a measured resource of 23 million tonnes at 59.6% Fe and indicated resources of 580 million tonnes at an average grade of 58.1% Fe. The remaining 1.86 billion tonnes is still classified as inferred.

BHP moving toward “next generation” mining BHP Billiton says it will focus on automated equipment and new technology as it moves toward “next generation mining”. BHP vice president of mine optimisation Gavin Yeates said the company was looking to new technology to improve its business. “We are piloting and introducing new technologies in selected assets including integrated remote operating centres, autonomous haulage, autonomous drilling and different ways of evaluating and modelling ore bodies,” he said. “We’re actually at the cusp of moving to what we’re calling ‘Next Generation Mining’. This is driven on one hand by technology advances in autonomy and sensing. That coincides with a drive for growth in far more complex, deeper, lower-grade ore bodies.” www.miningaustralia.com.au

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AM0413_010.pdf

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MINING FAMILY MATTERS

Working away on site is NO EXCUSE to be unfit Mining Family Matters’ Mareike Bout discusses motivating yourself to get fit onsite.

ou know what it’s the same thing about starting like: you’ve just come your exercise regime tomoroff another 12-hour row. shift for the seventh day Before you know it, the straight and you’re tired. It’s days, weeks and months have stinking hot outside, you’re rolled by, another couple of hungry, and you’re cranky. kilos have deposited themAll you want to do is relax selves onto your belly, and all with a big tasty meal and an your resolve to start the year ice-cold beer, then fall into a on a healthy note has left the comfy bed with a big fluffy building! Sound familiar? pillow. I don’t want to alarm In the back of your mind you, but there’s more at you know you should go to stake here than just looking the gym because it’s good for good in a man-kini. A recent you and you need to lose a study by the WA Departfew, but you just don’t have ment of Health found that the motivation. You decide fly-in, fly-out workers have to go “tomorrow”, but when high levels of lifestyle-related tomorrow comes you find health risks such as drinkyourself not inLthe AD_ A MF I Agym P R but _ 1 3 ing, - smoking 1 2 0and 1 3being - 0 3over- 2 8 in the mess again, repeating weight or obese. The report

revealed: “Their working patterns have been shown to disrupt sleep, lead to depression, poor mental health, increase the risk of peptic ulcers, cardiovascular disease, and type 2 diabetes.” That’s serious stuff! None of these illnesses happen overnight either; they are the manifestation of the lifestyle choices we make in our 20s, 30s and 40s. It’s when we start to enter our 40s, 50s and 60s that the years of processed food, too many beers and not enough exercise catch up with us. And once it does, life just won’t be the same again. It is much harder to0 regain T 9 : 3 0your : 3 8health + 1 1 back : 0 0 from the grips of disease, than

preventing them from striking you in the first place. So, what are we going to do to give ourselves the best chance at living well for life? We all know why we should exercise and eat healthy, but how do we go about doing it? There are two keys to changing your behaviour. First, you must believe you can change. Then, you must believe the change is worth it. A good place to start on the road to wellness is writing down all those reasons you have to be healthy and fit, and take your time to really reflect on what they mean to you. Then, write down your SMART goals, as it’s these goals that will provide you

with the direction you will need. Make them: Specific, Measureable, Attainable, Realistic and Tangible. Be sure to set realistic goals that you truly believe can be accomplished with the time and resources available to you so you give yourself the best possible chance of reaching them. Then, follow it all up with some action! Start today, right now, by making healthier choices at the mess. Drink less coke and more water. Eat fewer chips and more salad. Go ride the stationary bike in the gym for 20 minutes instead of watching telly. This is how it starts, and this is how it continues, simple as that!

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AM0413_012.pdf

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HUNTER VALLEY SPOTLIGHT

NO REST for the ICAC No sooner does ICAC’s investigation into one exploration licence end than another begins. Alex Heber reports.

n what has been dubbed the “best show in town” the corruption inquiry into the activities of former New South Wales Labor ministers Eddie Obeid and Ian Macdonald has this month finished hearing evidence.

Act I

Over the last three months the Independent Commission Against Corruption (ICAC) has been investigating allegations Macdonald rigged a 2008 tender process for a coal licence in the NSW Upper Hunter to benefit Obeid and has family. The inquiry has heard the Obeid family stood to make up to $100 million from mining deals in question. The Obeids are accused of using inside knowledge to profit, but both the Obeid family and ex-minister Macdonald have consistently denied any wrongdoing. On the advice of ICAC Commissioner David Ipp, NSW Premier Barry O’Farrell this month announced action will be taken to stop the Mt Penny mine from going ahead. The Mt Penny site is located on top of Eddie Obeid’s farm in the Bylong Valley. O’Farrell announced that cabinet had decided the development application for Mt Penny would now involve a broader “public interest test” which would look at the allegations of corrupt conduct before the ICAC. On the final day of the Operation Jasper hearing, counsel assisting Geoffrey Watson SC said to Commissioner David Ipp: “That’s all there is. There ain’t no more, commissioner.”

Act II

Kicking off this month was Operation Acacia, another investigation into Macdonald’s issuing of an exploration 12

April 2013

AustralianMining

Obeid, Macdonald and Maitland starring in:

The ICAC Circus

licence, this time at Doyles Creek in the Hunter Valley. The corruption watchdog has heard the allocation of the Doyles Creek licence in 2008 was rushed through despite recommendations from within Macdonald’s office cautioning him against the decision. The exploration licence which was announced on

Christmas Eve, was issued without the usual tender process. Su-Ern Tan, Macdonald’s former ministerial staffer, said the minister did not seek independent advice on the proposal but should have sought it from one or two advisory councils. In an email to the then chief of staff Tony Hew-

son, Tan raised her concerns which included the large size of the coal deposit, the proximity of the site to the nearby Jerry’s Plains township and the Wollemi National Park, and the expression of interest from other companies. “We will have to put the area out to tender,” she wrote on February 14. A former NSW Primary

Industries [DPI] official Alan Coutts told the ICAC that he can’t remember the exact words he used when he learned Macdonald had ignored the department’s advice, but it was along the lines of: “We’ve been stuffed”. The ICAC has heard awarding the licence was a “goldmine” that provided a hefty financial windfall for former union boss John Maitland and his associates but to the detriment of NSW taxpayers. “It was a financial disaster for the people of New South Wales and a goldmine for John Maitland and his associates,” Counsel-Assisting Peter Braham SC said. Documents previously tendered to the corruption watchdog suggest the men invested just over $1 million in a training mine site but stood to make up to $60 million within three years, including nearly $15 million for Maitland. ICAC Commissioner David Ipp said the inquiry was looking at the handling of the tender process and the nature of any profits made by shareholders of NuCoal Resources, the owner of Doyles Creek Mining. The exploration licence was granted over a 62 million tonne coal resource for the purpose of a training mine. Maitland’s idea for a training mine was first raised in early 2007, Coutts said he had viewed it as a “stalking horse” to get access to a coal tenement that would earn him and his associates a multi-million dollar windfall. The DPI’s director general at the time, Barry Buffier, told the hearing he considered the training mine proposal to be a “thought bubble” that was light on detail. The Operation Acacia hearing continues. Ipp will hand down the findings from both inquiries in July. www.miningaustralia.com.au

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MMD Sizers

breaking coal

Established in 1978 to design and manufacture equipment for the UK underground coal mining industry, MMD patented the Twin Shaft Mineral Sizer. Since 1978, the company has refined and improved the Sizer design and today MMD size over 70 different minerals, in over 50 countries worldwide. However, coal remains at the core of the company’s business, with a wide range of machines available for this industry. From the original pick and scroll machines; usually positioned close to the coal face, that accept high tonnages and reduce ROM to a conveyable size, whilst eliminating “surf-boards”, to maximise the efficiency of outboard conveyor systems, to segmented tooth machines designed for a specific product size in the coal preparation plant. MMD’s experience, together with a close working relationship with

their

customers

has

allowed them to develop the complete sizing solution.

MMD Australia Pty. Ltd. Brisbane Mackay Singleton

sizers@mmdaus.com.au

Aus Mining Advert 2 (297x235+5mm) v2.indd 1

THE MMD GROUP OF COMPANIES W W W. M M DS I Z E R S . C O M

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Candid candidate: Michael Johnsen September’s federal election could well be won in the NSW Hunter Valley. Alex Heber reports.

he Hunter Valley, while bless ed with resources is a region in conflict. With three internationally re nowned industries competing for land, infrastructure at breaking point and the environmental impact of all this activity beginning to show, Aus tralian Mining sat down with Na tionals candidate for the Hunter Val ley Michael Johnsen to talk about the opportunities and challenges he sees ahead for the region’s mining sector. According to research released by the NSW Minerals Council mining contributes 25 per cent to the Hun ter Valley’s gross regional product [GRP] which Johnsen told Austra lian Mining is integral for the area’s prosperity and future. “To have such a strong industry that employs so many people, at two to three times the national average wage is something you can’t ignore, it is very significant.”

Mining A Dtax _ A MS U P A P R _

1 3

This month treasury admitted the

Nationals’ federal candidate Michael Johnsen says a coalition government will get rid of the mining tax and restore business confidence.

mining tax would not raise the fore casted $2 billion it was expected to and the reasons for under perform ance are being investigated at a Sen ate’s economics committee. Johnsen said it is not the job of a1 government barriers 2 0 1 3 - to 0 3impose - 1 1 T 1 8 : 2to8 business.

“Governments shouldn’t be put ting barriers in the way of confidence in investment,” he said. “There’s no doubt that is cur rently happening.” Johnsen has vowed that the cur rent : 0 4 +mining 1 1 : 0tax 0 will be repealed under a coalition government. “Rather than maintain a failed policy platform, the coalition will come in and get rid of it,” he said. “It has to be done because the bottom line is, we need confidence. “The mining tax hits confidence more than anything,” Johnsen stated. Rio Tinto’s recent announcement that they are one of the largest con tributors to the country in terms of tax paid, and yet they have not paid any mining tax was rendered as a “joke” by Johnsen. “It’s been a complete waste of time,” he said. He explained that “it’s not rocket science”, inviting the industry to effec tively design their own tax isn’t going to provide the government with an ef fective tax.

Infrastructure investment

Rather than penalise mining com panies with the mining tax, Johnsen said “the coalition would rather see the mining companies willingly in vest into the community”. To ensure such investment John sen outlined a number of ways to en tice miners to invest, including incor porating infrastructure contributions into mine approval conditions. “One thing I would like to get going in the Upper Hunter is a trans port corridor,” he said. 14

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Johnsen suggested that by mak ing infrastructure investment part of the approvals process it will elimi nate the double handling of money at the state and federal levels of gov ernment, and cut out “tens of mil lions of dollars” wasted “on admin istrating a scheme which raises not much more than that”. “If you made it as part of the conditions for consent for a mining project to invest in an infrastructure project, the mining companies have the expertise,” he said. “I’m sure the mining companies themselves would be more than will ing to directly contribute to such a project.” With the beauty of hindsight John sen said the government “should’ve identified 20 years ago what would’ve been a suitable corridor”. If this was done and mining con tributions has been made on an on going basis, “for all the conditions of consent that have been made over the past twenty years, I’ve got no doubt we’d have a world class rail system and four lane highway running right throughout the Hunter Valley”. He stated that this infrastructure would get rid of the travelling to work problems experienced in the region and “could’ve increased capa city to enhance the mining industry’s ability to do their job”. “It’s never too late, we need to have the mining industry as active participants,” Johnsen reiterated.

Three uses for land

The Hunter is not short for oppor tunity with an established mining sector, an internationally recognised wine industry and a competitive thoroughbred district, all located in a geographically small area vying for space. “Scone and the Upper Hunter is the horse capital of Australia, second only to Kentucky in the world in terms of concentration of thoroughbred breeding, there are billions of dollars in that industry,” Johnsen explained. In a relatively small area there are three strong industries attempting to cohabitate and compete for land. Balancing the needs of the wine, horse, and mining sectors as well as maintaining the environment and managing the needs of local residents Continued on page 16 www.miningaustralia.com.au

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ture for them to do so,” he said. The structures Johnsen would poses a real challenge, one which put in place if the coalition was to Johnsen said is tough. win the upcoming election would be formed around eliminating the min Mining’s election ing tax, building business confidence The upcoming federal election will and empowering people. test voter support for the Labor gov “Get rid of job destroying taxes, ernment’s controversial taxes on re build confidence, and make it easier source profits and carbon emissions. for people to make their own deci Past bouts with the mining lob sions,” he said. by and politicians opposed to the “The more you hinder people MRRT and carbon tax has seen with taxes or anything else, the the Gillard government come out more you lead them down the gar bruised and battered. den path.” The resources sector “will likely Johnsen explained that what Infrastructure investment is what the be the one that displays the most re people, small business, and large in Hunter needs says Johnsen. action to campaign developments in dustries want is simplicity. the lead up to September 14,” Tim “People want a nice flat struc Criticising the government’s cam Waterer, a senior trader at CMC ture, so they can say ‘we know what paign to date, Johnsen said “they Markets said. we have to deal with, we’ve got con [Federal Labor] aren’t actually going There have been reports the elec fidence to invest and we can make out and talking to the real people, it’s tion will be won in the western sub our own choices about how we want a complete staged managed farce.” urbs of Sydney, but while this area to live our life or run this industry’,” Critics argue that the policies certainly holds a key demographic he said. were watered down under pressure Johnsen warns the Hunter region “That’s not a sexy thing, but it’s and have been largely ineffectual; should not be underestimated. simple.” instead saying they have made the Johnsen explained that the two He said the Gillard government industry less competitive with high areas share similar characteristics; has systematically failed to imple costs eating into profits. both areas are very “aspirational”. ment the structure the mining indus Hunter road improvements “People want to get ahead, peo try needs. ple want job security, and they want “They’re making policy based on Mining activities are taking their toll to make their own choices for their political ‘butt protecting’ issues rath on the Hunter’s infrastructure. Australian own lifestyles. AD _ A M P What A T A we P Ras_ a1 govern 3 . p d f er than P a ggood e 1policy 2 5issues,” / 0 3 / Johnsen 1 3 , 9 : 3Johnsen 8 : 5 7 told AM A E D T Mining that the Singleton and Muswellbrook ment need to do is provide that struc stated. Continued from page 14

bypasses and Scone’s level rail cross ing are all transport issues which need to be looked at. “Even though the Upper Hunter Shire has no mines in it, the reason the Scone level crossing is causing a problem is because of the coal freight out of North West New South Wales and according to the industry and the ARC it’s only going to become more significant,” he said. “To say that we’re not affected [is wrong], we are affected, half the town is on one side of the rail line, and all the emergency services are on the other side, potentially blocked by a coal train going through. “It’s not the coal industry’s fault; I’m not blaming the coal industry but we need to fix this,” Johnsen said. “There is an opportunity for the mining industry to directly contrib ute to these developments. “I’ve spoken to members of the industry and in principle they agree.”

Sound policy

How a political candidate will tackle their new found responsibility and represent their locality it an extreme ly important factor which needs to be considered by voters. “I’m a big believer of policy and getting the underlying structure of policy right,” Johnsen explained.

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AM0413_018.pdf

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HUNTER VALLEY SPOTLIGHT

Pushing the limits Some of the world’s largest mining vehicles have been launched into the Hunter Valley.

he Hunter Valley has always been a testing ground for the mining industry. So when an Eastern European mining truck manufacturer wanted to make in-roads in to Australia, it saw the Hunter as the logical place. BelAZ has now launched its new 240 tonne and 360 tonne mining trucks into the Hunter Valley, and on to Australian mines for the first time. For a company that states one in three mining dump trucks around the world are a BelAZ, the lack of an Australian footprint is more than unusual, considering the current powerhouse the nation is within the global mining industry. However the Belarusian machinery manufacturer is partnering with Australian firm Australasian Pacific Engineering Group (APEG) and Sharps to bring its mining equipment into Australia and provide a strong service and support network. A D _ A MH A U A P R _ 1 4 1 2 0 1 3 - 0 3 - 2 5 T 0 9 : 1 5 : 2 9 +Speaking 1 1 : 0 0at the event, general director of BelAZ Petr Parkhomchyk These trucks are launched ahead of BelAZ’s release of the 500 tonne mining truck.

April 2013 AustralianMining

explained that despite operating for more than half a century the company has never had a real footprint in the Australian market and that it is finally stepping into the Australian region as “now is the right time”. APEG general manager Shane Halliwell explained that it purposely chose the trough in the mining cycle. “Some people say we are coming in at the wrong time, as the boom is slowing down, however this gives us more time to establish a stronger distribution, support, and logistics network so that we are in a better position when the industry strengthens again,” he said. APEG will have the sole distribution rights for the vehicles around Australia. The first two trucks to hit the market are the 240 tonne 75315 and 360 tonne 75603 trucks. Powered by MTU Detroit 4000 series or Cummins diesel engines and a choice of either a Siemens watercooled electric drive or General Electric drive, the 360 tonne version

www.miningaustralia.com.au

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HUNTER VALLEY SPOTLIGHT

uses a 20V 4000 series engine which provides 2800 kW of power while the smaller 240 tonne version will feature a 16V 4000 with 1864kW of power. Parkhomchyk told Australian Mining that the vehicles are built to Australian standards, and the factory had used Rio Tinto vehicle specs to ensure the vehicles were up to Australian mining safety standards. Sharps Heavy Equipment director, Graham Sharp, added that “these trucks are able to work in conditions from -50°C to more than 50°C, in some of the harshest mining conditions in the world”. Parkhomchyk added that although “it meets Rio Tinto specifications; it is not specified for Rio Tinto specifically”. By using these specifications BelAZ claims the dump trucks can The 75603 is built to start working within two to three weeks of being delivered. then be tailored to fit almost any mine site’s needs, and “within four However despite two vehicles However it will offer the vehicles to five months of receiving specifica- already delivered to the Hunter Val- for an ‘evaluation’, which the group tions a truck can roll off the produc- ley, BelAZ and APEG say they have was keen to state would not be a tion line”. no plans to actually sell them as of ‘trial’ of the vehicles. According to Halliwell the trucks yet. “We are considering letting the are designed “delivered to site and Halliwell told Australian Min- vehicles be used for an ‘evaluation’ working within two to three weeks ing “the two trucks we have now on site over two or three years, after max”. are not for sale until we have total they can buy the trucks, it is not a It uses a production line assem- support and infrastructure for more ‘trial’ as now they’ll work on site. bly, A after D _ Awhich M S Pthe I Atrucks P R _are 1 3driven 1 vehicles, 2 0 1 3we - 0expect 3 - 2 the 5 T spare 0 9 : parts 1 7 : 5 0 +“After 1 1 : 0we 0 have the personnel and then disassembled for transport. to arrive in early March”. and spare parts then we are look-

www.miningaustralia.com.au

ing to bring in two more 240 tonne trucks and three 360 tonne ones,” he added. The aftermarket servicing and repairs will be carried out by Sharps Heavy Equipment Repairs. “While the majority of the service and parts support will be provided from our Rutherford workshops in the Hunter Valley, I expect there will be flow on work to the Mackay and Dalby workshops also, especially as demand increases,” Sharp said. Despite being relatively small, the company plans to expand alongside APEG’s distribution of the new vehicles. The two new trucks were officially launched at MINExpo, in Las Vegas, last year. Weir Multiflo will do the nopressure no-low loss refuelling systems on the trucks, while the tyres will be supplied by Bridgestone for the larger vehicles The company added that it will unveil its new 500 tonne machine at a launch at its Belarusian factory in September, later this year. The new machine will have two independent axles, utilise an articulated frame, and will be powered by two diesel engines with Siemens AC drives.

AustralianMining April 2013

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HUNTER VALLEY SPOTLIGHT

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One rehabilitation project that promotes biodiversity is Rio Tinto subsidiary Coal and Allied’s use of the latest agricultural technology to plant a blend of native grass seeds over 80 hectares of rehabilitated mining land in the NSW Hunter Valley. The seed mixes are made up of the same level of species diversity found in the local ecological communities. The company says that despite challenges such as sourcing local native seeds and competing weeds, the team is committed to the long term native rehabilitation program and is hopeful the new techniques will result in the establishment of valuable native vegetation. Environmental services manager Andrew Speechly said results for new growth at the Hunter operations and Mount Thorley Warkworth mines are promising. “We have set ourselves ambitious diversity targets for understorey species,” he said. “Understorey species are an important component of healthy native

Native seeds are growing well in mine spoil mixed with compost.

vegetation communities but do not feature significantly in existing mine site rehabilitation. “The use of local native seed is necessary to return the land to as close as possible to its original state. “In order to meet the challenge of sourcing such a diverse range and large quantity of native seed, we are harvesting a selection of native seed from our Warkworth and Mount Pleasant mining leases and surrounding properties and mixing these with some sourced native species.” Tyrone Parrey of Parrey Pastoral Rehabilitation has been providing the company with the agricultural expertise to ensure ongoing success. “Soil preparation is the foundation to any successful rehabilitation programme and this is no different when using native species,” Parrey said. “We’ve worked for up to a year on soil preparation in places with outcomes including naturally aerated soil, re-established soil microbes and contoured land conducive to water infiltration. “These outcomes lay a healthy foundation for native plants to establish and grow.” Coal and Allied said that an encouraging outcome so far is that native seed is establishing well in a growth medium of mine spoil mixed with compost. Tim Berryman of Cumberland Plan Seed said the use of native seed in conjunction with spoil matter was a good outcome. “We have found that the native plants are establishing in the spoil material that has compost added to it mainly due to the lack of weed competition,” he said. “To be achieving these results in spoil material; that is plentiful in mine sites and doesn’t contain the weed seeds that can be present in topsoil is very encouraging.” www.miningaustralia.com.au

AD_AMBACMAR_12.pdf

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AM0413_022.pdf

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GRADUATES

Mining’s GRADUATING workforce

he skills shortages in Australia’s mining industry remains at unrelenting levels, and they’re expected to stay there for a while yet. The Minerals Council of Australia has predicted the need for an additional 86,000 mining professionals and skilled mine workers by 2020. But with all the griping over skills shortages, is there a different way to address mining’s gaping hole? While the remote location of mines poses a challenge when attempting to attract talent, it can be overcome with wage hikes. But as the likes of Gina Rinehart and the Queensland Resources Council [QRC] have stated the industry’s high wages are unsustainable and in the long term will render Australia’s mining sector uncompetitive by global standards. Exorbitant wages are unsustainable for both majors and juniors but for different reasons. The big players cannot continue to increase salaries AD_ A M A T year L F Eon B year, _ 1 3and . p many juniors cannot afford to fork

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AustralianMining

out such exorbitant salaries in the first place. So if throwing cash at the skills shortage is unsustainable, miners have to look at other ways of acquiring talent including training local talent, sponsoring university programs, and cross training existing workers. Xstrata is one of many mining houses that have jumped on board the graduate train, developing iPad and mobile apps to make the recruitment process more targeted, attractive and simpler for the next generation of professionals. Australian Mining spoke to Xstrata’s group human resources manager Jodie Hope about how the company is attacking graduate recruitment differently. Launched in early 2012, the Xstrata graduate app allows the company to provide real time communication to prospective applicants and has increased the amount of students the company has access to. “Students are accessing the web than d more f Pand a gmore e 1on their 1 0 / phones 0 1 / 1 3 , on their PCs, so the app has provided

The competitive search for the mining industry’s future leaders has gone global. Alex Heber reports.

a huge return, we can communicate updates our 1 1 : 4 7on A M intake timetable, and on vacation and graduate programs,” she said. Hope explained that the graduate app has enabled global communication and has significantly increased the quantity of candidates applying. “One of our key targets was to increase the quantity of candidates,” she said. “In terms of quantity there are only a certain amount of students graduating year on year, and it isn’t sufficient to meet the pipeline of all the tier one and tier two mining houses in Australia. “As a result we’re competing for quality; the apps are also targeting the global market, including South Africa and the UK.” Currently attracting quality mining graduates is highly competitive especially across engineering disciplines like mining, mechanical, electrical, metallurgical, chemical, and civil. About 80 per cent of Xstrata’s graduate intake is from the engineering discipline. “They [mining engineering graduate positions] are certainly difficult to fill,” Hope stated. Around 150 to 160 engineering graduates are hired each year by Xstrata, they receive a permanent position with the company which includes a two year development

program, and retention rates are between 90 to 95 per cent. The company said it is really important that graduates have some level of experience through undergraduate studies; Xstrata accepts around 300 students in its paid summer vacation program. “Around 50 per cent of the graduates we employ have already worked in our mining operations throughout their undergraduate studies,” Hope stated. This program allows Xstrata to assess the fit of the graduate within the business, and assists the graduates to make a decision as to whether Xstrata is a good match for them. Hope said when processing applications human resources looks for, amongst other qualities, a competitive academic record, strong work ethic and the demonstration of community involvement. The way Xstrata markets their graduate program is what sets the company apart from other mining house graduate schemes which Hope explains is a strategic move which will benefit the company down the track. “Graduates are without a doubt the future leaders of our business,” she said. “Graduates will be playing key managerial roles within the business certainly within that eight to ten year window beyond completing their graduate program.” www.miningaustralia.com.au

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INFRASTRUCTURE

Creating CAPACITY The use of larger cranes is helping to expand infrastructure capabilities.

A D _ A MR P C A P R _ 1 3

fficiency in the maintenance of infrastructure is taking significant steps forward with ideal equipment being brought in to produce results. Mine sites, processing facilities and bulk handling terminals are seeing the positive impact of the enhanced equipment, bringing costs down and reducing time required overall. A recent example is the use of larger capacity cranes with superior reach enabling them to be positioned further back and reach over greater structures with ease. Larger capacity cranes are in demand, and for the mining industry and bulk handling sector, the supply is now available. One is represented 2 0 1 3 - 0 3 - 2 8 T 0 9 : 2 by 7 : the 5 7 750 + 1 1tonne : 0 0 Liebherr LR 1750 crawler

crane in the fleet of Boom Logistics. It is the additional capacity that has recently been added to the 750 tonne crane which is attracting the attention of contractors involved in construction and maintenance projects. “We have installed a new back mast on our 750 tonne crawler, as shown in the main photo, which has increased lifting capacity significantly as well as further enhancing its ability to safely manage heavy lifts,” Brenden Mitchell, CEO of Boom Logistics, explained. “Specifically, this crane now has the ability to lift 400 tonnes at a radius of 20 metres,” he added Additional capabilities include 212 tonnes at a radius of 40 metres, and 78 tonnes at 80 metres. It is this

reach of 80 metres that can represent a major advantage on some sites. The back mast has broadened the scope of work this Boom crane can undertake; a ballast guide frame with infinitely variable changes and a ballast radius range from a minimum of 13 metres to a maximum of 20 metres has increased its suitability for many projects. With the new set-up the crane can perform a wider range of heavy lifts and, importantly, with lower ground bearing loadings. A swift turnaround time is aided by the cranes quick release technology. The crane can be fully configured in 24 hours. The 750 tonne crane, in its new configuration, is operating on site.

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AM.APR13.PG026.pdf

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INFRASTRUCTURE

From port to pit Australia’s poor infrastructure means logistics companies have to think differently.

s fuel costs rise and Australia’s aging and inadequate infrastructure puts pressure on the nation’s logistics and supply chains, transport companies are having to think smarter. Transport via road does open up choices but the high cost of diesel fuel bites into the bottom line. Rail is hampered in Australia by the tyranny of distance and inadequate infrastructure which means major areas of the nation can’t be reached. Oceanic shipping is more cost effective, but areas not serviced by ports are also at a disadvantage, whereas air freight alone discounts most of Australia as outside of major cities there just is not the infrastructure required. Simply put, if a logistics company is not prepared for the rigours of the Australian transport sector, they are at a disadvantage from the start. So how can a supply chain be set up to overcome these issues? One of the major ways around this is to pre-plan. Speaking to international shipping, transport, and freight forwarding company Rohlig, and its new Australian managing director Hany Amer, he told Australian Mining that for bulk materials transporters the current market can be a difficult time if they are not prepared to think ahead. Working within Australia presents a whole set of

A combination of transport methods, including air and sea freight, as well as trucking is the way forward, Amer says.

new problems compared to working internationally. Particularly from the demanding resources sector. Due to the remoteness of many operations transport and supply chain companies have to think differently if they want to successfully move the massive machinery to site in a reasonable time. While much of the equipment is assembled on site, it still requires serious logistical know how to get it there in the first place, moving it from port to site. If a freight forwarding company is only looking at one avenue of transport they

could find themselves coming up short. “We have three core areas – airfreight, sea freight, and project logistic,” he said. “As we cover these areas it allows us to look at alternative modes of transportation for different projects which best aligns to the operator’s needs, such as using costal freight between ports rather than trucking it from down the coast,” he told Australian Mining. He explained that preplanning is the major aspect of properly transporting and creating a supply chain in

Australia’s poor national infrastructure is a major challenge for many companies.

April 2013

AustralianMining

this current economic environment. “Through the use of different supply chain systems users can now pre-plan their purchases and delivery processes well ahead of time which better allows us to plan the supply chain method. “For instance, by using ‘air wave’, a combination of both air and sea, it can be taken into, say, Hong Kong – a major transport hub, by airfreight, then into Australia via seafreight, which can save an end user up to 40 per cent of the costs compared to solely using air freight,” Amer said. “Combination transportation and planning this into a schedule is the future, as rising costs mean we all have to be more flexible in the scope of what is provided. “Luckily as a smaller company, compared to the other global transportation companies, we’re able to be more nimble in our approach, as we’re more mindful of cost we have to take a more flexible and integrated approach in the solution.”

The way forward is to fix the infrastructure problem, but transport companies can not rely on the Government alone to solve the problem. “It must be a combined effort; although the government plays a key role private enterprise needs to be involved,” Amer said. “Rising costs and geographic distances are the key issues. “Operators are in the field so we have a finger on the pulse, know where the bottlenecks exist – it needs to be a collaborative approach. There needs to be more private public partnerships, as a lot more infrastructure investment needs to take place.” Amer’s key message is that “we’re investing in the supply chain even though it is a volatile climate,; we’re investing by increasing our resources on the ground, using our global expertise locally, and using high tech system with purchase and planning”. For logistics and material handling companies “it’s about being flexible and looking forward,” he added. www.miningaustralia.com.au

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MINE

SPEC VEHICLES

Mining equipment

AUCTIONED

To drive your dollar further

The auction floor is fast paced, profitable and lively. Alex Heber reports.

Call us on 13 27 27 today Budget has a wide range of mine-spec vehicles available in all of Australia’s major mining regions. To discuss your mine-spec ﬂeet requirements, please call your nearest Budget location on 13 27 27 today.

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April 2013

AustralianMining

ver $25 million worth of mining and industrial equipment and machinery was this month auctioned at Ritchie Bros. Victorian site. About 950 lots of heavy equipment were quickly turned over with 1,440 registered bidders participating in the unreserved auction. The auction company’s president Rob Mackay told Australian Mining that global output affects equipment sales. He said that following Europe’s slow down a lot of equipment has been exported to Australia for sale. “Equipment is very moveable, it finds its way to where the demand is,” he said. “Our business is active when there is change in the market place, so if there is an economic boom people are trading older equipment and buying new and if there’s a downturn people are trading surplus equipment.” Mackay explained that the strong Australian dollar has benefitted both buyers and sellers of mining equipment, with sellers experiencing strong sale results for used machinery and buyers taking advantage of the strong Australian dollar to pick up equipment overseas. “Equipment has always been more expensive in Australia in comparison

to elsewhere in the world,” he said. In 2010 and 2011 Ritchie Bros. experienced heightened activity from Australian machinery and equipment buyers overseas but a “shroud of uncertainty” hit the market in the second half of 2012. “With the activity going on down here [in Australia] they [miners and contractors] needed more equipment,” Mackay said. “The uncertainty in Australia last year with a number of announcements from the mining companies and the carbon tax introduction put a pause on Australian’s travelling abroad to buy equipment.” But going forward Mackay said equipment pricing trends will be affected by the number of new mines coming online, which in Australia isn’t as healthy a number as times gone by. He stated that the looming September election is also causing uncertainty within the heavy equipment and machinery market. “Similar to what happened in the US last year everybody is waiting for the election, wondering what is going to happen.” Demand for heavy duty equipment will also be affected by rising input costs and falling commodity prices. Looking ahead, Mackay said the company will widen its focus on Asian www.miningaustralia.com.au

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markets which are showing substantial opportunities for growth. “It’s an area with a lot of infrastructure growth and that’s where a lot of the demand for equipment is going to come from,” he said. Richie Bros. vice president Warwick Mackrell said yesterday’s auction attracted bidders from across the globe to the new 40-acre site located in Geelong. “We are very proud to welcome bidders from across Australia and around the world to our new facility in Geelong,” he said. “People registered from all around Australia as well as from overseas, including registered bidders from the United Kingdom, Singapore and the Netherlands,” added Finlay Massey, Ritchie Bros. regional sales manager. The new auction house was officially opened month by John Stewart, CEO of Victoria Civil Contractors Federation who said it is an important part of Australian industry. “Ritchie Bros. is a staple in our industry and very important to the development of our growing region,” he said. All of the 950 lots belonging to 115 consignors sold at the auction. One consignor was Tasmanian based contractor Hazell Bros., sold more than 25 heavy equipment items, including concrete trucks, wheel loaders and prime movers.

“The advantage of selling with Ritchie Bros. is that you not only sell to Victoria, or the local market, but you sell to all of Australia and beyond,” Robert Hazell, Director of Hazell Bros. said. “We recently finished a project and had some surplus equipment that we decided to sell. “Competition was strong and we had good results in the sale of our gear.” Australian Mining attended the auction which was a hive of activity, speaking to a number of buyers, they said what attracted them was the unreserved format. One successful bidder was Matthew Hoare, managing director of Geelong-based mining and earthmoving contractor Hoare Bros. “What I find incredible as a buyer is the ability that Ritchie Bros. gives me to find equipment that I need – but would otherwise need to source from overseas – at an auction that’s in the same location where my business is based,” Hoare said. The company conducts used mining and materials handling equipment auctions worldwide with over 130 unreserved public auctions scheduled for 2013. Australian Mining attended the auction as a guest of Ritchie Bros.

BUYING USED MINING EQUIPMENT: 4 PRO TIPS WHILE every piece of machinery is different, Ritchie Bros. regional sales manager Finlay Massey gave Australian Mining some advice on what to look for when buying second hand industrial machinery. 1. FIRST IMPRESSIONS COUNT Look at the aesthetic appearance of the machine, Massey explained there are a few questions to ask yourself when you conduct a visual inspection, including: • Is it in good condition, straight and tidy or is it rough, dirty and dinted? Do a four point walk around. • Are any panels damaged or has the machine been repainted? If so ask why. The way a machine looks gives a prospective buyer an insight into how it has been maintained and used. 2. LET’S GET PHYSICAL: TEST DRIVE THE EQUIPMENT Operating the equipment to see how it handles and bares weight is critical, so don’t forego a test drive, Massey explains. • Load the machine up, check its performance. • Drive the machine, move it backwards, forwards, lift the machine’s moving

parts and check the steering arms. • Inspect the under carriage for idler wear and check the position of the track adjuster. 3. GET UNDER THE HOOD To run efficiently and cost effectively a machine’s engine needs to be in prime condition. • Look at the engine smoke, is it blowing excessively or is the smoke coloured? Generally this can be a tell tale sign of engine issues. • Oil leaks can be checked by looking underneath or around the machine. If oil is leaking it can affect the transmission. • Modern machinery has computer logs which need to be analysed, getting an ECU reading enables buyers to check hour meters. Massey said up to 5000 hours is a good reading. 4. DO YOUR RESEARCH Machinery up time is critical for productivity and a company’s bottom line. Doing comprehensive research is important not only so you know you’re buying the right piece of equipment for the right job but also so you know it will work and you’re paying the right price.

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UNDERGROUND MINING

New ways to R

BORE

io Tinto’s latest tun This latest system was nel boring system officially launched earlier has begun trials at its this year at an underground Northparkes underground ceremony attended by both copper gold mine. Rio’s head of innovation, This new machine is the John McGagh, and its first of three new under group executive for technol ground excavation systems ogy and innovation, Preston that have been developed by Chiaro. McGagh stated that Rio as part of its wider Mine “this investment offers the of the Future program to im possibility for a significant prove both the construction improvement over conven and operation of its under tional drill and blast prac ground mines. tices; depending on rock Since 2010 the miner has and operating conditions, been trialling underground this system should provide excavation systems, using the capability to excavate at Aker Wirth’s tunnel borer more than double the rate of still providing the ability to system. conventional methods. mechanically install ground The system is 64 m long, “This is about The Mine support in parallel with tun has a maximum boring dia of the Future program going nel advance.” meter of six metres and has underground, as we prom Northparkes managing minimum tunnel dimensions ised we would at the start of director Stefanie Loader of five metres by five metres, 2010,” McGagh said. added that “it provides an and has been designed and “This system incorpor opportunity to introduce developed in a partnership ates continuous rock exca fundamentally safer proc between Rio and AD_ A MM I CAer A PWirth R _ 1 3 vation . p d f that P awill g e not1 dam 2 6 / 0esses 3 / into 1 3 , the 1underground 0 : 0 0 : 4 0 over the last four years. age new tunnel walls, while mining industry.

Rio is utilising new equipment at Northparkes to make underground mining safer. “Safety is a value and is integral to everything we do, this technology will not just help to make our opera tions more efficient, they’ll also be safer,” she added. The trial phase at Northparkes will run until around July. Rob Cunning ham, tunnel A M North A E D parkes T boring manager, said “the

next steps following the completion of the trial will be a comprehensive critique of the performance of the tunnel boring system”. It is controlled on board by a team of 12 people, and is supported by three under ground haul trucks. It is ex pected to excavate around 1.4 kilometres of tunnels.

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April 2013

AustralianMining

www.miningaustralia.com.au

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YOUR SUCCESS. OUR SUCCESS. Barminco recognise that our success is built on the success of our clients. With a commitment to underground mining excellence and the delivery of clear tangible value, we achieve results through our performance in safety and productivity. We underpin our projects with: • • • • •

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UNDERGROUND MINING

Q&A: Underground Mine Manager Australian Mining interviews the 2012 Prospect Award’s Mine Manager of the Year John Turner on life as an underground mine manager. MINING: What are your primary roles and responsibilities in your job? Give us a day in your working life.

to support them in their roles.

AUSTRALIAN

AM: Biggest career challenge? JT: Reducing Injury rates – I have seen a major improvement in safety over my time in the industry, but injury rates are still too high despite a lot of effort to identify and act on the causes.

JOHN TURNER: My primary

role is to oversee and manage the safe and efficient operation of what is a large and busy mine. The mine is managed in accordance with its management operating system which is Mandalong’s “Business Management Framework”. A typical day consists of starting early and geting up to date with the current state of operations and any issues that may require further actions by others or myself. From there it is attending review and planning meetings in line with the Business management Framework and working with members of the Mandalong’s Senior Management Team to ensure the mine is working as efficiently as possible.

AM: What training/education did you need for your job? JT: I studied Mining Engineering at The University of New South Wales, graduating with a BE (Mining) Hons. in 1986. Completed Mine Deputy, Undermanager and Mine Manager Certificates of Compentency. Completed a Diploma in Business Management as well as various other courses etc.

AM: What is your biggest frustration in your job?

Under Turner the mine has seen an increase in production and in safety at the site.

Commenced work as a miner with Newcom Collieries in 1986. In 1987 employed as a junior mining engineer with Newcom and worked at Cooranbong and Angus Place Collieries. Achieved Deputies and Undermanagers Certificates of Competency and commenced as an Undermanager in 1992. Worked as an Undermanager and then later as a Senior Mining Engineer and Techical Services Manager within Powercoal, achieving Mine Managers Certificate of Competency in 1997. Commenced first full

time role and a Mine Manager in 2000 and have managed Cooranbong, Myuna and Newstan Collieries prior to current position. Appointed as Mine Manager of Centennial Coal’s Mandalong Mine in 2006 and I am currently in that position. AM: What tools and/or software do you use on a daily basis? JT: Main tools are an office,

laptop and a phone – even when off site it is easy to keep up to date with activites at the mine. We use the Pulse System for the majori-

AM: How did you get to

where you are today? Give us a bullet point career path.

JT: Studied Mining Engineering at UNSW 1982 to 1985. During this time gained expereince in both underground and open cut coal mining during university vacations. Commenced work as a miner with Allied Constructions late in 1985.

April 2013 AustralianMining

ty of management tasks and, by necessity, know enough about the various Microsoft Office applications to keep out of trouble. But the most critical thing is having an office or meeting rooms to conduct the meetings etc that are critical to efficient planning and performance review. AM: What is the one thing

that you are most proud of in your professional life?

JT: I am lucky to have been the Mine Manager of Mandalong as it has grown from its original desgin capacity of 3.5MTPA to its current production levels of up to 5.5MTPA. The fact that we can achieve those levels of production from a mine that has been designed to minimise subsidence and other environmental impacts makes me very proud. AM: Biggest daily challenge? JT: The biggest daily chal-

Turner works as an underground coal mine manager.

lenge is keeping up with paperwork, emails etc whilst still ensuring I am spending enough time with the mine’s Senior Management Team

JT: My biggest frustration is trying to get everything done and still spend enough time underground to ensure that I really understand what is going on, too keep track of standards, understand opportunities for improvement etc. AM: What is the biggest challenge facing your business? JT: Our biggest challenge is to continue to increase productivity and decrease our unit costs. There have been major increases in a lot of our inputs costs due to competition for labour and equipment, new taxes etc and at the same time we are looking at significant reductions to coal price so we must reduce our cost per tonnes to ensure the mine generates an acceptable return on the major investement. AM: Is there anything else about your job you want Australia to know about? JT: Mandalong shows that high production levels can be achieved with a minimal impact to the environment, and I am very proud to be part of that achievement.

This article is part of Australian Mining’s new industry map, where we try to build a picture of the mining industry job by job. To be a part of it email us at editor@ miningaustralia.com.au. www.miningaustralia.com.au

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Explosive results Our Mine-Mate AC-3 ANFO Charger is a safe, reliable and cost effective solution for quality explosives charging of bulk ANFO in underground trackless mines. And it can be converted to become an Emulsion Loader in just one shift with two men. Most importantly you know you can rely on the safety and integrity of this specialist underground machine because it proudly wears the MacLean brand. • Complete drift coverage from single set-up • One or two person operation • Rapid tramming between work locations • Cost benefits in materials handling and in use of bulk explosives • Up to 3,000 lbs (1360 kg) ANFO carrying capacity

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UNDERGROUND MINING

Longwall low seams Longwall miners are allowing operators to access more low-to-mid seams.

hile the price of coal has fallen over the last year, demand is still strong from energy hungry nations such as China and India. As such the need for greater production and efficiencies from coal mines is needed. Weighing in at 61.2 tonnes and with a compact design specifically developed for low-to-mid seam operations, the Cat CM235 Continuous Miner incorporates all the robust features of the proven CM200 Series plus state-of-the-art enhancements. With 2 Ă&#x2014; 205 kW cutter-head motors, it is the most powerful continuous miner in its class. The CM235 has a wide operating range. Caterpillar recommends the CM235 for seam heights of 1092 to 2946 mm. Minimum clearance is 940 mm and maximum cutting height is 3251 mm. With total power of 9701 kW, a balanced weight A D _ Apower M E Nto EF E B _ratio, 1 3 . and pd loading rates of 14 to 29 tonnes per

April 2013

AustralianMining

The continuous miner can cut seams as low as 940 millimetres.

minute, the CM235 delivers supeAt the core of the CM235 is the rior productivity. heavy main frame for rigidity and The CM235 also features nimble stability. The frame uses steel plates maneuverability through its variable as thick as 75 mm, and main supfrequency drive (VFD) traction sys- port rails are 50-mm thick. Robust tem. Fast tramming speeds shorten pivot points with replaceable bushplace-change times, and high torque ings deliver extended service life, and across the entire speed range enhances massive boom legs ensure minimal maneuvering, sumping and turning deflection and enhance durability. crosscuts. The system also delivers The Machine Control Unit f high P aefficiency, g e 1 high 2 3 / reliability 0 1 / 1 3and , 9 (MCU) : 1 0 is A Mbased on a mine-duty durability, and simplified diagnostics. PLC and is designed to maximise

coal production and operator safety while minimising downtime. Traction motors are controlled by a microprocessor-based system, which minimises electrical connections and enhances reliability. The MCU provides data logging, fast diagnostics and advanced troubleshooting capabilities. The control system is proximity detection system ready. A radio remote control unit with self-diagnostics is available. Features include a graphic display that shows the condition of all motors and VFD components and the condition and position of hydraulic control valves and solenoids. Both standard and compact remotes are available to suit the operatorsâ&#x20AC;&#x2122; preferences. The CM235 is designed for easy maintenance access and simplified maintenance. Grease ports and fill points are centralised for easy access, and diagnostic ports and panels are located to speed the work of maintenance technicians. The split cutter head gear case simplifies repairs when needed.

www.miningaustralia.com.au

AD_AMBOAAPR_13

2013-03-20T10:49:31+11:00

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AM0413_036.pdf

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HYDRAULICS & PNEUMATICS

Keeping miners

MOVING

Mining hydraulic hose safety and integrity testing is cutting the risk of accidents, and costs.

or several years, BPI Tech- gone through during operation. nologies has been offering BPI was able to report on hose life NATA (National Association information for this client, who uses of Testing Authorities) accredited this information to assist with inspecservices to the Australian market, tion and replacement intervals and specialising in mining testing. BPI’s vital preventative maintenance data. lab is qualified to perform MDG41 BPI hydrostatically pressure-tested the Testing. assemblies at twice the working presFailure analysis testing can also be sure for a minute checking for leaks, conducted to examine safety factors, and destructive tested the assemblies for example the integrity of a hose as- to see if they still conform within sembly after a period of time in serv- MDG41 (4:1 factor of safety). ice. This provides mines with data to BPI also used their Borescope to assist with their hose maintenance. internally inspect the assemblies takMany companies perform their ing photos and recording video to own testing on equipment, but this look for any abnormal wear in the is often not an option, for example tube. Tests were able to give a thorin some cases of injury or warranty ough report on the assemblies which claims. Not only that, it takes guess- resulted in strongly positive feedback work out of the picture. As Michael from the mine on how to prolong Khamas from BPI told Australian service life and save costs for the Mining, “independent NATA test- mine in the future. ing by a third party is about peace of Apart from hydrostatic testing, mind, it’s about quality assurance”. BPI Technologies also performs root It may not sound especially sexy, cause analysis reports on hose asbut BPI’s work performing wear and semblies that have failed in-service, tear analysis on hose assemblies for a utilising state of the art equipment Bowen Basin client’s longwall miner and staff expertise, BPI can provide was a case where the company was a comprehensive report on failures. able to provide information to the All in all, BPI’s team does: NATA client that would save it significant test reports; cause analysis reports, amounts of money and trouble in the including internal NDT (non defuture. structive test) inspections (colour The client wanted to analyse the photos and video available); assessP G 0 3 6 _ A D _ A MC ME A P R _ 1 3 1 2 0 1 3 - 0 3 - 1 8 T “wear and tear” the assemblies had ment of conformity with specifica-

tions (standards and custom specifications); assistance with research and development; interpretation of results; and consultancy (engineering team available). Besides longwall mining, it also performs work in the manufacturing, oil and gas and OEM areas. BPI’s mining test capabilities include hydrostatic, failure and leakage pressure testing on valves, hoses, fittings, and pressure vessels. The company can also conduct impulse testing on hose assemblies and adaptors, and calibrate pressure gauges (up to 5000 Bar/72,500 PSI), transmitters, monometers and transducers. They can also calibrate vernier callipers and outside micrometers. Fast and accurate analysis of metal alloys is done with a mobile spectrometer (PMI) and can include light elements and coating analysis. On site salt spray testing by 1 4 : 1 5 : 4 8 + 1 1 : 0 0 BPI’s operators can simulate salt

and dry corrosion-affected environments, such as those in underground mining or ports. Universal hardness testing and durometer for metal and rubber specimens; abrasion testing of rubber and PVC hoses, pipes plates and manifolds for wear and tear out in the field, and internal NDT inspections conducted using a Borescope (colour photos and video available upon request) of machines, tanks and assemblies. According to the company, these tests reduce the cause of reoccurring equipment failures and assist in the groundwork for product improvement. BPI is used by many companies that are outsourcing products from low cost countries, testing them to be assured they meet Australian standards. BPI tests to many Australian (AS) and International (ISO) Standards but also performs custom testing to clients’ requirements.

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April 2013

AustralianMining

www.miningaustralia.com.au

AD_AMESSAPR_13

2013-03-25T09:37:19+11:00

Genie® Boom lifts can assist in constructing and maintaining your structural steel projects on the mine site.

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AM0413_038.pdf

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MINERALS PROCESSING

Igniting T

ransforming low grade lignite coal into a high energy, low emission product is what Australian company GTL Energy have realised. Teaming up with New Zealand Government-owned Solid Energy, South Australian-based GTL Energy has developed the technology to upgrade NZ’s coal sector. The development involves the conversion of low-grade coal into a higher-rank fuel by removing moisture from the coal and transforming it into briquettes which have an increased energy content, reduced emissions, improved handling and transportation characteristics, and increased market value. Already implemented in New Zealand’s first commercial coal upgrading plant, the companies have achieved sustained production runs. Further project development, plant operation and global technology deployment will be done under the newly formed joint venture company GTLE Development Ltd AD_ AM N OofRwhich D E C Solid _ 1 2 En. p ergy have a 20 per cent stake.

LIGNITE COAL An Australian company is transforming brown coal into a more sustainable product.

Discussing the joint venture, erate commercialisation and deploySolid Energy’s group manager coal ment of the technology makes a lot developments, Brett Gamble said of sense for both of us,” Gamble said. Solid Energy and GTL have worked “We are excited about the future closely over a number of years to of this proposed venture and believe develop the technology and they are the transformation of low rank high positive about future prospects. moisture coal into higher energy brid f “The P a gopportunity e 1 5 /to1combine 1 / 1 2our , 1 quettes : 4 4 has P Mpotential to create sigcollective expertise and assets to accel- nificant value.” GTL Energy’s chief executive Fred Schulte said this joint venture will not only allow the technology to be deployed globally but will also provide proof of technology. “The achievement of continuous, safe and reliable production at the New Zealand plant will provide the demonstration that is expected to support more widespread adoption.” Schulte is confident that challenging coal and capital markets will not hamper the project and technology’s success. “Despite challenging coal and capital markets, we have exciting projects which make sense regardless of market timing, and we look forward to bringing these into fruition through 2013,” he said. Solid Energy is commissioning its Mataura briquette plant in Quick Disconnect NZ’s Southland, which will produce lignite briquettes for the country’s Couplings South Island energy market using Phone: 03 9793 1066 email: hydraulics@norden.com.au GTL’s technology. www.norden.com.au Once fully up and running the Mataura plant will produce about • Mining • Defence 90,000 tonnes a year of low-moisture • Offshore Drilling • Industrial and high-energy briquettes from about • Laboratories • Agricultural 150,000 tonnes of lignite per year. • Instrumentation • Plastic Moulding The briquette product will even• Oil Wells • Rolling Stock tually be trialled in thermal export • Construction • Mobile Hydraulics coal markets, but will first be rolled out to South Island customers.

ITH W T EC N N O C EST B E TH

NORDEN HYDRAULIC CONNECTIONS

April 2013

AustralianMining

Inputs for the plant will come from Solid Energy’s nearby New Vale mine. The progression of the briquette project has not been without controversy; the now annual protest festival ‘Keep Coal in the Hole’ was established in the Southland township of Gore as environmentalists and locals united to oppose Solid Energy’s plans to mine lignite coal in the area. Solid Energy says there are 3 billion tonnes of lignite available in the NZ coalfields of Waimumu, Croydon and Mataura. Lignite is the lowest quality coal, halfway between peat and coal and is usually converted into briquettes, fertilizer, syngas and diesel. Southland is home to prime agricultural land, Queensland farmer come activist Rob McCreath at this year’s festival said that it was “hard to imagine a more productive farming area”. “It’s disgraceful that you have a government-owned company and they’re allowing it to dig up this beautiful farmland. That’s 100 per cent stupidity,” McCreath said. In an act of symbolic protest earlier this year, festival organisers dropped off a basket of locally-grown vegetables and mothballs to the lignite briquetting pilot plant near Mataura. “We’ve spent $29 million of taxpayers’ money on this lignite project already – and any more money spent would be a waste,” festival spokeswoman Rosemary Penwarden said. Solid Energy spokesman Bryn Somerville said lignite could be used to lower New Zealand’s dependence on imported energy, providing an affordable and reliable energy source. www.miningaustralia.com.au

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CONTRACT MINING, ENGINEERING & SERVICES

Mining contractors FEEL THE SQUEEZE

As miners attempt to slash costs, contractors are bearing the brunt. Vicky Validakis reports.

t’s been a tough few months for many in the mining game. With a volatile minerals market, a high Australian dollar and elevated production costs, many of the major players are looking at ways to cut costs and it seems they have contractors in their sights. Recent decisions by Xstrata, Peabody and Yan coal to dump contractors servicing their mines has many speculating the bid to cut costs will have a major impact on contractors serv icing the industry. Xstrata said it will take control of the Collinsville coal mine away from Thiess in 5 to 6 months as it pushes for the project to turn a profit. 40

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In a statement released by the company, Xstrata said Collinsville mine – in central QLD – has “suffered substantial financial losses,” on the back of lower coal prices, the high Australian dollar and high operational costs. Xstrata owns Collins ville mine, but has left its management to Thiess. By taking over the mine, Xstrata said it hoped to “re store the mine’s viability”. Xstrata said it would work closely with Thiess but that the mine required “a more comprehensive reor ganisation”. A spokesman for Xstrata told Australian Mining the company was not in a posi

tion to “talk in detail” about any changes at the mine, or whether job losses would oc cur, but did say that after a transition period is complet ed over the next six months, operational changes would be made clearer. The mine currently pro duces 4.5 million tonnes of product coal per annum and employs 300 Thiess staff and 160 contractors. Just a day after this an nouncement, mining giants Peabody and Yancoal an nounced a joint venture agreement to take control of Middlemount mine away from service contractor NRW. In a statement, the com panies stated that because

both were coal mine opera tors it was a “logical step for Middlemount Coal to become the operator of the Middlemount mine”. As part of the arrange ment NRW will provide on going maintenance services for the fleet. The statement went on to say that “all current NRW wages personnel employed to work at the Middlemount Mine will be transferred to Middlemount Coal and NRW staff will be invited to apply roles with Middle mount Coal”. The transition period is expected to be completed by mid2013. Under the terms of the previous mining services

contract the completion date was June 2016. As part of the new arrangements this has now been extended to 2017. As the mining boom slows, major projects and expansion plans are being put on the backburner as companies continue to reas sess their expenditure. In what many claim was the first sign mining contrac tors were to bear the brunt of expenditure slashing by resource companies, late last year Macmahon Holdings cut its earnings estimate in half for 201213, with CEO Nick Bowen resigning as a result. The company, which is 20 per cent owned by Leigh www.miningaustralia.com.au

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CONTRACT MINING, ENGINEERING & SERVICES

ton Holdings, blamed earth- industry make high margins, works productivities at its but I think even in a good Hope Downs 4 Rail Earth- year for us we would make works contract in Western a 4 per cent after-tax marAustralia, which was under gin,” he said. review, and ‘‘increased un“Some of the smaller certainty about the outlook niche players have been getfor new construction work ting very high margins. given recent market volatil“But if you look at ity’’ for the profit warning. Leighton, Downer and ourIt is believed that con- selves the margins are very tractors’ margins are being slim. We haven’t been reapsqueezed, and that the sup- ing all these benefits through ply and demand position the boom, it tends to be the contractors found them- owners that do that.” selves in two years ago has The CFMEU says conchanged dramatically. tract workers will be the one More competition for to suffer most from the cuts projects means contractors and predicts people in the no longer have the pull they Bowen Basin are going to used to and cannot afford to struggle to find work in the pick and choose where they region as more companies want to work in competing cut jobs. projects. After Ensham Resources New Macmahon Hold- announced last year that it ings chief executive Ross was cutting 400 jobs from Carroll said profit margins its open-cut coal mine near were getting tighter. Emerald, CMFEU spokes“We are already feeling man Steve Smyth says conit through some of our contracting companies would tract extensions – it’s some- find it hard to place workers thing we’re prepared for within the Bowen Basin. and we’ll have to manage,” “Companies like Goldhe Asaid. D _ A M V A L A P R _ 1 3 ings, . p dconsidering f P a g ewhere 1 their 2 6 / “Certain pockets of the other operations are limited,

they’re going to struggle,” he said. “On the back of the Gregory Mine shutting down, that itself, the company will struggle to fill the roles or ensure people that are laid off will have jobs to go to.” Acting Central Highlands Mayor Gail Nixon echoed his concern, saying flow-on effects from the job cuts are expected. “I know that a lot of people have invested in housing in Emerald and all the surrounding areas and they need to keep those payments up,” she said. “It will be difficult for them to find employment in this climate. “I just hope for these people on a personal level that they can find employment somewhere else and they’re not put to too much hardship in doing that. “It’s sad to hear that these people have been stood aside and the businesses will suffer, those contracting businesses, but there’s prob0ably 3 / other 1 3 , opportunities 1 0 : 0 4 : for 0 0 AM AEDT them too.” Contractors no longer have the pull they used to.

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AustralianMining

April 2013

AM0413_042.pdf

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CONTRACT MINING, ENGINEERING & SERVICES

Mining’s innovative opportunity Contractors and miners have to prepare for the future.

ustralia cannot rely on natural resources forever. Already the mining sec tor is experiencing a decline in ore grades, and seams are getting deeper and harder to mine. If the mining sector doesn’t innovate its process es it will lose its competitive advantage to the likes of Asia and Africa especially as these developing regions improve infrastructure and resolve governmental issues. Minerals Supplier Advo cate for the Federal Govern ment, Christian Larsen this month spoke at the Austra lian and New Zealand Li censing Executive Society [LESANZ] Resourcing the Future conference. 42

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AustralianMining

Larsen explained that as a result of falling commod ity prices and difficult min ing conditions the Austral ian mining sector would be a place of rapid innovation over the next five years. “If mining doesn’t cap ture and commercialise inno vation in the next five years capacity and capability will go overseas,” he said. Australia has gone through an incredible min ing boom, and in times of high commodity prices Larsen explains companies just want to increase the amount of ore on ships, say ing “get it out the door”. According to Larsen, during the boom companies got stuck in a cycle of “do the same, do it more”.

But a drop in commod ity prices, like the one expe rienced late in 2012 resulted in increased stress hitting the sector. The price boom had masked underlying trends in Australia. Larsen said the first was that from 2000 onwards

Poor IP management is putting Australia’s future growth at risk. miners productivity has fallen, the second was the ore grade decline and deep ening which means miners are digging up more mate rial to get the same output. “It hasn’t just been poor practice, it’s phys

ics, we’re mining more,” Larsen said. Increased mining activ ity pushes up miners’ energy costs. But an issue for one company is an opportunity for another; in particular innovation around cheaper and more reliable off grid power solutions will be fundamental going for ward, Larsen explained. Larsen stated that if Australia’s mining indus try doesn’t innovate to raise productivity levels and lower energy use the coun try’s position as a global mining leader will be lost. “Africa, Mongolia and Siberia still have high grade, shallow deposits and are slowly improving sovereign

risk and infrastructure,” he said. “To keep mining here [in Australia] we have no choice but to change and adopt.” The general consensus at the LESANZ event was that Australia’s resource sector was missing out because of poor IP management. “IP [in the resources sec tor] needs to be managed like any other important as set in the business,” Albert Ferraloro, WRAYS group head, management and stra tegic services said. Australian Mining attended the Resourcing the Future conference as a guest of commercialisation of innovation association LESANZ. www.miningaustralia.com.au

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AM0413_044.pdf

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POWER GENERATION & ELECTRICAL EQUIPMENT

PROTECTIVE enclosures A harsh working environment requires protection that is up to scratch. Isaac Leung investigates what’s needed for enclosures

A D _ A MS E MJ U L _ 1 2 . p d f

Pa ge

1 3 / 0 6 / 1 2 ,

2 : 2 3

ith the continued opportunities afforded by the mining industry in Australia, many electronics manufacturers are engineering products for use in mines. But Australian mines are tough environments for electronic products, and a properly built enclosure is essential. Intex specialises in enclosures, connectors and precision accessories for demanding environments. The company custom designs or modifies its hardware from off-the-shelf products. Australian Mining talked to Nick Cumming, director of Engineering at Intex Enclosures, about the enclosure requirements for Australian mines.

Ingress protection

The while underground mines demand enclosures which are intrinsically safe (Ex enclosures) for hazardous environments, which control flame paths and arcs to manage the risk of ignition, for most mines, however, the key demand is for ingress protection (IP rating), and for mechanisms to protect the electronics housed within the enclosure. “From an electronics point of view, [ingress protection] is about making sure that the enclosure will protect whatever’s put inside from 44

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AustralianMining

dust and water,” explained Cumming. Standard enclosures from Intex start at IP66 rating, which means they are waterproof from rain and hosing down, and will keep dust out. “Given the harsh environment we have in Australia with both water and dust, a lot of electronics and automation companies are looking for a higher rating than that,” said Cumming. The answer from Intex is IP68 enclosures, which can be safely immersed in water, and allow the electronics inside the survive floods and waves. “We recently did a project with IP68 enclosures going on the wharfs,” Cumming said. We had to do stress analysis on wave surges, how it would perform under 10m of seawater for 10 days, etc.” But while designing a self-contained enclosure to be water- and dust-proof may seem to be a simple matter, things can get complicated when the electronics systems inside require standard features like cabling for power and data, user interfaces, and screens. “If we have a box certified to IP66, the moment we drill a hole in it, we’ll have to deal with that hole, Continued on page 46 www.miningaustralia.com.au

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Continued from page 44

because it is no longer IP66,” Cum ming pointed out. “If we put a hole in there for cable management, we will always use similar material, and similar or greater IP rating. If we cut a hole in the box and put in cables and pow er, and it’s an IP68 box, we will put an IP68 stainless steel cable gland in there.” According to Cumming, there have been cases where customers have bought an enclosure, then drilled a hole and installed a cable gland, only to experience dust ingression and leaking. “It’s generally a lack of know ledge and maybe a subcontractor trying to get the job done quickly,” he said. “We try to work with the cus tomers and ask them what they are trying to do, the application, the en vironment, and what they need. If they need two cable entry holes, we put those in with the cable glands, so all they have to do is to feed the wire through and we know it’s go ing to be safe.” “It’s the same if we are putting touch screens, connectors, switches or RFID readers, we install that to make sure it’s all nicely sealed, the screens are IP66, and it meets the re quirements of the application.”

Materials

Enclosures can come in a range of materials, and can vary according to the application. In gold mines, for example, there may be a focus on corrosionresistive materials due to the harsh chemicals used in the ex A D _ A MC A V MA R _ 1 3 . p d traction process.

Electrical enclosures on mines face unique problems such as heat, corrosive materials, and excessive dust.

While polyglass, aluminium and composites may be used for junction boxes, the mainstay for industry in Australia is 316 stainless steel, prized for its hardwearing properties, and its ability to stand up to corrosion. “There are a lot of composites coming out at the moment but real istically nothing beats 316 stainless steel for Australian environments,” said Cumming.

Tailored mechanisms

Heat management and cooling is a big issue for electronics used in mines, and various enclosure mechanisms f a ge 1 1 2 / 0 2 / 1 3 , areP available to mitigate both heat

emitted by the electronics themselves, and from exposure to the sun. “We do a lot of kiosk and touch screen systems for automation and mines at the moment, for weighing trucks and management,” Cumming explained. “We [also] do a lot of work with big mining companies that have extremes of temperature.” After assessing the application and equipment requirements, Intex takes standard commercialoffthe shelf (COTS) enclosures and installs a skin over it with a baffle to cre ate a sun shade, reducing the radiant temperature from the sun. 3 : 4 3 : 5 7 PM AEDT To further protect the electron

ics from outside heat, the company installs insulation inside, and puts in filtered fans to vent hot air from the electronics, while preventing dust ingression. Of course, with a fan system in place, the enclosures cannot reach IP68, but IP66 is possible with fan shrouds that protect against dust and water. “You can still hose it down,” Cumming told Australian Mining. “It’s all about controlling where the water and dust goes and keeping it out.” In some cases, the baffles serve a dual function, providing both a

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April 2013

AustralianMining

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POWER GENERATION & ELECTRICAL EQUIPMENT

sun shade, and a sloped roof. Sloped roofs are a standard requirement at mines, since they prevent a build-up of dust, and also allow easy washdown. This is particularly important in coal mines, where a build-up of flammable dust can be a hazard.

Shock and interference

Besides heat, dust and water, vibration and electromagnetic interference are also common dangers on mine sites that can drastically shorten the life of electronics. “EMC (electromagnetic compatibility) is a huge consideration especially when you start to get into communications and data,” said Cummings. “We have special EMC o-rings that we can put into our enclosures, but we also look at it mechanically, as far as wall thickness of our enclosures and what gear we put next to each other to eliminate a lot of that.” And while many systems on mines are static systems, for electronics on plant equipment or vehicles, shockabsorbent mount systems are a must. These consist of a cradle or a sub-plate which sits on rubber shock mounts. Electronics manufacturers may also choose to mount their PCBs A D on _ AaMgear E N plate E A Pinside R _ 1 the 3 . enpd closure, and shock-mount the plate.

Enclosures must be built shockproof to protect them against the rigours of the mine site.

Optimising protection

vitally important to [the mines’] inThere is no one-size-fits-all solution frastructure, so we must protect that for electronic enclosures used in very carefully,” said Cumming. mines, and the importance of pro“There’s some smart engineertecting the equipment should not be ing coming out to solve some of the under-stated. unique problems we have in Aus“Generally, whatever is going it’s A really f Pa ge 1 2 2 / 0 3 / 1 3 , 1 tralia 2 : 0 mining, 2 : 4 7 and PM E D Tat the into the enclosure is high-value, and design level.”

By properly assessing the environment, potential issues, and the equipment requirements, companies like Intex can apply design and engineering expertise to their enclosures to ensure optimised protection of high-value equipment on the mine site.

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April 2013

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POWER GENERATION & ELECTRICAL EQUIPMENT

Off the grid solar solutions As power costs increase for remote mine sites, miners have to take a different approach. Alex Heber reports.

nergy hungry mining companies are increasingly looking for off-grid power solutions, in an effort to reduce the use of diesel generators, bring down electricity costs and minimise carbon footprints. Solar power solutions company Photon Energy told Australian Mining that solar power, particularly in remote locations is proving to be an attractive alternative which lowers electricity costs. “Solar power is a clean, sustainable, and cost effective way to produce power and has a stable and calculable cash flow,” Photon Energy’s Australian managing director Michael Gartner said. Gartner told Australian Mining that he is starting to see the emergence of an Some mines are turning to solar to supplement their off the grid power on site. “industry-wide realisation” when it comes to managing The new ruling puts die- consistently exposed to high Gartner explained that energy consumption, costs, sel fumes almost on par with levels of diesel fumes, partic- the cost of solar technolsupply, and risks. second hand smoke. ularly underground miners. ogy has in the last two years Most commonly diesel And while the risk of canIt’s on the same order of dropped significantly. is used for remote electricity cer is fairly small a science magnitude as passive smok“Today solar is now the generation on mine sites, a panel said raising the status ing,” Kurt Straif, director of cheapest form of power at practice that weighs heavily of diesel fumes to carcinogen the International Agency for the point of consumption,” on the environment, health, from a ‘probable carcinogen’ Research on Cancer (IARC), he said. bottom line and reputation. was an important move. said at the time. “This means self-conA recent report from the This WHO finding may “This could be another sumption or avoiding the World Health Organization have significant repercus- big push for countries to grid is now the most cost confirmed that diesel fumes sions throughout the mining clean up exhaust from their competitive way to provide D _ A MI E C A P R _ 1 3 . p d f Pa ge 1 1 1 / 0 3 / 1 3 , 1 0 : 0 7 : 0 8 AM AEDT doAcause cancer. industry, where workers are diesel engines.” solar power.”

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AustralianMining

Gartner said that in an off-grid situation the cost of diesel generation is significantly more expensive than electricity from a solar photovoltaic plant. With the refinement of solar technology, it can now be seamlessly integrated into either a grid, off-grid or hybrid system delivering both power reliability and cost savings. Discussing solar power reliability Gartner stated that the elimination of moving parts in a solar system means that in comparison to a diesel generator it requires less maintenance. “When combined with diesel or gas generators in a hybrid system, solar helps reduces the total cost per kWh while the whole system takes care of a 24 hour power supply,” he said. Solar power can also act as a booster for off grid power generation, run in parallel with gas or diesel generators to cover peak power requirements on site. He explained that one of the company’s strengths is its ability to integrate demand management, so the site’s power system can be optimised; one example of

www.miningaustralia.com.au

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optimisation is giving preference to solar throughout the day and diesel at night. “We can just as easily integrate a solar PV plant with existing infrastructure and do a thorough analysis of the existing generation equipment, and power demands to decide on how best to implement integration,” he said. However the initial financial outlay for a mine to install an off-the-grid solar system is still proving to be a barrier, especially when it comes to existing operations. “Financing is proving to be a significant barrier, especially for existing mines,” he said. To combat this Gartner said Photon Energy has compiled finance packages and power-purchase-agreeGalaxy Resources’ Mt Cattlin mine has already made the leap, using solar tracking solar panels on site. ment [PPA] solutions. A PPA is an agreement between the power producer quality of the supplied pow- not need to invest heavily in ers will be cautious and to and the power consumer er, up-time and performance building a local photovoltaic get over this barrier we are that sets all the conditions of guarantees and what hap- plant, but can buy electricity willing to put our money the power supply agreement pens in the case that either on the basis of the power- where our mouth is,” he exincluding price per kWh, the party would not meet their purchase-agreement. plained. minimum kWh toAbe These “The solar potential in AD_ AM CL A P Rsup_ 1 3 obligations. 1 2 0 1 3 -solutions 0 3 - 2 0 T 1 “We 0 : 4are 7 :aware 5 5 +that 1 1 with : 0 0 plied and purchased, the mean mining companies do any new technology custom- Australia is huge, not har-

nessing it with today’s technology is just purely wasteful.” In 2011 Australian Mining reported Galaxy Resources received an award for its solar tracking panels at its Mt Cattlin lithium mine. The miner won the Energy Generation and Distribution Award from the Sustainability Energy Association of Australia. The Mt Cattlin spodumene operation was the first mine in the country to have real time solar tracking panels installed to generate power on site. By having solar tracking, the panels are able to follow the sun in all directions, providing 15 per cent more power than a single axis system. Galaxy has 14 solar trackers and two wind turbines operating at the lithium mine, which create 226MWh per year of renewable energy and accounts for a sixth of the daily energy at the site. The system was designed by Swan Energy.

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AustralianMining

April 2013

AM0413_050.pdf

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GRANT THORNTON

OPTIMISM always prevails G

rant Thornton has released its latest International Mining Report, surveying 389 mining executives across the globe in an effort to discover their thoughts on industry trends. What it found is a heightened optimism surrounding business prospects right across the board. Behind this optimism is the expectation that commodity prices will continue to rise this year, with 54 per cent of those surveyed indicating to this effect. “It’s a challenging time for the sector,” Mark Zastre, global industry leader mining Canada, said. “But growth can return; the risk-return equation will change once investors develop a renewed enthusiasm for potential high returns that few other opportunities offer.” Aiding this growth are significant improvements to processes with automation and technology developments delivering efficiencies. Miners’ global expansion movements are also improving supply and assisting the discovery of new resources. However the role government plays in constraining growth and delaying projects across the globe heavily im-

pacts miners’ performance and investor confidence. While the report found that most miners are confident about the location of their assets, 42 per cent nominated increased government involvement as a constraint to growth. While Australia doesn’t have the same unpredictable level of sovereign risk as other mining nations around the world, it does have its own level of resource nationalism in the form of the mineral resources rent tax (MRRT) and the carbon tax. “Whether it’s through resource nationalism, special mining taxes or the gradual creep in taxation, governments are looking for a larger share of mining company profits,” Deloitte’s Queensland mining leader, Reuben Saayman, said. The level of bureaucracy, red tape and green tape involved in permitting or licensing procedures was also cited for limiting the growth of many miners. But it is not just the government that is causing issues. Mounting labour and energy costs have resulted in the likes of the Queensland Resources Council and mining magnate Gina Rinehart

Despite global turmoil and the slowing of the mining boom, Australian miners are still quietly confident about the industry’s future. Alex Heber reports. to call for wages to be made more realistic. The QRC said the sector’s current wages are too high and are unsustainable. “I know we’re all enjoying them at the moment but they are not sustainable,” QRC director of economics and infrastructure David Rynne said. According to the International Mining Report, 55 per cent of those surveyed expect labour costs to increase this year. Mining in Australia is only getting more expensive; costs are being driven up by the high cost of labour and compliance, and the introduction of the carbon and

Whilst investors have been shaken, miners’ confidence in their ore reserves and exploration remains.

April 2013

AustralianMining

mining taxes, as well as the states’ royalty hikes. The difference this year however is that commodity prices are not expected to support such high operating costs as they have in the past. While commodity prices remain well above the 2008 lows, they have shown a consistent pattern of decline in the last year. Mining is susceptible to these global economic ebbs and flows. Sluggish economies can keep risk-averse investors benched which means miners need to begin looking beyond usual equity funding options like shares in order to raise the capital required for projects. An increased level of government intervention is a particular concern for Australian miners, the report found. “Federal Government intervention is such a key issue here in Australia,” Grant Thornton national head of energy and resources, Simon Gray said. “The current government is doing little to support exploration companies, and it doesn’t really have the interests of junior miners on its agenda.” This is of concern because a reduction in exploration activities can potentially impact not only future discoveries but the viability of the entire industry.

Within the Australian cohort of executives surveyed, the report found that 84 per cent believe government should be doing more to increase exploration assistance and provide incentives for juniors. The response is particularly significant when two thirds said they were also planning to increase exploration expenditure. “I don’t think the industry has reached its peak potential…there are still vast areas of the world that are virtually unexplored. There is a lot of opportunity out there,” Gray said. Ore bodies are trending towards lower qualities and deeper depths, becoming harder and more costly to extract. Add to this rising input costs, extended licensing processes, and uncertain commodity prices and investors will go to ground, the company explains. But challenges can be overcome by developing and implementing strategies to adapt to rapidly changing local sentiment and regulatory environments. The report explains that in order to protect an organisation from these challenges a thorough understanding of risks affecting assets, operations and supply chains needs to be developed. www.miningaustralia.com.au

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AM0413_052.pdf

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8:02

CRANES & LIFTING

Maintaining MATURE crane stock Keeping cranes hoisting is key to ensuring increased productivity.

Port environments present an increased hazard to cranes, as the salt air, combined with ores, creating a corrosive atmosphere.

ea ports are the Australian China and India. However, ports if the port also happens to be used mining industryâ&#x20AC;&#x2122;s lifeline to the present a difficult environment for for bulk mining exports, with ores world. cranes. and dust creating an abrasive atmosAs an export focused nation the The corrosive salt air can quick- phere that further damages cranes majority of our mined material is ly rust and damage a lifting system if and lifting equipment. destined for overseas, in particular it is not up to the task. Konecranes is meeting the chalresource hungry nations such as This damage is only exacerbated lenges A D _ A MC R U A P R _ 1 3 1 2 0 1 3 - 0 3 - 1 5 T 1 1 : 1 9 : 3 5 + 1 of 1 :a 0salt 0 air environment and

a hard-working mature crane stock in fulfilling a maintenance agreement for cranes employed by Xstrata at Abbot Point Bulk Coal Terminal One near Bowen in Queensland. Continued on page 54

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AM0413_054.pdf

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CRANES & LIFTING

Continued from page 52

The work provided by Kone cranes includes quarterly inspections, remedial work and certifications on 27 overhead cranes of a number of makes and types at the terminal. The terminal is operated by Abbot Point BulkCoal, a subsidiary of Xstrata. Terminal One was recently expanded to a capacity of 50 million tonnes a year. The cranes being serviced at Abbot Point include shiploaders, transfer conveyors and other bulk handling equipment employed on loading coal produced by Xstrata, which is one of the world’s largest mining and metals companies, oper ating in more than 20 countries. Duncan Robertson, maintenance planner for Xstrata Abbot Point, said: “Every three months, Konecranes in spect our cranes and give us a defect report. We then organise repair of the defects, which can take up to a week with the Konecranes mainte nance crew on site.” Abbot Point is two hours’ drive from Townsville, so Konecranes technicians base themselves in nearby Bowen while completing the work. “They’ll also come out quickly from A D Townsville _ A M E N E if A Rwe P _have 1 3 . any pd breakdowns,” Robertson said.

The high demands of coal ports present a problem for crane manufacturers.

“There are particular mainte needing crane inspections and main nance challenges in our location, tenance.” which is on the ocean. The salty air Konecranes trained technicians can corrode the machinery. Also, and inspectors have the knowledge most of our cranes have been in place and tools available to take care of all for 20 plus years, so we can realisti crane needs, allowing companies to cally expect more maintenance to be concentrate on time, manpower and required.” production. He said that Konecranes was Konecranes maintenance services able to supply service parts for a va include compliance, preventive main riety of crane types and brands and tenance programs, predictive main knew how to work on them. tenance programs, reliabilitybased recommend maintenance f P“We a g ewould 1 1 1 / 0 3 / 1Kone 3 , 1 maintenance 0 : 0 6 : 1 6andA full M A EDT cranes to other companies like ours agreements.

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It was able to customise compli ance programs for lifting equipment to monitor, repair or replace items in accordance with local regulations and laws. By scheduling routine repairs, maintenance work and inspections, Konecranes helped to not only pre vent equipment safety issues, break downs and compliance violations, but prevent component failure. A primary aim is to prevent unneces sary production downtime saving resource companies like Xstrata time and money. After scheduling routine repairs and inspections to ensure compli ance and preventively maintain equipment, Konecranes analyses and prioritises current and future repair needs. By predicting these needs, companies can reduce unexpected re pairs, emergency repair costs and un budgeted equipment purchases. This allow companies to take predictive maintenance to the next level. By us ing innovative maintenance software systems, Konecranes is also able to track the history of equipment. This lets them establish breakdown and equipment failure patterns and al lows for the modification or upgrade of existing components, increasing production uptime and the overall life cycle of the crane.

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AM0413_056.pdf

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NORTHPARKES

The dish on NORTHPARKES mine T he industrialised world has copper to thank for its development, and the element’s long-term outlook remains undeniably convincing. According to BHP robust copper supply growth is expected to result in a more balanced market in the short term, but the longer term outlook suggests that on average 1 million tonnes of new supply will be required to keep up with demand. Meaning prices will need to remain high enough to stimulate the development of lower grade, higher cost supplies. Australian Mining recently visited Rio Tinto’s Northparkes underground copper and gold mine which is located about 25km from the New South Wales town of Parkes. Northparkes employs about 350 local people from the Parkes, Peak Hill and Forbes areas, only bringing in people from further afield when specialised expertise is required. There are also approximately 400 contractors on site. “We’re very proudly residential, and that’s part of what attracted me to Northparkes, it’s a place where I can work in a successful mine with a great future and I can go home every night, that’s what I love about Northparkes,” Stephanie Loader Northparkes managing director stated. Parkes Shire Council mayor Ken Keith, told Australian Mining that D _ A M M I Nmine APR _ 1 3 . pd theANorthparkes underpinned

April 2013

AustralianMining

Australian Mining’s visit to Rio Tinto’s Northparkes uncovered what’s happening at the underground mine. Alex Heber reports.

the local economy throughout the she was based previously: “Parkes has drought, and that the facility has de- other things like the Dish, farms and veloped a good relationship with the the transport hub, there are a lot of community. other things going on it’s not solely Deputy mayor of the Parkes mining, so when you end up in a minCouncil Alan Ward attributed the ing downturn, which does happen, the healthy relationship between North- town doesn’t fall apart because people parkes and the community to the resi- are laid off”. dential status of the mine and the fact that it is not a fly-in, fly-out operation. Open for business Keith explained that the location This month was Northparkes’ open of the mine means the 350 plus em- day, where everyone was welcome to ployees can live and participate in the go along and see for themselves what is going on onsite. The open day featured local area which attracts families. Northparkes’ ore processing tech- train, walking and bus tours around the nical superintendent Danica Clarke site so the public could learn about the agreed, saying Parkes is a really good copper mining process and the facility. community, particularly in compari- Loader explained that days like this are f sonPto a places g e like 1 Port 2 6 /Hedland 0 3 / 1where 3 , 9 extremely : 5 4 : 1important 2 A M forAteam E D Tmorale.

“It’s so important because it is the one day where everybody can bring their family and friends inside the gate, we have a lot of photos and ways to show people what we’re doing but this is how we can say ‘this is the mill that I work in every day, these are the pieces of machinery I operate, or work around’.” Loader said the open day also provides a reality for the public, cutting through perceptions of what the environment and people are like. “We have a huge diversity of people from gender and nationality perspectives, so if people do have any unhelpful myths about mining these events help to dispel them,” she said.

www.miningaustralia.com.au

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NORTHPARKES

Northparkes is currently Australia’s only operating underground block cave mine.

Northparkes’ location near the community was a major factor for Danica Clarke

“It is the one day where we open the gates and welcome everybody’s families, neighbours, in-laws, cousins; we really encourage everyone to bring their family out here, to show them what we’re doing.” Northparkes engineer Daniel Rawsthorne, said community open days like this one are a good opportunity for him to show his family what he does and for the community to “go beyond the gates” and learn more about the operations.

Northparkes’ ore bodies

Block cave mining

Northparkes is the only operational block caving mine in the country, with Rio’s Argyle diamond mine in Western Australia pinned to be utilising the technique shortly. Ward said that the block cave mining technique being used onsite is attracting people from around the world for training, including employees from Rio’s Mongolian Oyu Tolgoi mine. But the technique doesn’t come without its risks. In 1999 four men were killed whilst working underground at Northparkes as a result of an irregularity in the block caving method; a powerful AD AM A U S its 2 Away P R along _ 1 3 the . p gust of_air blasted access tunnel, causing rock-falls and

a truck to overturn, crushing the men. Since then a lot has been done to perfect the block caving technique which involves the controlled collapse of ore from under its own weight into specially-designed chutes for collection. The ore is then brought to the surface for processing. “Northparkes was the first mine in Australia to use block caving, starting 15 years ago. Since then we have refined the method and it is now in its third generation,” Loader said. “It has given us improvements in safety, productivity and a reduction in operating costs. Our expert knowledge and capability makes our mine an ideal location for a state-ofthe-art training complex.” Former Rio Tinto copper chief executive Andrew Harding has previously said that block caving is a safer technique for large scale mining. “Block cave mining is safer, more cost-effective and can be done on a much larger scale than traditional underground mining methods. It requires highly specialised skills, and this new centre will cement our leadership in developing and operating block cave mines as we move to the d next f P a g e 1of orebodies,” 1 1 / 0 3 / Hard1 3 , generation ing said.

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Northparkes has two ore bodies; E26 was a smaller but higher grade deposit and when completed delivered about $2 billion in value. The second ore body, E48 is larger but of lower ore grade, it is about 280 metres in diameter and about one kilometre deep. Currently about 6 million tonnes comes out from the underground mine every year. Noel Hugget, planning and scheduling superintendent at the Northparkes facility explained that the shaft is about 540 metres deep and there are two skip bins continuously travelling up and down the 60 metre high headframe. Each skip takes about 70 seconds to travel from bottom to top and carries about 16 tonnes of ore; almost 51 loads are completed per hour making approximately 18000 tonne of ore mined per day. The site itself is about 6000 hectares, of which only 1600 hectares is used by the mining lease and another 3000 hectares is used for cropping. On the mining block about 10 000 trees are planted in corridors 1 0 :year, 3 1 from : 0 7theAeast M edge A E DofT the ever mine to the west so wildlife can safely

move around the site, it also forms a wind break for the farmland.

Cost cuts

Following Rio’s recent $3 billion loss, the company’s new CEO Sam Walsh announced a radical cost cutting regime; Loader told Australian Mining it will affect everyone at Rio in some way. “It will affect us all across the board, the context for us is we are a good operation and we’re in a healthy financial state at the moment and we’re also in pretty good times. “Internally over the past couple of weeks we’ve been talking about what we need to do to prepare ourselves to be just as successful in five or ten years time,” she said. “Currently we’re looking at another 20 years mine life, our published mine life is 2024 and we’re working pretty hard to get that through to 2032 and beyond. “We’re in a great state and we’re a well run business.” Loader said that Northparkes has the resources and the knowhow to determine what needs to be done over the next two to three years to ensure the site receives future investment.

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AM.APR13.PG058.pdf

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AUSTRALIAN MINING ON SITE

AN INSIDE LOOK AT

Kalgoorlie’s newest gold mine Australian Mining gives you the low-down on one of Kalgoorlie’s newest gold mines. Andrew Duffy reports.

ver the past six months conditions in the mining industry have worsened, and companies are now more likely to close down operations rather than push expansions. Even at the best of times companies rarely build new mines, and if a new project does get off the ground it usually belongs to one of the multinational giants. But in this tightening market several bright spots still remain, and earlier this month junior KalNorth Gold Mines made its mark by officially opening the Lindsay gold mine near Kalgoorlie. The project represents a boost for the Kalgoorlie community and demonstrates that while times may be getting tougher, there’s still plenty on the horizon for our mining sector. 58

April 2013

AustralianMining

Australian Mining travelled to the Lindsay mine to witness the opening of the new project, and spoke with the company’s team about how they managed to get the development into production.

Quick and easy

The Lindsay mine sits atop a relatively normal gold deposit on the outskirts of Kalgoorlie, but the way KalNorth went about mining the resource is a little out of the ordinary. To keep costs to a minimum Lindsay is as bare bones as possible, with a tiny workforce, no major infrastructure, and no processing, crushing, or handling facilities. As it stands the operation is essentially one pit with ore and a waste stockpiles, and a road connecting the project

to the nearby Carosue Dam processing plant, owned by Saracen. Under an agreement inked late last year KalNorth hauls ore to Carosue and pays Saracen a fee to use its processing plant. KalNorth managing director John McKinstry told Australian Mining the deal meant Lindsay started production much faster than most other projects. “We’ve chosen a different path to a lot of other little companies,” he said. “A lot of the others will keep spending money to build up ore reserves. We’ve chosen to dive in and try to get a cash flow generated early so that we can grow by self-funding more exploration.” McKinstry said the arrangement meant that while

Lindsay sat atop a relatively small deposit, the company was still able to build a viable operation. He also said the plan kept shareholders happy, as the company did not have to return to investors to ask for more money. “There are a lot of good small deposits around the place that just never get mined because they’re not near enough to infrastructure,” he said. “The reason we’re able to do this is because we’re able to get this deal with Saracen.”

Less is more

Chief mining engineer Rodney Drown told Australian Mining a relatively low number of workers were needed for the early stages of Lindsay, and the bare bones ap-

proach applied to the management team as well. “We run a fairly small outfit in terms of management system,” he said. “We don’t need a lot of people here to run the actual mine we just need key people in key places.” But while the project runs on a small crew, Drown said all of the work on site had been awarded to Kalgoorlie locals. “We run contracts for everything,” he said. “We have a mining contractor, Kalgoorlie based. We have a haulage contractor, Kalgoorlie based. We use Saracen for the processing, which is Kalgoorlie based. “Our drill, blast and grade control are also Kalgoorlie based. We’ve tried to Continued on page 60 www.miningaustralia.com.au

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AM.APR13.PG060.pdf

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AUSTRALIAN MINING ON SITE

Continued from page 58

focus as much as possible on the local community.” Drown said KalNorth had decided against using a fly-in fly-out workforce because of the mine’s proximity to Kalgoorlie. He also said building a camp would be a multimillion dollar commitment that did not fit with the company’s strategy. “If I went to a FIFO model I’d need a 100-200 man camp sitting on site that is only 45 minutes from a city, which doesn’t make sense,” he said. “We’re close to a major city that has hospitals, schools, and major infrastructure, and was built around the mining industry anyway.”

The ore spotter

Because KalNorth has committed to mining a relatively

high grade from its deposit, the company has taken the unusual step of employing an ‘ore spotter’ to accompany excavators in the pit. The ore spotter is specially trained and stands alongside the excavator to make sure the operator only removes the highest quality ore. Drown told Australian Mining skilled operators could use their knowledge and experience to remove the right sections of the orebody, but because the company’s standards were so high the spotter needed to be present on every shift. “The pit is marked up by a survey initially but the ore spotter can go along and change the paint so it’s easier for the excavator driver to see,” he said. Because of the company’s commitment to grade control Drown said KalNorth only mined during the day,

with other operations completed on night shift. “We do not dig ore on night shift,” he said. “It’s far too hard to see the ore at night, particularly with our style of orebody. On this operation we mine during the day and do bulk waste at night.” The company is also dead serious about enforcing the no-mining rule at night. “At the end of every day there will be a white tape that goes down, it’s called no-dig tape,” Drown said. “All the contractors know what the white tape means and they do not cross that tape. If they do they’ll most likely be fired.”

owners to secure the rights for Lindsay. The landowners, who run an extensive cattle operation over an area that contains several mines, told Austral ian Mining while the industry “definitely left its mark” on the land, owners could usually come to an agreement with companies in the area. Landowners told Austra lian Mining one of the biggest impacts miners had on the land was the creation of roads, which opened access to their property and sometimes resulted in livestock or property theft. They also said there was no financial incentive in their move to give KalNorth access to the land.

The fine print

The details

Along with managing the details of the mining operation, KalNorth has inked a deal with the region’s land-

KalNorth said it expected to get around 40-45,000 ounces of gold out of the entire operation, which is expected

to run for around 18 to 24 months. By the end of it the company will have moved around 400,000 tonnes of dirt along with 7.5 million tonnes of waste. The ore is trucked 74km from Lindsay to Saracen, and a return trip takes around three hours, with the company aiming for around four trips a day. And while only one pit is operational at the moment, the company has approval to run with four pits, and aims to get a licence amendment to put a further two pits in place. “It’s initially open pit operations here first but there is a lot of underground potential to come on board,” Drown said. “Over the coming years we will continue to grow to become a mid-tier miner in our own right.”

KalNorth is taking a step back from 24 hour a day mining operations, only mining during the day and doing other operations such as bulk waste at night.

April 2013

AustralianMining

www.miningaustralia.com.au

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CY CMY

AM0413_062.pdf

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REPORTING & REGULATIONS

What the new ASX rules mean for miners After much debate and a controversial review, new rules for how miners report to the share market took effect this year. In this article TressCox Lawyers associate Rainbow Cheung breaks down the new changes and explains what’s new.

he new edition of the JORC Code became effective on 20 December 2012 and will be mandatory from 1 December 2013. The revised JORC Code compliments the recent changes to Chapter 5 of the ASX Listing Rules which are also intended to take effect on 1 December 2013. The changes impose an obligation on listed companies to report on a range of technical information. They are intended to ‘raise the bar’ on disclosure by mining and oil and gas companies.

What’s new for miners?

Reporting and compliance structures for explorers are set to change.

April 2013

AustralianMining

Previously, the ASX Listing Rules only required compliance with the JORC Code in relation to reports relating to exploration results or mineral resources or ore reserves. Compliance with the JORC Code is now required even in relation to public announcements relating to exploration targets and production targets. In order to encourage proper disclosure, the revised ASX Listing Rules require mining reports to address items in a checklist relating to the basis of reporting on an ‘if not, why not’ basis.

This includes information on sampling techniques, drilling techniques, quality and assay data and laboratory tests, and verification of sampling and assaying, and location of data points, data aggregation methods as well as detail on assumptions made (e.g. mining and metallurgical factors or assumptions, economic analysis and market assessments) and discussion of the relative accuracy of, or confidence in, estimates. Further, cautionary statements and explanation of assumptions are required where a production target is based in whole or in part on inferred mineral resources or on an exploration target. But these statements and explanations are not required if the production target is underpinned by ore reserves and/or measured mineral resources.

Drilling updates

Periodic reporting for each drilling programme in line with an entity’s continuous disclosure obligations is now only required where the information is expected to have a material effect on the price or value of securities. www.miningaustralia.com.au

AM0413_063.pdf

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REPORTING & REGULATIONS

What’s new for oil and gas?

Listed entities publicly reporting on oil and gas activities are now required to report in line with the Petroleum Resources Management System (“SPE-PRMS”). This includes: • detailed prescriptions as to how to define a project; • when particular terms such as “reserves” and “resources” may be used; and • how resources must be classified based on the maturity of a project and the prospects of discovery and development. Further the revised ASX Listing Rules now set out particular information that must be included when an entity first publicly reports reserves or resources. This includes details relating to: • material economic assumptions used to calculate estimates; • any operator interests in a project; • types of permits or licences held; • analytical procedures used to estimate the reserves or resources; • proposed extraction methods; • quantities to be recovered; • details of any unconventional resources; and • contingencies such as the development of technology.

Confidentiality concerns

There have been concerns raised about the need to disclose confidential or commercially sensitive information in addressing particular matters required under the revised ASX Listing Rules. One example is the disclosure of pricing in addressing material economic assumptions. In such circumstances, an entity may provide an explanation of the methodology used to determine the assumptions rather than actual figures.

Historical and foreign estimates

The use of non-JORC compliant historical and foreign estimates in public reports has been an issue for IPO companies with a foreign asset or where

Reporting on ore reserves impose new obligations on miners in an effort to “raise the bar” on disclosure.

a listed company needs to make disclosures relating to the acquisition of a foreign asset. In the past, the ASX has granted waivers in particular circumstances. Under the revised ASX Listing Rules, reporting of non-JORC compliant historical and foreign estimates of mineralisation is now allowed subject to disclosure of particular matters. This includes: • source and date of the estimates; • reliability by reference to the criteria in Table 1 of the JORC Code; • to the extent known, a summary of work programs on which the estimates are based; and • a summary of key assumptions, mining and processing parameters and methods used. A cautionary statement is required as well as a statement by a competent person as to the accuracy of information on whether the estimates use categories of mineralisation other than those defined in the

JORC Code, and if so, an explanation of the differences; and the evaluation and/or exploration work that needs to be completed to verify the estimates in accordance with the JORC Code. Further, where the entity has not subsequently verified and reported the estimates as mineral resources or ore reserves in accordance with the JORC Code, it must include each year in its annual report a statement on the progress made in evaluating the previously reported historical estimates or foreign estimates; and the status of any further evaluation and/or exploration work required to verify the historical estimates or foreign estimates as mineral resources or ore reserves in accordance with the JORC Code. Where 3 years have elapsed since the historical estimates or foreign estimates were initially reported, the entity must also explain why the estimates have not been verified and

reported as mineral resources or ore reserves in accordance with the JORC Code. Historical and foreign estimates may not be relied on in any economic analysis of the entity’s mineral resources or ore reserves holdings or as the basis of a production target.

Competent person

The disclosures required in relation to competent persons have changed slightly. A competent person’s consent is no longer required for subsequent references to exploration results, estimates of mineral resources or ore reserves. However, the original public report must be cross-referenced and the subsequent report must specify that the entity is not aware of any new information or data that materially affects the information included; and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

Annual reporting

The new ASX reporting rules for resources companies are set to be implemented on 1 December, later this year. www.miningaustralia.com.au

The revised ASX Listing Rules now also prescribe particular disclosures in a mining exploration entity’s annual report. This includes a reconciliation of the entity’s mineral resources and ore reserves holdings against the previous year. The ASX and JORC are encouraging early adoption of the new rules during the transition period before they become mandatory for ASX listed entities on 1 December later this year. AustralianMining

April 2013

AM0413_064.pdf

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LEGAL

THE MINING TAX

court challenge explained

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Pa ge

As an election looms, Fortescue has taken the Federal Government to court to fight the validity of the Mineral Resources Rent Tax. However it is not a cut1 and dry case. Michael Crommelin explains. 3 0 / 0 4 / 1 0 , : 3 0 PM

> LIFTING AND INSTALLATIONS IN MINING

ortescue Metals’ controversial challenge to the Federal Government’s mining tax began last month in the High Court. Legal counsel for Fortescue argue the tax, which is under pressure for raising just $126 million in its first six months of operation instead of $2 billion originally anticipated, is unconstitutional. But Professor of Law at the University of Melbourne, Michael Crommelin, explains that there is a possibility that the case may backfire on mining companies. Q: First what are the main arguments? A: Two major arguments have been put forward. The first is that the tax is an unconstitutional interference by the Commonwealth with important state functions. The other is really a design argument: that a particular feature of this tax breaches a provision of the Constitution that prohibits the Commonwealth, in the exercise of its taxation power, from discriminating among the states. Q: Would both these arguments need to be accepted to overturn the tax? A: No, either one would be sufficient for Fortescue to win, but the consequences that would flow from

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April 2013

AustralianMining

www.miningaustralia.com.au

AM0413_065.pdf

Page

27/03/13,

7:31

A D _ A ME S S A P R _ 1 3

2 0 1 3 - 0 3 - 2 5 T0 9 : 5 1 : 3 7 + 1 1 : 0 0

LEGAL

Fortescue Metals is arguing the mining tax is unconstitutional.

acceptance of each argument would differ. To understand this better, let’s look at the two arguments in turn. First, the argument over the design feature of the tax, which is in a sense the narrower argument. The Miner als Resource Rent Tax (MMRT) al lows mining companies to obtain a full credit against MRRT liability for state royalties that they’ve paid. The royalty regimes are different from state to state and much has been made in argument about the differences be tween the Western Australian and the Queensland royalty regimes – particu larly relevant in this case. The argument is that in allowing a full credit against MRRT liability for different state royalties the MRRT Act discriminates between states, be cause a mining company gets a bigger credit for royalties paid in Western Australia (where royalties are higher) than it would if the same operation were conducted in Queensland. There are two possible conse quences that could flow from accept ance of this argument. One is that this design feature is so central to the Act as a whole that the entire Act is unconstitutional. The other more lim ited consequence is that only the pro vision allowing companies to credit royalty payments against MRRT lia bility is unconstitutional, and the rest of the Act survives. In other words, companies would lose the credit al lowance but remain liable to pay the tax…in fact, more tax. Q: So this argument could backfire on them? A: Yes, it could, but that depends on whether the royalty credit provision is integral to the MRRT regime, or severable from it. Q: And the second argument? A: This is a wider argument based on

the Melbourne Corporation Case, which in 1947 established an im www.miningaustralia.com.au

portant principle that the Common wealth legislation can’t preclude the performance by the states of their constitutional functions within our federal system of government. The resources subject to MRRT, iron ore and coal, are the property of the states in which they are located and have been since prior to federation. Since the colonial era, the states have been responsible for the management of these resources. Fortescue Metals argues that the MRRT diminishes the capacity of the states to continue to manage these resources, contrary to the Melbourne Corporation princ iple. This argument is supported by the Attorneys General of Western Australia and Queensland, who have intervened in the case. If this argument were successful it would be difficult for the Common wealth to redesign the tax. It’s not a design problem; it’s a more fundamen tal problem about who has authority to do what within our federal system.l Q: So in essence the mining companies are betting that the constitutional arguments are strong enough to bring down the whole thing, not just the royalty credit arrangements, while allowing the tax to survive. A: Yes. The arguments are aimed at the entire MRRT regime, but those ar guments may fail completely, leaving the regime intact, or may succeed only in bringing down the royalty credit arrangements, leaving the companies exposed to increased MRRT liability.

Michael Crommelin 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. This piece originally appeared in full on The Conversation. To read more go to www.theconversation. edu.au AustralianMining

April 2013

AM0413_066.pdf

Page

27/03/13,

8:55

HARLEM SHAKE

Miners shown the door for SHAKING The latest social media craze has cost miners their jobs and split opinions. Vicky Validakis reports.

he story of a 30-second dance the apparent lack of PPE during the craze that cost 15 miners time the dance was performed and their jobs has captivated the recorded. mining community and split opinMany supported the move to fire ions down the middle. the workers. Early last month 15 mine work“I’m sorry but if you breach ers were sacked for doing the Har- safety guidelines in an underground lem Shake dance while working un- mine or any mine for that matter ex“I suppose some people might derground. pect to be punished and harshly for think I’m a clown and that I don’t The workers were on shift at Ag- it,” Corinda McNaughton said. take my job seriously but the reality new gold mine in Western Australia, “There’s a time and place for is that I work very hard,” he said. working for contractor Barminco. everything, doing a dance in an “Management respected me for The eight dancers, a worker who underground mine while on-duty my work ethic and I loved working recorded the stunt as well as several is probably not one of them,” Dan for Barminco.” onlookers were fired after the video Crawford added. Dixon said the dance was inthey posted on YouTube went viral. Others thought the move to sack tended to boost morale with workA dismissal letter sent to the the workers was heavy-handed. ers feeling anxious amid job security workers also stated the men were “Sad to see mining company with fears as Barminco sought to re-sign banned for life from working at any no sense of humour just a whole lot a major contract with Agnew. of Barminco’s projects. of money,” Amy Thomson said. “When someone suggested this Barminco said they saw the stunt “That’s just mean they should dance, it was the first time in a couas a safety issue and a breach of its have just got a warning,” Sara Wil- ple of months that the guys were “core values of safety, integrity and son thought. excited. excellence”. One of the miners sacked for “Between the hours of one and In a statement on their Facebook participating in the dance has said four in the morning, your body is page, Barminco said that safety was he was a dedicated employee known just telling you to sleep and you go a priority. for his strong work ethic. into this zone where you just start “Our teams are well aware of our Stephen Dixon said he was not a thinking about your family and your values and we will not make any ex- ‘clown’ that deserved to be sacked, friends. ception to this,” the company said. confirming he had hired a lawyer “You’ve got a lot of time to “Underground mining is inherent- to launch an unfair dismissal claim think and it can really get to you. ly a hazardous environment and re- that would argue it was harsh and “This dance gave us something quires the application of rigid rules.” unjust to sack the worker over the to smile about.” The incident has sparked furious 30-second dance routine. He said the men had discussed debate on Australian Mining’s FaceThe father of three said he had safety before the dance, making sure book page with many arguing that never heard of the dance craze be- to wear the necessary helmets, cap there is no room for safety breaches fore a colleague suggested it during lamps, glasses and portable oxygen while working on mine sites. a crib break at the mine. devices. A The D _ Adebate M A P centred T A P R around _ 1 3 the 1 2Dixon, 0 1 3 -a 28-year-old 0 3 - 1 8 Tservice 0 8 : crew 1 8 : 2 7 +He 1 1also : 0 added 0 that long-sleeved men’s decision to do the dance and worker said he was a hard-worker. shirts were only removed to prevent

the Barminco brand being seen. “If there’s a rockfall, a T-shirt is not going to save your life,” he said. According to the West Australian, safety has been an issue at the underground mine before, with three men treated in hospital last year after a sheet of construction metal fell on them. Since 2010, the mine has been issued with five improvement notices and a prohibition notice. A prohibition notice is issued when there is evidence of imminent danger and leads to a shutdown of operations or equipment. It is uncertain whether the prohibition notice related to the incident involving the metal sheet. A spokesperson from Department of Mines and Petroleum said the Harlem Shake dance was not being investigated. This is not the first time a social media craze has cost mine workers their jobs. Two workers were fired in 2011 for planking on top of a plant’s smokestacks, 60 metres off the ground at Santos in Whyalla. The stunt was deemed extremely dangerous by the company and the two were sacked immediately.

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April 2013

AustralianMining

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AD_FENBLAAPR_13

2013-03-25T10:07:39+11:00

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AM0413_068.pdf

Page

15/03/13,

9:03

PRODUCT SHOWCASE

Self-propelled electric scissor lifts Genie Australia has introduces a new range of self-propelled electric scissor lifts designed by Terex AWP for tightly packed high rise indoor spaces. The new 11.75m Genie GS-4047 full drive-height self-propelled electric scissor lift can lift goods weighing up to 350kg to a maximum working height of 13.70m and a platform height of 11.70m. David Greene, Regional Sales Manager, ViC & TAS explains that the GS-4047 features dual front-wheel drive and zero inside turning radius, which combined with a compact footprint of just 2.44m long and 1.19m wide stowed, make it ideal for manoeuvring around tight restrictive work Can lift up to 350kgs. environments. The Genie GS-4047 self-propelled electric scissor lift is a completely new model designed to offer a great combination of height and lifting capacity as well as powerful drive motors to maximise performance. The strength and rigidity of the unit will also help increase operator confidence when working from a narrow platform at full height. Key features of Genie GS-4047 self-propelled electric scissor lifts include a 91cm extension deck allows workers to utilise the maximum amount of platform workspace. The scissor lifts have a travel speed of 3.1 km/h and can handle a 25 per cent gradient to get up slopes and loading ramps. it is powered by a new 24V 300 Ah battery pack that offers more power for elevation and translation and allows a full 8-hour shift, while a new SmartLink control system offers a choice of two lift speeds based on the work environment and application. Joysticks are used for drive and steer as well as for ease of operation. inbuilt SmartLink facilitates improved troubleshooting with new grouped fault codes, easier battery charge detection and user-friendly machine adjustments. The scissor lifts have a 4-wheel braking system that combines dual rear spring, hydraulically-released brakes with dual front wheel hydraulic dynamic braking. its brakes are fully enclosed in steel casing for protection against worksite debris and machine wear. Heavy-duty steel swing-out service trays allow for access to all machine components for easy service and maintenance. in line with other Genie products, 90 per cent of its components are common across the entire Genie slab scissors family, simplifying service processes. • Genie Industries 1800 788 633 www.genieindustries.com.au

Hydraulic heavy vehicle jacks DuRAPAC have unveiled their new heavy vehicle hydraulic jacks – the Safe D Lock jacks. The manufacturer says that these jacks stand apart as they are built to provide ‘fail-safe’ operation. used extensively for heavy vehicles, these heavy Fail safe lifting. lift jacks are designed to be subjected to extreme, varied, and hazardous working conditions. According to the company the Safe D lock jack uses a patented oil-bathed internal locking mechanism that has been crated to automatically engage in the event of hydraulic failure. While the jack uses hydraulic pressure for raising and lowering the jack, during operation the jack is always mechanically engaged except during the retraction phase. • Absolute Equipment 07 3865 4006 www.durapac.com

April 2013

AustralianMining

Exploration drills WiTH safety a major priority in any mining operation, Sandvik have released its newest addition to its range of De700 series surface exploration drills. The De712 is based on the established De710 drill and includes all the necessary safety, health and environmental requirements for Ce certification. This rig has a balance of high design, high quality components and robust construction to minimise downtime and risk. it is based on the reliable De710, which has sold nearly 500 units across the globe. Other additional safety features include lever guards to reduce risk of accidental operation, mast access package comprising of fall arrest system and mast platform, and alarm for jack leg operation. Rig access has been improved for easier maintenance and extra guards have been fitted for safer work environment. The De712 features a more powerful engine with power rating of 142 kW (190 hp) at 2200 rpm. High quality pumps and motors in independent open loop circuits, and larger hydraulic valves and piping provide high energy efficiency and precise control of critical drilling functions. • Sandvik www.sandvik.com

Laser scanner partnership MAPTeK, a mining laser scanning technology and software company has signed an agreement with RDO integrated Controls (RDOiC), which will now to resell Maptek i-Site survey systems. RDOiC is RDO equipment Co.’s positioning technology division, supplying Scanning and mapping. equipment for mobile mapping and terrestrial scanning into various industries, including mining. Maptek and RDOiC started discussing the partnership shortly after Minexpo 2012, where Maptek was showcasing its i-Site 8400 and 8810 laser scanners. The survey systems are deployed in mining and other industrial operations worldwide. “This partnership with Maptek allows RDO integrated Controls to offer long range laser scanner systems to our customers,” said Adam Gilbertson, RDOiC General Manager-northern Region. “The i-Site laser scanning systems will fill a gap in our portfolio, making us a one-stop source for scanning, survey and machine control solutions for our customers.’ • Maptek www.maptek.com.au

Pit protection PROnAL has released pneumatic protection shields for workers operating in pits or trenches. The Blindeo shield is a pneumatic protection shield that is easily and quickly set up to guard against cave-ins in a wide variety of excavation work is being introduced to Australia by pneumatic actuation and isolation specialist Air Springs Supply. it is comprised of four cushions 2000m high and 1440MM wide, and is intended for use in secured excavations up to two metres deep. it is designed as an alternative to existing wooden and metallic shoring devices, which can be difficult and time-consuming to set up, as well as involving the transport of cumbersome material to remote sites. Made out of vulcanised rubber, the abrasion-resistant Blindeo cushions are equipped with handling straps, a quick air connector and a safety valve to avoid the risk of bursting. Advantages include high resistance construction with anti-burst design; re-usable, easy maintenance; and easy handling and setup, with each cushion weighing only 13kg. it is also flexible and foldable. Air volume required is 400/660 litres with a maximum pressure of 650 mbar. inflated by standard workplace compressors – or from compressed air/gas cylinders at remote locations – the standard product is complemented by an inflation line with safety valve for quick coupling and a venture for quicker deflation. • Air Supply 02 9807 4077 www.airsprings.com.au www.miningaustralia.com.au

AD_AMSCHAUG_12.pdf

Page

10/07/12,

1:45

Schenck decks out Australia’s best screens with our very own Screenex modular systems

weighing

feeding

screening

automation

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Do you prefer Australian made screens, decking or both? With Screenex now firmly embedded in the Schenck Process range of quality products, the partnership between vibrating screens and screening media has never been better. Manufactured to suit your requirements in our Melbourne and Perth factories, we know that our screens and media will stand tall in Australia’s demanding environments - it’s where we live and work too. Craig (pictured above) and our Screenex team have a combined 47 years experience in the Australian mining market.

AM0413_070.pdf

Page

26/03/13,

9:07

PRODUCT SHOWCASE

Swing axle telestacker conveyors

Heavy duty cleaning

EXAIR’s new 205 Litre Premium Heavy Duty Dry Vac System is a rugged, industrial duty vacuum SuPERIoR Industries, North America’s only cleaner that has been engineered combination manufacturer of conveyor systems to rapidly vacuum high volumes of and their related accessories, says its engineers Cuts transition time from transport to radial dry material. cut major setup time required to transition a 250 litre dry vacuum system. positions. Designed for tough industrial Swing Axle TeleStacker Conveyor from transport environments, the hardened alloy to radial positions. The new Swing Axle XTP construction resists premature wear. TeleStacker Conveyor shifts from road to radial mode in just five to ten Because this compressed air powered vacuum has no minutes. That is compared to 45 to 60 minutes for the original model, a motors or impellors to clog or wear out, it is ideal for the design still common to competitive swing axle telescopic conveyors. clean-up of abrasive materials like steel shot, garnet, Three key design features characterise the next generation Swing Axle XTP. metal chips, and sand, yet can also be used for general First, to engage the stacker’s power travel, chains and sprockets are purpose applications. replaced with a pre-installed t-handle mechanism. While the chain It is extremely quiet at 82 dBA (half the noise of and sprocket arrangement takes up to 30 minutes to install, requires electric vacs), making it suitable for a wide variety of maintenance and can be tricky to guard, the new power travel system takes environments. just seconds to engage and needs no maintenance or guarding. Surrounding air is kept clean by the 0.1 micron filter Secondly, the new axle design requires fewer link arms during both bag that traps particles when vacuuming dusty transport and operational modes. This modification again helps to reduce materials. setup time. It is covered by a five year warranty. Lastly, the addition of a pivoting walking beam allows for true wheel The 205 Litre Premium Heavy Duty Dry Vac System alignment during radial travel. comes complete with a 3m (10’) static resistant hose, 6m Poor alignment results in tire scuffing and can even cause a conveyor’s feed (20’) compressed air hose, shutoff valve, pressure gauge, point to shift out of position. heavy duty aluminium tools, tool holder, drum dolly and a First generation Swing Axle models can be retrofitted with the new Swing 205 Litre drum. Axle XTP. The company also builds models for highly portable applications, • Compressed Air Australia Pty Ltd extreme capacities, highly mobile terminals and applications that require 1300 787 688 tracked travel capabilities. info@caasafety.com.au • Superior Industries A D _ A MME R A P R _ 1 3 . p d f Pa ge 1 1 1 / 0 3 / 1 3 , 1 0 : 3 9 : www.caasafety.com.au 1 5 AM AEDT www.superior-ind.com

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April 2013

AustralianMining

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AM0413_071.pdf

Page

28/03/13,

2:31

PRODUCT SHOWCASE

Worm gear units

Planetary gears

NorD Drivesystems now offers a new range of worm gear units in a robust, one-piece UNICASe housing in five sizes with a maximum torque of 427 Nm. The new, larger output bearings allow users to choose increased shaft diameters than the previously available series. In addition, the large bearings ensure a much extended service life. An aluminum permanent mould casting process was optimised Max torque of 427Nm. for the SMI series, resulting in an especially smooth surface that prevents dirt build-up. Closed SMI worm gear versions are washdown-capable, and can therefore be easily cleaned along with other systems during plant cleaning processes. • Nord Drivesystems 03 9394 0500 www.nord.com

ApplIeD Motion products has released its new pG series of inexpensive planetary gears. Custom designed for use with its new line of brushless DC motors, the first model is available in 42 mm diameter with as many as three gear stages and a wide variety of reduction ratios ranging from 3.65:1 to 393:1. See the website for stocked standard ratios. For brushless DC motors. output torques ratings range from 3.0 to 15 N-m (425 to 2100 oz-in). planetary gear design offers higher speed, load and efficiency combined with low backlash in a compact package when compared with spur gears. our cost effective offering makes these the first choice for your most demanding applications. Input and output are co-axial and the shafts turn in the same direction. The new gearheads are suitable for clockwise and counter clockwise rotation, for alternating, continuous and cyclic operation. Unlike other gear types, their compact design provides ultimate power density and excellent torque transfer in the smallest space. • Applied Motion www.applied-motion.com

Digital pressure transmitters

Built from stainless steel.

AUToMATeD Control and STS have launched the new DTM digital pressure transmitter. The DTM is a reliable and compact unit with robust stainless steel assembly, incorporating a piezo-resistive measuring element. The DTM is suitable for all pressure ranges between 0 and 50 mbar and -1 and 1000 bar, with calibration available for all common pressure units. It is available in gauge, absolute or sealed gauge configurations. • Automated Control 03 4964 4022 A D _ A MS O U A P R _ 1 3 2 2 0 1 3 - 0 3 - 2 8 T0 9 : 3 2 : 1 8 www.automatedcontrol.com.au

Tough boots Howler has released its latest range of work boots. Designed for tradies and workers in the construction environment, the boots are built to be durable. The new range of Howler boots have been built with a double-density shock absorbing sole; double stitching for extra toughness; a wide-fit toecap, and are built to all international safety standards. The boots were launched in March. • Howler Boots 08 9209 3322 +www.howlerboots.com 1 1 : 0 0

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www.miningaustralia.com.au

AustralianMining

April 2013

AM0413_072.pdf

Page

27/03/13,

7:00

PRODUCT SHOWCASE

Custom motors

Data loggers PaCiFiC Sensor technologies has released its new data loggers, the Hitemp140-Pt-tSK. manufactured by madgetech, it is a kit that includes a Hitemp140-Pt data logger housed in a thermal shield. the combined features of the data loggers ±0.1°C accuracy and the properties of the durable thermal shield allow the device to be used for a wide range of validation applications. the built in 24” RtD probe can be bent or spiraled in any direction, making it easy to log temperatures in hard to reach places. this rugged data logger system can be placed Can be bent in any in and withstand temperatures from -200°C to 250°C, making it direction. ideal for use in autoclave validation, monitoring food processing and dishwasher testing. Pacific Sensor technologies Hitemp140-Pt-tSK data logger can be completely submerged and is built for applications that require extreme temperature monitoring. • Pacific Sensor Technology 1300 662720 www.pacificsensortech.com.au

Pittman is providing customised brushless motor design that delivers a high level of sealing against particulates and moisture as well as splashes from the corrosive Brushless customised motors. environment. a dynamic labyrinth seal provides protection from dust contamination, while allowing the motor to operate at high shaft speeds. a stainless steel cable gland and silicon cable sleeve are used for enhanced ingress protection. the 4-pole brushless motor can be optimised for 24 hour/day operation at speeds ranging from 500 RPm up to 15,000 RPm. it is constructed using high-grade, low-loss lamination steel to increase efficiency at high speeds and skewed rare-earth permanent magnets to minimise cogging at low speeds. the motor is electronically commutated using integrated hall-effect devices. Pittman also offers a wide range of standard brush and brushless DC motors that are available in a variety of frame sizes, torque and power ratings. Frame sizes range from 0.375-in (9.5mm) for miniature high-speed brushless DC DwyeR instruments has released its new series of insertion electromagnetic motors up to 5.25-in (133mm) for high-torque brushless flow sensors. the Series ieFS insertion electromagnetic Flow Sensor comes DC motors with integrated controllers. Output torque in brass or stainless steel allowing it to handle a wide range of pressures and ranges from 0.3 oz-in (0.002 nm) to 1824 oz-in (12.88 nm) temperatures as well as a variety of available saddle fittings to fit pipe sizes without a gear box. Both planetary and spur gearboxes are 3 to 24”. the ieFS-3X and ieFS-4X have isolation valves ion and optional available for most brushless DC motors, greatly increasing stainless steel construction for more corrosive or heavy duty environments. the the available torque output. Gear ratios up to 4732.5:1 are series ieFS is great for “dirty” water applications, minerals processing, or any possible. a wide variety of encoder types also are available. application where moving parts may be an issue. • Pittman Motors • Dwyer Instruments www.pittman-motors.com A D _ A MF L E F E B _ 1 3 . p d f P a g e 1 2 3 / 0 1 / 1 3Comes , 9in: brass 3 1 orA Mwww.dwyer-inst.com.au stainless steel BB-0402 LoosenMaterial_Layout 1 1/18/13 2:52 PM Page 1

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AM2968_AWARDS_Mar.pdf

Page

27/03/13,

11:50

NOMINATIONS NOW OPEN Nominations are now open for the 10th Annual Australian Mining Prospect Awards, to be held in Sydney on Thursday 31st October 2013. Fifteen awards will be up for grabs on the night, where we recognise and celebrate innovation and performance within the mining industry. All ďŹ nalists will receive free publicity in the Australian Mining magazine and two free tickets to the gala dinner where the winners will be announced.

FOR MORE INFORMATION VISIT www.miningaustralia.com.au/awards

NOMINATE ONLINE NOW WWW.MININGAUSTRALIA. COM.AU/AWARDS

PROUDLY SPONSORED BY

AM0413_074.pdf

Page

15/03/13,

7:35

10th Annual Australian Mining Prospect Awards In this issue we have a brief word from some of the sponsors about their companies and why they choose to sponsor the Prospect Awards. SEW-Eurodrive

MMD

SEW-Eurodrive is proud to be sponsoring the Coal Mine of the year award at the 2012 Australian Mining Prospect Awards. As a key supplier to the coal mining industry, we believe in quality and efficiency when it comes to drive technology. Supplying a range of industrial gear units, motors and drives in sizes in excess of 1MW, we deliver more than just products to heavy industry. A team of talented engineers develop effective and timely solutions based on customers’ motion requirements, which are backed by aftersales commissioning and product support that is second to none. We also understand that time is money, so units are delivered within a matter of weeks from our local assembly plants, rather than waiting months for items to be shipped from overseas. The coal mining industry is one of Australia’s strongest assets – as the world’s greatest exporter of coal, we can be thankful for an industry that has given us global recognition. SEW-Eurodrive takes great pride in sponsoring the coal mine of the year award, which we hope in turn, encourages the organization in and industry which has greatly supported our company over time. We hope that this award goes to a fitting recipient to provide them with the acknowledgment they deserve for making such a strong contribution to Australian industry. SEW-Eurodrive looks forward to further ongoing partnerships with all forms of mining, now and into the future.

Mining Machinery Developments (MMD) designs and manufactures mineral sizing (crushing) equipment and services to the mining, metallurgical, industrial minerals, alumina and other industries. The core products; Mineral Sizers (crushers) and Feeders offer a solution to problems such as variable ore properties, product requirements, site conditions and environmental issues. Founded in 1978, to design and manufacture equipment for the UK underground coal mining industry, today MMD size over 60 different minerals world wide, in many varied process industries. MMD Sizing equipment is available for surface or underground installations, stationary or mobile, and for climatic conditions ranging from arctic to tropical. The MMD Sizer range now includes, primary, secondary and tertiary Sizers for wet and dry processing of metallic and non-metallic minerals for mining, industrial minerals and quarrying industries. To complement the robust Twin Shaft Mineral Sizer, MMD has designed and developed a range of heavy duty Apron Plate Feeders, which convey unbroken material to the crushing plant. Standard widths available are 1500, 2000, 3000 and 4000mm on D4, D7, D9 and D11 Caterpillar sealed and lubricated tractor chain. The mobile and semi-mobile sizer systems developed by MMD are both high in capacity and compact in size when compared to the traditional technology in this field. The latest range of MMD Mobile Sizers have the ability to offer mine operators unprecedented levels of productivity, and therefore very low operating costs per tonne. These energy efficient electrically driven “Green Mining Solutions” are all designed to assist mining companies to achieve the double bottom line of being both economic and environmentally friendly. MMD is proud to be the long running sponsor of the Australian Mine of the Year award.

Atlas Copco For over 130 years Atlas Copco has supplied the world with mining equipment, making it one of the most experienced suppliers in the industry. Since setting up shop in Kalgoorlie in the 1950s, Atlas Copco has learned from the very specific and in many ways original Australian mining methods, which differ from the rest of the world. On top of higher demands on people and equipment, conditions faced in Australia (especially water) are very often tougher than most. One of Atlas Copco’s highest priorities is reducing people’s exposure to the drilling process and to the hostile environment often found in underground mines. With our first experience in automation over a quarter of a century ago, and having spent the past 12 years refining our common rig automation platform RCS, the performance of Atlas Copco’s production drill rigs, RCS control system, rock drills, Cable bolting rigs and innovative braking system (SAHR) have set the standard in the industry for productivity and safety. The Prospect Awards recognise personal and company achievements, and they recognise the new benchmarks these create within the industry. As a company and as individuals, Atlas Copco and its staff are pleased to support this event the Contract Miner of the Year and Hard Rock Mine of the Year awards because we appreciate how hard it is to be at the frontier of mining.

April 2013

AustralianMining

Be a leader in Australia’s mining industry and nominate today

www.miningaustralia.com.au

AM2966_AIMEX_FP.pdf

Page

25/03/13,

1:41

OFFICIAL MEDIA PARTNER OF

AUSTRALIAN MINING IS PROUD TO BE AN OFFICIAL MEDIA PARTNER OF THE LARGEST MINING EXHIBITION IN THE ASIA-PACIFIC REGION Australian Mining boasts penetration into 8,000 leading businesses including the top 1,300 mines, providing analytical feature driven content that has served and informed the information needs of senior and technical mine managers for well over 100 years.

GENERATE EXPOSURE

BEFOREYOUR COMPETITORS &

DRIVE TR AFFIC TO

YOUR STAND

B OOK YOUR PL AC E

TODAY! In the lead up to AIMEX 2013 Australian Mining will deliver the following

JULY

AIMEX 2013 preview

AUGUST

AIMEX 2013 edition

TO DISCUSS OUR ADVERTISING AND LEAD GENERATING SOLUTIONS, CALL US ON (02) 9422 2818 OR EMAIL US AT SALES@MININGAUSTRALIA.COM.AU

AM3160_ASC_2013.pdf

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THE ESSENTIAL

CONFERENCE

FOR MINE SITE SAFETY OFFICERS AND

MANAGERS

REGISTRATIONS

CLOSE SOON! Ensuring safe working conditions is the most critical factor in mining.

WEDNESDAY 1 MAY 2013 | STAMFORD PLAZA, BRISBANE Australian Mining has pulled together key industry experts to bring you a not to be missed full day safety conference. With a key emphasis on safety; experts and delegates are set to discuss the latest developments, government regulations, new technology, and practises that will ensure a safer future for all.

SPEAKERS INCLUDE: Hon. Andrew Cripps MP QLD Mining Minister Welcome and Keynote Address Paul Medcraft MineARC Systems Underground Mining Safety Dr Jennifer Bowers Australian Centre for Rural & Remote Mental Health Mental Health

Stewart Bell QLD Commissioner for Mine Safety and Health Fatigue: The Recently Introduced Guidelines Jock Cunningham Mine Automation Expert, CSIRO Technology Developments in Mine Safety

Don’t miss your opportunity to partake in the future of safety in Australia’s mining industry.

Jeff Samuels, Managing Director, QMW Personal Protection – Vehicle/Machinery Safety Helen Wood, Managing Director, TMS Consulting Maintaining Safety in FIFO and DIDO Environments

PROUDLY SPONSORED BY

Book your seats today For more information or to register

please visit www.miningaustralia.com.au/conference or Contact us on 02 9422 2896

AM0413_077.pdf

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MINING JOBS

To advertise a new job contact Hussein Azzan at 02 9422 2851

To see the latest jobs available visit www.miningaustralia.com.au, which is updated daily. CHIEF ENGINEER, MINE, Cigar Lake Project, SK Working with the Cigar Lake team, you will be responsible for providing mine engineering expertise and leadership to an underground uranium mine site. Core duties include managing and supervising the mine engineering department, which consists of approximately 20 technical personnel responsible for mine planning and scheduling, ventilation, ground freezing, ground control, surveying and other activities to support underground construction in a geo-technically challenging environment. With safety as your core value, you will focus on high quality results and provide direction and guidance to ensure that planning is in place to achieve the successful transition from construction to production. EDUCATION AND QUALIFICATIONS Requirements of the position: • Bachelor degree in mine engineering • At least 10 years of progressive mine engineering and supervisory experience, preferably with a background in both underground construction and production • Equivalent combination of education and work experience will be considered • You must be eligible for registration with the Association of Professional Engineers and Geoscientists of Saskatchewan (APEGS) • Strong technical writing and communication skills • Work a rotational schedule and commute to site by aircraft We offer: • Competitive pay • Superior benefits • Employee share ownership plan for all employees • Live Better wellness program Cameco values diversity. In keeping with this principle and our employment equity goals, we particularly encourage qualified applicants from the designated equity groups to apply. To explore this career opportunity, please visit www.cameco. A D _ A MA F C F E B _ 1 3 . p d f Pa ge com/careers. Please quote competition number CIG12-048.

www.miningaustralia.com.au

SENIOR HR ADvISOR We are seeking an experienced Senior HR Advisor to work within our Newcastle office. The main function of your role will be to provide advice and to support all key activities of Regional HR Advisors/Managers and Line Managers within New South Wales and New Zealand, enabling customers to enhance key workplace relations and productivity. To ensure your success, you will have the ability to provide consistent functional excellence in facilitating the achievement of Orica’s business goals and HR strategy through execution of expert HR, ER and IR coaching, advice and support to all regional functions. Effective management of a number of key HR processes and reporting requirements for the business on an annual and ad hoc basis as well as managing output of the HR support function and the day to day relationship with the corporate HR Services team will also be critical. The Criteria • Strong knowledge of industrial environment and prior experience providing guidance within a unionised workforce • Strong communication, negotiation, collaboration and influencing skills • Working knowledge of relevant employment legislation, law and awards • Change management skills • Strong administration and organisation skills • Strong customer service skills • Ability to work autonomously and as a virtual team What we offer To ensure that we attract and retain the best people we offer: • The opportunities • Facilities and environment associated with working in an international organisation • Career paths that are totally flexible allowing you to specialise or become a generalist • A diverse workplace where your unique abilities and talents will be recognised and encouraged and: initiatives 1• Training 1 0 /programs, 0 1 / 1opportunities 3 , 1 1 3 3 AtoMensure your continued growth

• Competitive salary packages Please apply via the link or for a confidential discussion contact Kylie Williams on 13004ORICA HUMAN RESOURCES ADvISOR An exciting opportunity exists for an experienced Human Resources Advisor based at our Dugald Mine. Reporting to the Human Resources Superintendent, you will develop and implement human resource strategies and human resources processes and systems for Dugald River Mine that improves the involvement, commitment and performance of its employees to support the overall Company direction. As a successful incumbent, you will support and advice to ensure that managers, superintendents and supervisors are capable of performing their ‘people’ responsibilities and that all employees are informed of their rights and obligations under legislation and MMG’s human resource policies. Important to the role will be your ability to think strategically and express ideas, providing accurate and timely advice on range of issues such as HR policies and procedures, employment legislation, recruitment, performance and workforce planning. Ideally you will have well developed time and project management skills with an outcome focussed attitude. You will have demonstrated experience in a similar role within a mining or heavy engineering area with tertiary qualification in HR/ER/IR or business related field. To further your success to the role, you will have a high level communication, interpersonal, influencing and negotiation skills, successfully managing cross cultural relationships, driving performance and a strong consultative approach. This role will operate on an 8/6 FIFO roster from Townsville or Brisbane. To start your career journey with MMG, submit your application online in either Word (.doc) or Adobe (.pdf) format before the closing date of Friday, 1st March, 2013 by clicking on the ‘Apply’ button or visiting the job search page of our website http://careers.mmg.com/jobSearch. asp?stp=AW&sLanguage=en

AustralianMining

April 2013

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EVENTS

Conferences, seminars & workshops Event submissions can be emailed to editor@miningaustralia.com.au Practical Belt Conveying

Stamford Hotel, Brisbane

18 March-7 November

Hot on the heels of its successful conference in Perth, Australian Mining will be holding its second mining safety conference in Brisbane. The event aims to bring together mine safety professionals who focus not only on site OH&S but also general work health and wellbeing. It covers everything from safety in underground mining, automation safety, safe practices and technology in drilling and blasting, to issues affecting worker mental health. To find out more about the event and how you can be a part of it, contact us today. • Australian Mining 02 9422 2352 editor@miningaustralia.com.au www.miningaustralia.com.au

you, who are briefed on their needs bring together decision makers from and challenges and already have across Australia and investors from the background information. The neighbouring regions to meet with Four day training course with a carefully scheduled one-on-one top solution providers committed to strong practical bias for engineers meetings go straight to the point; maintaining Australia’s competitive involved with the design or After the summit, the document position in mining. maintenance of high capacity belt is an incredibly powerful tool for The NG Mining Australia Summit conveyor systems for the mining or our delegation: something they will provide a vital means of related industries. keep referring to as they seek to communication and an ideal Over 1200 engineers have now implement the game-changing framework for new business attended one of these courses. discussions. relationships to flourish. The event is typically held with a • GDS International Attending this event means: small class size, while a 300 page www.ngminingau.com 1. Competitive advantage – manual is provided. Delegates take away benchmarking The event will be held on: Austmine 2013 information, comparing their 18-21 March, at the Hotel Grand 20-23 May services, the performance of their Chancellor, Brisbane Perth Convention Centre, existing solution providers and they 19-22 August, at the Hotel Grand benchmark their challenges with Chancellor, Brisbane Perth their peers; 4-7 November, at the Hotel Grand In 2013, Austmine and Mining 2. Managing KPIs – The delegates Chancellor, Brisbane IQ will be partnering to produce return to their offices having • Tech Training the Austmine 2013 International identified how to manage their KPIs ann.odonovan@techtraining. Conference & Exhibition. more effectively. They learn from com.au The event will be hosted in Perth, NG Mining Summit industry leaders who can inspire www.techtraining.com.au on the 20 – 23 May and will draw Australia 2013 ideas for their own organisation; together an audience of international 3. Time efficiency – In just 2 days mining executives. Australian Mining Safety 7-9 May they get exposed to solutions and The theme for 2013 is Australian Conference Rendevous Hotel, Perth A D _ A MT R E 2 F E B _ 1 2 . p d f Pa ge 1 1 0 / 0 1 / 1 2 , 1 1 : 5 1 AM services from providers such as Technology: Inspiring Global Mining The NG1/5/12 Mining Australia Summit 1 May EmulsionPlant122x210Ad.pdf 8:26:42 PM will

Innovation. Specific topics that will be explored include emerging mining markets, technological innovations and operational excellence, creating global supply chains, and workforce safety. The Austmine 2013 International Conference and Exhibition will showcase Australia’s leading mining equipment, technology and service providers. The exhibition hall will give you direct access to leaders in the field of mining technology that can assist you in your own mining operations. The conference will feature an expert international speaker panel, including presentations delivered by Rio Tinto’s Manager of Innovation – John McGagh, and international representative Dr. Shane Hodgson, Vice President and Group Head of Organisational Effectiveness, Gold Fields. • Austmine 02 9229 1000 austmine2013@iqpc.com.au www.austmine2013.com

TREAD EMULSION PLANTS

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April 2013

AustralianMining

BRISBANE OFFICE: TREAD Australia Andre Fouche Business Manager – Australia & Asia afouche@TREADcorp.com

WORLD HEADQUARTERS: TREAD Corporation 176 EastPark Drive Roanoke, VA 24019 USA 540-982-6881 www.miningaustralia.com.au

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A Member of The Linde Group

Introducing MEMOSSTM Nitrogen generation plants based on the membrane process

Our ECOVAR® supply systems service offer, which encompasses the supply of industrial gases with on-site plants, now includes the MEMOSSTM product line of membrane nitrogen generators. The plants are built around proven, stateof-the-art components providing ma[imum cost efľciency and reliability. An integrated back-up supply system ensures a continuous gas supply around the clock. MEMOSSTM plants are designed for those who require nitrogen volumes from 50 m3/h up to more than 1,000 m3/h at purities ranging from 95% up to 99.5% or even higher, at a pressure of up to 13 bar. With additional compression, higher pressures may be obtained. The MEMOSSTM plants are distinguished through the high degree of packaging. The units are mounted on skids, in cabinets and can be placed in containers. The compact and standard sizes facilitate transport and installation. The plants are suitable for indoor and outdoor installation. A unit will consist of an air compressor, ľlters, membrane cartridges, piping, valves and the control system. The MEMOSSTM plants use hollow ľbre membranes that are formed into bundles and ľ[ed between tube sheets in a cylindrical cartridge. Gases like oxygen and nitrogen are separated in the cartridge because they have different permeation rates across the membrane. The ability of a gas to permeate is called its Ĭpermeabilityĭ. Selectivity is deľned as the ratio permeability of the oxygen divided by the permeability of nitrogen. The MEMOSSTM membrane units use cartridges which enable them to reach one of the best selectivities on the marketplace. The process can be described as follows: Compressed dry air enters the cartridge on one end. Oxygen, carbon dioxide and rest humidity permeate faster than nitrogen

through the membrane wall, thus enabling a side venting of those gases to the atmosphere. On the other cartridge end, the nitrogen exits and, depending upon the application, leaves the unit direct to your process or to a suitably-dimensioned buffer tank. The output of a membrane cartridge is dependent upon three factors: the pressure and temperature of the feed air and the required purity level of the nitrogen. For instance, if temperature increases, then selectivity decreases but capacity increases. If pressure increases, selectivity will increase. Pressure and temperature are adapted to the product speciľcation by designing the air compressor and the preheater. Capacities can be changed by changing the number of cartridges in the unit. Units up to 20 cartridges are available. The high degree of modularisation and standardisation of the MEMOSSTM plants, together with the back-up system, reassures the best possible reliability and guarantees uninterrupted supply of product. The MEMOSSTM plants are based on many years of experience and are equipped with state-of-the-art technology and built with components of the highest quality. Additionally, the MEMOSSTM plants are equipped with PLC and modem for remote monitoring and control and supported through our extensive BOC Customer Engineering Services. The total ECOVAR® system is also kept under 24 hour surveillance. To ľnd out more, please contact John Gwiazda, Market Manager - Metals & Glass on john.gwiazda@boc.com

BOC Limited Riverside Corporate Park, 10 Julius Avenue, North Ryde, NSW 2113 Australia contact@boc.com BOC is a trading name of BOC Limited, a Member of The Linde Group. © BOC Limited 2013

MP13-0874-2|MA|AM|0413

At BOC, we understand the knowledge, expertise and process needed to succeed in the mining and energy industries, and we’re proud to play an important role.