Mining Autumn 17

AUTUMN 2017

The new Atlas Copco PowerRoc T45 Coming to the New Zealand market.

Big performance at a low cost.

Page 15

RUBIA WORKS 2000: FORMULATED FOR TOUGH CONDITIONS

RUBIA WORKS 2000 10W-40 is a Low SAPS (low sulphated ash content) engine oil especially developed for earthmoving, mining and quarry machinery that are required to operate for long periods at full capacity or with repeated acceleration and idling cycles. Suitable for engines with or without Diesel Particulates Filter.

Get in touch with the team at Total - 0800 TOTAL OIL (868 256). www.totaloilsolutions.co.nz

Energizing performance.

Every day

Contents Âť

Autumn 2017

Contents

9

9 Union Hill preservation OceanaGold and Waihi Heritage Vision are working to to preserve significant heritage foundations on Union Hill.

10 All eyes on gold The Gold 17 international symposium in Rotorua helped showcase the potential for gold exploration in New Zealand.

12 Looking back A new book gives a fascinating glimpse of what life was like in New Zealand mining communities nearly a century ago.

10

18 Quarry concerns The quarry industry has introduced initiatives to help increase the pass rates of its new Certificate of Compliance.

If you have an image you think would look great on the cover, contact us:

12

Phone 03 983 5500 Email nick@waterfordpress.co.nz www.waterfordpress.co.nz

PUBLISHER:

PRODUCTION MANAGER:

James Lynch Ph: 03 983 5500 Email: james@waterfordpress.co.nz

Luke Lynch luke@waterfordpress.co.nz

EDITOR:

Ann-Marie Frentz Phone: 03 983 5554 Email: annmarie@waterfordpress.co.nz

Nick Gormack Ph: 03 983 5559 Email: nick@waterfordpress.co.nz

JOURNALISTS:

Hugh de Lacy, Kim Newth, Karen Phelps, Peter Owens

MARKETING CONSULTANT: Paul Crowther Ph (03) 983 5503 paul@waterfordpress.co.nz

18

ISSN 2324-1187

Cover photo courtesy of FirstBreak.

CUSTOMER SERVICES:

ART DEPARTMENT:

Samantha Stuart Email: art@waterfordpress.co.nz

OFFICE / ACCOUNTS:

Helen Bourne, Jill Holland Ph: 03 983 5500 Email: helen@waterfordpress.co.nz

These conditions are prescribed for the sake of understanding between the Company and its clients. Advertising is charged for on the basis of space taken up using a standard tabloid page. Actual space may be reduced during the printing process but this will effect all advertisers equally so no credit will be given for any reduction in size due to processing. The Company reserves the right to alter, change or omit entirely any advertisement or article that it considers to be objectionable or which may contravene any law. In the event of a failure on the part of the Company to insert advertising as instructed the Company may publish the advertisement at the first available subsequent reasonable date unless the advertisement features date sensitive material. Every care shall be taken to publish the advertisement in accordance with the advertisers instructions as to page and position but the Company reserves the right for whatever reason to place advertising in a different position and in doing so shall incur no liability whatsoever. Advertisers must advise Mining NZ immediately of any error or omission in advertisements and shall work constructively to remedy the situation which in the first instance shall be a rerun of the corrected advertisement in the next available issue of Mining NZ. Where advertisement proofs have been faxed or mailed to the client 48 hours prior to the nominated printing cutoff time acquiesce shall be taken as confirmation and acceptance. Corrections made by telephone shall be accepted but the Company reserves the right to decide whether a further proof should be faxed or mailed to the client. Accounts for advertising are due for payment within seven days of publication of the newspaper. Accounts not paid within this time may incur a penalty of 3% per month until the account is paid. Any debt collection costs incurred by the Company will be added to the account of the debtor. Views and opinions expressed in Mining NZ are not necessarily those of the editors, Waterford Press Ltd or publisher. Mining NZ welcomes contributions from freelance writers & journalists. All articles published at editors discretion. Mining NZ accepts no responsibilty for loss of photos or manuscripts.

112 Wrights Road, Addington PO Box 37 346, Christchurch Phone 03-983 5500 www.waterfordpress.co.nz

News »

Call made for industry groups to combine Karen Phelps

A

controversial proposal to eliminate four industry organisations and combine them into one was tabled at a strategic review of the Mining/Extractives Health and Safety Council (MinEx) in mid-February.

Attended by more than 20 quarry and mining sector representatives, the proposal was tabled by Stevenson Group which stated after a 12 month transition period it would only provide funds to a single extractive sector organisation.

Stevenson general manager of aggregates, Steve Ellis, says the company is committed to changing the way the industry is presently represented.

“We’ve got AQA, IOQ, Straterra and MinEx. There are too many organisations doing little bits and pieces.

“There are too many different voices and it’s not united.

“We want one organisation to handle our industry with regards to issues such as health and safety, training and representation to central and local government,” he says.

Ellis says key advantages of a single body to represent the industry would be efficiencies and a single unified voice.

He says he has had positive feedback about the proposal from industry but expects it will be a challenge for change to occur and expects Stevenson will eventually have to drive the change.

But can the extractive sector agree to work together through a single entity?

Mike Higgins, general manager aggregates for J Swap Contractors and AQA board member, acknowledges this will be the key challenge.

“It is a logical thing to do and it will be a big task but not impossible to get people to pull together from different parts of the industry,” Higgins says.

“MinEx was brought together to represent all extractives to the government on health and safety.

There are too many different voices and it’s not united. We want one organisation to handle our industry....”

Steve Ellis - Stevenson Group

“It’s the one umbrella the extractives sector has, but it is facing challenges and it is underfunded.

“So you have to ask how we can all work together in another organisation to represent all extractives when we have struggled to do it with health and safety as a single focus?,” says Higgins.

Chris Baker, CEO of Straterra and spokesperson for the mining sector and chair of MinEx agrees the proposal makes sense but stresses any organisation that results would have to work for both mining and quarry sectors “It makes sense to collaborate across issues and be more influential. That’s the simple message.

“From my point of view it’s a no brainer but you have to have willing partners.

“This is a discussion that has to occur between the mining and quarry sectors as it has to work for everybody.

“It has to add value for all of the players,” Baker says.

Baker says that informal discussions are already underway about how the proposal might work and says the issue will “not be left to drift”.

He suggests the way forward could be to engage a third party to undertake a discussion paper to give an idea of what such an organisation could look like and how it could function.

“There is a process to go through as the quarry sector has to feel they are getting value for money.”

However Ellis says that Stevenson has given one year for the change to occur, and he pulls no punches about the consequences if nothing eventuates.

“We’ve laid it on the table and if it doesn’t happen we’ll pull out of all these organisations and start up our own one.”

From my point of view it’s a no brainer but you have to have willing partners. It has to add value for all of the players.”

Research institute proposed for Coast Minerals West Coast Trust, Te Runanga o Ngati Waewae and CRL Energy Ltd, together with Kevin Stratful, West Coast economic development manager, have announced a significant step forward in the process of creating a Greymouthbased, New Zealand institute for Minerals to Materials Research (NZIMMR).

The NZIMMR was proposed to the Ministry of Business, Innovation and Employment (MBIE), as part of a recent call for regional research institutes which will benefit both the regions and the nation.

NZIMMR has been approved to present an investment case to MBIE, one of two from an initial set of fourteen applicants from around the country.

If MBIE agrees to support the NZIMMR, the Institute will commence operations in Greymouth in 2018.

The focus of NZIMMR will be on using research to add value to known deposits and existing operations, through creation of new, economically and environmentally sustainable operations throughout New Zealand.

Greymouth mayor Tony Kokshoorn commented that this is a significant opportunity to grow minerals research capabilities on the West Coast and as a result, broaden its knowledge and income base.

A steering group, chaired by Kevin Stratful and with members from a range of West Coast and industry organisations, has spent the last six months developing the NZIMMR concept for Government.

Over the next three months they will further develop the investment case, which will be an important milestone in adding value to and growing the future of the West Coast and New Zealand extractive industries.

Chris Baker - Straterra

Autumn 2017 » Mining NZ 5

News »

Taharoa Mining buys NZ Steel Karen Phelps Taharoa Mining Investments Limited has reached agreement to purchase New Zealand Steel Mining Limited, which operates the Taharoa iron sands export business.

TMIL director Wayne Coffey says that he cannot disclose the future plans for the business: “There’s not much to say at the moment, it’s still in progress, but the Taharoa shareholders are pleased to have the land back. It’s a robust structure for the future. That’s all I can say.”

New Zealand Steel Mining Limited has a license to mine the Taharoa iron sands on the west coast of the North Island.

It is currently exporting in excess of 3 million tonnes of iron ore concentrate per year.

TMIL is owned by the landowners [The Proprietors of Taharoa C Block Incorporation] and Melrose Private Capital Ltd, a Wellington based capital and management services provider.

The current owner of NZSM is Bluescope Steel Ltd from Australia, which also owns New Zealand Steel Ltd. The mine has been operating for 45 years and employs 170 people.

Taharoa Mining Investments Limited has stated that the return to New Zealand ownership of the important export business and large employer, in a remote rural area is very positive.

Coffey says that the head office will be in Wellington and the company will be strengthening its management capability there.

Completion of the sale is expected on 1 May 2017.

OceanaGold Waihi Mines Rescue Team member Jed Moriarty helps a young fan out of rescue equipment at the recent Code Red Emergency Services Open Day.

The Taharoa iron sands mine has been operating for 45 years.

Helping out community 2017 AusIMM NZ Branch ANNUAL CONFERENCE • RYDGES LATIMER CHRISTCHURCH •

The AusIMM New Zealand Branch is calling for abstracts for presentations for the 2017 annual conference, and welcomes submissions from members and other submitters.

We welcome papers and posters on a wide range of technical subject matter relevant to the NZ minerals sector:

Plenary sessions will include a diverse range of subjects including the changing face of the coal industry, possible changes in the approach to minerals research in NZ, Iwi perspectives on land and seabed mining, new explorers, the state of the industry by commentators and regulators, amongst other topics of interest and relevance to the minerals sector.

If you are interested in presenting, please submit a brief outline (300 words or less) through the Abstract Submission Zone.

Full details can be found at www.confer.co.nz/ausimm_nz2017 or email us at ausimmnz17@confer.co.nz

•

Latest minerals research

•

Mining operations

•

Recent exploration results

•

Mining geotechnics

•

Mining geology and modelling

•

Operational Health & Safety

Notification of Abstract Acceptance – 15th May 2017

•

Regulatory issues

Early Bird Registration close date – 1st July 2017

•

Environmental management

Deadline for Final Paper Submission – 1st August 2017

IMPORTANT DATES: Call for Papers – Now Open!

Conference Registration – Opens in Mid-April Deadline for Abstract Submission – 1st May 2017

The OceanaGold Waihi Mines Rescue Team is volunteering its skills to the wider community.

OceanaGold Senior Community Advisor, Kit Wilson, says that in certain emergency situations the team’s skills in vertical rescue at height and depth, combined with its fitness, training and specialist equipment mean its assistance is highly valued. “Our team live in the community and have families who live here,” explains Wilson.

“So they are not just part of the mine but also the wider local community and this is their way of participating and giving back,” explains Wilson.

In the past the team has been involved in a variety of emergency incidents including extracting a casualty with a broken leg who was trapped by large seas at the Bowentown Heads, rescuing a kayaker from the base of a cliff in heavy seas, extricating a dog from a precarious ledge and assisting with Search and Rescue operations.

“We have equipment and expertise that civilian services do not have, so it makes sense to help where we can,” says OceanaGold Safety Advisor Dave Oliver.

“As a team, we’re available 24 hours a day for incidents on site, but our local and regional rescue services also know we are available around the clock with our specialised skills and equipment to back them up at any time.”

Dave also acknowledges the wider OceanaGold team that makes what they do possible. “If we are out then we know someone is covering our shift or a job we would normally do back on site, so this isn’t just Mines Rescue, it’s the whole of OceanaGold Waihi - managers, supervisors and all other staff,” he says .

He says that the team also benefits by making its skills available to the wider community as it enable the team to keep its skills fresh.

The Mines Rescue Team also trains with the other services so when they are called on to work together they know each other’s capabilities and equipment.

“We say ‘train hard, fight easy’,” explains Oliver. “We get everything thrown at us during training, so if we are ever faced with a real emergency it will be less demanding than our training.”

EXCEPTIONAL LIFETIME VALUE FOR YOUR MINING OPERATION

Parts: 0800 93 39 39

6 Mining NZ » Autumn 2017

Service: 0800 CAT HELP

www.goughcat.co.nz

mining.cat@goughcat.co.nz

News »

AusIMM - a chance to come together The New Zealand

Karen Phelps

minerals industry is a

The Australasian Institute of Mining and Metallurgy

(AusIMM) 2017 New Zealand branch conference will be an opportunity for the minerals community to come together and show its resilience in the face of on-going challenging times for the industry, says convenor Dean Fergusson.

The conference will be held at Rydges Latimer in Christchurch from September 10-13 and will highlight the latest research, exploration, operational and business news for the New Zealand minerals industry.

“The New Zealand minerals industry is a small community so it is important that we stick together and support each other.

Commodity values are cyclic in nature and the sector is slowly coming back from recent major price downturns across the board and we need to ensure there is a strong minerals community in New Zealand when times get better.

The conference offers attendees good opportunities to network, exchange views, and learn about what is happening in the wider industry,” says Fergusson.

The conference is New Zealand’s premier minerals and coal annual event, attracting a large proportion of its New Zealand member base as well as some overseas interest.

The conference welcomes non-member attendees whether they be researchers, consultants, contractors or regulators.

Fergusson says that the 2017 conference will include presentations on a number of key topics as well as opportunities for the release of the latest industry research.

small community so it is important that we stick together and support each other.”

AusIMM NZ attendees can expect lots of interesting speakers at this year’s branch conference.

The Institute is presently calling for papers and posters across a diverse range of topics including the latest exploration research or findings, resource assessment and estimation practices; mining geology and geotechnics, mining studies and operations.

The conference will also carter for operational health and safety and environmental effects management.

Possible plenary topics include the changing face of the coal industry, changes in the approach to minerals research and utilisation, iwi perspectives on land and seabed mining and the state of the industry.

FIRST BREAK HAS METAL OVER CONTRACT COMPETITION

ith over 50,000 waterjet units installed around the world, HamiltonJet represents the latest in waterjet propulsion technology.

It is the preferred choice for the efficient propulsion of a wide range of high speed It is the preferred choice for the efficient propulsion of a wide range of high speed work and patrol p boats, fast ferries, bo ferries offshore crew boats bo ts ts, fire boats bo ts ts, fishing vessels, recreational and military craft.

First Break SG Metals is a joint-venture with Singapore listed

First Break SG Metals has re-signed a long-term partnership contract with HamiltonJet for its total supply of stainless material. Against stiff international competition from Mills in the United Kingdon directly competing for the supply, First Break SG Metals was successful at not only retaining the contract but also increasing the range of products and services supplied to HamiltonJet.

work and patrol boats, fast ferries, offshore crew boats, fire boats, fishing vessels, recreational and military craft.

First Break SG Metals is a joint-venture with Singapore listed company Sin Ghee Huat Corporation Ltd, a company that has been distributing stainless steel products throughout Asia for over 30 years.

The partnership has allowed First Break SG Metals access to world-class production mills and suppliers from Europe Europe, Japan, Taiwan, South Korea and USA. It holds a comprehensive

This year the conference hopes to offer pre-conference field trips in the Canterbury and West Coast regions as well as short professional development courses in Christchurch.

The AusIMM 2017 New Zealand Branch conference will be strongly sponsored by OceanaGold, who has been a key supporter of the event in recent years which has enabled the event to continue to be offered to a high standard, says Fergusson.

He is also calling for other sponsors to offer support saying the event provides prime opportunities for industry exposure and promotion.

range of more than 4,000 stainless steel and duplex products supporting specific requirements of the oil and gas, petrochemical, marine construction, food processing and the ever-growing demand for sheet and plate in the dairy, wine and pulp and paper industries. All product supplied comes with mill certification.

First Break SG Metals has warehouses located at New Zealand’s two major international freight hubs – Auckland and Christchurch - and has forged strong relationships with key shipping lines and all the major airlines. It has its own dedicated logistics team in-house which cuts out major costs and paperwork, shortens lead times while improving overall customer security of supply. It ships ex-Singapore every 11 days and airfreights product on demand.

First Break SG Metals specialises in the supply of austenitic (304, 316L & 310) and duplex (Duplex 2205 & Super Duplex 2507) stainless steel. The different

“This financial assistance from our sponsors provides the resources we need to attract overseas speakers, subsidise the short courses and field trips and of course continue to offer the diverse three day programme and social events to our delegates.

“The feedback in recent years has been very positive across a range of conference offerings and helps to sustain the industry.”

The Australasian Institute of Mining and Metallurgy now has over 13,000 members, with 280 in the New Zealand branch.

Fergusson says the 2017 conference programme is rapidly shaping into another first class conference.

“We are looking forward to delegates joining us to ensure the New Zealand branch conference remains the premier annual minerals industry technical and networking event. Their continued support is vital to our on-going success.”

• For more details on the 2017 New Zealand AusIMM branch conference conference visit www.confer.co.nz/ausimm_nz2017

grades or types of stainless steel have different physical properties and the selection of a particular type or grade depends on its intended use. Austenitic stainless steel is non-magnetic and, in addition to chromium, contain a relatively higher percentage of nickel.

This enhances its resistance to corrosion and heat treatment. It is one of the most widely used groups of stainless steel.

Grade 310 has the advantage of being able to withstand high temperatures, has good ductility and weldability, has oxidation resistance up to certain temperatures and therefore widely used in the oil and gas industry. The Duplex grade of stainless steel has an improved strength over austenitic stainless steel as well as improved resistance to localised corrosion and is widely used in the oil and gas, petrochemical and marine industries.

Brent Paulsen, managing director of First Break SG Metals, is well known in New Zealand industry having entered the steel supply industry after 30 years in leadership roles specialising in metal cutting and manufacturing production.

Having seen that material prices continue to rise each year and availably becoming scarce or having long lead times, Mr Paulsen saw an opportunity in the market for a company whose values were driven by customer needs, not multinational company budgets. Often bar wasn’t available in particular surface finishes and very few, if any, steel

Strengths in offering: • Cut to length sheet material • Pipe and tube • Flanges • Fittings butt welded/forged Bars - various profiles • Material blocking • Centreless ground and polishing for main shafts, rams and valves • Project management

suppliers offered full 5PL logistics and warehousing with direct cut-to-length shipments to machine tools on the shop floor. Mr Paulsen says, “We are excited about combining our strengths in technical support and logistics with our customers nationwide and being a positive contributor to mutual growth and prosperity.”

Adding to the viability of First Break SG Metals operation are two sister companies: First Break Mining and Larboard International Logistics.

First Break Mining is a technical support services company to the mining and construction industry in New Zealand, specialising in the supply and support of Atlas Copco drilling, transportation, crushing and screening equipment for underground and above ground applications. The company provides a hands-on approach with a deep knowledge and understanding of how to best support customers’ day-to-day operations. Larboard International Logistics has the specialist expertise to ensure world-wide delivery and importation of large, bulky freight – such as steel shipments and mining equipment. With offices in Auckland and Christchurch, both right next to the international airport, they can support local customers throughout New Zealand, as well as handling final delivery for overseas customers. A key component of all the companies, is the desire to be a partner in their customers’ operations, looking to understand the key logistical requirements and ensuring the right product is delivered to the right location at the right time.

Contact us for personalised service that will save you time and money: P: 0800 227 464 M: 021 714 419 E: catriona.haines@firstbreak.co.nz

Autumn 2017 » Mining NZ 7

Gold » Industry News

OceanaGold enjoys record profit as production soars Hugh de Lacy The global gold price continues to muddle along around the $US1250 an ounce mark ($NZ1800/ oz) but that hasn’t stopped New Zealand’s biggest goldmining company from setting record revenues and profits in the 2016 calendar year.

Oceana Gold Corporation, dual-listed in Australia and Canada, had revenues of $628.6 million for a net profit of $138.5m last year, of which $147.4m in revenues and $42.6m in profit came in the December quarter.

The company has announced a six-monthly dividend of one cent per common share from a strong balance sheet that includes nearly $100m in immediate liquidity, of which nearly $70m is in cash.

Oceana’s full-year production of gold was 416,741oz from all its mines, while Didipio exceeded expectations in also yielding 21,413 tonnes of copper.

Net profit was up 157% from the previous year on the back of an 8% increase in the global gold price, combined with lower interest costs and a gain on the fair value of undesignated hedges, and despite higher income taxes.

The chairman and chief executive, Mick Wilkes, said 2017 could be an even better year for the company which operates opencast and

We expect this year to unlock significant growth opportunities in the business, particularly in New Zealand and the United States.” underground mines at McRaes in east Otago, the Martha Pit and Waihi underground mines it acquired from Newmont in 2015, and the Didipio gold and copper porphyry on the island of Luzon in the Philippines.

Oceana also owns the Romarco Minerals and Haile gold prospect in South Carolina, which is in the process of being commissioned.

The company last year closed and began rehabilitation of its Reefton open-cast mine on the West Coast of the South Island.

“We expect this year to unlock significant growth opportunities in the business, particularly in New Zealand and the United states,” Wilkes said.

“Commissioning of Haile continues to advance well, and we expect to announce commercial production early in the second quarter.”

Expected production this calendar year will be between 550,000 and 610,000oz of gold at an allin cost range of between $600 and $650/oz, plus between 15,000 and 17,000 tonnes of copper.

The company is also in the process of

extending its reach into South America after recently signing a letter of intent with Mirasol Resources Ltd to pursue a joint venture on the La Curva gold project in southern Argentina.

Oceana will own 75 percent of the joint venture.

Something of a cloud hangs over the Didipio operation in The Philippines where the Department of Environment and Natural Resources has proposed an order to suspend production because of the mine’s supposedly negative impact on local agriculture.

In response to the announcement of the suspension order, Wilkes in February this year declared it unjustified and having no basis in law.

He said the operation does not violate any laws, nor is it posing “any threat to the public, security, health, safety or otherwise”.

There has been no interruption to Didipio production so far, and Wilkes said that if the order was imposed by the Philippines government “we have very strong legal grounds to have it overturned”.

New Talisman upbeat on Karangahake Hugh de Lacy A potentially rich new seam has been discovered

by New Talisman Gold Mines Ltd in its historic mine in the Karangahake Gorge near Waihi in the North Island.

The dual-listed company, formerly Heritage Gold NZ, won a long-running battle with protesters two years ago over re-starting the mine, and is currently negotiating a traffic management plan with the Hauraki District Council preparatory to going into production.

New Talisman chief executive Matt Hill said the company had stumbled on a previously unknown

extension to its gold-bearing underground prospect, and it had started work on quantifying the new resource.

Hill said that negotiations with the council for an access management plan for the cramped site on the south side of the river were nearing a conclusion.

However, he said no date had yet been set for the long-awaited start to commercial mining.

The company presently has access for sampling, servicing and maintenance of the old mine tunnels, but agreement has to be reached with the council to minimise the disturbance to local residents of truck movements once the mine is in production.

As well as the permit to mine the 100-year-old Talisman JORC-compliant prospect, Talisman holds an adjacent exploration permit along the mine’s strike.

The company conducted explorations in 20032004 and 2005-2006 that showed a continuation of the high yields that have marked the mine’s history.

Hill said that both exploration and the eventual mining will be conducted wholly underground using the existing shafts, and with no discharge of water into the river.

Direct economic benefits to the district will include the creation of six full-time jobs, and a total general operational business expenditure of about $!.8 million.

Raft of global uncertainties drives gold price higher Donald Trump, Brexit, a raft of general elections and a spongy American dollar combined to crank the global gold price up by 8.2 percent, to $US1261/ounce ($NZ1766/oz), between January and March 2017, maintaining a decade-long habit of surging in the first quarter of the calendar year.

The mounting concerns over Russian meddling in last year’s US election campaign, British Prime Minister Theresa May pressing the exit button on European union membership, impending elections in European and other countries, and the greenback struggling to hold its value in the face of attempts to boost interest rates were all factors which helped gold to its eighth first-quarter hike in ten years.

Festival-driven retail demand in China and India - where gold imports in February this year were a startling 82% higher than those in the same month of 2016 - also helped the precious metal climb out of the $US1125/oz ($NZ1530/oz) slump it had fallen into the by mid-December 2016, pushing it to $US1264 ($NZ1719/oz) in late February. Gold still faces headwinds from the appreciating greenback, but with central banks and hedge funds both believed to be buying, there could be some upside.

The pundits are now expecting the $US1300/oz mark ($NZ1821/oz) to be crucial for gold in 2017, as it might signal the end of the long-term downward trend that began in 2011 as the global economy began to recover from the 2007-2008 financial crisis.

Reaching $US1300/oz might precipitate a brief slump as long-term holders reach a break-even point where selling becomes attractive, but if gold recovers from that setback it could push on towards $US1600/ oz ($NZ2176/oz) if the Trump-inspired global political uncertainty continues unabated.

BR Satherley Transport Ltd BASED IN NORTH ISLAND, SOUTH ISLAND, WEST COAST AND CHRISTCHURCH • Cartage loads up to 75 tonnes • Specialise in mining projects • Door to door service “No job too big or small”

15 Hamilton Place, Onekawa Napier

Phone: 0274 335 799 | Fax: 06 833 7418 | office@satherleytransport.co.nz 8 Mining NZ » Autumn 2017

Gold » Industry News

Work preserves mining heritage Karen Phelps OceanaGold is working with local heritage group Waihi Heritage Vision to preserve significant heritage foundations, artefacts and remnants on Union Hill with the aim of transforming the site into a more publicly accessible area.

Located just a few hundred metres south of the Martha open pit and directly above the underground Trio mine, building foundations at Union Hill date back to the late nineteenth century but the site is now overgrown with invasive tree species.

OceanaGold Senior Community Advisor Kit Wilson says the company is providing access to the site and technical support as required as it works with Waihi Heritage Vision to develop a plan to preserve this part of Waihi’s early mining heritage.

The site includes a series of concrete air agitation tanks used in the gold recovery process – the only ones of their type left standing in New Zealand.

The project comes on the back of OceanaGold’s efforts to preserve other mining history in Waihi such as the Cornish Pumphouse and the Grand Junction Refinery Building.

The Cornish Pumphouse was moved from Martha open pit mine in 2006 in a significant engineering feat that saw the 100 year-old 1840 tonne building travel over 300 metres to its new home at the top of the town.

The building is now open to the public and has become a major tourist attraction and local icon, says Wilson.

A few years later the Grand Junction Refinery Building was moved as well.

People who have seen the site have said ‘wow, it’s like something out of Indiana Jones’.”

The refinery building is a remnant of the Grand Junction Mine that operated next to Martha and is one of only two such buildings in the country.

Wilson says its most distinctive feature is the louvred section on the roof that was used to vent fumes from the refining process. This section has been replaced, and a new roof installed, along with new windows and doors as part of a conservation plan that was developed in consultation with a range of stakeholders.

Wilson says that the long term plan is to make the building available to the community.

This year’s Miners’ Reunion was held in the building and public tours run by the Gold Discovery Centre have also visited.

Wilson says predicts Union Hill could follow in the footsteps to become a tourist attraction.

Waihi Heritage Vision is presently fundraising for the project.

“There is quite a lot of mining heritage in the Coromandel and Union Hill is a prime example. If we don’t look after it we will lose this heritage.

“People who have seen the site have said ‘wow, it’s like something out of Indiana Jones’.

“These are significant tourist attractions drawing people to the town. Mining heritage is a vital part of what Waihi is and where it’s been.”

Archaeologist Brigid Gallagher inspects the historic ore roasting kilns on Union Hill.

Indiana Jones country: tunnels beneath the historic ore roasting kilns on Union Hill, the building foundations at Union Hill date back to the late nineteenth century.

-

Exploration programme management Geological mapping and 3D modelling Resource evaluation and certification Mine drainage consulting, research, sampling and testing - Gas content testing of coal

-

New Brisbane joint venture - CB3 Ltd Spontaneous combustion testing Combustion analysis and testing Gasification and carbonisation research Advanced nano-materials research and development Coal and minerals processing research

-

Coal and combustion testing Chemical analysis on fuels Water analysis - domestic to industrial Magnetic and density mineral separations X-ray diffraction and X-ray fluorescence (XRF & XRD) Acid base accounting and kinetic testing

Autumn 2017 » Mining NZ 9

Gold » Industry News

Symposium highlights gold potential Karen Phelps The Gold 17 international symposium held in Rotorua in February helped to showcase to the international community the potential for gold exploration in New Zealand, says Tony Christie who assisted the convenor of the conference, Julian Vearncombe of SJS Resource Management and Geosymposia.

“New Zealand has good exploration potential and we hope that some of the overseas companies who attended will be encouraged to come here to explore in the future,” says Christie.

It is the first time that the Australian Institute of Geoscientists gold symposium has been held in New Zealand and around 100 delegates attended, predominantly from Australia and New Zealand, but also from as far away as Mongolia, Uruguay, Canada, US and Europe.

The decision to focus the conference solely on gold reflected the importance of the mineral to the New Zealand industry, says Christie.

“It’s an exciting time for exploration in New Zealand, with OceanaGold engaged in major drilling programmes at Waihi and Macraes, and both mining areas continuing to produce gold.

“They are world class deposits and exploration has been successful finding new resources to keep them going.”

The conference technical programme was a single stream of presentations with seven one-hour keynote presentations interspersed with twenty seven 30-minute presentations.

Christie says that the format worked well and ensured good attendance for the presenters and lots of questions from the floor.

A range of experts from New Zealand and offshore gave insightful keynote presentations.

New Zealand speakers included Shaun Barker from the University of Waikato who spoke on alteration and geochemical signatures of low-sulfidation epithermal veins; Julie Rowland, from the University of Auckland, who gave a presentation on the influence of inherited structure on localisation of epithermal gold mineralisation, and Dave Craw, from the University of Otago who spoke on fluids and orogenic gold in the South Island.

From overseas, John Thompson, from Cornell University in the USA, spoke on hydrothermal alteration in gold systems; David Cooke, from the University of Tasmania, presented on epithermal gold deposits of the circum-Pacific and Stuart Simmons from the University of Utah gave a talk on spatial and temporal variations in epithermal ore-forming processes.

Examining gold-silver bearing quartz veins in quartz-adularia altered ignimbrite exposed in the Ohakuri dam abutments.

Overseas deposits described by overseas presenters included the Minto copper-gold mine and vein deposits (Klondike in the Yukon, Canada), Ann Mason copper-gold-molybdenum deposit (Nevada), Greens Creek gold-bearing volcanogenic massive sulphide deposit (Alaska), Mt Wright intrusion-related gold deposit (North Queensland), Tunkilla gold deposit (South Australia), gold and gold-copper deposits of southern Peru and silver-gold veins of Mexico.

Christie says it was critical for the industry to have access to the latest research and exploration updates.

Opportunities for delegates to network was another important aspect of the conference.

“Getting people together provides great stimulation and generates new ideas and ways of looking at things.

Gold features highly in New Zealand mineral production and we’ve had fantastic success in exploration around the operating mines.

“Feedback has been very positive.”

Delegates also enjoyed the opportunity to explore first hand OceanaGold’s Macraes and Waihi operations on field trips held before and after the conference.

The symposium venue in the hydrothermally active city of Rotorua and a field trip to the gold-rich Coromandel, allowed delegates to see first hand modern environments in which

epithermal gold deposits are formed. The four-day epithermal field trip on Coromandel and TVZ epithermal/geothermal gold had 14 participants, all from overseas, and involved visiting Orakeikorako, Waiotapu and Waimangu thermal parks.

“These geothermal systems show gold mineralisation processes in action which assists gold exploration.

Providing support to clients, both as a strategic partner and a technical advisor OCCUPATIONAL HYGIENE SGS New Zealand Ltd offers occupational hygiene services to monitor hazardous workplace exposures to ensure businesses are compliant with New Zealand Legislation.

SCOPE OF SERVICES Indoor Air Quality Assessments, Ventilation Monitoring, Occupational Hygiene walk-through Surveys CHEMICAL HAZARDS

PHYSICAL HAZARDS

Hugh mcMillan - General Manager Mineral and Environment, Health and Safety (EHS) Cell: +64 275 735 701 Email: Hugh.mcmillan@sgs.com

10 Mining NZ » Autumn 2017

BIOLOGICAL HAZARDS Kerry Cheung - Industrial Hygieniest Cell: +64 274 052 802 Email: Kerry.Cheung@sgs.com WWW.SGS.CO.NZ

Gold Âť Industry News

Noel Becker explaining the Waikaia placer gold mining operation near Freshford, Southland on the Gold 17 preconference Otago field trip.

“You can read all you like in books and journals but you also need to see the rocks – especially the spatial relationships, and the extent and style of mineralisation. “It was really good to see things in the flesh,� says Christie.

At Waihi, the group was shown new discoveries of sinter in drill core from the Favona vein system. “This sinter discovery is very significant for reconstructing the hydrothermal system architecture and can be used to model nearby deposits for exploration.�

OceanaGold is continuing an aggressive exploration drilling campaign at Waihi started

by the previous owners Newmont Waihi Gold in order to find new gold resources and extend the life of the mine beyond known reserves of two years.

Several new blocks of gold ore have been found in and adjacent to known veins and so the future is looking good if resource consents to mine can be obtained. “Gold features highly in New Zealand mineral production and we’ve had fantastic success in exploration around the operating mines. “There is significant potential elsewhere in New Zealand as well and we’ve got several companies exploring in New Zealand at the moment.�

Fire protection crucial for expensive mine equipment Protecting mining equipment from fire could save companies millions of dollars, says Steve Benseman from Fire Suppression Systems. “If companies have a complete burn-out of one of their key pieces of equipment, it could be out of action for up to a year which would cost them an awful lot of money.�

Benseman says the lead time to replace highly specialised mining and construction equipment is currently around 50 weeks from when an order is placed to when it arrives in New Zealand. “That’s why it is imperative companies protect their existing machinery as the combination of large amounts of fuel, hydraulic oil, extremely hot surfaces and electrical components create an operating environment with an inherently high fire risk.�

Benseman has 13 years experience in advising, installing and maintaining fire suppression systems at New Zealand mine sites.

He says it is important companies deal with a specialist such as Fire Suppression Systems to ensure their systems meet the testing and certified standards required of the industry. “Some of our competitors dabble in fire suppression work outside their core business, but I believe we’re the only company in New Zealand to focus solely on mobile equipment fire suppression.�

Fire Suppression Systems offers a full range of systems for the mining, construction, drilling, forestry and mobile equipment industries.

Benseman is based in Auckland and employs three mobile technicians who operate from other parts of the country.

Between them they visit clients’ often remote sites in fully set-up vehicles that enable them to

“We pride ourselves

Tour leader Dave Craw from the University of Otago demonstrating the presence of gold in the gravels at St Bathans.

A full range of fire suppression systems for the following surface and underground applications:

on delivering reliable, proven products that give our customers peace of mind ....� provide complete equipment install, maintenance and servicing on-site. The expert team can also provide clients with advice on preventative measures and maintenance practices they can undertake to further reduce fire risk.

Benseman is the New Zealand agent for foam fire suppression system Sandvik NFP 1000. Around 18,000 Sandvik systems are now being used worldwide, he says.

The system is fully compliant with the new Australian standard AS5062. A key feature is that it is completely self-contained so even if there is no electricity or person to operate the system it will still activate in the event of an emergency.

Benseman says Fire Suppression Systems recently installed fire suppression systems to 115 machines for the Downer/Solid Energy Stockton Alliance on the West Coast, its biggest single install to date. “We continue to look after every other major mine in the country. “We pride ourselves on delivering reliable, proven products that give our customers peace of mind that their equipment and staff will be protected should a fire incident occur.�

Fire Suppression Systems P.O. Box 334081 Sunnynook, Auckland Steve Benseman Ph: 021 918 900, E-mail: sbenseman@clear.net.nz

Autumn 2017 Âť Mining NZ 11

Focus » Mining Pioneers

Giving a glimpse of the past A new photographic book ‘Through the Eyes of a Miner’ gives a fascinating glimpse of what life was like in New Zealand mining communities nearly a century ago.

Kim Newth reports.

F

rom the comfort of my warm office, it is hard enough to imagine what it must be like to work as a miner today, much less what life would have been like for men working underground a century ago.

Author Simon Nathan’s well-researched book Through the Eyes of a Miner, which presents compelling black and white images by little known photographer Joseph Divis, brings that lost world into sharp focus. This revised and expanded second edition was published in 2016 by Friends of Waiuta with distribution by Potton & Burton.

“Photographers of that time were not usually taking photos of mining communities,” Simon observes.

“Most that do exist were taken by photographers who came in for a day, whereas Joseph Divis lived there with mining people and he also had the skills to take photographs down in the mines.”

Czech-born Divis, who had worked as a miner in lower Silesia (now part of Poland), travelled to New Zealand in his early 20s to take up work at the Blackball coal mine and almost immediately started taking photos in the area. Many were turned into postcards and Divis also sold his photos to the Auckland Weekly News.

By October 1912, Divis had started work at the Blackwater mine, where a gold-bearing quartz reef had been discovered less than a decade earlier.

No-one else was taking photos quite like Divis back then, showing miners working underground in soft hats, holding candles for light. Others capture ‘the raw, new town’ of Waiuta that had sprung up around the mine. From formal portraits to group shots, Divis also vividly brings to life the people of this hardworking community going about their daily chores, getting married, building homes.

Simon was introduced to Divis’ work by a colleague, the late Les Wright, who was passionate about preserving Waiuta’s history.

“I was writing an article for Te Ara – the Encyclopaedia of New Zealand and had asked Les about artists living on the West Coast and he told me about this long-overlooked photographer.

“He showed me some of Joseph Divis’ photos and I was hooked. It was a wonderful story that I thought would make a great book, particularly since there was access to the original plates.”

These plates had been kept by local man Brendon Wilshire, who had looked after the collection for 30 years, before it was transferred

Early 1930s, Joseph Divis (right) and companion overlooking the Blackwater poppet head and surrounding mine buildings. into the care of the Alexander Turnbull Library in 2009.

For the book, Simon pieced together details about Divis’ life through archival material, including naturalisation records. He also found a file dating back to when Divis was interned at Somes Island in the Second World War. Sadly, this internment came not long after Divis was being badly injured by falling rock in a mining accident.

He never worked in the mines again after that and also stopped taking photos, but after the war returned to Waiuta as the town’s telephonist.

The town was already in decline through the 1940s. By 1951 it was a ghost town. The Blackwater mine had closed after a collapse in the main ventilation shaft and with no work to sustain it, the town emptied out.

One of Divis’ photos from 1931 shows a crowd gathered outside Waiuta’s hotel for the town’s 25th Jubilee. You can’t help but wonder what happened to all the families there that day who would no doubt have thought their prosperous town had a bright future.

“One of the things I learned from doing this book is that these people were reasonably well off. Everyone living at Waiuta had a job. They were not at the bottom of the heap. They just wanted

Everyone living at Waiuta had a job. They were not at the bottom of the heap. They just wanted to do the best they could for themselves and their children.” to do the best they could for themselves and their children. This was a real living community.”

As well as locating records relating to Divis’ work for the Post & Telegraph Department, Simon was able to track down one of the photographer’s relations in the Czech Republic. It enabled him to identify people photographed by Divis during his time spent back in Europe in the late 1920s.

Before the war, Divis had also worked at Waihi’s Martha mine and had travelled to Europe, but he returned to Waiuta and took several hundred photographs of the mining town in its heyday from 1931-35.

Simon Nathan It is an incredible record, documenting amongst other things, the Snowy River battery where quartz ore was processed to recover the gold. (The roasting process in particular left a toxic legacy of environmental arsenic that poisoned vegetation around the plant). Through the Eyes of a Miner is a truly unique glimpse into mining life and mining practices in days gone by and pays special tribute to the people of Waiuta.

Through the Eyes of a Miner is published by Friends of Waiuta and distributed by Potton & Burton. (RRP $39.99 hardback.)

Self-portrait. Joseph Divis outside his cottage at Waiuta. Rough on the outside, the cottage was immaculate inside. Visitors remembered Divis had all his possessions neatly stored in shelves and cupboards. In 2016 it was one of just six old buildings remaining in Waiuta.

12 Mining NZ » Autumn 2017

Focus Âť Mining Pioneers

Blackwater, 1912-13. Miners waiting to go underground. Joseph Divis is on the left, marked with a cross.

At the Snowy River battery, 1930-31. Pictured is the plate room, where crushed ore slurry flowed over copper plates coated with a thin film of mercury. As the slurry passed over the treated plates, the flakes of fine gold amalgamated with the mercury coating on the plates.

Queen Carnival, 1931. A Queen Carnival was run before the Waiuta 25th jubilee to raise money for the development of the recreation ground. Pictured are the Carnival Queen nominees with their attendants.

Joseph Divis (right) and Bill Houghton deep in the Blackwater Mine, Waiuta. Divis is holding a Waugh hammer drill, used for drilling holes for blasting in the white quartz reef.

Autumn 2017 Âť Mining NZ 13

Coal » Industry News

Birchfield plans ‘revival’ Hugh de Lacy The thermal mines acquired by Birchfield Coal Mines Ltd from the collapsed state-owned collier Solid Energy could be back supplying New Zealand customers as early as May, but the export coking coal mines will take a little longer to get back into production, company director Allan Birchfield told Mining NZ. Birchfield Coal has bought the old Liverpool and Strongman mines on the West Coast of the South Island, and is committed to getting both working again.

The company currently operates the Rotokohu coal measures in the Giles Creek Basin near Reefton, supplying clean-burning and low-sulphur sub-bituminous coals to industrial, agricultural and service users in the South Island.

It acquired the two historic mines in the fire sale that followed Solid Energy’s crash in the wake of the collapse of coking coal prices two years ago.

The Strongman mine started production in 1938, and ceased underground work after an explosion killed 19 miners in 1967.

Between 2001 and 2003 Strongman operated as an open-cast mine.

The Liverpool mine in the old Kimball Block opened in 1913 but ceased production in in 1984.

Both mines will be re-opened as opencast operations.

Birchfield Coal Mines is a three-generations family company owned by siblings Allan, Karen, Evan and Gary Birchfield, and employs about 20 people at Rotokohu.

Allan and Gary Birchfield also own gold and aggregate mines on the West Coast, including the

Birchfield Coal has bought the old Liverpool and Strongman mines on the West Coast.

Grey River gold dredge which is laid up and on the market.

While thermal coal production from the new mines is close to resumption, Allan Birchfield said no date has yet been set for a re-start of coking coal production for the export market, in part because the company is waiting for the global price to pick itself up off the carpet.

The Giles Creek mine started up in 1984 and currently produces about 500,000 tonnes of thermal coal a year.

Solid Energy went into voluntary administration in 2015, after it had been

encouraged by then Prime Minister John Key’s government to borrow extensively for an ambitious expansion programme that included transforming Southland’s vast lignite fields into transport fuels.

The company then fell victim to the delayed effects of the 2007-2008 global financial crisis.

Birchfield said his company’s purchase of Liverpool and Strongman, and the purchase of Stockton by Phoenix Coal, which is jointly owned

by Bathurst Resources and the food-producing Talley Group of Nelson, promised a revival of the coal industry on the West Coast.

Coking coal halts plunge The three-months-long plunge in coking coal prices from last November’s high of $US308 a tonne appeared finally to have run its course by early March this year when it recovered a few cents to $US167/t ($NZ234/t).

The prime factor in arresting the slide appears to have been the settlement between Australian miners and the Japanese steel industry of a contract price of $US285/t ($NZ387/t) for the first quarter of this year.

That reversed the situation during the last quarter of last year when there was a differential of more than $US100/t ($NZ136/t) between the contract and the spot price.

This would be reassuring news for New Zealand coking coal exporters whose prices are dominated by the Australian-Japanese price, and they would be further cheered by the likely impact of Cyclone Debbie on Queensland coal production.

However, already the overall effect has been to entice global suppliers into increased production. For example, International Coal Ventures Ltd (ICVL), a consortium of state-owned coalminers, is on the point of restarting work at Mozambique’s big Benga mine which was suspended in May of last year when metallurgical coals slipped below $100/t ($NZ136/t).

ICVL had bought the mine, which is a 2.6 billion tonne resource with annual production capability of 5.3m tonnes, from Rio Tinto in 2014. Benga and other southern African prospects were acquired by Anglo-Australian giant Rio Tinto in 2011 in its $3.7 billion takeover of Riversdale Mining of Australia.

Talley’s teams with Bathurst for purchase Hugh de Lacy

“The opportunity just presented itself....It gives

It was hardly any surprise when Australian coalminer Bathurst Resources Ltd put its hand up to buy three of the biggest mines of the collapsed state-owned collier Solid Energy, but the partner that it chose to take with it into the deal certainly was.

Motueka-based fishing and food group Talley’s Group has teamed up with Bathurst Resources to buy the Stockton mine on the West Coast, and the Rotowaro and Maramarua mines in the Waikato.

Bathurst has battled along bravely in the wake of last year’s plunge in the global price of export coking coal, a key ingredient in the steelmaking industry, battening down the hatches and suspending production while it sees out the slump.

To then acquire three of Solid Energy’s principal mines, albeit in the face of only limited competition, might have forced a further call on Bathurst’s already stretched shareholders, but for the surprise link-up with Talleys.

Talley is a domestic thermal coal consumer but Bathurst’s main business thrust will be into the export market for coking coal.

Other sales of Solid Energy mines have included the Newvale and Ohai mines in Southland to the Greenbriar company, which is owned by the Palmer MH Group, and the historic Strongman and Liverpool mines on the West Coast which have been bought by local family firm Birchfield Coal.

14 Mining NZ » Autumn 2017

us a bit more business diversity, which we’ve always sought.”

Talley director Andrew Talley said its 35% share of Phoenix Coal, its joint venture vehicle with Bathurst, represented an attractive diversification for the food company whose main activities involve seafood, meat and frozen vegetables.

“The opportunity just presented itself,” Talley said.

“It gives us a bit more business diversity, which we’ve always sought.”

He said Talleys would play no role in the running of Phoenix Coal, and was there “primarily as an investor.”

Bathurst is shares listed on the Australian stock exchange, and most of its shares are traded offshore, so the deal with Talleys required the concurrence of the Overseas Investment Commission.

Bathurst chief executive Richard Tacon said Phoenix Coal would succeed Solid Energy as New Zealand’s largest speciality coal-mining company, “providing economies of scale to create a strong foundation for a long-term business.”

A reliable partner for your mining and civil projects - NZ wide Specialists in: QUARRY OVERBURDEN REMOVAL & DEVELOPMENT SPECIALISTS IN SILT CONTROL PLANT HIRE

EARTH DAM CONSTRUCTION OPEN CUT MINING ROADING & MOTORWAY CONSTRUCTION

Proud to be supporting the Takitimu Coal Mine

Phone: 07 823 5944, email: brosross@xtra.co.nz, www.crdevelopments.co.nz

relationship with Atlas Copco strengthens position in New Zealand market Firstbreak Mining & Construction is a diversified company established to support the New Zealand mining, construction and engineering industries with a range of products and services that are both cost-effective and delivered on-time and where needed.

and haulage and geothermal drilling industry segments.

A key initiative for Atlas Copco is the “Service Exchange” programme, introduced to ensure peace of mind for customers when it comes to servicing their Atlas Copco equipment. The benefits to customers are:

The company has been successfully supplying the Atlas Copco mining and construction range of equipment for over five years now, building a strong track-record for innovative supply solutions and proactive maintenance support.

• Maintains optimum performance • Quality assured components • Single-source supplier • Meets market demand for cost reduction

Atlas Copco is a global industrial manufacturer of underground and surface drill rigs, underground trucks and loaders and full range of rock tools. Its products are found in the world’s major mines and in the fleets of both local and global contracting companies. Atlas Copco’s major brands include Simba, Boomer, Boltec, Scaltec, Scooptram, Cabletec, MT Minetruck and Secoroc among others.

Atlas Copco has a comprehensive range of mining machinery and drilling consumables to support oil & gas drilling, water well drilling, exploration drilling, underground and surface drilling, underground loading

Firstbreak have a relationship with Oceana Waihi providing parts for their MT5020 fleet of underground trucks. This relationship includes supply of service exchange components including transmissions, axles, drivetrains etc.

Firstbreak prides itself in providing fast, reliable and cost effective service for these larger components especially from remote areas around the world.

Firstbreak has developed strong relationships with both regional and international freight forwarders so is able to facilitate especially fast turnarounds on large equipment items and spares with warehousing hubs in both Auckland and Christchurch. Key personnel within the company have extensive experience in supplying industrial goods to the

New Zealand market and thus understand the particular requirements of time hungry customers – especially out in the regions.

Firstbreak Mining & Construction has recently been appointed the Authorized Distributor for Kennametal Earthworks Group offering superior custom and standard cutting and wear-resistant solutions for: • Road Rehabilitation • Trenching • Foundation Drilling • Surface Mining Kennametal is one of the world’s leading tooling and services provider, delivering productivity to customers operating in demanding environments by providing innovative wear-resistant solutions.

Kennametal has proudly introduced SOLID, their solution-focused platform that yields new levels of performance and productivity. SOLID-engineered tools deliver in the most challenging conditions. For unmatched quality, value, innovation, and application expertise, make Kennametal your SOLID choice.

All NEW Atlas Copco PowerROC T45−perfect for New Zealand requirements 6 units sold straight off the production line already–get in fast!

An example of Atlas Copco’s focus on reliability and performance is the new PowerROC T45, a tophammer drill rig optimized for larger construction work and quarry applications where simple flexibility in positioning is required. The straightforward design has minimized electrical components for reliability, low operating costs and easy operation and good accessibility – making it a powerful, reliable and operator friendly rig. This machine is easy to use, maintain and is easy to relocate – plus it is specially priced for the New Zealand market.

For more information on the complete range of products and services that First Break can provide, please email catriona.haines@firstbreak.co.nz or call 021 714 419 or freephone 0800 227 464 for personalised service that will save you time and money!

Minerals » Industry News

CRP encouraged by TTR hearing Hugh de Lacy It’ll be at least two years before his own second seabed mining application gains Environmental Protection Agency’s (EPA) approval, but Chatham Rock Phosphate NZ Ltd’s (CRP’s) chief executive Chris Castle has gained a new-found confidence in the process.

Castle has been closely watching the EPA’s hearing into a second attempt by Trans Tasman Resources Ltd (TTR) to gain approval to mine ironsands from the seabed off the western coast of the North Island.

Both CRP and TTR were denied approval – CRP to mine phosphate rock modules off the seabed on the Chatham Rise – by the EPA in 20142015, drawing criticism of what was seen by the applicants as a flawed process.

The hearing of TTR’s second application began earlier this year, and though the outcome won’t be known until the end of June, Castle said he has been cheered by the way the hearing has been conducted.

“I’m impressed by the way in which the decision-making committee is conducting the hearing: they’re focussed on getting to the facts,” Castle told Mining NZ. “I’m encouraged that they’ve set aside another two months to really delve into things.”

The TTR hearing was supposed to have ended on March 20 but, to the annoyance of the initiative’s opponents, the EPA decided it needed more time to examine evidence.

Castle said CRP had 15 further months of work to do before it could submit its second seabed phosphate mining application to the EPA, and was confident his company’s case would get a better hearing second time around.

“There’s been a learning curve from the two previous hearings.

“The way in which this hearing has been conducted reflects the benefits of that learning,” he said.

What is special about

Quantum® Wires?

For more information contact: geotech.group@clear.net.nz NZ AGENT; GEOTECH GROUP LTD 50 REKA St. TUMARA PARK CHRISTCHURCH NZ 8083

PH. 03 354 2335 FX. 03 354 2336 MOB. 027 433 8575

CRP wants to mine phosphate rock modules off the seabed on the Chatham Rise foff the coast of New Zealand.

CRP’s dissatisfaction with the original hearing process extended to it taking the EPA to the High Court in Wellington over the level of fees it charged.

CRP had begun paying the $2.7m in EPA charges in instalments, but stopped when it deemed they were not “actual and reasonable,” and about $800,000 remains outstanding.

The case was heard in late March and the judge has reserved the decision.

Meanwhile, CRP has not been idle, having completed its merger with the former Antipodes Gold Ltd and changed that company’s name to Chatham Rock Phosphate Ltd. The new company has acquired the 13.6 million

common shares of the former Chatham Rock Phosphate, and is listed on both the New Zealand and Toronto, Canada, stock exchanges.

The shares also trade on the Frankfurt, Germany, exchange where Castle says the company is followed by increasing numbers of German and Swiss investors.

Quantum® Diamond Wire for Mining & construction A NEW DIAMOND WIRE FROM GERMANY -- NOW IN NZ FROM An innovative manufacturing technology (NT Technology) was developed by BD&T in Celle which positions the diamonds in a 3D pattern on the beads. This ensures that each diamond is forced to work to its full potential.

The result; fast cutting and because the beads are multi-layered the life of the wire is good.

CUTTING OF:

Steel reinforced concrete walls, floors, ceilings, beams, tunnels, columns & foundations | Any confined concrete structure, bridges, dams, docks, viaducts, Any large, irregularly shaped or inaccessible concrete structure

BENEFITS:

Clean, efficent performance | Little noise, dust, pollution and no structural damage | Cost effective Reinforced Concrete | Concrete | Masonry Fast, with little or no touch-up

Mining Products: Diamond Bits for exploration core drilling.

Post To:

Name:

Phone:

Business name:

Fax:

Your position:

Signature:

Industry type: Postal address:

Waterford Press P O Box 37 346, Christchurch www.waterfordpress.co.nz Ph: 03 983 5500 Fax: 03 983 5552 Please tick your payment option Invoice me Cheque enclosed

1 YEAR’S SUBSCRIPTION FOR ONLY $34.50 (Inc GST) 16 Mining NZ » Autumn 2017

To ensure your copy arrives at your desk, join our mailing list TODAY for PROMPT delivery

Minerals » Industry News

EPA postpones consent decision on TTR ironsands application Hugh de Lacy Alan Eggers isn’t the happiest man in the world about it, but the executive chairman of wouldbe offshore ironsands miner Trans Tasman Resources (TTR) is nowhere near as mad about the two-months postponement on the resource consent decision as is its cluster of opponents.

The Environmental Protection Agency (EPA) panel which is hearing TTR’s application to mine 50 million tonnes of seabed ironsands a year off the west coast of the North Island had originally intended to announce the decision on March 20, but has now pushed its decision day out to May 31 this year.

TTR’s Eggers told Mining NZ he was “far from happy” about the decision because of the huge extra cost it would load onto the company, on top of the $60 million it has spent so far in trying to get the mining operation off the ground.

The delay was a sharp blow in the pocket for the project to develop New Zealand’s vast offshore mineral sand deposits, and he was disappointed by it – or at least by that aspect of it.

Eggers did however concede that the EPA’s decision was the right one in the circumstances in that it reinforced the conviction the agency had already created during the long-running hearing that it was committed to understanding and taking account of every scientific and social implication.

Confessing that some of the detail in TTR’s submissions was “too complex for me,” he said it was critical to this precedent-setting hearing that “the high-powered experts cover every aspect of the science,” even if that took longer than anyone wanted.

This is the second time TTR has applied to mine about 30km off the Taranaki coast, the first bid being rejected by the EPA at its inaugural hearing in 2014.

The following year it similarly rejected Chatham Rock Phosphate NZ Ltd’s (CRP’s) application to vacuum rock phosphate nodules off the seafloor of the Chatham Rise, between New Zealand and the Chatham Islands.

The impression this may have given to the opponents of the scheme, and the wider community, was that seabed mining was off the New Zealand agenda once and for all.

The impression both decisions gave to the mining industry, however, was that the EPA’s experts had insufficient understanding of the environmental science supporting the applications.

The feeling in the industry was that it was the EPA, not the applicants, who had yet to get its scientific ducks in a row.

TTR announced last year that it was going to renew its application, and the hearing began in February.

CRP also intends to apply again, but its executive director, Chris Castle, said the company wouldn’t be ready to file for another

Trans Tasman Resources wants to mine 50 million tonnes of seabed ironsands a year, 30km off the west coast of the North Island.

15 months. Both applications are opposed by a formidable array of political and business interests, no doubt encouraged by the original applications being turned down.

They were accordingly furious when first the EPA decided to hold hearings in only two places, New Plymouth and Wellington, despite the objectors’ demands for more hearing venues.

Kiwis Against Seabed Mining (KASM) wanted hearings in Auckland as well, since that is where most of the opposition is based, while iwis

Ngati Ruanuia and Nga Rauru Kutahi said it was “appalling” that there would be no hearings on their home turf.

The subsequent decision to postpone the decision incensed these groups no less than it did Greenpeace and the fishing industry, which saw it as an unwarranted further opportunity for TTR to baffle the EPA with science.

Whatever decision the EPA makes in the end, it will be a portentous one for all subsequent resource applications, not just undersea mining.

Autumn 2017 » Mining NZ 17

Quarrying » Industry News

New resources to increase pass rate Karen Phelps An urgent meeting in February between the Aggregate and Quarry Association of New Zealand (AQA), Institute of Quarrying New Zealand (IOQNZ) and chief inspector (extractives) at WorkSafe New Zealand Mark Pizey has resulted in a series of initiatives that aim to help increase the pass rates of Certificate of Compliance B Grade oral examinations.

AQA chair Brian Roche says that the very high level of failure rates - of around 60 percent - and the emerging consequences for quarry operations are a major concern for the industry.

WorkSafe is issuing improvement notices, which give managers up to three months to sit, or re-sit, the B grade exam.

An AQA summary indicates it was generally agreed at the meeting in February that the causes of failure are complex.

Roche says that preparing candidates is a key focus and AQA and IOQNZ are working together to compile a library of questions to be used for preparation purposes by trainers, employers and candidates as well as arranging mock oral examinations opportunities so candidates enter an oral exam room knowing what to expect.

He says that the organisations have also asked WorkSafe to clarify if certain resources are permitted to be taken into the examination to be used as reference material.

“Mismatches identified between the questions asked in oral exams and the content of training received by the candidates need to be addressed so training provides the correct and complete information for candidates to pass the oral exam,” he says.

“A request had been made to WorkSafe for moderation of the panel conducting the oral examinations, to ensure consistency and uniformity.”

He says that the organisations hope to increase the pass rates through the initiatives and generally assist candidates, many of whom have been working in the industry for many years but are not familiar with sitting academic examinations.

As part of the discussions between the parties Roche says that WorkSafe is undertaking a series of regional forums which will be specifically focused on COCs.

New Zealand quarry operators are facing tougher compliance tests.

“Mismatches identified between the questions asked in oral exams and the content of training received by the candidates need to be addressed so training provides the correct and complete information for candidates to pass the oral exam.”

The workshops, which kicked off on April 6 in Gisborne, offer those working in the quarry sector a valuable opportunity to ask questions in a casual hands-on environment.

Roche says that those interested in any of the resources on offer or the workshop series are welcome to contact AQA or IOQNZ. The workshop series schedule will be

posted on the AQA and MinEx websites for reference.

The organisations are also mooting the possibility of a site specific Certificate of Compliance for very small operators.

“This is seen as potentially providing a more targeted solution aside from A and B Grade certifications as there are people working in the industry at smaller sites,” explains Roche.

“They will generally have a good level of competence at their site and a high level certificate of compliance was not seen as necessary.

“A site specific COC was seen as trying to acknowledge the realities of the industry.”

2017 QuarryNZ conference The name of this year’s QuarryNZ conference says it all – From Eruption to Construction - aiming to be bigger and better than its predecessors says Aggregate and Quarry Association of New Zealand (AQA) chair Brian Roche.

He says that one key difference is that, in recognition of the importance of continuing professional development, delegates at the 2017 QuarryNZ conference will receive four hours formal CPD hours for attending.

Roche says that the format of the conference has also been reorganised to allow for more formal learning hours in recognition that some working in the quarry industry find it difficult to get to CPD events depending on factors such as

18 Mining NZ » Autumn 2017

quarry location.

“Workshops on a range of CPD topics will be available at the conference and the AGMs of the AQA and IOQNZ also qualify for CPD hours.

“By attending all CPD opportunities delegates can obtain up to 12 CPD hours allowing attendees to clock up a large portion of their CPD hours required each year,” he says.

The 2017 QuarryNZ conference is being held at Auckland’s ANZ Events Centre on Viaduct Harbour from Wednesday, July 19 through to the gala finish on Friday night, July 21.

• For more information and registrations go to www.quarrynz.com

John Mites, President IoQ Australia, left, with Mark Pizey, Chief Inspector, Extractives, WorkSafe, at last year’s QuarryNZ Conference.

Quarrying » Industry News

New screen for Oparure Quarry MIMICO has recently completed the installation of a scalping screen at Graymont’s Oparure Quarry, near Te Kuiti.

The Oparure Quarry is New Zealand’s largest single lime quarry.

It sits on a 67-hectare site which is located on top of the rich Waitomo strata and produces exceptionally high-grade limestone for supply to Graymont’s Otorohanga and Te Kuiti Plants.

The main driver behind having the screen installed was to help the Oparure operation recover usable product from what was previously waste primary scalp product.

A refurbished Svedala VFS screen was supplied, with special design considerations required due to the sticky nature of the limestone feed stock and the confined installation space.

A screen bypass option was designed into the screen structure, to enable rejection of high clay content feed stock.

The screen was fitted with Trellex rubber media to help it handle the sticky feed stock.

Special non-stick liners were installed in key transfer points and Metso Trellex belt scrapers used to provide superior cleaning of all conveyor belts.

MIMICO, the New Zealand distributor of Metso and Trellex equipment, provided the product expertise and refurbished screen, while the MIMICO Engineering division (previously QMI Engineering) designed and fabricated the screen structure, conveyors and all chute work.

The Oparure plant also manufactures a range of high quality pulverised limestone products such as ag-lime, CalcimateTM and industrial fine lime in bags, bulk bags and bulk, as well as aggregates in bulk, predominantly supplying customers across the North Island.

The new scalping screen installed at Graymont’s Oparure Quarry, near Te Kuiti.

Autumn 2017 » Mining NZ 19

Quarrying » Industry News

Keen interest in environmental awards Entries are now open for the 2017 MIMICO Environmental Excellence Awards.

With an increasing focus on environmental issues, the awards help businesses to demonstrate their commitment to this aspect of their operation, says Aggregate and Quarry Association of New Zealand (AQA) chair Brian Roche.

This year former Parliamentary Commissioner for the Environment, Dr Morgan Williams, will once again be the judge of the awards.

Last year’s winners were Isaac Construction who won gold for its legacy project at its McLeans Island quarry on Christchurch’s northern outskirts.

Silver awards went to Canterbury Aggregates for its commitment to handover its Amberley Beach Quarry as a future community asset, and to Fulton Hogan Miners Road quarry for leadership in environmental policy and sustainability practice.

Roche says that last year Dr Williams commented that a standout feature of all the winners was that environmental management goals were an integral part of their operations.

He is expecting this year’s awards to also attract some top-notch entries with AQA CEO Roger Parton reporting he’s already received an entry. To enter the awards interested parties can contact Brendon Burns, Communications Advisor, AQA on 0274 305501 or comms@aqa. org.nz All entries must be received by Thursday May 25, 2017, and posted to CEO, AQA, PO Box 32019, Maungaraki Lower Hutt 5050 or by courier to 11 Wisteria Grove, Maungaraki Lower Hutt 5010. Winners will be announced at the 2017 QuarryNZ conference in Auckland.

20 Mining NZ » Autumn 2017

Isaac Construction, which won gold in the MIMICO Environmental Excellence Awards last year for its legacy project at its McLean’s Island quarry on Christchurch’s northern outskirts, has set the bar pretty high for future entrants. Above. endangered species who now make their home at the Isaac quarry include the black stilt left, and the blue duck, right. Below, the quarry site in it’s early days.

Proven Supplier For All New Zealand’s Mining, Forestry, Roading, Contracting, Quarrying & Earthmoving Industries.

Quality After Market Spare Parts Engine Parts

Our performance engine parts for all heavy equipment are the best.Our focus is to ensure you get quality products with the best technology available in the market.

Undercarriage

Sprockets, rollers, idlers, segments & track adjusters to cover all your undercarriage needs. We provide high-quality undercarriage replacement parts.

Ground Engaging Tools We offer a range of top quality ground engaging tools which will help your machine engaging tools are for all earth-moving equipment such as Loaders, Excavators, Backhoe, Dozers, Rippers, Motor Graders, Paving Products and Scrapers.

Excavators - Loaders - Graders - Dozers - Scrapers - Dump Trucks

Contact IBT Today!

0800 111 942

Machine Parts - Undercarriage - Rubber Tracks/Pads - Engine Parts - G.E.T

Industry News »

Research targets New positioning system long-term planning for underground mining CRL Energy, Landcare Research, O’Kane Consultants, University of Canterbury and University of Otago are collaborating on a minerals sector environmental research programme that is funded by the Ministry for Business Innovation and Employment (MBIE).

This research team has set up the Centre for Minerals Environmental Research which is designed to be a hub for previous and latest New Zealand research related to minerals sector environmental science and innovation.

This research programme is responsive to a governance group of stakeholders in minerals sector activity including mining companies, regulators, Iwi, DOC, and minerals sector associations.

The focus of current research by CMER is to reduce the uncertainty of long term predictions related to minerals sector disturbance of terrestrial and aquatic ecosystems.

It is also focusing on improving minerals sector engagement with stakeholders, especially Iwi, as well as the economic drivers for proactive data collection related to rehabilitation and mine closure.

Minerals sector activity such as resource development studies or mining require long term predictions of; geochemistry of rocks disturbed by mining; mine impacted water quality; biological response to mining stressors; ecological recovery; as well as the effectiveness of water treatment or land rehabilitation techniques.

These predictions are used for long term planning and bond setting to ensure mine closure occurs effectively, says CRL Energy’s James Pope.

Currently, these predictions are often based on small scale laboratory tests, chemical modelling,

These improvements will deliver additional certainty that postmining outcomes will be achieved.” monte-carlo simulations of environmental variables or assumptions of biological response to physiochemical conditions.

“These sources of information are a logical first step for long term predictions, however, they often have large uncertainties.

“Our focus is to improve predictions of long term geochemical processes, impact and recovery of aquatic ecosystems, and the effectiveness of management and rehabilitation techniques.

“These improvements will deliver additional certainty that post-mining outcomes will be achieved,” he says.

New field information is being collected from active and historic mine sites and their surrounding environments throughout NZ to provide empirical datasets to underpin the environmental predictions.

The field datasets are being linked to laboratory studies that identify innovative new tools and world leading approaches for mining companies to achieve desired closure outcomes.

• For further information consult the website www.cmer.nz

Mining3, the Queensland University of Technology (QUT) and Caterpillar have signed a collaborative agreement for the research and development of a new positioning system for underground mining.

Commencing in March 2017, and with financial support from the Queensland Government as part of its Advance Queensland Innovation Partnerships program, the research project offers potential solutions to the challenge of accurately estimating the position of vehicles in underground mining environments.

The intended outcome of the research project is a cost-effective, reliable, camerabased positioning system for locating and tracking underground mining vehicles within one metre of accuracy.

As well as a sophisticated multi-sensor system that provides centimetre-accurate positioning which will ultimately enable the automation of mine vehicles.

Essentially, it delivers the equivalent of GPS to underground mining, without the requirement for significant infrastructure installed throughout the mine.

Project leader, QUT Associate Professor Michael Milford said: “If you know where everything is on a mine site at all times you will be able to optimise how the mine site operates, improving safety and productivity.

“We believe that we can develop nextgeneration positioning technologies which can be deployed throughout the fleets of

underground mining vehicles all around the world.”

The project will leverage off research and learnings already acquired in other industries through the work undertaken by the Australian Centre for Robotic Vision at QUT. The centre is responsible for an underwater robot that culls crown of thorns starfish, as well as an agricultural robot that can differentiate between weeds and crops.

These learnings can be rapidly applied to a mine site scenario ensuring a quicker commercial outcome for the mining industry.

Prof Paul Lever, CEO of Mining3 said: “This partnership is an effective model for a major development in the advancement of autonomous mining technology.

QUT and Mining3 provide leading research capability in this area, and Caterpillar delivers the experience, product development capability, and local and global channels required to translate research into a product which can be distributed around the mining world.” QUT and Caterpillar are members of Mining3, the world’s leading research organisation directed by its global mining industry members to develop and deliver transformational technology to improve productivity, sustainability, and safety.

“This exciting new research will have a major impact on the global mining industry, dramatically improving existing mining operations and facilitating automation in underground environments.”

On the Hop in Waihi.....

Thousands of custom classic cars gathered in Waihi for three days in March at the annual Beach Hop Warm Up Party sponsored by OceanaGold Waihi. But the company’s involvement didn’t stop at sponsorship with workers from the mine also participating in the drag race, which involved men dressed in women’s clothing running a relay down the length of the main street - instead of batons, they pass handbags. The unique event, which draws entries from around New Zealand, has become incredibly popular and this year the OceanaGold team was placed second.

22 Mining NZ » Autumn 2017