This Feature
Transcription
This Feature
CELEBRATING 20 YEARS | SEPT/OCT 2015 COLLABORATION MODEL Boss: Atlas Iron is focused on thriving MAGNETITE ORE Prediction for market growth CASE STUDY KCGM emissions reduction project STATE VS STATE Cajoling for exploration dollars TRUE RRP $4.40 (GST included) BELIEVER FORTY-YEAR VETERAN DR ERICA SMYTH KNOWS THE MARKET WILL TURN, BUT IN THIS SHIFTING LANDSCAPE SMART LEADERSHIP IS KEY CUSTOM DESIGN, DESIGN, ENGINEERING ENGINEERING AND AND MANUFACTURING MANUFACTURING CUSTOM FOR THE THE MINING MINING INDUSTRY INDUSTRY FOR Whether it it be be a a new new or or refurbished refurbished excavator excavator bucket, bucket, water water cart cart or or service service module, module, G&G G&G work work closely closely with with Whether clients to to address address any any challenges challenges that that may may arise arise and and provide provide custom custom solutions solutions to to your your individual individual requirements. requirements. clients All products products are are designed designed by by our our experienced experienced engineering engineering team team to to suit suit our our clients clients needs needs maximising maximising the the All potential for for projected projected targets. targets. Visit Visit ggminingfab.com ggminingfab.com for for more more information. information. potential 311 Stirling Stirling Crescent, Crescent, Hazelmere Hazelmere WA WA •• Phone: Phone: 08 08 6258 6258 3333 3333 •• E-mail: E-mail: [email protected] [email protected] •• ggminingfab.com ggminingfab.com 311 WEAR PARTS PARTS FOR FOR WEAR LONGER LIFETIME LIFETIME AND AND LONGER HIGHER PERFORMANCE PERFORMANCE HIGHER We are are happy happy to to introduce introduce the the WRC WRC System System®® in in We Australia with with our our range range of of Hardox Hardox Wear Wear Liners. Liners. Australia enables a a higher higher utilization utilization of of The WRC WRC System System®® enables The your Wear Wear Liners, Liners, reduces reduces the the risk risk of of wear wear parts parts your loosening due due to to worn-out worn-out bolt bolt heads heads and and enables enables loosening easy installation with simple tools from the wear side. side. easy installation with simple tools from the wear Hardox Wearparts Wearparts Centre Centre Perth Perth are are your your local local Hardox experts when when it it comes comes to to custom custom manufactured manufactured experts wear parts from the range of Hardox wear plates. plates. wear parts from the range of Hardox wear Rebuilt Liners, Wear Wear Bars, Bars, Cutting Cutting Edges, Edges, BluPoint BluPoint®® Rebuilt Liners, GET, Hammers, Hammers, Skirts, Skirts, Blades, Blades, Blow Blow Bars, Bars, Grizzly Grizzly Bars Bars GET, and more. more. and HARDOX. THE THE NAME NAME FOR FOR HARDOX. EXTREME PERFORMANCE PERFORMANCE EXTREME IN ANY ANY LANGUAGE. LANGUAGE. IN hardoxwearparts.com/perth hardoxwearparts.com/perth Visit hardoxwearparts.com/perth hardoxwearparts.com/perth for for more more Visit information or or give give us us a a call call on on 1300 1300 447 447 558 558 information IN THIS ISSUE... www.ddh1.com.au P18 P10 CONTENTS INDUSTRY INSIGHT 4 COVER STORY6 DR ERICA SMYTH ABN 98 008 667 632 GPO Box D162 Perth WA 6840 Phone +61 8 9482 3938 Contact us [email protected] www.myresources.com.au BUSINESS MODEL 10 STATE VS STATE 14 CASE STUDY 18 COAL MINING 22 MAKING NEWS 24 SPOTLIGHT ON MAGNETITE ORE 26 LOOKING BACK: BROKEN HILL 28 MAKING NEWS 30 CRUSHING AND SCREENING 32 MINE SAFETY 34 Printed by Vanguard Press INDIGENOUS EMPLOYMENT 36 Next issue November/December 2015 TRAINING AND EDUCATION 38 PEOPLE AND PROJECTS 42 BUSINESS DIARY 44 OUT AND ABOUT 46 Editor Louise Allan [email protected] National Sales Manager Dane Chandler Sales Executive Andrew Bowyer +61 8 9482 3933 [email protected] Studio Manager Jodie Palmer Journalists Bianca Bartucciotto, Laura Galic, Kaitlin Shawcross Subeditor Kirsten Hyam Designer Gemma Medforth Advertising Coordinator Kristina Paternoster Cover Photo Dr Erica Smyth. Image: AMEC The copyright is vested in the Proprietors of The Mining Chronicle; neither whole nor any part of this issue may be reproduced without permission. P26 DISCLAIMER The views expressed in this publication are not necessarily those of The West Australian, but are those of the respective author who accept sole responsibility and liability for them. NOTICE TO ADVERTISERS The Australian Consumer Law (ACL) came into force on 1 January 2011. There are important provisions in that Act which contain strict regulations on advertising and all advertisers and advertising agents are advised to study those provisions very carefully. It can be an offence for anyone to engage, in trade or commerce, in conduct “misleading or deceptive”. In particular Section 53 contains prohibitions from doing any of the following in connection with the promotion, by any means, of the supply or use of goods or services: (a) Falsely represent that goods or services are of a particular standard, quality or grade, or that goods are of a particular style or model; (b) Falsely represent that goods are new; (c) Represent that goods or services have sponsorship, approval, performance characteristics, accessories, uses or benefits they do not have; (d) Represent that he, she or it has a sponsorship approval or affiliation he, she or it does not have; (e) Make false or misleading statements concerning the existence of, or amount of, price reductions; (f) Make false or misleading statements concerning the need for any goods, services, replacements or repairs; (g) Make false or misleading statements concerning the existence or effect of any warranty or guarantee. PENALTIES For an individual – $10,000 or six months imprisonment. For a corporation – $50,000. It is not possible for this company to ensure that advertisements which are published in this newspaper comply with the Act and the responsibility must therefore be on the person, company or advertising agency submitting the advertisements for publication. In case of doubt consult your lawyer. Average Net Distribution April 2012 - March 2013 | 5112 copies SPECIALISED HEAVY LIFT & TRANSPORT SOLUTIONS • Providing equipment and personnel for heavy lift and transport projects • Associated support with servicing, maintenance, engineering & rigging design [email protected] | www.lampson.com.au | (02) 4959 6222 4 A capital (raising) idea BY LAURA GALIC Tough would be the most appropriate word to describe the current climate for capital raising within the junior resources sector. With investors weary of market conditions it has never been more difficult for juniors to raise substantial capital to explore, identify, construct and operate mines. According to Australian Mines and Metals Association Senior Industry Policy Advisor Tristan Menalda, during the first seven months of 2015 there was not one junior mining company that floated on the ASX. “However, if you go back to 2009, investors have championed over 270 new junior resources floats on the ASX,” he said. Hartleys Director for Corporate Finance Dale Bryan said it was never possible to pick the bottom of a market, but there was encouragement the tide may be turning for resources stocks, given the strong M&A activity that had emerged in the space, the increasing private equity investment into resources companies, the tightening of supply across a number of commodities and the compelling valuation metrics across the sector. “The falling Australian dollar is also helping companies with assets in Australia, given revenue is USD denominated,” he said. “Market sentiment and activity are best in a rising market, even better than at the top of the market. Tristan Menalda believed macro and micro economic reforms were essential to boost investment. “One thing is for certain, with the weakness in the resources sector over the last few years, plenty of headroom has been created for a rising market. This is often the time in the cycle of maximum financial opportunity.” Mr Bryan said there were ways juniors could overcome the challenges of raising capital in a difficult market and it came down to implementing key essentials that could attract potential investors. “Obviously a quality project and quality management is essential,” he said. “To most effectively tap into that funding and to maximise a company’s longer term funding certainty, a clearly defined and executed capital markets strategy is a must. “Key elements of this capital markets strategy include the involvement of a well-regarded corporate advisor and broker and equity research that can assist in communicating the investment proposition. “Maintaining market profile through targetted marketing to investors is also critical, as well as building relationships with key investors who can support your company over the longer term.” Deloitte National Mining Leader (West) Nicki Ivory agreed and said although the current climate for capital raising was tough, it was not impossible. “There is money available for good projects, even in the junior sector, but what funders are looking for is the quality of the projects and the quality of the management/board,” she said. “There is no space for marginal projects and management need to have a realistic view of the project’s value, its bankability and balancing different stakeholders’ outcomes.” HEAVY DUTY GRID ROLLER GET YOUR ROCKS OFF TIP HEADS AND PIT FLOORS HIRE NOW - 08 82681988 [email protected] www.broons.com INDUSTRY INSIGHT debt against the company’s assets, offering convertible notes or raise equity with a follow-on offering,” Mr Menalda said. Dale Bryan said quality projects and management were key to attracting potential funding. In many circumstances traditional sources of capital raising might not be available to juniors, therefore they would have to turn towards alternative investments such as sovereign funds, private equity, hedge funds and other sophisticated investors. “The days of doing a big capital raising on the stock exchange and almost blindly taking people’s money are sort of limited,” Ms Ivory said. “There will still be some capital raised obviously on the stock exchange, but companies are having to cast their net a bit wider.” With this in mind, the industry is seeing cashconstrained juniors implementing various alternative capital raising strategies. “With access to international debt capital markets being restricted to borrowers with strong equity valuations and balance sheets (thereby bypassing many junior and some mid-tier miners), emerging trends are for juniors to offer bonds with higher coupon rates with some that secure the “Alternatively, miners have enacted strategies of engaging into profit-sharing agreements with major construction and logistic companies, where they receive a percentage entitlement of applicable positive net operating cash flows in exchange for investment (shares/cash/lower contracting rates) in the company. “With depressed commodity prices likely to remain for the near term, we expect to see an increase in joint ventures as mining companies, including juniors, realise synergies and cost savings. “In addition we expect there to be more acquisitions as Asian buyers and major mining houses acquire quality assets at bargain basement prices to secure supply in response to projected greater demand for commodities as a result of a rising middle-class in Asia, higher rates of urbanisation and comparatively strong GDP growth in our major trading partners.” 5 “The right funding mix is different for all companies, depending on their unique circumstances, and we enjoy working with companies in assisting them to identify the right funding mix and successfully execute their capital raisings.” Apart from mining companies doing all they could to attract investment (showcasing their high-quality resource and reserves, sustainable mine optimisation model, rightsizing their business, optimising productivity, minimising all but essential spend and displaying strong corporate governance), Mr Menalda said macro and micro economic reforms were vital to boost investment. “For example, modest changes to the workplace relations framework which has been modelled by KPMG’s 2015 report Workplace Relations and the Competitiveness of the Australian Resources Sector, suggests that minor reforms could result in increased investment in the resources sector of up to eight per cent,” he said. “This could be the difference between a mine in Australia or a mine in Canada receiving foreign investment capital.” Even in poor market conditions over the past two years, Hartleys has undertaken over 50 equity raisings for its resources and energy clients, raising in the order of $750 million to finance exploration, development and production. Companies range in size and every stage of the development cycle, from Sirius Resources and Ironbark Zinc to Emmerson Resources. “In our experience, given the cyclical nature of commodity prices, particularly in the current volatile commodity price environment, the preferred capital raising methodology is typically by way of equity issue, whether through placement, SPP, right issue or a combination of these,” Mr Bryan said. Nicki Ivory assured money was still available for worthy projects. DESIGNED IN AUSTRALIA, DESIGNED IN AUSTRALIA, MADE IN AUSTRALIA, MADE IN AUSTRALIA, FOR FOR AUSTRALIA AUSTRALIA That’s the Century difference! That’s the Century difference! CB123-1662 For more information on our range of market leading products and For more information on our range of market leading products and services contact your Century Batteries specialist on 1300 362 287 services contact your Century Batteries specialist on 1300 362 287 or visit www.centurybatteries.com.au or visit www.centurybatteries.com.au CB123-1662 If you want proven performance, ultra reliability and less down time, If you want proven performance, ultra reliability and less down time, Century Batteries are the solution. Designed and manufactured Century Batteries are the solution. Designed and manufactured right here in Australia, they incorporate advanced design features, right here in Australia, they incorporate advanced design features, specialist hardwearing components and over 86 years of Australian specialist hardwearing components and over 86 years of Australian manufacturing and technical expertise to deliver longer life and manufacturing and technical expertise to deliver longer life and ultra reliability in the harshest of operating environments. ultra reliability in the harshest of operating environments. 6 Trailblazer BY BIANCA BARTUCCIOTTO Image: The West Australian. SIZE DOES MATTER C Christmas Island Cocos Islands C BROOME Fitzroy Crossing Halls Creek Goodwyn Wandoo PORT HEDLAND KARRATHA Pardoo Marble Bar Barrow Is Exmouth Learmonth Onslow Pannawonica Yandi Tom Price Coral Bay Paraburdoo Newman Carnarvon Non Broadcast Area Denham Townsites Mine Sites Oil & Gas Platforms Meekatharra Cue Yalgoo GERALDTON Laverton Morawa Mingenew Perenjori Three Springs Coorow Eneabba Leeman Badgingarra Jurien Dalwallinu Cervantes Moora Dandaragan Lancelin Southern Cross Rottnest Is Harvey Busselton Dunsborough Pemberton Leonora Kalgoorlie PERTH Kondinin BUNBURY Boddington Lake Grace Collie Donnybrook Norseman Hyden Newdegate Sinclair Hopetoun Bremer Bay Northcliffe Walpole Warburton Leinster Mt.Magnet Tallering Peak 50 Hasler Road, Osborne Park WA 6017 T 9482 9500 F 9482 9454 E [email protected] W redwavemedia.com.au Derby North Rankin Kalbarri To tap into this lucrative audience, contact us today! Wyndham Kununurra Koolan Is Cockatoo Is Albany Esperance One of the many feathers in her cap, Dr Erica Smyth has served as chairwoman of Toro Energy, which is looking to develop the Wiluna uranium project. COVER STORY 7 Walking through the Association of Mining and Exploration Companies Convention in Perth with prominent mining figure Dr Erica Smyth, it is impossible to ignore her significance to the industry. Investors, industry leaders and fellow stalwarts stop her in the halls to pick her brain and remind her of the time they spoke at a conference back in the day. Straight from giving the Sir Arvi Parbo Oration at the conference, Dr Smyth agreed to discuss the industry further with the National Mining Chronicle. Her take on the current state of play in the Australian mining sector? Just another downturn, of which she has seen many during her four decades in the industry. “I’ve seen it happen about three times before,” Dr Smyth said. “The market will turn; I’m not sure at what, it might be slower than what we expect, but it will turn. “Demand will catch up with supply.” Dr Smyth began her resources journey in 1974 as a geologist at BHP Billiton at Newman in the Pilbara. As well as a tenure at BHP, Ms Smyth spent time at Woodside Petroleum, Toro Energy and has held positions on a number of boards, including ScreenWest and Scitech. Dr Smyth said it was important for companies to use this time to ready themselves for when the market did pick up. Smart leadership and fiscal responsibility were of utmost importance. Dr Smyth’s former company where she served as chairwoman, Toro Energy, is currently readying itself for an uptick in the demand for uranium. The company’s female leadership duo includes Chairwoman Fiona Harris and Managing Director Vanessa Guthrie. Toro is currently in investment talks with different parties in regards to a deal that would see an equity stake of the Wiluna uranium project being sliced off for funding for the $315 million project. “Toro is a good example because it is ready to go as soon as the market turns. The company is using this time quite effectively and there are others in the uranium space like Camico that have continued to invest,” she said. Dr Smyth said companies needed to look at how technology could revolutionise the industry. “Companies have to keep changing,” she said. 8 Some 100 Global Inspirational Women in Mining WA members (L-R) Alison Morley of Brumby Resources, Sabina Shugg of Momentum Partners, Meredith Campion of Allen and Overy, Sinead Kaufman of Rio Tinto, Marnie Finlayson of Rio Tinto, Donna Weston of Rio Tinto, Dr Erica Smyth and Kalpana Maharage of Rio Tinto. Image: The West Australian. “In 1988 we had a new building at BHP in Melbourne that had a whole air-conditioned room for the data room full of computers and nowadays that whole computing grunt could fit on a normal laptop.” Dr Smyth added that collaboration was essential in an industry that was too reliant on “silo work” (when certain departments or sectors do not share information with others in the same company, a type of mentality which may reduce efficiency in the overall operation, reduce morale and contribute to the demise of a productive company culture). “What Woodside is doing with its innovation and technology part is a great example,” she said. “It is bringing people from across departments; they are not technical but they are people who are in finance and accounting who are brought in to make the data into a usable form to sort out issues that may be there.” In her oration Dr Smyth gave a run-down of the technological advances that had propelled the industry. She added that companies should look for what was coming next and how that could help productivity, particularly where the workforce was concerned. “What are the next things and how do you keep changing and how do you make use of that? There should be crossfunctional teams that are working in the data space,” Dr Smyth said. Dr Erica Smyth delivered the Sir Arvi Parbo Oration at the AMEC Convention in Perth in June this year. Image: The West Australian. “A lot of the companies are backing away from spending only because they haven’t got the money and this is the trouble in the downturn. “I think we could get a lot cleverer about looking at the waste streams. There might be different ways of looking at a waste resource – can we use it for roads or construction material rather than thinking of it as waste?” Dr Smyth said the workforce needed to join with companies on the journey; the days of paying any price just to get people up to the site were a thing of the past. “The workforce has to be part of the solution,” she said. “They’re going to be the smart people driving the trucks and responding to the productivity increase. “In every level of organisations we’ve got to bring the experienced workforce with us and that means the workforce has got to be retrained. “We’ve moved from old styles of how we move dirt, to new styles of how we use dirt. You can simulate the lot now and it means you can get really experienced, really quickly.” Dr Smyth called on the industry to remember that it was still possible to make money in the current market and that many people were. “We’re mining an enormous amount of iron ore, coal and oil and gas, we’ve just got to get cleverer at doing that. “We have suffered from very high costs and when you have very high costs it gets inefficient. “I think in mining itself we will see much greater productivity as we start using the smarts embedded in vehicles and excavators and those smarts may be fully automated or it might be the vehicles giving the operator information about its usage. “It’s about getting more tonnes out of a haul and that means least wear on tyres and brakes and highest fuel efficiency. “The productivity gain has to be made first. There are always the true believers and those people will hang in there for as long as they possibly can.” Erica’s achievements • Bachelor of Science The University of Western Australia (UWA) • Applied Master of Science McGill University, Canada • Honorary Doctor of Letters UWA • Elected Fellow of the Australian Academy of Technological Sciences and Engineering • Australian Nuclear Science and Technology Organisation Deputy Chairwoman • Toro Energy former Chairwoman • Diabetes Research Foundation of WA Chairwoman • Royal Flying Doctor Service Non-Executive Director • Emeco Holdings Non-Executive Director • Deep Exploration Technologies CRC Non-Executive Director • Harry Perkins Institute of Medical Research Director • Chamber of Mines and Energy WA Women in Resources Lifetime Achievement Award Winner (2010) • Women in Mining UK 100 Inspirational Women in Mining (2013) • Member of Chief Executive Women 10 BUSINESS MODEL Gaining ground through a collaborative approach BY KAITLIN SHAWCROSS No-one is feeling the pressure of the recent struggles of the iron ore price more than the mining juniors. For Western Australian junior Atlas Iron, it was becoming abundantly clear an innovative approach to the company’s business model was needed if it was to emerge on the other side of the iron ore price slump in one piece. Speaking at the Association of Mining and Exploration Companies Convention in June, attended by National Mining Chronicle, Atlas Iron Managing Director David Flanagan said earlier this year the company looked to cut costs everywhere it could, including cutting its workforce by 65 per cent. “When we got our cost down to about $61 come Eastertime, the iron ore price took that big jump down to $46 and it was not business as usual,” he said. “Just from operations we were looking at losing $15 million that month and from the price impact of the previous months we were looking at another $10 million. Atlas Iron Chairman David Flanagan (front) at the Mt Webber mine opening in April. Image: Atlas Iron. EnvEloping A new era in vibration monitoring HD Enveloping is a new and unique vibration measuring technique which provides optimal opportunities to plan maintenance and ensure production Follow damage throughout its development – gain extremely long pre-warning Preventive maintenance with maximum planning horizon Ease of use with predefined filters for damages in all stages Identify gear and bearing damage with help of exceptionally clear spectrums and time signals at speeds down to 15 rpm Get started right away - use your existing transducer installation Want to know more? Call 1300 700 002 or email [email protected] 12 “So we were looking down the barrel of a $25 million cash loss for the month of April and that’s just unacceptable.” Struggling to compete with the low operating costs of mining giants such as Roy Hill, Atlas decided to suspend stock during April to review operations. Another cut to the company’s workforce was made but it was clear this was no long-term solution. It was by establishing a new way of doing business with its contractors that Atlas Iron was able to successfully bring its costs down to US$50 ($68.12) a tonne, bringing the junior in line with the mining giants. A number of Atlas contractors have signed a two-year contract with the company to provide discounted services in exchange for 25 per cent of Atlas’ cash margin after all costs for the next two years under what the company called its contractor collaboration model. Mr Flanagan said through the agreements the company had reduced costs by a further $150 million a year. and you get everyone to work together it’s transformative and that’s what’s happened,” Mr Flanagan said. protecting it against sudden price drops and securing future cash flow for the company. “McAleese essentially cut its road haulage costs for our business from $16 a tonne to $10 a tonne,” he said. “MACA gave us $1.50 in savings, Qube gave us 30 to 40 cents and we had the Port Hedland Port Authority give us just under $2 a tonne.” Atlas’ contractors McAleese and MACA are feeling the pressure of the iron ore price slump as much as the juniors with McAleese relying on its monthly payments of around $20 million from Atlas Iron – which accounts for more than half the transport group’s earnings – to help service its debt. Mr Flanagan admitted Atlas would end up sacrificing some of the upside under the new model should the iron ore price improve, but could easily sustain operations for several months should the iron ore price remain over $45 a tonne. The Department of Transport allowed Atlas to operate a number of trials that would see the company add an extra three to four tonnes in each road truck in an effort to use fewer trucks, increasing efficiency. The contractor has invested around $90 million in assets to support transport services for Atlas as well as contributed $14 million to Atlas’ Share Issue despite its $175 million debt. “None of those things in isolation is going to make a difference for the business, but if you bring them all together Under the contractor collaboration model Atlas is preselling its iron ore for up to three to six months in advance, “If the price tomorrow goes to $100 and it stays there for a month, will we get the full benefit? No, we won’t, but what we will have if the price goes up to $100 tomorrow is the forward curve will react and we will see the benefit of getting that price in January and February,” he said. “So in return for giving away some of that upside, we know that our downside is capped and we know we’ll be making money.” Anniversary We are pleased to present the revamped resources industry publication This new gloss magazine continues the 20-year tradition of bringing insightful resources news to a targeted audience. Our November/December issue promises more of the same industry-relevant content. As well as talking to some of the sector’s key players, we are planning features on: • Shutdown Maintenance Services • Water in Mining • Pumps, Pipes, Valves and Hoses • And more… To advertise contact: Andrew Bowyer | +61 8 9482 3938 | [email protected] J000487_MC_WAN House Ad 1_2pg H 140815 20 th 13 Mr Flanagan said other mining companies had taken an interest in the new business model and had been in touch with Atlas’ contractors. At the start of the 2015/16 financial year Mr Flanagan embarked on a global roadshow to raise capital to secure the company’s balance sheet to withstand further iron ore price volatility. The company aimed to raise $180 million but fell well short with only $86 million from existing shareholders, contractors and new investors. None of those things in isolation is going to make a difference for the business, but if you bring them all together it’s transformative. However, the company said it needed only the $40 million already committed from existing shareholders before the roadshow to secure the miner’s immediate future and anything raised above that was a bonus. “This is an outstanding result for Atlas shareholders, for the 700 people who rely on Atlas for work and for the state and federal governments that use our royalties and taxes to provide essential services,” Mr Flanagan said. “When this is combined with our new, lower cost base, which we are continuing to optimise, I am confident Atlas has a bright future.” Atlas Iron MD David Flanagan said he was confident the company had a “bright future”. Image: The West Australian. 14 STATE VS STATE Go the distance “Queensland is recognised globally as a world-class producer and leading destination for mining and petroleum and gas resources investment and Australia’s gateway to Asian markets,” he said. BY BIANCA BARTUCCIOTTO On the speaking circuit in 2015 a new rhetoric has emerged. Combinations of overcapacity, slowing consumption growth and a stronger US dollar have forced most mineral and energy prices into a rapid decline over the past year. Mr Purtill said the government was working to streamline the assessment processes. As a result there has emerged a frantic state of affairs across the country. “Industry in Queensland is already benefitting from one of the most advanced natural resources permit lodgement, management and assessment systems in the world,” he said. Exploration spending dropped nine per cent year-on-year to $1.3 billion in the March quarter as the commodities freefall disincentivised investment. Bill Marmion said the WA government offered investors certainty. The expansionist directions of companies in the past few years have dramatically stopped as companies look to tighten their budgets. While there are still more projects in the pipeline, the potential of any further investment beyond that is closely linked to commodity prices. As the investment dollars begin to dry up, resources ministers, representatives and leaders are taking to the stage to lure potential investors into their respective states. The hard task of attracting greenfield projects is only set to get harder and the stage is set for an all-out battle royale between the states. WESTERN AUSTRALIA The ‘lucky state’ has long been associated with mining projects from Roy Hill to Yandi to Hope Downs. The State Government has been fortunate enough to find a steady stream of investment dollars into WA. The current downturn, however, has dampened Premier Colin Barnett’s glory days. His Minister for Mines and Petroleum Bill Marmion has been talking up the future potential of the state as much as possible. The minister is sure of WA’s strong mining future. “The State Government provides prospective investors with a number of unique offerings that have assisted Western Australia to become one of the world’s leading minerals and energy producers,” he said. “One of the most important positives the WA government offers investors is certainty. Our mining and petroleum legislation and regulations are based on the principles of transparency, predictability and fairness. “The WA government is committed to minimising red tape while ensuring the state’s resources are developed in a responsible manner. “Reforming processes and introducing online approvals services have enabled end-to-end tracking of mining and “Coal, mineral, petroleum and gas companies operating in Queensland can now lodge applications for their resources permits electronically through the MyMinesOnline system. “This online service is making a big difference to industry and giving companies greater certainty, helping them to attract investment and get projects up and running faster. petroleum applications across the Department of Mines and Petroleum, while reducing duplication and improving timelines. “Exploration permit application timeframes, for example, have been slashed by over 70 per cent compared to the old over-the-counter paper lodgement system.” “The government recently completed the streamlining of key processes under the Aboriginal Heritage Act 1972 and is working to expand this system to other government agencies. Mr Purtill added that exploration was the most important thing for the state. “To further improve certainty of approvals processes and reduce assessment timelines for industry, the Department of Mines and Petroleum aims to conduct all its transactions online, including applications, fees, submissions and correspondence, by July 2016.” Of course, the benefit of having Liberal Premier Colin Barnett opening the doors for any investment that will boost his coffers is paramount, but does that mean WA will continue to enjoy the sort of investment that has been steadily raising living standards in the state for years? QUEENSLAND According to figures from the Australian Bureau of Statistics, Queensland remained an attraction exploration destination. “But we can do better,” Mr Purtill said. “That is why the Queensland government continues to deliver initiatives that support exploration investment and activity. “Innovative programs like the Collaborative Drilling Initiative and Industry Priorities Initiative will continue to help industry better target exploration opportunities, reduce risk by providing high-quality, pre-competitive data and attract investment.” The new State Government on the block, Queensland Labor led by Premier Annastacia Palaszczuk, started by shooting down the uranium industry in the state, despite supporting the liquefied natural gas (LNG) industry. Despite the fact the state has established itself as a powerhouse for LNG development, it remains to be seen whether Queensland will be able to continue to attract further investment that will allow it to knock rival WA off the podium. Premier Palaszczuk only recently appointed James Purtill as the Director-General of the Department of Natural Resources and Mines. He kicked off his tenure by saying the Queensland government had faith in the state’s resources industry. James Purtill believed exploration was vital for Queensland. Fountain of youth In December 2014 Standards Australia released the longawaited revision to AS/NZS 2312 Guide to the protection of structural steel against atmospheric corrosion by the use of protective coatings. The latest international corrosivity and design Standards for hot dip galvanizing (HDG) means that the design durability (‘life to first maintenance’) of HDG is now aligned with long-term performance results in Australia and world recognised Standards. Consequently the quoted life for HDG coatings on structural steel has increased, in some cases, by as much as 400%. Hot dip galvanizing – steel’s fountain of youth. More information and free training on the use of AS/NZS 2312.2 is available from the GAA (www.gaa.com.au). AS/NZS 2312.2 can be purchased from SAI Global at infostore.saiglobal.com/ store/. Hot Dip Galvanizing – First and last line of defence For further examples of the durability of hot dip galvanizing please visit www.gaa.com.au or scan the QR code. 16 SOUTH AUSTRALIA With the recent jobs cuts at BHP projects, South Australia is working hard to ensure the next round of investors looks favourably on the state. In its recent budget SA abolished a number of inefficient taxes that impeded investment including share duty, stamp duty on non-real property transfers, nonresidential property transfers and genuine corporate reconstructions. South Australian Treasurer Tom Koutsantonis said tax would save businesses $670 million per year. “By July 2018 all business property transactions in South Australia will be tax free – the only jurisdiction in the country to implement such reform,” he said. “In addition, the State Government recently announced a new $15 million investment fund aimed at bringing new jobs to South Australia. “Modelled on similar successful funds in Ireland and Singapore, it will be the leading body within government for all major investment attraction activity from both overseas and interstate companies. “This new investment arm will lead all major investment attraction activity by proactively identifying and facilitating potential investment. “These funds will be available to companies planning to expand or move that could create jobs in South Australia. While the bid was overturned, these continuous anti-coal campaigns slow down development in the state. A spokesperson at the Department of Industry, Resources and Energy said the state had some of the toughest regulations in the country, but was committed to providing companies with stable framework. “Mineral resources and mining are important to NSW but must be conducted in a safe and environmentallysustainable manner,” the spokesperson said. “That is why NSW has some of the toughest regulations in Australia around rehabilitation and especially coal seam gas activities. “NSW provides a safe and reliable market in which companies can operate. Tom Koutsantonis said SA was open for business. “The State Government will be working to attract capital to growth sectors and establish new operations of international firms and facilitate the start-up of new industries.” As well as an open for business government mantra, the state holds some attractive resources. “With more than two-thirds of Australia’s total copper resource in South Australia, we are ideally placed to boost the state’s annual production to rival our global competitors,” Mr Koutsantonis said. “We will be looking beyond the current cycle to where South Australia should be in the next 10 to 15 years.” Mr Koutsantonis said he was confident South Australia was the right environment to foster growth. “South Australia is a low-cost business location, with full-time labour costs nine per cent below the Australian average and below all mainland capital cities,” he said. “South Australia has unique and natural advantages in the mineral resources and energy sector along with other advantages, including our affordability, our liveability and our open for business government.” NEW SOUTH WALES While New South Wales state leaders encourage development, activists and environmentalists in the state tie their hands. Recently residents in the New South Wales Highlands launched a bid to stop exploratory coal drilling in the Southern Highlands. “The NSW government funds exploration initiatives designed to stimulate private mineral exploration and investment across the state which is largely unexplored.” “The government is doing exactly that by embracing new technology and innovation, sending a message to investors that Tasmania is open for business in mining and working with industry to cut through the barriers and get new projects off the ground. “We are already seeing a number of positive signs, including a new bauxite mine at Bald Hill, which is Australia’s first bauxite mine in more than 30 years, a mining lease issued to Forward Mining for the proposed magnetite iron ore mine at Rogetta and Unity announcing $5 million in new exploration work.” NORTHERN TERRITORY The Northern Territory, the final competitor in the race for resources dominance, is banking on its proximity to Asia to take it over the edge. VICTORIA In 2007 the Northern Territory government launched a four-year China Minerals Investment Attraction Strategy to position the territory as China’s preferred source of minerals and metals. A relative darling on the Australian mining scene, Victoria has worked with coal and iron ore as well as oil offshore. This has now been expanded and includes Japan and the Republic of Korea. Recently the Andrews Labor government affirmed its support for the resources sector, in the hope of cementing Melbourne as a global mining hub – a major aspiration of Perth. Minister for Mines and Energy David Tollner said the Northern Territory was ready to drive its economic growth through unlocking its resources deposits. In July Minister for Energy and Resources Lily D’Ambrosio hosted a resources roundtable advising on the International Mining and Resources conference. The roundtable featured industry heavyweights and mining identities. “We’re spreading the message about what the NT has to offer across Australia and the Asia-Pacific region,” he said. Ms D’Ambrosio said the resources industry was key to the state’s future. “Melbourne already has competitive strengths globally in the resources sector through its mining businesses and professional services,” she said. TASMANIA The Tasmanian government says mineral processing is going to be one of the biggest growth sectors in the state. The government is also undertaking an extensive exploration initiative to stimulate exploration spend in the territory. This includes $2 million per year over four years on an accelerated collaborative program to assess the NT’s shale gas resources and potential, $1.65 million for enhanced management and delivery of geoscience and exploration data to industry and $1.25 million for regional geoscientific studies to assess mineral potential in key areas of the NT amongst other measures. Mining and minerals processing employs more than 4000 people and represents about 50 per cent of the state’s net export value. “The eyes of the world are now on us and under this government Tasmania is open for business,” Tasmanian Minister for Resources Paul Harriss said. “There’s no doubt mining across Australia has been going through a tough period. “But with forecasts that most commodity prices will have recovered by 2017 and with our rich diversity of resources, we need to lay the groundwork now to fully capitalise on the upswing. David Tollner said the NT was looking to stimulate exploration. The Conveyor Experts Specialising in the manufacture, service and supply of premium conveyor products, Complete Belting Solutions Pty Ltd is committed to using its extensive experience and resources to increase every customers’ productivity and cost efficiency. Products and services offered by Complete Belting Solutions Pty Ltd include: • • • • • • Conveyor Belting Conveyor Belt Cleaners Conveyor Rollers Conveyor Systems Conveyor Components Audit and Mapping • • • • • • Polyurethane Moulding Anti-Wear Solutions Installation and Repairs 24 hour Emergency Breakdown Service Rubber Lining Engineering and Fabrication Service, Product, Purchasing & Delivery Enquires For further information on our service expertise or any products in the Complete Belting Solutions Pty Ltd range, please contact us. Australia Wide Free Call 1800 Belting Head Office - Melbourne 48 North View Drive, Sunshine West, VIC, Australia, 3020 T 03 9310 1282 F 03 9310 1227 E [email protected] www.completebelting.com.au Carbon granules are rinsed and dewatered before they are transported to the carbon regeneration kilns. 18 Major win for community and the environment Kalgoorlie Consolidated Gold Mines (KCGM) is one of Australia’s largest gold producers. It is also the managing company of the world-famous Super Pit in the Goldfields of Kalgoorlie, Western Australia. This led to the development of the Fimiston Open Pit, when many existing leases and mines on the Golden Mile were consolidated. In 1989 a single management entity was formed – Kalgoorlie Consolidated Gold Mines. As part of its Air Quality Management Plan the company would stop the roasting process whenever prevailing winds could blow roasting emissions towards the town and residential areas. KCGM recently commissioned a new Metso carbon regeneration kiln as part of its $98 million Emissions Reduction Project, which has eliminated sulphur dioxide and significantly reduced mercury emissions from its Gidji and Fimiston Processing Facilities. The project was supported by KCGM’s joint venture owners Barrick and Newmont. Today KCGM’s Fimiston Open Pit is a massive operation, popularly known as the Super Pit. At 3.5km long, 1.5km wide and more than 600m deep, it is so large it can be seen from space and, despite its remote location, is a popular tourist attraction. The City of KalgoorlieBoulder has developed into a dynamic and sophisticated regional centre. It is Australia’s largest outback city with a population of more than 30,000 people. This resulted in unplanned stoppages and the sacrifice of up to one-third of available production time. Improving air quality for the community and avoiding disruptions to production were the key drivers for research into alternatives to the roasting process. In 1893 three Irishmen Patrick Hannan, Tom Flanagan and Daniel Shea stumbled across 100 ounces of alluvial gold when they stopped to replace a horseshoe in the course of their travels. Mr Hannan registered a claim on June 17, 1893 in Coolgardie and so started the Yilgarn-Goldfields goldrush. The town of Kalgoorlie was founded in the same year. Many early prospectors who came to the region were unprepared for the harsh living conditions they would face. Living only in makeshift shacks, thousands died from the lack of food, water, medical supplies and sanitation. But these conditions didn’t deter the influx of thousands more prospectors from all over the world, who often arrived with only a shovel and pan to seek out their fortune. It was the passion and spirit of these early pioneers that drove the success of the region, which has grown into Australia’s largest producer of gold. On the back of this success, infrastructure was established, allowing the community to grow and prosper. Dwindling alluvial gold deposits gave rise to underground mines, but by the 1980s they faced falling financial viability. Annually KCGM processes more than 12 million tonnes of rock to produce up to 800,000 ounces of gold. The Fimiston Open Pit is mined using the drill and blast method, with the ore transported by 6m-high haul trucks. It is crushed down to nominal 300mm sized rocks and then ground down to 0.2mm sized particles before it is mixed with flotation reagents. This produces a gold-rich froth, which is dewatered in filters to produce a sulphide gold concentrate. A common practice is to roast this concentrate at 650C, which vaporises sulphur dioxide and other impurities such as mercury. Most of the gold ore found along the Golden Mile is intricately bound in various sulphide minerals such as pyrite. The roasting process is the most efficient and cost-effective way to maximise the recovery of gold from the ore. The downside of roasting is the presence of sulphur dioxide and mercury in the off-gas emissions. Up until early 2015 KCGM used roasting at its Gidji Processing Plant. This year, as part of KCGM’s Emissions Reduction Project, a new larger ultra-fine grinding (UFG) mill was installed at Gidji to replace roasting. UFG reduces ore down to 12 micron particles, it is then subjected to a cyanidation process followed by adsorption on to activated carbon in a process called Carbon-inLeach (CIL). Next the carbon is recovered from the CIL process and transferred to the elution circuit. The elution process uses caustic soda and cyanide in a pressurised column at 110C to strip the gold off the carbon. Once this step is complete, only the spent carbon is left behind. The carbon is then rinsed in water and sent for regeneration via the carbon regeneration kilns. The gold continues on to another process called electrowinning, where it is converted into a solid, which is deposited on to large plates using an electric current (approximately 3000 amps at 12 volts). The gold is then washed off the plates, dried, melted at more than 1000C and poured into gold bars. CASE STUDY 19 Downstream from ultra-fine grinding The implementation of UFG had a significant impact on KCGM’s downstream processes. KCGM Metallurgist Mark Roberts said the new process eliminated one step in the previous method. “The UFG process does not remove the sulphur or mercury as the roaster did,” he said. “As a result the mercury carries over into the CIL process, where it adsorbs on to the activated carbon, reducing its capacity for gold adsorption. “This means carbon is required to be eluted more frequently to achieve the same result in the CIL process.” Carbon can be ‘reactivated’ for reuse by treating it in carbon regeneration kilns which heat it up to 700C, vaporising the impurities still present following the elution process. Because the increased frequency of elution strips the capacity to regenerate the carbon, an additional carbon regeneration kiln had to be installed. “The mercury, which had previously been removed by roasting, is now present in the kiln,” Mr Roberts said. “The existing gas scrubbers downstream of the kiln could not effectively handle the increased load and so a new scrubber and off-gas cleaning plant had to be designed and installed.” Tapping into knowledge KCGM installed two Metso carbon regeneration kilns in 1994 and 1997. Since then it has relied on the company’s maintenance services and engineering knowledge to ensure the kilns continued to perform efficiently. Metso’s National Product Manager Pyro Systems Hratch Loussikian played a key role in the supply of the original MT293a Mining Chronicle Half Page Screens Advertisement June 2013.indd 1 Commissioning the new Metso carbon regeneration kiln which combines cutting-edge burner technology with a sophisticated control system that is integrated into the plant’s distributed control system. kilns and has been directly involved in KCGM’s carbon regeneration process for more than 10 years. “When we tendered for the new kiln, our long-term involvement with KCGM along with our intimate knowledge of its process and requirements led us to produce a design that met the unique requirements of this project, while delivering a high degree of energy efficiency,” Mr Loussikian said. Supply of the new kiln was a team effort between Metso and a number of its long-term business partners: Electrical Board Manufacturers for control and automation, Mining Combustion Services for kiln heating, and NEPEAN Engineering and Innovation for kiln fabrication. Once the design was completed by Metso’s Pyro division, the kiln was fabricated and fully assembled at NEPEAN’s production facilities in Narellan, south-west of Sydney. Electrical Board Manufacturers, assisted by Metso engineers, then installed and tested the control system before the kiln was disassembled and transported to the minesite, where it was reassembled in its final position. Automation and operational safety With the carbon at 700C, great care has to be taken to ensure safe interactions between the kiln and the upstream and downstream processes, particularly in the event of any process malfunction. 3/05/13 1:36 PM A bird’s eye view of the structure containing the new carbon regeneration kiln andscrubber at KCGM’s Fimiston Processing Plant in Kalgoorlie. 20 This means the kiln needs a safety shutdown system, which operates independently of any external systems or power. A momentary loss of control by the distributed control system or a power outage could have catastrophic results. The drum which carries the carbon runs at temperatures of between 850C and 1000C. Stopping the kiln drum from rotating, even for a short period of time, will cause the drum to sag under its own weight. Mr Loussikian said even the smallest change could have dramatic effects on the kiln’s ability to operate correctly or at all. “With no easy way to rectify damage, it is likely the kiln would be offline for up to six months, whilst a new one is constructed and installed,” he said. “Our design takes care of this problem with a special shutdown operation that is driven by a battery back-up system in case of power failure. “It keeps the kiln rotating until all the carbon is safely out of the kiln and the drum has cooled down sufficiently to safely stop.” Once the kiln had been assembled and tied in with the mechanical and electrical components of the upstream and downstream processes, testing and cold commissioning started. Although the kiln will be controlled by the site’s Yokogawa Distributed Control System (DCS), the kiln’s operation and control needed to be tested and proven independent of the DCS. Metso and Electrical Board Manufacturers designed a complete system that was only required to control the kiln’s operation during testing and commissioning. “Once testing was complete, control of the kiln was transferred to the Yokogawa DCS,” Electrical Board Manufacturers’ Automation and Control Engineer David Merrick said. “To ensure that control is exactly the same, our programming and our control interface hardware were integrated into the DCS.” Small D&B investment paying big dividends Kalgoorlie Consolidated Gold Mines (KCGM) has always faced significant challenges around void management as it mines down through old workings at its Kalgoorlie Fimiston Open Pit – better known as the Superpit. Therefore, it is critical for its drilling and blasting (D&B) department to get timely information to reassess blasting techniques. With the voids being a safety factor during drilling, QAQC and loading of the pattern, data interpretation and logging is crucial. The time delays in the paperbased solution being used were causing delays in bench progression due to the delays in processing the information. In these challenging economic times, to justify employing an additional person to help manually enter all the necessary data becomes difficult. It purchased MiPlan’s MiD&B App, one of several developed, produced and distributed by the Perthbased real-time software solutions firm. As such, KCGM chose to use technology to optimise key areas of the operation and went looking for a solution that might help solve its in-field data collection problem. It makes paper-based data collection redundant as it enables real-time onsite record keeping and data entry via tablets with a seamless back-end data integration, validation and reporting functionality. The aim was to increase QAQC efficiency and to get more accurate data on explosives used out in the field without additional personnel or a high cost. The company discovered a ready-made solution existed which would only take a few days to install and was relatively inexpensive. MiPlan implemented the MiD&B solution in three days at the Kalgoorlie site by deploying the server site solution – a web-based solution that can be hosted locally or in the cloud. It then configured and connected the tablets to the existing wireless mesh onsite. Training was conducted through the implementation of how to use the tablets and how to import patterns to the system and report the information in the best way possible for the organisation. According to KCGM Senior Drill and Blast Engineer Dan Kavanagh, the total cost of the MiPlan solution is less than half of what it would have cost to employ a data entry clerk for just one year. “There has been a significant reduction in the time taken for the QAQC process to occur,” he said. “Our previous processes took two to four days to dip holes, enter data and redesign a blast. “This solution enables real-time data collection, empowering engineers to redesign a blast immediately, which actually saves us even more. Better explosives and consumable tracking is one of several features that have resulted in significant improvements and cost reductions for KCMG’s onsite D&B activities. “We get better blasting because the real-time data feeds allow the engineers to revise blast plans and tie-ins using up-to-date hole depth, cavity and water level information, all of which leads to improved blast performance.” FAST. EFFICIENT. RESPONSIVE. SETTING THE STANDARD For over 21 years, PYBAR has delivered projects efficiently and safely. We have a track record of resetting performance benchmarks and delivering value through innovation and collaboration. INTEGRATED UNDERGROUND MINING SERVICES • Mine development • Production mining • Cablebolting & production drilling • Raise boring E [email protected] P 02 6361 4499 • Shotcreting PYBAR.COM.AU 22 COAL MINING Underground mines on the table The deepening downturn in the Australian coal industry has not deterred another new megamine being planned for Queensland’s Galilee Basin. The latest is a $6.7 billion thermal coal mine, proposed by MacMines Austasia, part of the Meijin Energy Group. Minister for State Development Dr Anthony Lynham said the China Stone Coal project would provide up to 3900 jobs during the proposed two-year construction phase and up to 3400 operational positions. “This is a significant milestone for this project, which is an important contributor to the ongoing development of the Galilee Basin and sustainable development of business and industry in this state,” he said. “The site is located approximately 300km west of Mackay, north of and adjacent to the proposed Carmichael Coal mine in Central Queensland. “The China Stone Coal project involves the construction and operation of a greenfield open pit and underground thermal coal mine within a 20,000-hectare mining lease area. “The project could realise significant economic and social benefits on a regional, state and national scale with the capacity to produce up to 38 million tonnes per annum of product coal. “Once operational the mine is estimated to contribute $5.9 billion to Queensland and Australian revenue through coal royalties over the 50-year life of the mine.” The Coordinator-General has since released the draft Environmental Impact Statement for public comment. Meanwhile in New South Wales, Hume Coal has announced plans to build a low-impact, environmentallysensitive underground coal mine in the Southern Highlands. The innovative mining system is an Australian first and is designed to extract valuable coal for steel making from the Wongawilli coal seam in the Sutton Forest region, while protecting the groundwater and the environment. The project will mine only 35 per cent of coal from the available reserves, leaving the majority of the coal in the ground to provide long-term ground stability and minimise impacts on groundwater. Project Director Greig Duncan said Hume Coal had undertaken detailed environmental and geological studies and exhaustive engineering design analysis to ensure the best possible outcome for the local community. “We’re delighted to be able to deliver a plan that offers significant economic and social benefits to the region while preserving and protecting the things that make this place special,” he said. Once operational the mine is estimated to contribute $5.9 billion to Queensland and Australian revenue. Mr Duncan said the project plan was focused on addressing the potential concerns of local residents including water, subsidence (land movement) and visual amenity. “The project will not involve coal seam gas, open-cut or longwall mining. It will have no impact on town water or surface water such as dams,” he said. “Furthermore, we’ve taken great care to design a mining system that will have no long-term impact on the groundwater system, ensuring it remains intact and undamaged for future generations. “There will be no damage to surface infrastructure from ground movements due to subsidence, as can be the case with other underground mining projects.” In July Hume Coal submitted a Preliminary Environmental Assessment and application to the NSW Department of Planning and Environment, which is the first step in the development proposal for the underground mine. Creating greener plants In August the Minerals Council of Australia released a new publication, Delivering a low emissions coal future, that detailed the technological transformation underway to sharply reduce the emissions associated with the coal-fired power generation. “Hundreds of new high-efficiency, lowemissions coal-fired plants are in operation, under construction or planned in Japan, China, Europe and elsewhere in East Asia,” Minerals Council of Australia Executive Director – Coal Greg Evans said in a statement. “These plants operate at much higher temperatures and greater pressures producing reliable, baseload energy while slashing carbon dioxide emissions by up to 40 per cent. “In addition to sharply-reduced carbon emissions, these plants reduce all other emissions including particulates to negligible levels. These plants continue to deliver baseload electricity at a much lower cost than all other energy sources. “These plants will ensure coal has a fundamental role to play in the provision of low-cost, reliable energy for decades.” Mr Evans said the publication also noted carbon capture and storage (CCS) technologies continued to be rolled out around the world, pointing to the recent launch of the world’s first commercial CCS plant at Boundary Dam in Saskatchewan, Canada. “The Boundary Dam plant has slashed carbon dioxide emissions by 90 per cent,” he said. “Coal accounts for 41 per cent of the world’s electricity generation and in the past decade the use of coal grew four times faster than renewable energy sources and 50 per cent faster than gas.” The main surface infrastructure areas and underground parts of the proposed mine are shown above in relation to Hume Coal’s current exploration authorisation A349. Image: Hume Coal. Australia is the world’s largest exporter of metallurgical (steel-making) coal and second biggest exporter of coal overall. Australia is forecast to become the world’s largest coal exporter by 2017. SBLESALE M R A O Y IL E GAVAR HIR FO “We are passionate about providing a fitness solution to enable your employees to lead a healthier lifestyle” We also do a full range of container modifications inc - offices/rec rooms/ mobile workshops and one off projects Gym options available inc, trailer / skid mounted or permenant site container options Double container options for added facilities and larger camps Lifestyle & healthy living programs Personal training services, eg return to work ie injury recovery programs Gym & equipment maintenance options Delivery services Relocation services Complete 22 person mobile camp with industry standard facilities, for hire throughout Australia FOLLOW US www.containergyms.com.au | e: [email protected] 24 In the rural areas of India many remote villages are beyond the reach of electricity. MAKING NEWS Lizard and snake bring $16.5b coal mine to a grind Australia’s largest coal mine has been brought to a screeching halt after the Federal Court overturned the Abbott government’s environmental approval for Adani’s Carmichael mine in Central Queensland. The approval was revoked in August after the court found it had not properly considered advice over two threatened species in the area – the yakka skink and the ornamental snake. The Mackay Conservation Group launched its legal challenge earlier in the year alleging Environmental Minister Greg Hunt failed to consider global greenhouse emissions, Adani’s environment history and the threatened species. “Adani’s Carmichael coal mine plan would have been a climate disaster and reef destroyer,” Australian Greens Deputy Leader and climate spokesperson Senator Larissa Waters said. Foreign investors do not have limitless patience as their projects are mired in a seemingly unending process of legal challenges. “This white elephant of a project threatened our tourism and agricultural industries and would have slowed down our transition to a clean energy economy.” While environmentalists celebrated the win, the state’s resources sector feared it could mean the loss of thousands of Australian jobs, scare off potential foreign investors and lose billions for the Australian economy. The industry said a ‘legal loophole’ was to blame. “It is preposterous that a technical administrative hitch could hold up billions of dollars in investment and thousands of desperately-needed jobs,” Queensland Resources Council CEO Michael Roche said. “It’s time for our governments to step up and close the loopholes that enable these actions and the resulting negative impacts on our industry, not only in Queensland, but right across the country. Foreign investors do not have limitless patience as their projects are mired in a seemingly unending process of legal challenges.” countries where large populations remain without access to electricity”. Minerals Council of Australia Executive Director - Coal Division Greg Evans said it was important to understand this legal bump did not mean the end of the Carmichael $16 billion coal and 189km rail project. Mr Abbott said it was “tragic for the wider world” if legal safeguards were allowed to stall large mining projects, adding people had grounds to be “angry” that a court overturned approval for Australia’s biggest coal mine. “The delay to the project will be temporary. Claims by opponents of the mine that the project has been stopped permanently are arrant nonsense,” Mr Evans said. Mr Abbott said Adani had already invested about $3 billion in Australia and coal from the project would “power up the lives of 100 million people in India”. “The Federal Parliament should move quickly to close the loophole which provides no additional environmental protections but simply provides an opportunity for radical environmental groups to lodge vexatious legal actions designed to inflict costly delays on the project.” “It is absolutely vital that we get these projects right. But once they are fully complying with high environmental standards, let them go ahead,” he said. It is expected to take six to eight weeks from the date of the court’s decision in early August for the Federal Environment Department to draft new advice for the minister’s consideration. Adani faces another hurdle after the Commonwealth Bank pulled out of its role as financial advisor to the project once it learned the mine’s approval had been declared invalid. Era of Australian coal exports is coming to an end A former official for the Government of India has berated comments made by Australian Prime Minister Tony Abbott following the ruling. Government of India Ministry of Power Former Secretary Eas Sarma said Mr Abbott’s response revealed a “deep lack of understanding for the real situation in India and in other Prime Minister Tony Abbott said he was “frustrated” by the ruling on Adani’s Carmichael mine. However Mr Sarma said the claim that more coal would lift 100 million out of energy poverty revealed a lack of knowledge around the situation in India and other countries. “India’s population of 1.24 billion comprises 247 million households, 68 per cent of which live in rural villages,” he said. “According to the 2011 Census, 45 per cent of these rural households – 75 million – have no electricity. Of urban households, six million remain without electricity, or about eight per cent of the total. Australian coal, like any other coal, is not good for Indian people’s health and will not deliver electricity to those living in energy poverty. “These figures have not changed appreciably since 2001, though around 95,000 MW of new largely coal-based electricity generation capacity was added during the intervening decade. In other words, the benefits of adding new generation capacity accrued largely to the existing, affluent consumers.” Mr Sarma said to address energy poverty and energy security, India’s focus must be on encouraging locallygenerated and indigenous renewable energy systems and moving towards decentralised electricity generation based on renewables. “Even if one per cent of the country’s land area were to be used to harness the abundantly available solar insolation at an efficiency of 10 per cent, the country could generate 570 times India’s current electricity demand,” he said. “Australian coal, like any other coal, is not good for Indian people’s health and it will not deliver electricity to those who are currently living in energy poverty.” 25 Finding the strategy to best suit your company needs The A.R.M* Maintenance Strategy works on the principle that all you need to do – is make the decision to change from the GET options that are currently being used – to a lower cost option. To achieve all of this, simply follow the A.R.M* Maintenance Strategy, as outlined below. Step 1 Conduct wear life trials of the cost critical wear parts to determine the most “suitable” and lowest cost option for YOUR minesite. At Abrasion Resistant Materials Pty Ltd (A.R.M*) we have done this many times at many different minesites. For example – what works on the haul roads in iron ore, may not suit the road base material of a coal mine. We are never asked to solve problems at feather bed factories, so by the time a customer calls A.R.M* they have often been shredding money at 100m.p.h. for quite some time. Step 2 Select GET suppliers who can innovate AND have a proven track record of service delivery. Step 3 To achieve cost reductions, doing more of the same is NOT an option – be prepared to CHANGE. It is a simple process to complete but in our experience, you have to be able to create the right GET combination for ALL of the severe high wear applications. Step 4 You can make the process simple and just call Abrasion Resistant Materials Pty Ltd (A.R.M*). After 19 years of creating NEW innovation like new Dozer blades and Grader blades, along with hardfacing nearly every large bucket component ever made, the one thing that we know for certain is that continuing to use the same GET options will not deliver a different result. Innovations also create opportunities for patenting of those inventions, and at A.R.M* we have many wear parts patented both here in Australia and overseas. Remember one thing: If you eliminate the task – then you eliminate the risk. Here we have increased the average service life on 24M graders from as low as 40 hours per set (with the average wear life at 95 hours for the standard 60mm PA TE N TE D PA TE N T PE N D IN G A.R.M* options have a very big impact on the safe operation of equipment and also the productivity of the total minesite. Subsequently the risks that maintenance staff are exposed to (when changing out the worn GET) are often eliminated. One recent example of A.R.M* creating change is the New ARM60 24M cutting edges (used in iron ore mines). ABRASION RESISTANT MATERIALS PTY LTD ACN 070 411 522 A.R.M.* is an abbreviation of the company name Abrasion Resistant Materials thick CAT edges) to now having an average wear life of +400 hours/set, and occasionally they are up to 600 hours before needing to be changed. Envisage the operating cost and profit difference to the bottom line over the life of the mine in terms of: maintenance labour/freight costs (at 1.4 tonnes/set) and downtime, if you are using standard OEM grader blades, that require changing as often as every two days. The latest ARM60 innovation for grader blades did just fall out of the sky, but was worked out and established after 18 sets of trial cutting edges, with the end result being a NEW Hardfaced cutting edge with a new alloy combination which delivers consistent performance benchmarks, unmatched by any other option. If you want to permanently lower operating costs, while increasing production, plus creating a SAFER minesite, then you actually only have to do one thing, and that is to create a culture of change that leads to new GET options being used, and these options are often provided by innovative and new GET suppliers. For more details, contact Tim Falkenhagen on 07 3277 9630 and see www.arm.com.au for some of the many examples showing how innovation can reduce costs on minesites. ADVERTISING 26 Commodity’s cousin is no poor relation Barge loading at CITIC Pacific Mining’s Port Preston. BY KAITLIN SHAWCROSS The Australian iron ore industry is mostly built upon the mining, production and export of high-grade hematite ore, but a small percentage of production is made up of magnetite ore. Why the interest in magnetite ore? When mined, magnetite ore has a lower iron content than hematite, but after processing, the magnetite ore has much higher iron grades and lower costly impurities than hematite. The iron fines of the ore are recombined with bentonite and heated to produce iron ore pellets used for steel making. Carpentaria Exploration Managing Director Quentin Hill said the high-quality pellets were a preferred product of steel makers in blast furnaces as they increased the efficiency of the furnace and reduced costs and pollution.For this reason, magnetite ore attracts a higher price over hematite. traditional hematite direct shipping ore. At the end of the day, this results in lower carbon emissions,” a CPM spokesperson said. Earlier this year Fortescue Metals Group announced it had been working on a pilot two million tonne magnetite plant that it hoped to build into a 20 million tonne plant as a joint venture with Chinese company Baosteel and Taiwanese steel group Formosa. to produce the ore. As a result, the high-quality premiums it receives have been less affected by the iron ore price slump. “The conventional wisdom in WA is that magnetite costs US$80 ($109) or more per tonne in operating costs or they need base prices of US$80 to $90/t ($122.62) to make them work,” he said. However, magnetite ore receives a premium, making it more attractive and profitable for producers. When concern was raised over FMG’s new project possibly saturating the already volatile iron ore market, the company highlighted the fact that magnetite ore was a completely different product to most of Australia’s iron ore production and was a high-quality product currently in short supply. “The premiums for pellets are US$30 ($40.87) to $40 ($54.50) a tonne over the base price but if the base price falls, the pellet price falls too. What it means is that for projects like ours with a low cost base and a high premium, it‘s always a good business,” Mr Hill said. Mr Hill said there weren’t many magnetite producers in the market because of the typically high operating costs Carpentaria’s Hawsons project near Broken Hill is currently ready for its feasibility study, having demonstrated high- “The demand for iron ore from the steel mills in Asia is moving such that high-grade products are now more favoured,” he said. “That doesn’t mean the Pilbara is not relevant; what it means is the market requires more higher-grade concentrates and pellets to balance falling hematite grades and it is prepared to pay for it.” CITIC Pacific Mining (CPM), which operates the Sino Iron project in Western Australia’s Pilbara region, the largest magnetite mining and processing operation in Australia, said magnetite ore was more environmentally friendly than its hematite cousin. “Apart from providing Asian steel mills with security of supply and a high-quality feedstock, magnetite’s exothermic qualities mean the amount of energy used across the steel production cycle is lower than that of CITIC Pacific Mining’s in-pit primary crusher and conveyor leading to processing area. SPOTLIGHT ON MAGNETITE ORE quality magnetite results of over 70 per cent iron from its soft ore. “A lot of this steel production has been in construction and it’s been low quality,” he said. Mr Hill said under the current market scenario, the project was profitable but he expected the market to grow stronger within the next two years, giving the Hawsons project’s 25-year predicted minelife a promising future. “This other infrastructure may well require high-quality steel and there’s also domestic demand for high-quality raw material for cars, washing machines and other products as China continues to industrialise.” What China is telling us Who are our producers? Announced in 2013 China’s One Belt One Road strategy aims to see growth within China through relationships with the outside world. Australia has a handful of magnetite operations currently producing and exporting including the Sino Iron magnetite project owned by CPM, the Karara magnetite project owned by Ansteel and Gindalbie and the Savage River magnetite project run by Grange Resources in Tasmania. As part of the One Belt One Road strategy, China is looking to reorient its domestic infrastructure industry investment into foreign markets. It can do this through the Chinese government’s $40 million Silk Road Fund, $100 billion Asia Infrastructure Investment Bank and $100 billion New Development bank. Mr Hill said China’s One Belt One Road policy was a significant step to increase demand and would see the country shift its steel capacity utilisation from 60 to 80 per cent, leading to more export opportunities for the Australian industry. “There’s an argument whether China is at peak steel now or it will be at peak steel in 10 years’ time. We believe it’s closer to the latter,” he said. Mr Hill said he believed Chinese companies would build this infrastructure using Chinese steel from high-quality Australian iron ore, which would see a greater demand for magnetite ore than in the past. Carpentaria Managing Director Quentin Hill (left) and Chairman Dr Neil Williams at the Hawsons project. CPM’s Sino Iron is set to become Australia’s largest magnetite mining, processing and export operation with a project life of more than 30 years and a design capacity of 24 million tonnes per annum. The project is producing magnetite concentrate at 68 per cent iron with the first two of six processing lines in production and transhipping having commenced. A company spokesperson said CPM was helping create a new downstream processing industry by transforming low-value magnetite ore into a premium export product within Australia. “As China’s largest ever overseas investment in the resources sector, the project has resulted in stronger economic and cultural links and technical exchange between our two countries – combining Chinese magnetite processing and smelting experience with local mining and construction know-how,” the CPM spokesperson said. Oreflow Australia suppliers of quality materials handling equipment BRELKO PRIMARY AND SECONDARY BELT CELANERS BRELKO IMPACT BEDS 1050 WIDE 1200 TPH STACKING SYSTEM 27 3000 X 6100 SCREEN SBM JAWS AND CONES Phone: (08) 9472 0800 | Fax: (08) 9472 0811 | Email: [email protected] 28 Broken Hill post office and town hall facade. Broken Hill BIRTHPLACE OF BHP Australia’s longest-lived mining city has an illustrious narrative marked by its mineral wealth as home to one of the world’s largest silver-lead-zinc deposits and its often fierce industrial battles. EARLY 1880S – A LEGENDARY BEGINNING Exposed by erosion, the Broken Hill mineral outcrop was discovered in 1883 by boundary rider Charles Rasp. The Broken Hill ore is contained in a boomerang-shape line of lode up to 250m wide and 7.3km long, with each end dropping more than 1.6km into the earth. Mr Rasp took what he thought were tin samples from the large orebody. The samples proved to be silver and lead from one of the largest orebodies of its kind. The Broken Hill Line of Lode. Did you know? Broken Hill lies in the far north-west of NSW but is closer to Adelaide and operates on South Australian time. The city was named in 1884 by explorer Charles Sturt who noted that there was a broken hill in the middle of the Barrier Ranges, which the town sits on. The ‘broken hill’ that gave the city its name actually comprised a number of hills that appeared to have a break in them. The original broken hill has since been mined away. Mr Rasp pegged out the original lease in September 1883 with his fellow stationhands David James and James Poole. LATE 1880S BHP was established by a group of men from Mt Gipps Station from various working backgrounds who came to be known as the Syndicate of Seven. Each member contributed £70 to start BHP. The town lends its name to one of the world’s largest mining companies BHP (Broken Hill Propriety), which began mining the large orebody for silver and lead in 1885 and set BHP on the path to becoming Australia’s richest company. A stock market boom in 1888 turned Argent Street in Broken Hill into the equivalent of Wall Street in the US and BHP shares reached an impressive £400. Despite George McCulloch instigating the syndicate it was Charles Rasp who easily became the most famous of the seven. The population of Broken Hill continued to grow throughout the late 1880s from a few hundred in 1885 to more than 27,000 by 1901. Defending workers’ rights Strikes marred the history of Broken Hill from 1889 to 1920. In 1892 local miners and the Women’s Brigade went on strike for 16 weeks, defending the mines from imported labour. The strike was defeated and resulted in a 10 per cent decrease in wages as well as the restoration of the 48-hour working week. The city’s largest strike lasted from May 1919 to November 1920 and involved thousands of mine workers and their families, who struggled to survive on rations of mainly potatoes, onions and jam. When the ‘Big Strike’ was finally called off, miners were awarded improved safety conditions, better health monitoring and – for the first time in Australia – a 35-hour working week. LOOKING BACK Mining memorials Broken Hill has kept its history alive through a number of attractions and memorials to its mining past and present. 29 One of the original shafts constructed in Broken Hill, Brown’s Shaft at Junction Mine. As well as displaying information on how the world’s largest silver-lead-zinc deposit was formed, The Albert Kersten Mining & Minerals Museum houses a renowned collection of Broken Hill minerals and the iconic piece of art, the Silver Tree, once owned by Charles Rasp. The city’s Line of Lode Miner’s Memorial and Visitor Centre on the edge of the mullock heap that divides Broken Hill serves as a tribute to the more than 800 miners who lost their lives on the job. Floral tributes sit beside the hundreds of names on the memorial, which has been specifically designed to help visitors understand the dark, claustrophobic underground environment. Two small dump trucks sit nearby as memorials to the two miners still entombed. In 1886 the Broken Hill Junction Silver Mining Company was formed and in the 1890s the wooden headframe was erected over the Browne Shaft. Today the frame is the oldest remaining on the Line of Lode and the lookout has become a popular tourist spot as a place to understand the mine’s history. Broken Hill’s first mining strike occurred in 1889 as a result of a trade union ultimatum that members not be made to work with non-unionised workers. The strike lasted a week. 1900S The city’s population peaked in 1915 with around 35,000 residents. In 1905 the town had a population of more than 30,000 people and by 1907 more than 8000 men worked at The Hill’s mines. Like BHP, the early history of Rio Tinto is also linked to Broken Hill. Production peaked again in the city in the 1950s when the mining workforce reached 6500, but it has been declining ever since. The metals at Broken Hill occurred together in the form of sulphides, which were difficult to process. While it was possible to extract the silver and lead from these sulphides, metallurgists originally were unable to find a commercially viable method of recovering the zinc. Broken Hill today Despite being home to only a fraction of the miners that used to operate under Broken Hill, the city still produces as much ore as ever. This is largely due to increased efficiency through modern technology with miners working 600m to 1000m underground and able to scavenge remnants in old tunnels. Mining still provides about one-third of the city’s income. Australian and Chinese-owned Perilya continues to work the southern end of the ore deposit after acquiring the mine in 2002, producing lead and zinc concentrate. Trades Hall. US mining engineer, and later American President, Herbert Hoover saw an opportunity to establish a zinc specific company. In 1905 he formed the Zinc Corporation in Melbourne to buy up tailings dumps and extract the zinc from the Broken Hill ore deposit. Zinc was successfully produced from these residues and revolutionised the metallurgy of Broken Hill. In its first eight years Perilya mined around 15 million tonnes of ore and shipped more than 800,000 tonnes of zinc metal and 450,000 tonnes of lead. Earlier this year Perilya said it would talk with its board about reopening its northern operations after being closed for more than 20 years. The Zinc Corporation later became Consolidated Zinc and merged with Rio Tinto in 1962. Did you know? In 2015 Broken Hill became the first Australian city to be included on the National Heritage List. The operation is now thought to be viable through the use of new mining technology that would allow for lower grades of ore to be mined at higher tonnages. Perilya said the North Mine Deeps resource held 3.7 million tonnes at 11.3 per cent zinc, 13.5 per cent lead and 219 gram per tonne of silver. 30 MAKING NEWS Call for “cool heads and open minds” in blueprint dialogue The Productivity Commission has laid the blueprint for getting new major resources sector projects approved in Australia faster and more competitively by proposing a more efficient and modernised system for new project industrial negotiations in its draft workplace relations report. In its proposed system for new project agreement making, known as ‘greenfields’, the Productivity Commission has taken onboard a number of recommendations from resources industry employer group AMMA’s ‘roadmap for reform’, which provided extensive independent analysis of the problems created by the current provisions within the Fair Work Act 2009. “Resources employers will be very pleased to see the Productivity Commission acknowledge and act on the well-documented problems with the current new project agreement framework,” AMMA Chief Executive Steve Knott said. “We need a system for new projects that will reverse some of the excessive delays and cost blow-outs on major resources sector developments that has seen our sector become globally uncompetitive.” Specifically the Productivity Commission has recommended: • Greater industrial certainty be achieved by allowing agreements to have a nominal expiry date of up to five Key to unlocking $35 billion in potential metal assets years (up from the current four years) or the life of a greenfields project, subject to approval by the commission. • If an agreement has not been reached after three months, the employer may either request the commission to choose between the ‘last offers’ made by the employer and the union or submit the employer’s proposed greenfields arrangement for approval with a 12-month nominal expiry date. • Greenfields agreements should be subject to good faith bargaining requirements and, importantly, subject to a no disadvantage test. AMMA chief Steve Knott said the proposed model would be a positive first step towards a competitive system. “The Productivity Commission’s proposed model for greenfields projects would be a positive first step towards putting in place a competitive system that gets Australia back on track to securing more projects and the jobs they bring to the nation,” Mr Knott said. “It has been blatantly clear for too long that our workplace relations system is not fit for a modern Australia. We call on all parties to examine the recommendations with cool heads and open minds. This report must not be overshadowed by scare campaigns or misinformation,” Mr Knott said. “It’s also pleasing to see a number of other recommendations that will begin to address problems in the workplace relations system including better Fair Work Commission appointment processes and reviews of members’ performance, as well as making strike action a genuine last resort.” More broadly AMMA is urging the report, released in August, be met with mature national debate, not marred by union scare campaigns or political point-scoring already playing out in the public space. “AMMA looks forward to analysing the draft recommendations in greater detail and providing the Productivity Commission with the resources industry’s feedback during further consultation.” AMMA has been heavily involved in the Productivity Commission review consultation process and lodged a comprehensive submission backed by KPMG analysis detailing the economic benefits that reforms could deliver. Thiess will provide turnkey mining services at the Rocky’s Reward mine near Kalgoorlie. Interest has grown in a previously ‘off limits’ area of the Australian outback with potential gold, uranium and copper assets. A total of 59 exploration licenses have been granted to explore the Woomera area in South Australia since restrictions on the land were relaxed. Located in the Far North of South Australia, the Woomera Prohibited Area has been used as a rocket testing range and was declared a prohibited area under Australian Federal Legislation. An amendment to the Federal Bill in July 2014 has now opened up parts of the land to mining exploration. South Australian Mineral Resources and Energy Minister Tom Koutsantonis acknowledged the work of former South Australian Senator Don Farrell who had pushed for access to the area that might unlock an estimated $35 billion in potential gold, uranium and copper assets. “The level of interest shown by explorers since the legislation passed is extremely promising with 59 exploration licences submitted since last August, covering about 18,460 square kilometres,’’ he said. “As a result of the downturn in global commodity prices, the industry is facing significant challenges. But we also know the resources industry is a cyclical one. “For that reason it is crucial that we provide explorers with a regulatory framework that gives them the confidence to go out to find the next major discoveries, so when the inevitable upswing occurs they are ready to invest and create jobs for South Australians.” Stretching more than 127,000sq km, roughly the size of England, Woomera potentially contains some of the world’s richest mineral and petroleum resources. Geoscience Australia estimates 62 per cent of Australia’s known copper resources and 78 per cent of the nation’s known uranium resources are located in the area and its immediate surrounds. $160 million contract marks re-entry into Goldfields region for global company CIMIC Group’s global mining contractor Thiess has been awarded a $160 million contract with BHP Billiton Nickel West to undertake operations at the Rocky’s Reward nickel mine at Leinster, about 400km north of Kalgoorlie. The Rocky’s Reward mine is an open-pit operation within Nickel West’s Leinster mine complex. Thiess commenced the 30-month contract at the brownfields operation in August 2015. Thiess will provide turnkey mining services including mine planning, explosives, drill and blast services, overburden and ore mining and overarching technical support. CIMIC Executive Chairman and Chief Executive Officer Marcelino Fernández Verdes said: “We are continuing to tender for more mining work and expect further contracts to be awarded to the group in the near future. Following on from Thiess’ recent entry into Chile’s copper market, the Rocky’s Reward nickel project provides further diversification by both commodity and geography”. Thiess Managing Director Michael Wright said the Rocky’s Reward contract, which marked the company’s re-entry into the Goldfields region of Western Australia, built on the partnership first established with BHP Billiton Nickel West at the nearby Mt Keith operations in 2003. A member of the BHP Billiton group, Nickel West is a fully-integrated nickel business comprising the Mt Keith, Cliffs and Leinster mines, the Kalgoorlie smelter, the Kambalda concentrator and the Kwinana refinery. SE A BO T E Y O AIM OU TH E 60 X, 09 Austrian since 1876. Made in Europe. Lifting Equipment Grade 100 made in europe Advantages of Star Alloy Grade 100 Safe: With the violet signal colour no risk of confusion with G 80. Durability: Higher wear resistance due to increased hardness. Simple: Easily adjustable with multi-functional shortening hook. Traceability: Appropriate marking on chains & components. Quality: ISO 9001 certified company. Reliability: Decades of experience. Strong: 25 % higher load capacity than G 80 allows the transition to smaller chain diameters. Light: Smaller chain dimensions allow considerable weight reductions compared to G 80 and easier handling. High-quality steel and tested in Austria. Decide safely, decide Nobles. 32 CRUSHING AND SCREENING Cashing in on expansion As Newmont Mining looks to extend the life of the Boddington gold mine, one of the company’s star performers, Crushing and Mining Equipment (CME), was awarded a contract for full supply of crush liners. The five-year contract will see CME supplying MP1000 crusher liners, with the first installed earlier this year. CME said the contract was subject to increased performance parameters on improved production targets, which was achieved with the first installation of CME’s LinerSafe liners. The contract incorporates the supply of CME’s trademark LinerSafe liners, which includes the patented LockLift device, eliminating the need for dangerous lifting practices. LockLift allows for a fullycontrolled lift, while negating the need for cutting or welding to occur. CME’s engineering division will undertake the work. CME Chief Executive Officer Gordon Fogwill said the company’s technology had positioned it ahead of the industry. “Continuous improvement, technology and competencies, coupled with an industry-leading range of wear products and parts has positioned CME at the forefront of this field in materials processing advancements and enabled CME to tailor solutions to Newmont Boddington’s specific requirements,” he said. Newmont is pushing ahead with further capital works to extend the life of the project. The mine requires a major pit wall cutback that will extend the life of the project beyond the current timeframe of about six years. Image: Newmont Mining Corporation. Contract win NRW Holdings has secured a $140 million contract with Rio Tinto at the Nammuldi mine that will have the contractor supplying, installing and operating two crushing plants. The two five megatonne per annum crushing plants are just part of the award that will have NRW constructing mine haul roads, ore stockpiles, waste dumps and other mine infrastructure. NRW will also carry out production mining, including drill and blast and haulage of high-grade ore from the mine to the existing Nammuldi plant site. Sedgman Managing Director Peter Watson. Image: The West Australian. The contract will utilise a significant amount of existing NRW equipment, including two Hitachi 250-tonne excavators and up to 14 Caterpillar 785 dump trucks. Work extension at Agnew site It will run for 24 months and will have a peak of 135 personnel onsite, including a proportion of local indigenous participation. Sedgman secured a three-year renewal of its crushing and screening contract for Gold Fields’ Agnew Gold Mine up to September 2017. Mobilisation and start of preliminary site works began in August. The work is worth $23 million over the term of the contract. Sedgman Chief Executive Officer Peter Watson said the working relationship between the companies first commenced in 1997. NRW Chief Executive Officer Jules Pemberton said it was pleasing to be awarded such a significant contract during a difficult time for the industry. “This contract award follows completion of the Nammuldi BWT works for Rio Tinto earlier this month,” he said. “Sedgman has been delivering crushing and screening services at Agnew for more than 18 years,” he said. “We are seeing an increasing number of operations and operations consulting opportunities emerge as clients look for ways to further optimise their operations and increase the value in use of their existing assets.” The crushing and screening facility is scheduled to crush around 1.2 million tonnes of ore per annum from the Agnew underground mines, located near Leinster in Western Australia. The Agnew Gold Mine, formerly the Emu Gold Mine, north of Kalgoorlie, has been producing gold for Gold Fields since 2001. The mine averages more than 250,000 ounces of gold per annum from the Waroonga underground complex, comprising the Kim, Main and Rajah lodes. Mr Watson said the successful renewal of the operations contract with Gold Fields in a highly competitive market was very pleasing. Portable Satellite Internet, BrilliANT for working remotely North Eastern Goldelds Exploration has been operating in Kalgoorlie, WA for more than 20 years doing remote exploration work. Director Andrew Pumphrey says, "Internet access using the ANT system has made a positive impact on the operation of our business. We reviewed a number of systems on the market and found the ANT system to be the most cost effective option for internet access in remote areas for our operation. Internet access allows us to receive and send a daily report/data from the eld. This is invaluable as it saves a lot of time and money when working in remote locations. Furthermore, employees use it regularly to keep in contact with family and friends, which has been an important factor in retaining staff. We shift our exploration camp regularly and have found setting the ANT dish up relatively quick. The whole setup comes in a sturdy case and well made transporting bags which is what we require when travelling long distances over unsealed roads and bush tracks. We have had no technical problems from the ANT system and also the backup service from ANT has been exceptional". Compact | Fold away | Easy Storage | Quick Setup | No Long Term Contracts | No Excess Data DATASTAR AUTO SEEKING SYSTEM Government & Defence Emergency Services IP Phone Systems Telemetry M2M Construction Mining 1 300 ANT COM | 1300 268 266 [email protected] www.ant.com.au Self deploying and aligning for Internet & TV. Designed in Australia for Australian conditions. Support 7 days/week based in Australia If you're not happy, you're not with us! 34 Setting the coal scene The Coal Services team in New South Wales has been pioneering the use of virtual reality (VR) to train coal miners in underground safety. The company uses four stations around the state to service the southern, northern, Newcastle and Hunter Valley coalfields. Coal Services VR Technical Manager Matthew Farrelly said while it was one thing for miners to be trained in emergency procedures in theory, it was a whole other ball game learning to apply those principles in real-life situations. To overcome this Coal Services has developed three different VR platforms to simulate real-life underground scenarios in a controlled learning environment. Each site has three hemispherical fibre glass domes, which are 4m in diameter and allow individuals to walk within a virtual environment. Coal Services State Operations Manager (NSW) Stephen Tonegato with University of Wollongong student Shiva Pedram. Image: Paul Jones/University of Wollongong. such as debris, actors, CPR dummies and stretchers, ” Mr Farrelly said. how well VR technology bridges the gap between classroom and coalmine. “When we go in there people are fully dressed in their breathing apparatus and the screen acts like a backdrop in a stage play. “This matters because these industries are a huge part of Australia’s economy and we want to find the best way of training our workers for this high-risk environment so we are ensuring workers go home safe at the end of the day,” Ms Pedram said. “When they walk in they might see an emergency or they might be doing an inspection and suddenly there might be fire and smoke or any other potential incidents including vehicle interaction. “They can respond and do physical things. For example, if they see a person get injured in some way, we can then make the digital avatar, who has been injured, disappear and then reappear as a real person who takes over the roleplaying role.” There is also a curved screen theatre that sits 25 to 30 people in lecture-style tiered seating where learners sit with books or worksheets while using the VR as a training platform. Mr Farrelly said an important part of the VR experience was giving miners the opportunity to train muscle memory and reflexes by getting them to perform tasks such as first aid on a real person. However, the most impressive VR platform is the organisation’s virtual reality theatre, which features a 360-degree screen, 10m in diameter, 4m high and uses 12 cameras to project 3D images. A recent partnership between Coal Services and the University of Wollongong (UOW) will measure the effectiveness of the VR programs in equipping coal miners for emergency situations. “There’s a reasonable amount of floor space in the centre of that cylinder so we’re able to fill that with different things UOW and SMART Infrastructure Facility PhD student Shiva Pedram has been conducting research in order to assess “It’s a particularly acute problem for highly-skilled rescue brigades whose individual and collective proficiency relies upon the ability of their training program to deliver scenarios that are as realistic as possible.” Ms Pedram has worked with up to 400 miners who utilise Coal Services’ training facilities and concluded that the training technology had a significant impact on the drop in NSW safety incidents between 2009 and 2014. “The training system gives employees the confidence to do their job well and the confidence to be able to handle situations when things go wrong,” she said. Mr Farrelly said it was a matter of time before other companies made use of VR technology to prepare miners for onsite work. “There’s no doubt that VR is the buzzword at moment,” he said. “We’re just about to have breakthroughs on key technologies that allow this to happen.“ Bore acquisition adds to capabilities Underground mining operations now have access to one of the fastest, safest and most technologically-advanced large capacity raise bore rigs on the market, according to underground mining contractor PYBAR Mining Services. The Herrenknecht RBR600-VF arrived at PYBAR’s headquarters in Orange, New South Wales earlier this year, significantly increasing the company’s raise bore capability. It is currently the second largest raise bore rig in the Australian market and has proven efficiency in drilling both production and ventilation shafts. The majority of raise bore rigs in Australia have a maximum diameter potential of 6m or less. The RBR600-VF, developed by German rig manufacturer Herrenknecht, has the capacity to construct shafts up to 8m in diameter, making it one of only two raise bore rigs in Australia with greater than 6m capacity and to a depth of 1200m. Drilling shafts over 1000m with large diameters of up to 8m requires rigs with high torque and high thrust forces. The RBR600-VF delivers this with a thrust force of 10,000 kN sufficient to lift a 1000-tonne weight under the rig. It is also the only rig of its size in Australia which can be easily deployed underground. With the industry increasingly seeking non-entry mining solutions, reaming shafts with the RBR600-VF is safer, less labour intensive and, depending on the application, more cost-effective than conventional shaft sinking. Furthermore, the rig is one of the most efficient on the market due to its variable frequency drive. Whether utilising mains power or generators, its power consumption will be half that of an equivalent capacity machine with hydraulic drive, potentially saving clients thousands of dollars on power bills. PYBAR Chief Executive Officer Paul Rouse said as a major contractor in the Australian underground mining industry the acquisition of the rig ensured PYBAR had the capability and capacity to handle projects of any scale. “There are very few contractors with this level of rig capability. It enables us to service the largest underground mining projects in Australia with a full suite of services,” he said. “We’re building a solid reputation in the market for exceeding productivity targets and this latest investment will ensure we have the fleet and equipment to back our ability to add value to projects and out-perform on project targets.” ADVERTISING MINE SAFETY Walking billboards drive home key safety messages 35 High-visibility site shirts are worn by workers to reinforce the safety message. Perth-based Crushing and Mining Equipment (CME) celebrated a milestone achievement of four years lost time injury (LTI) free in July. According to the latest available data from the Western Australian Department of Mines and Petroleum (2013-14), the average mining industry LTI frequency rate sits at 2.4. CME CEO Gordon Fogwill said while the company had seen an increase in demand for its onsite maintenance and engineering services over the last four years, it had sustained a high level of safety with a nil balance LTI. “It is through the company continually striving for improvements in all areas of the business that has aided us to position our safety record as best in practice,” he said. “What makes this even more exceptional is the fact our business has grown over these four years to be more and more associated with higher risk service work onsite.” The company has launched a number of internal programs to promote safety including patented LockLift and Safe-T Lift crusher liner safety lifting devices, a Think Safety, Think CME safety training program and uniforms displaying safety slogans to promote safety awareness while onsite. “We are backing up all our strategic objectives with a multilayered approach of initiatives that target as many sources of influence that we can muster,” CME Occupational Health and Safety Manager Mark Hill said. “One of the latest programs we are currently utilising is the ‘walking billboards’ high-visibility site shirts being worn by all our service staff.” Mr Hill said CME had also implemented sharing in-depth personal safety stories at toolbox meetings. “This vicarious experience through story telling is a great way of influencing people to behave safely,” he said. ”We will continue to deliver these types of initiatives throughout our journey to excellence in safety performance.” 36 Former Myuma program participant Hayley Dodd. Driving indigenous policy agenda BY KAITLIN SHAWCROSS BHP Billiton has recently taken out a series of awards at the Queensland Resources Council’s (QRC) Indigenous Awards night for its commitment to training and employing indigenous people. BHP Coal Indigenous Relations Manager Paul Travers was awarded Indigenous Advocacy Champion for his work with the company on its traineeship and Myuma program. “It’s very nice to be recognised by industry as someone who is helping drive the indigenous policy agenda within the resources sector, but really the award for me is more a company award. I think it reflects more the values BHP Billiton Coal brings to the area of indigenous relations,” he said. BHP Coal has been operating an 18-month indigenous training program since 2011 as well as the six-week Myuma program, which provides trainees with an immersive site experience prior to commencing their traineeship. “We recognise as a company that diversity drives performance across all our operations, so we are committed to increasing the numbers of our Aboriginal and Torres Straight Islander employees,” Mr Travers said. BHP Billiton Mitsubishi Alliance (BMA) was also recognised by the QRC for its efforts to recruit more indigenous people to its Queensland operations. The company’s Indigenous Recruitment Strategy has a target to see at least five per cent of indigenous employees across its operations, with indigenous people now making up 44 per cent of BMA’s trainee intake. BMA Head of Human Resources Sonia Lewis said indigenous employment at the company’s Daunia Mine had already reached 4.75 per cent and she was confident other operations would soon come close to the target. “A key aspect of the strategy was direct engagement by the BMA recruitment team with indigenous people, including traditional owner groups across south-east Queensland and the Cairns region as well as other stakeholders, most importantly Queensland’s Department of Aboriginal and Torres Strait Islander Partnerships,” Ms Lewis said at the awards night. “It’s very much run as a minesite facility. People live in minesite-style accommodation, they work to rosters, they’re up at six in the morning, they get rostered days off, safety is critical and they familiarise themselves with machinery,” Mr Travers said. “It’s also quite remote, so it gets people used to living away from home in a minesite-style environment.” BHP’s indigenous recruitment strategy will go up for review in 2016 when the company examines how it can improve its current Queensland programs as well as expand its capacity to New South Wales. We recognise as a company that diversity drives performance across all our operations. “There has been a quantum shift in how indigenous recruitment is viewed. Supervisors and managers who have come into contact and worked with indigenous recruits are keen to recruit more. “The impact has been immediate and bodes well for the continued development and expansion of BMA’s indigenous workforce.” BHP’s Myuma program, overseen by Colin Saltmere, also took out the Exceptional Indigenous Business award. Myuma is a work readiness program owned and operated by indigenous people and aims to prepare trainees for the realities of working on a minesite. BHP Coal Indigenous Relations Manager Paul Travers (left) with Treasurer and Minister for Aboriginal and Torres Strait Islander Partnerships Curtis Pitt. INDIGENOUS EMPLOYMENT 37 Downturn impacts job programs Off the back of a successful inaugural event last year, the Indigenous Australians in the Resources Sector Forum took a different approach this year, having lost many of its participants to the mining downturn. With less than half the number of participants as in 2014, the forum, chaired by Christine Ross of Christine Ross Consultancy in collaboration with the Chamber of Minerals and Energy of Western Australia (CME), addressed communication, resilience, how to survive redundancy, employment alternatives and leadership skills. Ms Ross said despite the uncertainty about whether the forum would go ahead this year, due to increased pressure in the mining downturn, she felt it was important to remind participants there were still positive things happening for indigenous Australians in the sector with successful Aboriginal businesses on show. Ms Ross said employment opportunities for indigenous Australians in the resources sector had deteriorated significantly within the past year and for many mining companies, cost-cutting measures saw the end of most indigenous employment programs. “A few years ago employment opportunities for indigenous Australians were fantastic because just about every company had a reconciliation action plan and had Aboriginal employment strategies,” she said. “We had about 4000 Aboriginal people working in the resources sector alone in WA. Now numbers have dropped considerably. “We need to be reminding companies out there, whether they be in mining, construction or oil and gas, that there is a commitment to maintain, where possible, their Aboriginal employment programs. Christine Ross champions indigenous programs. “Sadly, when cuts are made one of the first things to go is the Aboriginal employment program.” Ms Ross, who organised the first Aboriginal Women in Mining Conference in 2012, founded the forum after being approached to host something Aboriginal men could be involved in. “Often there isn’t an opportunity for indigenous Australians to come together and discuss issues that are applicable to us that aren’t always applicable to non-indigenous people so we wanted to have our own forum,” she said. “We deliberately have it during NAIDOC Week because it’s a celebration of Aboriginal culture and Aboriginal people working in the resources sector.” Attendees at the 2015 Indigenous Australians in the Resources Sector Forum. Secure future for effective strategy Despite a challenging period in the resources sector, CME’s Resource Sector Outlook forecasts the percentage of indigenous participation to grow to 8.1 per cent by 2020. BHP Billiton Mitsubishi Alliance Head of Human Resources Sonia Lewis. A successful Queensland indigenous employment program now has a more secure future after it was awarded $200,000 in industry and government funding for the next 12 months at the Queensland Resources Council’s (QRC) Indigenous Awards night earlier this year. Treasurer and Minister for Aboriginal and Torres Strait Islander Partnerships Curtis Pitt announced funding of $100,000 from the Queensland government, which was matched by an additional $100,000 from the QRC. The program has been operating since 2007 and began with the signing by the then Premier Peter Beattie of a Memorandum of Understanding (MoU) between the QRC and the government. The MoU program aims to increase indigenous employment in the resources sector both directly and through engagement of indigenous businesses. QRC Chief Executive Michael Roche said the results of the programs spoke for themselves. “Our second annual survey of members confirmed a total of 995 full-time indigenous employees in the resources sector at the end of 2014, compared with 802 the previous year,” he said. “Almost 90 per cent of those surveyed reported the MoU had increased the likelihood their company would invest more effort and resources into indigenous participation strategies, while just over 70 per cent of companies told us they had employed more indigenous people and businesses because of the MoU.” The QRC Indigenous Awards winners included Lisa Peckham from Glencore who took out the Exceptional Indigenous Person award, Paul Travers from BHP Coal and Matthew Ralph from Origin who were equal winners in the Indigenous Advocacy Champion category, while BMA won Best Company Indigenous Initiative. Mr Roche said the Indigenous Awards both promoted and celebrated indigenous employment and training achievements in the resources sector. “These awards acknowledge the importance of increasing the diversity of our resources sector workforce and recognise and encourage participation by indigenous people,” he said. 38 Shae Pemberton, a first-year electrical apprentice, recently won an Outstanding Achievement award. Apprenticeship program aims to build talent pool Bengalla mine and training partner MIGAS kicked off its annual apprenticeship drive in July with electrical and mechanical trades on offer for 2016. The four-year program includes hands-on experience at the open-cut coal mine and a technical study period at Hunter Institute Muswellbrook Mining Industry Skills Centre. First-year electrical apprentice Shae Pemberton recently won an Outstanding Achievement award at the NSW TAFE Mining Skills presentation and encouraged others to apply for the opportunities on offer. I hope I can continue to work hard to achieve a full-time role as a tradesperson after finishing my apprenticeship. “For people thinking about applying for an apprenticeship I say go for it. If you’re interested and willing to work hard, it’s a great opportunity for anyone,” she said. apprenticeship is being able to meet new people with the same interests as me. “I hope I can continue to work hard and achieve a full-time role as a tradesperson after finishing my apprenticeship.” Bengalla General Manager Operations Jo-Anne Scarini said the program offered apprentices the opportunity to work in a safe environment with experienced tradespeople across a broad range of electrical and plant mechanic functions. “We provide ongoing coaching, mentoring and support from both MIGAS and Bengalla as the apprentices work to obtain a nationally-recognised qualification,” she said. “The program gives apprentices a great start in the mining industry and allows Bengalla to tap into a pool of talented workers and help build capacity in the Hunter Valley.” The apprentices will be employed through group training employer MIGAS and will join 12 other apprentices at Bengalla. “I wanted to pursue a career in trades because it could teach me skills that would stay with me for a lifetime. MIGAS Field Officer and Apprenticeship Coordinator Angela Gardner said MIGAS was proud to continue its support of Bengalla in the training and development of apprentices in regional areas of New South Wales. “I’m in my first year of my apprenticeship and learn a new thing every day. I’ve already been taught many different trades, not just my own, and one of the best aspects of the “We share the common goal of creating a skilled workforce for the future and are committed in providing a safe working environment,” she said. Students gain a focus on mining Year 11 and 12 students gained first-hand experience in geosciences and mining during Curtin University’s Western Australian School of Mines’ Focus on Mining camp in July. The annual camp aims to motivate youth to pursue careers in the mining sector, with 27 students from across WA spending a week travelling across the state’s South West. The camp included hands-on workshops, tours of operational minesites and two networking evenings that provided an opportunity to meet lecturers, students and mining industry leaders. Curtin Science Outreach Manager Emma Donnelly said the camp often reaffirmed the students’ desire to study science or engineering. “Students are exposed to career opportunities they wouldn’t have previously considered and often find out what they like and dislike about mining before starting university,” Ms Donnelly said. “We find the camp encourages students to take control of their future careers and almost 50 per cent of the participants take up a degree in mining when they start university.” Funded by Curtin, the camp is supported through various partnerships. TRAINING AND EDUCATION 39 Course creates breadth of understanding Coal & Allied is celebrating the success of its apprenticeship program with one of its apprentices picking up two awards this year. Simone Marskell won Apprentice of the Year in the Hunter Region Apprenticeship and Traineeship Advisory Committee awards in June and the SKILLED Group awards in April. “The apprenticeship program sets you up for wherever you want to go in your career,” Ms Marskell said. “The six-month mining skills course builds your safety awareness and provides hands-on experience before you go to site. “Once you’re at site one of the best things about the apprenticeship is that they rotate you not just through different fields but across two Coal & Allied mines. “You get a taste of everything and I think that breadth of understanding you gain in each rotation makes you a better apprentice. “My apprenticeship gave me the chance to do what I love, to study and earn money at the same time and pursue my passion to advocate for women in trades. Mount Thorley Warkworth General Manager Operations Mark Rodgers said it was encouraging to see young people such as Ms Marskell launch successful careers off the back of the apprenticeship program. My apprenticeship gave me the chance to do what I love, to study and earn money, and pursue my passion to advocate for women in trades. “Coal & Allied works closely with SKILLED to foster a safe and supportive environment where apprentices can develop the best skillset and mindset for their pathway to full-time employment,” he said. “I encourage anyone thinking of applying for a Coal & Allied apprenticeship to give it a go.” Applications are open for electrical and mechanical apprenticeships, with the four-year program starting at Mount Thorley Warkworth and Hunter Valley operations in 2016. Ms Marskell completed her apprenticeship with a Certificate III in Electrotechnology in September last year and secured a full-time position at Mount Thorley Warkworth shortly afterwards. Award-winning apprentice Simone Marskell completed the Coal & Allied apprenticeship program in September 2014, before securing a full-time position with Mount Thorley Warkworth mine. P: +61 7 5495 2944 | [email protected] www.nltinc.com • Mining & Industrial Cap Lamps • Personnel & Vehicle / Asset Tracking • Mine-wide Networking Cordless Mining Lamps Optional Tracking tag • Proximity Detection / Collision Avoidance NETPORT-able IS Portable Wireless Access Point Screenshot of Personnel Tracking Digital Mine v.5 Software • Digital Geotechnical & Strata Measurement • VOIP, 2-way messaging & Evacuation • GET & Payload Monitoring - AIMEX stand 2107-02 WIOD Access Point Wi-Fi enable an asset Ranger VoIP Phone IS Reverse Tracking (RT) Messenger Cap Lamp with 2-way messaging Australian mines are among the safest in the world, due to the industry’s ongoing commitment to research and development. NLT Australia assists in up-holding Australia’s position at the forefront of world safety for underground coal & metals mining. NLT Australia Pty Ltd was formed in Jan 2005 by Managing Director, Tim Haight now MD of NLT Global Digital. The company has grown from a sales and support operation based in Queensland to its current R&D, engineering, manufacturing and service operation. NLT Australia is a subsidiary of the Northern Light Technologies (NLT) of Toronto, Canada. NLT also has an office in Santiago, Chile and have been in business for over 30 years. NLT is a global leader in cap lamps, tracking and communications with a particular niche in underground coal mines. Wi-Fi communication system deployment in remote and difficult locations is a specialty of NLT Australia. Please quote this advertisement to claim your free gift JKTech’s Open Program 2014/15 Graduation Dinner. 40 Preparing the business leaders of tomorrow As commodities markets ebb and flow, so too do the skills and talent in the industry. The provider also does bespoke training packages for companies to assist with training future leaders. in the face of challenge and continue to provide benefits to the local people. Markets boom and talent flows in; markets crash and talents ebb out. Fifteen Ok Tedi high potential leaders received tailor-made, in-house Mining Leader’s Program training. In that lies a conundrum for mining companies which struggle to find suitable talent to lead the companies through both good times and bad. The program focused on the transition from technical specialist to general manager, including operational effectiveness today, management and leadership of self, of teams and organisations, of the value chain and mine optimisation and of business improvement. Anglo American Australia Technical Services Manager Tom Cobcroft said the Mining Leaders’ Program gave him the skills to tackle challenging business situations. According to a number of global industry leaders, many mining companies are facing a succession crisis and poor commodities prices lure leaders away to more lucrative pastures. In response to this cyclical leadership conundrum, Queensland-based JKTech launched a new Mining Leaders’ Program – a seven-month, four-module course aiming to address the global shortfall of future leaders in the industry. The flagship program was developed in conjunction with the University of Queensland and the Sustainable Mineral Institute. Since announcing the 10-year minelife extension in Papua New Guinea, Ok Tedi’s goal is to remain profitable Latest cohort of students will be in demand as resources market recovers In the 65-year history of the University of Queensland’s (UQ) mining engineering program, its first female indigenous student graduated in a ceremony this July. Ms Kelly’s graduation bolsters UQ’s Women in Engineering program, which aims to provide a balance of outstanding engineers. Courtney Kelly – the first in her family to attend university – received her Bachelor of Engineering (Mining) before swapping the sandstone of UQ’s St Lucia campus for a position at Woodside Petroleum in Perth. UQ’s Head of the Division of Mining Professor Peter Knights said Miss Kelly entered the Australian mining employment market at a challenging time due to lower minerals commodity prices. “I feel like I’ve come full circle,” Miss Kelly, who studied on a three-year scholarship from natural resources company Glencore, said. “I always aspired to study at UQ while at high school and relocated from my hometown of Innisfail to follow that dream. However, the cyclical nature of prices means students entering the mining engineering program this year will most likely graduate into a rising market scenario. “Australia is the world’s largest exporter of iron ore and coking coal,” Professor Knights said. “Now I have the opportunity to follow my next dream. “Any upswing in global economic activity will drive demand for qualified graduates from our engineering programs. “Throughout my studies at UQ, I became extremely interested in the natural gas industry, so I am incredibly grateful to have been given the opportunity to work with industry leader Woodside.” “With a significant increase in the amount of students graduating from mining engineering compared to midsemester 2014, the latest cohort of students will be in demand as the resources market recovers.” “It has equipped me with better knowledge and skills to navigate my way through the ever-evolving business world with confidence,” he said. “My strategic opportunity has allowed me to lead a multidisciplinary team in this challenging commodity cycle to drive a positive cashflow outcome for our business. “Having access to the JKTech Portal allows me to collaborate with my new peers into the future – beyond the classroom.” GAS TESTING ATMOSPHERES CONFINED SPACE RESCUE PLANS CONFINED SPACE SENTRIES EQUIPMENT HIRE 42 Movers and shakers Peter Lester joined Doray Minerals as Non-Executive Chairman. Mr Lester has more than 35 years’ experience in the mining industry and has held roles in operations, project management, corporate and financial advisory services and business development, with more recent responsibilities including feasibility studies, acquisitions, capital raising and takeovers. He previously held senior executive positions with North, Newcrest Mining, Oxiana and Citadel Resource Group. Mr Lester is currently NonExecutive Director of Nord Gold NV and White Rock Minerals. He replaces former Non-Executive Chairman Peter Alexander, who will remain on the board as a NonExecutive Director. Mark Zeptner. Peter Lester. Metallica Minerals has appointed Barry Casson as chairman, while David Barwick retired as chairman and as a director of the company. The company also appointed Simon Slesarewich as the new Chief Executive Officer. The board move coincides with the planned succession and retirement of founding Metallica Managing Director Andrew Gillies, who will continue as a Non-Executive Director. Mr Slesarewich, a mining engineer and registered senior site executive in Queensland, has more than 18 years’ experience across Queensland’s resources commodities sector, including a strong background in operational and executive roles within both mining and contracting entities. Ramelius Resources announced the appointment of Mark Zeptner as Managing Director. Mr Zeptner joined Ramelius in March 2012 as Chief Operating Officer and succeeded Ian Gordon as Chief Executive Officer in June 2014. Mr Zeptner is a mining engineer with extensive experience in gold and nickel and has held senior management positions including roles with WMC and Gold Fields. The move follows recent approval for the commencement of two new high-grade gold mining operations at Kathleen Valley and Vivien located near Leinster in Western Australia. In August Paladin Energy Managing Director and CEO John Borshoff stepped down from his role with the company, which he founded more than 21 years ago. Under Mr Borshoff’s stewardship, Paladin built a unique position in the uranium mining industry and he is recognised as a world authority in this realm. Alexander Molyneux was appointed Interim CEO. His core mandate will be to: (1) continue the optimisation of Paladin’s overall cash flow break-even level with the aim to become cash flow generative in the current uranium price environment; (2) focus on accelerating strategic initiatives that deliver value; and (3) assist the board in its search for a permanent CEO. Ausdrill has appointed Andrew Broad as Chief Operating Officer – Australian Operations. Mr Broad has more than 20 years’ experience in contracting businesses in the resources and industrial sectors where he has held senior executive positions, most recently as Chief Executive Officer of Enerdrill, as well as Chief Operating Officer and then Chief Executive Officer of VDM Group. Barry Casson. Andrew Marsh has been appointed Enerpac’s National Bolting Manager. He will work with Enerpac state and territory managers, seeking to optimise communication and efficiency in the Enerpac service centre and distributor network. “Mr Marsh’s strong combination of engineering expertise, sales and service skills and extensive knowledge of Enerpac technologies make him the ideal candidate to assist customers with the technical and practical knowledge required for efficiency and safety in the industry,” Enerpac Regional Manager, Australia and New Zealand Denis Matulin said. In addition, Roy Coates was appointed Executive General Manager – Australian Mining Operations. Mr Coates is a qualified mining engineer with 21 years’ experience in mining contracting businesses. Ausdrill Managing Director Ron Sayers said the combination of appointments was an important step in providing strong leadership and strategic direction for the company going forward. Sandvik has appointed Graeme Wolfenden to the new position of Australian Drill Master for the company’s mining and construction arm. Mr Wolfenden, who has 30 years’ experience in the underground coal industry under his belt and a solid background as a fitter and turner, has been an employee of Sandvik Mining for more than 10 years. John Borshoff. Image: The West Australian. PEOPLE AND PROJECTS Tychean Resources Managing Director Joe Houldsworth retired from the position in September. Mr Houldsworth is expected to retain a non-executive position on the Tychean board for the foreseeable future. Tychean will assess its options for a replacement and advise the market when appropriate. Company Chairman Robert Kennedy thanked Mr Houldsworth for his “tenacity in achieving the results he has since his appointment”. 43 Mergers and acquisitions Joe Houldsworth. Greg Heylen. Sims Metal Management appointed Alistair Field as Managing Director of Australia and New Zealand Metals. Mr Field has more than 25 years’ experience in the mining and manufacturing industries and has worked in South Africa, Saudi Arabia and Canada. He was previously Chief Operating Officer for Rio Tinto Alcan’s Bauxite and Alumina Division. Rox Resources announced Stephen Dennis as NonExecutive Director of the company. Until recently Mr Dennis was Managing Director and CEO of CBH Resources, a zinc-lead producer owned by Toho Zinc of Japan, which has operating mines at Broken Hill and Cobar in New South Wales. Mr Dennis is also Non-Executive Chairman of copper-zinc-lead developer Heron Resources. Ric Buratto joined Decmil as a Senior Executive in its construction and engineering division. Mr Buratto most recently held the position of Executive General Manager at Thiess. He will assume the newly created position of CEO – Construction and Engineering. Scott Criddle will remain as Group CEO and Managing Director. DRA Pacific and BGC Contracting announced the formation of a joint venture. The new entity, DRA BGC JV, will deliver a suite of services, including engineering, procurement, construction, operations and maintenance. The JV has combined access to more than 6000 employees globally. DRA Pacific is the Australian branch of the global engineering and project delivery organisation DRA, headquartered in Johannesburg, South Africa. DRA’s experience includes iron ore, gold, Perth-based iron ore miner NSL Consolidated has entered into a conventional secured funding loan agreement totalling $5 million to allow the construction, commissioning and operation of its Phase Two wet beneficiation plant, while also availing the recommencement of the existing Phase One dry beneficiation plant at its wholly-owned Kurnool iron ore processing stockyard in the Indian state of Andhra Pradesh. base metals, coal, diamonds, PGMs, mineral sands, rare earths and fertiliser minerals. DRA Pacific CEO Clive Hart said the company was excited by the potential benefits of combining the skills of both firms. “Key benefits for DRA will be the enhancement of our ability to offer engineering procurement construction (EPC) and lump sum turnkey (LSTK) contract packages and other contract models such as build own operate transfer (BOOT), assisted by the strong balance sheet of our two organisations,” he said. beneficiation process, allowing NSL to produce a highgrade premium price iron ore product grading between 58-62 per cent iron at around 200,000 tonnes per annum. The agreement has been signed with NSL’s current funding partner and investor, New York-based investment firm Magna. Phase Two will be a wet Metallica Minerals advised it executed a conditional Sale and Purchase Agreement for the sale of its non-core Star Limestone Project to a private group. The project consists of a single granted mining lease and is held by Metallica’s 100 per cent owned subsidiary Phoenix Lime. This is the second limestone project sale after the sale of the Ootann Limestone operation for $500,000 on July 8. Regis Resources advised it has completed a transaction to acquire prospecting licenses for the Gloster deposit. The licenses are 26km from Regis’ Moolar Well processing plant. The company believes there is “very good potential of the Gloster project to profitably extend the operational life at Moolart Well through the trucking of mined ore to that plant for treatment”. CEO Simon Slesarewich said the sale agreements continued Metallica’s strategy of delivering value for non-core assets, allowing the company to focus on its Cape York portfolio without diluting existing shareholders. “The acquisition of the Gloster deposit is important to Regis as it should provide further longevity and profitability to the very successful Moolart Well operations and confirms the potential to add to the Regis resource base in the Duketon area,” Managing Director Mark Clark said. Simon Slesarewich. Evolution Mining increased its stake in Phoenix Gold to become the company’s largest shareholder (around 19.8 per cent). The increased stake follows the announcement by Zijin Mining Group of its intention to make an unsolicited, conditional off-market takeover offer for Phoenix. 44 BUSINESS DIARY SEPTEMBER 1-4 AIMEX is the leading international mining exhibition for the Asia Pacific region. Over more than 35 years, the biennial event has brought together industry from across the world. National and international suppliers of mining technology, equipment and services mix with buyers to explore opportunities, exchange information and network at the various business events, such as the industry dinner. Seminars and panel discussions are presented across the four-day event. The 2015 exhibition will see more than 400 exhibitors and 10,000 mining professionals attend. Key areas of focus at this year’s AIMEX include innovation, technology, automation and collaboration. More information: www.aimex.com.au. SEPTEMBER 15-17 Safety in Action is the largest conference and exhibition on workplace safety nationwide. The focus of this year’s event, Putting safety systems to action to drive change, will be discussed by leading authorities in health, research and industry. Held at the Melbourne Exhibition and Convention Centre, the event includes a free seminar program with presentations from the National Safety Council of Australia’s Ennio Bianchi, beyondblue’s Nick Arvanitis and Dr Paula Mitchell from Fatigue Management International. Sessions include how to combat mental health in the workplace, managing fatigue and improving safety systems. More than 200 exhibitors are taking part and about 4000 people are expected to attend the three-day event. More information: www.safetyinaction.net.au/melbourne. OCTOBER 8 OCTOBER 26-27 Nickel producers and explorers are invited to the country’s only dedicated event for the commodity, the Australian Nickel Conference. The Hunter Valley Longwall Conference is Australia’s premier event for the underground coal industry. The event attracts a range of personnel from mining executives, analysts, government officials and representatives to investors, consultants and suppliers. The conference brings industry together to present new stories and provide a comprehensive update of the sector, allowing companies the opportunity to meet other industry players and network between informative sessions. This year’s event will be held at the Pan Pacific Perth. More information: www.paydirt.com.au. OCTOBER 20-23 The China Mining Conference continues to attract international policy makers and is an industry voice providing insights on current resources topics of interest such as mining trends, the global mineral commodity market, domestic and international investment opportunities, sustainable mining development, geological surveys and mining technologies and equipment. The Tianjin event sees Red River Group take on administration and onsite support, alongside a joint venture with Australia’s Vertical Events that will mean the combined marketing and sales of the Australian pavilion. The 2015 conference will be held at the Tianjin Meijiang Conference and Exhibition Centre. SEPTEMBER 30 TO OCTOBER 1 The RIU Melbourne Resources Round-up has grown into one of Australia’s premier conferences for junior and mid-cap resources companies to present to the stockbroking, institutional and investor world. The two-day forum connects the burgeoning base of Australian resources companies with Melbourne’s investment community. National brokers and investors will hear from chief executives and managing directors on some of the nation’s most exciting minerals developments and what can be expected over the next year. The RIU Melbourne Resources Round-up is held at the Sofitel Melbourne On Collins. More information: www.verticalevents.com.au. Building on 13 years of excellence, this annual meeting point is the optimal place for the industry to come together to discuss the latest advances in the industry, swap experiences and learn from the best operators in the business. The keynote address will be given by Centennial Coal Executive General Manager Operations Mick Cairney. More information: www.longwallconference.com.au. NOVEMBER 4-6 The third Future Mining Conference 2015 takes place in Sydney. The event will address innovations and opportunities to transfer scientific and technological developments from other disciplines into the minerals industry. The conference provides a platform for communication from industry leaders, partners, engineers, executives, investors, government representatives, academics and other stakeholders. It looks to examine the human factors and skill needs for the future operations and identify blue sky scenarios of mining in the future, strategies of mining education and research, novel mining systems and future commodities and directions. The Second Off-Earth Mining Forum will be held as a post-conference event on November 5-6, 2015. More information: www.futuremining2015.ausimm.com.au. MINERS CAN’T AFFORD MACHINERY THAT LETS THEM DOWN That’s why Maytag is Built ‘Mine Spec’ Tough • Single 30AMP line for Safety • Turbo Vented Dryer • WA Outback Heat Resistant Idler Wheels • Stainless Steel Braided inlet Hose (optional) • Magnetic Ferrites to combat Power Fluctuations • Quick 35 Minute Wash • Reinforced Door Hinges • Only 47 Litres of Water per wash • chemical injection compatible In an environment where pindan dirt, oil, grease and wear and tear are part of the working day, reliable equipment is important in order to protect and clean resources workers’ uniforms. That’s why Dependable Laundry Solutions in Welshpool take the Maytag Stack Washer Dryer and ‘Mine Spec’ it ready for harsh Western Australian outback conditions. Contact Dependable Laundry Solutions (08) 9470 6868 46 OUT AND ABOUT Smit Lamnalco was a joint winner of AMMA’s Australian Women in Resources Alliance Award. (L-R) North Operations Manager Nikki Carter, Managing Director Tony Cousins and HR Advisor Adele Cunningham. Signing of the Mineral System Drilling Program Collaboration Agreement, showing (seated L-R) Minotaur Directors Andrew Woskett and Tony Belperio, (standing L-R) Deep Exploration Technologies CRC CEO Richard Hillis, Geological Survey of South Australia Director Steve Hill and Kingston Resources Director Stuart Rechner. Bechtel’s LNG construction teams from Western Australia and Queensland scooped the pools at the recent World’s Greatest Shave awards in Perth. (L-R) Bechtel’s Brittany Lomas, Peter McCormack (top individual fundraiser) and Sarah Why proudly display the WA and national top team and individual fundraiser awards and the Mining and Energy Challenge award. (L-R) Director of Australian Prospectors and Miners’ Hall of Fame Russell Cole, Jennifer Boulton, great-granddaughter of Francis Herbert Hughes and Keith Boulton at the AMEC Awards. Attendees at AusIMM’s Iron Ore 2015 Maximising Productivity event in Perth in July. Walkabout Resources Managing Director Allan Mulligan and Director Tom Murrell presenting the Lindi Jumbo Flake Graphite project to stockbrokers and investors in Perth. Image: Billy Fairclough, AMEC. Share photos from social and business events or from your job site. Send them to: [email protected].