ISSN 1833-3125 Supporting mining and industry in Queensland and the NT Supporting mining and industry in Queensland and the NT QME 2010 + Queensland Mining Industry Health and Safety Conference Labour Hire • Recruitment • Mining Supplies • 62 Archibald St, Mackay Qld 4740 Phone: 07 4952 5244 Fax: 07 4952 6733 www.globalproductsearch.com.au CALL 131 228 www.hastingsdeering.com.au TIVE au 20 years servicing the Mining, Marine, Power and Sugar Industries of North Qld Cairns 07 4055 1900 Townsville 07 4759 0100 www.dawsonseng.com.au July/August 2010 $2.75 inc GST where sold Abbot Point project Abbot Point project stacks up well for stacks up well for bulk handling firm bulk handling firm THIS EDITION • Robotics and the mine of the future • Engaging China - the pitfalls and payoffs • Cairns pitch for Pilbara FIFO business • Clermont poised to tap Galilee growth
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ISSN 1833-3125
Supporting mining and industry in Queensland and the NTSupporting mining and industry in Queensland and the NT
QME 2010 +
Queensland Mining Industry
Health and Safety Conference
Labour Hire • Recruitment• Mining Supplies •
62 Archibald St, Mackay Qld 4740
Phone: 07 4952 5244Fax: 07 4952 6733
www.globalproductsearch.com.au
CALL 131 228www.hastingsdeering.com.au
TIV
Eau
20 years servicing the Mining, Marine, Power and Sugar Industries of North Qld
Cairns 07 4055 1900 Townsville 07 4759 0100
www.dawsonseng.com.au
July/August 2010 $2.75 inc GST where sold
Abbot Point projectAbbot Point projectstacks up well forstacks up well forbulk handling firmbulk handling firm
THIS EDITION
• Robotics and the mine of the future
• Engaging China - the pitfalls and payoffs
• Cairns pitch for Pilbara FIFO business
• Clermont poised to tap Galilee growth
Manufacturers & Suppliers of...
Industrial Light Beam
Specialising in Structural Steel Fabrication and Erection
Locally owned for over 30 years
Fabrication and erection of structural steel andgalleries throughout QLD, NSW, NT and WA
All material is copyright and cannot be reproduced in part or in full by any means without written permission of the managing editor. The views expressed in this publication are not necessarily those of the publisher.
Address: .........................................U3/11 Carlton St, Kirwan, Q, 4817
Postal: ...................................................... PO Box 945, Townsville, Q, 4810
2 Go West, Young Man
Cairns development groups are hoping to secure direct links to Karratha in Western Australia to help the
city to become a fl y in-fl y out base for the booming Pilbara region.
3 Engaging AsiaTh is edition explores some of the hurdles to attracting Chinese investment, with a few tips from resource
sector insiders on how such deals can be sealed.
8 Osborne reborn Th e Osborne mine in north-west Queensland is “doing a Lazarus” thanks to Ivanhoe Australia, which has
purchased the operation in a bid to bring its own projects in the Cloncurry region online sooner.
11 Reel ‘em in A Mackay-based engineering fi rm believes the coal industry will embrace a new system it has pioneered to
carry out comprehensive dragline rope drum refurbishments in the fi eld.
36 Contract stacks up (COVER STORY)
An emerging Australian bulk materials handling company believes its contribution to the Abbot Point
expansion works north of Bowen will set it up to win further major projects.
Bulk Materials Handling Australia (BMHA) and German joint-venture partner FAM have started
commissioning the fi rst of four stacker reclaimers to be completed under a $135 million-plus contract.
39 Taking their cut A Clermont community group is working to position their town to make the most of the economic
opportunities presented by the emergence of the Galilee Basin as a major coal mining province.
July 2010
FEATURES7 Townsville Regional Capacity
10 Mackay Regional Capacity
12 Mt Isa Regional Capacity
14 Coal and Gas UpdateNews in brief across the coal and gas industries.
16 Industry Update - HardrockA comprehensive wrap of exploration and operations in Queensland and the Northern Territory.
18 Between Shifts
22 QME feature
29 Mining Health and Safety Conference
32 Processing
33 Emissions
34 Major Projects
35 Training
36 Materials Handling
37 Building Mining Communities
Managing editor: .........................Robert Dark m. 0417 623 156
Journalist: .........................Belinda Humphries m. 0439 726 074
Sales: ................................................p. (07) 4755 0336 m. 0417 623 156
Advertising booking deadlineSeptember edition: August 27
This driverless truck operating at the West Angelas mine in Western
Australia is an example of the advances in automation being
embraced by the nation’s resources industry. Story - Page 5.
Photo: Christian Sprogoe
www.miningadvocate.com.au
CONSOLIDATED PLASTICSAND EPOXY QLD. PTY. LTD
2 July 2010 | The Mining AdvocateNEWS
Industry ambassadors, “Team Australia” promotions and publicised land releases for exploration are among the tools the Queensland Government uses to sell the state’s resource potential in Asia. Queensland Treasurer and Employment and Economic Development Minister Andrew Fraser said the government continued to actively promote the state’s exploration and resource investment opportunities internationally.
Its program of land releases for mineral exploration had been particularly successful in attracting Chinese companies to Queensland, he said.
Mr Fraser said also the Department of Employment, Economic Development and Innovation produced an extensive range of promotional products to increase investor awareness of Queensland’s known resources and production as well as exploration and investment opportunities.
“Queensland also attends targeted seminars and conferences within Australia and overseas to promote mining investment opportunities,” he said.
“Under the banner of ‘Team Australia’ and in collaboration with Austrade, representatives of federal, state and territory Geological Surveys work co-operatively to present a national approach to exploration, and mining and petroleum investment.
“Australia is punching above its weight in the international arena for attracting mining investment.”
A key strategy in China over the past fi ve years had
been “Team Australia’s” promotional booth and presentations at the China Mining Conference, he said.
Th is approach is also being adopted for the 2010 World Expo Australian Minerals and Energy Resources Showcases in Shanghai in August.
Mr Fraser said the government had established Queensland Resource Industry Ambassadors to complement departmental promotional activities.
“Under this initiative, selected resource sector leaders are providing their time freely to promote resource exploration in the state and provide feedback on best-practice measures to attract and secure such investment,” he said.
Th e Northern Territory Government launched a four-year China Minerals Investment Attraction Strategy in 2007 as part of its Bringing Forward Discovery program to attract mineral and petroleum exploration funding.
NT Resources Minister Kon Vatskalis said the strategy targeting China had sparked more than $140 million in publicly announced investments in mining and exploration.
“Our work in promoting the Territory as an exploration investment destination though our China Minerals Investment Attraction Strategy is delivering real results, such as the recent $8.5 million investment by Teng Fei Mining in the TNG Manbarrum zinc-lead-silver project,” he said.
“Both of these companies were brought together through meetings arranged under our investment strategy.”
Cairns development groups are targeting the booming Pilbara region to increase the city’s fl y in-fl y out (FIFO) mining business.
Advance Cairns has applied for federal funding to devote a co-ordinator to building FIFO links, with a strong focus on companies operating in Western Australia.
With an unemployment rate above the national average, far north Queensland off ers a large potential labour pool as well as posing an attractive lifestyle option for personnel engaged in the mining industry, according to Advance Cairns chief executive offi cer Ross Contarino.
“If we had direct fl ights from Cairns to Karratha and places like that people might decide to move to Cairns and take up those opportunities,” he said.
“It would not be a hardship posting.”
Mr Contarino and Cairns Chamber of Commerce President Jeremy Blockey met with mining contractors in Western Australia in June to sell the capabilities of the Cairns region as a major FIFO hub for both the WA and Papua New Guinea mining sectors.
Mr Contarino said CITIC Pacifi c Mining was investigating a direct FIFO link between Cairns and Karratha while another company developing project in PNG was looking to establish a small base in Cairns.
He described the scale of resource sector growth in the West as staggering, with the state expected to require up to 500,000 more workers in the next decade as a result.
Gaining direct fl ights to Karratha would help
far north Queensland tap into the Pilbara
resources boom, writes Belinda Humphries.
“At the moment the Perth
airport is getting fairly congested
- there are not a lot of spots
left in the mornings for FIFO
services,” Mr Contarino said.
“Th ere are already FIFO
fl ights from Melbourne, Sydney
and Brisbane to Karratha - and
Cairns is closer than any of those centres.
“It’s probably about a four-hour fl ight from Cairns to the Pilbara and there are airline companies with capacity to take up those charters.”
Mr Contarino said the Cairns business delegation had bumped into quite a few people from the Cairns and Atherton Tableland area who were already making the trip to the Pilbara region to work via Perth.
Meanwhile, the high level of interest in mining positions during Centrelink’s Keep Cairns
Working Jobs Expo in late June has prompted plans for a mining specifi c jobs expo in the city later this year.
CITIC Pacifi c Mining, which is developing the massive Sino Iron magnetite project 100km south-west of Karratha, collected about 500 resumes during the expo, Mr Contarino said.
Th e unemployment rate in far north Queensland was 8.9 per cent in May – compared to a national average of 5.6 per cent -
after reaching a high of 13.8 per cent last September.
Demand for mining charter fl ights to the Northern Territory and north-west Queensland prompted Alliance Airlines to establish a permanent base with two Fokker 100 aircraft in Cairns in May.
Alliance general manager - commercial Ken Crawford said the city was developing very strongly as a FIFO hub.
MMG Century also recently resumed direct fl ights from Cairns to its Lawn Hill mine site.
Cairns looks west for FIFO business
Range of tactics to win attention
Advance Cairns chief executive offi cer Ross Contarino.
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“Quanxi” is the key to securing deals in China, according to Aquila Resources general manager – iron ore Russell Tipper.
“It’s basically relationships,” Mr Tipper said.
“You go over there and meet with people and, if you have operations here in Australia, invite them out to visit and build a relationship with key people.
“A deal will grow out of that if it’s something that suits both parties.
“I don’t think you can start with the deal – that’s a sort of western way of doing it.”
Aquila Resources recently reached a memorandum of understanding with the China Development Bank which will pave the way for “mutually benefi cial” investment and project fi nancing opportunities.
Aquila has a portfolio of iron ore, manganese and coal assets of particular interest to the Chinese steel industry as a source of raw materials.
Th ese include the Eagle Downs, Washpool and Red Hill coking coal projects under study in the Bowen Basin as well as an operating coal mine at Isaac Plains, Moranbah.
Th e Perth-based company already has strong ties with major Chinese steelmaker Baosteel, which holds a 15 per cent stake in Aquila.
Mr Tipper said there were no quick deals to be done with China.
His advice to junior resource companies and suppliers wishing to do business with Chinese corporations was to be prepared to lay the groundwork and get to know who they were dealing with.
“It’s a matter of establishing
a relationship with key players over there, and looking at larger, more developed players would probably be a reasonable tip in terms of focus,” Mr Tipper said.
Mr Tipper said there were many advisers people could turn to in terms of engagement with China.
“Th ere are more and more Australian companies opening offi ces over there who have Mandarin speaking people to give you advice on how to approach certain organisations, who their important people are and which parts of the government will be infl uential in how these companies make decisions – a lot will be state-owned entities,” he said.
“Th ere’s a fair bit of homework required and I recommend that people take advice across the board - legal and commercial.”
While there would always be those playing the scare card
regarding foreign investment
in Australia, including Chinese
investment, Mr Tipper said their
arguments did not stand up to
real scrutiny.
“Australia doesn’t generate
enough capital to achieve all it
needs to do,” Mr Tipper sad.
“It does need foreign
investment - whether that comes
from the US, China or Europe or
Japan......At the end of the day,
I don’t think the FDI (foreign
direct investment) from China
has been at a level that should
scare Australia.”
by the “big boys” - players such as Xstrata, Rio Tinto and BHP Billiton – who were unlikely to need to court Asian investors.
North Queensland in particular needed to establish a critical mass of medium and small projects putting money into exploration and other activity to really get noticed and attract more investment, he said.
Dr Li said one of the major hurdles when it came to doing business with China was the fact the parties often did not really know and understand each other.
One part of the solution was to promote better understanding between Australia and China about each other’s culture and business approach, he said
“Secondly, I think we do need to have a bit more promotion in terms of what the general rules are - the dos and don’ts and pros and cons in terms of what we need to prepare ourselves and our business partners for,” Dr Li said.
“Perhaps people need to be conscious that before signing something there’s a lot of work that needs to be done, a lot of trust that needs to be built...
“Th e project is important, but No. 1 is the people - whether you are comfortable with the people. Not just the guy signing the cheque, but also his team.”
Dr Li will be among the speakers at the James Cook University ( JCU) Asian Market Forum to be held in Townsville on July 23.
JCU Centre for AusAsia Business Studies director Professor Zhangyue Zhou said the university had been running the forum for the local business community each year since 2007.
“We’re hoping to attract more interest from the resources industry this year,” he said.
“We’re trying to get them updated about what’s happening in the Asian market in general and in mining industry development.”
Consolidated Tin Mines is among the Queensland mining interests looking to China for fi nance as it works to develop a project west of Cairns with potential gross earnings of $3 billion.
Managing director Ralph De Lacey recently returned from a round of discussions with potential Chinese off -take and joint venture partners in Shanghai.
“We had positive meetings and they made all the right noises – but I’ve heard that before,” Mr De Lacey said.
He said the company would continue to seek a strategic partner to help develop its Mt Garnet project, in the Herberton Tin Field near Cairns, at an expected cost of $124 million.
Mr De Lacey said part of his challenge had been to get potential investors to understand the scale of the Mt Garnet project, which was expected to produce up to 5000 tonnes of tin metal in concentrate per annum.
“It has the potential to earn $100 million per annum over a mine life of potentially 30 years,” he said.
Consolidated Tin Mines looked to China for backing as it seemed to have a strong appetite for minerals and the funds available to invest – making
it “the best chance of success at this time”, he said.
With crucial metallurgy work now progressing
well, Mr De Lacey said the Mt Garnet project
could start production in late 2012 or early 2013,
subject to Consolidated Tin Mines raising suffi cient
funds.
Mr De Lacey’s talks in Shanghai included
participation in the Queensland-China Trade
and Investment Forum at the invitation of the
Queensland Government.
Queensland Treasurer and Employment and
Economic Development Minister Andrew Fraser
said the forum, which had a major focus on energy
and resources, was one of the key events during
Queensland Week at Shanghai World Expo.
“Th e forum attracted more than 10 Queensland
participants and approximately 100 Chinese guests,
including senior offi cials from key government
agencies and business representatives from China’s
major mining and energy companies,” he said.
“Th e forum provided an excellent opportunity
to showcase Queensland’s abundant resources of
coal, coal seam gas (CSG) and minerals and to
raise Queensland’s profi le as a preferred investment
destination for energy and resources.”
Russell TipperAquila Resources
General manager – iron ore
Drilling at the Gillian deposit within the Mt Garnet tin project.
Tin miner among thoseto woo Asian investors
Build the relationship,then broker the deal
Dr Tao LiTL Geotechnics and Mining director
Dyno Nobel's new ammonium nitrate plant
takes shape at Moranbah
Moranbah offers first-class facilities for a well-
rounded lifestyle
Moranbah has a 10-hole,
72-par golf course
Thursday Island
Hinchinbrook
Island
Curtis I.
Townsville
Rockhampton
Cairns
Gladstone
Ayr
Hughenden
Winton
LongreachBarcaldine
Blackall
Normanton
Karumba
Croydon
Forsayth
Innisfail
Cooktown
Iron Range
Weipa
Bamaga
Ingham
Mareeba
Bowen
Q U E E N S L A N D
enden
ne
L A N D
Mackay
HOW TO FIND OUT MORE Over the coming months, we will be advertising a wide range of opportunities on our website and
seek.com.au. To lodge an expression of interest, register your details early by visiting
www.incitecpivot.com.au and in the 'Careers' section click 'Apply' and then 'Job Search'.
Searching for job number 650390 will take you to Expressions of Interest - Moranbah Operations.
Alternatively, email the Recruitment Manager Project Aurora, [email protected].
Opportunities don't appear every day. So you must bealert for chances to advance your career and improveyour lifestyle.
At Moranbah in central Queensland there's anopportunity to do both, thanks to the restart of IncitecPivot Limited's new Dyno Nobel ammonium nitrate plant.
Construction on the $935 million project restarted in Mayand now the company is looking for skilled men andwomen to operate it. This provides a rare opportunity tojoin a landmark project early, be there on day one andgrow with the operation.
The Moranbah plant will manufacture explosives for themining industry. It is being built to supply the rapidlygrowing, high-grade coal mining industry in the BowenBasin.
There are no fewer than 40 mines operating in the BowenBasin, extracting 100 million tonnes of coal annually. Theyinclude operations controlled by some of the world'sbiggest miners, including BHP Billiton Mitsubishi Alliance(BMA), Rio Tinto, Anglo Coal and Xstrata.
These operations export metallurgical coal to rapidlyindustrialising countries such as India and
China, linking Dyno Nobel with internationaleconomic growth.
All these mines need explosives and theDyno Nobel plant at Moranbah, when itreaches full production, will make 330,000tonnes of ammonium nitrate a year in
prill form and emulsion.
So it's not hard to see how it willbecome an integral part of
mining in the region in theyears ahead.
To man up the new plant,Dyno Nobel is nowpreparing to recruit forpermanent operations andmaintenance roles. We are
looking forexperienced
process operators at all levels, mechanical and electricalmaintenance technicians, chemical, electrical and mechanicalengineers and support personnel.
To learn more about the opportunities coming up, contact usas shown below.
Interesting lifestyleThe Dyno Nobel plant is located just five kilometres from theestablished town of Moranbah, which itself is just two hoursdrive from Mackay on Queensland's coast.
Moranbah has most of the services a family would need. Onthe education front there is a kindergarten, two primaryschools, a high school, a well-equipped library and a day-carecentre.
For health services there is a hospital and five GPs workingfrom two medical centres. For recreation, there is an aquaticcentre, team sports facilities, a golf course and access to arange of recreational facilities for boating, fishing, campingand bushwalking.
Naturally the town has an extensive shopping mall and a fullrange of retail and specialty shops.
About the companyDyno Nobel provides explosives products and blastingservices to some of the world's most successful miningcompanies. It is the No 1 explosives and mining servicessupplier in the United States and No 2 in Australia, as well asoperating in Asia.
Dyno Nobel is a business of Incitec Pivot Limited (IPL), an ASXtop 50 company which also owns Incitec Pivot Fertilisers,Australia's premier fertiliser supplier.
Through its Global Manufacturing operations, IPL isthe only Australian producer of urea fertiliser (inBrisbane) and ammonium phosphate fertilisers (atPhosphate Hill). This spreads the company'sexposure across both the mining and agriculturemarkets.
About the projectThe Dyno Nobel ammonium nitrate plant atMoranbah is due to be commissioned in early 2012.In operation it will have 85 employees.
The plant's location close to the major Bowen Basincoal mines will give it a competitive freightadvantage. A long-term gas contract enhances itsposition as a low-cost AN producer.
Already 90 per cent of its production has beencommitted to customers, underpinning theviability of the new world-scale plant from day one.
Moranbah will be the sixth ammonia plant in theIPL Group, highlighting the company's nitrogenmanufacturing competence.
5The Mining Advocate | July 2010 NEWS
Driverless trucks, remotely operated drill and blasting, automatic train systems.
Th ese are not fanciful visions of the future, but examples of the rapidly evolving technology already in operation on Australian mine sites.
Rio Tinto recently opened a new Perth-based operations centre to play a key role in its “Mine of the Future” program to build on such technological advantages.
Th e centre acts as a base for 200 controllers and schedulers and more than 230 technical planning and support staff , who use cutting-edge networks to control Rio Tinto operations up to 1500km away in the Pilbara region and ensure maximum effi ciency.
Australia is considered a world leader in the development and use of mining technology – including automation, according to CRCMining director of
research Professor Paul Lever. Th e trialling of automated
drills and operation of fi ve autonomous 930E Komatsu haul trucks at Rio Tinto’s West Angelas site in the Pilbara was a prime example, he said.
Professor Lever said CRCMining’s own work in the fi eld of robotics centred on the automation of large cable shovels.
“We have a shovel running at Bracalba Quarry, north of Brisbane, which is already demonstrating automatic control of some shovel operations,” he said.
Th at work is being undertaken in conjunction with P&H Mining Equipment and the coal industry.
“Th ere’s a suite of these types of automation initiatives in Australia including being the fi rst country to seriously look at and advance the science of automated longwalls,” Professor Lever said.
While there were no fully automated mines in Australia,
Australia is a global leader in pioneering
mining technology, as highlighted by Rio
Tinto’s major ‘Mine of the Future’ program.
Steady advance of automation
Professor Lever said various automated components and systems were in operation.
An example is the use of automated LHD (load-haul-dump) machines that have been around for some time in underground mining.
Professor Lever said the driving factors for increased interest in automation throughout the industry included improved safety, the advantages in productivity that could be gained by reducing the production variance of mining operations, and improved energy effi ciency.
“A fi nal driver is the lack of skilled resources,” Professor Lever said.
Many of the current eff orts in the development of automation technologies may not remove people from the driver’s seat, but instead would take over the more complex tasks which require advanced skills and experience, he said.
Professor Lever said developing the technology to allow multiple types of automated machines to work together safely, effi ciently and productively in a mining operation was a major focus of research eff orts within Australia, including by the Australian Centre for Field Robotics in Sydney.
Rio Tinto’s “Mine of the Future” initiative is already boosting productivity, according to Sam Walsh, the company’s chief executive for iron ore and Australia.
“We can now operate our Pilbara iron ore operations above nameplate capacity, redefi ning the limits of what was considered possible. And these benefi ts fl ow directly to our bottom line,” Mr Walsh said.
“Th ere is no other mining operation anywhere in the world attempting this on this scale. Our driverless trucks, remotely operated drill and blasting, automated train systems and
remote train loading functions are
just the start of a revolution that
is transforming the way we extract
value from our resources, and will
result in a far better, safer industry
than could have been imagined
even a decade ago.”
Rio Tinto media manager –
external relations Gervase Greene
said there were no plans yet to
introduce such systems to the
company’s Bowen Basin coal
mines.
“We’ve deliberately advanced
our Mine of the Future vision
and the various ideas in it so
they are applicable to various
forms of mining, but at this stage
it is confi ned to the iron ore
operations in the Pilbara,” he said.
Increasing automation in mining may spark a shift from “bigger is better” to the economics of the small when it comes to equipment, according to a technological consultant for the resources industry.
CSC Natural Resources Centre of Excellence director Dr Dennis Franklin believes the massive trucks commonly used to haul ore will be replaced by fl eets of smaller, faster vehicles as the robotics revolution takes hold.
“Much of the cost of keeping a truck on the road, other than fuel, is the personnel cost – maintaining a crew of drivers to cover the shifts,” he said.
“Th e upshot of that is that over the years the trucks have become bigger and bigger.”
Th e introduction of driverless trucks would remove that factor from the equation, making smaller vehicles a more attractive option, he said.
Th is in turn would spark changes in pit design.
Driverless trucks are already under trial in the mining industry, including at Codelco’s Chilean operations and at Rio Tinto’s West Angelas mine in Western Australia.
Dr Franklin said his interest in the potential for microsizing aspects of mining was sparked by scientifi c literature about the development of solar-powered robot dragonfl ies.
“I thought, wouldn’t it be cool if you had a million of those and
they could fl y down (into a mine)
and grab a bit of ore and fl y back
to the top,” he said.
While admitting that example
“may be a bit of a stretch”, he
believed examining the benefi ts
to be gained through robotics
and “the physics of the small”
would be an important trend in
mining.
Dr Franklin will be delivering
a paper “Insights into the Mine
of the Future” at the Queensland
Mining and Engineering
Exhibition conference in Mackay
in July and is due to address the
Australian Mining Technology
Conference in Perth in
September on robotics in mining.
Going small may be next ‘big thing’
Dr Dennis FranklinCSC Natural Resources Centre of
Excellence director
A survey of councils in Queensland’s key mining and energy areas is under way as part of a united campaign for further funding to cope with growth.
Th e Local Government Association of Queensland (LGAQ) is preparing a major submission to the State and Federal governments which will argue the case for a guaranteed cash stream to assist councils in meeting the infrastructure and service needs of booming resource regions.
It will also call for legislative changes that would see local councils and communities have their say much earlier in the tenure process for exploration and mining operations.
Th e initiative follows a meeting in December 2009 with State MP Tim Mulherin and his invitation for councils aff ected by the resources boom to state their case for assistance. Since then meetings have occurred with councils from the North West Minerals Province, Bowen and Galilee basins and the Surat Basin.
Th e issue was highlighted again recently with a conference organised by the Western Downs Regional Council to discuss the potential for a Royalties for Regions-style scheme in Queensland and other revenue issues for local governments facing challenges related to mining growth.
LGAQ general manager – advocacy Greg Hoff man expected the report to be submitted by early August.
He said the group had not reached a position yet about what form the extra funding allocations should take or at what rate. It was starting with the council survey to try to identify the expected needs and challenges over the next decade.
Mr Hoff man said the LGAQ submission would also call for changes to the approvals process undertaken by the State when companies sought exploration, mining and development permits.
“Th e councils want to see legislative changes that have their local issues and community-impacting issues addressed at the very beginning of the approvals process,” he said.
“At the moment these processes are not terribly user friendly or community friendly.”
Survey to crystalise councils’ case for cash
A Rio Tinto employee manages port activities from the Perth operations centre. Photo: Robert Garvey
6 July 2010 | The Mining AdvocateNEWS
Australia’s sunburnt outback and Mongolia’s frozen steppes have a lot in common when it comes to mining.
A similar bounty of metals ore and coal means opportunities for Australian-based suppliers of mining technology and services, according to Austrade.
Mongolia is a country of less than three million people located roughly above China and below Russia.
While they remain its largest markets, Mongolia is encouraging junior miners and operators from other countries to develop a range of ore bodies hosting uranium and rare earths, among other minerals.
Australian Trade Commissioner to Korea, Martin Walsh, said suppliers would do well to tap into existing fi rst and second-tier Australian providers already operating in Mongolia.
Th ere are currently 30 such companies operating in Mongolia including Leighton Holdings.
Rio Tinto recently signed an investment agreement with the Mongolian Government for the development of the Oyu Tolgoi copper-gold complex in the south of the country.
Th is $4 billion investment presented opportunities for a range of providers, Mr Walsh said.
“Mines service providers; safety and environmental rehabilitation;
communications suppliers and drillers, among others,” he said.
“Th ere are similar challenges (to operating in Australia). Australian mining companies have logistics skills in particular to attack those sorts of projects.”
Mongolia’s legendary bad weather and tough geography were the least concerns for most Australian suppliers, Mr Walsh said.
Th ere were the challenges of working in a developing country, he said.
Other challenges included a largely unskilled workforce and requirements from the Mongolian Government that a percentage of workers needed to be nationals.
Australia was doing its share with AusAID programs designed to lift the standard of education, technical profi ciency and awareness among mining professionals in Mongolia, Mr Walsh said.
“Th e Australian Government is working with the Mongolian Government to lift its understanding and capacity to deal with foreign investors,” he said.
“AusAID programs have educated a signifi cant number of mining professionals.
“Th ere are now a whole bunch of people called ‘Mozzies’ who were educated in Australia.
Martin Walsh (Austrade), Sang Bum Lee (Sun Metals), Chris Rees (Austrade), Brendan Coyne (Austrade), Ki Deok Park
(Sun Metals) and Paul Ryan (Sun Metals) during a North Queensland briefi ng tour.
Reducing the impact of severe wet seasons on crucial northern transport networks will be a central focus for a newly formed local industry group.
Th e North Queensland section of the Chartered Institute of Logistics and Transport Australia (CILTA) brings transport and logistics providers and users together to address supply chain issues.
Chairman Tracey Lines said fl ooding during the 2008/09 wet season had a substantial impact on local industry, which had taken a long time to recover.
“Th e rail was cut for a long time and for a whole year suppliers in the north-west were trying to play catch-up,” she said.
“We had to put ships on between Cairns and Townsville to get product through because roads were cut.
“It does need a transport and logistics approach to fi nd solutions, it needs input from diff erent parts of the industry.”
A second major focus for the
group would be the attraction
of a larger share of transport
infrastructure funding for the
region, she said.
“We’re intending to be a
strong lobby group on some of
these issues,” Ms Lines said.
“CILTA gives industry
members a voice outside of
their individual organisations or
various modes of transport.”
Th e newly reformed CILTA
North Queensland section
hosted its fi rst major event
in Townsville in June – the
Transport and Logistics in the
Tropics Conference.
Th e group rebanded in late
2009 after being inactive for
some years.
Ms Lines, who works as Port
of Townsville Limited’s business
development research offi cer,
was appointed as chairman in
February.
She said the group was open
to suggestions from members
across all transport modes about
the issues that most required
attention in North Queensland.
It would be working to raise
CILTA’s profi le and build
membership, she said.
Tracey LinesCILTA North Queensland chairman
Industry group to iron out transport problems
Prime Minister Julia Gillard’s changes to the Federal Government’s planned mining tax regime may have cooled industry opposition, however concerns have emerged over the lack of exploration incentives.
Th e Australasian Institute of Mining and Metallurgy (Th e AusIMM) says a proposed exploration rebate was one positive feature of the original Resources Super Profi ts Tax plan.
“Th e exploration rebate has now been excluded from the compromise deal reached with the three major mining companies,” AusIMM President Greg Chalmers said.
“We realise this is a pragmatic decision by the government in its bid to preserve the net revenue expected to fl ow from the new Minerals Resource Rent Tax, but it once again breaks a clear 2007 election promise by the Labor Party to encourage increased exploration in Australia.”
Th e AusIMM and other industry groups have made submissions to the government since 2007 arguing for the introduction of a fl ow-through shares scheme to help foster exploration investment.
Th e AusIMM will take its concerns to the government’s Policy Transition Group.
Exploration off the table
A peak industry body has described a commitment of $18 million over four years as “a modest down-payment” on the pre-competitive geosciences funding required to realise the State Government’s stated aim of seeing Queensland become the “greenfi elds exploration capital” of Australia by 2020.
Queensland Resources Council (QRC) chief executive Michael Roche was commenting on the Greenfi elds 2020 program announced in the recent State Budget.
“Clearly, the QRC would have preferred new funding similar to the $29 million Smart Mining program that started in 2006 and concludes at the end of this month,” Mr Roche said.
“Recognising that the State Budget position is tight, we must assume that the $18 million commitment was as much as could be aff orded right now. However, given the success of the previous Smart Mining and Smart Exploration programs, there is clear incentive to top up this new funding commitment in later years as budget circumstances improve.”
Queensland Treasurer Andrew Fraser said the Greenfi elds 2020 program would target key under-explored geological terrains which had the potential to develop into major new mineral and energy resource provinces for Queensland.
Mr Fraser said frontier areas identifi ed for greenfi eld exploration include north and north-west Queensland and the Th ompson/Lachlan region of western Queensland.
“We will provide new regional geological and geophysical data in these under-explored terrains to produce new interpretations, 3D models and resource assessments to assist industry and encourage exploration,” he said.
“Collaborative drilling partnerships and further land releases for exploration will also play a key role in unearthing new deposits and reducing the risks and costs to industry associated with greenfi eld exploration.”
Budget comes up short
7The Mining Advocate | July 2010 Part Of The Solution
From rural to the mining sectorA new engineering business in Townsville is off ering higher standards and quality in fi tting out vehicles for the mining industry.
From its beginning in Julia Creek, Rydweld has met a milestone recently by moving into a new offi ce.
The team at Rydweld is now ready for the next challenge, which is streamlining the business and tapping into the mining sector.
It’s a story about two families who decided to go out on their own and build tray bodies for the local Toyota dealer in the back of their parents’ shed 16 years ago.
Brothers Steven and Geoff Ryder and their partners Vicki and Margie had a vision which is now reality. That small town operation of six employees has evolved into a strong family business which now employs 22 people.
Their experience and high standard of rural industry
products and services in building and fi tting bullbars,
tray bodies, tippers, water tanks and stock crates is being
focused on the mining industry.
The business now off ers Roll-Over-Protection Systems
(ROPS) and other industry-specifi c vehicle requirements.
Clients are guaranteed attention to detail. Feedback from
existing clients endorses the quality and strength of the
Rydweld product and the attention to detail and the use of
quality materials including two pack paint.
Rydweld will continue to work with a local engineer to
ensure all designs exceed industry standards.
Contact Rydweld in Townsville at 5 Crocodile Crescent on
Mongolia has proven its mining potential to a Townsville-based drilling company in more ways than one.
Not only is the company targeting more business in the central Asian republic, Mongolian nationals are helping fi ll its staff quota.
Interdrill Group general manager Jason Summerfi eld said Mongolian drillers had a reputation for being stable in an industry known for its journeymen.
“Th ey have a great attitude,” Mr Summerfi eld said.
“If the job is there they just get in and do it. We fi nd them quite loyal and they don’t change simply because they get what seems like a better off er.
“Th ey are competent, reliable and undertake the role on par with drillers from other nationalities.”
Around 20 per cent of Interdrill’s 150 staff is Mongolian. Th ey are also involved in the company’s drilling activities in Pakistan.
Mr Summerfi eld said the company was developing cross-cultural international training
packages to allow Mongolians and other nationalities into Australia to work on 457 visas.
Interdrill has noted a resurgence in exploration activity since the Mongolian Government abandoned plans to implement its equivalent of a mining super profi ts tax.
Interdrill is registered as Gobi Drilling in Mongolia and has also worked for Batuu Mining, BHP Coal and Gobi Coal.
Th e business has a full workshop and offi ce based in the capital Ulaanbaatar.
In what could be brochure copy for the country, Mr Summerfi eld described Mongolia as civil and pleasant with a committed workforce.
However the winter does put a handbrake on work.
“Th e biggest problem is the weather,” Mr Summerfi eld said.
“You can only work nine months of the year. It is possible to work through winter but presents challenges.
“Th e place is defi nitely moving forward and there are more companies selling drilling consumables setting up operations. Mongolia has
The Interdrill Group is fi nding steady work
and skilled labour as it turns to central Asia
to build business, writes Robert Dark.
a reputation for big, privately
funded projects and that is
always attractive to investors.”
Mr Summerfi eld said most of
the Interdrill Group’s business
was based outside Australia.
“We undertake projects in
the geothermal industry in
Papua New Guinea, copper
and coal in Mongolia and
other gas, hardrock and coal
projects in Australia, Pakistan,
the Solomon Islands and
Myanmar,” he said.
Best of both worlds
Th e Engineers Australia Townsville local group is calling for papers for this year’s Northern Engineering Conference.
Th e conference, to be held at the Mercure Inn in Townsville on September 17, will carry the theme “Engineering leadership and sustainability: raising the bar”.
Abstracts for potential presentations should be submitted by July 23. For further information email [email protected].
Conference papers sought
North Queensland’s distinctive “Silver Link”, the Burdekin River Bridge, is taking its place among the most signifi cant feats in Australia’s engineering history.
Engineers Australia has approved the bridge’s listing under the organisation’s Engineering Heritage Recognition Program.
A ceremony is planned for August 10 to celebrate its recognition under that program.
Engineers Australia Townsville local group committee member Howard Goodes, who is organising the event, said there were also plans to erect an interpretive panel to display historical photos and information about the bridge.
Townsville-based Main Roads engineer Ervin Smith and Engineering Heritage Australia Queensland panel member Anthony Carey prepared the submission that prompted the bridge’s recent approval as an Engineering Heritage Marker.
Th eir submission described the bridge, located between Home Hill and Ayr, as a unique engineering feat in the nation.
Completed in 1957 after a decade of construction work, the bridge permitted the crossing of the Burdekin River – previously a serious barrier to the development of North Queensland.
Engineering honour for‘Silver Link’
Towards the end of winter, ice and snow drifts still exist in the north of the
country. An RD1500 mounted on an MAN 8x8 truck proves able to traverse the
country irrespective of road conditions.
Geoff and Steven Ryder.
8 July 2010 | The Mining AdvocateNEWS
Th e Osborne mine in north-west Queensland is “doing a Lazarus” thanks to some wizardly wonders up the road.
Th e copper-gold operation, 195km south-east of Mount Isa, faced closure after owner Barrick Gold last year dropped plans to develop the Kulthor underground project at the site.
However the operation’s proximity to Ivanhoe Australia’s molybdenum and rhenium projects has given it a new lease on life.
Ivanhoe Australia is purchasing the Osborne operation for $17.4 million, plus a share of royalties, in a deal due for settlement in September.
Ivanhoe Australia chief executive offi cer Peter Reeve said the purchase would help Ivanhoe bring the start date for its Merlin project forward by a year and a half, with the ore to be trucked 50km for processing at the Osborne plant.
Th e Merlin mine was now likely to be in production in 2012, while production from the high-grade Little Wizard
deposit – which lies in the path of the planned Merlin decline – remained on track to start next year, he said.
Mr Reeve said the Osborne purchase would save Ivanhoe Australia about $100 million in capital expenditure for the Merlin development.
Th ere will be a hiatus in activity at Osborne until ore becomes available from the molybdenum-rhenium project.
Mr Reeve said Ivanhoe Australia would maintain a small care and maintenance crew at Osborne until that time, as well as a mining assessment team.
It hoped that many of the 250-strong Osborne workforce would be available to return to the operation when it ramped up again, he said.
Ivanhoe plans to progressively build up the Merlin mining rate to 800,000 tonnes per annum by 2014 while sourcing other viable ore from the Osborne tenements and its own Cloncurry copper-gold projects to utilise any spare capacity in the mill.
Th e company says the highest
Osborne reborn in $17.4m deal Ivanhoe Australia has snapped up a
neighbouring copper-gold operation in a
move to help fast-track its own project suite.
priority copper-gold ore sources
are those within the existing
Osborne mine, particularly
at Kulthor - where a 2.35km
development drive has been
completed, with only 150m
remaining to be developed
to gain access to ore. Ivanhoe
Australia is conducting a scoping
study regarding its own copper-
gold projects in the Cloncurry
region – which include the
original Mount Elliott mine,
Starra Line and Mt Dore.
Mr Reeve believed the Mt
Dore operation had the potential
to go into production within
three years, mining at a rate of
about three to fi ve million tonnes
per annum to potentially produce
Osborne
mine and the
key Ivanhoe
projects.
Cloncurry
McKinlay
Malbon
Mt Elliott
Eloise
MerlinMt Dore
Lucky Luke
Osborne
Cannington
Starra Line
15,000 to 20,000 tonnes of cathode copper. Th at ore would be treated in a solvent extraction-electrowinning heap leach operation on site rather than at Osborne.
“Once we have the Mt Dore project going, with Osborne and Merlin going, we will easily have a workforce approaching 500 or 600 within the next fi ve years,” Mr Reeve said.
Ivanhoe Australia has selected its preferred contractor to develop the Merlin decline and expects to put development work at Kulthor out to tender soon.
Detailed work has already commenced for a 50km haul road between Merlin and Osborne and Mr Reeve said the task would be made easier by the fact a 35km track had already been bulldozed between Osborne and the Lucky Luke prospect.
“Th e big strategic advantage of the Osborne acquisition is that it makes the whole activity of mining, developing, making cash and paying dividends come together much more quickly and reduces the risk of delivery of the Merlin project,” Mr Reeve said.
“We’ve been looking at this for just under 12 months - since Barrick announced it was letting Osborne run down.”
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9The Mining Advocate | July 2010 NEWS
An employment passport is among the strategies an industry-government partnership is investigating to aid indigenous job prospects in the resources sector.
Th e North West Queensland Indigenous Resources Industry Initiative is holding a series of community engagement meetings throughout the Mount Isa and Gulf regions to discuss that idea and other employment issues.
Partnership facilitator for the initiative, Michael Limerick, said the employment passport would act as a record of relevant training and experience that jobseekers could present to resource companies.
“We found that many indigenous people have had a lot of diff erent bits of training and work experience, but that is not always captured in a way that can easily be presented to employers,” Mr Limerick said.
“Th e passport will also provide a bit of transferability.”
Mr Limerick said the group was also working to clarify exactly what resource companies meant when they stated they were seeking job applicants who were “work ready”.
“We had a workshop of HR (human resources) managers from some companies to talk about that,” he said.
“Th ere are a lot of common elements in the companies’ approaches but the message is not always communicated consistently.”
Requirements which may seem hard and fast, such as the need to hold a drivers licence, could actually be quite fl exible in practice, he said.
Partnership facilitator for the North West Queensland Indigenous Resources Industry Initiative,
Michael Limerick, at a recent stakeholder meeting in Mount Isa. Photo: Roslyn Budd
Jobs agenda Resources group making headway
“Th e things mining companies have said are most important as minimum requirements are really about attitude,” Mr Limerick said.
“Th at’s the issue they stressed the most - the ability to work in a team, turn up regularly to work, communicate in the workplace and the willingness to learn.”
Mr Limerick said indigenous people accounted for about 23 per cent of the population in north-west Queensland, but only about 8 per cent of the local resource sector workforce.
Incitec Pivot HR manager for northern Australia Rod Francisco said the working group meetings held as part of the initiative had been the fi rst time companies operating in the region had sat together as an industry to discuss indigenous employment issues.
“We have all identifi ed similar issues that we all had diff erent ways of approaching,” he said.
“But the issues are the same and we have been able to clarify as a group what needs we have.”
Mr Francisco said Incitec Pivot was undertaking a review of training programs across its Queensland operations and would be looking at ways to increase indigenous opportunities as part of that process.
Th e North West Queensland Indigenous Resources Industry Initiative stems from a Memorandum of Understanding signed by the Queensland Resources Council and the State Government in 2007 to increase indigenous employment in the resources sector and foster indigenous enterprises.
A newly formed committee is working to resurrect the Darwin branch of the Australasian Institute of Mining and Metallurgy (AusIMM).
Committee chairman Dave Clark said Darwin previously had been home to a very successful AusIMM branch, but its activities had dwindled in recent years.
“We have some very capable and motivated people on board who are keen to ramp things up again,” he said.
“Th ere is plenty of support from key people within organisations such as ERA (Energy Resources of Australia) and other mining and exploration companies with a local presence.”
Mr Clark - who manages GHD’s Northern Territory business - arrived in Darwin late last year from Melbourne, where he had been an
active AusIMM branch committee member.
“I was keen to play a role in the Northern Territory’s AusIMM branch and it soon became clear that activities had fallen by the wayside over the last several years,” he said.
Mr Clark contacted a selection of local members and other interested professionals, resulting in the reformation of a core local committee in April. Th e group has since held several formal meetings and it hosted its fi rst social event in late June.
Mr Clark said it was looking to recruit more committee numbers, increase the level of participation and enhance the membership levels.
People interested in joining the Darwin AusIMM branch should contact Mr Clark on 0412 092 096.
Budding Darwin branch
Mark BellamyManaging Director
Kelvin RyanOperations Manager
0407 620 8680422 124 083
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10 July 2010 | The Mining Advocate
Sandvik Mining and
Construction has opened a new
service and support branch in
Paget, Mackay.
Th e company previously worked
from three diff erent sites in the
central Queensland city, but has
brought its operations under one
roof with the new complex.
“With this new branch, we
have one of the most modern
facilities in the industry, including
the latest servicing and machine
diagnostic equipment,” Sandvik
Mackay branch manager Ryan
Jones said.
Consisting of more than
3000sq m of workshop fl oorspace,
the new facilities allow Sandvik
to carry out a full range of rebuild
and repair work on a wide variety
of equipment.
“Workshop 1, which can carry
out strip and rebuild on anything
up to large continuous miners, has
two 20-tonne cranes, a 5-tonne
auxiliary crane and 1000-volt
power supply, so we can do
complete testing and diagnostics,”
Mr Jones said.
“Workshop 2, which can carry
out a wide range of fabrication
work, also incorporates a paint
bay – again capable of handling
large continuous miners.”
Other facilities include a
machine shop, fi eld service
support storage, a separate
15m-by-9m washbay and a brake-
testing area.
Th e complex includes a high-
rise warehouse with capacity to
stock more than 6000 line items.
To mark the opening, visitors
to the Sandvik stand during the
upcoming Queensland Mining
and Engineering Exhibition
(QME) will be invited to attend
a spit roast and inspect the new
facilities on the evenings of July
27 and 28.
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Th e Mackay region’s freight transport network is struggling to meet current demands and will restrain future economic and export growth, a new report shows.
Th e Regional Economic Development Corporation (REDC) released the report, produced by Norris Consulting, analysing the freight transport issues in the Mackay Whitsunday Isaac region.
Th e report estimates that limitations in the region’s freight transport network will lead to the loss of 5000 new jobs and $6 billion per annum in gross regional product if priority areas are not addressed.
REDC acting chief executive offi cer Laura Sorensen said it was vitally important that the State and federal governments took notice of recommendations stemming from the report.
“Th e priority areas in our freight transport network must be addressed to ensure that our region remains economically sustainable
and copes with growth long
term,” she said.
Priority actions outlined
in the report include:
• Intermodal corridor
access to the Port of
Mackay to remove
freight vehicles from
urban areas,
• Development of a multi-
cargo facility at Abbot
Point,
• Upgrade Peak Downs
Highway to road-
train quality, including
Clermont to Alpha,
• Northern Missing Link
rail and associated road
connectivity,
• Development of
planning instruments
including a Statutory
Regional Plan, Regional
Integrated Transport
Plan and Strategic
Freight Network Plan.
Th e Economics Of Freight
Transport Project report
will be sent to Regional
Development Australia,
Queensland Transport and
Main Roads.
Sandvik celebrates shiftto new complex at Paget
The new Sandvik Mining and Construction premises in Paget, Mackay.
Report highlights transport priorities
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11The Mining Advocate | July 2010 Mackay Regional Capacity
A Mackay-based engineering
fi rm has pioneered a system
that cuts the costs and risks
associated with dragline rope
drum refurbishment by off ering a
factory fi nish in the fi eld.
ABC Heavy Engineering
co-owner Maurie Smith said
the ability to carry out a full
refurbishment in situ could save
mine operators as much as $1
million per drum set in direct
and associated costs.
Th e new system was used
in the fi eld for the fi rst time
recently during a dragline
shutdown in the Hunter Valley
coalfi elds.
Mr Smith said the success of
that debut had brought him great
ABC Heavy Engineering is off ering the coal
industry a new option for tackling dragline
rope drum wear, writes Belinda Humphries.
satisfaction after a long process of research and development.
“I’m completely confi dent that this revolutionary new process will be embraced by a range of customers throughout the industry,” Mr Smith said.
Th e story began about a decade ago when ABC Heavy Engineering developed a process to fully rebuild worn dragline rope drums and a range of other dragline and shovel components in its factory.
Mr Smith said ABC Heavy Engineering was able to reinstate rope groove wear using specifi cally designed weld alloys followed by CNC machining to the original profi le and induction hardening of the surface aff ected by rope contact.
Th is off ered a greater depth of uniform hardness than the fl ame hardening technique used in the original manufacture of the drums, he said.
A full refurbishment including this treatment took fi ve to six weeks in the factory, requiring
the sort of time window available only during a major dragline shutdown, he said.
ABC Heavy Engineering took a step towards in-situ refurbishment when it began to off er induction hardening in the fi eld to allow companies to tackle problems of wear during smaller shutdowns.
“We always viewed it as a staged thing,” Mr Smith said
“We had to get the customers comfortable with the fact we could achieve induction hardening in situ and then move on to developing the rest of the process as we have now.”
Mr Smith said the fi rm had since been able to incorporate all the processes required to rebuild a drum in the factory into a fully modular, transportable system that it could take on site.
“One of the big issues was the room inside the dragline that we had to work in,” he said.
“We have been able to reconfi gure a lot of our machinery to have it mounted permanently inside a B-double transporter which we can back into place at the rear of the dragline.”
Th e process conducted on site
includes some heat treatment
to soften residual hardening,
pre-machining of the worn area
using CNC milling and indexing
equipment connected to a pony
drive, application of welding
alloys to reinstate wear, fi nal
machining of the rope groove
profi le and induction hardening.
Mr Smith said the total
process took about three weeks.
“It gives the customer another
option regarding how they can
reduce costs and control risk,” he
said.
Th e company has applied for
an innovation patent for the
system.
Mr Smith was the original
owner of ABC Heavy
Engineering – the trading
name for Australian Bearings
Corporation – but sold the
business in 2007.
It went into administration
under the new owners and the
family bought it back in October
last year, with Mr Smith’s three
sons – Rick, Chris and Paul
Smith - acting as company
directors and shareholders.
Every year in early June, Maurie Smith takes a break from steering his business interests and gets behind the wheel of an old automobile for the Royal Flying Doctor Service’s Outback Trek.
Th e most recent trek saw participants make their way from Hay in New South Wales to the Whitsunday haven of Hamilton Island.
Mr Smith said the journey had marked the trek’s 21st year of fundraising by retracing the route of the very fi rst event,.
He made the trip in a freshly prepared 1965 Dodge Phoenix under the theme “Th e Dodgy Brothers”.
Th e Dodge had spent its life as a country funeral director’s mourning car before being converted into a trek vehicle, Mr Smith said.
Mr Smith has only missed two or three years since his fi rst trek experience in 1991.
His teammates over the years have included his sons and a range of workmates from ABC Heavy Engineering.
“Th is year I went with Simon Edwards who owns the hotel at Blanchetown (South Australia) and Lloyd Silk, a cane grower from Mackay,” he said.
“Glen Spears, a mate who owns Central Helicopters - based in Adelaide, again completed the entire trek in a Bell JetRanger helicopter - fundraising along the way by selling scenic chopper fl ights to other crew members and participants.”
So what is it about the Outback Trek that keeps this 58-year-old businessman coming back year after year?
“Having fun travelling, camping out in the ‘Milky Way Motel’ and enjoying the odd drink with mates that you may not have seen since the last trek while raising money for the very essential Royal Flying Doctor Service is my two weeks’ of annual stress relief ,” he said.
Th e 2010 trekkers travelled via Broken Hill, Copley and Innamincka in South Australia then across the western Queensland border to Noccundra, Stonehenge, Muttaburra, Barcaldine, Ravenswood and on to Airlie Beach. Participants then took a ferry to Hamilton Island with family and friends for the gala dinner and awards function.
Mr Smith said preliminary estimates indicated the 2010 Outback Trek would net more than $1million for the RFDS.
Travels of an artful ‘Dodger’The 1965 Dodge Phoenix on a stop in the 2010 Outback Trek.
Maurie Smith with a dragline rope drum. Photo: Lauren Reed
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Th e Coff ee Club Mount Isa - brewing successThe Coff ee Club is Mount Isa’s favourite place to meet, famous for its good food, great service and excellent coff ee.
The Coff ee Club Mount Isa is a welcoming and relaxed place to meet friends and family and off ers a delicious range of starters, open grills, salads, gourmet wraps, sandwiches and light meals, prepared fresh as they are ordered.
Customers can also choose from the huge range of fi lling breakfast options and freshly brewed, hot espresso coff ee made by the cafe’s experienced baristas.
Graeme and Lenore Saunders opened the Mount Isa franchise in June last year, seeing it as the perfect complement to the neighbouring cinema, which they also own and manage.
“Graeme and I have always loved The Coff ee Club and our fi rst
year of business has been great,” Lenore said.
“We’ve been particularly busy during the school holidays with people popping in for a bite to eat before heading off to watch a movie.”
Lenore is a hands-on franchise owner, spending her days looking after customers and managing their team of more than 25 staff .
The Coff ee Club Mount Isa is located at 21A-21B Mile Street and is open seven days a week from 7am until late.
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13The Mining Advocate | July 2010 Mount Isa Regional Capacity
A young Alice Clark had her sights set on studying marine biology at university before fi nding a fi rmer footing in the world of strata and stone.
Twenty-seven years later, the Mount Isa-based geologist can boast a distinguished mining career and the honour of being elected as the next national president for Th e Australasian Institute of Mining and Metallurgy (AusIMM).
While it may be hard to ignore the fact that she is the fi rst woman to win that role in Th e AusIMM’s 117-year history, Ms Clark is determined that gender will not be the focus of her presidency.
“I’m a diff erent gender, but it’s not new to me – I’ve been a woman all my life,” she said.
Her focus is on doing the best job she can and Ms Clark lists three key issues which she is especially passionate about - encouraging continued professional development, workplace diversity and industry self-regulation.
Ms Clark’s resume off ers an interesting glimpse of the North’s recent mining history after her almost accidental entry into the profession of geology.
Her family emigrated from the United States when Ms Clark was nine. Former Queensland Premier Joh Bjelke-Petersen was importing skilled people for the sciences at the time and her father - a computer scientist and mathematician with a background in nuclear physics – took a role at the Queensland Institute of Technology.
Ms Clark said her family moved around Australia and New Zealand in the years that followed, before she left home to
study at James Cook University in Townsville.
“I actually went there to do marine biology and discovered I don’t have any sea legs at all and my alternative was geology,” she said.
“I walked into my fi rst geology lecture and thought ‘wow, this is what I want to do’.”
Fortunately she had found herself at one of the top centres in the country for economic geology.
Ms Clark said her luck continued when she left university, gaining her fi rst exploration job with Bob Osborne – the geologist who discovered the copper-gold deposit in north-west Queensland where the Osborne mine stands today.
“My very fi rst drill program was at Trough Tank - which became the Osborne deposit,” she said.
Ms Clark left the team when Placer Dome took over from CSR in 1988 and took a job with an MIM subsidiary at the newly producing Ravenswood gold operation in North Queensland.
A talk from visiting Mount Isa Mines chief geologist Brice Mutton spurred her interest in working in the north-western mining hub.
“So I asked him if I could transfer out and kept asking until eventually I was transferred to Mount Isa in 1990,” she said.
After eight years working across the Mount Isa mining operations and in exploration, Ms Clark said she was “given a crack at Brice Mutton’s old job”.
She worked as chief geologist for three and a half years at what is now Xstrata’s copper-lead-zinc operations, where she also met husband Steve de Kruijff .
Ms Clark left that role to start her own business - CdeK
The incoming national president for peak
professional body, The AusIMM, tells of her
multi-faceted mining career.
North-west’s ‘accidental’ geo
Incoming national AusIMM president Alice Clark. Photo: Roslyn Budd
Geological & Mining Services - when daughter Clare started school in 2002.
“I wanted a bit more fl exibility – that’s why I went out on my own,” she said.
“Th ere are not a lot of childcare options out here. It’s diffi cult for families to fi nd balance in mining towns without child care options.”
About 50 per cent of Ms Clark’s consultancy work is based on copper, silver, lead, zinc and gold projects in Australia, while the remainder involves overseas
operations. It centres on assessing ore bodies and mineral resources – particularly their potential as commercial prospects.
Ms Clark is also involved in mentoring and a separate arm of her business provides peer review for documents such as feasibility studies and public reports.
Ms Clark said she loved her work.
“I get exposed to a lot of innovative people and that’s very inspiring,” she said.
“I also get exposure to high
level corporate issues – I like that, looking at the strategic objectives of diff erent groups.”
Outside of working hours, Ms Clark can often be found on the sidelines supporting the Spinifex College under 14s netball team. She is also a keen cook and amateur astronomer.
Ms Clark is a director of Th e AusIMM and deputy chair of the Joint Ore Reserves Committee ( JORC). She will take up her new role as AusIMM president in January 2011.
Th e Queensland Government is joining forces with private companies CuString and Leighton Contractors to conduct a feasibility study into a 700km powerline project from Townsville to Cloncurry.
Th e $1 billion CopperString proposal, which would link existing and future mines in the North West Mineral Province to
the national electricity grid, has been declared a project of state signifi cance.
Premier Anna Bligh said the milestone followed the Sims Review, which determined the private sector should fund infrastructure to address the region’s electricity shortfall.
“In August 2009, the Queensland Treasurer, with the
support of the Federal Treasurer
and the Queensland Resources
Council, called on potential
energy providers to work with
major regional energy users to
fi nd a commercially viable long-
term answer,” she said.
“In the case of a transmission
connection, customers for these
projects have advised the State
Government they have selected
the CopperString project from a
number of potential transmission
proponents to undertake a
detailed feasibility study.
“Results of the CopperString
feasibility study, due later
this year, will allow the major
energy customers to assess if
this represents a better solution
compared to local generation for
their energy requirements over
the next 20-plus years.”
Ms Bligh said the Sims Review
identifi ed an upgrade of CS
Energy’s Mica Creek Power
Station at Mount Isa as an
option for future power supply to
the region, while leaving the door
open for other parties to develop
alternatives.
CS Energy is well advanced
in its investigations into upgrade
and expansion options for the
gas-fi red power station.
Th e north-west Queensland local group of Engineers Australia will team up with their AusIMM counterparts this year to hold a combined ball in Mount Isa on September 11.
“Th is year, in place of our traditional engineering ball, we have joined forces with our local AusIMM chapter to host a bigger, better formal event at the Mount Isa Civic Centre,” Engineers Australia local group president Davey Cawood said.
“We are expecting more than 300 local and regional professionals to attend this gala evening of fi ne dining, fantastic entertainment and invaluable networking opportunities.”
Th e ball is a highlight on the group’s educational and social calendar for the 2010-11 fi nancial year.
Mr Cawood said the planned line-up included regular technical talks and Continuing Professional Development (CPD) sessions.
Committee members will also be visiting local schools in early 2011 to present basic engineering concepts to the students before setting them a fun engineering challenge.
“Th e engineering concepts presentation will also include a section explaining what engineers actually do and exploring engineering as a profession,” Mr Cawood said.
“In the past, our school-based competitions have been targeted at the primary level. Th is year, we hope to engage with senior school students as well.”
CopperString advances
A feasibility
study has been
launched for a
$1 billion power
link between
Townsville and
Cloncurry.
Industry groups join forces for bigger, better Isa ball
14 July 2010 | The Mining AdvocateINDUSTRY UPDATE - COAL AND GAS
Key LNG contract announced
Santos has appointed Fluor Australia
as the preferred contractor to carry
out Engineering, Procurement and
Construction (EPC) for the upstream
component of its Gladstone Liquefi ed
Natural Gas (GLNG) project.
Santos anticipates awarding an EPC
contract subject to a fi nal investment
decision and will extend Fluor’s
engineering design contract in the
interim to include early works activities
of about $50 million. Th e GLNG
upstream scope comprises all coal seam
gas and associated water gathering and
processing infrastructure for both the
Fairview and Roma fi elds to supply a
proposed LNG plant in Gladstone.
Santos president for Queensland Rick
Wilkinson said the project remained on
track to deliver its fi rst LNG cargo in
2014.
Th e Queensland Government recently
granted conditional approval to the $7.7
billion Santos/Petronas GLNG project.
Premier Anna Bligh said Co-ordinator-
General Colin Jensen had completed
a review of the environmental impact
statement and approved it with strict
conditions.
Dam allocations open
SunWater has issued a call for
foundation customers to reserve high-
priority water allocations from the $824
million Connors River Dam project in
central Queensland.
Th e proposed dam, 110km east of
Moranbah, is strategically located near
the booming Bowen and Galilee basins
Terminal project “signifi cant”
Xstrata Coal Queensland’s $1 billion
proposal to build a coal export terminal
on Balaclava Island, north of Gladstone,
has been declared a signifi cant project
by Queensland Co-ordinator-General
Colin Jensen.
Th e facility could export up to 35
million tonnes of coal per annum from
the Bowen and Surat basins if approved.
Mr Jensen said the declaration of
a signifi cant project signalled the
beginning of a rigorous assessment of
the project’s impacts on the natural,
social, economic, built and cultural
environment.
Upgrade at Stanwell
Queensland Energy Minister
Stephen Robertson has announced
plans for a $22.5 million upgrade of
Stanwell Power
Station outside
Rockhampton
in central
Queensland.
Mr Robertson
said the upgrade
would include
the installation of
new low-pressure
turbines, which
will increase the
effi ciency of the
station and reduce its greenhouse gas
emissions by 47,000 tonnes a year.
Mr Robertson said the work on Unit 4
at Stanwell followed upgrades on Units
2 and 3 over the past two years.
Unit 4 is expected to be taken offl ine
for about 60 days from August 30, with
the remaining units managing power
demand during this period.
New division at Clough
Engineering and construction company
Clough has established a dedicated
Australian coal seam gas division.
“Our entry into the coal seam gas
industry is a key strategic step in
strengthening our position as an
engineering-led EPC (Engineering,
Procurement and Construction)
contractor with a focus on the oil and
gas sector,” Clough chief executive offi cer
John Smith said.
“We’ve assembled an experienced
team for Clough Seam Gas, one that
understands the unique requirements of
the Australian market, and one which we
feel is capable of delivering tailored, high
quality services to coal seam gas clients.”
Ichthys project delayed
INPEX has put back the development
schedule for its Ichthys gas project.
Th e fi nal investment decision is now
expected to take place in the last quarter
of 2011, with LNG production from
the planned onshore facility at Darwin
forecast to commence in the latter part
of 2016, rather than 2015.
INPEX public aff airs manager Tim
Larcombe said
the company and
its joint venture
participant
Total remained
committed to
developing the
project as rapidly
as possible and
stressed there had
been no change in
plans to locate the
onshore component
at Darwin. “Th e Ichthys project is
extremely large and complex,” he said.
“We are taking the time now to
optimise all aspects of the project’s
design to minimise the risk of
increasing costs. “
Mr Larcombe said the environmental
impact statement for the project and
supporting technical studies would be
released for public comment soon as
part of a comprehensive community
consultation program.
Washpool resource increases
Aquila Resources has released an
upgraded resource statement of 185.54
million tonnes for its Washpool hard
coking coal project, 24km north-west of
Blackwater in central Queensland.
Th e company also announced a
maiden reserve statement for the
project, including proved and probable
reserves of 108.3 million tonnes, with
marketable product reserves of 39
million tonnes.
Th e Washpool feasibility study, which is
still to be released, proposes an open-cut
mine producing 1.6 million tonnes per
annum of high-rank, hard coking coal
over a mine life of up to 25 years.
Tougher rules on CSG water
Th e State Government has moved
to further tighten restrictions on the
storage and handling of coal seam gas
water.
Acting Climate Change and
Sustainability Minister Annastacia
Palaszczuk recently released a new
policy to ensure that dams used to
aggregate and store CSG water or brine
are built to best-practice environmental
management standards.
Ms Palaszczuk said the application
of these standards demonstrated the
State Government’s commitment to
ensuring that salt produced through
CSG activities did not impact on the
environment.
“Companies who fail to comply with
these tough new standards can face
penalties in excess of $2 million,” she
said.
$4.85b coal rail bid
Th e Queensland Coal Industry Rail
Group (QCIRG) has issued a $4.85
billion cash off er to the Queensland
Government to buy the QR Central
Queensland coal track network.
QCIRG chairman Nick Greiner said
the fully funded off er represented a
substantial premium to what was likely
to be achieved under the proposed
Initial Public Off ering (IPO) of the
assets.
QCIRG comprises 13 Queensland coal
producers - Anglo Coal, BHP Billiton,
Ensham Resources, Felix Resources,
Jellinbah Resources, Macarthur Coal,
Peabody Energy, Rio Tinto Coal,
Vale Australia, Wesfarmers Resources
and Xstrata Coal. Aquila Resources
and New Hope Coal Australia are
supporting parties and have the
opportunity to provide equity at a later
stage.
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15The Mining Advocate | July 2010 INDUSTRY UPDATE - COAL AND GAS
Origin Energy has completed fi nal commissioning of its 630MW Darling Downs
Power Station in Queensland.
Developed at a cost of more than $1 billion, the plant has three 120 MW gas
turbines and a 270 MW steam turbine.
It will emit less than half the greenhouse gas of a typical water-cooled coal-fi red
power station of the same capacity and requires much less water.
Th e development includes a 205km domestic gas pipeline linking the power
station to coal seam gas fi elds in the region held by Australia Pacifi c LNG - a
joint venture between Origin and ConocoPhillips.
Origin has also purchased a 77ha block adjacent to the current Darling Downs
Power Station for possible future expansion.
Some of the Darling Downs Power Station commissioning team at the fi nished plant.
Switched on
Mackenzie’s appointment as the fi rst
female general manager of a BHP
Billiton Mitsubishi Alliance-owned
mine. Ms Mackenzie, who has taken
the reins at Dysart’s Norwich Park
Mine, shared this year’s QRC Resources
Award for Women with Susan Denk,
chief operating offi cer for Unidel.
Approval for LNG project
Th e State Government has granted
conditional approval to QGC’s
multi-billion-dollar Queensland
Curtis Liquefi ed Natural Gas project
(QCLNG) near Gladstone.
Premier Anna Bligh said conditions for
the BG Group-owned project included
community and social benefi ts such as
the provision of aff ordable housing for
Gladstone and the Western Downs.
“Th is is a great step forward for
Queensland and we now await the
Federal Government’s consideration
of this project under its environmental
laws,” she said.
Green light for rail corridor
Queensland Co-ordinator-General
Colin Jensen has approved the proposed
Hancock rail corridor - an essential
milestone towards the development of
the Alpha Coal Mine.
Th e corridor has been approved as an
Infrastructure Facility of Signifi cance
under the relevant Act. Th is means
the company behind the $2 billion rail
proposal now has
a defi ned corridor
within which
they can continue
to examine the
feasibility of their
plans. Hancock
Coal proposes to
build a 495km
standard gauge
railway from the
planned Alpha
Coal Mine in the
Galilee Basin to Abbot Point, north of
Bowen.
Alone again
A heads of agreement for Arrow
Energy’s planned takeover of Liquefi eld
Natural Gas Limited’s Gladstone LNG
project has expired.
Th e deal ground to a halt after Shell
and PetroChina announced their own
takeover bid for Arrow.
LNG Ltd managing director Maurice
Brand said the company remained
strongly of the view that its mid-scale
project at Fisherman’s Landing was well
placed to be successfully developed and
commercialised in a much shorter time
frame than other, much larger LNG
projects.
New Cambria drilling
Coking and thermal coal explorer
Stanmore Coal has started exploratory
drilling at its New Cambria project,
20km east of Blackwater in central
Queensland. It plans an initial program
of 22 holes targeting a resource of low
volatile PCI coal.
Vale moves on Belvedere
Vale has signalled its intention to
increase its stake in the Belvedere Hard
Coking Coal Project to 100 per cent by
exercising its option to acquire Aquila
Resources’ share of the joint venture.
Th e project achieved a milestone in
the fi rst quarter of 2010 with the
completion of the pre-feasibility study,
which indicated the underground
longwall project at
Moura in central
Queensland could
be developed at a
cost of just over
$2.8 billion. Vale
in June increased
its participation
in Belvedere to
75.5 per cent by
acquiring AMCI
Investments’ stake
for $105 million.
Oaky North contract
Bounty Mining has entered into a six-
month contract to provide labour hire
services for gate road development at
Xstrata’s Oaky North mine, north-east
of Emerald in central Queensland.
Chairman Gary Cochrane said Bounty
was in ongoing discussions with other
mine owners in relation to further
opportunities in New South Wales and
Queensland in the near future.
$229m deal for Thiess
Th iess will continue coal mining
operations at the South Walker Creek
Mine following a three-year $229
million contract extension by the mine’s
owner BHP Mitsui Coal.
Th e new contract focuses on overburden
and coal mining. Th iess employs nearly
300 technical, operational, maintenance
and management team members at
South Walker Creek Mine.
Appointment welcomed
Th e Queensland Resources Council
(QRC) has applauded engineer Jennifer
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16 July 2010 | The Mining AdvocateINDUSTRY UPDATE - HARDROCK
Crocodile’s golden touch
Crocodile Gold has commenced the
portal excavation ahead of schedule for
its new Cosmo underground mine in
the Northern Territory, with production
expected to begin in mid-2011.
Th e company has also declared the start
of commercial production at its Union
Reefs mill near Pine Creek, saying
target throughput, grades and recoveries
are now being met on a consistent basis.
Crocodile Gold chief operating offi cer
David Keough said this was a signifi cant
milestone for Crocodile Gold, which
had come a long way since taking
control of the former GBS Gold assets
in the NT in November 2009.
“We have successfully commissioned the
Union Reefs mill, brought three mines
into production and continue to have
encouraging exploration results from
our ongoing drill program,” he said.
“Over the coming months we plan to
continue development at the Cosmo
and Tom’s Gully underground mines
and expect a steady fl ow of exploration
results.”
Crunchie a sweet prospect
Solomon Gold has announced a maiden
inferred resource estimate at its gold
and silver Crunchie Prospect, which
forms part of the Rannes project about
150km west of Gladstone in central
Queensland.
Th e estimate is 5.6 million tonnes at
1.12g/t for 201,648oz of contained
equivalent gold.
Five prospects in the Rannes project
area - Crunchie, Homestead, Kauff mans,
Cracklin Rosie and Porcupine Pie -
have been subject to fi rst-pass drilling
by Solomon subsidiary Central Minerals
and previous explorers, with potentially
economic intersections in all fi ve.
Solomon Gold chief executive Nicholas
Mather said the company would
continue to grow the Rannes project
resource towards its stated objective of
one million ounces.
“We are about to commence a 20,000m
drilling campaign on a series of targets
close to Crunchie,” he said.
JV chases next Cannington
BHP Billiton has commenced drilling
at the Altia silver-lead-zinc deposit,
in the Cloncurry district, where it is
involved in a $10 million joint venture
project with Breakaway Resources.
Breakaway said a high-capacity
diamond drill
rig had been
commissioned to
drill a deep hole
of about 1000m
as part of an
initial program of
5000m of diamond
drilling.
Th is forms a key
component of
BHP Billiton’s
fi rst-year
minimum expenditure commitment of
$1 million under the farm-in and joint
venture agreement Breakaway secured
with the global mining giant last
November.
Breakaway said the focus of planned
exploration under the joint venture
was based on the strong geological
similarities between the Altia
mineralisation and the world-scale
Cannington silver-lead-zinc mine,
located 100km to the south along the
same geological corridor.
“Bonus” scandium discovery
Metallica Minerals has discovered high-
grade scandium mineralisation near the
former Greenvale nickel mine, about
190km west of Townsville in North
Queensland.
Th e company said the presence of
scandium at the Lucknow nickel-cobalt
deposit added to its existing scandium
resource at the Kokomo project, about
50km north-north-east of Greenvale.
Managing director Andrew Gillies
said this left Metallica ideally placed
to become the world’s major long-
term supplier of scandium products
by developing its scandium projects
alongside the proposed NORNICO
nickel-cobalt project.
Meanwhile, the company expects to
generate an updated resource estimate
in July for its Greenvale nickel cobalt
deposit.
Th is would be used in pit design and
mine scheduling for the Greenvale
operations.
Tin deal canned
Consolidated Tin
Mines has opted
out of a deal to
acquire North
Queensland Metals’
tin assets in the
Herberton area of
North Queensland.
Th e company
announced recently
that, following
completion of due diligence and in light
of the current market conditions, the
board had decided not to proceed with
the proposed transaction.
Consolidated Tin Mines is
proceeding to a pre-feasibility study
at its Mt Garnet tin project in North
Queensland. It has commenced
discussions with potential Chinese off -
take and joint venture partners.
New head for uranium group
ERA chief executive offi cer Rob
Atkinson has taken up the chairmanship
of the Australian Uranium Association.
ERA owns and operates the Ranger
uranium mine in the Northern Territory.
Mr Atkinson replaces outgoing
chairman Dean Dalla Valle, who heads
BHP Billiton’s uranium business.
Wolfram Camp sells for $8m
Planet Metals has entered into a
binding Heads of Agreement to sell its
Wolfram Camp tungsten-molybdenum
project for $8 million to Tropical
Metals.
Th e operation, about 90km west of
Cairns, includes a 150,000 tonnes-per-
annum processing plant currently on
care and maintenance.
Tropical Metals, a Brisbane-based
private resource company, previously
held the Wolfram Camp project area
before farming out an 85 per cent
interest to Queensland Ores (now
known as Planet Metals) in 2004.
At present, Tropical Metals remains
in joint venture with Planet Metals,
maintaining a 15 per cent stake.
A revised independent resource estimate
prepared by Golder Associates recently
led to a 50 per cent increase in tonnage
and 45 per cent increase in grade for the
Wolfram Camp project.
Total resources now stand at 1.42
million tonnes at 0.60 per cent tungsten
and 0.12 per cent molybdenum.
Manbarrum changes hands
TNG Limited has sold its Manbarrum
zinc-lead-silver project to privately
owned Chinese resource company Teng
Fei Mining for $9.7 million in cash.
Under the terms of the sale agreement,
TNG will receive a 2 per cent net
smelter return on any future mining
production from the Manbarrum
tenements.
Th e Manbarrum project is located about
70km north-east of Kununurra in the
Northern Territory.
Barbara shows open-pit potential
Australian explorer Mt Isa Metals has
announced new copper and gold assay
results from exploration drilling in its
Barbara copper project, about 50km
north-east of Mount Isa.
Th e drilling has produced multiple
copper-gold intersections within the
near-surface sulphide deposit.
Mt Isa Metals managing director
Peter Spiers said the latest results had
extended the potential for open-pit
mineralisation at the site.
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17The Mining Advocate | July 2010 INDUSTRY UPDATE - HARDROCK
Iron ore shipments up
Territory Resources completed iron ore
shipments totalling 2.027 million tonnes
from its Northern Territory operations
for 2009/10, representing a 30 per cent
increase on last year.
“We have been able to maintain a fully
sold position for all our products from
the Frances Creek mine throughout
the GFC and the recent market
uncertainty,” managing director Andy
Haslam said.
“Territory has now cemented its
reputation as a reliable supplier of
quality high-grade iron ore in the
Chinese market.”
Call to revisit Aurukun project
Cape Alumina has urged the
Queensland Government to call tenders
again for the development of the
Aurukun bauxite deposits on western
Cape York.
Th e call was sparked by the recent
announcement that Chinese aluminium
manufacturer Chalco had allowed its
$2.5 billion development deal with the
Queensland Government to lapse due
to adverse conditions in the aluminium
sector.
Cape Alumina managing director Paul
Messenger said there were several
companies – including Cape Alumina –
that would be interested in developing
the Aurukun project.
“It is particularly important to call for
tenders again if the terms of the original
tender are to be changed – that is, if
the Government no longer requires
the developer of the Aurukun bauxite
deposits to build an alumina refi nery on
Queensland’s east coast,” he said.
Meanwhile Cape Alumina has
commenced a detailed review of its
Pisolite Hills bauxite mine and port
project near Mapoon on western
Cape York following the Queensland
Government’s Wild Rivers declaration
for the Wenlock Basin.
Th e company says the size of the High
Preservation Area surrounding the
Coolibah Springs complex in particular
would impact the project, meaning it
was no longer economically viable in its
present form.
However Natural Resources, Mines and
Energy Minister
Stephen Robertson
says the 500m
High Preservation
Area has struck
the right
balance between
environmental
protection and
sustainable
development.
Positive feasibility study
A recent feasibility study has concluded
that the Legend Phosphate Project in
north-west Queensland is positive and
robust against a number of fertiliser
market scenarios.
Legend International Holdings said it
was currently reviewing the Wengfu
Feasibility Study and would summarise
the project economics, forward strategy
and timeline in a public announcement
in late July.
Th e study outlined the economic
feasibility of the development of a
600,000 tonnes per annum (tpa) sulfuric
acid plant, 300,000tpa phosphoric acid
plant, 600,000tpa fertiliser plant, an
aluminium fl uoride plant and auxiliary
facilities.
Th e phosphoric acid plant would
initially be fed by crushed and screened
high-grade phosphate rock ore from
Legend’s Paradise North deposit,
followed by feed from a benefi ciation
plant located at Paradise South.
Th e study was completed under a
strategic alliance Legend formed late
last year with the Wengfu Group, a
major Chinese fertiliser producer.
A second study is also under way based
on expanded production rates.
Successful capital raising
Batavia Mining has completed a $4.8
million capital raising to Jiangyin Huaxi
Steel, enabling the company to focus
on an exploration
program at the
Roper River iron
ore project in the
Northern Territory.
Batavia has also
signed a heads
of agreement
with Jiangyin
Huaxi Steel for
potential off -take
arrangements for 1 million tonnes per
annum for a period of fi ve years.
Th e company said other Asian-based
groups had also expressed interest in
participating in the Roper River iron ore
project, either by taking part in future
share placements, off -take arrangements
or potential joint ventures.
Flying start for Mungana
Mungana Goldmines plans an
aggressive exploration program of about
100,000m of drilling over the next 18
months at its fl agship Mungana and
Red Dome gold projects in Queensland.
Th e company, which made its debut
on the Australian Securities Exchange
in June, aims to increase the current
measured, indicated and inferred
resource from 1.85 million ounces of
gold, 180,000 tonnes of copper and 13
million ounces of silver to more than 3
million ounces of gold in resource.
“Th is marks the beginning of a
signifi cant new chapter in gold
exploration in the Chillagoe region
of North Queensland,” Mungana
Goldmines managing director Pat Scott
said.
Solid results at Nicholson project
New assay results have confi rmed a
prospective and potentially large iron
ore project, with iron-rich outcrops
intermittently occurring over a distance
of 60km, at Phosphate Australia’s
Nicholson iron project in the Northern
Territory.
Th e company said the results were from
a recent heli-borne sampling program
over a project tenement 230km from
the Gulf of Carpentaria which also
contains its advanced Highland Plains
rock phosphate project.
Tanami steps up drilling
Australian gold producer Tanami Gold
has commenced the largest drilling
program in its history, with multiple
rigs in service across its Western Tanami
project in Western Australia and the
newly acquired Central Tanami project
in the Northern Territory.
Four rigs were under contract in June
and there were plans to increase to six
rigs within two months and up to eight
rigs within four months, the company
said.
Th e major drill program under way
at Central Tanami is designed to
elevate the quality and quantity of the
project’s gold resources in advance of
recommencing mining operations.
Th e recommencement of the Central
Tanami operations, combined with
production in Western Australia, is
expected to increase Tanami Gold’s
annual production rate to 200,000
ounces by the end of 2011.
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18 July 2010 | The Mining AdvocateBETWEEN SHIFTS
Transport and Logistics in the Tropics Conference
Mercure Inn, Townsville
Tony Cantarella and Ruth Stjernqvist (both from ARG) with Garry
Pinder (Intermodal Solutions).
Darren Stocks (McGrath Newcastle) and Mark Westbrook
(Seymour Whyte Constructions).
Sean Coff ey and Robert Haddow (both from Queensland Nickel).
Greg O’Shea (Xstrata Copper) and Nigel Kellie (BHP Billiton
Cannington).
Paul Ryan (Sun Metals) and Mauricio Mora (Lead Infrastructure
Engineering).
Murray Davis (Trade Queensland) and James Doyle (Department
of Employment, Economic Development and Innovation).
PHOTOS: Stewart McLean
Mackay Area Industry Network (MAIN) breakfast
Ocean International Hotel, Mackay
Karen Tomlinson and Irene Leard (both from Busy at Work). Terry Holt (Group Engineering) and Nat Byrne (Airconstruct
H.V.A.C.).
Renee Meares (MAIN) and Tony Caruso (Mastermyne).
Greg Mulhall and Mark Birkett (both from Team Supply Logistics). Tony Britton (JSIS) and Craig Joy (Workplace Consulting). Darren Crocker (MAIN) and Michael McGrath (NQ Cranes).
PHOTOS: Lauren Reed
19The Mining Advocate | July 2010 BETWEEN SHIFTS
Women in Mining and Resources Queensland networking event
Th e Purple Grape, Moranbah
Liza Prosper (Arrow Energy) with Melanie Gordon and Ros Green
(both from BMA).
Angela Marshall (BMA) and Veronica Bowater (BMA). Mal Broomhall (Lucas Drilling), Leah Ditton (Coalfi elds Training
Excellence Centre) and Donna Sheehy (BMA).
Helen North (BMA), Lynette Mossman (BMA) and Shirley Walk
(BMA).
Delaney Nugent (Queensland Minerals and Energy Academy)
with Karyn Looby (BMA).
Caroline Morrissey (Queensland Resources Council) and Natasha
Fee (Protector Alsafe).
PHOTOS: Erica Smith
Women in Mining and Resources Queensland networking event
Sita Krishna, Meredith Carter and Michelle Mason (all from Rio
Tinto).
Leanne O’Donoghue (BMA) and Mary Bulger (BMA).
Susan Denk (Unidel), Neat Walding (Rio Tinto) and Therese
Dower (Rio Tinto Technical and Innovation).
Malise Jenkins (Wesfarmers) with Chelsea Logan and Liesa
Plation (both from BMA).
Karin Baxter (BMA) and Deb Cheyne (Wesfarmers Curragh Mine).
PHOTOS: Sue Sands
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20 July 2010 | The Mining AdvocateBETWEEN SHIFTS
AusIMM Darwin social event
Shenannigans, Darwin
Dave Clark (AusIMM committee chair), Jennifer Parks (Cameco
Australia) and Colin Hallenstein.
Peter Middlebrook (HAR Resources) with Eileen McGovern
(Northern Territory Government).
Rolf Hallenstein (Arafura Resources) with Megan Kesty and Brian
Jones (both GHD).
Kristen Solen (Newmont), Joshua Northfi eld (Newmont), Bill Kmon (GHD) and John Davis (Exterra Resources). John Fisher (Petting Leases) with Mike Faucett (Northern
Territory Government).
PHOTOS: Christopher Knight
MITEZ dinner
Terrace Gardens, Mount Isa
Glenys Schuntner (Regional Development Australia - Townsville
and north-west Queensland) with Graham Barram (Queensland
Country Credit Union).
Brett Peterson (Mount Isa Chamber of Commerce), Patricia
O’Callaghan (Mount Isa Chamber of Commerce) and Shane
Cagney (McKinlay Shire Council).
Tracey Lines (Port of Townsville) with John O’Brien (CopperString
Project).
Tony Lucas (QR) with Ben Callcott (Charters Towers Regional
Council mayor).
Andrew Daniels (Cloncurry mayor), Betty Kiernan (State Member
for Mount Isa) and Nigel Kellie (BHP Billiton Cannington).
Robbie Katter (Mount Isa City Council councillor), Glen Graham
(MITEZ) and Rod Wilkinson (Department of State Development).
PHOTOS: Roslyn Budd
21The Mining Advocate | July 2010 BETWEEN SHIFTS
Queensland Nickel community open day
Yabulu refi nery, Townsville
Queensland Nickel employees Sally Hayer, Robyn Ward and Laura
Delaney.
Trefor Flood (Queensland Nickel) with wife Chris. Queensland Nickel worker Michael Style with Caitlin, 11, Cathy
and Sean, 9.
Steve Ingham and Alan Watts (both Queensland Nickel) with
Ross Gates (Queensland Nickel - retired).
Daniel Tey Chean from Clermont and Sally Bushell (Queensland
Nickel).
Danny Van Eerde and Hugh McKeon (both from Queensland
Nickel).
PHOTOS: Stewart McLean
Darwin Mining Club official launch
Parliament House, Darwin
Frederick Earnest (Vista Gold), John Carroll (John Carroll
Consulting) and John Baxter (Matilda Zircon).
Mike Watt (Gordian Corp) with Tom Harris and Meon Merington
(both from H2O).
John Robertson (Hays Recruiting) and Alister Trier (NTG Minerals
and Energy).
Gary Hill (G K Akers Contracting) and Tim Nicol (DET Vetis Schools). Daniel Moriarty (Coff ey) with Ian Johnstone (Batavia Mining). Alicia Sherwood (Rio Tinto Alcan), Natasha Spark (ERA) and Emily
Beresford-Cane (Rio Tinto Alcan).
PHOTOS: Christopher Knight
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23The Mining Advocate | July 2010 QME Feature
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Th e Queensland Mining and Engineering Exhibition (QME) is expected to attract more than 10,000 trade visitors this year and will include a record 550-plus stands.
But just how much wealth does the biennial trade show generate for the host city of Mackay and surrounding centres?
QME organisers, Reed Exhibitions, say the fi gure is defi nitely in the millions of dollars, but how many millions is not clear.
Th is year they will be working with the Regional Economic Development Corporation (REDC) in Mackay to better gauge its economic impact.
“QME is a signifi cant event for Mackay in terms of the economic
benefi t to the region, however to what extent is still unknown,” REDC acting chief executive offi cer Laura Sorensen said.
“REDC is currently working with the event organisers Reed Exhibitions to obtain the data necessary to actually quantify the economic benefi t to the regional economy.”
Th e event has seen steady growth in visitor numbers over the past decade, from 7398 at the fi rst QME in 2000 to 10,252 visitors in 2008.
Th ose fi gures - independently audited by the Central Audit Bureau - include only registered trade visitors, not accompanying family members or school groups, for example.
Mackay Tourism estimates
A new study aims to determine the true
extent of the economic windfall this major
trade show delivers for the Mackay region.
Numbers add up for QME Numbers add up for QME the event injects $7-8 million into the local economy through the purchase of local accommodation, meals, transport, entertainment, services and equipment hire by the organisers, exhibitors, trade delegates and accompanying persons.
QME represented probably the largest single infl ux of visitors into the city at any time of year, Mackay Tourism general manager David Phillips said.
“It is important economically, culturally and professionally for our community,” Mr Phillips said.
“We work closely with Reed Exhibitions and have a temporary visitors information centre set up in the showgrounds for the duration.”
Th e infl ux of visitors around QME fi lls almost every hotel room, caravan and cabin site in Mackay and spills into surrounding areas such as
Proserpine, the Whitsundays, Nebo and Sarina.
It comes against the backdrop of an already buoyant visitor trade fuelled by a strong regional mining industry and general growth.
QME exhibition manager Soren Norgaard said while accommodation would still be tight for the 2010 event, Reed Exhibitions had worked closely with Mackay Tourism to meet demand.
He said motel capacity in the city had increased since 2008 and visitors were also being off ered regional accommodation and transport packages as well as home-stay spots with local residents.
Extra commercial fl ights between Brisbane, Mackay and other centres would make it easier to fl y in and out for the event, he said.
And Reed Exhibitions has
partnered with Greyhound Buses
to provide a daily “QME run”
between Moranbah and Mackay.
Mr Norgaard said QME
organisers expected to attract
more than 10,000 people to the
exhibition again this year and up
to 200 conference delegates.
He said also QME would have
about 20 more exhibitors this
year compared to 2008, with an
impressive total of just over 550
confi rmed exhibiting companies.
“It has become a ‘must attend’
networking week for the mining
industry and a lot of companies
do time their product releases for
QME,” Mr Norgaard said.
After receiving a bucketing
during the 2008 event, the
organisers have this year
confi gured the exhibition fl oor-
space to include more undercover
area and sheltered walkways
connecting pavilions.
24 July 2010 | The Mining AdvocateQME Feature - Products and Services
Sabre Teeth self-sharpening
ground engaging toolsGraco Husky 1050 pumps
RAD makes an impact on safety
Queensland-based manufacturer Sabre Teeth will launch its
new patented range of self-sharpening ground engaging
tools during the Queensland Mining and Engineering
Exhibition (QME). The range is designed for use on wheel
loaders and excavator buckets as well as scraper blades fi tted
with standard Esco or Cat adaptors.
“Our teeth are long lasting and durable, with an extended wear life
because they self-sharpen during use,” Sabre Teeth marketing manager and
director Allan Stallan said.
Graco Australia is releasing a new conductive
polypropylene pump that can be grounded for use in
hazardous areas.
The model to be launched during QME 2010 is a double-
diaphragm pump that does not have any aluminium in its
external wetted parts and is ATEX-certifi ed.
It is part of the Husky 1050 range of pumps, which replace
Graco’s Husky 1040 range and are described as 30 per cent
more effi cient than those models.
RAD Torque Systems manufactures a range of pneumatic, battery
and electric-powered torque tools that apply very high bolt loads
with practically no operator eff ort.
Many people will be familiar with traditional impact or impulse
tools where the torque being applied is physically absorbed by
the inertia of the tool and the operator holding on to it for dear
life. The RAD tool in contrast has a non-impacting constant drive
which is controlled by regulating the air pressure or current in
conjunction with a NATA traceable calibration certifi cate for safe
and accurate torquing.
The pneumatic tools in the RAD range in particular produce
88 times less vibration than comparable impact wrenches and
operate at a noise level of less than 85 decibels, making the
tools extremely comfortable to use for long periods of time,
reducing fatigue and consequently increasing safety and
productivity.
RAD’s ultra-compact patented planetary gear reduction system
is also able to rotate independently to the tool handle, ensuring that no reaction forces
are transmitted back to the operator - an essential feature considering that they produce the highest power-
to-weight and accuracy of any similar tool on the market today.
For further information visit www.radtorque.com.au
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new
too
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l
bb
More intelligent solutions from AhrensDynamic Australian construction and engineering company, Ahrens, is making its presence felt in Mackay, with two
key building projects under way.
Ahrens is undertaking a full turn-key design and construction project for mining giant Monadelphous. The facility,
which will be used to maintain and fabricate heavy duty mining equipment, consists of a 1600m sq workshop as well
as offi ces and an ancillary building. Also in Mackay, Ahrens is working on a similar facility for D&T Hydraulics.
Whilst Ahrens specialises in design and construction, it has also established a reputation for the delivery of large and
complex materials-handling projects for the mining and grain industries.
To capitalise on this success, Ahrens recently established a dedicated materials handling-mining division to provide
infrastructure and expertise to Australia’s mining sector.
With its own structural steel fabrication facilities in Queensland and South Australia and in-house design, engineering and site erection teams, Ahrens is
well placed to explore new and challenging opportunities in the mining industry. The initial focus will be on train and truck loading and unloading systems,
conveyors, storage and covers and plant structural steel, as well as other projects that complement Ahrens’ core design and construction business.
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The expected 10,000 attendees at this year’s Queensland Mining and Engineering Exhibition (QME) will be
kept in cool comfort thanks to a temperature and
humidity control solution provided by Aggreko, the
global leader in the provision of temporary power
and temperature control services.
QME 2010 will take place at the Mackay
Showgrounds, inside temporary structures erected
specifi cally for the event.
“Ambient temperatures within the marquees
can reach up to 30C due to the large number of
visitors at the show, which can cause discomfort,
exacerbated by relative humidity,” said Stephen
Steenson, operations director for event organisers
Reed Exhibitions.
“The cooling solutions provided by Aggreko can
lower the temperature by approximately 8C,
depending on other variable factors. “This provides signifi cant relief, particularly to foreign visitors who may
not be accustomed to Queensland’s high temperatures.”
Aggreko has the world’s largest fl eet of rental chillers and the equipment to be used at the Mackay exhibition
is from the same fl eet used for mine cooling other industrial applications. For more information on Aggreko’s
capabilities, visit www.aggreko.com.au
As a member-owned co-operative, the Maritime, Mining
and Power Credit Union is 100 per cent committed
to the workers of those industries, their families and
communities. The credit union is proud of its record of
standing by its members and delivering better all-round
value through its products and services. All operating
surpluses are returned to members by way of lower
interest loans, higher interest savings and investment
rates as well as additional member services.
Minprovise will be demonstrating its new low-
profi le loader during the Queensland Mining
and Engineering Exhibition in Mackay.
Developed and built in Western Australia,
the Dugless 900 conveyor spillage cleaning
and digging unit is a fully remote-controlled
compact crawler.
It has been specifi cally designed to safely clear
material spillage from inaccessible and remote
points on mining conveyor systems.
Hydco International will unveil its new multi-purpose
exploration drill rig at Mackay’s industry expo in July.
Its 1200H rig in multi-purpose format, displaying many of
Hydco’s latest features, is capable of taking core samples to
depths in excess of 2000m.
At the same time, it can comfortably handle both open-hole
and 4½ RC work using a plug-in air system.
The deep diamond rig is available in truck or track mounts,
with a variety of options to suit individual requirements.
Finlay Screening & Crushing Systems will introduce a new jaw crusher with
a throughput capacity of up to 700 metric tonnes per hour during the 2010
Queensland Mining and Engineering Exhibition.
The latest addition to the Terex Finlay crushing range, the J-1480 crusher has
a 1370 mm x 762 mm single toggle jaw crusher chamber.
Its 10sq m hopper has hydraulically folding sides and a hydraulic wedge
clamp system to provide faster machine set-up time.
Draeger Safety Pacifi c has announced a new addition to its
range of self-contained oxygen self-rescuers for emergency
situations.
The Draeger Oxy 6000 self-rescuer, to go on show at QME,
includes a “Safety Eye” feature to check for the presence of
moisture and yellow potassium peroxide fragments within
the device.
Consisting of a mouthpiece, nose clip and protective
goggles, Draeger says the Oxy 6000 has been tested in the
harshest mining applications and off ers a 10-year lifetime
without maintenance.
Haulotte Australia has developed a new combination front-end
loader, backhoe loader and excavator machine.
The three-in-one Multijob MJX, to be launched during QME 2010,
is described as perfect for confi ned job site spaces.
It has a pushing force of 9 tonnes, a lifting capacity of 3.2 tonnes
and a turning circle of 4.2m. The front-end loader option has a
reach of 3.5m and a lifting height of 4.3m, while the excavator has
a reach of 7.1m and can dig down as far as 4.1m.
Tamec Services will use QME 2010 to
showcase a new conveyor change-out
system off ering shaftless rolls.
The company says the DunnEasy Idler’s
innovative design speeds up change-out
while reducing the risks normally associated
with maintaining conveyor idler rolls.
The shaftless rolls are up to 70 per cent lighter
than competing products. Roll resistance and drag
are greatly reduced, cutting running costs by as much
as 50 per cent through lower electrical loadings.
25The Mining Advocate | July 2010 QME Feature - Products and Services
Aggreko cools mining’s hottest event
Putting you fi rst
Minprovise Dugless 900
Hydco 1200H drilling rig
Terex Finlay J-1480 crusher
Draeger Oxy 6000 self-rescuer
Haulotte Multijob MJX
Tamec DunnEasy Idler
eee
VIBXPERT IIPruftechnik has launched the VIBXPERT II,
the latest vibration data collector and
signal analyser based on German
engineered technology. The device
combines the proven features of its
predecessor with the advantages of
faster processors to reduce measuring
times and a brilliant energy-effi cient
colour display to provide intuitive
operation. The VIBXPERT II has
proven features for users in industrial
maintenance for the monitoring and diagnosis of machine
conditions. Numerous evaluation functions and practical measurement
templates ease analyses of complex machinery problems and routine
measurements on site. With a large data memory of 2 GB and long-life
lithium ion batteries, data collection of up to eight hours can be achieved
without interruption.
VIBPr
26 July 2010 | The Mining AdvocateQME Feature
Proud to be part of the Australian Mining Industry
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This information is of a general nature and does not take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, consider your fi nancial requirements and read our Product Disclosure Statement, which is available on our website or by calling us. AustralianSuper Pty Ltd ABN 94 006 457 987 AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898. *Investment returns are not guaranteed, as all investments carry some risk. Past performance gives no indication of future returns. **Total and Permanent Disablement. ‘Industry Super Fund’ logo used with permission of Industry Fund Services (IFS) and this consent has not been withdrawn at the date of publication.
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As one of the largest industry super funds,
AustralianSuper looks after the retirement
savings of over 1.4 million everyday
Australians.
We look forward to seeing you at the
Queensland Mining & Engineering Exhibition
(Mackay) from 27–29 July (Booth 3050).
“AustralianSuper has many “AustralianSuper has many
members and employersmembers and employers
in the mining sector.in the mining sector.
Come and see me atCome and see me at
QME in Mackay to fi nd outQME in Mackay to fi nd out
how we can help youhow we can help you
in retirement.”in retirement.”
An industry conference is being
held in Mackay in conjunction
with the Queensland Mining and
Engineering Exhibition (QME)
for the fi rst time this year in a
move to add further value for
visitors and attract more senior
industry representatives.
Th e conference has the theme
of “Mining 2010 and Beyond:
maximising resources, alliances,
technology and innovation for
a sustainable future”, and will
be held on the fi rst two days
of QME at the nearby Mackay
Entertainment and Convention
Centre.
“We have an excellent line-up
of speakers and papers for this
conference – which is only fi ve
minutes’ walk from the exhibition
site,” QME exhibition manager
Soren Norgaard said.
Mr Norgaard said an industry
conference had been held to co-
incide with the 2008 exhibition,
but was sited north at Airlie
Beach in a bid to ease pressure
on Mackay accommodation.
“We had a bit of learning from
that. It was too far removed from
the wider exhibition,” he said.
“Mackay in the meantime has
got a state-of-the-art conference
facility just down the road from
QME – it fi tted perfectly.”
Queensland Mines and Energy
Minister Stephen Robertson
is due to launch the event with
a presentation covering issues
including smart energy and
mining initiatives, Queensland
exploration incentives, assessing
the social impact of the current
resources boom, an update on
the Abbot Point/Gladstone port
expansion, and the government’s
commitment to supporting
foreign investment.
Queensland Resources Council
chief executive Michael Roche
will deliver the keynote address
on the subject of “Optimising
resources, technology and
relationships for sustainable
industry growth”.
Mr Roche is expected to
cover such issues as making
the best use of technological
breakthroughs, sustaining
the coking and thermal coal
industry, forming alliances and
A full program of topical presentations at
a nearby venue is expected to prove the
perfect complement to this year’s trade expo.
Mining conference adds value
partnerships, the industry’s
readiness for “Boom 2” and
global demand for clean coal and
LNG.
Other key participating
organisations in the 2010
conference include Peabody
Energy, Bow Energy, Pacifi c
National, Wesfarmers, Gladstone
Ports Corporation and the
Mackay Regional Council.“Th is conference will provide
an unmatched forum to address critical issues pivotal to the current and future sustainability of the Queensland mining industry,” Mr Norgaard said.
“Renewed industry optimism following the GFC, through heightened regional demand and fast-tracked developments in clean energy technologies and projects, make the timing of this conference highly relevant to the Queensland mining industry.”
Th e full conference program and registration details are available at www.queenslandminingexpo.com.au/en/conference.
The Mackay Entertainment and Convention Centre.
Organisers are encouraging prospective visitors to the 2010 Queensland Mining and Engineering Exhibition (QME) to pre-register for the event.
“We strongly encourage anyone interested in visiting QME to pre-register, as it allows them to maximise their time at the show, looking at the latest products and services, and talking to suppliers and peers and colleagues,” exhibition manager Soren Norgaard said.
People can pre-register on the QME
website at www.queenslandminingexpo.com.
au/en/visiting/register-to-attend and have an
E-Badge emailed to them.
Th e exhibition will be held at the Mackay
Showground from July 27 to 29, while the
associated QME Mining Industry Conference
will be held on July 27 and 28 at the Mackay
Entertainment and Convention Centre.
Pre-register online
WINCome and see Ray Robertsonat Australian Super QME booth #3050
to complete anentry form
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QME Feature
QME 2010 is being billed as the event that will set the scene for a central Queensland mining sector that is set to take off again in what is being referred to as “Boom II” for the industry.
QME exhibition manager Soren Norgaard said the latest investment forecasts for the resources industry showed sustained positive growth for Queensland over the next fi ve years.
“Th is surge in growth and activity – driven largely by demand for coal from China – means QME 2010 will be an ideal chance to see the latest products and services in a single location, plus an unmatched opportunity for people to network with their colleagues and peers,” he said.
Th e value of mining projects in the pipeline for the Mackay-Whitsunday-Isaac region was
Feeling the bang of ‘Boom II’The latest industry exhibition opens in
Mackay against the backdrop of surging
activity across the state’s resources sector.
– mainly due to companies updating and increasing various project estimates.
New additions to the list included a proposed expansion for the Lake Vermont coal mine, 18km north-east of Dysart, and QCoal’s Drake project, a six-million-tonne-per-annum open-cut mine to be located 17km south of Collinsville.
Both are listed as being under study in the register compiled by the REDC for the three months ending May 30.
Th e register lists more than $50 billion worth of development under study, committed, under construction or recently completed across all sectors throughout the region.
Acting REDC chief executive offi cer Laura Sorensen said the total value of such projects had increased by $1.8 billion since the last listing.
“Th e past quarter has also seen a number of projects progress from a status of committed to under construction. Th is is a very positive sign that it’s business as usual,” she said.
Former Australian rugby league and rugby union international Wendell Sailor will help launch a new networking function at this year’s QME event.
Th e Sarina-born sporting star is booked as guest speaker for the “Night to Remember” function on the Tuesday night of QME exhibition week.
“We’ve always had an exhibitors’ function – a casual cocktail function for the exhibitors to get to know each other on the opening day,” QME exhibition manager Soren Norgaard said.
“What we’ve found, as
QME has become more and
more of a networking event,
a lot of exhibitors get out and
have meals with clients in the
evenings.”
Th e new function would
provide a central location
for exhibitors to network
with invited clients as well as
conference delegates, he said.
Th e event, at the Mackay
Entertainment and Convention
Centre, will include live
entertainment, refreshments and
canapés.
estimated at $14.6 billion in the
latest Regional Development
Register.
Th e Regional Economic
Development Corporation
(REDC), which produces the
register, said this had grown $998
million since the previous quarter
Soren NorgaardQME exhibition manager
Wendell to kick off event
Footy hero
Wendell Sailor
will be guest
speaker at a new
QME networking
function.
29The Mining Advocate | July 2010 Health and safety conference feature
Organisers are expecting attendance numbers to reach 600 at this year’s Queensland Mining Industry Health and Safety Conference, to be held in Townsville from August 22 to 25.
Conference chairperson Greg Dalliston said the 2010 event boasted a strong line-up of Australian and international speakers, including UK Health and Safety Laboratory chief executive Eddie Morland and US Offi ce of Mine Safety and Health Research principal engineer Tom Noval.
Th e keynote presentation on the opening night will come from retired Major General Jim Molan, whose 40-year Australian Army career included a posting as the Coalition’s chief of operations in Iraq.
Mr Dalliston said work under way to “harmonise” mining legislation across Australia as part of a new national occupational health and safety framework would be among the key issues discussed at the conference.
Federal Department of Resources, Energy and Tourism coal industry and mine safety manager Michael Alder is due to provide an update on the process.
Mr Dalliston described the Townsville conference as a premier event on the nation’s occupational health and safety calendar.
“We see it as defi nitely the peak mining industry health and safety conference in Queensland, if not Australia,” he said.
“It is something where all diff erent levels of industry and
The resource industry is gearing up for what
is considered a premier event on the nation’s
occupational health and safety calendar.
providers like consultants and training groups can get together.”
Queensland Commissioner for Mine Safety and Health, Stewart Bell, also stressed the
great opportunities the Townsville conference provided for people from all levels of mining to get together and discuss key issues.
“You have people there from CEOs to people working at the face,” he said.
“It’s a good opportunity to talk to each other, also to listen to what’s been going on in research in OHS (occupational health and safety) and get a feel, from time to time, as to how other industries are addressing the issues we face.”
Mr Bell said the 2010 conference would include a session on proximity detection, an issue he was keen to keep at the forefront of the industry’s agenda.
Th e Queensland Mining Industry Health and Safety Conference is jointly hosted
by the Queensland Resources Council, the Queensland Government, and mining unions the CFMEU and AWU.
Mr Dalliston – who is a CFMEU district union inspector - said the event the refl ected the stakeholders’ strong belief in a tripartite system for looking after the health and safety of Queensland mining industry employees.
Th is year’s conference has the theme “Simple solutions to complex problems”.
In addition to the program of papers and facilitated discussion, the four-day conference features the annual Innovation Awards. It will also include a charity auction to benefi t the Mater Foundation’s work on prostate cancer.
New South Wales industry group Coal Services will set up a virtual reality theatrette at the upcoming Queensland Mining Industry Health and Safety Conference to showcase the training modules it has developed using 3D imagery.
Th e technology takes participants through realistic mine-site scenarios to help practise their response in emergency situations without being subjected to risk.
Coal Services chairman and executive director Ron Land will be also be one of the keynote
speakers at the conference.“My address will focus on this
innovative, highly interactive technology and how our world’s best practice platforms will assist with training the next generation of Australian mine workers,” Mr Land said.
“We know the power of virtual reality – that the capacity to remember safety information after experiencing situations in a virtual world far exceeds a trainee’s ability to translate information from a lecture in a classroom.”
Forget tonsillitis or bronchitis - mining sites are suff ering a bad case of 5x5-itis when it comes to their safety approach, according to Professor Jim Joy.
Th e director of the Minerals Industry Safety and Health Centre (MISHC) at the University of Queensland said many people were obsessed with measuring the level of risk attached to every situation through repeated use of the familiar 5x5-column risk management tables, at the expense of control eff orts.
It’s a condition he hopes to help cure through an address at this year’s Queensland Mining Industry Health and Safety Conference.
Professor Joy said he planned to tackle the challenges presented by the complexities or perceived over-complexities of the process of
Strong line-up for 2010
managing risk on mine sites.Th e importance of this issue
had been reinforced by a series of interviews MISHC had conducted with senior mining personnel and stakeholders such as the CFMEU (Construction, Forestry, Mining and Energy Union)and the State mines and
energy department, he said.“What came across
increasingly was the over-complexity of the risk management approach or a perception that these systems are not providing as much value as they should,” Professor Joy said.
Th ere were concerns that some systems which had developed over time now overlapped, required too much time and eff ort, lacked quality in their outcome and had lost their connection with the way a mine was really managed.
“It’s my intention in my paper to talk about fi ve or six relatively simple things that try to address the perception of complexity,” Professor Joy said.
“It’s revisiting why we are doing the risk management thing rather than just talking about what we are doing.”
Shot of Joy to cure safety woes
Professor Jim JoyUQ MISHC director
Virtual is now realityUnderground miners in a virtual reality longwall scenario.
Greg DallistonQueensland Mining Industry Health
and Safety Conference chairperson
to
Townsville Entertainment & Convention Centre (TECC)
and Jupiters Townsville
To all those involved in health and safety in the Queensland Mining Industry… We invite you to join us in Townsville in August to hear from industry experts from around
Australia and Overseas and also to share your own experiences in finding ‘Simple Solutions to Complex Problems’
For Further Information and to Register for the Conference;Telephone Acclaim Special Events and Meeting Management on 07 3254 0522Or download the Registration Form at - www.qldminingsafety.org.au
30 July 2010 | The Mining AdvocateHealth and safety conference feature
A Townsville-based consultancy has fl agged the urgent need for businesses to make themselves aware of new risk management standards.
Th is followed the recent adoption of an international standard in this area, CSM Safety Services director Craig Stewart said.
“Australia had a widely respected standard (AS/NZS 4360 Risk Management), which was readily accepted and utilised by a wide range of businesses,” Mr Stewart said.
“Th is has now changed to an international standard that will guide Australia in an equal risk management process adopted in best-practice industries around the world.”
Th e variations of the revised standard, (AS/NZS ISO 31000:2009 Risk Management – Principles and Guidelines), were best interpreted and implemented by experts, Mr Stewart said.
“Risk is now defi ned in terms of the eff ect of uncertainty on objectives,” he said.
“Th e principles that organisations must follow to achieve eff ective risk management have now been made explicit.
“Th ere is much greater emphasis and guidance on how risk management should be implemented and integrated into organisations through the creation and continuous improvement of a framework.
“Also, more information is provided describing the
attributes of enhanced risk
management.
“Th is recognises that while
all organisations manage risk in
some way and to some extent,
this may not be optimal.”
CSM Safety Services has
qualifi ed risk practitioners
who can assist with hazard
identifi cation, risk management
processes, risk management
training and manager coaching.
Businesses have legal
obligations to ensure
that adequate control/
management practices
are successfully
implemented to reduce
hazards and associated
risks, especially in the
health, safety and
environmental spheres.
Interpreting the ramifi cations of Australia’s adoption of an international
standard may require expert advice, according to a safety services fi rm.
New risk regime
Zero Harm starts with proper
interactive education and
training, according to List
Premier Education executive
chairman Johann DeBeer.
Dr DeBeer said interactive
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option to eliminate the possible
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Dr DeBeer’s school-based
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world’s largest interactive touch
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Th e company recently
developed the VisualTrade Skills
Development and VisualSafety
programs for mines and
manufacturing industries.
Technology lifts training outcome
List Premier Education recognises the fact that modern students are accustomed to modern technology, graphics and displays and incorporates these elements into their modern training approach.
Th is Australian company is a world leader in interactive
education, specifi cally for use on a larger touch board in a classroom situation, facilitated by a certifi ed trainer.
Dr DeBeer said some of the signifi cant advantages of these training programs, technology and methodology included:
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31The Mining Advocate | July 2010
Th e term “sick building syndrome” is widely associated with spates of respiratory problems and general ill-health among city workers who spend their days in multi-storey offi ce towers.
But occupational hygiene consultant David Corbett believes “sick donga syndrome” may be a major sleeper issue for mining and construction work sites throughout regional Queensland.
Mr Corbett, operations manager for Field Enviro, said demountable buildings had become an offi ce space mainstay for civil construction and mining projects.
In a decade-long career in occupational hygiene, Mr Corbett said he had encountered many cases of sick building syndrome in urban areas, but his work in the Mackay region in the last few years had highlighted the potential hazards of donga-style workplaces.
“Perhaps one of the greatest factors aff ecting air quality in
dongas is that their installed airconditioning systems generally rely on a high proportion of recirculated air to maintain a constant temperature,” he said.
“Most seasoned site personnel could certainly attest to the fact that donga airconditioners are generally not well maintained, are poorly fi tted and refi tted, and often do not work at all.
“Poor air circulation, coupled with overcrowding and poor standards of housekeeping make dongas a potential haven for a variety of biological, chemical and physical agent contamination.”
One of the biggest issues was the build-up of carbon dioxide during the day as companies pushed more workers into these small spaces for shifts of up to 12 hours at a time.
Th is caused drowsiness, dehydration, headaches and nausea at elevated levels, he said.
“Th e CO2 is not building up to dangerous levels, but it is reaching levels that can aff ect performance,” Mr Corbett said.
The increased use of demountable units as
on-site offi ce space poses potential health
risks due to air quality issues, an expert says.
While the level of CO2 in
an indoor environment was
generally about 450 parts
per million, Mr Corbett said
monitoring had shown some
airconditioned donga offi ces were
reaching 1000 parts per million
by morning tea.
He said the incubation and
spread of diseases like infl uenza
was another issue that employers
could not aff ord to ignore.
Other internal air quality issues
often aff ecting donga-style work
spaces included the presence of
bacteria or fungal spores, dust,
‘Sick donga syndrome’ warning
David CorbettField Enviro operations manager
Health and safety conference feature
generator or vehicle exhaust fumes (due to poor placement of airconditioning intakes), and the presence of contaminants from furnishing or construction materials and processes.
Of these potential contaminants, Mr Corbett said formaldehyde was especially problematic as many people were very sensitive to small quantities.
Th e fi rst line of defence against “sick donga syndrome” is prevention through eff ective maintenance and hygiene programs.
If those measures failed to address adverse health eff ects, Mr Corbett said companies should consider monitoring to ascertain levels of surface and airborne contamination in building spaces and institute targeted control measures to improve the indoor air quality.
In a statement on donga air quality, Workplace Health and Safety Queensland noted that off -gassing problems from urea formaldehyde foams in wall cavities had been common in the 1980s and 1990s until foam stability problems were overcome.
“Formaldehyde, even in low concentrations, can cause a range of respiratory eff ects. At
higher concentrations it causes tearing of the eyes,” a Workplace Health and Safety Queensland spokesman said.
“Some of the manufactured wood products such as particle board and Medium Density Fibre (MDF) board may also be manufactured using urea formaldehyde adhesives which can slowly off -gas for a considerable period after initial manufacture.
“Th is can add to the volatile organic compounds (VOCs) in an enclosed space.”
Th e use of fully recirculating split-system airconditioners with no regular take up of fresh air presented problems including carbon dioxide build-up, while in humid environments there was also the threat of mould proliferation, he said.
Th e spokesman said there were no specifi c regulations relating to donga air quality under Queensland’s Workplace Health and Safety Regulation 2008 when those units were used for accommodation.
“However, where such units are used as workplaces, the exposure standards appropriate to any of the VOCs (eg formaldehyde) would apply,” he said.
Sleepiness contributes to poor vigilance, slower reflexes and a reduced ability to think clearly or make informed decisions.
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32 July 2010 | The Mining AdvocatePROCESSING
A new generation of technology is overturning old perceptions and creating fresh interest in the use of online spectral analysis within the coal and power industries, a Mackay-based supplier says.
RTI has installed 10 online analysis machines in Queensland – nine of those within the Bowen Basin – as well as making two sales in New South Wales and one in Victoria over the past three years, according to chief executive offi cer Dr James Asbury.
Dr Asbury said RTI had entered a market that was disillusioned by the poor performance of the earlier chute-style analysers and lack of service from the companies that had supplied the equipment.
“Th ere was a lack of confi dence in the market and nobody supporting the analysers,” Dr Asbury said.
“Th ere was a feeling they didn’t work. Within the last three years we’ve been able to turn that around signifi cantly and the market seems to be waking up now.”
RTI sells analysers that can measure the coal quality in the entire production line from the run-of-mine coal through the coal washing process in order to generate a consistent and accurate fi nal quality of coal.
Dr Asbury said such technology helped operators ensure ash content in their product did not exceed customers’ specifi cations.
Spectral analysers could also provide power generators with a full elemental breakdown of the
The ability to measure quality accurately across
an entire run of material off ers a raft of benefi ts
for industry, writes Belinda Humphries.
New wave
coal coming into plants.
Importantly, the real-time
nature of the analysis and the fact
the devices scan the entire run
of material rather than taking
samples enables power stations to
identify spikes in ash content and
various other elements across the
supply.
Dr Asbury said this allowed
operators to make adjustments
to ensure the coal continued
to burn effi ciently and without
unacceptable emission levels.
Online spectral analysis also
provides a clear picture of sulphur
content – important in controlling
emissions - and iron content,
which can cause slagging in the
boiler if levels are too high.
“Power stations more and more
are becoming very interested in
monitoring the elements to run
more eff ectively,” Dr Asbury said.
“Even if they can increase
effi ciency by 1 per cent – that’s a
very signifi cant return over a year.”
North Queensland sugar mill
operator Sucrogen aims to
keep more of its fabrication
and fi tting work in-house
in the face of tough pricing
competition and skill demands
from the mining industry.
Sucrogen operations
manager for cane products
Craig Doyle said the company
had increased internal work
in that area by as much as
300 per cent in the lead-up
to the 2010 crushing season
compared to last year.
“We’re keen to continue that
– it’s working well,” he said.
Sucrogen, formerly CSR
Sugar, operates seven mills
across the Herbert, Burdekin
and Sarina cane districts.
While it would continue to
be a major client for regional
engineering and fabrication
fi rms, Mr Doyle said a number
of factors favoured stepping up
such work at Sucrogen’s own
workshops.
Th ese included making
better use of permanent
employees outside of the
six-month crushing season,
preserving knowledge within
the company and cost
advantages.
“When you are up against
the mines, in mining booms
the quotes for outside work
increase,” Mr Doyle said.Mr Doyle said Sucrogen
had been undertaking a lot of boiler duct and vessel work itself as well as building a massecuite reheater and rotary juice screen.
He said Sucrogen would continue to outsource specialised work, but believed it could manage as much as 30 to 50 per cent of fabrication and fi tting work in-house.
“For every large job we will still get quotations and ask our internal workshops to quote to ensure there’s a cost advantage for us to do it,” Mr Doyle said.
Sucrogen completed a major capital works and maintenance program across its operations prior to the start of crushing in June and expects to process 13 to 14 million tonnes of cane this year.
Mr Doyle said the largest project had been the replacement of six old evaporators at the Inkerman Mill in Home Hill with two modern units.
Th e vessels were fabricated off site by Bundaberg Walkers Engineering Limited and assembled with the use of a 350-tonne crane.
Th e improvement program also included replacement of the No. 1 boiler stack at Invicta Mill, Giru.
EDMS Australia built the new stainless steel stack, which was installed in three sections.
Mr Doyle said Sucrogen had invested hundreds of millions of dollars in capital and maintenance over the past three years.
Sugar mills keeping more fabrication work in-house
A 31-tonne
evaporator
top cone is
lifted into
place at
Inkerman
Mill.
Photo: Michal
Beroun
Coal scans back in demand
Dr James AsburyRTI chief executive offi cer
33The Mining Advocate | July 2010 EMISSIONS
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Th e sun is shining on the western Darling Downs region as a hub for Queensland’s emerging solar energy industry.
Two of eight projects shortlisted under the Federal Government’s $1.5 billion Solar Flagships Program have nominated Kogan Creek, near Chinchilla, as their planned development site.
Th is comes on top of CS Energy’s planned $98.8 million solar boost project at the existing coal-fi red power station.
Electricity infrastructure associated with that facility as well as the skills pool built up by the existing mining and energy industry in the region are part of the attraction.
So too is climate, with the area enjoying an average daily solar exposure of more than 21 megajoules per square metre, according to the Bureau of Meteorology.
“You get lots of hours of sunshine and not too much hostile weather,” CS Energy chief executive David Brown said.
Th e region compared well with parts of California in the United States and Spain which had established commercial solar operations, he said.
Parsons Brinckerhoff is among the solar proponents in the area, with what it hopes will be the fi rst of many solar thermal and photovoltaic projects to be rolled out throughout the country over the next 10 years.
Client relationship executive for generation and renewables Craig Chambers said many of the skills required for this fl edgling industry would mirror those found in the
Bright prospectsKogan Creek is shaping up as a hot spot
for renewable energy, bringing new work
opportunities in existing skill sectors.
surrounding mining and energy sectors.
Parsons Brinckerhoff is preparing a detailed proposal for a 150MW solar parabolic trough power plant at Kogan Creek as part of a consortium that also involves CS Energy, Siemens, John Holland, Infrastructure Capital Group, the Queensland University of Technology and Curtin University.
AREVA will establish manufacturing facilities at Kogan Creek for its role in CS Energy’s solar boost project and says the way is open for those facilities to be used in other works.
Th is will translate into local jobs, according to commercial director for AREVA Solar in Australia, Anthony Wiseman.
“One of the features with AREVA technology is that, unlike a lot of other competing solar technology, it requires a lot of local involvement,” he said.
Simple fabrication work was required to transform materials
such as fl at glass plates and steel sections into the refl ector component of the linear fresnel solar installation, he said.
Th e modular nature of that process meant local suppliers could quickly get up to speed and develop some solar experience without heavy capital outlay, he said.
Mr Wiseman described the region as a “hot spot” in terms of solar power potential and said this would be enhanced by the development of local skills in the industry.
AREVA is also involved in a proposal by Wind Prospect CWP to use linear fresnel technology to construct a 250MW power plant at Kogan Creek.
Th at project and Parsons Brinckerhoff ’s Solar Flair Alliance project at Kogan Creek are among eight set to share in $15 million of feasibility funding under the Solar Flagships program.
Electricity generator CS Energy is taking another major step in its drive to cut carbon emissions, with construction due to start within months on a solar boost project at Kogan Creek.
Harnessing new technology has already helped the State Government-owned corporation reduce the rate of CO2 emissions from its power plants by about 17 per cent since 1997, according to CS Energy chief executive David Brown.
Now it is turning to renewable energy at Kogan Creek, in addition to its involvement in the ground-breaking carbon capture and storage venture – the Callide
Oxyfuel Project, to help take that low-carbon philosophy further.
“We’ve got a target for 2030 of dropping from where we are now, where we produce about 830kg of CO2 for every megawatt hour generated, to under 400kg,” Mr Brown said.
Th e solar boost project will improve effi ciency and increase capacity at the 750MW Kogan Creek power station by up to 44MW by augmenting the plant’s feedwater heating process.
“In simple terms, the solar boost will enable Kogan Creek to produce more electricity with the same amount of coal,” Mr Brown said.
International solar energy fi rm AREVA - which already has a 5MW solar thermal installation operating at Kimberlina in California - will provide the technology.
Mr Brown said the Kogan Creek project would be the largest deployment of AREVA’s solar thermal energy technology in the world and the largest solar project of any kind in the southern hemisphere. It will include a 30ha solar fi eld using compact linear fresnel refl ector technology to collect energy.
Th e solar boost plant is expected to become operational by mid 2012.
Carbon-cutting agenda
An AREVA solar thermal facility at Kimberlina. Photo: courtesy AREVA Solar
David BrownCS Energy chief executive
34 July 2010 | The Mining AdvocateMAJOR PROJECTS UPDATE
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Development of the proposed $1.5 billion South Galilee coal operation outside Alpha will be tied to progress on the neighbouring Warratah Coal and Hancock Prospecting projects.
Bandanna Energy managing director Ray Shaw said the project would “piggy back” to some extent on transport infrastructure established to support those major developments and was dependent on at least one of them going ahead.
Bandanna Energy and its farm-in venture partner AMCI are in the prefeasibility stage of their project, located south-west of Alpha in the Galilee Basin.
Th e South Galilee venture, recently declared a signifi cant project by the Queensland Government, has the potential to support annual production of up to 20 million tonnes of thermal coal for export over a mine life of more than 40 years.
State Premier Anna Bligh said the project could generate 2000 construction jobs, a permanent operational workforce of 750 people and numerous support jobs for suppliers and contractors.
Dr Shaw said the South Galilee mine was most likely to come online after the other major projects had started and were ramping up production.
Warratah Coal and Hancock Prospecting have previously
The latest Galilee Basin venture to be declared a
signifi cant project is expected to ‘piggy back’ on
infrastructure developed by other local players.
Mine plans tied to neighbours
indicated a potential start in coal
exports from the Alpha region as
early as 2013.
“Our production (timeline)
will be dependent upon the other
proponents out there, regarding
port and rail corridors,” Dr Shaw
said.
“Th e Queensland Government
has made it clear they would
like to see third party access
and no duplication of major
infrastructure such as the rail
corridor.”
AMCI is conducting a
140-hole drilling program to
better defi ne the South Galilee
coal resource and gain more
information on coal quality
and distribution to assist mine
planning.
“Th at process will be
completed probably in the fi rst
half of next year,” Dr Shaw said.Dr Shaw said there was no
doubt the coal projects in the pipeline in the Alpha area would provide major impetus for regional development.
“Th e eastern part of the Galilee Basin will become, in a number of years, a very signifi cant coal province - not only in Queensland, Australia, but also the world,” he said.
“It will take the major players that we’ve got in the area at the moment to help develop that.”
Dr Shaw said the critical mass had defi nitely been established
to ensure that either most or all
of the four major coal projects on
the table would go ahead.
A spokesman for the Offi ce of
the Minister for Infrastructure
and Planning said proponents
had predominantly developed
their plans independently of each
other to date.
However, the State
Government had worked
extensively with the parties to
identify common objectives
and project opportunities
which would deliver effi cient
infrastructure utilisation and
outcome, he said.
Ray ShawBandanna Energy
managing director
Drilling at the South Galilee project.
Th e South Galilee Coal Project joins three other coal mines and a power station proposal in the Galilee Basin in gaining signifi cant project status from the State Government.
Th ese include Hancock Prospecting’s proposed Alpha coal project, which would include a mine 40km north-west of Alpha and transport infrastructure to be developed at an approximate cost of $7.5 billion, as well as that company’s Kevin’s Corner project, 56km north of Alpha.
Waratah Coal’s $7 billion China First proposal to develop an open-cut coal mine north-west of Alpha and related transport infrastructure is also listed, along with its plans to build a “clean coal” power station in the region.
Among the other coal developments in the pipeline throughout Queensland which have been declared signifi cant are
• Th e proposed $2 billion Belvedere coal mine 7km north-east of Moura in the Bowen Basin,
production of an additional 20 million tonnes of coal annually through staged developments in the Moranbah area, including the new Daunia and Caval Ridge open-cut mines,
• Xstrata Coal Queensland and Sumisho Coal Australia’s Wandoan project, located 5km west of the township of Wandoan in the Dalby Regional Council area,
• New Hope’s Stage 3 expansion project at the New Acland open-cut coal mine, about 35km north-west of Toowoomba.
Amendments to the State Development and Public Works Organisation Amendment Act in 1999 provided for the declaration of signifi cant projects by the Co-ordinator-General.
A spokesman for the Offi ce of the Minister for Infrastructure and Planning said the Act clearly set out the steps all “signifi cant projects” needed to follow to allow a robust and rigorous assessment of economic, social and environmental matters relating to their development.
Signifi cant cluster of projects
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Initiatives to help tradespeople “upskill” will play a crucial role in fi lling the estimated 18,600 jobs to be created in Queensland’s emerging coal seam gas and liquefi ed natural gas industry in the next decade.
Energy Skills Queensland chief executive offi cer Glenn Porter said the CSG-LNG industry was seeking a range of skilled people in traditional trades such as diesel fi tters, electricians, electrical instrumentation technicians, process plant operators and drillers.
“We are in the process of developing programs for existing tradespeople to give them the extra skills they need (to move across to the CSG-LNG sector),” Mr Porter said.
“For example, diesel fi tters would be working on gas-fi red engines and turbines rather than
diesel engines and fi xed plant.“So we need some upskilling
in these subtle areas of diff erence.”
Th e proponents behind the major LNG projects planned for the Gladstone area were also building up their internal training capacity to achieve this outcome, in addition to delivering a range of apprenticeships, Mr Porter said.
He said Energy Skills Queensland was working with a number of public and private training organisations to help them gear up to meet the CSG-LNG sector’s workforce demands.
Th e Gladstone campus of the Central Queensland Institute of TAFE is off ering some of the fi rst industry-specifi c training under the program, targeting pressure welding.
“A big skills shortage we have
Energy Skills Queensland is developing new
programs to help tweak existing trades know-
how to meet the needs of a growing industry.
Stepping up skills for gas boom
identifi ed in the construction phase is for pressure vessel welders - people to weld up the
gas pipelines and LNG plant at Curtis Island and pipeline in the upstream operation,” Mr Porter said.
“We will also be training people and getting them certifi ed as scaff olders, riggers and dogmen - those sorts of qualifi cations. Th ere will be a big demand for those skills in the construction phase.”
Th e dual trade of electrical instrumentation is another area of high demand for the LNG projects, both throughout construction and in the operational phase.
“We believe anywhere up to 400 or 500 of those will be required by 2020,” Mr Porter said.
Mr Porter denied that the industry was running behind
in terms of recruitment and training, saying the fi nal investment decisions (FID) were yet to be made on the four major LNG projects proposed for Gladstone.
“However, once FID has been announced on one or more projects and major construction contracts commence there will be a need for EPCs (Engineering, Procurement and Construction) and contracting fi rms to ramp their workforces up very quickly, creating a signifi cant demand on the Queensland construction and engineering workforce,” he said.
Energy Skills Queensland was established by the State Government to lead industry and government engagement on vocational education and training, skills development and labour market issues.
It has worked with key project proponents Arrow Energy, Origin, QGC and Santos to create the CSG-LNG Workforce Development Plan.
And in March this year, the State Government committed itself to a partnership with industry to develop a $10 million program to train the thousands of workers needed for the emerging CSG-LNG industry.
Mr Porter said Energy Skills Queensland was receiving about 50 to 80 calls a week from people interested in joining the CSG-LNG industry.
“We’ve had a huge interest, even though we haven’t formally promoted the training yet to the community,” he said.
Th e interest was predominantly coming from within Queensland and ranged from job seekers with no skills through to professionals such as engineers looking for information on how to enter the CSG-LNG industry, he said.
By 2020 it’s estimated Queensland’s CSG/LNG sector will need the following skills for its operational workforce alone:
400 Engineers75 Geologist/geophysicists1000 Drillers230 Electrical and instrumentation trades270 Mechanical and diesel fi tters90 Water operations100 Health, safety and environment personnel270 Transport and logistics
Energy Skills Queensland says additional demand will be created in construction, with these job projections yet to be fi nalised under CSG/LNG Workforce Development Plan.
Workers required during construction will include engineers, carpenters, steel fi xers, concrete fi nishers, equipment operators, mobile crane operators, civil operators, riggers, scaff olders, telecommunications tradesmen, electrical and instrumentation tradesmen, electrical trades assistants, painters, cryogenic insulators, insulators, boilermakers, pipefi tters, special class welders, mechanical fi tters, sheet metal workers, labourers, drillers and polyethylene pipe fabricators.
Most-wanted list
Glenn PorterEnergy Skills Queensland chief
executive offi cer
Th e fl edgling Mackay Engineering College is launching its 2010 Try A Trade Program in July, providing 42 Year 10 students with experience in targeted trades.
Education Queensland trade centre project offi cer Bob Baker said the curriculum for that college was under development, with an outreach model due to be off ered in schools next year. Meanwhile the college was running its Try A Trade
Program for the second year, having off ered the experience to 28 students in 2009.
Five local Manufacturing and Engineering Gateway Schools are involved in the program, which focuses on electronics, fabrication, automotive and diesel-fi tting work.
Mr Baker said the program included training at school, a full day at TAFE for each of the four trade areas and a full week of work experience in the students’ preferred area.
Try a Trade Program
36 July 2010 | The Mining AdvocateMATERIALS HANDLING
North Queensland Distributor of Trellex Conveyor Belts• Stockists of Fabric belt
Bulk Materials Handling Australia (BMHA) and German joint-venture partner FAM have started commissioning the fi rst of four stacker reclaimers to be completed at Abbot Point Coal Terminal under a $135 million-plus contract.
BMHA, an emerging player in the Australian bulk materials handling arena, is confi dent its contribution to the expansion works under way at the key North Queensland coal terminal will act as a springboard to further major projects.
Managing director Craig Dixon believes the company will have the best advertisement possible for its expertise and equipment range as new projects start to roll out following a recent lull in the market.
It will have delivered a state-of-the art machine with signifi cant advantages over its competitors.
“We believe we have built the best machine that Australia has seen and we will demonstrate that,” Mr Dixon said.
Th e Australian-owned Mecrus
Group created BMHA as a stand-alone entity focused on bulk materials handling.
BMHA has aligned with FAM (Magdeburger Foerderanlagen und Baumaschinen), a recognised provider of world-class machines, and together as FAM Queensland (FAMQ)they are focusing on bulk materials handling opportunities throughout Australia and South-East Asia.
FAMQ are due to hand over their fi rst stacker reclaimer to North Queensland Bulk Ports Corporation in August, with the entire Abbot Point project to be completed early next year.
Mr Dixon said each machine would weigh more than 1800 tonnes and be capable of moving 6000 tonnes of coal per hour, peaking at 8000 tonnes.
FAMQ won the stacker reclaimer contract in April 2008 when the Abbot Point port owner sought a competitive bid as part of the X50 expansion project to double the facility’s capacity to 50 million tonnes per annum.
A bulk handling venture says it has proved its
ability to deliver a top-notch machine despite
a tight timeline and other challenges.
Project stacks up for newcomer
Mr Dixon said the contract
involved many challenges
from Day 1 – including a tight
timeline and signifi cant supply
issues.
FAMQ had to start from
scratch, with no existing stacker
reclaimer design to meet specifi c
NQBP requirements, he said.
“In response FAM has
delivered some innovative
engineering solutions that have
delivered improved machine
characteristics whilst coming to
terms with and embracing strict
Australian design standards,” Mr
Dixon said.
FAMQ had worked closely
with the client to determine
the ways in which the design
could be improved in order to
give optimum reliability and
serviceability, he said.
“We have also built a stronger
machine, capable of being
expanded to move 8000 tonnes
an hour, up to a peak of 10,000
tonnes,” he said.
Mr Dixon said FAMQ had
been very conscious of State
Government policy encouraging
major contractors to give local
suppliers a fair go.
Th e project will ultimately
include more than $80 million
worth of Australian content, a
signifi cant contribution given the
majority of the design work had
to be undertaken in Germany
and many high-end engineered
items sourced from overseas.
“We do not have that expertise
available here,” Mr Dixon said.
Among the future jobs the
partners will be targeting is
the supply of further stacker
reclaimers and ship loaders at
Abbot Point to accommodate
expansion.
The new stacker reclaimer at the Abbot Point Coal Terminal, north of Bowen. Photo: Ben Cox
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Clermont is preparing to tap into the business opportunities presented by the emergence of the Galilee Basin as a major new coal mining province.
Th e Clermont Community and Business Group, formed late last year, has been positioning the Central Highlands town to win spin-off work from projects being developed outside Alpha.
And it is starting to see results, with work under way to open up further industrial and residential blocks in the town.
Clermont Community and Business Group spokesman Tony Upton said the town was strategically placed to supply the new Galilee Basin mines and off er an appealing country town lifestyle for families looking to settle in the area.
“Alpha is the closest (community), but we’re defi nitely the next closest and we’re also the one that’s in line with their major supply source for mining equipment – Mackay,” he said.
“Once the Alpha mining projects start up, Clermont will be smack-bang in the middle.
“We think we’re in a pretty sound place to take advantage of some of the associated industry.”
He said Emerald was also well positioned, but was already servicing a large range of mines, whereas the main focus of Clermont’s mine supply business was based on the nearby Rio Tinto Blair Athol mine – which is winding down – and the new Clermont mine.
Major mining operations in the pipeline for the Alpha area include Hancock Prospecting’s Alpha and Kevin’s Corner
projects, Waratah Coal’s China First proposal and Bandanna Energy and AMCI’s South Galilee coal project.
Mr Upton heads the aff ordable land and housing committee of the Clermont Community and Business Group.
Since the group began campaigning late last year, he said Isaac Regional Council had committed to creating an aff ordable housing estate in the centre of town. It also recently completed an 11-block residential development in Francis St.
Paul Breckon, who heads the Clermont Community and Business Group’s business attraction and industrial land committee, said there were also two industrial developments on the horizon.
One involves a 12ha parcel of land owned by two local residents and the other a 24ha industrial and residential development proposed by investors SCN Pty Ltd.
“Our group is out there to promote that - get that land developed and encourage new business to come to town,” Mr Breckon said.
“Th ese guys also want to shore up some numbers.
“Th at’s where our group can hopefully help them, by trying to get out there and get some expressions of interest.
“We want to get on the front foot. Th e Galilee Basin is going to explode out there.”
Mr Breckon said his business, PB Steel and Engineering Company, and others in Clermont were already involved
A community group is working to position
their town to enjoy the economic spin-off s
from major development in the Alpha area.
Clermont taps Galilee growth
Kevin’s Corner
Alpha Project
China First
South Galilee
Clermont
AlphaJericho
Blair Athol
Avoca
Alpha Oil Shale
Mantuan Downs
in early work for the Alpha
projects. Among the Clermont
Community and Business
Group’s aims is to encourage
major mining supply companies
to establish a base in Clermont
to service Galilee and Bowen
basin mines.
“It’s a good launching pad
- it’s an hour from here to
the Alpha projects or any one
of those mines in the Bowen
Basin,” Mr Breckon said.
So isn’t he concerned about
encouraging more competition
for his own business?
“I do get a bit toey about that,”
Mr Breckon said.
“But by encouraging other
competitors to the town, they
will bring more infrastructure,
it will hopefully give business a
bigger pool of workers and you
will get a chain reaction – extra
school teachers, hairdressers,
people like that.”
Mr Upton said the Clermont
Community and Business Group
had recently received $60,000
from Rio Tinto’s Community
Development Fund, which
planned to contribute a total of
$1.5 million to Clermont over
the next three years.
It had also received exceptional
support from Isaac Regional
Council Mayor Cedric Marshall,
he said.
Developer John Jolly believes he can sense a signifi cant shift in prospects for Clermont – a shift he believes will help bring his proposed residential and industrial project, with a potential value of $60 million or more, to fruition.
“It’s like an undercurrent that suddenly has become a groundswell for Clermont,” he said.
“It’s almost like a tsunami – there is a big thing happening, but it won’t be really obvious until it gets here.
“We’re perfectly placed. We have our development and operational works approval for the industrial development and a council
that is very supportive of what we’re doing.”Mr Jolly is one of three principals in SCN
Pty Ltd, a group proposing to develop a 24ha parcel of land in Clermont into about 30 industrial lots and an upmarket accommodation complex, including 80 to 160 three-bedroom townhouses.
He said he was confi dent the project would go ahead this year after recent meetings in Clermont to gauge interest. SCN was also talking with central Queensland mining operations in a bid to secure lease arrangements for the accommodation component of the project, he said.
‘Tsunami’ on the horizon
40 July 2010 | The Mining AdvocateBuilding Mining Communities
resourcingg thee future
Mining
Supporting
Communities
BROUGHT
TO YOU BY
BMA’s Blackwater Mine has topped the fundraising tally for the 2010 World’s Greatest Shave Mine Challenge in Queensland, contributing $39,123.50 to the Leukaemia Foundation.
Th e central Queensland site has been a consistent champion in the fi ve years the challenge has been running, according to Mine Challenge chairperson Paul Barnard.
However, he said another BMA site – which he would not name – had indicated it planned to take Blackwater on for competition supremacy next year.
Teams representing contractors building the Blackwater mine’s coal handling and preparation plant were the top fundraisers in the challenge’s fi rst two years.
Mr Barnard said BMA Blackwater Mine teams had gone on to win the challenge shield in 2008, 2009 and 2010.
“Th ey’ve been absolutely fantastic supporters – they really get into it in a big way,” he said.
He noted that the fundraising eff orts were greatly assisted by BMA’s “matched giving” program, with the company providing dollar-for-dollar donations.
A BMA Blackwater Mine representative was presented with the Mine Challenge shield during a function in Brisbane to recognise the eff orts
Blackwater Mine proves a cut above the rest
BMA Blackwater Mine administration assistant Pam McGorrery accepts the
2010 shield from Leukaemia Foundation of Queensland president Beverley
Mirolo and Mine Challenge chairperson Paul Barnard.
2010 MINE CHALLENGE TOP 10
1. BMA Blackwater Mine
2. Xstrata Mount Isa Mines
3. Bechtel Brisbane offi ce
4. Xstrata Coal Rolleston
Mine
5. Xstrata Coal Newlands
Mine
6. Red Mountain - Poitrel
7. Bucyrus
8. Arrow Energy
9. Xstrata Coal Brisbane
offi ce
10. BMA Goonyella Riverside
of Queensland’s top World’s Greatest Shave fundraisers.
Th e Queensland resources industry raised about $325,000 across 51 registered sites in the 2010 Mine Challenge, with the Top 10 sites alone accounting for $215,000.
Leukaemia Foundation of Queensland chief executive offi cer Peter Johnstone said the funds had contributed to the record result of more than $4 million generated through this year’s World’s Greatest Shave in March.
Th e funds raised assist with the care of patients and their families living with leukaemias, lymphomas, myeloma and related blood disorders.
Junior Boys fashion winner Kade Ferguson with BHP Billiton Cannington
community relations specialist Ruth Kaurila.
Cannington’s day at the track
Helicopter fundraising continues
More than 200 people came out for a day at the
races when the BHP Billiton Cannington Cup was
run at the Cloncurry Racecourse recently. Th e day
included a fi ve-race program and fashions-on-the-
fi eld events judged by BHP Billiton Cannington
community relations specialist Ruth Kaurila. It
was hosted by the Cloncurry and District Racing
Association and BHP Billiton Cannington.
Junior rugby league players from the Julia Creek Saints made the two-hour trip to BHP Billiton’s Cannington mine recently to join the site’s Cougars team for a training run.
Th e visit, organised through the McKinlay Shire Council, included a passing and ball skills workshop followed by dinner at the Cannington village.
McKinlay Shire Council sport and recreation offi cer Bec Climie said the excursion was designed to provide exposure to higher level sports training.
“Th ese kids all play in the junior rugby league competition here in Julia Creek,” Ms Climie said.
“Being a smaller club, it can be diffi cult to fi nd a coach and we rely a lot on the support of parents.
“I also managed to take away some handy drills which I’m certain we will roll out at the next Saints training session.
“We look forward to running more of these events in conjunction with Cannington.”
Cannington asset leader Bob Fulker said the Cougars had been training for a couple of months in preparation for the Battle of the Mines in October.
“Visits like this allow the kids to get a glimpse of what life is like on a mine site and hopefully come away with some pretty handy footy tips,” he said.
“Th eir enthusiasm was great and I think the guys also had an opportunity to cast their eyes over a few future Cougars.”
The big rigs rolled out to support Mount Isa Rodeo Queen Quest entrant Danielle Bellamy recently as she moved closer to her target of raising $20,000 for NQ Rescue.
Ms Bellamy said the Isa Big Rig Challenge, including a ute show, had raised about $8000 for the community helicopter service.
“It was awesome,” she said.“Th e turn-out of trucks and
other vehicles was excellent and the quality was excellent.”
Ms Bellamy said about 25 vehicles entered the event, with many participants keen to see a similar challenge held next year.
Ms Bellamy plans a 000 night on July 17, where guests will dress as emergency services personnel, to round off her fundraising eff orts.
She said the good response to
Cannington Cougar Rhett Hassell with Dion Rossow and Brody James.
Footy cubs enter Cougars’ den
her campaign highlighted the strong community support for the Mount Isa-based rescue service.
NQ Rescue cannot resume fl ights until the community helicopter service raises $1.5 million for a machine meeting the standard for government use in search and rescue and aero-medical operations.
Chief executive offi cer Alex Dorr said the service was about to sign a naming rights sponsor and was receiving good support from local councils and the pastoral industry.
Mr Dorr said NQ Rescue also had an “in principal” agreement from the mining sector for a major contribution, but they fi rst wanted to see guaranteed State Government support.
Mr Dorr has written to Queensland Emergency Services Minister Neil Roberts proposing a two-year trial for the service to prove that community demand exists and justifi es ongoing fi nancial commitment from the government.