Mining nz winter 2013

Winter 2013

All go at Didipio OceanaGold has officially opened the new Didipio gold and copper mine in the Phillipines.

Contents »

Winter 2013

Contents

12

12 All go at Didipio OceanaGold has officially opened its giant gold and copper mine at Didipio in the Phillipines.

15 New chapter for Blackadder Main Divide Gold has been granted a permit to explore the potentially rich Blackadder alluvial gold prospect.

22 Another step for Bathurst Bathurst Resources is a step closer to production at its proposed Escarpment opencast coal mine on the Denniston Plateau.

15

34 Healing the Tui wound The remediation of what was once dubbed as ‘New Zealand’s most contaminated mine site’ is nearing completion.

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

All go at Didipio OceanaGold has officially opened the new Didipio gold and copper mine

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

22

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in the Phillipines.

Cover photo courtesy of OceanaGold

34

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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, Peter Owens, Hugh de Lacy

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NZOG remains coy on Pike reparation payout Hugh de Lacy It seems unlikely that New Zealand Oil and Gas (NZOG) will pay the $3.41 million reparation ordered by the Greymouth District Court against Pike River Coal Ltd (PRC) to the families of the 29 miners killed in the 2010 Pike River coalmine disaster, despite the judge’s suggestion that it should.

NZOG founded, and is a 29.4% shareholder in, PRC. NZOG spokesperson John Pagani told Mining NZ that his company’s directors were awaiting receipt of the Judge Jane Farish’s sentencing notes before making a final decision, but the company had already voluntarily paid out $25 million since the tragedy.

This comprised $12m advanced to PRC in the week after the explosion to pay the victims’ wages and to fund the recovery process, as well as $6m to fund the receivership conducted by John Fisk of PriceWaterhouseCoopers, and a further $7m to pay unsecured creditors.

“There was an $8m insurance payout, but NZOG stood aside from its rights to the extent of $7m so that the unsecured creditors could get 100% of what they were owed, up to $10,000, and 20% of what they were owed over that,” Pagani said.

“So the small guys got everything they were owed.

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

NZOG 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 $156,000 in insurance money. Since then there have been repeated calls for NZOG or the Government to stump up the reparation funds.

“We’re only a 29.4% shareholder and [Judge Farish] said we should pay it,” Pagani said.

“We’ve only heard that much second-hand

through the media and we’re waiting for the sentencing notes which have yet to be issued.

“It’s very difficult to see how we can do it because we’ve got legal responsibilities to our shareholders, and there’s not a judge’s order for it.

“On the other hand we want to do the right thing so we’re trying to follow the logic of it,” Pagani said.

Though the DoL was heavily criticised by the Commission of Inquiry into the disaster for the inadequacy of its mines inspectorate, and it was a National Government that passed the HSE that allowed the inspectorate to be run down, 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.

The families have engaged counsel to assess the chances of gaining the reparation through the courts, but admit there is no obvious means of legal redress.

It’s very difficult to see how we can do it because we’ve got legal responsibilities to our shareholders, and there’s not a judge’s order for it.”

Families optimistic on re-entry plan Jo Bailey

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There hasn’t been a lot of good news for the families of the 29 men lost in the Pike River mine disaster.

However spokesman Bernie Monk says by the end of August, the group, together with mine owner Solid Energy, should have submitted a plan to the government to re-enter the mine.

“It’s a huge step forward. We’ve been meeting with representatives from Solid Energy and the government every two weeks for quite some time to put things into place. It’s been a long journey and a hell of a lot of work has gone into it. But now we have the dialogue going with Solid Energy things are moving pretty quick.”

Monk says the government has always been supportive of the mine being re-entered, as long as there was a credible plan in place.

“Once we have presented the plan, it will have to be put through all the hoops and be ticked off by the right people in government. We are confident we have all the appropriate health and safety and risk assessments in place.”

He says getting into the mine will “answer a lot of questions” for the victims’ families.

“It will prove just how much damage is in the mine and hopefully give us some clues as to what happened.”

The Pike River families were “bitterly disappointed” by the court decision not to lay any

Bernie Monk criminal charges over the tragedy with a police statement saying there was insufficient evidence to support manslaughter charges. However the re-entry of the mine could still lead to this outcome, Monk believes.

“The decision was a real blow to the families who have always wanted accountability. However the door has never been fully closed by the Police. It will depend on what evidence is found when we get back into the mine.”

Judge Jane Farish awarded $3.41 million in reparation to the families of the Pike River victims and survivors at the Greymouth District Court.

But with the company in receivership, discussions around whether shareholders, such as Pike’s biggest secured shareholder NZ Oil and Gas should pay the reparations, continue.

“The families are incredibly grateful to the generosity of New Zealanders whose donations helped them get through the initial stages following the disaster, but for some people that hardly touched the surface. We have families who have lost their providers, and have big mortgages to service; and the families of contractors to the mine who didn’t receive the money Pike River Coal owed their businesses. Some even have machinery stuck in the mine they still owe money on.

‘The families aren’t being greedy, they just want the same compensation others in this sort of situation would receive to help them move on.”

Monk says the families are exploring “a lot of avenues” but believes if all parties got together around a table and discussed the reparation issue, something could be worked out.

On August 5 the families also presented their submissions to the government’s Transport and Industrial Relations Select Committee around health and safety.

“It was a good hearing and we were reassured to hear the committee is determined to make a number of changes to health and safety regulations because of what happened at Pike River.”

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Coromandel plans raising concerns Karen Phelps New Zealand company Seagroup Holdings has been granted a prospecting permit to search McGregor Bay at Coromandel for precious minerals raising community concerns over the potential for toxic heavy metals to be released into the environment.

The area in question is Section 4 land and under Section 61 of the Crown Minerals Act access is only permitted for minimal impact activities but not mining.

Seagroup Holdings is looking at how it can work with local council in order to remove the sediment.

However the move has upset some locals.

“The key issue is that dredging those minerals will do precisely the opposite of cleaning up – it will contaminate,” says marine biologist Michael Donoghue who has previously worked as a marine policy adviser with the Department of Conservation for 23 years and today runs a private chartered vessel business in the Coromandel.

“The metals are locked away and biologically inert. In my opinion it’s better to leave them where they are.”

Renee Annan, coordinator of Coromandel Watchdog, a group which aims to protect the Coromandel from mining, has questions regarding Seagroup Holdings motivation to remediate the site considering the limited community consultation.

“If they really want to clean up the harbour this is the most ridiculous way to go about it. The way they’ve behaved why would the community trust them?

“Coromandel Watchdog has been supporting a more community based process of consultation where we look at if the site is contaminated and if so what we can do about it. Not an approach that seems to be commercially based - how can we get the gold out and make it look like we’re doing a favour to the community.”

The Thames-Coromandel District Council has stated that it is supportive of an investigation into the removal of the historic mine tailings discarded into the Coromandel Harbour during the gold-rush of the late 1800’s.

“In reality, much of the harbour is actually a

The anti-mining groups have to realise that these minerals aren’t in their natural state; they don’t belong in the harbour.” tailings dumpsite, which over the years has trapped silt from the rivers which has turned a beautiful deep-water harbour into mud-flats” says Mayor Glenn Leach.

“The anti-mining groups have to realise that these minerals aren’t in their natural state; they don’t belong in the harbour and the community and the environment could benefit greatly from the remediation. If the industry that created the mess in the first place can clean it up once and for all, then I think it’s worth investigating and for the business case to be ultimately tested by the very high environmental standards set out in the Resource Management Act.” Annan says Coromandel Watchdog will continue to support the local community who wish to oppose the mining and raise awareness in the community of potential impacts. It also plans to work with council and appropriate other local bodies to determine the best future for the Coromandel Peninsula.

“If it was to be ruined the impacts would be devastating for the local community. Our economy, environment, tourism and community is based on the marine environment. If Seagroup Holdings continue to proceed with their proposal they will come against resistance from the community.”

Seagroup Holdings director Marcus Jacobson declined to comment when contacted.

Sea Group Holdings was formed in November 2010

by Jacobson and NZ Oil & Gas chief executive Andrew Knight.

The permit granted to Seagroup Holdings allows the company to explore 3.92sqkm of harbour for the next two years and take 80 core samples from the seabed.

JORC improvements sought Jo Bailey Kiwi companies have been told they need to improve the way they report their exploration results, mineral resources and ore reserves, says John Taylor, member of AusIMM and the Joint Ore Reserve Committee (JORC), who organised the recent JORC 2012 Roadshow in New Zealand.

“There is definitely some reporting in the public forum here that companies wouldn’t get away with in Australia, where the ASX strictly regulates who can sign off and publish JORC compliance resource and reserve statements,” says Taylor.

He says there is still public reporting by companies in New Zealand that force people to “read between the lines”.

“The JORC Code has quite a defined set of criteria about how their statements should be presented.

“Companies must release sufficient information to allow the public to make a considered and valued judgement on a company’s worth, and whether or not they should invest in it.”

The Australian-based JORC Committee chairman Peter Stoker came across personally to run the JORC Roadshow, held in Dunedin, Wellington and Nelson in the first week of August.

A similar roadshow was recently taken to all the Australian State Capitals to discuss the 2012 Edition of the Code, its first revision since 2004.

“We were very lucky to get Peter, who highlighted the requirements of the updated Code

and the implications if the Code isn’t followed, or if mineral industry personnel in this country claim false compliance, either inadvertently or deliberately,” says Taylor.

The JORC Code sets the legal guidelines and minimum standards for the way in which exploration results, mineral resources and ore reserves can be reported in any public forum including annual reports, press releases, website postings and public presentations.

It is incorporated in the Listing Rules of the Australian and New Zealand Stock Exchanges, making compliance mandatory for listed public companies on both sides of the Tasman.

In Australia the ASX is the official regulator of the JORC Code, dishing out penalties from fines to imprisonment to those not complying with the regulations.

“A complaint can also be lodged with AusIMM (one of three parent bodies of the JORC Committee); and if they are AusIMM members, could also result in a warning from the ethics committee, or their membership being relinquished.”

It is still unclear whether NZX or New Zealand Petroleum & Minerals will become the official regulator of the Code here, but Taylor is hopeful the JORC Roadshow will lead to greater clarity around this issue.

“It is vital that JORC Code compliance and regulation in New Zealand reaches the same level as Australia. I’m hopeful the JORC Roadshow is a positive step in this direction.”

The gold price has collapsed dramatically this year from its historic highs.

Gold’s gyrations continue Hugh de Lacy The wild gyrations of the global gold price over the past few months are all about whether or not the United States economy is genuinely in recovery mode or, at best, marking time.

This seems evident from the correlation between the price and the activities of the US Federal Reserve Bank – or, to put it another way, the impact of those activities on the value of the American dollar.

If the greenback rises, gold falls, and vice versa.

Critical to both is the timing of the Fed’s easing of its $US65 billion a month bond buying/money printing programme, which bank governor Ben Bernanke has suggested will start next month.

It was Bernanke’s flagging of an easing at an as-yet-unspecified time that sent gold prices into freefall in April this year, ending a 12-year bull market.

The price, which peaked in September 2011 at $US1921/oz, plunged 9% in a single day in April this year, and continued fallingt until the end of June.

By then gold had lost 35% of its peak value – 23% of it in the second quarter of this year, making it the biggest quarterly fall since 1920 – before finally bottoming out at $US1180.50

on June 28. At that point the market realised it had oversold, and by the end of July the price had bounced back to around $US1330/oz.

The critical factor in the price gyrations is the timing of the reduction in the bank’s quantitative easing, and Bernanke is necessarily coy about that.

His own rationale on the gold price slump is that investors have realised there no longer a great need for the “disaster insurance” – his words – that has become the role of gold in the global economy.

“People are less concerned about extreme outcomes, particularly negative outcomes, and therefore they feel less need for whatever protection gold affords,” Bernanke said.

The corollary of this is that the mediumterm outlook for the precious metal is a softening in price, assuming that the worst effects of the 2007-2008 Global Financial Crisis are behind us, something that seems hard to dispute.

New Zealand’s two biggest gold producers, OceanaGold and Newmont-Waihi, seem to concur with this view, given their announced scaling back of expansion plans, although neither will speculate on where the price is heading.

Gold may recover from its April-June oversell, but short of the United States and the world sliding back towards recession, the golden run looks to be over.

Winter 2013 » Mining NZ 7

News » AusIMM Conference

Conference programme guaranteed to please Jo Bailey The New Zealand Branch of AusIMM has put together another packed programme for delegates attending its annual conference this month, says John Taylor, chairman of the organising committee.

“We have presenters covering a wide range of topics related to the industry both within and outside New Zealand. We have also engaged some highly-regarded international professionals to deliver some of this year’s short courses.”

The 2013 AusIMM New Zealand branch conference is in Nelson from August 25-28.

All aspects of exploration, mining and New Zealand’s minerals resources will be covered at the conference, which will also celebrate the contribution the industry makes to the future of the community through science, engineering and economic development.

Taylor says the organising committee has come up with an interesting mix of field trips and short courses for the opening weekend of the conference, including a full-day geological trip up Dun Mountain for those with a good level of fitness and agility.

Participants will travel to Coppermine Saddle either via helicopter or mountain bike then follow a rough walking track to the summit of Dun Mountain.

The descent either on foot or mountainbike, takes participants on a journey across the PermoTriassic ocean crust section of the mountain, and past relics of early copper and chromite mining, providing a fascinating insight into early Nelson industrial history.

A two day post-conference field trip to the West Coast gold and coal mines is planned for Thursday

29 and Friday 30 August, and will include visits to the Globe open pit gold mine; Echo and Island Block opencast coal mines near Reefton; and the Stockton opencast coal mine north of Westport.

“Participants will then have the option of visiting the Denniston Mine Experience, a worldclass tourist and visitor attraction developed at the historic Banbury coal mine on the Denniston Plateau,” says Taylor.

During the conference there will be a “major session” discussing the outcomes of the Pike River disaster; and another opportunity for the mining community to engage with conservation groups and the community in an open forum.

“We have extended this year’s session to allow greater engagement between the audience and conservation and community groups so that both sides of the fence have the opportunity to share their views.”

Delegates will hear from the CEOs of most of the major coal and gold mining companies in New Zealand as part of the keynote sessions, and can choose from a large number of industry-specific breakout sessions.

Several student presentations have been included in the programme with a prize awarded for the best one. A number of other scholarships and prizes will also be handed out including the Lloyd Jones award in recognition of extraordinary and sustained service to the branch.

The organisers have included several initiatives to help attract greater numbers of mining and geology students to the conference - such as transport help from all the major universities offering these courses; and free attendance to the welcoming session and conference dinner.

The Denniston Mine Experience, a world-class tourist attraction developed at the historic Banbury coal mine on the Denniston Plateau.

“Many students have no idea of their career path post-study. We believe this conference can provide them with a valuable insight into their future options,” says Taylor.

The scope of short course topics on offer this year has been broadened, with professional speakers including Peter Scott from leading mine closure experts O’Kane Consultants in Perth.

He is one of the presenters on a full day short course on Sunday 25 August discussing mine leachate problems, landform design and cover system solutions.

Dr Isobel Clark, one of the world’s leading geo-statisticians, will present a two-day postconference intermediate course in geo-statistics on Thursday 29 and Friday 30 August.

This seminar is not designed for specialist geo-statisticians, but rather geologists, mining engineers, surveyors, biologists, or other professionals wishing to use geo-statistics to enhance their practical applications or research.

Also presenting during these two days is Emeritus Professor Richard Sibson, from Otago University, who will discuss faults, fractures, fluid flow and mineralising scenarios: active and ancient.

Taylor says the organisers have also put a lot of time into organising a “really good” accompanying persons’ programme for delegate’s partners, which takes in many of the delights of the Nelson region including visits to local artists, wineries, cafes and a scenic cruise of the Abel Tasman coast.

The 2013 AusIMM New Zealand Branch Conference will also be attended by the Minister of Energy and Resources, Simon Bridges, and the Minister of Housing and Conservation, Nick Smith, who is also the Nelson Member of Parliament.

“We are very pleased at how programme has come together and the level of interest from presenters, sponsors, exhibitors and delegates,” says Taylor.

“It is once again shaping up to be the major minerals industry event of the year.”

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8 Mining NZ » Winter 2013

News » AusIMM Conference

‘Fascinating’ career for AusIMM chair Mining has given me the

Jo Bailey West Coast mining identity John Taylor is at a turning point in his long and varied international career.

After leaving his role as project investigations manager for Solid Energy in June, Taylor is currently working as an independent consulting geologist and mine engineer while considering a “number of full time and contract options”.

His roles as chairman of the organising committee for the AusIMM Conference and organiser of the recent JORC Roadshow add to an already busy life.

“I’ve also got a major renovation underway at my house in Reefton and am travelling overseas in August, so have given myself until the end of the month to make any decisions about my future.”

Taylor was born in Cornwall but did most of his schooling in Derbyshire – both regions with strong mining links.

“As far as I know I have no mining heritage but spent a lot of my school days tramping, climbing and exploring caves and old mines. I soon realised that mines had minerals which I found interesting to collect.”

At the end of his schooling, Taylor’s interest in mining and minerals led to a career in the industry.

“I wanted an active career so enrolled in the three-year mine engineering course at the Royal School of Mines, which was part of the Imperial College at the University of London. The school had its own copper mine in Cornwall where we did the underground surveying part of the course. It was the highlight of my studies.”

Stints with Cyprus Mines Corporation and Rio Tinto (in Spain, UK, Ireland, and Iran) followed.

“In Iran I was an evaluation engineer at a lead zinc mine 10,000 feet up a mountain. I was the only Englishman among 700 Iranians.”

opportunity to visit some fantastic places.”

John Taylor More projects with Rio Tinto in Spain and Zambia followed. It was around this time Taylor decided to return to University to do a PhD, however work kept getting in the way of his studies.

“An English company tempted me to work out of their London office and complete my studies at the same time but this theory didn’t work out.

“I ended up transferring to their Western Australian operation in the early 1970s instead.”

Taylor worked from Australia for around 20 years, either as an international consultant or with companies such as Pincock Allan and Holt (as its Australian manager); Exploration Computer Systems and Resource Service Group, with mining technology becoming a major focus of his work.

It was during his time with Resource Service Group that Taylor started coming regularly to New Zealand, to consult at Macraes Mining’s Globe Progress Mine at Reefton (now mined by OceanaGold).

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“For several years I came down two or three times a year. In the end Macraes Mining said it would be cheaper for them to buy me a computer and software so I could come and join them permanently.”

Taylor was project engineer at the Globe Progress mine from 1993 until 1997 when the project went into care and maintenance.

He went back to Perth with Macraes Mining then rejoined Resource Service Group. He had residence and work permits lined up for a stint in Santiago, Chile, however falling copper prices put paid to this contract. “I still had a home in Reefton, so decided to come back, even though I had no job at the time,” he says.

During the next three years he did contract work for Solid Energy as well as full time forestry and underground coal mining courses.

He eventually secured a permanent role with Solid Energy as an underground investigation manager. This role saw him spend nearly three years crawling through old coal mine workings using high-tech laser scanners to scan and model 3D voids in the ground.

When this practice became unacceptable in terms of risk, Taylor became sub surface investigations manager instead, using the same laser technology lowered down drill holes to scan underground from the surface instead.

This led to “very high tech surface geophysics” which allowed Taylor and his team to see what area of the old coal mines had totally collapsed and where tunnels were still intact and could be drilled.

At the time, Solid Energy was the biggest down-hole laser scanning company in the world, and Taylor’s expertise in these practices was highly recognised.

He was called to Pike River to scan the mine from the surface after the first explosion in November 2010 and was within a few metres of the main ventilation shaft with others when the second explosion happened.

“We could hear it coming. There was a fraction of a second when we realised what was happening.

Fortunately we were all safe afterwards. However the helicopters couldn’t fly in to rescue us because of the risk of another explosion, so we had to carry all our heavy equipment out through heavy vegetation and get out under our own steam.”

Although at the forefront of new technologies, Taylor also has a passion “at the other end of the scale”. “I’ve spent nearly 20 years going through the archives in New Zealand to find the location of all the old mining plans and reports. This archival research can help us better understand some of these old abandoned mines, telling us how much coal came out and how much might still be there.”

Taylor is part of the “very active” AusIMM discussion group in Nelson and is currently helping Ruby Bay identity Harry McQuillan organise a geological, heritage, cultural and archaeological trip to Iran for the group.

“Harry worked in Iran for many years as an oil geologist and university professor. We are both looking forward to going back to Iran.”

Taylor and his family live in Christchurch where his wife looks after her elderly mother, and their children aged 14 and 10 are schooled.

“The downside of the job is that I’m away from my family a lot but the travelling aspect of the job doesn’t worry me. Mining has given me the opportunity to visit some fantastic places. I still travel extensively to keep up with the latest and greatest technology around the world.”

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Winter 2013 » Mining NZ 9

News » Minerals West Coast Forum

Forum generates plenty of interest Jo Bailey The 2013 West Coast Minerals Forum held at Shantytown in July was an “amazing success”, says Peter O’Sullivan, manager of Minerals West Coast.

“We had record attendances of 222 attending the forum itself; around 160 at the environmental awards dinner; and an estimated 170 people turning up to the public session on the Wednesday evening which included a business networking event, trade exhibition and the AGM’s of Minerals West Coast and the West Coast Commercial Goldminers Association.”

The forum brought together engineers, investors, mine managers, DOC staff, resource management advisers and suppliers in an intensive one-and-a-half day programme.

Its theme was Innovation, which was carefully chosen to reflect the tight economic climate mining companies are currently trading in and to look at ways they can achieve greater production with fewer inputs, says O’Sullivan.

Chris Baker, CEO of Straterra which officially supported the forum for the first time this year the attendance of over 200 delegates from many different parts of the mining sector demonstrated the “interest and resilience” of the industry.

“The focus of Straterra’s support was to lever off past success and position the event with a more national flavour. I think the partnership was very successful and the MWC Forum is now a significant event on New Zealand’s mining industry calendar.”

O’Sullivan says one of the highlights of the public session was the AustMineNZ business speed networking event, which was based on a speed dating format. “We had two long tables with representatives of businesses and mining companies on either side. They were given three minutes each to speak to the person opposite, before shifting seats and starting again.”

He said the organisers were “a little cautious” about whether the session would work. However 30 minutes after it had officially ended, the tables were still full.

“We had a lot of positive feedback about it. In fact we designed the entire programme to ensure there was maximum opportunity for networking throughout the forum.”

Keynote speaker Allan Broome, chairman of AustMine, opened the forum and gave a “riveting

and very interesting presentation on current innovations and developments in the wider mineral industry in both Australia and New Zealand, says O’Sullivan.

Other highlights included David Hand from Newport Consulting who presented a number of key points for companies looking to gain greater efficiencies at mine sites; Dr Jennifer Bowers a remote and rural mental health specialist who shared her insights on how a proactive approach to mental health in the mining industry can positively impact the bottom line for mining companies; and the Minister of Energy and Resources, Simon Bridges who also made a “very interesting” presentation.

Tony Forster, Chief Mines Inspector explained how the government’s High Hazards Unit was taking a three-pronged approach to its relationships with stakeholders to educate, engage and enforce compliance in respect to their health and safety obligations.

O’Sullivan says delegates were also interested to hear about the range of projects being undertaken by the Department of Conservation on the West Coast using compensation money collected from mining companies.

Chris Baker of Straterra chaired the “lively” Women in Mining panel discussion on the first day of the forum, and says it was “great to see the significant impact women are making to mining being acknowledged and recognised”.

Glenys Perkins, director of West Coast based Titan Resources told the panel that her 30 plus years in the mining industry had taught her that having women involved in mine sites and mine management had a positive effect on the companies in which they are involved.

“Women in the mining workplace bring balance and a different perspective which can be especially valuable in planning and communications.

“The mining sector tends to attract women who are independent, have a positive outlook on life and are looking for a challenge,” she said.

The trade exhibition also had “terrific support from a wide range of industries,” with several new innovations on display, says O’Sullivan.

“After wandering around the trade exhibitions and listening to the clear, concise messages from the forum presenters on innovations and their application, there was a great deal that delegates could take back to the mine site. Overall it was a very good conference.”

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Phil Rossiter, left, from Solid Energy, and Dr Paul Weber with their Environmental awards.

Teamwork the key to success There’s the old saying two wrongs don’t make a right. However an award-winning environmental project has shown that two significant problems can lead to a unique, mutually beneficial solution.

The project, which uses municipal biosolid waste to create high quality topsoil for rehabilitation of mining sites, won the inaugural Minerals West Coast Environmental Award.

Solid Energy’s sustainable development manager, Phil Rossiter, says the project is the result of five year’s collaboration between Solid Energy and Christchurch City Council.

“A lot of hard work went into establishing the process, including intensive trials on site and working closely with Christchurch City Council who have been great supporters of the new technology. We have both taken a long, steady, measured approach to make sure we have all the bases covered.”

Rossiter says the joint project has resulted in an “elegant solution” that solves two very different problems.

“The first is the challenge facing all municipal authorities, of how to get rid of biosolid waste without landfilling at a huge cost to the ratepayer; and the second is how we, as a mining company, can produce viable topsoil for rehabilitation and stabilisation of land where there is disturbed or nutrient deficient soils and risk of erosion.”

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Christchurch City Council which produces the “very refined” bio-solids – a waste by-product in dry pellet form.

“Christchurch City Council has worked hard to ensure the consistency of the bio-solid product, which is produced to a certified grade under a rigorous quality control programme,” says Rossiter.

The product is mixed into the surface soil cover and then revegetated.

The use of ‘hydroseeding’ – spraying of “fluidised slurry of annual grasses” is often used to provide near-instant plant cover and stabilise slopes from erosion. The nutrients provided by the bio-solids enable rapid establishment of plant cover, providing an excellent short term management strategy which bridges the gap to long term rehabilitation of the site, says Rossiter.

“This process stabilises slopes, prevents erosion, protects water ways from sediment and allows succession as native plantings start to colonise over the next couple of years.”

The technique is in use at Stockton mine.

Other finalists in the awards were Taylor Coal, which developed an additive to give a faster, cleaner burn from coal; a project using waste mussel shells from the seafood industry to neutralise the acidity in water discharging from a mine site; and a project aimed at restoring the post mine environment to support the long-term conservation of the Powelliphanta augusta land snail.

News »

OceanaGold outlook stays positive Nick Gormack OceanaGold says its “well-positioned” to weather the significant fall in the gold price, despite writing down the value of its gold assets by US$85.5 million in the wake of the pice drop.

The listed mining company – whose New Zealand operations include the Globe Progress Mine at Reefton and the Macraes Mine in Otrago – has been conducting a company-wide review of its operations to identify efficiencies and reduce costs.

The company announced in June that the final cutback at Reefton has been put on hold and the mine will transition into a “care and maintenance phase” mid-2015, unless there is “a material improvement” in the gold price.

OceanaGold has also deferred pre-stripping on the Frasers 6 cutback at Macraes.

When making the Globe Progress announcement in June, OceanaGold managing director and chief executive Mick Wilkes said the decline in the gold price “over the past two months” had “eroded much of the profitability at Reefton” where gold mining had recommenced in 2006.

“During this time we estimate that approximately NZ$45 million of direct and indirect benefits are derived from the Reefton mine annually for the West Coast region alone.

“While we are hopeful for an improved gold environment, we have taken the necessary steps to ensure a sustainable and profitable operation at Reefton over the next two years and we will continue to evaluate other opportunities across the goldfield including underground opportunities at the Globe Progress pit and historic Blackwater mine.”

The company intends to maintain its current access arrangement with the Department of Conservation through to 2019 as planned and will commence rehabilitation of areas not expected to be disturbed in the future.

OceanaGold reported operating profits (ebitda) of US$42.5m and a net loss of US$70.5m for the June quarter. The net loss reflected a pre-tax, non-cash impairment charge of $85.5m, which was mainly because of the significant decline in the gold price and resultant reduction in mining at Reefton, the company said.

In announcing the second-quarter result, Wilkes said the “company-wide review is ongoing to identify additional opportunities to improve cash flow from operations”.

“Like the rest of the gold mining industry, the company is currently faced with tougher economic realities that require a proactive approach to ensure a healthy business plan,” Wilkes said.

“We are committed to preserving shareholder value and we will continue to operate based on this premise.

“Operating expenditure over the next 18 months will be reduced by approximately $100 million and will include savings generated from deferring the final cutbacks at Reefton and Macraes, plus other operating and capital savings.

“To date, we have reduced our operating budgets by $100 million over the next 18 months and continue to look for additional opportunities to optimise our business. Didipio will continue to drive down our cash cost per ounce whilst increasing our production profile.

“With cash flows increasing over the next few years and with significant cost reductions at our New Zealand operations, the company is well positioned for the new economic environment in the gold industry.”

OceanaGold produced 68,353 ounces of gold in the June quarter and 5710 tonnes of copper.

Gold production was higher compared with the first quarter because of increased production from the Didipio Mine in the Philippines, and Reefton.

That brought in revenues of US$131.2 million for the three months. Total gold sales in the period

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OceanaGold has reviewed operations at its Globe Progress Mine at Reefton. were 70,706 ounces at a cash cost of US$682 an ounce, net of byproduct credits.

OceanaGold said it expects production in New Zealand to progressively increase over the remainder of the year with the fourth quarter being the strongest quarter in 2013.

OceanaGold declared commercial production at Didipio in the Phillipines effective April 1, 2013.

During the latest quarter, the Didipio produced 13,676 ounces of gold and 5,710 tonnes of copper and in the first half of the year the mine has produced 20,553 ounces of gold and 9,373 tonnes of copper.

Didipio is expected to produce 100,000 ounces of gold and 14,000 tonnes of copper per year on average over an estimated 16-year mine life.

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.

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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.”

Winter 2013 » Mining NZ 11

Gold » OceanaGold

All go at Didipio....

OceanaGold’s Didipio Mine is situated in the northern Luzon province in the Phillipines.

OceanaGold managing director and CEO Mick Wilkes says Didipio’s commencement was a proud moment for the company, which had built and developed the mine itself under the leadership of project director Martyn Creaney.

“Having someone with Martin’s calibre on the team helped us to attract more good people to the project. We also had the full support of the local communities and government, which was critical to its success.”

The Didipio Mine will add around 30 to 40 percent of annual gold production to OceanaGold’s balance sheet, says Wilkes.

Figures released at the end of July show Didipio has produced 20,553 ounces of gold and 9,373 tonnes of copper in the first half of the year.

Wilkes says production continues to ramp up and the company is confident of meeting a total of 2.5Mt through-put for 2013, rising to 3.0Mt by 2014 and 3.5Mt by 2015.

“We expect solid production of around 50,000 to 70,000 ounces of gold this year, with negative cash costs due to by-product credits from the copper produced at the mine.”

Jo Bailey

D

ressed in traditional costume alongside members of the Twali tribe to participate in an official blessing at OceanaGold’s Didipio gold and copper mine in the Philippines, was a unique experience for several Kiwi staff, says process manager, Mike McGrory.

“The process plant was blessed to ward off bad spirits,” says McGrory.

“It was quite an extended ritual with a traditional Baki Ceremony and dance, and certainly something different to be part of.”

The Didipio Mine was officially opened on May 15 at a ceremony attended by around 500 guests and dignitaries.

Around the same time, the company’s Board of Directors announced the declaration of commercial production at the mine from April 1, 2013, just over three months following production of its first copper/gold concentrate.

Commissioning of the mine commenced on schedule in the fourth quarter of 2012.

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They are definitely ahead of where you’d expect people from a small community with no industrial experience to be.”

This lower cost environment is good news for the company that has been reviewing its New Zealand operations at Macraes and Reefton in light of the lower gold price.

Mike McGrory leads a staff of 66 in the processing team at Didipio that includes another three ex-pats – all South Islanders.

He has been in the Philippines full time since early March 2012, and before that made six trips to the mine site from OceanaGold’s Dunedin office.

He says that one of the biggest, but most rewarding challenges has been the recruitment and training of the mine’s largely inexperienced local workforce.

“Almost half the workers had never worked in mining before.

• • • • •

“However they are all so keen and hard-working, and have picked things up well.

“They are definitely ahead of where you’d expect people from a small community with no industrial experience to be.”

The staff are provided with a variety of training opportunities, with several already being sent to New Zealand, Australia and Indonesia to attend conferences and training seminars.

Another challenge has been dealing with the regulatory regime in the Philippines, which McGrory says is one of the more complicated regimes he has encountered.

OceanaGold is the first foreign company to operate in the Philippines under the Financial or Technical Assistance Agreement.

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Gold » OceanaGold “It keeps us a lot busier than we’d like at times, however we work closely with the government and our local communities to ensure that we operate the mine in a safe and sustainable manner as per our strong operational history in New Zealand” The mine is an alcohol-free zone, but that doesn’t stop the staff having a “good time and a good laugh” when socialising, says McGrory.

“We have a lot of social nights and play a lot of basketball, with 10 or 11 teams involved in a competition on the camp site.”

When he is not working, McGrory often travels down to Manila where he makes the most of the “warm water and some top scuba diving”.

“It’s also easy to get to places like Thailand and Vietnam, where I recently took one of my daughters for a holiday.”

Process superintendent Ged O’Connor has a very different lifestyle to McGrory.

Since July last year, he has commuted between Didipio and Nelson, where he lives with wife Michelle and children Kelsey 15, and Alex 14. “My roster is four weeks on and two weeks off, which includes four days travelling time.

“I’m not home a lot and definitely miss the family. But when I’m there it is quality time.”

Once he leaves the comfort of home, O’Connor returns to a single room in an accommodation facility just five minutes from the mine site and close to Didipio.

“The town is probably similar to Reefton in terms of size, but the number of people there is significantly greater. It’s one of the first things that hit you about the Philippines.On the 10-hour journey by road from Manila there are people everywhere. It’s quite a contrast after leaving Wakefield where there’s hardly anyone around.”

O’Connor was a production superviser at OceanaGold’s Reefton mine before taking up the position at Didipio.

He is enjoying the opportunity to help progress local people into higher positions and decision-making roles. “We have to encourage all levels of employees to communicate their ideas and to recognise that as far as we’re concerned, any idea is a good one.”

Despite the long distance commute, O’Connor says he is enjoying the job.

“As long as the opportunity exists, I’m keen to carry on here.”

With OceanaGold holding a number of exploration tenements in the Philippines outside the Didipio mining permit there could be more opportunities for Kiwis in the region.

“Now that Didipio has reached commercial production we are also starting to examine opportunities outside the Philippines,” says Wilkes. “Within the next five years we can see OceanaGold operating three or four mines in different countries, completing our transition into a true multi-national gold producer.”

Training up locals all part of the plan Jo Bailey A business set up by OceanaGold is providing employment to more than 200 local people near its Didipio mine in the Philippines.

The Didipio Community Development Corporation (DiCorp), which is owned by long-term residents of Didipio, was established in 2011 to assist the local community to build the capacity to bid for various mine services contracts.

It is now providing a range of services to OceanaGold’s 590-person camp, including housekeeping, catering, access road maintenance, laundry, waste and recycling, employee transport, construction equipment hire services and Didipio concentrate loading and handling.

Camp superintendent Dave Clements, who oversees the DiCorp team, says they are doing an excellent job of keeping the residents happy and healthy.

“Every work camp operates along the same basic principles – if you provide the residents with good quality food, hot water and clean sheets, you are a long way towards making them happy.”

Clements started with OceanaGold at Didipio in March 2012 when the mine was under construction.

His first task was to get camp operations up and running, then start to phase in the handover of mine services from a local company to DiCorp.

The housekeeping and laundry division was established first, with Clements and his team of senior staff conducting several training sessions to show staff how to clean rooms and operate laundry machines, while ensuring all health and safety procedures were being adhered too.

Further training was conducted by Ecolab, the company that provides all the cleaning materials and chemicals to the camp.

Around four months ago DiCorp took over the catering services at the camp which was a bigger challenge, given the number of people being fed there every day, says Clements.

“It was important we had the key staff in place to train and oversee the local staff, and to ensure we had the right menus, food quality and quantities.”

DiCorp produces an average of 450 meals per service for the camp’s residents, as well as around 650 non-resident meals per day for local people working for OceanaGold contractors.

There are also themed nights once a month with different ethnic cuisines, and sit down lunches for guests, so the catering team is “kept very busy”, says Clements.

“We are very impressed with the standards they

Dicorp is providing work for local people in helping service the needs of the Didipio Mine. are achieving. DiCorp may be a local company but we’re teaching them international standards.”

In addition to onsite training with Clements and his team, the catering staff regularly attends seminars in food safety, health and hygiene, food practices, HACCP (Hazard Analysis Critical Control Point is the systematic preventative approach to food safety) and motivation training run by the Department of Trade and Industry, which is certified by the Philippines government.

“This training will be ongoing for several years. We are also sending key kitchen staff on other management, computer, health and hygiene courses to enhance their skills, which can then be passed down to their staff.”

DiCorp staff in other sectors also have regular training in works skills, health and safety and management, he says. “We are constantly guiding, coaching and training the staff so they could compete in the broader market if mining expands in the Philippines in the future.”

Clements is a Scotsman whose long career started with a seven year stint in the British Army where he served as a corporal in the catering corp.

Since then he has spent many years setting up and managing worker camp sites, mainly on oil and

gas projects in exotic locations such as Yemen, Iraq, Mongolia, Russia, Algeria and the Middle East.

“The Didipio Mine is the furthest I’ve been in Asia. It can be a challenging environment. However it’s a good challenge and it’s great to see the hard work with DiCorp paying off.”

The DiCorp initiative is part of OceanaGold’s commitment to be sustainable miners, with a community focus.

The company’s latest Sustainability Report highlights numerous ways it has earned its social license at Didipio, including the reforestation of more than 170ha of denuded land; a commitment to plant one million trees over five years under President Benigno S Aquino III’s National Greening Programme; using small scale mining activities to ensure clean local rivers; employing 98 percent Filipino workers during construction and continuing with the same staff ratio in operations.

Clements says the Filipino people are friendly and great workers. “I was taught at a young age working overseas that it doesn’t matter what country you are in, you are always a guest. You can’t dictate your way of doing things. You have to understand the local culture first and realise that local people will always take preference, not you.”

It can be a challenging environment. However it’s a good challenge and it’s great to see the hard work with DiCorp paying off.”

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Gold » Industry News

Drilling underway at Sams Creek Karen Phelps MOD Resources Ltd (ASX:MOD) has just commenced its stage three drilling program at Sams Creek.

The programme, which started on July 29, will include the deepest hole yet drilled at Sams Creek to test the gold mineralisation below the limit of previous drilling.

Significantly MOD has indicated that this drill hole may be extended even deeper to test the source of a large magnetic anomaly which an aeromagnetic survey has identified directly beneath the Main Zone gold resource.

Based on recent drilling at Sams Creek an interpretation indicates the 800-metre long Main Zone deposit consists of a 300m long central core which ranges in true width from about 35m-50m and plunges north-west towards the source of an interpreted magnetic anomaly.

The Main Zone remains untested below 400 metres.

The company says the aim of the stage three drilling programme is to test for extensions below and along strike from the Main Zone deposit.

The company has announced that the first priority is to test below the limit of drilling in the central core of the deposit with a 550m drill hole which may be extended to test a magnetic anomaly interpreted below the Main Zone.

The Stage 2 drilling programme revealed new and generally higher grade gold assays in the company’s quest for 1.5M oz at Sams Creek.

The results of the Stage 2 drilling programme included 31.1 metres @ 3.6g/t from hole SCDDH088; 19.6m @ 6g/t from hole SCDDH080; 16.2m @ 5.2g/t from hole SCDDH081; 63m

The stage three drilling programme will include the deepest hole yet drilled at Sams Creek to test the gold mineralisation below the limit of previous drilling. @2.4g/t from hole SCDDH083; 16m @ 3.4g/t from hole SCDDH082 and 13.9m at 3.3g/t from hole SCDDH079.

Most drill holes completed in the Stage 2 programme hit wide zones of moderate (2-3 g/t) and locally high (>4g/t) grade gold mineralisation,

supporting MOD’s view that drilling may have tested only part of what is potentially a large porphyry gold system.

Stage 2 drilling was designed to infill the current resource and upgrade about 550,000 oz gold into the indicated resource category.

MOD has also outlined positive progress with metallurgical testing of the ore at Sams Creek.

The company engaged Independent Metallurgical Operations to undertake a review of previous metallurgical test work results on Sams Creek sulphide mineralisation.

This preliminary review has concluded that the mineralisation is amenable to sulphide flotation processing and that approximately 95% of gold reports to a small volume of gold concentrate with overall recoveries of ~90%.

Further metallurgical test work is planned on drill core from Stage 3 drilling to confirm the flotation test work results.

The Sams Creek Gold Project is located 100km north of the Reefton gold field in the South Island. It is New Zealand’s largest undeveloped gold project with an existing JORC compliant Inferred Mineral Resource of 18.65Mt @ 1.71g/t gold (0.7g/t cutoff) containing approximately 1.024Moz gold.

MOD, which is listed on the Australian Securities Exchange (ASX), has spent NZ$9 million on drilling and exploration work at Sams Creek since striking a deal in October 2011 to earn up to 80% of the project from OceanaGold Corporation – the company’s third biggest shareholder by sole funding exploration.

MOD secured an initial 40% stake in Sams Creek from OceanaGold in September 2012 after successfully increasing the JORC-compliant Inferred Mineral Resource at the Main Zone gold deposit at Sams Creek from 770,000 ounces of gold to 1.024 million ounces with its stage one diamond drilling program.

The previous exploration work at Sams Creek was carried out by CRA Exploration (which discovered gold at Sams Creek in the 1980s) and OceanaGold.

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After three years of planning and gaining the necessary resource consents and other administrative matters, Waikaia Gold Limited has commenced its gold mining operation at Freshford near Waikaia in Northern Southland.

While Waikaia was a recognised area for gold mining in the late 19th and early 20th centuries, the current operation by Waikaia Gold Limited, a company owned by the Christchurch-based March Family is the first for many years to begin a mining operation.

Buzz March, a director of Waikaia Gold Limited, says that one of the problems his company faced in mining at Freshford was an accumulation of groundwater when the initial excavation was made.

To prevent this, the company imported a Bauer RG19T dedicated sheet pile machine machine from the United Kingdom.

This machine has been driving 14-metre lengths of sheet pile metal into the ground on the Freshford site around the area where the initial gold mining excavations are to be made.

March says this should solve the groundwater problem as there was so much of it in that area the company would have had great difficulty pumping it out of the pit.

He says the company is leaving about 1.5 metres of the sheet pile above the ground as a barrier against even the highest flood waters.

March says his company has estimated that after studying records of floodwater in Freshford in the past, there should be a freeboard of about 0.5 metres in even the highest flood To accomplish this novel barrier, Waikaia gold Limited has imported 2670 sheets of metal from Japan. It has also completed a complex of solid roading at the Freshford site to ensure satisfactory movement on-site.

Operator Andrew Brown, who came with the Bauer sheet pile machine from the UK, is spending about a month at the site teaching the local staff members to operate the machine efficiently and safely.

March says the Bauer machine is ideal for the operation as it produces 100 tonnes of downward pressure and the top 10 metres of the gravel at Freshford is highly permeable.

According to March, everything that is extracted from the pit will be stockpiled and the pit then refilled as the company’s gold mining operation moved up the Freshford Valley towards the Waikaia Township.

He says the actual processing plant will float in the pit and at the same time extract gold. This plant should take about two to three months to assemble before it is commissioned.

At present, Waikaia Gold Limited is planning to start extracting gold at Freshford at the beginning of October.

The mine has a projected life of four to nine years and the company believes, after considerable research, that it should be claiming between 15,000 to 20,000 ounces of gold in every year of its operation.

The Freshford area had been prospected in the 1990s by Eureka Mining and L&M Mining Limited but with the machinery available at that time, mining would not have been viable.

Waikaia Gold Limited has been using data accumulated by those two companies when considering whether the project was viable.

Following the Central Otago gold rushes of 1861-62, miners explored other areas of Otago and Southland, including the Waikaia Valley.

Gold was discovered by November 1861 at Switzers, on Winding Creek, close to the location of present day Waikaia. It was here that the valley’s first township was established, later replaced by Waikaia itself.

Gold » Industry News

The Blackadder prospect is sited in the hills of the Maruia Valley, northwest of Springs Junction.

New chapter looms for Blackadder Jo Bailey Private company Main Divide Gold Limited has been granted a permit for the Blackadder prospect, which could prove to be one of the richest undeveloped alluvial gold fields in New Zealand.

Main Divide Gold’s principal Chris Humphreys says when the prospect was discovered in the Maruia Valley in 1981 by brothers Afton and William Blackadder, it had “unusually high grades” of gold compared to existing alluvial mining operations.

“Their initial testing of 29 cubic metres of gravel returned 8 ounces of gold - a yield of over 8.6 grams per cubic metre,” sasy Humphreys.

“Other alluvial gold mines typically achieve grades of between 0.1 and 0.3 grams per cubic metre.”

The 153-hectare permit area was put into a Newly Available Acreage competitive tender process

by New Zealand Petroleum and Minerals after the

previous exploration permit over the goldfield, held

by Canterbury miner Bill Gardner, expired at the end of 2012.

Gardner had endured a long, unsuccessful battle with the Department of Conservation to access and mine the land, which is a few kilometres northwest of Springs Junction near the Lewis Pass.

Humphreys says there are several reasons why he believes Main Divide Gold won the recent competitive tender process for the Blackadder permit.

In 2010 Four Rivers Gold (a subsidiary of Main Divide Gold) successfully applied for a 222sqkm prospecting permit over the northern half of the Maruia Valley.

He says while this ground is “prospective in its own right” with several old alluvial mines and a hard rock gold discovery in the eastern part of the permit where Four Rivers has since entered into a confidential exploration joint venture; it was also valuable in winning the Blackadder permit.

Main Divide Gold is still in the “very early stages” of the exploration cycle within the permit.

.... the current environment the National government has created for mineral exploration makes it considerably easier to progress a project like Blackadder....”

“The prospecting permit neighbours the Blackadder permit on three sides, and gave Four Rivers Gold a strategic advantage in the Blackadder application process.

“Because they neighbour, we were able to promote the exploration of both permits in unison so that the extent of the Blackadder goldfield both within the exploration permit and any extensions into the prospecting permit could be established at the same time.”

“By the time the Blackadder permit was put out to competitive tender, Four Rivers Gold had also received permission from the Department of Conservation to undertake low impact exploration activities within the prospecting permit.

“This allowed us to undertake field activities within the prospecting permit which demonstrated we could successfully undertake the exploration activities required within the Blackadder permit area despite the historical access constraints.”

Humphreys says Main Divide Gold is still in the “very early stages” of the exploration cycle within the permit.

He is currently involved in setting up a new early-stage growth investment company, Punakaiki Fund with entrepreneur and consultant Lance Wiggs.

He says Punakaiki Fund intends to make an offering of shares to the public in August.

“After this process is complete I will be able to apply more time to progressing exploration in the Blackadder permit.”

Main Divide Gold now holds interests in five permits on the West Coast, covering a total of around 70,000 hectares across the Buller and Grey districts.

“I originally sought to create a portfolio of permits which would form the core assets of an

exploration company with the intention of raising external exploration finance.

“What eventuated was more interest in individual permits rather than the whole portfolio.”

He says this has led Main Divide Gold to change its strategy.

It has attracted joint venture partners into three of its permits and is already talking to several parties who have expressed an interest in the Blackadder permit.

“I would be keen to hear from other interested parties and are open to a wide range of potential arrangements.”

Humphreys says that the company is also looking to dispose of what it now considers to be a non-core prospecting permit situated in the Grey Valley.

He believes both central and local government will be supportive of the Blackadder project given its potential to create much-needed jobs on the West Coast.

“I think it’s fair to say that the current environment the National government has created for mineral exploration makes it considerably easier to progress a project like Blackadder compared to say ten years ago, when Bill Gardner held the permit.”

Humphreys says he is “very excited” by the prospect.

“While previous exploration work has been extremely localised within the permit area and no one knows how much gold there is, it certainly has a high potential.

“Some news reports from ten years ago estimate the permit contains 200,000 ounces of alluvial gold.

“At today’s prices, this has a potential value of around $300 million.”

Winter 2013 » Mining NZ 15

Gold » Newmont-Waihi Gold

Newmont appeals Correnso conditions It’s a good step forward

Karen Phelps Newmont Waihi Gold has appealed parts of the decision for land use consent for the Golden Link project saying that the project would be unfeasible if certain conditions remain unchanged.

“Some of the conditions as they stand will make it difficult for us to construct and operate the mine,” says Newmont Waihi Gold external affairs coordinator Kit Wilson.

The decision of the independent commissioners’ hearings panel considering Newmont Waihi Gold’s application under the Resource Management Act granted consent for the proposed Correnso underground mine but subject to a range of conditions.

It has not granted consent for the wider Golden Link Project Area that was originally sought by Newmont Waihi Gold.

Newmont Waihi Gold is appealing the area which has been granted and has also appealed some of the conditions relating to the construction and operation of the proposed Correnso mine.

Wilson says that it is not possible to comment in more detail at this stage as the process is still underway but says the granting of the consent for the Correnso underground mine is a step in the right direction.

“It’s a good step forward because it shows the panel accepted the majority of our experts’ evidence and understood we have the ability to construct and operate this mine in the community,”says Wilson.

“But it’s only one step in the process.

“Any proposal of this complexity will always have people disagreeing. It’s to be expected.

“We had anticipated that this application could be appealed to the Environment Court.”

Wilson says that it continues to be Newmont Waihi Gold’s job to get alongside members of the

16 Mining NZ » Winter 2013

because it shows the panel accepted the majority of our experts’ evidence and understood we have the ability to construct and operate this mine...”

Should the Correnso proposal proceed, underground mining would occur at considerable depth below some properties in Waihi East. community who have concerns and to work with them to address issues.

“The ore body is where the ore body is. We can’t change that. But what we can do is ensure we construct and operate this mine in the most socially and environmentally responsible manner possible while we still have a viable operation as a base.

“That means modifying our mining method in the higher parts of the mine, backfilling all voids and stopes and modifying our blast techniques.

“We believe that the longer term financial and social benefits of the project for the community far outweigh any perceived short term negatives.”

Newmont Waihi Gold is currently engaging in informal discussions and court assisted mediation with groups and individuals who are part of the appeal process as they work towards a mutually agreeable solution.

If agreement on all matters cannot be reached through this process an Environment Court hearing

will be scheduled for later in the year. The proposal named Golden Link, which could extend gold and silver mining operations to at least 2020, comprises two parts.

The Martha Exploration Project is a small underground exploration programme located within the existing Martha mining licence area and the pit rim. It involves the construction of an underground exploration decline within the north wall of the pit. There will be two portals. If it goes ahead the programme will require a variation to the existing Martha mining licence.

The other part of the proposal called Correnso is a potential underground mine in Waihi East which, if it proceeds, would replace the existing underground Favona and Trio mines.

This will require consents under the Resource Management Act to go ahead.

Should the Correnso proposal proceed, underground mining would occur at considerable depth below some properties in Waihi East.

The mining would occur in blocks starting at the bottom of the ore body, which is 350 metres below the surface and working up to the top of the ore body, at approximately 130 metres below the surface.

Gold » Newmont-Waihi Gold

Former protestor revels in communications role Kit Wilson - Newmont-Waihi Gold’s external affairs coordinator - used to be an ardent antimining protestor. He talks to Karen Phelps about how he came to make the switch.

T

here are still people in the town of Katikati that refuse to talk to Kit Wilson. Newmont Waihi Gold’s external affairs coordinator did such an overnight turnaround from ardent and active mining protestor to supporter many years ago that some people were left in confusion.

One gets the feeling life hasn’t been easy for Wilson in some respects but also that living by his own personal code of honour – even when at times this makes life uncomfortable both for himself and those around him – is his number one driving force.

Born in the United Kingdom, Wilson grew up in the mining county of Durham in the north of England and jokes that he was “born in the shadow of the slag heaps and coal mines”.

At the age of 13, Wilson and his three brothers were uprooted when, with industry in decline, New Zealand seemed to offer a better future for the family. Settling in Hamilton, Wilson had his Yorkshire accent beaten out of him – sometimes literally – by jealous schoolboys as he attended Melville High School “I used to speak like the people on Coronation Street. The girls liked it; the boys didn’t. So I realised I would have to get rid of my accent fast to survive,” says Wilson with a smile.

After finishing school Wilson applied for teacher’s college and with such a shortage of teachers at the time his acceptance letter was handed to him at the interview.

He trained for three years at Hamilton Teachers College and a further three years at Waikato University finishing with a masters degree in education with a major in sociology.

While at teachers college he had met his wife and the couple returned to her hometown of Katikati and Wilson eventually started teaching at Katikati College.

It was a time when the technology of computers and video was just starting to be introduced to schools and it was this growing technology that interested him the most. He soon became the school’s head of media studies eventually working for the Department of Education’s advisory service in Hamilton teaching other teachers best practise in his specialised area of film and media studies.

It was this interest in filming that led him on the path, which saw him eventually working for Waihi Gold when he was teaching a night class in video editing for adults and Waihi Gold’s then environmental superintendent joined the class.

“He asked me to film a video at the mine and I replied ‘Do you have any idea who you’re talking to? You’d be mad to get me on site to make your video’.”

Wilson was the chairperson for the Kaimai Action Group, set up to oppose mining in area.

Surprisingly Waihi Gold still wanted Wilson to come on site and see how things were done, something Wilson thinks was courageous of the company given the potential for it to backfire.

“In those days information came from country to country very slowly. There were no faxes or technology like we have today.

“For example someone in our protest group got hold of a photo of a mine at Crested Butte in the United States, which was just a huge hole in the ground and we thought that was what open pit mining was. Because we didn’t fully understand we thought the worst.”

Wilson readily admits that despite being one of the most ardent anti-mining protestors he’d actually never set foot on a mining site.

“My impression [when I visited the Waihi Gold site] was the exact opposite of what I thought I knew.

I have more of an effect by being on the inside than I ever did on the outside and I will always stand by that.”

“It wasn’t full of environmental despoilers; it wasn’t full of people just wanting to make money. It wasn’t full of overseas people just looking to rape and pillage the land.

“It was full of people with a genuine and passionate belief in the environment and who were looking after it.

“It caused me to have a real and rapid rethink about what I had been doing and saying.”

He says there were obvious personal ramifications for his marked change of mind.

“There were people in Katikati who felt that I had turned against them and some to this day will not speak to me.

“They felt I’ve been a traitor to the cause and can’t understand how I had such a dramatic turnaround.

“But I’m more than happy to admit when I’m wrong. I like to think I don’t hold entrenched views and if the evidence is there I will change my point of view.”

Wilson now finds himself in a unique position: while he is employed by current mine owners Newmont Waihi Gold in a full-time contractor capacity and obviously has the company’s interests at heart he says that he also holds the local community dear and doesn’t see the two as being mutually exclusive – quite the contrary: “The best interests of the company are very often ensuring that the best interests of the community are being heard and advanced.

“All the easy mining resources are gone. We are going to be mining in more environmentally and socially challenging areas.

“If we want to continue as an industry we have to find a way to work collaboratively with communities, NGOs and other interest groups.”

Wilson also doesn’t see his present position with Newmont Waihi Gold and his past background as an environmental activist as being mutually exclusive.

“I have more of an effect by being on the inside than I ever did on the outside and I will always stand by that.”

Wilson describes his job as “the guy that’s not the miner”.

He says this is important in his key communication role with the company.

“I was a bit concerned when I first came here that I didn’t understand a lot about mining but I’ve found that it’s an advantage. If I don’t understand something the general public will not understand it.”

Wilson says he enjoys his position with Newmont Waihi Gold as no day is the same and could include being underground, taking photographs while up to his waist in a river, flying in a helicopter or at his desk.

“One of the reasons that I work here is because Newmont Waihi Gold doesn’t hide things. I find my moral compass aligns very easily with the direction and philosophy of the company.

“I can go home at night and think I did something positive today and made a difference.”

On the job: Kit Wilson filming at the Waihi East open-pit mine.

Winter 2013 » Mining NZ 17

Industry Comment » Straterra

Spreading the word on environmental success If the minerals sector wishes to achieve better regulation, access to resources, and research, it needs to create and publicise environmental success stories, writes Straterra’s Chris Baker.

E

nvironmentally-responsible miners are a self-contained lot. They work hard on their ideas, consult with the locals, put things back responsibly, and generally keep their heads down and get on with it.

Still the complaints roll in. Mining destroys habitats, pollutes water, drives species extinct, we are told. New Zealand doesn’t even benefit; all the profits go overseas.

Those would be grievous charges if they were true. But we know that if an information vacuum is presented, someone will fill it, with facts and evidence often the first casualties of that “debate”.

While those in the industry know that minerals exploration and development can be and is being done responsibly, many New Zealanders do not know this story, often because they simply do not have the information.

Of course, some opposition focused on coal is driven by understandable climate change concerns but these concerns should not embrace all mining.

This has potentially serious consequences – millions of dollars and years spent by companies in litigation; and decisions that reflect political drivers, rather than responsible economic growth.

As matters stand, Bathurst Resources is battling through numerous regulatory processes. Solid Energy is back in court over its resource consents for the Cypress extension to the Stockton mine, and protests continue over Newmont Waihi Gold’s activities in the Coromandel.

A circuit-breaker is needed, and more communications of the minerals sector’s performance is surely one part of the solution.

That’s what veteran opinion researcher Pauline Colmar has been telling us – we need to get out there and tell New Zealanders what mining is, and what it is not. In 2012 she carried out a survey of New Zealanders’ attitudes towards minerals development, for Solid Energy. And in 2013 TransTasman Resources commissioned her to survey the attitudes of people living in Taranaki.

She found that 59% of New Zealanders surveyed support minerals development, and the figure for Taranaki is 69% (see story page 28). That is, perhaps, not unexpected; however, the figures soar to 81% and 87%, respectively, with the following provisos: the environment is looked after, locals are employed, and most of the money stays in New Zealand. And according to Colmar, that is an overwhelming show of New Zealand support for the minerals sector.

An opportunity to tell our story arose last month at the Minerals West Coast forum, held this year in Shantytown, near Greymouth.

Bernie Napp from Straterra was one of three on a judging panel for an environmental award, offered for the first time at this conference.

Total Hose & Fitting Service

18 Mining NZ » Winter 2013

Chris Baker The winner was Solid Energy/Stockton Alliance for the use of bio-solids (i.e. treated, stabilised and pelletised sewerage) in establishing fast ground cover at Mt Frederick, Stockton coal mine.

Neutral pH levels, and low sediment loads are the key initial outcome. The grass consumes most of the nutrients and dies after a year, leaving native plantings to do the job of longer-term ecological restoration, in the naturally nutrient-poor, cold, wet and harsh environment.

The technology is cost-effective and can be applied potentially anywhere in New Zealand. There is also the attraction of turning one city’s waste to someone else’s advantage.

This project demonstrates that mining companies are successfully improving their environmental management.

The other entries in the awards were also interesting projects: the use of waste mussel shells in neutralising acid mine drainage (Stockton); direct vegetation transfer of native snail habitat at Mt Augustus (also at Stockton); and the development of an additive for the cleaner burning in boilers of West Coast sub-bituminous coals (Taylor Coal).

These stories of environmental responsibility and success are being added to Straterra’s store of case studies used in advocacy to politicians, officials, the media, and other stakeholders, including, increasingly, Maori groups.

Beyond the minerals sector, businesses in New Zealand and abroad are thinking hard on the question of achieving sustainability, and demonstrating it.

Expatriate New Zealander James Griffiths, head of the natural capital programme at the World Business Council for Sustainable Development, explained to the “Valuing Nature” conference in Wellington in July that there are typically five stages in the development of sustainable businesses: operate with principles; partner with NGOs and philanthropy; make sustainability integral to core strategy; include sustainability in governance; and expand financial reporting to include sustainability.

Taken together, Griffiths is saying businesses need to get well beyond compliance, and show leadership in this debate, for businesses to remain resilient and competitive. It’s also good for the planet.

If explorers and miners were better recognised by the general public for their environmental and social responsibility, our sector would be better positioned to get traction on the many broader issues of concern for our sector, including regulatory complexity, access to resources, and basic research.

Whether that would be a hand-brake for opponents who think mining is only okay if not done in New Zealand is another matter.

Thorough environmental monitoring is a huge part of modern mining operations in New Zealand.

call 0800 4 ENZED or visit www.enzed.co.nz

Merger will give sector “one voice” Jo Bailey The merger of industry group Straterra with the New Zealand Minerals Industry Association (NZMIA) is a “huge step forward” for the minerals industry, says Straterra chief executive Chris Baker.

“This is really positive and necessary outcome for the minerals industry.

“The merger consolidates the sector into one voice, allowing us to achiever greater credibility and more effective representation.”

Under the new agreement, Straterra has become the sole representative industry body, taking over NZMIA work and membership, with NZMIA being dissolved.

Baker says the merger came about through “patience, diligence, persistence and compelling logic”.

“Having two organisations representing the industry undermined a significant amount of influence we could have had when advocating at government level or to other organisations.

“Straterra already had the support of the big mining and minerals companies as well as the resources and team to do the work. In the end, logic prevailed.”

Baker is expecting a seamless transition for members of NZMIA to Straterra.

“NZMIA holds much history and knowledge, and we welcome NZMIA members into Straterra. Mining faces many challenges in New Zealand, and it is important that we manage our scarce resources efficiently, and present our industry professionally. This agreement helps us do that.”

NZMIA memberships will automatically transfer to Straterra at existing subscription rates until renewal in April 2014, when members can decide whether or not they wish to continue. The NZMIA was established in 1981 when it was known as the New Zealand Mineral Exploration Association.

Straterra was launched in 2010 with industry leaders such as OceanaGold Corporation, Solid Energy, NZ Coal Association and Newmont Waihi Gold, among its inaugural members.

The organisation has grown strongly yearon-year, with 15 members in 2011, 40 in 2012 and 66 so far in 2013.

Baker estimates Straterra now represents in excess of 90 percent by value of the country’s mineral production.

The chief executive of NZMIA, Douglas Gordon is being made redundant from the disestablished organisation.

“We are working closely with Doug to facilitate a smooth and successful merger.

‘He must take a lot of credit for his cooperative and professional conduct throughout the merger process.”

Industry » News Forum

Industry potential excites Minister Energy and Resources Minister Simon Bridges is enjoying tackling the challenge of his new portfolio. Jo Bailey talks to the politician whose political star is definitely on the rise.

M

inister of Energy and Resources Simon Bridges says he is a “questioning cheerleader” of the mining industry.

“I’m bullish about promoting the mining sector both here and internationally and believe the resources area of my portfolio is where the government can add significant value.

“The growth of this sector could lead to the creation of real jobs for New Zealanders, instead of them being trained up and released to other parts of the world.”

However Bridges says he will also continue to remind the industry that the highest health and safety, and environmental standards cannot be compromised alongside its growth.

“I make no apology for this. If we’re going to protect our reputation globally and expand our social license among New Zealanders, this is the way it has to be.”

Bridges took over the Energy and Resources portfolio in January when he also became the Minister of Labour.

“They are both chunky portfolios with some strong synergies and very significant agendas that impact on the mining sector.

“As well as lifting the profile and potential of the sector under the Energy and Resources portfolio, there is a strong focus within the Labour portfolio on building on the health and safety reform programme that has arisen out of the Pike River tragedy.”

Bridges believes that the recent Crown Minerals Act review has “knocked the regime into good shape”.

“No law is perfect and you can never say you’ve entirely finished with regulatory reform.

“However I’m conscious as a National politician to ensure our rhetoric matches our reality.

“We pride ourselves in New Zealand as being one of the easiest places in the world to do business and need to ensure this is also the reality by streamlining the permitting regime where appropriate.”

He says the review of the Act has resulted in two significant outcomes.

“The first is the move away from simply managing our resources to promoting them and realising their potential, which is part of the government’s current growth agenda. The other is to lift the practice requirements of the industry, providing better coordination of health and safety and environmental oversight.”

Bridges, aged 36, has made a quick rise through the National Party ranks from bank bencher to fully fledged Cabinet Minister.

The former District and High Court Crown Prosecutor entered Parliament in 2008 after ousting Winston Peters from the Tauranga seat with a majority of more than 11,000 votes.

He served as a select committee chair

The growth of this sector could lead to the creation of real jobs for New Zealanders, instead of them being trained up and released to other parts of the world.”

Simon Bridges before being made a Minister outside Cabinet for Consumer Affairs in 2012 with the associate portfolios of Climate Change Issues and Transport.

The cabinet reshuffle in January this year saw Bridge’s star continue to rise when he was given his current two high-profile portfolios.

“I’ve been fortunate to progress to this position so quickly. When I first considered entering politics I had to weigh up the pros and cons of leaving law to potentially end up on the back benches without as much say or voice as I would like.”

Bridges has no family background in politics but was interested in it from a young age, becoming a member of the Young Nationals at 16 and elected as the organisation’s Deputy New Zealand Chair in 1997.

“I always liked a debate or argument so tended to gravitate to those sorts of things. I signed up to the National Party without any prompting and proceeded to try and form a Te Atatu Young Nationals branch, which I suppose was a bit unusual for a young guy from West Auckland.”

Bridges completed a BA in political science and history and an LLB (Hons) at the University of Auckland then worked as a litigation lawyer for Auckland firm Kensington Swan before shifting to Tauranga in 2001 to take up a position as a Crown prosecutor.

He later took leave to travel to the United Kingdom where he studied at the London School of Economics; completed a postgraduate law degree at St Catherine’s College, Oxford; and worked as an intern at the British House of Commons.

He was working back in Tauranga when the opportunity came to stand for National at the 2008 election.

“At the time it was a difficult decision and a big

risk as I was standing against Winston Peter who was foreign minister.

“A lot of things could have gone wrong but with a bit of luck and fate, and putting into practice what I had learned through both successful and failed Young Nat campaigns, I became the MP.” After five years in the job he says being in parliament has been better than he imagined.

“I am actually less cynical now than when I entered politics. I think you’re lucky in life if you find out what motivates you and gets you going. I feel fortunate I’ve been able to turn my hobby into my occupation.”

Bridges commutes between Wellington and Tauranga, where he lives with wife Natalie and their 16- month-old son.

As far as the mining sector goes, he says he is in a “privileged position” to be able to meet with lots of businesses and investors and is excited at the amount of investment being attracted to the industry.

“We have a very strong tradition of mining in this country that goes back to the start of colonial times. The industry has always been a strong contributor to the economy and I believe it has a very significant future ahead of it.”

Up close: Simon Bridges, second from left, visits Newmont Waihi’s underground operations.

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Coal » Bathurst Resources

Escarpment plans a step closer Jo Bailey Bathurst Resources has been given the thumbs up from the Environment Court that it will approve its application to carry out open-cast mining for coal on the Denniston Plateau.

Managing director Hamish Bohannan said the company was delighted by the court’s decision, which indicated consent for the proposed Escarpment mine project, subject to final minor drafting on conditions of consent.

The court required Bathurst to negotiate stronger commitments to environmental protection and clean-up; and to finalise remaining matters related mainly to rehabilitation obligations and the proposed Denniston Permanent Protection Area.

The court also indicated a preference for local councils to certify Bathurst’s “best endeavours” to set up the protection area.

Once these conditions are met and resource consents granted, Bathurst could then move into the first stages of operation.

Bohannan said he considered the amendments would not be difficult to address.

“The court has also acknowledged the urgency of the matter by requesting that parties provide a prompt response on conditions.

“We expect to receive consent as soon as the court has had time to consider that further information.”

The markets responded positively to the news with Bathurst Resources trading strong on the ASX and NZX on the day of the announcement, with gains of around 10 percent.

It is another positive step forward for the company on the back of the approval of a land access deal by Conservation Minister Nick Smith in May and an interim decision by the Environment Court in February that indicated it was likely to approve the project once it was satisfied Bathurst could meet a number of environmental protections recommended by expert witnesses.

These included locking in its intention to set aside 745ha on the Denniston Plateau as an ecological reserve and agreeing how rehabilitation

Hamish Bohannan, left, and Conservation Minister Nick Smith at the Denniston Plateau site of the proposed Escarpment Mine.

would occur on the Plateau when mining is complete.

Under the land access deal announced by the Minister in May, Bathurst will pay $22 million compensation for loss of conservation values the largest ever compensation package negotiated

We look forward to being in a position where we can provide jobs and security for a lot more local people.”

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The money will be used to fund pest and predator control over 25,000 hectares in the Kahurangi National Park and 4500 hectares on the Denniston Plateau.

It will also be used for historic projects on the plateau.

However Bathurst still has one more court process to endure.

It is waiting for the Supreme Court to rule on whether climate change should be considered under the Resource Management Act when issuing coal mining consents.

“If we get a positive outcome on the climate case, it will be the end of this process,” says Bohannan.

“Although a positive outcome from the Environment Court is a big step forward, it is still open to appeal by Forest and Bird but only on other alleged errors in law that haven’t already been appealed,” he says.

In a media statement, which was released the day the Environment Court decision was announced, Forest & Bird Top of the South field officer Debs Martin said that the organisation was “definitely looking at” another attempt to halt the project.

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Coal » Bathurst Resources The future of the proposed Escarpment Mine has been debated in the public forum for more than three years.

However Bohannan believes the company is finally getting closer to the end of the appeal process.

“It is a good, robust process. We’re getting through it. It just takes a while.

“We are holding strong and progressing all the pieces we need to hopefully start production at the mine later this year.

Bohannan says the modest revenues from Bathurst’s existing Takitumu and Cascade operations are supporting the company as it moves through the court processes.

“We already employ around 50 people on the West Coast but that number will increase substantially as soon as we get the green light for the Escarpment Mine.”

Bathurst’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.

“The West Coast community has shown fantastic support for the company,” says Bohannan.

“We look forward to being in a position where we can provide jobs and security for a lot more local people.”

Escarpment, which would be New Zealand’s second-largest opencast coal mine, is expected to inject around NZ$1 billion into the country’s economy over the estimated six years of production.

This would include more than NZ$100m each year in payments to employees, suppliers, contractors and transport providers.

Bohannan says the company is poised to proceed with significant development in New Zealand.

These plans include further development at the Westport wharf, where in conjunction with Westport Harbour Ltd, the company last year completed the construction of a $5 million storage shed capable of storing 9000 tonnes of coal.

The Escarpment opencast coal mine is expected to inject around NZ$1 billion into the country’s economy over six years of production.

It is currently being used to store production from the Cascade Mine, in anticipation of getting up to full production with Escarpment, hopefully later in the year.”

Bathurst plans to spend a further $30m to increase the capacity of the Port of Westport as “production from Buller increases over time”.

The company is also intending to invest about

$70m in an aerial conveyor system to bring the coal off the plateau, replacing truck haulage with an environmentally friendly transport system that will put green power back into the grid.

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Winter 2013 » Mining NZ 23

Industry News »

Lignite plans under threat Hugh de Lacy Solid Energy’s grand dreams of a lignite industry supplying all of New Zealand’s transport fuel and fertiliser needs might have collapsed along with the fortunes of the state-owned collier itself, but external factors were also contributing to the country’s biggest known energy resource staying in the ground.

The turn of the millennium had seen global oil prices go ballistic, and they seemed likely to hit the $US150/barrel mark that then Solid Energy chief executive Don Elder, said would make lignite conversion “too attractive” to ignore.

Phosphate prices, driven by dominant global supplier Morocco, were simultaneously eroding New Zealand’s competitive advantage in pastoral production, and fertiliser from lignite was the obvious response.

Two years ago voters gave the National Government a cautious green light to sell off state energy assets, including Solid Energy, seemingly giving it the freedom to pursue its lignite strategy, of which the first step - the briquette plant in Mataura - was already well advanced.

But then last year the price of Solid Energy’s principal revenue earner, high-grade coking coal, crashed, and this year the debt-burdened company all but went down with it.

Other economic forces were also at work to dash Elder’s lignite plans, the most powerful of them being the global oil price.

The global financial crisis had seen the oil price settle around the $US110/barrel mark - a big jump from $US15/barrel before the crisis hit - and, with the advent of fracking, the price was now enough to make the tapping of the world’s vast resources of shale oil economic.

There are 48 known shale basins in 32 countries, and the United States’ share of them

The pilot briquette plant at Mataura, being run by GTL Energy. looks set to make the world’s biggest consumer self-sufficient in oil within five years.

Lignite conversion just can’t compete.

Even conversion to fertiliser, the second step in Solid Energy’s strategy, has been knee-capped by the imminent start of seafloor phosphate rock mining off the Canterbury coast.

It will have little effect on phosphate prices either globally or in New Zealand but, combined with stabilising world prices, it’s enough to put lignite conversion the backburner indefinitely.

All that remains of Solid Energy’s grand lignite

strategy is the briquette plant at Mataura, and even that has been largely surrendered to South Australian company GTL Energy.

GTL Energy announced in May that a performance testing programme at the plant - the final phase in the commisioning process - had been satisfactory.

Regardless, Solid Energy may continue to limp along as a state-owned enterprise producing coal for export and domestic consumption but its dreams of being a major domestic oil and fertiliser industry player have turned to dust.

West Coast survey data available Aeromagnetic survey data of the a large part of the West Coast region of the South Island is now available.

The data is the result of a comprehensive survey commissioned by New Zealand Petroleum & Minerals (NZPM).

NZPM says the survey - which was undertaken by Australian firm Thomson Aviation using local helicopters - was done between February 2011 and March 2013.

It covered approximately 16,000 square kilometres of the West Coast with 91,722 line kilometres of data collected.

The flight line direction was 110-290 degrees; and flight line spacing 200 metres with tie line spacing at two kilometres.

NZPM says the survey provides valuable information on the subsurface geology of the West Coast.

All land listed under Schedule 4 of the Crown Minerals Act 1991 as being unavailable for mining is excluded from the survey data.

As well as being of interest to the mining sector, the data also has a wide range of applications in fields such as geological mapping, geothermal exploration, forestry, agriculture, horticulture, geological hazard assessment, and engineering and construction investigations.

Data packs can be ordered from the Ministry.

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www.industrialradiators.co.nz 24 Mining NZ » Winter 2013

Service providers & suppliers to the Gough Group

New Cat Mining Trucks perform for Oceana Gold The fleet of mining trucks at Oceana Gold’s Macraes Open Pit operation in Otago has expanded this year with the addition of two new Cat® 789 D Series Mining Trucks, the first of their kind to be delivered in New Zealand.

The new Cat 789D trucks line up next to sixteen 789 C Series machines already acquired by OGL, and they make up the largest fleet of this model in the country.

The 789D continues the tradition of Caterpillar’s proven 789 Trucks with high productivity and lowest in class cost per tonne.

General Manager at Oceana Gold’s Macraes operation Bernie O’Leary notes improvement in the 789D’s standard safety features, and has received positive feedback from the operators of an increase in overall comfort and visibility within the cab environment.

“Safety is always paramount, and the inclusion of a diagonal stairway as standard on the new D Series is a great feature,” Bernie says.

the environment on the top deck of the machine allows for increased visibility.

“When the operators are hauling a load, they are experiencing a noticeably smoother running drive train and a better ride as a result,” Bernie says.

“Also, the walkways on the top deck are wider and less cluttered than before which allows for greater peripheral vision through the side windows.”

The operator’s right side view is improved due to relocation of the air tank lower on the chassis, and through the use of a fully integrated object detection system they can receive audible and visual indications of the surrounds.

Oceana Gold’s mobile plant group maintenance manager Cliff Webb says that the two new Cat 789D Trucks have fitted in seamlessly to the 789 fleet at Macraes from a maintenance and operations perspective.

“The D Series require the same componentry as the C series, so not only do we not need to increase our spare “It’s an improvement from the standard vertical ladder parts holding, we haven’t had to use valuable time on the previous C Series. The operators and maintenance training or re-training the heavy diesel mechanics on a personnel ascending to the cab can more easily maintain new series of machine,” Cliff says. three points of contact at all times.”

“Also, the 789D’s do not overpower the C Series trucks, Other standard safety features include slip resistant and this is important because the sequence or timing of surfaces, retractable seat-belts with three points of the trucks out on site is not disrupting the operation of restraint, guard rails, and low interior sound levels. the gold mine.”

Operators of the new 789D trucks have indicated to Bernie that there is an increase in overall comfort and

Gough Cat has invested $10M in the development of a new Component Rebuild Centre (CRC) to ensure that valuable mining customers like Oceana Gold have the comprehensive service support available to get the most out of their extensive Cat fleets.

The new CRC has a five star contamination control rating and is now fully functional. It has the capacity of rebuilding 1000 parts per year, and boasts an engine Dyno facility designed in the USA. Goughs national mining manager Aaron Smith says the new CRC is situated directly adjacent to their Hornby branch in Christchurch and will substantially improve the ability of Goughs to service the mining industry and reinforce their position as the leading equipment supplier in the NZ.

The arrival of the two new 789D’s at Macraes boosts up the number of 789 trucks in the fleet to eighteen.

On delivery day at Macraes (from L-R): Mike Muir (Gough Cat), Brent Duncan (Gough Cat), Bernie O'Leary (OGL), Aaron Smith (Gough Cat), Adrian Boon (OGL), Mike Scurr (OGL)

Minerals » Northland

Exploration booms for Northland Karen Phelps Millions of dollars look likely to be spent in Northland over the next few years after the recent mineral exploration permit offers to three companies as a result of the Northland 2012 Competitive Tender.

“We now have five new exploration permits [being offered] in an area that hasn’t seen much exploration at a time when global exploration funds are limited,” says New Zealand Petroleum and Minerals national manager of minerals Sefton Darby.

“That’s really bucking the international trend and is a substantial increase in exploration activity in Northland.”

New Zealand Petroleum and Minerals received a total of 11 permit applications from five companies.

Five permits have been offered to three companies – Tai Tokerau Minerals Limited, Waimatenui Exploration Limited and De Grey Mining Limited.

The five-year permits allow exploration to be undertaken in defined areas of Northland.

Prior to the tender, Northland only had one operating exploration permit offered to De Grey Mining Limited.

The others are new companies formed especially to apply for bids under the tender.

Far North mayor Wayne Brown, who is one of the directors of Tai Tokerau Minerals Limited, says he got involved when he got told to put his money where his mouth was.

“I was saying to people it [the Northland 2012 Tender] was a good thing and they should get involved. Someone said ‘why don’t you put some money in then’,” he says.

“We’re [the company] a bunch of people prepared to take a bet and live with the financial consequences of not finding anything. We also have the capacity to do something with it if we do.”

Tai Tokerau Minerals Limited expects to invest up to $2m over the next three years and all going according to plan will start a drill programme in 18 months drilling 300 metres in the first year and 1000 metres in the second.

Brown says like any mining undertaking it is a risk, but says it is one he is willing to take.

“I’m a businessman and there’s evidence that there’s gold there. It’s a bit of a risk but the upside’s pretty good if it goes right.”

Waimatenui Exploration Limited has been formed by a group of local sheep and beef farmers - Arthur Rushton, Bruce Morris, Roddy McDonald and John Schepens - who believe they might be sitting on top of mineral rich land.

Morris, who is a keen rock collector, has suspected that his land is mineral rich for 20 years since he found rocks when wandering around his farm which tested positive for traces of gold, silver, zinc and copper.

His findings led him to take a walk around his neighbours’ farms where he made similar discoveries. The permit offered to Waimatenui Exploration is for an area north of Lake Taharoa, most of which is located on the farmers’ own land.

“We have found some individual small areas that are rich enough to mine so we wanted the prospecting license to drill more deeply and hopefully find bigger deposits. If we find them we will get in to mining them,” says Morris.

The farmers plan to invest around $300,000 up front to either hire or purchase a drilling rig to take samples over the next three years for analysis.

If their suspicions prove correct it could be a nice windfall for these hill country farmers.

Morris says that even if they don’t choose to personally complete the mining they could either sell the mineral rights to a mining company or join with one in a joint venture.

Morris says for him the venture is not just about money – it’s a personal passion.

I’m a businessman and there’s evidence that there’s gold there. It’s a bit of a risk but the upside’s pretty good if it goes right.”

Wayne Brown “I’m the most interested person. The others don’t seem to be very good at finding interesting rocks but I find them.

‘We’ve had a geologist and a geophysicist take surface samples and they think the signs are great too. We’re not just a bunch of farmers dreaming.”

De Grey Mining Limited has been awarded the other two permits but was unable to be contacted

by Mining NZ for comment.

De Grey is an exploration company listed on the Australian Stock Exchange (ASX) with epithermal gold-silver projects in the Deseado and Somuncura Massifs, Argentina and various interests in Western Australia.

De Grey recently secured by transfer the Puhipuhi exploration permit (EP 51985) in Northland.

The parties now have to clarify the exact ownership of the minerals in the land and when they

have done so the permits will be officially granted, says Darby.

“We are confident that five permits will be awarded. When you look at the exploration commitment in these permits there will be $7-7.5m spent in the next three years potentially rising to $13m over five years.

“In Northland that’s a massive step up in exploration activity.

“In the long term we are looking for that to convert to mineable deposits which could mean hundreds of millions of dollars of revenue, hundreds of jobs and big potential for downstream suppliers.”

Far North mayor Wayne Brown says there have been some murmurings of opposition locally but he feels most people are in support.

“People have said isn’t it terrible multinationals are coming here. Now they’re saying isn’t it terrible we’ve only got tin pot locals [who have been offered permits].

“It’s much more low key than what people might think. It’s a small area of land.

“There’s a bit of noise about it but the majority of locals think anything creating jobs is a good thing.

“The best thing that could happen is that one of us strikes it big creating jobs.”

Golder Associates has expertise on tap for mining Golder Associates’ New Zealand based mining group offers integrated consulting, design and construction solutions that assists clients to meet mining challenges “head on”, says Al Tattersall, Golder’s mining team leader and associate.

“We take a mining-savvy, multi-disciplined approach to clients’ projects that allow them to integrate as many or few of our services as they require, in a complementary way.”

Golder is a global consultancy company focused on earth, environment and energy projects.

It was established in New Zealand in 2001 and now has branches in Auckland, Tauranga, Hamilton, Christchurch, Dunedin and Nelson, where most of its mining group has been based since 2005.

It offers a full-service mining consultancy from project inception right through to mine closure, that covers exploration, geological resource modeling, mine engineering, resource and reserve reporting, plus mining related cultural and environmental disciplines. ”Our company ethos is based around doing the best for all concerned. We live on this planet too and are really committed to doing things right on behalf of our clients and bringing smart solutions to the table.”

On the environmental side, Golder’s specialist services span hydrogeology, geochemistry and water management, environmental baseline studies and environmental management systems (EMS), plus full support through the consenting processes and preparation and implementation of closure and rehabilitation plans.

26 Mining NZ » Winter 2013

“Our growing team of mine engineers, geologists, geophysicists, rock mechanics and hydro-geologists provide world class technical and service delivery.”

Golder is currently working closely with Bathurst Resources on some of their ambitious projects, says Tattersall.

“They are a great team to work with as they have strong leadership and a commitment to doing business in a sustainable, environmentally responsible way, which aligns well with our own corporate philosophy.”

Golder is also looking at the “potentially promising” tenders for Crown Minerals land that are being opened up for exploration in both the North and South Islands;.

He says the team is “as busy as ever” doing feasibility and due diligence work for a number of large scale international mining developments, he says.

“With our global reach, as one of 180 offices worldwide, we’re well placed to offer value service internationally, with world class expertise and at New Zealand prices, which are lower than many of our competitors internationally.”

With study work into large scale mining developments continuing around the world, Tattersall says Golder’s global focus is one of its biggest advantages.

“We have an in-house global network of expertise at our fingertips, which really strengthens our business.

“It allows us to either keep up with or lead the rest of the world, which can only be good news for our New Zealand clients when they are ready to advance their projects.”

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Minerals » Chatham Rock Phosphate

Chatham Rock on target for 2015 Jo Bailey Chatham Rock Phosphate (CRP) continues to take significant steps towards its 2015 production target.

In early July the company submitted New Zealand’s first Marine Consent application under the new EEZ regime to the Environmental Protection Authority – the culmination of three years work and a $20 million investment, says chief executive Chris Castle.

“We’ve worked pretty hard to get to this point and it is exciting to be the first cab off the rank under the new regime.

“The application is making history and will also be a test case for everyone involved, including the EPA and anyone taking either a positive or adverse approach to it.”

Castle says he is not too worried about opposition to the company’s plan to mine medium grade rock phosphate from the Chatham Rise, 450km offshore, as it is the “nature of the beast” when it comes to the mining industry.

“We’ve done the work so know what’s out there on the Chatham Rise and what the effects of our activities will be. We intend to operate in a way that minimises possible damage to the sea floor as much as possible.”

CRP holds a prospecting licence over 4726 square kilometres (sqkm) of ocean on the Chatham Rise with a well defined deposit of 25 million tonnes of medium grade rock phosphate with an in-situ value of around $US4.3 billion.

The Environmental Impact Assessment forming the centrepiece of Chatham’s Marine Consent application will be considered under the new Exclusive Economic Zone environmental consenting regime, which came into force on June 28 as part of the EEZ and Continental Shelf (Environmental Effects) legislation.

The main document presented as part of CRP’s application runs to more than 330 pages and there are about 30 appendices including a large number of scientific reports and models. The team has summarised the key findings to assist potential submitters to work through the documentation.

Castle says the company is currently working closely with Boskalis (the project’s contract miner and one of three cornerstone investors alongside Subsea and Odyssey Marine) on detailed design work relating to the vessel, riser system, onboard separation system, sinker system, and drag head that will carry out the marine mining.

“The drag head is in essence a power vacuum cleaner that fluidises a thin layer of sea floor, made up of 85 percent sandy silt and 15 percent rock phosphate nodules.

“This material is sucked up to the surface where the rock phosphate is extracted. The remaining sediment is then returned to the sea floor.”

Castle says Boskalis already has hundreds of drag heads in operation around the world, but is adapting the technology for the nature of the Chatham Rise deposit.

He says the marine mining process leaves a “tiny footprint” compared to the fishing industry.

CRP chair Linda Sanders and iwi adviser Toko Kapea during a consultation visit to the Chatham Islands.

“We are putting back 85 percent of the material we extract, with the net effect being a lowering of the sea floor by two inches over the 30sqkm mined annually. We will extract phosphate from selected areas only once.”

“From that we will earn roughly $9m per sqkm, in contrast to the fishing industry that bottom trawls 50,000sqkm repetitively each year with significantly lower economic benefit that we estimate to be around $10,000 to $20,000 per sqkm.”

CRP’s Initial Public Offer of shares and options closed in mid July and raised $1.58m.

Castle said while it was disappointing not to reach the target of $4m, the non-brokered offer successfully raised the profile of the company and attracted 120-plus new investors.

CRP has now raised $23.5m of the estimated $30m needed for production, with much of the funding sourced in “very difficult market conditions”, he says.

“With an existing market capitalisation of $50.4m we expect to be able to progressively raise the last $6.5m as we require it.”

The company also remains focused on the progression of its Mining Licence application with New Zealand Petroleum and Minerals; its plans to list the company on the Toronto Stock Exchange; and further talks with potential overseas investors.

Above, phosphate nodules on the seafloor; right, the Chatham Rise site is located 450km offshore.

Winter 2013 » Mining NZ 27

Minerals » Platinum

Platinum tender Survey shows support will raise profile for Taranaki iron-ore plan Karen Phelps The second of the exploration proposals to be offered by New Zealand Petroleum and Minerals will help to bring greater awareness to the international mining community about the opportunities available in New Zealand, says New Zealand Petroleum and Minerals national manager of minerals, Sefton Darby.

The Government has unveiled a plan to open 4422 square kilometres of land, mainly around Nelson and the upper West Coast, to exploration for platinum mining.

The tender will allow companies to bid for blocks of up to 12,000 hectares to explore for platinum and other precious minerals.

The window would close in March 2014, with permits being offered in June that year.

Royalties payable to the Crown would be the same as gold: two per cent of revenue or 10 per cent of accounting profit, whichever is higher.

Platinum is one of the rarest metals in the world, more scarce than gold, with most production coming from South Africa. At current prices platinum is worth about US$1500 an ounce (NZ$1870), compared to US$1400 for gold. Silver is worth about US$22 an ounce.

Darby would not comment on the potential benefits of mining platinum in the South Island as it was “so incredibly hypothetical” at such an early stage, but said that exploration would mean work for Kiwi geologists and drilling teams.

Darby says that by opening the permits up to tender and providing easily accessibly geological information to potential bidders, greater interest

By offering competitive tenders it has given us a package to go to market with.” is generated in the prosess but also sometimes greater controversy.

“In the past if permits came up one by one then they didn’t get noticed as much. By offering competitive tenders it has given us a package to go to market with.

“This naturally raises our profile a bit with local government and iwi but by putting it into a tender we can carry out a systematic consultation process,” says Darby.

“It has given a greater awareness internationally to promote the New Zealand government’s efforts to create a better climate for minerals investors.

“One of the benefits we hope is getting new investors and companies coming into New Zealand.”

The competitive tender will be opened in September and New Zealand Petroleum and Minerals is presently consulting with 17 iwi and ten local councils about the plan for any concerns or areas of particular sensitivity.

Darby says consultation will refine the potential exploration areas.

The councils and iwi will respond to the proposal

by August 1 and any exploratory work and access would need resource consent from the councils.

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28 Mining NZ » Winter 2013

The vast majority of people from Taranaki and Whanganui agree with the development of New Zealand’s natural resources, including iron ore, as long as the environment is protected and benefits flow to communities.

That is is the key finding of a recent independent survey, which shows 87% of 327 people surveyed supported the responsible development of all of New Zealand’s natural resources; South Taranaki iron ore in particular.

The survey was conducted by market research specialist Pauline Colmar during late February and early March by phone. It has a maximum margin of error of 5.4%.

Colmar says the survey found 69% of participants agreed overall with the development of natural resources but the strength of the positive response increases where jobs and economic benefits to communities, regions and country are evident.

The most attractive provisos are ‘if local people are employed’, ‘if the money stays in New Zealand’ and ‘if the environment is protected’.

“There is a sense that the resources are there and should be used,” Colmar says.

Trans-Tasman Resources Ltd (TTR) commissioned the survey to ascertain the interest in and support for its plans to harvest iron ore from the seabed off the South Taranaki coast inshore from the Kupe gas field production platform that lies about 30km off Manaia.

TTR chief executive Tim Crossley says the survey results are heartening and have underscored and emphasised the messages the company has heard loud and clear; that care

of the environment is the number one issue for residents.

“It also tells us very clearly what we must do to earn the social licence to operate.

“The people of Taranaki can be assured that TTR shares and understands the concerns highlighted in the survey and is spending very significant sums with independent expert scientists, from organisations like NIWA, to assess any likely effects caused by mining to the seabed, sea life, fish, beaches and shoreline.

“These experts will recommend mitigation to minimise any issues identified,” he adds.

“We are also delighted to see that the benefits of developing the iron sand resource are seen to be jobs, money and benefits to the community, region and country.

“Early economic modelling shows that our project will generate around 540 direct new jobs alone.”

He says he is looking forward to presenting a wide range of environmental, social and economic research studies to the Environmental Protection Agency (EPA) when the company lodges applications for consents.

“We recognise consents depend on protecting New Zealand’s valuable environment and that the EPA will scrutinise our application very closely.

“TTR is here for the long term. Our harvesting operation, while covering a relatively tiny space, will produce for at least 20 years, providing long term employment and money to the local community, while also earning valuable overseas funds for New Zealand.”

Quarrying » Quarry NZ Conference

Quarry NZ delegates at this year’s annual conference in Dunedin on a visit to Blackhead Quarry’s new plant.

Clarity sought on legislative changes Karen Phelps New Zealand quarry operators are concerned over the possible impacts that legislative changes announced in the wake of the Pike River tragedy - may have on the quarrying industry.

The proposed changes were a hot topic at the recent Quarry NZ annual conference held in Duendin.

President of the New Zealand Institute of Quarrying Gordon Laing says that approximately two thirds of the submissions made on the proposal for implementing the recommendations of the Royal Commission on the Pike River Coal Mine Tragedy came from the quarrying industry, reflecting the high level of concern the industry has.

“The recommendations were initially primarily made for the coal industry but over time this was broadened to include all extractive industries.

“The implications are that there is the potential for regulations imposed on underground mining operations to also be imposed on quarries,” says Laing.

“As an overall concept we have no objection to the recommendations. What we are concerned about is that there are some things applicable to underground mining that are not applicable to surface mining.

“The wording of the document at the moment is not clear and we are seeking clarity around these issues.”

Although he acknowledges that some progress has been made and there are now distinct definitions for mines and quarries in the discussion document, there is still a way to go and it is now a case of “wait and see” until the Government reports back.

More than 200 delegates attended the Quarry NZ annual conference.

Entitled ‘Rock – our Global Foundation’ the 45th conference sought to emphasise the importance of the quarry industry in everyday life.

This year the conference was also host to the

Institute of Quarrying International Presidents from Malaysia, South Africa, Australia, Hong Kong and the United Kingdom.

During the meeting each president or chairman that attended gave an overview of how the industry was going in their territory. The keynote speaker was the executive director from the UK Institute of Quarrying Phil James.

The conference also included field trips to quarries where participants saw live demonstrations of machinery. This year Blackhead Quarries, Logan Point Quarry and Blackhead Quarry were visited by the delegates.

The conference also included the industry’s annual awards.

Winners included Baldwins Quarry which won the Winstone Aggregates Safety Award for being accident and incident free for six years. Road Metals, George Kelcher took out the Rocktec Innovation Award for manufacturing a machine to remove coal from gravel so the resulting product could be used in breeze blocks at an Alexandra plant. Craig Payne won the Niemac Award and Andrew Dronjak was presented the RD Hassed Trophy for outstanding services to the Institute of Quarrying for the year.

Laing says a key aspect of the conference is the opportunity for delegates to network and this year provided opportunities for delegates to interact with industry heavy weights from all around the world.

He says the three big issues that appear to be affecting the industry worldwide are membership retention, ageing workforce and approvals for new operations.

“Historically quarrying companies have been locally owned but there is a trend towards international companies operating around the world.

This means they don’t necessarily have an affinity with local professional organisations such as the Institute of Quarrying.

“As usual at this year’s conference it was good to have a wider perspective on the industry as we often find that what is happening in New Zealand is being mirrored internationally.”

Online programme launched Following a successful pilot, the Institute of Quarrying New Zealand has now fully implemented an online continuing professional development record keeping programme.

“We did a sample with volunteers from our membership asking them to record their continuing professional development for a six month period,” says president of the New Zealand Institute of Quarrying Gordon Laing.

A subcommittee was also developed by the Institute of Quarrying executive to review the records of the pilot.

The programme was based on the UK Institute of Quarrying’s model but adapted for --the New Zealand market. It is available

through the institute’s website www.ioqnz.co.nz and allows members to log on and enter their records into an online system.

The programme will also send members an alert reminding them when their Certificate of Competence is due to expire.

Laing says the initiative fits in with the institute’s focus on actively supporting, promoting and encouraging training and education.

“We believe that this programme has the potential to increase our membership and will help our members to keep up to date with the latest technology, information and best practice.”

Suppliers of • Power Transmission • Conveyer Equipment • Industrial Hoses and Fittings • Industrial Products • Conveyor Vulcanising Services Quality Products - 24Hr, 7 day Service Excellence in safety practice rewarded: Kerry Reilly, right, of Baldwin’s Quarry which won the IOQNZ Winstone Aggregates Safety Trophy.

O800 RUSSET Winter 2013 » Mining NZ 29

Industry News »

School of Mines Rationalisation promises up and running better health outcomes Karen Phelps

Jo Bailey A series of quarry manager programmes are the first courses being offered by the New Zealand School of Mines (NZSOM) which is based at Tai Poutini Polytechnic in Greymouth.

The school’s development manager Peter O’Sullivan (who is also manager of Minerals West Coast), says two-day block courses towards a National Certificate in Extractive Industries A Grade Quarry Manager and B Grade Quarry Manager started this month in Auckland, Canterbury and the West Coast, with a fourth course likely to be offered in Southland.

“The courses have attracted good numbers and it’s great to have them underway.

“They cover the management and supervision of quarry sites, with a big focus on understanding and applying health and safety regulations.”

O’Sullivan says the quarry courses were developed in response to the discussion document on the review of New Zealand’s health and safety regulations which highlighted the requirement for people managing quarries or open cast mine sites to hold appropriate qualifications.

“These courses are the first step towards people becoming fully qualified quarry managers.

“Once they have completed their NZSOM Certificate and have relevant on-site experience, they can then apply to the Department of Labour for a Quarry Manager’s Certificate of Competence.”

Other pre-employment Certificates in Mining, Civil Plant Operation, and Drilling (driller’s assistant) will soon be offered by NZSOM; along with industry focused programmes such as Explosives and a range of programmes to assist companies to meet their operational and statutory requirements.

A Programme Advisory Committee is being established to provide guidance to the School to

Peter O’Sullivan ensure its programmes are fit for purpose and meet an industry need.

O’Sullivan says a lot of work has gone into establishing the largely virtual school which aims to create a seamless pathway for training and career development for the minerals industry, spanning from high school through to post graduate studies.

“In the past training for the New Zealand minerals industry has struggled to keep pace with its ever-changing technical and knowledge requirements. NZSOM is working hard to bridge this gap and promote a transparent and effective training pathway.”

NZSOM has built strategic relationships with key institutions on both sides of the Tasman to ensure cross-recognition of each other’s qualifications as appropriate.

“These relationships may also include the sharing of specialist teaching personnel and resources in the future,” says O’Sullivan.

In the past training for the New Zealand minerals industry has struggled to keep pace with its everchanging technical and knowledge requirements.”

Improving safety performance Changes recommended by the Independent Taskforce review of Workplace Health and Safety, which has found that New Zealand’s current health and safety system is not fit for purpose, could have far reaching consequences for mining business owners, says Richard Gibson, director of Impac, a leading provider of business risk and safety management solutions.

“New legislation is likely to place due diligence requirements on officers and directors of companies that will require a much greater focus on managing safety risks than we have seen in the past,” he says.

So how can mining business owners best manage their critical risk? Gibson recommends that owners start by identifying what can cause death or serious injury/illness in their workplace.

“What are the big accidents that you need to prevent? These are your critical risks and they need your attention before you get distracted by operational pressures.”

He says that often hazard registers describe generic outcomes (for example fire or explosion) or the hazard source (driving vehicles) but recommends that the best technique is to focus on the actual incident that needs to be prevented, for example ‘collision with another vehicle’.

“The next step is to identify the specific threats or triggers that cause or increase the likelihood of the event occurring. For example threats that increase the likelihood of a collision with another

30 Mining NZ » Winter 2013

vehicle includes speeding, worn tyres and driver fatigue. For each identified threat, the next step is to determine what control measures need to be established to prevent the event.

“In addition, if our efforts fail and the event does occur, what recovery measures can we establish to prevent the undesirable consequences?” he says.

Gibson says it is an on-going task to ensure control measures are established and maintained and that this is an area business owners typically find challenging.

“You are working against factors such as normalisation or people getting used to risks and of course Murphy’s Law that if something can go wrong it will eventually.

“To make sure you build strong critical controls, take time to understand how these controls might fail, then focus on the tasks and competencies required to ensure those controls remain effective.”

He says that for many business owners the only way to get assurance that the process is working is to have an independent party look at their critical risks and provide recommendations for continuous improvement.

Impac’s nationwide team of specialists works right across the spectrum from leadership activities with boards and senior managers, health and safety audit and assurance, strategic consulting, investigations and expert witness services, health and safety training at all levels, reviews of business processes and project management.

A positive rationalisation in the mineral sector to better deliver health and safety outcomes will result in closer liaison between government and the industry, says Straterra chief executive officer, Chris Baker.

Baker, who has recently been appointed chairman of MinEx, who Baker will work with the newly appointed MinEx chief executive officer, Les McCracken, to spearhead a united industry drive to implement the 16 recommendations of the Royal Commission on the Pike River Coal Mine Tragedy.

Baker says that specific industry knowledge is essential for government to make good decisions that will work for the industry.

Baker is a member of the Institute of Directors (NZ) and a Fellow of the Australasian Institute of Mining and Metallurgy.

His other roles are chairman of the Coal Association of New Zealand, chairman of the Brisbane based mineral exploration company Auzex Exploration Ltd. He is also director of the CO2CRC Australian government, industry and research funded fossil fuel research organisation.

McCracken brings more then 35 years’ experience in mining with the last 15 as a contractor and consultant on various major mining projects in New Zealand.

He has also been general manager for Doug Hood Ltd and before that spent 17 years with Solid Energy and Hamersley Iron in a number of operational and project management roles in underground and opencast coal mining and opencast iron ore mining.

McCracken has already been playing an active role in health and safety, participating in a number of working groups to deliver outcomes to assist the Pike River Implementation Team and co-ordinate industry input into the development of a new regulatory framework for mining health and safety.

“We will be working with government on the implementation of the Pike River recommendations,” says Baker.

“Our role will be to provide industry feedback to government to ensure the proposals the government puts forward are fit for purpose,” he says.

Many operators are doing what they do very well, but Pike River happened and 29 people died. We have to put in place a regime that ensures this doesn’t happen again.”

Baker anticipates a busy year for MinEx including the development of a plan for the on-going role and resourcing of MinEx. “Two issues that led to the recent changes at MinEx were the fact that we realised that in order to add value for safety in the minerals sector Straterra and MinEx had to work more closely together.

“An independent review also found that MinEx was under-resourced. Going forward we will be working out a plan to resource MinEx from a financial and people perspective so that MinEx and Straterra can work together constructively and strategically to represent industry to ensure better policy,” says Baker.

McCracken says that health and safety is the highest priority to the mineral sector and commends the government for the commitment shown in implementing the Royal Commission’s recommendations.

“Our industry knows it must make its own contribution to this work, so the Coal Association (of New Zealand) and a number of individual companies have provided the additional funds needed to do this effectively,” says McCracken.

Baker says that although many operators in New Zealand are doing a good job the safety statistics across the mining industry as a whole need to be improved.

“Many operators are doing what they do very well, but Pike River happened and 29 people died.

“We have to put in place a regime that ensures this doesn’t happen again.”

Do you understand what your critical risks are?

The report from the Independent Taskforce on Workplace Health & Safety highlights a need for better understanding and management of critical risks.

If you are ready to take the next step in understanding and managing your critical risks then Impac is here to help. We can provide: » An assessment of your critical risks » Training to manage those risks » IT solutions to automate your risk management framework.

Call Visit Email

0800 2 IMPAC www.impac.co.nz contactus@impac.co.nz working to keep your work safe

Driving Performance – Industry Training Update In December 2012, EXITO’s business operations were consolidated into MITO. All EXITO learners had the opportunity to transfer into MITO training agreements to ensure they can complete their qualifications.

The merger was endorsed by industry and already the benefits are being realised: “Skills development and training, among other things, are essential to the future of the minerals sector in New Zealand. In addition, competencies are a critical contributor to the successful implementation of the Pike River Royal Commission’s recommendations. This is a high priority for industry, as it is for Government, and MITO has a vital role to play in this.”

Chris Baker, CEO, Straterra Certificates of Competence (CoCs) MITO has been recognised by the Ministry of Business, Innovation and Employment as an organisation which may issue Certificates of Competence under Regulation 17 of the Health and Safety in Employment (Mining Administration) Regulations 1996. For any questions about CoCs, email: certificates@mito.org.nz or call 0800 88 21 21.

Training Programmes Enrolments are now being accepted into extractives training programmes. A full list of available programmes and associated costs is located here: www.mito.org.nz.

“We provide a value-add, all-inclusive service”, says MITO Chief Executive Janet Lane. MITO’s service includes the arrangement and facilitation of all training and assessment with customised training resources, regular engagement from MITO’s staff, and the award of national qualifications.

Apprentice Re-Boot Subsidy The Government recently announced a subsidy to encourage new apprentices and their employers into industry training. This initiative applies to new apprentices signed into an Industry Training Agreement from March 6 2013. Where certain criteria are met, employers and their apprentices may be eligible for a $1,000 subsidy each.

The National Certificate in Extractive Industries (Supervision) (Level 4) with strands in Surface Extraction, and Underground Extraction may attract the Re-Boot Subsidy.

Review of Extractive Qualifications MITO is facilitating a review of the 20 extractive qualifications listed on the New Zealand Qualifications Framework. They are being reviewed as part of the Government’s Targeted Review of Qualifications to ensure future qualifications strategically reflect workforce and regulatory requirements.

The review will include the proposed education and training requirements from the recommendations of the Royal Commission Inquiry into the Pike River Coal Mine Tragedy. MITO will work closely with MBIE officials to ensure any proposed new qualifications reflect the requirements of the new regulatory framework.

MITO is seeking industry representatives and technical experts for Working Groups that will ensure the industry has a suite of sustainable, strategic and relevant qualifications.

If you would like to participate in the review or would like further information please contact michelle.crompton@mito.org.nz or visit www.mito.org.nz.

Industry Comment »

Capital raising overhauled The substantial amounts of money required to both establish mining businesses and keep them competitive over time, makes mining a capital intensive industry.

During the establishment phase in particular, it can seem like vast sums of money are literally being poured into a hole in the ground.

In large part, the required equity capital comes from a mix of investors. Some will be large sophisticated investors experienced in the mining industry and will know the risks. Others will not.

In either case, the raising of equity finance in New Zealand (as with other forms of securities) is governed by the Securities Act 1978 which is to undergo a major overhaul in the form of the Financial Markets Conduct Bill (‘FMCB’) currently before Parliament.

The FMCB aims to restore investor confidence by improving information and protection for investors and, importantly, to update and streamline the rules for raising capital.

The FMCB maintains a similar fundamental disclosure regime to the current Securities Act. Under the Act, when making offers for securities (such as shares) to members of the public, unless a relevant exemption applies you need to issue a registered prospectus and investment statement.

Under the FMCB a single streamlined document known as a product disclosure statement (PDS) will be required.

Ben Johnston

When raising equity, smaller and medium sized businesses currently seek to avoid the time and cost constraints of issuing a prospectus and investment statement by relying on one of the exemptions to the Securities Act. Common exemptions relied on are that investors are “habitual investors” or a close business associate of the company or one of its directors, or investors have been specifically selected by the company to invest otherwise than as a member of the public.

There has always been a risk for directors of companies seeking to raise equity on this basis as to whether the investor truly fits within one of the statutory exemptions.

Often this is not entirely clear and there is potential personal liability for directors if they get it wrong.

One real advantage under the FMCB is that there is a “small offer” regime, which is based on a similar exemption under Australian securities law.

The Financial Markets Control Bill aims to restore investor confidence by improving information and protection for investors and, importantly, to update and streamline the rules for raising capital.”

The new regime provides that businesses looking to raise less than $2 million in any 12-month period from fewer than 20 investors can do so without the need for a product disclosure statement.

Not only does this have obvious advantages in terms of cost, time and compliance, it alleviates some of the issues that directors of companies grapple with currently when they seek to make small ‘private’ offers.

It is important to note that under the proposed regime these ‘small offers’ cannot be advertised.

Also, they are only capable of being accepted by investors meeting the financial criteria or who are “likely to be interested in the offer”.

This may mean there has been previous contact between the investor and the issuer, or there is some professional or other connection between the investor and the issuer, or statements or actions by the investor indicate the investor is interested in offers of that kind.

The small offers regime, coupled with the FMCB’s proposed clarification of some of the existing exemptions to public offers, should significantly reduce compliance risks, time and costs for smaller capital raisings.

This is good news for the mining industry and businesses in general.

The Financial Markets Control Bill was introduced to Parliament in October 2011, has been through the Select Committee stage and a Supplementary Order Paper was released in April this year.

It is expected that the FMCB will be enacted this year and come into force in 2014.

Ben Johnston is a partner at Anderson Lloyd Lawyers. He can be contacted at ben.johnston@ andersonlloyd.co.nz

Brightwater appointment Engineering company Brightwater has announced the appointment of Alex Wilson as their Projects and Engineering Operations Manager. He will be responsible for overseeing all project delivery and engineering activities in New Zealand as well as engineering activities in Australia.

Wilson has over 25 years’ of bulk materials handling experience in a wide range of industries including the quarry and mining industries.

He is the former owner of Wilson Engineering Systems Ltd which was sold to Southern Cross Engineering (SCE) in 2007.

His most recent role which he held until the end of 2012 was as General Manager of Group Sales for SCE. Wilson says his new role gives him the opportunity to continue the many longstanding relationships he has formed over the years as well as being excited by his new challenge.

“The company has incredibly talented employees and is in a strong position to grow further in the mining industry. I look forward to playing my part in contributing to the growth of the company,” said Alex.

Brightwater chief executive David McGregor says the appointment will further strengthen the company’s project delivery and engineering capabilities.

“It is fantastic news to have Alex join Brightwater. He will provide invaluable experience and leadership to our current business activities and his background and expertise will be vital as we build towards the future.”

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Shell Rimula 32 Mining NZ » Winter 2013

Industry Comment »

Confirmation of mining tax changes In October last year Inland Revenue completed its review of the income tax rules which apply to the mining of specified minerals and released a discussion document which proposed to remove certain tax concessions. This was covered in the November 2012 issue of Mining NZ. The proposed changes have now been included in the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Bill introduced to Parliament on 20 May 2013 and are largely as outlined in the original discussion document with a few changes resulting from submissions received.

Under the Bill, the current rules that apply to companies that mine specified minerals will be repealed and replaced.

The new rules will apply to all persons (to be known as “mineral miners”), not just companies.

A mineral miner is a person whose only or main source of income is from mining related activities or whose only or main activity is mining related.

The term “specified minerals” has been dropped and replaced with “listed industrial minerals”, but the composition of the list remains unchanged and currently includes just under 50 minerals – including most metals (such as gold, silver and platinum).

One of the key tax benefits of the existing specified mineral mining regime is that a mining company is able to claim a deduction for all of

A deduction will still be allowed for mine development expenditure, but this will be spread over the life of the mine.”

Don MacKenzie

its prospecting, exploration and development expenditure in the year it is incurred.

A deduction is even available for what would normally be considered capital expenditure.

Under the new rules a mineral miner will still be able to claim these deductions for the prospecting and exploration phases, but exploration deductions will be clawed back and treated as development expenditure once a mine is developed for items which continue to be used to extract minerals.

A deduction will still be allowed for mine development expenditure, but this will be spread over the life of the mine. This is consistent with the approach currently used for the mining of minerals which are not listed industrial minerals.

Profits may currently be deferred for up to two years provided the taxpayer intends to reinvest the profits in further exploration or development. Under the new rules this concession is being removed.

However, Inland Revenue have recognised that some mining companies may have significant amounts already appropriated under these rules and could end up with large unexpected tax liabilities on their repeal. As such a transitional rule has been introduced allowing the resulting income to be allocated evenly between the 2015 and 2016 income years.

A further change applies to land acquired for prospecting, exploration or mine development.

This land will be deemed to be revenue account property, meaning that any gain derived on disposal will be taxable, and any loss incurred on

disposal will be deductible. Other mineral mining assets (such as mining or prospecting rights and exploration, prospecting or mining permits) will also be treated as being revenue account property.

There are also changes for rehabilitation expenditure incurred to restore or make safe land once mining activities have ceased, or where land is sold for a loss. To the extent that the mineral miner is in overall losses a refundable tax credit will be created. This credit is capped at the amount of tax payable in relation to the land or permit in prior years. This mechanism essentially allows an unusable loss to be cashed up and is in effect a loss carry back mechanism. The new rule is more

The next issue of MININGNZ

favourable than the approach in the discussion document which was similar to environmental restoration accounts and required payments to be made in earlier years.

There are currently specific anti-avoidance rules that relate to petroleum miners. These will be expanded to include mineral miners, in recognition of the similarities between the two industries.

A number of changes have also been made to how farm-out arrangements are treated for income tax purposes.

The new mineral mining rules, once enacted, will apply from April 1, 2014.

Don MacKenzie (Partner - Deloitte

Autumn 2011

Summer 2012

Winter 201 0

will bring more in-depth coverage of the latest in mining news, plus expert opinion and analysis.

Covering the major extractive industries operating within New Zealand, Mining NZ will bring you up to date with market trends, with a focus on new developments in the mining sector.

Brightw What now for Pikeat River er Del ? iver New Coa s for So l lid Ener Drilling time gy

Life after Pike

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Cleaning up

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View to the past

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Winter 2013 » Mining NZ 33

Environment » Tui Mine Remediation

The remediation of the Tui Mine site near Te Aroha has been a massive project which is now nearing completion.

Healing the wound at Tui Mine Karen Phelps The construction physical works and treatment are complete in the remediation of what was once dubbed as ‘New Zealand’s most contaminated site’.

The $21.7 million Tui Mine remediation project stands as an example of what happens when mining is not conducted in an environmentally responsible manner, says Waikato Regional Council special projects manager river and catchment services group, Ghassan Basheer.

“It reflected the bad practices of the past,” says Basheer.

“We’ve all learned that you can’t just walk out of a mining site; you need to remediate every single element to ensure that it will not cause risk.

“That lesson has been well taken by everyone and current practise and mentality is very different.”

The Tui Mine, located 2 kilometres from Te Aroha township, was operated as an underground mine from 1967 to 1973 by Japanese company Norpac Ltd, extracting metals such as copper, lead, zinc, silver and gold.

34 Mining NZ » Winter 2013

However production from the mine ceased in 1973 due to high levels of mercury found in the ore concentrate. The company went into liquidation and the mine was abandoned in 1975, leaving the underground workings opened, waste rock stockpiles, former processing plant, tailings dam and tailings untreated, all of which contributed to adverse effects on the surrounding environment.

The Tui Mine remediation project aimed to contain the tailings within a stable and secure location and reduce the release of contaminants into the Tui and Tunakohoia streams.

It also aimed to improve the geotechnical stability of the tailings impoundment and the visual appearance and aesthetics of the site.

Basheer says that the site remained untreated for so long simply because nobody accepted responsibility for the contamination and the site was considered an orphan site.

“In the past there were no financial bonds in place for rehabilitation of the site attached to the mining licences,” he says.

Adding to the complexity of the issue the project was technically complex due to the nature

We’ve all learned that you can’t just walk out of a mining site; you need to remediate every single element to ensure that it will not cause risk.”

and extent of the contamination and the need to determine the correct remediation approach.

The remediation involved the Ministry for the Environment, Waikato Regional Council, Matamata-Piako District Council, the Department of Conservation and local iwi.

The challenge for the Waikato Regional Council was the fact that it had never dealt with a project of this type or scale before.

“It was a large scale chemical treatment in an uncontrolled environment,” says Basheer.

“We have treated more than 100,000 cubic metres of contaminated soils.”

To give some perspective regarding the scale of the project, heavy trucks carried more than 10,000

tonnes of cement to the site or enough to build a 40-storey building.

Contractors also trucked in 8000 tonnes of lime, 14,000 tonnes of rock and gravel, 10,000 tonnes of clay and 10,000 cubic metres of topsoil to the mine site. The project took about 160,000 man hours of planning, management, engineering and construction time.

Phase one of the site’s remediation involved preparatory work (detailed design, site establishment, access road) and the treatment of the old underground mine workings, which discharged contaminated water into the Tunakohoia Stream.

• To page 36

The Tui mine remediation project represents Hiway Environmentals largest value, most complex and challenging project to date according to Hiway general manager Graeme Quickfall. “A number of remediation options had been considered over the last several years and on-site stabilisation was selected as the preferred treatment option, having ranked highest against other options against a number of key performance criteria,” he says. Hiway has had a long history of involvement and commitment to the Tui mine project dating back 15 years.

In 2009 Hiway was involved in a full scale field trial and provided advice on the selection of the most appropriate stabilisation and construction methods.The Tui mine remediation project had two key objectives: geochemical improvement of 100,000 m3 of contaminated mine tailings which had contaminated the environment through acid rock drainage and geotechnical improvement for the tailings dam, which posed a significant instability hazard. Quickfall says that the project posed many significant challenges associated with the construction works. “The tailings dam was inherently unstable and the construction methodology had to account for sequencing the works to ensure temporary stability of the dam during construction works. The tailings were low strength, liquefiable and contaminated, requiring stringent health and safety management. The stabilised tailings also required comprehensive geochemical and geotechnical testing and quality control to ensure that the end result was achieved. A very narrow and steep access track providing site access required careful logistics planning and execution. Overall some 3500 truck movements and 68,000 tonnes of material were delivered safely to the site,” explains Quickfall.

Phone: 09 426 3419 Email: info@hiways.co.nz Web: www.hiways.co.nz

The construction works ran over 18 months from 2011-2013. Hiway combined expertise with soft ground stabilisation and environmental remediation proved invaluable to the successful project completion which was completed on time on budget, says Quickfall. Hiway Environmental and Geotechnical is a specialist contractor focusing on soft ground engineering and contaminated site remediation. The company is part of the Hiway group, which also includes Hiway Stabilizers (stabilizing and pavement construction). With over 25 years’ experience across thousands of landmark projects Hiway Group has pioneered stabilisation technology throughout New Zealand and the South Pacific.

Hiway Environmental and Geotechnical has operated in the field over the last 10 years, developing an impressive track record of successful and challenging projects. Significant projects include the $3.5m Mapua contaminated site remediation project in 2005 and the first building foundation design and construction in the Christchurch CBD in 2012. The company has also completed numerous design and build foundation and slip repair projects throughout New Zealand. Quickfall says that the Tui mine remediation project is a good example of the company’s focus on developing and nurturing an environment of innovation, excellence and technological development.

Hiway is presently involved with McConnell Dowell on the Tui mine underground remedial construction works which is nearing completion. “We can all be proud of a job well done and the long term benefits to the environment and community on the clean-up of New Zealand’s largest value contaminated site remediation project.”

A division of

Environment » Tui Mine Remediation

10,000 cubic metres of topsoil were trucked in to the Tui Mine site.

Tui Mine - healing the wound • From page 34 The workings were partially plugged with engineered concrete bulkheads, and an alkaline solution (lime slurry) was injected underground to counter the strongly acidic conditions.

Phase two involved remediating the tailings dam area. A one-metre cap of clean fill was placed over the newly shaped landform, which has been grassed and is designed to stop oxygen and water entering the stabilised tailings in the short term until vegetation cover establishes.

Phase one of the remediation project was completed in early 2011 and the results so far have shown that the remediation has reduced the rate of leachate by varying percentages for different contaminants.

“Our target is to reduce the rate of discharge of heavy metals by 90% which in the long term is expected to improve the water quality of both

streams to meet recreational contact water standards,” says Basheer.

“We have met standards already with regards to some elements in the water.

“We are on the right track and have achieved some good results but it is a process.”

Monitoring hasn’t started yet on phase two but initial sampling is showing encouraging results, he says The next steps of the project include preparation of the maintenance plan and maintenance manuals and completing all closure reports to ensure appropriate handover to future owners.

Basheer says a process will be agreed for these elements and the final handover is due on March 30, 2014.

“We are dealing with leftovers from the past.

Every time a contaminated site is remediated a wound is being healed.”

Remediation work a challenge Tonkin & Taylor Ltd, proudly providing environmental and engineering services for over 50 years. ǩ ǁ ǁ

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36 Mining NZ » Winter 2013

Tonkin & Taylor project director Ted Willson says the Tui Mine remediation project was “technically challenging”.

Environmental and engineering consultancy Tonkin & Taylor had two roles on the project as part of a collaborative team that included designer URS and the Waikato Regional Council.

The first part of the project included breaking out rock and building a bulkhead dam at the lower level of the mine in order to flood it to reduce the formation of acidic water. Lime slurry was pumped into the mine to neutralise acidic waters.

The second part of the project involved treating the contaminated tailings in the tailings dam.

Situated halfway up the side of Mt Te Aroha, the location was obviously a challenge as 18,000 tonnes of lime and cement had to be transported up to be mixed with the tailings to neutralise and stabilise the material.

The ground was re-contoured and groundwater and surface drainage installed. A clay cap was then put over the top of the site and replanted.

“Basically if you imagine the tailings were the consistency of blancmange with a ph of around 3, which is similar to battery acid.

“We had to transform this into a more solid consistency as well as neutralise it,” explains Willson.

Tonkin & Taylor had to ensure that the works to reduce contamination in the underground mine were undertaken with high levels of safety both for the environment and workers in a challenging environment.

Willson says that the skills of the Tonkin & Taylor team really came to the forefront on the project.

David Bouma provided project technical support, peer review and on-going technical advice that influenced the way the mine was successfully remediated.

...the tailings were the consistency of blancmange with a ph of around 3, which is similar to battery acid.”

Willson and Bryn Quilter also made a significant and influential contribution to the success of the project as engineer to the contract and engineer’s representative undertaking more than 180 site inspections over the last two and a half years.

Tonkin & Taylor is a New Zealand employeeowned consultancy that provides innovative, cost effective and sustainable solutions for a diverse range of clients.

Tonkin & Taylor provides specialist services to the mining industry in the areas of geotechnical engineering, infrastructure design, environmental assessment, Resource Management Act consents and compliance.

The Tonkin & Taylor group of companies has completed projects in more than 40 countries, spanning the globe from Africa, through the Middle East, India, central and south Asia, Australia, New Zealand and the Pacific.

The Group is able to provide clients with direct access to more than 600 specialist professional and technical staff.

“We are proud to have provided our expertise in contract administration, environmental science and civil engineering on the Tui Mine remediation project to successfully remediate New Zealand’s most contaminated site.”

Environment » MIMICO Excellence Awards

Environmental efforts recognised It’s a turnaround for most people to recognise that quarrying operations can be havens for the environment.

But this year’s prestigious Mimico Environmental Excellence Awards were presented to four companies for their work to enhance the natural world.

The awards were judged by former Commissioner for the Environment, Dr Morgan Williams, and sponsored by supply company Mimico that sells, hires and services heavy machinery to the quarrying, mining, contracting, construction, recycling and forestry industries.

Mimico managing director Rex Davies says the award winners were all excellent illustrations of “good leadership and passion to do things better”.

“We are pleased to be able to continue our support of the industry through our sponsorship of the Environmental Excellence Awards,” says Davies. I’m pleased to see the high calibre of entries this year and I’d like to congratulate all the winners.”

Entries were judged on the degree of positive environmental impact, originality and innovation and the degree of difficulty involved as well as if the project was voluntary or mandatory. Particular note was taken of the extent of and nature of relations with local tangata whenua, though this criteria was not part of the formal scoring The Gold Award went to Rodney Aggregate Supplies, Whangaripo Quarry, Matakana Jason Hinton, Quarry Manager, sums up the teams approach: “Quarries are part of the community, and although we may not be everyone’s first choice of neighbour, it is possible for us to be a good neighbour.”

The site liaison group is represented by the local community iwi and quarry management meet regularly to set actions plans for environmental management.

In the past months this has included native plantings, maintenance of existing plantings and managing weeds and animals.

The quarry has also worked closely with the landowner to schedule screen planting to achieve coverage while minimizing impact on his farming operations.

The quarry has also established a Wai Care programme to monitor stream quality and enhance wetlands systems.

The water health and water quality monitoring tools, provided in a simple and quick to use field kit used by Wai Care include tests for pH, temperature clarity nitrates and nitrites, phosphorous and dissolved oxygen.

It is also encouraged to take a macro invertebrate (bug) sample to complete the overall ‘picture’ of water quality/health.

These resources and the water quality data collected can be accessed by others by people and organisations, including care groups, councils, universities, and government agencies such as Landcare Research and the Department of

Jason Hinton, quarry manager of Rodney Aggregate Supplie, and iwi environmental field officer, Fiona McKenzie, inspect work done to prune the pine trees and remove privet along the road outside the Whagaripo Quarry.

Conservation. The Silver Award was presented to Tony Hunter, general manager of Blackhead Quarries in Dunedin.

The quarry is in the city and the focus of the entry is its rich history and the proactive approach the quarry team has always taken to managing its effects on the city and its people.

Hunter provides an excellent example of how a quarry retains its ‘social licence’ to operate by always recognising its impacts, responding early, being open to visits and focusing on providing value to a multitude of small business customers.

The team has long been a leader in environmental measurement commissioning the construction of instruments to record vibrations long before they could be purchased off the shelf.

As a result they have stayed ahead of any concerns their neighbours or the council may have.

As good neighbours there has been proactive sponsoring of quarry visits by all who are interested from community groups, schools, university and professionals.

Two Bronze Awards were presented to Fulton Hogan Ltd, Gore Crushing, Gore, and Winstone Aggregates, Three Kings Quarry and controlled fill, Auckland city.

The highlights of the Fulton Hogan entry included the strong focus on water qualities – very important given the crushing plants proximity to

Quarries are part of the community, and although we may not be everyone’s first choice of neighbour, it is possible for us to be a good neighbour.” the Mataura River. The detail of good environmental management and compliance but the whole team was impressive - all staff undertake an onsite environmental management training module.

There is a well developed environmental management and safety plan which is clearly displayed on the office work-room wall.

It has an established community liaison group of near neighbours and encouragement of community and other groups visits.

On site and in the whole Fulton Hogan team there is excellent leadership on all matters environmental.

The Three Kings quarry and fill is a small inner city quarry in transition from extraction to re-fill.

The entry focuses on several innovative engagements with the drivers re-filling trucks to reduce the environmental impacts of their movement and enhanced driver safety.

Key highlights included the passionate and innovative leadership of environmental management and compliance by the Three Kings quarry and wider Winstone Aggregates team.

The environmental coordinator Elyse Laface says “a non-compliance incidence, even if from a storm, is considered a personal failure regardless of whether the results are minor” The team is committed to liaison with local community groups via quarterly meetings and quarry visits by community groups.

• Flora & Fauna • Erosion Solutions • Waste Management • Invasive Species Control • Heights & Ropes • Environmental Monitoring • Effluent Management Whangaripo Quarry has established a Wai Care programme to monitor stream quality and enhance wetlands systems.

Winter 2013 » Mining NZ 37

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