SHIFT MINER Monday 25th October 98th Edition 2010
The Queensland mining community’s best source of local news
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Why mining’s no longer Australian made CENTRAL Queensland heavy industry is likely be the big loser as modularisation and the strong Australian dollar combine to make it less competitive on the global stage. Modularisation is the process of building different parts of a large piece of infrastructure separately and then assembling them on site. There has been an increasing trend in the Australia mining sector to have individual modules engineered overseas in lower cost Asian countries. At the recent Golding Industry Conference in Gladstone, a number of businesses expressed concern the trend would continue during the development of the LNG sector. Asia Pacific LNG (APLNG) site manager, Danny O’Dell, said its Curtis Island plant would be built using a modular approach. He said the modules would range from smaller more manageable sections, to huge pieces weighing thousands of tonnes. While Mr O’Dell would not give any indications as to what percentage of the engineering work might be done locally, he did say that if an Australian company was “cost competitive, safe, reliable and dependable� there would be scope to work something out. Traditionally, Asian competitors have had an advantage because of lower labour and machinery costs, and the soaring Australian dollar is only widening that gap. One of the most prominent examples of modular construction is Waratah Coal’s proposed China First coal project at Alpha in the Galilee Basin.
Under the current deal being negotiated by Waratah’s owner Clive Palmer, virtually all the engineering work and the lion’s share of the mining process would be undertaken by Chinese. The Metallurgical Corporation of China would be the primary mining and construction contractor, with three other Chinese businesses listed as the sub contractors. Last year Waratah Coal’s managing direc-
tor, Phil McNamara, said the massive project would be almost exclusively built, operated and designed by the Chinese - but under Australian supervision.  “We will need to make sure everything is done to Australian standards,� he said. “There will be a high level of input from Australian engineers, but the bulk of the heavy structures will come from China.�
THE MAC’S NEW MEAL DEAL
The dare to help miners kick the kilos
The Partners: John Taylor - LL.B Sharon Smith - BEc/LL.B Hons Craig Worsley - LL.B Greg ĂŠ
Carroll
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t The final vo er’s Shift Min Most Eligible d Bachelor an Bachelorette News 120 mining accidents in September  page 4 News No broadband in Moranbah  page 4 News How Tieri stacks up as a town  page 10 Around Town Moranbah’s pink ladies  page 15
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Money Matters Where are CQ’s rough diamonds?  page 26 Plus Win a pair of Steel Blue work boots  page 16