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Tuesday March 29, 2016 200th Edition

M A G A Z I N E

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Shift Miner Magazine

CONTENTS NEWS

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5

BMA’s controversial reverse auctions

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CQ’s newest mine signs a customer

6

Mysterious Indian visit to Dawson Complex

11 Headlines from

Blackwater Review

(Our new digital service for that community)

7 5

Regulars

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6-17 Miner’s Trader 1 12-13 Around Town 18 Mad Mumzie on FIFO 18 Frank on impressing

11

the Ladies

19 Tom Wharton on Unions

Queensland mining community's best source of local news

SHIFT MINER Locally Owned and Operated

M A G A Z I N E

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Published by Fitzroy Publishing Pty Ltd A.B.N 72122739879 PO Box 1440, Rockhampton Q 4700

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BHP still in Carbon Capture BHP has teamed up with Canadian firm SaskPower to establish a carbon capture and storage centre. The miner will commit CAD$4 million per year over the next five years to fund the BHP Billiton SaskPower Carbon Capture Knowledge Centre to help manage greenhouse gas emissions.

BHP COO Dean Dalla Valle stated that developing lowemissions technology is a critical goal for the miner.

“By enhancing global access to the data, information and lessons learned from SaskPower’s unique Boundary Dam facility – the first power project to successfully integrate Carbon Capture and Storage (CCS) – we aim to stimulate broader deployment of the technology,” Dalla Valle said.

Boundary DAM is the world’s first commercial-scale carbon capture and storage process on a coal-fired power plant.

Reasons to feel secure in your job For the first time in years, there are some tentative signs that the outlook for Queensland coal could be improving.

While Shift Miner doesn’t put any stock in price forecasts (because they are always wrong) there is some evidence emerging that the painful transition the industry has been through may have put it onto a sustainable - if not super profitable - footing.

Respected analyst Peter Wright from Bizzell Capital Partners says investors finally recognise the enormous cost improvements that have occurred in mining businesses across Australia.

Since the turmoil that gripped the share market in January, he says mining stocks have rallied with companies like Fortescue and Whitehaven Coal increasing in value by 100% and 150% respectively.

Mr Wright believes this represents a broader realisation that it is not the end of the world for mining.

“I think the market needs to see a bottom, which it can use as a point of reference,” he told Shift Miner.

“I think oil prices at $25, Iron ore at $40, thermal coal at $50, met coal at $90 - all these are now being interpreted as the bottom of the market.

“I don’t dispute that China’s growth is levelling out - but people forget the aggregate size of the economy is double

what it was at the Beijing Olympics and even with slowing growth on double the economy - demand is monstrous, and ultimately the world needs things like Coal, Nickel, Uranium and Iron Ore. “When you think the small resources index has gone from 1200 to 1500 in the last few weeks - which is back from a high of 6900 you start to believe there is some reality re-entering the market.”

Aside from market dynamics, Mr Wright says there have been astonishing achievements in lowering costs, and some small but promising signs on price.

“The focus on low oil prices has overshadowed the reality on the ground,” he said.

“Diesel and labour form an enormous part of the cost structure for mining companies and the fall in prices for both these items have been amazing.

“One mining company I have been working with was paying $14 per tonne freight just over a year ago to land their products in China, now that price is $3.60.

“And for the first time we see the pricing contracts just starting to edge up and we haven’t seen that in a long time.”

In light of his cautiously optimistic view of the future, Mr Wright believes Stanmore Coal’s big punt on the Isaac Plains mine could be a very well-timed investment.

“I think Stanmore have got in pretty

close to the bottom of the market, and even on a worst case scenario, I think the Isaac Plains transaction is going to be a really good transaction for them.

“Through the history of mining, there have always been some massive deals done at or around these inflexion points in the market.”

Just last week a Chinese based coal analyst forecast rises in the price of thermal and coking coal this year of between A$9 and A$12 a tonne.

The analysts came up with the figures after looking at the implications of a decision by China’s centralised government to slash coal production by reducing the number of days a mine is allowed to operate from 330 days a year to 276 days.

According to the report, this will reduce the total amount of coal produced in China by about 330 million tonnes this year - or two-thirds of the current total.

Meanwhile in Australia, New Hope Corporation says it sees some signs of stability and recovery in the Asian coal market.

Last week New Hope reported an aftertax profit of $2.7 million for the six months to January, a significant improvement on the previous six-month loss of $23.1m.

New Hope also pointed to the doubling of the coal ship queue at the port of Newcastle as a sign of a recovery.

Adani not interested in Anglo mine A SPOKESPERSON for Indian miner Adani has ruled out their involvement in a pre sale tour of the Dawson coal mine near Moura by Indian nationals recently.

The Dawson complex is one of the oldest

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operating coal mines in the Bowen Basin and is just one of five Australian coal mines up for sale by owner Anglo American.

A miner at the Dawson complex told Shift Miner the visit was by Adani.

“Well we had every grader on site out tidying everything up before the inspection,” he said.

“The group that arrived were from India - and the understanding was that they were from Adani - but that was just the site rumour, so I guess it could have been wrong.

“But they did spend the day inspecting all parts of the mine.

“There have also been rumours that Mitsui, who already have 30% of the mine are interested in buying the rest of it.”

In a short three word statement Adani rejected the claims.

“That’s not correct,” the company spokesperson said.

An inspection and possible purchase of the Dawson mine by Adani would have signalled a major change in strategy for the Indian based company, who has invested enormous amounts of energy and money into getting approval to develop the greenfield

Carmichael mega-mine in the Galilee Basin.

Although the idea wouldn’t be inconceivable, because it immediately resolves their long-stated ambition of having a large reliable source of coal in Australia to underpin their growing power supply business in India.

Meanwhile, Adani continues to push on with the approval process for the Galilee Carmichael project, having been negotiating a compensation agreement with the Isaac Regional Council throughout February, and finalising all it’s landholder compensation agreements before Easter.

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BMA’s new procurement plan

A new reverse-auction procurement system being rolled out by BMA is likely to squeeze supplier margins further and could make work history and other nonprice qualities less important in the future.

Late last year BMA started trialling the new system for the first time in the coalfields but will use it more extensively this year for procurement from both local and interstate businesses.

In the past, BMA has put work packages out for tender, and suppliers then confidentially tendered for them.

However under the new system, suppliers will need to pre-qualify and then participate in an online reverse auction,

where they will bid against other suppliers of the same service or good.

So in other words, suppliers won’t just have one chance to list their best price as they would in a tender, they will - in real time - be able to lower the price to do work for BMA in competition with what other suppliers are offering to do it.

Shift Miner is unsure whether the new system will apply to part or all of BMA’s local procurement, although it will be used in BMA’s local buying program.

IN a short statement BMA said the system was being used elsewhere.

“Supply departments across the BHP Billiton Group have been using the eAuction platform for a number of years and our coal operations in Queensland and New South Wales have been progressively making use of the platform since November 2015 for off-contract purchasing of goods and services,” they told Shift Miner.

“The eAuction platform is an innovative tool that provides the opportunity for vendors to nominate the price they are prepared to charge to fulfil a purchasing request, often before the formal request for tender process begins.”

However BHP is not the first company to use reverse auctions to drive down costs, and given the gloomy outlook for commodity prices, and BHP’s $7.8 Billion

Stanmore mum on first customer Stanmore Coal is quietly optimistic that they will finalise deals with enough contract customers over the coming months to start exporting coal from their newly acquired Isaac Plains coal mine south of Moranbah.

The company made the comments, following their announcement before Easter that they had reached a significant coal supply agreement with a major Asian steel maker.

Chief Financial Officer Andrew Roach told Shift Miner they would like to say more about the new deal, but market realities mean they can’t.

“For a lot of the big coal buyers there is a strong commercial benefit to keeping the details of their supply agreements confidential - and in fact, confidentiality is hard wired into the contract,” he said “However we are in discussions with some other businesses, and once we have those finalised, we are hoping that we can say something more high level about where the coal is going in aggregate.

“But we are well progressed with a number of those discussions, and we don’t need too many production parcels under contract for us to start selling.”

Stanmore has begun moving overburden following the commissioning of its dragline last month, and primary contractor Goldings

is well advanced in its recruitment of around 150 people to the site.

The only obstacle now to physically mine and export coal from Isaac Plains is commissioning of the Coal Handling and Preparation Plant (CHHP) that Mr Roach says is close to completion.

“In an ideal world we would get all our contracted sales squared away soon and be ready to start exporting,” he said.

“But there may be a bit more negotiating over those contracts that might mean the timing may not line up perfectly.

“However we are in the last furlong for getting the CHHP operational, and we expect that to be completed in a matter of weeks and once that is completed it should be full steam ahead in a mining sense.”

Stanmore began blasting overburden at Isaac Plains in February following the Queensland Department of Environment and Heritage Protection signing off on their mining plan in late January.

In July last year, Stanmore Coal purchased the mine which was then in care and maintenance for just $1 from Japanbased Sumitomo Corporation. Sumitomo also loaned Stanmore money to cover contractual obligations, that Stanmore will repay when the mine is operating.

In 2011, Sumitomo Corporation paid $430 million for a half share in the Isaac Plains mine.

loss in the last financial year - there desire to lower costs can be well understood.

Sandy Jap, a marketing professor at the MIT Sloan School of Management in the US spent a year observing reverse auctions, and listed both the good and bad elements of the practice.

“By forcing suppliers to bid for contracts, such auctions can produce dramatic reductions in the cost of supplies,” he said in the Harvard Business Review.

“On the positive side, I found that these auctions not only save buyers money but also can increase the competitiveness of the supply base.

“But I also found that auctions tend to undermine relationships with suppliers.

“Sellers can feel exploited by the process, and when the event is over, they are then less trusting of the buyer.

“Furthermore, some suppliers cannot sustain sharp price reductions over the long term, yes, buyers may enjoy savings the first few times they run an auction, but those savings may come out of supplier’s’ profits.

“Those suppliers that can’t compete at the lower price levels will eventually be forced out of the industry.”

A little over six months ago BMA shocked the local mining service sector when it changed its terms from 30 to 60 days as it tried to manage cash flows during the current mining downturn.

Breaching vehicles stopped BMA have put their money where their mouth is by ordering the parking up of 50 of their own minibuses that were being used to ferry people around on-site, because they failed to meet BMA’s new five-star ANCAP safety standards.

Back in January, BMA rolled out the biggest light vehicle policy change in decades when it mandated that only vehicles with a 5 star ANCAP safety rating could be used on site.

While the company had been preparing for the change for years with its utility vehicles - and had given its contractors plenty of forewarning - the busses seemed to have been missed according to the CFMEU, who said they were operating on-site after the ANCAP deadline date on the first of January.

However the CFMEU’s Greg Dalliston says BMA has parked the vehicles.

“They did bring one down to Brisbane for inspection, but it didn’t meet the standard,” he told Shift Miner.

“So they have taken the decision to take them all out of operation. “ So they dug themselves a hole and now they have got to sleep in it.

BMA were contacted by Shift Miner but have yet to respond.

Below 50 for the first time

Central Queensland’s biggest mining accommodation provider CIVEO (formerly the MAC Services Group) has seen room occupancy fall below 50% and room rates under $70 per night for the first time in the last three months of 2015.

Over the full year, the results were slightly better with occupancy at 56% and room rates at about $74 per night. However, the fall in both these numbers have slashed total revenue for 2015 by around 36%.

Not surprisingly, the results simply reflect the reduced activity in the Bowen Basin in the wake of the major correction in commodity prices over the last five years.

For the US-based CIVEO, the result is made worse by the fact that the low Australian dollar means their revenue is even lower when converted to US dollars.

Overall CIVEO reported losses of $131 million against annual revenues of $518 million in the 2015 calendar year. Just a year ago revenue from their Australian, US and Canadian mining accommodation facilities was nearly $1 billion.

“In the fourth quarter, we achieved the results we expected and worked to position the company to be highly competitive in what is likely to be another challenging year,” CIVEO’s chief executive officer Bradley Dodson said.

“We expect to generate free cash flow and further reduce debt in 2016, and our confidence is supported by key contracts currently in place, recent contract wins, well-capitalised customers committed to long-term projects, and continued pursuit of incremental revenue opportunities and operational efficiencies.”

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Batchfire in talks with government A spokesperson for Batchfire Resources says they remain on track to finalise the purchase of the Callide mine from Anglo American.

“There are a lot of issues to be worked through, but we are on track to have a settlement - subject to a range of conditions - in late April,” he told Shift Miner.

Last month Anglo American announced that it had entered into an in-principle sale agreement for the Callide mine.

However, neither party has been prepared to shed much light on the deal until it was finalised.

Adding to the complexity of the sale is the involvement of the State Government who through CS Energy, own the Callide Power Station that relies on the Callide mine for coal supplies.

CEO for Batchfire Resources Peter Westerhuis has briefed Queensland Treasurer Curtis Pitt, Energy Minister Mark Bailey, Mines Minister Anthony Lineham and the oppositions Jeff Seeney on the sale process.

In the meantime, the future of the Callide workforce remains up in the air.

Mackay business swallowed up

Allan Ruming (far left) starts new chapter in mining sector

IT might be the worst kept secret in Paget, but after months of negotiations it’s official. Well-respected industry veteran Allan Ruming has sold his Group Engineering business to fellow Mackay based mining services company Mastermyne.

The agreement was formalised in the last month, and will see Group Engineering become art of the engineering and design arm for Mastermyne’s Mastertec business.

Mr Ruming will continue in his current role - albeit wearing a different shirt.

“I can’t tell you the exact price, but I will say it is a damn sight less than I would have got three years ago”, he

joked to Shift Miner.

“But this is an absolutely brilliant opportunity, and while it has taken a long time to get to this point, it opens up a world of opportunities.

“Realistically in the current mining environment, the most we could do on our own as Group Engineering was at best survive.

“In this climate, small to medium sized consultancy businesses cannot prosper, but with the backing and stability of Mastermyne, we can now aggressively seek work because we can design, construct, and maintain.”

Mastermyne and Group Engineering have been working closely for about 12

months and very closely for about the last five months, so no major staffing or operational changes are expected.

Buying local businesses has been a hallmark of Mastermyne’s growth over the last decade.

Since starting in 1996, Mastermyne acquired half of Capricorn Mining in 2006, PYD Mining Services in 2008, Infin-Tech and Highlands Mining in 2009, MTR Mining Services in 2010, 4sight Training Solutions in 2013, and then DMS Mining Services in 2014.

Looking to the future, Mr Ruming says while things are not going to be easy, they’ll have more capacity to fight for business.

“I think there is definitely more activity around, but by in large the industry is still in a holding pattern,” he said.

“There are very few large long term contracts around, and despite being fewer competitors, there is far more competition from those businesses who remain.

“But being part of the broader Mastermyne group means there are a whole suit of efficiencies and cost savings that we can get.

“Making acquisitions in a downturn like this is not something anyone is thinking about, and Mastermyne should be acknowledged for having the confidence to act, it’s diversified thinking.”

Peak Downs peaking The Fifo population

AN unrelenting focus on volume at the BMA Peak Downs mine is likely to see all throughput records smashed for the Coal Handling and Preparation Plant (CHHP) this financial year.

According to one Peak Downs miner, internal forecasts for the plant are that it will process more than 11 million tonnes of coal by June 30 - that is around two million tonnes more than the previous record.

“Everyone has been amazed at the production levels we have been able to get out of the CHHP,” he told Shift Miner.

“I think the general feeling was that around nine million tonnes for the year was the maximum achievable, but this year we are seeing some amazing results.”

The CHHP has been running at such high levels that the rest of the mine is struggling to keep it supplied.

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For the first time in years, the plant was shut down recently after rain stopped mining on site and the normally large feeder stockpile of coal finally ran out.

Meanwhile, at BMA’s Goonyella Riverside mine Dragline 4 has set a new record for the amount of dirt moved. The Dragline moved enough dirt to fill the Melbourne Cricket Ground more than twice in a single week.

The dizzying production achievements at some of Central Queensland’s largest mines underpinned record coal exports from Queensland in January, with just over 19 million tonnes exported - 8% higher than January 2015.

Queensland Resources Council Chief Executive Michael Roche said although industry was hurting during the commodities slump, there were record production levels across the sector.

“The coal ports of Abbot Point, Dalrymple Bay, Hay Point, and Gladstone all had their strongest ever January,” Mr Roche said.

“The Queensland government will receive royalties on those 19 million tonnes, even though one in every three Queensland coal mines is operating at a loss.

“It also illustrates that demand from Asia for Queensland’s high energy value, lower-emission coking and thermal coal remains strong.”

THE non-resident population of workers at work on a single day in June last year in the Bowen Basin, was just under 16,000 according to figures released by the Queensland Government Statistician’s Office (QGSO).

The figure represents a fall of around 36% from the peak in 2012 - but is notably just 4% fewer than in 2014 - suggesting job losses may have bottomed out.

While the figures are a useful snapshot for comparison - they do not give a complete picture of the number of people who make a living driving (DIDO) or flying (FIFO) to the mines, because those not rostered on at work on the day the survey is taken are not included in the count. The survey also misses the tumultuous last six months that have seen conditions deteriorate further with miner Cockatoo coal going into administration and the Baralaba mine shutting down.

However, despite those limitations, Queensland Treasury says the figures indicate that we may not have seen a downturn so much as a return to normal.

“The majority of this non–resident population change occurred in the Isaac and Central Highlands local government areas (LGA), where there is the highest level of coal industry activity,” they said in their report.

“Large numbers of non-resident workers associated with the CSG industry also temporarily boosted the non-resident population of Banana and largely offset

coal–related non–resident population losses in Central Highlands into 2013.

“Considering these influences, and viewed in a longer term context, the high non–resident population levels recorded in the Bowen Basin from 2011 to 2013 mark an irregular and temporary peak in overall activity.

“In that light, the lower non-resident populations recorded in 2014 and 2015 may be interpreted as a return toward pre-boom levels of activity, and do not necessarily reflect a substantial downturn in the coal mining industry.

“To illustrate this point further, the Bowen Basin’s non-resident population of 15,665 persons in June 2015 remains slightly higher than the pre-peak level of 2010 (14,615 persons), and for the four years preceding that.”

Mining camps continue to house the vast majority of miners commuting to work, although the viability of mining camps differs from region to region.The number of workers staying in camps in the Banana shire fell 42% in the 12 months to June last year due to the mining and CSG slowdown. The number in the Isaac region fell just 5% and in the Central Highlands the total number increased by nearly 20% off the back of some significant maintenance projects.

The total number of camps operating in the Bowen Basin is now 54 that are down around 15% on the year before, and the total number of beds on offer is just under 27,000.

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A beef injection The market for commercial office space is entering a recovery phase in Rockhampton, is continuing to fall in Mackay, and is nearing the bottom in Gladstone according to a report

by Valuers Herron Todd White (HTW).

While the outlook for Central Queensland commercial property remains stubbornly bleak overall in response to the ongoing downturn in the resources sector, HTW are anticipating strong beef prices will stimulate some investment in Rockhampton this year.

“Prime office rentals are likely to remain up to about $400 per square metre gross, with secondary rentals generally ranging between $200 and $250 per square metre gross depending on a variety of factors,” they said in the report.

“While the resources sector has weakened, there is stronger confidence in the cattle industry, and we anticipate that some graziers throughout the Central Queensland region may be looking to make some offfarm investment purchases in the area.

“This has the potential to tighten yields slightly in the sub $2.5 million range, however with few key investment opportunities presently on the market; this is yet to be tested.”

In Gladstone, there remains nearly no activity to speak of, apart from some tenants upgrading their office space.

“Over the past 12 months we have seen some reductions in rental levels of about

30%, and we anticipate this to continue until rentals begin to flatten out,” HTW said.

“Tenants who previously occupied tenancies on upper levels with relatively little exposure are now able to relocate to ground floor tenancies with street frontage at comparable rentals.

“This has been a result of falling demand for office accommodation since peak workforce numbers on local LNG projects were scaled back dramatically, and we are not aware of any new office accommodation under construction or in the pipeline.”

In Mackay, it is more of the same with an oversupply of office space and an under supply of demand because of the resources downturn.

The planned auction of a major office building in Wood Street, which is tenanted by three State Government departments was expected to provide a good insight into property values.

However Valuer Alan Finch says the property was removed from auction.

“We are not sure what happened with the sale, all we know if that on the auction day the property was removed from the list in Melbourne ” he told Shift Miner.

“We are still looking into the situation, but overall the uncertainty surrounding the mining downturn continues to undermine prices and rentals, and I can’t see this changing in 2016.”

Cockatoo not to take - or pay

IF everything goes to plan, employees with a priority claim against Cockatoo Coal will be the first to be paid their entitlements following the decision by creditors to accept a rescue deal offered by one of the company’s major shareholders Liberty Metals and Mines (LLC).

However large unsecured creditors like the remaining partners in the Wiggins Island Coal Export Terminal (WICET) and Aurizon will have to write off millions of dollars of bad debt following the restructure.

Under LLC’s rescue deal a $100 million loan facility is being offered to Cockatoo

in return for about $10 billion newly issued shares - slightly less than a third of all shares issued at present.

Seventy-eight million of the $100 million debt facility will go toward paying creditors’ claims, which is particularly good news for terminated employees and small-unsecured creditors, (owed up to $25,000) because they are likely to be repaid in full.

However it is a bitter pill to swallow for the larger unsecured creditors like WICET and Aurizon who will most likely receive just the first $25,000 of the money owed to them, irrespective of what is owed in total.

In the case of WICET, the cost of Cockatoo’s failure to fulfil the take or pay contracts for coal exported through the facility at Gladstone is estimated to be more that $600 million - the burden of which will be shouldered by WICET’s remaining partners.

Aurizon, who his owed millions of dollars in access charges, has just written it off as bad debt.

The rescue deal will have no effect on the rights of the secured creditors.

It is still unclear whether the decision by creditors to accept the bailout will mean a quick resumption to mining operations at the Baralaba mine which went into a care and maintenance a month ago costing around 75 jobs.

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$24 million CSG contract PUBLICLY listed resource sector services firm Valmec has won a two-year $24 million maintenance contract in the Surat Basin.

Valmec will provide preventative and corrective maintenance on Australian Pacific LNG’s (APLNG) upstream gas compression and power generating assets North and West of Dalby.

Valmec employs around 160 people in Queensland and WA, with fully equipped workshops in each state.

Australia Pacific LNG is jointly owned by Origin Energy, Conoco Phillips and Sinopec. They became the third CSG processing facility to start exporting gas in January this year.

At full capacity, Australia Pacific LNG’s two-train LNG production facility will supply nine million tonnes of LNG a year to some Asian customers, although primarily to project partner Sinopec that has an Offtake Agreement.

The important milestone for APLNG comes nearly 12 months after the BG Group was the first company ever to export gas from the Island, and six months after the Santos owned GLNG project commenced exports in 2015.

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Wandoan a suburb of Toowoomba

FOR the first time in its history and in a sign of the times, Toowoomba’s peak business body has held an enterprise evening 350 kilometres away in the small town of Wandoan.

To put that in perspective - it is the same distance from Wandoan to Gladstone, so would be like Gladstone Area Development holding a meeting there.

The decision by Toowoomba Surat Basin Enterprise (TSBE) to hold the event in Wandoan was so member businesses could hear first hand what is happening at QGC’s Charlie Project - one of Queensland’s few resources related construction projects.

It also reflects the importance of the CSG sector to businesses located all over the state and up and down the

CSG supply chain - including in the Southeast corner of Queensland.

TSBE chief executive officer Dr Ben Lyons said it was positive to see such strong support in Wandoan for Project Charlie.

“It was great to see such a strong turnout to hear from QGC in regards to their latest development,” he said.

“Project Charlie is the industry’s first example of ongoing investment within the Surat Basin resource sector with the $1.7 billion project representing the ongoing ‘sustain phase’ of projects, where smaller targeted locations are developed as new gas fields to keep supply to Gladstone for export.

“The project is expected to create 1,600 jobs in the next two years so it was pleasing to hear from Mr Hughes [ CPB Contractors] in regards to the project’s local content engagement and how they are engaging with local companies.”

The event was sponsored by TSBE Member and specialist telecommunications provider MarchIT who are providing telecommunications capabilities to the Project Charlie site and its workers through their SuratCONNECT service.

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Pay cut for Peabody employees The Fair Work Commission has allowed Peabody to terminate what it called a “boom time” Enterprise Agreement (EA) covering about 20 employees at the Coppabella and Moorvale Coal Handling and Preparation Plants.

With the old EA terminated, the FWC is optimistic that a new EA between Peabody and the employee representative CFMEU has a better chance of being nutted out, despite there having been nearly two years of negotiations and 12 separate bargaining meetings already.

At the heart of the deadlock between the CFMEU and Peabody over the new EA, is a disagreement over how much of the miners remuneration will be a performance bonus and how much will be fixed.

In its last and final proposal, Peabody offered a base rate and Short-Term Incentive Plan (STIP) of around 10% to replace the existing base rate and “Work allowance” valued at around $26,000 a year.

However, the CFMEU argued that proposal would result “in a wage cut of about $30,000 per employee” and force them to harden their position and consider responding with increased wage and other claims to offset the loss of the “Work Allowance”.

However in handing down its decision, the FWC sided with Peabody’s view that under their proposed EA, Coppabella employees would see their remuneration

go from $137,879 for a five-day roster to around $125,000, while workers at Moorvale would see their wage go from $187,814 for a six-day roster to around $179,000.

“In summary, the current agreement was negotiated to suit its circumstances at the time; it was inherited by Peabody when it insourced the operations of the two CHPP’s,” the FWC said.

“Even more importantly, it was negotiated in very different circumstances, and there has been a very significant change in the state of the coal mining industry since the Sedgman agreement was negotiated.

“In these circumstances, it would be reasonable to facilitate the negotiation of a new agreement that better reflects the current state of the industry, and would provide incentives for improved productivity.

“I recognise that there is likely to be a small but significant reduction in remuneration for the employees in question.”

The coal price applicable for term contracts in the fourth quarter of 2011 when the Sedgman agreement was negotiated it was approximately A$208 per tonne.

In April 2014, when Peabody ‘insourced’ mine operations, the coal price was approximately A$115 per tonne. Today it is now approximately A$95 per tonne.

The CFMEU has threatened strike action in response to the cancellation of the old EA.

Galilee rail in a decade?

THE Whitsunday Regional Council (WRC) has officially provided a report to the State Coordinator General outlining the approvals it will require before Adani can build its rail line through the Shire.

The report tabled by the Council’s planning department comments on the first 200 kilometres of Adani’s proposed 310-kilometre North Galilee Rail Project (NGRP).

Two years ago under the previous Newman LNP State Government, a Galilee Basin State Development Area (GBSDA) and corridor was proposed to accommodate the rail line. However, it cannot be officially established until all affected local government areas have given their approval.

The report shows for the first time how Adani intends to approach building the $2.1 billion rail project, which will have a carrying capacity of 100 million tonnes a year.

Work on the railway will start in the East and work West, passing through 16 cattle properties in the first 100 kilometres in an area known as MCU 4. Within this area to the West of the Abbot Point State development area, it’s proposed a train and rolling stock maintenance facility will be built, as well as temporary construction facilities and laydown areas. There will also be a 12,000 tonne per year cement batching plant that will generate around 15 truck movements a day.

The second section of line - known as

MCU Package 2 - spans from the northern side of the Gregory Developmental Road to North of Murray Creek.

Within this area, it is proposed a 300 person temporary construction camp (Rail Camp 5) will be built, with another concrete batching plant, and further laydown areas, and maintenance facilities.

The report has also flagged the installation of a water pipeline adjacent to the railway, which will not only provide water for construction, but also as a longterm solution to the water needs of the proposed Galilee Basin miners.

In tabling the report, the WRC says the project is critical for Bowen.

“The project is pivotal to the economic growth of the Bowen region,” they said.

“The Bowen region has experienced a downturn in the economy due to the closure of local mines and delays in commencement of major projects, and the NGBR project is expected to provide growth for existing and new business to the region and a range of employment opportunities.

“A local consent strategy is proposed to be implemented to ensure opportunities are afforded to regional businesses, with 20% of the construction workforce expected to be sourced from the area.

“During rail operation, around 369 workers will be required by 2026, and it is expected that they will be recruited from the regional area and based in Bowen.”

Time to change shirts

The future for Sedgman employees at the Daunia, Coppabella, Dawson, Caval Ridge, Lake Vermont, and Moorvale mines remains in limbo following the hostile takeover of Sedgman by CIMIC (formerly known as Leighton Holdings ).

In the end CIMIC picked up Sedgman for $253 million, or about a quarter of its boom time value.

CIMIC is the parent company of Thiess Contractors - the largest mining contractor in the world - who has significant mining contracts with BMA, Anglo American, Glencore, and Wesfarmers in Central Queensland.

The only hint as to what the future holds for Sedgman employees was given in CIMIC’s Supplementary Bidder’s Statement when it was released last month.

“CIMIC’s intentions are to reconstitute the Sedgman board, review the dividend

and capital management policies, and continue with plans for increasing market and commodity diversification,” CIMIC said in the statement.

“CIMIC intends to retain the services of Sedgman’s current operational employees in the ordinary course, and in cases where particular roles may no longer be required, CIMIC will attempt to identify opportunities for alternative employment within the CIMIC Group.

“CIMIC recognises the value of Sedgman’s employees, brand and operations, and as a consequence, it intends to continue the business of Sedgman.”

The $243 million bid for Sedgman represented a 35% premium to Sedgman’s value before the raid, and was endorsed by the board of Sedgman in the absence of a competing offer.

AUCTION “Durando” Marlborough, Qld • 10,739 acres 4,346 ha • Freehold

“Durando”

LOT 1

To be offered in 3 separate parcels Lot 1. The Homestead Block 467 acres

“Durando” homestead block comprising 467 acres (188.9 ha) of top quality creek flats fronting the southern side Amity Ck. The property is located between the well known stud property “Wamalgi” and “Granite Vale”. This property features the Durando homestead, a drafting yard and machinery shed. It is located about 3 km off the Bruce Highway with all-weather access. It has an excellent water supply from an electric pump on Amity Creek. The homestead has a magnificent view overlooking a big lagoon to the north.

LOT 2

Lot 2. The Marine Plain Block 5,285 acres

The northern part of the main holding being 5,285 acres (2,139 ha) of Freehold comprising predominantly top quality marine plains tending back to higher areas of good quality Coastal Forest.

This parcel is fenced into 4 main paddocks and 3 holding paddocks. There is a large set of drafting yards with “B-double” road train access.

Lot 3. The Brigalow River Block 4,987 acres

The southern part of the main holding comprising 4,987 acres (2,018 ha). This parcel is fenced into 5 main paddocks.

It is beautifully watered with a string of lagoons down the eastern side. All paddocks have at least one dam.

Predominantly improved Brigalow with lesser areas of coastal forest and marine plain.

LOT 3

Auction: 11.00am, Tuesday 10th May 2016 at the Gracemere Saleyard, Rockhampton, Qld. Note: Prior offers considered for the property “as a whole” or for any individual parcel.

Howard Mills - Licensed Real Estate Agent

LARGE PASTORAL SALES • Gracemere Saleyards Rockhampton 4702

Tel. 07 4933 3322 Mob. 0418 220 464 A/H 07 4934 0440

www.ruralpropertyservices.com.au

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Fuel through the floor

The oil price may have thrown the Australian stock market into chaos, but in the real local CQ economy, it has driven bulk fuel prices to the lowest levels in decades.

One modest Central Highlands fuel user told Shift Miner; he had never seen so much competition among fuel suppliers.

“It’s unbelievably cut throat here at the moment, with fuel prices changing almost continuously,” he said.

“Last week I took delivery of around 40,000 litres of fuel at $0.88 a litre - on the same day at the retail pump it was still above $1.20.

“It’s nothing for me to get three calls a day with different suppliers offering a different price to the one they are offering in the morning.

“It’s making a huge difference to our cost of operating.”

Given that fuel prices can account for more than a third of a mines operating cost (depending on the mine of course) the huge reductions in the price of bulk fuel is likely to go some way toward offsetting the pain caused by lower coal prices.

The average price for diesel across Queensland in 2015 was $1.33, which is $0.26 cheaper than in 2014 when the average price was $1.59.

Peabody to shut Burton

AUSTRALIAN and US coal miner Peabody Energy has announced it will put the Burton coal mine North West of Nebo into care and maintenance by the end of this year meaning the loss of around 300 jobs.

The company foreshadowed the closure last month, as it reported total losses of around $A2.6 billion due to historically low coal prices - particularly in the US where they have not enjoyed the benefit of a falling Australian dollar.

Despite the extremely difficult outlook overall for the company, it did report on some bright spots for their Australian operations, and remains confident that it will be business as usual for them - even if the parent company files for Bankruptcy protection in the US, which it flagged before Easter.

Per unit costs in Australia fell to a new

record low of just over $51 a tonne, which was enough to offset a $420 million dollar fall in revenue due to the current low coal prices.

This meant earnings from their Australian operations actually increased by $62 million in 2015.

Peabody produced nearly 36 million tonnes of coal at its Australian operations selling just under 16 million tonnes of metallurgical coal for $A104.85 per tonne on average.

In addition, they sold 12.6 million tonnes of export thermal coal at around $A75 per tonne - with the remainder delivered under domestic thermal contracts (prices calculated on today’s exchange rate).

Peabody Energy President and Chief Executive Officer Glenn Kellow said in February they would continue to consolidate in 2016.

“Against a brutal industry backdrop, the Peabody team delivered a strong operating performance as we improved safety, achieved over $620 million in lower costs, further reduced capital, streamlined the organisation, and advanced multiple work streams to address our portfolio and financial objectives,” he said.

“It is clear that more must be done, and we are taking further steps to confront a prolonged industry downturn by targeting additional cost reductions, advancing noncore asset sales, and pursuing aggressive actions to preserve liquidity and de-lever our balance sheet.”

Peabody acquired the Burton mine in April 2004, and in 2014 the mine produced 2.1 million tonnes of coal via its operations contractor Thiess who employed around 900 people.

However midway through 2014, Peabody slashed the mine’s workforce by two-thirds as it responded to falling coal prices.

“The Burton Mine is Peabody’s highest unit-cost operation, and production levels are not sustainable in the current market environment,” the company said at the time.

“Following negotiations with the contractor-operator, production levels are expected to be reduced to approximately one million tonnes per year, as the operation targets lower-cost reserves using reduced fleets of equipment.”

QGC wants more locals

As it embarks on the $1.7 billion Charlie project at Wandoan, gas company, QGC says it has undertaken a root and branch review of how local business can win work contracts.

While the company is not moving away from a tendering model that promotes competition among suppliers, it has recognised that the old procedures needed refining.

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29th March 2016

The biggest changes will be that suppliers can now register for work direct at the company’s website (rather than through third party websites like ICN), and they will break down large packages of work into smaller individual packages where possible, to make it easier for local business to participate.

Where this is not possible, QGC says it will set minimum local content requirements on large work packages.

“Actively encouraging local procurement is one of the four objectives of our new Local Content Policy,” QGC Managing Director Tony Nunan said “While procurement results in 2015 reflected the end of construction of the first phase of the QCLNG project [in Gladstone], the company’s 2016 spend will benefit from the $A1.7 billion Charlie development announced in November 2015.

“An Australian Industry Participation Plan is being developed for the Charlie Project.

“To date main works contractor, CPB Contractors, has already awarded 24% of almost $A100 million in sub-contracts to businesses located in the Surat Basin.”

QGC says in 2015, they spent $A6.2 billion with over 1,700 Australian suppliers of which 71% was with Queensland business.

BLACKWATER

REVIEW Snapshot DIDO Dinner Register at shiftminer.com for weekly updates

One office 41 years

IN A generation when many of us will have six or seven different jobs in our lifetime - the achievements of Blackwater local Rex Summerville is impressive.

Last month, Mr Summerville was recognised by BMA for 41 years of continuous service - 37 of which were as the operator of dragline 39 at Blackwater mine.

He got his start at the mine in 1974 after his brother told him to “get on his bike” and leave picturesque Nambucca Heads in NSW as Thiess Brothers were looking for dozer operators at Blackwater.

He got an interview, and 41 years later he is still there.

Today (or perhaps more accurately at the height of the boom) it is not uncommon for a young operator to be recruited directly into dragline operations as a specialist role.

However, forty years ago, Mr Summerville told local media it was a far longer path to the office-cabin of a mining dragline.

“I started on DRE39 in August 1978 when it walked off the pad I got an opportunity as an oiler and learnt to operate from there,” he said.

“The approach to safety has made the biggest steps forward, things were pretty casual back then, but so was life in general.

“It’s been a great job, and I’ve been lucky enough to have decent bosses, I think the roster these days is the best part about it as it allows for a good lifestyle.”

And a tip for the current crop of miners coming through!

“I’d like to see those starting out spend time working in construction first because I think it might help them better appreciate what they have once they do start working in mining,” he said.

Sandstone the next big thing in Blackwater?

FIFTY-ONE local businesses are hopeful that Sandstone might be able to fill the void left by the downturn in demand for Blackwater’s other great asset - coal.

The businesses have put their money behind an initiative by the Central Highlands Development Corporation (CHDC) to market Blackwater’s Blackdown National Park alongside the world famous Carnarvon Gorge National Park to our south.

Known as the “101 things to see and do in the Sandstone Wilderness” initiative, it will be launched by CHDC’s tourism development officer Peter Griggs next month at some major tourism expo’s in Southern Australia.

At its heart, it is about trying to get

more people staying longer in Blackwater.

“It’s just one of the little strategies that we have put in place,” he told the Blackwater Review.

“We know Blackwater is struggling, but we are trying to make Blackdown National Park and Blackwater itself the next stop after Carnarvon Gorge for tourists heading North, and the reverse for those heading South.

“Each of the businesses who has advertised in our flyer have to offer tourists a special discount, so it’s about trying to get tourists to stay longer in town - which means they spend more while they are here.”

Australian Tourism does better when the Australian dollar is low because for

many overseas travellers the cost of visiting Australia falls, meanwhile for the local traveller, a trip to the USA suddenly gets more expensive.

This is why it is such a good compliment to the coal sector whose prices are usually in the doldrums when the Australian dollar is low like now.

The CHDC is also in the final negotiations to open up one of the mines near Blackwater for bus-based tourism.

“I think the current economy has pushed local businesses to look elsewhere for revenue and this is the biggest buy-in we have had from Blackwater businesses for a tourism initiative,” Mr Griggs said.

Online may be the fastest growing retail platform for Australia’s heavyweight grocers - but residents in the Bowen Basin are concerned it is undermining the very future of their communities.

The opportunity to buy your groceries online and have them home delivered is being embraced by shoppers across Central Queensland - who love the convenience and increased range of foods available.

In a town like Mackay the online service is an extension of the physical store, however in a small mining town like Middlemount, the online service is in competition with the local store because home delivery can be done more efficiently from a larger nearby center like Emerald.

The implication being that increased competition will undermine the viability of the shop front grocery suppliers in town who will then eventually close their doors, leaving the town with no way to get groceries other than online.

Currently, there is a delivery of groceries by one of the big retailers to Tieri every day except Sunday, and both Coles and Woolworths are building a business case to extend that to Middlemount and Dysart.

The arrival of this service will take revenue directly away from businesses like, Cornetts IGA who has shops in Dysart, Middlemount, Moura, Glenden, Clermont, and Collinsville.

In Blackwater where there is already a Woolworths in town - Coles have started home delivering because they were already providing services to the nearby Curragh mine who wouldn’t buy groceries at Woolworths.

Coles and Curragh are both owned by parent company Wesfarmers.

The issues are dividing consumers in Blackwater.

“Well if we don’t support them they will go for sure,” one resident said.

“Look how many empty shops & houses we already have, FIFO/DIDO is going to f*#k our town as they don’t support Blackwater they take the money & run.”

“I have two kids to feed and I am fed up going to woolies, and there is no milk bread and the fruit is rotten.

What else am I expected to do? Starve or go to Coles,” responded another.

Shift Miner understand Woolworths have a long-term lease at the Blackwater Mall and have given no indication that they may be considering moving out of the town.

Cornetts IGA refused to comment on the story.

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Cost of not getting work Procurement and price

PROJECT specialist for the ICN Queensland Mark McKenzie, says the expensive process of unsuccessfully tendering, is likely to remain a painful part of local business for the foreseeable future with few major projects listed and intense competition for the work packages that are listed.

Mr McKenzie made the comments in Emerald at a procurement forum hosted by the Central Highlands Development Corporation.

He sympathised with businesses trying to carry the significant costs of unsuccessfully tendering at the moment.

“Tendering is a fair process but it is a difficult process,” he told Shift Miner.

“I just think there’s an enormous amount of waste when you consider that you fill in a tender and go through the whole process right down to price, and if they find you don’t meet the criteria right at the top of that, they don’t even look at the rest of it.

“But you still have had to go through all that effort.

“I know that if it is a public tender the process says everybody has an equal chance to do it, but you get other tenders like limited tenders where you have prequalification beforehand, and I think if you were able to separate pricing from the other things like systems and compliance issues, perhaps you could decrease some costs and increase productivity.”

While Mr McKenzie says ICN Queensland would like to help address some of those problems, he says its core function is to provide full, fair and reasonable access to locals for major projects, of which he says there are very few at the moment.

Although he says a small bump in the coal price could trigger a whole range of projects that are currently lying dormant “There are quite a few construction projects, but unfortunately, there has been a downturn across the board,” he said.

“There are all these coal mine opportunities lurking, but they have been put on hold.

However on the question of what the ICN felt the future held for one of their most well-known users - Adani - Mr McKenzie was not able to reveal much.

“Ha ha ha...I just read what’s in the newspapers,” he said.

THERE were no surprises in the take home message from the Central Highlands Development Corporation (CHDC) mining procurement forum in Emerald recently with the region’s biggest businesses saying they are pulling out all stops to get the lowest price they can from their local suppliers.

Among the companies presenting at the event were BMA, Downer EDI and Wesfarmers Curragh, all of whom have undertaken significant reviews of the way they source goods and services in the Bowen Basin.

While each company is taking a slightly different approach, there are some common threads. Suppliers can expect a more rigorous prequalification process and competitive and price focussed tender evaluation.

An example of this would be the recently rolled out reverse tender auction process adopted by BMA in the coalfields.

The news will be particularly relevant for OEM hardware suppliers according to one speaker who said they are likely to enjoy less brand loyalty than they might have in the past as purchasers make price their first consideration.

However, the good news is that there is still plenty of work being offered, with Curragh to release significant new work packages in the 4th quarter of this year

such as dragline shutdowns, dewatering, fabrication, concrete remediation and a range of other off-site services.

Next month Downer EDI will roll out a new mining procurement initiative for its $100 million worth of work that is not contracted out. Under the new policy, work valued at less than $10,000 will require just a single verbal quote, work between $10, 000 and $25,000 will require two verbal quotes and from $25000 to $100,000 will require three verbal quotes.

Everything above this will go through a written quote process.

Speaking after the event, CHDC General Manager Sandra Hobbs said it was clear businesses needed to be prepared to meet the market.

“Innovation was mentioned several times, businesses need to be able to work together and look at how they can value add, and look at how they can meet the criteria of those bigger businesses,” she told Shift Miner.

“We all know industry is looking for high-quality supply at the lowest possible price, and I guess it depends on whose standard on what that level is.

“But obviously business still needs to be sustainable, there is no point quoting on work that is going to decrease the sustainability of their business.”

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.

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Anglo tests smoko breaks The Supreme Court has ruled in favour of a minority of workers at the CapCoal complex near Middlemount, who were resisting attempts by Anglo American to reduce rest breaks from three to two on a 12.5-hour shift.

While many mines have abandoned 12.5-hour shifts altogether since the beginning of the downturn, Anglo had sought to retain the shift length at the mine but reduce the number of breaks to enhance productivity.

However, while 24 of the 30 workers involved had agreed to the change, six were holding out, and the Queensland Mines Inspectorate ruled the change could only be enforced if all the workers agreed to it - not just the majority.

In response, Anglo launched a case in the Supreme Court three months ago to push through the changes but last week Justice Lyons ruled workers must agree unanimously to the changes, meaning the company must now go back and gain the consent of all workers.

An Anglo-American media spokesperson told Shift Miner they took the issue to court to “seek clarification about (industrial) legislation”.

Which council wants your business?

A review comparing council charges for developing industrial land has revealed huge variations across the Bowen and Surat Basin.

The Western Downs Regional Council recently tabled a review that benchmarked industrial infrastructure charges by lot size, across eight different similar council zones.

While the most obvious difference was that some councils like Mackay, Toowoomba, Wellcamp and the Western Downs charged on a sliding scale that increased with the size of the allotment, others like Rockhampton and the Central Highlands do not. However, considering this, the figures show a huge variation in the charges being applied.

For example, the infrastructure charge on a 1000 square metre block in Mackay starts at just over $26,000, but rises to more than half a million dollars for a 20,000 square metre block.

In Rockhampton, the charge is a flat rate of between $12,000 and $21,000, depending on where you build, and irrespective of the lot size.

The Central Highlands Regional Council charges more than $86,000 that is between four and seven times higher than the Rockhampton region.

Council charges in Rockhampton were the lowest in the Bowen and Surat Basin.

In the Western Downs Regional Council area where much of the upstream CSG development is occurring, Council charges vary between $12,000 and $139,000 depending on the size and location of the land being used.

Western Downs spokesperson for planning, Councillor Ray Jamieson said the figures were accurate, and compared like for like.

“We did benchmarking between the different shires, so there is some science supporting those figures,” he told Shift Miner.

“You would have to ask individual councils why they use a flat rate or a sliding scale rate, but from the Western Downs Regional Council point of view, our charges will ultimately make more projects viable, creating more jobs and economic growth over the long term.

“They give the Western Downs the ability to compete with other cities and regions for development projects and create the right environment for developers to progress their ideas.

“Our charges are angled to reflect the type of economic development we want, and generally get.”

Big test for Take or Pay LEGAL action launched last week by coal haulage business Aurizon against the owners of the Wiggins Island Coal Export Terminal (WICET) in Gladstone will be watched closely by local miners, because it will test the strength of “Take or Pay” (TOP) contracts in the Bowen Basin.

Aurizon is taking seven of the original eight owners of WICET to the Supreme Court after the group of coal miners challenged the validity of the TOP contracts they entered into at the height of the coal boom and sought to reduce the size of their contracted payments.

According to Aurizon, they spent $800 million building rail links to the new coal terminal in 2013, and in return, they successfully negotiated with all the parties for above regulation returns on their investment.

However Aurizon says talks to resolve the dispute have proved fruitless and they have consequently taken legal action in the Supreme Court of Queensland to “assert its contractual rights under the project deeds”.

Take or pay contracts have been blamed for exacerbating the current oversupply of coal onto the world market because they make it more expensive for miners to reduce exports.

Aurizon has previously forecast that the dispute could reduce earnings before interest and tax (EBIT) by up to $27 million annually over 20 years.

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$ 67,000

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Shift Miner Magazine

Off Shift

www.shiftminer.com

Frank the Tank’s Dear Frank,

A few weeks ago I met a girl out at a nightclub and, in order to impress her, I told a few white lies. Specifically, I said I was an exceptionally skilled guitarist and that I played A grade footy. As it turns out, things are working out between us and we’ve been dating, but now she wants me to play guitar for her, and with footy season rapidly approaching she’s asking when she can come and watch me play. How can I tell her that I was lying without her breaking up with me?

Todd, Rockhampton

Well Todd, let me start by saying that I am a firm advocate of telling women lies. In fact, some of my greatest sexual conquests have come on the back of monumental fibs.

Last year I convinced two Swedish backpackers that it was Australian law to submit to a full cavity search upon entering any establishment that served beer. I can assure you that was the most entertaining pub crawl I’ve ever been on, and well worth the subsequent term of imprisonment.

When it comes to telling a great lie it really all boils down to how committed you are to making it seem true. I once went a whole month without speaking in order to impress a woman who thought I was a mute. Unfortunately I came unstuck when I yelled out in bed, she may not have been so upset if it was her name that I yelled out, but I can’t be expected to remember every minor detail about a woman.

I am sensing from your letter, Todd, that you may not

“Streakin” good love advice be willing to learn the guitar or sign up for football to impress your girlfriend. Fear not though - I have a few aces up my sleeve. Now, drugging people often gets a lot of bad press, but it is a seriously underused technique in the dating world. Mix your girlfriend up a nice cocktail, add the ‘secret ingredient’ and when she starts to get groggy put some guitar music on the stereo and a game of footy on TV. When she regains consciousness in the morning ask her what she thought of your musical and athletic prowess. As she sifts through her drug addled mind for answers she should receive flashbacks of watching football and listening to the guitar, and naturally, she’ll think it was you she was watching and listening to.

Repeat this process every Friday night for a long and healthy relationship. If you fear your girlfriend is getting wise to the repeated druggings it might be time to

call it quits, unless you enjoy the quaint charm of prison food and sodomy.

Frank

SENSIBLE SUSAN Todd, If you’ve been seeing this woman for a few weeks she obviously thinks you are more than just a football playing guitarist. My advice is take her out for a nice dinner, and then come clean.

Let her know that you were only trying to impress her, and with a little luck she’ll be flattered. If she breaks up with you just because you’re not a gifted musician or athlete, then perhaps she’s not the right girl for you in the first place.

Susan

MadMumzie.com

FIFO for you? Not for me!

My daughter and I were excited to fly together for the first time recently.

At the airport to visit my oneweek old grandson, I began to ponder this question.

Does working FIFO lifestyle take away the excitement of flying?

My tradition is to have a beer at the bar before departure.

Our local airport has an outside bar area to view the planes and have a smoke (if you must) among the palm trees.

As we were madly taking selfies for Facebook and the family, we were discussing if we should skoll our drinks because we had to board in 5 minutes.

Where did the time go?

It was at that moment we realised there were no planes on the tarmac…zip, nothing, nada.

Just what did they think we were going to board?

Then came the announcement on the speaker system: “Due to the late arrival of the flight, we will now board one hour later”. Glad

18

29th March 2016

we didn’t rush our beers, in fact, we had time for another.

These delayed flights would do my head in, but what about the people who have to pick you up week in week out? How annoying.We were getting a cab, so luckily our late arrival did not put anyone out.

Bugger doing this every break like FIFO miners have to. Flying with my sister years ago I was super excited, but she was utterly bored after way too many flights from living the FIFO life in WA for decades.

I ran into a few other miners I knew, one works FIFO and does this all the time. As we split to head to the back stairs, he tells us we have the worst seats - the middle means getting off last.

He was row 5 and says he tries to get the emergency row 1- first row off when landed.

We find our seats and settle in, but then a bloke comes to our row and says “you’re in my seat”. Of course, we thought it was us, but

it was the guy sitting next to me.

He put it down to his “night shift brain”, a FIFO worker apparently.

Time for our in-flight food and drinks. A guy in my crew was in front of us with his wife and cute little boy.

They got their food first, and we were - you guessed it - last.

That would be another tip, preorder your food when you book your flight. I didn’t even know you could do that.

Our flight made up time (is it because it’s all downhill?) we came in hot, no circling the airport, straight in, so I hastily turned off my iPad. I could fly and write all the time. Hmm maybe FIFO isn’t so bad after all, think how much work I could get done!

Mad Mumzie X Google “Madmumzie” to go to my website.

Shift Miner Magazine

Off Shift

www.shiftminer.com

“Wharts” and all No one can say with any real honesty that mining unions didn’t do a great job for all mine workers - and I know because I spent many years on both sides of the fence.

However, there have been a few issues that I think have undermined the movement in the last decade or so.

Firstly, unions hung on to some old policies that were long past their use by date.

Secondly, union didn’t see - or chose not to see - that companies with the support of both sides of politics were setting rules and introducing laws that that were making them irrelevant in many areas of industrial relations.

Thirdly, there were big changes occurring in the type of people who were entering the industry and the ranks of the mining movement.

Many of the old union people were retiring, and while they may have been very hardline, they were nonetheless tireless workers for the rank and file.

The new breed of people coming into the industry are operating in a new world with different laws and work practices. Many of which were changes largely delivered by

pay packet, but I must admit that in many cases FIFO makes sense at many mines.

If you were to ask me what I thought were the biggest problems affecting mineworkers today, it is that Enterprise Bargaining has gone too far, and the growth in labour hire.

Labour hire can be great for mining companies and profitable for their owners, but for the worker, you’re often on less money, with no job security and that means you can’t even get a loan to buy a home.

One might ask how using a middleman can make it cheaper. Well the answer is easy; the worker pays for it out of his wage in a roundabout way, so that the employer and labour hire company wins every way.

In my opinion, there is room and a necessity, for a certain number of casual workers in the mining sector, but it

the big union battles in the 60’s and 70’s.

There is a new breed of miner today who understandably wants a nice house and car and have kids at University. But they also need money coming in to keep up their repayments. This makes them very reluctant to go on strike.

In the past, most miners didn’t have the same aspirations and were proud of the fact that their sons would follow Dad into the mines and their daughters would get a job in town and marry a local miner. These people were salt of the earth Australians, were generally happy with their life and fought the battles that won many of the conditions that miners in the industry enjoy today.

Now another new miner has arrived.

The fly in fly out (FIFO) miner who has less interest again in the industry and mining towns. They just want that big

by CQ mining stalwart

Tom Wharton

should be limited to a percentage of the workforce. There should be time limits on how long someone can be kept as casual.

It’s a different world today for unions, and they have to fight with modern weapons - not the old ones.

However in the end, a union is only as good as its membership, and it’s the membership who have to step up to the mark a little more.

About the author: Tom started work at Moura mine around 1962, and has since held official positions with the unions as well as leadership roles for various mining companies.In 1999, he took a voluntary redundancy from his role as a process coordinator, but re-entered the industry in 2001 as a dragline supervisor and then later as an Open Cut Examiner. He has worked at mines across the Bowen Basin.

About the author: Tom started work at Moura mine around 1962, and has since held official positions with the unions as well as leadership roles for various mining companies. In 1999 he took a voluntary redundancy from his role as a process coordinator, but re-entered the industry in 2001 as a dragline supervisor and then later as an Open Cut Examiner. He has worked at mines across the Bowen Basin.

7 2 3 4 6 MEDIUM

9 1 6 2

PUZZLES 7 3

1 5

8 6

9 8

1

2

3

4

5

9

3 8

8

6

7

10 11

12

13

14

7 9

17 19

15

16

18 20

21 22

5 3

8

24

4 6

25

26

27

28

29

30

23

ACROSS 1. Judges’ rooms 5. Pinches (nose) 9. Ironing 10. Tripoli native 12. Reprocessing 13. Early anaesthetic 14. Bushman’s bedroll 16. Insist upon 19. Returned to health 21. Kick out 24. Snow drop 25. Tiredness 27. Naked 28. Finish off 29. Abhor 30. Self-centred people

DOWN 1. Frolics 2. The A of CIA 3. Simple 4. Classifying 6. Wrecked cars (5-4) 7. Wherever 8. Soldiers on watch 11. Stare lustfully at 15. Foam-crested waves 17. Very insightful 18. Neat & respectable (5-3) # 79 20. Daybreak 21. Addressing crowd 22. Thoughtless 23. Financial holdings 26. Unsuitable

LAST EDITION’S SOLUTIONS D R AMA T I E W G R P L A C A T E A R I L R E D U N D A T S N C L OD E C E V E H I C L E E U H C N I C H E H I K R O N E L S ON G E U S A D I S T

8 2 9 3 4 6 3 8 2 1 7 5 SHIFT MINER 1 7 Handy Cross 2008 - (15A grid) ShiftMinerHandy105s. pdf © Lovatts Publications 14/12/2010 5 4 6 9

7 5 1 6 4 9 8 3 2

4 7 2 9 3 1 5 6 8

C

MA L H A A C N T E A O R P A T E J S E T E A D A C H L M R L OC A L I U Z F A S B E S T D

9 6 3 2 5 8 4 1 7

A R E A G U L A I R L O Y

5 1 8 4 7 6 2 9 3

3 2 5 7 9 4 6 8 1

6 4 9 1 8 2 3 7 5

D A S S T O R N I E S H A E S S S E T O S

1 8 7 5 6 3 9 2 4

# 80

Numbers You Can Count On* *When audited by the CAB

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

M A G A Z I N E

www.shiftminer.com

Proudly Audited by

For more information visit www.auditbureau.org.au

29th March 2016

19

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