Northern Australian Development
JULY - SEPT 2014 ISSUE 4
Infrastructure | Investment | Gateway to Asia Natural Resource | Mining | Agriculture | Tourism International Education | Energy | Community
IPO3425
We’ve been part of the Darwin community for years. And we’ll be part of it for decades to come. Being part of the Northern Territory way of life means we are involved in more than just business and we look forward to continuing to contribute to the community’s growth and sustainability.
CONTENTS 98
THE ORD-EAST KIMBERLEY EXPANSION PROJECT has seen over $517M invested in the East Kimberley
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NT AUSTRALIA WEEK IN CHINA
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SITZLER STEPS UP IN PRISON
Over half the total value of the Australian Stock Exchange accompanied the Prime Minister
turning 270 hectares of rural bushland into 1,000 bed state of the art prison
CONTENTS
CREATING A FERTILISER THE INDUSTRY IN NORTHERN TERRITORY
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A SOUTHERN VIEW OF NORTHERN DEVELOPMENT
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GIMBELLS LANDSCAPING, THE PRINCIPAL CONTRACTOR ON FEDERALLY FUNDED PROJECTS
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SHERWIN IRON
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NT FARMERS REPRESENTING PRODUCTION WORTH $280M
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GLENCORE MRM
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RUSCA BROS SERVICE
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MRS RINEHART, NT AMBASSADOR
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CAPACITY & CAPABILITY TO DELIVER
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MICHAEL BRIDGE, GROW THE VISITOR ECONOMY TO $2.2 BILLION
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MEMBER OF BARACK OBAMA’S ADVISORY COUNCILS, LIVERIS IS ONE OF AUSTRALIA’S MOST SUCCESSFUL BUSINESS EXPORTS
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INTERNATIONAL STANDARD EDUCATION IN DARWIN
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Territoria Civil is one of the Northern Territory’s biggest construction companies.
170 Coonawarra Road, Winnellie. Northern Territory | Tel: 08 8943 1000
Territoria Civil works on a diverse range of contracts in the Territory, including road construction, building, resources, rail and marine infrastructure. Our team has a strong history of working on multi-discipline projects, both large and small, and is well placed to deliver quality results for our customers and the Morthern Territory community. We are committed to supporting the Territory and providing local jobs for local people.
P R OJ E C T DUE FOR COMPLETION AUGUST 2 0 1 4
ARROW PROPERTIES | Chris Giannikouris 0427 471 444 | Matthew Lee 0427 471 555 | aarowproperties.com.au
WINNELLIE POINT Aptly named and situated, Winnellie Point at 60 Winnellie Road, highlights an exciting new direction in commercial centres for the Territory. Showcased behind a distinctive facade, with up to 28 available tenancies over two levels, Winnellie Point boasts: • Flexible tenancy options. All spatial requirements can be satisfied via removable walls between tenancies with areas ranging from less than 100m2 to over 1000m2. • On-site cafe. The perfect place to hold your informal meetings over coffee. Not only will this be catered by an established, highly regarded company, tenants can indulge the luxury of coffee service. • External shaded breakout/barbecue areas. These communal outdoor areas encourage occupants to mingle with others within the development, get their daily dose of vitamin D in landscaped surrounds and create the perfect area for staff social occasions.
Discerning, business savvy operators will seize this opportunity to escape high rental rates in the Darwin CBD and become part of an innovative, modern office complex which points the way forward through smart, considered design.
To discuss your future business needs at Wiinnellie Point, contact Nick Syrimi on 0412 537 638 or nick.syrimi@raywhite.com
THE CENTRE OF DARWIN Darwin Convention Centre is a symbol of the tropical harbour city’s exciting and vibrant future – a world-class venue connecting people and ideas and proudly hosting the world from a stunning waterfront setting in the Territory’s capital. Everything centres here – whether it’s a prestigious national or global convention, gala dinner for visiting VIPs, trade exposition, rock concert, charity event, wedding or seminar. We’re proud to say that during our short five-year history our achievements have been recognised with sought-after industry awards ranging from top notch venue design to catering excellence, outstanding events team, workforce innovation, and leadership in business tourism. We look forward to hosting your next event in the Northern Territory.
Let’s connect.
www.darwinconvention.com.au +618 8923 9000 | sales@darwinconvention.com.au
GEOGRAPHY
The Northern Territory represents about one-sixth of the entire Australian land mass at 1,350 000 square kilometres, but has only 1% of the Australian population at around 235,000 people. While the land is sparsely populated, it presents significant opportunities for investment, particularly in the resources sector. Darwin is the commercial and administrative centre of the NT. Alice Springs is the largest regional population centre outside Darwin and is the base for significant tourism activities in the central region. The northern, central and southern regions of the NT display vastly different landscape, flora and fauna and climatic conditions. The land is divided into two main tenures of approximately equal size, being Aboriginal freehold land and Crown land under pastoral lease. Freehold land accounts for approximately 23,000 square kilometres, or less than 2% of the total area.
CLIMATE
The Northern region of the Northern Territory is referred to as the ‘Top End’ and has two official seasons. The ‘Wet’ season occurs between October and April and has high humidity and heavy monsoonal rainfall. The ‘Dry’ season runs from May to September. The Top End occupies roughly the top third of the NT. In contrast, the central and southern regions of the Northern Territory are relatively dry for most of the year, experiencing cooler winters and hot dry summers.
THE
N O R T HER N TER RITOR Y A
SNAPSHOT
THE ECONOMY
Mining, LNG production, construction, government services, tourism, horticulture and defence are major contributors to the Northern Territory economy. The economy has averaged 4.4% annual growth since 1990, and current forecasts suggest similar growth will be achieved through to 2030. These forecasts suggest the NT economy will consistently outperform the rest of Australia, and many other countries. The Northern Territory population of 235,000 people represents a small tax base considering the range of activities and infrastructure necessary to service onesixth of Australia’s land mass. The NT Government is supported financially by the Australian Government, will approximately 75% of the annual budget funded by the Australian Government through specific purpose grants and a share of the revenue raised from the Goods and Services Tax (GST).
The population of the Northern Territory is approximately 235,000 and is the youngest in Australia with the median age of 31 years, six years younger than the national median age. More than 100 nationalities are represented in the Northern Territory's population, including more than 50 organisations representing different ethnic groups.
MORE INFORMATION ON THE ECONOMY IS AVAILABLE FROM THE FOLLOWING WEBSITES:
www.dob.nt.gov.au/business/economics/key-statistics www.treasury.nt.gov.au/Economy/EconomicBriefs www.censusdata.abs.gov.au
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Why invest in AustrAliA’s northern territory The Northern Territory has a number of advantages that make it attractive to potential investors.
Australia’s gateway to Asia Darwin, the capital of the Northern Territory, is the closest Australian capital city to Asia, providing the shortest transport routes for two-way trade between the Asian economies and Australia. The Northern Territory has one international airport, Darwin International Airport that operates 24/7. The deep-water Port of Darwin provides modern freight handling facilities, a dedicated bulk liquids berth and links with an intermodal road-rail network. Reduced shipping times between Darwin and Asia give Darwin a trade advantage, particularly in relation to the export of bulk commodities.
A considerable and pristine resource base There are significant mineral and energy resource precincts onshore in the Northern Territory, and in offshore waters accessed from the NT. Many of these precincts have been commercialised, with significant investment from international partners. Natural gas and petroleum exports form an important and growing sector of the local economy. There are also significant areas devoted to agricultural products such as meat, seafood, fruit, vegetables, crops, forestry and ornamental plants. The Northern Territory environment is largely undeveloped. The potential commercial benefit from native flora and fauna, food and medicines is largely untapped.
Climate change may have some medium to long term benefits for the NT Research by the Australian Bureau of Meteorology suggests that the direct impacts of climate change on agricultural production in the Top End of the Northern Territory are likely to be less severe, and therefore provide more attractive investment opportunities, compared to other primary production areas across Australia. The agricultural production systems in the NT are already designed around significant variations in climate across annual
seasons, making adaptation to the future impacts of climate change easier to incorporate into existing management practices.
A highly skilled and flexible workforce The Northern Territory has a highly skilled multilingual workforce reflecting a population drawn from across the globe. The pipeline of major economic developments is generating many thousands of jobs, creating opportunities for business entrepreneurs, professionals and skilled tradespeople from all walks of life.
A diverse cultural mix The NT’s population of almost 250,000 includes people from more than 100 nationalities who have shared their cultures over more than a century to turn this region into one of Australia’s most cosmopolitan. This diverse mix makes it easier to do business with our international partners because there is already a strong understanding of different cultural practices and expectations.
The room and capacity to grow The Northern Territory not only has the space to grow, it also has capacity to accommodate key infrastructure additions such as new roads, ports and suburbs, with fewer constraints than more highly populated areas of Australia.
A highly regarded and supervised financial environment Australia is one of several countries with the highest possible AAA credit rating, reflecting the strong and diverse economy, comparatively low debt levels, good prospects for growing income from expanding export markets, and experienced financial oversight. The Northern Territory Government has an Aa1 credit rating, similar to other Australian states and territories, reflecting the level of debt required to fund the infrastructure necessary to underpin current and future economic growth. These high credit ratings are attractive to investors and fund managers who hold funds in AAA rated investment categories.
Stable government(s) The quality of governance in Australia is among the world’s best, and Australia is considered among the world’s most politically stable countries. These attributes contribute to economic growth and security, and underpin business and consumer confidence. This stability is attractive to Australian firms seeking to grow, as well as multinationals expanding their businesses or considering the Northern Territory as a regional base.
An excerpt from the Northern Territory Directory of Investment Opportunities October 2013.
Visit www.investnt.com.au
WISHART BUSINESS PRECINCT 302 HECTARES OF FREEHOLD LAND OFF WISHART ROAD/ KIRKLAND ROAD IS TO BE TURNED INTO ONE OF THE LARGEST INDUSTRIAL ESTATES DARWIN HAS EVER SEEN.
With an approximate of 550 allotments to be developed in a 10 stage plan the Wishart Business Precinct is going to be quite the addition to the Territory.
a year per stage. The next few stages for the precinct will be similar to stage 1, but the later stages are aimed at bigger industries. The majority of the estate will be developed during these later stages and will be constructed with convenience in mind allowing access to the harbor from port arms and a connection with a connecting rail spur off the Darwin to Adelaide Rail line.
Carried out by Strangways Developments Pty Ltd the project has completed its first stage of allotments adjacent to Wishart Road/ Kirkland Road. This stage stage contains 65 lots, which are zoned for Light Industrial. Meaning that a variety of services from oil & gas services, freight and transport, light industrial, showrooms, sheds, warehouses, small service industries and investors are suited for and expected to appear in those lots. Also stage 1 lot sizes range from 2,000 m2 – 27,000 m2. And priced from $775,500 GST inclusive.
These later lots, which will be constructed onto the peninsula, will be aimed at larger general industry and port, barge, stevedoring, oil and has type industries. Wishart Business Precinct is located off Wishart Road/Kirkland Road and located in a prime position. The Precinct is located between Palmerston and the East Arm Port, Oil & Gas Marine Supply Base and Freight Railhead. It also lies near the future Inpex Gas Plant at Blaydin Point.
Whilst only Stage 1 is currently completed the master plan for the precinct is for it to be completed in 10 years, that’s approximately
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GET IN ON THE GROUND FLOOR FOR THE DARWIN GAS BOOM
BEFORE INDUSTRIAL LAND PRICES SKYROCKET! Strategically Positioned Darwin Industrial Land wishart business precinct stage one (65 Lots)
Lot sizes from 2,000–27,000 m2 Prices from $250 per m2 GST Exclusive Centrally located between Darwin Port, Rail Freight Terminal, Oil & Gas Marine Supply Base and ConocoPhillips and INPEX Gas Plants Allotments suited to a broad section of the market including oil & gas services, workers accommodation camps, freight and transport, light industrial, showrooms, warehouses, service industries and investors Freehold Industrial Land – No Covenants
titles issued – ready to build immediately! © 2011 Google – Imagery © 2011 DigitalGlobe, Cnes/Spot Image, GeoEye, Sinclair Knight Merz
land ideally suited for hardstand and laydown areas during five year inpex gas plant construction view interactive pricelist and lot plans at www.wishartbusinessprecinct.com
for further information contact
INPEX Gas Plant
Wickham Point
East Arm Port
Darwin CBD
Strangways Developments
08 8941 8366
FUTURE STAGES
email: batrob@iinet.net.au Duffield Street
Coffey Street
STAGE ONE Bree St (Entrance)
Palmerston CBD
WISHART RD/KIRKLAND RD
Fowlestone Rd
T ERR I TORY L I F E
Leasel Avila
Lance Collyer
Publishers / Directors Leasel Avila and Lance Collyer Advertising Executive Mark Azzopardi mark@territorylifemag.com +61401791781 Editorial / Advertising leasel@territorylifemag.com +61424153240
Mark Azzopardi
Photographer George Fragopoulos www.xsight.com.au Designers Gil’s Graphic Solutions A big thank you to Krys, Ruth & Jhom Website www.territorylifemag.com
PUBLISHERS INDEMNITY Those who make advertising placement and/or supply copy material or editorial submission to Territory Life Magazine, undertake to ensure that all such material does not infringe any copyright, trademark, defamation, libel, slander or title, breach of confidence, does not contain anything obscene or indecent, or does not infringe the Trade Practices Act or other laws, regulations or statutes. Further to the above mentioned these persons agree to indemnity the publisher and/or its agents against any investigations, claims or judgements. Territory Life Magazine Pty Ltd. April 2014.
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WHY AUSTRALIA IS LONG OVERDUE
FOR SPECIAL ECONOMIC ZONES. I AM SURE THE FOLLOWING STORY WILL BE FAMILIAR TO EVERYONE. YOU HAVE A PASSIONATE INTEREST IN AN ISSUE. SEEING THAT INTEREST BEING SUBJECTED TO UNFAIRNESS AND NEGLECT BY SOCIETY AT LARGE AND THE POLITICAL PROCESS MAKES YOU ANGRY. THEN YOU FIND LIKE-MINDED PEOPLE (INITIALLY A VERY SMALL BAND) WHO SHARE THE PASSION. YOU TALK AND COMPLAIN AMONGST EACH TILL ONE DAY IT HITS YOU- WE HAVE TO STOP COMPLAINING TO EACH OTHER AND AS PRIVATE CITIZENS DO SOMETHING ABOUT THIS!
GINA RINEHART That was how over 3 and half years ago a small group of us as private citizens formed Australians for Northern Development and Economic Vision (ANDEV). Mrs. Gina Rinehart was and is the driving force behind the formation of ANDEV. I was one of those founding members back in August 2010 and am the Co Chair. As an economist and futurist for over 35 years I have worked on many projects in Northern Australia (mainly the North of WA) and along with all ANDEV members have a passionate interest in the economic and social development of Northern Australia. The history of the development of Northern Australia, generally speaking everything north of the Tropic of Capricorn, is based essentially on individuals battling and succeeding against adversity, with limited and waxing and waning Government support. The natural resources remain underutilized and in large part undeveloped. Today we have a major growing market in Asia as it develops economically and socially. The ANDEV mission is to catalyst Governments (especially the Federal Government) to create an enabling environment for investment that will fuel a sustained growth in the economic and social development of Northern Australia. What is clear from a comprehensive research into economic and social development around the world is that such enabling environments are created within the framework of well specifically designed Special Economic Zones (SEZ). Much has been achieved since ANDEV’s formation back in August 2010. When ANDEV first raised this SEZ concept in 2011 it was generally greeted with hostility and as something “foreign” to Australia. Yet SEZ’s have and are successfully operating across 135 countries and have been the single most important institutional structure introduced by Deng Xiaoping that was used as the springboard for the historically unprecedented growth of China starting in 1978. China continues today to introduce further SEZ’s with the latest in 2013 in Shanghai focused on financial services that will allow foreign investment in financial services. Today there is at last an open conversation going on about SEZ’s. The major step forward was in the Coalition taking to the September 2013 federal election its historically landmark policy “2030 Vision for Northern Development“. The first policy for many decades, that establishes an integrated long term plan
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IMANTS KINS CO CHAIR | ANDEV WW.ANDEV-PROJECT
for the development of Northern Australia. Since the election it moved quickly to establish two enquiries. The Joint Select Committee on Northern Australia and the Prime Minister and Cabinet managed preparation of the White paper on Northern Development. The Prime Minister, Chief Minister of the NT and the Premiers of WA and Queensland are part of the White paper preparation. Particularly, ANDEV wants the time consuming approvals for projects streamlined. Presently these can run into thousands for major projects making them serious impediments to investment and development of the North. The Joint Select Committee report will be integrated into the White paper. ANDEV has made submissions to the Joint Select Committee and I have appeared before the Committee during its comprehensive community consultation process. You can find reports on all of these issues on the ANDEV website. The NT Government with its Chief Minister Adam Giles are proactive and industrious. For example they have established a Northern Australia Development Office and appointed Mrs. Gina Rinehart as one of its Honorary NT Business Ambassadors. Mrs. Rinehart has been able to play a role in attracting the Ambassador Program’s first major events with, the Mining and related industries day, and the Small Business Association of Australia (SBAA) Conference and annual gala dinner, all to be held in Darwin. Mrs. Rinehart is the SBAA Patron, and is keen to attract such events to the NT so that delegates have a great opportunity to see for themselves the territory and it’s opportunities. The second Mining and Related Industries Day luncheon on November 22nd in Darwin will be in the same week as the SBAA Conference. Mrs. Rinehart has said to quote, “ I am a longtime believer in the potential for
Northern Australia and the relatively untapped opportunities it offers our country. I especially admire the people who’ve made their living in Northern Australia, away from the amenities of our large coastal cities”. A Special Economic Zone is ANDEV’s vision for the future prosperity of Northern Australia and Australia. Research conducted exclusively for the ANDEV by Galaxy in May 2011 had the majority saying they do not believe that decision makers in Canberra understand the specific needs of families and businesses in Northern Australia. Australians in WA and QLD were the most likely to think Canberra was out of touch, with 74% revealing they felt Northern Australia’s needs were not understood by Canberra. Research conducted at the same time also established that Australian’s are in favour of the establishment of A SEZ zone to reduce tax and red tape to promote investment. 60% of those surveyed indicated they were in favour of a Northern Special Economic Zone, with higher support in regional areas. 73% of regional Western Australians and Queenslanders supported the idea, and in Perth and Brisbane 66% of respondents were in support.
THE INTERNATIONALLY PROVEN WAY FOR SUSTAINED ECONOMIC AND SOCIAL DEVELOPMENT IN NORTHERN AUSTRALIA IS BY ESTABLISHING SEZ’S. THE OPTIMAL POLICY WOULD BE FOR A SEZ ACROSS ALL OF NORTHERN AUSTRALIA WITH A POLICY MIX THAT INCLUDES BUT IS NOT LIMITED TO: • Reduced Federal and State/Territory taxation (income, payroll, stamp duty etc) • Open door to Foreign Investment • Establishment of Infrastructure Bonds that contain taxation incentives • One stop SEZ Agency located in Northern Australia centres that has streamlined
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administrative and approval processes for all relevant Federal and State /Territory laws. • Long term Infrastructure plan that is budgeted for by the Federal, State and Territory. • Funding for the necessary data gathering required on matters to foster investment in Agriculture like soils and water availability in Northern Australia. There remains a major battle to convince politicians of the need for SEZ’s and for the visionary policy framework ANDEV is proposing. An SEZ across the NT is possible as constitutionally it appears to not have any impediments and given its small existing tax base, taxation incentives would have a insignificant impact on for example the Federal Governments revenues. As at Sept 2013 total population of NT was 241,480 of which 68,850 were indigenous ie 28.5% of the population. In 2010/11 115,585 individuals paid total tax to Federal Government of $198,895,569. Even if no taxation was paid in the NT the impact on the Federal Governments revenue would be insignificant.
ANDEV IS PROPOSING A BIG IDEA FOR A BIG COUNTRY ANDEV WANTS TO SEE A CHANGE IN HOW ALL AUSTRALIANS SEE NORTHERN AUSTRALIA 1. From being viewed as a temporary to a viable and exciting permanent settlement 2. As the leading area for how to live sustainably in the Tropics. 40 % of the world’s population lives in the Tropics and this is forecast to rise to 50% by 2050. The youth of the world is based in the Tropics. In developing the North we can lead the world in for example health, environmental, education, housing, infrastructure, agricultural services and export those services to other Global tropic locations.
Monday, 16 June 2014 could have passed as any other regular Monday morning had it not been for the hustle and bustle at the Darwin Convention Centre, where over 170 delegates hailing from various states in Australia gather for the Developing the Territory conference.
Organised by Aventedge, this leading conference aims to bring forward the Territory’s new and emerging developments which account for her economic growth over the last couple of years. This event also brought together key stakeholders and decision makers from the public and private sectors to discuss investment opportunities and policy initiatives stimulating sustainable economic development across the region. Featured presentations of the day include the keynote presentation by Chief Minister of Northern Territory, The Hon. Adam Giles MLA, who discussed a holistic view of key milestones, strategic goals and directions that lay the foundation for the future development in the Territory. The abundance of minerals and natural resources is perceived to be one of the Territory’s greatest assets in addressing the amplified demand for energy security as well as ensuring the longevity of the resource industries. The Chief Minister also called for a combined effort between the public and private spheres to jointly cultivate investments to develop quality transport and network infrastructures, in view of the growing appeal for tourism and national defence presence in the region. A ministerial address by the NT Minister for Mines and Energy, The Hon. Willem Rudolf Westra van Holthe MLA, reinforced the importance of mining industry as a major driving sector for NT’s economy and highlighted the role of government
engagement in supporting and growing the industry. Other notable addresses by the Minister for Community Services, The Hon. Bess Price MLA and the Minister for Transport and Infrastructure, The Hon. Peter Styles MLA, underlined long-standing issues on Indigenous participation and the importance of quality transport infrastructure for growth in the region. After the morning break, panel sessions saw a heightened Q&A traffic and interaction between speakers and delegates, where the latter were given an opportunity to direct questions and exchange thoughts with the panelists. The panel sessions ‘“Beefing” up the Top End food bowl’ and ‘Delivering quality infrastructure to support development opportunities’ further struck a chord with the key message that had been echoed throughout the day – that an effective collaboration between government and businesses is instrumental in the pursuit of a successful economy in Northern Australia. Day Two took off in a similar fashion. The first speaker Brian O’Gallagher from the NT Department of the Chief Minister hit the ground running, as he laid out an enriching insight on how NT’s geographical proximity to Asia presents a significant advantage for the region’s offshore investment opportunities and economic development. With Japan, China and Indonesia propelled to the top of the Territory’s target market list, shifts in perspectives in the trade and investment sectors were inevitable. Main
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industries such as agribusiness, supply and services, international education and training stood out as the three main priorities for the region going forward. Brian expounded on the importance of a stable government, human capital developments and strong international ties, as depicted by the formulation of free trade agreements which shapes the Territory as the future economic powerhouse in the Asia-Pacific region. Delegates were also given a glimpse of the pipeline of the ongoing rail links and deep water ports expansion projects surrounding Darwin, reaffirming the NT Government’s commitment in attracting and retaining foreign investments, as well as positioning the capital as a gateway to Asia. The subsequent presentations provided an extensive coverage on several multi-million/ billion projects dominating the Territory’s mining scene, including a joint-venture panel that focused on building effective partnerships between the public and private entities. Some highly coveted discussions include the exploration for onshore ‘unconventional’ gas, best strategies in deriving mutual benefits in a mining partnership and the rise of the fertiliser industry in NT. Delivered by esteemed speakers from mining and natural resource giants such as BHP Billiton, INPEX, Rio Tinto, Santos and the like, our delegates were granted an opportunity to leverage best practices in striving towards a commercially, socially and environmentally sustainable vision.
AUSTRALIA’S C O U R T E S Y O F G O V E R N M E N T F O R E I G N A F FA I R S A N D T R A D E
CLIVE PALMER is well known as the owner of Mineralogy, the company that secured access to 160 billion tonnes of iron ore reserves in the Pilbara Ranges, as well as for his invest- ments in other natural resource companies, including Waratah Coal and Queensland Nickel. The mining magnate has invested in the exploration and feasibility studies of several iron ore projects in Western Australia since the 1980s. Profes- sor Palmer’s experience in the oil and gas industry includes the successful negotiation of a A$5.0 billion gas supply agree- ment with North West Shelf Gas Partners including BHP Bil- liton Petroleum (North West Shelf) Pty Ltd, Chevron Australia Pty Limited, Japan Australia LNG (MIMI) Pty Limited, Shell De- velopment (Australia) Pty Limited, Woodside Energy Limited and BP Developments Australia Pty Limited in 2000. PETER BOND is an eminent resources businessman, who has achieved success in Australia and overseas. His unique knowledge of the coal industry grew from his engineering background, and most recently Bond has been key to the suc- cess of Linc Energy Ltd (where he was appointed to the Board in October 2004) since it listed on the ASX in May 2006. He currently serves as the company’s Chief Executive Officer and Managing Director. Mr Bond’s involvement in various suc- cessful resources companies has earned him a reputation in the mineral processing industry, particularly for innovation and efficiency. GINA RINEHART is arguably Australia’s most iconic busi- nesswomen. Rinehart joined the Hancock Group as a Personal Assistant to her father, the late Lang Hancock - discoverer of the world’s largest iron deposit in the Pilbara. She studied Economics at Sydney University and during this period gained an early appreciation of the Pilbara iron ore industry. In 1992, Rinehart became Executive Chairman of Hancock Prospecting Pty Limited (HPPL) and the HPPL Group of companies. Rine- hart, via Hancock Prospecting, holds a 50 per cent stake in the Rio Tinto operated joint venture at the Hope Downs mine, which produced over 30Mt of iron ore in 2012. Rinehart is committed to expanding potentially world class mine devel- opments in the Hancock portfolio. ANDREW FORREST is one of Australia’s most renowned mining identities. Former stockbroker turned mining entrepreneur, ‘Twiggy’ was instrumental in the foundation of Fortsecue Metals Group (FMG), where he remains Chairman. Forrest played a pivotal role in developing FMG’s Pilbara Iron Ore and Infrastructure Project and other major deposits at Mount Nicholas, Christmas Creek, Cloudbreak, and Tongolo. He transformed FMG from a small cap explorer into a larger iron ore exporter in the Pilbara region than BHP Billiton and Rio Tinto. Forrest also founded Anaconda Nickel (now Minara Resources) in his early thirties, which has since expanded to become one of Australia’s largest mineral exporters at the Murrin Murrin Joint Venture nickel project in Western Australia. DON ARGUS is one of Australia’s most respected busi- ness leaders in mining and finance. He is renowned for his achievements in international business. The former BHP Billiton Chairman and National Australia Bank chief execu- tive was largely responsible for leading and overseeing BHP’s merger with mining giant Billiton in 2001. ‘The Don’ held his position as Chairman at BHP Billiton for over a decade. When he was appointed in April 1999 the market capitalisation of BHP was ~$17 billion; at the time of his retirement the market capitalisation of BHP Billiton was ~$227 billion. Argus was made a Companion of the Order of Australia for eminent service to business and commerce through leadership in the mining and finance industries in 2010. SIR ARVI PARBO is known as ‘the living legend’ of min- ing. He has been a well-respected mentor in the mining indus- try for more than 50 years, beginning in 1956 when he joined the Western Mining Corporation. Sir Arvi was later appointed Chairman and Managing Director of WMC Ltd, leading the company through its greatest exploration phase in the 1970s. In 1990 he retired as executive Chairman of WMC, but con- tinued to serve as Non-Executive Chairman, before retiring in 1999. Sir Arvi’s contribution to mining included roles as Chairman of Alcoa of Australia, Chairman of The Broken Hill Proprietary Company and Chairman of BHP. He was awarded a Companion of the Order of Australia and was President of the Australasian Institute of Mining and Metallurgy and Presi- dent of the Australian Academy of Technological Sciences and Engineering. TREVOR SYKES is one of Australia’s leading finance writ- ers, prominent author and historian. He is best known as the creator of the Australian Financial Review’s Pierpont column, which began in 1972, and has influenced financial markets for decades. He has won various national awards, including Australia’s highest prestige award for business literature the Ashurst Business Literature Prize for his latest book - Six Months of Panic. The book offers insight into the Global Financial Crisis and its impact on Australia. Sykes was a Non- Executive Director of AusTex Oil Limited and a Nonexecutive Director of Copper Range Ltd. He currently serves as a mem- ber of SA Mining & Petroleum Expert Group, which advises the Premier on resource development.
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Green Paper on Developing
Northern Australia Our envIrOnmenT Is cOnsTAnTly chAngIng. nOrThern AusTrAlIA Is grOWIng, prOvIdIng A sOlId plATfOrm fOr mOre develOpmenT. neW OppOrTunITIes Are emergIng ThAT plAy TO ITs sTrengThs, mAkIng ThIs The rIghT TIme TO reAlIse The full pOTenTIAl Of The nOrTh. northern Australia is close to large and growing economies in Asia. By 2020, more than half of the world’s middle class will be in Asia, and will seek quality food and access to reliable energy. They will spend more on services, including health, education and aged care, and are more likely to pursue international travel than ever before.
Improving expertise in tertiary education, research and development, and training is driving change in northern Australia. We could expand our farming and agricultural industries, including aquaculture, to add to the diversity of the northern Australian economy. Our varied communities are an important feature of the north and Indigenous Australians are integral in shaping all of these opportunities. Indigenous Australians are already involved in mining, defence, agriculture, environmental management and tourism, providing a strong foundation for further Indigenous economic development.
darwin is closer to Jakarta than to sydney and the closest major city to darwin is dili, making it easier to access these markets from northern Australia than from southern cities. northern Australia has long established resources, energy, agriculture and education sectors, which continue to provide new opportunities. northern Australia can support the world’s emerging energy needs, drawing on its rich and diverse resources.
The region’s unique environmental assets are found nowhere else on earth. As well as supporting the multi-billion dollar tourism industry, the region’s natural landscapes are integral to the lifestyles of northern Australians.
Australia’s long term security and regional stability depends on northern Australia, particularly through defence and border security as well as through the protection of industries, the environment and communities from exotic, pests and diseases.
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Why A green pAper?
WhAT Is The green pAper?
The development of northern Australia is a priority for the government. A growing northern economy benefits all of us through investment, infrastructure, jobs and services.
The Australian government has mapped out the opportunities and challenges facing the north in its green paper on developing northern Australia. A green paper gives businesses, individuals and communities an opportunity to help shape the government’s approach to the north.
The green paper reminds us that northern Australia is one of the unsung heroes of our economy. fifty five per cent of Australian exports were shipped from northern ports in 2012-2013 and agricultural production in the north was worth over $5 billion in 2010-11.
The government has identified six possible policy directions in the green paper to develop northern Australia and the sorts of actions that could deliver them. We are asking for your views about these to help shape the government’s policy directions for northern Australia over the next two, five, 10 and 20 years.
The north enjoys geographic advantages from its proximity to a fast growing Asia, but it is widely accepted we need to do more to achieve the full potential of northern Australia.
Six poSSible wayS to develop northern auStralia
delivering economic infrastructure including through planning and prioritising projects and identifying effective ways to fund and finance them, particularly through leveraging private sector investment improving land use and access including through more flexible and longerterm tenure, greater consistency across jurisdictions, new ways for Indigenous Australians to use their land for development, efficient native title processes and more accurate information improving water access and management including through better understanding of systems, planning and investing in new infrastructure (such as dams) and reforming water management and planning, including functional water markets promoting trade and investment and strengthening the business environment including through boosting population, improving labour availability, cutting red tape and increasing trade, especially with Asia fostering education, research and innovation including through developing research networks, improving local workforce and industry skills and boosting access to international education and training markets enhancing governance including through better coordinating government and non-government activities, greater engagement with the north and building local capacity.
WhAT dOes IT meAn fOr me?
mAke A suBmIssIOn
Online: http://northernaustralia.dpmc.gov.au By mail: northern Australia Taskforce department of the prime minister and cabinet pO Box 6500 cAnBerrA AcT 2600, Australia
We welcome feedback, suggestions or formal submissions on the green paper from the public, industry, peak bodies and community groups by 8 August 2014. feedback will help shape the White paper on developing northern Australia due at the end of this year.
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THE HON WARREN ENTSCH MP
Federal Member for Leichhardt Chair of the Joint Select Committee on Northern Australia
N ORT H ER N AUSTR ALI A
COMMITTEE UPDATE
Chair of the JSCNA Warren Entsch meeting well-known NT entrepreneur Sid Rusca (second from right) and members of the Rusca Brothers Group team.
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WE’RE now at the pointy end of the inquiry looking into how government can enable the capturing of economic and social opportunities in Northern Australia, and I’m embracing the sense of optimism that’s coming through. There’s a collective intention that something is going to happen, which is absolutely critical.
RESIDENTS of remote communities such as Borroloola and Ngukurr have grabbed opportunities to work in the resources field.
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Members of the Joint Select Committee on Northern Australia visited Borroloola and Bing Bong Port in the Gulf to see first-hand the indigenous employment opportunities in the resources industry.
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t’s been many years since the genesis of this focus on Northern Australia. I recall attending the first Northern Australia forum in Katherine, convened by Senator Macdonald in about 2002. Subsequently I was a member of the Northern Australia Land and Water Taskforce convened in 2006-7. Then, in 2013, we saw the Coalition make a commitment that in Government, a White Paper would be produced identifying opportunities in Northern Australia and pinpointing how these can be converted into government policy. The discussion Green Paper was launched by Deputy Prime Minister Warren Truss in early June, identifying six broad policy directions that could be pursued in the White Paper. Tabling our Interim Report on June 16th, I outlined the Committee’s progress so far – which included receiving 287 submissions and 49 exhibits. We’ve undertaken a massive program of travel, totalling six weeks with more than 20 hearings and inspections, covering locations from Perth to the Pilbara, Broome and the Kimberly in WA, from Alice Springs to Darwin, Katherine and Nhulunbuy in NT, and from Mackay to Cairns, Torres Strait and Weipa in QLD. The hearings have certainly been an eye-opener, and the submissions a fascinating snapshot of what people want the North to look like. Mid-way through its hearing program, the Committee’s visit to outback Queensland was postponed due to Cyclone Ita and the visit rescheduled for early July. The Committee also held additional hearings in Darwin and Brisbane due to the high interest from those areas. The combination of these factors has meant that the committee will now be presenting its report to the Parliament in the first week of September.
(L-R) JSCNA Chair Warren Entsch, Member for Solomon Natasha Griggs, and Sonia Federow from the Department of Prime Minister & Cabinet hear about the opportunities in the gas industry from ConocoPhillips’ Robin Antrobus and Steve Thatcher.
It’s been exciting to hear about key infrastructure proposals that would open up possibilities in Northern Australia. Two road projects that really stand out are the completing of sealing of the Hann Highway in QLD and the Tanami Track in NT and WA. These have come up consistently and would have benefits right across the North. The missing rail link between Tennant Creek and Mt Isa is a priority for improving connectivity between Cairns/Townsville and Darwin; the challenge being the different gauges. It does however illustrate the need for elements of standardisation right across Northern Australia. A key element in developing the North is that we firstly need increased population, and secondly, to capture the very significant workforce within our indigenous communities. A real success story that we’ve come across is Rusca Brothers Group, a family business based in Borroloola that is 100 per cent Indigenous owned and staffed and has seen incredible outcomes through its training programs. This is not tokenistic – it’s a serious operation running a critical service and paying its workforce top dollar. People like Sid Rusca, his sons Robbie and Shannon, and their dedicated team are the ones who will identify prospects for indigenous employment and make them happen. We need to be looking at their positive contribution as a model for harnessing this workforce.
Whether in the Pilbara or Mt Isa, Borroloola or Broome, the commonality of issues will certainly make it easier for the Committee to provide clear recommendations to the Government’s White Paper. We have already identified significant opportunities, which include: • the expansion of the resources sector, with a number of areas awaiting exploration or development; • more intensive agriculture, expanded opportunities for horticulture, aquaculture, and more integrated production and processing of livestock; • the growth of tourism, both domestic and international; • increased education with provision of opportunities for international students; • research on health and energy and food production in the tropics; • the potential for a more northerly focus of Australia’s defence forces, building on current assets in North Queensland and the Northern Territory; and • significant opportunities to maximise development by working with the traditional owners of the land and sea.
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continued from previous page NORTHERN AUS TRALIA
Ship loading up at the ConocoPhillips Darwin LNG facility ready for export.
COMMITTEE UPDATE
Committee members met carpentry and joinery apprentices at the Kimberley Training Institute Campus.
At the same time, our inquiry has identified some major impediments to economic and social development, including: • the absence of economic infrastructure, particularly water, power and transport infrastructure, which in turn impacts upon opportunities for economic development and liveability; • the cost of power and water, which impacts on the cost of doing business and living standards in a range of sectors; • access to telecommunications; • land tenure arrangements, which can affect security of investment and options for development; • lengthy approvals processes, which can add to the time and cost of developments and impede outcomes; • inconsistency of processes and requirements between jurisdictions across the region; • high development costs, largely as a result of remoteness and the need to import most production elements; • availability and affordability of insurance; • the need to mitigate against weather risks; and • high cost of service delivery to small and dispersed populations.
Danial Rochford, CEO of Whitsundays Marketing and Development (far right), hosts a site visit at Airlie Beach (L-R) Senator Barry O’Sullivan (Qld), Warren Entsch MP, Capricornia MP Michelle Landry MP, Senator Ian Macdonald (Qld) and Dawson MP George Christensen
N O R TH ERN AUST RAL IA
COMMITTEE UPDATE continued from previous page
An example of ‘green tape’ gone mad was highlighted by Pacific Reef Fisheries at Ayr, which has spent $4 million and 13 years on Environmental Impact Studies for a new aquaculture project. They are still trying to get the approvals they need, which is just ridiculous. It’s no wonder there hasn’t been a new aquaculture project in Northern Australia for 13 years. Another issue is the out-dated zone tax offset arrangements. I recently tabled in Parliament a 4000-signature petition organised by the Mt Isa City Council, which calls for an increase in the rebate. At its current rate it’s worthless given the high cost of living in remote mining communities – up to $2400 a week in the Pilbara. There’s also the issue of heavily skewed taxation benefits of the FIFO program and its negative impact on regional communities. Notwithstanding these impediments, the Committee believes there is a way to sustainably develop the North. In the second half of our inquiry, we’ll identify key development projects, strategies, and ways by which governments can stimulate economic development and remove impediments to growth. I’d like to thank all those who have made submissions, provided evidence at the public hearings and helped the Committee during our extensive inspection program. It’s made a huge difference getting on the ground and hearing about local projects, from local people.
I look forward to keeping you informed with our progress. The Hon Warren Entsch MP
Federal Member for Leichhardt Chair of the Joint Select Committee on Northern Australia
There was a high level of community interest at the public hearing held on Thursday Island in the Torres Strait.
Committee Chair Warren Entsch and Durack MP Melissa Price learn about the opportunities in growing Sandalwood from Malcolm Baker, Operations Strategic General Manager, at the TFS Sandalwood plantation near Kununurra.
Committee Chair Warren Entsch and Durack MP Melissa Price inspect core samples of zinc, silver and lead at a proposed mine site near Kununurra.
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A Northern view is what you see when looking from Canberra while a Southern view is seen from Jakarta.
Support for ‘Northern Development’ is driven by the economic opportunities offered by growth and development to our north and coupled with the deep Australian desire to develop its sparsely populated, remote and resource rich northern areas. Australians residing in the North live and breath the dream but without the political will of the South the dream remains wishful thinking and just another chapter in a long story about northern development. In fact this should be less about ‘north’ and ‘south’ and more about Australia’s coming of age and the nation’s role in our region. Clearly this is an exciting time but it is important to recognise ‘Northern Development’ is not a new idea. This theme has excited politicians and influenced public policy from the beginning of settlement; from the establishment of Fort Dundas as a military outpost in 1824 through to Northern Territory Self Government in 1974. And so it continues today. Today however, history has favoured us with a unique opportunity. The northern half of our nation is positioned, populated and poised to take the step others have dreamt of, a step into the reality of strong economic growth and political change to Australia’s north. After comprehensive research across the archipelago, Global management consulting firm the Boston Consulting Group has predicted that the Indonesian middle class may double to reach 141 million people by 2020. 34
First is to recognise that though this agenda is driven by sound economic factors the reality is that people don’t live in ‘economies’ and societies are not ‘marketplaces’.
TERRY MILLS Terry and his wife now live in Jakarta the world’s second largest city with a population of over 28 million in the greater city area. As well as operating his own business; Midian International, former Chief Minister Terry Mills continues to serve the Northern Territory as Commissioner to Indonesia and ASEAN.
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CONTINUED... This growth means that Indonesia’s buying power would also rise rapidly as household incomes increase. As household incomes increase and populations rise the securing of sufficient resources to support this growth dominates the thinking of our neighbours. This has been a dominant theme in the 2014 Indonesian presidential election. While the growth in the middle class in Indonesia and across Asia leads to stronger and more stable and robust economies in our region it forces change to existing markets to meet these new demands. So how does this translate from comforting words and inspiring rhetoric to become dynamic and tangible? First is to recognise that though this agenda is driven by sound economic factors the reality is that people don’t live in ‘economies’ and societies are not ‘marketplaces’. This is far more than a simple ‘supply and
demand’ equation. This is about people and how they cooperate across culture to achieve mutual international benefit rather than to compete for private national advantage. From the earliest days of Self Government in the Northern Territory it was recognised that relations come before trade as the aptly titled ‘Department of Asian Relations and Trade’ illustrates. If this were a simple supply and demand equation our largest neighbour would import most of its agricultural requirements from Australia. Apart from beef it doesn’t. Soy bean is a staple in the diet of 250 million Indonesians yet it imports almost 85% of consumption from the US and Canada. A similar story applies for rice, sugar, peanuts other foods and natural resources. Australia as an enormous but relatively sparsely populated land mass adjacent to a much smaller but heavily populated island chain; illustrates the
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This is far more than a simple ‘supply and demand’ equation. This is about people and how we cooperate across culture to achieve mutual international benefit rather than compete for private national advantage.
economic opportunity perfectly. The challenge is to convert this to reality; from talk to fact. A starting is to move from talking about the ‘market place’ and work to understand the ‘market place’. So while Australians talk of northern development this ‘national conversation’ of 25 million participants must include the 600 million ASEAN neighbours who are listening in. It is important for Australia’s development as a nation that the resource rich but sparsely populated north is developed but apart from logistical challenges a greater problem presides. Canberra hosts 150 members in the House of Representatives yet only 10 of those members represent people all or partly in ‘Northern Australia’. Yet a staggering 40% of those 150 politicians represent the citizens of Sydney or Melbourne! While the ‘north’ may be regarded as remote from the ‘south’ it is closest to the largest population in
South East Asia which is recognised as one of the world’s strongest emerging economies. A deeper understanding of the ‘economy’ and ‘market place’ to Australia’s north is the link to couple Australian northern development to enormous potential and move from talk to reality. A practical tool to help achieve this is for Australians to carefully consider what the ‘southern view’ of northern development may be. What does ‘Northern Development’ look like through the eyes of the 600 million members of Australia’s 10 ASEAN neighbours? How relevant is it to them and their needs? This question helps move us from broad rhetoric and closer to specific and meaningful responses to a market that is as sophisticated and nuanced as any market anywhere. A ‘market place’ that actually knows more about us than we know about them.
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I N V E S T M E N T
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NT AGRICULTURE BY DARYL GUPPY
SOME TIME AGO I HAD A LUNCH CONVERSATION WITH WHAT WE WOULD CALL A AGRI-BUSINESS OWNER FROM NINGXIA. HE GREW VEGETABLES ON A LARGE SCALE FOR EXPORT TO THE RESTAURANTS IN HONG KONG. HE WAS FACING A GROWING SET OF PROBLEMS THAT WAS COMMON ACROSS THE CHINESE AGRICULTURAL SECTOR. He needed to mechanise his operations. The population drift to the city was depriving him of the labour he needed for what had previously been labour intensive practices. Around 25 million Chinese farmers move to the cities every year. When labour is cheap and abundant there is no pressure to improve long established agricultural practices. A field that is easily harvested by 100 hands is a much more difficult task with 30 hands. The solution is mechanisation, but that brings with it an economic efficiency of scale. Mechanisation is only economic if farms are large – much larger than the current size of Chinese farms. The north of Australia faces problems that are similar in many ways to those faced by the agribusiness in the remote province of Ningxia. It’s a problem of low populations, larger agriculture scale, remoteness, the need for investment and the associated problems of logistics infrastructure. In February the Chinese State Council released guidelines that suggested China will no longer aim to satisfy the demand for grain through domestic production alone. Grains include rice which we commonly associate with China. The picturesque scene of extensive small-scale rice paddies require harvesting by many hands but the young hands have gone to the cities. The scale and nature of Chinese agriculture in southern China must change. China’s shrinking farming capacity and its archaic agricultural policies will hamper Chinas ability to satisfy food demand. Grains also include the extensive production of wheat and oats in northern China where the cuisine is wheat based. The northern plains of China support wheat and oats and soybeans. Landholdings are larger but mechanisation and aggregation is still not as well developed as similar agricultural environments in Western countries. The change from farming to agri-business
Restaurant chains are adding more meat to their menus. This northern-style restaurant makes extensive use of beef and mutton
practices is held back by land ownership issues. For China to be self-sufficient with agricultural production, it would have to feed 20% of the world’s population with only 10% of the world’s arable land and 6% of global water resources. The need for reliable suppliers of safe food is a major challenge. There is much talk in Australia of the North becoming the food bowl of Asia but this is only possible with increased investment in the NT agriculture sector. These three threads from the farmer in Ningxia, North Australia agricultural development and the Chinese State Council, are weaving a pattern of opportunity for investment in agriculture related industries. The first area is the industries involved in the export of labour-replacing agricultural technology. This is more than just the tractors and harvesters produced by John Deere and others. Increasingly its about water control and quality, about the supply of potash fertilisers and the skills around environmental protection and recovery from land degradation. Turning the plains of Inner Mongolia into more efficient producers of beef and mutton protein requires better knowledge of range land management techniques. Here is an opportunity for NT land management services and for joint ventures. The second area is the Western agri-business producers. They will benefit from increased export demand and the potential for a sustained rise in prices for agricultural commodities. Satisfying this demand is not as simple as it sounds. Shaping the export product to satisfy customers preferences is critical. Chinese meat cuts are very different to those used in Australia. NT agricultural produce may need to target high niche markets until production can better meet demand.
This cut is different to Australian cuts of meat.
Western producers will need to increase their efficiencies to meet this increase in global demand. Sections of Western agri-business are very advanced, but much of the Western agricultural production remains in the hands of the small scale family farm. These are often starved of capital and under threat of foreclosure from creditors. An expansion of investment in the NT is required to realise the potential of meeting this global demand. Recent changes to the Pastoral Lands Act allow for more targeted development and investment. The third area is the development of agricultural projects through Chinese investment. The West Australia Ord River irrigation scheme will be significantly expanded by long term investment from the Shanghai stock exchange listed Chinese agricultural firm Shanghai Zhongfu. Countries like Australia lack the investment resources to develop areas such as North Australia and must seek co-operative investment partnerships with Chinese investors to develop these agricultural resources to meet the increased demand. A significant barrier to foreign investment is the perception that there is too much Chinese investment in agriculture in Australia. China ranks as the 9th largest foreign Investor in Australia. The USA has 10 times more the foreign investment stock than China. Chinese investors own less than 1% of Australian farming land and agri-investment is less than 2% of total Chinese investment in Australia. The biggest investors in Australian agriculture are Canada (25%), UK (21%) and USA (11%), and China (0.2%). Much of Australian” agri-farming is already foreign owned so the majority of large scale agriculture activity is “foreign to foreign” business transactions.
In a Shanghai supermarket the middle row has Australian cuts of beef. The upper and lower rows have Chinese cuts of beef.
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Beef is not served as a steak.
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NT AUSTRALIA BY DARYL GUPPY
IN SHANGHAI IN APRIL PRIME MINISTER ABBOTT BORROWED THE CHIEF MINISTERS MANTRA, DECLARING THAT AUSTRALIA IS OPEN FOR BUSINESS. PRIME MINISTER ABBOTT AND TRADE MINISTER ANDREW ROBB REPEATED THE MESSAGE FREQUENTLY AT AUSTRALIA WEEK IN CHINA FUNCTIONS ACROSS CHINA. Business leaders including Kerry Stokes, Andrew Forrest, James Packer, Andrew Harding, Mike Smith, Gail Kelly and Ian Narev representing over half the total value of the Australian Stock Exchange were in China to support the Prime Minister. This was the biggest combined delegation ever to accompany a Prime Minister overseas. The sheer size of the delegation accompanying Trade Minister Robb to China at the same time as the Prime Minister’s delegation strongly reinforced the Open For Business message. Northern Territory delegates included the NT President of the Australia China Business Council, Daryl Guppy, Tourism NT Chair, Michael Bridges, Darwin business man Boon Wai Lim and Executive Tourism NT Team members, Suzanne Morgan and Scott Lovett. The broader Australian delegation visit was a success and the Prime Minister now has a clearer idea of the politics in China and its complexities. Prime Minister Abbot encouraged Chinese investment into infrastructure projects. Minister Robb suggested additional incentives for investment into Northern Australia. At a national level, the key message and opportunity was the oft- repeated invitation from Australia to China for infrastructure investment and this relates particularly to the Develop the North strategy. The Prime Minister Open For Business message was clearly aimed at attracting Chinese investment capital. The Prime Minister acknowledged that we
now appreciate that most Chinese state-owned enterprises have a highly commercial culture. This was a significant step forward towards revitalising the stalled Free Trade Agreement talks. The reassessment of State Owned Enterprises as commercial operating units makes Foreign Investment Review Board (FIRB) approvals easier and remove investment friction. This is the most significant policy change. Other important steps included the suggestion that the FIRB thresholds for agriculture investment at $15 million and agribusiness investment at $53 million would apply to all and not just China. This is very significant for agricultural project opportunities in the Northern Territory because it makes it easier for Chinese investors. Prime Minister Abbott lifted the Australia/China bilateral relationship to a new level so makes it easier for the NT to work in China. Minister Robb suggested the potential for preferential FIRB treatment if investing in North Australia agriculture and infrastructure projects. The Chinese investment environment continues to change and this offers more opportunities with the Open for Business approach taken by Australia. These changes include a recognition of the role of the market in the allocation of resources. The Party will now give equal weight to State Owned Enterprises and Private Owned Enterprises. Changes also include the opening up the capital account starting with the Shanghai Free Trade Zone. This means investment can now be sourced
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from State Owned Enterprises, Private Owned Enterprises and corporates. Investment flows out of China are now more diverse and flow more easily. These changes enhance the role Australia can play as a regional Chinese Yuan trading hub. The Yuan is shifting from a trade settlement currency to an investment currency. This is a very significant shift in Yuan funds movement and Shanghai Free Trade Zone is designed to facilitate this change. This impacts on the way investment is attracted into the Northern territory. Daryl Guppy participated in the Finance and Investment stream of the delegation. He has worked with and advised the NT Government on China investment and engagement strategies. He is widely recognized in China as an expert on Chinese financial markets and has weekly columns in Chinese financial media. He was surprised to find that many of the large Australian corporates are ill-prepared to work in the China market as they lack the necessary knowledge. The NT is well positioned to continue work in China under the new investment rules because they have a better understanding of the Chinese business and political environment. Having expertise and knowledge of working in China is a competitive advantage for NT Government. Guppy has identified several opportunities in the development of new investment instruments to bring together the needs of Chinese asset managers and the emerging opportunities with
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WEEK IN CHINA 3
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1 Australia as a Yuan trading hub. The NT branch of the Australia China Business Council will host a Steps Towards Northern Investment for chinese investors conference in November to introduce China fund and asset managers to investment options in the NT and to outline the timetable for development of projects. Australia Week In China included a focus on tourism and investment so this was an relevant platform for Northern Territory participation. The Chinese marketplace is one where relationshipbuilding is critical to success so a significant investment in identifying and nurturing relationships is required. The participation in this high profile event ensured the NT is competitive and considered as a significant Australian player growing business in and from China. Successful meetings were held with SilkAir China in Chengdu and Qantas in Shanghai. These were combined with travel trade partner meetings with China Youth Travel Service in Chengdu and CTRIP in Shanghai. Tourism is implementing strategies for the Chinese tourism market and the higher level Chinese business and independent traveller market. Tourism NT Chair Michael Bridges used the events to help revise the organisation's China Market Activation Plan II has been released for industry feedback. Darwin businessman Boon Wai Lim participated in the Health and Senior Living stream of the delegation. This was an extensive 5-day program in Beijing and Shanghai and included a mix of investment seminars, market briefings, site visits and informal networking sessions. Site visits to senior living projects included Suncity in Beijing and Cherish Yearn aged care facility in Shanghai Key Chinese government officials delivered some key messages to delegates on the country’s initiatives, regulations and policies, in particular those critical for Australian businesses who desire to invest in China. A consistent message was that it was critical for Australian businesses to undertake proper due diligence, market research and seek professional advice prior to making any investment decisions to enter the Chinese market.
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Prime Minister Abbott gives the keynote speech at the Australia Week in China lunch in Shanghai. L to R. Martine Letts, CEO, Australia China Business Council. Daryl Guppy, President NT Branch, Australia China Business Council. Chen Jing, Chief Representative Officer, Guppytraderscom, China at the financial services address in Beijing.
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Guests assemble for the Prime Ministers lunch and keynote speech, Shanghai
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Daryl Guppy ACBC NT President and Elmer Funke Kupper, CEO, Australian Stock Exchange
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Boon Wai Lim Save Mart Pharmacy and delegates at Suncity Beijing
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Boon Wai Lim Save Mart Pharmacy at Prime Ministers lunch and keynote speech, Shanghai
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Pearl of the Orient tower, Shanghai
LAWRIE
Leader of the Opposition
NORTHERN TERRITORY GOVERNMENT
TERRITORIANS ARE KNOWN FOR THEIR ENGAGING, FRIENDLY CHARACTER AND IT IS THIS STRENGTH THAT CAN BE AN ASSET FOR SOCIAL AND ECONOMIC GROWTH. THE NATURAL TENDENCY FOR US TO EMBRACE THE UNKNOWN WITH WARMTH AND COMPASSION TRANSLATES ACROSS SO MANY PARADIGMS AND CAN BE WORKED TO OUR ADVANTAGE.
Promoting ourselves in the competitive tourism market works when we show the people of the Territory as the diverse, happy and friendly characters willing to share our experience in this vast, natural beautiful landscape from tropical savannah to intriguing desert steeped in centuries of Indigenous culture. Our competitive advantage is our unique natural environment and sense of frontier but it is nothing without the diverse melting pot of people who call the Northern Territory home and welcome our many visitors with a warm smile. There is an abundance of reasons to visit the Territory – our nation’s gateway to Asia provides a small yet dynamic capital city of Darwin that showcases investment opportunities in abundance. Economic growth is being fuelled by the oil and gas industry developing around the LNG plants at Middle Arm and our newly developed Marine Supply Base that will service and supply the exciting gas fields offshore to our west and north. Literally decades of economic growth is assured out of energy supply contracts being delivered from offshore fields piped to Darwin, processed and then shipped to the markets of Asia. The potential of a national gas pipeline network linking Alice Springs to Moomba is in the feasibility stages and offers the opportunity of opening up domestic gas supply to the lucrative Eastern seaboard market. Taking advantage of this opportunity is Charles Darwin University that has created significant partnerships with
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the oil and gas industry to establish the hydrocarbons institute and is seizing upon the emerging international education links into South-East Asia and beyond. Coupled with growing industrial opportunities in the Territory is the security of investment in an appreciating property market that is delivering strong growth due to residential and commercial demand. When leaders of the United States, Indonesia and China all choose to visit Darwin it is no coincidence. Our abundant resources and strategic proximity to Asia has everyone sitting up and taking notice. The United States-Australian strategic defence alliance that is now delivering US forces for training operations secures defence industry opportunities that are only just beginning. All of this is important because it provides jobs. Territorians now know that they are raising their family in a region of the world that is safe and secure yet exciting with economic growth opportunities. The challenge is to manage this growth, and while opening our doors to investment we need to ensure that Territorians get real benefits from our opportunities. We deserve the best education, health and social services that a strong economy can deliver so let’s ensure we continue to foster a harmonious and caring society alongside our economic growth. Friendly Territorians will happily keep a smile and embracing attitude to allcomers and when we share in the destiny that our beautiful and abundant Territory delivers.
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IN D U S T RY N E W S AND U PDATE S
GDF AND PGN
Indonesian gas plant prospects
ENI South China Sea exploration A production sharing contract has been signed between Eni and the China National Offshore Oil Corporation (CNOOC). The contract allows Eni to explore approximately 2000sq km of an area located off Hainan Island, in the South China Sea. It is estimated exploration will last for a 6.5 year period, with the process of exploration subdivided into three phases. Eni’s interest to further its presence within China is highlighted by the new contract. Eni has cooperated with Chinese corporations since the mid 1980s in exploration and production within the South China Sea. The location outlined in the contract, referred to as ‘the block’, has previously yielded oil and gas discoveries as a result of past drilling.
Indonesia could be the site of a new on-shore gas processing plant. French energy group GDF Suez has signed a draft agreement to develop a plant in northern Java as part of a long-term strategic partnership. The on-shore methane terminal will convert liquefied natural gas back into gas, pending a successful feasibility study by Indonesian company PerusahaanGas Negara (PGN). The project marks a new step in GDF Suez’s development in Indonesia, which has a fastgrowing economy in the South East Asia region. “This new agreement represents a significant milestone in developing gas infrastructure projects in Indonesia,” said executive vice president JeanClaude Depail. He said the partnership was a new example “of the group’s development strategy for international gas infrastructure that will facilitate access to energy supplies for countries experiencing rapid growth.” In February, the two companies signed another agreement for training staff in the technical processes of gas handling. Last week GDF Suez announced it was reconsidering a scheme for a floating pant to liquefy gas off northern Australia, looking instead at the possibility of building an under-sea pipeline to Darwin. The off-shore Australian fields are intended to boost the drive by GDF Suez to supply gas to Asian markets. Source: AFP
SUPPORTING THE WOMEN OF PNG Australia will help survivors of family and sexual violence in Papua New Guinea by funding a dedicated support facility. The PNG Family and Sexual Violence Case Management Centre in Lae will offer women and children medical assistance, shelter and legal support as well as other associated services. The Australian Government has pledged $3-million over three years to establish the centre. It is part of the government’s ongoing commitment to combat domestic violence in PNG, which is estimated to affect two in every three women who live there. Australia has also committed to assisting the Royal Papua New Guinea Constabulary to establish new family and sexual violence units in metropolitan police stations and provide training for magistrates and law clerks to help prevent future violence. Both the Australian and Papua New Guinean governments will fund redevelopment of the Lae Angau Memorial Hospital and its family support centre. In 2010 the centre helped 530 survivors of sexual violence, including 192 children.
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IN DUSTRY NEWS A ND U P DATES
COSL
Drilling rises profits Increased drilling operations in the North Sea have led to record revenue for China Oilfield Services Group. The group has announced a target of 10 per cent further revenue growth after its net profit rose 47.2 per cent to 6.73-billion renminbi in 2013. COSL also posted a record operation revenue of 27.36 billion renminbi in 2013, up more than 23 per cent. COSL has attributed the revenue rise partly to its drilling services, for which revenue increased 30.3 per cent to 14.66 billion renminbi, following a rise in calendar day utilisation of its rigs. The rise in days followed the launch of three new drilling rigs in 2013 and the full-year operation of another two drilling rigs. In addition to the new rigs, COSL is planning to add to its existing line-up of 30 jack-up drilling rigs, 10 semi-submersible drilling rigs, four module rigs and two accommodation rigs. The company’s well services arm also increased turnover with the assistance of new technology, improving revenue 33 per cent to 6.47 billion renminbi. Revenue from the COSL’s marine support division rose 10.4 per cent to 3.25 billion renminbi, citing increased hiring rates for its chartered vessels.
PETRONAS
Second gas facility for Malaysia
EXXONMOBIL
A second floating liquefied natural gas facility to be built off the cost of Sabah in Malaysia will produce 1.5 million tonnes per annum of LNG. Petronas has awarded the engineering, procurement, construction, installation and commissioning contract for the facility to JGC Corporation and Samsung Heavy Industries. JGC will be responsible for the engineering and procurement of the LNG facilities, and Samsung Heavy Industries in South Korea will construct the hull and modular. Scheduled to start operating in 2018, the facility will be moored at the Rotan Gas Field in deep water – the first floating LNG plant over gas fields more than 1km below the ocean. JGC senior leaders have announced they look forward to the successful completion of the project. “Together with PETRONA LNG Train 9 Project awarded last year, we aim to live up to the client’s high expectations and further deepen our relationship of trust by the smooth execution of the work,” a company statement reads. “Going forward, JGC aims to become a top offshore contractor focusing on the field of floating LNG plants and will be exerting efforts to achieve this goal.”
PNG LNG production starts Production on the ExxonMobil-led PNG LNG project has commenced ahead of schedule. A statement released by the company said the milestone was achieved following several months of commissioning and start-up activities, four years after construction began. The project’s LNG plan was able to cool natural gas from the Hides fields in PNG to a temperature of -160 degrees Celsius. The projects start-up is being completed in stages, with ExxonMobil to continue increasing production until the first cargo is ready to be loaded. Industry partners have welcomed the development, including Oil Search, which has a 29 per cent stake in the project, hailing the start of production as excellent news. “We would like to congratulate the operator, ExxonMobil PNG, on this achievement,” said Oil Search managing director Peter Botten. Oil Search now expects its 2014 production to reach 14.5 – 17.5 million barrels of oil equivalent, increased from the previous guidance range of 13-16 MMBOE. Santos managing director David Knox congratulated ExxonMobil on the successful delivery. “Delivery of the PNG LNG project is a key step in Santos’ strategy to become a major LNG supplier to Asia,” he said. “PNG LNG will quadruple Santos’ LNG production once the project reaches full output.” PNG LNG is expected to produce more than 9 trillion cubic feet of gas in its lifetime. The facility is an integrated development comprising gas production and processing facilities in the Southern highlands, Hela, Western, Gulf and Central provinces of PNG. The facilities are connected by more than 700km of pipeline.
JETSTREAM
Queensland invention aids energy extraction A Queensland company has designed a cutting-edge solution to aid resource extraction and increase worker safety. Jetstream is hydrocarbon-free polymer friction modifier solution, and an initiative of of fine particle and water management group, Reynolds Soil Technologies. The oil-free friction reducer increases flow rates in water and brine-based fracturing applications, using RST’s polymer dispersive technology for aqueous fracturing fluid. Jetstream contains no hydrocarbons, mineral oils or surfactants – reducing environmental risk and improving the safety of workers. It is also supplied ready for use, eliminating the need for mixing or dissolving equipment onsite. RST operations and technical director David Handel said other products being used to reduce friction, including standard polymer emulsion and powders, were sometimes neither safe or effective. “Polymer emulsions generally contain a mix of hazardous materials including surfactants, hydrocarbons and mineral oils which have many environmental constraints, while powders have significant limitations as they require specific equipment as well as large energy and water supply to ensure the product is properly diluted and applied,” he said. “Jetstream effectively changes the rheological properties of the fracturing fluid, increasing flow rates without increasing operating and surface treating pressures and as a result extracts oil and gas from great depths, using much less hydraulic energy generally needed for pumping.”
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Grant Fenton, CEO The organisation represents the Mango, Banana, Melon, Asian Vegetable, Vegetables, Nursery Gardens, Hay and Fodder, Tropical Fruits, Ornamental Flowers and Organic Growers. The organisation’s key focus is to act as an advocate for farmers, representing the industry locally, nationally and internationally.
The Northern Territory Farmers Association (NT Farmers) is the peak body for the Plant Industry, representing around 10,000 hectares, or around $280M worth of production.
There are some other big-ticket items which the organisation focuses on including; Water Resource Management; Land Management; Workforce Development; Workplace Safety; and Industry Development. However, the biggest focus for the organisation is representing the point of view of our industry in the discussion about Northern Development. To this end, NT Farmers will conduct the inaugural Northern Australia Food Futures Conference (www.northernfoodfutures.org. au) This innovative conference will focus on what the future holds for all three precincts; WA, Qld and the NT. This is the first major northern agricultural conference in 30 years. 46
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At Water Dynamics, we understand the importance of irrigation– and getting it right. We appreciate the delicate balance of providing the right amount of water to the right area at the right time, and doing that as efficiently as possible to maximise yield. At Water Dynamics, we listen to your individual requirements and work with you to determine both the equipment needed and savings targets to deliver the right solution for you. We can also advise you on the best system to suit your needs, whether it is centre or lateral move pivot, hand shift, side roll, travelling irrigator, hardhose or any other style of broad acre irrigator to guarantee maximum operational efficiency. Ultimately, Water Dynamics can help you achieve substantial savings across labour, power and water usage.
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CREATING A FERTILISER INDUSTRY IN THE NORTHERN TERRITORY
Chris Tziolis the Managing Director of Rum Jungle Resources spoke at the recent Developing the Territory Conference about the potential for a fertiliser industry in the Northern Territory.
» » » » » »
Global population growth and an increasing middle class will create growth in demand for food and higher value foods across the globe and in particular in the Asian region There will be a need to substantially increase harvested land across the world. The regions of the world where under utilised arable land and water are available include, Brazil, parts of sub-Saharan Africa, parts of SE Asia and Australia. Increasing agri-business investment and the need for higher crop yields per unit of arable land will underpin growth in demand for fertilisers in the Asia Pacific region, including Australia if we can realise the agricultural opportunity The Northern Territory potentially has most of the ingredients to create and sustain a fertiliser industry servicing the needs of Australia, Asia and potentially eastern subSaharan Africa The creation of this industry in the Northern Territory is another leaver in developing the north by enabling regional economic development and sustainable local and indigenous employment in Central Australia, potentially around the Tennant Creek region Whilst the opportunity exists, there are a number of challenges to overcome to ensure that the providers of global fertiliser investment capital, see the Northern Territory as the place to make the next wave of investment. We need to ensure we are competitive on a global stage!
Unit 20, 90 Frances Bay Drive, Stuart Park, Northern Territory 0820 • GPO Box 775, Darwin, Northern Territory 0801 T: (08) 8942 0385 • F: (08) 8942 0318 • International T: +61 8 8942 0385 • F: +61 8 8942 0318 E: info@rumjungleresources.com.au • www.rumjungleresources.com.au 48
Chris Tziolis
Managing Director Rum Jungle Resources
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BRINGING THE INGREDIENTS TOGETHER TO REALISE THE BENEFITS
THE AMMAROO PHOSPHATE RESOURCE IS RELATIVELY SHALLOW AND SHOULD ENABLE FREE DIGGING OF RUN OF MINE ORE Ammaroo 30 percent phosphate
THE FERTILISER VALUE CHAIN – MEETING THE NEEDS OF FARMERS IN AUSTRALIA AND THE REGION Phosphate Ore
Phosphate Concentrate
Sulphur
Phosphoric acid
Triple Super Phosphate (TSP)
Sulphuric acid
Single Super Phosphate (SSP) Ammonium Phosphate (MAP/DAP)
Power generaCon Natural Gas/ Coal
Synthesis gas
Urea
Ammonia
Carbon dioxide
Potash
NPK
Potash Concentrate
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THE KARINGA LAKES HAVE THE POTENTIAL TO PRODUCE POTASSIUM SALTS (POTASH)
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BRINGING THE INGREDIENTS TOGETHER TO REALISE THE BENEFITS
DARWIN
ph Sul
MATARANKA
Mi d dle t (ra
Eas il ba
Product goes north through Darwin for northern Australian and Asian markets
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INGREDIENTS FOR DEVELOPMENT OF A GLOBALLY COMPETITIVE INTEGRATED FERTILISER PRODUCTION INDUSTRY (NITROGEN, PHOSPHATE AND POTASSIUM NPK) IN THE NORTHERN TERRITORY
√ Efficient and cost effective transport logistics chains ? Access to appropriately skilled labour
LAKE HOPKINS POTASH
ea nia /Ur mo Am
LAKE MACKAY POTASH
AMMAROO PHOSPHATE
for
√ Access to significant end user markets
TENNANT CREEK Phosphate and NPK fertiliser complex
Product goes south to southern Australian markets
Gas
? Access to competitively priced inputs such as sulphur
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√ A competitively priced and plentiful supply of natural gas for the production of nitrogen based fertilisers
cklo
√ Economic sources of phosphate and potassium minerals
ALICE SPRINGS ANGAS DOWNS KARINGA LAKES POTASH
THERE ARE A NUMBER OF ECONOMIC BENEFITS THAT COULD ACCRUE FOR THIS SORT OF DEVELOPMENT • Theoretical development producing 1Mtpa DAP/MAP, 1Mtpa of phosphate rock concentrate, 500ktpa Urea, 200ktpa Sulphate of Potash and 100ktpa Di calcium phosphate (animal feed) - Approximately US$1.0 billion in annual revenue at current prices, relatively moderate scale and expandable over time as demand increases - US$2-2.5 billion dollar capital project to construct, 600 plus construction jobs - Approximately 400 ongoing jobs for operations - Resources available to support multiple decades of operations • A cluster of indigenous communities in the region could benefit – Ampilatawatja, Utopia, Barrow Creek, Ali Curung, Elkedra, Wycliffe Well and Wauchope • Opportunity for service industry’s to evolve to support the operations • Production of synthesis gas and availability of industrial salt by products from the potash operations could underpin downstream chemical production in time •Increases volumes on rail that should lead to lower costs for all
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BRINGING THE INGREDIENTS TO ENSURING WE ARE COMPETITIVE FOR GLOBAL CAPITAL INVESTMENT IN THIS INDUSTRY
WHERE IS THE COMPETITION?
WE ARE NOT THE ONLY COUNTRY WITH THESE TYPES OF RESOURCES
Major producer with limited expansions or expandable to meet domestic demand
Major producer with expansion options to meet international demand
Significant undeveloped phosphate resources
FOR THIS OPPORTUNITY TO BE REALISED, WE NEED TO ATTRACT GLOBAL FERTILISER PLAYERS TO MAKE LARGE INVESTMENTS GLOBAL CAPITAL IS MOBILE SO WE NEED TO ENSURE THAT THESE PROJECTS ARE COMPETITIVE GLOBALLY. • There are a number of challenges and hurdles to overcome to make these projects the most attractive globally - Ensure competitively priced gas for domestic use is readily available - Costs of transport are moderated and reflect rates available in other OECD countries and sufficient infrastructure is available - Labour and construction costs and labour productivity in Australia needs to improve (lower $A would help) - We need to ensure that we have a globally competitive tax and royalty regimes - Environmental controls that reflect risk and limit the economic burden on the projects - Access to the land necessary to extract the raw materials and produce the value added products 53
GIMBELLS Landscaping
Continues To Grow In The Territory
L – R Phil McWilliam, Sue McWilliam, Dave McWilliam & Jodie Rousell
GIMBELLS LANDSCAPING CONTINUES TO PROVIDE QUALITY LANDSCAPING AND REVEGETATION SERVICES FOR GOVERNMENT AND BUSINESS PROJECTS FOLLOWING DECADES OF SUCCESSFUL PROJECT OUTCOMES.
As one of the longest serving landscape and revegetation businesses in the NorthernTerritory, Gimbells has the expertise and experience to provide enduring, quality landscaping for government and commercial projects of any size.
Starting business in NSW in 1962 and moving to the Northern Territory in 1976, Gimbells Landscaping has developed a deep understanding of what it takes to thrive in the tropics over their 38 years in the top end. A tight-knit company who pride themselves on their extensive experience shared with local staff, contractors and resources, Gimbells consider themselves proud Territory locals. The company’s extensive project history includes iconic Darwin landscapes such as the Trade Development Zone (now the Port Authority), Darwin International Airport, Bunnings premises on Bagot Road and in more recent years the parks and gardens of the Lyons Subdivision which, at the time, was one of the largest landscaping projects commissioned in the Northern Territory. Gimbells was the recipient of several awards for landscape excellence for this project. Robertson Barracks and the revegetation of the Tiger Brennan Drive extension are some other recent notable completed ventures, and there are many more thriving examples of their work around the Darwin and Palmerston areas. With the expertise to advise on projects large and small from concept to completion, the Gimbells team includes the capacity to design, build and implement landscaping for your next project. From hydro mulching large scale grassing and revegetation jobs, to hand mulching and constructing landscaping features including watercourses and structural elements, Gimbells Landscaping has the qualified, capable staff and equipment resources required to handle any commercial landscaping project.
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Helping local Northern Territorians less fortunate is important to Gimbells. The Darwin Riding for the Disabled grounds, which covered an area over 2000 square metres of irrigation, planting beds, grassing, and mulching, was rejuvenated as a service to this unique organisation that provides a beneficial service to disabled children and their families. Gimbells choose to help other locals, recently sponsoring organisations including the Children’s Film Festival organised by the Lions Club of Darwin, Nightcliff; St Vincent de Paul CEO Sleepout; Salvation Army and many other local charities, sporting clubs and schools. Gimbells Landscaping is one of the few landscaping firms in Australia to have achieved accreditation under the Australian Government Building and Construction OHS Accreditation Scheme, which allows them to be the principal contractor on federally funded projects. The company holds several other professional licences including a Professional Ground Spraying Business licence, NT Builders Licence and has current Certified Landscape, Turf, Commercial Irrigation Designer licence. Gimbells are also registered with CAL (Contractor Accreditation Limited) and NT Building Practitioners Board. All these professional memberships ensure Gimbells maintain the reputation and high standard of work their years of experience have built. For quality hard and soft landscaping, consultation, design or installation – look no further than Gimbells Landscaping Pty Ltd. Contact 08 8947 3666 or website http://www. gimbells.com.au
“Gimbells quality systems, management and administrative approach has been clearly evident in the successful completion of various projects with a high level of finish.” TONY COX, CLOUSTONS
Landscape Design & Construction • Maintenance • Irrigation & Drainage • Environmental Services
ACCREDITATIONS
Federal Safety Commission Approved Certified Irrigation Designer – Commercial AS/NZS 4801:2001
LICENCES
Professional Ground Spraying Business Licence No DB/003 Northern Territory Builders Licence Registration No 15110CU Certified Landscape, Turf, Commercial Irrigation Designer LTC2120
REGISTRATIONS
Contractor Accreditation Limited (CAL) Northern Territory Building Practitioners Board
1 0 Bou l t er R oa d Berrim ah NT 0 8 2 8 Tel (0 8 ) 8 9 4 7 3 6 6 6 | F ax ( 0 8 ) 8 9 8 4 4 6 8 9 Ema i l a d mi n @ gi m bells.com .au w
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IN D U S T RY N E W S AND U PDATE S
Woodside
A history of achievement, world-class facilities and Australia’s largest independent oil and gas company, that’s Woodside. In 2012 Woodside successfully started up its Pluto LNG Plant, with that startup Woodside now operates six of Australia’s seven LNG processing trains. It’s international assets include deep-water production facilities in the Gulf of Mexico and acreage in the USA, the Canary Islands, the Republic of Korea, the Republic of Ireland, Myanmar, Brazil and Peru. Woodside has a 33.4% operator share in the Sunrise LNG development project though development is at a standstill, while the Timor-Leste Government and
Australian Government are establishing a tripartite alignment. The Sunrise and Troubadour gas and condensate fields or Greater Sunrise fields where the LNG will be developed is located 450 km north west of Darwin and 150 km south east of TimorLeste. Other projects underway by Woodside involve operating the North West Shelf, Pluto LNG, Browse FLNG and four world-class oil developments offshore of Western Australia and Timor-Leste. As well as working with the Government of British Columbia to explore feasibility of constructing and operating an LNG export facility at Grassy Point, which is located on the west coast of Canada. And
a number of explorations internationally. Starting in 1954 as an oil company, Woodside has now been operating for 60 years. Woodside has nine offices around the world, three in Australia and one in Texas America as well as offices in Timor-Leste, Japan, Korea, China and Singapore. The company aspires to become a global leader in upstream oil and gas; it already has an extensive profile and operates on behalf of a number of the world’s major oil and gas companies. Woodside states its mission as to deliver superior shareholder returns, which it aims to do by maximizing its core business, leveraging proven capabilities and growing their portfolio through exploration.
Subsea 7 hires Furgo’s survey services Furgo has been hired to deliver survey services to compliment tie-in operations contract on the Gorgon project. They commenced work off the northwest coast of Western Australia for Subsea 7 Australia. Furgo carried out the connection and calibration of long baseline ranges, in corresponding with spool piece metrology operations. The mobilized multi-role vessel Rem Etive came operational with deepwater work class ROVs, including specialist survey personnel and apparatus
as part of the contract. Expansion of operations in the frontier areas of the Asia Pacific region became more feasible after purpose built DP2 geotechnical drilling vessel was working in conjunction with the offshore geotechnical division. The vessel has a twin tower drilling derrick over a centrally positioned moon pool. At 83 metres long, the vessel incorporates facilities such as a large soil laboratory and seabed sampling and testing systems, the vessels ability is rated to water depths of 3,000 metres.
During the vessels first contract testing was completed in water depths of up to 1,350 metres. This involved seabed in situ testing, large diameter piston cores, drilled borings and downhole in situ tests. Rem Etive, embodied a significant asset in deepwater equipment for the Asia Pacific region. State-of-the-art laboratory and sample storage facilities accompanied the companies consulting accomplishments, generating revenues of $30 million in 2012.
Manus Island second contract attained by Decmil Papua New Guinea’s A147 million deal for Manus Island construction contract has been awarded to Decmil Group. It entails a design and builds enlargement of the offshore processing centre. Last year Decmil Australia was elected to construct a major facility on the Island to the value of A137 million. This now marks the second deal to undertake development with the processing centre. On top of supporting engineering facilities and services, the range of work will cater for all service provider staff, transferees and other site occupants. Ranging from construction of accommodation
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facilities, central dining and recreational facilities, health, welfare and operational and logistics facilities. Decmil has proven its ability to work on government projects, providing buildings and infrastructure in offshore and remote locations, highlighting its proficiency. Decmil Chief Executive Scott Criddle said, “the win strengthens our diversification strategy away from reliance on the resources and oil and gas industries.” “Our proven delivery coupled with our strong relationship with the department of Immigration and Border Protection has enabled us to achieve this significant win.”
IN DUSTRY NEWS A ND U P DATES
Carnarvon acreage secured by AWE
Expl or ation Per mit WA-482-P
As part of the Australia 2013 Offshore Petroleum Exploration Acreage Release, a new exploration permit in the North Carnarvon basin was granted to Australian company AWE Limited in April. AWE holds a six year exploration permit covering water depths of between 150 metres and 500 metres. The area now known as WA-497-P covers 56,000
hectares. Its north of the Macedon Gas Field and directly adjacent to the producing Pyrenees, Vincent and Coniston oilfields. Previously state of the art technology was used in a number of AWE’s assets. They have committed to reprocess the existing permit using the same technology that was highly successful throughout existing endeavors. AWE has identified a significant new play concept
as well as the verified plays in the original survey of the project area. AWE’s strengths are harmonized in sub-surface appraisal and early stage development. 2013 acreage release has seen a further three blocks re-released for bidding in Exmouth sub-basin and Exmouth Plateau. By October 2014, the bids are to be placed for the three released blocks
Western Australia reaps benefits of Neptune’s new addition North Western Australia clients acquire benefits of Neptune Marine Services with the newest addition of a new remotely operated vehicle to its convoy. The first quarter of this year saw delivery of TMS Comanche. The vessel is to work predominately on board a drive support vessel. Neptune’s integrated range of inspection is highlighted by key asset Dryden, the Comanche remotely operated vehicle. Neptune will be well positioned to facilitate the major oil and gas operators and projects currently and in future. The news followed Neptune’s accomplishment of a number of repair projects using its combined dry
underwater welding technology. Specializing in work offshore has seen projects such as bilge keel repair on a floating production, storage and offtake vessel in Australia and subsea inspection and remedial work on an offshore production platform in China be accomplished. Saturation diving was preformed in projects in China and Malaysia. With Neptune having qualified the diving and welding processes at the National Hyperbaric Centre in Aberdeen prior to commissioning the work. All other training is preformed in its dedicated dive tank in Belmont, Perth facility. Relevant indpendent classification societies approved all executed repairs of the performed tasks throughout Australia, China and Malaysia.
Vista Gold Australia Working towards getting Mount Todd back into an operational goldmine, the branch of a large international company, Vista Gold Australia Pty Ltd. With its acquiring of the Mt. Todd goldmine in 2006 Vista Gold created an Australian branch to watch over its interests here in Australia. Located in the Territory Mt. Todd can be found at approximately 56 kilometers northwest of Katherine and 250 kilometers southeast of Darwin. Gold and Tin were originally discovered in the Mt. Todd area during 1889, between 1902 and 1914 most deposits were worked. In the 1980s a number of companies operated the mine and had varying
degrees of success, since its attainment of the mine in 2006 Vista Gold Australia has spent the years examining and gaining an understanding of the Batman deposit in the area and its mineralization. For the project Vista Gold Australia has also been examining metallurgical processing alternatives and assessing how to avoid the problems previous mine operators faced. The Mt. Todd mine is a “brownfield development” project meaning that when Vista Gold Australia obtained it the mine already had significant existing infrastructure such as paved access from the major transportation corridor, a fresh water reservoir and water treatment facility, a natural gas pipeline, medium-tension power lines and readily available
57
labor and technical personnel. Vista Gold Australia owns the Mt. Todd gold project 100% and is lucky as there are no Aboriginal rights issues associated with the project. Last year Vista Gold Australia filed it’s Environmental Impact Statement and completed the public consultation process, they are hoping to receive their environmental permit for the project near the end of this year. Vista Gold Australia is hoping to re-open the mine as an open pit mine using conventional open pit mining methods, according to the Mt Todd website. They are dedicated to using local suppliers and experts for their operations in and around the Katherine area.
Established in Darwin in 1974, Rider Levett Bucknall NT, provides quality quantity surveying, cost management and advisory services throughout the Northern Territory region including remote and island communities
The Darwin operation is intrinsically linked with the
Rider Levett Bucknall is Oceania’s largest and most
post cyclone Tracy era, having been involved with
experienced construction consultancy, specializing in
most landmarked projects in Darwin and throughout
cost management and advisory services. With over
the NT, and has grown to become the pre-eminent
3,500 specialists in more than 120 offices around the
and longest serving firm of Quantity Surveyors in
globe, Rider Levett Bucknall has the right people in
Darwin.
the right places to deliver successful infrastructure projects.
RLBNT has transitioned very successfully from an organization with the transient workforce so common
Riders Levett Bucknall supports the transport,
in Darwin, to one that is proudly truly Territorian
mining, energy, water and refining sectors across the
with all its personnel being long tern Territorians.
world. The changing demographics and pace of the
The keystone to the success of the Darwin office has
economic development is leading to changing living
been the dedication and longevity of its directors and
standards and expansion of existing and new cities.
managers with only 6 directors and managers, two
The firm’s range of expertise and organizational
being the current directors, running the office over
resources means it can bring together the best team
the past 40 years. At Rider Levett Bucknall, we are
ofconsultants for any project. Rider Levett Bucknall
vigilant in maintaining the dedication and integrity
has been involved in the construction of many of the
of our management and staff and the manner in
world’s most prominent and successful infrastructure
which our service support our Client’s objectives.
projects. From inception to completion, the firm’s
58
Paul Lassemillante
Craig Bell
experience means a comprehensive understanding of the financial and economic factors. Such projects have been the City of Phoeix Skytrain in Arizona USA, Decommissioning of the Nuclear Power Plant in Humboldt Bay California USA, Kurilpa Bridge Brisbane, Lusail Real Estate Development Qatar, Oil refinery Expansion at Suriname, Port of Townsville Port Expansion, Seacliff Bridge at Illarwarra and the River Torrens Bridge Adelaide. In addition, Rider Levett Bucknall Team have considerable experience in taking a balanced
Level 4, 62 Cavenagh Street Darwin, NT 0800 GPO Box 3423, Darwin, NT 0801
consideration of economic, environmental and social impacts. As part of global practice, Rider Levett Bucknall is at the forefront of the latest technologies
T: +61 8 8941 2262 F: +61 8 8941 2572 E: darwin@au.rlb.com www.rlb.com
and has the capacity to deploy global resources to deliver best practice solutions in the cost management of infrastructure.
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SITZLER STEPS UP IN PRISON HIGHLY SKILLED, LONG TERM STAFF IN ANY BUSINESS ANYWHERE IN THE WORLD IS THE KEY INGREDIENT TO SUSTAINED COMMERCIAL SUCCESS AND QUALITY PROJECT DELIVERY. 60
L to R: Steve Margetic, Managing Director, Dick Guit, General Manager and Michael Sitzler, Director
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T CONTINUED...
erritory Life speaks to Michael Sitzler, Director of Sitzler Pty. Ltd. about his workforce development philosophy and Sitzler’s involvement in the new $495 million Darwin Prison mega project. “This business has been built over the last 57 years by our skilled and dedicated staff; and the new landmark Darwin Prison major project took them and this business to a whole new level of capability.” The sheer scale of the new Darwin Prison precinct is mind boggling in both its size and complexity. Michael explains, “Our team had to turn 270 hectares of rural bushland into a 1,000 bed state of the art Prison.” The Prison project is more akin to the construction of a small town, and haven’t been seen in the Territory since the construction of Jabiru and Nhulunbuy townships; and the initial stages of Palmerston.
SITZLER STEPS UP IN PRISON
THERE ARE 67 SEPARATE AND DIFFERENT BUILDINGS, AND OTHER FACILITIES, INCLUDING; • High Security Cells • Low and Medium Security Cells, • Open Security Cells • Female Cells, • Gatehouse • Visitor Facilities, • Industrial sheds • Commercial Kitchen • Administration Centre • Health Centre • 30 bed Mental Health facility • 48 bed supported accommodation facility • 23 kilometres of roads, • Power generation station, • Exercise Oval • Life Skills Program facilities, and • Horticulture areas.
Sentinel are the owners and
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L to R: Dick Guit, General Manager, Steve Margetic, Managing Director, and Michael Sitzler, Director
operators of the prison; and Sitzler, in Joint Venture with Baulderstone, won the design and construction contract. Baulderstone are owned Complex major projects nowadays necessitate Joint Venture arrangements with one by Lend Lease, and are a secure facility industry or many different companies. Thus the ability to successfully manage a JV has a leader with having constructed the last eight Prisons in critical effect of project success or failure. Queensland over recent years. This exposure to Baulderstone’s systems and requirements “WE GOT THE JV WITH BAULDERSTONE RIGHT FROM THE in the design and construct of a secure facility has further BEGINNING; OUR STAFF WORKED AMAZINGLY WELL enhanced the skills and experience of Sitzler 120 staff. TOGETHER, AND WE GAINED INVALUABLE EXPERIENCE “We not only wanted to deliver a high quality major project; but IN THE JV WORKING ARRANGEMENTS WITH A importantly we also wanted to allow our staff to be exposed to, and MULTINATIONAL COMPANY” MICHAEL COMMENTED. gain experience in, a very large and complex project” Michael explains. “We believe this investment in our staff will pay off for them and us in the Whilst Silzter, and their staff, have delivered many projects future” and continue to work on more, such as the $15 million This focus on developing and retaining staff has led to long term loyalty with Michael Long Learning and Leadership Centre at many staff that have been with Sitzler for 10, 15, 20 years; many of whom did their Marrara; the almost half a billion dollars new Apprenticeships with Sitzler. Darwin Prison has been their biggest; but I am The Sitzler team have already established capability in construction, construction confident it will neither be the last of this size management, management of sub-contractors, planning, scheduling of project, and or remain the biggest. project management skills; on projects like the Darwin Convention Centre, new Australian Michael, and all the management team Federal Police facility at Marrara, Darwin Football Stadium, and NT Netball Centre just to at Sitzler, are genuinely grateful to name a very few. their whole team on the Prison “What this current Prison project did for us was to develop and increase our skills around detailed project, saying “This project programing and scheduling of a big and extremely complex project”. is a testament to our loyal “Our team in combination with our joint venture partner managed the construction of 67 buildings with and professional staff; a total floor area of 67,000m2, coordinated 22,000m2 of pre-cast concrete, oversaw 34,000m2 of blockwork, they should see it installation of 75,000m2 of roofing, and supply of 2,500 tonne of structural steel.” as an incredible Sitzler is a Territory business and it not only does it recruit locals; but it also supports local sub-contractors; with achievement.” Local Industry Participation reaching 78% on the Prison project.. This bodes well going into the future because most Territory construction companies, or their workforce; wouldn’t have had the exposure to the sheer scale of complexity of these types of projects. Sitzler have demonstrated that they can undertake any large scale complex project into the future, such as major roads, bridges, hospitals, and residential and industrial sub-divisions. We all want Territory businesses to win major projects, but these projects need companies with experience and capability on similar large scale projects, and Sitzler has proved they can deliver. “Construction projects for any client are all about managing risk; proven experience and capability reduces this risk” explains Michael. With recent announcements from the Prime Minister, Tony Abbott and the President of the United States, Barak Obama; regarding a greater United States and Australian defence force presence in the Northern Territory; the experience Sitzler has gained in the construction of large and complex secure facility type projects will position them well to compete for future defence infrastructure contracts.
OF
THE INNER THE WORKINGS With over 60,000 Australian companies and 4,400 Northern Territory companies currently registered, ICN sometimes gets asked ‘What do you do with our company information once we spend the time entering it into ICN Gateway?’ Kevin Peters is currently the CEO of the Industry Capability Network Northern Territory (ICN) and a staunch advocate of allowing Northern Territory and Australian businesses “full, fair and reasonable opportunity” to compete on projects. Kevin introduces his team to answer this question: “As new companies register, or even when companies update their details through Gateway, ICN individually reviews and verifies each profile to ensure that the correct information is captured to maximize the company’s opportunities when ICN undertakes our vendor identification” says Garry Ross. Garry has been with ICN for 28 years and looks after the verification of new companies, vendor identification, Regional and Defence opportunities along with ICN’s role in the NT government procurement process. “The NT Government has a firm policy of promoting the participation of local industry within the confines of national and international legal procurement rules. The ICN plays a prominent role in Public Sector procurement, Procurement Review Board and Local Industry Participation Plans (LIPPs). The ICN is the mechanism under which the NT Government can ensure procurement personnel have access to a database which reflects current local capability. If the Government has a stake in a project, it may also utilise the ICN as the auditor to ensure a particular level of local content is met.”
“If a company does not reflect truly what they actually do and are capable of in their company profile, in plain English, then some companies may be limiting the opportunities that the ICN can put them forward for.” ICN currently have 5 industry consultants, including Garry, that evaluate company data as part of ICN’s vendor identification process. They are Mark Turner, Emma Williamson and Matt Hammond with Alan Bush heading up the team. “Ensuring that we correctly interpret a company’s information is critical in identifying the right companies according to the scope that we have been given. There are instances that we receive scopes of work that contain technical jargon and this language is not always reflected in a company’s profile, but we find in most instances that the company may be capable of undertaking that scope.” says Alan. Mark goes on to say “It is an ongoing educational process with companies to ensure we limit the marketing ‘fluff ’ from the profiles and ensure that the profile include key words, technical language and terminology and brand names. We also look for present and complementary / ancillary / products or services and the companies key strengths and expertise areas.” What most people are not aware of is the amount of enquiry
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work that ICN does behind the scenes. ICN Gateway is the public project site that lists public work packages for companies to express their interest against, although ICN Gateway only shows about 60% of ICN’s actual work load. “For ICN to add the most value to a project or buyer, engagement as early on in the project is critical and we find that during these phases, a lot of the enquiries are confidential, so Gateway is not an option. ICN still conduct these enquiries and assess local companies for nomination to these opportunities” says Kevin. Emma understands the process well. “Hours of work goes into vendor identification as our nomination letters to buyers will generally always include a company’s overview, capacity to undertake the package, project history in relation to a scope, accreditations and other specific data as requested by the buyer”. “Through our national alliance, the ICN is also able to satisfy the requirements of our clients by accessing the national ICN database, to locate goods and services not available in the Territory if required.” says Matt. “Some of these interstate companies also become interested in joint venturing with a local company to build local capacity, which ICN helps facilitate.” And of course any great company needs a strong administration and support team backing them and ICN definitely have that in the form of Charmaine Barrett, Elena Tsangari and Elizabeth Fox. “Assisting the consultants showcase the strength, experience and ability of local businesses to projects whilst at the same time matching them to relevant project opportunities locally and around the country is quite fulfilling. ICN plays a vital role in identifying local skills and matching those with Industry needs.” says Liz Elena has a varied role. “Conducting supplier briefings,
writing our newsletters, training users how to manage their project on ICN Gateway and project support is complementary to our consultant team. It’s all about offering the best product, service and knowledge to our clients and through my role as Project Support, I play my part in ensuring that ICN does this each and every time.” “ICN (NT) have facilitated a total of $1.718 billion in contracts being awarded to Northern Territory companies since 1987” says Charmaine “ICN has come a long way in the past few years with the changing face of the Territory economy changing the operational focus of the ICN, as we now see the major projects not experienced in years gone by.” And this is where Mike Franks our Business Development Manager completes our team. “Identifying and developing new projects and opportunities for the ICN to get involved in is unbounded in the Territory as our project base is varied. The Territory’s future is full of potential and ensuring that ICN is positioned to maximize the amount of local content involved in these projects is our priority.” says Mike. The ICN is supported by the NT Government to offer a free service for companies to register their details via ICN Gateway. It does also operate on a commercial basis in its interactions with private sector projects. ICN is a private company managed by a Board of Directors made up of representatives from the Chamber of Commerce NT (3), Master Builders Association (NT) (3), NT Government (1) and the ICN Chief Executive Officer. The ICN network has now been in operation for 30 years, has 28 offices across Australia and New Zealand and has successfully supported $16 billion worth of opportunities for Australian and New Zealand businesses that otherwise may have gone overseas.
Contact ICN NT at info@icnnt.org.au 08 89229422
KEVIN PETERS ICN NT CHIEF EXECUTIVE OFFICER
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THE CENTRE OF DARWIN Darwin Convention Centre is a symbol of our city’s exciting and vibrant future – a world-class venue connecting people and ideas and proudly hosting the world from a stunning waterfront setting. Everything centres here – whether it’s a prestigious national or global convention, gala dinner for visiting VIPs, trade exposition, rock concert, charity event, wedding or seminar. We’re proud to say that during our six-year history our achievements have been recognised with sought-after industry awards ranging from top notch venue design to catering excellence, outstanding events team, workforce innovation, and leadership in business tourism. We look forward to hosting your next event.
Let’s connect. www.darwinconvention.com.au +618 8923 9000 | sales@darwinconvention.com.au
MEET JANET HAMILTON GENERAL MANAGER, DARWIN CONVENTION CENTRE manage the Ranger Mine. This was a great experience and exposed me not only to the mining industry in the Territory, but the incredibly beautiful West Arnhem region. There is something about the Territory, which has drawn my family to this part of Australia since the 1940s. My Dad was stationed at Batchelor in the Air Force in World War II. My eldest brother, Tony was the crane driver on the Casuarina Hospital build back in the 70s and came home for Christmas on the eve of Cyclone Tracy. My brother Bruce returned with Tony, who both worked for John Holland as part of the rebuild. My uncle was one of the engineers who built the Darwin Entertainment Centre and I now have two nieces who live here who work in the health field. It’s only been eight months since Janet Hamilton was appointed the new General Manager of the Darwin Convention Centre. Let’s find out more about her background, her commitment to the Centre and the events industry, and her vision for the future. Can you tell us a bit about Janet Hamilton, pre-Darwin Convention Centre? I grew up on a farm in North West Tasmania and as a lot of Tasmanians do, I headed to the “mainland” and never really went back. I lived in Perth, Sydney and Melbourne before moving to the Territory five years ago. I’ve been incredibly lucky to be involved in the events industry since the 1990s, holding some really amazing roles from being the Sales Manager for Opera Australia, then on to being the Special Event Manager for the Sydney Olympic Games where we delivered over 300 events, hosting everyone from rock and film stars, to sporting heroes and royalty. I then became the Major Events and Sponsorship Manager for the Sydney Harbour Foreshore Authority looking after the busy Darling Harbour and Rocks precincts events. In 2003, I moved to Melbourne and took up the role as Place Management Director for VicUrban, where I oversaw the precinct operations for Melbourne Docklands as well as the event planning for the 2006 Volvo Ocean Race and Commonwealth events which were held in the Docklands precinct. This led to a contract to prepare the operational and marketing plans for the Galway and Singapore Stopovers for the 2009 Volvo Ocean Race. In 2008, my husband Mike took a two-week contract in Darwin, which turned into a longer-term contract and then a permanent move to the Territory. For twelve months we commuted and then we made the decision to make Darwin our home. At this stage, I took a completely different career move by taking up the role of External Relations Manager at ERA, who
What convinced you take on the role of General Manager? What are your key tasks as DCC’s new head honcho? In July last year, Mike and I were going on holidays to Italy and on the Singapore route, I sat beside Malu Barrios, then the GM of the Centre. Malu told me she was moving back to Sydney and her role was being advertised. I jumped at the opportunity to get back into the events industry and was lucky enough to secure the position last October. My key focus has been in setting the strategy for the next few years and overseeing the operational and sales direction of the Centre. Before DCC’s opening in 2008, it was almost unimaginable that Darwin would have an international standard convention centre. What impact has the Centre had to our city or the Territory over the years? I think the timing was right for such a world class Convention Centre to be built in Darwin, considering the development that we are now seeing in the Territory. Since opening the Centre the economic return from delegate spend is $230 million and we hope to see this continue to grow as we attract more business events to Darwin. We are the closest Convention Centre to South East Asia and we are seeing a trend with national associations selecting Darwin as a convention destination to attract Asian delegates to their conventions. This also aligns with the Northern Australian Development strategy to establish the Northern Territory as the gateway to Asia. What’s in store for the DCC In the next year or so, what do you hope to achieve? Sixty five per cent of our revenue comes from conventions, mainly those organised by national
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associations. We will continue to focus on winning business events from this important segment of the market. We have also started to focus our sales initiatives on Singapore and Kuala Lumpur now that we have direct flight access to Darwin to and from those cities. We are also keen to work with Government and our Northern Territory Ambassadors to attract business events which will promote the Territory, create business opportunities and provide strong economic return. We are working hard to increase our business in the exhibition, special event, banqueting and concert markets, so we have a well-rounded variety of events at the Centre. How would you describe yourself in one word? Passionate – about my family, my job and Darwin. How do you start your ordinary day? How does it end? And just for fun – when you’re not at the Convention Centre, what are you doing? I like to walk around the Centre and say hello to everyone, review what is happening that day and get a feel for how activities are coming together. I really love talking to the team and finding out how their particular department is doing. It’s important to be engaged and experience what is happening in the Centre and to ensure we keep our standards high. I end my day at the Centre by ensuring that we have responded to everything from that day and we are set up for the next day. I really encourage the teams to plan well in advance. I am a great believer in forward planning, so you can identify opportunities and cut off any emerging issues early. For fun – Mike and I really love cooking and catching up with friends. I’m also an avid reader and I’m on the Board of Brown’s Mart Theatre, so we go to as many shows as we can. We love the relaxed Territory lifestyle and enjoy all that Darwin has to offer. What are some valuable lessons you have learned as a female business executive in the NT that you can share with our readers? I don’t really worry about the whole male/female angle too much. Sure, I understand the issues and have faced the dynamics of gender issues from time to time over my career, but I firmly believe that if you have strong objectives and set out to be the very best you can be every day, and then you will be okay. I try to be consistent, calm and I strive to see situations through different “lenses”. Truly believing in what you do every day and being passionate is also very important.
GIVING
DARWIN CITY A NEW LEASE OF LIFE If the old Woolworths complex is the heart of the Darwin City, then metaphorically speaking the CBD is about to be given a new lease of life. After years of negotiation Gwelo purchased the site for $21 million plus GST from its previous owner in January 2014. Gwelo Developments Director Even Lynne said the site, which is located on the corner of Knuckey and Smith streets, has very little wrong with its current infrastructure, electrical and air-conditioning. “It’s still in good nick, in the short term we will dress it up and lease it to a mix of local businesses,” he said. “We’ve already had a number of inquiries from interested businesses and we should have it reopened within the next six months.” Even said the company obviously has further plans to redevelop the site but needed to go through the
statutory and planning processes. “With the current planning zone, we could potentially redevelop it to 30 storeys,” he said. “But we are still planning on what we would like to do in the long term. There are a few things we are considering.” Even said it would most likely be a mix of retail, commercial, hotel, residential, parking and “maybe even another department store”. “It will be good for the City – hopefully it will help draw people back to the city centre, which could only be a good thing for everyone,” he said. Some would say that the current level of construction and development in Darwin and the greater surrounds is not sustainable. Even disagrees. He points to the
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increase in people from Defence, and oil and gas as contributors towards continued confidence. “People have been saying that it’s not sustainable since the 1970s and there was about 40,000 people, now we have about 135,000 – and people are still coming,” he said. “As long as people keep coming here, then we will continue to build.” “There are always going to be ups and downs in the property industry, you just have to ride them out, and I can say I have been through a few of them.” And Even should know having started up Gwelo Developments almost 40 years ago. His first project was building a house and through his passion and drive he is at the helm of an organisation with an impressive portfolio of residential, commercial and retail developments. Some of his developments include the new Coolalinga Shopping Centre, Élan Soho Suites, Mantra Pandanas and Cullen Bay Serviced Apartments.
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For leasing inquiries regarding the old Woolworths complex site please contact Matthew Knight at Knight Frank on 0413 058 020 or Ron Stevens at Gwelo Developments on 8981 0299.
S h a p i n g t h e D a r w i n Wa t e r f ro n t
The Toga Group was established in 1963 by the current Executive Chairman, Mr. Ervin Vidor, as a property development, construction, investment and management group initially focusing on medium sized residential and commercial developments. Property Development The Toga Group is an active developer and Builder of quality residential apartments (Toga Apartments), hotels (Medina Apartment Hotels, Adina Apartment Hotels, Vibe Hotels & Travelodge Hotels) and mixed use developments including retail and commercial. Toga Development & Construction provides a fully integrated delivery capability comprising Development, Construction, Project Management, Architectural and Interior Design, FF&E Procurement, Customer Relationship Management and Finance functions. Toga Group’s long term property ownership experience is core to understanding the need for a quality product. Leadership, integrity, hard work, productivity, humility, passionate attention to detail, and achieving value for money quality solutions are core values of the Toga Development & Construction division that are consciously applied in the delivery of our developments on a daily basis. Long term stakeholder relationships with joint venture partners, investors, purchasers, tenants, authorities, financiers, clients, suppliers and subcontractors are another major cornerstone of the business which is highly valued both internally and externally.
Design, Construction & Project Management Toga Development & Construction’s in-house team of architects, interior designers, project managers, fit out and procurement specialists work together with our construction staff delivering successful residential, hotel, commercial and retail projects. Toga places a strong emphasis on design and value management prior to construction, which it undertakes through its in-house team. The division also provides project management, architectural and interior technical design review, value management, and FF&E procurement services in relation to projects being developed by third parties where Toga Hotels is chosen as the hotel operations manager, ensuring optimally designed hotel projects are constructed cost effectively for the desired quality. Investment & Asset Management Toga Group invests in and manages a diversified portfolio of long-term commercial, retail, residential and hospitality assets in Australia, New Zealand and Europe. In addition to its core property investment portfolio, Toga Group actively manages a portfolio of non-property related investments. Core to Toga Group’s successful investment is a hands on approach and strong attention to detail in managing assets and ensuring optimal returns.
Fabrizio Perilli, CEO Development and Construction
Level 5, 45 Jones Street, Ultimo, NSW 2007, Australia. T: +61 2 9356 1000 • F: +61 2 9356 1073 • E: info@toga.com.au www.toga.com.au
HOTELS GET RENOVATIONS.
Hiltons get Makeovers.
Hilton Worldwide continues to drive the flourishing Northern Territory economy since opening its doors in May last year with a $5m revitalisation. Offering Darwin’s only Executive Lounge, stunning harbour views in a prestigious CBD location, the renovation has further cemented the hotel’s position as the city’s premier five-star hotel.
The refurbishment encompasses complete redesign of the Executive rooms, revitalisation of the guest room bathrooms and entrance ways. Overlooking picturesque Darwin Harbour, Hilton Darwin offers 236 modern guest rooms with a 700m² dedicated events floor of multifunction space and 5 dedicated meeting rooms. Hilton Darwin sets standards for the city’s savvy corporate and leisure traveller. The new state-of-the-art Fitness Centre offers glimpses of Darwin Harbour and boasts cardio equipment with individual touch screens. Guests can cool off with mineral water, plush towels or a dip in the pool. Hilton Darwin offers a superior room experience, the fresh approach and smart design provides functionally and includes the latest in room technology. Guests can enjoy the signature Hilton Serenity Bed and Peter Thomas Roth premium bath amenities. Martin Kendall, Area General Manager, Northern Territory, says, “Our Executive rooms and Suites
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have played host to Presidents and Politicians and have also been the choice for visitors and locals alike looking for something special.” Guests in Executive rooms and Suites have access to the 20th floor Executive Lounge offering exclusive benefits including complimentary evening canapés and drinks overlooking Darwin Harbour and continental breakfast in the lounge each day. Mitchell’s Bar & Grill offers an expansive menu with emphasis on Australian seafood. This stylish hotel is within walking distance of all major corporations and government offices, Darwin Convention Centre, and close to great shopping, dining and entertainment opportunities, as well as Darwin International Airport. Hilton Darwin’s revitalisation reinforces Hilton Worldwide’s commitment to growing the Northern Territory tourism industry through one of the most highly regarded brands in the hospitality industry, an innovative, forward-thinking global leader of hospitality.
IN DUSTRY NEWS A ND U P DATES
HALIKOS HOSPITALITY A part of the Halikos Group and host to a series of popular hotels in Darwin, Halikos Hospitalty is growing and expanding its portfolio rapidly. Halikos Hospitality boasts three above four star hotels, the 186 room H Hotel which is rated at 4.5 stars, the 140 room Novotel Darwin Atrium also rated 4.5 stars and the Quality Frontier Darwin which is rated 4 stars. The hospitality branch of the Halikos Group also owns the Top End Tavern and its award winning Lizards Outdoor Bar and Grill, plus a series of apartments. These apartments are the One30 Apartments, C2 Esplanade Apartments, H2O Apartments and H Apartments, across these there are four fully-furnished serviced apartments for corporate accommodation. Outside of Darwin but still in the Northern Territory Halikos Hospitality also owns Bynoe Harbour’s Crab Claw Resort which has 23 elevated cabins all connected by walkways through the trees and gardens. The Crab Claw Resort also has swimming pools and an elevated open restaurant. The Halikos Hospitality branch of the Halikos Group was established in 2000. And is currently managed by Geoff Weeks who joined the Halikos Group in 2011. The current Director of the Halikos Group, John Halikos, established the Halikos Group itself in the Northern Territory in 1987. It started as a contract and roofing business and has become one of the Territory’s largest and dynamic local group of companies. In the over 20 years of the Halikos Group operating John Halikos has expanded it into more than contract and roofing with the Halikos Group now involved in property management, development, construction, manufacturing, retail, investment and of course hospitality. Throughout its expansion the Halikos Group has been focused on one thing, the Northern Territory.
DELAWARE NORTH A Global Leader in hospitality and food service. Providing memorable experiences is nothing new for Delaware North. We’ve been doing it for nearly 100 years in many of the world’s most wondrous locations. From sports and entertainment venues to gaming destinations, parks and resorts to bustling travel hubs, our hospitality management team works across the United States and around the globe to ensure that all of our guests enjoy these special places as much as we do. Under the leadership of the Jacobs family, Delaware North has grown into a hospitality management company with more than $2 billion in annual revenue, earning a spot on the list of the most admired hospitality management companies in the world. Not to mention in the hearts of 55,000 associates who dedicate themselves each year to serving up memories of a lifetime to half a billion guests.
TFE HOTELS Approximately 57 hotels Australia wide and host to five hotel brands, Toga Far East (TFE) Hotels is one of Australia, New Zealand and Europe’s leading hotel operators. Employing over 1,500 people in Australia, New Zealand and Europ, the joint venture between Far East Hospitality and Toga Group, TFE Hotels is one of Australia’s largest hospitality management platforms. TFE Hotels specializes in design, construction and project management, investment and asset management, accounting, finance and administration, hotel management and property development. The Northern Territory hosts three of TFE Hotel’s brands, the Adina Apartment Hotel or Medina Grand near the waterfront and wave pool, Vibe hotels with Darwin’s Vibe hotel also on the waterfront and Travelodge Hotels in the form of Darwin’s Travelodge Mirambeena Resort. TFE Hotel’s brands were a huge part of the waterfront construction a few years ago and are a major attraction for tourism to the Northern Territory with their waterfront location and luxurious rooms. TFE Hotels opened its first Median Serviced Apartment, one of its other brands, in Sydney in1982. Now it has Adina Apartment Hotels in 27 locations, Vibe Hotels in seven locations- will be nine in 2015 with the addition of one in Marysville and one in Canberra, Travelodge Hotels in 17 locations, Medina Serviced Apartments in four locations and there fifth brand, Rendezvous Hotels, in 11 locations. It is also finishing up refurbishing the Hotel Kurrajong Canberra this year.
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OUR GOAL IS TO LEAVE BEHIND A POSITIVE IMPRINT ON EVERY COMMUNITY WE PARTNER WITH
RUSCA BROS SERVICES RUSCA BROS SERVICES IS A JOINT VENTURE BETWEEN THE FK GARDNER AND SONS GROUP AND RUSCA BROS MINING DELIVERING SERVICES IN THE CIVIL, MINING AND CONSTRUCTION SECTORS TO CLIENTS NATIONWIDE. As a combined entity, we have more than 80 years’ experience in those three industries and a long resume of successful projects delivered, often at regional and remote sites. We’ve delivered projects for a number of multinational companies, such as Arrow Energy, Xstrata Zinc, Santos, Hastings Deering, Fluor and Origin Energy. Our combined workforce of more than 1000 staff means we have the capacity to successfully
deliver a vast range of projects. We are known in the industry for our strong and genuine focus on Indigenous employment and our lofty standards around health and safely, quality and the environment. We pride ourselves on our hands-on, collaborative approach to creating custom solutions for our clients and then exceeding all expectations.
RUSCA BROS SERVICES
INDIGENOUS EMPLOYMENT BUILDING GENUINE CAPACITY AND ECONOMIC OPPORTUNITY FOR INDIGENOUS AUSTRALIANS IS PART OF OUR COMPANY’S CORE FOCUS AND MAKES RUSCA BROS SERVICES AN INDUSTRY LEADER IN THIS DOMAIN.
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Our Indigenous Employment Strategy is based on setting our employees up for success. By developing strong relationships and an understanding of our employees’ backgrounds, we’re able to properly support them through their employment and ensure the best results for both the employee and the company. One-on-one mentoring plays a big part in this. A key component of this strategy is facilitating the development of strong portable skills and experience for every Indigenous worker to improve their future employability. All Indigenous team members are encouraged to access training and other personal development opportunities throughout their employment. We respect Indigenous tradition and culture and recognise the importance of their connection to land and sea. We are very proud of the longstanding and mutually respectful relationships we’ve built with Indigenous people, communities, councils and local businesses.
ruscaservices.com.au
SAFETY, ENVIRONMENT & QUALITY AN UNWAVERING COMMITMENT TO HEALTH AND SAFETY, THE ENVIRONMENT AND QUALITY UNDERPINS THE DAILY OPERATIONS OF RUSCA BROS SERVICES.
SAFETY The health and safety of our personnel and subcontractors is our number one priority. We maintain the highest levels of safe work practices through regular and rigorous external evaluations of our systems and policies. • AS/NZS 4801 CERTIFIED FOR SAFETY
QUALITY Our ability to consistently deliver projects at the highest standard lies in the company’s extensive quality assurance systems. We use the latest equipment and technology to ensure we deliver on our client promise at every stage of the project. • ISO 9001 CERTIFIED FOR QUALITY
ENVIRONMENT Our significant Indigenous workforce has helped us forge an intimate, company-wide relationship with the country in which we work. As a result, all team members have developed a respect for the land, its flora and fauna, and the importance of preserving cultural sites. We continually strive to improve our environmental performance across every project site and reduce our environmental footprint. • ISO 14001 CERTIFIED FOR ENVIRONMENTAL MANAGEMENT
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RUSCA BROS SERVICES
1000+ TEAM MEMBERS
OUR TEAM
CAPABILITIES
AT THE HEART OF RUSCA BROS SERVICES IS AN EXPERIENCED TEAM WITH AN IN-DEPTH UNDERSTANDING OF WHAT’S REQUIRED TO ACHIEVE THE BEST POSSIBLE OUTCOMES FOR OUR CLIENTS.
RUSCA BROS SERVICES HAS DEVELOPED ITS CAPABILITY IN THE CIVIL, MINING AND CONSTRUCTION SECTORS OVER A COMBINED PERIOD OF MORE THAN 80 YEARS. We deliver these capabilities with the highest standards of health and safety, environmental management and quality assurance.
In 80 years of combined operations, the FK Gardner and Sons Group and Rusca Bros Mining have developed a large and diverse portfolio of works, from haul roads and bridges to workshops and offices.
Our employees have vast industry experience and all share a focus on delivering successful projects for our clients.
Our projects often take us to regional and remote sites, which can naturally present some unique challenges. We understand this and have developed specialist processes and teams dedicated to undertaking regional and remote projects efficiently and effectively.
CIVIL CONSTRUCTION project management mine access and haul roads earthworks bridgeworks culverts tailing dams quarry operation airfields draining and pipeworks concrete works headworks excavation
What makes Rusca Bros Services different from our competitors is that our clients have direct access to our leadership teams. Our lines of communication are always open so we can be responsive, informed and ready to get the job done.
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ruscaservices.com.au
WE RECOGNISE THAT OUR REPUTATION IS DIRECTLY LINKED TO OUR CLIENT’S SUCCESS COMMUNITY PARTNERSHIPS MINING project management load and haul processing facilities mining camps mining: open cut, mesa and strand drill and blast water treatment and storage
DESIGN & CONSTRUCTION design education facilities commercial offices industrial facilities defence works project management health and aged care facilities retail outlets sporting and community projects multi-storey residential housing
WE BELIEVE THAT THE KEY TO ANY SUCCESSFUL PROJECT IS COMMUNITY ENGAGEMENT. We understand that our commercial activity is important to the economic and social development of the regions, so we strongly believe in using local subcontractors and labour where possible. We also financially support a number of sporting and charity groups through sponsorship and commodity donations. Our commitment to communities doesn’t end upon project completion, either. We actively seek ongoing opportunities for local subcontractors we’ve engaged and trained in the regions. When we move on from each project site, our goal is to leave behind a positive imprint on every community we partner with.
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IN D U S T RY N E W S AND U PDATE S
APLNG Almost ¾ of the way there The Australian Pacific LNG project in Queensland is well on there way with over two thirds of the project accomplished. After reassessing the March quarterly production report, Origin continues to make solid progress. With Apoximately 68 per cent of the APLNG project completed, Origin is well on track to deliver on time around mid-2015. During the quarter the temporary power station and water ponds were finished to allow gas and water manufacture from Reedy Creek. The quarter saw the delivery of two molecular sieve dehydrators, propane refrigerant accumulator and
the diesel oil transfer pump, the analyser shelter and train 2 air coolers, compressor area collection tank pump and the train which are significant contributions to the project. Through the quarter the structural progress of the jetty and loading platforms carried on. Also manufacture of structural steel, cable tray erection and piping both under and above ground progressed. On Curtis Island, near Gladstone a 530 kilometer transmission pipeline and a multi-train LNG facility are in development. As well as a substantial coal seam gas resources in the Surat and Bowen basins.
This all a combined undertaking between Origin Energy (35.5%), ConocoPhillips and Sinopec (25%). 69 million was contributed from Origin over the three months. APLNG partook in 199 development wells, 17 groundwater monitoring bores and 13 exploration/ appraisal wells, equaling 229 wells throughout the March quarter. Due to changing seasonal demands, a 3% decrease in productivity was reported by Origin. Sales and Production increased compared to the corresponding quarter in 2013. Production rose by 10%, therefore increasing sales by 27% with higher average commodity prices.
FYFE Established in 1982, employing more than 500 staff and with offices throughout Australia Fyfe is an established land, resource and infrastructure development consultancy that specializes in comprehensive engineering, planning and surveying services for Australia’s land development, energy, mining and oil & gas industries. The 32 year old company began with simple roots as a single-person survey business based in
Adelaide, South Australia. Fyfe grew rapidly and soon went from a single-person survey business to a major player in land development consultancy. During 1995 they established an engineering division, which they expanded on in 2001. Then in 2012 Fyfe merged with Adelaide land consultancy Connor Holmes. Fyfe provides its services to projects Australia wide, helping clients by providing solutions. Some
of these projects are the Tiger Brennan Drive Extension in Palmerstone and the Wadeye Gas Plant in the Joseph Bonaparte Gulf. Fyfe has offices in Adelaide, Brisbane and Darwin as well as the regional areas of South Australia, Queensland and the Northern Territory. The vision of Fyfe is to build an exceptional consultancy, which excels at project delivery and creating opportunities for its workers.
Loyz jumps on opportunities in Thailand SINGAPORE’S Loyz Energy set to boost oil production. With a 20 per cent investment in three projects, both onshore and offshore, Loyz is destined to see financial gain. The stakes in concessions L44/43, L33/43 and SW1A are being attained from Australian listed Carnarvon Petroleum, divest half of its 40% interest in the assets as part of the deal. Resources were generating approximately 1200 to 1400 barrels of oil per day overall.
By December 2014, Loyz claims that the production rate should increase up to 5000 barrels of oil per day with the exception of any unanticipated circumstances. ECO Orient Energy have drilled three wells so far with the furher intention to drill 15 wells total. With current production the existing 12 wells should be drilled within the year. Carnarvon optimism increases greatly after the sale; further exploration is on the cards with the increase in funds. Preparation is in order as they set
up to drill Phoenix South-1 well later this year in Australia’s North West Shelf. Loys has been welcomed to the Thai development by Carnarvon Petroleum. Managing Director Adrian Cook states that the transaction enables them to commercialize a significant proportion of the value of their Thai assets. It ensures that Carnarvon is very strongly focused on creating value from success in its North West Shelf endeavors.
Santos Group One of Australia’s leading gas producers Santos has been an Australian energy pioneer since 1954. Santos currently has 10 exploration projects underway, at various stages, within Australia and Asia. These include the Mt Kitty well, in the Amadeus basin that has had gas discovered and is currently under evaluation, and the Tanumbirini well, in the McArthur basin, which once underway will be explored for Shale oil and gas, for the Northern Territory. Drilling in the McArthur Basin is planned for later this year. With drilling finished in the Amadeus basin Santos is working on connecting the drilled wells in this area to existing infrastructure. Santos also has an appraisal drilling campaign commencing this year in the Bonaparte basin, on the border of Western Australia and the Northern Territory. In Western Australia they are in the drilling stage for the Lasseter well in the Browse basin and have found the Vanuatu well in the Carnarvon a
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dry hole. The South Australian Moomba well in Cooper basin has found successful gas and the Santos Group’s two wells in the Papaun basin in Papua New Guinea (PNG) is pending testing. They also have a well in Indonesia and Vietnam planned for exploration this year. The Santos group does work Australia wide and in Asia. Currently they are a leading producer of natural gas, gas liquids and crude oil in Eastern Australia and one of the largest producers of domestic gas and major oil and condensate producer in Western Australia. In the Northern Territory they are a leading energy company. As for their work in Asia, Santos has a development and production focus on Indonesia, Vietnam and PNG as well as exploration focuses in these and other countries. Santos work in Asia is overlooked from their Singapore office. They are expecting Asian production to grow this year with the introduction of three new producing assets brought on line, including a PNG LNG project.
Fuel Calibration Services specialise in Calibration & Certification, Metering, Hydro Testing, Fuel Farm Maintenance and Repair services to clients in mining, aviation, defence, and other high tech sectors throughout Australia, including Remote Areas and off Shore including Asia Pacific. Incorporating a NATA accredited laboratory we provide the optimum environment to test and calibrate your equipment. We constantly maintain full ISO 17025 accredited compliance, and are valued for the accuracy and quality of our testing and calibration so you can be confident in the reliability of your equipment to meet all your businesses safety and industrial standards. A L L C E R T I F I C AT E S S U P P L I E D I M M E D I A N T LY O N C O M P L E AT I O N O F W O R K
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2/21 College Road, Berrimah, NT 0828 | Ph: (08) 8947 4700 | F: (08) 8947 4711 | E: info@fcsnt.com.au
www.fcsnt.com.au
IN D U S T RY N E W S AND U PDATE S
ARAFURA RESOURCES A world-class rare earths resource in the Northern Territory, on track to enter the global supply chain this decade, that’s the essence of Arafura Resources Limited. The company started in the Northern Territory during 2001 that made a quick ascent to being listed on the Australian Securities Exchange in 2003, Arafura Resources has a big vision. Aiming to become one of the world’s leading rare earths companies Arafura Resources’ first step towards their goal is developing its Nolans Rare Earths Project. Arafura Resources 100% owns the Nolans Project, which is hinged on their asset the Nolans Bore rare earthsphosphate-uranium deposit that was discovered in 1995. Nolans Bore is located approximately 135 kilometers north north west of Alice Springs and approximately 10 kilometers west of the Stuart Highway near Aileron Roadhouse. This deposit is one of the world’s largest and most explored rare
earths deposits, it contains 47 million tonnes of mineral resources. Over 50% of those mineral resources have been converted into ore reserves, which are sufficient for supporting mining and processing operations for 22 years. In its exploration of the area of the Nolans Bore, which is part of the Aileron-Reynolds exploration land package, Arafura Resources aims to focus its exploration on rare earth opportunities, which are likely to deliver an additional mill feed to the Nolans Bore. Arafura Resources also carries out explorations in other areas of the Territory that it has licenses for though the Nolans Rare Earths Project is its main focus. They aim to leverage their existing resources, expertise and strategic partnerships to identify and pursue other opportunities, which are consistent with their vision.
JOHN HOLLAND Winner of the Infrastructure Project of the Year and Government Partnership Excellence Awards for the 2014 Infrastructure Partnerships Australia (IPA) Awards, and a joint partner in the Ichthys Onshore LNG Facilities Site Development is John Holland. John Holland, one of Australia’s leading engineering, contract and service providers has been involved in big name projects for the Territory. In 2012 they entered a joint venture with Macmahon Holdings Ltd on the $340 million Ichthys Onshore LNG Facilities Development Contract. The Ichthys LNG project being a joint venture between INPEX and TOTAL, with its processing facility to be built at Blaydin Point is soon meant to be finished. The other major project John Holland has been involved in is the $112 million Robertson Barracks Defence Logistics Transformation Program (DLTP), which they were awarded, in April last year. This project which aims for completion this December, is a part of the Australian Government Defence Department’s DLTP based on the 2009 Defece White Paper, ‘Defending Australia in the Asia Pacific Century: Force 2030’. The main purpose for this development at Robertson Barracks is so the Northern Territory Joint Logistics Unit is no longer spread across four sites but can occupy one site, Robertson Barracks. John Holland is developing 340,000m2 of Robertson Barracks to provide 11 new buildings. A subsidiary of Leighton Holdings Limited, John Holland was founded in May 1949 by Sir John Holland. The people at John Holland have experience in tunneling, building and civil construction solutions, delivery of major water and environment, energy, minerals and industrial projects. They have won multiple awards protesting to their skills in what they do and pride themselves on being able to deliver diverse, complex and challenging projects. Operating for over 65 years John Holland has been instrumental in shaping the landscapes of many communities.
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IN DUSTRY NEWS A ND U P DATES
ASCO NUMATICS The Northern Territory’s leading provider of oilfield logistics and related services, an international oilfield support services business that’s ASCO. ASCO is a global leader in oilfield services so its no wonder they’ve been involved in the creation of a oil and gas port in Darwin as well as been given a 20-year management contract to run the Darwin Marine Supply Base. Only beginning its Australasian operations in2009 ASCO has quickly gained a foothold in the Australian market, with their Australasian HQ based out of Perth. Besides its Perth and Darwin based activities ASCO also has a specialist brand, Oniqua, with an office in Brisbane. The global company came from humble beginnings, starting its life in 1967 as Aberdeen Service Company (North Sea) Limited with the commencement of exploration for oil in the North Sea. It is currently headquartered in Aberdeen, UK where it was founded. ASCO offers a range of services including offshore supply base management, onshore oilfield support, fuel services, environmental services, personnel and training, inventory and materials and advisory and technical services. They also host eight specialists businesses. Operating across four regions, the Americas, Europe, Middle East & Africa and Australasia, ASCO dedicates itself to moving quickly to meet client’s needs and desires. For the majority of ASCO’s activities are delivered by large, multi-service long-term outsourcing contracts. ASCO prides itself on sustainability and supporting clients in an economically and environmentally safe and socially responsible manner. The company also considers the health, safety, quality and protection of the environment an integral part of its business.
BHP BILLITON A massive, leading global resources company working towards creating long-term shareholder value through discovery, acquisition, development and marketing of natural resources, that is BHP Billiton. Most Territorians will have heard the name BHP Billiton, and will be able to tell you its involved in mining. What most Territorians aren’t able to tell you is that BHP Billiton has approximately 11 global locations in Australia, some corporate offices and a variety of mines for Petroleum & Potash, Aluminum, Manganese & Nickel, Coal, Copper and Iron Ore. And BHP Billiton has a number of fly in fly outs (FIFOS) working in their mines and various employment opportunities that connect it to the Northern Territory. BHP Billiton is an Anglo-Australian company that has been operating for over 150 years, developing and contributing to industry. Started from a merger between two small mining companies BHP and Billiton, which were founded during the mid-1800s. The Billiton mining company can be traced back to 1851, as a tin mine on an Indonesian island called Billiton or Belitung, and became a global leader in metals and mining, while BHP goes back to 1885, known as Broken Hill Proprietary operating a silver, lead and zinc mine in Broken Hill, Australia. BHP was a market leader in value-added flat steel products. The companies merged in June 2001 to become BHP Billiton one of the world’s largest and most diverse resource companies. As one of the world’s largest producers of major commodities BHP Billiton has a diverse and unrivalled portfolio. They offer a diverse range of opportunities and pride themselves on operating with integrity.
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W
ith civil works at an advanced stage and major work underway on all key infrastructure at the Bladin Point site, it’s on the water where most activity is visible and a key chapter is closing. As Darwin eyes its newest visitor, the 188 metre-long semi-submersible pipelay barge SEMAC-1, INPEX General Manager Darwin Sean Kildare spoke to Territory Life about saying goodbye to the dredgers and the program that has been such a big part of the Project’s life with the community. Ichthys LNG Project dredging has been underway in Darwin Harbour since mid-2012. The program was designed to safely dredge and dispose of 16.1 million cubic metres of material to create a safe shipping channel and berthing area for large LNG and condensate carriers. By 30 June, the now familiar dredging vessels – many of them known locally by name, like the Queen of the Netherlands – had left to continue work in other waters. By the time this edition of Territory Life is published, dredging is scheduled for full, technical completion. INPEX sees its dredging program as one of the Project’s greatest successes in Darwin. Not just for getting the job done, but how it got the job done. The example it uses most often is the successful removal of tough rock at Walker Shoal – considered to be the most technically challenging section of the dredging program – without the need for drilling and blasting. Tough and abrasive rock at Walker Shoal had been identified as possibly requiring drilling and blasting in the Ichthys LNG Project Environmental Impact Statement (EIS), which was
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approved in May and June 2011 by Northern Territory and Commonwealth governments, respectively. Following a successful trial of an alternative method last year, the lead dredging contractor – international dredging company Van Oord – completed the work in 40 days over eight months, using a combination of vessels, including the cutter suction dredger Athena, trailer suction hopper dredgers and a towed plough. Sean Kildare said a team of more than 250 people had worked hard to minimise disturbance to the community and environment.
wasn’t one available, and we then delivered on that commitment.” “It was and is a good result for us, the environment and the community – and it should give people further confidence about our will to go the extra step.” All of the Project’s activity has been taking place under the watchful eye of an extensive and world class environmental monitoring program.
“Though we always knew it would be technically challenging, deepening Walker Shoal was absolutely necessary so vessels could one day get to and from Bladin Point safely,” he said.
Two years ago, the Project initiated its monitoring program to identify any changes in the harbour from its dredging and construction activities. To ensure it could keep a close watch on the harbour, the Project put together a suite of 13 programs that monitor water quality, coral, mangroves, seagrass, fish health, underwater noise, water currents, turtles, dugongs, coastal dolphins, and critters living on and in the seabed.
“We made a commitment to find an alternative, at a time when technically there
The programs started after the approval of the EIS and have been running continuously.
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As yet, with the dredging program nearing completion, the Project has only seen a few minor impacts that are in line with, or less than, what they predicted. It’s something they’re very proud of. Mr Kildare said the team is also hoping the range of discoveries made during the course of its work will contribute to the longevity of the harbour’s marine health for decades to come. “We now know a lot more about the harbour than when we started the program and – given that we’re going to be operating here for 40 years or more – it’s exciting that we’re going to be able to hand this information over to the Territory,” he said. In just 24 months the team has documented some interesting findings, like the discovery of 68 new Darwin Harbour mangrove fauna species, 500 million pixels of mangroves recorded from space and even fish choruses.
• • • • • • •
Sixty-eight new Darwin Harbour mangrove fauna species comprising 18 worms, 17 molluscs, 16 crustaceans, 11 ants, four fish and two other fauna species Nine new species of parasites – seven nematodes and two monogeneans – identified by fish health expert, Dr Ben Diggles Over 2,600 interviews with recreational anglers at boat ramps in the Darwin region (Recreational Fishing and Fish-Health monitoring program) Three juvenile green turtles fitted with satellite tags, Pepin, Chloe and Hendrix, don’t venture too far from their capture and release location at Channel Island Aerial surveys covering almost 3000 km2 have found dugongs tend to be sighted most often off Hope Inlet and in Shoal Bay, where seagrass can be found during the dry season Darwin has 97 resident dolphins, comprising three different species. The majority stay in the harbour, with 10 per cent moving between it and Bynoe harbour and one lone individual moving between it and Shoal Bay. Parts of that monitoring program will continue after dredging ends. The Project has an ongoing commitment to monitor the Darwin Harbour environment, so people will continue to see those environmental scientists working on and around the water. Part of their work will be to monitor how quickly things revert back to pre-dredging conditions.
The Ichthys LNG Project is ranked among the most significant oil and gas projects in the world. Halfway through construction, production is scheduled for the end of 2016. Besides the massive onshore processing infrastructure in Darwin, the Project includes some of the world’s biggest and most advanced offshore facilities. Uniting them will be an 889 kilometre pipeline. And with the dredgers leaving, that’s the next big step.
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Construction of the 18kilometre Darwin Harbour component of the pipeline began in June, following the arrival of the 188 metre-long semi-submersible pipelay barge SEMAC-1. The commencement of the pipelay work means that the Project is starting to physically connect its home base in Darwin to the field where its floating offshore facilities will be permanently moored for the life of the Project. Initially, the SEMAC-1 will feed pipe for the onshore component of the pipeline to connect with the Project’s onshore processing facilities, before continuing with shallow water pipelay – 164 kilometres all up. Once in deeper water, the pipelay barge Castarone will lay the remaining 718 kilometres of pipe to the Ichthys Field. Once the pipeline has been installed, 770,000 tonnes of rock armour will be placed on top of it along its Darwin Harbour route.
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Road tRanspoRt seRvices and availability The transport industry and its functions are embedded in and essential to Northern Territory businesses, the community and the economy. Significant investment has been made in the development of the Northern Territory’s transport systems, including the expansion of the Port of Darwin, completion of the Alice Springs to Darwin railway line, enhanced public transport services and extensive road infrastructure upgrades. The national highway network is the backbone of the road network system across the Northern Territory and provides all-year access to Australia’s capital cities. The NT has an open access regime for road trains and a proven innovative high productivity vehicle scheme with no first and last mile access issues, as are prevalent in other capital cities and urban areas around Australia. Importantly, this open access regime continues directly to the Port of Darwin, which is the closest deep water port in Australia to Asia. This regime delivers maximum efficiency, with minimum regulatory burden on industry, without compromising safety. The Northern Territory is served by three national bitumen sealed highways: •
The Stuart Highway links to South Australia
•
The Barkly Highway links to Queensland
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The Victoria Highway links the NT into the Kimberley region of Western Australia
In total, the Northern Territory road network is made up of more than 36,000 kilometres of national highways, arterial, secondary and local roads: •
Many of these roads are subject to flooding during the wet season, which can cause some communities across the NT to be isolated for weeks at a time.
•
Some roads also have traffic restrictions imposed such as wet season closures, weight limits or access restricted to high clearance four wheel drive vehicles only. These restrictions can apply close to urban areas, as well as to more remote areas. The restrictions are in place to minimise the potential for damage to the roads, and to protect travellers who may find themselves stranded without easy access to assistance.
•
70% of the road network in the Northern Territory is unsealed, and road freight/transport operators advise that their operating/maintenance costs are up to 30% higher for vehicles operating on unsealed roads.
Investors considering projects that are dependent upon reliable road access are encouraged to contact the NT Department of Transport for advice, especially if there may be a significant change in traffic volumes, and particularly if new roads and infrastructure such as bridges, drainage and intersections may be required. Visit www.transport.nt.gov.au Additional information on the road network can be obtained from the NT Department of Transport. Visit www.transport.nt.gov.au/ntroads Additional information on road restrictions can be obtained from the NT Road report website. Visit www.ntlis.nt.gov.au/roadreport
An excerpt from the NorthernTerritory Investment Guide October 2013.
Visit www.investnt.com.au
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CANBERRA
INDUSTRY
CORPORATION In 2010 Charles Darwin University (CDU), the Larrakia Development Corporation Pty Limited (LDC) and Canberra Industry Corporation Australia Limited (CIC) entered a project development agreement to make a residential community in Palmerston. That project is The Heights in Durack. The site at Durack chosen for The Heights was rezoned in 2012, after the partnership was forged and agreed upon, to special use allowing the development of the new residential area to be part of the NT Government’s Housing The Territory initiative. This developing area will contain more than 300 residential dwellings and a further 70 dwellings for independent retirement living once its completed. It has been specially designed to ensure integration with the existing suburb of Durack and the Palmerston Town Centre. The site is an elevated location and located close to the CDU Palmerston Campus, allowing future residents access to schooling, employment and shopping. The Heights, Durack are also within quick reach of Darwin’s CBD, Casurina Shopping Centre and Darwin Airport, which are all approximately 20 minutes drive away. For the development process the initial superlot that makes up The Heights, Durack was subdivided into seven stages. During development the project has continuously
carried out a comprehensive and transparent community consultation process allowing government agencies, the Palmerston City Council and local resident and groups to offer comments and information to help form the design for the new community. The project aims to provide a range of diversity in the housing options available, something for everyone, from first homebuyers to people looking for retirement living accommodation. The master plan for The Heights, Durack is to enable buyers to build their home of choice and create a close-knit community. Currently lots are available for purchasing. Block sizes range from 303m2 to 900m2. Partners in the project LDC pride themselves on delivering quality housing and provide employment opportunities for Larrakia people. LDC also worked on the Rosebery Heights in the Palmerston area and the Lyons project. Their area of expertise covers land holdings and development, heritage monitoring, ground maintenance, landscaping and turf farming. LDC’s board and management are led by members of the
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Traditional Owner group od Darwin, the Larrakia people. For CIC The Heights, Durack will be its second major joint venture project in Darwin. It’s first being the Lyon’s project. CIC will be responsible for project management, sales, marketing and community development for this project. The CIC dedicates itself to ensuring that new communities it works on respect their local environment, social and physical context, recognize the unique heritage of the site and strive to support the creation of its own unique character. CIC, which started as Jerrabomberra Estates Limited in Canberra during 1986 takes on major projects across Australia and has offices in Canberra and Adelaide as well as an office here in Darwin.
Level 1, 48 Marina Boulevard Cullen Bay, Darwin 0801 P 08 8981 8419 F 08 8941 9781 www.cicaustralia.com.au
DOW CHEMI CAL CO MPAN Y
ANDREW LIVE RIS
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WAS ORD STAGE 2 COMPLETED? In the period 2010-2013 the State of Western Australia completed key infrastructure –roads, irrigation channel and control structures, and drains (86km) to support Ord Stage 2 (13,400ha), through a $322m investment from the State Royalties for Regions program. Following a Request for Proposal process the appointed private developer, Kimberley Agriculture investment (KAI) commenced land clearing and development of the new farm land. First crops of approximately 2,500ha are
expected in 2015. Over the next few years the 13, 400ha of new land will be cleared laser levelled and bought into production. Irrigation water is supplied by gravity from Lake Argyle via channels. The main arterial irrigation channel ends 6km from the WA/NT border and has been scaled with sufficient capacity to irrigate at least further 15,000ha of new land across the border in Northern Territory, known as Ord Stage 3.
The WA, NT and Australian Governments signed a Memorandum of Understanding in 2012 committing to work towards the expansion of the Ord River Irrigation Scheme into the Northern Territory.
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Photo by: Nathan Dyer
WHY IS THE WA GOVERNMENT NOW LOOKING INTO FURTHER DEVELOPING THE ORD AND EAST KIMBERLEY REGION? The WA Government seeks to grow and diversify the economy and through that bring improved services and choice to people. The East Kimberley region has unique opportunities given the presence of Lake Argyle (10,670GL) which is currently under-utilised, and expanding food and fibre production from water in the Lake is
key goal. This goal is a major part of the effort to develop Northern Australia. Expansion of the Ord Irrigation Scheme is also needed unlock the potential benefits of the native title agreement signed on 2005 with the Miriuwung and Gajerrong people. A range of those benefits can only be derived through the Irrigation Expansion
Photo by: Nathan Dyer
THE EMPLOYMENT OF OVER 200 ABORIGINAL PEOPLE ABOUT 10 OF WHICH
NOW FIFO TO THE INPEX PROJECT IN DARWIN. Government agencies. The Shire of WyndhamEast Kimberley, Warmun Community Inc. and Waringarri Aboriginal Arts Corporation were responsible for delivering an additional eight projects.
The Ord-East Kimberley Expansion Project has seen over $517 million invested in the East Kimberley. This investment includes a Commonwealth contribution of $195 million in social and common use infrastructure through the East Kimberley Development Package National Partnership Agreement.
The East Kimberley Development Package is a prime example of the Commonwealth and State Governments working together with local communities to delivery benefits to regional areas.
The Department of State Development coordinated the delivery of 21 of the 29 projects funded by the East Kimberley Development Package, in conjunction with other State
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THE PROJECT IS BEING CARRIED OUT BY THE WESTERN AUSTRALIAN AND COMMONWEALTH GOVERNMENTS IN COLLABORATION WITH THE SHIRE OF WYNDHAM EAST KIMBERLEY, ARE THERE ANY OTHER GROUPS INVOLVED IN HELPING WITH THE PROJECT AND IF SO, WHAT ARE THEIR RESPONSIBILITIES The Miriuwung and Gajerrong people via their MG Corporation are very involved, particularly in the recruitment, training and employment of aboriginal people. They will also own new farm land (minimum 680ha). The farming community of the Ord Irrigation Scheme, local contractors and many key private companies and Government agencies have collaborated to make the project possible. The Northern Territory Government has worked closely with the Project. Kimberley Agricultural Investment (KAI) the appointed developer and operator of most of the new farm land has commenced developing the land and plans to build processing facilities, potentially investing more than twice what the Western Australian Government has done.
Hon. Brendon Grylls
Ted Carlton
Former Minister for Regional Development and Land
MG Director
Mr. Yin
CEO of KAI
Photo by: Nathan Dyer
A LOCAL DIRECT SPEND OF AROUND $130M THROUGH 82 BUSINESSES IN THE EAST KIMBERLEY. Upgrading the Kimberley Training Institute, an Early Learning Activities Centre in Wyndham, a new Community Library and extensive upgrades of Kununurra District High School. 100 new social and transitional houses in Kununurra and Wyndham, the Waringarri Aboriginal Arts Centre and a swimming pool and community jetty in Wyndham.
A rehabilitation facility in Wyndham, an aged care facility in Kalumburu, short stay patient accommodation and expansion of health facilities in Kununurra, aged care facilities and a remote clinic in Kalumburu. Upgrades at Wyndham Port and improvements to the airport and patient transport facility in Kununurra.
SIGNIFICANT WORK FOR LOCAL SUPPLIERS AND CONTRACTORS 101
SHERWIN IRON An Australian iron ore exploration and development company, Sherwin Iron is the company handling the Northern Territory’s Roper River Iron Ore Project.
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The Roper River Iron Ore Project covering 4000km2 is located approximately 500km south east of Darwin. It’s chosen location is in an emerging Iron ore province, which is comprised of identified iron ore deposits and prospective, unexplored tenements. BHP had investigated parts of the location and surrounding area between 1955 and 1961, finding at least 26 iron ore prospects. The first export of iron ore from the project was in October last year. Sherwin Iron’s plan for the project is to fast track exploration and development of the Hodgson Downs Deposit, which is located on the western side of the project and is comprised of the W deposit and 5 other deposits identified by the BHP exploration. It is estimated that the W deposit has the potential to produce at least 20 million tones of product grading 57% Fe.
As a company Sherwin Iron is committed to sustainable development and maintaining strong relations with Land councils, native titleholders and the community. They endeavor to comply with legislative and common law requirements that are relevant to their business, particularly occupational health and safety, environment, native title and cultural heritage laws. Making a point of complying with all applicable legal requirements so as to reduce chances of negative impact occurring from their operations.
Sherwin Iron Limited|Head Office 4/4 Shepherd Street, Darwin NT 0800 E corporate@sherwiniron.com.au T +61 8 8941 3844 F +61 8 8941 4355
www.sherwiniron.com.au
GLENCORE
MRM 104
Supplying
of global demand for high-grade bulk zinc-lead-silver concentrate, a part of one of the world’s largest global diversified natural resource companies, McArthur River mine has been operating for almost 20 years.
McArthur River zinc mine is located in the Northern Territory’s Gulf of Carpentaria, approximately 65 km south west of Borroloola and 900 km south east of Darwin. It has an estimated mine life till 2038. The mine is within five adjoining mineral leases located on the McArthur River Station Pastoral Lease, which is an 8,000km2 operating property leased and managed by Colinta Holdings Pty Ltda Glencore subsidiary. The station runs around 17,000 head of cattle. Concentrate from the mine is transported to MRM’s Bing Bong loading facility where it is then loaded on a barge and transported to ships at sea in the Gulf of Carpentaria. The Bing Bong facility is located on a mining lease also located within the McArthur River Station, approximately 120 km north of the mine. Between 2007-2008 MRM began development on an open pit for the mine that until then had been completely underground. Now MRM is focusing
The Glencore owned company, McArthur River Mining Pty Ltd (MRM), is the operator behind the McArthur River zinc mine that’s been operating since 1995.
on getting approval on its Phase 3 Development, which will expand on the open pit and be within the existing approved bunded areas. During 2009 MRM began producing a new zinc concentrate for supplying electrolytic smelters. MRM’s total production represents roughly 3% of the world’s zinc resources used by all types of smelters each year. Imperial Smelting Process smelters, to produce zinc and lead metal alloys, in Europe and Asia, use the high-grade bulk zinc-leadsilver concentrate from the mine. MRM employs 351 permanent employees and 437 contractors for the mine, which has a production capacity of estimated 5.5 million tonnes per annum. Integral to MRM’s operations is sustainable development. They focus on balancing social, environmental and economic considerations and striving to improve performance with this all combined into their decision-making process. The
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MRM zinc mine is a significant contributor to the local economy and Borroloola region. MRM works together with the Borroloola School to help VET students with apprenticeships, taking VET students on as apprentices and helping them with employment when they finish schooling. Glencore has over 90 offices across over 50 countries. They employee approximately 190,000 people and have more than 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities. The group is a major producer of over 90 commodities and is structured into three distinct business segments, Metals & Minerals, Energy Products and Agricultural Products. Until recently the company was called Glencore Xstrata because of the merger between Glencore and Xstrata last May but this May it was revealed that the company was dropping its dual moniker and now it is simply Glencore.
Darwin
Darwin Royal Show SEAAOC
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Field Day
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Collie
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Boulder Fair
Newdegate Field Day
Wagin
Woolorama
Esperance
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Margaret River Agricultural Show
Albany
Agricultural Show
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Exhibition Services throughout
WA NT and
Since its establishment in 1955, Barrett Displays has become renowned for our innovative approach to the design, manufacture and installation of customised display elements. Barrett Displays remains a vibrant, expanding company offering a rare combination of services. At our extensive Osbourne Park facility, we are able to handle almost every aspect of the manufacturing process under one roof, from design to timber, metal and plastic fabrication, large format digital print and spray painting. This range of services delivers the dual benefits of total project control and cost competitiveness, as the reliance on third parties is kept to an absolute minimum. With over 50 years’ experience, Barrett Displays has a proven track record in the delivery of projects large and small, both on time and on budget.
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Exhibition Services throughout
WA NT and
WA and NT Shows include: • SEAAOC
• Country Field Days
• FeNaCING
• AOG
• North West Expo
• APPEA
Clients from WA and NT: • ConocoPhillips
• Asco
• Aggreko
• Total E&P
• Bhagwan Marine
Barrett Displays can design, manufacture, install & remove your stand from the exhibition, as well as taking care of all the logistics required. We produce everything in house and welcome your input into all aspects of the process and encourage our clients to visit our state of the art manufacturing factory to see their stand being produced and to view the material used We have produced many award winning stands for many industries including Oil & Gas, Healthcare, local Government, Tourism and Education to name a few. Barrett Displays can supply a wide range of Octanorm & Maxima Display Systems which can be designed into any layout. These unique systems are flexible and can be used to enhance your company image with corporate image panels and graphics.
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Extensive experience at shows throughout Western Australia and Northern Territories makes Barrett Displays uniquely specialised to deliver all aspects of your project. Your exhibition booth can be manufactured at our facility in Perth, transported on our fleet of freight vehicles, installed by our skilled and dedicated team before being dismantled and transferred back to our storage facility to await your next show. Barrett Displays also offer second to none support during the duration of the exhibition. For smaller projects talk to us about our extensive range of for-hire options, delivering an affordable and flexible solution.
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Call us on +61 (0)8 9244 2431 or +61 (0)416 504 161 or email info@barrettdisplays.com.au Find out more on www.barrettdisplays.com.au
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AROLYN CENDO
THE
SUNSHINE
OF Somerville Com mun i ty S er vice s While the industries like construction and tourism are commonly noted for developing the North – people like Carolyn and the other staff at Somerville Community Services are supporting the people of the North. Carolyn started her career with Somerville Community Services 29 years ago this July, and she is described by other staff as “the sunshine of Somerville”. Initially taking a position at a childcare centre run by Somerville in 1985, Carolyn soon found her niche after transferring to an administration role and now fulfils the organisation’s essential Administration Coordinator role. Carolyn has relished being the crucial backbone supporting the workers who assist Territorians in need ever since. Carolyn epitomizes the attitude needed by support staff to help develop the north. Nothing is too much trouble for Carolyn, and we thank her for her years of dedication. Congratulations on your many years of service, Carolyn!
Somerville Community Services and Developing the North Building strong communities needs strong support networks.
helpline, money management workers, providing no interest loans
Somerville Community Services provide disability, family and
and tax help, amongst other services, and are one of the most critical
financial support services to the Northern Territory community
ways Somerville Community Services helps people regain control
from three main offices in Darwin, Palmerston and Katherine,
of their lives. These services are confidential and free of charge,
as well as over the phone support to people who are affected by
and are provided to everyone from adolescents to adults. Money
hardship or social and economic disadvantage.
management courses provided by Somerville Community Services
Disability services provided by Somerville Community Services
are now integrated into many other organisations’ programs.
includes supported accommodation, social integration, training
All of these services are provided by well-qualified and experienced
and development and a community access program. The supported
staff who genuinely care about the people they are helping. The
accommodation program currently has 12 homes supporting 49
services provided by Somerville for 50 years may seem diverse but
people in three areas across the Northern Territory.
they all come together under the central focus to empower people
Somerville Community Services provide family services including
to exert control over their own lives.
family support and counselling, Katherine youth and family services,
Somerville Community Services employs 250 staff. They assist
outreach family counsellors and a supported accommodation
over 5,600 Territorians and helped more than 1,300 homeless
program to assist people to live independently in the community
people in addition to managing the 12 supported accommodation
and secure long-term accommodation. Advocacy for affordable
houses during 2013. Services like Somerville are less in the public
housing in the Territory is also important to Somerville.
eye, but imperative for keeping the Northern Territory community
Financial services include financial counselling and a phone
and development secure.
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IN D U S T RY N E W S AND U PDATE S
TOTAL OIL
Global leaders discuss oil demand
One of the world’s largest oil and gas companies has declared disruptive technologies will be required to keep pace with global demand for resources. Executives from the Total Group attended the World Petroleum Congress in Moscow, joining business and government representatives from around the world. The theme of the event was ‘Responsibly Energising a Growing World’ – an issue which Total says is central to its concerns as one of the world’s foremost international oil companies. Total Upstream president Yves-Louis Darricarrère was a panellist at the discussion on new frontiers in conventional and unconventional oil and gas. He said the greatest issue of concern was not whether there were sufficient resources, but whether or not they could be produced quickly enough. “Disruptive technologies will be needed to produce these resources, while at the same time complying with increasingly stringent safety and environmental requirements and keeping a tight rein on costs.” “Effectively reducing exploration and production costs is the key challenge that the oil industry as a whole will have to work together to meet in the years ahead.”
ASPEN MEDICAL
Lifesaving software tops the smart list The lives of resource industry workers are now safer with the help of an award-winning Australian software program. The Predictive Modelling Decision Making Tool has been recognised as one of the top 100 innovative products in Australia by the Anthill Smart 100 List. Aspen Medical developed the potentially life-saving software in conjunction with University of Adelaide’s Mathematical Modelling Team. The software was inspired by the need for accurate, advanced planning for medical, infrastructure, equipment and aviation needs for aero-medical evacuations. The growth of the resources industry in WA has placed enormous pressure on these services, with oil and gas employees increasing from 3200 in 2009 to 17,860 by 2013, resulting from new construction and production programs on the North West Shelf. Aspen Medical’s software will be used to improve patient outcomes, including increasing the chances of patient survival. The innovation was officially inducted into the Anthill Smart 100 list on May 30. Created by Anthill Magazine in 2008, the list identifies and rank Australia’s 100 most innovative products, proving to be one of the largest surveys of its kind in Australia.
HON JULIE BISHOP MP Minister’s visit to PNG
The Australian Federal Government has committed $1-million over three years to the Australia-PNG Network. Foreign Affairs Minister Julie Bishop announced the funding during a visit to Port Moresby in February. The initiative aims to strengthen both economic and social ties between PNG and Australia, increasing opportunities for business, trade and education. Also on the agenda were discussions with PNG Prime Minister Peter O’Neill and Foreign Minister Rimbink Pato on issues of people smuggling, Fiji elections and the Asia Pacific Economic Cooperation Forum in 2018. While in Port Moresby, Ms Bishop participated in a roundtable regarding opportunities for PNG women in business and public life. The visit builds on the outcomes of the Australia-PNG Ministerial Forum in 2013, where both countries made new commitments to a stronger partnership.
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IN DUSTRY NEWS A ND U P DATES
NEW DRIVE IN MARINE STUDY
QUEENSLAND GAS PLANT WorleyParsons Australia is the successful contractor for continuing works on the Queensland Curtis Liquefied Natural Gas plant. QGC, a BG Group business, awarded the Engineering and Project Services Provider contract to support the ongoing expansion and annual program of works. The scope of the comprehensive contacts includes concept, front end engineering design (FEED), detailed engineering, procurement, construction management, operations and field support services. Greenfield and brownfield services will also be provided from WorleyParsons’ Brisbane and regional offices as required. WorleyParsons’ Chief Executive Officer, Andrew Wood, said the company was delighted. “It reflects the success of our relationship with QGC for Phase I of the QCLNG development and the improved solutions we came up with for Phase II,” he said. “This contract provides the opportunity for us to continue to contribute to QGC’s operations into the future”. The QCLNG will be the world’s first project to turn gas from coal seams into liquefied natural gas, or LNG, and is one of Australia’s largest capital infrastructure projects. The project, which has been under construction since 2010, will provide cleaner hydrocarbon energy for export markets. QCLNG will also help to address climate change by allowing natural gas, which has the lowest carbon emissions of all fossil fuels, to be transported economically around the world
TOTAL, INTEROIL IN PNG Major resource groups Total and InterOil are finalising a multi-billion dollar agreement to begin development of gas fields in Papua New Guinea. The deal is reported to be worth US$3.6-billion and involves InterOil offloading a massive 61.3 per cent share of its Elk-Antelope gas fields, while InterOil maintains a 30 per cent interest. Both parties will also explore additional opportunities in PNG and throughout the Asia Pacific. It is hoped the partnership will fund one of the largest hydrocarbon discoveries in Asia in 20 years, governing the sale and purchase of the Petroleum Retention Licence 15, proposed LNG project and exploration rights. The agreement followed an international bidding and evaluation process for development of InterOil’s PNG interests, with. Royal Dutch Shell and ExxonMobil reportedly competing parties. Speaking of the deal to international media, InterOil chief executive Michael Hession said it was satisfying that one of the world’s largest international gas companies shared its faith in developing Elk-Antelope. “Total is a world-class operator and will bring experience and expertise to a development that will diversify Papua New Guinea as a hydrocarbon sector,” he said. “This is a great day for InterOil’s investors, Papua New Guinea, and the people who work for us.” Dr Hession has also committed to reserving gas for domestic supply, announcing the partners would work with government to develop proposals for setting aside gas ‘for generation of affordable electricity throughout PNG.’ Total, has labelled the partnership ‘exciting’. “This new acquisition of an interest in significant resources is an exciting opportunity for Total to develop a new gas production and liquefaction hub in the Asia-Pacific region, where gas demand is very dynamic”, Total upstream president Yves-Louis Darricarrère said. To support the expanding operation in PNG, InterOil is relocating functions from its office in Cairns. “PNG is our base, and where all our activities are,” Dr Hession said. “It makes sense to focus our workforce there.” InterOil has begun a new round of drilling as part of its exploration activities across almost four million acres in PNG, with plans to drill eight wells in the next 18 months.
A remotely-operated vehicle has been used for marine studies for the first time in Thailand. PTT Exploration and Production Public Company Limited launched the marine environment and marine habitat survey. The initiative followed a Memorandum of Understanding with the Training Department of the Southeast Asian Fisheries Development Centre, King Mongkut’s University of Technology North Bangkok, Kasetsart University Research and Development Institute and the Institute of Marine Science of Burapha University. The project emphasises the company’s environmentally-friendly exploration and production practices. PTTEP will first use the ROV for marine environmental studies at the company’s wellhead platforms in the Gulf of Thailand. Technology and Sustainability Development Group active executive vice president Asdakorn Limpiti said the functionality of ROV was to measure and monitor the marine environment and marine habitats using real time data. To ensure the project meets the requirements of all stakeholders and PTTEP’s petroleum exploration and production (E&P) is environmental friendly, academic institutions and the community are welcomed to engage in the operation. “We would like to express our gratitude to all parties to make the project happen. The initiative is in line with our vision in becoming a leading Asian E&P company driven by technology and green practices. We emphasize the environmental friendly operation as one of the key elements of the business sustainability,” Mr Limpiti said.
LNG CHANGING THE FACE OF NT Liquefied natural gas projects are fuelling jobs and growth across Darwin and the greater Northern Territory. Fast becoming the preferred option for exporting a cleaner source of energy to Asia, there are now three LNG processing plants operating in Australia and another seven under construction. US-owned company ConocoPhillips was the first to begin operating in the Territory, building the $1.5-billion LNG plant at Wickham Point in 2006. The 500km gas pipeline carries product from the plant to the Bayu-Undan field in the Bonaparte Basin, north west of Darwin. The pipeline is similar to the Japanese-owned INPEX pipeline stretching 900km from the Browse Basin to Blaydin Point, which is due for completion in 2016. Shell also has a $15-billion floating liquefied natural gas, or FLNG, precinct under construction north of the Kimberley coastline in Western Australia.
THE FACTS ON LIQUEFIED NATURAL GAS • LNG is liquefied natural gas, a natural gas that is cooled to -260° Fahrenheit until it becomes a liquid. The cooling process reduces the volume by 600 times and allows it to be shipped internationally on specially designed and refrigerated gas tankers. • When it arrives at its destination the LNG is warmed and returned back into its original gaseous state and is then used for heating, manufacturing, vehicle fuel and energy production. • Natural gas is also known as methane and is found in several different types of rock including sandstone, shale and coal seams. It is also found in reservoirs deep below the seabed. • There are three operating LNG developments in Australia: The North West Shelf and Pluto projects on the West Australian Coast and Darwin LNG on the Northern Territory coast. • There are seven new LNG projects under construction: three in northern Western Australia, three in Queensland and one in the Northern Territory. • When all LNG projects are operational they will produce 85 million tonnes of LNG which could make Australia the world’s biggest producer. Australia is currently ranked fourth. • In 2012 LNG accounted for more than two per cent of Australia’s gross domestic product (GDP) worth $29.4 billion Source: APPEA
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PROFILE
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BY DRAKE INTERNATIONAL
SELECTION AND RETENTION IN TODAY’S MARKET THE TERM ‘CANDIDATE TIGHT MARKET’ IS USED FREQUENTLY BY EMPLOYERS AND RECRUITERS ALIKE, AND WITH THE STRONG DEMAND IN MANY INDUSTRIES FOR QUALITY EMPLOYEES, THIS IS AN ISSUE THAT IS NOW HITTING VERY CLOSE TO HOME. ACCORDING TO THE RECENT PRICEWATERHOUSECOOPERS CEO SURVEY, 72 PERCENT OF AUSTRALIAN BUSINESSES ARE CONCERNED ABOUT THE AVAILABILITY OF WORKERS WITH THE RIGHT SKILLS. THIS IS THE BUSINESS ISSUE THAT IS STATED AS THE GREATEST THREAT TO ORGANISATION GROWTH PROSPECTS.
Drake International has an office in Darwin, and across Australia, and specialise in developing the people, productivity and performance of our clients through our recruitment and HR services. We are available 24 hours a day, 7 days a week on 13 14 48.
So,
• Ensure candidate expectations are aligned with organisational reality • If a quality selection process is not feasible in-house, outsource to a professional agency RETENTION • Ensure you have capable and inspiring management and leadership in your business • Offer opportunities for development, professional growth and training • Make sure that realistic expectations are established during the recruitment phase and any change in expectation is discussed with the employees • Ensure you effectively manage and communicate any changes to the role or company • Promote a healthy work environment with emphasis on work-life balance • Provide fair and competitive remuneration • Provide a social support structure within the organisation
what does an employer have to do to not only attract and select, but retain top performers in this market? Unfortunately, the ‘one size fits all’ approach doesn’t work. What attracts a Gen Y employee will not necessarily appeal to an experienced Baby Boomer. And what will retain a Gen X staff member may not be applicable to young graduates. In addition, the skills shortage means that there simply may not be any applicants with the required level of training for an advertised position. Luckily, there are some general guidelines that can be used to implement selection and retention practices. While these need to be somewhat flexible to cater to the needs of the generational gaps which make up an organisation’s workforce, they do provide some structure and guidance for employers. SELECTION • Those responsible for selection need to be appropriately trained in using valid selection tools and objectively assessing candidates • Assess job-specific traits using a variety of objective selection tools to gain a broad perspective of the candidate (skills tests, psychometrics, and reference checks) • Conduct behavioural descriptive interviewing to understand the cultural fit of the candidate to the organisation
Regardless of the generational gaps and variety of skills within an organisation, there is a common motivator that applies to all people – appreciation. An employee feeling valued and challenged by their company is just as satisfied with their job as they would be if it were only about money.
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