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MINING REVIEW

THE AUSTRALIAN

PP100007123

ISSUE 80, OCTOBER 2014

PTYLTD

publication

Price slump threatens budgets


Mark Scott
IRON ore prices plummeted to a
five-year low this month, punching a
hole in national and state accounts and
threatening to swallow smaller miners.
The benchmark Chinese iron ore
price dropped to US$83.60 per tonne
on 5 September, its lowest level since
October 2009, on the back of a decline in

Green
light for
Olympic
Dam
expansion
BHP Billiton is set to begin heap
leaching trials at Olympic Dam
as part of its investigation into
the best method of processing
the mines copper and uranium.
(story on page 10)

demand in the Chinese property market.


Iron ore has been stuck below US$100/t
since mid-May.
The Bureau of Resources and Energy
Economics had predicted the iron ore
price would average US$105/t in 2014
before slipping to $US97/t in 2015.
Treasurer Joe Hockey said weaker
than expected iron ore and coal prices
would have a negative impact on the
Budget bottom line.

The June quarter national accounts


recorded a 4.1 per cent fall in Australias
terms of trade, dragged down by
non-rural commodity prices iron ore
key among them. Export prices declined
6.4 per cent overall in the quarter.
WA faces an even bigger revenue
problem, with its Budget forecasts for
2014-2015 counting on the iron ore price
averaging US$122.70.
Ratings agency Moodys Investors

Service last month stripped WA of its


AAA credit rating for the first time
since 1996, partly because of the states
ongoing reliance on volatile iron ore
royalties.
Improved [fiscal] results will be
challenged by an increasing reliance on
more volatile mining royalties, which is
forecast to amount to nearly one-quarter
(continued on page 3)

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

CONTENTS
PUBLISHED BY

NEWS
General News

Special Profiles
AngloGold Ashanti

22

BHP Billiton Iron Ore

28

Evolution Mining

Atlas Iron
Aurizon

Northern Minerals

Doors, Docks & Ramps for Mining

106

Electrical Contractors

107
ABN 28 112 572 433
GENERAL MANAGER
Brad Francis

38

MANAGING EDITOR
Reuben Adams

42

SUB-EDITOR
Louise Baxter
JOURNALISTS
Rachel Dally-Watkins, Jane Goldsmith,
Courtney Pearson, Mark Scott,
Emma Brown, Jo Campbell

45
46

AusRock 2014

49

50

Rio Tinto Coal Australia

52

Dampier Salt

55

historical p108

Data Management

65

Employee Mental Health & Wellbeing

66

Commercial & Corporate Catering

71

Native Title Consultants

72

Indigenous Contractors

76

Negotiation Skills Training

78

Eco Mining

82

Fuel Services, Tanks & Hoses

86

Filters and Filtration

89

High Pressure Cleaning

92

Vehicle & Wheelwash Systems for Mining

BRISBANE OFFICE
Chris Foley (07) 3392 3003 / 0405 121 997
OFFICE MANAGER
Nikki Retallack
PRINTER
Rural Press

leisure p109

79

Meteorological Solutions

98

Tracking & Tagging

101

Custom Moulding for Mining

104

CONTACT US
P: (08) 6314 0300
F: (08) 9481 7322
160 Beaufort Street, Perth, WA 6000.
PO Box 8023, Perth BC, WA 6849.
E-mail the editor at editorial@miningoilgas.
com.au.
For all other emails to staff, the standard
convention is, first name (only) @miningoilgas.
com.au

94

Earthmovers & Excavators

GRAPHIC DESIGNERS
Adam Carriero, Joelle Chan,
Chris Wade

SALES EXECUTIVES
Biliana Harman, Donna Orton,
Christine Rippey, Paul Wilton,
Lee Darracott, Stephen Croxson

58

RESEARCHERS
Jessica Clapham, Alex Crowther,
Skye Fitzgerald

SALES MANAGER
Andrew Collett

OTHER SECTIONS
Companies Gearing Up

PTYLTD

35

Mining In The Northern Territory

105

44

Australia-Malaysia Business Council


M&E Indonesia

Freight Forwarders

the interview p110

The Australian Mining Review is a free publication to all


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www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

GENERAL NEWS

FIFO practices under spotlight

Russia threatens
Australias crown
Mark Scott
RUSSIA could soon overtake Australia
as the worlds second biggest gold
producer, an industry lobby group has
warned.
The Gold Industrialists Union,
Russias peak gold producers group, last
month upgraded its 2014 output forecast
to 275t after the countrys production
soared 26.6 per cent in the first half of
the year.
Australia produced 266.1t of gold in
2013, second only to China in terms of
output, but less gold exploration in WA
may threaten to stifle further production
growth.
Gold exploration expenditure in WA
declined by about 50 per cent in the year
to March, according to the Australian
Bureau of Statistics.
Gold Industrialists Union head
Sergei Kashuba told Reuters Russian
miners were increasing production
to compensate for a global gold price
slump, with the price of the precious
metal down 28 per cent in 2013.
The Gold Royalty Response Group,
formed to lobby against potential royalty
increases in WA, warned that increased
Russian production would impact WA,
which produces about 70 per cent of the
nations gold exports.
Group spokesman Les Davis said
WA gold miners were confronting an
increasingly competitive global market
and could not sustain any further cost
increases.
The big increase in Russian gold
production comes at the same time as
gold producers in Western Australia are
putting exploration on hold, he said.
Our industry has been a mainstay
of the Western Australian economy
for more than a century but we cant
compete if we continue to face increased
cost burdens.
A WA Government review into
mineral royalties is expected to be
handed down in coming months.
Mr Davis said WA gold miners paid
their fair share of taxes and royalties in
a very tough global market.

MORE than a third of fly in, fly out, workers


believe their companies fail to understand
the needs of FIFO employees and their
families, a new survey has found.
The survey into FIFO life came as the
WA Parliament launched an inquiry into
mental health issues among FIFO workers
after nine suicides in less than 12 months
rocked the states workforce.
Conducted by Creating Communities
and FIFO Families, the FIFO Life Survey
of more than 800 workers found 62 per cent
of participants were satisfied with their life
working FIFO, while 36 per cent said their
companies did not understand their needs.
Just 2 per cent reported having been
involved in an induction of family members
into the FIFO lifestyle, and the survey found
FIFO workers without children were more
satisfied with the lifestyle than those with.
FIFO Families founder Nicole Ashby
said the industry needed to continually
seek to improve the satisfaction, health and
wellbeing of FIFO workers.
Greater preparation for FIFO, induction
and ongoing support for workers and
families will help promote satisfaction and
connectedness, which will also naturally
lead to greater productivity for companies,
she said.

FIFO practices will come under the


spotlight in WA in coming months, with the
state Liberal and National parties backing
a Labor motion for an Education and Health
Standing Committee inquiry into mental
health in the sector.
The inquiry will look at contributing
factors that lead to mental illness and suicide
amongst FIFO workers; current legislation,
policies and practices for workplace mental
health in WA; and current government,
industry and community initiatives to
deal with the issue, and how they can be
improved.
Committee chairman Graham Jacobs,
the Liberal Member for Eyre, said the issue
was bipartisan and not one to play politics
with.
Almost all of us have FIFO workers in
our electorates and we recognise some of the
stress factors and risks, he said.
We need to look at the responsibilities
of employees and employers, and what
legislative policies could be implemented
to make a difference in the treatment of
mental illness and the suicide rate among
FIFO workers, particularly from depression.
This will not necessarily be an easy
inquiry, but the committee believes it is
important enough that we put our energies

into it immediately.
State Opposition leader Mark McGowan
said if the inquiry saved just one life, it
would be worth it.
I am confident this inquiry will examine
the issues surrounding mental health and
help avert future suicides.
However, Chamber of Minerals and
Energy of Western Australia chief executive
Reg Howard-Smith said there was no
evidence to support claims of a higher
occurrence of mental health issues in the
FIFO workforce.
He said some sought to stigmatise FIFO
employees and perpetuate myths associated
with FIFO, despite a growing bank of
research highlighting that employees
shared the same health and lifestyle outlook
as other Western Australians.
Put simply, its a matter of choice for
employees a choice about where they live
and where they choose to work, he said,
Dr Jacobs said the committee would
provide a preliminary report by the end of
the year, with a final report to be tabled in
March 2015.
For more about this issue, see the
Employee Mental Health and Wellbeing
section on page 66.

Price slump threatens budgets


(continued from page 1)

of revenues by FY2017/18, up from


around 8 per cent in FY2006/07, the
agency said in a note.
The states assumption on royalties
is underpinned by a fairly optimistic
forecast for iron ore prices.
WA Treasurer Mike Nahan said the
state had become reliant on iron ore
revenues because the Commonwealth
was redistributing GST revenue to other
states.
Smaller mining companies are coming
dangerously close to slipping below
estimated break-even prices, with the
weak market this month claiming its
biggest scalp to date.
According to global financial services
company UBS, Rio Tinto and BHP
Billiton needed iron ore prices at US$43/t
and US$45/t, respectively, to break even,
making it unlikely either would struggle
through the downturn.
Fortescue Metals Group and BC Iron
are also ahead of their breakeven prices,
both in the US$70/t range; however
Atlas Iron and Gindalbie Metals may be
staring down losses. Atlas breaks even at
$US82/t, UBS analysis earlier this year
found, while Gindalbie needs $US91/t to
stay afloat.
Western Desert Resources, which
owns and operates the Roper Bar iron

WA Treasurer Mike Nahan.

ore project in the Northern Territory,


went into voluntary administration this
month over an $80 million debt.
Company secretary Mark Seatree said
the significant fall in the iron ore price,
coupled with a strong Australian dollar,
had substantially contributed to the
outcome.

Iron ore was averaging about US$136/t


when Roper Bar opened in December.
The low price has also thrown into
doubt BC Irons $250 million takeover
bid for the Kerry Stokes-controlled Iron
Ore Holdings.
Announced earlier this year, the deal
is contingent on the price of iron ore not
dropping below $90/t for 20 consecutive
days during the offer period. The 5
September low, which equates to about
$89.15/t, was the first time the price had
dropped below the cut off.
Exploration spending continued to
fall in the June quarter on the back of
the softer conditions.
The trend estimate for total mineral
exploration expenditure fell 9.6 per cent
about $46.8 million in the quarter,
down 34.3 per cent on the June 2013
quarter.
WA alone saw a 14.5 per cent decrease
in its exploration spending.
Association of Mining and Exploration
Companies chief executive Simon
Bennison said the historically low level,
including investment on new deposits
dropping to post-global financial crisis
levels, reflected the challenges facing
the industry.
Given the long lead time from
discovery to a producing mine, these
figures are extremely concerning, he
said.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

GENERAL NEWS

Nova mining
lease secured

Axe falls on mining tax

Mark Scott

Mark Scott

CONSTRUCTION
on
Sirius
Resources Nova nickel mine is on
track to begin early next year after
the WA Department of Mines and
Petroleum granted the projects
mining lease in record time last
month.
Located in the Fraser Range near
Balladonia, the $473 million project
would produce about 26,000t per
annum of nickel, 11,500tpa of copper
and 850tpa of cobalt in 10 years, with
an all-in sustaining cash cost of $2.32
per pound of copper.
Securing the lease allows Sirius
to begin obtaining the remaining
approval and permits in time for an
early 2015 kick-off.
Sirius managing director Mark
Bennett said the lease was another
important milestone for the project.
This shows that despite the
various fashionably negative views
often expressed, Western Australia is
a good place to explore, invest and do
business, he said.
The 25-day turnaround time
was a new record for mining lease
approvals, according to Mines and
Petroleum minister Bill Marmion.
This is 40 days less than the
target of 65 days under our revamped
approvals system, Mr Marmion said.
This is reform in action, and
means this exciting new resource in
the Fraser Range near Norseman will
likely go from discovery to production
in three years, creating more
employment in our mining sector.
The announcement came less than a
fortnight after Sirius signed a mining
agreement with the Traditional
Owners of the land containing Nova,
the Ngadju people.
According to Sirius, the agreement
includes a range of economic,
educational, vocational and cultural
initiatives for the benefit of the
Ngadju people
Mr Bennett said the agreement sets
an example for how mining companies
could engage and co-operate with
Aboriginal communities to provide
an enduring legacy stretching beyond
the mine gate.
The development of the nations
resources can be done in harmony with
the key cultural and environmental
values and aspirations of Aboriginal
and non-Aboriginal people alike, he
said.
I
would
like
to
publicly
acknowledge the Ngadju People as
traditional owners of the land, and
their right to have a say, to participate
in the venture, and to benefit from it.

THE much-maligned mining tax has finally


been axed after the Coalition Government
cut a deal with Clive Palmer to fulfil its
remaining major election promise.
Repeal of Labors Mineral Resources
Rent Tax (MRRT) passed the Senate
this month after it was knocked down
in July over Palmer United Party (PUP)
amendments to save associated spending
measures.
Under the deal with the PUP, the
Government agreed to delay the abolition
date on key measures in the legislation
until after the next election.
The Low Income Superannuation
Contribution will be abolished from 1 July
2017, while the Income Support Bonus and
Schoolkids Bonus will be axed from the
end of 2016. The Schoolkids Bonus will be
means-tested until its abolition.
To cover the cost of the measures, the
Government will delay superannuation
contribution increases to July 2021,
freezing
compulsory
superannuation
payments at 9.5 per cent.
Under
Labor
legislation,
the
superannuation guarantee rate was to rise
to 12 per cent by 2019.
Treasurer Joe Hockey said the repeal
marked the end of a long and sorry saga
for the Australian mining industry.
To have a mining tax that did so
much reputational damage to Australia
and at the end of the day combined with
the spending measures, left the Budget
significantly worse off, he said.
It has been a dead hand on the mining
industry.
According to the Treasurer, the amended
repeal will cost the budget about $6.5 billion
over the next four years, which would be
recovered by delaying the superannuation
increase.
Over the next decade the budget will be
$50 billion better off, he said.
Finance minister Mathias Cormann said
the deal was not the Coalitions preferred
plan, but it was the best it could get.
The alternative was for the mining tax
to continue to remain in place and hold
Australia back when it comes to generating
stronger growth to create more jobs, he
said.
So we went for the best possible deal
that we could achieve in the national
interest.
Mr Hockey blamed Labor for the deals
impact on superannuation, accusing the
Opposition of not letting the Government
keep its promises.
Labor accused Tony Abbott of breaking
his election promise not to touch
superannuation.
The Prime Minister cares more about
sneaky backroom deals than the retirement
incomes of millions of people, Labor

Treasurer Joe Hockey called the tax a dead hand on the mining industry.

Treasury spokesman Chris Bowen said.


PUP Senate leader Glenn Lazarus
described the tax as unjust, unfair and
unnecessary.
This tax is hurting investment
in Australia and diminishing our
competitiveness on the world stage, he
said.
The Palmer United Party has always
supported the removal of the mining
tax, but we would not allow the tax to be
removed unless key elements including
the schoolkids bonus, the low income super
contribution and the low income support
bonus were retained.
Greens leader Christine Milne said the
deal between the Government and the PUP
was a conflict of interest, given Mr Palmers
mining background.
This is exactly what the Australian
people were concerned about the prospect
of a mining billionaire coming in here and
changing the law to facilitate a benefit to
the big miners at the expense of ordinary
working Australians, she said.
We should be raising money from the
big miners in order to put it into health and
education and benefits.
The repeal was widely welcomed in the
industry.
Fortescue Metals Group chief executive
Nev Power said the repeal was a sign
Australia was open for business and serious
about encouraging mining development
and investment.
The Minerals Resource Rent Tax was

a bad piece of legislation that was poorly


designed, it targeted the wrong part of
the economy and was introduced without
consulting the industry, he said.
Minerals Council of Australia chief
executive Brendan Pearson said the
repeal was a major step towards Australia
reclaiming its status as a globally
competitive producer and attractive
destination for mining investment.
Chamber of Minerals and Energy
of Western Australia chief executive
Reg Howard-Smith said the removal
of unnecessary taxes would assist
the resources sector to become more
internationally competitive.
The MRRT has been both inefficient
and ineffective while adding a significant
compliance and regulatory burden to
industry, he said.
Business Council of Australia chief
executive Jennifer Westacott said the
tax had acted as a disincentive to invest
in Australias minerals sector at a time
when the industry is facing pressing
challenges to improve productivity and cost
competitiveness
The mining industry is, and will
continue to be, a core part of Australias
economic future...we need to make sure
that governments do not put up barriers in
the way of its ongoing success, she said.
It is disappointing that some of the
provisions in the legislation still act as a
burden on Australias already unsustainable
medium-term fiscal position.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

GENERAL NEWS

Conference
Onshore option for controversial dredging
strengthens
WA-Africa ties
Mark Scott

Jane Goldsmith
WA has worked to consolidate ties
with Common Market for Eastern and
Southern Africa (COMESA) members at
Paydirts Africa Down Under conference,
after establishing a memorandum of
understanding (MoU) earlier this year.
Speaking at the Perth-based event,
WA Premier Colin Barnett said the MoU
would provide economic opportunities
for both WA and COMESA through the
sharing of knowledge and technology in
the resources and agriculture fields.
[WA] has a world class system of
legislation and regulation governing
its mineral and petroleum sectors, and
we want to pass on our experience to
assist African countries in building
resources industries that are profitable,
sustainable, safe, and beneficial to their
citizens, Mr Barnett said.
The primary aim of the MoU is
to tap into [WAs] expertise to help
African nations to further develop their
mining laws, tenement systems, and
environmental and safety standards.
This will also bring benefits to the
many WA companies with investments
in Africa, and help to build trade
relationships within the region.
WA exports to COMESAs 19 member
nations Burundi, Comoros, Democratic
Republic of the Congo, Djibouti, Egypt,
Eritrea, Ethiopia, Kenya, Libya,
Madagascar,
Malawi,
Mauritius,
Rwanda, Seychelles, Sudan, Swaziland,
Uganda, Zambia and Zimbabwe
totalled $207 million in 2013.
Mr Barnett also warned COMESA
nations to resist pressure from
resources companies for subsidies.
Often international companies will
put pressure on small countries that
they should provide concessions and
even subsidise arrangements, he said.
I dont think those countries are in a
position to do that and I dont think they
should do it.

DREDGING material from the Abbot


Point coal port expansion in Queensland
will be dumped on land rather than in the
Great Barrier Reef Marine Park under a
state government plan designed to ease
environmental concerns.
North Queensland Bulk Ports (NQBP)
already has Federal Government approval
to dump 3 million cubic metres of spoil from
the controversial expansion project at sea,
however the Queensland Government will
push the company towards taking the new
land dumping option.

The Adani Group and GVK Hancock-led


port expansion is a vital stage in development
of coal in Queenslands Galilee Basin.
Queensland Premier Campbell Newman
said the onshore dumping strategy,
approved by State Cabinet earlier this
month, was a win-win situation.
It will protect the unique values of the
Great Barrier Reef and allow for the staged
development of the important port of Abbot
Point, he said.
Our government made it a priority to
develop the resource-rich Galilee Basin
to create up to 28,000 jobs and economic
opportunities for a new generation of
Queenslanders.

Deputy Premier and State Development


and Planning minister Jeff Seeney said the
government would ask Federal Environment
minister Greg Hunt to fast-track approval of
the strategy.
The dredge material is likely to be
deposited at an existing site within the
Abbot Point State Development Area to
enhance port development, in the same way
that expansions are successfully occurring
at the Port of Brisbane, he said.
Queensland Resources Council chief
executive Michael Roche said the new option
would address community and tourism
industry concerns about disposing dredge
material in the marine park.

No dredging material will be dumped in the Great Barrier Reef Marine Park under a new plan.

Australia reassesses uranium alliances


Jane Goldsmith
AUSTRALIA has consolidated new terms
for uranium trade with India shortly after
abandoning a mostly symbolic yellowcake
sales agreement with Russia.
Prime Minister Tony Abbott announced
uranium sanctions against Russia in early
September, as a part of efforts to increase
pressure against Moscow for its continued
Ukrainian aggression.
There will be no uranium sales to
Russia until further notice, Mr Abbott told
Federal Parliament.
Australia has no intention of selling
uranium to a country which is so obviously
in breach of international law as Russia
currently is.
Australia stands with countries around
the world in urging Russia to de-escalate
tensions, pull back its military, and engage
in genuine dialogue with Ukraine.
However, the move could be mostly
symbolic, as only test shipments have been
exported to Russia since the two countries
signed a uranium agreement in 2007.

According to the World Nuclear


Association, Russia sources the bulk of its
nuclear fuel demands domestically and via
imports from neighbouring Kazakhstan.
Mr Abbott announced the sanction hours
before boarding his first flight as Prime
Minister to Indian capital New Delhi,
where he signed a bilateral Civil Nuclear
Cooperation Agreement with newly elected
Indian Prime Minister Narendra Modi.
The decision to sell uranium to India
was made despite the countrys refusal
to sign the Nuclear Non-Proliferation
Treaty, which would require the country to
surrender any nuclear weapons.
India is thought to have about 100
nuclear weapons. The country exploded its
first nuclear arm in 1974 and conducted its
most recent tests in 1998, according to the
US Department of State.
Mr Abbott argued that India was a safer
option for the trade deal than Russia.
If we are prepared to sell uranium
to Russia, and weve been prepared to
do that in the past, surely we ought to
be prepared to provide uranium to India
under suitable safeguards, Mr Abbot

told ABC News 7.30 program.


My hope...is to deepen the friendship
between Australia and India at a time of
renewed optimism in India under the new
government of Prime Minister Modi.
India is a fully functioning democracy
with the rule of law and I think we should
be prepared to support India.
The Chamber of the Minerals and Energy
WA (CME) welcomed the agreement as
good news for WAs uranium industry.
The agreement with India will enable
WA to enjoy long-term benefit from
additional royalties, expanded employment
opportunities, whilst expanding our
position as a key supplier of low-emissions
fuels in the international fight against
climate change, CME chief executive Reg
Howard-Smith said.
Companies in WA are well positioned
to become significant global players in
the uranium industry with enormous
quantities or known resources of uranium
oxide across many potential projects.
CME said that India currently operated
21 nuclear power reactors, with a further
six under construction and another 57

being considered. India aims to have


almost 15,000 megawatts of nuclear
capacity online for its electrical power
program by 2020.
Like the mining of other energy and
mineral commodities in WA, the mining
of uranium is subject to strict safety,
environmental and security regulations,
Mr Howard-Smith said.
Toro Energy managing director
Vanessa Guthrie, who accompanied
Mr Abbott on his trip to India, said the
country had the third fastest growing
nuclear power industry in the world after
China and Russia, and significant new
uranium production would be required to
meet future demand.
Australia, with its abundance of
uranium resources, has the capability of
being a significant contributor to clean
energy solutions globally, Dr Guthrie
said.
The opportunity to increase our
trading base with India recognises
Australias reputation as a reliable trading
partner, with near-term uranium supply
capability.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

GENERAL NEWS

Tiger snaps up
last Kipoi stake
A new acquisition deal will see Tiger
Resources become the sole owner of the
Kipoi copper project in the Democratic
Republic of Congo and the largest copper
cathode producer listed on the ASX.
Tiger already has a 60 per cent stake in
the project through its interest in project
operator La Socit dExploitation de Kipoi
SA (SEK), and will acquire the remaining
40 per cent of SEK from DRC state mining
entity La Gnrale des Carrires et des
Mines (Gecamines) for US$111 million.
Upon completion, SEK will become a
wholly-owned subsidiary of Tiger.
As part of the deal, Tiger has already paid
a US$6.5 million deposit and will make the
remaining payment before 10 November.
Once the deal has been completed, Tiger
will cede a 5 per cent interest in SEK to
the DRC Government to bring the Kipoi
projects mining title into alignment with
the current mining law and regulations.
Kipoi has been the cornerstone of our
business over the past seven years and
together with our DRC business partner
we are proud of our achievements, Tiger
managing director Brad Marwood said.
We see the potential to grow our
business by focusing on near-mine
exploration and sourcing plant feed
from elsewhere in the Kipoi region, thus
ensuring the mine should operate well into
the next decade.
We believe the acquisition of the
additional 40 per cent interest in SEK
to be earnings-accretive and offers the
opportunity to grow our business and
cement our future in the DRC as a 50,000t
per year copper cathode producer once the
proposed expansion of the SXEW facility
has been completed.

Boom effects
explored
AUSTRALIAS per capita household
income would be 13 per cent lower had the
mining boom never struck, new Reserve
Bank of Australia modelling has found.
The boom also drove up wages and
kept down unemployment, according to
an RBA report released last month, which
used macroeconomic modelling to study
the impacts of the boom on the Australian
economy, creating an alternative history
in which the boom never occurred.
The report found in 2013 the population
was 1 per cent higher as a result of higher
migration from the boom, while GDP was
up 6 per cent.
The exchange rate was 44 per cent
higher in 2013, as a result of greater global
mineral demand, higher mineral prices and
more investment in Australia.
Unemployment was 1.25 percentage
points lower in 2013 with the boom, while
wages were up 6 per cent.
A larger tax base led to higher average
tax rates, driving up household income by
about 13 per cent, and leading to a rise
in motor vehicle and durables purchases
between 25 and 30 per cent.
Despite the positive impact on living
standards, the boom had negative knock-on
effects to other industries.
Investment in manufacturing was higher
in the early years of the boom, however as
the investment boom faded, manufacturing
output began to drop.
Australias agriculture industry was hit
hardest by the increased exchange rate,
with exports about 20 per cent lower.

WA offloads priority assets


Rachel Dally-Watkins
THE WA Government has announced
the first tranche of assets for sale in a
privatisation strategy aimed to reduce debt
levels and regain the triple-A credit rating.
Premier Colin Barnett said the Utah
Point Bulk Handling Facility, Kwinana
Bulk Terminal and Market City in Canning
Vale had been identified as priority assets
for sale.
The three assets are expected to
generate between $1 billion and $2 billion,
he said.
The Utah Point Bulk Handling facility
in Port Hedland is one of four berths owned
by the Pilbara Ports Authority. It includes
a shiploader, two stockyard product storage
facilities and supporting infrastructure.
The facility became operational in late
2010 and has an export capacity of 10
million tonnes per annum, which is largely
comprised of iron ore, manganese and
chromite. In the 2012-2013 financial year,
the facility earned $86.5 million in revenue,
with $44.1million in expenditure.
The Kwinana Bulk Terminal is owned
and operated by the Fremantle Port
Authority; it imports and exports bulk
products including coal, iron ore, liquefied
petroleum gas, cement clinker, gypsum, nut
coke and slag. In the 2012-2013 financial
year it earned $61.6 million in revenue
with total operating costs of $36 million.
Mr Barnett said the sale process would
balance risk and return and would assess how
the assets could be managed, while providing
benefits to stakeholders in the community.

The Utah Point Bulk Handling Facility in Port Hedland is one of the first assets to go up for sale in a
bid to reduce state debt.

These assets are better placed in the


private sector. They are likely to be better
run by the private sector, he said.
The port assets are likely to be sold as a
long-term lease.
Treasurer Mike Nahan said this was the
start of an ordered asset sales program.
We continue to review our balance
sheet, and the port facilities and Market
City are the most market-ready. Now

we start the process of due diligence, Dr


Nahan said.
However, Dr Nahan told media that this
was by no means a fire sale he said the
government didnt have to sell the assets,
and would only do so if they were valued
adequately.
The WA Government could realise up
to $6 billion from a continued program of
asset sales in the next three years.

Roy Hill running ahead of schedule


Mark Scott
GINA Rinehart has indicated export from
her Roy Hill iron ore project may begin ahead
of schedule, with owner-operator mining
officially kicking off at the $10 billion Pilbara
operation last month.
In a statement, Ms Rinehart described
first owner-operator mining as a significant
milestone for the project.
Against weakening global conditions and
a lower iron ore price, Ms Rinehart said Roy
Hill was bucking the trend.
As mining investment generally is
contracting in Australia, Roy Hill and
Hancock Prospecting is against the trend

Roy Hill will employ thousands at peak.

and continues to invest and grow, she said.


Roy Hills staff morale is high, and the
hardworking team hope to be able to bring
the first shipment due September 2015,
ahead of time.
At peak, Roy Hill will export 55 million
tonnes of high-grade iron ore per annum.
The project is 70 per cent owned by Ms
Rineharts Hancock Prospecting; the
remaining 30 per cent was sold last year to
South Koreas Posco and STX Corporation,
Taiwans China Steel Corporation and
Japans Marubeni.
Ms Rinehart said Posco chief executive
Oh Joon-Kwon had made a recent visit to the
project and had described it as his companys
most important international asset.

This is a project that will employ


thousands of Australians for decades and
earn much needed export revenue for
Australia, she said.
Roy Hill is currently the largest single
mainland construction project in Australia.
The announcement came amid reports
Hancock Prospecting had shut down its
exploration operations in Mongolia.
Fairfax Media reported the group wrote
off its Mongolian investment last year with
an intention to wind up the subsidiary
company in the near future.
A Hancock Prospecting spokesman told
Fairfax the company had assessed mineral
tenements in Mongolia but no longer had any
interests in the country.

10

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THE AUSTRALIAN MINING REVIEW OCTOBER 2014

GENERAL NEWS

BHP announces demerger


Mark Scott
BHP Billiton is set to split into two,
spinning off its aluminium, coal,
manganese, nickel and silver assets
in the companys biggest structural
shake-up in more than a decade.
The company announced last month
it would create an independent metals
and mining company which it is calling
NewCo via a demerger, leaving BHP
to focus on its iron ore, copper, coal,
petroleum and potash operations.
NewCos assets would include the
Cannington silver-lead-zinc mines in
Australia; BHPs manganese mines
and alloy facilities in Australia and
South Africa; aluminium refineries and
smelters in Australia, South Africa and
Mozambique; and non-operated interests
in bauxite, alumina and aluminium
assets in Brazil.
Illawarra Coal, Energy Coal South
Africa and Colombias Cerro Matoso
nickel operation would also go to NewCo.
About 24,000 staff are employed or
contracted at NewCo assets and minimal
staffing changes are expected.
BHP shareholders would be entitled to
100 per cent of NewCos shares through a

Miner sets
sights on
Congo project
GOLD and copper miner AusAmerican
Mining will take over Chinas Shenglong
International Investment, which owns
exploration assets and a direct shipping
ore (DSO) operation in the Republic of the
Congo, the company announced this month.
AusAmerican signed a binding
agreement to acquire a 77.58 per cent in
Shenglong for US$103.44 million, to be paid
in instalments over the next two years.
Shenglong outright owns Congolese
company Societe Lulu De Mine, which hold
a 90 per cent interest in two copper assets
MPassa-Moubiri and Mindouli.
The Moubiri project is a high-grade, cash
flow positive copper-lead-zinc operation
already in production and has exported
two DSO shipments to Chinese customers,
while the Mindouli exploration permits
cover highly prospective historical mining
areas.
The company aims to fund the initial
payment through a US$60 million debt
facility, yet to be secured.
AusAmerican executive chairman Peter
Landau said the acquisition marked a
transformative milestone for the company.
The Moubiri project is a [copper/lead/
zinc] DSO asset currently in production...
we believe we can ramp up production in
the short term to provide significant cash
flow margins for the company, he said.
Mindouli is a development project
with significant exploration and feasibility
work undertaken to date and, importantly,
a clear path forward to establish the next
stage forward for development.
We believe this opportunity represents
outstanding value to current and
prospective shareholders.
The takeover is conditional on
shareholder and regulatory approval.

pro-rata in-specie distribution, with the


company to be listed on the ASX.
BHP chief financial officer Graham
Kerr would become NewCos first
chief executive, while head of investor
relations Brendan Harris would be chief
financial officer.
Current BHP director David Crawford
will be chairman of the new company.
NewCos head office would be in
Perth, with a regional head office in
Johannesburg.
BHP
chief
executive
Andrew
Mackenzie said the demerger would
allow both companies to achieve their
full potential, while creating new
opportunities for BHPs staff and
communities.
In a single step, we will significantly
increase BHP Billitons focus on the
exceptionally large resource basins that
underpin its competitive advantage...
we will become a higher-margin,
higher-return business, he said.
With a simpler portfolio, we are
targeting sustainable, productivity-led
gains of at least US$3.5 billion per
annum by the end of the 2017 financial
year.
Mr Mackenzie admitted the NewCo
assets were smaller scale than BHPs,
but said they were among the largest
and highest quality in their sectors.
We believe they will be more valuable
in a purpose built, independent company
than they would be in BHP Billiton, he
said.
BHP chairman Jac Nasser said the
demerger would simplify the groups
portfolio, provide investors with choice
and unlock value in both companies.
Mr Nasser also moved to allay

concerns BHPs Australian operations


were taking precedence over its South
African arm in the new company.

BHP shareholders will vote on the


demerger once the necessary approvals
are in place.

Graham Kerr will become NewCos chief executive.

Canadian producer acquires WA project


Jane Goldsmith
THE sale of the prospective Tuckanarra
project to a Canadian gold producer will
boost the cash reserves of gold junior
Phosphate Australia.
Phosphate Australia sold the project in
WAs Murchison region to Canadian producer
Monument Mining for $3.9 million.
The companies signed a Tenement
Purchase Agreement for the project in late
August, which included a $2 million cash
payment and 10 million Monument shares
(valued at about $1.9 million).

Monument paid a non-refundable


$50,000 deposit to consolidate the deal, and
the transaction is expected to be formally
completed by 24 October.
The shares will be issued at CAD$0.25
per share and will be subject to a statutory
four months and one day hold period
imposed by Canadian securities legislation.
After this period, the shares will be freely
tradable on the Toronto Stock Exchange.
Phosphate Australia had completed
a maiden indicated and inferred JORC
resource at Tuckanarra, 75km south of
Meekatharra, totalling 2.02 million tonnes
at 1.55g per tonne of gold, for 100,700oz of

gold from 11 separate prospects.


Phosphates
directors
said
the
project was characterised by shallow
mineralisation, good exploration potential,
and proximity to existing transport and
gold processing infrastructure.
[The sale] will represent a substantial
boost to the cash backing of [Phosphate]
and opens up a number of options as the
company moves forward, the company
said.
It is the intention of [Phosphate] for the
cash component of the sale to be used for
potential future acquisitions, exploration
and general working capital.

Green light for Olympic Dam expansion


Rachel dally-watkins
THE South Australian Government has
given the green light for the latest stage
of BHP Billitons Olympic Dam expansion
project.
A three-year copper and uranium heap
leaching trial has been determined not a
controlled action under the Environment
Protection Biodiversity Act 1999, allowing
the company to build and operate a heap
leach demonstration plant at the mine site
without further regulatory delays.
However, the trial will be subject to a
range of best practise measures to ensure
adequate
environmental
protection,
including
construction
specifications,

monitoring
requirements
and
site
decommissioning provisions.
Trialling this technology is a critical
step towards ultimately realising the
economic and employment potential of the
Olympic Dam expansion, which continues
to be of significant importance to South
Australians, Parliamentary Secretary for
the Environment Simon Birmingham said.
BHP Billitons proposal will develop
a heap leach demonstration plant of
pilot-scale to undertake a proof of concept
assessment of technology for the leaching
of copper and uranium.
The heap leach trial will use
approximately 36,000 tonnes of ore per
annum which represents less that 0.4
per cent of the annual production of the

existing Olympic Dam operation.


The Olympic Dam expansion has the
potential to give a significant lift to the
South Australian economy and this green
light should be warmly welcomed by all
who hope to see more jobs generated in the
future.
The trial marks a change of tactic for
BHP, who claimed in a 2009 environmental
impact statement that recoveries of copper
and uranium from heap leaching would
be too low for the method to be considered
viable. BHP claimed at the time it would
still investigate the option further, and it
has now taken preference over a previous
plan to spend more than $30 billion
digging the worlds largest open pit and
constructing new smelters and mills.

12

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THE AUSTRALIAN MINING REVIEW OCTOBER 2014

GENERAL NEWS

Clermont
jobs axed

Hammer share placement proceeds

FOLLOWING its $1 billion acquisition


of the Clermont coal mine in June
this year, Glencore has announced
it will cut 100 jobs from the central
Queensland site.
Workers were told in early
September that the positions would
be ceased by October. Glencore took
over operatorship of the mine when it
purchased an interest from Rio Tinto;
the mine is held in joint venture
between Glencore and Sumitomo
Corporation (25.05 per cent each),
Mitsubishi Development (31.4 per
cent), J-Power Australia (15 per cent)
and JCD Australia (3.5 per cent).
Glencore immediately began a
review following the acquisition,
resulting in the job losses.
Glencore has focused on reducing
costs and maximising efficiencies
across our business in the face
of falling margins, a Glencore
spokesman told media.
The mining complex will continue
to support a workforce of more than 600
after the changes are implemented.
The company stated that the
Clermont mine was still an important
part of its coal portfolio, and that the
changes were unlikely to affect annual
coal production, which was expected
to reach about 13 million tonnes by
the end of the year.

A Perth-based diversified explorer has issued


a $1.2 million share placement onto the ASX
after a planned asset sale failed to finalise.
Hammer Resources announced a trading
halt in early September to launch 8,888,888
shares at $0.135 per share into the market.
The share placement launched after
Hammers planned Mt Philip asset sale,
within the Mount Isa project portfolio, was
postponed.
Adelaide-based Developed Iron Ore
confirmed in mid July it had completed
satisfactory due diligence for the sale and
intended to continue with the acquisition.
However, in late August Hammer stated
the companies had been unable to finalise
negotiations for the associated formal
documentation.
The timetable for payment of the
consideration for the acquisition of the
project... will not be met, Hammer announced
in a statement.
Negotiations in respect of the proposed
sale of the project remain ongoing.
The sale was initially announced on 9
December 2013 with an agreed $1.5 million
cash offer to be completed in staged payments.
The offer also detailed a royalty payment
comprising 0.5 per cent of gross proceeds of
the sale of iron extracted from the project, and
Hammer would further retain all rights to
minerals other than iron ore.
Proceeds are planned to fund targeted
exploration programs and drilling at the
companys Mount Isa and Mount Morgan
projects in Queensland.
The deal remains idle pending further
negotiations.

Jobs cut at
Kestrel coal
RIO Tinto Coal Australia (RTCA) has
confirmed substantial job cuts at Kestrel
mine across September, almost a year
after its US$2 billion extension opened.
The Kestrel extension project,
which added 20 years to the mines
life and increased production capacity
to 6 million tonnes per annum of hard
coking and thermal coal, officially began
operation last October.
However, a Rio Tinto spokesperson
said with tough conditions continuing
to plague Australias coal industry, cost
reductions at Kestrel were required to
ensure the mine remained competitive.
The Australian coal mining industry
is
facing
extremely
challenging
conditions, with prices continuing
to decline through 2014 and the
Australian dollar remaining strong, the
spokesperson said.
We have worked to significantly
reduce costs and improve productivity
across all RTCA mines, but still more
needs to be done.
Regrettably, a number of roles at the
Kestrel mine need to be reduced, as part
of ongoing efforts to ensure the operation
is competitive.
We will be consulting with all
employees about these changes and
providing support for those affected.
Kestrel mine, previously known as
Gordonstone, is a joint venture with
RTCA subsidiary Queensland Coal (80
per cent).
The mine, 40km northeast of Emerald
in Central Queensland, is RTCAs
only underground coal operation and
Japanese multinational company Mitsui
Kestrel Coal Investment (20 per cent).

Jane Goldsmith

The Mt Philip prospect is within Hammer Resources Mount Isa project. [Image: Hammer Resources]

Conflict impacts palladium prices


Rachel Dally-Watkins
PALLADIUM prices have experienced
volatility this month, soaring to a
13-year high before posting the steepest
decline in two and a half months.
After rising fairly consistently for the
last six months, palladium prices for
December delivery (the most actively
traded contract) reached $US909.55 per
troy ounce on the New York Mercantile
Exchange at the start of September the
highest settlement price since February
2001.
The ongoing price rises have been
attributed
to
escalating
conflicts
between Russia and the Ukraine

prompting supply worries. Russia is the


worlds largest producer of palladium,
contributing about 40 per cent to the
market and there are concerns supply
will be disrupted if further economic
sanctions are placed on Russia by
western countries.
Long-running strikes in South Africa,
the worlds second largest palladium
producer, also affected palladium prices
in the first half of the year, while demand
from the car industry has ramped up.
However just days after reaching this
peak, palladium prices fell to US$881.55
their lowest closing price since June,
as pressure from a stronger dollar curbed
investor enthusiasm.
Palladium was bid up on thoughts

that the Ukraine and Russia situation


would bring about some kind of
disruption, but were not seeing that
yet, Chicago-based analyst Frank Lesh
told media.
Russia isnt retaliating against the
sanctions with any cessation of metals
exports.
According to The Wall Street Journal,
the shift in currency markets was a
result of the US nearing the end of its
stimulus efforts and moving closer
towards raising interest rates.
The rallying dollar also affected gold
prices, with the December delivery price
falling to a two-month low of US$1265
per troy ounce.

Maiden estimates indicate high-grade gold


Jane goldsmith
WEST African-based explorer Predictive
Discovery has released promising maiden
mineral resource estimate results for
Bongou gold prospect in Eastern Burkina
Faso.
The company reported a high-grade
2.2 million tonne mineral estimate,
grading 2.6g per tonne of gold for
184,000oz of gold. More than 70 per cent
of the resource (136,000oz of gold) had
an average grade of 3.8g/t gold, at a 2g/t
gold cut off.
Bongou, within the 1045 square
kilometre
Bonsiega
project,
is

characterised by thick, near surface


gold mineralisation and is tipped for
development as an open pit mining
operation.
The prospect also remains open to
the south west and at depth, and about
50 per cent of the estimate is in the
indicated category.
This mineral resource estimate
confirms that Bongou is an intrinsically
high-grade gold deposit, Predictive
managing director Paul Roberts said.
Over 70 per cent of the global resource
reports into the plus 2g/t of gold category
with a very attractive average grade
of 3.8g/t of gold. Previously reported
metallurgical work obtained an excellent

gold recovery of 94 per cent.


Mr Roberts said the company had
completed four RC and diamond drilling
programs at Bongou since its discovery in
mid-2012, and further exploration was likely.
We are focused on discovering more,
high-grade
mineralisation
around
Bongou, he said.
Trenching, power auger drilling and
limited RC drilling in the last six months
has identified a series of Bongou-like
prospects within 2km of the deposit.
We will also explore for high-grade
gold deposits in the extensively
mineralised and highly prospective
Laterite Hill Gold Field, 10km south of
Bongo.

14

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THE AUSTRALIAN MINING REVIEW OCTOBER 2014

GENERAL NEWS

Rox doubles mineral inventory


Rachel Dally-Watkins
WITH a mineral inventory increase of more
than 100 per cent and the identification of
three new drilling targets, Rox Resources has
demonstrated the continued prospectivity of
the Fisher East nickel sulphide belt.
The company announced a maiden
resource estimate for the Musket deposit,
within its Mt Fisher project in the North
Eastern Goldfields, of 2.1 million tonnes
grading 1.8 per cent nickel for 37,500t of
contained nickel. Using a 1 per cent cut-off
grade, about 64 per cent of this resource
is within the higher confidence indicated
category.
Together with the existing resources
from the Camelwood deposit, the projects
resources now stand at 3.6mt grading 2 per
cent nickel for 72,100t of contained nickel.
About 52 per cent of this falls within the
indicated category.
Musket contains a very high grade core of
approximately 100,000 tonnes grading 10.1
per cent nickel which lies close to surface
and would be an obvious economic driver for
any planned development, Rox managing
director Ian Mulholland said.
The high percentage of the resource in
the indicated category is indicative of the
good continuity of the mineralisation.
We previously stated that deposits of the
style of Camelwood do not typically occur in
isolation, and we proved that by discovering
Musket. We have a strong ground position
with the potential to discover a lot more
nickel and continue to significantly grow the
project resource base.
Our discovery cost so far has been around
4.2 cents per pound of nickel, which is one of
the lowest in the world.

First female
asset chief
wins award
Jane Goldsmith
AUSTRALIAs first female asset
president has taken out the top national
award recognising women in the
resources sector.
BHP Billitons Laura Tyler, asset
president at Cannington silver-lead
mine in northwest Queensland, won
the Exceptional Woman in Australian
Resources award at the inaugural
Theiss Women in Resources National
Awards (WIRNA) in Brisbane last
month.
Ms Tyler, a fly in, fly out
mother-of-three, said although great
progress had been made, there was still
a lot of work to do to advance womens
position in the sector.
We must encourage our male
colleagues to speak out on the subject,
she said.
They remain the dominant hiring
managers in our business and it is only
through their engagement that we will
see magnified change in the status quo.
I believe diversity is not only
important for individuals but also for
our businesses. Our contribution as an
industry extends beyond employment,
community development, royalties,
taxes and shareholders and into peoples
futures and dreams.

Ian Mulholland and Will Belbin on site inspecting core.

Fundraiser to finance new cancer cures


Jo Campbell
A new, personalised approach to treating
cancer is being developed in Perth with
early clinical trials hoped for in 2016.
This groundbreaking patented research
being conducted from Harry Perkins
Institute of Medical Research involves
the identification of micro RNAs (miRNA)
within tumours, something that only one
other company in the world is currently
working on.
We are using a different miRNA to that
company so our work is still very much
cutting-edge, director of Harry Perkins
Institute of Medical Research Professor
Peter Leedman said. There is still work
to do, but if we are able to get into clinical
trials, we would operate them from here. It
would be very exciting to see the treatment
develop from bench to bedside all in the one
institution.
If successful, the treatment could pose
higher success rates in treating many
common cancers, including liver, head
and neck cancer, by replacing RNA. This
is a very specific way of treating cancer
and very personalised, because its only
applicable for cancers that have too many
of these growth receptors on the surface. If
youve got one of those cancers, which are
common, then miRNA therapy may well be
for you.
Professor Leedman said more studies
were required before miRNA therapy could
be applied but that early-phase clinical
trials could be in place at the institute by
2016.

The Sunsuper Ride to Conquer Cancer will raise funds for medical research.

The Sunsuper Ride to Conquer Cancer


(RTCC) is approaching and benefits Harry
Perkins Institute, with last years event
raising $5.2 million. Professor Leedman
said philanthropic monies were crucial with
last years RTCC providing core funding to
the institute.
We are currently using the money to
provide core funding for teams researching
cancer and for growing and maintaining
those teams, he said.
This involved recruiting new specialists
and growing existing teams, in keeping
with the institutes priority to build
internationally renowned and collaborative

research teams.
In general and across the globe, cancer
research is now best done in larger,
multi-disciplinary, integrated teams.
RTCC will take place on October 18 to
19 from Perth to Pinjarra. Riders take in
more than 200km over the two days and
enjoy and overnight camp in Mandurah.
Theres nothing like it, Professor
Leedman said. Thirteen-hundred riders,
700 two-man tents, a massive marquee to
fit 1500 people, massages, hot showers and
yellow flags denoting people who have or
have had cancer which is what the event
is all about.

16

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THE AUSTRALIAN MINING REVIEW OCTOBER 2014

GENERAL NEWS

Company
charged over
Pilbara death
A Rio Tinto subsidiary has been charged in
relation to the death of a mine worker in
2011.
Brent Glew died on 16 August
while working in a mobile equipment
maintenance workshop at Pilbara Irons
Brockman 2 mine, 60km northwest of Tom
Price. He was removing a tilt cylinder from
a loader when he was fatally crushed.
The WA Department of Mines and
Petroleum (DMP) charged Pilbara Iron in
late August under the Mines Safety and
Inspection Act 1994, for failing to provide a
safe working environment.
The DMP, WA Police and Rio Tinto have
all conducted independent investigations
into the incident across the past two years.
The first court mention is on 8 October
2014 at Tom Price.

Explorer lifts
Ghanaian
gold reserves
Jane Goldsmith
A Perth-based explorer has boosted its
gold ore reserves by 45 per cent at a
project in North West Ghana.
Azumah
Resources
reported
a contained a 9.1 million tonne
JORC-compliant resource at its Wa
gold project, in Ghanas upper west
region, to be accessed across a seven
year initial mine life.
The site could produce about
100,000oz of gold per annum across its
first four years.
Wa graded 2.14g per tonne of
gold for 624,000oz of gold from three
deposits Kunche and Bepkong
(adjacent to the Black Volta River by
the Ghana-Burkina Faso border), and
Julie (80km to the east).
Azumah managing director Stephen
Stone said the reserve increases were
largely derived from the Julie deposit,
where defined mineralisation increased
by 173 per cent. Julies reserves
totalled 202,000oz grading at 2.84g/t of
gold, based on a 47 per cent increase in
mineral resources.
An additional mining inventory
28,500oz of gold is contained as
inferred mineralisation within the
Kunche and Julie pits, and in optimised
pits at satellite deposits Aduane and
Collette.
This considerably larger mining
inventory
underpins
Azumahs
objective of delivering a feasibility
study for a substantially de-risked,
development-ready ... open-pit gold
operation at the Wa gold project, Mr
Stone said.
An average head-grade of 2.14g/t
[of gold], overall gold recovery of 92
per cent, granted mining leases, grid
power to site, good local and regional
infrastructure and an excellent
opportunity to grow mineral resources
combine to confirm the Wa gold
projects development credentials.
Azumah advised that it was fully
funded to complete its feasibility study
in the third quarter of 2014.

Poseidon secures second deal


Rachel Dally-Watkins
A second acquisition deal with Norilsk Nickel
will see Poseidon Nickel acquire the Lake
Johnston nickel project, which has been on
care and maintenance since April 2013.
In July, Poseidon entered an agreement
to acquire the Black Swan project, including
an open cut mine and nickel sulphide plant.
The latest deal, the cost of which has not
been disclosed, is for the Lake Johnston
tenements, resources and infrastructure,
440km east of Perth and 117km west of
Norseman. Together with its existing
Windarra project, Poseidon now has near
term production potential at three mineral
provinces in WA.
The new project comprises 11 mining
leases, 10 exploration licences and one
prospecting licence hosting the Emily Ann
and Maggie Hays deposits. Maggie Hays
was developed as an underground mine
and produced more than 12,000 tonnes per
annum of good quality smeltable nickel
concentrate. The ore was processed through
a 1.5 million tonne per annum concentrator
plant, which will also be acquired by
Poseidon.
Poseidon planned to evaluate restarting
operations at Lake Johnston with a view
to bringing the project back into production
shortly after contract completion.
Maggie Hays has a resource estimate
of 3.805 million tonnes grading 1.49 per
cent nickel, while Emily Ann has resources
of 334,000t grading 4.18 per cent nickel.
According to Poseidon, the area has
significant exploration potential that could
extend the life of the current project.

Poseidon Nickel has acquired two nickel projects this year.

Only limited drilling exploration has


taken place in recent years but this has led
to several highly prospective areas being
identified, the company stated.
Poseidon plans to undertake a major
new exploration program on the tenements
guided by the work undertaken to date
with the objective of further extending the
projects operational life.
Existing infrastructure that will be
acquired by Poseidon includes boxcut, portals
and decline at Maggie Hays and Emily Ann;
haul and site access roads; run of mine pads
and waste dumps at Maggie Hays and Emily
Ann; a crushing, screening and grinding
plant; a concentrate production plant,
storage shed and weighbridge; dewatering
and potable water bore network; 140-person
Windy Hill accommodation camp, about
7km south of Emily Ann; office, workshop

and support facilities; and an airstrip.


Poseidon now has three nickel projects
all within 270km of Kalgoorlie, Poseidon
managing director and chief executive David
Singleton said.
Importantly all three projects have the
mines and access to infrastructure to enable
production to be brought on-line quickly and
at low levels of capital investment. All of the
projects are in well-endowed mining regions
and have demonstrated resource extension
potential which could lead to extended
production life.
We will be growing our output just as
nickel supply is moving into deficit following
strong Chinese stainless steel production,
reportedly up 18.2 per cent year on year, and
reduction of nickel supply from Indonesia.
Completion of the acquisition was
expected within a few months.

Linc sells Carmichael royalty


Mark Scott
BRISBANE-based Linc Energy will sell its
royalty in the Carmichael coal mine project
to owner and operator Adani Group for $155
million.
Linc, which sold the Carmichael
tenements in Queenslands Galilee Basin to
Adani in 2010 for $500 million, was set to
receive $2 per tonne of coal produced at the
project, indexed for inflation, for the first 20
years of output.
The $16 billion project, which received
environmental approval earlier this year,
is expected to produce 60 million tonnes of
coal per annum from 2022, making it the
countrys biggest coal mine.
Under the binding option deed for the
royalty transfer, the Indian company will
pay Linc $90 million within five days of the
option exercise and a further $65 million
within 12 months.
In a statement, Linc said it expected the
option would be exercised within two months.
Linc chief executive and managing
director Peter Bond said the company was
selling off its non-core assets in a move to
strengthen its balance sheet and focus on
core assets.
Though I would have liked to keep this
asset for the longer term, it makes sense
to start to cash up our balance sheet and
commence to drop out the debt and focus on
our world class assets, he said.
The price of steaming coal has nearly
halved since we sold the Carmichael coal
asset to Adani four years ago and the risk of
holding the royalty long term versus what we
can do with the cash today doesnt add up for
us.
We look forward to making further

announcements as we continue the process


of simplifying and focusing our company on
the development of our core assets.

Mr Bond singled out Lincs shale oil


resources in South Australia as a focus for
the company.

18

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

GENERAL NEWS

Senegalese
gold project
approaches
production
Jane Goldsmith
AN
Australian
developer
is
fast-tracking
its
flagship
Senegal-based
gold
project
to
production after securing refining and
processing facilities.
Bassari Resources secured an
agreement with Italian gold refiner
TCA S.p.A to process ore from its
Makabingui gold project, 750km east
of Senegal capital Dakar, in mid
August.
The feasibility study for the
Makabingui open cut project estimated
that a $12 million capital investment
was required to bring the project into
operation.
The study indicated that the 11.9
million tonne resource, grading
2.6g per tonne of gold, could deliver
50,000oz per annum of gold across a
three and a half year mine life.
Securing a gold refining agreement
with TCA puts us a step closer
to fast-tracking Makabingui into
production, Bassari chief executive
Jozsef Patarica said.
We are advancing the next phase
of detailed design of the processing
plant upgrade and reviewing all
development options. Maximising the
use of existing infrastructure is our
key to keeping the capital cost low and
early gold production.
The company later announced its
successful underground scoping study
had demonstrated up to 120,000oz in
high grade underground stope targets
below Makabinguis defined Pit 1.
Bassari said the study, undertaken
by Australian Mine Design and
Development, was based on inferred
resources and encouraged further
drilling to expand the indicated
resource.
The preliminary underground
scoping study is insufficient to support
estimation of ore reserves... at this
stage, the company stated.
However,
initial
underground
assays have graded at more than 7g/t
of gold.
Mr Patarica said the underground
potential
was
additional
to
opportunities along strike from
the open pits and the much larger
potential identified at Makabingui
South.
The positive results of the
underground scoping study further
supports the significant potential
that exists at Makabingui, which
is already set to become Senegals
next large scale gold operation, Mr
Patarica said.
Our focus on unlocking significant
value from our gold resource is
delivering outstanding results which
we will continue to build on.
We have taken a material step
forward with this option to provide
additional high grade mill feed that
can extend the life of the operation to
six years.
Bassari aims to enter open cut
production at the site in the first half
of 2015.

Graphene deposit focus of study


Mark Scott
SWEDEN-focused Talga Resources has
teamed up with CSIRO on an analytical
study aimed at helping Australias
emerging graphite-graphene sector.
The study will look at ore from Talgas
Nunasvaara graphite-graphene deposit
in Sweden, accelerating the companys
mineralogical characterisation to better
understand how the mineralisation
formed and the conditions under which
more could be found.
Results from the study will provide
an insight into how natural graphite
deposits can provide high-quality
graphene.
Talgas previous work at the

Nunasvaara
deposit
demonstrated
that graphene the worlds strongest
material could be produced directly
from raw ore in the same single-step
process that liberates graphite, offering
a low-cost, high-quality product.
Talga managing director Mark
Thompson said the program would
provide cutting edge insight into Talgas
graphite and graphene developments,
with results that could dovetail directly
into the companys metallurgical
program and scoping study.
Talga is extremely enthusiastic to
be working with Australias national
science agency and one of the largest
and most diverse research agencies in
the world, he said.
CSIRO research scientist Mark

Pearce said the project would use


four separate lode samples to provide
detailed analysis and insight into the
geometry, mineralogy and chemistry of
the graphite.
The process will include high
resolution X-ray computed topography,
3D image processing, microstructural
analysis, X-ray fluorescence mapping
of the chemical composition of the
samples, and high resolution electron
microscope imaging of the ore samples,
he said.
We will also examine in detail the
graphene component of the samples
liberated from the main ore under test.
Results from the collaboration are
expected in coming months.

Wear pink for the fight against cancer


Jane Goldsmith
MINERS are being challenged to don pink
high-vis workwear in a nationwide breast
cancer awareness campaign.
Launched by the National Breast
Cancer
Foundation
(NBCF)
and
wholesaler Bisley Workwear, the Real
Men Wear Pink campaign encourages
miners to wear pink while raising money
for breast cancer research.
Bisley Workwear has pledged to donate
$3 from each shirt sale to NBCF from
its new pink high-vis wear range, which
includes two night-and-day compliant and
one night-only compliant safety garments
in both mens and womens styles.
NBCF chief executive Carole Renouf
said the campaign theme Are you man
enough? was a challenge to male miners
to support the women in their lives in the
fight against breast cancer.
Real Men Wear Pink is not only about
getting men to acknowledge the role they
play in the breast cancer experience, Ms
Renouf said.
Its about getting men to man up.
We want men, and women, to register
to fundraise via realmenwearpink.org.au
and actively do something to help change
the future of breast cancer.
NBCFs goal is to have zero deaths
from breast cancer, in both men and
women, by 2030.
We also shouldnt forget that men can
get breast cancer too, Ms Renouf said.
Approximately 1 per cent of all breast
cancer diagnosis is in men.

Bisley ambassadors Kyal and Kara Demmrich have come on board to support Real Men Wear Pink.

Junior explorer reinforces gold prospectivity at Yamarna


A second reverse circulation drill program
has confirmed the high grade gold potential
of Gold Roads Minnie Hill South target
within the companys wholly-owned
Yamarna greenstone belt.
Assay results from Minnie Hill South
demonstrated solid mineralised intercepts,
including 1m at 16.1g per tonne of gold from
173m; 5m at 2.03g/t of gold from 211m; and
6m at 3.11g/t of gold from 222m.
The mineralised zone has an 800m strike
length, a 250m dip extent, and remains
open in all directions.
The 23 hole, 5676m South Yamarna
program fully funded by joint venture
partner Sumitomo followed maiden
drilling carried out earlier in the year.
This maiden six-hole program, completed

in April, demonstrated thick high-grade


interceptions, including 12m at 4.65g/t of
gold with a 4m zone at 8.29 g/t of gold.
Gold Road executive chairman Ian
Murray said the second drill results at
up to 16g/t of gold were returned from
multiple holes surrounding the initial
discovery holes, and effectively established
the sites prospectivity for further
exploration.
It is very encouraging to see that the
first prospect tested with RC drilling
within the first camp to be tested in the
South Yamarna JV area has defined gold
mineralisation within a very prospective
differentiated dolerite over nearly 1km of
strike and a down dip extent of up to 250m,
Mr Murray said.

This bodes very well for further drill


testing of this prospect and other prospects
in the South Yamarna JV.
The next phase of work would focus
on further defining the stratigraphy of
the dolerite package, utilising detailed
geochemical and petrological sampling.
It is expected that this work will help
identify the dolerites internal zonation
and its control on mineralisation,
enabling particular prospective units to be
specifically targeted during future drilling
campaigns, Mr Murray said.
A diamond drill hole designed to
intersect the entire stratigraphic sequence
and dolerite zonation will also be considered
for drilling in late 2014 to provide some drill
core to assist with these studies.

20

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THE AUSTRALIAN MINING REVIEW OCTOBER 2014

GENERAL NEWS

MOVERS & SHAKERS


Doray Minerals, which celebrated its first year
of production from Andy Well in August, is
preparing for the companys next growth phase
with the appointment of non-executive director
Peter Lester.
Mr Lester, a mining engineer with more than
35 years industry experience, has held roles
in operations, project management, corporate
and financial advisory services, and business
development. His more recent responsibilities
included feasibility studies, acquisitions,
capital raising and takeovers.
He has held senior executive positions with
North Limited, Newcrest Mining, Oxiana and,
most recently, with Citadel Resource Group as
an executive director.
Doray managing director Allan Kelly said that
Mr Lester would bring a wealth of corporate
experience to Doray, especially in the area of
business development.
The board welcomes Peter to Doray and
we look forward to his input, utilising his
significant experience, as we enter the next
growth phase for the company, Mr Kelly said.
Gold
Road
Resources
has
appointed
distinguished mining executive Tim Netscher
as non-executive director. Mr Netschers
renowned 40 year career in the resources
sector has seen him hold senior executive roles
with Gindalbie Metals, Newmont Mining, Vale
Australia, Pt Inco, BHP Billiton and Impala
Platinum.
He is a current chairman at Deep Yellow, and
director at Aquila Resources, St Barbara Mines
and Western Areas.
Tim is well known for his leadership within
the global mining industry, and I am delighted
to welcome such a highly qualified person to
join the board at this exciting time for Gold
Road ,as we continue to develop and explore
our large tenement holdings on the Yamarna
Belt, Gold Road executive chairman Ian
Murray said.
Gold producer Troy Resources newly appointed
chief executive and managing director Martin
Purvis has praised the future potential and
quality of the companys asset portfolio.
Mr Purvis, a qualified mining engineer, was
most recently chief executive of Singapore-based
Sakari Resources, a 10 million tonne per annum
coal miner that was demerged from ASX-listed
Straits Resources in 2010.
Prior to accepting the role, Mr Purvis visited
the Casposo mine in Argentina and Troy
Resources main growth project, Karouni, in
Guyana.
Theres no question about the future potential
and quality of the asset portfolio, as well as the
proven skills and dedication of the workforce
at both these sites, he said.
The Troy team has a wonderful track record
of building mines quickly and at a low cost and
then returning profits to shareholders.
Im really looking forward to working with
this team, to grow the production base and
to lift the companys valuation through
continuous improvement at the Casposo and
Andorinhas operations as well as the successful
development of Karouni.
Troy chairman David Dix said the company
was pleased to have secured an executive of
Mr Purviss calibre to lead it forward after
an extensive local and international search
conducted by Gerard Daniels.
With over 30 years experience on the front
line of the mining industry, in a variety of
challenging roles, we are confident that Martin
is the right match for Troy, Mr Dix said.

In a move to increase its project capabilities


in WA, Ausco Modular has welcomed Leo
Crohan to the position of Western Australia
general manager.
Mr Crohans career spans more than two
decades in international energy and resources
industries, and he has extensive leadership
experience which will allow him to guide the
WA arm of the company through a changing
market.
Mr Crohan said he aimed to continue building
Ausco Modulars full turnkey modular
offering in WA into sectors such as healthcare
and education, and explore new product
opportunities, such as mobile camps to cater
to changing needs.
The market for modular products and solutions
is shifting significantly in WA, and companies
like Ausco Modular are perfectly positioned
to service new and step-out customers, many
of whom may not have previously considered
modular as a building technique, Mr Crohan
said.
Its a challenging time for the modular
industry as a whole, but brings exciting
opportunities to diversify and adapt.

Mr Reed was responsible for joint venturing


into the asset with Lonmin Plc, and overseeing
funding and exploration activities until its
divestment. He also oversaw the environmental
approval of two power station projects in
Australia and Botswana, and attracted
international heavyweights GDF Suez and AES
Corporation as joint development partners.

New Minbos Resources chief executive


Lindsay Reed is a highly accomplished mining
executive with more than 30 years experience
in senior management roles in Australia and
overseas. The Minbos board reported that it
was pleased that an executive with Mr Reeds
experience has agreed to join the company
at such a pivotal time in the development of
Minbos Angola phosphate project.
The appointment would enhance the companys
ability to take advantage of its high grade
phosphate deposits on the rim of the growing
Atlantic market.
Mr Reed has extensive experience in managing
mining projects in a wide range of commodities
and countries. He was director and chief
executive of resource development company
Aviva Corporation, which divested its West
Kenyan gold and base metals assets in late
2012 to African Barrick for $20 million cash
and a further resource milestone payment of
$10 million.

After completing an external search OZ


Minerals has appointed Andrew Cole to
the position of managing director and chief
executive. Joining the company from Rio
Tinto where he worked for 22 years Mr
Cole will relocate from Canada to take up the
role on 3 December 2014. His most recent role
was chief operating officer for Rio Tinto Iron
and Titanium. Prior to this he held a range
of senior positions, including chief executive
of Chinalco Rio Tinto Exploration JV China;
general manager operations Rio Tinto Coal
Australia; and mining executive for Diamonds,
Rio Tinto London.
Mr Cole holds a Bachelor of Applied Science
Geophysics (Hons) from Curtin University
and has significant technical and operational
experience across a range of commodities.
OZ Minerals chairman Neil Hamilton said the
company was delighted that Mr Cole was
joining OZ Minerals, and bringing with him
the requisite skills and background to lead OZ
Minerals though its next phase.
His mining experience covers the full mining
value chain and he has a proven track record in
leading and developing people, Mr Hamilton
said.
Mr Hamilton also expressed the boards
appreciation to Terry Burgess for his strong
commitment during his five years as managing
director and chief executive.
Under Terrys stewardship, OZ Minerals
had a disciplined balance between pursuing
strategic growth and rewarding shareholders
for their investment with approximately
$1.2 billion returned to shareholders while
maintaining a strong balance sheet, he said.
Mr Burgess departure date has not yet been
finalised and he will assist Mr Cole in the
handover.

Ausco Modular WA general manager Leo Crohan.

Doray Minerals non-executive director Peter Lester.

Got an entry for this column? E-mail the details and a photo to editorial@miningoilgas.com.au

22

THE AUSTRALIAN MINING REVIEW

OCTOBER 2014

www.miningoilgas.com.au

SPECIAL PROFILE AngloGold Ashanti

Producers golden future


Mark Scott
A focus on cutting costs and massively
boosting production is set to turn
AngloGold Ashantis two Australian
operations into some of the global groups
best performers.
The South African-based miner is one
of the worlds largest gold producers, with
21 operations across 11 countries, but
heavy losses driven by weaker gold prices
have hit the companys coffers in recent
months.
AngloGold posted a US$2.23 billion net
loss attributable to equity shareholders
in 2013, compared to a US$897 million
profit in 2012, despite recording its first
rise in annual gold production in nine
years.
In response to the weakening gold price,
the company announced a cost-cutting
drive that has seen it slash jobs, capital
expenditure and its exploration budget,
and slow production at higher-cost mines.
AngloGolds efficiency drive is already
reaping rewards; in the six months to
June 2014, the companys losses totalled
US$41 million, down from US$1.9 billion
the year before. All-in sustaining costs in
the June quarter were down 19 per cent
year-on-year.
The newly opened Tropicana mine in
WA and the Kibali joint venture in the
Democratic Republic of Congo have been
key to the new growth strategy, offering
to massively boost the companys annual
production at a relatively low cost.
In August last year, newly appointed
AngloGold chief executive Srinivasan
Venkatakrishnan, known as Venkat, said
the full benefits of the two new projects
and cost and capital expenditure savings
would begin to flow in 2014.
We have adopted a decisive,
two-pronged response to this weaker gold
price environment, focused on revenue
enhancement and improving efficiencies
by addressing costs at a number of levels,
he said.
Our two important new mines are
expected to contribute approximately
550,000oz to 600,000oz of new annual

AngloGold Ashantis Sunrise Dam mine has moved fully underground.

We have adopted a
decisive, two-pronged
response to this weaker
gold price environment,
focused on revenue
enhancement and
improving efficiencies
by addressing costs at a
number of levels.
production next year at below our current
average cost, improving the groups cash
cost and cash flow profile.
Tropicana
Located
330km
east-northeast
of
Kalgoorlie, Tropicana was discovered
in 2005 after AngloGold followed
up an anomaly found by Australias
Independence Group in the 1990s. It
proved to be Australias biggest gold find
in a decade.
Tropicana is estimated to have an ore
reserve of 57.1 million tonnes grading

The Tropicana gold mine officially opened last year.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

SPECIAL PROFILE AngloGold Ashanti


2.12 grams per tonne, for 3.9 million
ounces.
Mining started at the site in mid-2012,
with AngloGold operating and holding a
70 per cent stake in the project. First gold
was poured in September 2013 ahead of
schedule and on budget.
At the time, AngloGold Ashanti
executive vice president Australia
Graham Ehm said the company had taken
Tropicana all the way from discovery

through development into production.


To pour gold ahead of schedule
and within budget is a rare feat in this
industry and its a significant milestone
for us and Independence Group, our
partner, he said.
Weve been able to incorporate
innovation into our approach to everything
from environmental management to the
design of our mining systems and the
processing plant.

Both Sunrise Dam and Tropicana will soon be 100 per cent fuelled by natural gas.

The project cost between $820 million


and $845 million, with production
expected to reach 470,000oz to 490,000oz
per annum this year at a cash cost of
between $590/oz and $630/oz.
That figure is considerably below the
groups average cash cost of US$836/oz
in the June quarter.
Tropicanas start-up drove AngloGolds
(continued on page 24)

23

24

THE AUSTRALIAN MINING REVIEW

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OCTOBER 2014

SPECIAL PROFILE AngloGold Ashanti

Costs are expected to drop at Sunrise Dam this year.

Producers golden future


(continued from page 23)

Australian production up 33 per cent in


2013 to 342,000oz, equivalent to 8 per
cent of the groups total production.
Once
Tropicana
reaches
full
production, Australias contribution is
expected to reach more than 600,000oz,
making the country a significant player
in AngloGolds future.

However the future may be even


sunnier for Tropicana, with AngloGold
eyeing further gold deposits in the area.
Mr Venkat said the tier-one asset
only scratched the surface of a new gold
district.
Our initial focus is finding additional
mineralisation close to the plant, while
testing the promising targets in our joint
venture tenement, he said.

Safe and efficient


power generation
AUSTRALIAN-based Energy Developments
Limited (EDL) is an international provider
of safe and reliable remote and clean
energy solutions.
EDL is proud to be an integral partner
in the long term success at AngloGold
Ashantis (AGA) Sunrise Dam gold mine.
The company is AGAs sole independent
external power provider, and has supplied
power solutions throughout several mine
production developments.
Working with AGA, EDLs original
diesel-fired power source has been
supplemented by an LNG-fuelled power
station, which now provides about 85 per
cent of the mines total energy needs.
The Sunrise Dam power station
(28MW) is one of EDLs leading projects
and its strong relationship with AGA has
developed across 20 years.
EDLs culture focuses on outstanding
reliability and safety, demonstrated by

the companys very high safety levels at


Sunrise Dam since it began operations
there in 1994.
EDLs core expertise in ownership and
operation of safe, reliable, efficient and
innovative power generation projects is
shown through its long term partnerships
with many of Australias leading mining
companies including AngloGold
Ashanti, Glencore, Anglo American, BHP
Billiton, Newmont and Gold Fields, as
well as public energy utilities Territory
Generation and Horizon Power.
In 2013, EDL celebrated 25 years of
safe and efficient power generation, and
its successful operations at 83 LNG,
CNG, diesel and natural gas powered
stations.
EDL is well positioned to support
power generation for new and existing
customers for the next 25 years and
beyond.

Sunrise Dam
Now approaching its 20th year of
operations, 2013 heralded a massive shift
at Sunrise Dam, AngloGolds original
Australian asset.
Sunrise Dam, 220km northeast of
Kalgoorlie, began operations in 1996 as
an open cut mine before expanding to
include underground mining in 2003.

Since start-up, the mine has produced


more than 6moz of gold in total.
However, the mine has recently
reported some of the highest cash costs in
the group, peaking in 2011 at US$1367/
oz produced and sitting at $1110/oz
produced in 2013.
Last year, open pit mining finally came
(continued on page 26)

New project at Tropicana


AUSTRALIAS largest new gold mine
Tropicana lies some 330km east-northeast of
Kalgoorlie, on the western edge of the Great
Victoria Desert in WA.
The mine is owned by the Tropicana Joint
Venture, AngloGold Ashanti Australia and
the Independence Group, and began gold
production in September 2013.
Tropicanas processing plant has a
throughput rate of 5.5 million tonnes per
annum of fresh ore.

The plant is based on a comminution


circuit, comprising two-stage conventional
crushing, high pressure grinding rolls and ball
milling, along with a conventional CIL circuit.
Engineering, procurement and construction
management services for the process plant
and selected non-process infrastructure were
provided by Lycopodium Minerals.
The plant has exceeded its ramp-up
targets and produced 348,474oz of gold in
FY2014.

26

THE AUSTRALIAN MINING REVIEW

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OCTOBER 2014

SPECIAL PROFILE AngloGold Ashanti

Producers golden future


(continued from page 24)

to an end at Sunrise Dam and from this


year, the operation has gone entirely
underground.
But things are looking up at Sunrise
Dam, thanks to an innovative approach
to grade control and mine design based on
a systematic reverse circulation drilling
strategy and a new productivity push.
In the June quarter, production was
up 24 per cent year-on-year to 62,000oz,
while cash costs were down 24 per cent
year-on-year.
According to the 2013 annual report,
the operation has set a long-term
underground production target of more
than 2 million tonnes per annum, with
additional mill capacity filled by surface
stockpiles.
The company also remained optimistic
about increasing mine-life at Sunrise
Dam, with mineralisation open below a
depth of 1500m.

AngloGold expects to start reaping the rewards of its new gold projects this year.

Pipeline project
As part of the cost-cutting drive, AngloGold
announced in July it would transition both

Sunrise Dam and Tropicana to run on 100


per cent natural gas, rather than diesel, and
contracted APA Group to build a 292km

pipeline to the sites.


The $140 million pipeline will link to
APAs Goldfields gas pipeline via the lateral
pipeline at the Murrin Murrin nickel mine,
then extend past Sunrise Dam to Tropicana.
Construction will begin early next year
and first gas will be delivered in early
2016. Both mines will retain diesel backup
capability.
AngloGold senior vice president
Australia Michael Erickson said gas power
generation was expected to reduce cash
operating costs at both sites by between
$25/oz to $35/oz.
The pipeline and gas transportation
agreement will also provide continuity
of fuel supply, reduce exposure to diesel
price volatility and significantly reduce the
number of trucks on the road, which has an
important safety benefit as well as reducing
road maintenance costs, he said.
Natural gas is a cleaner fuel than diesel
and its use will reduce greenhouse gas
emissions.

Steel specialist offering end-to-end solutions


AS one of Australias leading fabrication
and construction organisations, Pacific
Industrial Company (PIC) specialises in
all aspects of fabrication and construction
and operates within the mining, oil and
gas, industrial and commercial sectors.
PIC has extensive experience in
the management, coordination and
construction of turn-key projects,

including the onsite tankage, structural,


mechanical and piping works for
AngloGold Ashantis 5.5 million tonne
per annum Tropicana gold process plant
in WAs Goldfields, 330km northeast of
Kalgoorlie.
The company takes projects from
design through to commissioning and
prides itself on delivering results to safe

and high quality standards.


Its fabrication facilities in Naval Base,
WA, include three major workshops with a
floor area totalling 35,000 square metres,
complemented by extensive computer
numerical control automated equipment
and 32 overhead travelling cranes with
up to 80t capacity.
In addition PIC maintains an

extensive mobile construction equipment


fleet including heavy haulage transport
vehicles and cranes to 350t capacity.
The companys driving objective is to
expand nationally in the resources and
commercial sectors based on its establish
relationships and its proven ability in
delivering quality services safely, within
budget and on time.

Engineering consultant
expands across the globe
SPECIALIST engineering consultant
ATC Williams provides tailings and
water management services to AngloGold
Ashantis Sunrise Dam gold mine in WA.
With a mine expansion in 1999, ATC
Williams initiated a central thickened
discharge (CTD) disposal system, one
of the first in Australia at the time. This
permitted full storage capacity with
nominal embankment volume.

The Sunrise Dam mine in WA.

The CTD allowed extensive field tests


on beach slopes to be undertaken by an
ATC Williams sponsored-PhD student
to advance the companys knowledge of
tailings beach slopes.
ATC Williams continues to work at
Sunrise, and has expanded operations
to Chile, Peru, Sudan, Armenia and
Kazakhstan, among others, and in 2014
opened an office in Santiago.

28

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

SPECIAL PROFILE BHP Billiton Iron Ore

Profits buoyed by Pilbara iron ore


Jane Goldsmith
AFTER more than a decade of
simplifying its portfolio into four core
pillar commodities iron ore, copper,
petroleum and coking coal (with potash
as a possible fifth) BHP Billiton has
confirmed a corporate demerger that will
remove all accessory assets.
Into the latter half of 2014, the
company will likely create a spin-off
company from its non-core assets,
including aluminium, thermal coal,
manganese, nickel and silver assets,
subject to board, shareholder and third
party approvals.
In the first half of 2014, BHP Billiton
proved the core economic value of its iron
ore assets despite steep price drops late
in the period. The companys output rose
by 19 per cent to 56.6 million tonnes of
iron ore in the June quarter after its
WA iron ore division (WAIO) achieved
its 14th consecutive annual production
record in July 2014. WAIO produced
225mt of iron ore for the full year and
into the 2015 fiscal year up from its
guidance of 217mt and is expected to
increase output by a further 20mt to
reach 245mtpa of iron ore.
One of the worlds premier iron ore
suppliers, BHP Billiton employs about
13,000 people across the Pilbara alone,
with its mining operations supported
by the town of Newman. Port Hedland
hosts the companys two port facilities,
Nelson Point and Finucane Island, and
more than 1000km of rail line. The
WAIO portfolio comprises seven projects
including the Mt Whaleback single pit,
open cut mine; Wheelarra, Yandi, Area C
and Yarrie; the newly opened Jimblebar,
and several satellite tenements.
Since 2001, BHP Billiton has expanded
WAIOs operations as the demand for
iron ore increased. Production rose from
68mtpa in the 2001 financial year to
225mtpa in 2014, with the companys
individual share of 2014 production
totalling 193mt. Although BHP Billiton
mines to a single cut-off value for each
deposit within the WAIO portfolio, all
tenement concentrations are mined
within 50 to 57 per cent iron cut-off.
Jimblebar expansion
BHP Billitons newly expanded Pilbara
mine and processing hub Jimblebar
opened in late April, and is largely
credited for boosting the companys 2014
iron ore output.
The $US3.6 billion project, 40km east
of Newman, achieved first production
six months ahead of schedule, in the
third quarter 2013. Although the
expansion was scheduled to officially
open in November 2013, the ceremony
was postponed to April due to an issue
at Newman airport.
Jimblebar
was
originally
wholly-owned by BHP Billiton; however
in June 2013 the company sold stakes to
Japanese partners Itochu (8 per cent) and
Mitsui (7 per cent), for US$800 million
and US$700 million, respectively. The
deal added to the Japanese companies
existing 15 per cent ownership of
BHP Billitons mine, railway and port
infrastructure in the region and secured
the Japanese market more than 5mtpa
of iron ore (about 4 per cent of demand),
as well as shares of future production
increases.
Jimblebars newly commissioned
onsite infrastructure included a new

BHP Billiton has proven the core economic value of its iron ore assets in the first half of 2014.

fleet of earthmoving equipment; a


duplicated rail line from the main line to
the Jimblebar hub; a new stockyard with
4mt of iron ore storage capacity; a new
primary crusher; and a new ore handling
plant. Accessory equipment included
mobile equipment and fixed plant
workshops, fuel storage and distribution
facilities, water and waste treatment
plants, administration buildings and a
state-of-the-art accommodation village.
At the official opening, BHP Billiton
Iron Ore president Jimmy Wilson said
Jimblebar would deliver a minimum

[Image: BHP Billiton]

of 35mtpa of iron ore, with likely


opportunities for expansion.
Our pursuit of productivity gains
and operational excellence is delivering
significant value at [WAIO], Mr Wilson
said.
The business is now well positioned
to deliver high margin volume growth at
a substantially lower cost.
The company is expected to aim
towards a capacity of 270mtpa, by
debottlenecking the supply chain and
developing a low-cost option to expand
Jimblebar to 55mtpa.

WAIO significantly exceeded initial


full-year production guidance as the
early commissioning of Jimblebar and
our productivity agenda raised the
capacity of our integrated supply chain,
the company stated in its June report.
The ramp-up of Jimblebar to 35mtpa
is now expected before the end of the
2014 calendar year and will support
a further 20mt increase in WAIO
production to approximately 245mt in
the 2015 financial year.

Iron ore loaded for export at Port Hedland.

[Image: BHP Billiton]

(continued on page 30)

30

THE AUSTRALIAN MINING REVIEW

OCTOBER 2014

www.miningoilgas.com.au

SPECIAL PROFILE BHP Billiton Iron Ore

Profits buoyed by Pilbara iron ore


(continued from page 28)

Productivity and the market


In the second quarter of 2014, a
substantial drop in the iron ore price
provoked broad cost-cutting measures
from WAIOs operations including
widespread job cuts. According to global
data portal Index Mundi, global iron ore
prices fell to US$92.74 per tonne in June
2014 down from almost US$130/t in
January.

Our pursuit of
productivity gains
and operational
excellence is
delivering significant
value at [WAIO].
In June, BHP Billiton commissioned
an independent review of WAIOs
operations and productivity. The results
allegedly recommended the company cut
up to 20 per cent of WAIOs workforce
(3000 jobs), to ensure it remained
(continued on page 34)

Production at BHP Billitons WAIO operations rose to 225 mtpa in 2014.

[Image: BHP Billiton]

32

THE AUSTRALIAN MINING REVIEW

OCTOBER 2014

www.miningoilgas.com.au

SPECIAL PROFILE BHP Billiton Iron Ore

Dredging contractor assisting throughputs


DREDGING, civil and environmental
contractor Jan De Nul Group (JDN)
has completed its ninth project in Port
Hedland.
JDN has excavated 12 new berth
pockets in Port Hedlands inner harbour
for various clients since 2006, including
five pockets for Fortescue Metals Group,
four for BHP Billiton Iron Ore, two for
Hancock Mining and one for the Port
Hedland Port Authority.
In completing these projects, JDN
played an integral role in increasing WA
iron ore exports into the global market:
Port Hedland Port Authority has
achieved record iron ore throughputs
virtually every month since JDN began
its work.
The 12 berth pockets and associated
departure
channels
required
the
excavation of 32 million cubic metres
of abrasive seabed material. JDNs
site set-up was tailored to deal with
these conditions, with massive metal
workshops and clockwork logistics
organised to support the dredge vessels.
JDN also assisted BHP on its Rapid
Growth projects (Nelson & Harriet
Point expansion) developments, and the
Stingray Creek cyclone mooring area
project. The companys philosophy is to
meet and exceed clients expectations
as demonstrated by the companys
stellar performance record sheet.
JDN is proud to have contributed to
Port Hedland ports success.

Capital dredging for a third berth at Anderson Point in Port Hedland.

34

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

SPECIAL PROFILE BHP Billiton Iron Ore

Profits buoyed by Pilbara iron ore


(continued from page 30)

competitive within the difficult market


climate. However, BHP Billiton did not
confirm these claims.
BHP Billiton Iron Ore regularly
undertakes improvement initiatives and
organisational reviews, the company
said in a statement.
We have engaged external consultants
to assist with this process. This is about
continuing to safely improve our business
and ensuring we are a competitive,
world-class operation.
We have been open with our employees
about the review, and we hold regular
all-employee town hall meetings and
question and answer sessions with the
business leaders as a matter of course. In
situations where employees are impacted
we will undertake every effort to assist
them throughout the process and to seek
redeployment opportunities where possible.
However, a month earlier BHP Billiton
confirmed and implemented several
smaller-scale job cuts, including 100
redundancies from its Perth head office,
and 170 job losses at the Mt Whaleback
mine.
Despite the cuts, Mr Wilson said in
the companys half-yearly report that
productivity was delivering sound value.
Our journey to deliver sustainable
productivity benefits has encompassed
a full review of the supply chain across

mines, rail and port, Mr Wilson said.


Our initial focus on equipment
availability, utilisation and operating
rate
was
followed
by
low-cost
debottlenecking initiatives.
Across our mines we have realised
significant productivity improvements
that have resulted in increased shovel,
truck and ore handling plant availability
and utilisation. Where appropriate, we
have also installed relocatable crushers
to increase high margin volumes.

We remain confident
that global demand for
iron ore will continue to
grow, though at a more
moderate rate, driven
by urbanisation and
industrialisation.
The future
Mr Wilson said BHP Billiton had a firm
outlook for WAIO production in FY2015,
with output expected to increase by 20mt
to about 245mt, and exports to service
primarily Chinese destinations.

BHPs rail system delivering ore into Newman.

Our market outlook is for continued


strong steel demand growth over the
next 10 years, Mr Wilson said.
Our view that Chinese crude
steel production is expected to peak
at 1.1 billion tonnes, around 2025, is
unchanged.
We remain confident that global
demand for iron ore will continue to grow,

[Image: BHP Billiton]

though at a more moderate rate, driven


by urbanisation and industrialisation.
BHP Billiton will retain a favourable
position on the iron ore cost curve,
underpinned by the quality of our
resource base. These resources further
position us to benefit from an increasing
market preference for high quality lump
and fines iron ore products.

Former netball star goes the distance for regional communities


NEARLY a decade ago WAFL club
Swan Districts embarked on a game
development program. This program is
now the envy of the WA football industry,
setting best practice community and
education engagement in WAs North
West Pilbara region. The unlikely hero
for V Swans, the clubs community
development brand, has been netball.
In 2008 former Perth Oriels and
West Coast Fever goal attack Tracey
Pemberton joined Swan Districts, charged
with the design and delivery of a netball
participation and education program for
the key BHP Billiton Iron Ore towns of
Newman and Hedland.
The partnership with BHP had been
hugely successful in engaging girls
and boys using AFL football, but BHP
was looking for a more female-oriented

program to encourage even more girls to


get engaged in education and an active
community.
Shooting Goals was born. Within
a few short years, the program had
outstripped the Kicking Goals program in
participation, attendance and community
engagement outcomes.
In 2012 the program won the
Department of Sport and Recreations
Participation Award and helped Swan
Districts win the overall ministers award
for Industry Excellence.
Tracey supports the development
of netball throughout the entire North
West, running coaching, talent and
umpiring courses throughout the Pilbara
and Kimberley regions, supporting the
North West Netball Association (NWNA)
and their affiliates.

The Shooting Goals program has encouraged girls in WAs North West to get involved in netball and
their community.

When Tracey started we thought she


might last three weeks, moving to the
Pilbara in her early 20s, knowing no one
and working for a football club, V Swans
general manager Nicole Graves said.
Six years later Tracey is now my
longest serving staff member, and a
valued and respected local of the Hedland
Region.
Tracey really drove the program and
the community just loved her.
V Swans now has 12 full time and
part time staff based in the Pilbara,
and four at the Perth head office all
of them are committed geographically
and philosophically with their respective
regions.
Ms Graves said the massive impact
of the Shooting Goals program was
underlined by the astonishing netball
participation numbers since Tracey
started working for a football club.
[It] shows that the V Swans initiative
by SDFC is having an impact, not only
in education development, but in active
lifestyles and building capacity for
communities to support the growth and
development of community sport and
recreation, she said.
In 2007 the North West had no
accredited netball coaches. By 2014 V
Swans, through Tracey and her team,
has delivered 223 accredited coaches to
the region.
In 2008 the North West netball region
had memberships from the sub junior
Net Set Go programs to senior netball
memberships of just 1939; in 2013 this
had grown by 103 per cent to almost
4000.
In Port Hedland, where Tracey
lives and the education program is
delivered, the numbers are even more
significant, with a 170 per cent increase
in memberships.
The partnership with BHP Billiton
Iron Ore and the Swan Districts through

Former netball star Tracey Pemberton.

its V Swans programs reached a 10


year milestone in 2014. It represents
one of BHPs most successful education
engagement initiatives with over 400
students in Hedland and Newman senior
high schools enrolled in the physical
education curriculum based program
from year 8 to 12.
The
students
receive
coach
accreditations in two sports, first-aid,
two Certificate II TAFE qualifications
and deliver coach and volunteers hours
through the program participants in
excess of 5000 hours per year in each of
the regions.
V Swans, in partnership with BHP
Billiton Iron Ore and key community
associations, is committed to providing
outcomes for regional communities with
local staff living and working with key
partners on a daily basis year round.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

35

SPECIAL PROFILE Evolution Mining

Evolving through exploration


Mark Scott
A year of record gold production has
failed to ease Evolution Minings desire
for growth, with the Australian company
recently announcing new exploration
projects in the Northern Territory and
Queensland.
Evolution was formed in a merger
between Catalpa Resources and Conquest
Mining less than three years ago and, with
a full-year production of 428,000oz in 2014,
ranks as one of Australias top five gold
producers.
The company wholly owns five producing
gold mines Queenslands Cracow, Mt
Carlton, Mt Rawdon and Pajingo, as well
as Edna May in WA.
Despite its strong producing position and
ore reserves of about 2.62 million ounces of
gold equivalent, exploration remains a key
part of Evolutions growth strategy and
the last six months have seen the company
significantly boost its asset base.
Covering old ground
In June Evolution announced it had
entered into a farm-in and joint venture
agreement with Emmerson Resources for
the Tennant Creek gold-copper project in
central Northern Territory.
The project tenements cover about 2500
square kilometres of the historic Tennant
Creek mineral field, which has produced
more than 5.5moz of gold and 470,000t of
copper.
Much of the tenement area had seen
limited modern exploration, with just 8 per
cent of drilling penetrating below 150m
and 6 per cent of the total area subjected
to modern exploration techniques such as
aeromagnetic and gravity datasets.
Emmerson carried out Australias first
HeliTEM geophysical survey over the
tenements in 2011, using one of the worlds
most powerful helicopter survey systems to
map historic gold-copper deposits.
Evolution vice president discovery
and chief geologist Roric Smith said his
companys geophysics and structural
geology skill sets would complement
Emmersons
exploration
techniques
to maximise the opportunity for new

Wirralie has not seen


modern exploration
since the late 1980s
and Evolution plans to
use knowledge from
its other Queensland
operations to discover
the regions potential.
discovery.
With some of the exploration
breakthrough provided by Emmerson
using HeliTEM, combined with gravity
and magnetic techniques to discover the
Monitor and Goanna deposits, we believe
that there is excellent potential for the
discovery of further high-grade gold and
gold-copper resources, he said.
Under the terms of the farm-in and joint
venture agreement, Evolution can earn
a 65 per cent stake in the tenements by
spending $15 million on the project in the
next three years, and can up its stake to 75
per cent by dropping another $10 million

The Cracow projects shift to an owner-miner model is estimated to have saved Evolution Mining more than $18 million last financial year.

Mt Rawdon also moved to an owner-miner model at the start of this financial year.

over the following two years.


Evolution will spend $1.87 million on 49
million new Emmerson shares to claim a
16 per cent stake in the company, and will
issue $2 million worth of new shares to its
new partner.
Tennant Creek is not the only historic
gold territory eyed by Evolution in the
same month, the company was granted
three exploration tenements centred on
North Queenslands Wirralie gold mine.
Previous mining at Wirralie focused
on oxidised mineralisation to a depth of
70m. Processing technology at the site
was unable to treat refractory sulphide
mineralisation, meaning no exploration
was carried out on sulphide mineralisation
in the area.
Wirralie has not seen modern
exploration since the late 1980s and
Evolution plans to use knowledge from its

other Queensland operations to discover


the regions potential.
Mr Smith said Evolutions focus was
to consolidate a large landholding in an
area with high potential for discovery of
epithermal style mineralisation.
At Wirralie the company has claimed
890sqkm.
Both the Tennant Creek deal and
Wirralie tenements fit well with Evolutions
exploration focus. Commenting on the
farm-in agreement, Evolution executive
chairman Jake Klein said Australia was
under-explored with many discoveries still
to be made.
The Tennant Creek mineral field is
a good example of a world-class mineral
province that has only recently seen
the application of new technologies and
exploration concepts to reinvigorate
exploration in the area, he said.

Solid results
The exploration announcements came on
the back of a strong financial year and final
quarter for Evolution, with most operations
producing in line with or above guidance.
Evolution produced 427,703oz of gold
equivalent in the 2013-2014 financial year,
up 9 per cent on the previous year.
The Mt Carlton gold project proved
Evolutions biggest outperformer in its
first full year of production, churning out
87,952oz far ahead of its guidance range
of 65,000oz to 75,000oz.
Faster than expected ramp-up and
better access to higher grade ore helped
boost the operations output.
Cracows 95,064oz also put it ahead of
market guidance and the projects shift to
an owner-miner operation was estimated
(continued on page 37)

36

THE AUSTRALIAN MINING REVIEW

OCTOBER 2014

www.miningoilgas.com.au

SPECIAL PROFILE Evolution Mining

Company providing affordable


services for remote facilities

Project Facilities Management offers affordable services to smaller camps.

PRIVATELY owned company Project


Facilities Management Australia
(PFM) specialises in remote camp
accommodation facilities management
for the mining and construction
industries, operating in the Torres Strait
and Mount Isa.
The company was established to
service smaller mining exploration
and construction camp sites, providing
affordable quality of service in catering
and accommodation management.
PFM founders Therese McInnes
and Aleksandra Rosa met during the
construction of Evolution Minings
Mount Carlton project and combined
their expertise to create a progressive
company
specialising
in
camp
management and commercial cleaning.
The company boasts a quick response
to clients requests, with the ability to
mobilise within two to three weeks to
most urgent requirements.
Recently PFM responded to an urgent
request for cleaners in Victoria following
the Hazelwood mine fire. Within two
weeks the company was able to mobilise
a cleaning crew from Townsville and
recruit locally in Morwell.
PFMs comprehensive list of services
includes
full
camp
management;
reservation and staff tracking systems;
catering; housekeeping and laundering
services; maintenance and ancillary camp
services; camp licensing; occupational
health, safety and environment systems;
and commercial cleaning services.
The company takes a different
approach to camp management services,
recognising its clients requirements are
diverse and the one box fits all approach
does not work.
PFM offers a flexible, creative
and innovative service to its clients,
including meals made to order.
A socially and environmentally
conscious company, PFM strives to
positively contribute towards the local
communities in which it works by
sourcing local labour and suppliers
where possible and minimising its
carbon footprint.
The company offers unparalleled
service, equal to the services enjoyed
by the larger camp sites, but more
personalised and flexible to meet its
clients requirements.

Instrument supplier
committed to efficient
ongoing operations
FOR nearly 20 years Pacific Rim
Technical Services (PRTS) has been
supplying instrumentation packages
to green and brownfield sites across
Australia, Asia and West Africa.
The company is proudly involved
with two Evolution Mining operations
in North Queensland; it was selected
as the package instrument supplier to
Pajingo mine when it was first built
by Normandy Mining in 1998, and was
later chosen for the general instrument
supply at the Mt Carlton mine in 2012.
As a regular visitor to both sites,
PRTS is committed to the efficient
ongoing operation of Evolution Minings
North Queensland operations.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

37

SPECIAL PROFILE Evolution Mining

Evolving through exploration


(continued from page 35)

to have saved the company between $18


million and $20 million last financial year.
The Pajingo project had a less successful
year, producing 60,766oz more than
10,000oz below its lower guidance range.
The drop in production came as a result of
a restructure aimed at reducing operating
costs from $897 per ounce last financial
year to an estimated $700 to $770/oz this

financial year.
Mt Rawdon produced 103,755oz, well
within its market guidance, and also made
the shift to an owner-miner development
in July, with cost savings expected to flow
throughout this financial year.
Evolutions sole WA project, Edna
May, produced slightly below guidance
at 80,165oz, largely due to lower than
expected grades and processing plant
issues.

The Mt Carlton projects gold production far exceeded market guidance.

Specialising in precision lasers


for underground mining use
EASTERN-states based Laser Services
specialises in the manufacture and supply
of lasers, laser systems and accessories for
a broad range of industrial applications,
including mining, commercial services,
alignment, education and medicine.
As part of its manufacturing capabilities,
Laser Services offers engineering and
research and development input for
custom-made products for the mining
industry.
The companys MTL-1-SL series mining
laser is used extensively throughout
underground mines in Australia for
production heading alignment.
By ensuring surveyors are only needed
for direction change alignment or new
laser stations, the MTL-1-SL system can
dramatically reduce underground survey
time.

Battery-operated, small in size and


easy to use, the MTL laser can increase
production and decrease downtime by
reducing alignment hours or time spent
waiting for a heading reference.
Laser Services also represents major
organisations covering building and
construction products and surveying
instrumentation,
including
levelling
and pipe lasers & accessories, radio
communications, survey equipment, laser
range-finders and electronic distance
measuring devices.
The companys Queensland facilities
include a well-equipped showroom and a
service centre specialising in the repair of
laser, optical and surveying products.
Laser Services works hand-in-hand with
customers to deliver a final product suited
specifically to their needs.

Marketing mining to Australia


WITHIN todays tough competitive
environment,
Australian
mining
companies must promote themselves and
their value to markets and communities
effectively and appropriately, if they
are to build commercial interest and
engagement.
Professional communications agency
Scribble & Think helps companies do
this with greater impact; to achieve
ambitious goals, improve relevance and
enable audiences to understand and
engage with them.
Scribble & Think provides a complete

service offer to its clients from brand


strategy, naming and identity design
to corporate reporting, marketing
collateral, digital strategies and website
development and has used these
capabilities to build brands of relevance
and power for some of Australias leading
mining companies.
Scribble & Think firmly believes that
brand and business are one and the
same and uses this belief system to turn
ideas into compelling communications
that engage markets with brands.

The savings drive, reflected in recent


shifts to owner-miner models and
restructuring, came in response to lower
gold prices and a slower market.
Mr Klein said the courageous changes
to the business had paid off.
Evolution has previously and I think
somewhat unfairly [been] labelled as high
cost, he said.
But with all-in sustaining costs of less
than US$1000 per ounce...by any relative

measure this is not high cost.


Mr Klein said it was pleasing to deliver
production results consistent with market
guidance.
It is a testament to the benefits of
having a diverse portfolio of assets which
allows us to deliver a level of operational
predictability that is not possible in single
asset companies, he said.

...we believe that there


is excellent potential
for the discovery of
further high-grade
gold and gold-copper
resources.

38

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

SPECIAL PROFILE Atlas Iron

Fresh horizons for Atlas


Mark Scott
STRAIGHT off the back of what Atlas
Iron managing director Ken Brinsden
described as a formative year, the
Australian iron ore producer is busy
setting itself up for long-term success.
Atlas quietly launched on the ASX
in 2004 as a one-man operation worth
$9 million and has grown into one of
Australias most successful independent
iron ore miners.
Since its maiden Pardoo project began
production in 2008, Atlas has had its
eye firmly focused on its Horizon I
development plan expanding its Pilbara
developments to reach a production rate
of 15 million tonnes per annum by late
2015.
But with the official opening of its Mt
Webber mine in July, and after reaching
its 12mtpa interim production target
during the June quarter, Atlas is turning
its attention to the future.
Reduced capital expenditure as a
result of reaching the end of Horizon I
is set to free up funding needed for Atlas
to embark on its next stage of growth
Horizon II, which it hopes will be a
stepping stone to becoming the next
great Australian company.
Five years, five mines
Horizon I was built on a simple premise
five direct shipping ore (DSO) mines to
be built and operational in roughly five
years, kicking off at Pardoo, 75km east
of Port Hedland, in late 2008.
The Wodgina project, 100km south
of Hedland, followed suit in 2010 and
Mt Dove and Abydos, also in the north
Pilbara, were added to the producing
portfolio by mid-2013.

These lower capital


and operating costs
continue to improve
our already-strong
position on the global
cost curve, and
against our peers in
Australia.
Each of the Horizon I developments
relies on road haulage to bring product to
Port Hedland, where Atlas initially had

Atlas Iron developed five operational DSO mines in the North Pilbara across five years Pardoo, Wodgina, Mt Dove, Abydos and Mt Webber.

a 6mtpa berth and stockyard allocation


at Utah Point. After acquiring Aurox in
2010, the companys allocation soared
and is set to reach 15mtpa by next year.
The Mt Webber mine development
was the final plank in the Horizon I plan
and, according to Atlas, marks the link
between it and Horizon II.
Development began at Mt Webber,
located
about
230km
southeast
of Hedland, last July and a rapid
construction process allowed mining
operations to begin by the end of the year.
WA Mines and Petroleum minister
Bill Marmion officially opened the
3mtpa, $146 million mine this July, with
haulage operations kicking off later that
month.
Mr Brinsden said Mt Webber was
one of the companys lowest-cost mine

developments with capital efficiency of


$35 per annualised tonne of production
and competitive operating costs.
These lower capital and operating
costs
continue
to
improve
our
already-strong position on the global
cost curve, and against our peers in
Australia, he said.
The low $212 million capital cost
of the project includes a substantial
contribution towards road upgrades in
the region, which benefits all Pilbara
road users.
We are also proud that an
infrastructure sharing arrangement with
[joint venture partner] Altura Mining...
has helped foster another independent
producer and unlock what would
otherwise be a stranded resource, for the
benefit of both parties, the community

and the state.


Mr Brinsden said Atlas had moved
straight into stage two development at Mt
Webber after the official opening of stage
one, targeting an increased production
rate of 6mtpa by early next year.
Once Mt Webber hits its peak capacity,
Atlas will be ahead of its Horizon I
production target of 15mtpa.
Mr Brinsden said the year had proved
formative for Atlas.
The opening of the Mt Webber Stage 1
project marks the completion of the bulk
of our planned Horizon I development
program and Atlas will now focus on the
optimisation of production across all of
our mines to further drive down costs,
he said.
(continued on page 40)

Strong can do culture drives group


ASX-listed mining services and civil
construction group MACA Limited
provides services to the Australian
mining and infrastructure sectors,
including load and haul, drill and blast,
crushing and screening, materials
handling and civil infrastructure.
The MACA business is in a strong
financial position, with current annual
revenue of circa $600 million and more
than $1.3 billion work in hand.
MACA prides itself on delivering
quality work and values its long-term
relationships and continued repeat work.

Its client base is diversified across iron


ore, gold, lead, diamonds and civil, with
an average contract length of 33 months.
The group is totally committed to the
ongoing safety, health and wellbeing of
its workforce and operates an integrated
safety and health management system
certified to the requirements of AS/NZS
4801:2001.
Consistently maintaining a lost time
injury frequency rate below industry
average, MACA has gone more than 12
months without a lost time injury.
The company holds industry-leading

accreditations, operating an integrated


business management system certified
to the requirements of ISO 9001:2008.
MACA also actively supports many
community groups and charities,
including the Princess Margaret Hospital
Foundation; the 2014 Sunsuper Ride
to Conquer Cancer, with its target to
raise $1.5 million for the Harry Perkins
Institute of Medical Research; and the
West Australian Symphony Orchestra.
Its mining operations include Atlas
Irons Mt Dove and Abydos projects,
Sinosteel Midwest Corporations Blue

Hills project, Rosslyn Hill Minings


Paroo Station mine, Regis Resources
Rosemont, Garden Well and Moolart
Well projects, Arriums Peculiar Knob
project and Kimberley Diamonds
Ellendale project.
The groups civil projects include the
Browns Range Alliance and Safelinks
Program Alliance for Main Roads WA
and a number of projects for Rio Tinto.
With a strong brand and can do
culture, MACA continues to retain and
develop strong relationships with its
clients, suppliers and stakeholders.

40

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

SPECIAL PROFILE Atlas Iron

Fresh horizons for Atlas


(continued from page 38)

New horizons
At last years annual general meeting,
Atlas Iron non-executive chairman David
Flanagan said the light at the end of
the Horizon I tunnel was growing ever
brighter.
In 2014-2015, our Horizon I capital
expenditure is forecast to fall to
approximately $140 million from over
$320 million this year, he said.
This is more than just a huge
milestone for our company. The ongoing
cash flow that will be generated as a
result of this period of investment can
barely be over-emphasised.
But perhaps most importantly,
these assets, this cashflow and this
conservative balance sheet that sits
behind it, open the door to the next phase
of Atlas evolution.
That next phase Horizon II will
expand the companys focus right
across the Pilbara, while also boosting
production in its north Pilbara heartland.
A feasibility study is currently
underway on the McPhee Creek project,
east of Mt Webber, which contains Atlas
biggest single DSO resource and is
expected to produce about 10mtpa.
Between Mt Webber and McPhee
Creek lies the Corunna Downs project,
which has an exploration target set at
100 to 150 million tonnes at 55 to 58 per
cent iron a target Atlas has said it is on
track to reach.
In the southeast Pilbara, about 100km

east of Newman, Atlas owns the Davidson


Creek Hub project, covering three
tenement areas. The project contains ore
reserves of 239mt and would underpin
Atlas expansion out of the north Pilbara,
boosted by a further two exploration
projects closer to Newman McCameys
North and Western Creek.
Atlas helped drive the North West
Infrastructure (NWI) alliance bid for
more port space in the Pilbara, which
led to the proposed South West Creek
project in Port Hedland. Atlas 63 per
cent interest in NWI would see it capable
of exporting another 31.5mtpa once the
project is developed.
But the entire Horizon II program
relies on a fundamental shift in the
companys operating model switching
from road to rail. Atlas truck capacity is
capped at about 15mtpa and has limited
the company to projects close to Port
Hedland.
The company is currently carrying out
a number of surveys on the possibility of
using rail to transport its product from its
southeast Pilbara deposits, via McPhee
Creek and nearby resources, to port.
We are more confident than ever that
we will secure an infrastructure deal
that will unlock the immense potential
of both our additional Pilbara iron ore
resources through rail haulage solutions
and our highly valuable port capacity,
Mr Flanagan said.
Rail transport will be to the next
chapter of Atlas what the trucking
strategy was to the first and then more.

The Pardoo DSO project was Atlas first operating mine.

Surface core drilling rigs


optimising exploration

Nepean Conveyors successfully installed Atlas Irons new CV04 stockyard reclaim conveyor at the
companys Port Hedland stockyard and load-out facility.

OLD mining infrastructure can be a


hindrance to exploration efforts. The
presence of old pits and waste dumps or
roads can increase information gaps and
risks during the early stages of a mining
project.
WA-based drilling company West
Core Drilling has worked to bridge the
information gap, providing specialised
surface core drilling rigs to drill at shallow
angles (down to minus 30 degrees). These
modified rigs can handle conditions more
effectively than alternative options such
as using underground rigs from the surface

and ensure shallow angle drilling can


take place safely and efficiently. Recent
HQ and PQ-size drilling contracts have
shown excellent productivity, even at very
shallow angles.
This improved flexibility is also
valuable for drilling on inclines or within
hilly areas. Drilling at shallower angles
enables holes to be drilled across a wide
range of dips. When coupled with small
footprint, track-mounted rigs, access
tracks and drill pads can also be cleared
more effectively, minimising ground
disturbance.

Engineered conveying and


materials handling solutions
AUSTRALIAN owned Nepean Conveyors
specialises in the design, supply and
servicing of belt conveying systems
within the mining industry. Established
more than 25 years ago, Nepean has
developed an enviable reputation for
rugged, reliable, fit-for-purpose designs
and manufactured equipment. The
company supplies conveyor equipment
and systems throughout Australia and
Africa.
Nepean provides mining customers
with a wide range of proprietary products
tailored to specific needs including
conveyor pulleys; idlers and idler
structures; conveyor drive solutions;
a variety of constant tension winches;

conveyor loop take-up and belt storage


systems; belt maintenance equipment;
and belt transfers either supplied
as standalone equipment or part of a
complete system supply. Nepean has
supplied complete conveying systems to
overland, plant and underground mining
across a wide variety of applications
including coal, iron ore, gold, platinum
and mineral sands.
Nepean successfully installed Atlas
Irons new CV04 stockyard reclaim
conveyor at the companys Port
Hedland stockyard and load-out facility.
The turnkey project was delivered
cost-effectively and ahead of schedule,
and has been in operation since late 2013.

West Core Drilling provides specialised surface core drilling rigs to drill at shallow angles (down to
minus 30 degrees).

42

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

SPECIAL PROFILE Aurizon

Rail giant stays on track


Jo Campbell
AUSTRALIAS largest iron ore hauler
outside of the Pilbara has posted another
solid full year result, despite the continuation
of subdued market conditions.
Aurizon continues to grow in the face of
the market downturn, increasing from a base
of 13.6 million tonnes in the 2012 financial
year to 29.9mt in 2014.
This positive result came as the company
navigated a joint venture with one of the
worlds largest steel companies, Baosteel
Resources, with the two companies
successfully acquiring WA iron ore producer
Aquila Resources through a $1.4 billion joint
off-market bid in July.
The joint venture is now investigating the
creation of a world-class multi-user supply
chain for a greenfield iron ore development
in the West Pilbara, with the potential
to unlock high-quality projects for other
mid-tier miners. The two companies also
aim to deliver metallurgical coal resources in
Queensland.
Aurizon is currently involved in bringing
small volumes of iron ore to port in WA, and
is the only contract rail service in the state to
do so. The Aquila acquisition will allow the
joint venture to push forward development of
the West Pilbara Iron Ore Project (WPIOP),
which will enable Baosteel to secure access to
iron ore fines for steel making and guarantee
Aurizon the opportunity to develop
multi-user iron ore rail-to-port infrastructure
in the Pilbara region.
Aurizon chief executive Lance Hockridge
said the partnership with Baosteel
represented a change in Chinese attitudes to
local business.
It also shows a maturing evolution in
Chinese investment in Australian resources,
where it is partnering with local companies
and entrusting local leadership teams with
on-the-ground project management and
delivery, Mr Hockridge said.

Aurizons Wiggins Island Rail Project was designed to link mines in the Southern Bowen Basin with the new Wiggins Island Coal Export Terminal.
[All Images: Aurizon]

The global market


environment is
a fundamentally
different place than
it was but just a few
years ago. Growth
has slowed but its
certainly not zero
growth and Australia
remains on the
doorstep of global
economic activity.
Aurizon is now undertaking the next
phases of work, including scoping the rail and
port infrastructure requirements for WPIOP,
while a strategic review of Aquilas other
businesses is in progress. Any infrastructure
development will be dependent on passing
through several stages, the agreement of
tariffs with mine owners (the Australian
Premium Iron Joint Venture) and a final
investment decision by Aurizon.
Aurizon is Australias largest rail freight
operator and has played a critical role

Aurizons freight service is the backbone of Queenslands coal supply chain.

in Queensland, providing the transport


backbone for one of the worlds largest coal
supply chains. In recent years it has extended
its business focus beyond its Queensland
heritage to coal and iron ore opportunities in
NSW and WA, as well as intermodal freight

across the nation.


Each day the company moves an average
of more than 700,000t of coal, iron ore and
other minerals as well as agricultural and
general freight across the nation. Its Central
Queensland coal network comprises about

2670km of heavy haul rail infrastructure


and the company also provides a range of
specialist services in rail design, engineering,
construction, management and maintenance,
and offers large-scale supply chain solutions.
Originally a state-owned enterprise,

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

43

SPECIAL PROFILE Aurizon


the company was privatised in 2010 and
since listing on the ASX has grown
in value by 80 per cent with a market
capitalisation today of more than
$10 billion. Despite a number of recent
writedowns, Aurizon posted record coal
volumes of 210.4mt for the 2014 financial
year, an increase of 9 per cent on 2013.
The company recently undertook
a large exercise in cost reductions as
part of its comprehensive response to
the resources sectors slow-down. Mr
Hockridge said that transporting record
tonnages with a substantially smaller
fleet, using less fuel and incorporating
better cycle times had resulted in the
companys ongoing success.
The global market environment is
a fundamentally different place than it
was but just a few years ago. Growth has
slowed, but its certainly not zero growth
and Australia remains on the doorstep of

Despite slower
growth and lower
commodity prices, I
remain upbeat about
long-term sustainable
growth for our
resources.
global economic activity.
So, despite slower growth and lower
commodity prices, I remain upbeat about
long-term sustainable growth for our
resources.
Looking forward, we expect short
term growth is going to be relatively
modest, albeit that there continues to

be considerable opportunity to continue


that momentum around transformation.
Growth projects include working
closely with GVK-Hancock on a transport
solution for the Galilee Basin, including
majority ownership of the rail and port
infrastructure under development at the
Abbot Point Coal Terminal. Finalisation
of definitive documents has been
deferred to align with completion, which
is expected to occur early next year.
Aurizon is also a 33 per cent partner
with Qube in the Sydney Intermodal
Terminal Alliance consortium, which is
exclusively negotiating with the Federal
Government to co-develop strategic
rail and port infrastructure as part
of the Moorebank Freight Terminal
Development in Sydney. The project
has potential to materially enhance the
competitive environment for customers
by unlocking Sydneys transport gridlock.

As one of Australias largest rail freight operators, Aurizon moves about 7000 tonnes of materials each day.

Strategic
relationship
reaps rewards
BMD has a proud history of delivering rail
projects with a vast array of experience
encompassing urban, rural and major
rail infrastructure projects throughout
Australia. BMD has extensive experience
working in live rail environments and has
an established client relationship with
Aurizon that has led to ongoing contracts,
furthering BMDs commitment to expand
its capability in this sector.
One recent project completed for
Aurizon was the Dalrymple Bay Coal
Terminal (DBCT) to Hay Point Services
Coal Terminal (HPSCT) 2nd Road and Q50
Flood Immunity Works in Queensland.
The project involved the duplication of
about 7km of an existing section of railway,
which makes up part of the much larger
Goonyella System, and the installation of
additional culverts to provide Q50 flood
immunity. The 924km Goonyella Rail
System services 30 coal mines where coal
is exported through the HPSCT and the
DBCT.
In the past 12 years, BMD has developed
a strong relationship with Aurizon and will
continue to provide expertise alongside
rail partner Rhomberg Rail to undertake
crucial infrastructure upgrade works in
Central Queensland. With this strategic
partnership in play, BMD will now be able
to provide Aurizon with a one-stop-shop
for completing civil and track works.

44

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

SPECIAL PROFILE Northern Minerals

Australian project to shake global industry


Mark Scott
A HEAVY rare earths (HRE) project
in remote WA is set to turn Australia
into the worlds first major producer of
dysprosium outside of China.
Dysprosium is a HRE that is essential
in the production of permanent magnets
used in hybrid electric vehicles,
wind turbines and other high-tech
applications.
With demand rising for clean energy
products, a Massachusetts Institute
of Technology study released in 2012
predicted that demand for the element
would soar 2600 per cent over the next
25 years.
The permanent magnet sector is
expected to grow by between 8 and 12
per cent per annum to 2020, with further
growth possible if long-term dysprosium
supplies become available at competitive
prices.
At present, China is the worlds only
major supplier of HRE. But that could
soon change, with the WA Environment
Minister set to make a final decision
on Northern Minerals Browns Range
project in coming weeks.
The project would produce 279,000kg
of dysprosium per annum in a mixed rare
earth oxide, which could meet global
demand outside of China by 2020.
Alongside other light rare earth
projects, Browns Range could help create
a downstream opportunity for WA around
separating mixed oxides into individual
elements, potentially diversifying the
manufacturing industry and helping to
attract large multinational corporations
to the HRE supply chain.
The development of the project will
increase market and industry confidence
both domestically and globally, and
further strengthen Australias position
as a leader in resource development,
Northern Minerals managing director
George Bauk said.
Our recent achievements reinforce
the robustness of the project and means
Browns Range is well positioned to
become Australias first significant
source of high value dysprosium.
Browns Range
The Browns Range project is located
about 160km southeast of Halls Creek
and 50km southeast of the Ringer Soak
community in WA.
The initial project will comprise

Exploration at the Browns Range project, Australias first major dysprosium development.

four open pits, with two pits to move


underground, and will have a 10-year
mine life. All four of the projects deposits
remain open at depth and Northern
Minerals is confident the mine could
extend well beyond its initial life.
Dysprosium will be processed in
two stages on site beneficiation and
hydrometallurgical processing to produce
279,000kg within 3.2 million kilograms of
high purity mixed rare earth oxide.
Xenotime mineralisation at Browns
Range is rich in dysprosium, providing a
key competitive edge for the project.
Through the beneficiation stage ore
can be significantly concentrated up
to 30 times resulting in a cost-efficient
hydrometallurgical processing plant to
produce the final product.

The Browns Range exploration camp, near the WA-Northern Territory border.

The project will also include an airstrip,


diesel power generators, tailings storage
facility and an accommodation village.
Northern Minerals released its
pre-feasibility study in June and began
its full feasibility study that month,
aiming to make a final investment
decision in early 2015.
Construction is set to begin in 2015,
with production to kick off in the third
quarter of 2016.

Northern Minerals is
confident the mine
could extend well
beyond its initial life.

The Wolverine outcrop at Browns Range.

Home stretch
A major step forward for the project
came in June, with Northern Minerals
signing a co-existence agreement with
local Traditional Owners, the Jaru
people.
The agreement includes economic
and social outcomes for the Jaru people,
some of which the community will begin
to receive now, while others are linked to
production including unlisted options
in Northern Minerals.
It also offers the Jaru people
social development benefits such as
training, employment and community
development opportunities, and sets out
a framework to protect cultural heritage
throughout the projects development.
Jaru People spokesman and KRED
Enterprises chief executive Wayne
Bergmann said the agreement was a
major achievement for the Jaru people.
The negotiations over the past 18
months have been expedited because
of the strong relationship between
[Northern Minerals] and the Jaru
people, he said.
If progressed, the project has the
potential to provide many positive
economic and social benefits to the Jaru
people and the wider community.
Mr Bauk said the company would
continue to work with the Jaru people
to ensure they could create meaningful
and positive change in their community.
From the early stages of exploration
the company has engaged openly and
honestly with the Traditional Owners,
and I am proud of the strong relationship
that has developed, he said.
While
this
agreement
is
a
formalisation of this relationship, we are
committed to ongoing collaboration to
ensure future benefits are maximised.
Following the signing of the
agreement, the Browns Range project
was granted its mining lease and
Northern Minerals submitted the project
for environmental approval.
Last month the Environmental
Protection Authority recommended
the Environment minister approve the
project subject to conditions outlined in
its report, noting Northern Minerals had
proposed to apply a number of impact
avoidance and minimisation principles.
Appeals on the report closed on 1
September and the minister is expected
to make his determination on what could
be Australias first dysprosium-focused
project in coming weeks.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

45

SPECIAL PROFILE Australia-Malaysia Business Council

Trade agreement benefitting business


Emma Brown
THE Malaysia Australia Free Trade
Agreement (MAFTA) has proven valuable
for businesses, investors and consumers in
both countries, who have benefitted from the
reduction and elimination of tariffs since its
introduction last January.
Under the agreement, Malaysia eliminated
tariffs on 97.6 per cent of goods imported from
Australia, which will be extended to 99 per
cent by 2017. Malaysian exports will also
receive duty-free entry into Australia. The
MAFTA is a high-quality agreement that
further integrates the Australian economy
into the fast-growing Asian region.
The Australia Malaysia Business Council
(AMBC) national president Ian Jordan said
the reduction and elimination of tariffs had
prompted strong growth in bilateral trade and
investment between the two countries.
Trade has increased substantially with
numbers suggesting it has risen by as much
as 25 per cent in the last year, Mr Jordan
said.
The agreement is strong and existing
businesses have benefited from its launch and
new businesses investigating a move to Asia
are now seeing Malaysia as a viable option.
The AMBC works with members and
stakeholders from government and industry
to promote trade between the two countries.
Part of our role involves providing
feedback to government and industry about
how trade could be better facilitated, Mr
Jordan said.
The relationship between the two countries
dates back to the nineteenth century, when
Malaysia participated in the pearling industry
in Australias northern waters. Today, trade
between the countries is complementary, with
Australia exporting its natural resources,
dairy products and sugar, and importing
crude petroleum, furniture and electronic
products. Australia exported $710 million of
copper and $356 million of coal to Malaysia
between 2011 and 2012.
A number of Australian mining companies
currently operate in Malaysia, including rare
earth miner Lynas and GBM Resources.
Lynas operates the strategically located
Lynas Advanced Materials Plant (LAMP)
near the Port of Kuantan. One of the benefits
for Lynas operating in Malaysia is the 12-year
tax-free period granted by the Malaysian
Industrial Development Association, the
company stated.
Lynas announced in July it would also
relocate its head office from Sydney to Kuala
Lumpur in an effort to improve organisational
efficiency and reduce overall costs.
Mr Jordan said Lynas was just one
example of how mining companies were

Australian Malaysia Business Council national president Ian Jordan said trade has increased significantly since the MAFTA was established.

creating further opportunities in Malaysia.

The agreement
is strong and
existing businesses
have benefited
from its launch...
new businesses
investigating a move
to Asia are now
seeing Malaysia as a
viable option.
Many investments have been made both
ways in the mining sector to date. There are
many opportunities for such a large industry
and those that are currently considering
pursuing opportunities in Malaysia will be
pleasantly surprised, he said.
Australias proximity to Malaysia [and] its
stable and professional business, government
and regulatory frameworks are just some

of the benefits of doing business with the


country.
GBM Resources is actively building a
portfolio of gold projects in Malaysia. The
company stated that Malaysia was a premier
mining country with a stable political regime
and production cash costs among the lowest
in the world. GBM recommenced mining
operations at the Lubuk Mandi gold mine
early last year.
The AMBC was founded in 1987 and Mr
Jordan said the introduction of the MAFTA
was the biggest milestone achieved to date,
as it effectively made it easier to do business
which is the councils main objective. It
also aims to develop a better cultural and
social understanding between the countries
and facilitate liaison between Australia and
Malaysia on matters affecting products and
services capable of export.
The two countries have a lot in common,
except Asia tends to be more relational
and Australia more transactional, said Mr
Jordan.
As a result a common ground must be
found, but this is easily done by spending time
in the country and building relationships, he
said.
The council runs chapters in all states
throughout Australia except Tasmania. Each
state runs a calendar of events to discuss
trade, education and networking. Mr Jordan

said AMBC membership was growing as a


result of the industrys current trends.
There is a growing interest in Malaysia as
a springboard for businesses into Asia, but it
is also because of the consistently good work
by the individual state chapters, he said.

46

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

SPECIAL PROFILE M&E Indonesia

Australian and Indonesian industries unite


Jane Goldsmith
TWO leading trade and consumer
exhibitions have joined forces to deliver
business opportunities for Australian
and international mining suppliers at
one accessible event.
Mining and Engineering Indonesia
(M&E) owned and operated by
Australian event coordinator Reed
Mining Events has incorporated
government-owned Austrades Ozmine
Expo into its profile, to provide an
Australian flavour to the international
event.
Running from 29 to 31 October at
Jakarta International Expo Centre
in Kemayoran Jakarta, the strategic
partnership
will
showcase
new
technologies and products to the global
minerals and metals industries.
Reed Mining Events director Paul
Baker said the events emphasised
global developments in exploration,
mining and minerals processing, and
aimed to stimulate investment in
Australian ventures and in Indonesias
rising mining and minerals processing
industries.
There were very good synergies
between what Austrade wanted to
achieve for Ozmine this year and
what we wanted to achieve for M&E
Indonesia, Mr Baker said.
To bring them together made a
lot of sense, as it provided the best
opportunity for Australian companies,
and also international companies
including Indonesia, China, USA, South
Africa, Taiwan and so on to network
and share ideas.
The biennial M&E event launched in
2012 and will run for the second time
in 2014. Ozmine is an annual event
running for its eighth year although
the 2014 event will be its first as part
of M&E.
The key for the Australian
Government and Ozmine is to provide
platforms in Indonesia where Australian
companies can do business together,
network, learn how to establish
themselves within the supply chain, Mr
Baker said.
Australia is one of the leaders in the
world in terms of mining, equipment,
technology and services.
Our experience in innovation and
technology in that space is some of the
best in the world, and so within this
event, were essentially applying those

In 2014, Austrades OzMine has been incorporated into Reed Mining Events M&E Indonesia event.

capabilities to Indonesia one of our


closest neighbours and simultaneously
providing a great investment opportunity
for Australian companies.

Mining is a cyclical
industry, and troughs
and peaks are to be
expected.
M&E Indonesia
Reed Mining Events is a well established
brand in Australia, regularly hosting
events across Newcastle, the Hunter
Valley and WA; M&E was cloned from
the events formula used within its
Australian events portfolio.
We took Reed Mining Events formula

Mining and Engineering Indonesia will run from 29 to 31 October at Jakarta International Expo Centre
[Image: Reed Mining Events]
in Kemayoran Jakarta.

for our Australian trade exhibitions, and


used it to establish M&E Indonesia in
2012, Mr Baker said.
There are also a lot of synergies in
applying Australian capabilities to some
of the processes over in Indonesia. There
are the business opportunities available
in terms of the resources available
great opportunities right on the doorstep
for Australian companies.
The event aims to assist Indonesia
in its key development priorities
including developing new production
and refining facilities, and increasing
mine numbers, as well as upgrading
existing mines; increasing awareness
and education of legal obligations,
safety and environmental requirements;
and increasing productivity through
sourcing new equipment and technology.
Expo
attendees
will
include
representatives from barging; transport,
blasting and demolition; contracting

[Image: Reed Mining Events]

and sub contracting; drilling and


engineering services; environmental and
waste management; materials handling
and processing; occupational health and
safety management; new technologies;
and power and energy processing.
Mr Baker noted Indonesias mining
industry faced very similar issues to
Australia, which further enhanced the
events synergies.
Indonesia has its own policies and
regulations, so some of the content will
cover those issues and topics; however,
in terms of what the industry requires,
the Australian mining sector has so
many case studies and experiences on
how to improve efficiency.
Being able to translate that in to the
challenges for the industry in Indonesia
is really important, and really valuable
to this industrys development.
(continued on page 48)

Attendees can view company demonstrations at the OzMine and M&E Indonesia exhibitions.
[Image: Reed Mining Events]

48

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

SPECIAL PROFILE M&E Indonesia

Australian and Indonesian industries unite


(continued from page 46)

Ozmine
Ozmine is the second event within the
M&E Indonesia series. The first was
held in May, and this second instalment,
including an exhibition and conference,
aims to identify and consolidate key
Indonesian and Australian industry
players, while promoting discussions on
industrial opportunities and challenges.
Reed Mining Events is organising the
exhibition component for Austrade, and
the actual conference is going to be run
onsite at the exhibition, he said.
M&E and Ozmine are both free to
attend, with the Ozmine conference
focused on showcasing Australian
capabilities.
Event attractions
Mr Baker said M&E would emphasise
education, with several international
keynote speakers presenting at the
conference, as well as a free-to-attend
TechLab.
The TechLab is where we provide a
platform for suppliers to talk about the
technology and innovation they have to
improve efficiency, Mr Baker said.
We have a number of networking
events that will be announced soon
including night time networking events, a
combination of private VIP ones, as well
as some free-to-attend ones.
We are also finalising smaller
workshops and seminars, which will
average about half a day to a day in
length.
Into the future
Mr Baker stated that within the current
softened market environment, it was more
important than ever for mining ventures
to boost productivity.
The industry is not growing as fast as
it was after end of the investment phase
in 2011 and 2012; what companies are

The M&E and Ozmine partnership will showcase new technologies and products to the global minerals, metals and ores industries.
[Image: Reed Mining Events]

now looking for is to get more out of their


operations and the investment they made
across the high-commodity price period
that are coming on line, Mr Baker said.
Companies want to get their products
out as cheaply, quickly and as safely as
possible. The Australian mining industry

There were very good synergies between what


Austrade wanted to achieve for Ozmine this
year and what we wanted to achieve for M&E
Indonesia.

A more efficient way to


process global resources
THE mineral processing industry is
turning to sensor-based ore-sorting
technology as a more efficient way to
process resources.
Material moving through the sorting
process is heavy, dusty and abrasive,
and these high demands on equipment
require a special technology.
TOMRA Sorting Mining, previously
known as CommodasUltrasort, has
combined material handling, product
recognition and pressurised air ejection
in a robust and tested system, which
reliably separates valuable mineral ores
from waste rock.
This
technology
provides
top
efficiency, precision and speed.
Regardless of the resource diamonds,
gold, limestone or coal the sensors

recognise the target material on the


basis of typical characteristics such as
colour, atomic density, transparency or
conductivity.
The valuable mineral-bearing rock
is then selectively expelled using a
precise pulse of pressurised air from
the high performance nozzle system,
regardless of whether it is a small
diamond or a heavy lump of ore.
TOMRA Sorting Solutions is the
pioneer in sensor-based sorting.
Experience gained from more
than 10,000 installed systems in the
mining, food and recycling industries
as well as innovation from 16 test
facilities around the world has led to
significant advances in the companys
sensor-based technology.

is still growing quicker than the Australian


economy, so its still a very healthy sector.
Theres some great things happening in
the sector and its all about innovation and
technology to meet those challenges.
He said Ozmine and M&E Indonesia
would together champion the industrys
long term health, promoting information
sharing
and
rising
investment
opportunities.

Mining is a cyclical industry, and


troughs and peaks are to be expected.
There are some speed bumps that still
need to be overcome in Indonesia around
policy and regulation, but the potential
coming out of there for companies looking
to take advantage of the resources is
massive.
Our exhibitions work to overcome
those challenges.

Innovative solutions to
technical problems
ULTRA-DYNAMICS seeks out innovative
technical solutions to the problems
facing industry in todays increasingly
competitive business environment. The
company strongly believes in the maxim
that if you cant measure it you cant
control it. Ultra-Dynamics is a supplier
of technologies that provide innovative
solutions for on-line process control
measurement as well as materials handling
solutions.
The ultraMOIST microwave moisture
monitor is based on the industry standard
microwave transmission technique and
provides accurate, non-contact, on-line
moisture measurement of bulk materials
directly on a conveyor belt or in a bin or
chute.
The
MAGNASAT
magnetite
measurement system is available in a
number of versions including bench top,
on-conveyor and in-pipe, for determining
the magnetite content of bulk materials.
densiMAG measures the density of
magnetic slurries directly in pipes. The

system uses a magnetic technique rather


than gamma rays, resulting in a lower
whole of life cost compared to gamma ray
based technologies.
Ultra-Dynamics is an official supplier of
Precia Molens product range. Precia Molen
is a well established supplier of in-motion
weighing equipment and weighbridges.
The Precia Molen product range has
an enviable reputation for quality at
competitive prices.
Ultra-Dynamics also supplies Procon
Engineerings Resometric Beltscale. This
system does not use load cells and is based
on a resometric technique. It has been
widely supplied to applications demanding
the ultimate operational precision and
calibration stability.
Ultra-Dynamics also supplies a range
of materials handling equipment including
bulk bag fillers, bulk bag unloaders, mixers,
blenders, feeders and screw conveyors. The
companys applications expertise extends
to a wide range of materials including
difficult to handle powders.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

49

SPECIAL PROFILE AusRock 2014

Rock conference expands focus


commonly associated with bedded mines.
Presented by West Virginia University
Department of Mining Engineering
professor Keith Heasley, the workshop
will explore recent enhancements within
LaModels algorithms, to accommodate
larger grid sizes with faster automatic grid
generation, subsidence-based strain and
pillar safety factor calculations.

Jane Goldsmith
THIS November the Australian Institute
of Minerals and Metallurgy (AusIMM) and
UNSW Australia will once again join forces
to host the third Australasian Ground
Control in Mining Conference.
Informally dubbed AusRock 2014, the
conference is Australias answer to the
international sectors rock conferences,
such as EuroRock in Europe and SinoRock
in China.
AusRock 2014s host and owner, the School
of Mining Engineering at UNSW Australia
formerly the University of New South Wales
is one of Australias leading research and
teaching universities, specialising in mining
undergraduate and postgraduate education
to support the mining industry.
Event co-host AusIMM was formed in
1893 to promote and protect the industrys
health, while providing support services
to Australias minerals professionals. It
has grown to represent more than 13,500
minerals industry members and is a
collaborative host to many mining-based
conferences across the country.
Conference development
Conference co-chairs and UNSW Australia
associate professors Paul Hagan and
Serkan Saydam said initial inspiration for
AusRock 2014 was to boost health and safety
standards, and improve standard operating
procedures within underground mines.
There was an increasing concern
in Australian mining operations about
improving the stability of underground
mines, Dr Hagan said.
We put together the first conference back
in 2003. The second was held in 2010, and
UNSW has always played host.
The original theme was to try and share
ideas amongst the geotechnical community
about new techniques, and the ways to
improve the efficiency and effectiveness of
underground systems of mining.
However, across the past decade the
event has expanded to include both open cut
and underground operations.
The original event had its main focus
on underground mining; however we
expanded it in the second conference to
include both open cut and underground, and
this conference in 2014 will have a special
emphasis on the latest developments in
design and application including several
case studies, Dr Hagan said.
AusRock always occurs in November, and
UNSW Australia and AusIMM aim to make
it a regular event every three years. The
next conference is scheduled for 2017.
AusRock 2014
AusRock 2014 is aimed at practical mine
site operators, technical support staff,
geotechnical engineers, mining engineers,
consultants and researchers in the field of
mining geomechanics and ground control.
The conference will provide an update to
all mining industry geotechnical personnel
involved in best practice in both Australasia
and overseas, and an information exchange
vehicle between the coal and metalliferous
sectors of the industry, with a focus on new
technologies and developments; industry
needs and mine site problem solving; and
practical case studies, Dr Saydam said.
The conference has grown substantially
since it began in 2010, it hosted about 100
delegates, and we received about 34 papers
for presentation. This year, we have doubled
the submissions to nearly 80 papers, and we
will likely feature about 40 at the conference.
About 180 people are expected to
attend as delegates. We have international

Delegates on the gala cruise at the 2nd Australasian Ground Control in Mining Conference in 2010.

and local delegates, representing mining


companies, consulting companies, academia,
and research institutions.
The event will include four keynote
presentations, a small exhibition, two
professional development workshops, as well
as an opening networking cocktail function
and a gala cruise dinner across Sydney
Harbour to finish.

We have international
and local delegates,
representing mining
companies, consulting
companies, academia,
and research
institutions.
Workshops
Workshop One, Block Cave Mining
Simulation with Rock Failure Process
Analysis (RFPA) code, is scheduled for 4
November, and will explore issues with
rock stability in underground mining.
Many rock engineering problems
involve potential and actual unstable
rock failure, such as rockbursts, coal and

gas outbursts, crack development and


hydraulic fracturing, Dr Hagan said.
Few approaches are capable of
capturing fracture initiation, propagation,
coalescence, and gravity effects; and hence
investigating fracture-induced progressive
failure of rock, a failure process that is
crucial in understanding cave initiation
and propagation in strong rock masses in
cave mining.
Presented by Chinas Dalian University
Rock Instability and Seismicity Research
chair and director Chunan Tang, the
workshop will provide participants
with firsthand training on the newly
developed RFPA numerical code. The
course will demonstrate the codes use and
applications, and its capacity to process
real failure process in rocks, in both 2D
and 3D situations.
The second workshop, Introduction to
LaModel, is also scheduled for 4 November,
and will explore algorithm-based computer
program LaModel and its uses in calculating
displacements and stresses in thin-bedded
deposits, such as coal, salt and potash.
This boundary-element program uses
a laminated overburden model as opposed
to a traditional homogeneous elastic
overburden model, Dr Saydam said.
The laminated overburden model has
been found to provide more realistic stress
and displacement calculations, particularly
with
layered
sedimentary
geology

Participants networking at the 2nd Australasian Ground Control in Mining Expo in 2010.

Keynotes and conference


The 2014 conference will feature study
results from noted geologists and scientists
from across the globe, including Germany,
Sweden, Poland, the US, Canada, China,
Japan and Indonesia.
The conference will feature four keynote
speakers, including UNSW Australia
professor Jim Galvin, who will explore
risk management in coal geotechnical and
mining engineering; University of Toronto
Mining Engineering chair Pierre Lassonde
and Professor John Hadjigeorgiou, who will
discuss rock support system degradation
and performance metrics; China University
of Mines director Professor Manchao He,
who will discuss rock-burst mechanisms
and its control; and US Mine Safety and
Health Administration specialist Dr
Christopher Mark, who will explore his
development technologies for strata control
in underground coal mines.
Into the future
Dr Saydam and Dr Hagan stated that
AusRock 2014 would help improve the
viability and effectiveness of mining
operations, to meet demand as it rose into
the future.
Theres a continual need for mining
operations around the world to meet
the increasing demand for mineral
commodities, Dr Hagan said.
In some ways, the current mining
situation is driving mining operators to
look for better and [the] most cost-effective
methods of ensuring stability of
underground operations.
The role of the university is to come up
with ideas in these bad times to improve
safety as well as reduce cost. Thats why
we organise the conferences to showcase
our research and discuss the problems we
face.

The conference will


provide an update to
all mining industry
geotechnical personnel
involved in best practice
in both Australasia and
overseas.
Dr Saydam emphasised similar
sentiments.
In terms of economics, we are really
driven by commodity prices, he said.
Currently, Australias mining industry
is facing a difficult time, but this is
expected because about every 10 years, the
cycle of the mining industry repeats itself.
Its a volatile environment and the mining
industry needs to be informed about this.
As a university, were not that worried
because we know that the market will
bounce back in the near future.
When it bounces, well be in a good
position all the projects have been defined
already; they are now just waiting for the
commodity prices to increase again.

50

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

SPECIAL PROFILE Mining in the Northern Territory

The Northern Territory: the next frontier


Jane Goldsmith
ONE of Australias major banks has
declared the Northern Territory one of
the strongest economies in financial year
2014, with the region outperforming
its counterparts in four out of eight
key economic indicators, including
economic growth, business investment,
employment and construction work.
According to Commonwealth Banks
July 2014 State of the States report,
the Northern Territorys economic
activity figures in July were almost 36
per cent higher than the normal or
decade-average level of output across
the country. The region also recorded the
second-lowest trend unemployment rate
in the nation at 3.9 per cent; completed
construction work increased 17.5 per
cent in the March quarter; and its
equipment investment increased by 46.3
per cent bucking the trend of almost
all other states and territories.
Mining was one of the most significant
contributors to the Northern Territorys
gross state product in 2014, accounting
for $2.5 billion in revenue and directly
employing more than 4600 people.
Northern Territory Department of
Mines and Energy (DME) chief executive
Scott Perkins said the regions greater
resources industry (including mineral
resources, gas and petroleum) was vital
to the Territorys future development.
The Northern Territorys economy is
probably the best performing economy
of any jurisdiction in Australia, Mr
Perkins said.
Although, were a very small
jurisdiction in terms of population,
and so large projects tend to have a
disproportionate effect.
In terms of revenue, [the resources
industry] produces about 20 per cent of
our local economy.
Indirectly however, there is a very
broad spread through the community
that is dependent, either in the first or

Glencores McArthur River zinc mine, 900km southeast of Darwin.

second hand, on the mining industry.


Department of Mines and Energy
The Northern Territory holds wealth in
a variety of minerals, including some of
Australias largest deposits of uranium,
zinc and lead, bauxite, gold, phosphate
and manganese. It also demonstrates
high potential for emerging commodities
such as copper, iron ore, rare earths,
tungsten, zircon sands and potash.
Significant established projects include

[Image: Glencore]

BHP Billiton subsidiary Groote Eylandt


Mining Company (GEMCO) manganese
open pit; Energy Resources of Australias
Ranger
uranium;
and
Glencores
McArthur River zinc-lead concentrate
project near Borroloola.
Mr Perkins said DME was changing its
approach towards economic management
to maximise healthy growth including
stimulating exploration and investment,
while overseeing greater developments
at established projects.

Were sympathetic towards good,


honest and ethical mining companies
who can contribute to the economy of
the Northern Territory in a sustainable
fashion, he said.
The underlying problem is that, at
the moment, there doesnt appear to be
a great appetite for funding exploration
across the world.
However, we have a change process
going on within [DME] that will see a
very serious shift towards us being an
economic development unit.
In that process, we look forward
to having closer engagement with
the investment community and with
the mining industry, to get the right
companies, building the right mines in
a sustainable fashion in the Northern
Territory.

The Northern
Territorys economy
is probably the best
performing economy
of any jurisdiction in
Australia.

BHP Billitons GEMCO manganese mine, on the island of Groote Eylandt in the Gulf of Carpentaria.

[Image: BHP Billiton]

Challenges
According to DMEs 2013 release Helping
NT Explorers Attract International
Investment, most currently mined
resources within the Territory will
be exhausted by 2030, and the region
otherwise remained fundamentally
under-explored.
Large-scale investment in mining
across the world, but particularly in
Australia investment in mining is just
not what it used to be, Mr Perkins said.
This is a gap within the Northern
Territorys mining economy there isnt
enough exploration and investment

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

51

SPECIAL PROFILE Mining in the Northern Territory


occurring.
The CSIROs Land Tenure in Northern
Australia report released in June 2013
highlighted land access as a primary
barrier to exploration and investment.
While further work is required to
explore the impact of these barriers, it
is important to recognise that a suite
of factors...are influential, the report
stated.
The report defined five main land
access inhibitors in the Northern
Territory including: inconsistent impact
and assessment processes for major
projects (including exploration activity);
a lack of clarity regarding Native Title
interests and agreements; water access
issues;
inadequate
landscape-scale
planning; and uncertainty in foreign
investment regulations.
Despite these issues, Mr Perkins said
ramping up investment, exploration and
mine construction during the current
depressed market was critical.
Now is the time to build because we
will be ready and in position when the
next upswing comes to take advantage
of the more solid commodity prices, he
said.
Traditionally within a boom, the first
half of it is devoted to building to cope
with the volume.
We need to avoid this so that we
are in a position to take advantage of
the market, should it show signs of
recovery.
Initiatives for change
DMEs previous strategic research has
confirmed China, Japan and Korea as
its target markets. As of May 2013, more
than $200 million in Chinese investment
had been secured for the future through
19 deals with Territory explorers. A
total 109 exploration licenses have been
issued for private Chinese ventures.
For many years weve had an
investment attraction role principally
with China, but lately also with Japan
and Korea, Mr Perkins said.
Weve seen quite a lot of success in
that area. Were right in the middle of
changing our approach to that whole
sphere of investment attraction, mining
company attraction, and were currently
in a review of the departmental actions
in regard to that.
CORE program
The Creating Opportunities for Resource
Exploration (CORE) program is a $3.95
million initiative by the Territory
Government aimed at promoting
regional prospectivity to explorers and
investors.
The initiative will be undertaken by
the Northern Territory Geological Survey
and will focus on acquiring geoscience
information to stimulate exploration
(conducting its own exploration projects),
while also providing industry grants for
high-risk exploration and programs.

for Australian mining with its highly


prospective, yet largely unexplored land
areas.
We have the least explored areas in
Australia its a huge advantage coming
into greenfields areas, he said.

This is a gap within


the Northern Territorys
mining economy there
isnt enough exploration
and investment
occurring.

Energy Resources of Australias $220 million brine concentrator opened in 2013.


[Image: Energy Resources of Australia]

Companies will receive up to 50 per


cent of costs (up to $100,000) to conduct
exploration in greenfields areas where
little or no exploration has occurred.
CORE will also support companies
going through the processes of the
granting and maintenance of exploration
licences and mining titles, and provide
increased assistance and advice in
indigenous liaison and land access
issues.
Northern Australia white paper
Northern Territory Chief Minister Adam
Giles formed a strategic partnership with
Queensland and WA Premiers Campbell
Newman and Colin Barnett to promote
the development and implementation
of Australias first Northern Australia
white paper.
The paper, 2030 Vision for Developing
Northern Australia, is expected to
launch in 2015 and will provide guidance
and recommendations to enhance
private investment while identifying
the economic and social infrastructure
needed for long-term growth.
The preliminary report supported the
development of a five-pillar economy,
and focused on mining exports and
manufacturing innovation for project
development.
Advanced
services,
agriculture, education and research
were the other four pillars.
The
recommendations
will
be
implemented across the next two, five, 10
and 20 years, and began with scrapping
Labors damaging mining tax to
promote more business investment.
The
report
also
emphasised
implementing a one-stop-shop across

Meeting technical challenges


WITH a multi-skilled, dedicated group
of technicians, TransAlign ISM is
capable of solving many of the technical
challenges thrown up in the course of
operating mobile and fixed plant in some
of the remotest locations.
The companys technicians have
machined mill trunnions in remote
WA; drilled out four 1m deep seized
keys in a Dorsetner coupling in Giru
in Queensland; and machined precision
dowels in 20MW mill motors at Olympic
Dam in South Australia, the PT Freeport
copper mine in Papua, Indonesia and

in Chile and Sweden. TransAlign ISM


has undertaken portable milling with
high accuracy of machine beds and slew
bearing mounts at the Ranger mine in
the Northern Territory and at Boggabri
in NSW.
TransAlign ISM personnel and
equipment have recently been engaged
at Glencores McArthur River mine
upgrade with specialist machining of
M64 internal threads, milling of motor
bases, laser alignment of the 132KW
cyclone feed pumps and the two 5.7MW
mill drive train.

the three separate jurisdictions (WA,


Queensland and Northern Territory)
for environmental and land access
approvals.
By removing pointless and costly
duplication, large-scale projects that
create jobs will be able to get going
sooner without compromising high
environmental standards, the report
stated.
Future ambitions
Mr Perkins said the Northern Territory
could be viewed as the next frontier

Because of where we are in the cycle,


there are a number of projects that will
be seen as very cheap to get into. We also
currently have a very good regulatory
regime, which is further developing into
a better one.
Mr Perkins said that while it was
tricky to predict the mining market into
the future, the DME was working to
ensure the region was prepared, should
the global economy re-strengthen.
Were in constant contact with the
industry about removing obstacles to
development, he said.
What we try to do is get ourselves
ready for when the inevitable happens
when this part of the cycle ends and
another starts.
Its about getting ready to build;
de-risking
tenement
management;
making sure the investment community
understands the advantages and the
opportunities of the Northern Territory;
as well as making sure we tell our story
to the right people and ensuring we
make it a good story.

52

THE AUSTRALIAN MINING REVIEW

OCTOBER 2014

www.miningoilgas.com.au

SPECIAL PROFILE Rio Tinto Coal Australia

Pragmatic approach weathers the storm


Emma Brown
DESPITE weak market conditions, Rio
Tinto Coal Australia (RTCA) has had a
productive year to date at its Queensland
and NSW mines.
RTCA, a wholly-owned subsidiary
of Rio Tinto, implemented a number
of strategies to boost production and
reduce costs at its five operations
Hail Creek, Kestrel, Bengalla,
Hunter Valley Operations and Mount
Thorley Warkworth to ensure they
remained competitive in the challenging
marketplace.
In May the company sold its 50.1 per
cent share in Queenslands Clermont
mine to GS Coal (a joint venture owned
by Glencore Xstrata and Sumitomo
Corporation) for more than $1 billion, as
part of a strategy to offload its non-core
assets and reshape its portfolio.
The sale of Clermont Mine will allow
us to realise value for our shareholders as
we continue optimising our portfolio, Rio
Tinto chief financial officer Chris Lynch
said.
The sale demonstrated the groups
focus on strengthening its balance sheet
and showed a disciplined approach to its
allocation of capital, he said.
Queensland
A US$2 billion extension at the companys
Kestrel mine resulted in record output of
hard coking coal at the site for the first
half of 2014.
The four-year expansion project took
(continued on page 54)

Rio Tinto Coal Australia has focused on boosting production and cutting costs in the current challenging market.

The US$2 billion expansion of the Kestrel mine took four years to complete.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

SPECIAL PROFILE Rio Tinto Coal Australia

Putting a cap
on fatigue
THE innovative SmartCap fatigue
monitoring technology is taking off around
the world, with major mining companies
implementing the solution across numerous
sites. EdanSafe, through the SmartCap
system, provides a complete operator fatigue
monitoring solution.
Twelve months after first going to
market, the SmartCap system is rapidly
being taken up within the mining industry,
EdanSafe chief executive Paul Butler said.
Mining
companies
currently
implementing the technology include Rio
Tinto, along with several others in mining
and mining services.
SmartCap measures fatigue directly by
monitoring brain activity, rather than by
inferring fatigue based on other symptoms
such as eye closure or driver behaviour. This
results in improved accuracy and reduced
false alarms.
An independent validation of SmartCap
was carried out at Monash University and
Austin Hospitals Institute of Breathing
and Sleep, which showed a 94.7 per cent
sensitivity in detecting fatigue impairment.
The key strength of the SmartCap
system is that it is predictive in nature by
alerting the operator before a micro-sleep
occurs, averting dangerous fatigue events,
Mr Butler said.
This system provides a significant
breakthrough in increasing safety for
mine vehicle operators. Without effective
monitoring, mining companies are not
managing fatigue risk as well as they could
be.
Further information is available on the
SmartCap website.

53

54

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

SPECIAL PROFILE Rio Tinto Coal Australia

Pragmatic approach weathers the storm


(continued from page 52)

more than six million man hours to build


and more than 3400t of steel to construct,
and has made Kestrel one of the most
advanced and sophisticated underground
coking coal operations in the country.
The extension comprised a new
longwall, an overland conveyor and an
upgrade the existing coal handling and
preparation plant, which allowed a new
series of underground panels to be mined
to the south of the existing operation. The
project also added 20 years to Kestrels
life and increased production capacity
to 6 million tonnes per annum of hard
coking coal.
However,
in
September
RTCA
announced about 100 Kestrel jobs would
go to reduce operating costs, following the
confirmation of about 100 job cuts at Hail
Creek in May.
We have worked to significantly
reduce costs and improve productivity
across all of Rio Tintos Australian coal
mines, but still more needs to be done, a
Rio Tinto spokesperson said.
RTCA manages the Hail Creek
operation on behalf of its joint venture
partners, Queensland Coal (82 per
cent), Nippon Steel Australia (8 per
cent), Marubeni Coal (6.67 per cent) and
Sumisho Coal Development (3.33 per
cent). The mine produced 2.528mt of hard
coking coal and 664,000t of thermal coal
in the first half of this year.

We have worked to
significantly reduce
costs and improve
productivity across
all of Rio Tintos
Australian coal
mines, but still more
needs to be done.
NSW
RTCA is seeking planning approvals
to extend mining at its Mount Thorley
Warkworth mine to 2035, on the back of
forecasted growth in coal demand.
The Singleton operation is managed
by RTCA subsidiary Coal & Allied and
comprises two adjacent open cut mines,
which supply international and domestic
markets with semi-soft coking coal and
thermal coal. If approved, the extension
is expected to secure jobs for around 1300
people.
Rio Tinto managing director Chris
Salisbury said it was critical for the
project to secure new planning approvals
to remain viable.
Our current planning approvals
will only allow Mt Thorley Warkworth
to maintain existing production and
employment levels until the end of 2015,
Mr Salisbury said.
Recent research has shown an
increase in community support for
continuing operations at Mount Thorley
Warkworth. The research also found
people are concerned about the negative
impacts for the Hunter Valley economy
if these planning applications are not
approved.
The company has worked towards the
mines expansion for nearly five years.

Previous attempts have been rejected


by the Land and Environment Court
and Supreme Court, which concluded
the mine would be damaging to the
community. A new planning application
was lodged with the NSW Government in
June this year, coinciding with a six-week
public exhibition period, which finished
on 6 August. More than 2000 people
submitted during this time, with about
90 per cent in support of the extension.
RTCA is also attempting to extend its
lease at Bengalla, west of Muswellbrook
in NSW.
The company currently has approval

to mine at the site until 2017, but has


applied to continue mining for another 21
years. The site exports around 7mtpa of
thermal coal and 664,000t of thermal coal
was produced in the first half of 2014.
The
companys
Hunter
Valley
Operations (HVO), 24km northwest of
Singleton, achieved record production of
4.532mt of thermal coal in the first half of
this year a 6 per cent increase on first
half 2013.
HVO produces up to 12mtpa of thermal
and semi-soft coking coal for export.
The site began in 1968 as two separate
entities, but was merged by Coal & Allied

The Kestrel expansion project increased the mines production capacity to 6mtpa of hard coking coal.

Rio Tinto Coal Australia recently sold its 51 per cent stake in the Clermont coal mine.

in 2000. In 2001, Lemington mine was


acquired and merged into the operations.
All of RTCAs operations work closely
with their surrounding communities
and are committed to sustainable
development. It currently operates six
community development funds and
each fund was established to contribute
to projects that address educational,
economic and social needs of local
communities. Since its inception, RTCA
has contributed more than $22 million
back into the communities in which it
operates. Each fund determines how the
resources will be used.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

55

SPECIAL PROFILE Dampier Salt

Seasoned producer primes for demand


Jane Goldsmith
IN a landscape characterised by red oxide
and dust, the white salt mounds at Dampier
Salt Limited (DSL) have become one of the
Pilbaras most distinctive landmarks.
Owned by Rio Tinto (68 per cent), Japanese
integrated trading and investment business
Marubeni Corporation (22 per cent) and
Japanese energy producer Sojitz (10 per cent),
DSL is the worlds largest producer of solar
salt, and its 9000 hectare area comprises the
largest evaporative salt fields in the Southern
Hemisphere. The site contains three salt field
sites Dampier, Port Hedland and Lake
MacLeod with accompanying concentration
ponds and port ship-loading facilities.
DSLs business is based in Perth, with
its sales, marketing and logistics activities
concentrated in Singapore. The companys salt
is exported to Japan, Taiwan, the Philippines,
Korea and several destinations across Europe
for chemical and industrial uses, including
the manufacture of plastics, glass, detergents
and soaps, textiles, industrial chemicals; food
processing and preservation; and de-icing
roads.
Dampier Salt
Established in 1967, Dampier is DSLs largest
and oldest salt operation. Its first shipment,
containing 19,000t of salt, left for Japan
in April 1972. Today, Dampiers 52 square
kilometre concentration ponds can produce
up to 4.2 million tonnes per annum of salt at
capacity.
The Lake MacLeod site was acquired in
1978 and, of the companys three sites, has
the greatest potential for expansion. Lake
MacLeod has a current production capacity
of 2.9mtpa of salt, and also produces up to
1.5mtpa of gypsum.
The Port Hedland operation was acquired
in 2001 and has a current production capacity
of 3.2mtpa of salt.
Mining operations
Mining activity at DSL is similar to mineral
agriculture. At Dampier and Port Hedland,
high-tide sea water is pumped into the
facilities and through a series of ponds. At
Lake MacLeod, water is pumped to the surface

Dampier Salt exports to Asia, Europe, Africa, North America and the Middle East.

from a naturally occurring underground salt


lake.
At all operations, evaporation occurs
naturally from the surface. As salt brine
is exposed to wind and the sun, it becomes
progressively more concentrated, and
gradually grows and refines the salt product.
When the brine becomes saturated with
salt, it is pumped into crystallising ponds
(crystallisers) where further evaporation
causes pure salt to crystallise as a solid deposit.
Bitterns the remaining brine after most of

the salt has crystallised is then returned to


the ocean.
Approximately once a year, each crystalliser
is harvested by a mechanical harvester after
20cm to 40cm of salt has been deposited. The
salt is then washed to remove impurities and
stockpiled for shipment. Dedicated stockpile
and ship-loading facilities are hosted at
Mistaken Island, near Dampier, and at Port
Hedland port. It takes about 60mt of sea water
to produce 1mt of salt.
The entire process, from the initial

[All images: Dampier Salt]

saltwater intake until the final product


harvesting, takes about 18 months.
Global market movements
The global salt market softened 4.6 per cent to
277mt across 2012 due to weak demand from
de-icing and chloralkali markets.
However, demand for the substance is
expected to gain strength following firm trading
in 2013. According to mineral consulting firm
Roskill, global salt production reached 286mt
last year in response to recovering demand
from the de-icing market.
Over 110 countries produce salt, but the
majority of production originates from just
seven, Roskill stated.
China, the USA and India together
accounted for 46 per cent of total world supply
in 2013.

The global salt


market is expected
to rise about 2.9 per
cent to 327mt in the
next financial year,
for a $13.4 billion
total trade value.
[However] during the last 10 years both
the North American and European markets
have seen a decline in domestic production.
Regional outputs fluctuate annually...
dependent upon winter weather conditions
influencing the demand for de-icing salt, which
accounts for up to 43 per cent of consumption
in the USA and up to 30 per cent in Europe.
The salt market is expected to rise about
Harvesting in progress at Lake MacLeod.

(continued on page 56)

56

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

SPECIAL PROFILE Dampier Salt

Tower specialists well


equipped for mining
WA-based
Air
Communications
specialises in wireless communications
and tower infrastructure in the
mining and corporate sectors, with a
strong emphasis on health, safety and
environment (HSE) and high-quality
work.
Some of Australias leading mining
companies have used Air Communications
for their site communication needs, as
well as for tower and aviation warning
light installation.
Established in 1996, the company
has developed the skills and knowledge
to design unique solutions for every
situation, including network design,
equipment supply, tower construction
and rigging, all backed up with 24-hour
after-sales service and maintenance

support.
The construction and installation
of communication systems is a highly
skilled and demanding task, which
Air Communications handles from the
ground up with a workforce that is
HSE-compliant for Australian mine sites.
Air Communications also specialises
in tower foundation formwork, tower
audits and certification, Ladsaf fall arrest
certification, microwave installation
and commissioning, DC power system
and tower aviation warning lights, RF
feeder installation and certification,
ground (earth) installation and testing,
wireless MESH and WiMAX design
and installations, and temporary solar
powered trailers for communication and
traffic control.

Joint venture creating


various opportunities
ASX-listed
Viento
Group
and
Banjyma and Kariyarra language
group Traditional Owners Koodaideri
Contracting Services have come together
as KVG Joint Venture to work on
construction and maintenance projects
in WAs northwest.
Koodaideri has experience providing
dry and wet civil and construction
equipment to major resources companies
while Viento Group offers a broad
range of services, from contract and
project management, plant hire and
maintenance to electrical and pipeline
solutions, for the mining and resources
sector.
Last year KVG was engaged under
a $5.1 million contract to carry out
repairs on Rio Tinto Dampier Salts Port
Hedland intake pond embankments and
levees in the wake of tropical cyclone
Rusty.
The Category 4 cyclone sat close to the

operations pre-concentration ponds for


about 30 hours, eroding and breaching
levees.
KVG was contracted to remove the
existing rock armour, rebuild and
re-compact the embankment batter,
place new geofabric material, re-armour
the levees and lay a roadbase material
finish.
Commencing in August, the majority
of the works had to be complete before
the start of cyclone season in November.
KVG completed the work on time,
with a team of up to 45 personnel
working on site with more than 30 pieces
of construction plant.
KVG was also recently contracted
by Rio Tinto Iron Ore at its Nammuldi
below water table operations to carry
out road maintenance and miscellaneous
earthworks and by Fortescue Metals
Group at its Cloudbreak mine for culvert
installation.

Once washed, the salt is stockpiled or readied for direct shipping.

Seasoned producer
primes for demand
(continued from page 55)

2.9 per cent to 327mt in the next financial


year, for a $13.4 billion total trade value.
The World Salt Industry Study with
Forecasts for 2015 & 2020 report by
international business research company
Freedonia stated that growth in chemical
manufacturing output would continue to
fuel the majority of demand between 2010
and 2015, as chemical production in China
continued to expand.
Salt suppliers will also benefit from the
shale gas drilling boom currently underway
in North America, which will boost chloralkali
output, the Freedonia report stated.
Shipments of salt by Chinese producers
are expected to climb at a 6.5 per cent annual
pace through 2015 to 96 million metric tons,
about the same rate as demand growth, but
not fast enough to prevent a further widening
of the countrys trade deficit in salt.
Domestic manufacturers will benefit
from robust local sales conditions, leading to
further expansion in industry output.
Into the future
DSLs results in FY2014 aligned with the
wider markets results; in the second quarter
2014, the operation produced 1.78mt of
salt; a 7 per cent increase from the previous
corresponding period in 2013.
According to Rio Tintos 2014 first half

production results, DSLs total yearly output


was 3.37mt of salt 4 per cent higher than
the same period of 2013 reportedly due
to productivity improvements and better
weather conditions.
DSL managing director Simon Trott said
the operations dedication to environmental
and social health across the Pilbara ensured
the companys good standing into the future.
The cornerstones of DSLs operating
philosophy are environmental rigour, social
responsibility and economic contribution, he
said.
As a company we have celebrated more
than 40 years of salt producing operations in
the Pilbara and Gascoyne region.
We are a dedicated, passionate
business continually seeking to improve
our performance through innovation,
collaboration and working smarter.

The cornerstones
of DSLs operating
philosophy are
environmental rigour,
social responsibility and
economic contribution.

A multi-purpose mineral
Sodium chloride is well known for its use in cooking, however only about 6 per cent of
manufactured salt is actually consumed. Salt is mainly used in industry and agriculture,
including de-icing highways within cold climates (8 per cent); as a natural appetite
control mechanism for cattle (6 per cent); and the manufacture of polyvinyl chloride (PVC
polymers), plastics and paper pulp, from its chemical products caustic soda and chlorine.
Soap, glycerine, synthetic rubber and the ceramics industry also require salt.
China and the US dominate world salt production, producing 40 per cent of global
output, although Austria, Pakistan and Canada also produce substantial quantities. It is
one of the worlds oldest industries, and is today generated via three primary extraction
processes.
Rock salt produces industrial-quality product, and is mined from underground deposits
by drilling and blasting dried crystal formations from ancient seabeds.
Solar salt is extracted via natural evaporation of seawater or brine in large condenser
concentration ponds under sunlight, and is similarly of industrial quality (with impurities).
Evaporated salt is manufactured using a controlled system of pans which boil water
away from salt brine. The resulting product is fine, with few impurities, and is most
commonly used for human consumption.
A pivot access road at Rio Tinto Iron Ores Nammuldi below water table operations.

58

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

COMPANIES GEARING UP

Higher haul speeds and


industry leading availability
A new AC-drive version of Komatsu
Australias 200 US ton 730E-8 mine truck
provides higher haul speeds and simpler
maintenance requirements resulting in
higher productivity, reduced downtime and
industry-leading availability.

With a true payload of 200 US tons (181


tonnes), the 730E-8 is powered by a Tier 4
compliant 1492 kW engine, and is designed
and manufactured to the same engineering
principles as Komatsus large Ultra-Class
mining trucks.

Komatsu Australias new industry-leading 200 US ton 730E-8 mine truck.

Komatsu Australia national product


manager mining Michael Hall said that
not only was its AC drive system lighter
than either mechanical or DC transmission
systems, it provided faster acceleration and
higher top speeds, while delivering more
reliable performance and easier maintenance.
Top speed of the 730E-8 is 64km per hour
15 per cent higher than its predecessor
plus it can handle effective gradients up to 12
per cent for increased productivity.
In addition, the AC control system offers
independent control of the rear wheel
motors, giving outstanding traction in wet
and slippery conditions, reducing tyre wear
and improving operator confidence.
Its GE35B AC-drive wheel motors,
designed collaboratively between Komatsu
and GE Mining, have no brushes
eliminating flashover and a higher thermal
capacity.
Mr Hall said the increased reliability of
the AC powertrain, and easier maintenance,
translated into industry-leading availability
for the 730E-8.
Our 730E DC truck has delivered 90
to 94 per cent availability to mines around
the world, over hundreds of thousands of
operating hours, he said.
In comparison, the industry average for
this class of truck is well down in the 80 per
cent range.
That additional availability which we
expect to be even higher with the AC-drive
730E-8 translates into an additional 36
weeks, or nine months, per truck over a
10-year operating life.

Spreader beams expand experts range


MACHINERY expert Kennards Hire Lift
& Shift has again expanded its product
offerings with two new modular 300t
spreader beams.
The units are 6600kg when fully
assembled (excluding shackles or rigging
gear), and 26m in maximum width.
These spreader beams are the newest
addition to the extensive range of bars
and beams available from Kennards Hire
Lift & Shift, which now spans from 250kg
to 300t, Kennards Hire Lift & Shift
general manager Andrew Lambert said.
Mr Lambert said Kennards Hire
Lift & Shift offered two spreader beam
units one in WA, and the other in
Queensland to maximise client access
and convenience.
The units are ideally suited to projects
across the mining, oil and gas industry,
as well as major civil construction
and infrastructure developments and
shipping ports, he said.
Having one unit in WA and the other
in Queensland enables us to send them
to one of our nine specialist branches
throughout Australia and make them
available at very short notice.
The 300t spreader beam is known as
a highly versatile, multi-piece modular
bar that comprises sections varying from
500mm to 6m.
Its this flexibility that makes the
unit well-suited to a range of lifting
solutions and industries, Mr Lambert
said.
Adding the 300t spreader beam to our
current range was a natural progression.
There are a number of major projects
being undertaken in WA and the

Kennards Hire Lift & Shifts new modular 300t spreader beams are ideally suited to mining, oil and gas, civil construction and infrastructure projects.

Northern Territory, and we have already


received a number of enquiries regarding
their availability.
[The 300t spreader beam] offers a

cost-effective option for customers who


require additional lifting capacity on
a project site for only a short period; it
negates the large capital expenditure

as well as the continuing cost of


warehousing and certification a company
would need to outlay for a single piece of
equipment not being utilised.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

COMPANIES GEARING UP

Strong industrial storage


and safety assessments
MEETING compliance standards is a
priority for any workplace, but when staff
and the environment are at risk the stakes
are particularly high.
Storemasta specialises in the storage
of dangerous goods, to ensure the highest
protection of employees and their work
areas.
Recognising a need for practical
compliance solutions, Storemasta recently
launched a new website allowing clients
to conduct their own safety standard
compliance audits, and to provide practical
worksite safety solutions. Storemastas
website is Australian-made with exclusive

features developed with client safety in


mind.
Storemastas range of dangerous
goods storage units are designed and
manufactured in Australia to comply with
all Australian safety standards. The range
offers products to service industries across
the Australasian region.
Storemasta also offers onsite safety
compliance reviews assessing various
methods of dangerous goods storage.
Individual business needs are then taken
into account and recommendations are
made for the most cost-effective solutions
to ensure regulatory compliance.

59

60

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

COMPANIES GEARING UP

High quality
service just the
tip of the iceberg
WITH a commitment to customer satisfaction
its number one priority, HK Calibrations
offers expert instrument calibration and repair
services for all instrument types, including
test and measurement instruments.
HK Calibrations recently moved its
Perth premises to a new facility in Bibra
Lake, providing a single, centralised point of
contact for WA customers who can have their
instruments calibrated in one local place.
Along with promoting the WA economy, the
enhanced facility in Bibra Lake has allowed
HK Calibrations to maintain its commitment
to unmatched turnaround times.
HK Calibrations offers a full spectrum
of services for a range of equipment
including electronic and electrical, pressure
gauges, hard gauges, flow measurement,
telecommunication,
weighing
and
temperature, gas monitoring, dumpy levels,
surveying equipment, and occupational health
and safety equipment.
All work performed by HK Calibrations
conforms with ISO/IEC 17025 2005 standards
the premier ISO standard governing
the operation of all certified laboratories.
This includes reporting uncertainties of
measurement for each calibration, as required
by this standard.
The companys average turnaround time is
48 hours, which is an added commitment to its
level of service.
HK Calibrations business management
system is maintained to SAI Global ISO
9001:2000 standards, for added assurance
of quality service for every instrument
calibration.

Ergonomic seats improving


posture and spinal health
RECENT occupational health and safety
studies have found that about 77 per cent
of Australias total workforce spends
most of the working day sitting down
and about 74 per cent of these workers
complain of back and musculoskeletal
discomfort at least three times a week.
The Australian Bureau of Statistics
has reported that 1 in 3 Australians will
suffer from occupational back pain at
some point in their working life.
Ergonomic
equipment
producer
Bambach has designed a specialist
working chair to improve users daily
posture and minimise spinal discomfort.
According to Bambach, the Bambach
Saddle Seat enables users to maintain
optimal spinal function and posture,
improving overall wellbeing by virtually
eliminating back, neck and shoulder
pain;
improving
circulation
and
breathing; engaging core muscles; and
preventing the typical hunched seated
position.
Due to the unique design, the
Bambach Saddle Seat supports the
pelvis in its natural position, allowing
users to maintain proper upright spinal
curvature.
The Bambach is patented into the
unique saddle seat shape, designed
from extensive research. It has been
tested to Australian standards and is
recommended by health professionals

worldwide.
It is the only saddle seat available
in four seat sizes, to maximise comfort
across
individual
variations
in
height, body shape, gender and work

Award Winning Solutions


P: 08 9759 1977
F: 08 9759 1820

environment.
All seats are Australian made
and come with a 30-day money back
guarantee and five-year warranty.

E: info@pindariwa.com
W: www.pindariwa.com

Pindari WA awarded offshore contract with Woodside


Pindari WA Pty Ltd (Pindari) has been
awarded a contract to supply electrical
inspection and maintenance services on the
North West Shelf Projects offshore oil and gas
production facilities in WA. The contract will
commence in September 2014.
Pindari has provided services to Woodside
at the Karratha Gas Plant for over two years,
assisting with refurbishments, fit outs and
general maintenance, Pindari executive
director Natalie Venosi said.
We have proven our capabilities and
pioneered a relationship with Woodside
thats led to an exciting Aboriginal business
engagement initiative, resulting in Pindaris
first offshore opportunity.
Established in 1997 as an electrical
contracting business, Pindari has continued to
diversify its client base from blue chip mining
companies Rio Tinto and BHP Billiton to Tier
1 construction companies and oil and gas
operators like Woodside.
Employing approximately 50 workers with
a stable 35 per cent indigenous representation,
Pindari has excellent retention of indigenous
employees
and
an
award-winning
performance history.
Pindari is a Pilbara-based Aboriginal
business
currently
offering
proven
capabilities in accommodation installation
and maintenance, small construction projects,
refurbishment programs, building and minor
works packages and electrical and facilities
maintenance across all disciplines.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

61

COMPANIES GEARING UP

Impact Roller ideal for waste dump capping layers


FOR close to 40 years, Broons has been
using its specialist equipment to fulfil
the compaction needs of mining clients
around the globe.
Whether improving haul truck tyre
life, offering deep compaction to reduce
differential settlement under structures,
or compacting capping layers on waste
dumps the Broons Square Impact
Roller has no equal in mining applications.
For more than a decade Broons has
incorporated its innovative BH-1950MS
Square Impact Roller into the continuous
improvement process at mine sites,
rubbilising rock on tip heads and pit
floors to reduce the risk of tyre damage.
Although the Impact Roller is a proven
performer when it comes to minimising
tyre damage on mine sites, its primary
use has always been deep compaction.
Proof rolling sites for workshops, camps,
processing plants, stockpiles and drag
line erection pads are several of the main
applications.
The Impact Roller compacts capping
layers on waste dumps efficiently and
cost effectively.
Capping layers are typically used to
reduce the likelihood of coal waste or
overburden spontaneously combusting,
or the infiltration of surface water
through mine waste that can lead to
environmental problems with drainage
and runoff.
Water infiltration and the convective
transport of oxygen into a dump can be
reduced to very low levels by constructing
a low permeability compacted cover

The Broons Square Impact Roller has no equal in mining applications.

over the dump. Trials and ongoing use


have shown that by placing about 1m of
inert material over the waste and then

compacting with Broons Square Impact


Roller will pay dividends.
Broons can tailor a package to suit

individual mines involving wet or dry


hire of their unique Australian designed
and made equipment.

62

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

COMPANIES GEARING UP
Opinion & Analysis

Setting standards for the Australian anchor industry


offer software packages to simplify the
design procedure.

Australian Engineered Fasteners


and Anchors Council
National Technical Manager
Dr David Heath
THE Australian Engineered Fasteners and
Anchors Council (AEFAC) is a not-for-profit
consortium formed in 2012 to lift quality
and safety standards in the Australian
fastener industry.
Prior to the formation of AEFAC,
the anchor industry was self-regulated,
lacked consistency in product testing and
evaluation, and there were no Australian
design standards or guidelines with the one
exception being AS 3850, covering brace
inserts for temporary bracing of precast
panels.
AEFAC formed as a voice for the
industry, motivated by the need to lift
quality and safety standards to prevent
failures and poor practice which were being
observed all too frequently.
The Founding Members include Ancon
Building Products, Hobson Engineering
Co., Hilti (Aust), ITW Construction
Systems, Powers Fasteners Australasia,
Swinburne University of Technology and
Wrth Australia.
In 2014 Allthread Industries and
Simpson Strong-Tie Australia joined
AEFAC as Supporting Members.
AEFAC is based at Swinburne
University of Technology where it has
access to world-class test facilities for
fasteners and is serving the Australian
construction industry by developing:
Standards for the selection, specification
and application of anchors and fasteners
Installer accreditation scheme
to safeguard the quality of anchor
installation
Standardised specification and
certification of products
Research and development programmes
to advance the fastener industry
AEFACs portfolio covers safety-critical
anchors for structural and non-structural
applications, including cast-in (channel
and headed insert) and post-installed
(mechanical and chemical) anchors. The
failure of such anchors may endanger life or
have considerable economic consequences.
Prequalification
Sophisticated testing and assessment
procedures have been in place for more
than a decade in Europe and the US.
AEFAC has endorsed the European
platform for adoption in Australia which
covers products that have been awarded a
European Technical Approval/Assessment
(ETA).
The Guidelines for European
Technical Approvals (ETAG) are the basis
for testing and assessing products for the
awarding of an ETA and are published by
the European Organisation for Technical

Assessment (EOTA).
ETAG provides rigorous test regimes
addressing
product
manufacture,
installation and in service performance.
An ETA is awarded with one of 12
different options covering different types of
applications such as cracked/non-cracked
concrete, strength of concrete, edge distance
and spacing, simplified/comprehensive
design models, traceability and installation
requirements. Durability, temperature,
exposure to fire, seismic performance,
sustained tension loading and repeated/
variable loading may also be assessed.

AEFAC formed as a
voice for the industry,
motivated by the need
to lift quality and safety
standards to prevent
failures and poor
practice which were
being observed all too
frequently.
Design guidelines
Complete and accurate specification is
imperative. There are numerous national
and international examples of failures
where poor product specification has
contributed to the loss of lives.

References in product specification such


as equivalent product or similar product
are unacceptable and dangerous.
In
Australia,
engineers
have
traditionally relied on printed tables
containing design capacities for limited
applications, and anchoring technology has
been absent from the syllabus in tertiary
education.
While sophisticated design standards in
Australia cover steel members and concrete
components, there are no design guidelines
for their connection.
The Concrete Capacity (CC) Method is
the design model that design standards
throughout the world are based upon. The
CC Method is adopted in the European
design guidelines, which have been found
by AEFAC to be the most appropriate for
Australian practice. This endorsement
aligns with the recommendations of the
Australian
Technical
Infrastructure
Committee (ATIC).
Products that have been awarded an
ETA are a prerequisite for these design
guidelines. The design and selection of a
suitable anchor requires consideration of
all possible failure modes in tension (steel
failure, pull-out, concrete cone, blow-out),
shear (edge, pry-out) and combined tension
and shear loading. These assessments are
not currently available in any Australian
standard or code of practice.
The
investment required to properly design an
anchor system is easily justified through
greater confidence and safety, as well as
improvements in economy for large scale
projects. Given the complexity of anchor
design, many reputable manufacturers

Installation
Many anchors are sensitive to installation,
and a product with an ETA is not exempt
from poor installation practice. The best
performing anchor is limited by the quality
of its installation.
Excellent general
guidance on the selection and installation
of anchors is provided in British Standard
8539:2012 Code of practice for the selection
and installation of post-installed anchors
in concrete and masonry.
Professions in other areas of the
construction industry mandate suitably
trained and qualified personnel such
as welders to install safety-critical
components. The anchor industry has no
such requirement yet the consequences of
failure are no less. The AEFAC installer
accreditation program has been developed
to improve installation of chemical
anchors, an area where poor installation
is frequently observed. This program is
closely based on the ACI-CRSI Adhesive
Anchor Installer Certification Program
that was introduced in the US in 2011.
Installers accredited through the program
will have demonstrated best-practice
through understanding manufacturers
installation instructions and executing the
installation as directed. Correct selection,
assembly and operation of installation
equipment, adequate hole cleaning,
correct mixing technique, correct chemical
injection technique to avoid air voids and
correct technique for anchor rod insertion
must all be demonstrated.
The installer must also be able to assess
ambient conditions, protect the anchor
from disturbance during curing, correctly
torque the anchor and understand when
additional guidance is required from a
supervisor/design engineer.
The examination will comprise a
written component comprising multiple
choice questions and a practical component
covering vertical down and blind overhead
installation.
Further information
AEFAC is setting quality and safety
standards and promoting innovation in
the fastener industry. Through various
forums such as building standards and
codes, technical publications and education
events, AEFAC is raising the profile of best
practice for the anchor industry. Correct
product selection, design and installation
ensure the product performs as intended
and ensures the safety of the project.
Technical advice on all of these topics is
freely available on the AEFAC website
(www.aefac.org.au), as well as links to
key resources and the ability to sign up
for alerts on newly released material and
upcoming events.
For further information contact
AEFACs National Technical Manager, Dr
David Heath at aefac@aefac.org.au.

Stainless steel vessels, equipment and services for mining


ESTABLISHED in 1963, A&G Engineering &
Mining Supplies has five decades experience
producing high-quality stainless steel vessels
and equipment. Today, it is the preferred
tank manufacturer for many industries
across Australia.
The A&G team is involved in the design,
manufacture and installation of an extensive
range of stainless steel vessels and equipment

for all major industries including mining,


heavy industry, dairy, brewing and wine.
Growing demand for A&G products has
led to its further expansion into the mining
sector. A&G now focuses on supplying the
industry with a broad range of products,
including stainless steel tanks, valving,
pipe work systems, carbon screens, hoppers,
screening products, storage bins, catwalk and

stair-tower structures, along with a full and


comprehensive supply of general mining and
industrial equipment.
The company can also provide scheduled
equipment maintenance and equipment
programs, drafting and design, transport
and lifting, equipment relocations, site
re-engineering, precision machining and
cutting, general fabrication and electrical

solutions in its comprehensive range of


services.
The quality and integrity of A&Gs
products and services has been recognised
at the highest levels. The company is a past
winner of the Welding Technology Institute
of Australia Company of the Year award and
the Australian Museums Eureka Prize for
Industry.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

COMPANIES GEARING UP

New online cyanide


analyser for gold milling
A new online cyanide analyser for gold
milling applications, the CNSolution 9310,
launched by US-based Xylems OI Analytical
is designed to facilitate significant cost
savings for mill operators.
Most gold occurs at low concentrations
in ores, less than 10 grams per tonne (0.001
per cent). Hydrometallurgical extraction
using cyanide is the only economically
viable method of recovering gold from
such low grade ore. Leaching solutions
typically contain cyanide in concentrations
from 50 parts per million to 2000ppm, and
purchasing, transporting, handling and
detoxifying cyanide is a major operating

expense for gold mills.


OI Analyticals CNSolution 9310 online
cyanide analyser measures available
cyanide in precious metal leaching per
US EPA Method OIA-1677 and ASTM D
6888-09. The gas diffusion amperometry
technique in these methods is proven to
be free of interferences from copper and
metallic sulphides, providing more accurate
measurement of the available cyanide
concentration. The CNSolution 9310
responds quantitatively to cyanide as well
as zinc, copper, cadmium, and silver cyanide
complexes across the entire instrument
calibration and measurement range of

0.2ppm to 2000ppm.
The superior accuracy of the CNSolution
9310 facilitates tighter control of the cyanide
concentration in the leaching process and
oxidising agent usage in the detoxification
process, significantly reducing the amount
of cyanide needed. A 10 per cent decrease
in cyanide usage can easily translate into
savings of hundreds of thousands of dollars
per year in the leaching and detoxification
costs for a milling operation.
OI Analytical also has an Available CN
model (WAD) which will be of particular
interest to the environmental departments
of gold mining operations.

Exclusive Australian distributor for top US ice machines


FOR the past 35 years, US company
Manitowoc has developed and manufactured
quality ice machines for purchase around
the world. The brand of choice for many
well respected Australian companies,
Manitowocs ice machine technology is
renowned for its ability to work in harsh and
exposed environments.
In 2013, Manitowoc Ice won Foodservice
Equipment and Supplies magazines
prestigious Overall Best in Class Award for
Ice Makers, for the 13th consecutive year.
The reliable and durable Manitowoc
ice machines feature a strong aesthetic
and cutting edge ice-making technology.
Stainless steel and galvanised panels make

the machines easy to use and clean, with


excellent corrosion resistance.
Manitowoc has a suitable model for every
area of Australias mining industry, with
machines capable of producing up to 1300kg
of ice per day.
To cater for strict sanitary requirements,
Manitowoc has a range of automatic fill,
floor-standing ice dispensers. The high
volume dispensers feature patented push
for ice or pedal dispenser mechanisms and
paddlewheel ice delivery technology.
The Manitowoc Ice team is committed
to providing products that not only satisfy
customer needs but also add value to the
equipment investment, working to effectively

reduce costs and increase energy efficiency.


AJ Baker & Sons is the exclusive
Australian distributor of Manitowoc ice
machines, and has sold them since 1976. AJ
Baker & Sons is a family owned company
based in Perth, with branches in Bunbury,
Brisbane, Sydney, Melbourne and Adelaide.
The market leading company has been
involved in the commercial refrigeration
industry in Australia since 1931, and
recently celebrated its 82nd birthday.
AJ Baker & Sons is also the exclusive
Australian distributor of Kloppenberg ice
storage and dispenser systems, which are
ideal for use with Manitowocs range of
ice machines.

63

64

THE AUSTRALIAN MINING REVIEW

OCTOBER 2014

www.miningoilgas.com.au

COMPANIES GEARING UP

Specialist facility a one-stop shop


ONE of the countrys leading distributors
of electrical and data components and
equipment has turned its attention to the
mining and industrial sectors.
MM Electrical Merchandising (MMEM),
an offshoot of national group Metal
Manufacturers Limited, supplies more
than 200,000 different electrical products to
customers across a wide range of industries
in every state and territory.
In 2011, MMEM chose Bibra Lake as
the location for its first specialist operation
in WA to directly service the mining and
industrial sectors.
The Bibra Lake facility features two
warehouses with more than 2000 square
metres of storage space to cater for
individual customers needs, as well as
a 5t high-reach fork truck and facilities
for handling large cable requirements,
including cable reeling up to 2t.
MMEMs mining and industrial division
prides itself on its relationships with some
of the resources sectors biggest companies,
including BHP Billiton, Fortescue Metals
Group, Rio Tinto, Newmont Mining and
Argyle Diamonds.
The company can competitively source
and supply virtually any electrical
product, offering a one-stop shop option for
customers from more than 4000 suppliers.
Through years of proven service
experience and the ability to tailor
solutions to the differing needs of clients,
MMEM can provide what its customers
need solutions to their supply problems.

MMEMs Bibra Lake facility specialises in supplying the mining industry.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

65

Data Management

Scalable solutions for consistent, rapid data


EXPEDIOS data management solutions
are suitable for all stages of company
growth and all phases of exploration and
mining projects.
The organisation is well-established
with a proven track record of success in
the field of data management services.
The premium Expedio end-to-end
solution offers data model set-up
and
configuration,
hosting,
data
management, reporting, plans and
sections.
Expedio senior consultant Lara
Groves said the companys data
management solution costs a fraction of
the actual price of generating the data.
Typically, it costs less than one per
cent of the exploration spend to build
and maintain the database, Ms Groves
said.
Expedio is powered by Ocris, an
integrated software suite for data
collection and management with a
common and easy-to-use interface.
This ensures that your data is coming
out ready to go, with no wasted time or
money having to recheck or alter data in
your modelling software.
Expedio staff offer free demonstrations
of their system. Call or email the
company for more details.

An operator using Ocris software in the field.

66

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

Employee Mental Health & Wellbeing


Opinion & Analysis

Maintaining a happy and healthy workforce


Chris Foley
GLENN* considers himself lucky. In his
late 30s, he is employed with a major
mining company on a fly in, fly out basis.
As a process operator, he has been working
for the same employer for two years, and
while the roster means he is removed from
his wife and family for longer periods than
he would like, the money is good and he is
friends with his colleagues.
Glenn was diagnosed with depression
and anxiety in his late teens, and not
too long before he snagged his first job in
mining. Later, he would be diagnosed with
bipolar disorder, a condition characterised
by periods of highly elevated moods before
swinging to serious depression. He currently
takes medication and generally manages
well, with the support of his employer, he
is able to function like anybody else.
It is this strong support from his present
employer that has made all the difference.
I feel that employers these days do a lot
of work to ensure employees are aware that
there is help available if they need it and
there are programs out there that help, he
said.
They do promote a healthy lifestyle and
wellbeing. The accommodation villages
provide healthy foods to eat. There are a
range of activities to do such as swimming,
going to the gym, playing sports such as
indoor cricket and soccer, or social events
* Name changed

like darts or pool. There are posters around


site and in the camp. There are weeks
where they have a focus point or focus day,
for example an R U OK DAY. Even emails
get sent out to you regarding your health.

Mental illness in
the workplace costs
Australian businesses
around $6.5 billion a
year, and is estimated
to affect one in five
Australians in their
lifetime.
Glenn also participates in an Employee
Assistance Program, which offers a 24-hour
telephone support line. In addition he
can get up to six face-to-face counselling
sessions each year if he needs it, all of
which are confidential and can help with
any difficulties.
All-in-all,
he
considers
himself
fortunate; when a previous employer found
out about Glenns depression and anxiety
they wanted to sack him.
I think the biggest problem for some

people is having the courage to ask for help.


People tend to suffer in silence or have this
shell be right attitude and let things build
up. This affects workplace productivity and
can also affect the home environment,
Glenn said.
I have been very lucky in this job as I
have a good employer and a good supervisor
who I have been able to talk to whenever
I have problems. Obviously no employer
wants you at work if your mind is not
right, but these days most mental health
conditions are as treatable as physical
injuries.
It is estimated that up to 25,000 mining
employees in Australia could be suffering
from mental illness. In NSW alone, it
is estimated to cost the sector as much
as $450 million each year; a figure that
includes lost productivity. This is not an
isolated phenomenon. Mental illness in
the workplace costs Australian businesses
around $6.5 billion a year, and is estimated
to affect one in five Australians in their
lifetime.
Within the mining sector, the main
issues appear to be anxiety, depression
and substance abuse, as well as work/life
balance struggles and loneliness among
FIFO workers.
In the last edition of The Australian
Mining Review we reported that WA Labor
leader Mark McGowan had introduced a
motion to Parliament calling for an urgent
enquiry into suicides among FIFO workers.
It is believed that nine workers had taken

their lives in the Pilbara region in the past 12


months alone, with the most recent incident
involving a worker on Barrow Island.
WA Mental Health commissioner
Timothy Marney said it was a significant
problem.
The Mental Health Commission has
previously identified that fly in, fly out and
drive in, drive out workers have greater
exposure to the risk factors that are known
to contribute to deaths by suicide, he said.
In particular, if people are experiencing
difficulties in their life, the FIFO lifestyle
could increase risks due to social isolation,
family and relationship stress, and
being exposed to high risk activities (e.g.
underground mining, riggers, and blast
crews) are greater for FIFO/DIDO workers
than others.
The commission is currently undertaking
research which will result in additional
support services to the industry and will
feed into a multi-year suicide prevention
strategy, currently under development
by the Ministerial Council for Suicide
Prevention.
The WA Government recently appointed
Rio Tinto Iron Ore chief executive Andrew
Harding to the council to bring the FIFO/
DIDO perspective to the council and its
action planning and implementation, Mr
Marney said.
The NSW Minerals Council has released
a comprehensive action plan for members,
mines and health partners, to ensure better
outcomes for employee mental health.

If you or someone you know needs help, contact Lifeline on 13 11 14.

Being psychologically fit


for challenging workplaces
Ensuring a candidate has the right
personal attributes and psychological
profile for particular work environments
is as important as knowing that they are
physically suited to the job.
With growing concern over the
mental health impacts of fly in, fly out,
(FIFO) and other remote or challenging
workplaces, there is a need for employers
to consider better screening and support
mechanisms.
Advanced Personnel Management
(APM) is one of Australias leading
rehabilitation
and
health
service
providers
offering
pre-employment
assessments, injury management, job
placement and psychological support.
Working across a range of sectors, APM
is acutely aware of the unique challenges
employers face in managing the health
and wellbeing of remote workers, and is
responding to this growing need with an
innovative approach.
It is generally accepted that there
are good reasons to use psychological
screening tools as a part of a recruitment
process, complementing the more
traditional approach of medical and
functional assessments.
This can help, for example, in
identifying key characteristics such as
risk taking behaviour, which has been
shown to increase injury risk.
APMs psychological pre-employment
screening process goes a step further
in assisting companies to determine

a candidates psychological fitness to


perform a job.
APM assesses elements such as
intelligence, personality, aptitude and
skills in considering the demands of a role
from a psychological health perspective.
Areas such as resilience, anxiety and
emotional health become particularly
important when people are placed into
different environments, and potentially
lose the social supports that they need.
In some cases more clinical assessment
tools are used, screening for potential
mental health issues such as depression
and other psychopathologies.
Psychological pre-employment screening
provides
employers
with
valuable
information which can be particularly
relevant for remote workers who are
at an increased risk of mental health
problems due to isolation, stress, fatigue
and family issues. Understanding the
individuals psychological risk profile
not only allows for safer placement of
that worker, but gives the employer the
opportunity to put in place wellbeing
and support services because the risks
are better understood.
APM psychologists are able to provide
feedback on presenting psychological
issues and make recommendations to
help achieve good long-term psychological
health.
Interested parties can get more
information by emailing APM or visiting
the companys website.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

67

Employee Mental Health & Wellbeing


For industry, the council suggested
increased investment in the mental
wellbeing of its workforce and communities;
improved understanding of the factors
and impacts of mental ill-health; and the
development of industry-wide guidance to
address the problem.
Mine operators were recommended to
inform employees and develop their skills
in approaching the issue; promote mental
health and implement programs for
early detection and intervention; support
affected employees and address relevant
workplace factors; and train supervisors to
recognise and support affected employees.
The council advised employees to
become aware of mental health issues and
the support services available, and adopt a
positive attitude to those seeking help
Recommended
activities
included
education and training, policy support,
systems review, health assessment,
partnerships
and
research
and
development. The full blueprint can be
accessed at the NSW mining website.

Substance abuse
The use of hard drugs such as crystal methamphetamine or ice is now an
established problem in mining communities, particularly in the FIFO workforce.
Anecdotal evidence suggests the drug is preferred by workers because it
leaves the body faster than other drugs, such as cannabis. Workers can binge
on the drug when they are rostered off and it clears from the body normally
within three days.
The 2013 National Drugs Strategy Household Survey by the Australian
Institute of Health and Welfare showed that in just three years between
2010 and 2013 the use of ice doubled across Australia. The Australian Crime
Commission reported that border seizures of amphetamine type stimulants
in 2012-2013 were the highest on record and 22,189 arrests were made in
connection with the drug in that period.
The abundance of the drug in Australias mining regions is well known. The
Newcastle Herald recently reported that 85 per cent of motorists in the Hunter
Valley who tested positive during a three-day roadside drug blitz in August had
traces of methamphetamine in their system. In June police in the Surat Basin
charged a 30-year old Gold Coast man for possessing $10,000 worth of the drug
and for allegedly dealing to rural mining towns.
While the community, government and law enforcement wrestle with the
complexities of the issue, Australian mining companies are urged to ensure that
all employees have access to both preventative and remedial information and be
encouraged to seek treatment without fear of losing their job.

Proven approach to overall wellbeing


FOUNDED by Petrea King in 1989, the Quest
for Life Foundation provides retreats and
community based workshops that encourage,
educate and empower people with the tools to
create emotional resilience and peace of mind.
According to Ms King, the greatest gift an
individual can give themselves, their family
and community is their own good physical,
mental, emotional and spiritual health.
Assisting people from all walks of life,
the Quest for Life Foundations retreats
and workshops provide a proven, effective

and holistic approach to physical, mental,


emotional and spiritual wellbeing.
Healing Your Life is a five-day
residential retreat in the beautiful
Southern Highlands of NSW for people
living with depression, grief, loss, anxiety
and any other challenging emotions.
Retreats are scheduled monthly until
December 2015.
Thousands of people travel to the centre to
find, begin or continue their healing journey.
Ms King said that during the retreat most

participants could actually see and feel


despair and despondency lifting, and found
they emerged with practical strategies and
tools to help better manage lifes challenges.
Crisis in our personal and work life is
often the catalyst for major transformation,
Ms King said.
When individuals realise that we cant
always change what happens to us, but
we can change our response to the events,
challenges and traumas in our lives, peace
and healing becomes possible.

An amazing
holiday that
treats mental
health
THE healthy mind for life program is a get
away, get well mental health retreat and
holiday by Greg Neville Retreats.
Greg Neville Retreats provides a
complete education on the cause and cure of
psychological stress, the issues influencing
the chemical component behind mental
health conditions, plus all the lessons of life
required to get well.
Clients can access a wealth of 25 years
experience, all while enjoying an amazing
holiday full of wonderful activities available
in the region where the farmlands meet the
high country at Lake Eildon.

68

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

Employee Mental Health & Wellbeing

A proactive
approach to
workforce wellness
MENTAL illness has an alarming impact
on the productivity of the Australian
workforce; an impact which is exacerbated
in Australias mining industry.
Reactive approaches to mental illness in
the workplace, such as employee assistance
programs, simply park the ambulance at the
bottom of the cliff they often offer too little,
too late.
Employers need healthy, present, active
employees. With research indicating that
worker anxiety and depression increases the
likelihood of workplace accident or injury, its
prudent to implement training that directly
mitigates the risk of mental illness.
By training individuals within a
workplace in social support skills, companies
can effectively establish an early intervention
mental health workforce. In other words,
this is mental health first aid with long term
support for workers.
Keystone Counselling specialises in
Mental Health Social Support training
courses which are designed to teach critical
skills to help identify and assist those with
a developing mental health issue. Mental
Health Social Support skills are taught across
a two-day interactive workshop. They cover
critical topics including fundamentals of
mental health and practical communication
micro skills.
The workshops also help identify the
signs and symptoms of mental health
problems, establish ways to help people in
the early stages of mental health problems,
outline the fundamentals of common mental
illnesses and provide ongoing skills to assist
with common mental illnesses.

Health training boosts


workplace productivity
WHEN it comes to mental health in the
mining industry, the picture looks bleak.
With an industry that runs around
the clock and with longer than average
hours, mental health issues are becoming
more prevalent.
Fly in, fly out (FIFO) suicides have
increased in the past year, leading to
a Parliamentary inquiry into mental
health issues among workers in WA.
Recent research by beyondblue and the

Mentally Healthy Workplace Alliance


studied the impact of employees mental
health conditions on productivity,
participation and compensation claims,
finding such conditions cost employers a
minimum $10.9 billion annually.
It is increasingly important for
organisations to look at what they can do
to create conditions that have a positive
impact on both the lives of employees
experiencing mental health issues and

the organisation.
Richmond Fellowship WA (RFWA) is
a leading mental health agency and a
key provider of evidence-based mental
health training targeted at managers
and human resources staff.
RFWAs training provides staff with
the skills and strategies to manage
mental health challenges in the
workplace, from early intervention to
return to work.

Mental health vital to employers and employees


WITH mental health in the resources sector
firmly in the national spotlight, WA-based
Strategic Workforce Development (SWD)
is well-equipped to offer support to mining,
construction and oil and gas employers
and employees.
SWDs team of registered psychologists
is experienced in working in the Pilbara
and metropolitan areas of WA and can
offer on-site mental health workshops and
services to companies and individuals in
the resources sector.
SWD principal registered psychologist
Caroline Rodgers said there was little,
if any, consideration given to applicants
mental
health
during
recruitment

processes in the resources sector.


Once recruited, an applicant may well
be involved with an induction process
addressing safety precautions, Take 5,
job hazards analysis, etcetera; however
very little consideration is given to mental
health awareness, she said.
For some people, working away from
home without their typical social support
networks like family, friends and sporting
clubs can be extremely challenging.
Similarly if a person has a pre-existing
mental or behavioural disorder without
the
appropriate
management
and
interventions then working away from
home can be extremely difficult.

Being mentally healthy is as important


as being physically healthy for safety,
effectiveness in attaining positive outcomes
for both the employee and employer.
Ms Rodgers said there was huge room
for improvement in addressing mental
health in the workplace.
Mental health awareness training
should be incorporated into every induction
program when people are required to work
away from home, she said.
On the spectrum of mental health
problems, the more involvement into
prevention and early intervention, the less
time and resources will be required into
treatment and enhance recovery.

70

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

Employee Mental Health & Wellbeing

Mental wellbeing can


no longer be ignored
PEOPLE working on rural and remote
resources and construction operations face a
wide range of challenges.
The Australasian Centre for Rural
and Remote Mental Healths (ACRRMH)
Wellbeing and Lifestyle Survey of 1000
workers across several remote sites in WA
identified significant risk factors relating to
their work, lifestyle and family.
Among the major risk factors was the
length of swings and shifts, pressure from
senior management and stigma associated
with mental health; the remoteness of living
circumstances and social isolation; and
missing special events such as birthdays
and anniversaries, relationship stresses with
partners, children and parents, and financial
pressures.
The impact of these challenges results in
mental distress affecting from one in four to
one in three of the workforce significantly
higher than the national average of one in five.
It is clear these factors can and do
contribute to mental health problems and,

in extreme cases, suicide. They also directly


impact safety and productivity.
The ACRRMHs Minds in Mines program
is unique in that it is proactive, raises
awareness and focuses on prevention and
early interventions.
It delivers sustainable, comprehensive,
integrated mental health strategies, including
the Onboarding induction handbook for
Australian mining, resources and remote
construction sites, addressing all aspects of
work, family and health; a series of Toolbox
Talks, which tackle different topics relating
to mental health; the Passport to Mental
Health in Mining, Resources and Remote
Construction, an essential, readable guide
designed to fit into a fluoro-shirt pocket;
and a mental health crisis management
workshop, designed for superintendents,
supervisors, occupational health and
safety representatives, emergency crew
and managers to enable them to respond
effectively to critical incidents and mental
health issues.

Cost-effective employee assistance programs


IN the global mining markets challenging
environment, it has never been more
important for companies and their employees
to develop healthy psychological habits and
techniques to manage change.
From its base in NSWs Hunter Valley,
EASAs team of consultants, psychologists,
counsellors and coaches supply corporate
clients with a range of psychological services.
These include 24-hour a day, 7-days a week
employee and family counselling; critical
incident and stress management; and 24-hour

manager assistance. EASAs training is


relevant, aiming to identify and deal with
human factor issues early.
EASA (NSW) has received numerous
awards for its low cost employee assistance
programs, including awards for excellence
and exceeding service-level agreement
requirements.
EASA employee assistance has a division
dedicated to mining. The organisation
predominantly services NSW and Queensland
mining related business.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

71

Commercial & Corporate Catering

Catering and facilities management for remote operations


SPECIALIST contractor Catering Industries
is fast becoming one of Australias largest
privately owned contract catering and facilities
management companies.
With a team of more than 1000 specialist
trained staff, Catering Industries works to
provide turn-key management solutions in
mining camps and accommodation villages in
remote locations.
The Catering Industries remote services
team has more than 60 years combined
experience, making it one of the most
knowledgeable and senior remote catering
teams in the industry. The team provides
support services to many of Australias most
notable projects and companies.
Catering Industries prides itself on
understanding the dynamics of a remote
workforce and plans all of its menus
accordingly, ensuring variety, value for money,
and good nutritional balance.
Meals are prepared onsite by qualified,
experienced chefs, who are fully briefed and
trained prior to appointment by the companys
in-house Michelin star-trained executive chef.
Although the companys core service is to
ensure that each workforce is well catered for,
Catering Industries also provides a full suite of
soft facilities management services including
accommodation management, site cleaning,
general housekeeping and laundering; as
well as security, land and air transport, pest
control, ground maintenance, first aid and
retail and bar ancillary services.
The companys excellence in catering
and facilities management is actively
demonstrated by its expanding client base,
including local and multinational companies
with projects across Australia.
Catering Industries is committed to
achieving excellence through quality food,
exceptional service and value for money; and
works to meet and exceed client expectations.

Catering Industries guarantees service excellence.

72

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

Native Title Consultants


Opinion & Analysis

Understanding native title obligations


Provided by Environment Land
Heritage (ELH)
THE law of Australia recognises a form
of Aboriginal land title called native
title which includes the rights of the
indigenous inhabitants to the traditional
use and enjoyment of their native title
lands.
Pursuant to the Native Title Act
1993 (NTA), the grant of the approvals
and tenements that are required for a
project must comply with the Future
Acts regime established under the NTA.
Accordingly, mining companies are
required to enter into negotiations with
the native title party for the project area
to seek to reach agreement with the
native title party for the grant of tenure.
Consent is provided by native title
parties in the form of Right to Negotiate
(RTN) agreements or Indigenous Land
Use Agreements (ILUA), in return for
the provision of compensation packages
consisting of financial and non-financial
components eg. business development
and employment opportunities.

To ensure compliance, the obligations


under each ILUA must be clearly
understood to enable mining companies
to implement the agreements. As many
of the commitments are non-financial
(eg. in relation business development,
tendering, procurement, contracting,
employment and training and education
obligations etc.), management systems
and processes are required across the
whole of the business.
Successful implementation of ILUAs
will require ongoing management and
monitoring of your business. Compliance
with the NTA and the underlining
agreements that mining companies
have in place are critical to the success
of the project. Non-compliance will
have detrimental impacts on project
timelines, the company brand and the
companys relationships with its key
stakeholders. There is also the potential
for financial penalties to be incurred
if the agreements or the governing
legislation is breached, therefore a risk
management framework should be in
place to ensure compliance with the
NTA and respective agreements.

Indigenous engagement legal,


contract and social responsibilities
Successful engagement with indigenous
communities is critical for mining companies
as they can have a legal, contractual and
social impact for the business if obligations
are not complied with.

Successful
implementation
of ILUAs will
require ongoing
management and
monitoring of your
business.
Legislative obligations
Management of Aboriginal cultural
heritage is mandated under state- based
cultural heritage legislation. Native title

legislative obligations are set out in the


NTA. Failure to comply with legislative
obligations will result in state and
federal project approval delays.
Contractual obligations
Mining companies will need to establish
cultural heritage and native title
agreements with Aboriginal parties
for their projects. Failure to fulfill
contractual obligations will expose a
company to actions for breach of contract
and associated project delays.
Social licence
Failure to maintain strong relationships
with relevant Aboriginal groups may
expose a company to public criticism
from those groups and increase
the
possibility
of
community,
environmental and/or indigenous groups
aligning in opposition to the projects.
The following outlines some of the
potential risks and consequences for a
company if your native title obligations
are not sufficiently managed and
implemented.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

Native Title Consultants

Native title and cultural


heritage experts
BRISBANE-based consultancy company
Environment Land Heritage (ELH)
specialises in advising clients in the areas
of cultural heritage, native title, land
access, tenement management and project
approvals.
As an integrated legal practice, ELH is
also able to provide expert legal advice in
these areas.
The consultancy prides itself on delivering

a comprehensive suite of services throughout


the life of a clients project.
It has an extensive track record of
delivering successful outcomes for clients
when negotiating agreements, and has
fostered strong working relationships with
Traditional Owner groups.
ELH works with clients to mitigate and
manage risk through the implementation of
these agreements.

Cultural advisers with


a unique perspective
BASED in Brisbanes inner north, Aboriginal
and cultural heritage consultancy Jagera
Daran is currently acting as the registered
cultural heritage body to the Jagera people.
But its services are not limited to that
function; Jagera Daran delivers cultural
advice to both public and private clients
to assist with strategically addressing and
developing cultural heritage processes for
development activities.
Established in 2005, Jagera Daran
has a long history of participating in and
contributing to regional and local natural
resource management, cultural heritage risk
and assessment, and planning in construction,
mining and extractive industries.
The company offers comprehensive advice
on a wide range of cultural heritage and native
title services; targeted and practical cultural
heritage; cultural awareness and assessment

training; advising clients and proponents on


their duty of care and legislative obligations
with respects to Aboriginal cultural heritage;
and developing organisational specific
indigenous employment and recruitment
solutions.
In the past 10 years Jagera Daran has
worked as cultural adviser on more than 45
projects, with budgets ranging from $50,000
to $380 million, including the Moreton Island
oil spill, the Queensland Southern Regional
Recycled Water Pipeline, Brisbanes Airport
Link tunnel and North-South Bypass tunnel,
the Wyaralong Dam and the Springfield to
Darra Rail Corridor.
Jagera Darans directors have a unique
understanding of the perspectives of
private and public sector developers and
the Aboriginal and Torres Strait Islander
community.

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OCTOBER 2014

Native Title Consultants

Relationships founded on solid agreements


AS a leading consultant on native title,
Keogh Bay Consulting was contracted
to advise Northern Minerals on its
agreement with the Jaru people for the
Browns Range project signed in June
this year.
Keogh Bay helped Northern Minerals
understand the terms that typically

exist in native title agreements and


develop a clear position on key issues
based on principles of mutual benefit, the
importance of long-term relationships and
the realities of implementation.
Director Matt Wrigley said it was
a dream project for Keogh Bay, which
allowed the team to work with a great

company interested in building a


long-term relationship with a great group
of people in the Jaru.
Keogh Bay can help project proponents
develop mutually-beneficial, respectful
relationships with Traditional Owners
founded on well-structured, practical
agreements.

Independent advice and assessments


Archaeologist Fiona Hook heads up
a large team of experienced archaeologists
and anthropologists at the Fremantle-based
Archae-aus, which provides independent
native title and cultural heritage advice
and assessments for a range of clients,
including ChevronTexaco, Santos, BGC,
BHP Billiton Iron Ore, Rio Tinto Iron Ore,
Fortescue Metals Group and Roy Hill Iron
Ore.
The archaeology firm, which was
founded in the early 1990s, also works
closely with a number of native title
holder and claimant groups including
Buurabalayji Thalanyji, Nyiyaparli and
Eastern Guruma.
Ms Hook, who is president of the
Australian Archaeological Association
and vice-president of the Australian
Association of Consulting Archaeologists,
explained that along with cultural heritage
surveys her company was particularly
experienced in native title work, with a
number of employees working as expert
witnesses in native title research.
We are very fortunate to have Jim
Rhoads as a member of our team, who as
a previous research manager of the Native
Title Tribunal, has a wealth of experience
in understanding native title processes

Fiona Hook and her company Archae-aus work closely with native title groups and land developers.

and what is required, she said.


Archae-aus team members work in
indigenous cultural heritage management
across Australia in NSW, South Australia,

Queensland and the Northern Territory,


with the majority of fieldwork occurring
in the Pilbara, Goldfields, Kimberley and
South West regions of WA.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

75

Native Title Consultants

Supporting ethical land access


COMBINING the expertise of an
initiated Wajarri man and a highly
experienced native title lawyer, Ethical
Engagement Consultancy offers a
unique native title and cultural heritage
service that can give companies an edge
in establishing sustainable, lasting
stakeholder relations.
Consultancy directors Colin Hamlett
and Raina Savage are skilled and
effective negotiators. They understand
not only the western legal system,
but also the traditional law and
cultural responsibilities of Aboriginal
communities that can impact land access
negotiations.
A respected elder, Mr Hamlett
can assist with cultural heritage
approvals,
indigenous
negotiations
and cultural awareness issues, while
Ms Savage is renowned for negotiating
groundbreaking exploration and mining
agreements. Together they facilitate real
engagement with traditional owners
and provide certainty for economic
development.
We offer a unique perspective in that
we understand both sides of the native
title and cultural heritage process, Ms
Savage said.
We understand the issues that are
important to Traditional Owners and
how companies can communicate and
negotiate to build lasting, productive
relationships.
We also cover all bases when it
comes to dealing with land access and

Ethical Engagement Consultancy co-director Colin Hamlett is a respected elder.

can negotiate native title agreements,


organise heritage surveys, prepare

cultural
management
plans,
run
cultural awareness training and oversee

the implementation
agreements.

of

land

access

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OCTOBER 2014

Indigenous Contractors

Conference to support Aboriginal business


THE annual Aboriginal Enterprises
in Mining, Energy and Exploration
(AEMEE) Conference is set to draw
Aboriginal
business
owners
and
resources company representatives from
across Australia to Darwin next month.
To be held at the DoubleTree by
Hilton on the Darwin Esplanade on 14
and 15 October, the title of this years
AEMEE conference is The Lifelines for
Business Success.
Day one of the conference will focus

on the theme Learn from Success, with


businessman and professional speaker
Tony Fountain to give the opening
address.
Mr Fountain known as the Rainbow
Chaser is a former-auctioneer and
author whose speeches focus on climbing
from the bottom to the very top.
The theme of day two, Adapt and
Thrive, will see former-Wallaby and
renowned author and journalist Peter
FitzSimons deliver the closing address.

Mr FitzSimons, known as much for


his red bandana as his sharp wit and
humour, is one of the countrys leading
sports writers and most in-demand
speakers.
AEMEE delegates will also have the
chance to hear from leading Aboriginal
business
owners
and
resources
companies.
Registrations are open now and the
full conference program will be available
on AEMEEs website closer to the event.

AEMEE aims to boost the involvement


of Aboriginal people in the resources
industry to gain true market share for
indigenous businesses within the mining,
energy and exploration sectors, as well as
to provide an environment that develops
and connects indigenous businesses with
real business opportunities.
The annual event helps to improve
relations and facilitate discussion
between Aboriginal people, companies
and the resources industry.

Australian Aboriginal cultural and land support services


ABORIGINAL people lived in Australia
for tens of thousands of years before
European settlement, and their rich
cultural heritage and connection to the
land can be found through artefacts,
objects, sites and places across the
country.
Specialist
cultural
heritage
consultancy
Tocomwall
provides
Aboriginal archaeological, ecological
and
cultural
heritage
services,
Australia-wide.

The company is owned and operated


by Aboriginal Australians, and is focused
on the full recognition, documentation,
protection
and
management
of
Aboriginal cultural heritage within land
use, resource planning and development
contexts.
Tocomwalls specialised independent
services include: Aboriginal cultural
heritage assessments, audits and
management
plans;
archaeological
heritage surveys, investigations and

Tocomwall is focused on the full recognition, documentation, protection and management of


Aboriginal cultural heritage.

object assessments; Aboriginal heritage


impact permit (AHIP) applications, and
implementation and management of
works required under the provision of an
issued AHIP (including archaeological
salvage); site identification recording;
work program and work area heritage
assessments;
and
site
avoidance
recordings.
Tocomwall provides its services to a
wide range of clients, including Native
Title claimant groups, resources sector

clients, state and local government


agencies, property developers and local
Aboriginal land councils.
With a mission to maintain the highest
levels of professionalism, integrity,
honesty and fairness in all negotiations,
Tocomwall works to ensure its clients
achieve heritage outcomes that are
culturally appropriate and sensitive,
cost-effective, and legislatively correct
at local, state or Federal Government
levels.

Tocomwall provides Aboriginal archaeological, ecological and cultural heritage services throughout
Australia.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

Indigenous Contractors

Product keeping dust, costs down


INDIGENOUS
company
Ngooltja
Contracting offers advanced road
stabilisation and dust suppression
solutions for mine sites Australia-wide.
The products Ngooltja Contracting
supplies represent some of the best-value
environmentally friendly dust control
solutions on the market, offering
cost savings as well as a healthier
environment.
Ngooltja Contractings key product,
Dustac, is derived from the wood pulp
industry and works by bonding road base
particles together, reducing the need for
water and other aggregates.
Non-toxic to humans, flora and fauna,
Dustac does not require specialised
application equipment and can be
incorporated during road construction or
applied to formed road surfaces.
Roads treated with Dustac can return
to service far quicker than untreated
roads after weather events, particularly
on roads formed with a substrate high in
clay, as is typical in many parts of WA.
On sites affected by monsoonal and
cyclonic weather, the savings can be
significant.
Ngooltja Contracting can supply
Dustac at short notice in small quantities
of up to 100,000L, while about six weeks
may be required for larger quantities.
Ngooltja Contracting also offers Soiloc,
a dust suppression product that can be
used for culvert and road construction in
place of cement stabilisation.
The
company
can
organise
transportation from its warehouse in
Welshpool to any site across Australia;
provide a technical advisor to help with

Ngooltja Contracting supplies Dustac, a leading dust suppression product.

application; or send its team to site to


apply the product.
Ngooltja Contracting is a Supply
Nation certified business that aims to

provide Aboriginal Australians with


the knowledge to control dust in their
environments by subsidising the cost of
dust suppression products.

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www.miningoilgas.com.au

Negotiation Skills Training


Opinion & Analysis

Negotiation skills are vital for management


AIM WA
NEGOTIATION is a critical skill for
managers, but time pressures and
the need to win can present ongoing
challenges, according to leading WA
experts in the field.
UWA Business School Professor Ray
Fells said managers needed to find a
way to look for options that worked for
both parties which could be especially
difficult when negotiations are conducted
virtually.
Professor Fells said the objective
in negotiation was the same as it has
always been: to get the best possible
outcome.
Managers
are
typically
task
oriented, Professor Fells said.
They are often time poor, under
financial pressure and just want to get
the job done so they can move on and
deal with the next task that is waiting
for them back in the office.
Professor Fells said people approached
their negotiations with the expectation of
a trade off between the initial positions
of the two parties and get the best they
can under the circumstances.
Negotiators need to slow the process
down a bit and give themselves time
to explore whether there are better,
value-adding solutions, he said.
This means taking time to think a
lot more about why and what if, rather
than just how do I get them to agree
with me?.

Trying to do this online is a real


challenge. Face to face is best, or
use something like Skype or Google
Hangouts, rather than just email.
UWA Business School Assistant
Professor Sandra Kiffin-Petersen said
Australian managers tended to be well
regarded for their friendliness and
willingness to adapt in negotiation,
although
their
informality
could
sometimes
cause
problems
with
negotiators from other cultures.
She said one of the most significant
challenges for managers in negotiations
was that they often believe they are more
collaborative than they actually are.
Although they might be saying the
right words, a win-win outcome for
example, when actually negotiating they
behave in a much more competitive way.
I think some managers underestimate
the longer term costs associated with
relationships that have become highly
adversarial, she said.
Once lost, trust is very difficult to
rebuild.
Both experts said preparation was
key to good negotiation and the more that
managers invest in their preparation,
take time to understand the other party
and be alert for options, the better the
outcome was likely to be.
This is where training can be of
assistance to managers, Assistant
Professor Kiffin-Petersen said.
By increasing self-awareness of
their reflexive style of negotiating and
providing them with an opportunity to

UWA Business School Professor Ray Fells has authored a major text on effective negotiation.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

Negotiation Skills Training

practice, they improve their confidence


and ability to achieve a better outcome.
It is important to become a reflective
negotiator and to learn from your
mistakes something that training can
help develop.
Both Professors have facilitated
negotiations and mediations in Australia.
Professor Fells has also worked overseas
in this area, and authored a major text
on effective negotiation.
Assistant Professor Kiffin-Peterson
does much of her work with Australian
managers, undertaking cross cultural
communications.
Both
also
teach
negotiation skills in formal degree programs
and in executive education courses.
Our negotiation programs are in

high demand, AIM WA UWA Business


School executive education director
Suellen Tapsall said.

One of the most


significant challenges
for managers in
negotiations was that
they often believe they
are more collaborative
that they actually are.

Everyone is looking to get the best


possible outcome for both the short and
long term.
The current economic context
means this is especially important.
Mrs Tapsall said clever managers
were realising they could improve
both the negotiation process and the
outcome by working on their skills and
learning from the experts.
Our negotiation programs are
highly interactive and energetic, she
said.
And the participants tell us theyre
using what they learn both in their
everyday work experience but also in
some less expected ways, like dealing
with their teenagers or neighbours.

Skill and preparation key to effective negotiation


INEFFECTIVE negotiation capabilities cost
Australias mining industry hundreds of
millions of dollars each year.
Consulting, training and negotiation
specialist ENS International has found
litigation, antagonism, and mismanaged
arguments are often the problem, rather than
technical or financial constraints.
The skills gap in negotiation in the mining
sector needs to be bridged. Many miners
have little knowledge on how to manage
negotiations effectively, particularly within
this ever-changing climate, the company
said.
Capitalising on negotiation skills is
not only required when leading up to the
commencement of a project these skills are
essential and need to be utilised during the
entire life of a project and beyond.

Sadly, the value of negotiation


effectiveness in the mining sector is one which
is never measured and commonly overlooked.
Consider what could be gained if you were
able to achieve just a 5 per cent improvement
in its negotiation outcomes?
ENS said most Australian mining
companies had hundreds of years of
negotiation experience within their teams.
The constraint is that this experience is
locked up like an undiscovered orebody, it
said.
Tapping into this experience is difficult
and will never be harnessed without the
utilisation of a proven negotiation process
model. Only when all resources are talking
the same language can the real potential be
achieved.
ENS said preparation was the key

to success in harnessing a companys


negotiating capabilities.
Once trained in the principles, the link to
practice is through preparation, it said.
Mining executives need to understand
how to systematically prepare, observe and
review their teams. Often they can be even
more effective when trained to take the
role of the process observer rather than the
spokesman. Steering committees, with their
wider time horizons and awareness of the
bigger picture, can also make a significant
contribution to the key preparation for major
negotiations where testing assumptions are a
vital component of negotiation preparation.
ENS International is a global team
of negotiation practitioners, delivering
globally recognised negotiation training and
consultancy services.

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www.miningoilgas.com.au

Negotiation Skills Training


Opinion & Analysis

Negotiation is a confusing business


by Michael Klug AM
Consultant | Clayton Utz
NEGOTIATION is the most frequent
voluntary activity engaged in by the
human species yet it is a confusing
business. It ranges from the simplest
things that we
do, from ordering
a coffee, to trying
to resolve the
problems of the
ages: religious,
territorial
or
ideological
conflicts.
Many millions
of people have
died due to the
fundamental
failure
of
negotiations

that murderous
phenomenon
known as uncontrolled escalation.
Yet we, the great unsung majority of
the worlds population, go about our
business peacefully and moderately
effectively.
The volume of negotiation events in
highly connected societies is immense
with the advent of the internet
but few of us ever think of the true
purpose of a negotiation, nor the means
by which we do it.
By
definition,
negotiation
is
every event, in person, in writing,
or electronic, by which we seek to
influence other peoples behaviour,
or vice versa. We talk about reaching
agreement,
achieving
consensus,
mutuality or resonance, but I suggest
that the true aspirational objective
of the negotiation process ought to be
creating value.
Regrettably our instincts tend
to let us down quite dramatically,
particularly when we negotiate at
speed (the norm these days, thanks to
email and mobile phones). While the
real objective is to achieve, wherever
possible, an integrative outcome, our
instincts seem to push us towards
distributive bargaining the most

basic, but most intuitive method of all.


This more for you, less for me or zero
sum approach creates little or no value.
Negotiation skills training can quite
quickly develop different structural
approaches where one can genuinely
attempt to create the true win/win
outcome where possible.
Professor
William
Ury
encourages
us
to go slow to go
fast no easy
thing
in
our
society.
Other
authors say that
agreeing
with
someone is as
much of a habit
as disagreeing,
but of course the
challenge is how
to do it.
One of the
easiest but most
often ignored ways of creating value
is by developing the skill of being
genuinely empathetic. Many authors
have written about this and Howard
Raiffa in his book The Art and Science
of Negotiation has identified the
management of the tension between
empathy and assertiveness as one of
the key skills of the Negotiator. Sadly
many Negotiators, either fuelled by a
misconception that merely driving for
an outcome is desirable and sufficient,
flame out long-term because of their
failure to manage relationships. It
is this inherent tension of balancing
empathy with assertiveness where
so much readily available value is
unnecessarily destroyed by the zero
sum bargainer.
We know that repetitive disciplined
structured processes can significantly
improve our negotiation performance,
but very few people take the time, or
even know where to look, to upskill.
Given that negotiation permeates the
very fabric of our lives, that seems
unwise and illogical. Learning how to
negotiate well is what I suggest is the
last of the low-hanging fruit from a
management point of view.

The true aspirational


objective of the
negotiation process
ought to be creating
value.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

Eco Mining

New appointment for


changing WA market
AS many construction and supply chain
companies are forced to adapt their offerings
to meet the needs of the changing WA market,
builder Ausco Modular has appointed a new
leader for its state arm.
Leo Crohan will take the helm at Ausco
Modular WA in a move targeted at increasing
the business project capabilities across the
state.
Mr Crohan has extensive experience in
leading businesses, which will allow him to
guide the WA arm of the company through a
changing market.
Drawing on his experience in the resources
sector, Mr Crohan said he aimed to continue

building Ausco Modulars full turnkey


modular offering in WA in sectors such as
healthcare and education, as well as exploring
new product opportunities, such as mobile
camps, to cater to changing needs.
The market for modular products and
solutions is shifting significantly in WA, and
companies like Ausco Modular are perfectly
positioned to service new and step-out
customers, many of whom may not have
previously considered modular as a building
technique, he said.
Its a challenging time for the modular
industry as a whole, but brings exciting
opportunities to diversify and adapt.

Membrane technology boosts mine productivity


CLEAN technology company EcoTechnol
specialises in membrane technologies that
purify, fractionate or concentrate copper,
zinc, nickel, gold or silver, boosting mine
site productivity and cutting costs.
EcoTechnol can treat environmentally
sensitive waste streams from mining
operations for recovery of metals as well
as producing a treated effluent that meets
environmental discharge regulations.
The technology is ideally suited
to fractionations that add value to
processing fluids from mining and
refineries, like separating metals
from acids or concentrating acids, and
producing high quality process fluids.
In a recent case, an ASX-listed
company found use of EcoTechnols
nanofiltration process would reduce
consumption of lime and cyanide during

gold ore processing, which was costing


the company about $170 per ounce of
gold produced.
Leach tests using both filtered and
unfiltered water found average lime
consumption dropped 64 per cent using
EcoTechnols technology, while cyanide
consumption dropped 26 per cent.
The tests also found extending leach
residence time to 48 hours increased
gold recovery, offering competitive
advantages in gold processing.
EcoTechnol
can
also
provide
cost-effective solutions to treat and
recover acid mine drainage water.
Outside of its membrane business,
EcoTechnol is working on a potentially
game-changing patented technology to
capture carbon dioxide and convert it to
clean fuel.

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OCTOBER 2014

Meteorological Solutions

Advanced electronics for onsite safety


SINCE 1989 Davis Instruments has
been the exclusive distributor of weather
equipment for Davis in Australia.
Davis Instruments is known for its
advanced electronics and technologies.
Its reliable in-house weather stations
consistently outshine the competition,
with increased efficiency and accuracy in
weather-data output.
Davis weather stations use 2G and
3G telemetry on regular smart devices.
From professional needs to hobbyist
requirements, Davis prides itself on

having a station and software package to


suit the spectrum of client needs.
Made in the US from UV-treated ABS
plastic, Davis stations are built to last in
some of the harshest environments on the
planet. The stations are used by a range
of clients across Australia, including rural
fire brigades, sporting event coordinators,
coast guards and mining operators.
The companys 6250AU Vantage Vue
is a reliable, robust and easy-to-set-up
weather station used for gathering
weather data. It is an all-in-one solution

for measuring wind speed and direction,


rainfall, temperature and humidity within
a set of preset parameters.
The 6152AU Vantage Pro 2 is another
innovative technology from Davis.
The low-maintenance Vantage Pro2
combines a Davis rain collector with
temperature and humidity sensors and an
anemometer, into one convenient package.
Vantage Pro 2 has the added advantage
that it can be customised with consoles
or special-purpose options (rather than
preset parameters), and is available as

either a wireless or cabled weather station.


Davis also recently launched its
new, real-time GPS fleet tracking
system, CarChip Connect. The compact,
easy-to-install hardware and cloud-based
software provides cost-effective reporting
for fleet management.
CarChip Connect is used most
effectively within any mining onsite safety
program, allowing users to determine
driving parameters (speed, acceleration,
deceleration or location) to monitor safety
of both the driver and vehicle while in use.

Australian-made weather monitoring technologies


SINCE 1982, Environdata Weather Stations
has designed, manufactured and sold robust
and reliable weather monitoring solutions
including automatic weather stations and
sensors, and weather accessories, such as
mounting hardware, weather station software
and telemetry options.
The company offers its newly developed
WeatherMation Live service for simple and
efficient weather data management.
WeatherMation Live enables Environdata
to automate data collection, storage and
distribution for its clients, Environdata
marketing manager Matthew Probets said.
Hosted on Environdatas secure servers,
WeatherMation Live allows users to log in
securely from any web browser, allowing them
to efficiently monitor one or many weather
stations.
The technology provides live and historical
weather data to your PC or mobile device
and will ensure your staff know important

weather information via (optional) SMS and


email alerts, Mr Probets said.
When you subscribe to our WeatherMation
Live service, we will collect your weather data
from all your Environdata weather stations,
automatically, as often as every minute if
required. Weather data is then saved into
WeatherMations secure SQL database, held
on our servers. You own the weather data and
only your authorised users can access it.
With advanced logic to monitor your
weather conditions and email and SMS alerts
to your users, you are well-placed to make
strategic decisions for weather based activities
such as limiting site access, or moderating
speed limits on access roads based on rain or
wind.
Environdatas Thermal Work Limit
(TWL) firmware is another new technology
available in the companys weather stations.
TWL weather stations manage employee
heat stress risks via accurate, reliable,

onsite weather monitoring, with specialised


firmware to calculate the maximum safe work
load for employees.
Our TWL heat stress weather stations
protect staff in hot working conditions to
maximise productivity, Mr Probets said.
These robust and reliable heat stress
weather stations are Australian-made and
built to survive Australias harsh conditions.
Environdatas TWL stations work to
keep your workers safe and productive: the
technology accounts for the accumulative
effects of sun, wind, temperature and
humidity and allows for clothing, posture and
sweat rate.
TWLs are occupational health and
safety-approved for heat stress management,
and help to maintain employee productivity
and morale in thermally-stressful working
environments.
Environdata is proudly Australian owned
and supported, and provides Australian-made

weather monitoring solutions. Interested


parties are encouraged to call or visit the
company website more information on its
complete weather technology range.

Environdata Weather Stations cyclone-resistant


weather station on Koolan Island.

www.miningoilgas.com.au

Meteorological Solutions

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

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PROMOTIONAL

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THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

Meteorological Solutions

Accurate environment and air quality monitoring


THE study of weather and climate is one of
the most topical issues in todays society.
Weather forecasting is increasingly
important in many areas, from air-traffic
control and pollution monitoring through
to artillery support.
Atmospheric
radar
systems
developer ATRAD is a leading supplier
of ground-based wind profiler radar
systems used for measuring atmospheric
phenomena, including wind velocities
and turbulence.
The company is also a world leader
in scientific radar solutions, including
ionospheric and meteor-detection radars.
It has developed a modular systems
architecture which enables the supply
of customised, complex operational
systems and radar sub-systems.
Australias mining industry has a
basic social responsibility to accurately
monitor and record air quality and
environmental changes onsite.
ATRADs radar wind profilers provide
information on relevant meteorological
parameters including vertical profiles
of wind speed and direction which is
essential to monitor air quality and
environmental change.
The company recently installed its
state-of-the-art boundary layer wind
profiler at Glencores Mount Isa mines
a cost effective system which assists
the monitoring and management of
emissions from the sites smelter stacks.
For almost 20 years this South
Australian company has supplied
systems, components and expertise to
more than 75 major radar installations
worldwide.

ATRAD is a leading supplier of ground-based wind profiler radar systems used for measuring atmospheric phenomena.

ATRADs radar wind profilers provide information on relevant meteorological parameters including vertical profiles of wind speed and direction.

Avoiding flood damage through advanced weather alerts


OPEN-cut mines are especially vulnerable to
heavy rainfall and significant weather, which
can be destructive and costly.
Flooded mines put employees at serious risk
and cause damage to expensive equipment,
with studies showing that flood damage can
reduce mine output by more than 15 per cent
each year.
Tailored weather services, such as the

ones provided by MeteoLogic, keep mine


administrators abreast of significant weather
in the area surrounding their site.
Alerts and warnings are issued by a team of
qualified meteorologists far enough in advance
for personnel and heavy equipment to be
moved out of harms way, reducing downtime
and financial loss.
Free Bureau of Meteorology weather

services provide broad overviews while


commercial operations such as MeteoLogic
specialise in distributing highly detailed
forecasts that include customised reports.
MeteoLogic managing director Matt
Saunderson said that paired with weather
alerts, tailored commercial forecasts saved
mines tens of thousands of dollars every year.
Advanced weather alerts are an

inexpensive way to defend against the


financial risk and loss of reputation significant
weather can bring, Mr Saunderson said.
Computer models and remote sensing
information has advanced significantly in
recent years. Much more detailed and accurate
information is now available for users to
understand the range of possible impacts on
them with a high degree of confidence.

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THE AUSTRALIAN MINING REVIEW

OCTOBER 2014

www.miningoilgas.com.au

Fuel Services, Tanks & Hoses

Servicing high consequence dangerous goods


NATIONAL bulk road tanker service
provider Toll Liquids specialises in
transporting bulk liquid and industrial
gases by road. The company services some
of Australias largest companies, with
industry leading safety and efficiency in
the transport of high-consequence bulk
dangerous liquid goods.
Toll Liquids has one of Australias
largest and most modern road tanker
fleets and services customers in the retail
fuel, energy, mining, manufacturing
and agriculture sectors. The business
has operations in all Australian states
and territories, and specialises in
transporting fuel (diesel and petrol),
lubricants, condensate, bulk chemicals
and industrial gases in metropolitan,
intrastate and interstate regions.
Toll Liquid has intimate knowledge
of the fuel supply market segment, and
operates closely with all major fuel
suppliers in Australia. Its customer
service centre is available 24-hours
a day, 7-days a week, to ensure each
delivery reaches the required destination
as quickly as possible.
Toll Liquids is committed to
meticulous,
best-practice
industry
compliance for operational safety,
health, environment and quality control,
and its qualified, dangerous goods
drivers are highly experienced in all
aspects of bulk distribution by road.
Toll Liquid specialises in transporting fuel,
lubricants, condensate, bulk chemicals and
industrial gases.

Fuel distributorship expands into the Pilbara


FAMILY owned and operated fuel
distributorship
Dunnings
recently
expanded its operations into the Pilbara,
after distributing fuel and lubricants
throughout the WA Wheatbelt for the
past 50 years.
The company distributes, retails and
wholesales bulk fuel and lubricants,
and prides itself on its premium quality
customer service.
Built on the critically tight schedule
associated with agriculture for
example, in seeding and harvest
Dunnings understands the importance
of reliable delivery time.
The company now brings this high
level of service and experience to the
resources sector in WAs Pilbara. It
recently purchased the Ampol site
in Newmans light industrial area
and rebranded it to Shell including
revamping it with new tanks and pumps.
The move has enabled the company
to gain a large stock holding of Shell
lubricants for direct sale which has
minimised client waiting periods.
Dunnings can cater to any customer
requirement, delivering as little as
1000L (needed for generators and small
tanks) with a 5t truck, to 110,000L,
delivered via its fleet of reliable road
trains throughout the Pilbara.
The environment and the safety of
others are the companys first priority.
Its drivers have been trained and
accredited to the high level expected
in the fuel industry, ensuring any fuel
requirement will be delivered in a timely
and safe manner.
Dunnings recently expanded its fuel and lubricant distributing operations into the Pilbara.

88

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

Fuel Services, Tanks & Hoses

Prefabricated and customised


bunded service and diesel modules
MANUFACTURING specialist Innovative
Modules supplies Australian companies
with bunded service and diesel modules.
The company has a depth of experience
across a range of industries including
mining,
construction,
agriculture,
transport and maintenance and
delivers a proven range of prefabricated
and customised modules to Australias
ever-changing industries.
Innovative Modules IMB-350 model
(within the Service Mate product
range) was designed with contractors,
farming, mining, and the transport
industries and local government in

mind. The self-bunded IMB-350 provides


a one-stop-shop for all daily machine
servicing needs, and is ideal for use
in Australias tough environmental
conditions.
IMB-350 is characterised by a 350L
capacity tank for bunded diesel with a 12
volt pump, 5m hose and 19mm drip-less
dispenser; a 40L per minute diesel flow
rate and 11L/m oil flow rate; a 20kg
pneumatic grease pump; two LED lights
with one Anderson plug connector; two
lockable service boxes with gas strut
doors; and an aluminium, marine-grade
double-bunded construction body.

The model is 140kg in dry weight and


1800mm wide, 800mm deep and 550mm
high. Innovative Modules can also
supply IMB-350 with optional lockable
tool draws.
Innovative Modules primary focus
is to design and deliver its module
range in line with customers individual
specifications and needs. The companys
modules can be selected as a standard
layout or tailored to site-specific
requirement.
Innovative
Modules
will gladly customise modules in full
compliance with Australian mining and
environmental regulations.

Improving profit and reducing


emissions with liquid nano technology
NEW nano technology can now be
applied to fuel and oils with promising
results.
Lubrication
Solutions
delivers
lubricants that protect and prolong the
life of engines and dramatically slash the
amount of fuel needed to run machinery.
In 2013 the company released a
fuel-saving additive in Australia and
New Zealand that utilises liquid nano
technology.
XSNano is an all-in-one power
booster, fuel saver, emissions reducer,
engine protector and combustion

chamber deposit cleaner, and is the


latest generation of streamlined fuel
additives currently available.
The super-concentrated, environmentally
friendly and multi-functional additive can
dramatically reduce fuel usage by providing
a more complete burn of fuel impacting
positively on profit margins and the
environment.
With a fuel mixture ratio of 1:10,000,
XSNano is poured straight into fuel and
easily transported and stored.
Lubrication Solutions chief executive
Kevin Carpenter said that since the

removal of lead from petrol and sulphur


from diesel, engines were running
without sufficient lubricant to the upper
cylinders, resulting in injector and fuel
pump problems.
You need to be adding an upper
cylinder lubricant, he said.
Our products not only lubricate, but
provide a more complete burn of fuel.
This results in better fuel economy,
more power and far less emissions.
More information is available on the
Lubrications Solutions website.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

89

Filters & Filtration

New energy-saving compressed air dryers range


THE need for compressed air can vary
at different times within a facility
resulting in fluctuating flow levels. This
means that the compressor needs to
run with either on and off or frequency
control to match site demands. However,
traditional compressed air dryers waste
energy by running at 100 per cent power
regardless of the demand for compressed
air supply.
If no air is being cooled, the
evaporation pressure in the system
decreases and the compressor turns
down its frequency. The latest dryers
from SPXs Deltech brand save energy by
matching this decrease using frequency
control linked to the refrigeration
compressor. They provide reliable, high
performance operation for flows from 800
cubic feet per minute to 12,500cfm (1360
cubic metres per hour to 21,238cum/hr)
and their optimised energy use offers
the potential for significant cost savings
with a rapid return on investment.
SPX has a continuous program of
research and development to ensure
application needs are met by reliable
products and solutions, which are
designed to improve plant performance
and reduce costs. The new Deltech
dryers are another example of SPXs
expert engineering capability and its
commitment to provide customers with
high performance solutions that offer
improved sustainability and better
efficiency.

SPX Flow Technologys Deltech air compressors provide reliable, high performance operations with optimised energy usage.

90

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

Filters & Filtration

Recovery specialists team up


WORKING hand-in-hand with global
resource recovery specialist ENERVAC
Corporation, Australias AVT Services is an
industry leader in the design and production
of processing and recovery systems for
industrial liquids and gases.
ENERVAC has earned a strong reputation
from a history of outstanding customer
service, which AVT Services continues with
offices around Australia staffed by trained

technicians.
ENERVACs
extensive
range
of
custom-engineered products includes sulfur
hexafluoride gas servicing equipment, water
recycling and waste minimisation systems,
air and gas dryers, dehydrators, degasifiers,
filtration systems and coolant systems, plus
all related equipment and accessories.
While ENERVAC manufactures a broad
range of standard products covering most

areas and processing requirements, it


takes a particularly unique and innovative
approach to engineering for specific customer
installations.
This proficiency, coupled with quality
control of its manufacturing environment
and a commitment to continued high
standards of customer service, makes
ENERVAC the number one option for major
organisations and independent operations on

an international level.
AVT Services is one of Australias foremost
vacuum specialists, offering customers a
complete portfolio of new vacuum equipment
and a select range of reconditioned vacuum
pumps and pumping systems.
Whether customers are looking for rough
vacuum, high vacuum pumps, systems or
accessories, AVT can offer the most reliable
service and advice.

Integrity at heart of company culture


ESTABLISHED in 1984 with a new
structure formed in 1990, Catamac is
a national supplier of diesel engine
components and filtration products for the
engine repair and maintenance service
industries.
Catamac is focused on premium
products, understanding the clients needs,
exceeding expectations and fostering
strong vendor relationships.
Catamac said its success could be
attributed to sound business practice,
integrity, and a passion for customer
service: it treats clients with respect and
appreciation for their valued custom.
No one cares how much you know,
until they know how much you care, the
company stated.
From its earliest days, filtration

products have been Catamacs mainstay


for Australias civil, mining, oil and gas,
transport, railroad, marine, industrial,
four-wheel
drive
and
automotive
industries. The company is a single source
of filtration for industrial equipment
from single cylinder stationary engines
to crushing and screening equipment; or
large dust collector to a 400t face shovel.
It has substantial stock holdings of Wix
Filters, the largest and one of the most
respected filter brands in the US. The
range is complemented by specialised bulk
tank fuel filters and high and medium
pressure hydraulic filters.
Replacement engine parts for American
diesels were added to Catamacs range in
1990.
Heavy diesel parts manufacturer Mahle

is also an integral part of Catamacs


supply chain, as a primary collaborator
with almost every engine manufacturer
across the globe.
Catamac has a wide range of
replacement engine parts for well-known
American diesel engine names, while also
offering its own Empower brand. Empower
is acknowledged in the diesel engine repair
industry as a brand characterised by
premium quality design and standard of
manufacture. Replacement parts include
engine kits, oil coolers, water pumps,
crankshafts and cylinder heads.
Catamacs trained and courteous
customer service staff are committed
to prompt order processing and timely
dispatch from the companys national
warehouses.

From its earliest days, filtration products have


been Catamacs mainstay for a wide range of
industries across Australia.

92

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

High Pressure Cleaning


Opinion & Analysis

Mines respond to pressure


Hamish Lorenz
Australian Pump Industries
Miners are under pressure to cut costs
as commodity prices plummet. Even the
giants of the industry are preparing for
an oversupply of iron ore worldwide with
subsequent strategies to reduce cost.
Equipment maintenance, or lack of, is
a massive cost driver for operations, big
or small. Maintenance is expensive but
failure to follow service program can result
in extraordinarily high penalties associated
with loss of productivity.
Big plant fleets require disciplined
preventative maintenance to minimise
downtime. Carrying out those service
program demands a high level of equipment
washdown capabilities. Smart operators
know that keeping equipment clean is a
vital first step in maintenance.
The Ok Tedi mine in New Guinea
operates a fleet of Caterpillar 250,000t
dump trucks, supported by crawler tractors
and associated plants. Portable high
pressure steam cleaners that carry their
own water supply and can be used both
infield and at the workshop depot have
proved indispensable.
The mine carries out its own
maintenance but relies on Hastings
Deering, the Caterpillar distributor, for
much of the support programme. A 5000psi
trailer mounted steam cleaner with its own

onboard water supply enables plant to be


cleaned efficiently for both breakdown and
routine maintenance.
The big machine is powered by a Kubota
water cooled diesel engine with the whack
coming from a Big Berty heavy duty
industrial pump using 21 lpm at 350bar
(5000psi). The trailer system is equipped
with stainless steel hose reels to provide
the operators and technicians with the
ability to move around big equipment
without moving the blaster. Up to 50m
of high pressure hose provides operator
convenience, facilitates faster cleaning and
improves safety.
The steam function allows the operator
to adjust temperature from ambient all the
way through up to 130 degrees Celsius.
Operating in cold water mode, the unique
Aussie Hydrotek uses the full 5000psi
to blast the caked mud off track-gear or
undercarriage fast. Service technicians can
maximise efficiency as maintenance checks
or even simple tasks like lubrication are
easier.
Encrusted layers of oil and dust can be
easily removed with the steam function.
Maintenance teams can melt away the
grease to identify and then repair leaks in
transmissions, hydraulics or engines.
Fast identification of early stage issues
facilitates repairs and can result in huge
costs savings and can avoid catastrophic
breakdowns. The 4000psi and 5000psi
steam cleaners are becoming common on
mine and quarry sites throughout Australia

and the South Pacific.


Australian Pump Industries pioneered
super heavy duty, powerful hot water
machines for mining applications.

Smart operators
know that keeping
equipment clean is
a vital first step in
maintenance.
Mine sites report excellent results in
improved serviceability and dramatically
increased efficiency. The mobile steam
cleaner is particularly useful for infield
breakdowns. Having the plant properly
cleaned facilitates any service, even the
routine replacement of filters and other
essential maintenance functions.
With the increase in pressures used for
cleaning, operator safety becomes a big
issue. Maintenance teams, operating in
poor conditions, can take shortcuts that
can be killers.
Injuries from water jets can prove fatal
with chemicals and bacteria forced deep
into body tissue. Resulting infections
are difficult to treat and can lead to limb
amputation and even death.
Australian Pumps have produced a

Safety Manual for operators and backed


it up with operator safety training
programmes under the companys Safe
Operator banner.
The program also includes a range of
personal protection equipment (PPE) which
is lightweight, comfortable and affordable.
The collection includes protective clothing,
gloves, and boots that are proof against
hose bursts or direct jets up to 7300psi
(500Bar).
The new protective clothing moves
away from the expensive, cumbersome
Kevlar suits and uses a revolutionary
new material called Dyneema. Because
Dyneema is fifteen times stronger than
steel on a weight for weight basis, its
possible to make fabric that is lightweight
whilst at the same time offering levels of
protection not previously available.
The huge benefit is that the cost of
this new range is dramatically less than
the traditional ultra-high pressure PPE.
500bar proof boots are also included in the
Safe Operator package.
It is generally understood that iron ore
prices may continue to fall as big mines
like Roy Hill come on stream. That means
huge pressure on operators to reduce
costs to stay competitive. Carrying out
maintenance functions with reduced staff
levels cannot be allowed to compromise
preventative maintenance.
Using state-of-the-art equipment and
safety gear gives modern miners an inbuilt
advantage.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

93

High Pressure Cleaning

Pumps upping the pressure

Bertolinis new CAX series of triplex pumps offer users reduced maintenance costs and extended pump life.

A new series of Big Berty Bertolini


triplex pumps designed for pressures to
750bar (10,875psi) has been launched by
Australian Pump Industries.
Manufactured
in
Bertolinis
state-of-the-art factory in Northern
Italy, the new pump range provides
hydroblaster users with a top quality
triplex pump at a substantially lower
price than conventional equipment in
the 750bar range.
Bertolinis CAX series represents
a design breakthrough. Based on the
companys CX series, the pump uses
state-of-the-art technology to provide real
benefits to users in the reverse osmosis,
desalination, food, petrochemical and
chemical industries.
The pump head, with a lifetime
guarantee, is manufactured from AISI
316 grade stainless steel. Premium,
over-sized tapered roller bearings are
standard they are designed to endure
even the heaviest loads on extended
industrial applications.
Self lubricating double V packings
are the basis of the sealing systems. The
premium elastomer material seal area
was enlarged to improve sealing under
any conditions. The crankcase, designed
to be oversized for this pump class, is

die-cast aluminium and is specially


treated for high strength and durability.
It is anodised for corrosion resistance.
Bertolinis patented Du-dry plungers
are PTFE coated to reduce friction and
provide smoother operation and longer
wear.
Best of all, double diameter piston
guides made of stainless steel mean that
the radial ring never comes into contact
with the moving rod, eliminating wear
and allowing for superior lubrication.
Interlocking, self-aligning two-part
connecting rods, designed for high loads,
facilitate installation and removal
while reducing friction and wear due to
overheating.
The breakthrough in the pumps
design is its compact dimensions,
Australian Pump Industries product
manager Hamish Lorenz said.
Even a 750bar version of the new
CAX is a compact 572 x 465 x 288mm.
Expensive cast iron pumps can be
replaced by a Bertolini CAX at a fraction
of the price, reducing maintenance and
replacement costs, he said.
Applications include hydro-blasting,
laser cutting and industrial wash down
duties as well as reverse osmosis and
desalination.

Quality hose reels a must


for high pressure cleaning
PRESSURE washing equipment demands
an extreme level of solidity and reliability
in order to function in the field under such
high pressures.
As the only authorised Australian
distributor of Reelcraft hose reels, ReCoila
frequently recommends Reelcrafts PW
Series pressure wash reel to the cleaning
sector. The PW Series is rated to 5000psi,

which is adequate for most common


applications.
ReCoila has been building hose reels
in Australia for more than 35 years and
is at the forefront of the industry, offering
Asia-Pacifics most comprehensive range
with more than 3500 reels available.
Further information is available on the
ReCoila website.

Further information and free technical


advice on these new lightweight, cost

effective triplex pumps is available from


Australian Pump Industries.

94

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

Vehicle & Wheel Wash Systems for Mining


Opinion & Analysis

Keeping your fleet clean, green and rolling


THE rollercoaster that is the global mining
and oil and gas industry is underpinned by few
certainties. Write-downs, market uncertainty
and a falling commodity price will always
inject fear into shareholders but, as they say,
the show must go on.
In this ever-changing landscape, the drive
to invest in cost efficiency is why the investor is
looking to EPCM houses to engage experienced,
scope-specific contractors to deliver effective
vehicle and equipment wash down packages
that will provide the project with long term
value and will ensure one of the operations
larger investments, the fleet both large and
small is protected.
Fleet asset protection through investment
in critical maintenance systems is an
operational certainty, playing a starring role
in mine infrastructure areas is the humble
Truckwash. If youre reading this, you know
what Im talking about.
On the ground, the operational performance
and reliability of the truck wash is as important,
if not more so, than the fleet itself. Installing the
right product for the right application can be
the difference between a valuable investment
and a really bad decision.
Light vehicle wash management is a lot
like the fast food industry its expected to
be fast, functional and with as little human
interaction as possible to ensure a safe and
efficient experience for the operator. Most
systems are designed to provide automated
wash management of the light vehicles wheel,

wheel arches and over chassis; this function is


to ensure that the fleet can be regularly purged
of the build-up of corrosive site material, long
seen as a rapid destroyer of an otherwise
healthy vehicle fleet.
The selection of the right product will
allow the installation of a fit for purpose
system, target engineered to meet the specific
requirements of the site. Most suppliers in the
market today will push the most cost-effective
solution and, like most things in life, you get
what you pay for so it is important to ensure
your supplier has the product specific to the
mining industry and is proven to meet the
design and performance criteria the project
requires.
The haul wash sector is another beast
which requires careful selection, as an effective
wash is one of the primary tools in the asset
management of the mine haul fleet. Not only is
its role within the MIA important it is also an
expensive asset in itself.
During front end design it is important to
ensure that your contractor has the design
capabilities to provide you with a full suite
design package, from the ground up, with third
party verification.
When selecting a light vehicle system you
must be assured of its performance, but this
can sometimes be tricky when there seems to
be a lot to choose from. Therefore it really is
the selection of the truck wash supplier which
is as critical, if not more so, than the equipment
itself. It is their experience that should provide
you the confidence in supply.
Like the mining industry as a whole, the
evolution of the humble truck wash into
critical non process infrastructure takes cost
efficiency from the pit to the boardroom with

real reductions in the cost of doing business.


With the increase in demand, the industry has
had its fair share of fly in, fly out contractors
looking to add truck wash contractor to their
resume, which in some cases has led to EPCM
investing poorly. The key to selecting the right
person for your job is to do your research first
and look for a dedicated specialist who has the
capacity and ability to work with you from
start to finish.
COST EFFECTIVE WASHING
The right choice of a vehicle wash extends
beyond the ability of the wash system to clean
the vehicle.
Factors for consideration include not
only how well it cleans the vehicle but the
turnaround time. With the larger mine haul
vehicles now costing in excess of $3 million, and
a single tyre on a 797, for example, costing more
than $40,000, investment in mine vehicles is
growing and the need to improve ROI on these
major assets is every mine managers challenge.
For every kilo left on the mine haul vehicle it
means one kilo less it can transport from the
mine face back to the processing plant; for
every hour held up in the wash bay is one more
hour this asset is non-productive. For example,
on a wet day on a mine site, sludge build up
in the underbody, on and around the wheels
including the treads, and hang up in the tray
body can total many hundreds of kilos, and
sometimes much more multiply this by the
number of trips per day and you will see just
how much a dirty truck is costing your mine in
lost productivity.
Ore hang up in the neck of the tray body
is another area creating lost productivity
in the mine. A modern wash system today

CLEAN AND GREEN


Keeping the mine fleet clean and green should
not be understated. The need to keep major
assets clean provides for ease of access inside
the maintenance bay and the tyre change bay
and all adds to the ability of the maintenance
crew to get this equipment back online in the
shortest possible time.
During the wash process oil and grease
will be removed from the vehicle and these
hydrocarbons cannot be allowed to contaminate
surface or groundwater. The design of the
wash bay needs to provide for an efficient
and effective recovery process of sludge and
hydrocarbons removed from the vehicle during
the washing process and must be an essential
part of any vehicle washing system.
A water recycle and treatment process
should also include, as well as the sludge
containment pit, an efficient oily water
separation system treating not only free oils
but emulsified oils; in addition to a heavy
sediment separation system, lamella plate
or cyclone process, with sufficient settlement
time allowed, prior to in line filtration and in
line water softeners to reduce salt and calcium
build up prior to the water being returned to
the header tank for re-use. A water treatment
system designed to handle bacteria including
tropical invaders should be an essential part
of any bio security system, particularly in the
northern regions of Australia.

PROUDLY WA-owned company WA


Wheelwash & Hire Services specialises in
the hire and sale of wheelwashing systems
to suit the construction, mining and
environmental industries.
The company was the brainchild of
directors Danny DAngelo and Danny
Passeretto, developed out of their experience
as truck drivers who saw the need for such a
system in WA.
Since its inception in 2005, WA

Wheelwash & Hire Services has designed


and fabricated mobile wheelwash and fully
automatic spraydown and filtration systems
in its Wangara workshop.
The company aims to address problems
associated with vehicles entering and
leaving construction sites, carrying dirt onto
suburban roads causing community concerns,
and to minimise the spread of contaminated
soils and environmental diseases.
WA Wheelwash & Hire Services has

worked on many large construction projects,


including Gateway WA, Elizabeth Quay,
Fiona Stanley Hospital and the Perth
Stadium, for clients such as Leighton
Contractors, Ertech, Holcim, Downer EDI,
Georgiou Group, Panoramic Resources, BGC
Contracting and Coates Hire.
Its cornerstone project was the design,
construction and installation of a wheelwash,
spraydown and filtration project for a nickel
storage facility in Wyndham in WAs North

West, where it was imperative that none of


the product was allowed to leave the facility
on the quad road train wheels.
WA Wheelwash & Hire Services
equipment has been used by clients to
assist in dealing with issues such as
asbestos, dieback, acid sulphate soil and
weed and seed.
The companys attention to detail and
hard work ethic ensures its clients is a
satisfying experience.

By Fleetwash General Manager


Patrick Whitton

should include a high impact tray body wash,


preferably RC type to allow simultaneous
washing to get the vehicle back online sooner
rather than later.
Today, effective washing is more about cost
efficiencies than good looks.

Stopping the spread of dirt and disease

Wash systems offer workplace


efficiency and safety on site
MINING is not an industry that can overlook
waste and inefficiency.
Maximising returns on machinery and
minimising labour cost is critical; washing gear
prior to maintenance and to keep tare weights
down is a necessity, not a luxury.
However, washing machinery by hand is not
efficient for a number of reasons health and
safety risks, labour expense, water wastage
and vehicle downtime among them.
Tranzwash International was formed to
provide efficient automated heavy vehicle
wash systems to heavy vehicle operators.
The resources sector with its large, hard to
clean vehicles stands to benefit enormously
from automated and semi-automated systems
supplied by Tranzwash International.
Mine managers must look to automation to
be effective in trying times.
Tranzwash Internationals cutting edge
systems are based on decades of experience
washing heavy vehicles around the world;
from the tar sands of Canada to truck and bus
operators in Europe and the mines of Australia.
A companys bottom line can benefit from

the modern technology. It eliminates danger


to employees, greatly reduces labour costs,
recycles water to minimise environmental and
financial costs and reduces vehicle downtime
by getting it clean typically in minutes, not
hours.
Tranzwash International is in Australia for
the long run through the ups and the downs
and cannot afford to have its reputation
tarnished by supplying gear that is not up
to scratch. The company supplies some of
the gruntiest and most reliable heavy wash
systems on earth, which are built by InterClean
Equipment.
InterClean has been around since 1984,
with more than 1800 operating wash systems
worldwide.
Zarb Road Transport owner David Zarb said
the dependability of Tranzwashs work and the
integrity of its people had been a breath of fresh
air.
I do not hesitate to recommend them for
work of this nature...the InterClean wash
system is proving to be reliable, easy to use and
maintain, he said.

Priceless investment
in essential assets
VEHICLE and wheelwash systems and
pressure cleaners are daily necessities
and important assets for mine sites.
Water quality issues play havoc with
machine performance and on cleaning
requirements for service, before leaving
site and for weed and seed.
The ThoroughClean Water Blasters
team takes a consultative approach to
mining, oil and gas clients needs to ensure
it fully understands the environmental
and budgetary requirements before
making a recommendation.
ThoroughClean Water Blasters, along
with its national distributor and service
network, has been a force in supply and
service of high quality mine specification
pressure cleaning equipment to the mining
and associated industries for many years.
Its unique ability to supply off-the-shelf
components and custom-built pressure
cleaning equipment to meet clients
special requirements ensures customers

get exactly what they need with minimal


fuss.
Most often what clients require does
not come off the shelf or out of a box ready
to go.
By listening to clients needs and using
its own expertise, ThoroughClean Water
Blasters can supply operational ready
equipment anywhere in Australia with
confidence.
It does not matter what stage of the
cycle the mining industry is in; there is
a consistent requirement for machine
and asset wash down after shift, prior to
maintenance or before leaving site.
Having a site assessed to ensure
any investment in pressure cleaning
equipment offers a return in performance
and longevity is what ThoroughClean
Water Blasters does best.
Investing in a quality ThoroughClean
Water Blasters product is not expensive;
it is priceless.

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www.miningoilgas.com.au

OCTOBER 2014

Vehicle & Wheel Wash Systems for Mining

Wash system portfolio spans globe


FROM its head office in Sydney and offices
in Brisbane and Perth, Fleetwash is a wholly
Australian, family owned company perfectly
positioned to service the nations mining
industry.
Having pioneered the heavy transport and
mining wash industry since 1985, Fleetwash is
committed to the Australian mining industry in
a way that is envied by smaller operations.
Its team has delivered more than 3000 wash
solutions globally, and the company is proud to
include some of the worlds largest infrastructure

projects in its wash system portfolio.


In keeping with the philosophy A clean
fleet is a clean image, Fleetwash has built
a clean reputation for the in-house design,
manufacture and commissioning of some of
the worlds most powerful and robust heavy
vehicle washing systems.
Fleetwash general manager Patrick
Whitton said the companys comprehensive
approach to major contract works provided
a complete design and construction package,
which mitigated risk for its clients.

Industrial cleaners to mine specifications


FOR more than 12 years Airless & Pressure
Cleaner Services (APCS) has supplied
cleaning equipment to Townsville and
North Queenslands mining, transport, local
government, trade and agricultural sectors, as
well as the general public.
Under new ownership since late last year,
APCS has turned its focus to commercial and
industrial cleaning, with a special commitment
to the mining industry.
APCS offers sales, repairs and warranty
services for a range of pressure cleaners, airless
spray equipment and process equipment,
including Spitwater, Graco and Atlas Copco
products; Gracos Husky diaphragm pumps are
particularly popular in Australian mines.
The company knows the importance of the
mining industry to Australias economy and
future and its products are offered to full mine
specifications.
Having outgrown its current premises,
APCS is set to move to a new property next
month, allowing it to stock a much larger range

of products and offer an even better quality


service.
The new premises feature a large upstairs
conference room, which APCS plans to use
for demonstrations and information sessions
targeted at the mining industry.
The wide range of high pressure cleaners on
the market means some units are not suitable
for every application, depending on litreage,
pressure, fuel source, drive, tip size and more.
A good understanding of which unit best
suits the necessary applications will ensure
companies get the best quality, lowest cost
solution to their cleaning needs.
APCS in-depth knowledge of its products
ensures clients have the top-quality cleaning
service they need cheaper and faster than with
other suppliers, with information held on file
for any future requirements.
Building on its strong reputation in
North Queenslands mining sector, APCS is
determined to expand to cover major mining
companies across Australias north.

We are professional and dedicated


manufacturers of wash systems it is all that
we do and we are very good at it, he said.
A core asset to mine infrastructure is the
humble wash down bay.
Big or small, every mine operation is
required to maintain environmental compliance
through efficient water technology whilst
ensuring asset protection through robust and
effective wash management systems.
The Fleetwash range is extensive. The
Heavy Duty Deluge range is a popular

off-the-shelf design for automated light, road


registered heavy vehicles and road trains,
while the Mine Haul Super Wash range
provides unmatched wash performance for
haul and ultra-class vehicles looking for
pre-maintenance wash down. Each model
is interchangeable with options to meet site,
operational and budgetary requirements.
From feasibility to design, from construction
to hand over Fleetwash partners with
Australias mining industry to provide effective
investments in wash infrastructure.

Easy fleet maintenance


with portable wash downs
BAGULEY Engineering has been supplying
portable vehicle wash down equipment for
the past 20 years.
These units are mainly used for the
mining, transport and environmental sectors
throughout Australia.
Baguleys product range includes fully
automatic drive-through facilities for light
and heavy vehicle fleets, under body and
wheel cleaning units and portable manual
wash bays.
The company also supplies fully recycled
clean-down trailers, which are also available
in a skid mounted version, if preferred.
These are widely used in Queensland to
help stop or eradicate the spread of weeds
and seeds, Baguley general manager Tony
Hurst said.
All used water and waste from the
vehicles is collected and then filtered. The

water is reused while the remainder is


captured in a containment vessel.
Regular cleaning not only increases the
life of most vehicles but contributes to fleet
maintenance.
Baguley Engineering is one of a few
Australian companies offering mobile or
portable vehicle and wheel wash down
systems, fully customised to suit specific
requirements.
We design and manufacture the most
appropriate system for your industry to
ensure your continued success, Mr Hurst
said.
Our vehicle wash systems are an easy
to deploy, cost-saving alternative. Not only
are the systems fully automated, they are
completely mobile and can be transported
to your site, set up and operational within a
short period of time.

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OCTOBER 2014

Earthmovers & Excavators

Turnkey mining
services, equipment
and technologies
LAUNCHED by Bill and Joe Catalano in
Brunswick WA more than 50 years ago,
B&J Catalano has evolved into a diversified
mining, civil and bulk haulage company.
Now in its second generation of family
owners and directors, B&J Catalano
has an experienced management team
and more than 300 employees. It offers
heavy earthworks, road construction and
maintenance, crushing capabilities, port
and mining services, site rehabilitation
services, material supply, and bulk haulage
services to the construction and mining
industry throughout WA.
B&J Catalano has a modern,
well-maintained fleet of heavy equipment,
including a range of bull dozers, graders,
excavators, scrapers, off-highway dump
trucks, water carts, compaction equipment,
prime movers and trailers, including acid
and petroleum tankers, operating from its
offices in Brunswick, Perth and Geraldton.
The company prides itself on being a
technology leader, and was one of the first
companies in Australia to embrace GPS
equipment guidance technology. It now
uses GPS technology in the majority of its
mining, civil and on-road and off-road bulk
haulage fleet.
B&J Catalanos clients appreciate
dealing with a single source contractor,
which provides a range of services to its
business rather than adding complexity
and cost dealing with a range of contractors.

Handpicked tradespeople ready to help


FROM small beginnings in 2005, Mader
Contracting has expanded rapidly and now
deploys more than 170 staff throughout
the major mining regions of WA and
prominent mine sites interstate.
Mader is a provider of quality mechanical
tradespeople with qualified and competent
heavy duty diesel mechanics, auto and HV
electricians, boilermakers and servicemen,
as well as supervisors, planners and SAP
master data specialists available for short
and long-term labour hire positions.
The companys field service and

shutdown crews are second to none, and


with a large WA-based fleet of mine-spec
field service vehicles, Mader is always
ready to work throughout the Pilbara and
Goldfields regions.
Our staff are handpicked from the four
corners of the nation, meaning we can get
consistent, skilled labour to you fast, no
matter where you are in Australia, the
company stated.
All our employees are qualified and
inducted, have current police clearances
and most high-risk tickets, but above

all, they are motivated to work hard and


safely.
We can provide a flexible stand-in
workforce for unexpected absences, peak
loads, and holiday periods, or longer-term
roles for hard to fill positions.
We also operate our own modern
workshop facility, conveniently located
in Maddington with excellent access
to the major arterials. We specialise in
powertrain component rebuilds, as well
as general repairs and rebuilds on most
mobile mining equipment.

Experimental program extends engine life


A disciplined maintenance regime at
Fortescue Metals Groups Cloudbreak iron
ore mine has produced very positive results,
successfully extending the operating life of
an engine.
The QSK engine, operated by power
equipment professional Cummins, was
originally scheduled for rebuild at 15,000
hours; however, it instead achieved 21,000
operational hours following the experimental
life-extension program.
Fortescue has 18 Cummins-powered
excavators at Cloudbreak, with 15 excavators
operating at any one time. Almost all have
dual-engines, providing between 2400 and
3000 horsepower units. The machinery

can typically handle about 470,000t of


overburden and ore in one 24-hour period.
The Terex-Bucyrus brand excavator fleet
includes nine RH340s, six RH170s and three
RH120s, with all breakout-force generated
by Cummins.
Fortescue targeted the 560t RH340s for
its engine-life extension program. The units
use Cummins dual-QSK45 engines, each
pumping out 3000hp in total.
Cummins
life-to-overhaul
recommendation for the QSK45 was 15,000
hours; however Fortescue increased this to
20,000 hours.
Fortescues reliability engineering team
carried out the project extension under strict

monitoring, with oil sampling completed


every 500 hours and full oil replacement
every 1000 hours.
No problems were detected in the oil
reports, and the engine life was successfully
extended to 21,000 hours.
The six 390t RH170 excavators at
Cloudbreak have also achieved the highest
availability in the fleet (averaging 91 per
cent).
They are powered by dual 38L Cummins
KTA38 engines, are equipped with large oil
reserve systems and deliver 2400hp.
With mid-life maintenance, the KTA38s
have not yet experienced any issues in
reaching 18,000 hours.

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OCTOBER 2014

Earthmovers & Excavators

Celebrating 30 years of quality


PRIVATELY-owned Wear Parts Services
(WPS) has supplied top quality products
and services to the mining and construction
industries since 1984.
With a focus on mining, construction,
minerals processing, contracting, rail
lubrication and heavy industries, WPS
supplies products from a range of
internationally recognised brands including
Air Sentry, Baldwin, Blademaster, Conoco,
Digga, Domite, Italricambri, Kennametal,

QHi-Rail, Technogenia and Whitmore.


WPS managing director Mike Kelly, who
started the business from scratch 30 years
ago, said customer service and quality
products were at the root of the companys
success.
The company has always been
committed to excellent service and always
will be, Mr Kelly said.
Our ISO 9001:2008 accreditation
ensures customer satisfaction.

We have always been ready to tailor


solutions to meet customers needs. That
is why we have such a broad range of
direct replacement parts, as well as WPS
products which have been developed to
suit particular applications and customer
requirements.
WPS has a comprehensive range of
products to suit large dozers, including
direct replacement GETs, as well as
customised wear protection kits for blades,

push arms and rippers. WPS uses tungsten


carbide and other wear-resistant materials
to extend wear-life, reduce down time, and
minimise handling time and risks. The kits
were specially developed to reduce costs in
procurement, storage and fitting.
WPS holds large stocks to meet
customers
requirements
and
has
preferred supplier status with major
companies across the industrial and
resources sectors.

Rock cutting equipment for mining and infrastructure


AUSTRALIAN-owned Echidna designs
and builds a wide range of high quality
earthmoving and mining attachments,
specialising in rock and concrete cutting
for excavators.
Its products include tungsten-carbide
and diamond rocksaws, stump and rock
grinders, high-torque augers and rotators
for excavators from 1t up to 60t.
Echidnas engineers lead the way with
excavator rocksaws, making Echidna
attachments powerful, robust and virtually
maintenance free.
Echidnas rock cutting systems expand
the range of utility of attachments, increase
productivity, reduce costs of consumables,
and increase safety. Its rock and concrete
cutting systems include fully automated
and self-powered concrete cutting systems;
remotely operated gantry systems; and tilting,
rotating rail systems for cutting at angles.
With the basic Echidna drive unit and
one of a range of tools, an excavator can

quickly become a pump, winch, surface


grinder, core drill, woodsaw or stump
grinder; adding a rail system to a rocksaw
will convert it to a powerful excavator-held
and powered wall-saw.
Echidna offers custom design for
attachments and for complete systems.
The company takes pride in its ability to
rapidly come up with solutions to suit the
needs and budgets of all clients.
Echidna
machines
have
been
successfully used in limestone, sandstone
and granite quarries in Australia,
Canada and Norway; mine infrastructure
works; major demolition works in Zurich,
Switzerland; underground slate mining in
Czech Republic; and civil construction and
utilities works in Australia
Safety is a high priority for Echidna,
and its products are designed with safety
features such as automatic blade breaking,
double swiveling shields and reversible
rotation on its diamond rock saws.

Echidnas range of earthmoving and mining equipment attachments are powerful and high quality.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

101

Tracking & Tagging

Business smartphone built tough


WHETHER out on site or in the office,
resources industry workers need a device that
offers toughness and durability as well as
access to business-critical applications.
While modern smartphones are small,
sleek and easy-to-use, most fall short on
features needed in a business environment.
The Motorola TC55 offers the best of both
worlds.
Supplied by Australian mobile data
specialist Barcode Dynamics, the TC55 comes
with the Extensions system by Motorola
Solutions, transforming Android from a
consumer operating system to one designed
for enterprise
The TC55 features best-in-class data
capabilities to ensure workers can capture any
type of data at the press of a button, including
an integrated barcode scanner, optional 1D/2D
ring-style Bluetooth scanner, eight megapixel

camera and near field communications.


Its dual mode touch screen means workers
can use the device with or without safety
gloves on, with a stylus, in bright sunlight and
even when wet.
Dual front-facing speakers offer four times
the loudness of regular smartphones and two
microphones and noise cancelling technology
ensure crystal clear calls even on site.
Vitally for workers in harsh resources
environments, the TC55 is packed with
durability features drop and tumble
specifications, a Corning Gorilla Glass 2
display and IP67 sealing, plus extra long
battery life to ensure the device stays on
through a full shift.
With offices in Sydney and Brisbane,
Barcode Dynamics can help any business, big
or small, with their mobile and data capture
needs.

The Motorola TC55 is built for business.

RFID offering asset management solution


IMPLEMENTING a solution to track and
manage high value or desirable assets,
particularly tools and equipment used
in mining and construction, provides
significant benefits to business if done
correctly.
Check in, check out, stocktake and audits
are common processes requiring appropriate
asset identification methods to make them
reliable and quick.
Historically this has been done using

barcodes, but radio-frequency identification


technology (specifically UHF RFID) has
reached a point where it can greatly improve
the return on investment when used in
conjunction with RFID aware software.
However RFID technology does require
some care when it comes to selection and
deployment, making it wise to choose an
experienced full service supplier one
who can provide not only the components
required, but also a range of technical and

professional services.
UHF RFID tags enable invisible reading
of multiple tags from a distance. For those
who have little or no experience with RFID
but imagine it is likely to become part of
their asset management toolkit, it is highly
recommended they invest in an evaluation
kit that provides some exposure to tag
performance on assets.
Not all tags are the same, which is a
good thing, but managing expectations of

RFID users is a critical success factor and


first-hand experience is the best way to
begin the RFID journey.
Comware has more than 20 years
experience implementing asset management
solutions and has conducted exhaustive
tests on a variety of RFID readers, software
and tags.
Centrally
located
in
Adelaide,
Comware should be the first choice for
independent advice.

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Tracking & Tagging

Absolute control over assets

Trackem owner Kashif Saleem helps clients


effectively manage assets with real world
location and status data.

IN the current resources projects


environment, managing costs has
become the new mantra and efficient
asset management can significantly
save in lost time and money.
Asset tracking software should be at
the core of an organisations strategy
for effectively managing its assets,
providing visibility into the real-world
location and status of those assets.
With as much as 67 per cent of craft
labour time being spent on non-value
adding work such as searching for
materials, projects have huge untapped
potential to realise savings, Trackem
owner Kashif Saleem said.
Dont look at how much asset
tracking and control is going to cost;
look at how much its going to cost if you
dont have it.
Mr Saleems Perth-based company
Trackem has been helping clients
including Woodside, BHP Billiton, BP,
John Holland, Leighton Contractors,
Worley Parsons and Downer EDI save
time and money through asset tracking
and control.
Trackem uses a unique combination
of radio frequency identification (RFID),
GPS and barcode technology to track
assets across all stages of the project
cycle. The system enables staff to carry
a complete asset database in the palm
of their hand thereby allowing in-field
repositioning of assets and collection of
other important asset data.
Since the companys modest beginning
in 2006, demand for its patented
system has snowballed with Leighton
Contractors implementing the system on
the Chevron-operated Gorgon Project.
With more than 4 million items tracked
across 40 projects, Trackem delivers in
providing absolute control over assets.

GPS device offers many


real-time safety benefits
THE safety of lone workers can prove
problematic for companies in the mining
and oil and gas industries, making it
difficult for their fleet.
In a particular case where an accident
occurred on a remote outpost, and the
driver was the only witness, it could
have taken hours before concern was
raised and locating the driver would
have proved extremely difficult.
However, the company that owned
the vehicle had GPS fleet management
technology installed, which records and
tracks the location and behaviour of its
vehicles.
The device was able to send a real-time
notification to senior staff after sensing
the vehicle had made impact, informing
them of the incident and the exact
location of their driver.
Securatrak training manager Kelly
Hunt assists companies on a daily basis
to develop their skills, maximise their
data and ensure fleet safety.
Knowing how to drill into the correct
data is crucial in the event of an accident
as it can help you to understand the
events leading up to the accident and
what actually occurred during the
accident itself, she said.
The software can also allow you to

manage driver behaviour, helping you


educate your drivers in safer driving
practices.
GPS technology integrated into fleets
can serve more than just monitoring
vehicles and driver behaviour.
Safety
investigations
can
be
completely avoided by fully utilising the
system to effectively manage fleets.
We encourage customers to look at
emergency situations, such as preventing
vehicles from entering danger zones, or
if there is a bush fire, to know exactly
where vehicles are and help drivers to
safely navigate their way out of trouble,
Mrs Hunt said.
Proactive management of fleets can
reduce accidents and safety breaches,
which have strong commercial outcomes.
A key technology to achieve this is the
use of in-vehicle management systems
(IMVS).
Aberdeen Group study Service
Workforce and Fleet Management
revealed that across 200 enterprises
which have adopted IVMS technology
there was a consistent 22 per cent
decrease in fuel consumption due to
a 31 per cent reduction in kilometres
travelled and a 25 per cent reduction in
idle times.

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OCTOBER 2014

Custom Moulding for Mining

Seeking partnerships in
the resources industry
PROFILE Injection Moulding specialises
in the manufacture of a wide range of
commercial and industrial plastic products.
Profile Injection Moulding is interested
in partnering with companies looking to
substitute metal products for plastic to aid
with corrosion and friction reduction and
reduce the weight of components.
There is a wide opportunity for plastic
substitution of various mechanical
fittings, couplings and guards. New
plastics can provide a cost effective,
strong and environmentally sound
alternative to metal ones. Maintenance
and corrosion costs can be a major
issue in remote or coastal locations and
plastic can be a substitute to metals.
Profile Injection Moulding welcomes the
chance to discuss these opportunities
in more detail with interested parties
by telephone or in person at its

Plastics can provide a cost effective and environmentally sound alternative to metals.

manufacturing plant in Perth.


Profile Injection Moulding delivers
professional and cost effective products
and services. Backed by 20 years of
experience, Profile Injection Moulding
can process a full range of engineering
polymers and standard materials to suit
diverse customer requirements. The
company has plastic injection moulding
machines ranging from 100t through
to 650t. With an experienced team of
manufacturing professionals, Profile
Injection Moulding has the versatility
to custom mould a vast range of plastic
products from all business sectors.
Profile Injection Moulding works
with clients from inception, design,
engineering and manufacturing through
to market positioning.
Call Profile Injection Moulding for a
free consultation.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

Freight Forwarders

Fast, reliable and


cost-effective freight
LOGISTICS specialist Toll Global
Forwarding provides a comprehensive
suite of domestic and international
freight forwarding and advanced supply
chain services.
In project and resource logistics, only
the highest capability will do. When
precision equipment breaks down, the

speedy replacement of even the smallest


part can save millions of dollars. Toll
Global Forwarding has the capability and
efficiency to ensure its clients business
continuity without disruption to output;
and the ability to offer life-of-project
logistics with specialised services, even in
the most rugged or inhospitable regions.

Toll Global Forwarding provides a comprehensive suite of domestic and international freight
forwarding and advanced supply chain services.

105

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Doors, Docks & Ramps for Mining

Doors guaranteed on time


FOR more than 30 years Larnec Doors &
Systems has been a leading supplier of
metal and timber doors to the building
industry.
Larnec specialises in doors for the
commercial and industrial sectors as well as
for containers, garages and transportable
buildings.
Using
the
latest
construction
technology, Larnec manufactures its doors

to Australian government standards using


the best Australian-made materials.
Its products are easy to install,
maintenance-free and come with full
technical and problem-solving support.
With a comprehensive 24-month
factory-backed guarantee on all products
and
on-time
delivery
guaranteed
nationwide, Larnec can become the solution
to any project need.

Larnec Doors & Systems products are manufactured to the highest standards.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

Electrical Contractors

Contractor committed
to quality, safety and
community
QUEENSLAND-owned and operated
electrical
contractor
Regional
Instrumentation and Electrical Services
(RIE Services) offers technical services
and expertise to the mining, oil and gas
and power sectors.
RIE Services specialises in electrical
and instrumentation services in hazardous
areas. With a leadership team with more
than 45 years of combined experience in
the field, the company is committed to
quality, safety and the environment.
Based in Southeast Queensland, RIE
Services guarantees quality, reliable,
efficient, safe and professional services
in brownfield projects, calibrations
and commissioning for all clients and
customers.
The ISO-accredited company has
worked on a number of large resources
projects in Queensland, including
as a contractor for Queensland Gas
Companys operations in the Surat and
Bowen basins.
Its highly skilled workforce has
delivered services on time and met the
specifications and requirements within
the project scope each time.
The key to RIE Services success is the
quality of its team, with staff drawn from
across the manufacturing, maintenance
and construction industries and bringing
with them skills and experience in the
instrument and electrical fields.
With a commitment to supporting the
community it operates in and an emphasis
on workplace health and safety, quality
and risk management, RIE Services has an
exceptionally good record across the board.

RIE Services has worked on large resources projects across Queensland.

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historical

Australias first mineral


Mark Scott
AUSTRALIA has long held the title of worlds
largest coal exporter and the countrys biggest
ever coal mine, Adani Groups Carmichael
project in Queensland, received Federal
approval earlier this year.
Coal has been at the forefront of Australias
economy for more than 200 years; it was the
first mineral resource found by European
settlers in the late 1700s and became the
countrys first-ever export soon after.
In the 2012-2013 financial year Australia
produced more than 525 million tonnes of
coal and exported more than 335mt, making
coal the second-largest Australian export and
adding $39.8 billion to the economy.
From humble beginnings, coal has had
its ups and downs in the past two centuries
but continues to be a mainstay of Australias
mineral wealth.
Early discoveries
The first mention of Australian coal came in
the accounts of NSW Secretary of the Colony
Lieutenant-Colonel David Collins, who sailed
with the First Fleet in 1788.
Less than 10 years later he recounted the
tale of a shipwreck survivor, William Clark,
whose vessel Sydney Cove had gone to ground
off the coast of Tasmania in early 1797.
After taking their longboat to the mainland,
Clark and his crew were forced to trek on foot
some 600km to Port Jackson. Along the way
they encountered coal exposed in a cliff face,
which they used to make fire.
Clark reported the find on his triumphant
return to the colony and explorer George Bass
was sent south to investigate.
Halfway between what would become
Sydney and Wollongong, at a town that would
be unimaginatively named Coalcliff, Bass
found a large and potentially valuable vein of
coal extending through the cliffs.
But the chances of using the mineral were
slim.
By the specimens of the coal which were
brought in by Mr Bass, the quality appeared
to be good; but, from its almost inaccessible
situation, no great advantage could ever be
expected from it, Colonel Collins wrote.
Were it even less difficult to be procured,
unless some small harbour should be near it, it
could not be of much utility to the settlement.
But the colony had its eye trained for coal
and before the year was out, an act of piracy led
the settlers to their dream deposit.

The Clifton Colliery, seen here circa 1900, was located near Coalcliff the site of the countrys first coal
discovery.

In September 1798, the crew of the


government ship Cumberland mutinied en
route to the Hawkesbury River and headed to
sea.
Two ships were dispatched to follow, led
by Lieutenant John Shortland, but returned
almost empty-handed after 13 days the
mutineers were nowhere to be found, but the
ship had stumbled across something far more
valuable.
About 160km north of Sydney, Shortlands
ship, the Reliable, entered a river he named
the Hunter after the NSW Governor and
found massive quantities of coal lying along
the riverbed.
A year later, a ship packed full of NSW
coal departed the harbour, bound for Bengal
Australias first commodity export.
A convict camp named Kings Town was
established at the site in 1801 but was soon
abandoned; in 1804, Governor King made a
concerted push to establish a secondary penal
colony in the area.
Initially called Coal River, the settlement
soon took the name of Englands major coal
port Newcastle. Just over 200 years later,
Newcastle port would claim the title of worlds
largest coal exporter.
Tragedies
Throughout the nineteenth century, coal
became an important part of the Australian
colonies survival.
The mineral was found at Cape Patterson
in Victoria in 1825; near the Moreton Bay
settlement in Queensland in the 1820s; on
the Murray River in WA in 1846; between

The Mt Kembla coal mine explosion remains Australias worst mining disaster.

Tasmanias Don and Mersey rivers in 1850;


and at Kuntha Hill in northern South
Australia in 1889.
According to the Australian Bureau of
Statistics, the colonies produced a combined
1.8mt of coal in 1881, the first year with
reliable records available.
Twenty years later the newly Federated
countrys production had shot up to 6.88mt,
with NSW alone responsible for almost 6mt.
But the industry did not come without risk
the two worst mining disasters in Australias
history struck within 20 years of each other in
NSWs coal-rich Illawarra region.
On 23 March 1887, an explosion tore
through the Bulli Colliery, killing 81 workers.
Methane gas had flooded the pit and was ignited
by a naked lamp, devastating the operation and
almost instantly claiming dozens of lives.
At the time, the Sydney Morning Herald
called it the most appalling work of death yet
written on the pages of Australian history.
These were men and boys with the full
blood running quickly through stout limbs,
busy with work for the present, and hearts
strong with hope for the future, and then in a
moment their life was struck out like a spark,
the Heralds correspondent wrote.
They lay as mute examples of mans utter
littleness.
An inquiry into the disaster was scathing,
calling on mining companies to cease the use
of naked flames in coal mines; yet on 31 July
1902, just 20km away, another explosion
would claim an even higher toll.
About 250 men were in the Mt Kembla mine
when, once again, a naked light ignited gas in

the pit, sparking an explosion large enough to


be heard 7km away in Wollongong.
By the time the wreckage was cleared 94
miners and two rescuers were dead, leaving
120 children without fathers.
A mining population in the coal districts
may be said to live in the shadow of impending
possibilities of this tragical [sic] nature...
and it does not require much exercise of the
sympathetic faculty to enter into the feelings of
those terror-stricken women and children who
crowded yesterday towards the entrance to the
Mount Kembla [mine], the Sydney Morning
Herald editorialised.
This time a Royal Commission was held
into the disaster, finding gas and coal-dust
were responsible for the explosion. It called
for naked lights to be replaced with safety
lamps to prevent future incidents a change
not adopted industry-wide until the 1940s.

Coal has had its ups


and downs in the
past two centuries
but continues to be a
mainstay of Australias
mineral wealth.
World leader
But as the twentieth century progressed,
mining accidents decreased and production
soared, reaching 14 million tonnes per annum
in the mid-1920s.
More than 1mt of coal was exported each
year through much of the 1920s, but the Great
Depression saw coal production slump and
exports declined to 50,000t in the 1940s as
petroleum became more and more prolific as
an energy source.
Coal continued its steady rise through
the 1950s and 1960s, spurred by new finds
in Queenslands Bowen Basin and Japans
growing appetite for energy.
The 1970s oil crises breathed new life into
the coal industry and in 1984, Australia finally
surpassed the US as the worlds leading coal
exporter, with exports reaching 75.9mt.
While the industry has come under
pressure over environmental concerns
since the 1990s, continued global demand
has ensured Australias coal will remain as
valuable in the twenty-first century as it was
in the eighteenth.

Newcastle Coal Mining Companys coal arch in Australias main coal port, Newcastle, in 1897.

www.miningoilgas.com.au

THE AUSTRALIAN MINING REVIEW OCTOBER 2014

109

leisure

A fairytale holiday experience


Emma Brown
ESTABLISHED as a Viking fishing village
nearly 1000 years ago, Copenhagen is now the
most visited city in Scandinavia. Each year
millions of people stroll down the medieval
cobbled streets, taking in the friendly and
charming atmosphere.
Copenhagen has long been known as
the birthplace of childrens storyteller Hans
Christian Andersen, and the home of The
Little Mermaid statue and more recently
for the fairytale wedding between Australias
Princess Mary and Crown Prince Fredrik but
this gem of a city has a whole lot more to offer.
A royal affair
Copenhagen is dotted with exquisite royal
castles, statues and regalia, making any visit
a grand experience. The Rosenborg Castle,
home to the Danish crown jewels, is in the
citys most popular park, the Kings Garden.
Built in the early seventeenth century by
King Christian IV, the historic building is
breathtaking, with well-preserved rooms full
of royal art treasures. Visit the Knights Hall,
which is complete with coronation thrones and
three life-size lions standing guard. The castle
attracts hordes of tourists each year, eager
to sneak a peek inside the castle walls and
witness the changing of the royal guard. Every
day at noon the guards make the journey
through the city from Rosenborg Castle to
Amalienborg Palace the Royal Familys
winter residence.
The palace is made up of four grand palaces
on a square and is just a short walk from The
Kings New Square. It is common to see the
Royal Family around town. The Prince and
Princess are often spotted leaving the palace;
during summer, visitors can get a photo with a
royal guard instead. Stop in at the Copenhagen
Cathedral (The Church of our Lady) and see
where the Prince and Princess of Denmark
exchanged their vows.
Art and culture
Copenhagen is buzzing with culture.
The National Gallery of Denmark is the
countrys pre-eminent museum of art and
features a range of Danish and international
art from the past seven centuries; from the early
Renaissance to cutting-edge contemporary.
The museums permanent exhibitions are free
to visit, however an admission fee applies to
certain exhibits.
The world-famous Tivoli Gardens is the
second-oldest theme park in the world. The
fairground is described as a unique mix of big
thrills and traditional Danish culture, catering
to both the young and young at heart. Tivoli
opens between April and September and is the
worlds most visited seasonal theme park. Its
mix of rides, attractions and performances are
what makes the place so special.
The Little Mermaid stands prominently by
the waterside at the Langelinie promenade.
Created by Edvard Eriksen in 1913, the statue
is based on the fairytale of the same name by
Hans Christian Andersen and has become a
major tourist attraction.
If you are looking to explore something
really different, pay a visit to the hippie
town of Christiania. The 41-hectare site was
transformed in 1971 from a military camp
to a communal living space for those seeking
an alternative way of life. The self-governing
town began as a social experiment. It is a
society within a society and has undergone a
lot of changes in its time. The commune is full
of unique buildings, markets and is home to
around 1000 people. Take a tour and learn all

The changing of the guard takes place every day at noon.

about this controversial existence.


Food and nightlife
If you are fond of good food, then Copenhagen
is the city for you. It is known as one of the
worlds great gastronomic hotspots with
more Michelin-starred restaurants than
any other city in Scandinavia. If Michelin
dining stretches the budget, there are
plenty of informal places to dine. Fresh food
and ample portions go hand-in-hand with
Danish dining. Famous dishes to try include
a Smorrebrod (open sandwich) or, of course,
meatballs. Dont leave it too late to sit down
for dinner as restaurants are known to close
early in Copenhagen, with many eateries
not taking orders after 9pm.

that is easy to explore. It is renowned for its


biking culture and is one of the worlds top
cities for cyclists. Tourists are recommended
to hire a bike and explore the city on wheels,

however it is easily accessed by foot, public


transport or boat.
For more information, head to
www.visitcopenhagen.com.

The city is known


as one as one of
the worlds great
gastronomic hotspots.
The Danes are well-known for their work
hard, play hard philosophy and while it may
be quiet in the town after dark during the
week, the nightlife ramps up on weekends.
Friday and Saturday nights are when the
serious partying takes place, with clubs
kicking off around 11pm.
If the party scene isnt for you then why
not check out the Royal Danish Opera. The
multi-million kroner venue is well-known
for its exuberant facades, state-of-the-art
stages, lighting and acoustics.
Copenhagen and jazz go hand-in hand
the city has three well known haunts,
including the Copenhagen Jazzhouse,
Jazzhouse Montmartre and Palae Bar.
Staying and going
There is an array of accommodation to choose
from in Copenhagen catering to all budgets
and expectations. It also has the worlds
smallest hotel Hotel Central. With just one
room available it is wise to book early.
Although Copenhagen is the second
largest city in Scandinavia, it is often
described as a small and manageable city

Amalieborg Palace is where the Danish Royal family reside during the winter months.

Bike riding is the preferred method of travel in the city.

110

THE AUSTRALIAN MINING REVIEW

www.miningoilgas.com.au

OCTOBER 2014

the interview
HLB Mann Judd managing partner and national mining
and resources industry group chair Norman Neill
HLB Mann Judd managing partner
Norman Neill spoke to Jane
Goldsmith.

Q. What is your background?


A. Im a country boy, and grew up on a
dairy farm just outside Bunbury. I went
to Bunbury Senior High School and from
there went to Edith Cowan University,
where I studied a Bachelor of Business
at the Bunbury campus. I graduated in
1991 and started at Mann Judd as it
was called in those days in 1992. My
career has carried straight through
Ive now been here more than 22 years
and I have seen many changes in the
WA business landscape.
Im a proud chartered accountant and
a member of the Governance Institute
of Australia. In 2001 I completed a
graduate diploma of secretarial
practice as I saw a real need to
develop skills in the area
of governance.
Q. How did you
reach your
current role?

A. Ive always

been here at
HLB. People ask
why Ive stayed
here so long,
and it essentially
came down
to the people
I work with
internally
as well as
our clients
and the
opportunities
Ive received
along the way.
At all points in my
career where Ive
wanted development
and expansion,
HLB was able to
provide those

opportunities.
I began as a graduate, so I did
various jobs such as auditing and tax
returns. Within the first few years I
concentrated on auditing and support
services, independent accountants
reports and prospectus reports. I
worked my way through the ranks; I
became a partner in 2003 and in the 10
years preceding that I was in various
managerial and supervisor roles.
In July this year I became the
managing partner of the firm in WA,
and Im keen to develop our leadership
culture.
The chair role is one of coordination
theres the behind the scenes items,
like chairing meetings, but mostly
it is about being a figurehead and
providing a point of contact for mining
representatives to share their ideas.

The group we operate is very focused


on information-sharing and stimulating
industry health.

Q. What role does HLB Mann Judd


fulfil within Australias mining and
resources sectors?
A. We are a network of firms across the
country. In WA, our particular skill set
relates to the junior end of the mining
and exploration market.
Theres no doubt that the junior end
of the market is always resource-poor
from a financial perspective. Our role is
two-fold its about adding value to what
we do in our roles as accountants and
auditors, as well as adding value to the
mining industry. The mining industry
gains value from our experience, as we
engage with a very broad range of people
and companies across the industry and in
every state.
Q. What are the most

challenging aspects of your


role?

A. Internally, it relates to

harnessing the people and physical


resources we have across the
country, and coordinating them
into something that can add value
to our clients.
Externally, it relates to
scope: the mining and resources
industry includes huge numbers
of clients and potential clients
from our focus on junior miners
and explorers, to the major
companies, as well as industry
service providers and so on.
Often the size of the sector can be
one of the biggest challenges, to
determine what people want and
what is useful.
Its also sometimes difficult to
make accounting and tax changes
sound interesting but we work to
provide the industry with relevant
information and advice.

Q. What has been the highlight of your


career to date?

A. Becoming the managing partner of


this firm was certainly a highlight; it also
presents some challenges going forward. I
commenced that role on 1 July. We have
a rotational system for the managing
partner role, which gives our partners the
opportunity to have a go within the role,
and then to step back again. It keeps the
firm fresh and promotes a bit more flow
with ideas and the direction of the company.
Other than that, becoming a partner in
2003 was another great highlight.
Q. What advice would you give to

someone looking to develop a similar


career?

A. Its about getting involved with the


sector youre interested in. People need to
get out, talk to others, network, and become
as informed as they can be a little bit of
knowledge can be dangerous. People need
to gain as much information as they can
within their sector so they can understand
what theyre doing.
Also, try not to be all things to all people;
understand where you best fit, where your
strengths lie, and work out how you can
make a difference.
Q. Given the current market, what do
you expect the next 12 to 18 months
will hold for Australias mining
industry?

A. No doubt about it, the market is


challenging but challenges create
opportunities. People may sit back for a
little while, but ultimately there will be
a level of innovation that will create new
opportunities things like mergers and
acquisitions particularly. That said, for
some companies its going to continue to be
really challenging. There needs to be a level
of energy to create opportunities which can
then flow into other groups.
Its been really difficult for Australias
resources industry to raise funds in the
recent past. Companies can often raise
small amounts of money to keep hanging
in there, without any news occurring to
excite investors. Companies begin to rely on
other things happening in the market more
generally, to try and stimulate interest
and excitement with their individual
projects. Often investment relies on
leadership within the industry itself,
and what initiatives leadership
bodies employ, to spark new
investment interest.
Into the medium term, the
industry has always been
relatively cyclical; clearly
were at a low point now. In
18 to 24 months, I would
hope there would be a lot
more activity than what
there is now.