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Monday January 20, 2014 177th Edition

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DANGER! Drilling rig Why workers are being injured

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CONTENTS NEWS

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Engineers on the move

6 Spike in insolvency

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7 Sacked for being in the union 8 Green light for new frontier

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Numbers You 24 Numbers Numbers Can CountYou On** You Can CountCan OnCount

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10 2014 critical for construction 14 Mentoring: what is it and how can it help my career?

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25 18 Stuff to the Editor 9 Frank the Tank 1 20 Miner’s Trader 21 Off Shift 26 Money Matters

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Gasfield guinea pigs

By Alex Graham

AUTOMATED rigs and inexperienced drillers are on a collision course in Queensland that could see workers killed or seriously injured if training, technology and work practices are not kept in step.

According to the Queensland Petroleum and Gas Inspectorate, a shortage of experienced rig workers is fuelling a spate of incidents and serious injuries in the Queensland gasfields.

A recent analysis of its safety data from July to November last year found that of the 63 incidents reported to authorities, almost two-thirds were related to drilling rigs.

The inspectorate found crews were being trained more quickly to fill senior positions and experienced workers were dispersed among rigs in a bid to support the lack of total experience.

“While this in isolation can be addressed through training, systems and processes, there are also fundamental failures that flow from

lack of experience and knowledge in clearly identifying hazards in the first instance,” the inspectorate reported.

The rapid growth of the CSG sector in Queensland has seen an explosion in the number of drilling jobs in the Surat Basin and a severe shortage of experienced drillers.

“We have been heavily on 457 visas and trying to upskill local workers,” the Australian Drilling Association’s Melissa Greenall told Shift Miner.

“But it’s very remote work and it is a FIFO lifestyle so there are challenges.”

Ms Greenall said in the past, mentoring had been an important part of the drilling industry but now young, inexperienced workers were being pushed into senior roles faster to keep pace with industry demands.

“Traditionally there was almost an unofficial time-based apprenticeship; it would take you four or five years to prove you were capable and competent.

“But with the growth of CSG there just aren’t the mentors available anymore because the workforce is so much bigger.”

Shift Miner first looked at this issue 12 months ago when it spoke to Central Queensland trainer Natasha Fee about the dangers of new drillers moving up the ranks at great pace.

“It used to be the norm to work as an offsider doing your tour of duty, so to speak, for six or seven years before you got to touch a lever. Now, a lot young people are an offsider for six months and then they’re running a drill team.

“But when something goes wrong - if a drill bit gets sucked down a hole - they don’t know how to respond. That sort of mistake costs the company, it costs the client, it ruins reputations and it’s dangerous.”

Given the rapid increase in young, inexperienced workers, training is now paramount.

However, there is growing concern that, in most cases, the level of training being provided simply isn’t adequate.

“We’ve had a huge influx of RTOs [registered training organisations] into the industry and in some cases it is just simply sub-standard,” said Ms Greenall.

“It’s not practical-based training it’s a tick-and-flick approach.”

Ms Greenall said she was only aware of one RTO in Queensland that had access to a drill rig for course participants to train on.

“Industry needs to hold itself to a higher level of accountability. We need to see the end of fly-by-nighters and the quick and easy path to gain certification not accepted anymore.”

However, the challenges facing driller safety are far greater than eliminating cowboy RTOs. Even those training providers doing the right thing say the CSG sector is faced with the huge task of training new people to operate brand new rigs.

Ili Cava runs the Australasian Drilling Institute in Cairns and says the current

training modules are trailing behind industry change.

“We are dealing with new technology, new drilling rigs and new designs,” he said.

“They are decades in front of some of the machinery being used elsewhere in Texas and so forth.

“These machines are being tested in Australia because we’re seen as the perfect place to experiment with this brand new technology.”

As a result, there is no handbook on how to train and no overseas examples to refer to for guidance.

“We are in the process of reviewing it, but the current training package has not caught up with the new technology.

It is five steps behind the new machinery that’s being used on many sites,” he told Shift Miner.

The inspectorate also identified the current drive to introduce automation on drill rigs as part of the problem.

“The desire to improve productivity and to reduce the hazards on the rig floor has, by default, introduced further hazards such as inadequate electronic interlocks in place which would prevent inadvertent operation that could result in an incident or injury.”

It follows a death on a CSG drilling rig last year, when a young floorhand was crushed by an iron roughneck.

At the time of the incident the floorhand was fitting a dog collar around a drill collar. Witnesses said that a remote operated iron roughneck was engaged to extend while the worker was in its path.

Attempts to warn the person and stop the iron roughneck failed.

While the incident is still being investigated, it serves as a brutal warning for industry.

“How the development of a training program interfaces with what companies are doing is really critical,” said Mr Cava.

“We can’t have the left hand doing one thing and the right hand doing something else.”

Early signs of coal industry bounce-back FOR the first time in more than 12 months, coal mining majors in Queensland are looking to recruit low-level engineers.

At the start of 2013, there was a complete recruitment freeze in the sector, but now for the first time there is significant movement at the white collar level.“Companies are actively recruiting for lower-end mining professionals,” Stellar Recruitment’s division manager mining operations in Qld and NSW Matt Gibbs told Shift Miner.

“They are looking for engineers with

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two to five years of experience.

“It gives us confidence because if people are moving around, it creates a bit of a recruitment market as people will need to be backfilled.”

According to Mr Gibbs, the end of last year was busy for recruiters, but what could have been a seasonal trend has continued into the new year.

“Some of the majors are starting to see the fruits of cost cutting over 18 months so their margins are increasing and recruitment is easing up,” he said.

“I think the realisation is that they still need people at these operations, so while they will continue to run leaner they still need good technical people to maintain productivity.

“They want to fill their teams back up as they have been running low, and now they have defined where they need support.”

As productivity has ramped up across the sector over the past six months - with record tonnages at some sites - the need for maintenance has also increased.

“At the trades level there is movement in terms of labour supply and that is to do with maintenance,” Mr Gibbs said.

So what is the outlook for the sector in 2014?

“I wouldn’t say it’s a turnaround, but it is certainly improving,” said Mr Gibbs.

“The market is stabilising and confidence is coming back. I don’t think it’s going to go through the roof, but there is a steady, slow increase in confidence and you may see some investment happening in the next 12 months.”

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MACS Engineering sold

LONG-serving Mackay business MACS Engineering has been given a new lease on life after being acquired by the Sci-Fleet Group.

MACS will continue to operate from its Victoria Street base under the new ownership deal, which followed its placement into voluntary administration late last year.

In a strange turn of events, the company was placed into liquidation at a creditors

meeting on Wednesday, but administrators were able to confirm that late yesterday afternoon all assets, including the MACS Engineering trading name, had been sold to Sci-Fleet.

Australia’s largest-selling Toyota dealership, Sci-Fleet Group is a family-owned Queensland business which has had a long association with Mackay. The group has been operating in the city for over 20 years through its majority

ownership of Autocorner Pty Ltd, which employs over 250 staff.

“MACS will continue to operate in Mackay, providing jobs and supporting local industry that has relied on it for almost 50 years,” Sci-Fleet Group chief operations officer Jarrod Marshall said.

“Seeing such a wellrenowned, long-established family company close its doors with jobs and expertise leaving the local economy would have

been a real shame.

“MACS will now continue under the Sci-Fleet umbrella, which will ensure its future and support the local economy for years to come.

“This is a very important acquisition as it has many synergies not only with Sci-Fleet, but many local businesses. We see our investment in MACS Engineering as similar to our investment in Autocorner Pty Ltd, where we are essentially a silent investor.”

Mr Marshall said it was critical that Sci-Fleet retained the majority of senior production and sales staff to ensure MACS continued its reputation for quality.

“I am pleased to say we plan to re-employ up to 50 staff for now, with more to follow later once sales pick up. I have been very impressed at the passion they have for working in the MACS business,” he said.

Former MACS director Ross Fredrickson will continue at the business as new general manager.

“It was a very sad day for me in December last year to acknowledge that the mining downturn had made it impossible for us to

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continue,” Mr Fredrickson said.

“We are very grateful and excited at our future now that we are a part of the Sci-Fleet Group.”

Established in 1965, MACS Engineering is a light/medium engineering company and manufacturer and supplier of light vehicle and truck bodies, third party equipment, accessories and associated support services to the mining, energy, infrastructure and government sectors.

The family-owned business has built a solid reputation throughout Australia and the world for delivering innovative engineering solutions.

Autocorner Pty Ltd Dealer Principal John Glanville said he was delighted his business partners Sci-Fleet had invested in MACS. “It is important for all motor dealers in this region that MACS continues to operate so that we are able to source a high quality local product,” Mr Glanville said.

“There is no doubt that without MACS Engineering remaining local, vehicle sales and ultimately more jobs would have been lost from the Mackay area.”

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Spike in insolvency

By Angus Peacocke

THE number of mining-related businesses in the Mackay Whitsunday region seeking financial help from insolvency accountants rose by about 5 per cent in 2013.

That number includes businesses that have begun official administration or receivership processes and those who are seeking help to restructure before they get to that point.

Perhaps not surprisingly, the number of insolvency accountants who opened offices in the same year more than doubled, with more than three accountants now operating branches in Mackay.

The obvious cause of the problem is the correction in the coal sector and subsequent maintenance and hiring freeze that has made 2013 one of the toughest on record for many mining services businesses.

While the consensus seems to be that 2014 is likely to be a bit better, Taylor’s Solicitors principal John Taylor warns all businesses need to be careful in times like this.

“As far as advice for creditors, one of the big things we have seen is that when administrators and receivers are appointed, the first thing they do is seize all equipment and often not all of it belongs to the company that is in trouble.

“We had a recent experience where a company went insolvent and one of our clients who hires out equipment had an

No buyers for mining businesses

interest in the equipment seized.

“The administrators have a legal right to do this and the only protection is to make sure that any equipment that is hired, loaned or leased to another business is registered on the Personal Property Securities Register (PPR).

“It is not an involved or expensive process but can save you lots of money down the track.”

For businesses facing financial difficulties, Mr Taylor says it is critical that directors don’t stick their head in the sand.

He warns the penalties for trading while insolvent are large and put the business owners own personal assets at risk.

“Make sure the accounts receivables are collected, everyone is in this together and there are no excuses for people using you as a credit facility.

“Our other advice is to act earlier rather than later. Sometimes you can informally manage smaller debts, but if you let them grow things will only get worse.

“Don’t put your head in the sand - talk to your accountant or solicitor, or both.”

Looking to the future, Mr Taylor says he expects that 2014 will be another “soft” year for Mackay, but better than 2013. He says there will probably be a few more businesses flushed out in 2014, but he thinks most have now adjusted to the new reality and will see it out.

THERE is no sign of a mining business sell-off in Queensland despite the correction in the coal price.

For many small and medium businesses that have traditionally serviced the coal mining sector, the past 12 to 24 months have been challenging.

However, the reduced profitability of some of these businesses does not appear to be translating into increased numbers of businesses being listed for sale.

With the notable exception of MACS Engineering, which was in administration and last week found a buyer, 2013 was most memorable for its lack of activity, according to brokers.

“There certainly has been a correction in mining, as you call it,” Ron Frank from Business Brokers Queensland told Shift Miner.

“But to be honest if a business isn’t any good then we don’t list them [for sale].”

However, there are still some mining-related businesses that have remained profitable regardless of the slowdown in work.

“We have one hydraulic hoses business that we are selling which services mining, and while things are not what they were, it’s still a profitable business, there is still

plenty of earthmoving.”

So, with better times ahead, would it stand to reason that now is the time to buy?

That’s not how the market sees it.

“The perception is that Mackay is reliant on the mining boom, and without it there isn’t much interest from prospective buyers,” said Scott McGuinness from East Coast Business Brokers in Mackay.

“We were expecting that there might have been some activity from miners who have picked up a large redundancy payment, but that hasn’t eventuated.”

“

The MAC has been a long term supporter of RAAG and together we are working towards safer roads for communities across the Bowen Basin.

”

Graeme Ransley Road Safety Coordinator Road Accident Action Group, Mackay

As Australia’s leading workforce accommodation provider, The MAC is committed to establishing collaborative and productive partnerships with community groups.

This is just one of the ways we are helping to deliver sustainable outcomes for our host communities.

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Local Jobs. Local Business. Local Partnerships.

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Sacked for being in the union

TWO major coal companies have been fined $180,000 in two separate cases in which the Federal Court has ruled miners were sacked for being in the union.

Peabody has been fined $120,000 for unfairly dismissing three workers during a round of redundancies at the North Goonyella mine in July when the company announced it was reducing its workforce.

In his decision, handed down just before Christmas, Justice John Logan outlined a deliberate plan by management to rid the mine of key union officials.

“The long and the short of it is that this case displays a blatant, deliberate, concerted and fulfilled endeavour on the part of an employer to subvert a deeply rooted feature not just of our industrial relations system, but

of our democracy itself,” Justice Logan wrote.

“I cannot overemphasise the seriousness of the conduct concerned.”

The three men sacked were all heavily involved in the local branch of the CFMEU: Luke Ludlow was the president of the North Goonyella union lodge and captain of the mines rescue team; Barry Elliott was an officer

of the lodge; and Brendon Woods was the union site and safety representative at the mine.

According to court documents, during redundancy talks all three men were accused of many performance and attitude problems by mine management but were not given the right of reply.

Justice Logan ordered the men be reinstated, and they have all returned to work in the past fortnight.

“There was no affirmative evidence, much less any contest, in relation to the denials by the workers concerned that the so-called ‘concerns’ had any foundation in fact,” said Justice Logan.

“Their evidence is to the contrary. It is important that they be recognised in the future as persons who are not blemished in the way that the company sought to and did blemish them for the purposes of the redundancy rating process.”

In fact, what Justice Logan did uncover was a concerted effort

by North Goonyella general mine manager, Greg Pawley, to get rid of key union officials during the redundancies.

His judgement included the conversation between Mr Pawley and deputies at a shift meeting where it is agreed he said words to the effect of: “I would have sacked the lot of the executive [of the North Goonyella lodge] if it wouldn’t have looked so suspicious”.

Justice Logan said it was unclear whether Mr Pawley’s plan was carried out with or without the knowledge of the human resources manager at the mine.

“The nature of any

consultation with him is revealed only in email exchanges, which are neutral as to whether he was involved knowingly in the manipulation to the end which Mr Pawley had so clearly in mind,” he wrote.

In handing down the fine, Justice Logan said he believed from correspondence he had received from Peabody’s chief operations officer, George Schuller, that a similar incident would not happen again.

“As far as specific deterrence is concerned, it does seem to me very likely having regard to Mr Schuller’s evidence that there will not be a repetition of this behaviour on his watch as it were.

“That is not to say that the workers concerned have been given the satisfaction of an apology. Sometimes that does occur but it is not within the power of the Court to order that.”

Meanwhile, BHP has also been hit with a $60,000 fine for sacking two union officials for allegedly harassing and bullying a mine worker who had resigned from the union.

It followed a ruling in the Federal Court last August that the allegations weren’t substantiated and the company’s actions were “inexplicably harsh”.

In handing down the fine, Justice Berna Collier said she believed senior management, not just at the mine but also in its head office, had been involved in the decision to terminate the two workers.

“In my view a suggestion that the respondent [BHP] did not deliberately breach the Fair Work Act in the circumstances is at the very least hollow, and more likely simply incorrect,” she said.

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Green light for new frontier

By Inga Stunzner

The Bimblebox nature reserve is in Clive Palmer’s sights.

MOMENTUM is slowly building in the Galilee Basin - at least on paper as the federal and state governments sign off on mega projects.

So could 2014 be the turning point for developing the new frontier, despite low coal prices and increasing international competition?

Developing the Galilee Basin’s massive thermal coal deposits has, for decades, been hindered by a lack of infrastructure, but headway is being made.

At the end of last year, the

coal port of Abbot Point, near Bowen, was granted federal environmental approval for its expansion, a move necessary to cope with the proposed influx of coal from the Galilee.

Who owns the rail lines to get the coal to port, and what path they should take, continues to be a complicated issue for mining companies and rural landholders.

Two years ago, in the heady days of the mining boom, every would-be Galilee miner wanted to build and own the railway track to

Abbot Point. Many of those plans have fallen by the wayside since the drop in coal prices.

In November last year GVK abandoned its ambitious plans to build 500km of new track from the Galilee to Abbot Point, and instead will work in partnership with Aurizon to use existing infrastructure - a move expected to save $1 billion.

The proposed solution means only 300km of new track will be built before connecting into existing lines.

The big question is, what will Clive Palmer do?

His company, Waratah Coal, was granted a Christmas present with the federal environmental approval for his $6.4 billion coal mine.

Under the EIS approval, Waratah could build a wider, standard-gauge railway running directly from the Galilee Basin to Abbot Point that could carry twice the volume of coal as existing lines.

It would, however, have to negotiate with affected landholders.

Meanwhile, two Central Queensland grazing families are locked in a court battle with GVK Hancock over the potential impact on their properties’ ground water.

The families are not seeking to stop mining, but to ensure they have comprehensive make-good arrangements regarding water supplies drawn up with the company.

Aside from GVK Hancock and Waratah, Indian giant Adani also has big plans for the region. It wants to develop a 60 million tonne per annum thermal

coal mine, 160 km north-west of Clermont, known as its Carmichael Project.

The project is currently being assessed by Queensland’s Coordinator-General.

Adani has also proposed a $2.2 billion rail project linked to the Carmichael Project. The EIS has been released for public comment, with submissions closing on Tuesday 11 February.The lesser known player in the Galilee is mining minnow Bandanna Energy.

The company, which is better known for its Springsure Project, is in a joint venture with AMCI to build a 17 million tonnes per annum open-cut and underground coal mining operation about 12 km south-west of Alpha.

The $4.2 billion project would include a rail spur connecting to a common user rail line, coal handling infrastructure, mine water management system, electricity transmission lines and on-site accommodation village.

Bandanna is currently putting together additional information on its environmental impact statement for the Coordinator General.

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2014 ‘critical for construction’ Ships being unloaded on Curtis Island.

BY the end of 2014, Curtis Island off Gladstone will have transformed into a LNG hub.

Construction giant Bechtel has been running the project on behalf of the major player, and general manager, Kevin Berg, gives Shift Miner his insights into the year ahead: “We expect to maintain our peak workforce of about 11,000 employees through to the second half of 2014, though we will continue to transition from employing primarily civil trades into the employment of electrical and mechanical trades, special class welders, instrument technicians, pipe fitters, etc.

“2014 is a critical year for our construction as we move closer towards the commissioning and plant start-up phases.

“Our teams will continue to test

components of each of the plants in early preparation for production as our construction efforts continue to move closer to commissioning and start up and plant tie-in.

“In fact, we expect to have first gas come to one site and first LNG production to begin over the course of the next several months.

“This brings with it a whole series of challenges where we will be commissioning some parts of the projects while continuing to perform construction work on other parts.

“An important part of that process is to inform our employees and the community about what these next phases look like.

“All employees will be well informed and receive training associated with the process of commissioning and startup and we will inform the community of important milestones and what will be seen.

“Bechtel is responsible for approximately 50 percent of the LNG liquefaction capacity currently under construction in the world today and we have a proven track record of delivering successful plants for our customers.

“We’re very excited to be supporting our clients to bring this industry to Gladstone and greater Queensland.”

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900 permanent beds in Moranbah A DECISION to allow mining giant BMA to make 900 rooms permanent at its Buffel Park accommodation complex has opened old wounds in Moranbah.

Under a development application (DA) approved by the previous state labor government, BMA was allowed to build 900 temporary rooms to accommodate the fly-in fly-out (FIFO) construction workforce building the massive new Caval Ridge mine on the outskirts of town.

However, just before Christmas, Coordinator-General Barry Broe overturned some restrictions in the DA, meaning BMA can now retain the buildings to accommodate its ongoing workforce.

Deputy Premier Jeff Seeney said the decision was a common sense one.

“This decision brings certainty to the future of this complex after years of being caught up in complicated state and local planning processes that Labor failed to resolve,” Mr Seeney said.

“After careful consideration of the views of the local council and the company concerned, the CoordinatorGeneral has approved the development application by mine owners BMA, allowing for 900 rooms of the 1945room village to be utilised on a permanent basis, subject to effective and reasonable conditions.

The Caval Ridge mine and its Buffel

Park accommodation village have been a major source of contention in the region, because the mine was the first in Queensland to be approved with a 100 per cent FIFO workforce.

Moranbah resident Kelly Vea Vea has been an outspoken critic of BMA’s move to a completely non-resident workforce at Caval Ridge since the idea was first floated more than five years ago.

Now in her role as a local councillor, she says the decision to make the rooms permanent undermines council planning and again puts enormous pressure on local infrastructure.

“The state government of the time made the condition that a certain number of rooms had to be decommissioned after construction,” she said.

“At the end of the day the previous state government placed that condition for a good reason, and now it and a number of other conditions have been reversed.

“While these workers may be nonresident, they still flush toilets and drink town water and this decision will put enormous pressure on infrastructure that is already at capacity “From my personal point of view we have a new government that is steamrolling community concerns regarding long-term sustainable planning to quickly respond to demands by mining companies.”

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Stanmore Coal moves $200M pipeline on expansion plans project completed STANMORE Coal is bucking the trend.

While other resource companies have scaled back and rid themselves of noncore assets, this small coal explorer has been looking for opportunities to firm up existing projects in the Surat and Bowen Basins and fast-track production.

Earlier this month, Stanmore signed a joint venture agreement with a Japanese Government-owned company for its Surat Basin Clifford Project.

The Japan Oil, Gas and Metals National Corporation (JOGMEC) will now provide $4.5 million of exploration funding over three years in exchange for a 40 per cent interest in the Clifford Project.

Stanmore Coal is the first Queenslandbased company to benefit from the recent Japanese national interest in Queensland resources since JOGMEC and the Queensland Government signed a comprehensive Memorandum of Understanding last September.

“Queensland’s Surat Basin presents Japanese investors and electricity generators with a compelling and timely opportunity to build on the historically strong relationships between Japan and Australia by securing long term off-take from a coal basin containing a large amount of high energy, low emission thermal coal,” Stanmore Coal’s managing director Nick Jorss said.

The Clifford Project is a 1161 km2 area within the Surat Basin, known for high energy, low emission thermal coal. It adjoins Glencore’s mothballed thermal megamine at Wandoan.

Nearby is Stanmore’s Range Project, another would-be thermal coal mine the company hopes will pass through environmental hurdles this year, and be in production by 2017.

The joint venture agreement with the Japanese for the Clifford Project means Stanmore now has all the funding it needs for planned exploration expenditure over the next three years, including drilling

and associated coal quality analysis and feasibility studies. The funding will also allow it to build a comprehensive geological model of the area utilising historical data within and immediately surrounding the tenement area.

Pre-drilling activities under the agreement have commenced and the first holes are expected to be drilled over the next three months.

The initial drilling campaign will focus on areas within the tenement which are expected to host the shallowest coal.

Previous scout drilling by Stanmore and others within these target areas has identified significant coal intersections which have the potential to shallow and extend up-dip.

In its last quarterly activities report, Stanmore Coal said the company was preparing to act on the shortsightedness of the majors.

“History reflects that many successful new coal projects and companies are built in difficult market conditions when large resource company strategies are driven by short-term shareholder expectations,” the report reads.

“The company aims to capitalise on these opportunities through transaction structures which limit the need for upfront capital or will identify new sources of capital to finance these transactions.

“Stanmore Coal has personnel with a strong history of identifying and capitalising on opportunities with a limited capital base. The Lilyvale Project expansion announced during the quarter is another example of the company’s successful approach in this area.”

Despite the big plans, Stanmore Coal’s projects rely on a railway being built from the Surat Basin to Gladstone, linking it to the Wiggins Island Coal Export Terminal.

That project is now in care and maintenance and unlikely to change in the short term.

35 per cent of their licence allocation due to low river flows.

At its peak, the new pipeline could deliver as much as 36,000 mega litres of water into the Dawson River between at Glebe Weir and the small town of Moura.

However, Dawson Valley cotton grower Lester Anderson says the uncertainty of the new water supply makes it difficult to plan for.

“Our understanding is the water will Turn on the taps: 120 kilometre pipeline delivers CSG be available sometime next year,” he said. water (Photo courtesy Murphy Pipe and Civil) “But when it does arrive there is no guarantee in terms of volume, there can be IT has taken more than 14 months and more as much as 36,000 ML available or there than 400 people, but the Woleebee Creek could be none. If the water is there you to Glebe Weir pipeline is now complete. have to take it, because they want all the The pipeline takes treated CSG water water extracted by users above Moura.”

120 kilometres from QGC’s gasfields, Mr Anderson said the original plan had west of Wandoan, to the Dawson River been for the water to be allocated before it where it is used for agricultural and reached the river, but there weren’t enough commercial purposes. takers so it was available to allocation The subsurface pipeline reaches a holders between Glebe Weir and Moura. maximum diameter of nearly 1.5 metres “It’s meant to be pristine water so I and was installed by Murphy Pipe and Civil at a cost of more than $200 million. don’t know why they won’t let it flow down the river to benefit all users,” he said.

Some of the obvious beneficiaries of The CSG water is expected to be available the pipeline are Dawson Valley irrigators for around five years before it tapers off. who, this season, are operating on just

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11

Shift Miner Magazine

News

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Boulder bailout doubtful FRIDAY was D-Day for a Gladstone-based engineering firm to raise enough cash to get the $4 billion Boulder Steel project off the ground.

Tasman Engineering Services, led by engineer Paul Sundstrom, has launched a campaign through the Gladstone Observer to raise about $850,000 through local contributions and needs to deposit $50,000 in the bank account of administrator Nichols & Brien by 3pm.

“I can only speak to the Observer on an exclusive basis,” Mr Sundstrom told Shift Miner.

It is understand that once a deposit is made, the company will

12

20th Janurary 2014

then have to raise more funds for a Deed of Company Arrangement and take control of the company.

It means the local community would end up owning Boulder Steel, in a structure similar to a community bank.

However, Mr Sundstrom told the Observer he needed to raise another $30,000 to make the Friday deadline.

This comes exactly a year after Boulder Steel promoted its share purchase plan at 2.1 cents per share, when it is understood more shares had been taken from people in Gladstone than the rest of Australia.

These funds have since been

frozen - and are unlikely to be returned - and Boulder Steel’s priority creditors are owed almost half a million dollars. Unsecured creditors - made up of consulting firms, accountants, and public relation firms, are owed more than $360,000.

The project went into voluntary administration in July in a bid to raise capital after its Chinese backer pulled out, and Grant Thornton Australia were called in to recapitalise the company and get it relisted on the stock exchange.

Tasman Engineering Services was one of two companies who put in a proposal, and Grant and Thornton recommended creditors not support it: a spokesperson told Shift Miner at the time that the proposal lacked detail, had been submitted at the last minute and had not undergone due diligence.

In minutes from the creditors’ meeting, Grant and Thornton also said there was uncertainty around the company’s ability to complete the transaction.

Grant and Thornton recommended creditors accept

a proposal by Trident Capital, a company that specialises in raising capital for private and public companies, as it offered the greatest return to creditors.

Creditors were split between supporting Trident Capital or Tasman Engineering, and none objected to Boulder being put back in the hands of its directors.

The following day one director resigned and Boulder Steel was put back into voluntary administration, this time with Brien and Nichols.

Steven Nichols had been in contact with the company’s operations manager and one director during the administration and had consented to act as deed administrator, but this did not eventuate.

Mr Nichols said there has been no prior relationship.

After numerous phone calls and emails, Shift Miner Steven Nichols responded.

“We will shortly issue an update report to creditors.

“It seems likely the company may be saved, although this is up to the creditors to decide at the

next meeting to be held in the coming weeks.”

It is understood, however, that Trident Capital is still vying to bail out Boulder Steel.

The project, slated for construction this year, would have seen 2000 people employed during the 30-month construction and once built 1800 permanent positions.

Grant and Thornton’s Said Jahani told Shift Miner the Boulder Steel project was difficult to find an investor because it was at such an early stage and was seen as being too risky.

“If it had an EIS it would have been a different story.”

Any bail-out now would see a company raise money through shares and fund an EIS. Gladstone Engineering Alliance (GEA) had been in discussions with the company for over 18 months about engaging in local investment and had facilitated a meeting between Boulder Steel and 40 local businesses only two months ago.

The company’s then Chinese backers had supported the move.

Shift Miner Magazine

News

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Coal not the main culprit, says scientist

The before (left) and after images (right) show the massive flood plume.

DESPITE a large-scale campaign that blames the mining industry for the Great Barrier Reef’s deterioration, the science is beginning to tell another story.

In a new study published this week, a CQUniversity researcher has found that the impact of catchment pollutants is nothing compared with the devastation caused by a reduction in salinity following major floods.

Dr Alison Jones said major floods are ‘nature’s ground zero’.

Dr Jones told Shift Miner earlier that green groups were trying to pull the wool over the

community’s eyes, as mining and dredging had not had been responsible for coral degradation.

Writing in PLOS ONE journal, she discusses the period of December 2010 when the highest recorded Queensland rainfall associated with Tropical Cyclone ‘Tasha’ caused flooding of the Fitzroy River in Rockhampton.

“A massive flood plume inundated coral reefs lying 12 km offshore off the Central Queensland coast near Yeppoon and caused 40-100 per cent mortality to coral fringing many of the islands of Keppel Bay

down to a depth of around 8m on some reefs,” Dr Jones writes.

“The severity of coral mortality was influenced by the level of exposure to low salinity seawater as a result of the reef’s distance from the flood plume and, to a lesser extent, water depth and whether or not the reef faced the plume source.

“There was no evidence in this study of mortality resulting from pollutants derived from the nearby Fitzroy Catchment, at least in the short term, suggesting that during a major flood, the impact of low salinity on corals

outweighs that of pollutants.

“Not all the reefs were affected and those that were are already showing signs of recovery two years after the flood,” says Dr Jones.

“Corals are opportunists, they’ll grow wherever there is suitable substrate, especially when it is covered with crustose coralline algae, and we have plenty of that here.

“These reefs have been largely shaped by the Fitzroy River having recovered from flood events before.

“We need to recognise that marine ecosystems are not frozen in time, that they are constantly changing in response to their environment and that corals are very clever at survival.”

Dr Jones told Shift Miner it was frustrating to see science being subverted by certain green groups, who then create public hysteria.

“You need to understand where these green groups are getting their funding from… any link between dredging impacts and Keppel Bay is an absolute furphy.”

Her research, co-authored by Dr Ray Berkelmans, follows similar research on seagrass, which sustains dugongs and turtles.

Professor Marnie Campbells from CQUniversity has focused her work on the Gladstone Harbour, where there has been a sustained anti-dredging campaign, and has concluded that flood events have had more of an impact than pollutants.

Her research looks at scientific methods to determine how best to restore seagrass.

Seagrass needs light to grow, so how dredging affects the light will determine the impact on the seagrass.

“You may not kill it. In Gladstone, they have looked at the different light effects so if it gets too bad, they will stop dredging until the light improves.”

Gladstone Harbour is naturally turbid, so seagrass does not need a lot of light and as a result, the seagrass beds have remained relatively intact.

“If you are dredging a pristine area where there is lots of light, then there will be an imbalance.”

Dr Alison Jones

20th Janurary 2014

13

Shift Miner Magazine

LADDER

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Mentoring - what exactly is it and how can it help my career?

By Therese Lardner

potential in you, or else it really won’t work because the mentor won’t be willing to put in the time and you won’t want to listen to their advice!

The second important element is trust. If you’re asking your mentor for advice, you need to trust that they won’t misinterpret your question as not knowing how to do your job. These two things develop quite naturally, so oftentimes you don’t need to work at it, but if they’re not present, it may be advisable to have some frank discussions with your potential mentor if you really want to move forward with having mentoring discussions.

The third element important to the success of mentoring is time. Try to keep in touch with your mentor fairly regularly.

What this means will be different for everyone, but for example, if you tend to speak with an old boss that you really respect every month or so, try to keep it up. Some people find it best to schedule regular catch ups with their mentor (ie lunch once every three months) but others find it best just to catch up over the phone. However often you get in touch with your mentor, use it as an opportunity to let them know what you’ve been up to, challenges you’ve had, goals you’ve kicked and then hear a few suggestions and war stories from them.

MENTORING is a concept that we tend to know a little about (and some of us understand the benefits) but very few of us actually take advantage of it. If you’re in a supervisory or management role, you’re probably even expected to do it. Mentoring is something that should be designed to benefit both the mentor and the mentee (not to be confused with Mintie!)

So, what do you need to know to make it work?

Mentoring is the process of learning from more experienced people. Notice I didn’t say ‘older’

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20th Janurary 2014

people? It has to do with being clear on the skill, knowledge and experience you want to develop and connecting with someone who has those skills. They may, or may not, be older than you. Mentoring can be a formal or informal process, but at its very heart, it’s sharing stories of your experience, or asking questions, and getting the opinion of someone more experienced. Having a mentor can help you to network (ie you tap into their network contacts), increase your job knowledge and help you to manage your career.

What’s in it for a mentor

then? Even though they may not call themselves a ‘mentor’, more experienced people enjoy mentoring because they get to give back to their field/ profession, they like the person they’re giving advice to and they see potential in that person and they want that person to do really well in life.

How do I find a mentor? A good place to start is current/ past managers, supervisors, or others who are more advanced in their knowledge of your field than you are. The list is almost endless. You might not specifically ask “will you mentor me?” but establish that you’d like to be in touch with them regularly. Think broadly about where you might find a mentor – peak industry bodies and professional associations are also a good place to look.

How do I get the best out of it? There are a few things that need to be in place for mentoring to actually work. The first is respect. You need to have a high level of respect for your mentor, and they need to see

What should I look for in a mentor? Ideally you’d know you’re mentor well, but if not, look for someone you think you’d get along with. Do you share an interest in the same elements of your profession?

Do your values match? What is your mentor’s reputation in the industry? Your mentor should be able to communicate easily and be motivated to assist you in your career.

What should we discuss?

Formal mentoring meetings will require you think about what you’d like to discuss in advance.

In the early days of a mentoring relationship, great starting questions include: How did you get started in this industry?

What’s the best piece of advice you’ve ever been given?

What’s the best/worst company you’ve ever worked for?

And of course the conversation will flow from there. Once you both get to know each other better, you can share specific experiences, challenges, problems with them and get their opinion. In formal meetings it’s best to come prepared with some specific things to discuss.

Informal meetings are quite different, and the conversation is likely to meander a lot. Often it will start out with getting an update on what’s happened for each person since you last spoke/ met and then the conversation will go from there.

In essence the outcomes of the formal and informal approach are the same, getting help in taking the next step in your career and dealing with the challenges along the way.

So at the start of this column did you think mentoring was ‘wanky’, or is just for people with PhDs? I bet many of you now realise that you’ve already got a mentoring relationship with someone, it’s just that you’ve never actually called it that.

My suggestion is that if you have someone in your life who is interested in helping you do better, harness it!

Therese Lardner is an industrial and organisational psychologist with extensive experience in all areas of the employment cycle from recruitment and selection to development, employee engagement and career transition.

She currently works for Lee Hecht Harrison in Brisbane.

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Shift Miner Magazine

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Around Town

FOREVER YOUNG The Central Highlands Regional Council recently held a dinner for families of children who are participating in the Active Leaders Program, organised by Youth Coordinator Josh Clutterbuck. [Photo credit: Jeanette Fletcher]

Jack O’Brien presenting Josh Clutterbuck with a bouquet of flowers.

Holding a social event you want photographed? Call the Shift Miner office on 4921 4333 to let us know. You can also give our office a bell if you’d like a copy of any of the photos in this edition.

16

20th Janurary 2014

Shift Miner Magazine

Around Town

www.shiftminer.com

FITNESS FIRST!

Blackwater’s new fitness park was officially opened at the end of last year. Locals and FIFO miners alike can now enjoy going for a walk or using the fitness equipment. [Photo credit: Jeanette Fletcher]

Kristy and Emily Butcher with Flip Flop (the clown!)

Testing the equipment Abby and Djuna Glasson-Green

Lachlan Anderson

Nicolas and Talal Dugri

Ashish, Harjit, Anish and Aavna Prasad

Mali and Kade Glasson-Green

Baxta Lancaster on the rock climbing equipment

Buy this and many other images at

www.shiftminer.com Shift Miner magazine – bringing the mining community closer together 20th Janurary 2014

17

Shift Miner Magazine

Off Shift

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FROm THE EDITOR More accountability needed for training OUR cover story this week is very disturbing. In the four months between July and November last year, 63 incidents occurred upstream in the gas and petroleum industry.

Some of these were dangerous and there have been deaths.

What is even more alarming is that almost two-thirds of these incidents related to drilling rigs. One of the reasons behind this is that the CSG industry is relatively new to Australia and the equipment being used is cutting edge. The irony is that much of this is automated to increase safety, but it has actually become a double-edged sword.

The automation of the industry has increased the danger, mainly because the equipment is so new and high tech there are few people who have the experience to operate it. Even experienced drillers are newbies.

Like the mining industry before it, we have seen RTOs set up overnight in the gas boom to run training and safety courses. And this, according to many training veterans, is another part of the problem. The trainers themselves have no experience in this new equipment, and there are some who are unscrupulous enough

to merely tick the boxes.

The industry is working hard to catch up and reverse this dangerous safety trend. Even if the government tightened up standards and accountability, there would continue to be this lag in experience that remains the crux of the problem.

The only way to really see some change is for CSG companies to slow down their progress and give everyone time to catch up - but given the nature of an industry driven by profits, it is - sadly highly unlikely.

Ultimately, we do not need to have another incident like we saw last year when a young floorhand was crushed by an iron roughneck.

The remote ironneck was engaged to extend while he was in its path and workers were unable to stop it.

How the industry proceeds is up to those at the top - and whether they choose to put safety first.

Inga Stünzner SMS What are your thoughts on training in the CSG industry.

Comment or SMS 0409 471 014

Photos to THE EDITOR

Sent in by one of our readers.

Text in your best snap to 0409 471 014

CARTON OF BEER FOR YOUR EYES! It’s back by popular demand.

You SMS us a photo to 0428 154 653 of something you’ve seen on site.

A bogged digger, the boss’s chocked motorbike - whatever tickles your fancy.

Tell us in the text message what we’re looking at.

Every three months we’ll decide on a winner and post you out a carton of beer!

So SMS your pics to 0428 154 653

18

20th Janurary 2014

Stuff to the Editor Over the Christmas break, Shift Miner received this interesting letter from a television technician pointing out a lesser known cost to industry: As a subscriber to Shift Miner, I value the supply of information on a weekly basis.

Shift Miner does it well. But after working 30 years in the mining industry, I have an axe to grind and nowhere to grind it.

I am a qualified television technician and employ qualified television and communications tradesmen. We specialise in installations of television systems in mining villages, covering an area from Rolleston, north to the Bowen Basin, the Gulf, Mt Isa and the Torres Strait.

One of the lesser known costs to the mining industry involves the installation and ongoing maintenance of television systems provided for miners in accommodation villages.

Television systems built in the Bowen Basin alone over the past two years have cost the industry an estimated $3.5 million for the construction and ongoing maintenance of defective systems installed by

incompetent, unskilled personnel with no training in the television trade.

Examples of problems resulting from sub-standard cabling, poor quality components and no experience with digital television range from no service at all to the wrong selection of cable type, missing channels and complications arising from attempts at rectification by maintenance staff.

Mining companies need to look closely at why the cowboy factor is thriving in mine villages when it comes to installing television systems. In many cases contracts are let with bulk packages for the construction of new villages and the actual cost of the television installations are unknown or even scrutinised.

Rectification projects can cost more than the original new system. It is possible to build permanent television systems to zero maintenance standards.

Name withheld on request.

Shift Miner Magazine

Off Shift

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Frank the Tank’s Dear Frank,

I recently took a trip to Bali and spent the night with a really, really friendly local girl I met at the pub.

We had a great time together.

The only strange thing was in the morning she insisted it was customary I give her some money.

Ever since I returned home I’ve had a very strong itch in an extremely uncomfortable place and I’m really worried about it, but I’m too embarrassed to go to the doctor.

What should I do?

Anonymous

I’m extremely pleased you took the time to write to me. Genital malaise is no laughing matter.

Like so many before you, my anonymous friend, you’ve fallen prey to the siren song of an oriental temptress.

I can still remember my first trip to Indonesia; sun, surf, smoking opium at a club staffed entirely by monkeys, and a woman named Chang.

We met on the beach, where Chang complimented me on my physique and offered to vigorously reapply my sunscreen for me.

Afterwards she asked me for some money, but I figured that was just to cover the cost of the sun protection.

We continued on in that fashion for two weeks: Chang teaching me all manner of Indonesian sex positions, like the surly iguana and the tsunami of shame, and me giving her money after every encounter.

When my trip was over I bid farewell to Chang and set off home for Australia.

Fair Dinkum!

“Streakin” good love advice

A short time later I began to experience some discomfort. It was mild at first, but it rapidly got much worse.

I typed my symptoms into Google and was horrified to discover that I was suffering from what is colloquially known as ‘Neptune’s lament’, a sexually transmitted disease common among sailors and pirates.

It took a bottle of kerosene, a scouring pad and three litres of holy water to get the barnacles off my wedding tackle.

Sadly it’s only now that I realise Chang was, in fact, a very seasoned prostitute.

Perhaps in hindsight her wooden teeth and triple jointed pelvis should have given it away, but I was blinded by erotic massage and highly alcoholic cocktails.

Unfortunately there’s no real way I can help you now except by advising you that your mystery Balinese woman was most certainly a prostitute.

All you can do now is try to ascertain what unholy plague has descended upon your nether region and attempt to treat it.

I just pray you can cure what’s ailing you before it progresses too far and you end up a life-size Ken doll.

Dyer is now planning to take the corpse of Big Foot on a tour around the countryside.

The public has every right to be skeptical of Dyer’s claims; it’s not the first time he says he’s bagged the beast.

Back in 2008 Dyer’s credibility took a serious blow when a body he claimed was that of Big Foot turned out to be a rubber ape suit.

- After suffering a bad fall from a roof, a Canadian mother of two has awoken from a coma with a Scottish accent.

The Ontario local regained her speech several days after the accent, but began speaking like a native Scot, even using words like, “wee”, “grand” and “awright.”

Doctors have diagnosed the woman with “foreign language syndrome”, a rare condition that affects only 60 people worldwide.

The condition usually manifests after a traumatic brain injury or stroke.

IN VICTORIA - One

A Texas hunter claims he has shot and killed a yeti. Pity he didn’t do this last year to the worst movie ever - entitled Big Foot. Pitiful script, appalling graphics and the big question as to why this movie was ever made, Big Foot will leave you demanding those two hours of your life back.

IN THE US - A hunter in Texas

claims to have shot and killed a Big Foot.

In a rambling account on his website,

Rick Dyer says he attracted the legendary beast by nailing pork ribs to a tree before shooting it.

boyfriend’s attempt at a practical joke backfired catastrophically when he became stuck inside his washing machine...naked.

The man was apparently hoping to hide inside the top loading washer to scare his girlfriend, however he became trapped in the process.

Firefighters, paramedics and a search and rescue team came to the man’s aid after about 20 minutes and were able to free him by greasing his body with olive oil.

A spokesperson for the police confirmed the man was highly embarrassed.

Frank

SENSIBLE SUSAN Anonymous, You need to suck it up and visit a doctor immediately.

Hopefully it’s nothing too serious, but you may have an STI, so you need to be diagnosed and treated as soon as possible.

Visiting a doctor is confidential, so no-one is going to find out.

The sooner you see your GP, the sooner you can alleviate that itch and get on with your life.

Susan

IN CANADA

IN BRAZIL

- And you thought the recent heat wave in CQ was bad, spare a thought for the Brazilians!

Temperatures in Rio De Janeiro were so scorching they set off the sprinklers in a shopping mall.

Shoppers were reportedly relieved by the impromptu cooling off.

The blistering pre-Christmas heatwave saw temperatures in Rio soar in excess of 50 degrees celsius.

20th Janurary 2014

19

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MOVIE Review by Justin Carlos

Anchorman sequel stays classy

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9 7 1 2

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The film picks up a few years after the original Anchorman. Ron Burgundy has married Veronica Corningstone and the two are co-anchors for a prestigious news network in New York City.

After Ron sees Veronica promoted ahead of him, he suffers a mental

favourite anchorman were skeptical as to whether The Legend Continues could recapture the hilarious magic of its forebear.

Whether Anchorman 2 eclipsed the original will likely be the subject of heated internet debate, but one thing is for sure it’s a very funny movie.

THE highly anticipated sequel to the most quoted movie of the past 10 years is finally here: Anchorman 2: The Legend Continues.

Despite an enormous amount of promotion, including public appearances

by Ron Burgundy (Will Ferrell) himself, it’s safe to say that fans of San Diego’s

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ACROSS 1. Disbelief 5. Messy 9. Conversation 10. African antelope 12. Started 13. Glorify 14. Snow-covered peaks 16. Postal vehicle (4,3) 19. Flags 21. Powerful need 24. Sports stadium 25. Bowed & scraped 27. Actor, ... Hoffman 28. Unseat (jockey) 29. Coercion 30. Follower

breakdown and winds up back in San Diego, working at Sea World.

After a botched suicide attempt, he’s scouted by the burgeoning ‘Global News Network’, the world’s first 24 hour news network.

Ron reassembles the news team and the gang head to New York City, forever changing the way the world thinks about news.

It almost goes without saying that Anchorman 2 is completely, utterly and delightfully absurd.

Hilarious exclamations from Ron, bottle feeding a shark and smoking crack live on air represents the kind of absurdity that Anchorman fans will relish.

In what seems like a concerted effort to ensure the film is well received by fans, a lot of the gags from the first film are rehashed.

Ron’s bizarre annunciation warm ups, a secret cabinet in Brian Fantana’s office and the epic news team street battle are all reprised in Anchorman 2.

If there is any detraction from Anchorman 2 it’s that some viewers may consider the odd joke to have crossed the line of irreverence and verged into the offensive.

Hardcore Anchorman fans will have no doubt donned their best Ron Burgundy suit and seen the film already, but for those who are skeptical about how The Legend Continues stacks up: it’s arguably as funny as the original film, and well worth a trip to the cinema.

Stay classy...

Down 1. Army doctors 2. Convulsions 3. Brazil’s ... Janeiro (3,2) 4. Origins 6. Amounting to 7. Immobile 8. Young horse 11. Red-rind cheese 15. Alpine huts (3,6) 17. Compensated 18. Insurance estimator # 60 20. Palm cereal 21. Not possessed 22. Sleigh 23. Strangest 26. Raise spirits of

LAST EDITION’S SOLUTIONS H I S T OR I A E A N G A NG S T E G T E X L OU I S I A E P C SWO T S T E WH I R L E D A A L E B OMB S B B A P T I S R A E L N I N GR A N T S

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Shift Miner Handy Cross blank grid.pdf ©Lovatts Publications 5/03/09 artist – mb

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Off Shift

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It’s a nice day for a weird wedding IF you decided to propose over the Christmas break then you’ve probably already started thinking about your big day. It’s important to remind yourself that it’s 2014, the future is now, and to hell with a ‘traditional’ wedding. Draw inspiration from these pioneers who obviously took stock of their upcoming nuptials and decided, “Yes, I want my wedding day to be a bizarre and troubling experience for all concerned.”

Crush, kill, matrimony!

I now pronounce you Mr and Mrs Nude…

Married with sharks

This Aussie couple obviously figured suit hire and a wedding dress was simply a waste of money.

The exhibitionist couple tied the knot on breakfast radio in front of 250 onlookers and hundreds of thousands of listeners.

No word on where the two went for their honeymoon, but it’s presumed it was somewhere warm...

What better way to celebrate your love than locked in a tiny cage surrounded by terrifying creatures of the deep?

One New York couple plunged into a 120,000 gallon shark tank at a nearby aquarium to say “I do”.

The bride and groom exchanged vows over a radio microphone and the ceremony was officiated by a celebrant who did not get into the tank.

We’ve all come to know and love the weirdness that is Japan, but they do things just as strangely in South Korea, it would seem.

In 2007 a South Korean couple used a robot named Tiro as their master of ceremonies.

Tiro’s services weren’t cheap either; the robot cost around $US 215,000.

Other robots were also present at the event, helping people to their seats and ‘performing’.

Say what you like about a robot MC, at least there’s no chance he could get drunk and tell an inappropriate anecdote or grope one of the bridesmaids.

Hold it right there Okay, so this isn’t so much a weird wedding as it is a tradition. However, it’s so weird that we had to include it.

In the Tidong community in Northern Borneo it is considered extremely bad luck for newlyweds to use the toilet within 72 hours of being married. Couples are starved leading up to the ceremony and given very little water to help facilitate the tortuous deprivation of potty time.

Needless to say, the three days after the wedding have a high chance of getting painful and ugly.

Talk about a crappy honeymoon…

Books you won’t believe were actually published A LOT of people like to relax and catch up on some reading over the Christmas break.

Here at the Shift Miner we consider ourselves masters of all the great literary classics...like these…

What bird did that?

Crafting with cat hair

There’s nothing more annoying than not being able to identify the bird that defecated on your car. If you’re travelling in North America, you’ll never have to worry about that, though, thanks to this handy guide book. It helps the reader identify birds based on the characteristics of the droppings. Fingers crossed for an Australian version.

Sweep up the hair your cat sheds and turn it into delightful handicrafts!

This book contains detailed instructions on how to turn feline fur into things like book covers, picture frames and finger puppets. If you are seriously considering purchasing this book, you are in grave danger of becoming a ‘crazy cat person’.

Seek help immediately.

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20th Janurary 2014

The Bible and Flying Saucers UFO enthusiast Barry Downing connects the miracles performed in Biblical mythology with alien beings.

The recommended retail price of 75 cents is a little bit steep if you ask us.

Codex Seraphinianus Okay...what...the...hell.

First published in 1981 this book is essentially an encyclopedia about a world that mirrors our own. It gives detailed descriptions of things like flora, fauna, science and architecture.

The book is written in an indecipherable text that has attempted to be translated by philosophers, academics and codebreakers. All have been unsuccessful.

Latawnya the naughty horse learns to say “no” to drugs This book contains a semipositive message delivered in an unintentionally hilarious way. The book is a children’s tale about three African American horses who leave the stable and are corrupted by caucasian drug dealers. Crude drawings of horses drinking, smoking and taking drugs are pretty funny, though they’re almost certainly not supposed to be.

Shift Miner Magazine

Off Shift

www.shiftminer.com

Sticking to your New Year’s resolution

With 2014 still in its infancy, plenty of Australians out there are either making or feverishly attempting to stick to New Year’s resolutions.

Some of the most common resolutions include quitting smoking, getting fit, drinking less and saving more money.

Most resolution makers will power through January but start to get the wobbles around February when the daily grind fully sets back in.

By March you’ve gained 10 kilos, blown heaps of money on eBay, smoked too much and drank way too much.

Okay, that’s just a worst case scenario, but it’s very easy to fall back into old habits, which begs the question: how the hell do you stick to a New Year’s resolution?

At this point a disclaimer is required. I have never made a New Year’s resolution, and therefore have never stuck to one. I am not an expert.

I did however consult my wise friend the internet about the best way to achieve one’s goals for the new year.

As I suspected there are an infinite number of bloggers, self-help gurus and other online pundits who claim it’s all about positive mindset and setting an achievable goal and sticking to it.

To be honest you probably didn’t need me or anyone else on the internet to tell you that it requires mental fortitude to maintain a resolution, but surely there’s an easier way than having to rely solely on will power!

We live in an age where your phone or tablet can now help motivate you and keep your resolution on track.

There are apps to help you manage your finances, get in touch with your emotions, eat healthier and get fitter.

On the surface this seems like an extremely handy tool, but I expect it’s a far more sinister plot in which self aware smart devices are seeking to control our behaviour through ‘motivation’.

Today your iPhone tells you to go for a three K jog...tomorrow it tells you to blow up a government building.

Picture Terminator 2, only with iPhones and iPads instead of terminators.

Having re-read this article it appears to be the paranoid ramblings of a crazy person. Maybe my New Year’s resolution should be drink less coffee.

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20th Janurary 2014

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Shift Miner Magazine

Bait Shop Banter

Coby Pascoe with a lovely 78cm fingermark

YEPPOON

Sport

www.shiftminer.com

- The fishing in 2014 has started on a good note with a lot of favourite spots fishing extremely well.

Adrian from the Secret Spot Bait and Tackle reckons no matter where you’re angling you should be able to hook a fish.

“There’s been a few blue and king salmon in the creeks and some really decent fingermark up to around 10 kilos caught around the wrecks. Out wide there’s been some really good catches of red jew and small mouth nannygai.”

If you’re chasing red fish, you

may need to stray from the stockstandard approach.

“Around this time of year you seem to get those fish near the surface. If you can see a heap of fish on the sounder but you’re not catching anything, drop a pilchard over the side on some 30-pound line and see if you can get them in the mid water or above,” said Adrian.

Corio Bay has been crabbing quite well, and there’s also been catches of good size whiting, so it’s well worth heading up with a few yabbies and wetting a line.

MACKAY- Apart from some

recent windy weather the fishing around Mackay has been excellent.

Rob from Tackle World in Mackay said the fish have been firing pretty much everywhere.

“Despite not being in season there’s been good catches of Spanish mackerel off shore. There’s been a bit of bait around and there’s a lot of mackerel in that 10-kilo range being caught. Coral trout are on the bite as well. Try fishing around the islands and across rubble patches.”

On shore the estuaries and dams are fishing equally well.

“The creeks are producing some really nice grunter, and a lot of goodsized prawns and mud crabs. There’s also been a lot of big fish caught up at the dams,” said Rob. Recent rain has been a delight for anglers as it should encourage the barra to spawn, resulting in good numbers of fish when the season reopens on February 1.

mangrove jack, grunter and even some salmon kicking around.”

It’s not just the fish that are on the chew either.

“The crabs and prawns have been exceptional, especially after the rain. The rain has really seen them increase in size, which is really good,” said Dylan.

If you fancy a trip to Awoonga Dam, there are still a few fishing being caught out there. Dylan’s tip is to use a gar imitation lure around the 80-mil mark as some of the fish are still quite small.

If you have a good photo or fishing yarn send it through to our resident bait chucker-

angus.peacocke@shiftminer.com

GLADSTONE- Some

indifferent weather has kept anglers in the harbour city on shore, but there’s still plenty of fish being caught.

Dylan from Pat’s Tackle World says there’s a number of species on the bite in the estuaries around Gladstone.

“The rain has livened everything up and the estuaries have been fishing well. We’ve had great numbers of

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Shift Miner Magazine

Sport

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Footy players sidelined by mine bosses

ONCE upon a time, being half handy on the footy pitch opened doors in the mining industry.

But the message from mine bosses this year is: “Get hurt and you’re gone.”

President of Central Highlands Rugby Union Eddie Shaw says many miners aren’t willing to risk being hurt playing contact sport anymore because their employers do not support them.

Mr Shaw says mine bosses have told people: play at your own peril.

“I know for a fact that people have been told if they play footy and they get hurt, they haven’t got a job anymore,” Mr Shaw said.

“And with so many unemployed miners out there waiting in the wings, contact sport has become a liability, and local footy clubs are feeling the squeeze.”

Mr Shaw said contractors losing their jobs throughout 2013 had put a strain on the local rugby union competition, and

clubs were forced to evolve to stay afloat.

“We definitely struggled last season, the nature of the competition is changing; it’s farmers and mines services blokes rather than actual miners.”

The current estrangement between mining and rugby is certainly a break from tradition, with mine bosses historically welcoming gifted footy players with open arms.

“It [football] used to be a good pathway to get into the mines, if you were a good player then mine managers would want you working for them and playing in their team, but it’s all turned around,” said Mr Shaw.

Rugby league in the Central Highlands is feeling the pinch too.

Mr Shaw says 12 years ago there were a total of 28 league teams in the Central Highlands competition - now there’s just seven.

It’s not all doom and gloom however.

Mr Shaw says changing rosters have made sport more possible for those people determined to be involved.

“Some of the mines have gone to a five-day-a-week roster, which does mean less money for workers, but it’s much better for the community.”

“Having weekends off means there’s more players, coaches, referees and volunteers, it’s really advantageous.”

With 2014 tipped to be a difficult season for many clubs, Mr Shaw encourages all those interested to get involved in their local footy club.

“Contact sport is a risky amateur pastime, but it’s also a whole lot of fun. A lot of relationships you form through footy are the ones you keep for life.”

Players interested in signing up with their local rugby union club should contact QRU development officer Sonny Henderson on 0488 000 342.

Miners back training for 2014 THE Moranbah Miners rugby league side had their first training session last week and fielded a virtually unchanged squad to the one that narrowly lost the premiership in 2013.

If anything the squad is stronger this year with the signing of former NRL player Shane Tronk, which means - all things being equal - the miners should be around again come finals time.

However there is one large and notable change and that is the departure of long time coach and player Josh Hannay who has taken up a coaching role with Souths Logan in Brisbane.

Long-time Moranbah player and resident Davey Roberts will seek to fill the void left by Hannay’s departure.

Player manager for the club Michael Leonard says despite the big changes to rosters and mining generally in Moranbah, they are optimistic.

“We were back training on Tuesday after the players had a bit of a break over Christmas,” he said.

“Almost all of last years team is back so we are hoping for a competitive season.”

“Off the field it is business as usual, with the club in a good position and looking forward to the future.”

The first game for the season will be on the 15th March in Mackay, with the final draw to be finalised later this month.

Apply now for a $4000 CQUniversity scholarship

Proud to be a part of the central Queensland Community and committed to the future.

Since 2008 Hail Creek Mine has proudly partnered with CQUniversity to provide 33 young people in the Mackay region with university scholarships.

The scholarships help with study costs and provide various career development opportunities.

To apply visit www.cqu.edu.au or contact Hail Creek Mine on 4951 6437.

Pictured: (L-R) 2013 scholarship recipients Hayden Brigg, Jessica Dridan, Joel Pattinson-Cashman and Mikaela Crawley with CQUniversity’s Dr. Shane Hopkinson at Hail Creek Mine’s end of year stakeholder event.

Applications close 7 March 2013.

riotintocoalaustralia.com.au 20th Janurary 2014

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Shift Miner Magazine

Money Matters

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Rocky rentals to tighten

A BUSY January should mean a return to a better rental market for investors in Rockhampton.

“I am anticipating that vacancy rates will tighten, although it will take some time to get back to where we were,” REIQ representative and long-time local real estate agent Noel Livingston told Shift Miner.

Midway through 2012, Rockhampton’s rental market was at record low vacancy levels, with just 1 per cent of properties sitting empty.

Back then, the tight market was driven by demand in nearby Gladstone, which didn’t have the capacity to house all the workers required for the LNG construction boom.

Eighteen months later, an influx of new properties has over-saturated the Gladstone market and the coal industry

is still in a holding pattern. As a result, Rockhampton’s rental vacancy rate is now closer to 4 per cent.

“We still have a higher vacancy rate than normal but we are getting very busy,” said Mr Livingston.

“It’s certainly seasonal, and once we get through this month we will have a really good indication about where we lie and where we stand for the rest of the year.”

While the downturn in the coal industry has certainly had an impact on the rental and sales market in Rockhampton, the town is in better shape than many of its neighbours, according to Mr Livingston.

“Last year was definitely a showcase of what Rocky is all about when times are tough. We might not have been breaking records, but we were paying our way.

“Rockhampton has always been seen as a very stable market because the town is not reliant on one industry.”

In 2014, Mr Livingston is predicting a return to better times - with the building industry picking up again.

“The commercial sector is really going strong. A lot of builders who were scratching around for work this year now have at least 12 months of it lined up. It’s amazing how the construction industry can turn around so quickly.

“Overall, I am pretty confident that we are looking at a better year.”

Gladstone’s rental rollercoaster IF you want to rent a house in Gladstone, have your pick.

In 12 months, the port city has gone from being the tightest rental market in the state to one of the most oversaturated - with vacancy rates now sitting at 9 per cent.

“We were sitting at less than 1 per cent, now we’re hovering around the 9 per cent mark,” REIQ representative and LJ Hooker principal Mark Spearing told Shift Miner.

“Rents have come back considerably and are once again in line with the general Queensland market.”

A two-bedroom, unfurnished unit in Gladstone would now cost about $300/ week to rent, but peaked at more than $400/week during the LNG construction workforce accommodation squeeze.

Similarly three-bedroom houses, which would have rented for more than $500/ week at the peak, are now in the mid$300/week range.

“In the second half of last year capital values fell by about 20 per cent, so that’s a significant shift,” said Mr Spearing.

The long-time real estate agent blames poor planning for the massive correction.

He said the town was led to believe a significant portion of the enormous workforce required for the Curtis Island LNG build would live in town.

“There was a lot more talk that more

of the workforce would be located on the mainland and, in fact, very few are. They are FIFO and they are living on Curtis Island,” he said.

REIQ Gladstone zone chair As more and Mark Spearing more new real estate became available last year, the demand just wasn’t there.

“What we expected was for the market to remain robust, albeit not at the same levels as previously as it was out of control. But we were expecting a much softer market adjustment than what we’ve experienced.”

However, Mr Spearing expects the worst is over.

“I think we’ve peaked in terms of available rental properties. We monitor the numbers weekly so we are quick to recognise the trends, and they indicate that building completions have slowed down and the amount of available property is still moving.

“People are still moving here, and there are some FIFO workers relocating so in my personal opinion we have peaked in terms of vacancy rates however there is a fair amount of stock to soak up.”

CSG towns the only bright spot in property report

An artist’s impression of a warehouse at the Surat Basin Industrial Park.

THE Surat Basin and Gladstone have been the only bright spots in an otherwise patchy and uneventful year for commercial property in areas linked to the coal and gas sector.

Reflecting on 2013, property valuers Herron Todd White (HTW) have reported low sales and falling rents in most towns connected to coal.

“The slowdown in the Bowen Basin coal industry appears to have softened demand for industrial property in Mackay,” HTW says.

“There is some concern as to the volume of industrial land on the market, and this supply increased with the completion of stage five of the Industroplex industrial estate and stage two of the City Gates industrial estate.

“Some developers discounted the sale prices of a small number of vacant industrial lots to try and increase sales rates in a period of low consumption, this discounting however was not widespread.”

Further south in Rockhampton, most of the limited activity in the commercial property sector was in retail and office space.

“Generally the commercial office market during 2013 has been dominated by owner-occupiers looking to take advantage of low interest rates and the few good buys available as investors exit this market.

“Most of this owner-occupier activity has been in the sub $750,000 market.”

Not surprisingly, the more positive appraisals have come from towns linked to the CSG boom, like Chinchilla and Gladstone.

“Within the Surat Basin the market appears to be stabilising, however market-leading rentals have been recorded throughout the year, particularly within the Surat Basin Industrial Park at Chinchilla,” HTW says.

“The new tenants are all national and

international companies servicing the energy sector, with local business unlikely to be able to compete on price.

“The Wellcamp airport being developed

by Wagners has made good progress and is anticipated to be operational by mid 2014.

“The surrounding industrial estate will be developed post the airport becoming operational.”

In Gladstone, HTW says there is some evidence of increasing vacancy levels and declining values as the construction phase on Curtis Island reaches its peak.

However, a lack of sales and activity generally means no clear picture can be drawn yet.

Gas revolution to build communities: Cotter This column was written by GasFields Commission chairman John Cotter:

BUILDING more sustainable and resilient regional communities from the onshore gas industry revolution in Queensland remains a key focus for the GasFields Commission heading into 2014.

Getting gas from the Surat Basin on a boat in Gladstone for export by 2014 and 2015 will be a tremendous engineering milestone for the major CSG-LNG proponents.

However, for the Commission the true measure of success for these projects will the nature and depth of the onshore gas industry relationships with those impacted landholders and communities.

True coexistence is about building

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genuine, lasting relationships and mutual benefits that will endure for the next 30 or 40 years and beyond.

In that regard we need to capture more jobs and economic outcomes for local businesses and the communities that service the expanding onshore gas industry, and we also need to see a long term and positive legacy in terms of new infrastructure importantly roads and communications.

The recent report from Energy Skills Queensland forecast CSG-LNG industry jobs won’t peak until 2024 and the majority of those almost 15,000 jobs will be in upstream areas of the Surat and Bowen Basins. This is good news for those regional communities that have seen cutbacks in coal sector.

However, these regional communities need better roads, communications and other infrastructure if they are going to be able to sustain these workers and build opportunities for other sectors to benefit including small business, retail, agriculture and even regional tourism.

In early 2014, the Commission is looking to host a sustainable futures workshop to address some of key long term infrastructure and services issues for regional communities and businesses.

In addition the Commission will continue to work with the onshore gas industry to seek to make available more information about forward drilling programs and related industry activity

in an effort to improve awareness and planning for landholders, local councils and their communities.

The Commission brought onshore gas company chief executives together with local communities and businesses through its Gasfields Community Leaders Councils with forums held in Roma and Emerald over the past six months and more are planned for early 2014.

On behalf of the GasFields Commission, I would like to congratulate the Shift Miner on its excellent coverage on resource industry matters in Queensland during 2013 and would like to wish your readers a safe and merry Christmas and prosperous new year.

Shift Miner Magazine

Money Matters

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MONEY TIPS FROM THE EXPERTS

NEW YEAR’S RESOLUTION Insurance

What types of insurance do I have?

When were my covers last reviewed?

Do I have adequate cover given my salary and assets have changed? What is the difference between cover inside of super and cover outside of super?

Investments

How have my investments been performing? Do I have an adequately diversified investment portfolio?

Which asset classes are ‘hot’ right now.

Are my investments too risky for me?

With interest rates at record lows, is now the time to borrow to invest?

Your new years resolution to better manage your money starts now!

Christmas is over and the new year has begun. So what financial resolutions have you made for 2014? What has fallen by the wayside in the past and needs to be come back into focus?

Here are some very important questions you should try to find answers to over the course of the year

to give yourself a financial health check.

Superannuation

What fees am I paying? Have my returns been comparable to other funds? If you are in a ‘balanced’ option, is it appropriate for you? How is a balanced fund even invested?

Tax and Estate Planning

How can I increase my wealth and save tax? What will happen to my super, insurance and assets if something happens to me? Taking the time to ask yourself these questions will give you a valuable insight into your financial situation, and fill any gaps you may have in your finances.

Give yourself a financial health check MONTHLY STOCK TIP: Harvey Norman (HVN) Harvey Norman is in the early stages of an upgrade cycle.

Through the roll out of cost cutting initiatives and system upgrades, we see Harvey Norman being able to modestly increase margins and leverage off a potential return of confidence in the retail sector.

To buy stock in Harvey Norman please call Jeff White on 07 3600 8621.

Over the coming months Jeff White and Simon Milton of Morgans will try and answer all of these questions for you, as well as discussing other financial topics that you no doubt have been pondering and putting off investigating for some time.

To ask them any questions or continue any of these conversations please email jeff.white@morgans.com.au or simon.milton@morgans.com.au and they will try to help.

Big game hunting sparks online outrage

THE internet is ablaze with outrage after a permit to hunt an endangered black rhino sold at a Dallas auction for $A395,000.

Ironically the auction, held by the Dallas Safari Club, was to raise money for conservation.

Safari Club director Ben Carter said all money raised would go towards protecting the species.

He added that the rhino, which will be hunted by the winner, is old, non-breeding and would likely be targeted for removal because it has become aggressive and threatening to other wildlife.

Despite Mr Carter’s defence of the auction, it has sparked outrage in cyberspace and amongst animal rights groups, with the FBI even investigating death threats towards the Dallas Safari Club.

With only an estimated 4000 black rhinos remaining in the wild, many are claiming that they should all be protected due to their critically endangered status.

While sustainable ‘big game’ hunting in Africa helps raise money to protect animals against illegal poachers, it is undoubtedly a very divisive issue.

An article about a Queensland local and big game hunter published in The Morning Bulletin in 2012 sparked an intense debate online about the ethics of hunting animals to aid their conservation.

Despite strong insistence by safari enthusiasts that hunting animals contributes significantly to their overall conservation, data collected by the International Union for Conservation of Nature (IUCN) found that big game hunting in Africa is economically useless.

Although hunting turnover in Africa is estimated at $US200 million per year, the contribution to the 11 main hunting countries’ gross domestic product is a poultry 0.06 per cent.

The report does, however, identify hunting as an important tool for conservation in Africa, but suggests it could be better integrated into conservation strategies.

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Morgans is Australia’s largest retail stockbroking and financial planning network.

It is one thing to be clever and another to be

wise George R. R. Martin

Our advisers provide investment recommendations which are supported by award winning research. Clients have access to a wealth of experience in superannuation and self managed super fund advice, retirement and estate planning, portfolio management, strategic planning and personal risk insurances.

Morgans and CIMB – Please visit www.morgans.com.au to understand the products and services within our alliance.

Morgans Financial Limited ABN 49 010 669 726 AFSL 235410 A Participant of ASX Group A Professional Partner of the Financial Planning Association of Australia

Contact Simon Milton 07 3114 8652 or Jeff White 07 3114 8621 to discuss how we can help you. www.morgans.com.au/milton