Australian Mining February 2013 by Prime Creative Media

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AM.FEB13.PG003.pdf

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COMMENT

Mining Australian

Copyright Reed Business Information Published 12 issues a year by Reed Business Information (ABN 80 132 719 861) Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Australia Tel: (02) 9422 2999 Fax: (02) 9422 2966 Associate Publisher – Martin Sinclair Email: martin.sinclair@reedbusiness.com.au Editor – Cole Latimer Tel: (02) 9422 2352 Email: ozmining@reedbusiness.com.au Journalists – Vicky Validakis Tel: (02) 9422 2964 Email: vicky.validakis@reedbusiness.com.au Brent Balinski Tel: (02) 9422 2408 Email: brent.balinski@reedbusiness.com.au Alex Heber Tel: (02) 9422 2884 Email: alexandra.heber@reedbusiness.com.au QLD and SA Sales Manager – Sharon Amos Tel: (07) 3261 8857 Fax: (07) 3261 8347 Mob: 0417 072 625 Email: sharon.amos@reedbusiness.com.au WA Representative – Jamie Wade Mob: 0435 945 868 Email: jamie@wadebusiness.com.au RBI Manufacturing & Electronics Group: Production Co-ordinator – Tracy Engle Tel: (02) 9422 2707 Fax: (02) 9422 2966 Graphic Designer – Dave Ashley 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 RBI 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 Printed by GEON 20 Baker Street, Banksmeadow, NSW 2019 Tel: (02) 8333 6555

Tough ride at the top CEO heads are rolling as mining sees a management shake up.

hese last few months haven’t been the best time to be a mining

CEO. Cynthia Carroll, Tom Albanese, Doug Ritchie, Roger Agnelli, Diego Hernandez, Vladimir Strzhalkovsky, Richard O’Brien, Aaron Regent – all mining heads that have rolled over the past year or so. Even BHP’s Marius Kloppers is apparently in the firing line. Obviously the most high profile change in the lineup of late has been Albanese and his virtual overnight replacement with Australian Sam Walsh. It was actually years in the making, starting with Rio’s movement into aluminium with its ill-advised acquisition of Alcan – which wrote $10 billion off the company, and finishing with the recent

Comment Cole Latimer ozmining@reedbusiness.com.au $3.5 billion takeover of Riversdale, the Mozambican coal mine. So what has caused this massive shake up at the top, and not just at Rio? A lot of these CEOs and managing directors came in before the boom really took hold, when the mining industry was suffering through the global economic trough or at the ramp up in boom 1.0. They then had the good fortune to experience possibly one of the greatest uplifts in mining’s history, when the commodity stars aligned and prices skyrocketed.

Iron ore reached heights of nearly $200 per tonne, goldsoared and coal went from strength to strength. With commodity prices like this, every move seemed to be a winner. And this is where they made their mistakes. Thinking the good times are likely to last they made a lot of rash decisions, some poor investments and generally some horrible decisions. These have now come back to bite all of them. So where to now? Australians appear to be making their way into the

top ranks globally, as Anglo American snapped up Mark Cutifani and Rio Tinto has decided to put the company into the capable hands of Sam Walsh. The Walsh decision was one of the least surprising outcomes of the Albanese affair. For years he had been touted as the next leader of the miner, with his stewardship demonstrating how capable he is. This shake up at the top may be indicative of a greater mood change across mining. A move away from risk takers to more stable leaders, who are less willing to roll the dice for greater returns, but to work slowly to gradually build capital and revenue. The industry has changed and its leaders, willingly or not, have been forced to change with it.

FRONT COVER All rights reserved. No part of the publication may be reproduced or copied in any form or by any means without the written permission of the publisher. SSn 0004-976X Reader Services – 1300 360 126 Subscription Rates – Australia (surface mail) $140.00 (incl GST) New Zealand A$148.00 Overseas A$156.00

Distribution APeriod D Average _ ending A MNet K I NJ AN_ 1 3 . p d f September 2012

Pa ge

3 0 / 1 1 / 1 2 ,

In this edition of Australian Mining we’ve focused on the threats facing the coal mining industry in Australia. For years it has been the target of environmentalists hoping to shut down mining in the country. One such activist, Jonathon Moylan, perpetrated a hoax which directly attacked Whitehaven Coal, devastating its stock price and managing to wipe out millions from the company in hours. While the company recovered, it highlighted how easily coal miners can be attacked, and the apparent lack of legal protection they can expect if the situation were to reoccur. Australian Mining also discusses the future of junior miners and exploration, and how a lack of government support, coupled with high levels of duplication and bureaucracy is putting the continued existence of many smaller miners at risk. This edition also launches the Prospect Awards. nominations are now open, so 1 1 :get 0 in 5 fast. AM

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February 2013

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Contents Coal to lead the way

No reservations

Coal is slated to become the world’s number one energy source....p12

Australia’s energy future....p28-29

Features TOP TRENDS

Top Trends for 2013 What are the issues affecting you this year ....................................... p8-10

COAL MINING

Modelling measurement Asset management on site ................................................................... p14 Coal’s risky business New coal safety programs .............................................................. p16-19 The hoax heard round the nation The Whitehaven hoax saga ............................................................ p20-21 Simple solutions on site Coal transfer ....................................................................................... p22 ICAC: The story so far Corruption in the coalfields............................................................ p24-26

GAS

No reservations Australia’s energy future ................................................................ p28-29

MINING AND EXPLORATION

Juniors in jeopardy Is our mining future under threat ........................................................ p32

INFRASTRUCTURE

Loaded questions Train unloaders in the Pilbara ............................................................. p34

QUARRYING, CRUSHING & SCREENING

It’s all about the sizers The development of sizing technology ............................................ p36-38 4

Februar y 2013 issue

February 2013

AustralianMining

Combination crushing Eliminating double handling in crushing and grinding ........................ p40

MINERALS PROCESSING

Under pressure Heavy duty slurry valves ..................................................................... p42 Wearing the costs Wear resistance in processing equipment............................................. p44

MINESITE VEHICLES

Tipping point Safer truck bodies................................................................................ p46 Keeping miners in suspense Stronger mining vehicle suspension ..................................................... p48 Simplifying your site Vehicle asset management ................................................................... p49

MOTORS & DRIVES

Behind the MVSD Vs. VFD debate What is right for your site .............................................................. p50-52 What’s driving draglines AC or DC power ............................................................................ p54-55

MINING EQUIPMENT

From start to finish Mining consumables ...................................................................... p58-59

Regulars NEWS .................................................................................................. p6 PROSPECT AWARDS LAUNCH .................................................... p56 JOBS .................................................................................................. p60 EVENTS ............................................................................................. p62 www.miningaustralia.com.au

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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. Albanese steps down as head of Rio Tinto Rio Tinto’s head of iron ore Sam Walsh is the new CEO of Rio Tinto following Tom Albanese’s shock exit. According to the miner “Tom Albanese stepped down as chief executive by mutual agreement with the Rio Tinto Board, and Iron Ore chief executive Sam Walsh has been appointed as his successor [immediately]”. Rio Tinto’s energy chief Doug Ritchie was also been caught in the management cull, stepping down today by “mutual agreement”. Many believe it is the miner’s expectation of a non-cash impairment of around US$14 billion for its 2012 full year results that was the impetus behind the corporate reshuffle. “These impairments include an amount of approximately US$3 billion relating to Rio Tinto Coal Mozambique (RTCM), as well as reductions in the carrying values of Rio Tinto’s aluminium assets (mostly Rio Tinto Alcan (RTA) but also Pacific Aluminium) in the range of US$1011 billion,” it said in a statement. “The group also expects to report a number of smaller asset write-downs in the order of US$500 million.

machinery manufacturer stated that it “has uncovered deliberate, multi-year, coordinated accounting misconduct concealed” at the recently acquired ERA Mining Machinery company’s subsidiary Zhengzhou Siwei Mechanical & Electrical Manufacturing, in China. “Caterpillar’s investigation determined several Siwei senior managers engaged in deliberate misconduct beginning several years prior to Caterpillar’s acquisition of Siwei,” it said. It went on to stress that “the misconduct at issue commenced at Siwei well in advance of Caterpillar’s acquisition. Due to the fraud at Siwei, Caterpillar expects to suffer a “non-cash goodwill impairment charge of approximately $580 million, or $0.87 per share, in the fourth quarter of 2012”. Following the investigation Cat removed several senior managers at the company, installing its own new leadership team.

Miner’s arm crushed

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 industry. cable reel and the cable reeler. The man had been stuck there for over an hour, CFMEU district president Steven Smyth told Australian Mining. “He’s very lucky; he was stuck for over an hour. As bad as it is he is fortunate to not have far worse injuries,” Smyth said.

A mine worker has had his arm crushed at BMA’s Broadmeadow underground coal mine near Moranbah in central Queensland. The man’s colleagues raised the alarm on Sunday night after noticing Caterpillar uncovers he had not returned underground Military to protect internal fraud following a trip to collect equipment. mining assets Caterpillar is carrying out an A search for the employee The Australian military is already internal investigation after claims AD_ AM E B _ 1 3 discovered . p d f hePwas a trapped, g e 1his 1 8 / 0 1 / 1to 3ramp , up9protection : 3 1 ofAoil,M working of misconduct at A oneBofLitsF recently left arm was crushed between a gas, and mining assets in Australia acquired companies. The mining

due to the rising risk of attack from terrorists or resource-hungry nations. According to a draft white paper leaked to the Australian Financial Review Australia’s lucrative resources may be seen as vulnerable and poorly-protected due to their isolation. “Work is already under way to enhance the ADF’s preparedness for operations in the north-west,” the white paper said. “The government recognises the economic importance of northern Australia and our offshore resources has increased.” Measures to ramp us security follow a recent attack on a gas plant in Algeria, which Australia’s Defence Force Chief David Hurley said would be studied to help prevent similar attacks in Australia.

Xstrata to create 150 new coal jobs Ramping up production at Xstrata’s Mangoola coal mine by almost 30 per cent to 13.5 million tonnes of coal a year will create an estimated 150 new jobs. The company said they are seeking permission to expand the mine located between Denman and Muswellbrook which will take total employment at the facility from 300 to 450 people. But greens groups say the increased production will have an unsustainable environmental

impact. In its application to the NSW Department of Planning, the coal miner has requested approval to lift run-of-mine production from 10.5 million tonnes to 13.5 million tonnes per annum. Xstrata announced in a local newsletter that it is seeking increased ‘‘flexibility’’ in its blasting frequencies but will not seek to modify blasting limits in the community.

Macmahon wins its largest ever contract Fortescue Metals Group has awarded a $1.8 billion mining contract to Macmahon. The contractor stated that this is the largest ever mining award it has won, adding that it further underpins its strategy to become a full service mining contractor. Macmahon will now provide open cut mining services as part of the Christmas Creek mine expansion for Fortescue. it will named as the preferred contractor for the site in October last year. Ross Carroll, Macmahon’s CEO, said the new five year Pilbara contract is extremely significant, adding that it brings the company’s order book up to $3.6 billion – the highest in its history. Fortescue added that the contractor will provide “all aspects of mine operations including drill and blast, overburden removal, ore harvesting, maintenance of equipment for the Christmas Creek expansion”.

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AM.FEB13.PG008.pdf

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TOP TRENDS

TOP 10 mining trends for 2013 T

he mining game is tough at the best of times; currently mining companies are operating amidst a volatile climate of rising operation costs, unstable commodity prices and a strong Australian dollar. With this in mind, Deloitte has released its annual ‘Tracking the Trends’ report which examines the challenges expected to affect the industry in 2013. “As commodity prices decline and global economic uncertainty persists, it’s harder for mining companies to predict future demand patterns,” Deloitte’s Australian global mining leader, Philip Hopwood, said in a statement. “Companies are deferring their expansion projects in the face of waning Chinese demand, yet world demand promises to increase dramatically in the coming years,” he added. It’s one thing to predict this year’s trends, it’s another to put themAinD some _ A Msort L A of N Jhistorical U N _ 1 2con. p text, simply because how do you

February 2013

AustralianMining

As 2013 kicks off we give you an insight into what will be affecting the mining game this year. Alex Heber reports.

know where you’re going if you don’t know where you’ve been? In the words of English poet Coleridge: df P a“Ifg men e 1could 1 5learn / 0 from 5 / 1his2 , tory, what lessons it might teach us.”

So here they are the top 10 for 2013 according to Deloitte…

1.3 The costs of doing : 4 8increasing PM business

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 mining taxes as well as Queensland’s 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 their 2008 lows, they have shown a pattern of decline in the last year. Add to this the rise of natural gas in the US which has resulted in a drop in the demand for coal, and an increase in the amount of US coal that is being exported from the states to Europe and Asia, putting American coal in direct competition with Australian coal. Late last year American coal conglomerate Alpha Natural Resources even credited Australia’s rising costs for the US’s boost on the global coking coal market. “The fact is that their cost inflation has been so rapid that it is actually improving the US’s relative position in the global seaborne metallurgical market,” the group’s vicepresident of investor relations, Todd Allen, said at the time. Allen said that recent cost infla-

tions have far outstripped that of the US and Canada and attributed the rising costs to changes in federal and state government regulations and the inflated cost of labour. Until recently Australia was the world’s cheapest place to produce coal, yet in five years, we’ve become the highest cost producer in the world at $176 a tonne compared to the rest of the world at $106. Discussing cost pressures, Hopwood said mining companies must look at a more intricate series of investment options in order to remain competitive. “With cost pressure mounting and talent shortages ongoing, companies must assess the viability of a more complex series of options. Investments will be necessary to enable companies to weather more severe volatility,” Hopwood said.

2. Demand uncertainty

There is much debate over commodity demand predictions, while in the short term demand for resources like iron ore may be tapering, mining companies need to continue to look ahead to avoid long term supply constraints, Deloitte’s Americas mining leader Glenn Ives said. “”This danger will grow as companies halt production in the face of capital cost increases and growing shareholder demands for more immediate returns,” Ives said. Continued on page 10 www.miningaustralia.com.au

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TOP TRENDS

Continued from page 8

According to the Economic Intelligence Unit, real annual GDP growth in China is forecast to fall to an average of 8.1 per cent between 2013 and 2016. Indications that China’s economic growth is slowing is having a ripple effect on mining companies, particularly those who have pinned their fortunes on China’s continued appetite for resources.

3. Quality of projects over quantity of projects

Overrun costs and schedule slippage in mining projects not only worries lenders; they aggravate shareholders and attract media attention. Thus this year Deloitte believes we’ll see a growing number of miners being forced to determine what projects should be delivered rather than financing “speculative longterm projects”. According to Deloitte Access Economics, the value of resources as a share of all projects in Australia’s planning pipeline fell from more than 56 per cent in June 2011 to 40 per cent in June 2012.

tionalism, 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.

6. Combating corruption – Holding miners to higher standards

ICAC’s investigation into questionable mining deals done in New South Wales’ Bylong Valley is set to continue until the end of March. (See story on page 24) And although Australia prides itself on having a relatively low rate of corruption, coming in at number 7 on Transparency International’s Corruption Perception Index behind the likes of Denmark, Sweden, and Switzerland, it is worth noting that to maintain such a standard the country’s prime industries like

transparency and operational sustainability. This means mining companies must provide local employment opportunities, infrastructure, training, education and healthcare in order to avoid vocal opposition to their presence.

8. Skills shortages here to stay

The skills shortages in Australia’s mining industry remain at unrelenting levels, which is where they’re expected to stay for a while yet. The Minerals Council of Australia predicts the need for an additional 86,000 mining professionals and skilled mine workers by 2020. While the remote location of mines poses a challenge when attempting to attract talent, it can be overcome with wage hikes. However, this can prove to be unsustainable solution for majors

4. Fighting for funds: Asian investment and M&A

The battle for funding is predicted to remain competitive in 2013 as debt financing remains tight across global financial markets and institutional investors continue to turn away from the mining sector, Deloitte said. Such a turn of events has forced mining companies to look elsewhere in the search for capital, leading many companies down a road of joint ventures, mergers and acquisitions and consolidations in an effort to get projects off the ground. Asian based investors are still playing an active role in the resources market as the Chinese government continues to encourage them to provide development capital and acquire resources abroad.

5. Resource nationalism will remain

While Australia doesn’t have the same unpredictable level of sovereign risk other mining nations around the world do, Australia does have its own level of resource nationalism in the form of the mineral resources rent tax (MRRT) and the carbon tax. Both have the potential to reduce company profits and interfere with project feasibility assessments. “Whether it’s through resource na10

February 2013

AustralianMining

Miners are facing increasing challenges as the year progresses.

mining must continue to be held to world class standards. Corruption poses a significant risk to business’ bottom line and corporate reputation, and around the world particularly in tougher geopolitical environments combating corruption remains a challenge for the mining sector in 2013. Deloitte’s mining leader for assurance, Tony Zoghby explains that as the comfortable countries are mined out, mining companies will need to find new, riskier locations.

7. Socially responsible behaviour

Corporate social responsibility today extends beyond what is legally required; instead it involves understanding shifting community, government and NGO expectations, and committing to a higher level of

who cannot continue to increase salaries year on year, and for juniors, who cannot afford to fork out such exorbitant salaries in the first place. Training local talent, sponsoring university programs and cross training existing workers are all ways of recruiting whilst behaving in a socially responsible manner, Deloitte says.

9. Improving safety culture

Building a culture of safety is one of the most important tasks, if not the most important task, mine management can undertake. Mining is a dangerous industry, although it has come a long way from the days when mercury was mined by hand and children could be found underground. This doesn’t mean it’s anywhere near reaching safety perfection, in-

vestment in education and training needs to continue for improvement to continue. One way onsite safety can be improved is through the adoption of new technologies and ways of thinking. “Significant advances in data analytics and increasingly affordable sophisticated software capabilities can help organisations gain insight into causal factors and improve their safety outcomes,” Deloitte said.

10. Implementing new technology

More mining companies are choosing to reduce operational costs and increase efficiency through significant technology investments. Taking advantage of powerful data analysis enables mining companies to become highly predictive instead of reactive in their decision making processes. “New data analytic capabilities enable mining companies to take hundreds – or even thousands- of contributing factors into account when allocating their portfolios, assessing their cost drivers, predicting project success rates, identifying third-party relationships, mitigating risk and uncovering the causal factors of safety incidents,” Deloitte said. Implementing remote monitoring and control capabilities through programmable logic controllers (PLCs) enable miners to automate industrial processes like blasting, drilling, and transportation and inturn can improve mine site safety and accelerate production rates.

Collaboration is the key

Although these are the top ten trends for 2013, mining companies are renowned for taking a long term view of the market and long-term industry fundamentals remain positive. “As global demand for resources grows over time, mining companies that lay the groundwork today will be well positioned to seize tomorrow’s opportunities,” Deloitte stated. At present the mining industry faces a number of systemic issues that cannot be resolved without collaboration between players. From aging infrastructure, talent shortages and growing social expectations, to heightened demand for both energy and water and the need to implement new technology to stay ahead of the curve and improve safety records, these issues will not be resolved whilst mining companies act alone. www.miningaustralia.com.au

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COAL

Coal to LEAD THE WAY M

ore than 8,000 jobs have been stripped from Australia’s coal sector in the past six months and heading into 2013 the industry continues to feel the pressure. Australian coal companies are struggling to compete on the global stage, facing increasing competition from the United States, a drop in coal prices, a high Aussie dollar and rising operation costs. However, some are hoping that India’s crippling energy problems and hunger for coal will bring Australia’s coal industry out of these dark days. This sentiment is being backed by Wollongong’s coal mine NRE No. 1 Colliery. The mine’s Indian owner Arun Jagatramka has already taken steps to assure his employees that their premium coking coal will always be snapped up by the subcontinent. According to the International Energy Agency’s annual Medium-Term Coal Market Report (MCMR) coal’s share in the global energy mix is expected to continue to increase, predicted to close in on oil as the world’s top energy source by 2017. Such growth is reliant on Indian and Chinese demand to continue and according to the IEA both countries are expected to lead the growth of coal consumption over the next five years. China has already surpassed the likes of Japan to become the largest importer of coal in the world, and on the flip side of this, Indonesia has grown to become the world’s largest exporter of coal, surpassing Australia on a tonnage basis. It must however be noted that Australia’s current slip in the ranks can be in part blamed on the major Queensland floods in 2010-2011 which severely hampered exports. 12

February 2013

AustralianMining

New studies have pointed to coal becoming the world’s number one energy source by 2017. Alex Heber reports.

“Thanks to abundant supplies and insatiable demand for power from emerging markets, coal met nearly half of the rise in global energy demand during the first decade of the 21st Century,” IEA executive director Maria van der Hoeven said. “This report sees that trend continuing. In fact, the world will burn around 1.2 billion more tonnes of coal per year by 2017 compared to today – equivalent to the current coal consumption of Russia and the United States combined. “Coal’s share of the global energy mix continues to grow each year, and if no changes are made to current policies, coal will catch oil within a decade,” she said. The rise of natural gas in the US has in turn seen a drop in the demand for coal and such an increase in the amount of coal that is being exported from the states to Europe and Asia, putting American coal in direct competition with Australian coal. Late last year American coal conglomerate Alpha Natural Resources credited Australia’s rising costs, driven by the carbon and mining taxes and Queensland’s roy-

alty hikes, for the US’s boost on the global coking coal market. “The fact is that their cost inflation has been so rapid that it is actually improving the US’s relative position in the global seaborne metallurgical market,” the group’s vice-president of investor relations, Todd Allen, said at the time. Allen said that Australia’s recent cost inflations have far outstripped that of the US and Canada and attributed the rising costs to changes in federal and state government regulations and the inflated cost of labour. “Queensland has just levied a new royalty on metal-

lurgical coal that can increase the cost of production by several dollars per tonne. “You’ve got the carbon tax and mineral resources rent tax,” he said. However, the IEA predicts the coal renaissance in Europe is only temporary, saying that oversupply from the US coupled with low CO2 costs and high gas prices has made coal a more competitive energy source, for the time being. Nikki Williams, CEO of the Australian Coal Association, recently told SBS that the Australian coal sector is at “a terrible junction where not only has the international market come off in terms of prices, but our costs and

Despite the slump coal still has a bright future in Australia.

productivity have gone to a terrible place.” Williams added that until recently Australia was the world’s cheapest place to produce coal. “And in just five years, we’re now the highest cost producer in the world at $176 a tonne compared to the rest of the world at $106,” she said. According to the IEA thou shouldn’t worry about this for too long as the MCMR expects Australia will take back its crown as the worlds biggest coal exporter from Indonesia, despite rising labour costs and strong Australian currency rate which currently give Indonesia a competitive advantage. The IEA predicts Australia will export 356 mtce by 2017, surpassing Indonesia’s total exports of 309 mtce. The agency added that for Australia to achieve these numbers they will need to focus on infrastructure and mine expansion investments. The low price of coal and market uncertainty surrounding economic growth, especially when related to China, will delay and stop some investments, the IEA concluded. www.miningaustralia.com.au

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Modelling measurement Real life testing is ensuring software meets the demands of the mine.

ew software has hit the coal mine. Micromine’s latest coal mining software solu tion ‘Coal Measure’ is a dynamic and integrated software solution for coal data management and processing. Coal Measure allows for ad vanced 3D seam modelling, resource categorisation, resource reporting, pit optimisation, pit design and scheduling. This application has been built for both coal exploration and mining purposes, designed to deliver cost re ductions through improved planning and increased operation efficiency. Advert - Jan1Page 1 12:12:29 PM The software allows for improved planning and increased operation of sites. Coal Measure 1/16/2013 has combined ele ments from the company’s data man agement software Geobank and ex have been demanding a more sophisti remained both userfriendly and was ploration and mine solution software, cated solution that takes into account easily transferable,” Fitzpatrick said. Micromine. the complexities of coal and the ways Coal Measure approaches coal As part of the software’s deve in which it is mined,” Micromine’s deposits in a new manner, differ lopment, Mircomine carried out rig CEO Kevin Fitzpatrick explained. ing from metalliferous and irregu orous, reallife testing to ensure the “It has become very clear to us that lar deposits software, replacing in end product met the demands of the we needed to develop a worldclass terpretation and wireframing with coal mining market. solution that was both sophisticated modelling seam morphology using “With coal becoming an increas on stratigraphic se A D _ A M B R A F E B _ 1 3 . p d f enough P a g to e take 1 1into 7 / account 0 1 / 1 these 3 , 2 griddling : 5 5 Pbased M ingly critical energy source, our clients complexities, whilst also ensuring it quence. This process is quickly fol

February 2013

AustralianMining

lowed by direct conversion into a seam block model. Micromine participates in the Coal Industry Standards Committee, whose charter is to design and imple ment standards for coal mining and production. Ibo Mango, Micromine’s Geobank data management specialist, is a mem ber of the panel and was responsible for the release of ‘CoalLog’ Version 1, a Borehole Data Logging Standard for the Australian Coal Industry designed to improve the accuracy of borehole data. “The best thing about the Coal Standard is the benefits it will pro vide Micromine’s clients. A univer sally consistent system will be more transferable within the industry and will allow operations to record and manage higher quality and more ac curate borehole data,” Mango said. “Micromine is excited to be driving this data standardisation im provement and being in a position to introduce the new standard within clients’ operations,” he said.

www.miningaustralia.com.au

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Coal’s risky business A spike in coal mining injruies has driven development of new health and safey projects. Alex Heber reports.

ast year saw Queens land suffer one of its worst years for safety on record, with a spike in the number of injuries. The state’s coal mining industry was particularly hazardous with the Queens land commissioner for mine safety, Stewart bell stating “we have seen a disturbing rise in dangerous behaviour in underground coal mines”. With this in mind the in dustry has launched a new program in an effort to halt this worrying trend. RISKGATE is the biggest health and safety project ever funded by the Austra lian Coal Association Re search Program (ACARP). The online knowledge database has been specifical ly developed to capture and share information across and between different coal mining companies about how to manage, treat, and control the risks associated with open cut and under ground coal mining opera tions.

An online database has been developed to capture and share coal mining safety knowledge.

“The reason why RISK GATE was developed was that there was no coal indus try body of knowledge avail able to assist individual mine

sites in their aim of achieving best practice. RISKGATE is filling that knowledge void,” Centennial Coal spokesman and RISKGATE health and

safety task group chair John Hempenstall said. The first version of RISK GATE was officially released in December after “two years of solid work” project man ager Philipp Kirsch told Australian Mining. “The database we have developed is the most com prehensive in Australia. There has been input from Austra lia’s six largest coal com panies and I am confident it will lead to fewer incidents,” Kirsch said. The program aims to bet ter equip personnel to handle risk within the sector. “Australian coal com panies focus significant re sources in managing risk. With RISKGATE, you will have the ability to bring the industries current knowledge into the room when you do a risk assessment,” Tony Egan from Xstrata Coal said on behalf of ACARP.

Developing RISKGATE

Underground mining has been focused on as one of the most risky sectors of the industry.

February 2013

AustralianMining

Although still in its early phases RISKGATE is already showing great promise for improving mine site safety.

“We’re about two thirds of the way through and that has taken two very solid years of work to do the first eleven topics. Next year we will do another six topics and we will start on a sev enth topic,” Kirsch said. “At the start of this project, the coal industry identified 12 key target ar eas. Through our work, the project has expanded to tar get at least 17 areas of major risk to the industry.” Currently the program documents eleven high risk areas including tyres and rims, isolation, collisions, strata control, ground control, fires, explosives (underground), explosives (open cut), explo sions, manual tasks, and slips, trips and falls. Researchers are looking to expand the functionality with $1.3 million in funding supplied by ACARP, which takes ACARP’s total RISK GATE investment to $3.5 million. Six more areas, including outbursts, inrush, coal bursts and bumps, interface con trols and displays, hazardous chemicals and tailings dams, will also be investigated. When the project is com pleted it is expected there will be between sixteen and twen ty topics covered including collisions, chemicals, inrush and explosions. To date it is estimated the companies involved, which include Anglo American and Centennial Coal, have con tributed over four hundred days of individual expert time. “The companies nomi nate people to be on the dif ferent topic panels and so far we’ve had over four hun dred days of company time donated to the project, so that’s a massive investment on the part of the compa nies,” Kirsch said. Using bowtie analysis each topic is comprehensive Continued on page 18 www.miningaustralia.com.au

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Continued from page 16

ly researched and analysed, breaking them down into different parts in order to figure out what the causes, consequences and controls of each risk would be, a process which has proven to be quite lengthy at times. “To do a topic takes about eight days total and that’s just workshop time, not all the work we do be hind the scenes which is way more than eight days. “It’s essentially four two day workshops spread over six months,” he said. Kirsch said the process of developing the web based application has been a very rewarding one involving extensive workshops where industry experts debate, dis cuss, and pool their on the job knowledge in order to make the operation of coal mines in safer.

Coal collaboration

The beauty of this project is that it has been developed, funded, and byB the AD_ A M Edriven NEF E _ 1 coal industry and there has

February 2013

The exchange of information allows miners to spend more time on site and less in workshops.

been an abundance of infor beginning as something they mation shared between all wanted to do,” he said. involved, Kirsch said. “The companies have an “The system was some approach that there really 3 thing . p d fthatPthe a g [coal] e 1 com 2 3 / 0is 1no / competitive 1 3 , 9 : advantage 1 0 AM panies proposed at the very and that there are no secrets

AustralianMining

around safety. It’s not like sharing how much you paid for a truck or how much you sell a tonne of coal for, which would be more guarded in formation.

“But sharing how you prevent a risk from happen ing is something that the companies think should be shared openly, so there re ally has been no resistance from the companies in shar ing that information. They talk very openly, learn from each other in the workshops and contribute the know ledge which we then cap ture and put together on the website,” Kirsch said. Hempenstall said that Australia’s coal industry stands out from any other be cause of the way health and safety information is shared amongst competitors without restraint. “The Australian coal in dustry is different compared to overseas countries in the way we freely exchange health and safety information and experiences,” he said. The real benefit of creat ing RISKGATE that project organisers didn’t realise in the beginning but certainly discovered early on in the process was that the indi vidual company experts benefited considerably from

www.miningaustralia.com.au

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interaction with their peers from other companies. “They don’t get that opportunity very much, so in the workshop process there was the ability to talk with each other about how they deal with these different risks and there was on the spot learning; I think that was very energising for the participants,” Kirsch said.

project will never be ‘finished’ per se. “If your knowledge stands still then you are going backwards and MISHC is already planning a maintenance and update regime for RISKGATE beyond 2015. The aim is for it to always be a current body of knowledge,” Hempenstall said.

Strong industry support in uncertain times

Implementation

The information captured in RISKGATE is designed to assist companies with what they already do to manage risk both on and off site. “Companies already do comprehensive risk assessments; they do things like audit the systems and processes they have in place; they do incident investigations and then they of course do a lot of training,” Kirsch said. The way RISKGATE has been formulated is very practical, for example if a manager was to do a risk assessment about a particular question they can easily access a checklist the researchers have developed for that particular question. “Whether it’s a collision or some kind of an electrical fault or a tyre exploding, they could go to the online resource, find what they want, print it out,” Kirsch explains. He went on to emphasised that through

RISKGATE is designed to assist companies with managing risk both on and off site.

capturing this vital industry knowledge you bring the whole industry into the room when an individual wants to manage their site risks. “So it’s like having that whole group thinking, or the whole set of Australian coal companies with you in the room when you tackle the risk that you’re trying to manage and that’s what makes this system quite unique and quite innovative,” Kirsch told Australian Mining.

Hempenstall agreed, stating that that RISKGATE overcomes the current limitations of conducting risk assessments with just the personnel available within the company on site at a given time. Instead the “the RISKGATE body of knowledge extends the information available beyond the mine site and company to a directory developed by the coal industry for the coal industry,” he said.

The online resource safety pools knowledge, and promotes feedback and engagement in the industry. www.miningaustralia.com.au

Keeping RISKGATE relevant

With such a huge body of information contained in RISKGATE and with new technologies and best practices being developed for the coal industry the world over one of the biggest challenges for a web based application like RISKGATE is going to be staying relevant and upto-date. In order for this to occur Kirsch said the organisation is going to rely on user feedback and engagement. “In terms of keeping the materials current, we do have an email icon in the system which allows the user to make a comment or revision which comes back to us,” he said. Kirsch added that in the future, if industry support is still strong, they would consider running specifically targeted workshops once a year “depending on how rapidly things are changing to just update and revise the information that is in the system”. “We do recognise that we have to do the maintenance around the knowledge,” he said. Further expansions are scheduled for completion in June 2015; however Hempenstall acknowledges the

It is no secret Australia’s coal industry has had a rough year; battling increasing operation and labour costs, strong international competition and a high Aussie dollar. Nikki Williams, CEO of the Australian Coal Association, recently told SBS that the Australian coal sector is at “a terrible junction where not only has the international market come off in terms of prices, but our costs and productivity have gone to a terrible place”. It was only five years ago that Australia was considered one of the most economical places to produce coal in the world: now we’re the highest cost producer at $176 a tonne. The rest of the world is sitting at around $106 a tonne. At times like this it is easy for extra curricula activities like RISKGATE to get put on the back burner. “As the industry has tightened its budgets it may be more difficult to get industry to attend the workshops because of internal funding constraints, we’ll find out what happens next year,” Kirsch said. However, Hempenstall is confident the RISKGATE program is an essential component for the progression of Australia’s coal industry and the continued development of best practice. “What I am now starting to see is a recognition by the coal industry of the paradigm shift that we have to undertake in order to achieve the next step change in safety improvement. “I think RISKGATE is providing the catalyst for the industry to make that leap forward,” he said. AustralianMining

February 2013

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Environmentalists are fighting against miners to ensure the viability of agricultural land and the welfare of forests in the region. Image Courtesy of Lock The Gate Alliance.

The hoax heard round the nation The Whitehaven hoax has shaken the industry and created heated debate. Andrew Duffy investigates the causes and the outcomes of the event.

lmost twelve months ago Australian Mining asked a number of analysts and community leaders whether they thought the coal industry was under threat from rising anti-mining sentiment. The overwhelming response was that while there were certainly community members opposed to the industry, their impact on a company’s well-being was minimal. Rather than posing a true threat to a miner’s operations, conservationists were seen as part of the wider group of stakeholders, whose concerns had to be worked through in order to maintain a social licence. Fast forward to 2013 and for Whitehaven Coal, if not many others, that attitude has changed. More than just another stakeholder, anti-mining activists have proved their ability to swing a company’s 20

February 2013

AustralianMining

market position, threaten investors, and fool journalists and traders alike. In the words of Whitehaven boss Tony Haggarty such protesters now have the power to strike “the heart of the market’s integrity” and directly impact a miner’s value. But the story of this change in attitude is not a long one, and centres almost wholly on the actions of one man: anti-coal activist Jonathan Moylan.

tion on Coal, Moylan had previously taken part in a number of daring protests, including disruptions at coal and aluminium sites across NSW. But his most publicised action was to come in early January, when a fake press release he distributed fooled major news outlets and quickly wiped over $300 million off the value of Whitehaven Coal stock.

Trouble brewing

Drawn up on Moylan’s solar-powered laptop, the fake release purported to be from ANZ and claimed the bank had withdrawn a recent $1.2 billion loan to help develop the Maules Creek project. The release said the bank had withdrawn the loan because of “volatility in the global coal market, expected cost blow-outs and ANZ’s corporate responsibility policy”.

Months before launching the now infamous Whitehaven hoax, Moylan and a handful of coal activists set up camp in the Leard State Forest. After settling into the camp he warned the group had “plenty of tricks” in store to help fight Whitehaven’s Maules Creek project, which is set to expand in the sensitive state forest. A vocal member of Front Line Ac-

The hoax takes hold

ANZ policy dictates funds are not to be lent to projects that will have a negative social or environmental impact. “We want our customers to be assured that we will not be investing in coal projects that cause significant dislocation of farmers, unacceptable damage to the environment, or social conflict,” the false statement said. Posing as an official from ANZ, Moylan even fielded questions from journalists who attempted to fact-check the statement’s claims. After being published nation-wide the reports prompted a sharp sell off on Whitehaven stock, with shares down almost ten per cent over several hours. As news of the hoax circulated the stock slowly gained ground again, before it was forced into a trading halt by Whitehaven management.

In a statement Whitehaven said there was “no substance” to the hoax and ANZ had confirmed Moylan’s release was fake. In its own statement ANZ said it remained “fully supportive of Whitehaven Coal”. But by then the damage had already been done.

Investigations begin

Whitehaven stocks eventually recovered from Moylan’s hoax, and some pundits estimated shareholders lost just over $450,000, well short of the $300 million crash that immediately followed the hoax. Indeed some investors made money out of the hoax after buying up Whitehaven stock at discounted prices. Nevertheless the Australian Securities and Investment Commission (ASIC) did not take kindly to the stunt, and an investigation is still underway to determine www.miningaustralia.com.au

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whether Moylan breached the Corporations Act by carrying out the prank. Such a breach is no small crime, with a maximum penalty of ten years in jail and fines over $400,000, though Moylan is unlikely to receive such a sentence even if he is found guilty. As well as the ASIC probe Whitehaven is carrying out its own investigation to determine if there are grounds to take Moylan to court. But despite the rising pressure, the activist remains unrepentant about the attack, and has drawn support from the Greens and the wider anti-coal community.

A wider blight

While Moylan’s stunt was a The anti-coal hoax email sent Whitehaven’s share plumetting. Image Courtesy of Kate Ausburn. boost for the anti-coal movement in Australia, his action join in action against ANZ suffer from a bogus release. change, is still wrestling with also gained the attention of and Whitehaven. At almost the same time rebel shareholder Michael international media, and “With all of the renewed as Moylan targetted the Bailey, who appears to have was eventually picked up by attention on the mine after NSW miner, prospective published a false media a global activist group. the clever stunt, we have a seabed miner Nautilus Min- statement to pursue his own Based in New York, pro- chance right now to kill this erals was also hit with a mis- financial agenda. test group SumOfUs piggy- mine project once and for leading press release. Both stunts have underbacked off Moylan’s success all,” they said. Nautilus, a company lined the fragility of the fiand sent anA e-mail nancial system and resourcAD _ L out MH B C S E Pto _ 1 2 . But p d Whitehaven f P a g e haven’t 1 3 0 /based 0 7 /in1 Brisbane 2 , 1 1but : 1listed 3 AM its members asking them to been the only company to on the Toronto Stock Ex- es industry, and proved just

www.miningaustralia.com.au

how easy an anti-mining play can be.

Uncertain future

For the short term at least, the risk profile of activists like Moylan has been raised, and protestors have proved their power to turn a company’s fortunes. But the fact remains that while this group may have grown in influence, its membership remains low compared to the wider community. The coal industry both at home and abroad continues to receive the backing of government and financial institutions, and despite a levelling off over the last few months, global demand for resources remains strong. Where there is a market for Australian resources, and companies willing to develop resources and create jobs, there will always be an active industry. But whether they are a credible threat, a minor annoyance, or something in between, the environmental movement has proved it is a force to be reckoned with.

AustralianMining

February 2013

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Simple solutions on site New coal transfer chutes are making the movement of coal easier.

he robust construction and time saving design of new coal transfer chutes are providing smoother flowing, low-height transfer when in operation. These chutes are built to overcome space, spillage and conveyor bulking problems common in coal handling facilities and have been commissioned in underground coal mines in the Hunter Valley. “The chute’s major advantages are its simplicity, ease of installation and robust design,” manufacturer T. W. Woods Group said. Discussing the simple installation process, a company spokesman said it takes about four hours to install a chute. “We put in one new chute and a couple of refurbished chutes recently and it was very straightforward. It takes one shift about four hours to perform the complete installation,” he said. Plant manufacturer T. W. Woods’ A D services _ A M S the E Mmining, J U L _ energy, 1 2 . p construction and materials handling

industries throughout Australia and has used its extensive experience across multiple platforms to devise this coal chute. “The design more than covers what we do. It’s a robust simple design that’s pretty wear resistant and easy to adjust for our operations, which involve about 1200 tons and hour with throughput containing lumps up to 300-400mm,” a team leader who recently had the chute installed on his site said. “We use it on left and right hand 90-degree turns, where it is easy to adjust for throughput flow. The chute hangs off the jib frame, sitting on bearing blocks, taking discharge from the upper belt. “It’s straightforward to adjust back and forward for throughput as you require.” The low-height transfer chute features a conical head developed especially for mining applications, enabling high volume rates, of up dto f 2000 P a tonnes g e 1an hour, 1 3 / to 0 be 6 / main1 2 , tained when conveyors change di-

2 : 2 3

The transfer chutes overcome the issue of compact spaces in underground coal mines.

rection either underground or on the surface. “Frequently in underground mines you get 90-degree turns as coal conveyors emerge from one shaft and have to transfer into another within very tight spaces,” T. W. Woods director Tom Woods said. “It is usually very difficult to get coal to turn that quickly without spillage and bulking up on the conveyor belts as coal is dropped from the belt above onto the one below while changing direction.” The company’s transfer chutes are manufactured to overcome this issue through the compact design which allows the chutes to be fitted into lower overall heights than conventional designs, operating with a separation distance between belts of 1200-1500mm. The chutes’ conical head is also configured to provide a smooth transition through the turn for coal moving at typically three metres a 22

February 2013

AustralianMining

second and dropping up to 1500mm onto a belt below. “Drawing on our designer’s highly respected problem-solving expertise and our own hands-on experience over scores of mines, we set out to eliminate the spills, splatters and bulking that can disrupt production in mines where time truly is money. “Eliminating frustration, delay and cost is vital in today’s economic climate,” Woods said. “The design has already been proven service with some of Australia’s leading coal producers. “A bonus of the design also is that it has been quality engineered in our own extensive metal working facilities to easily outlast conventional designs and far exceed typical warranties.” T. W. Woods also manufacture products for mineshaft development including shaft liners, drilling tooling and wear plate materials, as well as custom-fabricated wear plate kits. www.miningaustralia.com.au

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ICAC: The story so far The story of coal mining and alleged corruption in government.

n inquiry by the Independent Commission Against Corruption has heard that lucrative coal leases awarded by NSW former mineral resources minister is an example of one of the states most ‘shocking’ corruption cases. To date the commission has examined whether decisions made in 2008 by the former minister for minerals resources, Ian Macdonad, to allow coal exploration in the Bylong Valley were influenced by Labor power broker Eddie Obeid. It is alleged that Obeid stood to profit around $100 million as a result of mining licences granted on his family’s property. ICAC heard the deal ensured coal assets were being “given away to friends, political supporters and business associates of the minister”. “The decisions involved the allocation of lucrative coal mining rights, the conditions upon which those rights would be granted, and the price beEpaid A Dwhich _ A Mwould BUL F B _ by 1 3inves. pd tors to acquire those rights,” coun-

Corruption is alleged to have occured at the top tiers of the state government.

sel assisting the inquiry, Geoffrey greatly enhanced the value” of Mr property and of Cascade f Watson, P a g told e 1the inquiry 2 4 / 0 at 1 the / 1 time. 3 , 2 Obeid’s : 4 2 P M “Mr Macdonald’s decision Coal, Watson said.

It has been alleged that Macdonald’s decision to open the Bylong Valley to coal mining, rig the tender process and pass inside information to the Obeid family, was part of an elaborate scheme to net massive profits. Cascade Coal was awarded the Mount Penny coal exploration licence in 2009 which was located on land owned by the family and associates of Eddie Obeid, who bought three plots prior to the tender for an exploration licence was called. Cascade later paid the Obeids $30 million for the land holdings and the Obeid’s are currently demanding that Cascade pay a second $30 million. After holding the $1 million Mount Penny exploration licence for 12 months Cascade attempted to on sell it to White Energy for $500 million. Cascade Coal posed a vested interest in White Energy, with sevContinued on page 26

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Continued from page 24

eral of its investors, including Brian Flannery and Travers Duncan, also directors in White Energy. Following this revelation the inquiry was told that other directors of White Energy were suspect of the company’s recent deal. Graham Cubbin, a non-executive director of White Energy said the possible involvement of Labor powerbroker Eddie Obeid and his family in Cascade Coal troubled him. Cubbin told the commission he was assured by Cascade the Obeids had no involvement what-so-ever in the company, when in fact the family held a 25 per cent share and had negotiated a $60 million payout. According to the Obeid family’s former lawyer Sevag Chalabian, investment banker and Cascade director Richard Poole had gone to an enormous amount of trouble to hide the Obeid’s interest in the company. Chalabian agreed Poole was Powerbrokers reportedly flouted the law to grant coal exploration tenements. concerned about the ‘’whiff of corruption’’ if the Obeid’s involvement He was then asked to listen to Eastern Suburbs man Greg Jones. was discovered. a secretly recorded telephone call On the phone recording Poole Poole, who appeared in front of made in March last year. is heard talking about writing to the commission late last year, agreed In the call Poole is heard dis- the ASX, using a “broad brush rehe Awould never deliberately mislead cussing D _ MA N MF L I A P R _ 1 2 . p d f Pthe a gsale e of 1 Cascade 1 / 3 / Coal 1 2 ,to 1 sponse” 1 : 0 9 to Astop M any further enquirthe ASX. White Energy for $500 million with ies.

‘’If he saw the whole picture he’d vomit – Travers, I think he’d die because he doesn’t get to be known as Mr. Coal then,’’ said Jones, referring to mining magnate Travers Duncan, also an investor in Cascade. Jones also said to Poole ‘’Yeah, I had a talk with [Ian] Kortlang yesterday and there’s like – there’s no drama. It’s like they’re only after ‘Macca’ [Macdonald] … and at the end of the day it’s like, you know, Macdonald’s rorted his travel voucher you know like that’s about it.’’ Poole then replied: ‘’Yeah, yeah, and really once the election’s over it should all be just dead and buried anyway.’’ In December last year New South Wales Labor minister Luke Foley vented anger towards former colleagues saying “cowboys were in control” and the NSW Labor government declared itself “open for business” after the departure of former Premier Bob Carr. “They were shameless in their approach to questions of planning and natural resources management,” Foley said at the time. Foley said that Ian Macdonald had a “sneering contempt” for community concern over mining development.

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February 2013

AustralianMining

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AD_AMPIRJAN_13.pdf

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AM.FEB13.PG028.pdf

Page

24/01/13,

12:57

GAS

NO RESERVATIONS Australia’s energy future may be in jeopardy. Brent Balinski reports.

nyone with a little curiosity in the oil and gas industry would’ve noticed an argument grow between explorers and users over the last year. The low price per MMBtu paid by users and the corresponding “manufacturing renaissance” in the US, while Australia’s manufacturing industry declined, saw a series of industrial energy users line up and takes shot at explorers, who, they charge, should be keeping their product cheap for domestic use. We want cheap gas – by legislation, if that’s what it takes – and we’ll pay you back many times over, their argument sometimes went. The energy white paper ruled out a gas reservation scheme and neither side of federal politics supports a national version of WA’s policy of setting aside 15 per cent of new offshore gas projects for domestic use. Gas developers – who had roughly $200 billion worth of LNG projects in development at the end 28

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of 2012 – are understandably unenthusiastic about the idea. Michael Chaney, Woodside’s chairman, said last November that Australia has undertaken “70 per cent of the world’s liquefied natural gas capacity building in the past few years.” The preparation for the boom in LNG exports has been expensive, and any interference in the gas markets available would be a threat to huge amounts of investment. “Interventionist policies that artificially create a separate domestic market will have a significant impact on Australia’s ability to attract the billions of dollars of international capital required to develop the next wave of unconventional natural gas resources,” a Santos spokesman told Australian Mining. Here we’ll take a look at some of the key points in an argument that looks set to continue through 2013. Give us cheap gas and we’ll make Australia stronger Below are a few quotes from one side of the argument.

• “Cheap energy has fuelled the Australian economy for the 20th century and, with a smart gas reservation policy, could do so again.” – Paul Howes, AWU, Sunday Telegraph, October 21 • [Australia] has naively allowed the unfettered export of this resource without regard to the immense opportunity lost in not retaining gas onshore for value adding.” – James Fazzino, Incitec Pivot, speech to American Chamber of Commerce, July 26 • “Aside from anything else, the fact that the price of natural gas supplied to industrial users in Australia is about to double should of itself instigate urgent review.” Craig Arnold, September 4, The Australian Both sides of the debate acknowledge the benefits of Australia’s rich supply of gas. This country has, on some estimates, reserves that on projected demand could last another 50 years. And that’s not including its shale gas reserves, the world’s sixthlargest.

Without action on the amount of LNG Australia can sell into energy-hungry Asian markets such as Japan, industrial users and others say domestic prices will rise, and start to look more and more like the prices paid by Japanese users. Further than that, that gas might be better used here. According to a report released by the Plastics and Chemical Industries Association and the Australian Industry Group last October, Large scale export of East Coast Australia natural gas: unintended consequences, the coming export boom in LNG might forfeit more wealth than it could earn if the gas was used by industry. One of the most unsettling suggestions by the report – which was not an explicit plea for a reservation policy – was that each petajoule of gas exported surrendered over a quarter of a billion dollars’ worth of industrial output. “That is, for every dollar gained $21 is lost – a worrying figure,” www.miningaustralia.com.au

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GAS

wrote the Ai Group’s CEO Innes Willox in Manufacturers’ Monthly in November. Figures like these are often greet ed with scepticism by those opposed to limiting exports. “If in fact there’s that much more profit to be gained by using gas here, then it will be used domestically,” Alan Moran explained to Australian Mining. Moran is an economist and the director of the deregulation unit at the Institute of Public Affairs, a free market think tank. “One hears this all the way through. We’ve had a debate, a long debate in Australia, where all these sorts of numbers are being floated around: we produce a lot of wool, why don’t we actually stop export ing wool and make sure the export ed wool is for domestic use in wool len mills here and there’ll be all these jobs and all this value added etcetera etcetera. If there’s a bonanza to be en joyed, he reasoned, then it wouldn’t need a subsidy to be brought about and investment would be lured be cause that’s where money could be made. “You hear it in every area. Every body just goes cap in hand to Can berra or to state capitals and basi cally makes the same point. None of them are right.”

prices in Australia than we should be.” The DomGas Alliance, the peak energy users’ group in WA, and oth ers have said that “Australia is the only country that allows gas exports without prioritising local supply.” Restrictions on LNG export in the US exist for all of the 48 “lower states” besides Alaska. The gas industry dismisses the argument that export bans have led to cheaper gas, and attributes the low prices in the US to the massive in investment in shale gas extraction technologies and an effective net work of pipelines. “Santos today has the largest number of onshore drilling rigs in Australia and we have 11 oper ating,” the company’s CEO, David Knox, told an Australian Institute of Energy Conference last November. “At its peak in the US, around 1,500 drilling rigs were exploring for shale gas, with both local and International Oil Companies, to gether with an experienced and mo bile drilling service sector – bringing new technology to play, along with a ruthless focus on low cost opera tions and an appetite for risk.”

Protectionism? Rent-seeking?

A gas reservation policy. Why not?

The argument that the country should put aside a portion of its gas has its fans, of course, and some will argue that it’s a national resource so it should be used in a way that serves the national interest. “Let’s decide what’s best for Australia,” offered Misha Zelinsky, the Australian Workers Union’s na tional policy and economics adviser. The AWU has been calling for a reservation policy, which it believes would be of huge benefit to the trou bled steel and aluminium industries. “Every other nation uses its nat ural resources to promote its eco nomic interest, yet Australia decides that we’re going to let the market de cide for us, and that as a result we’re paying higher gas prices in Australia than we should be when you look at other models that exist,” Zelinsky told Australian Mining. But there’s another side to the argument, of course. In trying to se cure cheap gas, you might actually achieve the opposite. “For developments to be eco nomically viable, operators need economies of scale complemented by advanced technology and pro www.miningaustralia.com.au

Exploration is expensive and difficult, and if you make it less profitable, you make it less likely to be attempted, APPEA said.

cesses,” said Santos’ spokesman. “These economies of scale would do more to keep down domestic gas prices than any form of reservation policy, which would create market distortions and inefficiencies and render gas more costly than it would otherwise be.” The Australian Petroleum Pro duction & Exploration Association agrees. Exploration is expensive and difficult, and if you make it less prof itable, you make it less likely to be attempted. Less exploration, less gas, higher prices for the smaller amount of gas available. “Gas reservation policies actu ally impair local gas supply and af fordability – not improve it,” said APPEA’s CEO, David Byers. “Having laws dictate where and how gas can be sold invariably de

ters the very investment needed to source Australia’s abundant gas re serves.” The Americans have cheap gas. Why not us? As mentioned above, the cheap gas prices in the US have given a tremendous boost to the country’s manufacturers. The boom in shale gas has been a huge boost for those who run energyintensive operations to make products such as chemicals, fertilisers and plastics. Those who want to legislate for cheaper gas point to restrictions on LNG exports in the US. Zelinsky said, “Every other na tion uses its natural resources to promote its economic interest, yet Australia decides that we’re going to let the market decide for us, and that as a result we’re paying higher gas

In the eyes of those wanting a free market, regulated cheap energy for some is merely an example of one company’s shareholders subsiding the shareholders of another. If you force a company to sell gas cheaply to Dow Chemical, for example, why not force Dow to sell their products to farmers and other chemical users cheaply? Moran highlights the danger that this attitude might pose to an ex plorer. “What you’re actually saying to the developer is ‘we want you to set aside gas for sale domestically,’” he said. “Now the implication is that the reason you’d say that is that you want to sell it cheaper, otherwise you wouldn’t bother saying it at all. And one of the real problems is that if you sell gas, say at 20 per cent gas at 10 per cent below the level, the export level price…” “The problem is that the way industry operates is that it doesn’t operate by saying a two per cent reduction. It operates with profit as a driver. And so if you’re earn ing 15 per cent of your revenue goes to profit, that 10 per cent reduction in profit goes straight off the bot tom line, which then becomes quite a significant motivator in terms of whether the project will be viable… So it can cruel a budget.” AustralianMining

February 2013

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AM.FEB13.PG032.pdf

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MINING & EXPLORATION

Juniors in

JEOPARDY

Mining is in flux, and unless explorers and juniors are given the support they need our mining future is at risk. Cole Latimer reports.

e have witnessed what may be the last great commodity boom for decades; the implementation of multiple mining taxes at federal and state levels; and a massive culling of mining CEOs over the last two years which have now seen Australians installed at the helm of two of the largest mining houses in the world. The mining industry is now under siege from all angles: the government, investors and environmentalists, and all eyes have been on the trials and tribulations of the majors. But all these hardships have never really threatened the future of mining giants. Those truly affected, the mining juniors, have been forgotten in the turmoil of these past two years. But if the industry and the government continues to ignore the issues facing junior miners they do so at their own peril, and put the future of Australia’s mining industry in jeopardy. Speaking to the Association of Mining and Exploration Companies head, Simon Bennison, he told Australian Mining that junior miners are operating without a net and if support for smaller companies disappears then the future of the industry is under a cloud. The high cost of exploration, a lack of governmental 32

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support and increasing levels of bureaucracy is already putting the future of Western Australia’s gold sector at risk. Bennison explained that many of the state’s operating gold mines have declining reserves and lower ore quality as they dig deeper. He added that many miners are struggling to explore in greenfields areas because of the high costs of exploration. While some of the cost is offset by continuing rounds of exploration and drilling funding from the WA government, Bennison said the Federal Government must lend its support. He went on to say that unless an exploration incentive scheme is implemented, the mining industry may not exist in Australia in the coming decades. “The Government has to

look at its policies,” Bennison stated. “But if they do it will enhance the appetite for exploration, encouraging companies to access equity and debt finance, and bring confidence back.” He explained that in 2012 there were only 32 successful IPO – “one of the lowest on record, highlighting that it will be difficult this year”. It is not just gold and Western Australia’s juniors that are facing an uncertain future. Coal in New South Wales, Queensland, and Victoria is also being fought against from the state of early drilling through to actual mining.

Support from the top

However there are some who are actively fighting against the odds that juniors face.

Queensland’s member for Mt Isa, Robbie Katter, has tabled the Environment Protection (Greentape Reduction) and other Legislation Amendment Bill 2012 bill to cut the green and red tape strangling much exploration and junior mining in the state by “streamlining and clarifying information requirements”. The bill also aims “to ensure that projects are assessed as a whole, rather than separate environmental authorities being applied for and assessed at different times”. Bennison added that it is encouraging to see support as the approvals process is in dire need of streamlining and “cutting of duplication”. “We need to get approvals processed quicker, but we can’t compromise on them, it just needs to move more efficiently, but in saying that juniors need to do their homework before applying,” he added. The Northern Territory is also standing out amongst the states for actively encouraging mining, with mining minister Willem Westra van Holthe even stating that the Northern Territory is ‘open for business’.

Different country, same story

Exploration is often the first to go when belts are tightened.

Currently a similar cry is being heard from Canada’s junior miners. Kirk McKinnon, the head of MacDonald Mines

recently took his government and the financing industry to task over its current stance on the industry. In a letter to his company’s shareholders and the government McKinnon stated that “financings are becoming increasingly difficult to arrange, the stocks are at much lower prices versus historical levels; mostly because credible information and exploration success is not resonating and consequently the junior resource stocks have little or no resulting upward movement”. He adds that there is an environment of super dilution and a growing lack of investment in this sector, a situation that mirrors that in Australia. “There are dire predictions that over half of the junior mining companies will disappear within the next few years.”

Our mining future

As the number of historically known deposits are mined and ore body grades decline we need explorers willing to take the risks and enter unknown regions to possibly uncover new deposits. Australia’s mining future is being shackled by poor governmental decisions and unless support is provided – both in terms of approvals as well as to a degree monetarily, then our mining future is at risk. www.miningaustralia.com.au

AD_AMTYCFEB_13.pdf

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AM.FEB13.PG034.pdf

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INFRASTRUCTURE

Metso has installed new train unloaders at Fortescue’s Herb Elliot Port.

Fortescue is planning to expand its iron ore throughput at the port.

LOADED questions The delivery of additional train loaders is helping to open up the Pilbara to export.

ustralia’s iron ore and transferred, the more it loaders allowed Fortescue to industry is all about costs. take advantage of the boommoving as much Every day is costing thou- ing market which saw the material as quickly and ef- sands of dollars. commodity’s price skyrockficiently as possible. Metso’s train unloader et up to close to $200 per Unlike gold or uranium, is providing that support for tonne. To take advantage miners are truly dealing with Fortescue Metals Group at of this the miner needed to a bulk resource, more akin its Herb Elliot Port. export more iron ore, using to coal in its handling than The company initially what is currently the world’s many other base metals. installed the first twin cell, heaviest haul line, which has To move this amount of tandem train unloaders in a 40 tonne axle load capacimaterial heavy infrastruc- 2008 during the midst of the ty. Despite the iron ore price ture is needed, not just at the first mining downturn. falling dramatically at the mine site and along the rail When the nation’s for- end of last year before stalines, but also at port. tunes turned around, as did bilising again, Fortescue has Because the longer it takes the market and global de- ordered additional train unA D _ A ME C O F E B _ 1 3 . p d f a ge 1 2 4 / 0 1 / 1 3 , 2 : 4 0 PM from material to be unloaded mand for P iron ore, the unloaders to boost its export

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AustralianMining

capacity along this line. According to Fortescue, at the time the new equipment represented a significant part of the company’s plan to expand its Herb Elliot Port facility. The first of the two new machines, dubbed TUL2, was commissioned late last year. Fortescue’s Peter Meurs explained that it was a major milestone for the miner. “The second train unloader takes our unloading capacity to 120 million tonnes per annum, which gives us the

capacity to reach a run rate of 115 million tonnes per annum by the end of the March 2013 quarter, comprised of 95 million tonnes from the Chichester mines [which incorporate its Cloudbreak and Christmas Creek mines] and 20 million tonnes from Firetail,” Meurs said. “The third train unloader [which was handed over in November last year] has given us the capacity, when market conditions allow, to complete further expansions.”

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

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allowed them to develop the complete sizing solution.

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

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QUARRYING, CRUSHING & SCREENING

It’s all about

THE SIZERS

After developing the original mineral sizer almost 34 years ago, equipment manufacturer MMD has gone from strength to strength.

nitially designed for use MMD has provided sizers to in underground mining, mining companies around where free space is a the globe for decades. valuable commodity, Mining Machinery Develop- Proud history ment’s mineral sizers have In 1978 MMD created the since expanded far beyond original compact sizer, and since then the company’s their original design. Intended to break up ore products have expanded to Sizers have demonstrated an ability to acheive high throughputs in certain materials, MMD says. into a well-shaped product, find a wide range of applisizers reduce rock by feeding cations. The technology has industry, the consultants Internationally the company as varied as industry itself, it through rotating cylinders brought considerable suc- said MMD sizers “showed has branched out to service with the company’s models cess for most miners, and in that fully mobile units could industries in Africa, Asia, being used on uranium, clay, that contain large teeth. Once the rock is torn 2009 independent consult- achieve high throughputs in Europe, and the Americas. and gypsum in Europe and apart, it can be transferred ants David Tutton and Willi- certain types of material and No matter where in the desert sand and kimberlite in to other areas of the plant bald Streck said the com- pit configuration”. In Aus- world they are operating, a Africa. On the other side of for processing, or sold on to pany’s sizer had been one of tralia MMD supplies units popular and almost univer- the world MMD sizers have other companies and pushed the “biggest breakthroughs” working from 700 tonnes per sal application for the equip- been used on bauxite, copfurther down the supply in mobile crushing for open hour to around 2500tph, with ment has been breaking per, and oilsands throughout pit mines. chain. mobile and fixed equipment down ore in the coal sector. the Americas. Marking the equipment as A key player in the inA D _ A MC E MF E B _ 1 3 . p d f P a g e 1 9 / 0 1breaking / 1 3 , down 1 0coal, : 0 iron 6 ore, A M But the range of applications Continued on page 38 dustry since the early days, a game changer for the global and overburden on local sites. for the machinery is almost

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MT244a Australian Mining Full Page Performance Solutions Advertisement February 2012.indd 1

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AM.FEB13.PG038.pdf

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QUARRYING, CRUSHING & SCREENING

Continuedfrompage36

Big rewards

In a statement MMD said its wide range of specialist teeth had opened up sizer technology to the wide range of applications it now carries out. It said the range of custom designed gearboxes also meant equipment could be adapted to suit different applications. MMD marked their custom gearboxes as a key point of difference for their business, claiming the initiative originally made up a significant shortfall in the industry. “Shortly after having designed the mineral sizer, MMD realised that ‘off the shelf’ reducers were rarely if ever suited to the varying requirements and arduous A wide range of specialist teeth have opened up sizer technology to more applications. conditions of the mining and processing industry,” MMD said the ability to cus- portant for companies in the statement to AustralianMinthe company said. tomise machinery was vital coal sector. ing MMD laid out some of “MMD therefore started to making sure the equip“This facility has par- the key technology its sizers to design and manufacture ment could fit any applica- ticular importance for coal used to deliver value to the their own range of ‘designed tion. And whilst each indus- preparation applications, end user. Reaching back to for purpose’ reduction gear- try and each company has where the call for a defined the product’s initial developboxes and have now been its own requirements, MMD size, cubic shape and minimal ment, the company said its doing soAfor AD_ M Bmore A U Fthan E B _30 1 3 said . p dthe f ability P a gto e customise 1 1 0 / 0number 1 / 1 3of, undersized 1 1 : 2 0mateA M equipment featured low proyears,” the company said. equipment was especially im- rial is essential,” it said. In a file and compact dimensions,

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February 2013

AustralianMining

which allowed customers to retro fit the machinery, even in confined spaces. The company also said its sizers could handle a high capacity of hard rock and oversized lumps, which meant there was no need to pre-screen ore beforehand. Its low rotation speed, critical for creating a cubical product, and ability to spread feed along the length of the shaft, were also flagged as key benefits. Finally the equipment features the ability to automate production, and no fly wheel is required, which means a saving can be made on power use. But more than any single feature, the real success of MMD sizers can be measured by the length and breadth of the equipment’s application. With machinery still operating on some sites ten years after the initial installation, and a customer base on the international scale, MMD has cemented itself as a key player in the mining industry and looks certain to keep expanding.

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AM.FEB13.PG040.pdf

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QUARRYING, CRUSHING & SCREENING

Combination crushing A new crusher concept is bringing together crushing and grinding systems.

omminution has often been an onerous process. It required different machines and technology to carry out the whole initial crushing phase, which was then followed by the grinding and milling course. Yet as mines now face the problem of rising costs and less investment, the initial outlay for additional machinery is a heavy cost burden that many can not afford, especially if it may now be an unnecessary cost. Sandvik Mining has released a new Vibrocone crusher concept, which it says combines both crushing and grinding capabilities into a single machine – not only cutting the need for additional machinery but also “offers up to 30 per cent energy savings compared with traditional crushing and grinding systems”. According to the company the new Vibrocone produces a much finer mill feed, allowing the machine to handle the first stage of grinding in a dry pro cess. AD _ A MN O R D E C _ 1 2 . p It not only crushes particles be-

tween the liner surfaces in the crushing chamber, but these particles in turn also crush each other in a high pressure inter-particle crushing action, giving the machine the ability to then produce a P50=3 millimetre mill feed. “Crushers are typically ten times more energy efficient than mills,” Marcus Benn, Sandvik Mining Australia’s regional product line manager for mining crushers and screens explained. “The Vibrocone’s ability to offload work from the downstream milling process offers energy savings of up to 30 per cent,” Benn said. “It is the next generation of crushing technology, as it works by combining the best of conventional crushing and grinding principles to produce an unprecedented amount of finely crushed product,” Benn said, adding that “product from the Vibrocone crusher opens the possibility for new eco-efficient comminution alternatives”. “For example,” he explained, d “compared f P a g eto existing 1 5 / comminution 1 1 / 1 2 , 1 : 4 4 circuits with rod and/or ball milling

TH I W ECT N N O C EST B E TH

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NORDEN HYDRAULIC CONNECTIONS

stages, the Vibrocone crushers can now replace the rod mills or act as pre-grinding units for the ball mills. “Using a Vibrocone as part of the comminution process will considerably improve the efficiency and cost of downstream grinding,” he added. Before its official release late last year the crusher and grinder went through a series of trials where it carried out more than 10 000 hours of commercial operations on copper, gold, and iron ore mine sites to

demonstrate its capability. “A greenfield case study of a ten million tonne per annum copper operation in South America carried out by Ausenco, has shown that the Vibrocone solution is the lowest cost option, with energy savings in the range of 20 per cent relative to the SAG mill alternative,” Benn said. The first Vibrocone to hit Australian shores is the 400 kW CO865, which has a capacity of 200-300 tonnes/hour.

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February 2013

AustralianMining

www.miningaustralia.com.au

AD_AMDYNFEB_12.pdf

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AM.FEB13.PG042.pdf

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29/01/13,

1:38

MINERALS PROCESSING

Under PRESSURE Hard working environments required hard working equipment.

inerals processors are constantly working in a demanding environ-

ment. Dealing with high pressure liquids, slurries, and abrasive materials is just an everyday part of their role. While the workers are up to the task, they have to ensure that their equipment is too. Stafsjo has released its new product range of high pressures slurry valves – the SLH and SLX – to ensure miners’ equipment is up to the job. According to Maria Persson, Stafsjo’s sales and marketing director, “since the introduction of the company’s first slurry valve, the SLV, in 2009, it has come across more applications that require performance at really high pressures, requiring it to add these new valves to A the D range”. _ A MC L A F E B _ 1 3 . p d Stafsjo’s SLH is designed to

cope with pressures of up to 20 bar, while the SLX can cope with pressures as high as 50 bar. The valves are built to give a tight shut-off independent pressure direction. “The flow capacity is maximised with a full bore and minimal

Stafsjo’s SLH is designed to cope with pressures of up to 20 bar, while the SLX can cope with pressures as high as 50 bar. seat cavity, and at the same time stresses and wear on the equipment are minimised resulting in a longer service life of the valve and related process equipment,” Persson added. f PThe a gSLH e 1and1SLX 4 / 0have 1 / epoxy 1 3 , coated fully lugged valve bodies in

nodular iron with integrated purge ports. Their reinforced seats are flexible in an axial way and seals towards each other in the bore when the valve is in the open position, protecting the internal parts and the gate from abrasive high pressure media. When closed the seats are displaced axially, which forms a seal with the gate until forms a complete closure of the bore, giving a bidirectional tight shut-off, the valve manufacturer explained. The seats also form a sealing face on the valve flanges, eliminating the need for gaskets. The gate is supplied in high strength stainless steel, coated to provide a high wear and corrosion resistant surface. Perrson went on to state that both the valves have solid top 1works 0 : 3 to 8 give A Mincreased stability during operation.

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AustralianMining

www.miningaustralia.com.au

AD_AMNAGFEB_13.pdf

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Creative mineral processing by Nagrom, the industryâ&#x20AC;&#x2122;s forward thinkers, since 1978. Our Approach As a leading mineral processor in Western Australia for over 30 years, we have learned in our experience that the process must adapt to the project, and not the other way around. Therefore, our team will sit down with you and determine the best way to provide a simple and effective solution tailored to your project. Unlike other companies, we do everything in-house, allowing us to provide a consistently high quality service in an efficient time frame. To simplify the process, we have organised our service capabilities into four key areas of expertise: Metallurgy, Analytical, Fabrication and Protective Coatings. For more information contact Tony Wilkinson on +61 8 9399 3934 or email to tony@nagrom.com.au | www.nagrom.com.au

AM.FEB13.PG044.pdf

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MINERALS PROCESSING

Wearing the costs Abrasive and corrosive materials are increasing the costs of minerals processing.

ining is a cost intensive business. It is an una voidable fact. And this is exacerbated by the nature of min ing, where abrasive and corrosive materials are used daily in minerals processing, wearing equipment and machinery down at faster rates, re quiring more costly maintenance. A reduction in costly mainten ance and downtime – these are things every business in the minerals processing and materials handling in dustry wants to achieve. “Customers who transport pro ducts including iron ore, bauxite, coal, agricultural grains, crushed glass and cement all face the same issue,” Peter Carseldine, FLSmidth Ludowici’s product specialist wear surfaces explained. “If that product slides over a surface or is dropped onto a surface it will eventually wear that surface and present A D _ AaMproblem.” PRI F EB_ 1 3 . p “We have a range of materials

available to apply to those surfaces to reduce wear.” “Wear linings have not changed all that much in the last decade as far as new material development,” Carseldine explained. “However, the wear material has become more readily available mak ing it more affordable. We have also been actively seeking new applica tions for WearResist, with success.” The company’s research and de velopment team is working to im prove its current wear product range. Right now they are actively researching and making improve ments to pipe linings with alumina cylinders, reaction bonded silicon carbide and basalt. Two recent ap plications have seen wear resistant coatings used in lining codisposal tailing pipe and backfill lines. These are in addition to the ap plication of WearResist lined piping d in f coal P ahandling g e 1 preparation 2 4 / 0 1 /plants. 1 3 , In the codisposal application, the

Wear resistant coatings have been used for tailings dam pipes.

12mm lining of WearResist was still operating after 600,000 tons where as the 12mm well pipe wore at a rate of 0.5mm per week. FLSmidth Ludowici also has trowelon wear products that have proven their success in different settings, reducing wear where both light well 2A : D 3and PA M T L Fimpact _8 Amoderate M E B _ as 1 3 . pasd sliding abrasion is present.

“We are very good at under standing the unique issues our cus tomers face and producing costef fective wear solutions that will bring about lasting performance and re duce maintenance and downtime,” he added. “If we are not too sure the solution we are offering will be suc f cessful, P a gwe e consider 1 1 0 it/ ‘research 0 1 / 1 3and , 1 1 : 4 7 development’.”

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AD_AMARRFEB_13.pdf

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AM.FEB13.PG046.pdf

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2:35

VEHICLES

The

TIPPING point

t is not rare to see overThe issue of overbalanced trucks balanced haul trucks on has been solved. site. The sudden weight of the load leaving the tray has been known to tip it backwards, making the truck stand up on its rear wheels. While it may seem like a funny occurrence, it causes serious damage; both to the truck, the driver, and the miner’s bottom line. And as long as truck bodies remained the same, the issue remains a problem. With this issue in mind, Australian company Austin Overbalanced haul trucks present a risk to the operator, and damage suspension. Engineering created a new haul truck body designed come off the ground and body design,” Kelly said, it now has a continual flow bins and the truck’s tray.” to give miners back control damage suspension when adding that “the body goes that starts from the material The kicks in the tray are at over their material flows. coming down and putting an up at an angle, and has mul- on the top, unloading it at the angles of 12°, 22°, and 8°, Speaking to Austin En- operators’ safety at risk”. ti-level kicks which work to same speed as before, this not he added. gineering’s Joe Kelly, he exThe solution to this create a pocket of material only negates the tipping risk In addition to reducing plained that “it started when weighty issue was relatively in the tray, so it stops all of the truck faced as it removes wear “the continual flow Peabody Energy came to simple: “[Austin Engineer- the material flowing out in a the overbalance issue but also instead of a single material us, as they found that when ing’s subsidiary] Westech single heavy load that slides the problem of damaging bins dump also reduces dust on discharging A D _ A Mtheir E N Eloads F E Btheir _ 1 3 solved . p d f thePproblem a g e 1by cre1 7 / 0out 1 /from 1 3 ,the 2bottom”. : 4 3 PHe M it is being unloaded into; cre- site, increasing the mine’s trucks’ front wheels would ating a new flow control went on to say that “instead ating less wear on both the green footprint,” he said.

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February 2013

AustralianMining

www.miningaustralia.com.au

AD_AMHITAUG_12.pdf

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5/07/12,

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// B E C A U S E Y O U D O N ’ T D O T H I N G S B Y H A LV E S

Hitachi AC Drive dump trucks. Built to match Hitachi excavators. Our trucks and excavators are brothers. They’re designed by the same engineers, assembled in the same factories, and built to the same quality. If you’re running a Hitachi excavator, then you’ve already experienced half of the Hitachi advantage. Now it’s time to see what a fleet can do.

AM.FEB13.PG048.pdf

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29/01/13,

3:47

VEHICLES

Keeping miners in suspense As the need for mining equipment to do more grows, site transport’s duties are increasing.

s the mining boom slows and costs bite, vehicles on site are asked to do more and more, tow more, haul more, and do it faster and safer. The increased towing and load carrying capacity of the new Ford Ranger and Mazda BT-50 has inspired All Air Suspension’s new Air Suspension Rear Leaf Spring Helper Kit in helping miners do more, better, and safer. These supplementary suspension kits allow the driver to maintain the correct vehicle height, with no Vehicle suspension kits are allowing drivers to carry heavier loads without impacting handling. spring sag, even under a heavy load. Air Suspension’s general improve both steering and will cause headlights to shine “It is a bit of a trap for manager James Maslin said. handling of a vehicle which up into the trees or blind othdrivers new to towing, or The company claims the is typically compromised er drivers,” Maslin said. carrying bigger loads, be- kits will also decrease tyre under a heavy load. Manufactured by Aircause a vehicle suspension wear and more evenly dis“Heavily or unevenly bag Man using reinforced that is perfectly good for tribute natural brake wear. loaded vehicles can be sub- Firestone air springs which normal lighter service can Although the suspension ject to increased sway be- fit between the chassis and change of, lateral A D _markedly A M S A Rwhen J U Lit_ is 1 2 kit . p doesn’t df P increase a g e 1a vehi7 / 0 6cause / 1 2 1 2 forces, : 2 7 while P M axle, these kits improve the more heavily loaded,” All cle’s load capacity it does trailer-imposed ball weight ride, safety and durability

of work vehicles carrying heavy and uneven loads or towing trailers. The adjustable airbags are used for front-to-rear and side-to-side levelling control of a vehicle. “A perfectly good familiar vehicle can become a safety nightmare if its suspension is not properly set up to tow or cope with varying loads,” he said. The importance of mine site vehicle safety has again been brought into the forefront of the industry’s mind as BHP joins the list of resource companies stipulating that entire vehicle fleets must have a minimum 5 star NCAP safety rating. Widely used in the mining industry, these suspension kits have been specifically customised to fit the new Ford Ranger and Mazda BT 50 utilities.

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February 2013

AustralianMining

www.miningaustralia.com.au

AM.FEB13.PG049.pdf

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A D _ A MV P I F E B _ 1 3 . p d f

Pa ge

2 4 / 0 1 / 1 3 ,

VEHICLES

The program is an integrated asset management system.

Simplifying your mine site New asset management tools are making mining maintenance tasks easier.

new simplified asset management offering from Mainpac and SYSPRO will provide a reduction of maintenance costs and improved plant reliability. The pre-integrated solution incorporates enterprise resource planning (ERP) software provider SYSPRO and enterprise asset management (EAM) software provider Mainpac. SYSPRO general manager Asia Pacific Shaun Butler said the joint offering will give customers control over key assets and business processes. Mainpac’s executive chairman James Kirk said the combined offering s unique in the mining industry. “As well as being asset intensive, mining is also a heavily regulated industry. Equipment is frequently audited to make sure the correct parts are in place and the equipment is well maintained. For example, it’s essential to manage AFFF or FFFP fire suppression systems and on board fire suppression systems to prevent sparks or flames that could lead to fires or explosions. “Maintenance managers must be able to provide accurate records for compliance and auditing purposes. This process becomes much faster and less labour intensive with the use of an effective, best-of-breed EAM system,” he said. A recent Aberdeen Group report suggested that a mine’s performance is directly affected by the management of its assets. The report highlighted that performance can be characterised by overall equipment effectiveness, unwww.miningaustralia.com.au

scheduled asset downtime, maintenance costs and return on assets. “Many ERP providers offer a solution that includes asset management capabilities, but the asset management component is usually an afterthought and is often inadequate to meet the requirements of asset intensive businesses. “The initial outlay and ongoing costs of these ‘all-in-one’ solutions can be very high, especially when the purchased solution is inadequate, and the company must return to market to find an asset management solution that meets their needs,” Kirk said. Pre-integration also makes implementation of the system both easier and more efficient, it also allows for scaling so companies can start small and expand use of the system across multiple sites or divisions as needed. According to Kirk the ability to track and manage asset availability and performance and apply maintenance strategies according to an asset’s criticality to the business delivers substantial cost savings and operational efficiencies. “The integrated system lets you see everything down to the finest detail so you can make smarter decisions about maintenance, faster,” he said. “You can balance maintenance costs against replacement costs and you can identify warranty opportunities, reduce unplanned downtime and the number of spare parts and consumables held across multiple sites.” AustralianMining

February 2013

2 : 3 1

AM.FEB13.PG050.pdf

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30/01/13,

9:46

MOTORS & DRIVES

Behind the

MVSD vs. VFD debate

The decision whether to use mechanical variable-speed drives or variable frequency drives should always be based on the optimisation of the total purchase-operation costs, writes Amin Almasi.

he mechanical vari- the dampening effects could able-speed drives provide a positive impact on (MVSD), particularly a rotating machine train. the hydrodynamic torque Sometimes, an MVSD converters, could dampen could be a cost effective and pulsations generated by the compact alternative to an connected machines (such as electric VFD (variable-frethe synchronous motor pro- quency drive) system. duced pulsation torques). However, the behaviour It is particularly true for of an MVSD system is very large dynamic torques in difficult to properly model transient situations such as or predict. The MVSD sysstart-up or the short-circuit tem is obviously one of the transient A D _ A excitations. M T R E 2 F EThis B _ 1 biggest 2 . p d unknowns f P a g ein the 1 ro1 0 mechanical “soft” start and tating1/5/12 machine8:26:42 industry. EmulsionPlant122x210Ad.pdf PM

The examples of availthan the option above, able mechanical drive options however delivers lower efare: ficiency at part-loads, usu• The MVSD speed-control ally less than 10 MW. and speed-increase for high • The variable-speed couploutput speeds. This is useing. This offers speed conful in relatively high power trol, no speed increase, is applications, say up to 18 relatively cheap and relaMW. tively less efficient. /• The 0 1 /geared 1 2 , variable-speed 1 1 : 5 1 A M For example, in a case coupling. This is cheaper study for a middle size com-

pressor train, dynamic torques are reduced by a MVSD from around 210 percent of the nominal torque (at the electric motor driven shaft) down to around 95 percent of the nominal torque at the compressorto-MVSD coupling. A shortcircuit (transient) torque is Continued on page 52

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AD_AMSEWFEB_13.pdf

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10/01/13,

2:51

Gearmotors \ Industrial Gear Units \ Drive Electronics \ Decentralised Technology \ Drive Automation \ Services

High Torque?

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7/01/13 3:41 PM

AM.FEB13.PG052.pdf

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MOTORS & DRIVES

The fluid flows through the adjustable guide vanes, where the flow and the flow angle are adjusted. Based on the position of the guide vanes (ranging from the fully-closed to the fully-open), the torque and the speed of the turbine wheel can be adjusted. The MVSD is based on the principle of power splitting. The majority of the power is directly driven through the input shaft to the revolving planetary gear (driving the annulus gear with a fixed speed). The output shaft is connected to the driven equipment. A small part of the power is driven through the torque converter, where the speed is adjusted and then superimposed in the planetary gear. All three components of the planetary gear (the annulus gear, the planet carrier and the sun gear) are moving in a superposing planetary gear system.

Continued from page 50

also dampened through the MVSD from an excitation above 380 percent down to around 155 percent of the nominal torque (on the compressor shaft). Because of the design of the MVSD packages there are some special (and unique) features in the alignment procedures for this equipment that should be understood prior to the order placement. An MVSD could also need some special requirements in the commissioning works. The MVSD systems (particularly the hydrodynamic torque converters) require a large amount of oil for the operation. The special oil skid provided by the MVSD manufacturer is usually an integral part of MVSD system base-plate/package. The main oil pump is most often a shaft driven pump. This pump should be sized properly to handle all different operational situations (an ample margin and a proper match with the oil requirement cases). There should also be a full-sized, second start-up (and stand-by) oil pump. ometimes, a rundown tank or a (third) emergency DC electric motor driven backup oil pump system could be required. A combined oil system with other equipment in the train is a compact option, which requires an excellent coordination between the MVSD manufacturer and the rotating machine vendor(s). It may not be a popular option for some operators (since usually a manufacturer-standard combined oil skid is offered), but if implemented properly it could result in a considerable saving.

Complex gear system

Another feature is the planetary gear of a MVSD (which is usually a very complex gear system). The gear system itself is a compact unit and the drive and driven shafts are usually on the same planes (horizontally and vertically). However, the planetary gear unit (that is usually used) can offer some complex be52

February 2013

AustralianMining

Making the right choice

The choice boils down to whether it is low or high voltage motors in use.

haviour. An MVSD, because of its complex nature, is a nonlinear system and should be linearised for the modelling (such as the torsional vibration study, and other studies). The efficiency at a partload is relatively low. MVSD options are manufactured by a few vendors. Sometimes, very limited options for some components (such as the instruments, bearings, or mechanical parts) are used by the MVSD manufacturer, which means some deviations on the project specifications. Usually, a relatively long list of deviations should be accepted for an MVSD system. MVSD systems are very special and complex mechanical systems (with many manufacturer standard components), which need a large amount of oil and spe-

cial oil system accessories. There could be some design, commercial and operational advantages for an MVSD compared to other options. Less space is required for an MVSD compared to a VFD system. An MVSD does not generate harmonic pulsations (a problem of some VFD systems) and it offers some vital mechanical dampening effects to some disturbances. However, for an MVSD, some unknowns are expected, special commissioning (and alignment) procedures are required, and there are very limited options available to the user. Considering all these factors, the reliability of an MVSD cannot be higher than a certain level.

Planetary gear MVSD

The most common type of MVSD is a combination of a

torque converter and revolving planetary gears. This MVSD comprises a torque converter and two sets of planetary gears: â&#x20AC;˘ A superposing planetary gear for the speed variation. â&#x20AC;˘ A fixed planetary gear for the reduction of the superposing speed. The planetary gear is usually of the helical design for smooth operation and superior running properties. The hydrodynamic torque converter is a combination of the hydraulic pump impeller, the hydraulic turbine wheel and adjustable guide vanes. The hydraulic pump impeller is connected to the input shaft and the hydraulic turbine wheel to the output shaft. The fluid (oil) is accelerated in the hydraulic pump impeller and transmits the energy to the hydraulic turbine wheel.

For low voltage electric motors almost always a VFD is preferred, as it is cheaper than an MVSD. MVSDs, such as hydraulic torque converters, are not recommended for large rotating machines (above 18 MW). MVSDs are special variable speed systems which should only be used in a right application, where there are technical, commercial or foot-print benefits. Successful examples of MVSD systems usually include special revamp/renovation projects. Giving an indication of the cost difference is not easy and this can change with every application (depending also on the VFD details/ manufacturer). For the right application, an MVSD could probably be 5 to 20 percent cheaper than a VFD. It is difficult to give a general comparison between a VFD and an MVSD, as it depends very much on the application (speed, power, operating characteristics and foot-print). The decision should always be based on the optimisation of the total purchaseoperation costs. www.miningaustralia.com.au

DFC Mining -AUS p 10/31/12 1:32 PM Page 1 AD_AMDYNFEB_13.pdf

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PM C

Composite

CY CMY

AM.FEB13.PG054.pdf

Page

30/01/13,

12:35

MOTORS & DRIVES

What’s driving draglines? The development of new ways to power draglines is increasing efficiency.

t is a statement that has echoed throughout mining since the 1970s. DC motors are dead. The advancement of AC drives in the mining industry is well documented and includes various applications in the surface mining arena. These include such surface mining equipment as electric mining shovels, electric haul trucks, and most recently electric walking draglines. Bucyrus, utilising Siemens drives, applied AC drive motion control on electric shovels decades ago when AC drive technology was quite a bit more complex than it is today due to having to utilise SCRs (silicon controlled rectifiers) and forced commutating circuitry which added to the parts count and complexity of such systems. P&H also experimented with an ABB AC drive system in the mid-80s for their shov- While DC has been more prevalent in draglines on site, AC motors are making inroads. els, but did not aggressively market this technology im- SCRs to GTOs (gate turn with the IGBT (insulated gate harmonic disturbance reflectmediately, offering DC digital off devices), which simplified bi-polar transistor). This ad- ed on the supply line. drives as the preferred solu- the commutation and gating vancement changed the gating Another advantage of the tion, until recently. circuitry dramatically and re- control from a current signal, IGBT was that it was a sinBoth OEMs went through quired only a current driven to a voltage signal, thus al- gle side cooled device, versus two evolutions since that time gate signal to turn the power lowing switching speeds to in- an SCR or GTO which was regarding AC drive technol- switch on or off. crease. This, in turn, provided hermetically sealed and ofogy for electric shovels. This Approximately ten years the ability to better replicate ten times was referred to as AD_ A MG L OF E B _ 1 3 later . p dthe f GTO P a gwas e replaced 1 3 0 / 0a true 1 / 1AC 3 ,sine 1wave 1 : with 3 6 less A M a “hockey puck”. This type involved the migration from

of device required clamping and heat sinks applied to both sides of the device for effective cooling. Today, single sided liquid-cooled IGBTs appear to be the standard for many AC drive applications in the mining industry including; Draglines, Shovels and Diesel Electric Haul trucks. Flanders had recognised the advantages and increasing popularity of AC drive motion control systems in the mining industry many years ago and began the process of developing an AC drive specifically designed for the surface mining industry and mobile mining equipment. Flanders remains a unique company in that it primarily consists of a large group of electrical and mechanical engineers which has the capacity to design and manufacture complete motors and drive systems for surface mining applications. Flanders traditionally has best been known for its motor manufacturing, design and repair services. Together with its sister company DCS (Drives and Control Systems), there have been motor and drive upgrades performed on many elec-

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February 2013

AustralianMining

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tric shovels and draglines in Australia and around the world. However, most recently, Flanders finalised the devel opment of their mining duty AC drive system and com pletely converted a Bucyrus 770B dragline to this mod ern technology. This system replaced the existing MG sets and DC motors that once powered the machine. The unique at tribute of this drive system is that it was designed from ground up, using the input from many service personnel who have had many years of experience with electri cal maintenance on surface mining equipment. It is not a rebranded industrial drive from GE, ABB, or Siemens but a design targeted for the mining application which While DC motors provide power, AC motors and drive control are more efficient. capitalises on attributes such as modularity, simplicity, culations, the next two min scheduled for completion drives are liquid cooled and safety, ease of maintenance, ing companies seeking AC and installation during the use AFE (active front end) and scalability. dragline upgrades also chose 4th quarter 2013. Flanders technology to offer the lat Due in part to the suc Flanders. The models to be is responsible for the design, est in power factor control cess of the first upgrade upgraded include a Page 757 manufacture, and commis and harmonic reduction for installation on the 770B and a Marion 8200. Both of sioning of the motors and the industry. and However, with the re A after D _ Aextensive M A F C Fdue E Bdili _ 1 3 these . p d upgrades f P a g will e 1be tak 1 0 / 0AC 1 /drive 1 3 ,controls 1 1 : for 3 3 both AM gence, research and ROI cal ing place in the USA and are of these machines. The cent success of deployment

www.miningaustralia.com.au

of Flanders’ first complete AC dragline upgrade, com parisons are being made and benefits are being noted. Gary Free states the fol lowing, after visiting the corporate headquarters for Flanders in Evansville, Indi ana, regarding the change in technology he sees coming around the bend in the fu ture for dragline upgrades: “The simplicity and design attributes that have been addressed from the factory that cater to the mainten ance requirements on a large dragline are impressive. From the simplicity of the core phase module, to the liquid cooling of the devices, including the robust design of the MAC 1024 AC mo tor, are all going to be com pared to the rotating MG sets and DC motion motors. I believe this system will be given serious consideration for future upgrades based on reduced maintenance costs, safety, enhanced perform ance, and overall improved electrical efficiencies of the machine which will also re duce costs further.”

AustralianMining

February 2013

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10TH ANNUAL AUSTRALIAN MINING PROSPECT AWARDS

The 10th Annual Australian Mining Prospect Awards Launch

t’s that time of year again, where we launch the country’s largest national mining awards – The Australian Mining Prospect Awards. This year we celebrate a decade of recgonising and rewarding excellence in the mining industry. The awards themselves saw around 300 people in attendance last year to celebrate those in the mining industry who are making a real difference. Anglo American dominated the awards last year, with its Capcoal surface operations winning both Mine of the Year and Coal mine of the Year, while the Newmont edged out the competition to take out Hard Rock mine of the Year for its Boddington gold operations. Xstrata also surged ahead of the competition, after devising a new safety system for coal handling amnd transfer at its CHPPs, which saw it take out Minerals Processing Plant of the Year. An Australian who demonstrated the nation’s skill, motivation, and innovation – Caris House – won the Young Acheiver Award, possibly being one of the youngest to take out the award – at only 23 years old. The 9th Prospect Awards also saw the strengthening of two relatively new categories, Mining’s Woman of the Year and the Community Interaction award, which were again the most hotly contested. Now in 2013, in this issue, we areAopening D _ A M the A E awards V F E B once _ 1 3more, . pd and it’s set to be a special event as

we celebrate our tenth year putting the spotlight on innovation in mining; so get in now to showcase the latest technological advances in the industry, or to highlight someone you know who is making a difference to the industry. So be a part of it, and nominate today.

Spotlight on the sponsor SEW-EURODRIVE – Sponsor: Coal Mine of the Year 2013

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 organisations in an 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.

SEW-EURODRIVE is proud to be sponsoring the coal mine of the year award at the 2013 Australian Mining Prospect Awards. As a key supplier to the coal mining industry, we believe in quality and efficiency when it comes to BOOM Logistics – Sponsor: Excellence in OH&S drive technology. Supplying a range of industrial Safety Always is a core value at gear units, motors and drives for es- BOOM; caring for the health and pecially large movements, we deliver safety of our customers, people, enmore than just products to heavy in- vironment and community drives all of our activities and decisions. dustry. BOOM recognises the AustralA team of talented engineers develop effective and timely solutions based on customers’ motion requirements, which are backed CATEGORIES by after-sales commissioning and product support that is second to • Mine of the Year none. • Hardrock Mine of the Year We also understand that time is • Coal Mine of the Year money, so units are delivered within • Explorer of the Year a matter of weeks from our local as• Mine Manager of the Year sembly plants, rather than waiting • Contract Miner of the Year months for items to be shipped from • Minerals Processing Plant of the Year overseas. f PThe a g coal e 1mining 2 3 industry / 0 1 / 1is3one , 9 : •1 Contribution 6 A M to Mining of Australia’s strongest assets – as

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ian Mining Prospect Awards as a prestigious event in the mining industry, and we are proud to sponsor the Excellence in Mine OH&S Award again in 2013, and to support businesses in this sector that reflect the same safety values held by BOOM. Who is BOOM? As Australia’s leading provider of innovative lifting solutions, BOOM combines expertise and experience with the largest fleet of cranes, including travel towers, access equipment and specialty engineering resources, to help solve your lifting challenges. BOOM serves a diverse customer base, including the mining and resources sector, and is relied upon by some of Australia’s largest blue-chip companies. We help our customers to develop and execute the right lifting solution with a focus on safety, productivity, efficiency and customer service. BOOM seeks to be recognised as the safest and leading lifting solutions company in Australia.

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February 2013

AustralianMining

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From S

ome would say it’s better to be selling picks and shovels than to be in the mining business. However most would say you need to be in the mining business to understand how to build mining products and services that really provide innovation to miners themselves. One Australian company is in that unique position. Arrium has a number of mines in South Australia and steel manufacturing plants both in Australia and overseas. According to the company this gives the business the unique ability to combine the knowledge of a miner and an extensive history in steel products manufacturing to produce mining consumables that actually deliver what miners want. Arrium Mining Consumables explained that one of its strategies is to partner with mining customers to reduce the impact of mining, optimise Aand D _maximise A M P 7 Othe F Euseful B _ 1life 3 . ofp mining consumables, and ensure the

START to FINISH Supporting miners from digging to rehabilitation.

business is focused on the continual improvement of its products. d Reducing f P a g elandfill 1 1on 7 mine / 0 1 sites / 1 3 ,

Being able to reduce the environmental

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impact of mining is a mounting concern for many miners and the ability to reduce waste and improve environmental performance is a key element to 2 : 4 6 PM delivering a successful project. It currently has a number of projects aimed at reducing waste on mine sites through taking greater responsibility for their product and a whole of life approach to product management. Mine sites, generally being in remote locations, discard mining consumable products such as tyres, ropes and reels at the end of their useful lives – delivering these products directly to landfill on site, but this may all be about to change. In the case of mining ropes Arrium Mining Consumables, through its Moly-Cop Ropes business, has developed an ability to reuse and recycle the reels that the mining ropes use, by substituting wooden reels with steel reels. Making this seeming simple change has extended the useful life of the reels from 18 months to 15 years at which point they can be recycled and aren’t placed in landfill – cutting a miner’s waste footprint. Moly-Cop Ropes business has also been working closely with another Arrium businesses to deliver value in recycling. OneSteel Recycling is using specialised equipment to enable the recycling of mining rope through its Gladstone, Mackay and Newcastle facilities, recycling a potential 8,000 tonnes per annum of mining rope –

February 2013 AustralianMining

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a substantial reduction in landfill on a number of mine sites. Mining tyres are essentially made up of steel and rubber and are also one of the major contributors to landfill on most mine sites. In an effort to further reduce mine landfills Arrium, in conjunction with the University of New South Wales (UNSW), has develop Polymer Injection Technology (PIT) in its steel making Electric Arc Furnaces (EAF). The work with UNSW has demonstrated that rubber from tyres can replace some of the coke within the EAF steelmaking process and increase the volume of foamy slag. Polymer injection technology reduces electrical energy consumption per steel billet tonne from 424 kWh to 412 kWh, reducing the amount of carbon injectant required from 464 kg/heat to 406 kg/heat. This technology reduce the amount of tyres ending up in landfill on mine sites, reduces energy intensity of EAF steelmaking which in turn enables a reduction in greenhouse gas emission. Arrium also takes the steel from these tyres and recycles it through OneSteel Recycling. However it is not just about the end of life measures. Arrium Mining Consumables business, Moly-Cop Ropes, has a number of programs aimed at both reducing the cost per BCM of over burden moved and improving safety on a mine site. Its Total Rope Management www.miningaustralia.com.au

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(TRM) philosophy helps miners by working with them to analyse their operation conditions and predict the life of the rope, to ensure ropes are changed under planned conditions. This achieves a lower cost per BCM of over burden moved and improved safety performance supported by innovative product development. Moly-Cop Ropes also offers training for mine operational and maintenance personnel to ensure an understanding of rope preventative maintenance exists broadly on a mine site.

Optimising minerals processing

Optimising ball mill performance is not an art it is a science. Moly-Cop Grinding Media have invested substantially in research and development to gain a greater understanding of how to increase the life of grinding media and mill performance. This investment has led to the development of Moly-Cop Tools which are designed to help Grinding Process Engineers characterise and evaluate the operating efficiency of any given grinding circuit. Moly-Cop Tools incorporates a full set of digital simulators for conventional and semiautogenous grinding applications with the corresponding mass balance andA D parameter _ A M F Lestimation E F E B _ 1routines; 3 . pd plus complementary spreadsheets to

The company recycles dragline and shovel ropes.

facilitate Bond’s Law calculations, grinding media ‘algebra’ and other useful utility functions.

Improved wheel design produces high performance rail wheels

Longevity of rail wheels is critical to maintaining rail infrastructure and ensuring the long life of wheels improves costs and reduces the down time of key rail assets. Arrium Mining f Consumables P a g e 1business, 2 3 / Comsteel 0 1 / 1 3Rail , Wheels has historically worked with

BB-0402 LoosenMaterial_Layout 1 1/18/13 2:52 PM Page 1

business partners such as BHP Billiton and Monash University, to look at how heavy haul wheel performance can be improved. After extensive research it was found wheels in heavy haul service are subjected to a combination of mechanical and thermal loads, which together can severely curtail wheel life compared to typical freight and passenger wheel wear. In developing Comsteel wheels work in conjunction with 9 : 3 1 wasA done M business partners to research and

improve (low stress) plate design, and the development of a micro-alloyed wheel grade with rim hardness levels approaching 400HB, offering excellent through-hardness characteristics in a 970mm diameter, multi-wear wheel. Wheel performance improvements were achieved through a combination of improved wheel design, specifically using plate designs which offer enhanced resistance to the effects of severe thermal loads during drag braking. Material grades with high resistance to wear, rolling contact fatigue and thermo-mechanical fatigue, as well as improved steel quality helped reduce the probability of shattered rims and similar catastrophic failure modes. Further refinement of manufacturing procedures for these wheels has included the implementation of “state-of-the art” non-destructive equipment for ultrasonic testing and measurement of residual stresses within the wheel rim. The work in this area has developed high hardness microalloy wheels which significantly increase wheel performance and dramatically decrease critical wheel failures. This work has improved the uptime of rail assets and helps to ensure that miners deliver materials on time as planned.

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AustralianMining

February 2013

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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. ExpEriEncEd ShotfirErS – QLd Orica is currently looking for a number of experienced Shotfirers to work even time rosters at different sites within Queensland. the criteria: Minimum 1 years’ experience as a Shotfirer Current QLD Shotfirer’s licence Good knowledge of the explosives industry and a strong mechanical background HR Licence is advantageous 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 Training programs, opportunities and initiatives to ensure your continued growth Competitive salary packages to apply contact Elizabeth ng on (03) 9665 7235 or 1300 4 oricA (1300 467 422) with any queries. LogiSticS coordinAtor – YArwun Your key purpose will be to organise the scheduling and despatch of Watercare products from the Yarwun site and various QLD stock points as well as to provide back up support to the Cyanide Logistics Officer (Domestic). You will identify and implement best practice to improve on service levels and ensure compliance to Quality System requirements. A very customer focused role, your duties and responsibilities will include but not be limited to: Coordinating transportation of chemicals Liaising with customers including service, transport and internal customers from Melbourne and Brisbane Scheduling of customer orders and liaising with service providers to ensure they are satisfied with despatch schedules. Solving/troubleshooting customer requests and/or supply issues as required Monitoring stock levels Monitor outstanding orders and delivery due dates Processing of water care production in SAP daily Payment of transport accounts Accounts payable duties Periodic vehicle audits Providing support to other states as required the criteria: Bringing with you a strong background in logistics or heavy transport, you will require a good understanding of processes and procedures for these industries. An understanding of inventory management and the paperwork required for national and international documentation for land and sea will also be critical. Experience in freight forwarding, purchasing, importing or exporting environments is preferable and previous knowledge of the chemical industry desirable. As the successful candidate will be able to demonstrate your ability to prioritise & meet deadlines; be customer focused, have a highly adaptive and results-orientated mindset as well as first class written and verbal A communication D _ A M E skills. F I F EB_ 1 3 . p d f Pa ge to apply contact Kylie williams on 1300 467 422.

SchEduLing EnginEEr The Rosebery Operation is an underground mine located in the township of Rosebery on Tasmania’s picturesque West Coast. The mine has operated continuously since 1936 and comprises an underground base metal mine and surface processing operation with the capacity to produce approximately 800,000 tonnes of ore a year. We are currently seeking a Scheduling Engineer to join our busy and successful Mining team. Reporting to the Senior Operations Engineer, you will prepare short to medium term mine schedules that factor in major constraints and possible solutions. You will regularly liaise with stakeholders to gain accurate input data and stakeholder views, allowing you to produce comprehensive integrated operations schedules. Other key components of your role include: Updating the mine schedules as new design data comes available and revising production and development schedules and the associated mine performance forecasts. Ensuring the business is aware of buffers and stockpile status and escalating potential risks in a timely manner to allow mitigating actions to be implemented. Monitoring performance against operations schedules and identifying areas of improvement. Producing KPIs to indicate the level of development, production and technical activities required to maintain/improve mine performance Maintaining a detailed working knowledge of all areas of the mine from a planning and operational point of view. You hold a tertiary qualification in Mining Engineering and you have a couple of years experience in hard rock underground mines including some time working on crew. You have solid skills in long-hole drill and blast, short-medium term scheduling and are familiar with long hole stoping. You have an advanced understanding of operations scheduling principles and EPS scheduling software. It is a requirement that you also hold a manual drivers licence. This is a great career opportunity and challenging role for a motivated Scheduling Engineer who is looking to expand their capabilities within a supportive team environment. This is a permanent position with a 5 days on/2 days off residential roster. The successful candidate will be offered a remuneration package commensurate with their experience and the current market. Domestic or international relocation assistance is also on offer. to register your interest in this opportunity, go to www.miningaustralia.com.au/jobs fiELd ASSiStAnt MMG’s Century operation, located in North-west Queensland, is Australia’s largest open pit zinc mine. In production since 2000, Century comprises an open pit mine and concentrator at Lawn Hill, connected by a pipeline to the Karumba dewatering and shipping facilities. A number of projects are currently underway to extend the life of the Century assets beyond the current completion of large open pit production in 2016. A number of projects are currently underway to extend the life of the Century assets beyond the current completion of large open pit production in 2016, as are/now 1such we 2 3 0 recruiting 1 / 1 a3Field , Assistant 9 : 1to support 8 AtheMexploration team at site for a 9-month limited tenure.

In this role, you’ll provide practical assistance in drilling operations, drill and geochemical sampling, and geophysical surveys. To be considered, you’ll hold qualifications in Geoscience or related field, a current manual driver’s license and have some basic experience in surveying, mapping and sampling techniques. This role will operate on a 8/6 roster, FIFO either Cairns, Townsville or Mount Isa. to start your career journey with MMg, submit your application online in either word (.doc) or Adobe (.pdf) format. to register your interest in this opportunity, go to www.miningaustralia.com.au/jobs pLAnt MEtALLurgiSt The Golden Grove base and precious metals mine in Western Australia produces concentrates of zinc, copper and other base and precious metals. Currently we are operating two underground mines (Gossan Hill and Scuddles) and have recently created an open pit copper-oxide mine. Reporting to the Senior Metallurgist you will be responsible for the provision of technical assistance to metallurgical operations in monitoring and recording of plant performance and improvements through project development and control. In addition to ensuring the smooth operation of the concentrator, on a day to day basis you will be responsible for: Monitoring metallurgy production targets and providing technical input to optimise plant throughput, recovery and concentrate grade performance to achieve or exceed these goals. Forecasting and budgeting Rigorous analysis and review reporting of costs Identification, formulation, evaluation and initiation of effective cost reduction programmes Mentoring Graduates and junior team members Continually improving production performance through the identification formulation, evaluation and initiation of production improvement programmes. As an experienced Plant Metallurgist, you will have both well developed technical skills and personal attributes including the following: An unwavering commitment to workplace safety A passion for continually improving mineral processing systems The desire to achieve within a team of high calibre professionals A tertiary qualification in Metallurgy or related science Concentrator experience including crushing, grinding, flotation and dewatering Good metallurgical accounting knowledge, and budgeting/forecasting skills Solid Excel, PI and AMPLA software skills Manual ‘C’ class drivers licence This is a great opportunity for someone who is keen to work on a multicommodity site and gain exposure to different processing methods. This permanent position will commute on a 8 days on/6 days off FIFO roster from either Perth or Geraldton. Accommodation and meals are provided in a comfortable modern camp with wireless internet connection, swimming pool, fully equipped gym, Foxtel, beach volleyball, outdoor cricket pitch and tennis courts. The successful candidate will be offered a remuneration package commensurate with their experience and the current market. Relocation assistance is also available. to register your interest in this opportunity, go to www.miningaustralia.com.au/jobs

“ EFIC dId morE than

provIdE FInanCIal support. thEy hElpEd us EstablIsh a traCk rECord.”

Cory stevens, CEo, lean Field developments

read our story at efic.gov.au/amp

overcoming financial barriers for exporters

February 2013

AustralianMining

www.miningaustralia.com.au

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EVENTS

Conferences, seminars & workshops Event submissions can be emailed to ozmining@reedbusiness.com.au Environmental Culture and Compliance

mining, automation safety, safe practices and technology in drilling and blasting, and 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

6-8 February Sydney Compliance and culture might seem an unlikely coupling: the culture of an organisation and the compliance of different projects to relevant legislations aren’t an immediately obvious pair. However, any major environmental initiative invariably comes from a company whose culture is a green one and who have their own drivers to become more sustainable. And these projects must all comply with very strict policy. In this light, it’s not so hard to see the link. Make sure you attend Tonkin’s Environmental Culture and Compliance Conference to hear 10 unique case studies from leading environmental management specialists from around the country. • Tonkin 02 9224 6013 erin.pelquesthunt@tonkincorporation.com www.tonkincorporation.com

Resources Roadshow

AIMEX 20-23 August Sydney Showground, Sydney

is specifically designed to promote the Australian resources industry to a wide variety of investors: from professional brokers, analysts and private investors who are current shareholders, to others who are keen to understand the investment opportunities within this sector. • Symposium Events

14-15 February 02 9299 4350 A Establishment, D _ A M N O R F ESydney B _ 1 0 . p d f info@symposium.net.au Pa ge 1 1 / 1 5 / 1 0 , The The Symposium Resources Roadshow

February 2013

AustralianMining

www.symposium.net.au

Australian Mining Safety Conference 1 May Brisbane

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 professional who focus not only on site OH&S 5 : nut 2 0also general P M work health and well being. It covers the gamut from safety in underground

Now held once every two years and firmly established on the international mining calendar, AIMEX is the flagship event within the portfolio of established industrial trade fairs staged by Reed Exhibitions. AIMEX is where Australian and international suppliers of mining technology, equipment and services come together with mining industry buyers and specifiers from throughout the Asia-Pacific region to network and explore business opportunities, and exchange technical information. • Reed Exhibitions Peter Thompson 02 9422 2472 peter.thompson@reedexhibitions.com.au www.aimex.com.au

www.miningaustralia.com.au

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A Member of The Linde Group

Resourcefulness. Just one of the attributes BOC provides to the Australian mining industry

Whether you’re talking about Oxygen, Nitrogen, specialist gases or LPG and LNG in bulk, onsite or compressed supply; our patented gas processes designed to enhance extraction, production as well as reduce the use of reagents; or welding and safety equipment and training programs — we’re there.

You can count on our reputation and commitment to service and safety because your business is important to both of us. 7o ľnd out more, visit your local Gas GearTM, www.boc.com.au, or call 131 262.

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

MP13-0874-1|MA|AM|0213

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