SURAT BASIN NEWS
28 NOVEMBER 2013
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INSIDE Page 4
New Acland mine flexes ag muscle
Page 26 Wellcamp Airport takes off
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SURAT BASIN NEWS
THE NEWSPAPER
The Surat Basin News publishes every month and will be delivered via the four dominant newspapers of the region: the Chinchilla News, Western Star, Dalby Herald and The Chronicle. It will reach the homes and offices of almost 50,000 people living, working and playing in the Surat Basin, connecting the business and mining communities throughout the booming region.
EDITOR’S
NOTE As the Surat Basin continues to go from strength to strength, it seems the secret is well and truly out. Our region is booming. Rents in Miles are the highest in Queensland outside Brisbane due to the insatiable industry demand for accommodation. And in Chinchilla, recent Real Estate Industry of Queensland data showed the town boasted a 100% rate of homeowners selling properties for more than they bought for in the last quarter. In the same week more than 250 industry players from across the state rubbed shoulders in Chinchilla at another highly successful Toowoomba and Surat Basin Enterprise evening. Apart from the all-important networking, they were there to listen to Thiess local content advisor Ben Hughes, who spoke about the company’s plans for the region after winning a $1.8 billion construction contract for QGC. The positivity on the night was electric and hopefully, it will mean even more business is on its way to the Surat Basin.
Surat Basin News is a necessity. It was born out of a passion for Australia's fastest growing communities — a passion for a region of unbridled potential and a future of vast economic growth and opportunities. The newspaper, professionally designed and regionally topical, will be a must read for anyone associated with the exciting Surat Basin.
ONLINE
Surat Basin News has gone online to ensure our readers in every corner of the country has the latest news sent directly to them.
THE VISION
Surat Basin News will allow local businesses to network and communicate with everyone in the 1200 sq km basin, providing unprecedented access to new clients and markets. It will give a revealing insight into major industry while lifting the veil on current and proposed developments. It will be there for each and every announcement shaping the region's future while profiling the colourful characters that define our communities.
DISTRIBUTION
The Surast Basin News is inserted into the four dominant local newspapers for the region: the Chinchilla News and Murilla Advertiser, Western Star Roma, Dalby Herald and The Chronicle Toowoomba.
PURCHASE FROM Newsagents in Chinchilla, Roma, Dalby, Gladstone, Moura, Toowoomba, Calliope
WEBSITE
THE
TEAM GENERAL MANAGER David Richardson Chinchilla 07 4662 7368 manager@suratbasin.com.au
ADVERTISING MANAGER Laurell Ison advertise@suratbasin.com.au 07 4662 7368 Karin-ane King Roma 07 4662 2411 karin-ane.king@westernstarnews.com Nicole Boyd-Taylor Dalby 07 4672 5500 nicole.boyd-taylor@dalbyherald.com.au
EDITOR
View our previous editions on www.issuu.com/suratbasinnews
Jim Campbell
UPDATES
JOURNALISTS
Regular updates on www.suratbasin.com.au
This newspaper is a Platinium Member
Lyndon Keane Owen Jacques
PAGE DESIGN Beth Walker
THE
INDEX
SURAT BASIN NEWS
IN THE NEWS New Acland mine rehab Page 4 RME cuts Toowoomba jobs Page 6 QGC pushes into Wandoan Page 9 Arrow warns of job losses Page 10
OPINIONS
BUILDING THE BASIN Wellcamp Airport open day $1 million towards health Award winning worker New estate in Miles
Page 26 Page 28 Page 29 Page 31
Pages 14 - 17
PLACES & FACES
DOWN TO BUSINESS Trifecta of events in 2014 Toowoomba profile Roma business profile Miles housing award Arrow helps communities QRC news
Page 19 Page 20 Page 21 Page 22 Page 24 Page 25
TSBE Enterprise night Roma Cup photos Gala QRC event Daniel makes his mark
Page 32 Page 34 Page 35 Page 36
12 Mayne Street Chinchilla Q4413 PO Box 138 Chinchilla Qld 4413
PUBLISHED The Surat Basin News is printed by Chinchilla Newspapers Pty Ltd 12 Mayne Street Chinchilla Q4413
The Surat Basin News is printed by APN Print 50 Industrial Avenue Toowoomba
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THIS WEEK
MP CALLS FOR MORE AG FREIGHT ON RAIL SYSTEM
AG FREIGHT BACK ON TRACK A
distastous cattle truck crash on the Warrego Highway has renewed fired-up calls for the state's rail system to shoulder more agricultural freight. The crash saw a 26-year-old man being cut from the wreckage of the triple trailer cattle truck after it careened into the bush, 5km east of Chinchilla, at 4.45am on November 19. The cab was smashed and the driver's leg pinned for more than three hours before he was freed. Many cattle from the leading trailer were also killed or injured by the impact.
The incident held up traffic on the already congested highway for more than five hours. Light vehicles were able to take a dirt track to bypass the crash site but trucks were forced to wait until the cattle were dealt with. During the clean-up, a council worker holding a stop/go sign had to be hospitalised after being charged down by a rogue bull. The driver and the council worker were both recovering in Toowoomba Hospital in a stable condition. Member for Warrego Howard Hobbs
said more havoc on the highway was inevitable until freight was taken off the road and put back onto the rail system. "It's disappointing that we've had another rollover but, with the increased traffic we've got on the Warrego Hwy, it's inevitable that we'll have more," he said. "That's just how the numbers fall. We've got to do everything we can to get freight off the road and back onto the rail." Mr Hobbs has initiated a parliamentary inquiry seeking to find
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ways to encourage graziers and grain growers to start using the rail system again. "The rail was used in the past thousands of cattle used the rail but for the past 10-15 years its use has been deteriorating," Mr Hobbs said. Aurizon, formerly QR National, uses the western line primarily for the transportation of coal, but two taxpayer-funded passing lanes at Toowoomba are expected to open up 19 new train slots on the packed line. Mr Hobbs urged residents to make written submissions to his office by February 21.
IN THE NEWS
IN THE
NEWS I
t is not a setting many would associate with paddocks of thriving native pastures and well-fed beef cattle, but an ambitious agricultural experiment is taking root on ground formerly the domain of 100-tonne dump trucks. Acland Pastoral Company - a subsidiary of coal giant New Hope Group - is currently undertaking the second stage of a fiveyear project to compare how cattle grazing on rehabilitated mining land compares to those paddocked on unmined land. The pastoral company was launched seven years ago, runs about 2800 head of cattle overall and controls 10,000 hectares of land. As part of the trial's second stage, about 200 head of cattle are being run on land within New Acland coal mine - north of the Darling Downs township of Jondaryan - including 215 hectares that has already been mined and rehabilitated by New Hope Group. As part of the rehabilitation program, NHG backfills the mine's pits - which range in depth from 80 to 100 metres once the coal has been removed, before the original topsoil from the site is spread across what was formerly the playground of excavators and rumbling dump trucks. Jim Randell, executive general manager of mining for NHG, said the process worked well. "Once we've got the topsoil back on, we hand it over to Acland Pastoral," he explained. APC manager Ben Muirhead said the goal was to return the New Acland site to sustainable agricultural land once it reached the end of its operational life. "We're confident...we can return it to cropping land," he said. "The key goal is to get some stability back in that ground." The second stage of the trial is being overseen by independent consultancy Outcross and Mr Muirhead said he believed it would "put some scientific rigour into land rehabilitation" by demonstrating mined land could support crop and pasture production. Mr Muirhead said the initial stage of the trial had produced promising results. "Last year's first stage of these cattle trials indicated that the weight gain of the cattle on the rehabilitated mining land was better than the cattle that grazed on the non-mined land," he said.
FROM COAL MINE TO GRAZING LAND
IN THE NEWS
CHANGING TIMES
BACKERS WANT ‘MORE VALUE’
THE INDUSTRY AT A GLANCE
ARROW ENERGY’S MULTI-BILLION DOLLAR COAL SEAM GAS PROJECT COULD TAKE NEW COLLABORATION DIRECTION
Palmer pledges to take on the ATO over ‘missing’ tax
T
T
he companies that own Arrow Energy's $20 billion coal seam gas project in Queensland have cast a shadow over its future by saying they want "more value" from the operation. While Arrow Energy has a very visible presence in the Surat Basin, the comments, when combined with the International Energy Agency's downgrade of long-term Australian liquefied natural gas export forecasts, have raised doubts the project will go ahead as originally planned. Cost blow-outs in every big development approved in the past 10 years have put projects at risk, and The Australian reports that Royal Dutch Shell and PetroChina - the companies that own Arrow Energy - have told
operators to sharpen the cost structure. "Staff have been advised that we are still looking for more value in the project, including collaboration, in order to offer shareholders (Shell and PetroChina) a more competitive proposition," an Arrow Energy spokesman said. "Arrow has previously stated that it is results and value-focused, and not schedule-driven." In September, Arrow Energy secured State Government approval for an LNG plant in Gladstone. But some uncertainty remains about whether the partners will proceed with a standalone venture. The approval meant Arrow Energy now had state-level clearance for three of the five
parts of its LNG project: the plant and the two pipelines that will take CSG from the Surat and Bowen basins to Curtis Island. Approvals for the development of the company's upstream CSG fields are still outstanding. Arrow Energy is targeting a final investment decision by early 2014 for the project but some observers believe it will not go ahead with a stand-alone plant, instead linking up with one of the three existing CSG LNG ventures in Queensland.
Page11 SEE STORY
Downer EDI wants women drivers
he newly-appointed Member for Fairfax has already ruffled Federal Government feathers by challenging the Australian Taxation Office over a $6.2 million carbon tax bill. Never one to take a backwards step, Clive Palmer said his company, Queensland Nickel, will not pay the bill and has thrown down the gauntlet to the ATO to start legal proceedings. After missing the June 17 payment deadline, Queensland Nickel was slugged with the bill, which represents carbon units equivalent to 206,436 emissions. While the carbon price was $23 per tonne of emissions, but Mr Palmer now owes $29.90 per tonne as a penalty for not paying on time. The outspoken billionaire told the National Press Club in Canberra earlier this month that his company had no intention of paying the tax, which he branded unconstitutional. "We can justify it to our shareholders," he said. "And the Government, if they think they're owed the taxes, they should commence legal proceedings against us. "We've commenced legal proceedings in the High Court of Australia against them." A staunch opponent of the carbon tax, Mr Palmer has previously said that as part of the Abbott Government's plan to repeal the tax, any money raised should be refunded. "We think it should be repealed from the date of introduction and the Liberal Party policy seems to be only to repeal it, and not worry about the injustices that happened over the last year or two," Mr Palmer said. "So, we'd want to get clarification on that. We'd want to get some advice, talk to people and have a friendly discussion with Mr Abbott."
IN THE NEWS
BAD NEWS FOR WORKERS
RME FORCED TO SLASH JOBS R
esource sector workers in the Surat Basin are reeling at the news one of Toowoomba's highest-profile companies will slash up to 100 jobs to tackle declining investment in the mining industry. Russell Mineral Equipment, which is based in the Garden City but boasts that it operates in "over 50 countries worldwide", made the announcement on November 13 after advising staff the week before. Staff will be told before the end of December whether or not their position will be made redundant, with those affected keeping their job until the end of January. In a statement, the company said that it had experienced a 20 percent reduction
‘
Doctor John Russell Manager director
TOUGH TIMES: Russell Mineral Equipment's managing director, Dr John Russell, says the company is trying to save "as many jobs as possible".
Between 5 0 a nd 1 00 positions a re l ikely t o b e shed f rom i ts m anufacturing operations f rom e arly 2 014
in demand for capital equipment in February this year, with an additional 41% downturn forecast from February 2014. "To remain viable as both a successful Queensland enterprise and an Australian-owned and operated company throughout this phase of the industry's economic cycle, (Russel Mineral Equipment) is preparing to reduce position numbers at its Toowoomba headquarters," the statement reads. "Between 50 and 100 positions are likely to be shed from its manufacturing operations from early 2014." The company's managing director, Doctor John Russell, said all would be done to "mitigate the effects of changes for its employees". "We are working towards preserving as many jobs as possible and conserving the operations of the business to ensure Russell Mineral Equipment is sustainable into the future," he said. "RME values the contributions of the teams which have helped to grow this business into one of the region's most innovative and successful ventures over the past three decades".
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IN THE NEWS
COMPANY PULLS OUT
LINC BREAKS FROM BASIN
L
INC Energy has pointed a finger of blame at the Queensland Government after the energy company announced it was pulling the pin on its underground coal gasification plant near Chinchilla at the end of this month. In an announcement via the Australian Securities Exchange on November 5, the company said it was decommissioning the pilot plant - the longest-operating UCG research and development location in the world - following "14 successful years of operations", including the production of 48 million normal cubic metres of syngas. Linc Energy has tested five generations
OPERATIONAL NO LONGER: Linc Energy has decommissioned its underground coal gasification plant near Chinchilla.
of UCG designs at the plant but it said in its ASX statement that the State Government had not made UCG production in the state a viable commercial proposition. "Is it with regret that, despite UCG being first initiated by the Queensland Government as a technology for prospective monetisation of the state's vast stranded coal resources, to date, the state has not provided the UCG industry with any material certainty or confidence capable of supporting commercial investment in UCG in Queensland," the statement reads. "As a result, Linc Energy does not a commercial opportunity to deploy its
UCG technology into Queensland at this time. "Whilst the company wishes to maintain a presence in the state in the hope that future clarity and leadership will provide the necessary trigger for commercial investment, the company has drawn the conclusion that it must continue to progress its UCG business offshore." In a busy month for the company, Linc Energy also announced it planned to divest its coal division - valued at $440 million - and list on the Singapore Exchange. The divestment follows the company's purchase of the Blair Athol coal mine for
just $1. Linc Energy chief executive officer Peter Bond hailed the Chinchilla plant a "profound success" but slammed the Queensland Government's treatment of the fledgling UCG industry. "I do not believe that we have been afforded a level playing field or offered a fair go with access to the basic right of statutory due process," he said. "Obviously, the decommissioning of Chinchilla is an emotional event for the company and for me personally." Linc Energy would not confirm how many jobs would be lost as a result of the Chinchilla plant's demise.
MINING AND RESOURCE DIRECTORY HERE’S A CHANCE TO DRILL DOWN TO YOUR CORE TARGET MARKET There’s no denying it – the mining industry really is booming Queensland wide. 2011/12 saw an estimated $36 billion* in direct spending to the QLD economy purely from the resources sector. Nearly $30 billion* of this spend came from contractors as well as the Coal and Gas industries. Early 2014 will see APN publish a special Mining and Resource Directory targeting all business, trades and professionals in the mining industries. As an essential businesses that will benefit from the Queensland wide Mining boom, you are invited to be a part of this handy informative directory by placing your business details inside. Whether you’re in the industry, you supply to it, or you want to grab the attention of thousands of industry workers and owners, now is your chance to be a part of this lucrative product. From as little as $200, you can be a part of this lucrative product. Reserve your spot now. Published Booking deadline Copy deadline
March / April 2014 Monday 3rd February 2014 Friday 7th February 2014
TO SECURE YOUR PLACE IN THIS FEATURE CONTACT Erika Brayshaw Ph: 0407 078 572 Fax: 4662 8474 Email: erika.brayshaw@apn.com.au
*Queensland Resources Council Nov 2012
Chinchilla News
and Murilla Advertiser
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Surat Basin NEWS
IN THE NEWS
QGC EYES WANDOAN
UP TO 400 NEW WELLS ON CARDS Q
GC is about to have a much stronger presence around the upper Surat Basin after the company referred a proposal to develop up to 400 wells around Wandoan. Under the proposal, QGC would build the wells about 20km west of the township on ATP 852 and PL 401, in addition to the wells approved for the highly-publicised Queensland Curtis LNG Project. The additional wells have been described by the company as part of "gradual development" and creating them would involve the construction of up to three gas compression facilities, water and gas gathering pipelines, and supporting
infrastructure, such as access roads and laydown areas. About 50 landholders are believed to be involved in the development, which QGC says it does not expect will have any significant environmental impact. Of the total permit area involved with the development, about 123,500 hectares - or 94 percent of the land is already devoid of trees and used mainly for grazing. A QGC spokesman said the new wells would feed into nearby, alreadyapproved gas processing and water facilities. Subject to obtaining the relevant approvals, QGC expects first gas production from the wells in 2016.
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IN THE NEWS
BOOM TIMES
NEW REPORT BRINGS MORE GOOD NEWS ENERGY SKILLS QUEENSLAND REPORT SAYS THOUSANDS MORE WORKERS ARE ON THE WAY
LAYING THE FOUNDATION: Despite forecasts of industry downturns, coal seam gas is still big business in the Surat Basin. plants on the much-hyped Curtis Island, near Gladstone. The 20-year workforce plan for the operations and maintenance phase of the coal seam gas to liquefied natural gas industry has identified the workforce requirement will peak in 2024, based on Queensland having 45,000 wells and six LNG trains. In the event of production being increased to 59,000 wells, ESQ has predicted the peak workforce could swell to more than 17,000. The 52-page reported has identified 20 key upstream "critical skills and occupations" it believes will be in high demand, including cable joiners, tool pushers, CSG technical trainers, geologists, engineers and telecommunications technicians. 12 key downstream jobs, including LNG plant operators and superintendents, health, safety and environment officers, and electrical fitters, are also identified.
A TOP Queensland bureaucrat says the state should be "excited" about New South Wales continuing its campaign to frustrate the coal seam gas industry through strict regulations. Department of State Development executive director Dennis Bird made the comments during the Queensland Major Projects conference, which was held in Brisbane earlier this month. During a panel discussion titled "Where to next for the Queensland gas industry", Mr Bird was asked whether Queensland would benefit from NSW gas restrictions put in place earlier this year. Intense public opposition to CSG development has proved far more persuasive to the NSW Government than the industry's sales pitch, and even the looming threat of increasing gas prices. For Mr Bird, all of these factors are good for Queensland. "I'm excited by NSW's attitude," he said. "It does open us up for opportunities for gas exported to NSW. "We want to exploit as much of our gas resources as we possibly can. "Get as much gas as we can and if NSW and Victoria take it, then good luck to Queensland."
MINING WORKFORCE REPORT LAUNCHED THIS WEEK
PEAK PRODUCTION: More than 12,500 gas workers are tipped to be employed in the Surat Basin by 2024. ESQ chief executive officer Glenn Porter said he believed the report highlighted "the critical need to work more with the contracted workforce" as the industry continued to grow.
A REPORT highlighting the challenges facing workforce productivity in the mining sector will be launched with pomp and ceremony by Energy Skills Queensland in Brisbane on November 28. The Heartbeat Report is an analysis of the Queensland mining workforce and has been produced since 2006. Last year, the report revealed high turnover, an increase in nonresident strategies, an ageing workforce and a reluctance to employ younger workers as key issues affecting the industry's future productivity. The report will be officially launched at the Novotel Brisbane but will also be able be downloaded from the ESQ website.
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f Energy Skills Queensland is correct, the Surat Basin will be teeming with more than 12,500 gas industry workers by 2024. In its latest report - entitled Queensland CSG to LNG Industry Workforce Plan (Operations and Maintenance 2014 2034) - the industry body says it believes the state's booming gas industry will employ 14,900 people by 2024, double earlier assessments. The report estimates that of the 14,900 workers, about 85 percent - 12,665 - will be needed in the Surat Basin, with 10% needed in Gladstone and 5% forecast to be required in Brisbane. The industry's biggest players - Arrow Energy, Conoco Phillips, Origin Energy, Santos and QGC - supplied the job data to ESQ to facilitate the report. All of the companies are involved with building or seeking approval to develop sprawling gas fields in the Surat and Bowen Basins, as well as processing
GOOD NEWS FOR QLD CSG
IN THE NEWS
JOBS THREAT
PROPOSED LAWS WOULD THREATEN INDUSTRY
AT A GLANCE • ARROW E nergy c laims 1 300 jobs w ill b e l ost i f b an passes
A
rrow Energy claims 1300 jobs will be lost if legislation to ban coal seam gas activity on prime agricultural land in Queensland passes. The Protection of Prime Agricultural Land and Other Land from Coal Seam Gas Mining Bill 2013 was introduced into State parliament in June, and the agriculture, resources and environment committee is currently holding public hearings on the legislation. Member for Lockyer Ian Rickuss is chairing the committee, which is seeking to determing whether CSG activity should be banned from topshelf farming land, both in the Darling Downs and in other parts of Queensland. The CSG has brought $60 billion in investments and has created about
10,000 jobs in the past year, but the bill puts forward a call to prohibit all exploration activities "east of the Condamine River from Chinchilla to the New South Wales border, and from the longitudinal line running directly through the Chinchilla Post Office east to the coast". The bill has further divided energy companies, primary producers and antiCSG protestors. Arrow Energy provided a submission to the inquiry stating it believed that the bill passing could cost 1300 of the company's workers their jobs. "…We find the draft bill extremely concerning, proposing as it does to remove, without compensation or consideration of reputational damages to Queensland, our business foundations,
including ongoing supply obligations to Queensland has users, and deny developments of a new and valuable export project," the submission reads. "Further, it would result in immediate loss of employment for a large portion of our 1300 staff, and necessary termination of contracts for goods and services from many local and regional suppliers." The Condamine Catchment Management Association supports the bill and said it believed "preference is being given to mining and coal seam gas enterprises", stating the "depletion of high-quality aquifers" as one of its major concerns. The group's vice-president, John Stanley, slammed Toowoomba Regional Council for failing to serve the interests
• CSG a ctivity s hould b e banned f rom t op-ss helf farming l and • The C SG h as b rought $ 60 billion i n i nvestments a nd has c reated a bout 1 0,000 jobs i n t he p ast y ear, • The b ill h as f urther d ivided energy c ompanies, p rimary producers a nd a nti-C C SG protestors. • The C ondamine C atchment Management A ssociation supports t he b ill
of landholders through its support of Toowoomba and Surat Basin Enterprise. "No one's voice is heard," he said. "They are only listening to the resources sector."
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IN THE NEWS
WOMEN WANTED
COMPANY OPTS FOR THE FAIRER SEX
THE INDUSTRY AT A GLANCE
DOWNER EDI TARGETS WOMEN DRIVERS FOR NEW RECRUITS
T
here are set to be more women operating dump trucks on open-cut mines in Queensland after a mining services contractor receive the green light to advertise for 50 women-only positions. In a decision that has polarised the industry, the Queensland Civil and Administrative Tribunal granted Downer EDI Mining an exemption under the Anti-Discrimination Act, which allows it to specifically target females for entry-level positions. Downer EDI Mining will employ 10 females to drive trucks at five Queensland open-cut mines every year after successfully arguing that it believed men were susceptible to "risk-taking". The company sought an exemption because it was concerned it could be liable for action for unlawful
discrimination for advertising womenonly roles. In handing down her decision, senior tribunal member
Clare Endicott said the company had provided compelling submissions for the exemption. "It was submitted that increased female workforce participation promoted inclusiveness and diversity, fosters greater innovation and reflects a strong corporate responsibility," the decision reads. "It was submitted that men are found to be more susceptible to risk-taking than women and it was anticipated that an increased female participation in positions at mining sites would provide an opportunity to improve a safety culture in the organisation. The tribunal heard that 14 percent of the company's workforce was female. Downer EDI Mining said it aimed to reach a target of a 25% female workforce by 2020 by developing site cultures and support mechanisms to "break female stereotyping at sites".
Aurizon welcomes Galilee strategy THE country's largest coal haulage company, Aurizon, has come out in support of the State Government's Galilee Basin development strategy. The strategy was released earlier this month by Premier Campbell Newman and aims to unlock the region's coal reserves by incentivising first movers in mine, rail and port infrastructure, including Aurizon. Aurizon chief executive officer Lance Hockridge said he believed the company was "well-positioned" to help open up the Galilee Basin. "Aurizon has been developing an integrated rail transport and port solution for Galilee Basin coal over the past two years and has been working closely with a range of parties," he said.
IN THE NEWS
THE INDUSTRY AT A GLANCE Company warns of dodgy Curtis Island scams AS COMPETITION heats up for jobs on Curtis Island, Bechtel has warned potential liquefied natural gas workers that some job agencies are taking cash in exchange for promised help to get a position with the company. Bechtel has received reports about an "employment broker" in Tasmania claiming to offer employment with Bechtel on its Curtis Island projects. Candidates were asked to pay $200 for an initial referral and then a further $200 when they were found a position. Bechtel said it was not affiliated with the company in any way and the solicitations were not legitimate.
Brenner joins Origin Board
COMPANY SHIFT
MAXINE Brenner has joined the board of Origin Energy as an independent, non-executive director and a member of the company's audit and risk committees. Ms Brenner has more than 28 years of broad corporate experience and holds a number of non-executive directorships, including with Qantas. Origin chairman Gordon Cairns said he believed Mr Brenner's appointment would bring "expertise and experience" to the company.
GAS THE NEW FOCUS BLUE ENERGY SHIFTS OIL EXPLORATION TO GALILEE BASIN
B
lue Energy has refocused its operations on coal seam gas after undertaking exploratory drilling for oil in the Surat Basin last month. In October, the Brisbane-based operation announced it was chasing oil reserves on its Marburg 1 well as part of a $5 million farm-out to KIB Energy, a subsidiary of a Singaporean oil trading company. At the time, the company's chief executive officer, John Phillips
admitted the move was "a risky venture in terms of chance of success". The well, situated 120 kilometres north-west of Roma, was drilled to a depth of 685 metres and, while "good oil indications" were discovered, a document lodged with the Australian Securities Exchange reports a drill stem test failed to recover hydrocarbons. With a cloud hovering over Blue Energy's quest for Surat Basin oil, the company has moved its exploration to
the Galilee Basin, where it is currently carrying out exploratory drilling on its Stagmount 1 well. The exploration is the first phase of a two-well program the company plans to drill in 2013, with the primary objective of Stagmount 1 to "increase the resource potential" of the its exploration permit. Blue Energy is expected to formally report on the outcome of its Marburg 1 drilling in coming weeks.
KEEPING UP TO DATE WITH THE DEVELOPING SURAT BASIN SURAT BASIN NEWS 07 4662 7368 12 Mayne Street Chinchilla Q4413
Laurell Ison advertise@suratbasin.com.au
Good for the health of local businesses
Arrow Energy generates far more than the electricity that powers hundreds of thousands of Queensland homes. We’re also creating opportunities for hundreds of small businesses. In less than 14 years, our small local exploration company has become an internationallybacked energy company. Our current contracts with Queensland businesses total more than $1.25 billion. And, in the past 12 months alone, we paid more than $826 million to local suppliers, most of them based in the areas we operate. As our activities increase, businesses get stronger. This adds up to sustainable employment opportunities and confident local economies. At Arrow Energy, we believe it’s good for everyone when the benefits flow both ways.
If you’d like to learn about our journey, visit arrowenergy.com.au
junior_ARR36790
Mareshah, Alkira and Talitha Bowie from South East Queensland family catering business Kapmauri Delights preparing traditional Torres Strait Islander dishes – just one of the Indigenous suppliers benefitting from Arrow’s activities.
OPINIONS
Member for Maranoa Bruce Scott, Deputy Prime Minister Warren Truss and Member for Warrego Howard Hobbs open the new Sir Thomas Mitchell Bridge.
ROAD WORKS ARE MOVING FORWARD, BUT PATIENCE IS NEEDED NEW BRIDGE PART OF $58 MILLION UPGRADE TO WARREGO HIGHWAY IN MARANOA The recently elected Federal Coalition Government and the Queensland LNP Government is committed to the reconstruction works of the Warrego Highway. The rapid expansion of coal seam gas and the mining sectors are fuelling rapid population growth in the Surat Basin. This highway is no longer a route used by farmers to transport their goods for sale. The Warrego Highway is now a major transport corridor and the development of the region's industry is growing the economy not seen since early settlement. This month the Prime Minister, the Hon Tony Abbott, and the Deputy Prime
Minister, the Hon Warren Truss, both visited the Maranoa and experienced the growth our region. The Prime Minister travelled along the Warrego Highway, between Oakey and Dalby, and the Deputy Prime Minister joined with me and the Member for Warrego, Howard Hobbs, to officially open the new Sir Thomas Mitchell Bridge. The new bridge over the Maranoa River will provide a safer link between Mitchell, Roma, and South West Queensland communities and will significantly improve this national freight route by allowing type-two road train access to Roma.
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The new Mitchell bridge recognises the Australian and Queensland governments' commitment to improving connectivity in South West Queensland, and ensure the important national route would remain passable during floods. The new Sir Thomas Mitchell Bridge is part of the $58 million upgrade to the Warrego Highway between Roma to Mitchell, with the Australian Government providing $44.1 million to the project.
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COMMENT
unlocking the pote nt
I
know, at times, it can be frustrating to look at a red traffic signal waiting for the colour to change, indicating it's time to resume your journey along the Warrego Highway. Currently there is an immense amount of road reconstruction works being conducted throughout the Maranoa electorate and I wanted to thank you for your patience. I know some are frustrated by the travel delays but I wanted to remind you of the potholes that peppered the highway like Swiss chesses. Do you remember the previous condition of the highway? I do.
ne SURAT BASIN NEWS 12 May d n a l s n Street Chinchilla Quee ail m E 8 6 3 4413 Phone 07 4662 7 u a . advertise@suratbasin.com e c i f f Laurell Ison - Chinchilla O 07 4662 7368 ice Karin-ane King - Roma off 07 4622 1411 fice Nicole Boyd-Taylor - Dalby Of 07 4672 5500 ba, circulating through Toowoom a m o Dalby, Chinchilla and R
Surat Basin News published by Chinchilla Newspapers Pty Ltd 12 Mayne Street Chinchilla Q4413
OPINIONS
WELCOME APPOINTMENT INDUSTRY MUST TRY TO ‘MEET AND EXCEED’ COMMUNITY EXPECTATIONS ON COAL DUST
Head office Roma
two-month period at the Oakey, Willowburn (Toowoomba), Dinmore, Tennyson, Fairfield and Coorparoo train stations. Background monitoring also occurred on a section of the metropolitan system not used by coal trains at Chelmer. The baseline data collection was followed with another month of monitoring in May to determine the impact of the New Acland Mine's introduction of coal wagon 'veneering' - a highly effective dust suppressing spray application of non-toxic biodegradable polymer to the surface of loaded coal wagons. The final report found that on all
metrics (before and after veneering) rail corridor dust levels were well within government air quality targets and Australian standards. Furthermore, the Queensland Department of Health confirmed that the Queensland Government's air quality objectives are 'considered protective of public health to the extent that any health impact of the pollutant is not likely to be discernible from the background rate of the health condition. Therefore, for people living along the corridor, the dust concentrations measured during the investigation are unlikely to result in any additional adverse health effects.'
Michael Roche Chief Executive Queensland Resources Council
COMMENT
T
his month the Queensland Resources Council was pleased to announce the election of New Hope Corporation Managing Director and Chief Executive Officer Mr Rob Neale as QRC President. Mr Neale was elected to the presidency after serving as QRC Vice President since 2010 and as a QRC Director since 2009. He will serve the current term (November 2014) of Mr Stephen Dumble, formerly Asset President of BMA who recently accepted a new role within BHP Billiton. Rob comes to the presidency of Queensland's peak minerals and energy representative body with more than 40 years' experience in exploration and production across several continents and commodities including gold, base metals, synthetic fuels and coal. Recently elected Chairman of coal-seam gas developer Westside Corporation, Mr Neale is also Chairman of the Australian Coal Association Research Program. Mr Neale's former QRC Vice President role has been accepted by new BMA Asset President Mr Lucas Dow, who will join Glencore Copper Chief Operating Officer Steve de Kruijff and Origin Energy's Executive General Manager, Upstream Oil and Gas, Paul Zealand as QRC Vice Presidents. Also in November on behalf of coal companies and supply chain service providers the QRC released a comprehensive coal dust management plan for the South-West-Metropolitan rail corridor in conjunction with a peerreviewed final report of air quality monitoring from Oakey to the Port of Brisbane. While exhaustive, the exercise is not about drawing a line under dust management as an issue but establishing a base from which industry can continue to meet and hopefully exceed community expectations. The facts about dust on the South WestMetropolitan rail corridor have now been collected, collated and analysed to the satisfaction of the most respected scientists in the country. Earlier this year, supply chain users and operators commissioned air quality scientists at the Department of Science, Information Technology and the Arts (DSITIA) to independently assess both health and nuisance impacts of dust from all sources at six sites along the corridor. Initial monitoring was conducted over a
The DSITIA findings were validated by an independent peer review by leading air quality expert Dr Neville Bofinger, who found that the study used appropriate methodology, experimental design and data analysis to reach its conclusions. The resources sector takes its environmental obligations seriously and has moved quickly and transparently in this instance to alert residents living adjacent to the rail corridor and their elected representatives of the facts. Industry has nothing to hide and is happy to be judged on its performance. The commissioning of the independent experts from DSITIA to compile a detailed analysis of air quality along the corridor followed by a peer scientific review is the first chapter. The next steps from the coal industry include: • The veneering by end 2013 of all coal trains travelling the South WestMetropolitan corridor • Funding for another 12 months of continuous monitoring along the corridor at Cannon Hill, Fairfield and Toowoomba to ensure the final report findings are consistent with experience across all seasons. The results of this continuous monitoring will be reported on the website of the Department of Environment and Heritage alongside their other statewide air quality data reporting • Partnering between with the International Laboratory for Air Quality and Health at QUT on an Australian Research Council (ARC) research grant application to apply a range of further air quality testing techniques along the rail corridor • Ongoing engagement by individual companies to inform communities on the report's findings and regular updates on the industry's performance in minimising coal dust along the rail corridor. The exercise has been a victory for science and transparency but is by no means the end of the story as industry strives to improve environmental outcomes.
OPINIONS PARLIAMENTARY INQUIRY
PUT AG FREIGHT BACK ON TRACK MORE AG FREIGHT NEEDED ON RAIL SYSTEM: HOBBS
I
am delighted to advise your readers that as Chairman of the Transport Housing and Local Government Parliamentary Committee, I will for the remainder of this year and the early part of next year conducting an extensive inquiry into optimising the capacity and performance of the rail system for freight and in particular rail freight use by the agriculture and livestock industries in Queensland. Part of this inquiry will be to provide future direction for enhancing the utilisation of the rail system for primary producers, and their freight needs and plan a rail system that is position to exploit future freight, particularly export opportunities and develop sustainable long term solutions for freight movement by rail for agriculture and livestock industries. Commodities such as cattle, wool, grain, fuel, gravel (to list a few) should be transported on the rail network and not on the road network. Currently in Queensland there are railway lines which are not utilised at all for freight. The Transport Housing and Local Government Committee will be asking questions and seeking answers as to how can these railway lines be put back into
full utilisation. We will also hold public hearings in regional areas and once our report is finalised in about mid next year, recommendations will then be presented to the Newman State Government for consideration and action. This Inquiry is about keeping the railways lines open and getting them working to capacity and getting the freight off the roads. The Committee is currently asking for written submissions from key industry groups such as AgForce; Queensland Farmers Federation; Cane Growers Australia; Meat and Livestock Australia; GrainCorp; Cotton Australia; and rail managers and operators including Queensland Rail; Aurizon and Pacific National, however any interested person or business can make a submission. Written submissions from interested persons, organisations or members of the public are being called for and can be sent by 5pm, Friday, 21 February 2014 to thlgc@parliament.qld.gov.au or by mail to: The Research Director, Transport, Housing and Local Government Committee, Parliament House, George Street, Brisbane QLD 4000.
COMMENT Howard Hobbs MP Member for Warrego
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OPINIONS
PRIME MINISTERIAL VISIT
‘SURPRISE’ VISIT BY PM TO THE SURAT BASIN MAYOR WARNS ENERGY INDUSTRY WORKERS TO PREPARE FOR FLOODING
COMMENT Cr Robert Loughnan Mayor of Maranoa Regional Council
COMMENT Cr Ray Brown Mayor, Western Downs Regional Council
I
was pleased last month to welcome Prime Minister Tony Abbott to our region. He paid us a surprise visit to experience first-hand issues facing regional Queensland, especially the Western Downs, including infrastructure like the Warrego Highway, the impacts of energy sector development, drought conditions, recovery from flooding, and the carbon tax impacts on aged care facilities. These discussions highlighted how important water is to our region, whether we're in drought, flooding, or facing major infrastructure decisions to support the forecast population growth. We've had a relatively dry winter and our thoughts are with farmers as they handle the shortage of rainfall. The dry weather has also created a build-up of fuel load in some areas with the relevant agencies working together for early back burning efforts along major rail and road corridors. The Queensland Rural Fire Service is always looking for volunteers and it's a great way to give back to the community you live, work and play in. To help survive flooding I encourage residents, even transient ones, to get ready: Stop, and prepare your evacuation and emergency kits; Listen to the radio and subscribe to Council's SMS alerts to stay up-to-date during a disaster; Act by following instructions from authorities when the time comes. I'd also recommend that you check your company's disaster plan as all resource companies have them. Council is conscious of population forecasts, particularly relating to the resource sector workforce, such as the data recently released by Energy Skills Queensland. So, we're gradually increasing water entitlements where possible and constructing water infrastructure in anticipation of this
The Prime Minister of Australia Tony Abbott with the Western Downs Regional Council Mayor Councillor Ray Brown at the Tarcoola Aged Care Facility in Tara on Saturday 2 November 2013 to discuss issues facing regional Australia. growth. Efficiencies in water technology and changes in water management practices also mean there are various ways we can manage water supply for the Western Downs in an ongoing and sustainable way as population increases. We're very mindful of the limited water
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resource available in Western Downs and have taken the approach of limiting guaranteed access to Town Water for certain developments. I would like to wish everyone and their loved ones a happy and safe Christmas and a prosperous New Year.
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EDITORIAL JIM CAMPBELL ADVERTSING LAURELL ISON
L
ast week, my Councillors and I travelled 'Out & About' across the region to speak with residents on the matters that are important to them. This time around, we split up and visited Roma, Noonga, Jackson, Muckadilla and Amby. Getting out in the region is important to us, because it gives us a chance to see residents in their own community, as well as travel along our rural roads sometimes in the far reaches of the Maranoa. This lets us appreciate the work that has been and is yet to be done. Deputy Mayor Scott Wason and myself visited Muckadilla and Amby. Some of the main topics of interest were the speed of trucks going through the towns - this is something I will endeavour to bring up with the Department of Transport and Main Roads as soon as possible. Drainage was also a key topic of interest with residents in Amby. With the Flood Mitigation Study community workshop taking place in Amby next week, it gave us an opportunity to encourage residents to come along so they can share their views and learn about potential mitigation options. Local businesses are an essential part of our community. It is important that we have face-to-face contact with them as this gives us the opportunity to ensure we understand their areas of interest. It also gives us a good chance to hear stories of local business being used to supply for larger, new companies in town - which is fantastic news. If you missed us this time around, we will be heading out again in the New Year, so keep a look out for the advertised locations and dates in January 2014.
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DOWN TO BUSINESS
I
FORUM OPENS DOORS
f the success of the 2013 QGC Upstream Contractors' and Local Business Forum is any indication, there are still a lot of small businesses trying to get involved in the Surat Basin boom. More than 250 attendees attended the event in Chinchilla on November 20, with event coordinator Toowoomba and Surat Basin Enterprise hailing it a "huge success". Throughout the day-long forum, about 20 big-name contractors both exhibited and presented, allowing attendees to learn about getting a foot in the QGC door. TSBE chief executive officer Shane Charles said the forum provided the perfect platform for business delegates to get a greater sense of the work available in the QGC supply chain. "It's a fantastic initiative from QGC," he said. "The proponents need to make it really easy for local companies to understand how to get involved in the QGC supply chain. "This forum is the perfect opportunity for local businesses to get in contact with QGC and more importantly, (its) prime contractors, who understand exactly what businesses need to do to get work in the supply chain." QGC local content manager John Abraham said the forum, now in its third year, had been positively received. "It's been another great success with 60 principal contractor representatives, 250 business delegates and QGC contracts and procurements staff in attendance," Mr Abraham said. "It proves how popular and useful past attendees have found the annual forum, with the event reaching full capacity this year. "One small part of QGC's commitment to the community is by supporting regional business awareness and access to our supply chain, and this forum helps do just that."
1. ANOTHER SUCCESS: QGC local content manager John Abraham and Toowoomba Surat Basin Enterprise chief executive officer Shane Charles celebrate a successful forum. 2. QGC COLOURS: Representing QGC at the forum are Nicola Savage, Robert McConachie, Tarni Callaghan and Julia Demitryuk. 3. LEADING BY EXAMPLE: Cameron Wills, Veronica Agnes and Mike Lyle man the Oceaneering exhibit at the forum.
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DOWN TO BUSINESS
THE INDUSTRY AT A GLANCE The honeymoon is over ABOUT 90 miners are set to lose their jobs after Uranium One announced it will be closing its Honeymoon uranium mine in South Australia. Lackadaisical uranium prices and high operating costs are behind the decision to mothball the mine, which is located 75 kilometres from Broken Hill. The company's vice-president said the transition to care and maintenance would take about five months. Uranium One was taken over earlier in 2013 by the Russian State Corporation for Nuclear Energy, Rosatom.
Linc to divest $440M coal division
ROCKHAMPTON - TOWNSVILLE - TOOWOOMBA
EXPO TO SHOW OFF INDUSTRY AUSTRALIAN EVENTS TO BOAST TRIFECTA OF LEADING INDUSTRY EVENTS IN 2014
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One of Australia's leading energy and mining expositions, the Surat Basin Energy and Mining Expo, will descend on Toowoomba Showgrounds for another record-breaking event from June 18-19, 2014. The Australian mining industry is tipped to grow by over 41% in the next five years, and the Surat Basin will see much of the action with a string of recent positive announcements for the region. The Surat Basin Expo is designed to support this flourishing resources industry by providing an excellent environment for exhibitors to showcase innovation and an unrivaled platform to network with industry heavyweights and suppliers to ensure they get the best bang for their
buck. Event Director, Bob Carroll, said the event was already 70% sold out with new sponsors coming on board and a very exciting conference program in place. There are a number of field trips being planned for delegates and exhibitors, and he highlighted the fact that the whole region is booming with a flurry of activity, all of which will be showcased at the event. This will be the third in a trifecta of events to be staged by Australian Events in 2014. The Central Queensland Industry and Resources Expo [CQ Expo] will return to Rockhampton Showgrounds for it's third year from March 19-20, and the inaugural North Queensland Industry and Resources Expo [NQ Expo] will be
held at Townsville Entertainment and Convention Centre from March 27-28. Mr Carroll says that running the NQ and CQ events back-to-back gives businesses the unique opportunity to showcase themselves and connect with industry and business in two close-by boom regions within 10 days. "The events are designed to showcase the three leading economic centres for business and industry in Queensland." Exhibitor applications and visitor information can be found at http://suratbasinexpo.com.au/, http://www.cqexpo.com.au/ and http://nqexpo.com.au/.
LINC Energy will divest or demerge its coal division next in 2014 once it lists on the Singapore Exchange later this year. The energy company announced on November 13 that it had attached a $440 million valuation to its coal business, New Emerald Coal. The valuation includes the company's recently-acquired Blair Athol mine and the Teresa coal project in the Bowen Basin.
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THE INDUSTRY AT A GLANCE
Westrac slashes hundreds of positions HEAVY equipment business WesTrac has retrenched almost one-quarter of its staff in the past four months in a dramatic response to the resources sector slowdown in the mining industry. The company announced earlier this month it would shed 630 jobs through redundancies, contractor cuts and natural attrition. The job losses come on top of 375 positions that were axed in June.
Dialling danger A MOBILE phone is believed to have been found in the wreck of a dump truck involved in an accident at Fortescue Metals Group's Christmas Creek site last month. The operator involved in the accident lost his leg after he ran into the back of another truck in the early hours of October 22. Australian Mining has reported a number of sources "close to the incident" suggest a phone was found in the truck's cabin.
Alliance claims approval from ‘false’ information THE Lock the Gate Alliance claims it has mounting evidence that Whitehaven's Maules Creek mine received approval on the back of "false and misleading" information. An appeal against the proposed mine was lodged earlier this year and a decision is expected soon, but claims have been made that then-Federal Environment Minister Tony Burke approved the mine without viewing an adequate offset package. Lock the Gate national co-ordinator Phil Laird said he believed the offsets proposed by Whitehaven were not mapped correctly.
ENGINEERING FIRM LEADS THE WAY
BUSINESS SUCCESS T
oowoomba engineering company JPC Engineering is a shining example that Surat Basin businesses can take on national and international contracts when up against fierce competition. With more than 20 years' experience, JPC Engineering delivers a wide range of engineering projects from design concept through to 3D design, drafting of production drawings, fabrication and machining, site installation and commissioning. As testament to the firm's ability, it was recently crowned the professional and business category winner at the 2013 Toowoomba Chamber of Commerce and
Industry Business Excellence Awards. JPC Engineering owner-operator Justin Clarke said he had always worked with a "can-do" attitude and service-driven culture, and admitted that business growth had come from being up-to-date with the latest technologies available across many fields. "Our recent innovation has been in the area of making the drawing to fabrication and assembly process far more streamlined by involving the engineers in the procurements, fabrication and assembly," he explained when asked how a business launched in Toowoomba could now have a presence in the Middle East and Asia.
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"One hour of the engineer's time can save one day for three fabrications in interpretations of drawings, purchasing and location of parts. "By the time a design is complete on the computer the person most familiar with the design is the engineer; he or she is then well-placed to also carry out all of the checking and quality processes. Other than the international projects JPC Engineering is currently involved in, the company also services local Surat Basin clients and carry out energy sector work including designing and drafting for gas- and coal-fired power stations, coal mines and coal seam gas operations.
DOWN TO BUSINESS Cockatoo Coal - ASX Code: COK
Linc Energy - ASX Code: LNC
Blue Energy - ASX Code: BUL
Leighton - ASX Code: LEI
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ROMA BUSINESS TAKES ADVANTAGE OF ENERGY BOOM
REWARD FOR EFFORT W
hile the big-name success stories of the Surat Basin's gas and oil boom are instantly recognisable, one Romabased company has gone from strength to strength with a little more subtlety. Fleming's Welding Service - a medium-sized engineering company which was originally launched by Gavin Fleming in 1994 - has offered specialised welding services for almost two decades and continued a trend of growth by maintaining strong relationships with resource companies. Due to the expansion of the coal seam gas industry, the business was required to evolve rapidly and increase its professional capabilities, especially in the past six years, and now prides itself on being a leading service provider for the Maranoa region by providing quality, costeffective solutions and reliability. General manager Kellie Rayner - who
Entering the Surat Basin business landscape is easier that you think
is also the daughter of Mr Fleming said the company now employed 30 staff and was focused on expanding as its client list grew. "Our clients use us because we are conveniently located central to the gas fields, as opposed to companies in Brisbane," she explained. "A lot of the time, it's just a quick fix. "Clients are now asking us to do a greater range of services for them but we still specialise in pressure welding. When the mining boom is finished and construction is over, we will still be there to carry out maintenance and will always be diversifying our services." The Fleming's Welding Service workshop and mobile units are fullyfitted with the latest equipment: the fabrication team provides unique, onsite welding, while the mobile welding units maintain, repair and extend the life of high-pressure pipelines, pressure vessels, structures
and numerous other components. The company's main services include workshop pre-fabrication of pipe spooling, both light and heavy fabrication, construction, structural steel erection and plant maintenance, while new services introduced recently include electrical wiring, sandblasting, flange re-facing, pipe threading, mechanical repairs and pipe fitting. Toowoomba and Surat Basin Enterprise chief executive officer Shane Charles said he believed the continued growth of Fleming's Welding Service was testament to how local businesses could maintain an edge in a competitive industry. "Kellie and her team have shown how important having that local knowledge can be when running a business in a regional town," he said. "They continue to evolve their services and have therefore stayed at the forefront of welding services in the Maranoa region."
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DOWN TO BUSINESS Origin - ASX Code: ORG
Transfield - ASX Code: TSE
Santos - ASX Code: STO
New Hope - ASX Code: NHC
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3.65
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14.60
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3.60
14.20
14.40
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Share price listed was accurate at close of business on the days listed in 2013
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HOUSING AWARD
SUCCESS ON THE HORIZON HORIZON HOUSING WINS MAJOR INDUSTRY AWARD FOR PROJECT IN MILES
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eveloped by not-for-profit Horizon Housing in partnership with Australia Pacific LNG, the Miles Affordable Housing project has been named winner in the Mining and Resource Development category at the UDIA Awards for Excellence 2013. The development comprises of three triplexes, for a total of 9 two and three bedroom units situated on Eleanor and Daisy Streets. It is the first project of its kind in regional Queensland, backed by a $2.05 million contribution from Australia Pacific LNG housing initiative. Addressing the critical needs for
affordable housing in Miles, Horizon Housing worked closely with the Murilla Community Centre, Western Downs Regional Council and Australia Pacific LNG to ensure the project was targeted to meet local needs. Horizon Housing chief executive Jason Cubit said the team at Horizon Housing were delighted with the UDIA award, which would help highlight the importance of building ongoing relationships with local councils and community groups to ensure quality affordable housing is provided to those who need it most.
''Throughout the process we consulted with local community groups and businesses to ensure the outcomes delivered through the project would meet the needs of the community and environmental best practice," Mr Cubit said. "Local industry participation was also a key goal of the project, whereby local consultants, builders and suppliers were encouraged to tender for construction works. "Such close engagement with the wider community, local council and other industry groups has guaranteed the project has added significant value to
the region and received overwhelming local support." Horizon Housing sold two units to owner-occupiers and will retain the remaining 7 units to rent to local families and key workers at affordable rates, liaising with key stakeholders in the local community to ensure the properties are made available to those most in need. "The development presents a great opportunity for numerous families, who can now look forward to continuing their lives here in Miles without suffering housing stress."
THE INDUSTRY AT A GLANCE Mayors join forces THE impacts of the resource boom were on the table when some of the state's local government leaders met for preliminary discussions with the Local Government Association of Queensland in Brisbane on November 22. Western Downs Regional Council mayor Ray Brown said the broad-ranging
discussions covered "everything from roads to sewerage". An LGAQ spokesman said the meeting had been productive. "It's always a good thing that councils that have common challenges, like those in resource-intensive communities, can get together to decide on policy approaches and also advise LGAQ as a body in what direction we should be heading," the spokesman said.
Workers reject pay deal WORKERS at Peabody's Helensburgh mine have rejected an enterprise agreement which would have resulted in receiving zero, two and two percentage pay increases as part of a two-year deal. Results from the ballot revealed 179 of
the 188 workers who had their say voted down the offer. Impassioned negotiations over the new enterprise agreement have resulted in multiple strikes, bans and lock-outs by the company over the past month.
DOWN TO BUSINESS
COMMUNITY HELP
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wo well-known Dalby organisations are celebrating after sharing $4000 in funding through Easternwell's community grants program. As part of its commitment to the communities it operates in, the mining services provider awards $40,000 biannually to groups seeking financial support to facilitate specific projects. In the latest round of grants, the Dalby South State School Special Education Program and Dalby Meals on Wheels received $2000 each. The school's Special Education Program provides educational support and therapeutic intervention for children with developmental delays or diagnosis of specific disabilities. Joel McCaskie, the head of the school's special education service, said the program allowed families in the Dalby region to send their children to a local school, while still ensuring access to support, services and a curriculum on par with metropolitan special schools. Mr McCaskie said the grant afforded the school the opportunity to develop the muchneeded program.
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"We provide educational programs, support and services to over 75 students and families, and the Easternwell funding has allowed us to further develop our resources and ensure children with physical impairment can effectively and comfortably participate in learning activities," he said. Since the program began in 2011, Easternwell has provided more than $90,000 in funding, a figure chief operations officer Darren Greer is very proud of. "By working with organisations like Dalby South State School Special Education Program, we can provide support to the community in areas where they have demonstrated a real need," Mr Greer said. "Easternwell funding will assist in ensuring they continue to have a strong presence in the community now and into the future."
Page26 SEE STORY
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QUEENSLAND BRANCHES • EMERALD • ROMA • CHINCHILLA • MACKAY • GLADSTONE • SUNSHINE COAST • GOLD COAST • BRISBANE
Airport open day
DOWN TO BUSINESS
EXECUTIVE GETS NEW HONOUR
SARTAIN AWARDED TOP MEDAL L
eading Queensland mining executive Charlie Sartain has been awarded the prestigious Queensland Resources Council (QRC) Medal for his services to the industry, and his support for education and training. The award was presented by the Premier of Queensland Campbell Newman before a crowd of 800 at the QRC's Annual Lunch in Brisbane in November. Mr Sartain (pictured right) started his career in 1983 with MIM Holdings Ltd as a mining engineer and rose to the rank of Chief Executive of Xstrata's global copper business. His illustrious career saw him rise through the MIM ranks in Mount Isa, serve as the general manager of both the Ernest Henry copper mine near Cloncurry and the Ravenswood gold
mine, and run a copper mine in Argentina. While Mr Sartain established Xstrata's copper global head office in Brisbane, with their extensive operations in North and South America, he for a time had to base himself in Santiago in Chile. He worked very effectively to build closer economic and social ties between Queensland and South America. Mr Sartain was elected to the Queensland Resources Council Board in 2004, serving for two years as QRC Vice President. He was a driving force behind the formation of the Queensland Minerals and Energy Academy, Australia's leading example of an industry-school partnership. He was also pivotal in saving an engineering stream vital to the resources sector at the University of Queensland and continues to promote resources
sector career paths through his membership of the Senate of the University of Queensland and as a Director and Chairman of UQ's Advisory Board of the Sustainable Minerals Institute. Mr Sartain left the Xstrata Group following the merger with Glencore in May after more than 30 years' continuous service with MIM and Xstrata. He has been a Director and former Chairman of the International Copper Association, and a Member of the Council on Australian Latin-American Relations. He is currently a Fellow of the Australasian Institute of Mining and Metallurgy; a Fellow of the Australian Academy of Technological Sciences and Engineering and a director on the Board of the Wesley Research Institute.
CHANGE AT HELM
NEW PRESIDENT IS ‘NEW HOPE’ A SHIFT AT THE TOP BRINGS NEW OPPORTUNITIES FOR QRC
T
he Queensland Resources Council has announced the election of New Hope Corporation Managing Director and Chief Executive Officer Mr Rob Neale as its President. Mr Neale (pictured) was elected to the position after serving as QRC Vice President since 2010 and as a QRC Director since 2009. He will serve the current term (November 2014) of Mr Stephen Dumble, formerly Asset President of BMA who recently accepted a new role within BHP Billiton. Mr Neale comes to the presidency of
Queensland's peak minerals and energy representative body with more than 40 years' experience in exploration and production across several continents and commodities including gold, base metals, synthetic fuels and coal. Recently elected Chairman of coalseam gas developer Westside Corporation, Mr Neale is also Chairman of the Australian Coal Association Research Program. Mr Neale's former QRC Vice President role has been accepted by new BMA Asset President Mr Lucas Dow, who will join Glencore Copper
Chief Operating Officer Steve de Kruijff and Origin Energy's Executive General Manager, Upstream Oil and Gas, Paul Zealand as QRC Vice Presidents. Chief Executive Michael Roche paid tribute to the contribution made by the retiring president, noting the organisation was fortunate in having a member of Mr Neale's standing and experience to assume the presidency. 'Stephen Dumble and Rob Neale are on the same page in calling out the major challenges confronting the Queensland resources sector,' he said.
BUILDING THE BASIN
BUILDING THE BASIN OPEN DAY GOES OFF WITH A BANG WELLCAMP AIRPORT OPENS DOORS TO THOUSANDS
T
he ambitious transport project being mooted as the solution to boosting the Surat Basin's agriculture and tourism sectors was swamped by almost 16,500 visitors when it held a public open day on November 24. Wellcamp Airport has been on the tip of everyone's tongue since the Wagner family announced it was dipping into its own pocket believed to be to the tune of more than $100 million - to build a privately-built, public airport in Toowoomba and the community jumped at the opportunity to get a firsthand look at the development. From the moment the gates opened, an unbroken chain of cars pushed onto the construction site, leading Wagners managing director Denis Wagner to hail the event as an overwhelming success. "Being such an iconic project, I think people will look back in years to come and say they actually saw the airport being built," he said. "It's great to see the public out here to show support." Wellcamp Airport will feature a 2.87-kilometre runway, capable of handling a Boeing 747. In addition, the facility will boast a state-ofthe-art business park with focus on aviation, logistics, transport, corporate and mining services. While much of the economic emphasis in the Surat Basin has been on the ever-increasing coal seam gas and mining industries, Mr Wagner said he genuinely believed his family's airport would open up the region to other sectors, including agricultural exports. "We see there is a great opportunity‌to be sending fresh produce, things like chilled beef (and) locally-grown produce, things like flowers, to the south-east Asian market," he explained. "There's a huge market there now being serviced by air freight (and) the expectation is that a lot of industries will open up, a lot we didn't think possible due to the lack of a decent airport." In total, 10 million tonnes of stone will be used in the construction of the airport and, in true Wagners style, the company highlighted the fact it was doing all its own quarrying on site by unleashing a spectacular blast of 500,000 tonnes of rock - the largest non-mining blast in the country's history - to cap off the open day.
AIRPORT AMBASSADOR: Netballer Laura Geitz stops for a photo on the runway after being named as the airport's ambassador.
BUILDING THE BASIN
1
1. WELLCAMP WORKS: Wellcamp Airport has progressed in leaps and bounds under general manager Phil Gregory. 2.. FIRST OF MANY: The first plane comes in to land at Wellcamp Airport. 3. PICTURE OF PROGRESS: This picture, taken on November 18, shows the progress of the Wellcamp Airport runway. 4. BUSINESS BOOMING: Wagners hosted an open day at Wellcamp Airport on November 24, which was capped off with a massive rock blast.
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5. FAMILY AFFAIR: The Wagner
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family pose for a photo after the first plane, piloted by John Wagner, touched down at Wellcamp Airport.
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BUILDING THE BASIN
THE INDUSTRY AT A GLANCE Basin helps engineering boom ENGINEERING-INTENSIVE industries in regions like the Surat Basin have the opportunity to turn Brisbane into a world-class engineering city, according to the University of Queensland's head of engineering. With the resources sector continuing to go from strength to strength in the Surat Basin, Professor Graham Schaffer, executive dean of UQ's engineering, architecture and information technology faculties, said he believed Brisbane - and the state - could become a global hub for specialist engineering services. "Engineering underpins the Queensland economy, with the resizing of the resources industry and associated increase in infrastructure driving demand for both engineering services and professional engineers," he said.
HEALTH GETS BOOST APLNG ANNOUNCES $1M INJECTION INTO RURAL HEALTH IN SURAT BASIN
R
ural health in the Surat Basin is set for a boost after Australia Pacific LNG announced $1 million in funding for a two-year research project through the Wesley Research Institute. The aim of the project is to support the health and wellbeing of people in the Surat Basin and Gladstone regions. APLNG chief executive officer Page Maxson said the project would take a comprehensive approach to assessing health impacts and seek to deliver
solutions quickly. "Gaining a better understanding of health issues in regional communities will allow Australia Pacific LNG and other interested parties to take positive action towards shaping private and public investment in health improvement activities," he said. "Helping industry, government and communities improve health and wellbeing in regional areas will deliver far-reaching and long-lasting benefits." The Wesley Research Institute's chief
executive officer and principal investigator for the research project, Professor Christian Gericke, said the project would consist of two phases. "The first phase will involve Wesley researchers conducting a comprehensive health needs assessment of the target population," he said. "From there, we can develop a set of actionable solutions to the health issues identified by the research."
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BUILDING THE BASIN
INDUSTRY AWARD
THE INDUSTRY AT A GLANCE
LEANNE WELDS A TOP CAREER IN MILES D
espite getting a late start in the construction industry, one Surat Basin welder is looking at her peers in the rear-vision mirror after taking out a prestigious industry award. After a varied career in tourism, retail and hospitality, Leighton Contractors employee Leanne Prestwidge did not pick up the tools until she was 38 but that did not stop her being named the winner of the 2013 Construction Skills Queensland Award for Contribution in Building and Construction Trades at the National Association of Women in Construction Crystal Vision Awards last month. Based in Miles, Leanne is one of very few female welders carving out a niche - and a name for herself - in the maledominated resources sector and quickly progressed through the ranks after obtaining a poly welding ticket and accepting a post-accreditation role as a trade assistant. Leanne said it was "nice to be recognised" by winning the award, adding the she believed it proved the fairer sex could undertake any gas or mining role they wanted. "It shows that having the right attitude, the right work ethic and the right approach is invaluable, and that people will notice," she said. "I am proof that women really can perform any role they put their mind to and I am hoping that my example, as demonstrated through the nomination, provides confidence to women that they can succeed in construction. When asked why she loved working in the industry, she named opportunity as one of her key motivators.
"The various opportunities available within the industry are exciting," she explained. "I was able to move from cleaner, to spotter, to trades assistant, to welder within two years." With her star on the rise, Leanne did not rest on her laurels for too long before getting back into the field and
said she hoped her win inspired others. "I am proud of what I have achieved," she explained."I believe (my win) will help promote how women can work alongside men in the field and gives me some backing as a mentor for women in and out of the industry in regards to how they can reach their full potential."
WELDING WONDER: Leanne Prestwidge shows off her silverware after cleaning up at the 2013 National Association of Women in Construction Crystal Vision Awards.
Academic calls for more power for neighbours A QUIRK in Queensland resources law means a neighbour can be stuck with all the problems of gas development without any of the benefit, according to a Brisbane law academic who wants to see change. There is currently no way for any property owner in Australia to formally lock the gate on gas exploration or development on their land. National laws dictate the state can give permission for companies to prospect, but University of Queensland's Dr Tina Hunter would like to see a fairer deal to those living next door to resource-rich properties. Property owners must negotiate in good faith with resources companies, but if they settle on a deal that involves the drilling of wells on a far side of their block, it could be the neighbour that suffers. "It's adjoining land, so it is not on your land, but it impacts on you; you can't negotiate a compensation agreement," Dr Hunter said. "It's something I'd like to see changed from my point of view. "There are a number of instances that I'm very aware of, in Queensland, where people have been affected." In other parts of the world, the community is compensated for the activities in the area and Dr Hunter said, while the property owner might not care if "30 or 40 trucks" were operating in the area at night, their neighbours could very well think differently.
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BUILDING THE BASIN
MILES MOVES FORWARD
KERWICKS BUILD FUTURE
Guests were all smiles at the opening of Wattle Park Estate in Miles in November. The development will feature 80 residential blocks when it is completed.
M
iles' latest development, Wattle Park Estate, officially opened its completed Stage 1 area to the public on November 22. The couple behind the development, Rachel and Dom Kerwick, hosted engineers, councillors, lawyers and local business owners at the function. The five-stage development is still a work in progress, though the second and
third stages are expected to be completed by the end of the year. Stage 1 contains 12 residential lots, which all sold for between $220,000 and $250,000. Houses are currently being constructed on these lots, which average around 1000 square metres in size. Stages two and three will add an extra thirty blocks to the estate, while stages
Rachel and Dom Kerwick celebrate the opening.
four and five will bring the total size of the estate to 80 blocks. The local family already runs a successful family business in Miles, Kerwick's Earthworks, and Mrs Kerwick said they saw a future of strong growth in the town. "We see that Miles has a positive future, for sure," she said. "There is at least another thirty years of
growth in the area. This project is about making land attractive for families. "These blocks are ideal for a house with a yard and a shed. That's what we'd like to see." Wattle Park Estate is located on the east side of Miles, just north of the Warrego Highway on the newly-formed Acacia Drive.
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MORE TSBE EVENT SUCCESS More than 250 people crowded Chinchilla RSL for another instalment of Toowoomba and Surat Basin Enterprises' highly successful networking and information events. The November Enterprise Evening featured guest speaker Ben Hughes, Local Content Advisor for Thiess, who discussed the $1.8 billion contract awarded to Thiess by QGC's Queensland Curtis LNG Project. The project involves the construction of 18 field compression stations and four central processing plants in the Surat Basin by October 2014. Thiess will undertake all civil, mechanical, piping, instrument and electrical work in constructing and pre-commissioning the facilities. The facilities are located near Dalby, Chinchilla, Miles and Wandoan and will process gas, which will then be transported through an underground pipeline network to Gladstone, where the gas will be liquefied.
1. Lauren Crampton and Philip Duncan from AMVL Migrations with Scott Templeman from CGI Consulting and Ann Houston from Integra Management Services.
2. Kristiaan Streefkerk and Sharon
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3. Darren Leversedge and Pietro Ellis from UON Power and Water. 4. David Hockings from HYTORC and Tim Magoffin and Peter Fenech from Haynes Group.
5.Anthony Chan from Engineering Training Australia and Collin Keeton from Ambush Security 6. Bill Blake and Gilda Clarke from McKays Solicitors.
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THIESS SHARES PLANS 7. Cameron Abrahams from Consult Resource Group, Dane Fewster from FBD Construction and Beau Lamond from Fencepac.
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8. Brett Smith, Jacob Walsh, Kristelle Townsend and Sarah Worthing from QGC.
9. Scott Fyfe and Adam Bradley from Rocla, Kate Nissen from Carmichael Builders and Nathan Shaffer from Rocla. 10. TSBE chair Shane Charles with Ben Hughes and Mark Keating from Thiess.
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2013 ROMA CUP
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ANY lingering doubts that the Surat Basin is regional Queensland's economic hub were quashed on November 15 when thousands of gas workers, long-time residents and once-a-year visitors turned out for the 2013 Roma Cup. Under a picture-perfect sky, the racegoers took in everything the coal seam gas hub of Roma had to offer as they witnessed Jack 'n' Me pip Troilus Fuse at the post to win the feature race of the meeting, the XXXX GoldDesiree Gill Memorial Roma Cup Open Handicap.
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1. Craig Spencer, Emma Christen, Ruth Golden, Bob Neven and Todd Spencer.
2. Monique Burgess, Evie Adler, Kate Tully and Boni Moore.
3. Patti Whyte with Greg and Melissa Caletti. 4. Sharon Pomerenke from Tara is presented with the FK Gardner and Sons Group Maiden Handicap trophy by FKG area manager Kevin Chambers after her horse Captain Spur won.
5. Wade and Ange Jackwitz enjoying their Cup day at the FKG tent.
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6. Brook Southwell and Rebecca Girle helped out with the Fashions on the Field at the Roma Cup.
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1.
The Queensland Resources Council State of the Sector Forum brought together industry leaders at Brisbane in November to discuss the Queensland minerals and energy sector's outlook (from left) Mick Crowe (G&S Engineering), Jeyakumar Janakaraj (Adani), Trevor Brown (Santos), John Taylor (moderator), Rob Neale (New Hope Group), Joe Potter (Areva Resources Australia) and Ian Davies (Senex Energy).
2 . New Hope Group Managing Director and QRC President Rob Neale flanked at the QRC Annual Lunch by Premier Campbell Newman and Natural Resources and Mines Minister Andrew Cripps. More than 800 people attended the lunch and associated industry forum.
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3. Queensland Premier
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Campbell Newman presents the 2013 QRC Medal to former Xstrata Copper global chief, Charlie Sartain.
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SURAT BASIN NEWS Daniel Blades has secured full-time employment after spending 12 weeks away from home while completing Arrow Energy’s Whanu Binal program.
S
T George father-of-three Daniel Blades admits being away from his family was tough but adds completing Arrow Energy's Whanu Binal program and securing a full-time job made the absence worthwhile. Whanu Binal prepares Aboriginal and Torres Strait Islander people for work in the resource sector and Mr Blades and 10 of his peers from the Surat Basin region graduated from the program on November 6. The 29-year-old stayed in Toowoomba to complete the 12-week program, which included accredited construction training, cultural
training and vocational work placement. Mr Blades said it was a major career stepping stone which helped him secure a full-time job as a labourer with construction company Silverstrand. "I am really thankful for the opportunity and all the help given to me," he said. "It is a big opportunity and great for the resume. "The trainers spoke in a manner you understood…they know where you are coming from." Arrow Energy chief executive officer Andrew Faulkner said the Whanu Binal
program delivered training programs in the company's areas of operation. "It is wonderful to see so many people participating in the Whanu Binal program and the job opportunities and prospects that have followed, as well as the benefits that flow on to the community," Mr Faulkner said. "Many of those who completed the Whanu Binal program have already achieved full-time work and should be congratulated for grasping this opportunity with both hands. "Arrow is committed to helping Indigenous Queenslanders along the pathway to long-term employment."
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