Mining NZ - Spring Issue

Spring 2013

Rolling on in Reefton Birchfield Coal is churning out the tonnes at Giles Creek.

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Contents »

Spring 2013

Contents

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9 West Coast training centre opens The West Coast’s new Mines Rescue training centre will offer a facility for the mining industry and for the region as a whole.

12 Waikaia Gold steps up production Production at Waikaia Gold’s alluvial gold mining operation in Southland is now well underway.

16 All go for Glenys For West Coast identity, Glenys Perkins, the mining industry is in her blood.

12

26 Upgrade for Blackhead Dunedin’s Blackhead Quarry has undergone a major upgrade at its Green Island site.

If you have an image you think would look great on the cover, contact us: Spring 2013

16

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

Firing up in Reefton Birchfield Coal is churning out the tonnes at Giles Creek.

Cover photo courtesy of Birchfield Coal.

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

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

JOURNALISTS: Jo Bailey, Kelly Deeks, Karen

Phelps, Hugh de Lacy

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Mine re-entry plan offers hope to victims’ families Until we can get down

Jo Bailey Pike River families’ spokesman Bernie Monk welcomes the work being done to re-enter the mine, that will hopefully recover the 29 men entombed there, but says it should have happened over two years ago.

“It’s great to see some progress, as the families have worked very hard for this to happen. But it’s frustrating that it’s taken so long,” says Monk.

“Even now the process isn’t going fast enough for us,” he says.

“However we understand safety is the first priority and we have to fit in with the various regulations around re-entry of the mine.”

Solid Energy (which agreed to put a re-entry plan in place as a condition of its purchase of the mine); and the Government (which pledged $10 million towards body recovery); approved the three-stage plan to re-enter the tunnel, which got underway in October.

Stage one is already complete, after the NZ Defence Force removed 20 tonnes of machinery and equipment from the mine’s entry portal.

A concrete plug is being put in the ventilation shaft before stage two of the process, which will see nitrogen gas pumped into the drift to force out dangerous methane gas.

Monk believes it could be March next year before mines rescue staff will be able to enter the mine, after a period of vigorous safety testing.

there and get some questions answered there are a lot of people who are going to walk away scot free...”

Bernie Monk He says that the re-entry is vital - both to return the men to their loved ones; and to help find out what had happened in the mine on the day of the disaster.

“Until we can get down there and get some questions answered there are a lot of people who are going to walk away scot free, and not be accountable for what they’ve done.”

Most of the bodies are believed to inside the

mine’s main workings although the families believe there could be others inside the drift.

“I don’t believe the destruction under ground is anywhere near as bad as some people say, because the pictures we’ve seen so far don’t support that.

“I’m hopeful we’ll get good evidence from reentering the mine and a lot of the men back intact, which would put to rest some of those arguments.”

Meanwhile Monk says Rebecca Macfie’s new book ‘Tragedy at Pike River Mine: How and why 29 men died’ is a “must-read” that provides an insight into the determination of the Pike River families to bring their men home.

“Hopefully it will help people understand why we’ve been so forceful and haven’t given up.

“We want our men back and we want answers.

I’m sure anybody in this position would do the same.”

NZOG blocks compensation New system Hugh de Lacy

112 Wrights Road, Addington PO Box 37 346, Christchurch www.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.

6 Mining NZ » Spring 2013

Any moral obligation New Zealand Oil and Gas (NZOG) might have felt towards the families of the 29 miners who died in the November 2010 Pike River coal-mine disaster has been lost on shareholders asked to stump up the court-awarded $3.41m in compensation.

It now looks as if the victims’ families will get none of the compensation awarded by Judge Jane Farish in July, unless the Government surprises by putting up the money.

In late October, NZOG’s shareholders voted overwhelmingly not to pay up.

This was despite the statement in Farish’s judgement that that it was “morally unjust” that Pike River Coal Limited, which was founded and one third owned by NZOG, had been allowed to fold and so escape any liability for the victims’ families’ welfare.

Of the $2 million insurance payout that Pike River got, only $156,000 was left.

NZOG shareholders heavily defeated a motion to pay the reparation award.

Shareholders also refused to adopt a motion of censure of the way the company’s directors managed both the investment in Pike River and the response to the disaster.

In July NZOG spokesperson John Pagani told

Mining NZ the company had already voluntarily paid out $25 million, comprising $12 million in victims’ wages and to fund the body recovery process, $7 million to unsecured creditors, and $6 million to fund the receivership conducted by John Fisk of PriceWaterhouseCoopers.

The money paid to unsecured creditors comprised all but $1m of a separate $8m insurance payout from which NZOG had otherwise stepped aside.

“There was no legal obligation [and] the receiver said he’d never seen a creditor step aside like that before,” Pagani said.

NZOG had also contributed a further $500,000 to the trust created for the victims’ families.

In April this year Judge Farish convicted PRC on nine charges laid by the former Department of Labour (DoL) under the 1992 Health and Safety in Employment Act (HSE).

In July she fined the company $760,000 and ordered it to pay reparation of $110,000 each, a total of $3.41m, to the families and the two survivors.

But by then PRC had only $500,000 left over from the receivership, plus the $156,000 from the smaller insurance payout.

Prime Minister John Key has refused to commit his current National-led coalition government to pay the reparation, citing the danger of setting a precedent for future administrations.

targets safety A new health and safety guidance system for mine managers has just been released by the Ministry of Business Innovation and Employment (MBIE).

Energy and Resources Minister Simon Bridges says the aim of the guideline - ‘People Come First’ - is to help mine, quarry and tunnel managers “to build a strong health and safety culture”.

“It is a tool for managers in leading the charge to lift health and safety attitudes and performance in their businesses and has been developed in consultation with industry experts.”

The guide is part of a suite of approved codes of practice for the industry, which were recommended by the Pike River Royal Commission and the Independent Taskforce on Workplace Health and Safety.

“Mining regulations will be released by the end of the year. Following that new guidance will be issued on ventilation and fire and explosion.”

“There must be a sustained commitment towards a safer mining industry and this guidance contains advice managers should be using every day,” says Bridges.

“Commitment to health and safety from leaders will have a positive effect on the organisation but it has to be words and action every day to create the strong culture that will protect their people and their businesses.”

News »

Lifting the lid on Pike River Jo Bailey

A

ward winning journalist Rebecca Macfie admits to a few nerves around the release of her book Tragedy at Pike River Mine: how and why 29 men died.

“The pool of grief is very large on the West Coast, not only for the families but all the guys who worked at the mine. I sense every time the scab is taken off the Pike story it creates a renewed round of pain and grief for these people.”

Macfie says the book, her first, is the best work of her long, successful career.

However the Christchurch writer adds that researching and writing it is one of the hardest things she’s ever done.

“It was the sort of experience you might have only once in a lifetime – interesting, moving, harrowing, and at the same time utterly enraging,” she said in a recent media release. “This was a disaster that should never have happened.”

Macfie took leave without pay from her job as Rebecca Macfie Photo: Jane Ussher senior feature writer at the New Zealand Listener to write Tragedy at Pike River Mine, in the “window” between the Royal Commission of Inquiry into the In the second half of a “harrowing” 2011, her disaster, and the trial of former mine boss Peter attention returned to Pike River and the Royal Whittall, which will commence in early 2014.

Commission. She sat through most of the hearings Her involvement with Pike goes back to the days in Greymouth and provided online reports for the immediately following the first explosion at the mine Listener. “I was confident my early instincts about on 19 November 2010, when she was one of the Pike River Coal would be proved right by the Royal Listener journalists covering the story.

Commission, but couldn’t have imagined to what From early on, Macfie was convinced a staggering degree. shocking corporate failure, rather than an accident, “Some days I would think, the hearing might be had caused New Zealand’s worst mine disaster in a bit dry today, and we’d get another bombshell. It over a century. was hard to comprehend how a company could fail “The issue that jumped out at me in those so comprehensively on so many fronts.” first couple of day’s research was the company’s Macfie felt for the shattered families who description of the mine having a low to moderate endured the “intense, tragic” hearings. gas seam which made methane gas risk relatively “After going through the earthquakes I definitely easy to manage. When I started digging around this had a heightened sense of empathy for the Pike was obviously not the case. I refused to use the families.” word accident in connection with Pike.”

It wasn’t until August 2012 that Macfie finally Macfie wrote several stories about the disaster decided to sign a contract with Awa Press to write after that first “terrible the Pike River book. week” and says by She was determined the beginning of 2011 not to push the families It was hard to comprehend her feelings of unease to talk. remained.

“I went along to a how a company could fail Convinced that meeting of the families corporate failure, at the beginning of this so comprehensively on so combined with year to explain the book regulatory failure, were project and left it open to many fronts.” responsible for the them. I didn’t approach disaster, and concerned anyone unless they about whether the had made it clear they imminent Royal Commission of Inquiry would go far wanted to be involved.” enough, Macfie decamped to the West Coast for a Macfie interviewed more than 100 people week, to see what she could dig up. during her research, including miners, company “People were pretty reserved at that point as no management, geologists, contractors, Mines one wanted to jeopardise the Royal Commission by Rescue workers, and family members. speaking with me.

“I had fantastic support from a lot of people, “However I presumptuously asked some of the particularly Gerry Morris, a West Coaster and questions I thought the Royal Commission would former mining journalist who is a great advocate for cover and managed to get hold of some details the book and was my interpreter of the Coast; and about the production bonus scheme at Pike River former mines inspector Harry Bell, who I could ring that hadn’t come out before. It was one of those with any dumb mining question. He also picked me clues that I thought would be highly relevant.” up on all the tiny technical stuff for the book.

She was also told about unreliable machinery, “Coal mining is a terribly technical business, morale issues, and power outages at Pike River, and the guys who do it are smart, clever men with which featured in her story in The Listener in early enormous specialist knowledge. I have a lot of February. admiration for them.”

Soon after this story came out, Macfie was However Macfie is scathing of the Pike River approached by Mary Varnham, director of Awa directors, all of whom, apart from John Dow and Press, who asked whether she would be interested Stuart Nattrass, refused to talk in the wake of the in writing a book about the disaster. disaster.

“We agreed to speak on the phone at 12.30pm “For directors to occupy a position where on 22 February 2011. I was still talking to Mary ultimately their job is to manage the risks of an when the earthquake hit.” operation, then walk away and say nothing when Macfie’s home in St Martins was only a disaster happens, is not okay.” kilometre from the epicentre of the February quake which left it in “ruins and chaos”.

Tragedy at Pike River Mine: How and why 29 The book idea was put on hold while Macfie men died, by Rebecca Macfie (Awa Press) was dealt with her own disaster zone. published on November 15.

Bruce Mc Keown

Zane Brown

QUALITY FOCUSED RESULTS

Spring 2013 » Mining NZ 7

News »

Survey throws up useful data Jo Bailey It will take years to fully digest data produced by the aeromagnetic survey of the West Coast, says Mark Rattenbury, programme leader and geologist at GNS Science.

“It is not a trivial task given the sheer complexity of the data, and trying to integrate it with the existing information we have,” says Rattenbury.

“However there are some quick first impressions we can take from the survey which will probably stand the test of time.”

Between February 2011 and March 2013 approximately 16,000 square kilometres of the West Coast was surveyed and 91,722 line kilometres of data collected. The survey was commissioned

by New Zealand Petroleum and Minerals and undertaken by Australian firm Thomson Aviation using local helicopters.

It provides valuable information on the subsurface geology of the West Coast, which will assist applications in fields such as geological mapping, minerals and geothermal exploration, forestry, horticulture, geological hazard assessment, and engineering and construction investigations.

Rattenbury says although it is “early days” the survey has already produced useful data for the minerals sector.

“The aeromagnetic data is helping to define the boundaries between different known surface rock units that have been previously mapped, and extending those units underneath, where they’re buried by covered sediments. This is important because underlying rocks can potentially be the host of mineralisation of one sort or another.”

He says the survey has imaged various granite types, some of which have the potential for granite related mineralisation such as tin, tungsten, gold and the platinum group elements.

8 Mining NZ » Spring 2013

There are areas, particularly to the south of the Reefton Goldfield, where there is a lot more magnetic characterisation in areas we don’t currently know much about.”

“There are areas, particularly to the south of the Reefton Goldfield, where there is a lot more magnetic characterisation in areas we don’t currently know much about.”

The survey is also providing greater insight into the Greenland Group on the West Coast, which is the host rock for the gold deposits at the Globe Progress mine and many other hard rock gold mines on the West Coast.

“Not every part of the Greenland Group is prospective - in the entire Reefton goldfield only a few places really are. For explorers looking at target areas and the potential to extend a deposit, the data can help determine the best places to drill.”

Rattenbury says the survey is also helping geologists to understand some of the major underground structures on the West Coast, particularly the fault lines.

“Understanding faults is important on a couple of levels for mineral explorers. Faults can be conduits for mineralising fluids that have made ore deposits. Faults can also offset or displace existing ore deposits so knowing where faults are can help locate the extension of an ore body.”

The aeromagnetic survey also reveals the magnetic variations in dunes relating to some onshore iron sands type deposits.

“There is not too much current mining of these types of deposits but significant gold and heavy minerals occurs in the black sands, and these are imaging quite well in the new data sets.”

Independent consulting geologist and mine engineer John Taylor agrees the aeromagnetic survey is a good news story for the West Coast minerals sector.

However he says it didn’t go far enough.

“It was a real shame the survey didn’t fly the Schedule 4 conservation land, as this data would have been really useful for the geo-scientific community of New Zealand, particularly around West Coast hazard assessments and geo-scientific investigations. Fault lines and structural lineaments don’t stop at national park boundaries.”

He says the data will be useful for people looking at the tectonic structure of New Zealand as it will for mineral explorers, and could provide insights into the updating of the geological interpretation of the West Coast. As far as minerals exploration goes, he, like Rattenbury believes the data is promising, particularly around potential new alluvial gold sites and intrusive related mineralisation.

“The granites have shown up very well in this aerial photography and to a certain extent we can see some of these intrusive rocks sitting undercover. These are among some of the really interesting features in the data that have yet to be fully interpreted.”

Right: the total magnetic intensity varies across the West Coast Geophysical Survey area from low negative (blues) to high positive (reds). The variation is due to different levels of magnetic mineral concentrations in the rock.

News »

New rescue training facility opens Kelly Deeks Construction of the new Development West Coast Training Centre, being built for the Mines Rescue Trust is now complete, and offers a facility for use by both the mining industry and the West Coast as a whole.

The centre near Greymouth was officially opened on November 3. The $1 million facility was financed by Development West Coast (DWC) through the Pike River Distribution Fund.

DWC donated $1 million to the fund in the wake of the 2010 tragedy in which 29 men lost their lives.

Fund administrators allocated the money to the Mines Rescue Trust to establish the multi-purpose training facility.

New Zealand Mines Rescue Service general manager Trevor Watts says the new training centre will allow the rescue service to provide both the mining industry and the West Coast with a stateof-the-art training facility, while still maintaining its core capability as a rescue organisation.

“The more education and knowledge in the industry, the more we can raise safety awareness with the ultimate aim of preventing incidents from occurring,” he says.

The new facility has replaced Mines Rescue’s small training facility at Rapahoe, which included a small underground training tunnel.

Purpose-built on the same site, the new centre has an enhanced tunnel and additional features in order that Mines Rescue can carry out more confined space rescue training and vertical rope rescue training.

The 350sqm building, constructed by Greymouth’s John Griffin Builders, includes three seminar rooms, one able to host larger groups of up to 40 people, and the others slightly smaller rooms for groups up to 20 people.

There is also a cafe, toilet facilities, and a couple of offices for the New Zealand Mines Rescue Service.

Enjoying the opening of the new Development West Coast Training Centre: from left, Trevor Watts (Mines Rescue Trust general manager), Harry Bell (retired Chief Mines Inspector), Charlie Cotton (original West Coast Mines Rescue Trust member) and John Sturgeon (Development West Coast chairman).

The facility will enable Mines Rescue to continue to provide high quality training in both underground and surface extraction, as well as training for other industries that work in confined spaces, with breathing apparatus and in gas awareness and detection.

Watts says the building is not just for the mining industry, it is for the entire West Coast to use.

“There is strong interest in using it for other things, like fire service training and business meetings,” he says.

“The infrastructure of the new training facility makes it usable by a wide variety of groups and organisations that specialise in confined space entry and need confined space training.”

For the mining industry, the facility will be used for first class mine managers’ training, right down to induction training for people new to the industry.

Tai Poutini Polytechnic has also expressed an interest in using the facility to run some courses.

“It is our intention to work closely with the polytech,” Watts says.

“We see the West Coast as being too small a place not to work closely together.”

Principal Contractor of Mines Rescue Project jgriffin@xtra.co.nz M 027 5300 890 AH 03 7626 522

Spring 2013 » Mining NZ 9

Gold » Industry News

Price set to remain depressed Hugh de Lacy Try as you like to talk up the price of gold, but every new indication of the global financial recovery is trending it downwards in the medium term, and that’s having a direct impact on the activities of New Zealand’s two biggest goldminers.

Certainly the price has spiked briefly over the last couple of months, topping $NZ1800 an ounce at the end of August as a result of the United States Federal Reserve delaying the winding down of its $US65 billion a month money-printing stimulation package.

But because the Fed’s call was found to have been such a close one, that relief lasted barely a week, and throughout September the precious metal plummeted back to around the $NZ1550/ oz ($US1300/oz) mark it reached after its long fall from a September 2011 peak of $NS2340 ($US1920).

It bounced along in a narrow range at around that level over much of October, and was largely unaffected by the 16-day US Congress stalemate over raising the federal government’s debt ceiling.

In the interim it became clear that Europe is definitely on the road to recovery at last – even the stricken Greek economy showed quarterly growth for the first time in years – and with emerging markets like India and China only chugging along, gold’s appeal as a bolt-hole in times of uncertainty is diminishing, and its reverse links to the value of the greenback are as rigid as ever.

New Zealand producers Newmont Waihi and OceanaGold have found themselves in positions similar to each other, with the margins for their opencast mining now thin enough for them both to be looking at downsizing existing operations, even as they discover enticing new prospects.

Newmont has admitted shaving $NZ300 million of its spending since the beginning of last year,

Gold’s appeal as a bolt-hole in times of uncertainty is diminishing. including the shedding of 200 jobs, the halving its advanced project funding to around $60m, and the cutting of its exploration expenditure by a third ($35m).

At the same time it’s gained consent for its new billion-dollar Correnso underground mine directly below Waihi township, accessed through the existing Trio and Favona undergrounds, and expected to yield 600,000oz over 12 years.

Newmont is also mulling a drive for the estimated two million ounces sitting invitingly below the ageless Martha Pit, which has produced eight million ounces since it was broached in 1882.

Down in the South Island the 260 jobs at Oceana’s Globe-Progress open pit on the West

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

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

10 Mining NZ » Spring 2013

Coast are in jeopardy as the company considers mothballing it in 2015. But Oceana is not putting away the chequebook just yet, shelling out $11m in October to buy the 80% of Pacific Rim Mining Corporation that it didn’t already own.

Pacific Rim controls the disputed El Dorado project in El Salvador and has been battling the El Salvador government for eight years, earlier this year launching a $US315m claim against it for holding up development work.

Meanwhile, Oceana is doing a pre-feasibility study into its Birthday Reef on the West Coast where eight deep holes have indicated a 600,000oz resource at a startling grade of 21 grams of gold per tonne of ore.

Small producers battle price slump The slump in the gold price has hit Canadian-listed New Zealand company Glass Earth Gold hard, but it has a recovery strategy in place, while fellow Hauraki junior Talisman Gold remains on track to move into production.

Glass Earth has pulled out of its Central Otago placer gold cashflow generator because the margins had become too slim, and it has also pulled back from its Muir’s Reef play in the North Island to concentrate on its two advanced epithermal tenements near Waihi, Wharekirauponga (WKP) and Neavesville.

With its share-price at one and a half cents, the company last month won shareholder approval to consolidate its share capital on the basis of ten old shares for one new one.

Chief executive Simon Henderson told Mining NZ the company was de-risking its operations to improve confidence in its drive towards production.

“WKP is the prime example [of the new strategy] in that there’s 260,000 ounces at 6gm per tonne, with the potential for higher grades.

“Our focus is on high-grade potential which we believe will be economical to mine at whatever the gold price, and as a joint venture with Newmont Waihi there is infrastructure to process it,” says Henderson.

“It’s not quite brownfields, but the bulk of the infrastructure is in place in terms of roads, power and a processing plant.”

Neavesville has an historic JORC-defined resource whose development has languished for years because the Maori trust that owns the land has been reluctant to provide access.

Meanwhile the New Talisman (formerly Heritage) Gold Mines last month raised nearly $350,000 under a share purchase plan to help -fund underground bulk sampling and evaluation of its historic Talisman mine in the Karangahake Gorge near Waihi.

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 provide complete equipment install, maintenance and servicing on-site.

We pride ourselves on delivering reliable, proven products that give our customers peace of mind ....”

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 selfcontained 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.”

Gold » Newmont Waihi Gold

Waihi enters ‘uncharted territory’ Karen Phelps It’s taken 14 months, significant investment, and close community liaison but on October 18 the Environment Court approved the consent conditions for Newmont Waihi Gold’s Correnso Extensions Project Area (CEPA).

Newmont external affairs coordinator Kit Wilson says the size of the original Golden Link Project Area was the main concern of residents when the company entered court assisted mediation.

“We never had a ‘big plan’ because of course in this industry we never know exactly what we are going to find,” says Wilson.

“So we applied for a bigger area as an indicator of our potential intentions for the public even though we had no intention of immediately mining that whole area.

“The intention was that the community would know where we might mine next but in fact this had the opposite effect and wasn’t as useful a tool as anyone had thought.

“While the initial community response was that they wanted certainty and to know where we were going and when, they felt the original area was too long term.

“The smaller CEPA gives this certainty that the community requested,” explains Wilson.

Much of the CEPA area is the Correnso mine but it also includes the historic mining areas of Empire/ Grace and Daybreak located between Correnso and the open pit.

Wilson says it is highly likely that mining at Correnso will be staged due to the volatile gold price and the high cost of production.

Under the amended conditions Newmont Waihi Gold has consent to construct and operate an underground mine anywhere within the designated CEPA area provided that all of the consent conditions are met.

Correnso mine is within the CEPA area and Wilson says that currently Newmont Waihi Gold is refining the Correnso mine design.

“Construction of this mine will be staged as detailed infill drilling information becomes available and we develop a better understanding of the ore body and gain the necessary corporate approval.

“We anticipate being able to start this drilling from an exploration development drive which we will begin to construct towards the end of the year,” he says.

Wilson says while Correnso will provide continuation of work for current staff, there will be about a four month period before staff can be shifted to start work in CEPA. “This is a long time for these people to wait to begin work again.”

Before any work can begin Newmont Waihi Gold will be contacting residents who own properties above the Exploration Development Drive.

Under the amended consent conditions Newmont Waihi Gold is required to offer these property owners an ex gratia payment of 5% of the market value of the house based on an independent valuation.

If Newmont Waihi Gold plans to mine directly below the property then the company must offer to purchase it at market value.

Wilson says because mining of this nature – underneath residential houses – has never occurred before in New Zealand, “all eyes will be on the company”.

Newmont Waihi Gold has consent to construct and operate an underground mine anywhere within the designated CEPA area.

“We will mine the first stage, look at costs and reassess, then proceed if viable.

“The cost of this exercise has been significant because, unlike normal mining, we will have to buy residential houses and make ex-gratia payments to some owners.

“So if the grade doesn’t meet our expectations or there are other intangible factors that come into

play then we won’t keep going,” he says.

Wilson acknowledges that not everyone in the community is happy: “But the good thing about the process was that various community groups could sit down with us and thrash out the issues.

We listened to what the community wanted and made substantial changes.

“This project is unique in terms of New Zealand; it’s uncharted territory.

“It’s understandable that members of the broader community have reservations.

“For us it’s never been an issue of technical ability but credibility.

“People need to be reassured we can do what we will say we can do.”

Spring 2013 » Mining NZ 11

Gold » Waikaia Gold

Waikaia Gold steps up production Jo Bailey

Waikaia Gold’s privately owned dredging operation plans to mine between 10,000 and 20,000 oz per year over seven to eight years.

Production at one of New Zealand’s most significant alluvial gold mining operations, Waikaia Gold Ltd, is now well underway.

The $18 million alluvial gold mine, on the Waikaia River flood plain in northern Southland started operating ahead of schedule in early October, and is now reaching full production, says managing director Warren Batt.

“The development phase went according to plan and we are very pleased to have met our deadlines and budget,” says Batt.

“With an estimated resource of 145,000 oz, the mine is a significant alluvial gold producer by New Zealand standards, so is quite exciting in that respect,” he says.

Waikaia Gold’s privately owned dredging operation plans to mine between 10,000 and 20,000 oz per year for the seven to eight year life of the mine.

Batt says the company’s bespoke floating recovery plant, developed by Nelson firm Reliance Engineering with significant components built by Equip Engineering in Greymouth, is “working very well”.

It is sited on the flood plain of the Waikaia River in a pit up to 16 metres deep.

The pit will move around 80 metres per month down old river courses on the flood plain, reaching deposits that goldminers didn’t have the technology to access during the gold rush days at the turn of the 20th century.

“Waikaia has a significant gold mining heritage, with the district first panned for gold in the early 1860s.

“By the early 1900’s there were several dredges operating in the region but they were only able to dredge down to six or seven metres.

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12 Mining NZ » Spring 2013

Gold » Waikaia Gold

The $18 million alluvial gold mine, on the Waikaia River flood plain in northern Southland started operating ahead of schedule in early October, and is now reaching full production.

“Our new plant is working on deposits in previously unworked ground at between 15 and 19 metres deep.”

When Batt and the March family from Christchurch secured the option over the property in 2009 it had sat dormant for a number of years.

“L&M had an option over it back in the 1990’s and it was extensively explored by both L&M and the permit holders Eureka Mining from 1995 to 1999. However the gold prices were extremely low at the time and the project didn’t proceed.”

Batt and operations director Sam March are two of five directors in Waikaia Gold, with Batt “coming out of retirement” to work on the project.

“When the opportunity came up in 2008/09 the Global Financial Crisis was looming and I could see gold had a bit of a future.”

In the last four years, Batt and the March family have raised a significant amount of private equity, something that is crucial to the operation’s success, says Sam March, who runs the day-today operations at the mine.

“We are very pleased with the array of shareholders and investors in the company and extremely grateful for their support in getting this project through to production.”

March says the local community has also adopted the project “pretty wholeheartedly”.

“It’s a big thing for a district like this to have their economy suddenly grow by $15 to $20 million

a year. We have also employed a great team of men and women from the Southland area to work on the project and expect numbers to reach around 35 to 40 staff and contractors when we hit full production.”

This is not the first mining project Batt (a geologist) and the March family (founders of longstanding Christchurch firm March Construction) have worked on together.

They operated the Island Block gold dredge in Central Otago from 1993 to 1996, and carried out all the feasibility work and drilling on the Earnscleugh project (which is now operated by L&M Mining) in 1999.

“We have a warm relationship that has been going for the last 20 odd years” says Batt.

The operation is set to be formally opened by Minister of Finance Bill English this month.

Batt says the official opening will give directors the opportunity to thank “a lot of people for a great team effort which enabled the project to get off the ground”.

His words are echoed by March, who said the great start to the project was “exciting”.

“We are pleased with the performance of our gold recovery plant and grateful to all our staff.

“They are a great bunch of people who have got right behind the project.

“So far it’s been very exciting and we certainly hope that continues.”

We are very pleased with the array of shareholders and investors in the company and extremely grateful for their support in getting this project through to production.”

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www.e-quipengineering.co.nz Spring 2013 » Mining NZ 13

Gold » OceanaGold

Smooth run for tailings upgrade Jo Bailey A significant upgrade to the tailings storage facility at OceanaGold’s Macraes has gone without any major hitch says Lonnie Dalzell, the company’s civil engineer who oversaw the project.

“The new facilities are operating well, including all the pumping, pipeline and electrical services.”

The development saw the construction of a new earth tailings dam around 6 kilometres from the processing plant.

Stage one of the dam is approximately 35 metres high and 800m long, built almostly solely of materials won from the minesite. Further construction is expected in the following years with a maximum consented height of the dam being 560mRL (height above sea level).

Construction began in November 2012, however significant earthworks were required before the construction of the main dam could get underway, with most of the initial few months spent in erosion and sediment control and drainage work.

The new dam was designed by Engineering Geology in Auckland.

As part of the new tailings storage facility a major power upgrade had to be completed, says Dalzell. “The upgrade was completed early on in the project to tie in the first five-day shut the plant had ever had since it started in 1992.“ “We upgraded the 40km main feed from Ranfurly to ensure there was enough power on site to deal with the new infrastructure.

‘This upgrade included months of planning and was undertaken over a three day period with 120 linesmen from seven separate companies and three helicopters. It turned out to be one of the biggest line upgrades completed in New Zealand history.”

A 6km pipeline was laid between the new dam and existing minesite, with electrical and mechanical services a key part of the project.

“Because of the location of our existing processing plant the new pipeline had to go over a large hill which is located between our old and new facilities, requiring a new pump station to be constructed to provide the required pressure.”

The new pipeline and pumping station was designed through a collaborative effort between OceanaGold and AMEC (Australia).

Dalzell, and a few other key project members, worked on the project for around two-and-a-half years before its commissioning in early October, with the actual physical construction starting in November last year.

“Procurement of the equipment had to be carefully planned as the slurry and return water pumps had to be ordered before the design was

• • • • •

Big job: many items in the new tailings facility were prefabricated remotely and then shipped to the site, including the switchrooms. completed. The project had several other long lead items including a new 20MVA transformer which had a 14 month delivery time.”

Dalzell says OceanaGold managed the entire project with assistance from external consultants when required.

The pumping station and pipeline construction by itself included 32 individual contracts with a combination of supply and installation contracts covering all facets of construction.

The main contractors/suppliers were Pentair, Poly-Pipe Services, Waikouaiti Auto and Engineering, Otago Power and Refigeration (OPR) and Fulton Hogan.

“It is more cost effective to run a project this way. However one reason for keeping the project and construction management in-house is to keep

To ensure the project was completed on time many items were prefabricated remotely and then shipped to site.” the knowledge within our team. External consulants often take their knowledge with them once a project is complete.”

OceanaGold electrical supervisor Ian Harrington said the project was completed with electrical suppliers, Power Electronics; Switchbuild (the switchroom supplier); and OPR (the installer), really stepping up.

“To ensure the project was completed on time

many items were prefabricated remotely and then shipped to site.

This included the switchrooms which we had to keep as compact as possible to allow them to be road freighted. It was not an easy task when you consider one of the switchrooms contains six 650kW SD700 variable speed drives and all the associated distribution and control equipment to support that.”

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14 Mining NZ » Spring 2013

Gold » OceanaGold

Didipio production keeps OceanaGold tracking well Hugh de Lacy

A combination of up to six 650kW centrigual pumps are used to transport the slurry between the mine and the dam, The speed drives, supplied by Power Electronics, control the facility’s eight new pumps.

A combination of up to six 650kW centrigual pumps are used to transport the slurry between the mine and the dam, with two 450kW centrifugal pumps used to return the decanted water back from the tailings pond to the main processing plant.

“We worked closely with Power Electronics to ensure the units were manufactured, the shipped to site within a 10 week window. This was a major

While other mining companies might be battening down the hatches in the wake of this year’s massive drop in the global price for gold, Kiwi-Filipino producer OceanaGold Corporation seems to be revelling in the new environment.

The Melbourne-based mid-sized company announced an impressive net EBITDA profit of $43.7 million for its 2013 third quarter, from sales of nearly 75,000 ounces of gold at a production cost of just $271/oz, net of by-products.

Add to that the 6150 tonnes of copper and 130,000oz of silver mined from the recentlyopened Didipio gold/copper porphyry in Luzon, the Philippines, and Oceana looks to be thriving where other gold producers are reeling.

While nothing much has changed at the company’s two New Zealand mines, Macraes in East Otago and Globe-Progress at Reefton on the West Coast, Didipio’s diversified production has come on-stream at just the right time to cushion Oceana from the gold downturn.

Copper production is on the rise there with the company hiking its estimate for the full 2013 year from between 15,000 and 18,000t to between 18,000 and 20,000t.

Better yet in the straitened trading climate is that the full-year costs guidance net of by-product revenue across the company has fallen from $650-$800/oz to $550-$650/oz.

The $43.7m quarterly profit was from revenues of $156.6m.

Mick Wilkes

The gold production guidance from the company’s New Zealand operations remains unchanged, although the start of mining of the high-grade eastern section at Macraes began late in the third quarter, while mining of the slightly higher-grade material at the Globe Progress pit will continue through the fourth quarter.

Chief executive Mick Wilkes said the results from Didipio “further demonstrate how transformative this asset is to the company”.

“We are pleased to increase our fullyear 2013 copper production guidance while decreasing our cash cost guidance, and remain committed to strengthening the balance sheet through the repayment of debt,” Wilkes said.

feat for a quantity of drives of that size,” says Harrington.

He says being able to utilise vendors who worked together as a team, with an understanding of the business was a key factor in the project’s success.

“Good open communication between OceanaGold and the suppliers/contractors resulted in a highly successful project, that we are all proud to have played a part in.”

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Spring 2013 » Mining NZ 15

Industry Focus » Women in Mining

Glenys - not afraid to give it a go For West Coast identity Glenys Perkins, mining is in her blood. She talks to Jo Bailey about a lifetime spent in an industry she loves.

W

hen Glenys Perkins and her late husband discovered evidence of old gold mine workings on their farm, it was the beginning of a 40-year love affair with the mining and minerals sector.

“We sold our new car at the time and purchased a gold screening plant.

“It has certainly been an interesting journey from those initial tentative beginnings,” she says.

Today, Glenys is recognised as one of the industry leaders on the West Coast, renowned for her vast project management experience and knowledge of the mining and minerals sector in the South Island.

She is currently project manager for Titan Resources, manager of Taylor Coal, a director of Birchfield Coal, on the board of the Coal Association of New Zealand, and is a trustee of West Coast Minerals.

As if that isn’t enough to keep her busy, Glenys continues to gold mine with her son and daughter on the home farm, where they have also developed a dairy support unit and bed and breakfast tourist venture to complement the mining operations.

Earlier this year Glenys was inducted into the Worldwide Who’s Who, for Excellence in Mining.

“To be accepted by this prestigious organisation of professionals was a surprise and really satisfying,” she says.

Glenys grew up in an “active family”, with a father who worked as a general contractor in land development, river protection, bush contracting and later as a coal miner throughout the West Coast.

After his death, her mother asked for Glenys’ help to run the family coal mine, where she found herself bagging coal and answering the phone.

“I quickly learned that coal is a very complex mineral and that every coal mine on the West Coast mines a different coal specification.

“Understanding the dimensions of this coal chemistry from formation, mining and processing through to the combustion process has been an intriguing and challenging journey.”

It was also around this time Glenys learned that while gold mining might be considered the “glamour industry, with the perceived romance of a quick fortune”, coal mining is for the more steady resource harvester, seeking a stable long term investment.

Glenys is still involved in the family business concentrating on sales, marketing and

16 Mining NZ » Spring 2013

Glenys Perkins: “It’s all about attitude and how motivated you are to succeed.” representation of the coal industry, “probably as my machine operator skills have diminished,” she says.

These days she mostly drives a laptop rather than a machine, working at the “marketing, innovation and management levels” within Titan Resources, Taylor Coal and Birchfield Coal to ensure their future development.

She is also happy to serve on industry organisations, saying it is important the “grass roots voice of those in touch with the “coal face” is represented.

“The day-to-day challenges facing these industries must be articulated so they are understood when policies are applied for the efficient extraction of any resource.”

The “valuable and essential” contribution made

by West Coast coals to the South Island economy shouldn’t be underestimated, she says.

“Almost one million tonnes of coal per year are used in the processing of milk, meat, wool and horticulture.

“The supermarket shelves would be very bare if it was not for coal used in the processing of these essential everyday products.”

The Australian mining industry is well supported, both politically and by the public, in comparison with our extractive industry in New Zealand.”

Glenys says her gender has never been a barrier to working in the extractive industry.

“It was not difficult for me because I was born into the industry.

“However I established credibility early on because I was keen to learn new skills and give it a go. I don’t buy into the negative response to difficult challenges. It’s all about attitude and how motivated you are to succeed.”

She would like to see more woman take advantage of the “myriad of opportunities” within the resource sector; and see a greater percentage of women moving into management and representation positions.

“The women entering the industry whom I have met recently are brilliant women, who I hope will

go a very long way to furthering not only their own careers but expanding the opportunities for our minerals resource industries in New Zealand.”

She is also keen to see some of the established initiatives from the Australian mining industry introduced here.

“The Australian mining industry is well supported, both politically and by the public, in comparison with our extractive industry in New Zealand.

“I believe our local mining industry would benefit from the introduction of initiatives such as the Australian ‘Minds in Mines’ programme, which supports not only the mining industry, but rural communities in promoting the wellbeing of our greatest resource – our people.”

Industry Focus » Women in Mining

Getting past the stereotypes Highlighting the role of women in mining is a winner on all fronts, writes Straterra’s Chris Baker.

.... a woman in mining presents a double or triple whammy from

W

hen former Aussie Prime Minister Kevin Rudd announced he was going to slam a resource tax on Aussie mining companies, the industry hit back with a $20 million advertising campaign.

And rather than fight with facts, the Minerals Council of Australia led with a human face.

Miners are part of society - explains “Australian mining: this is our story” – we earn a livelihood, care for family, share with friends, and overcome challenges. Given the economic contribution, miners are also an important part of society.

It is a similar story in New Zealand, of course, but you would not know that from mining opponents.

At one public meeting Straterra attended, we were confronted by an activist who was surprised to learn we have children too, and that we also enjoy taking them camping in the outdoors!

Research tells us that more than 80% of Kiwis support mining provided locals are employed, most of the money stays in New Zealand, and the environment is managed; all of which is the case.

There is clearly an opportunity to inform both the audience with an interest, and the audiences that may be influenced by the strident views of a vocal minority.

This is about changing the public discourse on mining, and this is the goal of Straterra’s new strategic communications plan.

A critical question is how industry delivers our messages. Pauline Colmar who did the 2012 and 2013 opinion polling above explains that hypocrites loathe any reminder of Nimbyism,

a communications perspective.”

Chris Baker

while MCA CEO Mitch Hooke says the last resort is to play the smart alec. I believe we can learn from this advice.

Prominent in the Australian campaign are the “Boddington hot seaters”, a group of mums working as truck drivers at a gold mine, 130km away from Perth.

To solve a problem of lost production time with regular workers taking meal and refreshment breaks, Newmont Mining recruited mothers looking for work between 9am and 2pm to cover the gaps. The company is millions of dollars a year better off, and the hot seaters earn a good income while still being able to drop off and pick up their kids from school every day.

We have good stories in New Zealand too.

Think of West Coaster Glenys Perkins who

works in a management position in the family coal mining business and has interests in gold mining, turning both into profitable enterprises with growing market share and improved quality of product and service.

Among many community achievements, she is sponsoring New Zealand’s gold panning team to enter the Australian Goldpanning Competitions that are being held in March 2014 in Blackwood, Victoria. Glenys is an ardent champion of our industry as a whole.

This brings me to the recently revitalised Women in Mining New Zealand (WiMNZ).

Run from Straterra, this organisation of is keen to promote women in our industry across a broad perspective, from gender pay issues, to recruitment and career development.

WiMNZ also represents a face of mining of which many New Zealanders are probably unaware. That is not to say that blokes in mining are not humans, or lack good stories. But if we want to get past the mining stereotypes and negative rhetoric, a woman in mining presents a double or triple whammy from a communications perspective – the unexpected, the modern, and the future focused.

She stands a good chance of being convincing, not with spin or hype, but with the force of her personality and deeds.

Promoting the role of women A year after the idea was first mooted, the Women in Mining New Zealand (WiMNZ) group is going from strength to strength.

“WIMNZ has been received enthusiastically by both men and women in the industry,” says Geena Kumar, a member of the establishment committee and Business Development manager at Straterra that holds the secretariat for WIMNZ with the support of AusIMM WIMnet.

“The past year has seen us run a successful Women in Mining panel discussion at the 2013 Minerals West Coast Forum, smaller regional events in Dunedin and Wellington, and the creation of the WiMNZ LinkedIn online group which now has over 130 members.”

Ms Kumar says the main focus of WiMNZ is to provide a platform for discussion, networking and professional development for women involved in the mining and resource sector.

“We want to promote the role of women in the industry - identify their stories, their careers, how they balance work and home life, and look at their involvement in the industry at all levels.”

“We want to look at ways to increase attraction and retention of women in the mining industry and provide a support network for development across regional areas of New Zealand, particularly around mentoring and professional development opportunities.

Obviously we would also like to see more women in senior roles.”

Kumar says although the focus of the group is on women, men are far from excluded.

“We have a few male members too which is fantastic. It is not just about being a woman in mining, but working together to discuss broader industry issues and being proactive in raising the profile and public perception of our industry.”

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Spring 2013 » Mining NZ 17

Coal » Bathurst Resources

Bathurst builds up for production Jo Bailey A year of “jumping hurdles” has seen Bathurst Resources finally gain resource consent to mine its flagship Escarpment project on the Denniston Plateau.

When Mining NZ spoke with managing director Hamish Bohannan just after last month’s announcement he said the Bathurst team had “hit the dirt running”.

“The news hasn’t really sunk in with our staff who is still working hard,” said Bohannan.

“We have to get our 25 operating plans independently reviewed and approved by Council, Iwi and the Department of Conservation which will keep us busy until Christmas. Then we hope to commence earthworks some time in January to clear the stockpiling areas and expose the coal.”

Bohannan expects coal to be shipped from the opencast mine in the first quarter of 2014, with the company on target to deliver 180,000 tonnes by the end of the financial year.

Production at Escarpment is expected to ramp up to 1 million tonnes after 12 months and 2m tonnes after three years. The long term goal is to reach production of 3m tonnes per annum from the whole Buller Coal Project.

The positive Environment Court decision is great news for Bathurst’s patient investors, who have endured a lengthy wait for the project to get underway. The market responded well with Bathurst’s share price rising.

Bohannan says the West Coast community is also “over the moon”.

“The patience of the local community has been fantastic as they’ve had a really tough time over the last few years. It is exciting that we can now go ahead and create new jobs on the Coast.”

Bathurst already employs 36 staff at its Cascade mine which is adjacent to the Escarpment project.

The company’s workforce on the West Coast is expected to reach over 200 as production at Escarpment ramps up, with hundreds of additional jobs created in the local community.

“We have already engaged an environmental team, safety team and accounts team in support of the new mine and after Christmas will start recruiting and building up for production,” he says.

At its recent annual general meeting Bathurst announced total group revenue of $41m compared to $38m in 2012.

It reported a net loss before tax of $16m compared to a loss before tax of $33m in 2012.

Bathurst raised around $19 million from its recent placement and share purchase plan which has boosted cash reserves.

“With a positive outlook for the domestic business and impending development of the Escarpment project, we look forward to a period of significant growth in the coming year,” said chairman Craig Munro in his report.

Production at the Escarpment mine is expected to ramp up to 1 million tonnes after 12 months and 2 million tonnes after three years.

Canterbury Coal purchase fills a niche The acquisition of new assets to spread risk during the development of its Escarpment project has seen Bathurst Resources’ recent purchase of Canterbury Coal.

The open-pit thermal coal mine near Coalgate produces coal with a low sulphur and ash content that is in high demand, particularly from local dairy food processors.

“This business provides a good base load for the company,” says Bathurst managing director Hamish Bohannan.

“All the production stays within Canterbury, mainly for milk treatment and to meet industrial demand.”

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18 Mining NZ » Spring 2013

Annual production at the mine starts at 36,000 tonnes and will grow to 50,000 tonnes, and then 100,000 tonnes over the next few years.

Bathurst has also taken a 50 percent stake in the Kenroll Coal Yard at Rolleston to service the mine. The consented coal yard has all the necessary plant and equipment, a weighbridge and screening facilities.

The new acquisitions add to Bathurst’s growing domestic business that includes the Takitimu thermal coal mine at Nightcaps, and the Cascade mine on the West Coast that produces metallurgical coal, supplied mainly

to Holcim for cement manufacture. Bathurst has other West Coast projects in development including the Coalbrookdale permit and Whareatea West project.

These domestic operations provide a “steady business model’ for the company, but the real value for investors will come when the high quality coking coal from Bathurst’s Escarpment project is exported from Westport, says Bohannan.

“At the moment the prices are low but we can still achieve a good margin. When the prices go up that’s when we’ll really see the returns for our investors.”

Lobby group planning ahead Jo Bailey The Go West Coast lobby group, started by concerned Westport business owners this year, is pleased consent has finally been granted for Bathurst’s Denniston Plateau development.

However group chairman, Brent Oldham says they’re not fully celebrating just yet.

“We are happy, however we’ll temper our enthusiasm until we see the coal actually coming off the plateau.”

While Go West Coast supports the Bathurst project and was formed around it, the group is far from the pro-mining lobbyist it has been portrayed in mainstream media, says Oldham.

“It is our intent to get behind any project or industry that stands on its own merits, and that we think will provide an overall benefit to the West Coast - not just in terms of employment and the economy, but also its ecology. We’re not providing a rubber stamp for everything.”

Oldham, who owns Westport technology

company IT@Work says the idea for the group came after he was approached by fellow businessman, Guy Boaz, who was keen to write a letter to a local paper about his concerns around delays created by appeals against the Bathurst project.

“In the end he decided to start a petition to lobby the local council to take some action.

“When the petition showed us he had a big chunk of support he held a public meeting to see what ideas other people had. I only expected 20 people to turn up but there were around 70.”

Support for the group, which became an incorporated society in September, continues to grow. However Oldham says he is determined Go West Coast will not revisit the “green bashing” of the 1980s.

“The majority of people on the West Coast are conservationists, with around 70 percent of our members indicating they fall into this category.

“Our aim is to provide a calm, balanced voice for reasoned assessment of issues facing the region. We are also committed to providing only factual information that we can back up.”

Coal » Stevenson Mining

75 years and still going strong Karen Phelps After 75 years in the industry Stevenson Mining believes that mining is an important part of this country’s heritage as well as being a significant component of New Zealand’s economy.

“A comprehensive poll carried out in New Zealand by Pauline Colmar in 2012 found that 81% of participants believed it was ‘very important or quite important’ to develop New Zealand’s natural resources for prosperity, while 77% were ‘very concerned or quite concerned’ about New Zealand’s standard of living,” says Stevenson Mining general manager Mike Coleman. “It is sentiments such as these that underpin Stevenson’s desire to actively participate in the industry.”

Stevenson has been involved in mining since 1938 when it acquired the Drury Quarry.

In the mid-1950s Stevenson began work on Kopuku (since renamed Kopako) in the Waikato.

In addition to current contracting work at the Rotowaro and Coaldale mines, Stevenson has an interest in a specialist coal deposit at Te Kuha, located approximately 12km south of Westport in the Buller District of the West Coast.

Stevenson Mining services range from mine planning, design and management to water management, overburden removal and haul road construction. Coleman says the company’s focus remains firmly fixed on building an effective and sustainable mining operation.

“We seek to apply a high standard of resource extraction, processing, health and safety and environment methodologies to all of our projects.

“Our track record speaks for itself – several decades of being reliable and responsible operators, completing projects on time and within budget.”

Coleman says the contract mining services offered by the company provide the mine owner with a number of key benefits including the capacity to quickly get their mine operational, reduced capital investment and certainty on budget.

“We offer the ability to optimise economies of scale without the client’s investment in staff and capital. This gives our clients time to focus on what they do best – marketing the resource.”

Stevenson Mining will shortly complete its second year as the mine contractor at Rotowaro in Huntly. The mine, which is owned by Solid Energy, is New Zealand’s second largest opencast coal mine.

Stevenson Mining will shortly complete its second year as the mine contractor at the Rotowaro open-cast coal mine in Huntly.

“We’ve exceeded all targets at Rotowaro,” says Coleman.

“I put this down to excellent teamwork and also to the strong support we’ve had from Solid Energy.

“Technically we work really closely with Solid Energy; it’s a real partnership.

“Stevenson’s strong people values combined with its ongoing systems development and a culture of continuous improvement has created a positive work environment and a mine that everyone is proud of.”

At Coaldale work continues at the greenfield mine site which is located around a kilometre north west of Nightcaps in western Southland.

We offer the ability to optimise economies of scale without the client’s investment in staff and capital. This gives our clients time to focus on what they do best – marketing the resource.”

Stevenson is contracted to Takitimu Coal, which is owned by Bathurst Resources for the removal of coal and overburden.

At Te Kuha, a small speciality coking coal resource, initial exploratory and ecological work is being evaluated prior to applying for consents.

Coleman says Stevenson’s aim is to mine the resource selectively, ecologically and sustainably.

“It will probably be mined over a 10-15 year period, dependent on market demand.

“What we are trying to achieve is both an employment and a social project.”

Staff get on their bikes....

A focus for Stevenson Mining has always been supporting the communities within which the company operates.

In order to give something back to the West Coast community Stevenson Mining has been supporting the Source to Sea cycle race.

“We wanted to ensure the cycle race continued to operate, as it is an important annual event for the community,” says Stevenson Mining general manager Mike Coleman.

The Stevenson Mining Source to Sea race starts at St Arnaud at Lake Rotoiti, south-west

of Nelson, and finishes at Carter’s Beach in Westport. A range of cycling challenges is offered, both individual and team, and from 50km to 160km.

Stevenson Mining not only sponsors the event but a number of staff also enjoy taking part. This year Stevenson fielded a team of around 24 participants in the event, many of whom were back to see if they could improve on their previous year’s performance.

“It’s a very worthwhile community-oriented event and a great way to get staff and friends to bond outside work.”

Stevenson knows. Mining. www.stevenson.co.nz

(09) 09 984 8400 Spring 2013 » Mining NZ 19

Industry News »

Bank not so happy with rescue deal Hugh de Lacy It’s the banks who will carry the can for the nearcollapse earlier this year of state-owned collier Solid Energy, in a deal worked out by Finance Minister Bill English, with at least one of them not happy about the proposed plan.

The English formula to deal with the company’s $370 million debt involves the banks in effect writing off $75m by swapping debt for redeemable shares, while the Government will buy a further $25m in redeemable shares and will offer Solid Energy secured credit of up to $130m.

The shares will have a value only if the company recovers, and they rank ahead of ordinary shares but behind the secured loan the Government is offering.

The banks’ contribution will knock 20.4 percent off the total debt before taking the Government’s $25m into account.

The deal requires 75% backing to be put into effect. Five Australasian banks – BNZ, Westpac, ANZ, CBA and TSB - are involved, along with the Bank of Tokyo Mitsubishi (BTM), and it’s the Japanese bank that is digging in its heels. even though, according to English, it stands to lose all of its $80.1m exposure if it stymies the deal.

BTM’s Auckland branch is the second biggest lender to Solid Energy, and the deal would see both it and the biggest lender, BNZ, both having to write off $16.3m, while TSB is up for $13.8m, Westpac $11.3m, CBA $9.2m and ANZ $8.2m.

Solid Energy’s Reefton coal plant - the future of the State-owned collier remains clouded, as bank lenders balk at a proposed rescue deal.

Without the deal Solid Energy faces insolvency, and even with it it will still carry a high 69% debt-toequity ratio. The banks were due to meet to discuss the proposition in late October, but BTM lodged proceedings challenging it in the Auckland High Court earlier in the month.

English responded by saying the court case had little chance of succeeding.

“The irony is if they do succeed in stopping the transaction it could bring the company down and they would lose all their money.”

A possible factor in BTM’s case is whether Solid Energy’s indebtedness was caused by its sole shareholder, the Government, demanding greater dividends from state-owned enterprises in the wake of the Global Financial Crisis (GFC).

Critical to the validity of this argument is whether the Government’s call was just one of general policy, or whether it specifically required Solid Energy to borrow more money than it needed to meet dividend expectations.

The company’s latest financial results, released

last month, showed that its losses for the year had ballooned to $335 million, compared to a $40m last year, after underlying earnings fell 78% to $22.2m, asset write-downs cost $215.3m, and restructuring, redundancy and closure costs reached $102.2m.

Meanwhile, global coking coal prices, whose slump precipitated the Solid Energy crisis, continue to rub along at around $175/tonne ($US140), compared to $365/t ($US290) in 2011 and to the peak of $440 ($US350) in 2008 before the GFC.

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Gough Group

Gough Group opens rebuild centre Gough Group’s new $10 million Component Rebuild Centre (CRC) is positive news for the mining sector.

The purpose-built facility at the company’s Christchurch headquarters - which was officially opened last month by the Minister of Energy and Resources, Simon Bridges - will provide a controlled environment for the rebuild of engines, powertrain components, hydraulics and fuel injection equipment.

Gough Group chief executive, Karl Smith, says the investment, one of the biggest in the firm’s 84-year history, will ensure the heavy equipment market in New Zealand has access to a worldclass facility.

“The leading-edge environmental control technology of the building is matched by investment in new tooling, including a new engine dynameter, transmission test cell and fuel injector test cell,” says Smith.

“This will enable Gough’s engineers and technicians to service the latest, most technologically advanced Caterpillar equipment, especially, but not exclusively, for the mining industry.”

Smith says Gough Group was mindful of the Government’s desire to ensure that mining helps revitalise the New Zealand economy.

Mining contributes more that $1 billion to New Zealand’s GDP each year, generates more than 7000 high-skilled, high-paid jobs, which pushes out to almost 15,000 when all of the indirect jobs and support services are factored in.

“The workshop is climate controlled with positive pressure to keep the environment clean, has high speed doors to assist in the task, the roof is insulated and the walls are concrete tilt slab to enhance energy efficiency and help contribute to a stable environment within.

“There is also a separate disassembly area to ensure the facility’s contamination control levels

Gough Group’s new $10 million Component Rebuild Centre in Christchurch will ensure that the heavy equipment market in New Zealand has ready access to a world-class facility.

remain at the highest Caterpillar five star rating,” he said.

The facility has the capacity to strip and rebuild any variety of Caterpillar equipment. In addition,

it will perform non-destructive crack testing of parts, dynameter testing of engines up to 3000 horsepower, dynameter testing of transmissions to Caterpillar 793 size, hydraulic pump testing and rebuilds of hydraulic pumps up to 150 horse power, rebuild of hydraulic cylinders and a range of onsite monitoring.

The CRC took two years to plan and a further nine months to build. The workshop floor is 80 metres by 21 metres with three specialist sealed rooms and 20 overhead cranes.

“At present we have a staff of 16 in this section with a capacity to have 40 technicians working over a 24-hour period. We have already started recruiting for the facility and currently have four vacancies for technicians.

“The Gough Group is the largest employer of heavy diesel apprentices in New Zealand and this

facility will work in closely with the apprenticeship scheme.

“We have 55 apprentices in our four-year course at present and will be looking to take on 13 more in the 2014 year,’ says Smith.

“We have several adult apprentices in training and we are also upgrading a group of petrol technicians to become heavy-duty diesel technicians, an 18-month process.”

The Gough Group is New Zealand and Australia’s leading provider of equipment, parts and services to the infrastructure, mining, forestry, transport and power system industries.

It has more than 900 highly-skilled employees and a network of over 50 locations in both Australia and New Zealand and represents international brands such as Caterpillar, Hyster, SAF, and Palfinger.

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Spring 2013 » Mining NZ 21

Environment »

MBC a leading light on the Coast Jo Bailey The team at environmental solutions company MBC was delighted to win two major awards at the recent West Coast Leading Light Business Excellence awards.

The Westport firm claimed the ACC Leading Light Workplace Health and Safety Award and the HairyLemon and the IT Team Leading Light Innovation Award at the event held in Shantytown last month.

Technical manager Adam Walker says the wins are testament to everyone at MBC, especially when it comes to the health and safety award.

“Our health and safety manager Morgan Newburry and technical officer Lisa Hankey, who wrote our application and our health and safety policies and procedures, played a big part in us winning the award. However the buy-in from our whole team was critical to our success.”

MBC undertakes a wide range of work in differing locations, with its specialist, tailored environmental solutions ranging from ad-hoc field assistance through to major project planning and implementation.

It has around 40 staff who have developed and managed several unique projects across a variety of fields, from threatened species management to environmental monitoring and effluent management.

Many of its work sites are seen as high-risk, such as active mine sites and back country project work, which means health and safety is a critical aspect of its day-to-day operation, says Walker.

“The New Zealand health and safety culture is changing with greater emphasis being placed on ensuring work is undertaken in a safe manner.

“Over the years, our work with large mining companies, such as Solid Energy, has definitely influenced the development of our own health and safety procedures in a positive way.”

Walker says the “trickle down” effect continues with smaller clients of MBC, particularly in Canterbury, where the company is involved in the Canterbury rebuild.

“Many of our clients on the East Coast are keen to look at the health and safety systems and procedures we have developed.”

MBC’s fully integrated health and safety culture includes daily pre-shift meetings, regular team meetings, topical presentations and training around the company’s health and safety framework.

Random drug and alcohol testing and periodic medical testing of staff assist with managing health and wellbeing.

Policies and procedures are regularly reviewed and improved, with continual improvement being a core value of the company.

MBC has undergone several external health and safety audits in the past year, achieving 99.4% in an audit by one of its main clients, Stockton Alliance.

It was also audited by category sponsor ACC as part of the judging process for the awards.

Awards success: Ganesh Nana, chief economist, BERL (guest speaker); Hellen Bygate, MBC; Morgan Newburry, MBC; Adam Walker, MBC; Lisa Hankey, MBC; Peter William, TVNZ (MC) and John Sturgeon, chairman Development West Coast at the West Coast Leading Light Business Excellence awards.

The MBC team also took out the Innovation category at the awards for a tailor-made, in-house training programme the company developed for its task leaders.

The aim of the programme is to build organisational awareness and skills in leadership, health and safety, staff management, field tasks, training competencies and company policy and procedures.

“We looked at external training opportunities to develop our task leaders who were taking on more responsibility due to the growth and expansion of the business. But when we couldn’t find courses that covered each of the areas specific to our work environment and staff responsibilities we decided to create our own modular system.”

Walker says the confidential and anonymous feedback from staff about the programme has been “overwhelmingly positive”.

“With a common framework to refer to and work with, our staff has indicated they now have a greater understanding and respect for the company’s values, and that being involved in the programme is also a fun, enjoyable experience.”

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22 Mining NZ » Spring 2013

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Minerals » Siburan Resources

Siburan steps up tungsten quest Jo Bailey Perth-based exploration company Siburan Resources is gearing up for a summer drilling campaign at its flagship Kirwan tungsten project 12km east of Reefton.

The ASX-listed company has received commitments for A$3million from mainly Southeast Asian investors to progress exploration for the strategic metal.

Siburan Resources picked up the two exploratory permits and a prospecting permit over the 837sqkm Kirwan prospect in early 2012 after Auzex Resources relinquished the holdings back to the Crown.

Last summer it drilled four holes to verify the main tungsten zone as identified by Auzex.

It now plans to drill around eight holes to a depth of 250 metres in the flanks of Kirwan Hill, where historic work has identified significant tungsten and gold mineralisation.

Managing Director Noel Ong hopes to have a JORC-inferred resource at the end of the drilling programme, which he says is “imperative” to attract more investment to the project.

“We’re progressing slowly but surely. Our maiden drilling programme was encouraging in that it confirmed the source, grade and continuity of the tungsten mineralisation we thought was there,” says Ong. “The next phase is to outline and work towards developing the JORC resource.”

Tungsten is a versatile metal used in many manufacturing processes. It hardens steel and is found in numerous everyday items such as light bulbs and vibrating mechanisms in cell phones.

It is also being used to produce armory and weapons for the military and even to replace lead for shields at new-age nuclear reactors.

Ong says there is significant demand for tungsten in China, Japan, Korea and Europe, with China being the main market, as it produces around 80 percent of the world’s tungsten products.

“Although it is a widely used product, only around 100,000 tonnes of tungsten are produced globally each year.

“Even some of the larger mines only produce around 4000 tonnes.”

He hopes a mine at Kirwan would produce around 2500 tonnes of concentrated product per year, which would make it a “very profitable” operation given the rising global demand for the metal.

“The loading on local infrastructure would be next to nothing with this level of production, which is also attractive to investors.”

Ong says the company has purposefully positioned itself as a “critical metals company” as opposed to a regular exploration company since it was founded in 2009.

Siburan plans to drill around eight holes in the flanks of Kirwan Hill, where historic work has identified significant tungsten and gold mineralisation.

“We have always looked at the concept of doing something different to other entities around the world, and were on the lookout for a niche commodity that would give us the edge, when we found out about tungsten.”

Tungsten was ranked second on the British Geological Survey’s Risk List 2012 that listed chemical elements or element groups with a critical supply risk.

“We are also chasing antimony and tantalum both of which were rated relatively high on that list.

“It can be very profitable if you can find these sorts of critical metals.”

Siburan has recently picked up two other projects in New Zealand – the Endeavour gold project around 20km from Picton; and the Bullendale gold project 20 km from Arrowtown that are in the early stages of exploration.

Although it is a widely used product, only around 100,000 tonnes of tungsten are produced globally each year. Even some of the larger mines only produce around 4000 tonnes.”

It has additional projects in Australia and Papua New Guinea.

However Ong says the company’s current focus is very much on the Kirwan project.

“The money has been committed and once it’s

in we can push the green light on the next stage of drilling.

“As far as mining goes, hopefully within the next three to five years we should have the project well-advanced.”

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Industry » NZ Drillers Federation

Benefits from registration scheme Karen Phelps A proposed registration scheme for New Zealand Drillers Federation members appears to have a high level of support, says NZDF executive officer Kevin Wafer.

“Increasingly our members’ clients are asking for information on drilling company staff as part of their own quality assurance processes.

“The proposed registration scheme would bring a coordinated consistent approach recognising the mix of skills, experience and training within the industry.

“The scheme would also help our members to secure jobs by showing the skills they hold inhouse in a professional and recognisable manner.

“For individuals it would be an acknowledgement of the training and skills they have worked so hard to attain. We also hope that a registration scheme would encourage our members to continue to seek higher levels of training.”

Wafer says that the Federation is currently seeking the opinion of as many drilling companies as possible before proceeding with the scheme. ““The Federation has sent information out to members and we are awaiting feedback.”

The New Zealand Drillers Federation Incorporation was started in 1974 when a group of 35 North Island contractors voted to form the association.

The Federation soon went national and the first AGM was held in 1975. A great number of achievements can be attributed to the Federation.

One of the early achievements of the Federation in 1975 was to approach the Catchment Boards and Regional Water Boards as well as the Standards Association of New Zealand to bring about a more uniform modelling of the underground water by-laws.

Wafer says that the mission of the Federation remains the advancement and application of fundamental and practical knowledge pertaining to drilling.

Today membership stands at around 100 drilling and supplier companies from throughout New Zealand.

Training is a big focus for the organisation in order to continually increase the levels of professionalism.

The Federation has been heavily involved in the development of training through Industry Training Organisations.

As an incentive to encourage the development of skills in the industry the Federation provides scholarships to top drilling students at Tai Poutini Polytech, one of the main training institutes for the drilling industry.

The Federation also has an emphasis on fostering networking opportunities and communication both within the industry and with relevant government bodies promoting public understanding and awareness of drilling issues.

The Drillers Federation has been heavily involved in the development of training, through Industry Training organisations.

Federation members are kept up to date the latest information, news and technology through the Federation newsletter and annual AGM. One of the latest issues which the Federation is currently considering with relevant official bodies concerns standards for safety guarding on drilling rigs. “The rules at present are very generic. We are investigating the need for a specific standard for drilling rigs to make it easier for our members ensure compliance and the safety of their employees. We are currently seeking feedback from our members on this issue.”

A recent initiative by the Federation for the benefit of members is a discount scheme, which gives members access to preferential supply contracts and discounts through business-to-business buying group GSB. “Through pre-negotiated contracts members have access to business discounts from over 100 of New Zealand’s best suppliers.

“Feedback from our member companies who are using the scheme already has been positive.”

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24 Mining NZ » Spring 2013

Rocktec

Rocktec screens deliver on quality Kelly Deeks As one of few New Zealand manufacturers of inclined screens and scalping screens, Rocktec can offer its customers all the engineering support, spare parts, and services that aren’t as readily available with imported screens.

Rocktec technical design and sales manager Jason Tapper says at a recent conference it became apparent that many people in the industry weren’t aware screens were designed and manufactured in New Zealand.

“We can be competitive with imported screens, by offering a quality product with quality materials and a quality finish, and of course we can offer that after-sales support,” says Tapper.

“Throughout the history of Rocktec, we have manufactured well over 150 screens, all to the customers’ requirements, from small single decks through to the top-end large multi-deck screens.”

Tapper says Rocktec has worked in with other companies’ replacement programmes, providing new screens for plants requiring upgrading or for older pieces of equipment that have been second hand, imported from overseas, or even home built.

The design and manufacture of screens and all Rocktec products take place at the company’s manufacturing plant in Matamata, Waikato.

“Because we design and manufacture from our own engineering workshop, new screens can of be designed to fit into an existing gap or the gap of the screen that is being replaced, often without any changes to surrounding equipment and structures.”

Along with design and manufacturing Rocktec has a site service team readily available for the mechanical installation and servicing of new and used screens.

Rocktec’s services include process engineering, to identify which products are required to deliver the performance its clients need.

Rocktec has more than 20 years of experience in the design and manufacture of screening solutions.

Rocktec has more than 20 years of experience in the design and manufacture of screening solutions.

The company offers a series of three model types of inclined screen: medium, heavy, and extra heavy duties. Each model is available in a number of different size configurations, from 6’x 3’ single deck medium duty through to a 20’x 8’ double deck extra heavy duty. Screens outside this range are able to be custom-designed and built on request.

Rocktec manufactures a wide range of scalping screens, from a 6’x 3’ heavy duty to a 16’ x 6’ double deck extra heavy duty. These screens are designed with bolt-on scalping bars allowing for simple replacement and easy maintenance. All Rocktec scalping screens feature full armour plating on infeed, outfeed, and side walls.

All Rocktec screens come complete with sub-frames, drive assemblies and motor mounts.

This ensures ease of installation and accurate

alignment of the drive system. Infeed plates are also a standard feature, and this reduces wear on screen media at the feed end and promotes product distribution.

In January, Rocktec became part of one of New Zealand’s largest mechanical project engineering companies, The Southern Cross Engineering Group Limited (SCE). The merger brings together two high performing companies, with established brands in their own areas of expertise.

Spring 2013 » Mining NZ 25

Quarrying » Blackhead Quarries

Upgrade assures plant’s longevity Kelly Deeks Dunedin’s Blackhead Quarry has undergone a major upgrade, improving health and safety and securing about 35 years’ worth of future production at its Green Island site.

Blackhead Quarry has been in production since 1947, producing a wide variety of aggregate from basecourse to high quality sealing chips and concrete aggregate.

Fulton Hogan and Palmer and Son took over Blackhead Quarry in 1986, upgrading the existing plant at that stage.

The original plant used gravity as much as possible for the crushing and screening process.

Located so close to the ocean, one of the main drivers behind the $3 million upgrade was rust.

Blackhead Quarry manager Gavin Hartley says over 25 years corrosion had taken its toll on the plant’s steel work.

Many conveyor frames and walkways have been replaced over the past five years, leading to downtime and expensive repairs and maintenance.

The upgrade was also necessary to relocate the primary jaw crusher, which was at the top of the hill and over time the distance travelled by the single rock truck was increasing.

“In 2009 we investigated what to do, and we came up with moving the entire plant,” he says.

“We visited sites throughout New Zealand to ensure the new design would be state-of-the-art and would fully meet our needs at Green Island.”

Improvements were planned for the plant’s layout, ease of maintenance, flexibility for the future, reducing power demands from three transformers to one, and reducing disruption to production and sales while the upgrade was taking place.

The upgrade was completed by the end of 2011.

Most of the crushers and screens from the old plant have been reused in the new one.

Efficiency has been improved and power charges have been halved by reducing the length of conveyors by more than half, and going from 23 conveyors to 13.

Blackhead Quarry has undergone a major transformation to improve production efficiency.

This has also helped to reduce the amount of steel used in the upgraded plant, as even in its new location, rust is still a primary concern.

Precast concrete was used for the bins, and the steel that was used has been painted with an Altex System Carboguard 504 as a primer, and two Carbomastic 615 coats.

Hartley says health and safety was also a huge

driver behind the upgrade. The new plant has a reduced number of cat walks, which are a hazard in themselves.

Blackhead Quarry has invested in new SEWEurodrive direct drive reduction boxes with SNL bearings, eliminating the need for quarry staff to go out and grease bearings and removing a hazard.

Hartley says the biggest improvement is the

new Rockwell PLC system running the plant.

“Before we had 50 dials and switches to turn to start the plant, and now we just push one button,” he says. “A crusher is a crusher and a screen is a screen, but with this system, we’re not the biggest quarry in New Zealand, but we now have one of the most high tech plants.”

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Quarrying » Blackhead Quarries

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Quarrying » Blackhead Quarries

Environmental efforts bring rewards Kelly Deeks A focus on environmental management for Dunedin’s Logan Point Quarry has resulted in its recent consent renewal receiving only five submissions, all of which were to do with the surrounding trees rather than the quarry work itself.

Logan Point Quarry manager Tony Hunter says the company is pretty proud of that.

“We put a lot of effort into environmental management, with real time dust, water, and noise monitoring,” he says.

“The key thing about Logan Point Quarry is that we’re right in the middle of town. That’s the advantage we’ve got in the market, because transport is the big issue in quarrying.

“But it also means there is a certain environmental obligation. We’re pretty close to our neighbours, and we make sure our impact on them is that they don’t know we’re here.”

Located just 2km from the centre of Dunedin, environmental considerations are very important, and the quarry has environment systems maintained to NZS 14001.

A regime of sampling and testing is performed on water discharges, dust deposited at the boundary, and vibration from blasting.

With the current quarrying operation 60 metres below sea level, water has to be pumped out.

Dust suppression is a priority with water sprays throughout the plant and use of water on trucks on all quarry roads.

Modern blasting techniques minimise noise and vibration outside the quarry boundary.

This philosophy of not disturbing the neighbours was behind a recent replacement of Logan Point Quarry’s crusher plant.

With the Forsyth Barr Stadium just across the road and less than 100m away from Logan Point Quarry’s old fixed crusher plant, the University of Otago and a variety of industrial businesses in the local area, the new plant is mobile, taking it further away from the neighbours and crushing rock at the face of the quarry.

The old plant first started being built in 1956, and was added to over the years. The last major upgrade occurred in 1996, when the plant was fitted with a full set of new crushers and screens.

The new plant, supplied by Matamata industrial machinery importer Mimico, includes a Nordberg jaw crusher LT106, and a Metso Lokotrack LT200HPS mobile cone crusher.

The mobile cone plant can be equipped with either one or two-deck detachable screens.

The new crusher plant is mobile, allowing it to be taken further away from the neighbours and to crush rock at the face of the quarry.

The two-deck screen enables the production of two accurately calibrated end products simultaneously.

Its Caterpillar C13 diesel engine with a hydraulic drive meets the latest emission standards and creates 310 kW (416 hp) of power at 2,100 rpm. The plant has been complemented by a new W8470 Komatsu front end loader, and a Caterpillar 336D digger.

Hunter says due to the changing nature of the rock at Logan Point Quarry, the new, smaller plant will be used to make about a dozen different products, where the old plant was producing about 30.

“We no longer have those high grade aggregates so we’re now producing mainly road base and fill products,” he says.

“The rock was formed 13 million years ago, so we don’t have a choice.”

The other high grade products will now be produced by a sister quarry at Blackhead.

We’re pretty close to our neighbours, and we make

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Coal » Birchfield Coal Mines

Giles Creek keeps firing for Birchfield Kelly Deeks With a long family history of West Coast coal mining, Birchfield Coal Mines is now producing one of the energy market’s cleanest burning coals from its Rotokohu coal measures in the Giles Creek basin, near Reefton.

Birchfield Coal Mines was originally established by husband-and-wife team Max and Betty Birchfield in the 1970s.

The Birchfields had previously run a logging business which then expanded into earthmoving in the 1950s. The couple started coal mining at Spring Creek, and stayed until 1984 when they began looking for a new site.

The Birchfield earthmoving business had machines working in logging for the New Zealand Forestry Service at Giles Creek in Reefton.

Birchfield literally had a bit of a dig around at the logging site, found some coal, obtained the license and started mining coal at Giles Creek in 1984.

The company, including the earthmoving business which is still in operation, is now run by five directors, Max and Betty’s children.

Birchfield Coal Mines manager Gary Birchfield says the times have certainly changed in the nearly 30 years the family has been mining at Giles Creek.

“We used to produce about 14,000 tons of coal a year, and now it’s more like 150,000 tons a year,” he says. “Market changes have also seen our busy season move from winter to summer.”

He says with coal mined only on demand, the increase in production is due to increasing demand from New Zealand’s expanding dairy industry.

Birchfield Coal Mines produces around 150,000 tonnes of coal annually from its mine in the Giles Creek basin, near Reefton.

Dairy factories all around New Zealand are using coal to boil the water out of milk and turn it into milk powder.

Gary Birchfield says that the rising dairy industry demand seems to have far outstripped the decline from New Zealand’s struggling manufacturing industry.

“When New Zealand manufacturing businesses were booming, Birchfield Coal Mines highest demand for coal was in the winter months, when our customers included hospitals and offices using coal to heat their buildings, and factories such as Firestone Tyres, which have since closed down.”

He says other changes in the industry include an evolution of technology ensuring cleaner utilisation of coal.

“The technology that’s involved with the burning of coal today is like a modern motor car engine, totally unrecognisable from the engine in the Model T Ford.

“The technology in modern boilers eliminates the poor combustion of the past. It makes sure that all the particulates and gases are combusted, and boilers’ exhausts are filtered through bag houses before being released.”

Birchfield Coal maintains these efficiencies with the services of an in-house combustion engineer who works directly with clients to ensure their coal is burnt efficiently and effectively, and provides maximum energy output.

Demand from New Zealand ‘s dairy industry peaks in summer, leaving winters quieter and a

perfect time for Birchfield Coal Mines to carry out its restoration programme, which has been developed in conjunction with Land Care New Zealand and has set the benchmark for the West Coast mining industry.

“Once we’ve mined the land, it is put back to what it was, which is beech forest,” Birchfield says.

“Because of our West Coast rainforest climate, our land regenerates quickly.

“We use a similar technique to mowing your lawn. On the next area to be mined, we cut everything down that’s over 400mm round.

“This kickstarts the forest regeneration and in 18 months to three years we pick the cut over area up and move it back to the area to be restored. It’s like a moving forest.”

Spring 2013 » Mining NZ 29

Industry News »

New Bell E-Series trucks now in NZ Building on the success of the Bell D-Series Articulated Dump Trucks (ADT’s) CablePrice is soon to release two new Bell E-series ADT’s, the B25E and B30E with the first unit due in New Zealand late this month. The D-series Bell ADT’s have been around for a number of years and over that time they have more than proved themselves in some very harsh conditions says Paul Laird mining product manager for CablePrice.

“Like all Bell ATD’s the new E-series is seen as a perfect fit for New Zealand’s contracting, earthworks and quarry industries with it’s central oscillation joint, high suspension travel on all axles, and balanced weight distribution offering greater agility when navigating across varied terrain and in harsh conditions.”

“From the outside the most obvious visual difference from the D-series is the modern styling and cab ergonomics offering operators enhanced visibility thanks to a new mirror package and the positioning of lights situated higher in the truck body.

“Inside the E-series sound-suppressed cab, operators will experience some of the latest offerings in automotive technology like the integrated 10” full colour screen and an automotive style mouse to control the interface — the first ADT to offer this technology.”

Baird says that advanced diagnostic monitor and a sealed-switch module for convenient, fingertip operation of multiple functions are all optimised to improve operator performance.

Less obvious but equally important is the best-in-class dual engine braking coupled with an Allison automated transmission retardation contributing to greater retarding power and reduced brake wear - retarder aggressiveness can be adjusted to ensure controlled descent in all conditions.

Impressive: the modern styling and cab ergonomics of the new Bell E-series ADT looks great and offers operators enhanced visibility.

Incorporating advanced hauling capabilities and customer-inspired features, the E-Series also delivers groundbreaking innovations to further develop Bell Equipment’s status as a leader in safety.

For improved safety and productivity, the E-Series has an automatic Inter-axle Differential Lock giving the vehicle full automatic traction control.

The park brake automatically applies when neutral is selected on hill starts. It is only released once a pre-programmable engine torque has been reached to ensure a controlled pull-away with no rollback, even on the steepest of inclines.

The slope is calculated by the exclusive onboard inclinometer—another Bell ADT first.

Independent features such as keyless start,

hill start assist, bin tip prevention, auto park application, standard turbo spin protection and on-Board weighing remain standard in the E-Series.

“With Bell Equipment’s continuous development philosophy the E-Series platform will take the company well into the future and further strengthen its pedigree as the ADT specialist.”

Jimmy - ex Heat Exchanger Services can now be found here!

We are able to Service all types and sizes of Heat Exchangers and specialise in heavy duty radiators, intercoolers and oil coolers for mining, earth moving, marine, industrial and transport applications.

Aluminium Oil Cooler, Intercooler and Radiator Specialists Industrial Radiators carry many makes of top quality radiators and intercoolers on the shelf. We can offer an exchange service to minimise “down-time” for those customers who are unable to wait for a repair to be done.

James’s knowledge ensures the correct identification of the unit you require.

I have been a customer with James ever since he became established in NZ. In 1998 there was no one who could manage the size of radiators we have in the mining industry nor was anyone able or willing to turn them around in the same time frame as it took to change an engine out. I have been impressed with his ‘can do’ attitude & his ability to work within the tightest schedules & delivery times... even to the point of direct delivery to site if transport is going to be a problem. I have not experienced any deficiency in work quality nor required any re-work where Industrial Radiators have been involved & will continue to utilise & support their services for this industry.

Cliff Webb, Group Maintenance Manager, OGL (NZ) Ltd

40 Hands Road, Middleton, Christchurch 8024 Ph: (03) 338 8016 | Fax: (03) 338 8017 | Email: jimmy@industrialradiators.co.nz

www.industrialradiators.co.nz 30 Mining NZ » Spring 2013

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