SURAT BASIN
NEWS
18 June 2015
INSIDE Further trouble for Linc Energy Page 3
Inquiry into FIFO lifestyle underway Page 7
Business confidence set to rise Page 12
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SURAT BASIN NEWS
THE NEWSPAPER
JOURNALIST'S
NOTE
THIS edition of Surat Basin News touches on the wide range of key issues which are relevant to the region both now and in the future. Oil and gas giant Linc Energy has serious questions to answer over its alleged involvement in the contamination of soil at Hopeland, near Chinchilla (see page 3). While the company strongly denies the accusations put forward by the Department of Environment and Heritage Protection, local farmers are furious that their land could have been unnecessarily harmed. This is a legal battle that has already played out for more than a year, but is seemingly still far from over. Meanwhile, the Western Downs and Maranoa regional councils have entered submissions into the State Government’s inquiry into fly-in, fly-out (FIFO) and drive-in, drive-out (DIDO) practices (see page 7). The outcome of the review will be met with great interest from Surat Basin community members, and hopefully will shed light on the impact of FIFO/DIDO workforces have on small towns, as well as their mental health affects. Finally, the 2015 Surat Basin Energy and Mining Expo concludes today. Held at Toowoomba Showgrounds, this year’s expo took a slightly different approach by including a greater representation of other crucial industries, such as agriculture. It’s an exciting time for the region’s farmers, particularly with the potential for new market opportunities that could be available through Toowoomba’s Wellcamp Airport.
THE VISION
The Surat Basin News publishes every Surat Basin News will allow local month and will be delivered via the four businesses to network and dominant newspapers of the region: the communicate with everyone in the 1200 Chinchilla News, Western Star, Dalby sq km basin, providing unprecedented Herald and The Chronicle. It will reach access to new clients and markets. It the homes and offices of almost 50,000 will give a revealing insight into major people living, working and playing in the industry while lifting the veil on current Surat Basin, connecting the business and and proposed developments. It will be mining communities throughout the there for each and every announcement booming region. Surat Basin News is a shaping the region's future while necessity. It was born out of a passion for profiling the colourful characters that Australia's fastest growing communities define our communities. — a passion for a region of unbridled potential and a future of vast economic growth and opportunities. The newspaper, professionally designed and regionally The Surast Basin News is inserted into topical, will be a must read for anyone the four dominant local newspapers for associated with the exciting Surat Basin. the region: the Chinchilla News and Murilla Advertiser, Western Star Roma, Dalby Herald and The Chronicle Toowoomba. Surat Basin News has gone online to ensure our readers in every corner of the country has the latest news sent directly to them. Newsagents in - Chinchilla, Roma, Dalby, Gladstone, Moura, Toowoomba, Calliope
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THE
TEAM GENERAL MANAGER Erika Brayshaw Chinchilla 07 46729921 manager@suratbasin.com.au
ADVERTISING TEAM Greg Latta Chinchilla 07 4672 9927 greg.latta@chinchillanews.com.au Bobbie Gorring Chinchilla 07 4672 9930 advertise@suratbasin.com.au Roma 07 4578 4103 Nicole Boyd-Taylor Dalby 07 4672 5500 nicole.boyd-taylor@dalbyherald.com.au
PAGE DESIGN Beth Walker
SURAT BASIN NEWS 12 Mayne Street Chinchilla Q4413 PO Box 138 Chinchilla QLD 4413
UPDATES Regular updates on www.suratbasin.com.au
PUBLISHED
The Surat Basin News is published by Chinchilla Newspapers Pty Ltd 12 Mayne Street Chinchilla Q4413
THE
INDEX
The Surat Basin News is printed by APN Print 50 Industrial Avenue Toowoomba
IN THE NEWS
FRONT COVER PHOTO
Supplied by Australian Events
Mining lifestyle appeals to women .........5 Funding for farmers ..................................6 Council pushes for local workforce ........7 Middle East Opportunity event .............38 CSIRO reviews methane emissions........8 CareFlight charity golf day ....................39 Bright future for LNG................................9 Energy and mining expo.........................40 Resources royalties overhaul ................41 Big rig bliss................................................42 Inspiring a women workforce................43 Local boxer lends a hand ........................11 Rise in business confidence ...................12 Innovative equipment unveiled .............14 Hawke to address luncheon ...................15 Expo redefined by new interest ............16
PLACES AND FACES
DOWN TO BUSINESS
OPINIONS 32-36
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THIS WEEK
Questions to answer
New complaint filed against Linc Energy The Department of Environment and Heritage Protection voiced their concerns in court last week
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detailed investigation, EHP alleged Linc Energy operated its trial underground coal gasification plant outside its environmental authority, causing contamination in the form of gas to escape off the site. “These fugitive gases polluted a widespread area by following underground pathways, between two and six metres underground,” Mr Black said. “The polluting gases included carbon monoxide, hydrogen and hydrogen sulphide.” It is important to note that extensive testing and monitoring has confirmed the regional air quality remains safe, as does the drinking, stock and underground water supply. “There is no immediate harm caused to agriculture, including grazing or cropping,” Mr Black said. “The underground coal gasification process '%&#$'#"!
EGAL action against Linc Energy has broadened but the company continues to deny all allegations of its involvement in underground soil contamination at Hopeland. The Department of Environment and Heritage Protection filed a complaint in the Dalby Magistrates Court last week, alleging Linc Energy wilfully and unlawfully caused serious environmental harm. This charge is in addition to the four charges of wilfully and unlawfully causing serious environmental harm that EHP filed against Linc Energy in April 2014 and that are still before the court. The company now faces a possible $32.5 million fine and potential jail terms for its senior executives. Queensland environmental regulator EHP director general Jon Black said after a
is not the same as the coal seam gas process." Mr Black noted that during the course of the investigation, the 100-strong investigative taskforce also conducted farm environmental assessments on a number of properties in the area that were considered to have potentially been impacted by the gas contaminants. “The assessments were designed to test properties for potential risks to residents and impacts to crops or grazing,” he said. “At the conclusion of the assessments, each landholder was provided with a comprehensive scientific report specific to their property.” “EHP understands that this has not been an easy period for the Hopeland community and I express EHP’s gratitude for the community’s cooperation, patience and understanding as our investigations
proceeded.” Linc Energy, which ceased operations at its Chinchilla plant in 2013, said in a statement: “Linc Energy strongly denies the allegations in this charge, and will continue to defend all charges currently before the Courts”. Rural lobbying organisation, AgForce, has congratulated the State Government for continuing its legal action against Linc Energy. General President Grant Maudsley said local members were pleased that regulators were showing they were willing to hold companies to account. "Our members want to have confidence in the regulatory framework and the protections in place, while reminding companies that they are bound by legislation with which they must comply," Mr Maudsley said.
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PAGE 3
IN THE NEWS
IN THE NEWS Naomi Purcell is happy back on familiar territory NAOMI Purcell might have only been back in the Goondicum Resources office for a couple of months, but she is no stranger to the industry. She has worked in administration at the Curragh Mine at Blackwater and the Mt Leyshon Gold Mine outside of Charters
PAGE 4
Towers, and worked at the Monto operation for eight months in 2012. “There’s much more opportunity for me to make a difference at this mine compared to the others I’ve worked at,” Mrs Purcell said. “It’s a small operation here and a close-knit group, so you get to know people better and
learn how you can be most effective.” Mrs Purcell was the administration superintendent and oversaw things like communications, logging contractor hours and keeping stores stocked. When speaking with Mrs Purcell, her appreciation for the industry is evident.
Surat Basin NEWS Thursday 18 June 2015
“I also work in HR and recruitment and we really don’t receive many women applicants,” she said. “But I would encourage more women to try out the industry. “I really enjoy it; otherwise I wouldn’t have come back.”
IN THE NEWS
Megan Kropp is a supervisor in the mines processing plant and said the job offers heaps of opportunities for women. Photo: Emily Smith / Central and North Burnett Times
Opportunities abound
Mining lifestyle appeals to women ORTING valuable material from worthless dirt is one of the most important jobs in a mining operation, and the job falls on Megan Kropp’s shoulders. “Here we use size, density and magnetism to sort the valuable from the non-valuable,” Ms Kropp said. “In coal mines you can also use flotation. “I’m naturally a maths person so I love the problem-solving side of it.” Even once they came up with the theory behind sorting processes, Ms Kropp was still
always busy fine-tuning and fixing problems to keep the whole operation moving. Going into the mining industry was almost a rite of passage for her after growing up in Mt Isa. “I did some vacation work on a mine and I really enjoyed it,” she said. “So I studied what would now be chemical engineering – it was a bit different back then. “I think women should go for it, if they like the idea of mining. “If you enjoy it you will stick with it.”
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Rather than any gender issues, Ms Kropp said one of the toughest things to get used to in mining was the heat and humidity. “I’ve only been here for a couple of weeks. “I was at the Mackay coal fields before this,” she said. “This job will bring me out of the office a lot, I just have to get used to the humidity. “I’ve never thought of gender as an issue. “I really think our diversity comes from getting to know different people. “I’m much more interested in getting to know people and why they do things, and learning
from them. “And because this is such a small operation, there is more of an opportunity to meet people,” she said. Despite the proliferation of mining in Australia, Ms Kropp said on the inside, the industry was small and friendly. “It’s really a small industry where you get to know everyone,” Ms Kropp said. “And it means you can always contact someone if you have a problem. “No problem is new, they have all happened and been fixed before.” '(&#%#$"!
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PAGE 5
IN THE NEWS
Biofuels in spotlight
Much needed support
Some farmers too devastated to take advantage of funding .
AgForce also strongly supports the decision to bring forward the initiative so it applies from budget night. AgForce Queensland general manager, Grant Maudsley body’s members were dealing with severe drought. But he said they supported policies that built resilience for future droughts. “AgForce also strongly supports the decision to bring forward the initiative so it applies from budget night, while acknowledging that the financial impacts from the current
drought will mean many of our members cannot take full advantage of the provisions,” Mr Maudsley said. “These incentives for water and fencing assets to improve the management of livestock and macropod grazing, and to exclude predators, goes towards addressing some of the key environmental issues our members face.” In July the State Government will hand down its budget. Mr Maudsley said he hoped some of the budget’s key priorities would be the removal of stamp duty on intergenerational farm asset transfers and crop insurance. He also has his fingers crossed the government will allow agistment businesses access to the Emergency Water Infrastructure Rebate scheme “to deliver better animal welfare and dam desilting”. – APN NEWSDESK
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GFORCE Queensland has warned some farmers devastated by drought might not be able to take advantage of tax breaks the Federal Government has brought forward. But the organisation supports the decision to make the concessions immediate, rather than having a 2016 start date. Farmers can now claim tax deductions on water facilities, fodder storage assets and fencing. Agriculture Minister Barnaby Joyce and Small Business Minister Bruce Billson said farmers had told them they wanted to get on with building fences, dams and fodder storage as soon as possible. They predicted bringing forward the start date would cost $72 million. AgForce Queensland general manager, Grant Maudsley, said many of the agricultural
THE Queensland Government has released a discussion paper outlining plans for an ethanol mandate to grow the biofuels and bio-manufacturing industries. Energy Minister Mark Bailey told State Parliament the economic and environmental benefits of ethanol were recognised world-wide. “We want Queensland to be part of this sustainable energy solution,” Mr Bailey said. “We will work closely with industry on the amount of the mandate so that it grows in line with production capacity. “Importantly, we want local industries to capture the market share to ensure that any ethanol sold in Queensland comes from Queensland. “There’s also an opportunity to boost the use of biofuels like biodiesel blends to take advantage of the growing demand for diesel.” There are several bio plants on the drawing board in Queensland, including two plants in development, and strong interest from the private sector to explore opportunities. A joint Deloitte Access Economics/QUT study predicted bio-refining in all its forms could contribute more than $1.8 billion in gross state product to Queensland and create up to 6640 jobs over the next 20 years. The State Government will hold regional forums across the state to encourage industry, key stakeholders and the community to have their say about the ethanol mandate. “By working together, we can all help shape the future of this exciting and growing industry,” Mr Bailey said. More information is available at:www.dews.qld.gov.au
IN THE NEWS
FIFO workers urged not to suffer in silence
F
A FIFO workforce in Queensland seems inevitable.
Opposing 100% FIFO staffing
Council pushes for local workforce
Parliamentary inquiry into FIFO lifestyle underway
W
ESTERN Downs Regional Council has adopted its position statement, formally opposing a 100 percent fly-in, fly-out and drive-in, drive-out workforce. This was submitted to a parliamentary inquiry into the practice. It stated that at June 2014, the Western Downs had an estimated non-resident population of 9100, with 95 percent accommodated in workers accommodation villages. That number is set to drop to 5170 in 2015 and reach between 2450 and 3250 by 2021. The parliamentary Infrastructure, Planning
and Natural Resources Committee is investigating health impacts of workers and their families from long-distance commuting, the effects on rostering practices and the costs and benefits of a FIFO workforce. Cr Brown said he had been asked to give evidence at the inquiry which was held on June 15. “We understand that you’ve got to have camps in place for high peak times, but during the operational and maintenance periods, it’s different,” Cr Brown said.
LY-in fly-out workers suffer from depression at more than twice the rate of the general Australian population according to research from Edith Cowan University. Researchers surveyed 629 FIFO workers and found that 28 per cent exhibited significant signs of depression, compared to just 13 per cent of the general population. FIFO workers also exhibited higher rates of stress and anxiety than the general population and non-FIFO mining workers who live in remote and rural areas. Lead researcher Philippa Vojnovic from ECU’s School of Business said this highlighted the need for robust support systems to be in place at FIFO workplaces. “There have been anecdotal reports that rates of suicide are higher among FIFO workers,” Ms Vojnovic said. “While there are no statistics available on the rates of suicide in the sector, depression is clearly a risk factor for suicide.” Scott, (who requested his surname not be used) has worked as a FIFO worker in the mining industry for the past six years. In 2014, suffering from depression he was admitted into a hospital mental health unit. “I think the main things that contributed to my issues were the isolation from friends and family, the long roster and my fear that if I admitted that I was struggling
.
When I told my supervisors about my situation they were incredibly supportive. FIFO worker I could lose my job or co-workers would think less of me,” Scott said. “Companies need to inform their workers that it’s okay to talk about mental health and that you’re not going to be fired over it because that’s what a lot of other guys think. “I tell my mates and I ask them about their mental health and support them too. “I have now learnt how to talk about what I’ve been through because talking helps. “When I told my supervisors about my situation they were incredibly supportive.” Ms Vojnovic said the study also identified certain groups within the FIFO sector that were particularly at risk of depression. “Younger workers, aged between 18 and 29 were twice as likely to suffer from depression as their older colleagues," she said. “Additionally, workers with a university degree were half as likely to experience depression. “This isn’t about blaming resource companies; it’s about helping people who are struggling in silence.”
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PAGE 7
IN THE NEWS
Research underway
CSIRO to review methane emissions Research set to define Surat’s CSG emissions profile
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OR the first time in Australia, CSIRO is developing a dedicated methane research program in the Surat Basin to identify and locate sources of naturally occurring methane emissions. Gas Industry Social and Environmental Research Alliance (GISERA) director Damian Barrett said the results of the CSIRO study field would increase knowledge of methane emissions in Australia and help define Australia’s CSG emission profile. “Understanding the total amount of background methane in the atmosphere and its source is critical to developing an accurate methane emissions recording system,” Dr Barrett said. “This can then be used to monitor future trends in methane emissions in the CSG production region of the Surat Basin. “It is important to accurately attribute what portion of methane emission comes from which sources and to differentiate what is a human source from what occurs naturally.” To determine the methane levels, ground surveys were conducted using a methane analyser. The analyser covered a distance of more than 7000km between Roma and Dalby over an 18-month period and determined background methane levels, about 1.80ppm were consistent with background methane concentrations in other regional areas in Queensland. The research also includes making helicopter measurements to locate methane sources from the air and installing long term monitoring stations in the region. “These methane emissions are very small, posing no health concern to humans, but measuring their concentration is important for locating sources and hence emissions rates into the atmosphere.” Dr Barrett said. The mobile ground survey detected methane
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Understanding the total amount of background methane in the atmosphere and its source is critical to developing an accurate methane emissions recording system. Gas Industry Social and Environmental Research Alliance (GISERA) director Damian Barrett emissions from irrigation ponds, cattle feedlots, grazing cattle near roads and CSG facilities. “This report presents results from trials of the instruments and prepares the way for ongoing measurements and monitoring of methane emissions over the long term. “We’ve installed one methane emission monitoring station, southwest of Chinchilla in November, 2014 and another will be installed this month. “These monitoring stations will continuously measure methane and other gas concentrations and calculate the rate of methane emission over time, allowing CSIRO to determine whether methane emissions are trending up or down.”
SEE STORY
Page15
Bob Hawke to address luncheon
Methane monitoring systems like this one are monitoring methane levels right across the Surat Basin. Photo Contributed
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Surat Basin NEWS Thursday 18 June 2015
IN THE NEWS
Business in Queensland going strong
Future of LNG looks bright Billion-dollar LNG industry avoids recent downward trend BY Emma McBryde
T
HE Queensland drop in small to medium business confidence has not filtered through to the billion-dollar liquefied natural gas industry. Australia Pacific LNG chief Page Maxson told a group of industry leaders he did not believe Queensland was a risky place to do business. “In the scheme of the world (Queensland has) really got a less risk than a lot of places and then a lot of the same risks the others have,” he said. Mr Maxson, who has worked in the US, Norway and Indonesia, joined Santos and QGC to discuss the burgeoning LNG industry’s future at a Committee for
Economic Development of Australia lunch in Brisbane. Although the latest Sensis Business Index survey of small to medium companies showed Queensland’s business confidence had slumped, the future is rosy for three big LNG players in the Surat Basin. QGC is already exporting LNG, and Santos and APLNG will soon follow. Project management company Bechtel has found the $60 billion in investments at Curtis Island, off Gladstone, is the largest concentration of private capital in Australia’s history. Australian Petroleum Production and Exploration Association chief technical officer Rick Wilkinson said when all three LNG projects were fully operational; they
would produce more export revenue than all of Australia’s beef and wheat exports. “On its own, Curtis Island would rank in the top 10 of Australia’s exports,” he said. But Santos Queensland vice president Trevor Brown said it had been a tough road and the crowd of sceptics had been strong only five years ago. The power of information and industrial technology combined, along with getting costs and risks right were named as tools to remain competitive in a world where a plummeting oil price was placing strain on the industry. “We need to be globally efficient and competitive,” Mr Brown said. “That means everything, from the regulators, the operators, the whole supply chain.”
GLADSTONE small businesses are set to get a boost in the coming months, thanks to an APLNG and ConocoPhillips new Many Rivers Microfinance financial support program. APLNG CEO Page Maxson. Photo Christopher Chan / The Observer
Shining the light on a fascinating profession
F
ORMER child care worker Tegan Bauer never guessed a time would come when she would sit up late in bed reading about mining regulations. But it was not until starting at Goondicum Resources last September she realised how fascinating the industry could be. “I never pictured myself working at a mining company,” Mrs Bauer said. “It’s made me a lot more curious about how it works. It’s fascinating. “Any time I see the word ‘mine’ on Facebook now, I have a read and my ears prick up when mining comes on TV. “I was sitting in bed last night reading about mining regulations.” Mrs Bauer works in administration both in the Monto town office and at the mine site. “Being one of only a few girls is fine. “I was the only girl in the room when we were doing CPR training the other day and that is fine. “Our guys are all really friendly,” she said. “I started out being just part-time but now I work five days a week. “Soon I’ll be at the mine site two or three days a week and I’m really looking forward to that.”
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DOWN TO BUSINESS
DOWN TO BUSINESS PAGE 10
Surat Basin NEWS Thursday 18 June 2015
DOWN TO BUSINESS
Funding win
Boxing trainer Justin Clements from Laing O'Rourke catches up with some kids (from left) Zoey Quinn, Jack Kennedy, Malachi Cooke, Millacent Cooke, and Taylor Duncan, from Murilla Long Day Care at Miles. Photo Jim Campbell / Chinchilla News
Going the extra mile
F
Local boxer lends a hand
ORMER world champion boxer Justin Clements has put his heavy hitting to good use for some of the smallest members of the Miles community. Since November last year Mr Clements, Laing O’Rourke’s operational superintendent on the Australia Pacific LNG Project, has volunteered at the Murilla Fitness Centre in Miles, holding boxing fitness sessions twice a week. In a former life, he was a world champion boxer and kickboxer – winning numerous international titles, including a WBF world title in 2000. His sessions are open to anyone looking for an aerobic challenge and Mr Clements
declined to charge the fitness centre for his services. Instead, he arranged for any money earned to be donated to the Murilla Long Day Care Centre. In seven months, he has raised $1500 for the centre, which has been used to purchase some much-needed outdoor play equipment. “I found that a number of the people attending the gym sessions had links to the Day Care Centre so it made sense to donate the money to them,” Mr Clements said. “The centre provides a vital service for the local community and I am extremely proud to have been able to help them in this small way.
“This entire process has been immensely rewarding, from being able to help out in the local community with the boxing classes to helping the day care centre get their hands on this amazing equipment.” The donation was completed as part of Laing O’Rourke’s EPIC (Environment, People, Industry and Community) sustainability agenda. Laing O’Rourke is currently delivering upstream gas processing facilities on the Australia Pacific LNG project across regional Queensland. The boxing sessions are held Tuesdays and Thursdays at 6pm and the public is welcome to join.
THE Miles Long Day Care Centre received a second major boost to its resources this month with the announcement of a $6000 grant from Australia Pacific LNG, through Origin. Murilla Community Centre manager Cecily Brockhurst said the centre sought funding to purchase upgraded play equipment and teaching aids. “The equipment is designed to improve co-ordination and the development of gross motor skills,” Mrs Brockhurst said. “It aims to support developmental learning through the pre-school years to provide a solid foundation for children as they enter the more formal education system.” Items included in the new purchase included a fort and low trestles and climbing equipment, sporting equipment, and other indoor teaching aids. Origin regional communities advisor Trudi Webster, said it was a win-win for both parties. “We are proud to support the purchase of new educational resources including a custom-designed outdoor fort to enhance the children’s learning through play.”
Murilla Long Day Care kids Lisa (left) and Chelsea Richards celebrate a donation of $6000 for new play equipment with Origin representative Trudi Webster and Kindergarten teacher Terese Brockhurst. Photo Jim Campbell / Chinchilla News
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Surat Basin NEWS Thursday 18 June 2015
PAGE 11
DOWN TO BUSINESS
Engaging in the mining lifestyle
G
ETTING outside under the sun is Adele Swanton’s favourite part about her job. She is the Goondicum Resources mines’ only environmental co-ordinator, and although most of her time is spent inside a Brisbane office, she does get out in the field. “A lot of my job is about water sampling and dust monitoring,” the 27-year-old said. “It’s about making sure the mine is complying with legislation. “When I get back to the city it’s a lot of data entry, so I like coming out to the country and getting outside.” It is Ms Swanton’s first time working for a mining company, although she has done contract work for mines before. “I mostly deal with managers at the Brisbane office, but whenever I come out here, it’s great. “All the blokes are really easy to get along with,” she said.
The coal ship Toro Orient departed Gladstone harbour on April 28, the first coal shipment to leave the WICET facility. Here it is seen heading out to sea behind the GPC’s Auckland Point wharf. Photo Ebony Battersby / The Observer
Positive economic indications
Business confidence set to rise T
HE resources sector is promising to breathe new life into the Queensland economy following the release of sobering economic data by Treasurer Curtis Pitt. The data revealed the state’s economy retracted by 0.2 percent and 0.6 percent over the September and December quarters of 2014. However, the Queensland Resources Council (QRC) believes the economy can be revitalised through new resources sector projects – both big and small – about to come onto the boil in places such as the Darling Downs, the Galilee Basin and the Bowen Basin and Cape York. Acting QRC chief executive Greg Lane reported that several Queensland resources sector companies stand ready to invest in new projects, new infrastructure and create new highly skilled jobs, even in the face of low commodity prices.
Mr Lane added that as 2015 unfolds; the state accounts would also reflect the positive impact of exports from major LNG projects which have moved from construction into the production and export phase. Public confidence appears to mirror that of the resources sector with the latest Westpac-Melbourne Institute Consumer Sentiment Index (CSI) revealing that Queensland consumer confidence has hit an 18-month high. Queensland’s CSI rose 10.7 per cent in May in original terms, to 100.2 points – the second biggest increase in Australia. Treasurer Pitt welcomed the CSI results as the latest in a series of positive economic indicators in Queensland. He said ABS economic data showed: ■ Queensland had recorded the strongest real retail growth of any mainland state at 1.9 per cent for the March quarter. ■ A 3.0 per cent rise in dwelling approvals for
the March quarter – up 26 percent on the same time last year. ■ An additional 5300 full-time jobs in April, the sixth successive month of full-time employment growth. And despite tougher business conditions, the Surat Basin business community and industry remain optimistic for future business and economic prosperity. The March 2015 Business Confidence Survey commissioned by Toowoomba and Surat Basin Enterprise (TSBE) found that business confidence for the next six months was strong, while the outlook for next three years is significantly stronger. The March 2015 business confidence report is the first of its kind for the region and will be updated on a semi-annual basis to better establish expectations of regional business conditions and to get a thorough understanding of local issues affecting business profitability and growth.
.
It’s about making sure the mine is complying with legislation. When I get back to the city it’s a lot of data entry, so I like coming out to the country and getting outside. Goondicum Resources mines’environmental co-ordinator Adele Swanton
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Homely luxury
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A miraculous transformation
HEN Bernie McGovern and his family bought the site Chinchilla Motor Inn is now on, it was a caravan park that had seen better days. Mr McGovern tells of how the first time he brought his wife out to the property, she had reeled back in horror: “What have you done?” Today, it’s a different story. The transformation from run-down caravan park to state-of-the-art motor inn (complete with original artwork); with individually built, self-contained cabins, a gym, swimming pool, restaurant and laundry on 3 acres of landscaped gardens, has been nothing short of miraculous. “I often forget myself what it came from,” Mr McGovern says. “We wanted to bring a level of quality and professionalism that Chinchilla had not seen before." In addition to cabins which boasted architectural flair and were bigger than the standard cabin you find, Mr McGovern wanted homely comfort in a relaxed environment that made being away from guests’ homes and families that bit easier. Bernie explains the Motor Inn was built with the corporate market and travelling business-people in mind. He believed people who are away from their homes and families often need something more meaningful from the places they stay than motel or camp accommodation.
.
I often forget myself what it came from. Bernie McGovern “When [you’re] away from home, accommodation is a big part of job satisfaction,” he said. “That was the niche we saw in the market. “People would much rather stay in a 35m quiet, self-contained cabin than a 3x4 camp room for much the same price.” Mr McGovern explained how being on first-name basis with guests was important to him. As well as all the luxurious modern conveniences you would expect with 4 ½ star accommodations, every cabin’s interior has also been meticulously designed with the kind of aesthetically pleasing effort to easily imagine it in your own home. This carefully selected décor includes artwork and prints that Bernie estimates to be 95 percent local artists; including striking original paintings of scenes from the region by highly regarded artist and Dalby resident, Graeme McCullough. When it comes to detail, no expense has been spared. According to Bernie, it’s “those little things [that] make it that little bit different, that little bit nicer” which count.
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PAGE 13
DOWN TO BUSINESS
Bring your own device
IT advice with Daniel Davis Darktime Computer Services
T
AusCoil’s new coiled tubing rig is smaller, more mobile and has the largest diameter tubing available to the Australian CSG market. Photo Contributed
Optimising efficiency
Innovative equipment unveiled O
IL and gas industry operators across Australia are set to benefit from a $15 million investment into the next generation of Australian well servicing equipment, which were unveiled by industry specialists AUSCOIL this month. The equipment, a specialised coil tubing service rig, has been proven in active international markets and was re-engineered in a strategic partnership between AUSCOIL and local Toowoomba company, the FKG Group to specifically suit Australian industry conditions. The next generation equipment operated by AUSCOIL will perform a variety of production enhancement operations on CSG wells throughout their life, reducing field operations costs, supporting continuous production and achieving operator capital efficiency.
FKG Group executive chairman, Gary Gardner, said the new technology represented a significant advancement on existing technologies available to the Australian market. “The FKG Group identified the increasing need for CSG operators to source new ways to lower operating costs, increase productivity and improve efficiency,” Mr Gardner said. “AUSCOIL’s rig has been designed in collaboration with industry experts as a fit-for-purpose innovation to address these factors.” Tyson Affleck, AUSCOIL development manager, said AUSCOIL’s coil tubing services offer coal seam gas operators a means of increasing the safety and pace of their operations. “The equipment allows us to deploy highly
innovative tools and technology into CSG wells at a much greater speed than currently possible. “We can also offer operators experiencing production problems with their wells a wide range of cost-effective and safer solutions. “Our goal is to make each CSG well produce to its full potential,” Mr Affleck said. Components of the rigs were sourced from Australia, Canada and the United States with the final assembly being completed locally in Toowoomba. Mr Gardner said that the FKG Group’s ambitious plan to develop a productivity-optimising solution for oil and gas operators has been two years in the making, and their significant investment in the coil tubing technology demonstrates the company’s confidence in the Australian oil and gas industry.
oday in many businesses you often see employees using their own laptop or phone; they may have company data in a spreadsheet, or just be receiving email. Their private laptop may be accessing a shared drive on a server or workstation. So, what happens when they are no longer under your employ? Remember, it may be a messy break-up. Unfortunately in this situation it could be rather tough to get your data back. Is their laptop being backed up? Is their Antivirus installed? Does the employee have a password on their device? If they are using their own phone, do you pay a percentage of the bill? We have all called a company before only to be told: “Sorry, I don’t work there anymore; but I now work for ‘XYZ Company’ and we sell these amazing products.” Some companies have a policy that they will maintain the employee’s laptop; for example, they may pay for the antivirus, or put the laptop into their weekly backup program or into their monthly maintenance program. Although companies paying for maintenance on a device they don’t own is rare, it is being seen more often these days. A “bring your device” policy for your company can be very difficult to write and requires a very good understanding of the software used to run your business, software licensing obligations, data protection, a fair use policy, a clear plan as to who will provide support for the device and many other things depending on what your business does. Don’t leave it until something goes wrong and it costs you money; be proactive as a couple of hours spent now may save days of work redoing a spreadsheet.
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Thoughtful Leadership Luncheon
I
Hawke’s address
N A major coup for Toowoomba and Surat Basin Enterprise (TSBE), former Australian Prime Minister Bob Hawke AC will feature as guest speaker at the organisation’s upcoming inaugural Thought Leadership Luncheon. The Thought Leadership series has been brought to fruition to drive thought leadership and innovation in the decision makers of the regions’ business community. As Australia’s longest serving and most successful Labor Prime Minister, and as the founding father of the Asia Pacific Economic Cooperation (APEC), Mr Hawke is a fitting speaker for the unique event. In 1980, Mr Hawke was elected to the Federal Parliament, and in March 1983 led the Labor Party to victory in the general election, and subsequently won the following three elections. During his time as Prime Minister, Mr Hawke oversaw a number of reforms, most notably financial system deregulation and the floating of the dollar that many commentators have since observed as being crucial to Australia’s sustained economic stability and prosperity.
Since his resignation from Parliament in February 1992, Mr Hawke has regularly travelled to Asia, in particular China, and will give guests at the event insights into his four decades of engagement with Asia, also highlighting future opportunities and hurdles he sees for Australia’s ever-evolving relationship with this booming market. TSBE chief executive officer Shane Charles said TSBE was excited to be bringing such a unique event to the region. “We have brought the Thought Leadership Series to the regions business community to promote on-the-ground, forward-thinking and innovative practices within the decision makers of our business community,” Mr Charles said. “With the Asian Century and the opportunity that countries such as China present for our region gaining momentum, who better to have at our inaugural event in the series than Bob Hawke, the founding father of APEC. “We are extremely excited to hear what Mr Hawke has to share in regards to his experience with Asia, and in particular China – this certainly is an event not to be missed.”
INFORMATION ■ The event will be held in Toowoomba on Friday, June 26 Brisbane West Wellcamp Airport. ■ For further information www.tsbe.com.au/events/event_view/114
Former Prime Minister Bob Hawke speaking at the Woodford Folk Festival. Photo: Seanna Cronin.
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PAGE 15
DOWN TO BUSINESS
Engaging with business
GasFields Commission proactive at Expo Energy and Mining Expo redefined by new interest
Q
ueensland’s GasFields Commission has, for the very first time, a major presence at the Surat Basin Energy and Mining Expo. The Expo, which is organised by local company Australian Events, will be held at the Toowoomba Showgrounds on Wednesday, 17 and Thursday, 18 June. The GasFields Commission will occupy a major exhibition site for the purpose of engaging with business owners about supply chain opportunities with coal seam gas companies in the Surat Basin. Additionally, the Commission has engaged senior procurement officers from the gas companies and their major contractors. Santos’ Supply Chain Manager – Santos GLNG Project and Senior Contract Analyst will talk to business owners at the exhibition from 9.30am to 12.30pm on Wednesday, 17 June, as will the Spotless Services’ Contract Manager and Consultant. Later that day, from 1.00pm to 4.00pm, Australia Pacific LNG/Origin’s Commercial Specialist Regional Buy will be on hand.
On Thursday, 18 June from 10.00am to 2.00pm QGC’s lead economic development officer and Veolia Australia’s contracts manager will be available to talk to business managers. Australian Events’ director of corporate development Greg Johnson said: “The addition of the GasFields Commission, CSG companies and major contractors represents a defining moment in the evolution of this major, national event. “Clearly these three groups are saying they want to talk to local businesses about supply chain opportunities in the Surat Basin. “In a nutshell, the Surat Basin is open for business. “I’d be very surprised if the majority of Toowoomba and Surat Basin businesses aren’t represented at some stage over the two days,” Mr Johnson said. Delegate registration for business owners and their staff is free online at www.suratbasinexpo.com.au. For further information FREECALL 1800 671 588.
REGISTRATION ■ Delegate registration for business owners and their staff is free online at www.suratbasinexpo.com.au. For further information FREECALL 1800 671 588
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PAGE 21
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Surat Basin NEWS Thursday 18 June 2015
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OPINIONS
Rise in rego unfair State Taxation increase hits families in the hip pocket .
COMMENT ANNE LEAHY MP Member for Warrego
WELCOME to the latest edition of the Surat Basin News. It is appropriate in this edition to farewell Jim Campbell who has been editor of the Surat Basin News for a number of years. It has been a pleasure to work with Jim and I wish him well in his future endeavours. I look forward to working again with Derek Barry who will be taking up the role at the Surat Basin News. State Parliament has been sitting during May and June and this has provided an opportunity to speak in the Parliament on a number of matters pertaining to the Electorate. May has been a busy month and in between Parliamentary sitting weeks, I have been attending shows, Dirranbandi, St George, Roma, Mitchell, Chinchilla, Charleville and Cunnamulla. As the 2015 Show season has now concluded in the Warrego Electorate, I took the opportunity in the parliament to thank all the show patrons, Show Society committees, stewards, volunteers, competitors and exhibitors, who have contributed to the success of the Shows across the Electorate. From the 1st July 2015 motorists will pay an additional 3.5 per cent increase on car
registration. The LNP moved a disallowance motion to stop the 3.5 per cent increase however the State Labor Government voted it down choosing to unfairly slug motorists. Whilst speaking on the disallowance motion, I argued that the registration increase could not come at a more difficult time for the people of my electorate. Families are doing their best to deal with the effects of drought and resources downturn and the last thing they need is a State Taxation increase on the family car. Rural and regional Queenslanders can’t walk down the road to catch the bus, ferry or passenger train; their only option is to use the family car. They already pay more for fuel – and now, thanks to the State Labor Government, they will be paying more for car registration. The LNP Opposition was successful in obtaining Government support for the LNP’s plan to allow women to continue to have the choice to deliver their babies locally. This was a great win for Queensland women; mothers-to-be with low-risk pregnancies being able have their children in rural and remote regions. I read a quote in the Queensland Parliament from Cherrell Hirst from her report on the Review of Maternity Services in Queensland. It read: “The ways in which we care for pregnant women and babies reveals, a great deal about the kind of society we are and wish to be.”
Cutting red tape to create jobs: Scott .
COMMENT BRUCE SCOTT MP Federal Member for Maranoa
THIS Liberal National Coalition Government is all about unlocking our economic capability and making our region an even better place to live and do business. The Surat Basin has played an important part in our region’s growth and our nation is better because of the resource industry’s contribution. This industry makes up about 10 percent of our GDP and almost 60 percent of our exports. During the past decade, the resource industry has paid $104 billion in company tax – money that contributes to infrastructure, our social security and other services which Australians depend upon. Over the past 40 years, Australia’s trade with China has increased thirteen-hundred-fold and the resource sector contributes significantly to our exports to China – totalling almost $80 billion. Australia is the world’s largest exporter of iron ore; we are also one of the world’s largest exporters of metallurgical coal and a major exporter of LNG. Even though the resource sector’s construction phase is winding down and moving into the production phase, this industry is still an important element to Australia’s future. This Coalition Government has a clear vision for mining. We will continue to be a good
environmental global citizen without taxing investment and jobs. Under this federal government, we scrapped the carbon and mining tax. Red tape is being cut and, so far, more than 50,000 pages in regulation have been removed. Free trade agreements have also been concluded with China, Japan and Korea contributing toward a positive future. As an example, our free trade agreement with China will end tariffs on alumina, zinc, nickel, copper and coking coal and the tariff on thermal coal will be phased out. This federal government has made it easier to do business but we have not stopped there. As the only Queensland Federal Member of Parliament living west of the Great Dividing Range, I believe it’s my duty to make sure those who live in regional areas get their fair share during this difficult economic climate. Small businesses are the beating heart of many Surat Basin communities, some of which are affiliated with resources sectors. That’s why this government is committed to supporting small businesses by cutting red tape to create jobs, increase stability and promote growth in our rural communities. As outlined in the recent Federal Budget, small business will receive a 5% tax cut and will be able to claim an instant tax deduction for any work-related purchase up to $20,000. This means small businesses can replace or upgrade machinery and equipment, provided each individual asset costs less than $20,000. The Coalition Government’s commitment to the regions is demonstrated through a broad suite of investments aimed at assisting regional communities to meet the challenges they face and to create and capitalise on new opportunities for growth.
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PAGE 31
OPINIONS
The next stage
Learning curve as Gas industry transitions Local businesses set to learn new ways of managing the ongoing changes in the gas industry .
COMMENT JOHN COTTER Chairman of the Gasfields Commission Queensland
O
ver recent months, the GasFields Commission through the pages of the Surat Basin News has shared the first-hand insights and experiences of local businesses dealing with the onshore gas industry and how they are adapting as the industry transitions from construction to production. With the onshore gas industry set to spend in excess of $1 billion per annum in the Surat Basin, many of these local businesses are also looking to position themselves to supply and service this industry over the longer term production phase.
Some of the key learnings for managing change from these local businesses have included: ■ Thinking about the customer’s needs: One engineering firm from Roma recognised that his customer wasn’t necessarily looking to drill more wells but to improve the productivity of their existing wells and so set about finding better solutions for that
problem. ■ Using new technology: Coach service operators have taken on new technology to improve the monitoring and management of their drivers and fleet maintenance programs thereby reducing time lost to breakdowns or delays that could impact on their customer. ■ Improving cost efficiencies: A welding service from Roma and lubricants distributor at Dalby are finding better ways to manage their back of house administration and processes to deliver more cost effective service to their gas customers. ■ Power of networks: All local businesses agreed the value of leveraging networks such as local chambers of commerce and regional development groups to stay informed. The GasFields Commission is actively assisting the communication and information flow between the onshore gas industry and local businesses in regional communities. At this month Surat Basin Energy & Mining Expo in Toowoomba the GasFields Commission is hosting a trade booth that is providing the opportunity for key gas industry procurement managers and local businesses to engage. Local businesses can visit our Expo booth at site #P3023 to meet face-to-face with these senior procurement people and to better
understand the process for supplying goods and services to the onshore gas industry and other procurement matters. The Commission’s roster of onshore gas operators and key contractors include: ■ Wednesday 17 June at 9.30 – 12.30pm Santos and Spotless Services; 1.00pm – 4.00pm Origin / APLNG ■ Thursday 18 June 10.00am – 2.00pm QGC and Veolia The onshore gas industry will be operating for decades to come and the GasFields Commission wants to be at the forefront in
assisting local businesses to maximise every opportunity and build more sustainable regional communities in Queensland. Make sure you drop in and see us at site #P3023 at the 2015 Surat Basin Energy & Mining Expo from 17-18 June at the Toowoomba Showgrounds.
VISIT US ■ Make sure you drop in and see us at site #P3023 at the 2015 Surat Basin Energy & Mining Expo from 17-18 June at the Toowoomba Showgrounds.
Last year’s Surat Basin Mining and Energy Expo.
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OPINIONS
Connecting with the Cooper Basin
Restoration of SWQ rail line imperative .
COMMENT Cr ROBERT LOUGHMAN Mayor, Maranoa Regional Council
M
inister for Natural Resources and Mines, Dr Anthony Lynham was a welcome visitor to Roma recently. I was pleased to see him out here so quickly after the election. I have generally been happy with the new State Government’s ‘business as usual’ approach in its early days. The approach to distributing Royalties for the Regions money appears to have been restored to the original intent of benefiting councils and community priorities. It had been diluted by being opened up to other groups and even to fund State Government minor priorities. In some cases, to even subsidise mining investments, albeit on publicly owned assets. The councils of Southwest Queensland have long lamented the slow demise of the southwest Queensland railway line to Quilpie. The line hasn’t seen a lot of action in recent times and it’s fair to say there has not been a lot of political determination from either side of politics to get the trains going again. That
is despite the line being a logical two-way conduit for the burgeoning resource and agricultural activities in the Cooper basin. The Oakey Beef group has injected some real meat (pardon the pun) into the debate with its plans to double production at the Oakey Abattoir. To achieve their aim they will need to stimulate rail freight to bring in additional cattle from the western areas and to freight beef out to port via rail. The upgrade of rail facilities at Morven, Roma and Mitchell among other places would cost around $5 million and I believe that would be a symbolic reinvestment into
the future of our rail system. Initially though I know many resources sector players from the Surat Basin would welcome the stimulation of that line to allow them to compete with the South Australian entities that currently dominate the Cooper Basin activities. There are plenty of issues still facing us in South West Queensland and while not all are related to resource sector activity, they will require a level of commitment from successive governments of all persuasions and at all levels. Some readers might be aware, last year I raised the matter of our major health assets
(such as the Roma and Charleville hospitals) being in need of significant restorations. The Roma hospital is in desperate need of an upgrade; however it has not yet attracted the ear of government – certainly not enough to extract a funding commitment from either of the major parties anyway. Even with the proposed billions of dollars funding from asset leases last year, the Roma hospital still didn’t merit any sort of commitment. That means we have a lot of work to do to explain the problem, to identify the solution and source the funds to achieve it – hopefully well before the current infrastructure fails.
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Surat Basin NEWS Thursday 18 June 2015
PAGE 33
OPINIONS
Supporting our communities
Seizing opportunities in resources sector .
COMMENT Cr RAY BROWN Mayor, Western Downs Regional Council
A
sector. The commitment by these companies to deliver major upgrades to our region's road infrastructure is a great result for our residents. These successful partnerships with Origin and QGC will be the start of long and beneficial relationships between Council and the energy companies in our region, as with future drilling programs on the agenda for the Western Downs and Surat Basin, Council
will continue discussions with Arrow and Santos to achieve the best outcomes for them, as well as our communities. On a slightly different note, it was a pleasure to welcome one of Queensland Rail's heritage steam trains to our region recently in celebration of 150 years of rail in Queensland. This coal-fired steam engine would have brought back many memories for those who've been around the traps and it is fitting that in the year which we commemorate the
Anzac Centenary, we have also paid tribute to the transportation that played a valuable role in transporting our troops, horses and equipment throughout the First and Second World Wars. The rail line is an integral part of our history in the Western Downs and continues to be a vital asset to the growth and development of our region with the coal and natural gas industries relying on the network to transport their products to port.
S the energy and resource industry continue to move from construction to production and maintenance phases, and despite global prices in the petroleum industry affecting the speed of development in our region, the Western Downs is still capitalising on the advantages and opportunities the renewable energy industry brings to our region. A flourishing agriculture sector, continuing large-scale infrastructure development, and the expansion of natural gas production in the Surat Basin has placed our region at the forefront of maximising opportunities for our businesses and industries to value-add where possible. Our standing as the energy capital of Queensland, borne from the stable growth of major projects across the region, will be on display at this year's Surat Basin Energy and Mining Expo, and Council is well-positioned to ensure the many opportunities that are on offer from the energy sector continue to be seized. It is encouraging to see that the four major resource companies in the Surat Basin and Western Downs regions continue to look to the future by looking to value-add to the communities they operate in and around. This offers a great opportunity for Council to work alongside energy companies to ensure our communities are provided with a legacy of development that will last well into the future. One of the many ways Council is achieving this is by ensuring essential infrastructure, like our roads, are maintained and improved by the resource and energy activities in our region. Infrastructure agreements between Council and Origin, and most recently with QGC, have highlighted the many benefits that Mayor Ray Brown is handed a brass staff by Queensland Rail on the arrival of 'Yank' the heritage steam train, symbolically placing the passengers and train into the safe keeping of come from working alongside the energy the community. Photo: Contributed.
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Surat Basin NEWS Thursday 18 June 2015
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OPINIIONS
Change for the better
QRC Indigenous Awards recognise success Indigenous employment in the resources sector continues to grow thanks to unwavering support .
COMMENT MICHAEL ROCHE CEO Queensland Resources Council
G
iven the results of indigenous engagement initiatives sponsored in the Surat by leading gas and coal companies, it is easy to understand why the State Government and the resources sector are celebrating the continuation of an agreement first signed in 2007. Through a Memorandum of Understanding, the program aims to increase indigenous employment in the resources sector both directly and through the engagement of indigenous businesses. Treasurer and Minister for Aboriginal and Torres Strait Islander Partnerships Curtis Pitt announced a new round of government funding ($100,000) during the second annual Queensland Resources Council Indigenous Awards in Brisbane. Through the QRC, industry is matching that commitment. As I was pleased to inform award night guests, at the end of last year there were 995 full-time indigenous employees in the resources sector compared with 802 in 2013. QRC member companies reported hiring 201
new indigenous employees last year, with around 75 percent of that intake in traineeships, apprenticeships, cadetships and graduate entries. That means mainly young indigenous Queenslanders with new jobs and new opportunities. Also of note is that around one quarter of the
indigenous workforce in the resources sector is female, a much higher rate than the non-indigenous workforce. Our survey also revealed greater efforts meant greater success by engagement with more indigenous businesses. Some resource companies are only just starting to count this measure, but at the end
of 2014, there were 52 indigenous businesses engaged, with 55 percent of them owned by traditional owners. What we are seeing is real progress, with workshops, forums and working groups convened by the QRC contributing to real outcomes. Pleasing from the Surat region’s perspective was recognition of the work done by Origin’s Matthew Ralph, who was named joint winner of the Indigenous Advocacy Champion award with BMA Coal’s Paul Travers. Within Origin, Matt’s energetic advocacy has contributed to a new focus on indigenous participation with senior managers now working to indigenous participation performance indicators and a company-wide cultural capability program now under way.
The other major award winners for 2015
Overall winner Lisa Peckham receiving award from QRC President Rob Neale QRC Indigenous Awards 2015. Photo: Patrick HAMILTON
■ Lisa Peckham of Glencore Mount Isa Mines (Exceptional Indigenous Person) ■ Myuma Pty Ltd (Exceptional Indigenous Business) ■ BMA Coal (Best Company Indigenous Initiative) for its recruitment strategies at the Daunia and Caval Ridge Mines.
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Surat Basin NEWS Thursday 18 June 2015
PAGE 35
OPINIONS
Rising to the challenge
Australian economy resilient despite change .
COMMENT BARRY O’SULLIVAN Office of Queensland Senator
F
September quarter and 0.5 per cent in the December quarter last year. This result makes Australia one of the fastest growing economies in the developed world and faster than any of the G7 in the quarter. In addition, exports continue to support our economy, growing by 5 per cent. This is the strongest quarterly result in 15 years. The Coalition has presided over one of the greatest turnarounds in soft commodity prices, with six new live animal destinations, three new Free Trade Agreements and significant inroads towards deals with India and the TPP, have all contributed to graziers across the Surat Basin enjoying record prices for cattle and sheep alongside a dramatic turnaround in the Eastern Market Wool indicator. The recent Federal budget acknowledges the agriculture sector, small business and local government will be crucial to strengthening our regional economies into the future. Councils throughout the Surat Basin are likely to benefit from a range of dedicated infrastructure grants from the Federal Government in this budget.
For example, the Roads to Recovery Programme will continue to support the construction and maintenance of local roads with $350 million allocated annually (until 2018-19), as well as a double allocation with an extra $350 million being funded in 2015-16. The Bridges Renewal Programme saw $113.7 million allocated for 73 projects across the nation. Applications for Round Two of the programme will open in the coming months. Within the $333 million drought relief package announced last month, $35 million has been dedicated to assist councils such as Balonne and Maranoa instigate shovel-ready projects that offer the greatest potential to stimulate local spending, use local resources and provide lasting benefit to the community. To assist pastoralists to more effectively store and use water and fodder to better manage periods of drought and improve their ability to ward off feral pests through fencing, primary producers are now able to claim more favourable accelerated depreciation on farm infrastructure. The fences they build are 100 per cent deductible in the first year.
rom the beef producer at the Roma Saleyards to the petrol station owner on the Warrego, a lot of discussion recently has been about the fact that Australia’s economy is in transition. Communities across the Surat Basin are experiencing the impact of this transition more than most. There is probably no more notable example than the fewer number of advertisements for CSG industry workers and contractors in the region. The CSG to LNG sector is moving from a construction to a production phase. One of the benefits for government is the public purse will finally start gathering royalties that can be spent on improving other areas of the economy. The QCLNG plant production is expected to reach eight million tonnes per annum during 2016, sending around 120 shipments a year to China, Japan, Singapore, India and Chile. The royalties generated from these shipments will prove important given the steep fall in global prices for our major export commodities – namely iron ore and coal – which have more than halved in some cases since the peak in 2011. Despite these issues, the cold hard facts do not support the arguments of the naysayers who attempt to talk down the economy and Australia’s financial outlook. While change can sometimes be uncomfortable, the Federal Government has committed to a raft of measures to strengthen business confidence in the short to medium term as our economy makes this transition. Firstly, we should not forget that we currently enjoy encouraging economic variables - low interest rates, falling petrol prices and a low Australian dollar. This is being reflected in the latest economic data which shows real economic growth rose by 0.9 per cent in the last quarter to be 2.3 per cent higher over the past year. This exceeds market expectations. Barry O’Sullivan has great confidence in Australia’s economic future. Photo: Contributed. This builds on growth of 0.3 per cent in the
Water infrastructure and dams will also be immediately 100 per cent tax deductible. The silos and hay sheds they build can be written off over three years. Small business has been the biggest winner in the 2015 budget with more than $5 billion in initiatives announced. Whether it’s a computer, chainsaw or second-hand vehicle, any small business looking to purchase equipment that costs up to $20,000 can now instantly claim a 100 per cent tax deduction. From reports at Farm Fest at Toowoomba this month, many people from across the Surat Basin were keen to take up this budget initiative. We should not lose sight of the fact that there is deep resilience in the Australian economy despite our transition away from the resource sector. A rebalancing of growth is taking place with roadblocks being removed. New markets are being opened and our economic plan is working. These numbers confirm that Australia is rising to the challenge.
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Surat Basin NEWS Thursday 18 June 2015
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PAGE 37
PLACES & FACES
Food security will drive Australia’s trade relationship with the Middle East
T
hat was one of the key messages shared when Toowoomba and Surat Basin Enterprise (TSBE) recently held The
Middle East Opportunity event in conjunction
with the Australian Arab Chamber of Commerce and Industry(AACCI). Held at Toowoomba’s Empire Theatre on Thursday June 4, the event focused on the emerging opportunities for Australian agriculture in the powerhouse Middle Eastern
1
PLACES AND FACES 3
economy, a market that offers access to over 100 of the world’s richest capital cities. Guest presenters at the event included AACCI CEO Suzannah Moss-Wright, Seaways QLD, who specialise in freight to the Middle East,
2
General Manager Paul Dean, and Jamie Ferguson from the Arcadian Organic and Natural Meat Co. (exporters to the Middle East). Ambassador of the Kingdom of Saudi Arabia to Australia and New Zealand, His Excellency Nabil Al-Saleh also addressed guests, and spoke specifically of Saudi Arabia and the opportunities presented to Australia’s agriculture sector in light of the country’s food security concerns. 1. Guest speakers at TSBE’s The Middle East Opportunity included Australian Arab Chamber
4
of Commerce and Industry (AACCI) National Director Simon Harrison, Jamie Ferguson from Arcadian Organic and Natural Meat Co., Ambassador of the Kingdom of Saudi Arabia to Australia and New Zealand His Excellency Nabil Al-Saleh, AACCI CEO Suzannah Moss-Wright, TAFE QLD South West’s Jeff Bradbury, and Partner at TressCox-International Business Law Robin Lonergan. 2. TSBE’s Jo Sheppard, Ambassador of the Kingdom of Saudi Arabia for Australia and New Zealand His Excellency Nabil Al-Saleh and TAFE QLD South West’s Jeff Bradbury. 3. Honourable guest Ambassador of the Kingdom of Saudi Arabia for Australia and New Zealand His Excellency Nabil Al-Saleh with
5
TSBE’s Jo Sheppard. 4. Guest Speaker and Seaway QLD General Manager Paul Dean with David Van Reemst, also from Seaway QLD and Tom Hanson from Feed Central. 5. Steven Mai from Sunny Queen, Phil Gregory from Brisbane West Wellcamp Airport, Suzannah Moss-Wright from AACCI and George Moore from Southern Downs Regional Council.
PAGE 38
Surat Basin NEWS Thursday 18 June 2015
PLACES & FACES
Banding together
Getting into the swing of things T
Charity tournament raises substantial funds for the RACQ CareFlight aeromedical rescue service
HE RACQ CareFlight aeromedical rescue service will receive more than $14,600 raised by QGC and some of its contractors and suppliers at an inaugural charity tournament, held at Chinchilla Golf Course. QGC vice president production operations and tournament organiser Tony Pearce said the May 30 event had been a nice opportunity for the 72 tournament entrants to show their support for the CareFlight rescue service. “The CareFlight rescue service plays a huge role in supporting people in the Surat Basin region when they really need it most,” Mr Pearce said. “So it was an easy choice to make when deciding which organisation to support.” “The golf day was also a way for us to thank people from a number of those businesses that have helped QGC to grow and establish part of a new natural gas industry that is bringing prosperity to the region. “We had a great mix of players including representatives from our key contracting companies, local suppliers, QGC employees both from Brisbane and here in Chinchilla and members of the local community,” he said. QGC managing director Mitch Ingram also got to show off his passion for work away from the boardroom with a booming 290m tee-shot on the par 4, 7th hole to win the longest drive competition. The two-ball Ambrose event was won by Juan Botha (reliability engineer, QGC) and Brian Sterner (Accenture). The top gross score for the day was Chris Lyons and Trevor Olm from Onsite.
Tony Pearce, QGC, and Ray Stephenson, Veolia Water. Photo Contributed
John Hudson and John Smith from T.D Williamson Pipeline Performance. Photo Contributed
Ashleigh, Mitch and Lesley Ingram at the QGC Golf Day at Chinchilla. Photo Contributed
Richard Brasted and Matt Walker from ABB. Photo Contributed
Surat Basin NEWS Thursday 18 June 2015
PAGE 39
PLACES & FACES
A changing resources landscape
Diversity key at Energy and Mining Expo Expo spotlight will be shifted to other industries in 2015
T
he focus for this year’s Surat Basin Energy and Mining Expo has shifted somewhat from resources and mining to include many other related industries. In its fifth year, the Expo will be held at the Toowoomba Showgrounds from Wednesday, 17 to Thursday, 18 June. Organisers are delighted with the 200 plus exhibitors already confirmed and the fact that online delegate registrations are tracking exactly the same as in 2014 when over 6,000 business managers and staff attended. Event organiser Australian Events’ spokesperson Greg Johnson, who is director corporate development with the company said, “The extraordinary kaleidoscope of infrastructure and manufacturing developments in the Toowoomba/Surat Basin region made the decision to profile diversity quite easy. “Just look at the current inventory of projects and you’ll understand why the February 2015 Major Projects Report was so positive about the state’s south-east and Surat Basin. “The inventory includes projects like the $1.7 billion Second Range Crossing, $635 million Warrego Highway upgrade, $500 million CBD redevelopment, Brisbane West Wellcamp Airport, $45 million Outer Circulating Road
project, stage three expansion of the New Acland coal mine, inland rail, InterlinkSQ inland port and logistics park and, potentially, a $1 billion solar farm. “While CSG will remain the main topic for discussion at the Expo, it will be the case that many business owners will attend to gain an insight into opportunities aside from resources,” Mr Johnson concluded. Of South East Queensland, the Major Projects Report concluded “Publicly-funded infrastructure works are the key driver, with roads and railways work likely to remain the principal sources of activity.” In terms of Surat Basin the report recorded, “Upstream CSG/LNG work is currently driving robust activity. Given the region’s significant coal resources there is substantial upside opportunities to the forecast.” Delegate registration for business owners and their staff is free online at www.suratbasinexpo.com.au. For further information FREECALL 1800 671 588.
REGISTRATION ■ Delegate registration for business owners and their staff is free online at www.suratbasinexpo.com.au. For further information FREECALL 1800 671 588.
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PLACES & FACES
Dig deeper
Economist advises change in resources royalties Royalties overhaul a suggested course of action .
BY Emma McBryde
A
QUT economist has suggested the Queensland Government dig deeper into miners’ pockets to raise revenue. Dr David Willis, from the Queensland University of Technology, is pushing for an overhaul to the way the government collects resources royalties. “Queensland and the other states need to look at royalties based on an average tonnage shipped as well as royalties per price, with the miners paying whichever is higher at the time,” Dr Willis said. “Therefore, whatever miners produce past a certain price point, they pay for based on tonnage.” But Queensland Resources Council chief Michael Roche warned the state was already seen as a “high cost jurisdiction”. He said Dr Willis’s proposal would damage Queensland’s attractiveness to investors. As the time nears for the government to hand down its budget, Dr Willis said there were limited options for changing the royalties system. “Currently the royalties system is based on the price of a tonne of coal or iron ore,” he said.
We are presently running record production numbers but getting record low prices. Queensland Resources Council chief Michael Roche “But this is clearly deficient given the miners’ strategy of overproducing and oversupplying the market to force prices down to artificially low levels. “Larger miners with larger shares of the coal, gas and iron ore markets employ this strategy to try to maximise production and market share and at the same time pay less in royalties. “We are presently running record production numbers but getting record low prices.” Mr Roche argued miners were attempting to maximise production to save money through spreading fixed costs across as many tonnes as possible. He said the Palaszczuk Government had promised no royalty surprises and with the new LNG export industry starting to generate income, now would be the worst time to adjust royalties.
The State Government has hailed the contribution of the CSG industry to the Queensland economy. Photo Contributed
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Big rig bliss
ARLY Ferling has been driving 350 tonne dump trucks at Meandu Mine for nearly four years but her job still surprises people. “I love seeing people’s reactions when I say what I do,” Mrs Ferling said. “Once you’re out in civilian clothes it’s like ‘I can’t believe you do that’. “I think it’s still the stereotypical thing of ‘it’s a bloke’s world’ and you’ve got to be rough and tough to be working out in a coal mine. “Even when I told my sister I’d got a job driving a truck I think she still thought ‘you’re going to have coal all over your face with the pick’ and all those sorts of things.” It might still be a bloke’s world but Mrs Ferling said driving trucks at the mine was anything but rough and tough. She said it did not take long behind the wheel of a massive dump truck before it became second nature. “It’s actually really easy to drive them,” she said. “Everything is relative to it, so the roads are massive, the safety’s just phenomenal. “When I first started and I got back in my car at the end of the day I thought it was so little, like it felt like you were touching the ground.” While Mrs Ferling admits she works in a male-dominated industry it has never held her back. Four years down the track Mrs Ferling would not want to do anything else. “I don’t think I could ever go back to a normal Monday to Friday, 9-5 job,” she said.
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2. BIG RIG: Operator Carly Ferling standing near her truck.
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3. Carly Ferling drives 350 ton capacity trucks hauling dirt at Meandu Mine. 4. BIG RIG: Operator Carly Ferling is one of four women working in a team of about 30 men driving massive trucks at Meandu mine and she loves it. Photos Tessa Mapstone / South Burnett Times
Surat Basin NEWS Thursday 18 June 2015
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Surat Basin NEWS Thursday 18 June 2015
PAGE 43
PLACES & FACES
Encouraging involvement
Focus to increase women workforce in mines Industry employers implementing initiatives to attract women .
at its Monto mine, CEO Mark
McCauley receives one woman
applicant to every 10 men. Its workforce is made up of about 12% women, which reflects trends across all of Australia’s mining industry. “There’s a combination of several factors that are keeping women out of mining,” Mr McCauley said.
many mines’ construction to production
Goondicum Resources Monto mine CEO Mark McCauley
a go in what had always been a
“Firstly, tradition. And secondly, the lack of education in the mining industry about the benefits of an equal opportunity workforce.” Applications from women for operator roles like processing work and driving machinery are the most scarcely seen while administration, professional and technical roles were slightly more popular. “These roles are still skewed towards
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“It’s very encouraging to see that in the last quarter, while this transition (from phase) is ongoing, the number of women working in the resource industry has risen by 4500.”
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She said more young women needed to
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be encouraged in the classroom to have male-dominated industry.
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Mentoring and support services for the males,” he said. “More could be done to get women into the workforce but one thing we are seeing is more enrolled in engineering degrees.” Australian Mines and Metals Association executive director of industry services Tara Diamond, said the aim was to have 25% of the Australian mining workforce made up
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of women by 2020.
women have also helped close the gender gap in some of Australia’s large mining operations. Mrs Diamond said to attract more women employees, industry employers had moved in leaps and bounds, implementing initiatives such as paid parental leave schemes, flexible family-friendly rosters and things such
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as on-site childcare facilities.
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More could be done to get women into the workforce but one thing we are seeing is more enrolled in engineering degrees.
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