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December 2018, Edition 210
RETURN OF THE
PERMANENT MAJOR REVIVAL RESHAPING THE WORKFORCE IN CENTRAL QUEENSLAND
GALILEE GATHERS PACE
Adani new look and Macmines approval
NORTH GOONYELLA SEALED
What’s the future of 250 mining jobs?
PROJECTS LINE UP
Gregory Crinum - Iron Bark - Bluff Coal Dawson West - Winchester South December 2018 1
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CONTENTS
News
NEWS 04
HAIL CREEK RESTRUCTURE
06 G REGORY 09 N EW 10
CRINUM REOPENING
MINE FOR THEODORE
J ELLINBAH MINERS CELEBRATE CHRISTMAS
REGULARS 20 F RANK THE TANK 22 C RIB QUIZ 25-26 M INER’S TRADER For all general enquiries 07 4921 4333 or admin@shiftminer.com
NEWS & SUBSCRIPTION
EDITORIAL Overall editor is Alex Graham alex.graham@shiftminer.com or 074921 4333
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350 jobs not far away
Fitzroy Australia Resources (FAR) has received approval for a six million tonne a year underground coking and thermal coal mine near Coppabella East of Moranbah. The new mine will operate as a satellite pit to the existing Carborough Downs coal mine sharing most of the required infrastructure. According to FAR this will allow first coal by the start of 2020 - just over a year from now - and will generate around 160 construction and 350 operational jobs. CEO Grant Polwarth said it’s an exciting time for the company as it seeks to expand in the Bowen Basin. “This approval allows us to pursue our vision for the expansion of FAR, providing
opportunities to our existing workforce, the local community and the region more broadly,” he said. “FAR’s assets include some 98,000 hectares of tenement holding in the world-class central Bowen Basin for metallurgical coal. “Ironbark No. 1 is the first new development in realising the potential of this significant portfolio….will be a modern and innovative underground operation.” FAR is a subsidiary of global commodities and resources group AMCI which is controlled by American based coal billionaire Hans-Jürgen Mende. In late 2016, at the height of the mining downturn, Mr Mende - through his global commodities
Hail Creek Option Soon to be redundant workers at the Hail Creek mine near Nebo are facing three alternatives for the future. Find a new job elsewhere, get a voluntary redundancy, or be transferred within Glencore. Glencore surprised the currently booming coal industry by announcing in October that they would be cutting back production at Hail Creek and as a result would be reducing the number of employees at the mine by around 400. Glencore purchased the Hail Creek mine west of Mackay and a suite of other undeveloped Central Queensland tenements from Rio Tinto for $1.7 billion earlier this year. Having taken official control in August, Glencore says they have now reviewed the operation and
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come up with a plan for the future. “Our review has identified a number of areas where efficiency and productivity can be improved, starting with fundamental changes to the mining methods used,” a Glencore spokesperson said. “Our proposed changes are designed to ensure the ongoing viability of operations and reduce costs to improve the overall business position. “Unfortunately, it will mean the mine’s workforce of approximately 1360 will reduce to 930 when all changes have been implemented.” The reconfiguration is to be phased in over the next 18 months, although the majority of changes are expected to be in place by the first half of next year.
and resources group AMCI - repurchased the Carborough Downs coal mine from Vale after selling it to them nearly a decade ago. FAR and Vale didn’t release details of the sale price, so we will never know whether it was a sell-in-boom-buy-in-bust deal to be remembered alongside Kerry Packer’s Channel Nine sale to Alan Bond. However, we do know that in 2007 Vale paid $835 million to AMCI for the Integra Coal mine in NSW, 80% of Carborough Downs, half the Isaac Plains mine, the Broadlea Joint venture, and a suite of other undeveloped deposits. Then in 2009 Vale spent a further $400 million updating the mining processes at Carborough mine to achieve saleable coal of 2.8 million tonnes a year.
Mines Minister Dr Anthony Lynham publicly announced the approval of the mining lease saying Central Queensland remains a great place to invest. “Ironbark No.1 comes on top of the 13 committed resources projects in Queensland with a combined capital value of more than $9.4 billion across multiple commodities. “Another 42 projects are at the feasibility stage, with a combined capital value of more than $65 billion, again, across multiple commodities. “Queensland remains a global resources investment magnet, as our $56 billion resources sector generates thousands of jobs and business opportunities and royalties to pay for our teachers, doctors and nurses.”
Winchester locked, not loaded Whitehaven Coal has appointed a small project team to start work immediately on developing the Winchester South coal project near Moranbah. Whitehaven purchased Winchester South from Rio Tinto for around $250 million in May, and have since been meeting with stakeholders, collecting baseline data and undertaking ecological studies. In its quarterly report, Whitehaven said the potentially 15 million-tonne-a-year-project was progressing. “A project director with extensive coal mining experience and a small technical team have been appointed,” they said. “Groundwork has commenced, with ecological studies and baseline data collection underway, and the information will be used in the environmental approval process. “One of the key priorities is to generate a JORC resource for the
project...details of the new resource calculation will be released to the market when it becomes available. “First round meetings with key stakeholders have been completed, and no significant issues have been raised in these discussions. “Project momentum is building.” Other than to say it wants it to happen as soon as possible, Whitehaven has not put a date on when they would like to have the mine up and running. However, it won’t happen before their Vickery extension project near Gunnedah in NSW is operating. The Vickery EIS is open for public feedback until next week and according to Whitehaven, will generate around 500 construction jobs and roughly 450 operational positions. According to Whitehaven, Winchester would be developed as an above-ground coal mine producing between 7 and 15 million tonnes of coal a year for the next 20 or 30 years.
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Adani people, not robots real people.” The statement about automation puts them odds with other big global miners such as BHP and Rio Tinto who have recently said that technology will transform both the cost and safety of their mines.
Adani has released a statement again reaffirming their commitment to the Carmicheal mine in the Galilee, and making the point that it will be peoplepowered, as it continues its PR campaign to win support for the mine. Despite automation being one of the most profound changes occurring in mining at the moment, Adani CEO Lucas Dow says it won’t be a signature part of the coal mines development. “In the initial ramp up and construction phase there will be more than 1,500 direct jobs on the mine and rail project, and thousands of indirect jobs especially in places like Rockhampton, Townsville, Mackay
and the Isaac region,” he said. “Further jobs will be created as the mine’s capacity grows to 27.5mtpa. “Every job will be a new job in regional Queensland that didn’t exist before and importantly; these new jobs are not coming at the expense of jobs elsewhere in Australia as we will be selling into new markets for Australian coal. “The mine will use the same conventional coal mining techniques and equipment used in other Queensland coal mines. “That means people, not robots, will drive the trucks and excavators, fix engines in the workshops, cook the meals, and maintain the conveyor belts. “We are about real jobs for
In it’s most recent annual report, BHP said it could drive down per unit costs for their Bowen Basin operations through increased productivity driven by more work standardisation, automation, and machine learning. Earlier this year, an internal Rio Tinto memo from 2016 surfaced predicting nearly 1000 manual roles would become redundant as they rolled out automated haul trucks, drill rigs and trains. “Automation and technology are clearly changing the way we work, including reducing the number of future roles for truck drivers, train drivers and drillers,” a spokesman said in response. While there are no automated haul trucks in use in Queensland (yet), automation is advanced in drill rigs and surveying and is being fast-tracked in some of the more straightforward earthmoving processes.
Coal QLD’s MVP The Queensland coal industry continues to underpin the Queensland economy entering its 22 consecutive month as the state’s most valuable export. Queensland government figures forecast that coal will generate around $3.76 billion in royalties for the state government this year, and when combined with gas could approach $4.5 billion. The quantum of royalties has surprised government forecasters who didn’t predict the amazing recovery in coal prices over the last 12 months. The Queensland budget assumed thermal coal prices for this financial year would be $US89 a tonne, but spot prices have exceeded $US100 a tonne while coking coal has traded more than $US65 a tonne higher than budget predictions. CEO of lobby group the Queensland Resources Council Ian Macfarlane says the figures underscore the recovery and contribution of the resources sector. “The consistent returns from the Queensland resources industry fund schools, roads and hospitals, and are particularly important at a time when rural exports have hit a rough patch,” he said. “On top of this record return for Queenslanders, there are about 300,000 people who work in the resources sector, either directly or in associated industries.”
December 2018 5
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Airstrip funding deal shelved
Indian miner Adani continues to scale back the dimensions of stage one of their proposed Carmicheal coal mine, announcing they won’t be building a dedicated FIFO airstrip anytime soon. In a short statement, Adani CEO Lucas Dow said revised construction plans meant the airport wouldn’t be required in the
250 wells and 300 jobs Gas company QGC has announced it will expand its Surat Basin gasfields over the next two years by drilling another 250 wells, generating around 300 jobs and “opportunities for local business” in the process. Parent company Shell Australia chairperson Zoe Yujnovich said Project Goog-a-binge would stimulate the local economy. “During 2019 and 2020, Shell will progressively drill 250 new gas wells as part of the QGC venture in the Western Downs region of Queensland,” she said. “The wells will connect to existing QGC gas processing plants and will bring approximately 930 petajoules of gas to market over the next three decades. “The project is expected to create or sustain up to 350 jobs, the majority of which will be in regional Queensland and generate business opportunities for local suppliers – and be a substantial and ongoing boost for the local economy.” Santos announced a similar project a fortnight ago, involving the drilling of between 350 and 400 new wells a year across Central Queensland as it ramps up gas production to meet domestic and global demand. In line with this, Santos says it expects to increase sales of gas from the Curtis Island GLNG plant to more than six million tonnes by the end of next year.
6 December 2018
foreseeable future. “Having adopted a gradual construction and ramp-up for the mine, the airport facilities as originally contemplated are not immediately necessary,” he said. “As such, no investment is required from the Rockhampton and Townsville Regional Councils at this point.”
The decision casts some doubt over where Adani will source its mine workforce should the mine become a reality. Twelve months ago both the Townsville and Rockhampton Regional Councils secured prefered status as “FIFO hubs” after they jointly committed to invest $30 million into the development of an airport at the Carmichael mine. Of the more than 3300 jobs Adani has said would be generated during the construction and operational phases, 2100 were contracted to come from Townsville, and 1700 from Rockhampton. With the airstrip no longer required that deal is redundant, but Mr Lucas says both Townsville and Rockhampton will remain priority regions. “Importantly, Rockhampton and Townsville will represent the primary hubs for our workforce without the need for councils to invest at this point,” he said. “We think this is a great outcome for Rockhampton and Townsville.” Since taking on the role
of CEO, Mr Lucas has sought to downsize the reality and perceptions of the Carmichael project. “Often the Carmichael mine is incorrectly called a “super mine” or “mega-mine, this is simply not the case,” he told Townsville businesses in early October. “The Carmichael mine will produce 27.5 million tonnes of coal per annum in stage one. “This is only a small fraction of the total coal produced in Australia and a small percentage of coal used in the world each year.” In contrast, in 2011 former Adani CEO Jignesh Derasar told the Coaltrans conference (attended by Shift Miner) they planned to build a mine that would reach annual production of 60 million tonnes a year, employing nearly 5000 people in the construction phase and almost 4000 in the operational period. “This is a massive operation,” he said at the time.
Crinum contracts released
Sojitz CEO Cameron Vorias says the first ever mining of Fort Cooper coals in the Bowen Basin at their proposed new Wilton coal mine could happen by June next year subject to approvals. The project is one of three in development for Sojitz, who is currently releasing work contracts and close to launching a recruitment campaign. Headlining their growth plan is the restart of the Gregory Crinum mine which they recently announced they were in the process of buying from BMA.
“It’s not that far down the track,” Mr Vorias told Shift Miner. “We are looking at trying to complete with BMA by the end of the year, and we have just one outstanding condition precedent left to go. “The planning is going well, and we have a transition team entirely in place. “We are starting to let contracts go out, obviously with conditions around completion, but we are starting to look at refurbishment contracts for the dragline and wash plant, and all
the other associated equipment that needs to come in.” Once Gregory Crinum is restarted, possibly by April, the nearby Wilton mine will then be the main focus and could be operating as little two months later. Both of those mines follow the brand new, but comparably much smaller Meteor Downs South (MDS) coal project near Springsure which exported first coal earlier this year. That mine is limited to around 500,000 tonnes a year because all coal has to be moved by road to the nearby Minerva rail loading facility. However, Sojitz is in discussions with Aurizon and another engineering firm to fast track ways of organising rail infrastructure on the Bauhinia line that would allow them to triple production. “It’s going to be a massive first year,” Mr Vorias said. “I think if you look at it, we are just about the only company that is starting three operations in the space of twelve months. “I think we have got a great time coming with Gregory Crinum and the Wilton startup, and I think all things bode well.”
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Blasted road to reopen
Anglo American will commence construction straight away on a brand new 12.5-kilometre major regional road to replace the Gibihi road which was closed late last year after a routine blast at the Dawson mine destroyed it. It has taken Anglo and the Banana Shire Council a year to decide the fate of the old Gibihi road and come up with an alternative route linking the Leichhardt Highway to the Dawson Highway. Chief Executive Officer of
Anglo American’s Metallurgical Coal business, Tyler Mitchelson says the road would traverse the Dawson mining lease. “We’ve carefully considered the route to ensure it incorporates feedback from the community throughout our consultation periods and includes important features, such as a dedicated 4.3-kilometre road leading to a relocated viewing platform, which will encourage local tourism,” he said. “The road has been specifically designed for all weather conditions
and provides improved engineering to ensure access during times of flood. “As part of the infrastructure design, we’ve also worked with the Department of Transport and Main Roads to construct and re-design a new, safer intersection between the new Three Chain Road and the Dawson Highway. Banana Shire Council Mayor, Nev Ferrier said, Council went through a rigorous process in accessing the three options for the route for the new road.
“After giving all of the options due consideration, and taking into account the assessment provided by Council’s independent consulting engineers GHD, the Three Chain Road plan was identified as the most practical, cost-effective and suitable option available. “There are extensive safety issues associated with building a road through the gas fields, and it is because of this that the options where the new road came out onto Moura-Theodore road were eliminated. “Council will continue to work closely with Anglo American through the design and construction phases of the project.” Anglo American and Banana Shire Council will work with locally-based suppliers for the duration of this project, with over 100,000 cubic metres of road base to be sourced from local quarries. Tenders for significant work packages were issued to local contractors in October, with completion expected next year.
THAT’S WHAT WE CALL HEAVY LIFTING
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Surge in BHP spending
A $50 million surge in local business by BHP in the last six months has pushed the total amount spent through their local buying program to more than $250 million according to C-Res. The local buying program was launched in Central Queensland by C-Res and BHP in 2012 to increase opportunities for local businesses to provide goods and services to BHP’s coal businesses. Since then, it has expanded to their operations in South and
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Western Australia. C-Res CEO, Tracey CuttrissSmith said spending has taken off in the last six months in line with the recovery in mining generally, but also in response to bedding down of the program. “The first three years were pretty steady, and it was just about trying to introduce that program to BMA, but it’s only been in the last year and a half to two years that we have seen significant growth,” she told Shift Miner.
“For example $50 million of that $250 million has been in the last six months, so we are definitely seeing a rapid increase now. “For any major global company it takes a while to introduce these types of changes, and it is a culture change in how you source and get confidence in our local small businesses. “So what we are seeing is a lot of businesses who have never
engaged with BHP ...being able to engage through this program and doing well.” While there are some criteria regarding size and locality that businesses have to meet to be able to participate in the program, Ms Cuttriss-Smith says those that are involved enjoy a far more streamlined onboarding program than might be available through conventional channels. She is also surprised at the breadth of sectors with which BHP does business. “Even things like when BMA funds the Marina Fun Run in Mackay, and they want to engage a masseuse for after the fun run, we can put all that through the local buying program,” she said. “So it’s just not around heavy industrial offsite mining opportunities, it’s actually everything and anything. “In the communities of Moranbah, Dysart and Blackwater we have a gift voucher program so that if they want to reward employees, they can give a gift voucher that can only be spent in local businesses. “So that is how things like Florists, Day Spa’s and Toy shops can get that work as well.”
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Dust levels to be slashed
Coal dust levels on Queensland mine sites have been slashed by nearly 20% from this momth in what mining union the CFMEU says is a breakthrough in the management of Black Lung. CFMEU District President Jason Hill told Shift Miner that the previous rate of 3 grams per cubic metre for respirable dust would be cut to 2.5 grams. “We have managed to get the statutory dust levels reduced,” he said. “Following a concerted push by the CFMEU to get some action on dust, it’s going to be brought down
to 2.5 grams per cubic metre. However, the CFMEU isn’t calling it a silver bullet for Black Lung, instead viewing it as the first of many steps that need to be taken to make coal mining safer. Safe Work Australia is currently undertaking a review of the respirable dust levels in coal mining, and the CFMEU hopes that once their results are in, they will be able to push through a reduction to 1.5 grams per cubic metre for respirable dust levels, and 0.5 grams per cubic metre of silica dust levels by 2019. Further to this, they want a
complete change to the way dust levels are measured and published. Under the current system, the CFMEU says dust levels are averaged over a 12 hour period by mining companies. If the average is too high, there are then further investigations, which could take weeks to complete, and all the while exposure continues at the coalface. “This is a good first step in making a safe place to work,” Mr Hill said. “Obviously some other issues are going to back up behind this. “We need to get independent testing for dusting because at
the moment the dust sampling is undertaken by the companies. “Having mining companies undertake their own sampling is like putting the fox in charge of the chicken coup.” There have now been 78 confirmed cases of coal mine dustrelated lung disease across Australia, most of them in Queensland. The CFMEU says the new dust laws are a small bright light in what has been a very dark month for mine safety in Central Queensland. Among the near misses and accidents reported in Central Queensland have been a bulldozer driving over an edge at Moura, some heavy vehicle collisions, and a series of light vehicle accidents. “ The accidents lately have just been out of control,” Mr Hill said “For me, it’s more than a spike its just been ramping up, and to me, it’s an indication of the boom coming back. “Are we putting pressure on blokes to do the job, putting unqualified or inexperienced people in situations? I am not sure. “It looks to me like we are putting production ahead of safety.”
Theodore Coal mine 225 jobs in the balance
Private coal explorer, Construction and Mining Resources Pty Ltd (CMR) has begun working on an EIS for its proposed thermal coal mine fifty kilometres west of Theodore. This month the Federal Government confirmed the Dawson West mining project would be a “controlled action” meaning they will need an EIS to move forward. Earlier this year, CMR released a resource assessment (JORC) for Dawson West of 645 million tonnes of thermal coal based on a drilling campaign in 2014. The resource comprised 129 million tonnes of indicated, and 516 million tonnes of inferred resources with coal seams between 0.8 and 3.5 metres thick from depths of 5 metres to nearly 500 metres. At the time, CMR Managing Director Nicholas Williams
said they would commence a pre-feasibility study and start looking for a development partner to develop either a longwall, shortwall or linear style underground mine. “This is a huge discovery for CMR and the State of Queensland as we have identified a new coal precinct that is close to Infrastructure and is only 233km from the Gladstone Port region,” he said. “The second phase drilling campaign has been a great success, increasing our resource confidence into the indicated category and overall inferred Resource significantly from the initial exploration program. “CMR has only explored 8% of the total project area, and the project has immense scope for significantly increased tonnages across the, and we will launch a pre-feasibility study in the coming months to look into potential mining methods, transportation options and the overall economics of the project. “We are looking into options to further advance the Dawson West project and will be running a process to find a development partner and will be shortlisting candidates in the interim”.
The future of 225 jobs at the North Goonyella coal mine hinge on the monitoring and assessment phase currently underway. In its latest update, Peabody said there had been no significant developments in the past week, as they continued work on sealing the mine and established a network of data monitors. “The main activity on site is the concrete sealing of the mined-out area of the 9 North longwall panel which is nearing completion,” they said. “The North Goonyella team will continue to work safely from the surface to get the best understanding of underground conditions based on an expanded network of 35 remote gas monitoring points. “Underground camera images
continue to be taken where possible. “We continue to monitor temperatures, gas levels, seismic activity and surface air quality which is necessary to allow advanced planning for reventilation, mine re-entry and potential restart of operations.” Last week Peabody said the underground fire had so far cost the company more than $50 million and could balloon into the hundreds of millions if they abandon the mine. Until they can make a definitive decision, the long-term future for the 225 North Goonyella miners is unknown with Peabody saying they are currently either working on site, redeployed to other Peabody operations, or on paid leave.
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BMA Peak Downs ramp up
BMA continues to ramp up coal production from its Peak Downs coal mine as it prepares for the completion of its Southern Circuit project. When completed, BMA will be able to transport Peak Downs coal 11-kilometres on a conveyor system to the Coal Handling Preparation Plant (CHPP) at the
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nearby Caval Ridge Mine. BMA predicts this will allow them to increase coking coal exports by 4 million tonnes a year. To support the increased coal required by BMA at Peak Downs, tier one contractor Thiess has just finished building a brand new Liebherr 800-tonne excavator. The machine arrived in parts
from Europe and Adelaide and was assembled in just five weeks by a team of Liehbher and Thiess engineers. Thiess graduate mechanical engineer Warren Metz said the machine was completed ahead of schedule. “This was an instrumental build for us – it was our biggest build
to date for BMA (BHP Billiton Mitsubishi Alliance) on this project,” he said. “We delivered it safely, efficiently and with pride. “We met all Thiess and BMA guidelines and requirements, and we delivered it ahead of schedule and without incident. “Our team is pleased to see the 9800 already showing its worth and hitting its performance targets.” Thiess’ Peak Downs/Caval Ridge teams now have three fleets in operation at Peak Downs, and two at Caval Ridge. Also, Thiess maintains two excavators, several trucks and multiple ancillary items operated by BMA at Peak Downs. Work started on the Southern Circuit project in mid-2016 and is expected to finish by the end of this year. According to BHP, it’s created nearly 400 new construction jobs and locked in around 200 ongoing operational roles associated with the increased production supported by the new conveyor.
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230 jobs gone at JMK
One of Central Queensland’s biggest construction firms JMK Group has gone into administration leaving creditors owed millions and hundreds out of work. The company has offices in Mackay, Rockhampton, and Brisbane and has built everything from award-winning architecturally designed art galleries to council buildings, schools and industrial complexes
over its six decades of business. Administrators Price Waterhouse Coopers, have confirmed they will liquidate eight businesses operating under the JMK Group banner including, BPM Cowlrick Pty Ltd, Burns and Twigg Pty Ltd, Cajun Pty Ltd, Central Electrics (Contracting) Pty Ltd, Central Queensland Investments Pty Ltd, C.Q Construction Management Pty Ltd, Fitzroy Industries Pty Ltd, JM
Kelly Builders Pty Ltd, JM Kelly Management Pty Ltd, and Kawana Joinery Co. Pty Ltd. In a statement, John Murphy son of founder Geoff Murphy blamed a lengthy court battle with a Gold Coast developer over a construction project for the current situation. He says the action had meant the company had been removed from government tender lists losing opportunities to bid for $90 million worth of work.
“The past few years have been very difficult and trying for all of us at JMK,” he said. “The efforts to defend our business have had a considerable impact on us.” The Queensland Building and Construction Commission (QBCC) has previously tried to strip Mr Murphy of his building licence following the liquidation of another company he had been General Manager of in 2016. They released a statement this week saying they would take further action against him. ”In light of today’s developments, the QBCC will again take exclusion action against Mr Murphy, as it is required to do by our legislation,” they said. Among the suite of projects, JMK Group has built within Central Queensland, are the Yeppoon Town Hall refurbishment, redevelopments at Rockhampton Mater and Gladstone Public Hospitals, and educational facilities at Mackay’s Emmanual College and Rockhampton’s Grammar School.
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Finally a payday breakthrough BMA, Peabody and Rio Tinto have softened there stance on hyperextended payment terms in the Bowen and Surat Basin. In 2016 both BMA and Rio Tinto - followed by most others - outraged local businesses when they decided to double the time they would take to pay their bills from 30 to 60 days. “The decision to ask our suppliers to share some of the burden has not been taken lightly and we have endeavoured to reduce the impact where we can,” Rio Tinto said at the time. It was the first time that the global miners had taken this step, and despite deep resentment, most businesses accepted that slow pay was better than no pay at all. The decision meant some companies waited (and still do) more than four months to get paid by the time “delays” and other “issues” are resolved in the invoicing process. Despite ongoing representations from business groups across the Bowen and Surat Basin, mining companies have so
far refused to budge on the policy, other than to offer concessions for small and micro-sized business operating within their local buying programs. Last week Peabody announced that they would be taking this further with 30-day payment terms for all small to medium-sized enterprises (SMEs) supplying the company. Peabody’s Australian President, George J Schuller Jr said the move recognised that they could do better, and that slow payments were having an impact on business cash flow, especially for family businesses in regional Queensland. “As a company, we’re committed to working as hard as we can to support the people and businesses that support us,” Mr Schuller said. “Peabody’s proud to report that, in the past 12 months, 95 per cent of its total spend with suppliers was on 30-day or less payment terms and today’s announcement will ensure all of our SME vendors will be paid sooner.” “Whether you’re a committed
CIMIC’s Basin stranglehold
Cimic Group continues its domination of contract mining across the Bowen Basin, with yet another of its divisions securing a multi-million dollar contract. CIMIC Group’s mineral processing company, Sedgman has won a year-long $25 million contract to operate QCoal’s Byerwen coal handling and preparation plant (CHPP). The Qcoal CHHP is in the commisioning phase, and according to Sedgman Managing Director Grant Fraser, the contract will build on previous work. “Sedgman’s strong working relationship with QCoal has developed over many years,” he said. “We have been closely involved throughout the Byerwen project from the engineering, procurement and construction of the stockpile,
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train load-out and CHPP. “We are pleased to be completing the cycle by operating the plant.” Sedgman will join Cimic’s other mining contracting business Thiess who earlier this year secured a $480 million extension to its existing contracts at Qcoal’s Sonoma, Cows, Jax and Drake mines (Northern Hub) South of Collinsville. Under that agreement, Thiess will provide mine planning, drill and blast services, overburden removal, and coal mining services. The Qcoal contract is the latest in a long list of contract wins by Thiess - and by extension CIMIC - who have closed significant deals with Coronado Coal, Anglo American, BMA at Peak Downs, and Jellinbah in the last two years.
supplier of ours from Mackay, Moranbah, Nebo or Rockhampton, Peabody aims to forge even stronger business relationships with you into the future. “We found that some businesses were waiting too long to receive payment and we’re on a mission to improve our internal systems to help prevent future delays. “We wanted to prioritise our small to medium vendors first because we know being paid on time is crucial to business profitability.” Similarly in Gladstone, the Rio Tinto owned QAL has softened its stance on payment terms last week moving from 45 days from the end of the month (so possibly 75 days if everything goes to plan) to 30 days net for suppliers whose total business with QAL is less than a million a year. QAL chief financial officer Chantelle Essa said the change was implemented on November 1 and affected 95 per cent of suppliers. “We recognise that cash flow can be a barrier for some businesses, so we wanted to ease
this burden for our suppliers,” Ms Essa said. “Our procurement spending is vital to many small businesses in Gladstone, and we understand that lengthy payment terms can create cash flow pressures for small to medium-sized suppliers.” However, one mining support business told Shift Miner they remain wary. “I guess we are viewing it as a move in the right direction, and that’s a good thing,” she said. “I heard a BMA presentation last month, and finally they seemed to be listening to what we are saying, rather than dismissing it out of hand. “But that said, right now we are still waiting months to get paid, at a time when we know mining companies are making extraordinary profits. “Relaxing this position is not something the big miners should be congratulated for, they should be ashamed of their behaviour in 2016. “After all, no one really thinks they wouldn’t do it again in the future.”
2019 sweet spot Mackay based contractor Mastermyne is optimistic about the future as it reflects on what’s been a watershed year for the mining support sector across Central Queensland. The turnaround in mining activity has not delivered anyone quick riches with continued tight margins, and most businesses trying to make do with a skeleton staff from the worst days of the downturn. Despite this, CEO of Mastermyne Tony Caruso says it feels like the worst is behind them. “I think everyone would say it’s been a positive year,” he said. “Everyone has seen quite a bit of revenue growth, and Mastemyne has had a strong year as well,” he told Shift Miner. “Last year we had revenue of just over $200 million, and this year we are guiding to revenue of $230 to $250 million. “So we have seen good growth,
and what I like at the moment is that it feels like a nice sort of sustained shift, rather than a really aggressive shift up that is almost invariably followed by an aggressive shift down.” Perhaps the most remarkable element of the most recent mining boom and correction was the astonishing rise and then fall in prices for everything from machinery to wages. This time around, Mr Caruso says the rises have been more reasonable, and a move to a stronger part of the mining cycle has not been accompanied by “ridiculous” inflation. While much of the recovery seen so far has focussed on maintenance and operational support for record-breaking output from existing mines, he says shelved plans for greenfield projects are being dusted off. “The other thing that is giving us confidence is that there are a number of greenfield projects that are starting to be dusted off,” he said. “We see some activity around Aquila’s Eagle Downs project, Springsure Creek and a few other underground projects. “There is a nice pipeline of projects starting to emerge in Queensland and NSW.”
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Invisible miners do count
The Local Government Association of Queensland (LGAQ) is calling for governments to include nonresident FIFO or DIDO populations when deciding future funding. Currently, the government only considers the full-time resident population, which for many resource communities might be only half the total number of
people living in a town on any given day. The LGAQ resolved to make the issue part of their policy agenda this year after Mayor of the Isaac Regional Council Anne Baker moved the motion. She said the current rules are short-changing most mining communities.
“In Isaac, we have a permanent population of about 21,000, but on any given day an additional 10,500 workers are also living in temporary accommodation and camps in or near our communities,” she said. “For every two residents, we have an additional ‘serviced’ resident who is not counted
for the purposes of calculating government funding. “That’s essentially a funding shortfall of 33% which places affected communities in a position of disadvantage. “This issue needs to be addressed if we want sustainable regional resource communities, and is fundamentally an issue of fairness and equity.” The revival of the Central Queensland mining sector has translated into a more than 10% increase in the number of nonresident (FIFO or DIDO) workers in the Bowen Basin. According to recent figures from the Queensland Government Statistician’s Office (QGSO), on a given day in June 2017, around 15,000 people travelled to the Bowen Basin for work. Given the roster systems using in mining that means that something like 30,000 people are employed in the resources sector on a fly-in-fly-out or drive-indrive-out basis. This invisible population can put considerable pressure on local government infrastructure during their time at work.
BMA and BMC transport Galilee CSG joint venture
Bus operator Greyhound has won a multi-million dollar contract extension providing bus services to BHP’s Central Queensland mines for the next five years. Under the deal, Greyhound Resources will bus miners wherever BHP needs them to go, although mostly it involves taking them to and from nearby camps to mine sites. According to Greyhound Resources CEO Alex de Waal, the contract renewal recognises their efforts to inject technology and comfort into their bus services. “I think BHP is very much driving the safety standards in the resource sector, and helping us strengthen our competence in fatigue management,” he said. “That allows us to exceed
the requirements of the chain of responsibility legislation. “Coach travel is not what it was 10 or 20 years ago; we have onboard Wifi, toilet facilities, and leather seats that recline. “So the prospect of travelling by coach is becoming more convenient and comfortable and offers a greater degree of safety.” According to Greyhound, a concept bus they developed in 2016 that embedded a suite of new technologies like telematics, driver fatigue, passenger seat belt, and real-time tyre pressure monitoring, has been critical in winning the contract and redefining safety. As a consequence, the 49 new coaches and 10 Mitsubishi Rosa’s, they will acquire to fulfil this contract will all be equipped with the Greyhound “Techbus” safety features. Despite the win, Greyhound Resources says they continue to look for other new clients as mining ramps up. “We see a lot of demand, and are writing a lot of tenders and quotations,” Mr de Waal added. “We are seeing the marketplace being stimulated at the moment and significant growth.”
A joint venture seeking to be the first to exploit the Galilee Basin’s vast coal seam gas reserves has commenced early survey work for its preferred gas pipeline, and begun talks with local landholders and councils. Gas explorer Galilee Energy and Chinese-controlled gas and electricity business Jemena entered a non-binding agreement a year ago with the intent of harvesting gas from the Glenaras gas fields North West of Barcaldine and then piping it across the Bowen Basin to Injune. As a small explorer, Galilee Energy has high hopes for their Glenaras gas project. “Prices [for gas] have increased over the last ten years from as low as $3/GJ to current levels of $8 to $11/GJ, with the production of new onshore gas volumes challenged by
regulatory restrictions currently still in place in Victoria and New South Wales,” they said. “The structurally short, east coast gas market presents an enormous opportunity for the company’s gas assets. “With very few other projects in the appraisal or development stage currently capable of meeting this shortfall, Galilee Energy is well placed to capitalise on this large potential given the size of our resource.” According to Galilee Energy, they have one of the most substantial uncontracted contingent gas resources on the east coast, which they want to develop into a significant gas reserve. However, this will require further drilling and assessment because in the gas sector, contingent resources, while potentially recoverable, are not yet considered mature enough for commercial development. For its part, Jemena says having access to a vast Galilee gas resource would strengthen the case for an extension to the pipeline they are currently building from the Northern territory to Mt Isa.
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14 December 2018
Around Town
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Around Town
December 2018 15
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16 December 2018
Around Town
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Rolleston sale cancelled
The Rolleston coal mine has been taken off the market, after the mines owner Glencore was unable to agree on a price with a range of potential buyers. In a short statement Glencore said the mine was on track for record production and possibly profits this year, and despite significant interest from buyers they had decided to abandon selling it. “While there had been significant progress made with a number of parties interested, no agreement has been reached,” they said. “Rolleston is delivering significant value to our Australia coal portfolio and given the ongoing strength of the global seaborne thermal coal market, the mine is making good margins and is on target for a record saleable coal production of 15.5 million
tonnes this year.” The move to sell the Rolleston mine was not in anyway a move away from thermal coal mining generally for Glencore. After losing a bidding war with Chinese government backed Yancoal to buy Rio Tinto’s NSW based Coal and Allied thermal coal business earlier in the year, Glencore struck a deal that gave it a 49% stake in the business. They also had mining leases approved for the proposed Wandoan Mega mine in the Surat Basin, and bought the Hail Creek mine from Rio Tinto. Glencore is currently the world’s largest miner of seaborne thermal coal, and the Rolleston coal mine has government approvals that would allow Glencore to extend the mine life by more than 20 years.
News
Shortage of skills
A report has found that staff are abandoning small and mediumsized business at an increasing rate creating long-term problems for growth. The 2018 Staff Retention Report by the Insitute of Managers and Leaders is not industry-specific, however, it says the hardest hit businesses are those with turnover between $5 and $10 million. Research General Manager Sam Bell told media that across Australia, employees are chasing better money which makes it very hard for smaller businesses not seeing improved revenue. “If you look at those factors, small businesses are probably disadvantaged against larger,
medium-sized businesses or even publicly listed companies,” he said. “Salary growth is difficult to support from a small business perspective and seeking a new challenge can be hard in a small business. “A lot of businesses are reluctant to put huge amounts of money into investing back into their staff when they’re losing 10 per cent of their staff every year.” With the improved fortunes of mining in the last two years, demand for skilled people in Central Queensland has skyrocketed with most businesses in the mining sector listing it as one of their primary concerns. However, a more stable period might be coming with the latest figures in the DFP Mining and Resources Job Index pointing to slower growth in demand for people. “September saw the first fall in job vacancies in the mining and resources sector for 16 months,” they reported. “A fall of 1.3% brought the national index to 92.51. “Permanent job vacancies fell by 2.2% while temporary & contract roles rose by 0.3%.”
December 2018 17
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Around Town
Landmark for Labour Hire? A former Workpac labour hire employee at BMA’s Goonyella Riverside mine has successfully had her “demobilisation” from the mine classified as an unfair dismissal by the Fair Work Commission. Machinery operator, Kim Star, had been employed by Workpac under a labour-hire contract supplying the BMA owned mine for about four years when she was demobilised late last year. On the 13th November 2017, Ms Star received a letter from Workpac advising her that BMA had told WorkPac “that they wish to demobilise” her position immediately, putting her out of work. However, the letter did say the termination was “nonperformance related” and that she could seek other work through Workpac. The court examined the timing of the “demobilisation”, the use of the word “termination” and the fact that BMA gave no reasons to Workpac regarding the sudden action. During this period, Ms Star gave evidence regarding her time at the mine, outlining some incidents that she felt may have had a bearing on her employment. The first involved a rejected request for leave over Christmas in October 2017. Ms Star said she was aware BMA management “would not have been happy” about it given she was a casual employee of a contractor. The second incident on the 9th November involved a safety incident where Ms Star refused to unload her machine in a designated area at night because she felt there was inadequate lighting. Her
immediate supervisor disagreed, although after the issue escalated, lights were assembled as she requested. However, by the time this happened, she was on a crib break and did not return to the area as she was on a different machine after her break. She recalled a conversation with her supervisor during her break. “I may have come across angry on the radio, but I was just very frustrated as the grader driver should have known what the SOP were for the task the grader was performing,” she recalled saying. “I thought it was ok to do it the way you were doing it without the lights because the grader was spotting you and the ramp was 60 metres wide,” the supervisor responded. She also told the court the mines Open Cut Examiner arrived advising her that he had told the grader driver that he needed lights and signage in order to discharge the load safely. She also claimed he also pointed out that she had been “assertive” during the conversation about the issue on the two-way radio. Ms Star responded that she had been firm during the discussion because she was concerned about not breaching the SOP. The court also heard evidence from three other people at the Goonyella Riverside mine that following Ms Stars removal from the mine, other labour hire
employees had been engaged to “undertake the same or substantially the same work”. Workpac argued that Ms Star’s employment only ended when she expressed disinterest in other roles presented after her removal from Goonyella Riverside; However, Deputy President (DP) Asbury rejected the argument saying that the terms and conditions of employment provided by Workpac did not constitute an ongoing work contract. “Rather it is a contract in the form of a standing or framework agreement under which an employment relationship or a series of employment relationships may be entered into on particular sites or at particular locations, on either a casual or a maximum term basis,” she said. “Further, the employment relationship for each assignment is established by a letter of offer, when the assignment ends, so does the employment relationship. “This was not a case of an employee moving around a variety of sites for relatively short periods.. Ms Star was employed by WorkPac to work at a particular site and only at that site and Ms Star’s offer of employment, related only to one site.....and the terms on which employment was offered make clear that when the assignment ended so would the employment.” Having therefore established that Ms Star was dismissed from her employment, DP Asbury then concluded that her dismissal was unfair. “The documentary evidence .... allow an inference to be drawn that the reason for BMA’s directive that
Ms Star be removed from the site was related to her conduct on that shift,” she said. “It’s more than coincidental that the email from BMA stating that Ms Star was no longer required at the mine effective immediately was sent to WorkPac on 10 November 2017 at or around 9.38 pm. “Based on the facts, I have concluded...it is more probable than not that Ms Star’s dismissal related to a conduct issue. “Ms Star was dismissed before any attempts were made by WorkPac to redeploy her and I do not accept that any inability to redeploy Ms Star was the reason for her dismissal. “The dismissal was unfair on the basis that there was no discussion with Ms Star about the decision to remove her from the site and ..there was no attempt made to discuss the directive with a relevant manager of BMA or to confirm the reason for the directive or whether the contractual provisions between BMA and WorkPac with respect to unsatisfactory performance by WorkPac personnel applied.” However, the victory might be a hollow one for Ms Star because as the court conceded, Workpac, do not have the power to force BMA to reinstate her to her former position if she chooses to pursue that outcome. If they did - which seems unlikely - she would only receive around $5000 in wages back payment, because ironically, her new job in the mining sector is higher paying.
Surat Basin gas sector building
Senex says it expects to make a final investment decision about the Western Surat Gas Project (WSGP) in the next six months. The WSGP is located just North of Roma, and - if built
18 December 2018
- could see the development of around 1000 coal seam gas wells over thirty years, across nine hundred square kilometres. In August, Senex finalised all the required government approvals to develop the 425-well-stage-1, and have spent the time since, appraising the viability of the proposed project. Senex has previously said stage one would happen over about five years, with the compressed gas collected and piped east for export out of Gladstone or into the East Coast
domestic gas network. Back in 2015, Senex sold off part of the Western Surat Gas Project to Gladstone based gas exporter Santos GLNG for around $42 million and signed a binding 20-year gas supply agreement. Senex says recent agreements between the two companies will expedite development. “Senex and GLNG agreed on separate gas sales arrangements, paving the way for a final investment decision for an initial 16 TJ/day gas development with expansion
potential,” they said this week. “This initial development will focus on the Glenora and Eos blocks, with expansion potential into the neighbouring Mimas and Tethys blocks, now collectively referred to as Roma North. “The gas sales arrangements provide flexibility and optionality for initial development of Roma North, with development of the remaining WSGP acreage subject to a future final investment decision.”
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Around Town
THE DINGO RACES AND TRAP THROWING All dressed up
Warren Draper and William White
(L-R) Abigail, Caitlin and Melissa Briggs
(L-R) Dan Acton, Julie Lambie, Shannon Dunne and Sandra Acton
Kirralee White and Nicki McClymont
(L-R) Luke and Annie Metcalfe, Ashlea Morgan and Mitchell Reeve
(L-R) Georgia McNamara, Asher Kirk and Jane McNamara
(L-R) Maddy and Annette Hatton, Allie and Evie McLaughlan
(L-R) Kieran Mahoney, Tahlia Abaw, Anthony (L-R) Joanne Carey and Thomas and Canning, Jess O’Hara and Fiona Maltery James Cragg
(L-R) Loiuse and Genna Dunne, Kyran Tobin, Stacey Clatrke and Caleb Green
(L-R) Joanne Truelson, Mai Olive and (L-R) Kyle Jarrett, Reece Flesser, Elliott Griffin, Paul Duncan and Darby O’Sullivan Peter and Therese Foley
(L-R) Joanne and Brett Truelson with Portia Under 13 years was won by Layla Bulman Ladies Over 35 Runner up was Jen Marsh And Lexi Draper from Rockhampton and Winner Emma Files
December 2018 19
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FRANK THE TANK’S
Streaking good love advice
Dear Frank, I have been seeing a really great lady for a few months now, and everything has been going really well. Except for one thing - she has an undisciplined 14-year-old son who is rude to me, rude to his mother, and rude to just about everyone else he meets. I am really serious about this woman, but I feel like I need to straighten this kid out for the both of us to be happy. Is it wrong to play ‘stepfather’ after such a short amount of time? John, Rockhampton Dear John, This is quite a coincidence, my lady friend and I play ‘stepfather’ sometimes. She dresses up in a school girl costume and I pretend to come home drunk and help her with her ‘homework’. We discovered it in a book called 100 Highly Inappropriate Role Plays, but that’s a story for another time.
20 December 2018
In short John, no, it is not wrong to want to discipline your partner’s child, in fact, I frequently find myself wanting to discipline complete strangers’ children. Recently I was grocery shopping when I came across an alarmingly obstreperous child in the frozen foods section. His poor mother was so embarrassed, she had no choice but to walk away from him in an attempt to force him to break the tantrum and follow her. At that moment I decided that something had to be done, someone needed to take action in an attempt to straighten out the younger generation, and who better than me? While his mother’s back was turned I abducted that child and have been keeping him in my garage ever since. On a daily basis he is taught various life lessons (Tuesday is arts and crafts). When I feel he is ready to return to his mother I will release him back into the frozen foods section where I found him. Now, I’m sure there are some softies out there who consider this course of action a
little too heavy-handed, and I can tell by all the ‘Missing’ posters in the main street that his parents are not on board with my plan, but I can virtually guarantee my methods will get results. In your case, John, I don’t think kidnapping is the answer. I recommend you start actively letting this teenager know who’s boss. The next time he sasses you, sell his Playstation on eBay, or slash the tyres on his bike. If these tactics are ineffective you can always resort to more desperate measures. For example, you could force your prospective stepson to wear a dress to school every day. He’ll endure so many beatings in the playground that he’ll be too exhausted to cause any trouble at home. As a word of warning though, there is a slight chance this course of action could promote a tendency toward transvestism. However, in my view, you are better off with a well-behaved son who dresses as a girl, than an ill-behaved, regularly dressed son. Frank
SENSIBLE SUSAN
John,
This is an all too common problem for couples with children from previous relationships. You should not try to replace the boy’s father, but instead attempt to form a bond with him as a friend or mentor. Hopefully, if he comes to respect you as a role model, he will be more receptive to your advice regarding his ill-behaviour, and may be more likely to settle down. Talk to your partner about ways in which you can address her son’s behaviour together, that way you should be able to devise some strategies regarding appropriate punishments for poor behaviour, and positive reinforcement for appropriate behaviour. Susan
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MadMumzie.com
CHRISTMAS A PAIN OR PARTY?
IT’S THAT TIME OF YEAR AGAIN! WHAT DO YOU THINK ABOUT CHRISTMAS?
Some love it, and others hate it or want it to go away. We can put ourselves under so much stress over all that goes with it. It would be easy if we were like the Real Miner, he doesn’t do birthdays and Christmas, but I’m working on him! We both worked one year, and I enjoyed our romantic dinner at the roundtable at the mess on Christmas night. At least we were together. I do love Christmas. Mum goes all out and decorates everything, so it’s always been a special time for our family. Traditions such as
being able to open one present on Christmas Eve came into my little family once I had kids - mainly to stop the nagging and perhaps snooping for hidden treasure, like my sister and I did (We only did it once, I promise Mum). However, I don’t recommend it because you spoil the surprise! Christmas lunch for us has always been ham, prawns, cold chook, and lots of salad, especially Mum’s famous potato salad. We also have the traditional picture in the kitchen with a knife each as we are prepping the feast! What about on crew? A few times I have been involved in secret Santa which was fun. The one Christmas I worked we were treated at crib to platters of sandwiches and cold cuts…from the mess which were quite average really, but still a treat. Meanwhile, the permanents who did not have to work were feasting on seafood and gourmet goodies. Well, that was the talk on site, but I still tried to enjoy my special day.
Does your crew have a Christmas Party? Are you organised enough to even pick a date? So many decisions to be made. When, where, what and who. A few times our crew never quite got around to it, so we just had drinks at the wet mess during our last swing before the big day. I have seen many variations over the years. Do you have partners welcome and go out at night? Family day with a spot of cricket and a BBQ? Or weekend fishing, strippers-no partners allowed? As one legendary party organiser told me: “I think it’s fabulous, we all get together to celebrate and make new memories for the next year”. Let’s hope you make some good memories this year with your family and your “other” family at work. Merry Christmas to all xxx Mad Mumzie. Cheers MM
Note from the editor Enjoy this? You will love her award winning podcast “Beers with A Miner”. Last month MM was a finalist in the 2018 Australian Podcast Awards. We asked her what it was like to be recognised. “The nomination came as a complete surprise to me. I headed down to Melbourne for the finals, and had a fantastic time, even though I didn’t win my category,” she said. “Interestingly, fellow Podcasters were amazed that I drove those big trucks, and more so, had a podcast about it! “Thanks to Saraya D’Arth, underground miner and WIMARQ awards finalist from Broadmeadows, your episode 33 was the one I entered. “And of course all my other guests are great too.” Search for “Beers With a Miner” in your favourite Podcast app, or head to MadMumzie. com/beers and push play.
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Puzzles
CROSS WORD
SODOKU
Across
Down
1. Illness 5. Absorb (4,2) 9. Beliefs 10. Actress, ... Lansbury 12. Overrunning 13. Pilgrim’s goal 14. Self-satisfied 16. Preschool play area 19. Whenever 21. Knuckle of veal stew, ... bucco 24. Crack-filling mortar 25. Sweetener source (5,4) 27. Gangways 28. Amazing skill 29. Stop 30. Kitchen hourglass (3,5)
1. Canada’s Nova ... 2. Tribal leaders 3. Carpentry spikes 4. Transmitting 6. Skin preparations 7. Patellas 8. Behaves affectedly (4-4) 11. Becomes mature 15. Wetness 17. Leading unit 18. Summary 20. Comfortable 21. Continuous 22. Rarely 23. Racehorse with stamina 26. Cook in oven
Across: 1. Sickness, 5. Soakup, 9. Opinions, 10. Angela, 12. Infesting, 13. Mecca, 14. Smug, 16. Sandpit, 19. Anytime, 21. Osso, 24. Grout, 25. Sugarbeet, 27. Aisles, 28, Wizarddry, 29. Desist, 30. Eggtimer Down: 1. Scotia, 2. Chiefs, 3. Nails, 4. Sending, 6. ointments, 7. Kneecaps, 8. Playacts, 11. Ages, 15. Moistness, 17. Vanguard, 18. Synopsis, 20. Esay, 21. Ongoing, 22. Seldom, 23. Stayer, 26. Roast
THE “GREATEST AUSTRALIAN IN THE CRIB ROOM” QUIZ. 1. How many ships were in the First Fleet? 2. What year did Cyclone Tracy hit Darwin? 3. Who invented the bionic ear? 4. Where was Ned Kelly’s last stand? 5. Who was Australia’s first Aboriginal Senator? 6. What date did “new” parliament house open? 7. Which Australian promised to “Go all the way with LBJ”? 8. In what year was gold first discovered in Victoria and NSW to begin the “Gold Rush”? 9. Which Australian won a Nobel Prize for immune defence research? 10. In what year was decimal currency introduced?
1.11 2. 1974 3. Professor Graeme Clark 4. Glenrowan 5. Neville Bonner 6. 9th May, 1988 7. Prime Minister, Harold Holt 8. 1851 9. Professor Peter Doherty 10. 1966 ANSWERS
22 December 2018
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Around Town
THE VARIETY BASH
Gladstone to townsville with 110 cars participating
Former Blackwater Resident John Samuel with his 1978 Holden HZ
(L-R) Brad and Dani Dears, Kez and Lewy, (L-R) Phantom Express with Jason, Scott Casey, Courtney, Baxter and Zali Bowers and Brett with Owen Ross
(L-R) 1952 Hudson crew Ja, Rod, Brad, Nev, Phill and Sao
(L-R) Darren Vasi, Paul Steendyk and Simmo, Sharni, and Teresa Simpson with Damien Lacey with their 1965 Ford Galaxy their 1975 Holden HJ
(L-R) Graham, Robert, Alf, Len, Sam, Madonna and Chubb with their 10 seater Troopy
Josh Manzel-Mann from Mackay with his 1966 Holden HR
(L-R) Leggo car, HR Holden `966 with Darryl, Richie and Lawrence
The “Flying Pie� has a pie oven in the back (L-R) CHRC Mayor Kerry Hayes, Sam Fyfe, Marsha Streelow and Kelly Valcovich heated from the motor Kirsty Arstall and Councillor Paul Bell
The Margarita Crew who have been participating for 17 years
Olaf Feigel better known as Dame Edna
Bill and Ben the Flowerpot men
December 2018 23
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Around Town
Another Galilee approval
Another super-sized Galilee coal project has reached a significant development milestone this week after the Queensland Co-ordinator General conditionally approved the China Stone EIS. The Chine Stone project is owned by Macmines which is controlled by Chinese billionaire Yao Junliang through his energy company Meijin. Meijin plans to use the mine to supply their Chinese based power stations. Like other nearby proposed Galilee projects - the scope is staggering. It includes a complex of both underground and above ground coal mines producing around 61 million tonnes of coal a year (at peak production) for possibly 50 years. It would generate about 4000 jobs in construction, roughly 3500 during operations, contribute nearly $200 million in annual royalties, and cost billions
to build. Under the conditional approval, Macmines will still have to meet some key criteria before it can get final State Government authorisation. The most notable of these conditions relate to the water and power needs. Under the current EIS, Macmines proposes to build a coal-fired power station on site to provide electricity. However, the Co-ordinator General has requested that Macmines develop and present another report analysing alternatives for powering the mine that include potential greenhouse gas emissions. While giving tentative approval to the Macmines modelling of how the mines water use will affect groundwater, they have requested other State Government authorities look more
closely at the details. “I consider the EIS groundwater assessment provides an adequate prediction of the potential impacts from mining including draw-down of water and depressurisation in landholder bores,” Coordinator General Barry Broe said. “Based on a peer review of the groundwater model presented in the EIS, I consider further refinements to this model are required to improve the prediction of groundwater impacts. “I have imposed a condition requiring a groundwater model revision and updated impact assessment report to be provided prior to the public notification of the Coordinator-General’s evaluation report on the environmental impact statement EA application, enabling DES and the Department of Natural Resources, Mines and Energy (DNRME) to assess the information. “No impact on groundwater resources would be authorised until an EA is issued complete with groundwater conditions, the Commonwealth’s EPBC Act assessment is completed, [and] an Associated Water Licence has been issued by DNRME.” Within the current plan are some astonishing proposed pieces of infrastructure, including an 8.7 kilometre long, 400 meters
deep, open cut mine and two underground complexes with longwall panels reaching 4.5 kilometres. There will also be a 100 million cubic metre tailing storage facility with a bank height reaching 34 metres, three supercritical 350MW power stations, an airstrip capable of handling 200 plane loads of people a week, and a 3000 room mining camp. The project still requires Federal government approval, the granting of mining leases and other licences by the State Government, and of course a $7 Billion financial commitment by the project’s owners. The project area is approximately 190 km west of Moranbah, and access to the site is via 130 km of unsealed road from the Gregory Development Road. The nearest townships by road are Charters Towers (285 km to the north) and Clermont (260 km to the south-east). “I conclude that there are significant local, regional and state benefits to be derived from the China Stone Coal project and that environmental impacts can be acceptably managed, minimised or offset, through the implementation of the measures and proponent commitments outlined in the EIS,” Mr Broe concluded
lifeblood of the mining industry. The jump in exploration will lead to longer mine lives and hopefully future mines,” he said. “Exploration rose in all jurisdictions, with Western Australia and Queensland particularly notable. “In Western Australia, mineral exploration expenditure grew by over $80m compared to the previous quarter, a 31% increase. “In Queensland, exploration expenditure increased by $13m, a 24% growth quarter on quarter.” “Overall an imbalance between greenfields and brownfields exploration remains with 64% of drilling in already explored brownfield locations. “In the long term, this imbalance must be addressed if Australia is to find the future mines.”
The Chief Economist for the Federal Government predicts Australian metallurgical coal prices will ease from US$197 a tonne in 2018 to US$145 a tonne by 2020, due to increasing global supply and reducing demand from China. However, regarding total revenue to Australia, this is likely to be partially offset by increased production in Queensland where even at the lower end of the price range most mines would be viable exceptionally so - if the Australian dollar continues to fall. In its Resource and Energy Quarterly, the Treasury Office listed some new projects as being symbolic of the production increases forecast in Australia “Several idled mines are expected to restart over the outlook period, including Sojitz’s recently acquired
Gregory Crinum, Baralaba Coal’s Baralaba, and Bounty Mining’s Cook operations,” they said. “The ramp-up of Qcoal’s newly-started Byerwen mine and Stanmore’s Isaac Plains East mine, and planned expansions and productivity improvements at Anglo American and BHP’s operations are also expected to support production growth over the outlook period. Elsewhere in the world, Russia and Mozambique are expected to develop some significant metallurgical coal mines, the USA is expected to increase production for the next two years before falling away, and Mongolia’s coking coal deposits are likely to remain underutilised because of difficulties of trading through China.
Drilling up Coal crystal ball
Money spent on mining exploration in Queensland has increased around 25% since this time last year, in yet another sign that industry is confident that strong prices for coal, gold and copper will continue. Total Australian mineral exploration expenditure rose 28.4% in the three months to June, with greenfields exploration increasing nearly 40%, and brownfields exploration 24.1%. Notably, the total metres drilled across all sectors in Australia is around the same level it was in 2010 - just before the once in a generational mining boom arrived around 2012. Warren Pearce, Chief Executive Officer, Association of Mining and Exploration Companies (AMEC) said the trend was encouraging. “Mineral exploration is the
24 December 2018
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THE BEST PLACE TO FIND GOOD GEAR
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1970 CAMARO BIG BLOCK
2002 HSV MALOO UTE
Excellent condition.
Tough Dog 2 inch lift 350kg extra carry4 post Tuff bullbar and side rails. GME UHFLightforce genisis spotlights3 inch exhaustTunit power chipMickey Thompson ATZ P3 tyres 80%.
1970 camaro big block 366 Holley 750 carb th350 transmission rebuilt 3 years ago have receipts new exhaust under full rego so it is roadworthy good reliable motor an car no oils leaks car is clean price is negotiable!
Regretful sale but up for sale is my HSV Maloo Ute! Straight and tidy for her age!
$ 82,000
$ 60,000 Call: 0431 279 885
$ 40,000 Call: 0428 927 446
$ 13,000 Call: 0432 473 773
Call: 0427 417 227 CAR FOR SALE
2009 AUDI Q7 4.2 TDI QUATTRO
CAR FOR SALE
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V8 with the ECONOMY of a 6, 4d wagon 7 seater. Originally sold for $127,000 the build quality is first class cannot be compared to the local brands, drive in style and comfort no rough ride.
$ 26,900 Call: 0409 485 265 CAR FOR SALE
CAR FOR SALE
CAR FOR SALE
80 SERIES LANDCRUISER
4X4 PX XL 2012 SINGLE CAB
Has rego and rwc Good all round condition. One door has a dent. What you see is what you get. Fridge can go with vehicle for extraTriple battery set up. Table built on door 2 inch lift.
Ford Ranger 142000kms 5 Cylinder 3.2Ltr Turbo Diesel engine- pre EGR6 Speed manual- updated gearbox and a new HD clutch fitted at 115000kms Heavy Steel tray with drop sides Ford Wildtrack Wheels 18�.
$ 8,500
$ 20,900
Call: 0448 524 964
Call: 0427 057 661
CAR PARTS FOR SALE
CAR PARTS FOR SALE
2017 TOYOTA LANDCRUISER UTE
KOMBI 1974 TRANSPORTER
VINTAGE RUGBY TOURER CAR
TURBO ENGINE AND GEARBOX
Single cab.17,000km, custom fully welded alloy tray with tool boxes and 40l water tank in the headboard (the tray also comes with sides). Spare tyre under the tray and canvas seat covers fitted since new.
2 dismantled engines 1x 1.8 Litre and 1 x 2.0 LitreRear Tailgate, Engine cover and 1 door sandblasted repaired and epoxy primed, then 2 pack primed ready for paint. Rear Folding seat in rare excellent condition.
Various tourer panels, timber framing, chassis, 6 cylinder engine etc. Call for more information 0409 050 178. Price available for individual items. Can deliver to Brisbane or Sunshine Coast area for a delivery fee.
TD42 turboed engine, gearbox and transfer case. 320000 klm. 11mm injector pump. New starter motor and alternator. Was running 16psi. Heavy duty clutch. Removed from rollover gq patrol.
$ 4,999
$ 2,000 Call: 0429 473 314
$ 74,000
Call: 0427 823 673
Call: 0417 868 572
TRAILER FOR SALE
BIKE FOR SALE
BIKE FOR SALE
$ 5,900
Call: 0407 638 406 BOAT FOR SALE
WORK TRAILER
HARLEY DAVIDSON ROAD KING
RESTORED 750 K2 HONDA 4
STESSCO 355 BREAM
Custom Made, dual wheel, electric brakes, spare tyre, Registered 05/19. Excellent condition..
Reluctantly selling my comfortable 2010 FLHR Road King. Been a great bike for long rides and easy around town as well.
Ground up restoration in 2011. All K2 with refreshed K3 engine and gear box. travelled 1200klm since restoration .
$ 12,800
$ 17,500
Stessco 355 Bream. 15hp Honda electric start/trim/tilt. Full floor. Bulge pump. 2x fuel tanks. Sea trail trailer vgc. Garmin fish finder. Rod holders. Padded seats. Rego until 02/19.
$ 15,500 Call: 0418 774 514
$ 4,500 Call: 0411 809 606
Call: 0401 184 233
Call: 0413 835 630
SELL YOUR ITEMS FOR FREE. BECOME A SUBSCRIBER December 2018 25
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THE BEST PLACE TO FIND GOOD GEAR
BOAT FOR SALE
BOAT FOR SALE
BOAT FOR SALE
BLOKART FOR SALE
QUINTREX HORNET TROPHY 480
STACER 409 BASS ELITE
4.81 QUINTREX FISHABOUT
BLOKART IN GREAT CONDITION
2010 4.8m with 2011 75hp Mercury optimax with 588 hours.- Motor guide Xi5 80lbsLowrance HDS 12 gen 3 with structure scan sonar and 80/200 sonar- Lowrance HDS 7 gen 2- Navionics silver card.
2010 4m Stacer Bass Elite Side Console (same as Hornet Trophy) Sitting on 2015 Quintrex trailer (original was stolen) 2010 40hp Etec with 139hrs. New Lowrance Elite 7Ti with Totalscan Transducer.
As new with 6hrs only run in time on mercury engine. Many premium factory upgrades extra eg: mercury 60hp 4cyl 4stroke (6060elpt efi command thrust).
Production Blokart available for sale.
$ 23,500 Call: 0439 507 881
$ 17,000 Call: 0429 496 182
$ 29,500 Call: 0400 682 813
$ 2,000 Call: 0403 936 700
FISHING LINE FOR SALE
TRACTOR FOR SALE
with
5.5m
sail
TRACTOR FOR SALE
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BRAID FISHING LINE
JOHN DEERE 4020 TRACTOR DIESEL
Approx 2500m. 1) Dyneema 50LB 1000m - new 1* Dyneema 30LB 1000m - newPlus approx 50% of 50LB 1000m left over Plus throw in. 2) line counters.
Power shift 6 cylinder Serial No. 22T89220. Mostly restored. 24v converted to 12v. Hydraulic pump & steering motor overhauled. Sand blasted and painted new electrics and gauges, Oil bath air cleaner.
Tractor is working order and has hydraulic bucket attachment and blade.
$ 175 Call: 0412 335 059
$ 22,000 Call: 0407 488 174
$ 4,000 Call: 0458 022 720
EXCAVATOR FOR SALE
DOZER FOR SALE
FORDSON TRACTOR WITH BUCKET
Tractor in good condition.
LOADER FOR SALE
FORKLIFT FOR SALE
2002 EX1200-5 HITACHI EXCAVATOR
KOMATSU 355-3 DOZER
MASSEY FERGUSON LOADER
NISSAN 3.0 TONNE DIESEL FORKLIFT
EX1200-5 - Hitachi Excavator - Serial Number 17FJ001089 - Low Component Hours Lots of Repairs Done - Auto Lube Fire Suppression Mine Specs.
In great working order - complete with fire suppression - mine spec - Ready for work. If more information is required please contact Graeme on 0447 739 611.
PRICE DROP NOW ONLY $10,000 3.0 Tonne Diesel 2 Stage Mast (4,500mm lift height) Solid Tyres Side Shift Reverse Beeper Work Lights Good Condition.
$ 275,000
$ 99,000
This loader is in perfect mechanical condition, it has just had bucket rebuiit, new floor and cutterbar, pins and bushes. All rams have just been resealed. Axle kingpin and bushes replaced.
Call: 0749 543 155
Call: 0749 543 155
PRESS BRAKE FOR SALE WOOD PROCESSOR FOR SALE
$ 8,900
Call: 0419 601 959 LATHE FOR SALE
$ 10,000 Call: 0429 849 948 HOUSE FOR SALE
100T PRESSBRAKE
TAJFUN FIREWOOD PROCESSOR
HAFCO METAL MASTER LATHE
BURRUM HEADS, FRASER ISLAND
Hammerle 100t press brake.
RCA 350, 2006, Serial No; 50, runs on phase 3 motors, 4 way splitter, incline belt, live deck, Cut 350mm size timber, wouldn’t be hard to change to a bigger balde, spare blade, about 6m trommel
CL 75 560 x2000, 10 years old with limited use, well maintained and in very good conditon. Instruction Manual and parts list included.
4 Bedroom House for Sale 32 Lucas Drive Burrum Heads near Fraser Island. Corner of Burrum River and Great Sandy Strait surrounded by National Park. Great Location..
$ 11,000
$ 22,000 Call: 0427 034 060
$ 16,000 Call: 0746 265 687
$ 420,000 Call: 0457 888 131
Call: 0429 810 037
SELL YOUR ITEMS FOR FREE. BECOME A SUBSCRIBER 26 December 2018
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E XPERIENCE MORE Air Con WiFi Gym Bar Shop Nestled in our village gardens are your welcoming living spaces designed for relaxation after a hard days work. Your home away from home awaits you with everything you could need, from wholesome meals — cooked daily by our in-house chefs — to fully serviced en-suite rooms and 24-hour gyms. Our friendly staff are always on hand to help, whether you’re checking in, shopping at the Store or having a drink at the HUB! We’re more than just workforce accommodation. With Civeo, experience more.
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