Growing our people

Transcription

Growing our people

MACMAHON
MAGAZINE
Bright
future
Growing our people
SUMMER 2011-12
Macmahon Magazine Winter 2011
1
Inside this edition
4
Milestone million
6
Apprenticeship to a
big future
8
Breaking new ground
11 A significant strength
12 Taking an innovative approach
14 Winning work for
winning results
17 Special feature:
Annual General Meeting 2011
25 Beacon of hope
26 Brian Macmahon Awards
28 Building biodiversity
31 Getting it done
Macmahon is a leading Australian construction and contract
mining company with major projects throughout Australia, in
New Zealand, Asia and Africa.
An ASX/S&P 200 company, Macmahon has played a major
role in the delivery of many of Australia’s largest multidisciplinary mining and construction projects.
Currently directly employing more than 3800 people,
Macmahon offers the full range of underground and surface
mining and engineering services and comprehensive
construction capabilities spanning transport, marine, water
and resource infrastructure services.
Your project, our people -
exceptional results
32 Around the clock
34 Start of something big:
Mongolia
36 Repeat business
37 The secret to success
38 Keeping contact
39 Pilbara ISA: building on
experience
Operational highlights
• Order book of $3.1 billion
• Revenue secured for 2011-12 was $1.4b as at 31 October 2011
• Directly employing more than 4000 people
Cover: first year apprentice mechanic Claire McCormack
at the Macmahon WAC Worshop in WA.
Issue 3 - Summer 2011–12
Macmahon Magazine is published by Macmahon
Holdings Ltd. It is published with due care and
attention to accuracy, however Macmahon accepts
no liability if, for any reason, the information is
inaccurate, incomplete or out of date.
Copyright Macmahon Holdings Ltd 2011. All rights
reserved.
Head office
Level 3, 27-31 Troode Street,
West Perth, Western Australia 6005
T: +61 8 9232 1000
Contact: [email protected]
www.macmahon.com.au
From the
CEO
Welcome to the latest issue of
Macmahon Magazine, which
highlights the company’s most
successful start to a financial
year ever.
When Macmahon held its Annual General
Meeting in November, I was pleased to be
able to report on such a strong start to the
2011-12 Financial Year. This reflects a lot of
hard work behind the scenes to capture the
many opportunities that exist in the market.
“... as at October 31,
Macmahon’s order
book stood at $3.1
billion - a record
level”
I was also delighted to inform our
shareholders that, as at October 31,
Macmahon’s order book stood at $3.1 billion
– a record level for the Company. This is
primarily due to several, significant projects
secured from July to October 2011, which has
firmly established a strong pipeline of work
for the future.
In this edition, we feature many of these new
projects, from the big steps we have taken to
expand our presence in Mongolia (p34-35)
and Nigeria (p36) on the international stage,
to some major new developments here
at home in the form of the Tropicana Gold
Project (p8-9) and the engineering project at
the CSA Mine (p12-13).
It’s fair to say it’s a time of rapid expansion
for Macmahon and there are many exciting
opportunities on the horizon. With that
growth comes the need to find more people
to help make these projects great successes,
and the Company will continue to focus on
recruitment and retention as a key issue in the
immediate future.
Pleasingly, this has provided Macmahon with
the chance to expand our apprentice and
graduate programs (p6-7), which will help
build the local skills base from the ground up.
Our apprentice program is highly acclaimed
within the industry and I look forward to
welcoming the next round of apprentices in
the New Year.
Of course, part of our commitment to our
people is safety and this continues to be
Macmahon’s first priority. We have recently
reinvigorated our safety programs across
the business and will continue to ensure
that each and every one of our employees
maintains a constant focus on safety in all that
they do.
Finally, I’d like to take this opportunity to wish
all our clients, shareholders and employees
a very Merry Christmas ahead of what will
certainly be a busy 2012.
Nick Bowen
Chief Executive Officer
Macmahon Holdings Limited
Macmahon Magazine Summer 2011-12
3
Milestone
million
Moving on from the challenges of a
shutdown due to the impacts of the
Queensland floods in 2010/11, Macmahon
has processed its first million tonnes of coal
at its Cameby Downs operations.
The millionth tonne of coal was sent by rail
to the Port of Brisbane in November, with
processing at the coal preparation and
handling site now averaging 120,000 tonnes
per month.
The milestone highlights Macmahon’s ability
to deliver improved productivity despite a
range of challenges, with the mine site forced
to close in December 2010 and March 2011
due to flooding impacts.
4
Despite the disruptions to operations,
Macmahon has achieved overall efficiency
gains in the first year of operations at
Cameby Downs.
Macmahon was contracted to the project by
Syntech Resources in 2010. The mine is now
fully owned by Yancoal Australia following its
purchase of Syntech in July 2011.
Cameby Downs is located near the town of
Miles, about 360km west of Brisbane.
The project highlights the Company’s
ability to successfully deliver a full service
offering to its clients, with the Cameby
Downs project including planning, mine
One year, one flood,
one site closure and
one million tonnes
of coal.
development, waste stripping, coal mining,
coal preparation and train loading.
It is the first time Macmahon has operated a
coal preparation and handling plant, with the
project team improving processing efficiency
since the contract award.
Macmahon is now producing about 1.4Mt
of thermal grade coal each year, including
400,000 tonnes produced each year through
the use of a bypass coal crushing operation
on site.
Processing power: The Coal Handling and Preparation Plant is processing an average of 120,000 tonnes of coal per month.
5
Apprenticeship to a
big future
Macmahon is currently experiencing
unprecedented growth as work
begins on significant new projects
across the country.
Meeting the recruitment needs that come
with such growth is no easy task. Macmahon
is responding through a range of measures
that will ensure the sustainable growth of its
employee group and ensure a strong skills base
well into the future.
The decision to double the Company’s
graduate and apprentice intake in 2012
reflects one of the strategies for managing the
growing demand for people. The New Year
will see the total number of apprentices grow
from 75 to more than 100 as the first year
intake is dramatically increased. The Company
is also working to employ 40 new graduates
in 2012, up from the traditional annual intake
of 10-15 people.
6
More than just a short term fix, the increased
number of graduates and apprentices reflects
a dedicated focus on developing the workforce
and identifying tomorrow’s leaders today.
Apprentice coordinator Jason Cullen said the
increased number of apprentices would deliver
long term benefits to Macmahon.
“The apprentice program develops the skills
of our people and prepares them for a rich
and rewarding career in the resources and
construction sectors,” he said.
“We don’t look at our apprentices in relation to
the term of their apprenticeship, we consider
the long-term career ahead of them in the
industry and, in particular, with Macmahon.
“In teaching our apprentices new skills and
ensuring they are mentored in their first years
in the job, Macmahon is delivering on its
commitment to its people and building the
skilled workforce of the future.”
Graduate numbers are also being increased to
help meet the growing demand for people.
The apprentice and graduate programs
are just two ways in which Macmahon is
responding to the recruitment challenges that
come with rapid growth.
Macmahon Chief Executive Officer Nick
Bowen said the apprentice program was an
essential part of developing skills within the
Company.
“We have a very successful apprenticeship
program in place that is bringing new people
into the industry and giving them the skills
required for a long and rewarding career in
mining and construction.
“We are committed to making a contribution
to the local skills base and see the
apprenticeship progam as a extremely
important part of developng a sustainable
workforce.”
Skills development: Macmahon
apprentices at work at the
Company’s WAC workshop in
Western Australia.
7
Breaking new
ground
The Company won the contract for the Tropicana Joint
Venture, between AngloGold Ashanti Australia Ltd and
Independence Group NL, in July and work has already
begun to prepare the site for the commencement of
operations.
Macmahon will complete mine planning, drill and blast,
load and haul, crusher feed and other associated works,
demonstrating the Company’s full service capabilities in
surface mining.
About $125 million will be invested in mining fleet and
infrastructure as operations commence.
8
Macmahon will help deliver one of the most
significant new gold projects in Western
Australia when mining operations begin at
the Tropicana Gold Project next year.
As part of this investment, Macmahon has purchased 14
x 240 tonne capacity trucks, two 400 tonne excavators
and one 520 tonne excavator. The purchase will boost
the Company’s ability to demonstrate its expertise in the
management of large scale resources projects in Australia
and is a significant addition to the organisation’s fleet of
equipment.
The project also provides a strong foundation for the
Surface Business over the next decade and will employ up
to 250 people.
Construction of infrastructure begins early next year, with
mining operations to commence in July 2012.
Tropicana:
fast facts
• Located 330km east-north-east of Kalgoorlie
• 10 year contract valued at about $900 million
• $125 million of mining fleet and
infrastructure to be purchased over three
years including:
• 14 x 793 trucks (240t)
• 2 x RH170 excavators (400t)
• 1 x RH200 excavator (520t)
• 3 x SKF15 drills
• A range of ancillary plant
• Production peak at an average of 60 million
tonnes per annum
• Mining operations to commence July 2012
• Employing up to 250 people
Photographs by Karl Schoemaker and used courtesy of AngloGold Ashanti Australia Ltd.
9
10
A significant
strength
Macmahon’s ability to deliver full
service, turnkey projects was given
a boost recently with the creation
of a dedicated Engineering
Business.
The new structure consolidates the Company’s
extensive engineering capabilities and will
provide a dedicated focus on capturing new
market opportunities for projects both above
and below ground.
Macmahon General Manager Engineering Gary
Fitzgerald said the new business unit would
more effectively market the Company’s full
service offering to its clients.
“While Macmahon has always maintained
strong engineering capabilities within the
organisation, these skills have previously been
centred on the Company’s Underground
operations,” he said.
“The creation of the Engineering Business will
consolidate Macmahon’s engineering skills and
will broaden their application to all areas of the
organisation.”
The Business incorporates Macmahon’s
Lonsdale Workshop in South Australia, where
fabrication work is completed.
The awarding of the $110 million CSA Mine
project in August represented the Engineering
Business’ first contract win and reflects the
potential for future development opportunities
for the division.
“Macmahon’s engineering capabilities
represent a significant strength and the new
structure will allow the Company to better
make use of these skills to attract projects such
as the CSA Mine contract,” Mr Fitzgerald said.
Ready to install: Macmahon Mechanical Engineer David Massey inspects
winders manufactured at the Lonsdale workshops in South Australia.
The Engineering Business will provide
mechanical and electrical engineering design,
fabrication and construction services and
together with Macmahon Mining Services will
deliver the CSA Mine project.
11
Taking an innovative
approach
Macmahon will construct
Australia’s deepest production
shaft as part of a $110 million
contract at the CSA Mine in
central New South Wales.
12
The 1550m shaft will form part of the underground works for the project,
which also involves mechanical, structural and electrical design, fabrication,
procurement and construction works.
Operated as a complete turnkey project, the contract represents a major
milestone for Macmahon as the largest ever single project undertaken by the
Company’s Engineering Business.
Engineering General Manager Gary Fitzgerald said the project, for Cobar
Management Pty Ltd, would draw on a collaborative style contract rarely used
in the mining industry.
“This innovative approach to the project will ensure the best use of
Macmahon’s broad ranging expertise while also delivering great value for the
client,” he said.
“Achieving solutions to create the deepest production shaft in Australia
reflects the technical excellence that will be applied across all aspects of the
project. The team will start by redeveloping an existing 1050m shaft on site,
before extending it an additional 500m below ground. The only other shaft of
a similar depth in Australia is broken into two stages, so this will be a national
first and result in much more efficient operations on site.”
The two year project will draw on a range of Macmahon’s capabilities,
demonstrating the Company’s ability to complete a range of tasks in a single
location.
Work has begun at the CSA Mine, with the contract scheduled to be
completed in 2013.
Macmahon in
New South Wales
Macmahon commenced open pit mining in
Muswell Brook, New South Wales in 1989. The
Company’s operations in the state further
expanded in 1991, with the construction of the
Mittagong bypass.
Today, Macmahon has a range of construction
and mining projects underway in New South
Wales, including:
• CSA Mine, for Cobar Management Pty Ltd
• Cadia gold and copper mine for Newcrest
• Pacific Highway Upgrade (as part of the
Glenugie Alliance) for the Roads and Traffic
Authority NSW
• Glenfield Transport Interchange (as part
of the Glenfield Alliance) for the Transport
Construction Authority
• ULAN Line Alliance rail project for Australian
Rail Track Corporation
• Copeton Dam Safety Upgrade for the State
Water Corporation
13
Winning work
for winning
results
The Northern Territory operations have gone from strength to strength since being added to Macmahon’s
business in 2005, with the local team taking a diversified approach to winning new work. Success in the
Northern Territory is dependent on the ability to continue to build and develop expertise across a range of
disciplines to secure the volume of work required to achieve strong performance.
The Northern Territory’s success has been
founded on its ability to attract a wide range
of works across the region’s construction
market. Whether it’s a fuel farm, waste
disposal facility or the Territory’s most
significant road construction project in
history, Macmahon has maintained a strong
presence in the country’s north.
NT General Manager Robert Wilson said the
strength of Macmahon’s local operations was
based on its people.
14
“Our people in the Northern Territory take
the approach that we can achieve anything
if we set our minds to it,” Robert said. When
we have an opportunity to work on a
new project, we actively pursue the skills,
capabilities and resources required to make
sure we win the work.”
The recent completion of the award winning
Hidden Valley Drag Strip was one example
where experts were called in from the United
States to help conduct the highly technical
concrete pour required. The project team
rotated Macmahon personnel through the
site to ensure as many employees as possible
could learn from the experts and enhance
their skills as part of the process.
“Due to the size of the market, we need to be
experts in as many aspects of construction as
we can and we work extremely hard to make
that possible. Our ever-growing skills base,
together with strong relationships with our
clients, are the secrets to our success.”
Key NT
Projects
Macmahon’s projects in the Northern
Territory highlight the diversity of projects
managed by the local team. Some of the
Territory’s key projects include:
• RAAF Base Darwin Fuel Farm
Development: The project, for the
Department of Defence, will see four
old fuel farms decommissioned to
create a single new jet fuel facility to
service visiting international and local
RAAF aircraft
• Shoal Bay Landfill: The management of
a waste management facility servicing
the Darwin area, including the sale of
mulch products as part of the site’s
recycling program
• Tiger Brennan Drive Extension Stage
3: Currently underway following the
successful completion of stages one
and two of the extension, which is
the Northern Territory Government’s
largest ever road infrastructure project.
• Larrakeyah Gravity Sewer: A major
project involving tunnel boring
underneath Darwin to upgrade the
city’s sewage system
• Larrakia Trade School: Construction of
the new trade training centre for the
Larrakia people, the Traditional Owners
of Darwin
15
Tiger Brennan:
Macmahon’s
top project
A landmark gateway to Darwin, the
Tiger Brennan Drive Expansion, is a vital
infrastructure link to the city’s East Arm Port.
After completing the first two stages of the
project, Macmahon is currently undertaking
works on the third and final stage to deliver
what has grown to be the Northern Territory
Government’s largest ever roadworks
project.
Stage two of the extension was named
the 2011 Project of the Year at the Brian
Macmahon Awards in recognition of the
outstanding project performance across
all aspects of the design and construction
process.
The second stage included the design and
construction of a 7.5km dual carriageway
highway and a grade separated free flow
interchange, including two bridges and
one pedestrian bridge. Artworks and
landscaping incorporated into the project
design formed a vibrant entry statement to
the Darwin city centre, further highlighting
the project’s iconic status in the region.
Achieving an outstanding safety
performance across the project, the industry
‘best practice’ construction method utilised
ensured each stage of the project was
delivered within the required timeframe and
incorporated a strong focus on involving the
community in the project’s progress.
Stage three is currently underway and
includes the construction of an overpass
over the Alice Springs-Darwin railway to
eliminate traffic disruptions on Berrimah
Road and improve vehicle access to the
Darwin Business Park at East Arm Port.
16
MACMAHON
MAGAZINE
Annual General Meeting 2011
Special
feature
Welcome to the special edition AGM feature. The
following pages provide a snapshot of Macmahon’s
operations as at October 31, 2011.
With several, significant new projects secured since
the start of the Financial Year and a strong market
outlook, the future looks bright for Macmahon. This
special edition liftout highlights the strength of the
order book, the outstanding performance of the
Company in the first quarter of the Financial Year
and the market conditions that point to a strong
pipeline of work for the future.
17
Annual General Meeting 2011 Special feature
3500
Order book
3000
2500
2000
3,100
1500
1000
2,006
2,215
2,138
2,013
1,400
1,412
500
0
2007
2008
2009
2010
2011
Oct 11
2012 run-off
“The start of this
Financial Year has
been very successful
on the work
winning front. We
have secured some
$1.4 billion of new
work in only four
months, which is an
unprecedented record
for Macmahon.”
Continuous growth
Pilbara ISA
$170m over 5
years
Tavan Tolgoi
Coal Mine
$500m over first
5 years
31 October
$3.1b
CSA Mine
$110m
Order book
Mining contracts
totalling $90m
Tropicana Gold
Project
$900m over
10 years
1 July
$2b
15 July
2011
Work
won
18
12 August
2011
19 August
2011
1 September
2011
31 October
2011
A raft of new project wins in the first four months of the 2011-12 Financial Year has led to
Macmahon achieving a record order book of $3.1 billion. This included $1.4 billion of work secured
for the Financial Year.
The strong start to the Financial Year reflects the Company’s diversity of operations, with the new
projects spread across a range of locations and a range of commodity sectors. The diversity of the
work won demonstrates a growing focus on delivering a sustainable business model to underpin
the Company’s future success.
Diversified
clientbase
base
Diversifiedblue-chip
blue-chip client
Other
Newmont
4%
2%
Glencore
Peabody
Santos/ 4%
AngloGold/
2%
Petronas
Independence
4%
30%
Yancoal
4%
Order book:
Lafarge
5%
$3.0bn
(Sep 11)
Rio Tinto
9%
BHP Billiton
12%
Government
24%
Diversified
exposure
Diversifiedcommodity
commodity exposure
Other
2%
Diamonds LNG
5%
4%
Limestone
6%
Coal
6%
Gold
31%
Order book:
$3.0bn
Copper
7%
(Sep 11)
Iron Ore
15%
Government
24%
Diversified geographic
geographic footprint
Diversified
footprint
SA
9%
NSW
10%
NT TAS
2% 0%
VIC
1%
Diversifiedcontract
contract styles
Diversified
styles
Order book:
$3.0bn
Int'l
10%
Cost
Alliance
Plus
7%
4%
(Sep 11)
WA
57%
Fixed
8%
QLD
11%
Lump sum /
SOR
17%
Order book:
$3.0bn
Schedule of
rates
(SOR)
34%
(Sep 11)
Alliance/SOR
30%
“Overall, we are extremely positive about 2012 and are committed
to delivering improved returns to our shareholders. The hard work
of 2011 is showing results and our people are ready to seize the
opportunities that exist in the market.”
19
Kanthan
Rawang
Lhoknga
Tiger Brennan Drive
NIGERIA
Road works - NT Government
Darwin, NT
Calabar Ewekoro
Quarry Quarry
Argyle
Diamond mine - Rio Tinto
Kimberley Region, WA
Rio Tinto 333 Programme
RUSSIA
MONGOLIA
CHINA
Tavan Tolgoi
Coal Mine
INDIA
Hong Kong
XRL Tunnel
MALAYSIA
Hope Downs 4 - rail earthworks
and bridge construction
Cape Lambert - Port B
development bridge works
Cape Lambert - Port A
sustaining works, earthworks, roads
Pilbara Logistics JV
Solomon
Orebody 18 / Wheelara
Iron ore mine - BHP Billiton
Newman, WA
Tropicana
Karara Rail
Great Eastern
Roe Interchange
Boddington
Gold mine - AngloGold Ashanti
Goldfields Region, WA
Olympic Dam
Uranium mine - BHP Billiton
Olympic Dam, SA
Map of operations
20
T
Lan
MINING PROJECT
CONSTRUCTION PROJECT
PREFERRED CONTRACTOR
George Fisher
Zinc mine - Xstrata
Mt Isa, QLD
Eaglefield
Coal mine - Peabody Energy
Bowen Basin, QLD
Shoal Bay Waste Plant
RAAF Base Darwin Fuel Farm
Gladstone LNG
Site civil works - Bechtel Australia
Curtis Island, QLD
Savannah
Cameby Downs
Coal mine - Yancoal Australia
Surat Basin, QLD
Goonyella Abbot Point Expansion
Wyaralong Dam
Construction works - QLD Water
Logan River Catchment, QLD
Tropicana
Perilya Broken Hill
Pacific Highway
CSA Mine
Ulan Line Alliance
nfranchi
Cadia
Gold/Copper mine - Newcrest
Orange, NSW
Glenfield Alliance
South Road Superway
Elevated road works - DTEI
Adelaide, SA
Blowering Dam
Jindabyne Dam
Waihi Gold Mine
Gold mine - Newmont
Waihi, NZ
Renison
Tin mine - Metals X
Tasmania
As at December 1, 2011
21
People
5000
>40% growth
4000
People remain the key to Macmahon’s
success. The rapid growth of the Company
means attracting and retaining the right
people is now more important than ever
before.
3000
5,000
2000
3,628
3,037
3,098
3,021
June 09
June 10
3,536
1000
0
June 07
June 08
June 11
Safety
15
12.9
12.7
June 12
forecast
TRIFR (Total Recordable Injury Frequency Rate)
12
On October 31, Macmahon had about
3800 direct employees. It is expected this
will rise to 5000 by the end of June 2012,
representing a 40 per cent increase since
the end of the 2011 Financial Year. A range
of recruitment and retention initiatives have
been implemented to support this growth.
LTIFR (Lost Time Injury Frequency Rate)
9
7.4
6
4.6
3.5
3
1.9
2.0
0.8
0
June 07
safety
22
June 10
June 11
50,000
Construction
Mining
Maintenance
20,000
10,000
2015e
2014e
2013e
2012e
2011e
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
0
2016e
Source: BIS Shrapnel, Mining in Australia 2011 - 2016
30,000
1998
A$millions
40,000
1997
People and
June 09
0.2
Contract service sector outlook
60,000
Of course, the safety of our people is also
essential. As a core value of Macmahon,
safety remains the first priority for every
person working with the Company. The 2011
Financial Year saw record safety performance
across the Company, an industry leading
result. Macmahon is now focused on
ensuring the strong safety approach for
which the Company is known continues
across its operations.
June 08
0.4
“We know that maintaining a strong, values based culture is an
important consideration for our people and that part of the appeal of
working for Macmahon is the ability to work in diverse roles, in different
locations and realise new opportunities within the Company.”
Strong demand for Australian iron ore expected to
continue, with volume growth c.7% CAGR (2010-16F)
350
25
Volume (mt)
20
250
200
15
150
10
100
5
50
0
Export value (A$bn)
300
0
'09A
'10A
'11A
Export volume
'12A
'13A
'14A
Domestic volume
'15A
'16A
Export value
700
600
500
400
300
200
100
0
70
60
50
40
30
20
10
0
'09A
'10A
'11A
Export volume
'12A
'13A
'14A
Domestic volume
'15A
Export value (A$bn)
Volume (mt)
Similarly, Australian thermal coal exports are forecast to
grow c.10% CAGR (2010-16F)
'16A
Export value
“Overall, the outlook
is very positive for
Macmahon. With the
contract wins of recent
months already starting
to come on line and
further opportunities
ahead, there is a strong
pipeline of work for the
year ahead and a clear
opportunity for the
growth.”
(A$m)
Robust demand justifying significant levels of fixed capital
investment, weighted towards coal, iron, O&G
70
60
50
40
30
20
10
0
In 2011, contract mining services
contributed $32.7 billion to the Australian
mining sector. It is expected this figure will
grow to more than $50 billion by 2015/16.
'09A
'10A
Coal
'11A
'12A
Oil & Gas
'13A
'14A
Iron ore
'15A
'16A
Other
(A$bn)
Government investment and mining sector expansion
driving large infrastructure spend
40
35
30
25
20
15
10
5
0
'09A
Roads
'10A
Railways
'11F
Ports
'12F
'13F
Power plants
'14F
'15F
Pipelines
The continued high demand for
commodities in Australia is feeding strong
demand for contract mining services,
indicating a positive outlook for Macmahon
in future years. Construction works
associated with the resources sector are also
delivering strong opportunities for growth
over the next 12 months and beyond.
Outlook
'16F
Water
23
Macmahon
is proud to
partner with
its clients for
outstanding
results
24
Beacon of
hope
A new partnership is taking
Macmahon’s Company values
beyond the organisation and into
the community.
The Company recently announced a four year, $100,000 partnership with the
Salvation Army’s Doorways of Hope campaign, a major initiative on homelessness,
emergency accommodation and substance addiction.
As an organisation known for helping those in need throughout Australia, the
Salvation Army was an obvious choice for Macmahon to partner with.
The $30 million Doorways of Hope campaign is the largest initiative in the history
of the Salvation Army in Western Australia and will see its homeless outreach
become one of the most comprehensive services in the country.
The Salvos’ recently unveiled the new name for the Lentara, an
existing homeless men’s shelter that will be demolished and rebuilt
as part of the campaign.
Now to be known as ‘The Beacon’, the new centre will house
104 residents in graduated levels of accommodation to
provide different living arrangements as clients move from
homelessness to independence.
Macmahon’s partnership with the Salvation Army
will help provide the necessary resources to
help those affected by homelessness in Western
Australia.
The partnership reflects Macmahon’s strong
commitment to supporting communities
in the areas in which it operates through
arrangements that contribute to the health,
safety and vitality of the places its people live
and work.
Have hope: Salvation Army
Divisional Commander Major
Dennis Rowe (right) thanks
Macmahon Chief Executive Officer
Nick Bowen for the Company’s
contribution to the ‘Doorways of
Hope’ campaign which includes
the building of ‘The Beacon’,
pictured above.
25
Brian Macmahon
Awards
The Northern Territory’s Tiger Brennan Drive Extension won the
coveted Project of the Year Award, edging out a highly competitive
field to take the prize.
The project was recognised for its outstanding performance across
all its operations, from tendering for the contract to undertaking
design and construction and implementing client management and
community engagement strategies.
The success of the project, completed for the Northern Territory
Government, across all these areas of operation ensured it was a strong
contender for the major award.
26
The second annual Brian
Macmahon Awards were held
in September to recognise the
Company’s projects that best
demonstrate excellence across
all aspects of their operations.
Other award winners on the evening were:
• Business Excellence Award: Nepean River Weirs Environmental
Flow Release and Fish Passage, New South Wales
• Technical Excellence Award: Orebody 18 / Wheelarra
Conveyor Maintenance System, Western Australia
• HSEQ Excellence Award: Eaglefield, Queensland
• Outstanding Individual Award: Ron Florance
The Brian Macmahon Awards were created in 2010 in honour of the
Company founder Brian Macmahon and celebrate the organisation’s
highest achieving projects.
A significant influence:
Ron Florance (centre) with
Lysanne Macmahon and
CEO Nick Bowen.
Winners are grinners: Macmahon Deputy Chairman Barry Cusack (left)
and Macmahon CEO Nick Bowen (far right) with the Northern Territory
Construction team of George Lavercombe, Graham Gust, Robert Wilson,
Chris Pick, Ted Stanton, Michelle Garling and Tony Kruger following Tiger
Brennan Drive Extension’s reception of the Brian Macmahon Project of the
Year Award.
Outstanding individual
Business success: NSW Construction Manager Jim Koukoutaris and Nepean
River Weir Senior Project Manager Chris Fenner (centre) are congratulated
on their win by Executive General Manager Strategy and Development
Ashley Mason (left) and Macmahon Board Director Vyril Vella (right).
Ron Florance
Since starting his career with the Company in 1989,
Ron Florance has become a significant figure within
Macmahon’s Underground Business.
During an extended tenure working at Olympic Dam in
South Australia, Ron was responsible for growing one of the
Underground Business’ most significant projects, while also
helping shape the next generation of leadership within the
Company.
His reputation for hard work and th essential mentoring role he
has taken on during his time with the Company led to Ron being
awarded the 2011 Outstanding Individual Award.
Technical excellence: Orebody 18 OHP Planner Scott Glover and OHP
Manager Ryan Carter (centre) were presented with their award by Chief
Operating Officer - Mining Ross Carroll and Macmahon Board Director
David Smith.
Macmahon Chief Executive Officer Nick Bowen commended Ron
on the tremendous personal contribution he has made to the
Company.
“Many of our Underground management team were mentored by
Ron during their early years with the Company and his personal
commitment to their development has ensured the Business
continues to thrive under the stewardship of those people he
mentored,” he said.
“Their achievements reflect Ron’s own success and it was a
privilege to recognise someone that so ably embodies our
Company values through this award.”
Winning safety record: Eaglefield Project Manager John Anger (centre)
receives his award from Executive General Manager HSEQ Neil Wilson and
Macmahon Board Director Barry Ford.
Ron continues to mentor graduates and managers within the
Underground Business, while also identifying ways to achieve
operational improvements.
27
Building
biodiversity
A construction project that’s good for the environment?
Look at the results achieved on the Nepean River Weirs
Environmental Flow Release and Fish Passage project and
that’s exactly what you’ll find.
28
The project, completed earlier this year,
saw the creation of new fish ladders at 10
weirs along New South Wales’ Nepean River,
increasing the biodiversity of the river system.
project team had to apply a range of technical
innovations to create new infrastructure to
improve the movement of fish stocks through
the river system.
the client, the NSW Government’s Sydney
Catchment Authority, can now assess the
health of the river on an ongoing basis in
order to maintain its sustainability over time.
The project recently won a Civil Contractors
Federation Earth Award in NSW for its success
in delivering environmental benefits to the
river system.
Monitoring of fish has shown the resulting
increase in movement between weirs, has
boosted the biodiversity of the river system and
creating a stronger environmental future for the
Nepean River.
The success of the project highlights
Macmahon’s growing credentials in the
water sector and reflects the Company’s
commitment to tailoring design solutions to
meet the unique challenges of every project.
Working at 10 vastly different weirs – some of
which were subject to heritage listings – the
The monitoring and control systems
implemented as part of the project will ensure
29
30
Getting it
done
The placement of bridge beams at the
Great Eastern Highway – Roe Highway
Interchange (GERI) project in Western
Australia wasn’t a job for the faint
hearted, with a 500 tonne crane brought
in for the task.
A total of 10 concrete beams, each weighing
87 tonnes, were erected at the site in August,
marking a significant milestone in the project
which will dramatically improve road safety
at the identified black spot location.
WA Transport Minister Troy Buswell said the
positioning of the beams was an important
milestone for the project.
“This much-needed project … will greatly
enhance safety for all road users and improve
traffic efficiency on all roads in the area,”
Minister Buswell said.
Macmahon is responsible for the design and
construction of the project which is being
delivered for Main Roads WA.
With more than 60,000 vehicles passing the
site each day and that number expected to
rise to 106,000 by 2031, the project is a key
initiative for managing congestion and road
safety issues for many years to come.
The new interchange will form part of the
metropolitan outer ring road to link major
industrial and commercial centres and is
scheduled for completion in May 2012.
Big lift: The placement of the bridge beams
required the use of 500 tonne cranes. The
project is due for completion in May 2012.
31
Around the
clock
32
An earthworks operation that rivals the scale of
a mining project can be challenging enough.
When those earthworks are being conducted
on an island, with quarry products being
transported day and night by barge,
it becomes even more difficult.
Macmahon is managing this complex challenge as part of
its civil works subcontract on Curtis Island in Queensland
for Bechetel Australia. Part of the Gladstone LNG project,
the contract includes clearing, bulk earthworks, pavements,
roads and drainage for a 144 hectare greenfield site on the
south west side of the island which is located off the coast of
Gladstone.
The project team has already completed its first one million
cubic metres of earthworks, with the finished project to see a
total of 3.9 million cubic metres moved.
With vegetation clearing now complete, 120 pieces of
equipment have been mobilised to undertake the huge task
of shifting 25,000 cubic metres of earth per day.
A 72m barge with two tugs is working around the clock to
transport 1500 tonnes of quarry products to the site every
day, an essential part of keeping the project on track.
The scale of the earthworks is nearing that of a mining
operation, with the peak workforce of 220 people now in
place to help meet the challenge.
The project is scheduled for completion in late 2012.
33
Start of something big:
Mongolia
The newly emerging mining
industry in Mongolia represents
big projects and big potential.
Macmahon’s contract to deliver large scale
open cut coal mining operations at the Tavan
Tolgoi Coal Mine confirms the Company’s
place amidst the growing opportunities the
country has to offer.
Macmahon Chief Executive Officer Nick
Bowen said the project, valued in excess of
$500 million, was a great milestone for the
Company.
34
“Mongolia is a very exciting place to be at
the moment and this project places us right
at the forefront of an industry that has huge
potential for growth,” he said.
Located 540km south of Ulaanbaatar and
owned by the state-owned Erdenes Tavan
Tolgoi JSC, the site is part of the largest coal
deposit in Mongolia.
“The size of this project, as well as the
region’s potential for growth, makes it an
extremely important win for the Company.
Macmahon will commence operations
at the site early in 2012, with an initial
annual production of three million tonnes.
Production will build further in the following
years, as the entire mine and transport
infrastructure is established.
“Our international operations are now an
increasingly important part of our business,
with the win in Mongolia adding to our
existing operations in Nigeria, Malaysia,
Indonesia and New Zealand.”
The project will be delivered in joint venture
with Germany’s Operta GmbH.
Mongolia:
fast facts
• Mongolia has estimated potential coal
reserves of 100 billion metric tonnes
• Mongolia borders with China, the world’s
largest coal consumer
• Tavan Tolgoi deposit has more than
5 billion metric tonnes of coal
• Tavan Tolgoi deposit spans about 90km2
• Mongolia’s temperature ranges from an
average of 20oC in summer to an average
of -20oC in winter
Big potential: Work will commence at Mongolia’s Tavan Tolgoi Coal Mine in January. On the
ground (below right): visiting the Tavan Tolgoi operations earlier in the year were (in orange
vests) Macmahon Executive General Manager International Stewart Maddison, Executive
General Manager HSEQ Neil Wilson and BBM Operta Head of Legal Department Dirk Mahler.
35
Repeat
business
Building a strong international
business requires proven success in
delivering exceptional results,
no matter where the project is.
Macmahon’s recent success in securing its
fifth limestone quarry contract, adding to
its operations across Malaysia, Indonesia
and Nigeria shows the Company is doing
just that.
The latest contract win near Calabar
in Nigeria, was in part the result of
Macmahon’s strong performance at
Ewekoro, the first quarry operation secured in
Nigeria in early 2010.
The seven year project will see Macmahon undertake quarrying in
Mfamosing, 40km north east of Calabar, with work due to commence
in January.
The project will be delivered for the United Cement Company of
Nigeria Limited (UniCem), a joint venture between Lafarge, Holcim
and Flour Mills of Nigeria.
All of Macmahon’s overseas quarry contracts are undertaken for
Lafarge or an associated company, proving that success on each and
every project is making a vital contribution to the Company’s overall
international growth.
However, much of the credit for winning the contract rests with all
the Macmahon employees across the existing quarry operations in
Nigeria, Malaysia and Indonesia.
Their efforts contributed to Macmahon’s strong reputation for
performance that lead to the Company securing the Calabar contract.
The ability to achieve outstanding results at each site has enabled
Macmahon to grow in alignment with Lafarge, the world’s largest
cement producer.
The Calabar contract provides Macmahon with an increased presence
in Nigeria and provides a solid foundation for further expansion in
West Africa.
36
Argyle Underground:
fast facts
• Started in November 2006
• 310 people working on the project
The secret to
success
• Scope of work includes raisedrilling, shaft
sinking, infrastructure construction and drilling
• Due for completion 2013
The ability to deliver projects
over the long term and achieve
ongoing improvements along
the way, are key to Macmahon’s
sustainability.
The Company’s underground operations
at Argyle Diamond Mine are one example
of the successful projects that provide the
foundation for the organisation.
Macmahon recently completed 25km
of lateral development at the Argyle
Underground operation and has also
celebrated five years at the site.
General Manager Underground
Operations Greg Peden said the secret
to Macmahon’s success at Argyle was its
ability to complete a range of tasks on site.
“We have drawn on a whole range of our
capabilities to deliver on what the client
requires and ensure we are meeting their
evolving needs,” he said.
“This has led to a highly productive
relationship with the client over our five
years on site,” he said.
The range of tasks undertaken by the
project team included major excavations
up to 15m high and 10m wide, and work
in the block cave orebody.
37
Keeping
contact
Sometimes, one of the most
challenging aspects of a major
construction project does not
involve the tools.
Minimising the impacts on neighbouring
businesses and residents while keeping
the project on track can be a significant
undertaking. The South Road Urban Superway,
being developed by Macmahon in joint
venture with John Holland and Leed in South
Australia, is one such project.
There are 98 businesses located along the
work area on South Road, in addition to 1000
businesses with 15,000 employees and two
residential areas impacted by the project
construction in some way.
Macmahon’s Justine Voigt is Stakeholder
Manager for the project and said regular
communication was vital to ensure residents
and businesses were not adversely affected by
works underway.
“This project runs through the industrial
heart of Adelaide and there has been a major
focus from the beginning to ensure we are in
regular contact with those directly affected by
construction works,” Ms Voigt said.
“We’ve been very proactive with businesses
and residents to ensure they know what work
will be happening outside their front door
before it takes place.
38
“The main issues are to do with access and
general traffic management and we work very
hard to make sure businesses can continue to
operate as works progress.”
Personal visits to businesses are
complemented by email and SMS
communications to keep those affected up to
date with any activities that may impact them.
“Where there may be an impact, we work
with the business owners to identify the most
convenient time to carry out major works or
negotiate alternative solutions where this is
not possible.”
The success of the stakeholder management
process rests in keeping those neighbouring the
work area informed of activities and ensuring
the project team are aware of the need to
consider potential impacts on surrounding areas
when undertaking major works.
The project will upgrade South Road in
Adelaide from the Port River Expressway to
Regency Road and includes the construction
of a 2.8km elevated roadway. The project is
scheduled for completion in late 2013.
Building relationships: Justine Voigt
(main picture) ensures local residents and
business owners stay informed while work
at the site (inset) continues.
Pilbara ISA:
building on
experience
With the rapid expansion of the Pilbara
region cementing its place as an economic
powerhouse for Australia, ensuring a strong
road network is more vital than ever before.
Main Roads WA recently awarded the Integrated
Service Arrangement (ISA) for the Pilbara to
Macmahon for the management of maintenance
across the region’s important road network. Over the
next five years, the project will include operational
asset management, maintenance delivery, capital
works and project and contract management
services.
Covering 2276km of road network and 104 bridges,
the $170 million project furthers Macmahon’s long
term relationship with Main Roads WA.
The project builds on The Company’s already long
term presence in the Pilbara and will play a critical role
in maintaining key road transport corridors in the ever
expanding region.
With 15 years’ experience managing road
maintenance works in the Goldfields and a track
record in delivering major capital works projects for
Main Roads WA, Macmahon is well placed to deliver
this essential service in the Pilbara.
The five year contract commenced in September,
with an opportunity to extend the agreement based
on performance at the end of that period.
39
Your project, our people -
exceptional results
Macmahon continues to capture new opportunities and grow.
As a leading contract mining and construction company, Macmahon has
operations across Australia and an expanding international footprint.
Having built strong relationships with some of the world’s largest
resources companies and government sector clients, Macmahon
has delivered many of Australia’s largest multi-disciplinary mining and
construction projects throughout its 48 year history.
Currently Macmahon directly employs more than 4000 people.
Macmahon offers the full range of underground and surface mining
services and comprehensive construction capabilities spanning transport,
marine, water and resource infrastructure services.
www.macmahon.com.au

Growing our people

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