SURAT BASIN NEWS
18 DECEMBER 2013
$1.30 inc GST
INSIDE Page 6
We sit down with Ian Macfarlane
Page 24 Find out what the industry is worth to the Surat Basin
Page 25 We bring you the Basin’s best jobs
Murphy Pipe and Civil crew members work on a major QGC project on the Western Downs. Photo courtesy of Murphy Pipe and Civil
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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 THIS month, we sat down with Federal Minister for Industry, and Member for Groom, Ian Macfarlane. Mr Macfarlane stormed back into the ministry this year when the Coalition won the Federal Election in a landslide victory. It is not a position he is unfamiliar with, having also served as a senior minister in the Howard Government. Mr Macfarlane has already come under fire over questions of commitment around funding the Toowoomba Bypass - a vital infrastructure upgrade not only for the Toowoomba region, but also the Surat Basin. The bypass would certainly provide an economic boost and, when coupled with the new Wellcamp Airport, it would help this region to really fulfil its potential as an economic powerhouse in Queensland. Mr Macfarlane says he is confident construction will start on the massive project next year - so let’s hope he’s right. The community, industry, and the media, will be holding him to his word.
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 Wilkie Creek mine to close Page 3 Major project updates Page 4-11 Interview with Macfarlane Page 6 Arrow Energy news Page 12
OPINIONS
BUILDING THE BASIN Year in review Page 26, 27 Yancoal expansion Page 28 Creek Cafe upgrades Page 30 Bill fails to attract interest Page 31
Pages 14 - 17
DOWN TO BUSINESS FKG office opening Page 18 Huge project is approved Page 19 Business profiles Page 22, 23 Share prices Page 22, 23 Industry’s economic impact Page 24 Jobs page Page 25
PLACES & FACES TSBE Enterprise night Page 32, 33 Santa is all for ‘safety’ Page 34 Leightons’ band rocks out Page 35 35th anniversary Page 36
12 Mayne Street Chinchilla Q4413 PO Box 138 Chinchilla Qld 4413
PUBLISHED The Surat Basin News is published 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
WORKERS FACE BLEAK CHRISTMAS
WILKIE CK MINE SHUTDOWN
A
bout 200 workers will lose their jobs when Peabody Energy closes its Wilkie Creek coal mine at the end of the month. The decision comes after 70 workers lost their jobs in September and the company said the decision to cease operations at the embattled Western Downs facility was the result of a "strategic review". In a brief statement, the company's Australian president, Charles Meintjes, thanked workers at the mine but did not offer an in-depth explanation for the move. "We have completed our strategic review of the Wilkie Creek mine and we have begun the process of winding down
operations," he said. "We thank the employees at Wilkie Creek for their hard work and dedication. "We are committed to minimizing the impact of the closure on our employees, their families and the local community, and we intend to work with employees regarding redeployment to other operations where possible." It is believed workers will be offered voluntary redundancies and redeployment within the company's other operations in the first instance. One worker, who spoke on the condition of anonymity, said they were "absolutely gutted" by the news. "I don't know how I'm meant to be
feeling at the moment," they said. Western Downs Regional Council Mayor Ray Brown said the mine's closure was a cruel blow for workers in the lead-up to the festive season. "The closure of the Wilkie Creek mine will certainly have an impact on the communities of Dalby and Chinchilla," Councillor Brown said. "My understanding is a lot of them live in Dalby and its surrounds, and I know of at least eight families that live in Chinchilla." Member for Maranoa Bruce Scott echoed Cr Brown's sentiment and pointed the finger of blame at "toxic" taxes. "Peabody bucked the fly-in, fly-out
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trend and employed about 150 locals at its Wilkie Creek operation, so this is devastating news," he said in a statement. Cr Brown said the council was working with other energy companies and Western Downs business in an attempt to find as many of the axed workers as possible new employment in the region. "They've got their families in our towns and I want to keep them here," he said. "My endeavour is to try and get them a little bit of satisfaction before Christmas if we can. "It's not the best Christmas present you can get."
IN THE NEWS
IN THE
NEWS SANTOS Projects update
Gas fields update S
everal significant milestones have been achieved across Santos GLNG's hub sites under construction in Roma and two hours north in the Fairview
field. Three hubs are being built to compress extracted gas so it can be sent along the Project's 420-kilometre pipeline to Gladstone. Santos vice-president Queensland Trevor Brown said a team of 250 personnel at Fairview 05, the smaller of two hubs located in the area, was celebrating the handover of some major water infrastructure. "I am very pleased to report that our associated water amendment facility is ready for commissioning after our contractors successfully completed all construction activities," Mr Brown said. "Once operational, water will be extracted from nearby gas wells and processed at the four-mega-litre-per-day facility before being
used for irrigation. "It took 200,000 man-hours onsite to reach this milestone, which was achieved with no safety incidents." In a major boost for the company, Mr Brown said the entire team responsible for Santos GLNG's upstream facilities had just clocked 10 million hours of work without sustaining an injury requiring time off. "We all know workplace injury has the potential to seriously affect a person's health and quality of life, as well as impact their family," he said. "So I commend our employees and contractors for working together to deliver a safe workplace despite the safety challenges associated with earth works, construction and installation activities."
IN THE NEWS
SANTOS Projects update
Curtis Island
Pipeline update
P
ipeline start-up and operation is just around the corner now that the bulk of construction for Santos GLNG's 420-kilometre pipeline is either finished or nearing completion. Pre-commissioning is underway as final checks are made to ensure the pipeline operates as designed, and the task involves cleaning and measuring the pipe, filling it with water and pressurising it to conduct hydro tests. Pipeline project manager Greg Jones
said pipeline inspection gadgets - PIGS - had already made 42 trips into the pipeline to give it a good examination. "So far, we have cleaned and gauged almost 200km of our 420km pipeline," he explained. "During pre-commissioning, we will send more than 400 megalitres of water into the pipe to confirm it can bear the pressure and will not leak. "Testing ensures any irregularities can be detected early so we don't interfere with the land rehabilitation taking place
on the surface." From 2014, other pre-commissioning activities will begin to occur, from powering the pipe to test its instrument and control systems through to introducing a temporary gas supply to test valves. As of late last month, all pipe segments were laid along the right of way and automatic welding was completed, with some manual welds remaining.
T
he external and internal fit-out continues on both LNG tanks on Curtis Island. The main roof platform has been erected for LNG Tank B and insulation installed in LNG Tank A. Also on site, the roofs are now in position for two fire water tanks that are being constructed. More than 1500km of electrical and instrumentation cable is being pulled throughout the plant to connect major infrastructure.
IN THE NEWS
INDUSTRY
What else the Federal Industry Minister said
CO-EXISTENCE IS THE KEY
ABOUT THE SECOND TOOWOOMBA RANGE CROSSING "Watch t his s pace…it's r ock s olid, absolutely r ock s olid." "We're j ust w orking t hrough a f ew issues t o t ake i t t o t he n ext s tep." "There's a bsolutely n o d oubt i n m y mind t hat w e'll s ee t he r ange c rossing start n ext y ear." "I c an u nderstand p eople's scepticism ( and) I t hink a l ot o f t hat scepticism i s b eing d riven b y sceptical m edia." ABOUT "MUST-TARGET" RESOURCES FOR THE SURAT BASIN IN THE LONG-TERM "I t hink, i n t ime, t he r esource t hat i s coming b ack t o t he r egion t hat w e need t o t ake h old o f i s t he l evel o f skills a nd c apability o f t he p eople moving b ack i nto t he r egion." ABOUT HIS 2014 SURAT BASIN OUTLOOK "I t hink t he g rowth i s p redominantly i n the C SG a rea." "I t hink c oal i s g oing t o g o t hrough a pretty s tiff t ime; t hat's p art o f w here the c oal i ndustry i s g enerally." "I t hink w e're g oing t o s ee a f air b it o f consolidation i n r egard t o t he C SG industry." ABOU T T H E C L A I M S T H A T H E WANTS EVERY GAS DEPOSIT IN AUSTRALIA TAPPED "Very m uch s o, b ut . ..on t he p roviso that w e're n ot d estroying t he productivity o f t he l and o r t he environment.If y ou've g ot a n a sset, you s hould b e u sing i t."
THE MINISTER FOR INDUSTRY SITS DOWN WITH SURAT BASIN NEWS TO TALK ABOUT 2014, FARMING AND INDUSTRY
F
ederal Industry Minister Ian Macfarlane says the Surat Basin's rich resources afford primary producers an income "safety net" that should be embraced. During an interview with Surat Basin News, Mr Macfarlane described agriculture and mining as "a good pairing" and said he believed true co-existence between the two sectors was possible. Co-existence between energy companies and farmers has been a long-debated issue in the Surat Basin, especially on or around prime agricultural land, but the topic was reignited with the release of the Darling Downs Regional Plan earlier in October. Mr Macfarlane said he viewed coexistence as a way for primary producers to improve their farming practices. "What I'd like to see, and what we are seeing, is that the energy sector, particularly CSG, offers an opportunity for farmers to put a safety net in their income…and are able to sustain some of the seasonal fluctuations we've become
used to," he said. "I see instances where farmers are ...getting off-farm income through coexistence….and able to invest more in more sophisticated farming practices." Many anti-mining advocates have slammed the Federal Member for Groom for his support of the energy sector but the political veteran was unapologetic when he told Surat Basin News he believed "any resource that could be developed without affecting the water table" and environment "should be utilised". "Resources have no value in the ground," he said. "They don't add to wages and development. "The reality is that if you're sitting on a property at Miles or wherever, and you're getting $100,000 a year onto your property (through gas wells with) no risk, no capital, no labour, I'd be happy to be in that position myself. "I think every farmer out there would prefer to just be a farmer but, in reality,
it's brought a change. "Life is all about change; I think the farmers who have grabbed the opportunity with both hands have done well out of it."
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
ADVERTSING FEATURE
IN THE NEWS
OSTWALD BROS OPPORTUNITIES IN THE BASIN
NEW CAMP ESTABLISHED IN THE HEART OF SURAT BASIN
The Eastwood, located at Miles in regional Queensland, is set to open in January offering motel-style accommodation for industry and the general public. This permanent facility houses 200, air conditioned, serviced king single ensuited rooms with in-room technology. Each room is equipped with flat screen TVs, Foxtel, internet and WiFi as well as tea/coffee making facilities, refrigerator, desk and telephone. Indoor and outdoor recreation is catered for with a recreational room, gymnasium, tennis court, swimming pool and spa. A buffet restaurant offers freshly prepared meals for lunch and dinner and a café is open for coffee and snacks. Catering is currently available for a wide range of events including conferences, training sessions, and networking functions. In stage two of the development, The Eastwood will offer its own function rooms. The Eastwood accommodates people with disabilities; additional services include laundry facilities, room service, key card access and secure off-street parking. Ostwald Facilities and Accommodation handles all bookings on behalf of The Eastwood Joint Venture. For bookings or enquiries call 1800 eastwood (1800 327 896).
CAREERS ON OFFER
If you're looking for a fresh start in 2014 or thinking a change might bring you closer to a more fulfilling career, then here is an opportunity that could move you in the right direction. Ostwald Facilities and Accommodation (OFA) is expanding its services in regional Queensland and has a wide range of jobs available for the coming year. As one of the Ostwald Bros Group's five business units, OFA specialises in facilities management and accommodation offering cleaning, security, gardening, maintenance, catering, laundry and pest control services.
With rapid expansion over the past year, OFA now operates 10 accommodation facilities throughout regional Queensland and is seeking to recruit staff in various positions from camp managers to chefs, administrators and service attendants. OFA has successfully managed camp operations and site facilities in the Surat Basin for the past five years and maintains a comfortable and supportive environment for workers living away from home. The facilities are designed to offer all the comforts of home with a range of recreational facilities and healthy meals prepared daily from fresh produce.
OFA provides fixed and temporary facilities for camps as well as external clients and delivers long term and short term solutions to meet the needs of its growing client base. The business forms part of the Ostwald Bros Group - a family owned group of companies offering fully integrated services to the resources and infrastructure sectors. For enquiries about location and availability contact 13OFAM (136 326) or email bookofa@ostwaldbros.com.au For more information on career opportunities visit www.ostwaldbros.com.au/careers
Ostwald Bros is an established contractor servicing Australia’s oil and gas, mining and infrastructure sectors. Our diverse regional capabilities include civil construction, transport, construction materials, facilities and accommodation, water management, mechanical maintenance and farming services. Our long history, diversity of projects and bright future, provides a unique opportunity to build your career with a fast-growing company. Make a fresh start in 2014 and enjoy a more rewarding career with Ostwald Bros. Ostwald Facilities and Accommodation (OFA) is expanding services in regional Queensland. As a result, we have a wide range of jobs available for the coming year. As one of the Ostwald Bros Group’s five business units, OFA specialises in facilities management and accommodation offering cleaning, security, gardening, maintenance, catering, laundry and pest control services. We have opportunities for:
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IN THE NEWS
QGC
Projects update
Q
ueensland Curtis LNG will be the world's first project to turn coal seam gas into liquefied natural gas. The project, which has been under construction since 2010, is now more than 70 percent complete and remains on schedule for the first gas to reach Curtis Island, near Gladstone, around the end of the year, with the first LNG slated for production in 2014. T H I S M A J O R , I N T E G R AT E D P R O J E C T I N V O LV E S : • Expansion of QGC's natural gas production operations in the Surat Basin • Construction of a 540-kilometre
long, one-metre diameter pipeline network to Gladstone • Building a natural gas liquefaction plant on Curtis Island where the gas will be converted to LNG for export.
• All 80 modular components for the trains have been built, transported to Curtis Island and placed on their foundations.
AS CONSTRUCTION A DVA N C E S , Q G C I S BEGINNING TO COMMISSION KEY C O M P O N E N T S I N C LU D I N G :
• The entire pipeline network has been buried and testing for strength and integrity has been completed ahead of final commissioning before the end of the year.
• On Curtis Island, construction of the liquefaction plant - comprising two production units, known as trains - is well under way.
As the year draws to a close, QGC managing director Derek Fisher said construction of the pipeline represented a world-class engineering
• Both LNG storage tank roofs were raised in the first half of 2013.
feat. "This is a tremendous achievement, meaning we remain on track to start commissioning the world's first plant to convert natural gas from coal seams into liquefied natural gas next year,'' he said. "In the process, we have set records for Australian pipeline construction, including the longest twin pipe-pull in Australia, when The Narrows channel at Curtis Island was crossed earlier this year.'' Major infrastructure in the gas fields is at three hubs for QCG: the Ruby Jo development block near Dalby, Windibri and Kenya near Chinchilla and Woleebee Creek, near Wandoan.
IN THE NEWS
QGC
Projects update
G
as flowed from Kenya Central Processing Plant into the pipeline network in August in readiness for commissioning. Three of six planned field compression stations and the one central processing plant in the Ruby Jo block are expected to begin commissioning soon. Meanwhile, 225 new wells were drilled
between July and September, taking the total at the end of the third quarter to more than 1,700 of the 2,000 required in 2014. In October, Queensland Deputy Premier Jeff Seeney inaugurated QGC's Kenya Water Treatment Plant. The plant, located south-west of Chinchilla, is part of investment by
QGC of more than $1 billion in water infrastructure and has the capacity to treat 92 megalitres of water from coal seams a day that generally would otherwise not be available for crops or drinking because it is too salty. It is the first of two such plants to service the QCLNG Project, with the second at Woleebee Creek under
construction and due for commissioning in late 2014. QGC continues its extensive exploration and appraisal program, with production testing of two pilot wells drilled into coal seams in the Bowen Basin commencing and a seismic survey of deep sandstone in the Bowen Basin having started in August.
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IN THE NEWS
ORIGIN
Projects update APLNG project builds up for a big year in 2014 T hrough Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing one of Australia's largest coal seam gas to liquefied natural gas projects, based on the country's largest 2P CSG reserves base. At the end of the September 2013 quarter, the upstream component of the Australia Pacific LNG Project was approximately 50 percent complete, with the downstream component being about 54% complete. Origin's chief executive officer LNG, David Baldwin, said 2013 had been a strong year for the company. "We continue to make significant progress in delivery of Australia Pacific LNG, with overall work being progressed at the rate of three to four
percent per month," he said. "The delivery of Australia Pacific LNG is one of Origin's key priorities and the project remains on track for first LNG by mid-2015." As of June, $12.33 billion had been spent on goods and services across the entire project, the majority of which has occurred in Australia. Currently, the project is at the peak of construction and employing approximately 10,000 people, with the operation providing ongoing employment for approximately 1000 people when complete. Of the $10.9b contracted to Australian companies supplying to and working for the Australia Pacific LNG Project at September 30, $1.02b was spent in the Surat Basin region.
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IN THE NEWS
ORIGIN
New partnerships AUSTRALIA PACIFIC LNG AND SANTOS GLNG IN OCTOBER, Australia Pacific LNG and Santos GLNG signed gas swap and infrastructure connection agreements that provide flexibility and allow both proponents to realise capital and operational efficiencies. The new agreements make gas transportation more efficient between the two projects' Surat Basin gas fields and reduce the need for additional pipeline infrastructure. Under the terms of the agreement, two pipeline connection points will be built between Santos GLNG and Australia Pacific LNG infrastructure and a number of gas swap agreements undertaken to minimise gas movements and operational costs. The agreements would pave the way for more efficient development and transport of gas resources, while reducing the footprint of the industry by avoiding the need to build additional infrastructure such as pipelines.
ORIGIN & QGC IN NOVEMBER, Origin announced the signing of a conditional gas sales agreement with QGC, providing the former with an additional pathway to monetise its gas portfolio. Under the terms of the agreement, Origin will supply QGC with up to a total of 30 petajoules of gas at Wallumbilla in calendar years 2014 and 2015 at oil-linked pricing. The transaction retains Origin's fuel flexibility with an option to call back certain volumes of gas into its portfolio during periods of high east coast gas or electricity market demand.
2013 PROGRESS REPORT UPSTREAM
• There were 105 development wells drilled in the September quarter with a total of 448 Phase 1 wells drilled to date. • Drilling progress is continuing in line with plan and lease construction is ramping up. • For the quarter, there were 91 diameter-kilometres of gathering lines installed, bringing the cumulative total to 252 diameterkilometres, equivalent to 427 wells. • 275km of the main pipeline has been installed - including 132km during the quarter - and it is now 84% complete. • The first wells were brought online at Condabri Central during August, with gas flowing into the gathering network and flared, and produced water flowing into ponds. DOWNSTREAM
• The seventh barge of modules was delivered to Curtis Island during the September quarter and the eighth and ninth barges were en route at the end of September. • A number of key equipment packages were delivered to Curtis Island, including the first batch of pre-fabricated generation substations, the Train 2 carbon dioxide absorber and the first shipment of Train 2 refrigeration compressors. • Other construction activities during the September quarter included completed setting of Train 1 compressors, commencement of concrete pouring of the Train 2 tabletops and completed pile-driving for the loading platform, trestle and berthing dolphins of the LNG jetty.
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IN THE NEWS
2013 ENDS ON HIGH FOR ARROW
THE year has ended on a high for Arrow Energy following the Federal Government's approval last week of its proposed liquefied natural gas plant on Curtis Island. The approval is a further boost for the company after the plant gained the
Queensland Government's tick in September and it forms one of five developments under assessment or previously approved that comprise the Arrow CSG-LNG. The other four developments are: • Surat Gas Project - currently under
Federal Government assessment • Arrow Surat Pipeline - approved in 2009 • Bowen Gas Project - preparing supplementary report to the EIS • Arrow Bowen Pipeline - State Government approval granted; currently under Federal Government assessment
The much-hyped Surat Gas Project covers about 8600 square kilometres, extending in an arc from Wandoan through Dalby in the east, to near Goondiwindi in the south, including areas around Chinchilla, Miles, Kogan, Cecil Plains and Millmerran.
2013 SURAT BASIN COMMUNITY HIGHLIGHTS FOR ARROW ENERGY FEBRUARY Announced more than $100,000 in funding to help Aboriginal and Torres Strait Islander students to stay at high school through the Queensland Aboriginal and Torres Strait Islander Foundation. September Announced 10 agricultural scholarships for Dalby State High School students in 2014. NOVEMBER Extended partnership with the Condamine Alliance to increase native fish stocks in the Condamine River. Arrow CEO Andrew Faulkner said the contribution would go a long way towards helping the company reach its ultimate goal of restoring native fish populations to 60 per cent of pre-European settlement. They are currently at 10 per cent. Mr Faulkner said the partnership was a
demonstration of Arrow's sustainable development policy, which committed the company to protecting natural habitats, landscape functions and biodiversity. "Today's partnership extension is also delivering on our environmental impact statement commitments to help protect native fish species in the areas where we work," Mr Faulkner said. "I am pleased we are able to keep supporting an already innovative and successful program that monitors the populations of exotic fish in Murray Cod habitat, particularly in streams where Arrow operates." The Arrow-Condamine Alliance partnership extension was launched at a ceremony on the banks of Myall Creek, Dalby.
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Natural gas from coal seams is keeping the lights on in hundreds of thousands of Queensland homes. About 20% of Queensland’s domestic gas supply comes from Arrow Energy alone. For more than a decade, we’ve used most of this gas to generate electricity. We own one of Queensland’s largest power stations, Braemar 2 near Dalby, and we have interests in two others, giving us enough generation capacity to power 800,000 homes. With five operating gas fields in South East and Central Queensland, chances are we may be supplying the natural gas that powers your Queensland home.
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OPINIONS
Chief Executive Queensland Resources Council
COMMENT
Michael Roche
COAL MINE CLOSURE SIGN OF TIMES
T
he planned closure of the Wilkie Creek thermal coal mine near Dalby is another disappointing turn in the fortunes of the export coal industry. The announcement is a sad blow for the region but also indicative of the challenging outlook for the thermal coal industry in particular. It's no secret that a number of mines in Queensland and New South Wales are walking a financial tightrope as a result of subdued global demand, inherently high production costs and a stubbornly high exchange rate. At some mines operations are continuing only because it is more expensive to walk away from take or pay contracts for rail and port services. Cost cutting is the only the mechanism available to coal companies to ride out the downturn that we estimate has cost more than 8000 positions in Queensland since mid-2012. Abbot Point weight At the time of writing, Federal Environment Minister Greg Hunt was approving a dredging proposal to support expansion of the Abbot Point coal terminal north of Bowen. At other times, one would expect a 'by the book' call on the environmental implications of a construction project adjacent to the Great Barrier Reef. However, this project and the determination of its future has the weight
of global environmental activists bearing down on Queensland and the township of Bowen. The debate over the future of the Great Barrier Reef is divided into two camps those who want to see the reef protected and those who want to see an end to exports of coal and gas from Queensland. So, a quick rundown of the facts. The Great Barrier Reef (GBR) occupies 348,000 square kilometres - bigger than the United Kingdom, Holland and Switzerland combined - and runs parallel with the eastern seaboard of Queensland for 2,300 kilometres. Eleven commercial ports have operated within or adjacent to the GBR Marine Park since declaration (1975) and subsequent World Heritage listing (1981). As well as servicing a population of one million people, coastal shipping is essential for diversified export industries including minerals and energy, agriculture, tourism and fishing. In 2011-12, ships moving through the GBR Marine Park carried $AU40 billion worth of agricultural, mineral and energy exports, primarily to Asia. GBR coastal zone ports are pivotal to supporting Queensland's economy. Port and shipping management Australian governments have heeded the views of the World Heritage Committee in respect of GBR management. Under a draft strategy (October 2013), the
Queensland Government has proposed restricting future development to Priority Port Development Areas (PPDAs) at five long-established major trading ports. Capital dredging for the development of additional deepwater port facilities outside the five PPDAs will be prohibited by law until 2024. The federal government has foreshadowed introduction of cumulative environmental impact assessment processes to accompany any development with the potential to impact the GBR Marine Park. A cumulative impact assessment was submitted voluntarily by the proponents of the Abbot Point Coal Terminal expansion. In the meantime, governments are addressing two immediate and State Partymanageable threats to reef health - water quality (land run-off) and resulting contributions to crown-of-thorns starfish outbreaks. Capital dredging of existing GBR ports is required for safe navigation, including new or enlarged shipping channels, berth areas, swing basins and marinas. Maintenance dredging is conducted routinely to maintain port services. Neither form of dredging occurs on or near the GBR, which is navigated via deep, wide and naturally occurring shipping channels. Dredging is confined to inshore port areas and excludes sensitive marine environments (e.g. seagrass); is subject to the recognised London (dredging) Protocol, state and national legislation, and
regulated by the Great Barrier Reef Marine Park Authority. Port dredging has never been identified as a major threat to the health of the GBR. Australian shipping management innovation is recognised by the International Maritime Organisation's adoption of its mandatory GBR ship reporting system. Covering the length of the GBR, the REEFVTS shipping surveillance centre runs 24/7, supported by automated position reporting, automatic ship identification and other advanced support tools. Compulsory marine pilot areas apply in sections of the reef such as the inner route from Cairns to Cape York. Despite a substantial increase in ship movements since 1996, groundings have reduced from one per year to just a single incident in the 10 years since its introduction. Seaborne trade will continue to underpin Queensland and Australia's prosperity in the 'Asian Century'. At the upper end of government forecasts, ship calls at GBR ports could increase from a current 4600 vessels a year to around 6000 by 2020 subject to an increasingly uncertain global economic outlook. Half of these ships would carry exports of coal and gas. The remainder includes ships carrying passengers, sugar, beef, processed minerals and vessels bringing in essential bulk imports such as oil to Queensland communities along 80 percent of the state's eastern seaboard.
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OPINIONS
ROYALTIES TO REGIONS FOR SURAT BASIN COUNCILS COMMENT Campbell Newman Premier of Queensland
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estern Downs and Maranoa councils will share almost $20 million in funding from the Newman Government's Royalties for the Regions program. Maranoa Regional Council will receive $12.4 million for three projects while Western Downs Regional Council will receive $6.95 million for seven different projects. Through Royalties for the Regions, the Queensland Government is delivering better infrastructure and services to communities that support resource projects - reinvesting a share of royalties to help build new and improved community, road and floodplain security infrastructure. The biggest single funding allocation of $7 million is for the Injune-Taroom Road upgrade and will help provide almost 25 kilometres of sealed roadway, improving safety for all road users. Projects receiving Royalties for the Regions funding in Maranoa are: • $7 million for the $23.2 million InjuneTaroom Road upgrade • $5 million for the $27.9 million Fairview Road upgrade
• $400,000 for the $600,000 Roma Sewerage Treat Plant to increase capacity for current and future demand Projects receiving Royalties for the Regions funding in Western Downs are: • $1.45 million for the $2.5 million Miles Waste and Recycling Centre (transfer station) • $1.31 million for the $2.5 million Old Cameby Road upgrade • $1.25 million for the $2.5 million DuckloGulera Road upgrade • $1.2 million for the $2 million Avenue Road rehabilitation • $910,000 for the $1.85 million Brownlies Road upgrade • $470,000 for the $700,000 Condamine Waste and Recycling Centre (transfer station) • $360,000 for the $750,000 Upper Humbug Road upgrade Both councils will now have to submit a detailed business case for each project to have the funding confirmed by the end of the year, and are invited to apply for further funding as part of Round Three of the initiative which is now open. Landholders along the proposed rail
corridor from the Wandoan coal mine to Banana are in line for a one-off payment of up to $10,000 following uncertainty surrounding the project's future. The ex-gratia payments follow an agreement between the State Government and the Surat Basin Rail Joint Venture to terminate an arrangement to develop a 214 kilometre rail line from the Surat Basin to the Port of Gladstone. The Queensland Government still supports private development of a rail network to facilitate large scale coal mining in the Surat Basin and looks forward to working with all Surat Basin mining and infrastructure proponents in the development of other rail projects. In the meantime, these payments will serve as recognition of the inconvenience that has affected people in the region for the past 7 years and we thank landholders for their patience A working draft of The Queensland Plan was released just over a week ago, detailing Queenslanders' vision for the next 30 years of our state. One of the key themes outlined in the draft is the notion of regionalisation; that
Queenslanders want half of our population living outside South East Queensland by 2044. That means a greater role for our major regional centres, better infrastructure and roads, schools, hospitals and community facilities. Queenslanders also want 100 per cent of children having basic literacy and numeracy when they leave primary school and the lowest incidence of preventable diseases in Australia. A final version of The Queensland Plan is expected to be released by mid-2014, which will then be enshrined in legislation and used to inform all Government policy. The working draft is on the website www.qld.gov.au/queenslandplan and will be available for review between 8 December 2013 and 7 March 2014. I'd like to wish everyone in the Surat Basin all the best for a safe and happy Christmas period. I assure you that the energy and enthusiasm with which my Government has approached our first two years in office will not flag, and that we'll be back in January to keep making Queensland the best place possible to work, live, and raise a family.
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OPINIONS
HOT, DRY CHRISTMAS ON THE CARDS
T
Concerned resident Mark Edwards with Federal Member for Maranoa Bruce Scott.
SCOTT WANTS ACTION ON SEWERAGE COMMENT Bruce Scott MP Federal Member for Maranoa
T
he rapid expansion of coal seam gas and the mining sectors in Queensland have fuelled rapid population growth and opportunities; however it has also presented many unique challenges across the state. One such challenge is how companies deal with workcamp effluent without adding pressure to town infrastructure and is in line with community expectations. As your Federal LNP Member for Maranoa, I am your strong voice and I was appalled to learn an open sewerage pond was to be constructed – without community consultation – about 20km north of Roma. The area has been settled as ruralresidential with 88 residences already established in a 10km radius of the open effluent pond. There is a concern the land will be significantly devalued as a result of this proposed development. Human sewage storage for the purpose of evaporation – like the proposed site near Roma – is not what I consider best practice and is an archaic method of waste disposal. It was against this backdrop that I called a community meeting at my Roma office on November 27. About 60 residents attended the meeting and, judging by the community’s adverse reaction, an open effluent pond near town is not in line with community expectations and an action
group was formed to fight this proposal. The Federal Health Department notes diseases can be caused by germs from sewage. Diseases can be contracted by direct contact with waste or indirectly by vectors like mosquitoes, cockroaches, flies and birds that have had contact with a contaminated water source. I am also concerned the Maranoa’s agricultural “clean and green” reputation could be tarnished by this development. This is a food producing region where many producers market themselves as “organic” and I fear this sewerage development will have a detrimental effect on agriculture. Energy Skills Queensland last month announced that Queensland’s booming CSG and LNG industry would create twice as many jobs as previously anticipated – with about 15,000 people now expected to be employed in the industry at its peak in 2024. I recently received advice from the Queensland Minister for Environment and Heritage Protection that Roma’s sewerage treatment plant was receiving 500,000 litres of effluent per day from the mining camps. This figure was just at the Roma STP so image the future volume when mining hits its projected peak. This issue must be addressed now, in line with best practice models, otherwise any mining region risks becoming pockmarked with contaminated sites. I am prepared to work with the coal seam gas and mining companies, as well as state and local governments, to find a solution to this challenge, but it must be in line with community expectations and should not add extra pressure to the region’s existing infrastructure.
raditionally the Festive Season is a time when our thoughts turn to family and home, celebrations with friends and fellow workers, holidays and the tradition of giving and receiving gifts. I trust that you will be able to share the spirit of Christmas with those around you. Unfortunately the season has been disappointing for many this year when compared with previous years. Some wide spread rain or some more summer storms would be well received in many areas over the Christmas New Year period. As people cope with the dry season there is still a lot happening around the Electorate. Cunnamulla and Mitchell have opened new childcare services. Condamine celebrated 150 years of schooling. The Mitchell Bridge is finished and open to traffic. The Roma Levy bank is proceeding at a rapid rate. The Warrego River at Charleville can now be kept clean of undergrowth. Tara has additional medical and dental services. Work is progressing on the flood mitigation options for Chinchilla. Morven has revitalised primary health services. Road works are either finished or underway in many areas and now some roads have been selected to have the speed limit reviewed. The Royalties to the Region program is calling for the third round of potential projects. The Patient Travel Subsidy Scheme has been doubled for accommodation and mileage subsidy. More teacher aide hours have been delivered at Injune, Surat, Thargomindah, and Yuleba State Schools. The sustainability declarations for property owners wishing to sell homes have been abolished. Schools are now permitted to use local contractors for maintenance work. Local
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COMMENT Howard Hobbs MP Member for Warrego
Government legislation has been overhauled to put Local Councillors back in control of their councils. Sporting Clubs across the Electorate who applied for help have received funds to recover from flood damage. The penalties for assault on police have increased. A much needed long awaited review into the Rural Fire Services, and a completed report on the land tenure in Queensland. There is a lot happening locally in communities and the report card is growing. There is much more work to be done and I look forward to working with anyone who should seek my assistance or involvement. I ask that if you are travelling that you take special care on the roads during this extra busy time and what has been shaping up to be a hot dry Christmas. I will be continuing my monthly funding and information updates and anyone is welcome to receive these updates on email. I have also published the 2014 Scholarships Guide for those leaving school and seeking the next step in their education at university. Additional copies are available from my Electorate Offices. As we all look forward to entering 2014 and celebrating the festive season, with family and friends, I hope that many people will have time to reflect and relax with those around them. I wish all constituents of the Warrego Electorate a safe Christmas and a Happy New Year.
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OPINIONS
MARANOA PROJECTS
QUEENSLAND PLAN COULD BE KEY TO A BRIGHTER FUTURE COMMENT Cr Robert Loughnan Mayor of Maranoa Regional Council
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ell what a remarkable year 2013 has been. While I know your readership is drawn from a far larger area than the Maranoa, I will be a little self indulgent and say I cannot recall a busier and more rewarding calendar year. It's often said that people don't actually have relationships with councils, governments, industries or even individual companies; however relationships are interpersonal by definition and I have thoroughly enjoyed those relationships in 2013. The major LNG projects of course continue to have a massive impact across the Maranoa. It is impossible to ignore the traffic, the water and waste trucks, the abundance of workers moving through the Roma Airport and the annoying reversing beepers that continue to irritate our shoppers. Nobody though can deny the industry's influence or the great opportunities it has created. There are certainly plenty of good news stories and photo opportunities around for mayors and councillors as we see the soft infrastructure, sporting clubs and social events funded and sponsored by the major players and contractors. The opportunities are something we simply never had twenty years ago and we are living in an economic oasis, which we must recognise is not infinite. Rest assured though, behind the scenes are some very intense discussions and negotiations, particularly relating to the bigger projects and
Environmental Impact Statement obligations, which thankfully have not yet resulted in bloodshed. I won't select a single low point - it is Christmas after all. As for our agricultural sector, the Maranoa continues to punch above its weight. The severe drought has had a massive effect on our agricultural sector with some respite in the last few weeks. The effect on the health and welfare of many of our farmers and graziers and their families though has been profound. I thank members of our regional drought committee and the responsible officers in Toowoomba and Kingaroy for their progressive responsiveness throughout this event and I have passed on my sincere thanks to Agriculture Minister John McVeigh. The third major highlight for the year, again with outcomes at both ends of the scale, is the work we do with our state and federal governments. While I state for the record I am an LNP member, I have to say I am thoroughly enjoying almost every aspect of dealing with what I consider to be the best State Government I have ever worked with. I will allow our highly effective local member to speak for himself in his column; however I have never struck a single time in history when so many ministers and senior players in government are this motivated to listen to our problems and help us with the solutions. The progress on flood infrastructure in Roma, Mitchell and Amby is progressing well and I am determined to do whatever I can to promote initiatives like the Premier's Queensland Plan which might just be the key to a brighter long term future. I cannot yet say the same about the federal scene where the new government is still finding its feet despite some good decisions in the national interest, i.e.
Graincorp. Given we now have two senior cabinet ministers who are very familiar with the Surat Basin and another local Senator poised to take office hopefully sometime soon, I have a degree of faith that we will have some strong advocates at the top level and that must help. I wish all your readers and everyone who might identify themselves in this message,
a very enjoyable Christmas break with your families and friends. In particular, the very best wishes to the people of the Maranoa and my fellow mayors, councillors and council workforces. Please take care whilst driving over the break and I am confident you will all be working with a refreshed and less cranky Maranoa Mayor in 2014.
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DOWN TO BUSINESS
2
A PREMIER BUILDING
A
ccording to FK Gardner and Sons, its new $20 million Toowoomba headquarters is proof there is still plenty of life left in the Surat Basin. The company opened the state-ofthe-art facility last month and celebrated by inviting staff, local business identities, councillors and State Government representatives on a comprehensive tour. Due to upcoming new contracts and anticipated new major projects in the pipeline, FKG expects to see turnover increase to $750 million over the next year. FKG managing director Nick Gardner said the building represented growth, as well as the company's people and its culture. "While we identified the commercial need to build a new facility in order to accommodate this current and anticipated growth, we also saw it as an opportunity to build something which embraces our internal culture and the value we place on our people," he explained. "The intention of the design was to create a working environment that did not feel like a typical industrial location. "We sought to design and build something which would reinforce our objectives of making FKG a great place to work and an employer of choice." A quick walk through the facility leaves no doubt that staff are at the forefront of its design. One of the biggest surprises inside is Building Blocks, an early learning centre, but it also includes a fully-equipped gym and pool, covered outdoor alfresco area and outdoor cooking facilities including a pizza oven and BBQ. Queensland Premier Campbell Newman was on hand for the official opening and said he believed it proved regional companies could be market leaders. Since July, FKG has been able to bolster its workforce by a further 22 percent to deliver on a variety of coal seam gas and infrastructure projects in the Surat Basin.
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Michael Eddie and Ravin Raj chat at the opening.
2. Richard and Evelyn Robins were on hand to see the FKG office officially opened. 3. Tom McVeigh, Jane McVeigh, Gary Gardner, Gayle Hall and Simon Hall get an up-close look at how the facility is tailored for staff.
4. Premier Campbell Newman and his wife, Lisa, congratulate Nick Gardner.
5. Reagan Parle, Jo Shephard and Shane Charles discuss FKG's Toowoomba investment.
6. Robyn and Roger Fuss did not miss the opportunity to inspect the new facility. 7. Lachlan Hunter, Leonie Hunter, Councillor John Gouldson, Melissa Templeman and Loret Burnett check out FKG's $20 million sign of faith in the Surat Basin.
7
DOWN TO BUSINESS
5
DOWN TO BUSINESS Indian giant Adani has been given the green light to build a controversial $3 billion coal-loading terminal at Abbot Point.
THE INDUSTRY AT A GLANCE NSW names its new Resources and Energy Minister - Roberts THE New South Wales Government has released the name of its new Resources and Energy Minister after the former officeholder resigned under extraordinary circumstances on December 4. Member for Lane Cove Anthony Roberts has been named the new minister following the resignation of Chris Hartcher last week. Mr Hartcher resigned amid Independent Commission Against Corruption investigations, which saw the watchdog execute a search warrant.
WesTrac grabs Chinese Caterpillar businesses
COASTAL PROJECT TO BENEFIT BASIN
NEW REEF TERMINAL W
ith four strokes of his pen, Federal Environment Minister Greg Hunt has given approval to a suite of enormously expensive and controversial projects planned for Central Queensland and the Great Barrier Reef. It includes the go-ahead for a new coalloading terminal worth $3 billion at the Port of Abbot Point in Central Queensland - known as Terminal 0 - to be built by Indian juggernaut Adani to service its sprawling Carmichael Coal mine in the Galilee Basin, about 500km south-west of the port. In mid-October, Adani's hometown rivals GVK Hancock secured its own approvals for Terminal 3, as part of GVK's own ambitions in the Galilee.
Mr Hunt also ticked off a dredging campaign to shift 3 million cubic metres of sand from the Port of Abbot Point area in preparation for two other new coal-loading terminals at the port. This dredging effort is one-third the size of a previous campaign from the state-owned North Queensland Bulk Ports and does not include dredging in the Great Barrier Reef itself. The dredge spoil will be moved off shore but is to remain at least 40km from the nearest reef. Environmental groups including the Australian Marine Conservation Society and Australian Greens have been fiercely opposed to dredging near the reef. A further two projects off Gladstone
also earned the nod from the Environment Minister. Mr Hunt approved two major projects from the Shell-owned Arrow Energy, allowing it to build a $15 billion dollar factory on Curtis Island to convert coal seam gas to liquefied natural gas. The final approval allows Shell, through Arrow to connect that factory to the mainland via an 9.45km underwater pipeline. Decisions on both the Arrow LNG facility and Abbot Point dredging operations were due earlier this year but were delayed until this week. Mr Hunt said "some of the strictest conditions in Australian history" have been applied to the projects.
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MINING services company WesTrac has announced it will spend about $143 million buying Caterpillar Global Mining's distribution and support businesses operations in north-east China. The chief executive of Seven Group - which owns WesTrac - Don Voelte said the purchase would "significantly increase the opportunities for WesTrac's future growth in China'. The deal is subject to Chinese regulatory approval and is expected to be completed on June 30.
DALBY STORE OPENING JANUARY
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DOWN TO BUSINESS
DEPUTY PM FAST-TRACKS DELIVERY OF ICONIC INFRASTRUCTURE PROJECT
INLAND RAIL BACK ON TRACK
D
eputy Prime Minister and Minister for Infrastructure and Transport Warren Truss has committed the Abbott Government to fast-tracking delivery of the iconic Inland Rail project. In his address to the AusRAIL conference in Sydney in November, Mr Truss said the Federal Government was determined to roll-out infrastructure essential to boosting the country's national productivity by bringing forward the Melbourne-Brisbane inland railway. "To ensure construction starts as soon as possible, I will create a high-level implementation group," he told delegates. "This announcement builds on my commitment during the election campaign to provide federal funding of $300 million to get the project back on track. "Its first priority will be to finally settle the alignment and reserve land for the route. "The Group will examine financing options and engage with private sector investors and those with significant interests along the line that will benefit from its construction." The Surat Basin could reap significant benefits if Mr Truss gets his way, as the mooted alignment runs through the edge of the region, near Oakey. "We have also committed to investigate the rail infrastructure required for a new 24/7 dedicated freight line to the Port of Brisbane," Mr Truss added. "I remain committed to working with the Port of Brisbane to develop a significant international gateway linking with the regions and mines of southeast Queensland‌to the markets of the world." Federal Industry Minister Ian Macfarlane told Surat Basin News he believed rail, in conjunction with the much-hyped second range crossing in Toowoomba and facilities like Wellcamp Airport, were crucial to open up the region economically.
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THE INDUSTRY AT A GLANCE
State's first oil refinery to be built in Gladstone THE assembly of Queensland's first oil refinery has commenced and represents a $55 million investment by its joint partners. The Northern Oil Refinery, located at Yarwun, is a venture between Southern Oil and J.J. Richards, and is set to create 40 full-time positions. The facility is set to open in February 2014 and Southern Oil managing director Tim Rose said the plant had the potential to process 100 percent of the Sunshine State's annual production of waste and used lube oil. Currently, the company refines 8% of Australia's waste lube oil at its Wagga Wagga facility.
DOWN TO BUSINESS Cockatoo Coal - ASX Code: COK
Blue Energy - ASX Code: BUL
Linc Energy - ASX Code: LNC
Leighton - ASX Code: LEI
0.54
0.75
1.20
17.40
0.52
0.70
1.15
16.90
0.50
0.65
1.10
16.40
0.48
0.60
1.05
15.90
0.46
0.55
1.00
15.40
22 Nov 29 Nov 6 Dec
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Share price listed was accurate at close of business on the days listed in 2013
22 Nov 29 Nov 6 Dec
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Share price listed was accurate at close of business on the days listed in 2013
22 Nov 29 Nov 6 Dec
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Share price listed was accurate at close of business on the days listed in 2013
22 Nov 29 Nov 6 Dec
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Share price listed was accurate at close of business on the days listed in 2013
ENGINEERING THE FUTURE
FORTESCUE LOADS $35M CARGO MINING giant Fortescue Metals Group has set a new industry record by loading the biggest ever single shipment of iron ore. A Liberian-registered ship, Hugo N, was loaded with a head-turning 263,962 tonnes of iron ore at Port Hedland earlier this month. The Hugo N was bound for China, with its cargo estimated to be worth about $35 million.
MINER TAKES ANOTHER HIT EMBATTLED gold miner Ramelius Resources has flagged more bad news for its investors after a pit wall collapsed at its Western Queen South mine in Western Australia. Earlier this month, the company announced an electric motor that drives the ball mill at the company's Mount Magnet processing plant had broken down, warning the downtime would affect its December quarter production.
Brandon & Associates Chinchilla staff (from left) Ray Hicks, Tina Duckitt, Miranda Hicks and Geoff Broadbent.
F
rom humble beginnings in Chinchilla more than 50 years ago, Brandon & Associates has grown to be Queensland's largest rurally-based consulting engineering firm. The business now has full-time staff based at offices across the state, with major locations at Chinchilla, Dalby, Emerald, Thargomindah, Blackall and Miles. Managing director Ray Hicks started
with the firm back on November 3, 1975, before Chinchilla even had a sewerage system. Mr Hicks said even after all these years, Brandon & Associates still had a major client base of local governments. But he said with booming resource industry activity in the Surat Basin had indirectly led to the firm employing a third more staff - now almost 50 people in just the past two years. "We pride ourselves on being based
outside the metropolitan area," Mr Hicks said. "We really emphasise the fact that we are living in the towns in which we operate our staff own houses and pay rates in these communities." Brandon & Associates specialises in all aspects of civil, structural, geotechnical, local government, water and environmental engineering, project management, building certification and asset management.
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DOWN TO BUSINESS Origin - ASX Code: ORG
Transfield - ASX Code: TSE
Santos - ASX Code: STO
New Hope - ASX Code: NHC
14.30
14.60
1.20
3.75
14.00
14.45
1.10
3.70
13.70
14.30
1.00
3.65
13.40
14.15
0.90
3.60
13.10
14.00
0.80
3.55
22 Nov 29 Nov 6 Dec
13 Dec
22 Nov 29 Nov 6 Dec
Share price listed was accurate at close of business on the days listed in 2013
22 Nov 29 Nov 6 Dec
13 Dec
Share price listed was accurate at close of business on the days listed in 2013
Share price listed was accurate at close of business on the days listed in 2013
DALBY IS FULL OF POTENTIAL
NEW BUSINESS WINS AWARDS
BUILDING A COMMUNICATIONS BASE: Hans and Michele Berkhout, pictured with Wendy Agar, are putting Surat Basin residents better in touch.
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T
he Surat Basin has the potential to become a digital economic hub, according to the branch manager of RCS Telecommunications in Dalby. The company has branches in the Western Downs town, Mackay and Moranbah and has gone from strength to strength in regional Queensland by providing specialist communications and network services to mining, energy and gas, farming, logistics and services. The Dalby branch shone at the Dalby Chamber of Commerce and Industry's prestigious Business Excellence Awards earlier this year when it claimed the Best New Business Award and a silver gong, and its manager, Hans Berkhout, said he believed the company was in a unique position to provide essential communication services for those living and working in the Surat Basin. Mr Berkhout has been the Dalby branch manager for 10 months and said the company's overwhelming success, both at the awards and from a commercial perspective, was as a result of a drive to serve its loyal customer base. "I am very honoured," he told Surat Basin News' sister publication, the Dalby Herald, after the October award. "This award is really about our customers and I would like to thank them for their support." With 2013 drawing to a close, Mr Berkhout said he believed RCS Telecommunications was at the "forefront of the technologies and services that make the digital economy possible for everyone", adding it was possible to achieve through "significant community engagement" and "locals supporting locals". "We have found this community fantastically welcoming and I love being part of it," he said. "My goals for (next year) are to continue growing, so that we can provide more local employment opportunities and help develop this region into a thriving digital economic hub."
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6 YEAR STRUCTURAL WARRANTY
DOWN TO BUSINESS
FAST FACTS QUEENSLAND • Royalties a nd l and r ents p aid to t he Q ueensland Government w ere $ 2.6 b illion in t he 2 012-1 1 3 f inancial y ear • Excluding t he d ual-ll isted multi-n n ational c ompanies, t he market c apitalisation o f t he ASX-ll isted Q ueensland resource c ompanies increased 7 91%$ b etween 2003 a nd 2 013, f rom $ 2.2 billion t o $ 10.8 b illion • The r esources s ector provides 4 30,000 d irect a nd indirect j obs i n Q ueensland
MARANOA • Maranoa R egional C ouncil received $ 12.4 m illion i n round o ne R oyalties f or Regions f unding • The r esources s ector provided 3 100 f ull-tt ime equivalent j obs t hrough d irect and i ndirect e mployment • The r esources s ector d irectly injected $ 315 m illion i nto gross r egional p roduct
WESTERN DOWNS • Western D owns R egional Council r eceived $ 7.5 m illion in r ound o ne R oyalties f or Regions f unding • The r esources s ector provided 8 330 f ull-tt ime equivalent j obs t hrough d irect and i ndirect e mployment • The r esources s ector d irectly injected $ 844 m illion i nto gross r egional p roduct
FUNDING FLOW THE RESOURCES SECTOR IS BIG BUSINESS IN THE WESTERN DOWNS AND MARANOA
W
hile the news is hardly likely to surprise anyone who has seen the regions boom in the past few years, latest figures from the Queensland Resources Council suggest more than $2.14 billion of the two local government areas' gross regional product in the 2012-13 financial year was as a result of the gas and mining industries. Of the total figure, the direct injection from the resources sector - through wages, community contributions and the purchases of local goods and services - was almost $1.16b. According to the December 3 report, about 42% of total employment in the regions came either directly or indirectly from the
resources sector. As part of the State Government's Royalties for Regions program, Western Downs Regional Council received $7.5m in the first round of funding, while Maranoa Regional Council received $12.4m. Toowoomba and Surat Basin Enterprise chief executive officer Shane Charles said he believed the figures proved the resources sector had helped protect the region from the global financial crisis. "These numbers go to prove what we've been saying for a long time," he said. "The region has sailed through the GFC with few issues because of its diverse economy and the strength of the energy sector."
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WE TAKE A LOOK BACK AT 2013
FEBRUARY 2013
FEBRUARY
MARCH
> Lock The Gate president Drew Hutton called on the Crime and Misconduct Commission to investigate the approval process for two of Queensland's largest gas projects, owned by QGC and Santos.
> Underground coal gasification was set to make a big
entrance in Injune after Liberty Resources boss Andrew Haythorpe visited the town to discuss the company's ambitious plan with locals.
> Chinchilla, Miles and Roma were named as three of
APRIL
Australia's top rental hotspots by national independent magazine Your Investment Property.
MARCH > Surat Basin farmers welcomed the inclusion of ground and surface water in the Federal Government's environmental assessment process for coal seam gas and large coal mining projects.
> Queensland Premier Campbell Newman visited Roma to announce further major funding - to the tune of $12.4 million - for the town's flood mitigation project as part of Royalties to the Region.
> A Queensland Health-commissioned report dismissed speculation coal seam gas drilling was causing health conditions among residents in Tara.
APRIL > Mining operations and resources developments in Wandoan drove up house prices by about 30% in the past 12 months, according to a new report from Residex, which suggested the small town had the highest growth of any rural suburb in the nation.
> Women working in construction in the Surat Basin will now have an even bigger support network after the National Association of Women in Construction launched the Surat Basin sub branch in Miles in February.
> QGC denied claims raised in the Four Corners program by the Monk family which lives near QCG wells near Kogan.
MAY > The State Government announced it was investing up to $50 million on passing loops on the Toowoomba range, providing up to 20 additional train paths per week for rural freight.
> BG Group Australia chairman Catherine Tanna slammed anti-development activism, claiming it threatened thousands of jobs and billions of dollars of investment, after protests carried out between Tara and Chinchilla by anti-CSG campaigners.
> Controversial works got underway with QGC and its contractors trenching for the main CSG pipeline across Columboola Creek near Miles.
JUNE > As the Western Downs agricultural industry faced the problem of maintaining a solid workforce, a steering committee formed for the Agrifood National Regional Initiative - tackled the issue head on is tackling the issue head on.
> New Hope Group announced it was pushing ahead with plans for its New Acland coal mine stage 3 project, despite deciding to wind back operations at one of its Ipswich mines.
> The Queensland arm of Katter's Australia Party, led by Member for Condamine Ray Hopper, announced it was attempting to create new laws that would ban drilling for coal seam gas on "prime agriculture land".
JULY > With musician Ash Grunwald in attendance, Tara's dedicated anti-CSG activists staged the final in a week-long series of protests and blockades against the industry.
> Santos GLNG had almost finished constructing a fourhectare water treatment facility in Fairview field, north of Roma.
> Dalby residents were up in arms at the prospect of their streets housing a non-residential workforce unit block.
BUILDING THE
BASIN JUNE
MAY
JULY
WE TAKE A LOOK BACK AT 2013 AUGUST
AUGUST > Miles prepares for another increase in resource industry activity as the town's new $15 mil-
lion airport, funded by Origin Energy on behalf of Australia Pacific LNG, nears completion.
> Western Downs Regional Council comes under fire over the release of its Draft Planning
Scheme, particularly in relation to defined flood event levels set for the towns of Chinchilla and Dalby. A vocal section of the business communities in each town argued the "unreasonable" and "excessive" flood heights would restrict economic growth in the towns.
> The Australia Pacific LNG project is 45% complete. The main export pipeline is three-quar-
ters complete while the laying of gathering pipeline is ahead of schedule with 161 kilometres installed.
SEPTEMBER > Mining giant Glencore-Xstrata shelves its $7 billion thermal coal project planned for Wandoan. The project was slated to be the largest thermal coal mine in the Southern Hemisphere.
> The Coalition stormed to victory in the Federal Election with Member for Groom Ian Macfarlane
appointed to the position of Federal Minister for Industry, having previously held ministerial responsibility for the regulatory oversight of oil and gas industry operations from 2001-2007 in the Howard Government.
> Arrow Energy forged ahead with its ambitious gas project after it received State Government approval for its $15 billion liquefied natural gas plant on Curtis Island. Arrow CEO Andrew Faulkner said the approval was a key stage in the overall progression of the project.
OCTOBER > QGC has a big month in the Surat Basin with the opening of its state-of-the-art Kenya Water Treatment Plant outside Chinchilla and the company's new $15 million headquarters on the outskirts of the town. Workers also completed the company's 540km gas pipeline, which will transport gas from the Surat Basin to the QCLNG gas plant on Curtis Island, near Gladstone, after a mind-boggling 12 million working hours.
> The upgraded Miles airport reopens after a $15 million injection from APLNG, slashing travel times for workers and removing hundreds of vehicles from the region's roads.
> New Hope Group shelves the relocation of its New Acland Coal Mine coal loading facility near Jondaryan, angering residents who claimed coal dust from the stockpile was "ruining their lifestyle"
NOVEMBER SEPTEMBER
> Linc Energy 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 in Chinchilla.
> QGC pushed to have a much stronger presence in the upper Surat Basin after the company tabled a proposal to develop up to 400 new wells around Wandoan.
> One of Toowoomba's highest-profile companies - Russell Mineral Equipment - announced it would slash up to 100 jobs to tackle declining investment in global mining industry.
DECEMBER NOVEMB
R DECEMBE ER
> In one of the year's most significant resource industry decisions, Federal Environmental Minister Greg Hunt gave the go-ahead for three million cubic metres of dredge spoil to be dumped offshore in the Great Barrier Marine Park, 24km northeast off Abbot Point.
> Peabody Energy announced that about 200 workers would lose their jobs when the company closes its Wilkie Creek coal mine, between Dalby and Chinchilla, at the end of the month.
> New figures from the Queensland Resources Council suggest more than $2.14 billion of the Maranoa and Western Downs local government areas' gross regional product in the 2012-13 financial year was as a result of the gas and mining industries. Of the total figure, the direct injection from the resources sector - through wages, community contributions and the purchases of local goods and services - was almost $1.16b.
ction onstru C l ia c er Comm
t & Design Developmen
Civvil Construc tion
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rs
ntracto Mining Co
Solutio
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IN THE NEWS
CAMEBY DOWNS MINE OWNER MAKES BOLD MOVE
YANZHOU PUSHES FOR A BIGGER SHARE A
ustralian resources could be harvested by the Chinese Government after the Federal Government cleared the way for China's state-owned Yanzhou to take full ownership of its local arm Yancoal, which operates a coal mine in the Surat Basin. Treasurer Joe Hockey agreed to water down restrictions on Yanzhou designed to force it to offload its ownership of Yancoal
from 78% to 70% and relinquish its majority holdings of its associated companies. These were all due to be enforced from January 1 next year but have now been dumped entirely. Mr Hockey also said the government had no objection to Yanzhou owning the entirety of Yancoal, although these foreign ownership efforts were considered on a
powerful partnerships
case-by-case basis. Yancoal owns the Yarrabee Mine, west of Gladstone and Rockhampton, plus has a joint venture with Peabody Mining for the Middlemount mine. It also owns Cameby Downs in Surat Basin near Miles. Within the next five years, Yancoal expected to expand both Yarrabee and Middlemount.
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Email miles@smk.com.au www.smk.com.au PO Box 335 - 49 Murilla Street Miles Q4415 When you choose an advertising partner you should always align your business with another that has the same proven and successful track record The Surat Basin News was judged the BEST NEWSPAPER in it’s category at the 2011 Queensland Country Press Association Awards - a significant achievement for a newspaper that was only four years old Our vision has always been to provide the best for this incredible region and the communities that are based here. To learn more about how you can utilise our hard won and award winning reputation to your advantage Call Laurell Ison now phone 07 4662 7368
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Use these pages to tell your story We produce 32,000 copies every two months, through the dominant local newspapers within the major centres of Dalby, Chinchilla and Roma Editorial - phone 07 4662 7368
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BUILDING THE BASIN
EXECUTIVE INFLUENCES EVENING
EXECS STEP OUT IN BRISBANE MINISTERS LEAD BUSINESS EVENT
C
o-existence was the word on everyone's lips when the Toowoomba and Surat Basin Enterprise held its final Executive Influences evening of 2013 on December 3. The event, held at the Brisbane Convention and Exhibition Centre's Sky Room Terrace attracted 100 senior executives from Toowoomba and the Surat Basin. Companies represented on the night included Santos, Wagners, QGC, FK Gardner and Sons, USQ, Thiess, Camm Agricultural Group, Vanderfield, Origin Energy, BMD Constructions, Ostwald Bros, Hutchinson Builders, Schlumberger, Condamine Electric Company and Arrow Energy. During the event, attendees heard from Minister for Natural Resources and Mines Andrew Cripps and Minister for Agriculture, Fisheries and Forestry John McVeigh, who both highlighted the challenges and opportunities of co-
existence between the resources and agricultural sectors. "Criteria for co-existence includes mutually-beneficial outcomes for both agriculture and resources sectors, continued agricultural production in CSG areas as it is essential and can be achieved, values that are mutual and achievable and lastly rehabilitation is so important too," Mr McVeigh said. TSBE chief executive officer Shane Charles said he believed the event provided a valuable, targeted networking platform for capable regional companies who attended. "There has been really strong interest in our four Executive Influences events this year from industry," he said. "With so much opportunity available to local capable companies in the Toowoomba and wider Surat Basin, it is so valuable for CEOs and decision-makers to be in the same room together and business match, to ensure maximum levels of engagement for local business."
TSBE chairman John Wager, Natural Resources and Mines Minister Andrew Cripps, Natural Resources and Mines Assistant Minister Lisa France, Agriculture Minister John McVeigh and TSBE chief executive officer Shane Charles discuss co-existence in the Surat Basin.
Dave Gilbert, Carli Hobbs and Graham Benson catch up as the TSBE event in Brisbane.
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BUILDING THE BASIN
ADVERTSING FEATURE
NEW DINING EXPERIENCE
CREEK CAFE HAS IT ALL T
he Miles district's premier restaurant destination is about to introduce a whole new dining experience as the Creek Café prepares to launch into the New Year. For the first time, the café will offer evening dining - a family-friendly dinner alternative to regular pub dinners. Creek Café manager Paula Toohey said the business had also recently finished a major upgrade of its alfresco dining venue - a picturesque backyard setting with a water feature and a fenced playground for the younger visitors. "The café is very much family-oriented,"
breakfast
•
coffee
Paula said. "We've got the best alfresco dining in the district, and now that will extend into the evening." A former customer service manager for one of Australia's major retail chains, Paula prides herself on the café's dedicated customer service. "That's what I'm passionate about," she said. "Our main goal is to make our guests feel welcome. The locals are very important to us because they're the grounding for everything, but we still very much cater for the workers passing through town." In 2014, the Creek Café will offer serviced
•
lunch •
accommodation and dining packages in a variety of upmarket houses in the Miles township. Guests working in the area can live in the comfort of a new rental home while enjoying top-class meals at breakfast, lunch and dinner, sourced from the Creek Café. The café's meals are all homemade and fresh daily, offering hot and cold meals and gourmet cakes and sweets throughout the day. The Creek Café also offers free wi-fi for guests and BYO alcohol. Photo: Cafe manager Paula Toohey prides herself on her customer service.
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creek cafe A A A A
Offering breakfast, lunches and dining at night in the New Year Open from 4.00am Catering and accommodation packages available BYO
Corner of Murilla & Pine Sts, Miles P: 07 4627 2797 M: 0431 247 634 E: creekcafemiles@gmail.com
BUILDING THE BASIN
PLANNING BILL FAILS TO ATTRACT INTEREST
I
PROPOSED LAWS WOULD SHAKE UP EXPLORATION RIGHTS
T IS the critical document designed to govern how and when mining or gas projects are allowed on prime farming or protected environmental land, but so far nobody is talking about it. Since being released for public discussion in mid-November, the Regional Planning Interests Bill is yet to receive a single submission from any person, group or company. When in place, the laws will decide how key regional areas in Central Queensland and the Darling Downs handle resource companies keen to either explore or
develop in conflict with what is already there. Under the proposed legislation, these "proposed resource activities" would require a specific approval or regional planning authority to encroach on these critical parcels of land. However, the laws allow for a number of exemptions. If the company can score approval by the land owner, is an already-operating project or a particularly small operation, this specific approval may not be needed. Resources companies could also develop
inside key farming or environmentallyimportant areas if they can limit their operation to a single year. The need to build, operate, dismantle then rehabilitate in 12 months would be too much for almost any project. All projects would still be scrutinised under environmental legislation, just not require a regional authority to go ahead. State Development Committee Chair and member for Gympie David Gibson is to consider the proposed laws in detail when submissions close next month. He said he all affected industries and
regional Queenslanders ought to be heard on this. "One of the outcomes of the bill is to reduce land conflicts between agriculture and resource sectors," Mr Gibson said. "We're really keen to hear from people on both sides. "I think regional Queenslanders would be interested in this bill and I would encourage them all to look at it. To learn more, visit www.parliament.qld.gov.au/work-ofcommittees/inquiries and click on the "Regional Planning Interests Bill 2013".
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PLACES AND FACES
PLACES AND FACES
1. Western Star advertising manager Karin-Ane King with the Toowoomba Chronicle's Erika Brayshaw at the Toowoomba and Surat Basin Enterprise evening in Roma. 2. Philip Duncan from AMVL Migrations with Brian White from Land Surveys. 3. Maranoa councillor Joy Denton was talking to John Postlewaite from GHD Pty Ltd and Sue Roche from the Department of State Development and Planning Roma office. 4. Guest speaker at the TSBE Roma function Maranoa councillor Cameron O'Neil with MRC deputy mayor Scott Wason, Assistant Minister for Natural Resources and Mines Lisa France and the main speaker of the function MRC mayor Rob Loughnan. 5. Tom Gorman from NJ Contracting having a yarn to Ross MacKenzie from IOR Petroleum at the function. 6. Les and Ben Boodle from Boodles Concrete enjoying the TSBE function in Roma.
1 2
5
6 3
4
PLACES AND FACES
11
7 7. Nathan Swaffer from Rocla and Scott Fyfe and Ian Lewis from NJ Contracting P/L at the TSBE event in Roma this month. 8.
Santos GLNG's Jamie Miller with Origin's Scott Bird at the TSBE function in Roma on Wednesday night.
9. Terry Smoothy from Verifact and Dan Whitmore from CMC. 10. Mark Humphries and Barrie Knott from Nationwide Hire with
Allan Mullins from Taylor Safety Equipment enjoying a lager at the TSBE function.
11.
Neil Aikman from Fugro Spatial Solutions with Shane Kennett from LJH Commercial.
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PLACES AND FACES
MESSAGE DELIVERED THROUGH FUN
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urphy Pipe and Civil pipeline crews working across the Western Downs got an early visit from Santa Claus last week - well 10 high-visibility jolly men in red, to be precise. The pipeline construction company decided to send out a safety message to its crews to remind them to keep focused on
the job to ensure they went home safe this Christmas. Murphy Pipe and Civil communications manager Glenn Pfluger said while the MPC Santas were a bit of festive fun for the company's pipeline crews before the Christmas break, the visits also had a serious side. "Industry safety statistics show that at this time of year work place accidents are more
common because workers have a lot more on their minds than just work, such as organising family holidays, buying presents for the kids and generally winding down for the holiday period," Mr Pfluger said. "It only takes a moment to take your mind off the job and you could end up injured, so we wanted to remind our lads that they needed to keep focused on safety to ensure
they get to spend Christmas with the people that mean the most to them, their family. "It might be just a few Santas handing out candy canes and a safety message on a Christmas card, but if it makes our crew members stop and consider their safety for a minute then mission accomplished," he said.
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PLACES AND FACES
KING NOTHING’S GOT TALENT A
RAG-TAG bunch of workers from the Surat Basin has taken the town's cultural scene by storm, taking out a hotly-contested talent quest in Miles. Leighton Contractors sponsored the M Factor @ the XRoads competition - a talent quest at the Miles and District Chamber of Commerce Christmas Street Carnival on December 12.
Leighton Contractors had a strong showing in the competition with two bands, King Nothing and Flaming Ls, and a talented, tap-dancing songstress Carissa Carter. But it was King Nothing who ran away with the competition with their brand of straight out rock and roll. King Nothing and Flaming Ls regularly play in a larger, combined band - IIF - at
King Nothing are (from left) Mark Boersma, Justin Miles and Edmund Cooke.
the Leighton Contractors work camp at Condabri, south of Miles. A company spokesperson said the band was the backbone of the project's Injury and Incident Free (IIF) Tuesday barbecues. "More than this, the band is an opportunity for the wider project team to feel more at home," they said. "We work hard to offer as many
opportunities as possible to ensure the team is engaged and stimulated in their personal time." An estimated 600 people turned out for the family-friendly street party in Miles' Dawson St - an annual favourite in the town. King Nothing took out first place in M Factor, followed by Flaming Ls in second and guitarist Chris Sailsbury in third.
Street performers kept the Street Party visitors entertained through the evening.
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PLACES AND FACES
SAM KLAAS - BORN AND BRED IN ROMA
35 YEARS WITH SANTOS I
n the ever-changing energy sector, spending more than a couple of years with the same organisation can seem impressive but one Roma resident has set a new benchmark by notching up 35 years with one company this year. Santos GLNG Maranoa regional manager Sam Klaas began with the company in 1978 and, almost four decades on, has fond memories of his family's longstanding Roma heritage and the changes he has witnessed within the resources sector over his career. "I was born and bred in Roma and my family has lived in the area for more than 130 years," he said. Apart from a stint of travelling in his youth, Mr Klaas has always resided in the town, drawn to its relaxed country lifestyle and the locals' strong connection with the outdoors.
"I married a local girl, Jenny, many years ago and we were very keen for our two daughters, Katie and Sasha, to grow up here," he explained. "Roma is a great place to raise kids, there's a strong sense of community and a big sporting culture, which suited our family well." Mr Klaas started with the company as a production operator at the Silver Springs gas facility and, 24 years later in 2002, played a key role when the company began to explore coal seam gas as an alternative to its traditional conventional gas production. "One of the highlights of my career is my involvement in the development of the Scotia coal seam gas field, located in Wandoan, back in 2002," he said. "The Scotia field project was a success and it remains an operation that has stood
the test of time and continues to perform at maximum efficiency." Fast-forwarding to 2013, Mr Klaas is now responsible for a team of 36 who work across Santos GLNG operations in the Maranoa. "We are constantly conversing with landholders and others in the community who interact with, or are interested in, the natural gas industry," he said. "The main priority for my team is to ensure that our operations and our people meet community expectations." Mr Klaas said he believed gains in technology have delivered huge benefits for people like him who work and live regionally. "The development of video conferencing has been of enormous benefit to me as a Roma-based person, because I can dramatically reduce the need to travel to
Brisbane for meetings with big productivity gains," he said. The industry veteran said the scale of the Santos GLNG project made his role both challenging and very exciting. "This is a project that has never been attempted before, involving three major work fronts across a massive stretch of Queensland," he said.
ISSN 1835-6400
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SURAT BASIN NEWS Published by Chinchilla Newspapers Pty Ltd, 12 Mayne Street Chinchilla Q4413 Printed by APN Print Toowoomba 50 Industrial Avenue Toowoomba Q4350 2013 General Manager David Richardson, 12 Mayne Street Chinchilla Q4413, PO Box 138 Chinchilla Q4413, Phone 07 4662 7368