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The Mining Advocate, March 2013 edition
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Supporting mining and industry in Queensland and the NTSupporting mining and industry in Queensland and the NT Queensland’s leaders in safety...
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THIS EDITION
• Mines Minister Cripps – one year in
• Breakthrough run for shale
• Author digs deep into history
• Gas keeps Roma on the rise
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1The Mining Advocate | March 2013 NEWS
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.
CONTACTS
p. (07) 4755 0336 f. (07) 4755 0338
Email: ...............................................................info@miningadvocate.com.au
Address: .........................................U3/11 Carlton St, Kirwan, Q, 4817
Postal: ...................................................... PO Box 945, Townsville, Q, 4810
March 2013
Managing editor: .........................Robert Dark m. 0417 623 156
Journalist: ...............................Bruce Macdonald m. 0418 154 016
Sales: ................................................p. (07) 4755 0336 m. 0417 623 156
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Advertising booking deadlineMay edition: April 16
COVER IMAGE: Townsville Bulk Handling and Storage director Dewayne Cannon and stevedore manager Peter Craw with one of company’s “rotainers”. Photo: Darren Hilder
3 Shale be right Recent announcements have highlighted the potential of oil shale as an alternative energy source and,
with 90 per cent of Australia’s known oil shale resources, Queensland is in the box-seat to tap new
opportunities.
4 Minister on a mission Queensland Natural Resources and Mines Minister Andrew
Cripps refl ects on his fi rst year in the job and discusses the
challenges ahead.
9 Question of power Electricity industry professional Tim Duignan says a quick
decision is needed on major infrastructure projects to power
greenfi elds mining expansion in the Galilee Basin.
11 Focus on RomaTh e Mining Advocate continues its series on regional centres
on the frontline of the resources industry boom with a look
at this long-time gas hub in inland Queensland’s Maranoa
district.
26-36 Th e great North West Activity in the mighty Isa-Carpentaria minerals province is a major theme in this edition, released in the lead-up
to the Xstrata Mount Isa Mining Expo. Our cover shot shows one of Townsville Bulk Handling and Storage’s
“rotainers” - often used for transporting products from north-west Queensland mines to port.
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FEATURES
13 Drilling and Exploration
14 Coal and Gas UpdateNews in brief across the coal and gas industries.
16 Between Shifts
20 Building Mining Communities
22 Living Remotely
23 Big Boys’ Toys
24 Safety and Rescue
25 Building NW Queensland
26 Isa Carpentaria Projects Feature
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3The Mining Advocate | March 2013 NEWS
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Queensland is well placed to take a leading role in an emerging alternative liquid fuels industry, resources chiefs say. Mining and exploration companies, particularly Queensland Energy Resources, received a fi llip from the Newman Government with the recent announcement that it would back the development of a commercial oil shale industry.
Queensland Resources Council chief executive Michael Roche welcomed the green light for oil shale, saying it enhanced the realisation of Queensland’s potential as a global energy hub.
“By 2015, the Federal Government estimates that Australia will be importing around $30 billion a year in liquid fuels, but companies in Queensland – notably QER and Linc Energy – are demonstrating that there are viable home-grown alternatives to conventional fuels,” he said.
“Queensland’s potential to signifi cantly expand its contribution to the country’s energy needs is only starting to be understood.”
Queensland has about 90 per cent of Australia’s known oil shale resources, which are equivalent to about 22 billion barrels of oil, according to State Natural Resources and Mines Minister Andrew Cripps.
“As the world supply of conventional crude oil diminishes, there are strong prospects for oil shale to become the next major source of liquid fuel supplies in Australia, and Queensland is well placed to lead the charge,” he said.
Mr Cripps said the Government’s new oil shale policy set rigorous environmental controls on the industry and
Recent breakthoughs herald the potential of
this energy source, writes Bruce Macdonald.
six wells already sunk confi rmed the Arckaringa Basin’s potential then it could well and truly bring Australia back to oil self-suffi ciency.
Linc – which has also produced synthetic fuel using underground coal gasifi cation and gas-to-liquids technology at Chinchilla - has hired Barclays Bank to identify an investment partner to take the Arckaringa project to the next stage.
Santos created history in October when it opened the country’s fi rst commercial shale gas well in the Cooper Basin, which straddles the Queensland and South Australia border, further underscoring shale as a potential medium to off set declining conventional energy supplies.
Santos vice-resident for eastern Australia James Baulderstone said the connection of the Moomba 191 shale well was a signifi cant step forward in unlocking the vast unconventional potential of the Cooper Basin.
Th e Australian Petroleum Production and Exploration Association (APPEA) sees potential in exploiting Australia’s massive shale resource given Geoscience Australia’s assessment that the “inferred resource is estimated to amount to about 8000 million barrels”.
• NT’s hydrocarbon high - P13
would allow existing oil shale operator QER to progress its trial plant at Gladstone to commercial stage.
But a moratorium on the large McFarlane oil shale deposit near Proserpine will remain in force until 2028.
Th e credibility of shale yielding up a solution to the nation’s potential fuel shortage took a giant leap forward in January with news of a fi nd by Queensland company Linc Energy in South Australia’s Arckaringa Basin.
Reports drawn up by consultants De Golyer and McNaughton and Gustavson Associates indicate untapped reserves around Coober Pedy from 3.5 billion to 233 billion barrels of oil.
Linc general manager Peter Bond said if the higher end fi gures proved accurate, the fi nd “would be several times bigger than all of the oil in Australia”.
He said if further testing of
Peter BondLinc Energy general manager
Freeing energy from shale takes diff erent forms, with Brisbane–based Queensland Energy Resources developing technology to extract oil directly from rock via an open-pit method.
A small demonstration refi nery, capable of delivering 37 to 40 barrels a day, is operating at Yarwun in north Gladstone using cutting-edge American technology.
After assessing 60 technology variants to extract oil from shale, the American-designed and built Paraho II system was selected and has been operating for the past 14 months.
QER corporate aff airs manager John Hewitt said investment so far in the oil shale project, including the acquisition of the Yarwun site in 2004, had topped $700 million.
QER uses product from its nearby Stuart mining site, which has a potential to yield 1 billion barrels of oil, according to Mr Hewitt.
Th e oil shale is mined by open-pit operations, processed at the plant, then returned to the mining site once the oil is extracted for site rehabilitation, unlike other processes which use various forms of drilling and fraccing.
QER chief executive and managing director Pearce Bowman said the recent State Government decision on oil shale was a step forward and recognised the potential importance of the resource to Australia’s transport future.
“We recognised the need to demonstrate to the community and the Government that we can make high-quality transport fuels from Queensland oil shale in a responsible and sustainable way,” Mr Bowman said.
“Our communities and industries will need transport fuels, such as diesel and jet fuel, well into the future. Australia is having to import more and more of those fuels from across the world, while we could be making them right here in Queensland.”
Mr Bowman remained unclear on just when QER would move to the next step with the demonstration plant.
“Th is announcement simply gives QER the option to seek approval for a commercial development in the future,” he said.
“We will continue with a systematic, step-by-step approach to development, and I think our track record speaks for itself.”
QER team leader - operations Wayne Harlen adjusts the fl ow rate for oxygen
analysis at the Yarwun plant. Photo: Chrissy Harris
Rock-solid resource
Spotlight on shale
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Two recent announcements give a clear indication that Andrew Cripps is determined to see the resources industry in the state prosper in the years ahead.
Th e Natural Resources and Mines Minister won no friends among environmental lobby groups or the Labor Party when he fl agged in October last year the resumption of uranium mining and in February paved the way for unconventional energy resource oil shale to move to the commercial phase of its development.
Mr Cripps described his two big announcements as a “step in the right direction for the future position of Queensland to attract investment in new technologies”.
His mantra is that any resource project that comes online during his watch must meet world best practice in the realms of environment, safety and community engagement.
However Mr Cripps believes the resources sector is being strangled by “prescriptive
practices” (red tape) and one of his major projects for 2013 is to focus on outcomes and creative processes to tackle that issue.
“I’ve enjoyed the challenge, time has really fl own,” Mr Cripps said of his time as Minister to date.
Mr Cripps, 32, won the seat of Hinchinbrook in 2006 for the National Party and has held a string of shadow ministry posts including Resources and Water, Public Works, Economic Development and Barrier Reef Protection.
Born in Tully, Mr Cripps is a country boy through and through with a degree in agricultural economics and political science with honours behind him.
Mr Cripps believes growing up in the country has better equipped him to understand the needs of rural communities in resource areas.
“Understanding the dynamics of regional communities is an advantage I do have,” he said.
As Andrew Cripps marks 12 months as
Queensland Natural Resources and Mines
Minister, he refl ects on that time and the
challenges ahead. By Bruce Macdonald.
Man on a mission for mining
“I will be implementing initiatives to try and improve the balance between the resources and agriculture sectors.”
Mr Cripps pointed to the establishment of the statutory regional planning process on the Darling Downs and in central Queensland, the GasFields Commission and the state’s land access framework as
administrative tools to ensure the resource sector runs more smoothly, effi ciently and fairly.
Mr Cripps said a committee had been established and would start implementing processes dealing with land access issues in the areas of arbitration and mediation in the second half of the year.
He understands there are
many challenges facing the resources industry, particularly in the coal sector.
“Demand for skilled employees has seen some high costs in this sector,” he said.
“Companies need to have a good look at the cost side of business.”
Mr Cripps said the Government was always looking at new opportunities to reduce the operating cost side of business.
“We are working hard to streamline the approvals side of the business (the environmental impact statement process) to ensure costs are minimised in relation to projects getting up,” he said.
Mr Cripps urged resource sector players to engage with the Government in making the approval process work more effi ciently and quickly.
“I’m giving the resource sector the opportunity to work with us to achieve results,” he said.
But he added a word of caution.
“While the Newman Government wants to encourage a strong resources sector ... we have big expectations in the areas of public safety and environmental issues,” he said.
Natural Resources and Mines Minister Andrew Cripps (back) with Xstrata Copper
North Queensland chief operating offi cer Steve de Kruijff in Mount Isa.
5The Mining Advocate | March 2013 NEWS
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Second wind for Kagara assets
New owners Snow Peak International Investment plan to resume mining from at least one halted Kagara operation in central North Queensland by early April.
Sourcing ore from the Balcooma/Surveyor or Baal Gammon sites is one of the “gap-fi ller” measures planned to make use of the Mount Garnet processing plant - gained as part of a Kagara asset package - until Consolidated Tin Mines brings its Mount Garnet tin project online.
Consolidated Tin Mines holds a 10 per cent stake in Snow Peak and had lobbied for the purchase of the Kagara concentrator - described as being of major strategic value to the development of its nearby tin project.
“What we are investigating and making decisions on is going back to mine some of the better opportunities (within the Kagara package),” Consolidated managing director Ralph De Lacey said.
“We would be doing that fairly quickly – around about the end of the wet season, say April 1 or something like that – stockpiling ore at Mount Garnet and looking to get the concentrator going again mid-year.”
Snow Peak and Consolidated Tin Mines have more than 35 local staff and Mr De Lacey expected workforce numbers to step up to about 100 by the time the concentrator came back online, including contract miners.
He said Kagara, which is in administration, had completed a lot of underground development work at Balcooma/Survey just before the company ran out of money – so a deposit there was ready to mine
immediately. Snow Peak was also committed to completing the stage-one pit at Baal Gammon near Herberton, which had suff ered a contaminated water spill in March 2012, Mr De Lacey said.
Th is would allow the return of waste rock into the pit, before capping and closing it down.
“We are also looking at some opportunities to potentially mine stage two, but this would only be underground – where there is no further environmental impact,” Mr De Lacey said
Consolidated would also look to process small non-skarn tin deposits from its North Queensland tenements before its fl agship skarn tin project at Gillian near Mount Garnet moves into production.
Mr De Lacey said that project was on track to begin production in 2014.
Consolidated Tin Mines has launched a fresh prefeasibility study for that project taking into account use of the former Kagara processing plant, which has an annual capacity of one million tonnes. Th is will reduce the anticipated $140-160 million start-up cost considerably.
Th e Gillian tin project boasts a near-surface JORC resource of
three million tonnes at 0.78 per cent tin.
Consolidated is managing the Kagara central region assets for Snow Peak, which paid $40 million for the package.
It has employed ex-Kagara central regional general manager John Banning as executive general manager to implement the project development plans.
Mr De Lacey said the raft of Kagara mineral projects that came with Snow Peak’s purchase of the Mount Garnet concentrator included some really good assets.
Th e Einasleigh copper project, formerly owned by CopperStrike, for example, was a potential company-maker, he said.
“Th e projects like Maitland, Einasleigh and even Surveyor have the potential to become another hub,” Mr De Lacey said. “I guess we need to take them one step at a time - and our priority is to get our tin project up and running - but there is potential for a second
The Mount Garnet processing plant and other
stalled projects are set for a reboot.
processing plant in that Einasleigh area.”
Mr De Lacey said the Kagara purchase meant Consolidated Tin Mines was now certain to become a signifi cant mining company for the far northern region.
“Th e market hasn’t realised the big change, I guess that’s because
people – myself in particular – have been too busy to get out there explaining it,” he said. “But it changes the whole ball game.”
Kagara’s northern and southern region assets including the Th alanga processing operation and Mungana underground mine remain on the market.
New owners are considering a number of options to make the most of the Mount Garnet processing plant.
Cape Grafton
Halifax Bay
Hinchinbrook
IslandHerbert River
Lake Koombooloomba
Lake Tinaroo
Lake Mitchell
Townsville
Cairns
Forsayth
Conjuboy
Georgetown
Greenvale
Innisfail
Ingham
Tully
Mareeba
Dimbulah
1
2
21
46
59
Baal Gammon
Einasleigh copper project
Balcooma
Mount Garnet tin project Mount Garnet processing
The Mount Garnet tin project and key former Kagara assets in the region.
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Sciaccas buys Gladstone fi rm
Brisbane-based Sciaccas Lawyers and Consultants,
which has operated continuously for some 40 years
under the ownership of the Hon. Con Sciacca AO, has
recently brought within its full service legal group one
of Gladstone’s oldest and most respected commercial
legal practices; Klein and Associates, located in the
heart of Gladstone’s CBD at 91 Goondoon Street.
Mr Sciacca said that the purchase of this respected
legal practice would enhance the provision of legal
services in the region, combining Klein and Associates’
strong local reputation with Sciaccas Lawyers’ extensive
Brisbane resources and added legal services.
“We will keep trading as Klein and Associates in Glad-
stone because this is a name that is well respected both
in the local community and the Central Queensland
legal fraternity,” Mr Sciacca said.
“By adding Sciaccas Lawyers’ resources and expertise
in other areas of the law, Klein and Associates is fast
becoming a trusted one-stop shop for all legal require-
ments in the Gladstone region.”
Managed locally by Partner David Sorban, Klein and
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For a free initial consultation to discuss your require-
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One of Gladstone’s oldest and most respected commercial legal practices, Klein and Associates, has been bought by
Brisbane-based Sciaccas Lawyers and Consultants.
Cairns BHP Billiton Mitsubishi Alliance has earmarked Cairns as source region for the FIFO (fl y in-fl y out) workforce required for its new Daunia and Caval Ridge coal mines in the Bowen Basin.
Asset president Stephen Dumble said BMA aimed to recruit up to 250 mine employees from the region, increasing fl ights by four per week.
About 14,000 Brisbane-based tradies have already applied for the other 750 jobs at the Moranbah district mines, and BMA expects similar interest from the far north, according to Th e Cairns Post.
Cairns Mayor Bob Manning described the plan as “visionary”. But Construction Forestry Mining and Energy Union national mining and energy secretary Andrew Vickers said it was a “slap in the face” for central Queensland, Th e Daily Mercury reported.
Mr Dumble said BMA’s assessment suggested there was capacity for workers to come from Brisbane and Cairns without impacting existing regional employment markets.
Townsville Th e State Government has released a new strategy to drive industrial development in the Townsville area.
Queensland’s Co-ordinator-General recently approved the Development Opportunities Strategy for the Townsville State Development Area (TSDA) – a 4900ha precinct south of the city’s port.
However the Townsville Bulletin reported warnings from business that access to land in the area - at present held by a few large private players including Xstrata - could be a stumbling block.
Deputy Premier Jeff Seeney said Townsville was key to the continued growth of Queensland and a major hub for development in the state’s north.
“We need to ensure we get the development mix right, and that is exactly what this strategy outlines,” he said.
Townsville Chamber of Commerce president Dawson Wilkie told the Townsville Bulletin it was good to see the Government provide more structure to support the development area but he was concerned about access.
MoranbahA former central Queensland mine worker is due to face court in
April for allegedly smoking in an underground operation near
Moranbah.
ABC News reported the contract worker had been sacked
from Peabody Energy’s North Goonyella coal mine in
April last year for allegedly lighting a cigarette while
working underground.
Th e Department of Natural Resources and
Mines has charged the 24-year-old New
Zealand man with two breaches of the Coal
Mining Safety and Health Act.
Th e maximum penalty for a breach
of the Act is $50,000 or six months
in prison.
He may also be in breach of
his contract as the mines have a
strict zero tolerance on drinking
and smoking while at work, Th e
Morning Bulletin said.
Th e matter was mentioned
in Rockhampton Magistrates
Court on February 26 and is
expected to be heard on a date to
be fi xed in April.Surat BasinQueensland Premier Campbell Newman has backed calls for the Crime and Misconduct Commission
to probe the former Bligh government’s approval of two of the state’s biggest CSG-LNG projects.
Mr Newman told Th e Courier-Mail he had no concerns about anything the companies were doing,
but shared the Lock the Gate Alliance’s doubts about the approvals process.
Th e newspaper had previously reported that the QGC and Santos-led CSG-to-LNG projects were
approved by public servants panicked by a Bligh government order to sign off on them quickly. Lock
the Gate president Drew Hutton has referred the matter to the CMC.
Meanwhile Basin Sustainability Alliance - a group representing landholders impacted by coal seam
gas development - has demanded the State Government give assurances the gas projects will be halted
if scientifi c studies uncover any unacceptable risks, according to Th e Chronicle. Alliance chairman David
Hamilton said the group had been concerned for years over the pace of the industry roll-out.
GladstoneGladstone Regional Council has put its foot down on corporate contributions to community infrastructure.
It says the environmental impact statement for Boulder Steel’s planned $4.4 billion Gladstone Steel Plant Project makes only minor commitments to such infrastructure, with the proponent reasoning that adverse eff ects would be off set by increased job opportunities and economic growth.
Gladstone Mayor Gail Sellers said council’s experience with previous major projects would suggest otherwise.
“With that in mind, council’s submission seeks $44 million from GSPP, 1 per cent of the project’s estimated $4.4 billion capital cost, towards community infrastructure works nominated by council,” she said.
Th e council also recently called on the State Government for the immediate release of $13.5 million from the Gladstone Foundation, which receives voluntary payments from LNG proponents and major companies to meet the region’s social infrastructure needs.
“Th e community is yet to benefi t from this funding, and in liaison with the proponents involved, the consensus is that it now seems appropriate to access these funds as the region recovers from extensive fl ooding,” Cr Sellers said.
Mount IsaTh e retirement of Mount Isa’s only heavy traffi c licence examiner has left training groups with a backlog of more than 40 drivers awaiting certifi cation, according to Th e North West Star.
Th e Department of Transport told the paper it was looking for recruits to fi ll the assessor’s position, but couldn’t confi rm when a new assessor would be likely to start.
Meanwhile the city has to rely on examiners from Townsville making a trip to the North-West once a month to assess those seeking a licence.
State Member for Mount Isa Rob Katter said the backlog of drivers waiting to be tested for their heavy traffi c licences in Mount Isa was appalling, especially in a city that serviced several major mines.
Labourer and operator Graeme Hetherington told Th e North West Star he had already been on a waiting list for three months to complete his training and assessment for a semi licence.
7The Mining Advocate | March 2013 REGIONAL ROUND-UP
8 March 2013 | The Mining AdvocateNEWS
Th e name alone sparked debate when a federal parliamentary committee released its report on fl y in-fl y out workforce practices in regional Australia.
“Cancer of the bush or salvation for our cities?” asked the title of the report, which a Townsville Bulletin article described as outlining disturbing stories of people being pushed into FIFO or drive in-drive out (DIDO) work, women afraid of large numbers of men on the streets and young people forced to leave their home towns because they could not aff ord to stay on low apprentice wages.
Th e Australian Mines and Metals Association took off ence at the cancer reference and said the long-awaited report demonised Australia’s resource employers.
“Th e ‘cancer of the bush’ headline arising from the committee’s report is demeaning to thousands of Australian FIFO workers and off ensive to families who have lost loved ones to cancer,” AMMA chief executive Steve Knott said. He said the inquiry had dropped the ball on a unique opportunity to discuss how the industry and government could work together to address skills, regional infrastructure and community development.
Inquiry chair Tony Windsor explained in the report forward that the “cancer of the bush” tag came from the mayor of Kalgoorlie.
“He claimed, and many others agreed, that it is eroding the way of life in traditional mining communities like Kalgoorlie, Karratha, Mount Isa, Broken Hill and Moranbah,” he wrote. “In a diff erent light, FIFO/DIDO
is presented as off ering work opportunities to ease unemployment in cities and coastal areas, spreading the wealth of the resources industry and raising the question: could this be the salvation for our cities?”
While the inquiry heard extensive arguments from both sides of the debate – the benefi ts that high wages and time at home bring to FIFO/DIDO workers and their families, and the damage that the practice was doing to some of those in regional communities – he said the mantra of choice came through strongly.
Th e Standing Committee on Regional Australia spent almost 18 months working on the report, which makes 21 recommendations to government and 14 suggestions to
industry to help build stronger regional communities alongside a strong resources sector.
Th e Mining Family Matters support group said it backed the committee’s recommendations to ensure regional communities received a greater share of the benefi ts of the mining boom as well as calls for comprehensive research into the impact of FIFO/DIDO on regional communities as well as the workers and their families.
“However, we are very keen to ensure that FIFO/DIDO workers aren’t further vilifi ed as part of this debate – or made to feel bad for the work choices they have made for themselves and their families,” a group statement stressed.
CFMEU national president Tony Maher said mining companies should have to prove there was no reasonable alternative before being allowed to fl y in transient workforces for projects.
“Over time we are seeing the fallout from FIFO - diminishing services in
regional areas, social discord with large groups of single men camped on the edge of country towns, and the growing failure of mining companies to invest in training for young Australians,” he said. Mr Maher said the committee’s report had made some welcome recommendations, but there were further areas for investigation and reform, including the punishing rosters many FIFO workers were subjected to on construction projects.
Th e Gillard Government has said it would consider scrapping lucrative tax exemptions for miners using fl y in-fl y out workers as recommended in the report – a proposal slammed by miners, according to Th e Australian.
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A quick decision needs to be made on major infrastructure projects to power greenfi elds mining expansion in the Galilee Basin.Th at’s come from power industry professional Tim Duignan, whose company Arc Developments International consults on energy infrastructure development to the mining industry.Th e window of opportunity to meet the expected demands of 1000MW from the likes of Adani, GVK Hancock and Waratah was closing, Mr Duignan said.“Th e forecast demand for power from a new base-load station is pointing towards 2018-2020,” Mr Duignan said. “You’re up against it now with the two years of approvals and a three years’ construction period required for a greenfi eld coal-fi red power station development.“Government has said it is unwilling to put any money into a power station and has been quite clear a new base-load facility will be privately funded. Government sees itself as the developer of last resort for future power stations.”
Queensland’s next generation base-load power would be coal-fi red, Mr Duignan said. Firstly the building costs have come back slightly and, secondly, the alternatives are more expensive on whole-of-life basis.“Demand for equipment and infrastructure coming from India and China has eased somewhat from a few years ago, so access is easier,” he said.“Also gas is becoming more expensive. Santos said (recently), with cost increases, the well head price of gas they will sell into the market will be between $6 and $9 a gigajoule. “Using those numbers, coal-fi red power is cheaper and will be the cheaper alternative into the future, even with the carbon tax.” Mr Duignan also questioned the feasibility of new technology power plants to reduce the carbon footprint.He pointed towards the 400MW Texas Clean Energy Integrated Gasifi cation Combined Cycle (IGCC) project to be located near Odessa, Texas, which has a price tag of more than $US2.5 billion
Racing towards a power cliff An industry expert sums up the electricity
challenges on Queensland’s near horizon.
Mr Duignan said he had been working on a series of energy modelling scenarios for North Queensland, one of which had shown promise involving a base-load power station with a capacity of about 345MW.He applauded industry group Townsville Enterprise for planning to complete a feasibility study into base-load power in the region. Townsville Enterprise is
concerned by the costs faced by high-volume commercial and industrial electricity users because of the distance between power generation (Gladstone) and the north and the absence of a State Government subsidy scheme.One site being actively looked at and included in Mr Duignan’s modelling plans is the Pentland area in the northern section of the Galilee Basin, which
has known coal reserves. Mr Duignan said while the State Government had shown no inclination to build power stations it could play a very important role in co-ordinating the transmission asset investment in the Galilee Basin and Pentland regions to ensure power stations associated with the coal mines in those areas had access to the National Electricity Market.
Fifteen 44-tonne dump truck trays made their way out to Peabody Energy’s Millennium mine between Coppabella and Moranbah recently thanks to NQ Group.
A job of this size is par for the course for the company’s Mackay branch, which continues to transport a steady stream of heavy equipment for the region’s coal industry despite the recent downturn, according to operations manager Darren Sargeant.
“It’s been going fairly strong actually, keeping in mind a lot of this new equipment would have been ordered prior to the downturn,” he said.
Th e DT Hercules trays bound
for Millennium had been shipped
in from Western Australia
and underwent modifi cations
in Mackay. Mr Sargeant said
the fi rst two left Mackay on
January 21 and the last left
for Millennium mine in late
February.
“We knew what to expect with
these trays after transporting
similar units to Peabody Energy’s
Coppabella mine from ESCO
here in Mackay,” he said. “We
also transport the (Caterpillar)
797 trays... We’re doing 12 more
Liebherr T282 C dump trucks to
Lake Vermont now.”
Heavy traffi c, coal-country style
A 44-tonne tray bound for Millennium coal mine. Photo: Damien Carty
10 March 2013 | The Mining AdvocateNEWS
Mechanical engineer and Townsville-based historian Col Hooper doesn’t mind a challenge.
He has taken up the mammoth task of recording in detail the rise and fall of more than 500 mining communities in northern Queensland, where intrepid men and women sought their fortune and often perished in their quest.
In a series of 10 volumes, which is still a work in progress, Mr Hooper has harvested a rich bounty of anecdotal and historical information.
Mr Hooper’s focus is obviously an historical account of mining in the 1800s and early 1900s, but his work also pulls into sharp focus the character and determination of those early fortune seekers.
PLEASE REFER TO OUR WEBSITE FOR FURTHER DETAILS, PICTURES, CONDITIONS AND PROCESSING FEESSite safety procedures including covered footwear must be adhered to at all times.
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Tenders will be considered as they are lodged and goods may be sold before the closing date.
Location: Various Locations Throughout QLD Inspections: By Appointment Only Enquiries: Simon Brown 0400 254 188 Final Tenders By: 11th April at 4pm
MAJOR MINING EQUIPMENT TENDER
The Charters Towers area is the latest focus of
a book series, writes Bruce Macdonald.
Col mines wealth of historyIt’s a challenge enough
driving to Cape York in an
airconditioned four-wheel-drive
let alone doing it on foot or on
horseback through country often
unseen by all but the Aboriginal
inhabitants.
But what rankles Mr Hooper
most is that abandoned
mining centres are passing into
history with but a few mine
shafts, rusting equipment and
crumbling buildings as legacy of
the glory days.
So he has taken it upon himself and for posterity to chronicle those rip-roaring days
in his expansive series of volumes Deserted Towns A-Z: stories of 520 deserted towns and mining camps in North Queensland.
Mr Hooper is currently working on volume seven in the series, Cape River, Charters Towers and Ravenswood - which he hopes to publish later this year.
He is on something of a mission at the moment to source a photograph of Charters Towers resident Daisy Clifton, the daughter of brewery owner, Ralph Clifton. Daisy would have been a fi ne catch, she was
Queensland’s fi rst entrant in the
1908 Miss Australia Quest.
Much of Mr Hooper’s
information on the mining
industry’s pioneers has been
garnered from old diaries.
He would be delighted to hear
from anybody who may possess
old diaries or other documents
that throw further light on the
subject. He can be contacted via
email on: [email protected]
More information on Mr
Hooper’s published volumes can
be viewed at: www.desertedtowns
atoz.com
The elaborate woodwork at the abandoned Duke of Edinburgh mine at
Ravenswood.
The Charters Towers Stock Exchange as it looked in 1891. It is now a tourist
attraction.
Col HooperMechanical engineer and historian
11The Mining Advocate | March 2013 NEWS
- Specialists in earthmoving, power & light, access, air & portable buildings. Call 13 15 52
A Queensland Government review has cleared
the way for airlines to run direct fl ights between
Toowoomba and Roma.
Transport and Main Roads Minister Scott
Emerson said lobbying by local MPs and councils
led to an investigation into whether the air route
between Toowoomba and Roma was regulated.
“Th e legal advice I received confi rmed that airlines
interested in operating on the proposed route will
not require a government service contract,” Mr
Emerson said.
“Opening up this route provides alternatives for
anyone wanting to travel to and from Toowoomba
and the rapidly developing Roma area.”
Skytrans jumped on the news, saying it would
immediately start a process to understand the needs
of the communities in the region and match them
against available resources and required return.
Th e company is seeking feedback from businesses
regarding the level of interest and preferred timings
and scheduling.
Member for Warrego Howard Hobbs welcomed
the move to allow commercial airlines to operate
from Roma to Toowoomba.
“Th ere are already airlines operating between
Sydney and Toowoomba, and now there is the
opportunity to connect to Roma,” he said.
Roma is one of those iconic Queensland Outback communities that has survived drought, fl ood and fi re in equal measure since the 1860s.
Th e town has a population of about 8000 according to latest Census fi gures and 10 pubs to slake a thirst on a hot day.
It is the hub of the Maranoa district in the south-west Darling Downs and has traditionally produced beef, wool and grain crops.
Like so many rural communities it is undergoing rapid change because of the riches being yielded up by the Surat Basin resources industry.
But here the gas boom is not new - natural gas was discovered in the early 1900s and provided lighting for the community. Oil was also found in the district, among the fi rst discoveries in Australia.
Santos has been a major player, with assets in the Roma area comprising about 70 small to medium gas fi elds and several small oil fi elds.
Sustained gas production commenced in 1961 with the Timbury Hills 2 well supplying a gas-fi red generator in Roma, which represented Australia’s fi rst commercial gas project.
First production to Brisbane commenced in 1969.
Th e fi rst coal seam gas (CSG) production in Australia commenced in 1988 from a single well in the Pleasant Hills fi eld. Th e well continues to produce coal seam gas at Walloon.
Origin Energy has also unlocked the massive potential of the area with its Spring Gully CSG development about 80km north of Roma.
A gas pipeline runs from the site to the Wallumbilla hub, which connects to the 434km Roma to Brisbane pipeline.
RomaIn a new series, Th e Mining Advocate
profi les regional communities feeling
the impact of mining and energy
development. Th is edition sees Bruce
Macdonald shine the spotlight on
Roma in the Maranoa district.
Even though the commodities boom has given Roma a signifi cant boost into the 21st century, the Maranoa district’s agricultural industry generates around $620 million annually. More than 60 per cent of that revenue comes from crops.
Cattle also play a signifi cant role, with Roma being the site of one of the country’s largest sale yards.
Toowoomba and Surat Basin Enterprise chief executive offi cer Shane Charles believes the Roma community is fortunate and better placed than a number of centres in the area in its eff orts to co-exist with mining companies.
“Roma has had 50 years of association with the gas sector, and particularly Santos, which has provided perhaps a better base from which to manage the current growth to the benefi t of the community,” he said.
“Th ere are numerous landholders with long, harmonious associations working with Santos. Don’t get me wrong, there are certainly instances of confl icts, but for the most part both sides seem to be solution focused and outcome orientated.”
Mr Charles, who also has the role of TSBE gas fi elds commissioner, said the business community had adapted cleverly to service the new demands, from accommodation through to trade services - off ering multifaceted service to the agricultural and gas operations.
But Mr Charles conceded that the agriculture sector had suff ered signifi cantly.
“Wages have increased (along with fertiliser and fuel) substantially,” he said.
“But on a positive front, many farmers and their children have found work in the resource sector which has allowed them
to stay on the family farm and in the region.”
Maranoa Regional Council Mayor Robert Loughnan said there was no doubt that the presence of big players like Origin and Santos had brought opportunities for many businesses around Roma.
Th e $16 million upgrade of the airport last year is evidence of the prosperity in Roma, with passenger numbers outstripping predictions by 80 per cent.
Cr Loughnan said the council had budgeted for about 100,000
arrivals at the airport this year but forward predictions put that fi gure potentially as high as 180,000.
Fortunately the airport on the outskirts of Roma has room to grow and the council is already looking at expanding the car park area and toilet facilities.
While the airport is a boon to the wider community, council picked up a substantial slice of the cost. Th e State Government contributed $4.5 million, Santos $2.5 million, Origin $1 million and the Federal
Government about $700,000 for airport security and scanning equipment.
An accommodation crisis is beginning to bite around Roma with many long-term residents forced to leave the community because of rental costs.
Th e construction of the Diamantina Village, which can accommodate 660 people, has taken some pressure off the accommodation sector but Cr Loughnan said the problem had not gone away.
“Hopefully the opening of the village will reintroduce a bit of sanity (to the rental market),” he said.
“But we need to make more houses available in the base market.”
Council representatives are in talks with the State Government to assist in developing council land for low cost housing.
Cr Loughnan is well aware that there have been benefi ts to the community but is equally aware that the commodities boom will not last forever and planning must take into account preparing the community for a shift of focus in the decades ahead.
A statue of John Machado at Roma’s tourist information centre. Machado, who helped train the fi rst Australian oil
drilling teams, came to Roma in 1923. Photos on this page: courtesy Maranoa Regional Council and Santos
Roma’s expanded airport facilities.
A gas works in Roma circa 1906.
Regional air route declared open
12 March 2013 | The Mining AdvocateNEWS
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Mackay innovation hits marketA device promising improved processing
throughput is hoped to draw global interest.
Mackay’s GROUP Engineering is launching its new volumetric scanner to the market after fi eld testing in the Bowen Basin.
GROUP managing director Allan Ruming said fi ne tuning as a result of that work meant the NISSEN scanner could provide a very accurate measure of volume, allowing process plant adjustments to maximise effi ciency.
A simplifi ed version of the scanner also controls blending of coal and detection/prevention of transfer chute blockages.
What gave this product an edge over other technology, he said, was the way GROUP was integrating it into process control to improve plant throughput.
“If you can improve throughput by 1 per cent or half a per cent, that’s a lot of product coal at the other end of the plant that would have otherwise gone to waste or been lost in the process,” he said.
“It increases the productivity and if you have an eight-million-tonne-per-year process – 1 per cent is signifi cant.”
Mr Ruming said the scanner
Many Generation X and Y-ers would fi nd it hard, if not impossible to comprehend how an individual could stay in one company for 10 years let alone 42.
Retired director and general manager of Townsville Engineering Industries, Bernie Byrnes, did just that after starting his career in 1964 as an apprentice boilermaker/blacksmith with Townsville-based Brambles Engineering.
In 1971 the 21-year-old
joined GEA Trading after completing his apprenticeship and quickly made his mark on the company, catching the eye of boss Tony Rock.
He was a key member of the management team until Mr Rock died in 1996 and joined in a partnership to buy the business, which became TEI soon after.
Even though Mr Byrnes’ focus was principally on ensuring the ongoing profi tability of the company, he never lost
the connection with his roots,
training hundreds of apprentices
who passed through the
company.
During his tenure in the
management side of the business
he expanded TEI into a global
operation overseeing projects
in Africa, Indonesia, New
Caledonia and Papua New
Guinea.
He is succeeded by Richard
Parker as general manager.
had been tried on a coal feeder running from a ROM (run of mine) stockpile as well as a raw coal feed into the processing plant at a Bowen Basin site.
He said the fi rst unit remained with the mine where it was tested and the technology was on off er to a number of mines and a wash plant designer.
GROUP would manufacture the scanners internally in the short term, but was considering licensing the manufacturing process out as orders increased.
“We intend to market this worldwide, we now have to decide on the best model to take the equipment to market,” Mr Ruming said. “GROUP is
Bernie Byrnes (centre, front row) at a farewell function with Townsville
Engineering Industries colleagues Adrian Part, Evan Stagg, Richard Parker,
Nickolette Conroy, Jody McGuinness and (back, from left) Deena Stirling,
Armin Richter, Grant Evans, Adam Packer, Jarrod Casey and Byron Carter.
working with a coaching team from Th e Australian Institute of Commercialisation - a division of QMI - to assist in taking the product to market.”
GROUP Engineering has also developed a belt splice integrated
transformer and control unit – SpliceMate - which combines all belt-splicing equipment bar the platens into one machine that can be easily transported above or underground for conveyor belt repair in mines.
GROUP
Engineering’s
volumetric
scanner at
work.
Engineering boss retires after 42 years in the job
13The Mining Advocate | March 2013 DRILLING AND EXPLORATION
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A spike in onshore hydrocarbon
projects will be among the
headline topics at a key
Northern Territory exploration
forum for 2013.
Northern Territory Geological
Survey director Ian Scrimgeour
said companies had invested
more than $100 million in such
exploration in the NT in 2012
and this was likely to rise again
this year.
“A really important
development is that we’ve seen
a lot of large companies getting
involved in (oil and gas) joint
venture projects,” he said.
“We’ve had Statoil – a large
Norwegian petroleum company,
we’ve had Santos getting very
involved in the Territory, and we
have already seen a signifi cant
farm-in by Hess – a large
American company.
“So we have seen interest from
major companies now, which is
really driving things along.”
Dr Scrimgeour said the
Annual Geoscience Exploration
Seminar (AGES), to be held in
Alice Springs from March 19-
20, would include presentations
regarding hydrocarbon potential
across the Territory.
“Th ere’s a lot of emerging
interest in shale gas and other
new petroleum plays,” he said.
“Normally at AGES we focus
on minerals, and we’ll still have
a strong minerals focus, but we’ll
also have a number of talks on
recent exploration highlights
potential to have some new
petroleum production from these
very old rocks.”
While Armour Energy has
been having success with gas
fi nds in that area, Central
Petroleum has made the fi rst
new onshore oil discovery in the
NT in about 50 years in an area
west of Alice Springs.
Dr Scrimgeour said the NT
had been producing gas and a
small amount of oil from the
Mereenie and Palm Valley fi elds
in central Australia for years, but
they had limited resources left.
“Over the last 20 years or so
there has been very little onshore
hydrocarbon exploration but it
has suddenly taken off over the
last two or three years,” he said.
Th is could be attributed
mainly to the development
of new technologies allowing
extraction of oil and gas from
“tight” rocks - rocks with very
low permeability.
While exact fi gures for
hydrocarbon exploration were
not available, Dr Scrimgeour
said spending had certainly risen
signifi cantly in the past year.
At the same time, the amount
spent on NT mineral exploration
is believed to have dropped from
$228 million in 2011 to about
$170 million in 2012 (with last
year’s fi gures still to be fi nalised).
Th e Northern Territory Geological Survey’s 14th Annual Geoscience
Exploration Seminar (AGES) will be held at the Alice Springs
Convention Centre on March 19-20, following workshops on March 18.
Seminar topics include:
• copper and gold potential in the Arunta region of central Australia,
where NTGS mapping has identifi ed similar mineral alteration to
that found around Olympic Dam,
• how the NTGS Hylogger (a hyperspectral imaging device ) can be
used to understand mineral alterations surrounding deposits in the
Tenant Creek area and its potential to identify rare earths in the
drill core collection held by the Government,
• dedicated rare earths sessions highlighting some of the signifi cant
deposits in the NT and potential rare earth developments,
• the geology of some of the deposits at the centre of a gold
exploration boom in the Tanami region, and
• results of modelling from a major gravity survey conducted in
southern NT, over the Amadeus Basin, in 2012.
LandTrack Systems has set up a new avenue for prospectors,
geologists and others to gain up-to-date data on mining
tenement boundaries.
The company, which collects tenement data from across
Australia for its land-use tracking tools, is making the
information freely available as an extension to Google Maps
called LandTracker Maps.
LandTrack Systems managing director Justin von Perger
said the free app would allow people to view and download
tenements anywhere in Australia on any GPS device, without
needing expensive GIS Software.
Boundaries are updated every morning from state
government mines departments across Australia.
for conventional petroleum as
well as work done on resource
potential for unconventional
petroleum in the NT.”
Dr Scrimgeour said the
hydrocarbon hot spots were
spread right across the Territory.
Th ere had been a lot of
success recently in the area
around Borroloola in the
McArthur Basin – the same
geological formation that hosts
the McArthur River lead-zinc
deposit.
“Th is is some of the oldest oil
and gas in the world – around
1600 million years old,” Dr
Scrimgeour said.
“It’s quite geologically unusual
and we see some fantastic
NT spotlight on oil and gas drive
Ian ScrimgeourNorthern Territory Geological Survey
director
Seminar highlights
Drawing the line
14 March 2013 | The Mining AdvocateINDUSTRY UPDATE COAL AND GAS
LNG’s long haul
LNG project teams have completed
what has been hailed as a world-
class engineering achievement in
simultaneously laying two 1m-diameter
gas pipelines across Gladstone harbour.
Th e fi ve-day operation to winch the
pipelines 2.3km from the mainland to
Curtis Island represented Australia’s
longest large-diameter underwater “pipe
pull”, according to gas company QGC.
QGC managed the project under which
pipelines for the Queensland Curtis
LNG project and the Australia Pacifi c
LNG project were laid in a trench by
pipeline construction contractor MCJV,
a joint venture between McConnell
Dowell Constructors and Consolidated
Contracting Company Australia.
Th e segments will connect each project’s
main pipelines from the Surat Basin gas
fi elds, about 300km inland, to liquefi ed
natural gas plants on Curtis Island.
Th e harbour crossing involved
construction of temporary facilities
including a 2km-long road, two bridges
and a railway line to move the pipes
across two creeks, marshes and mud fl ats.
It used a temporary 450-tonne capacity
winch on Curtis Island to pull the pipes
– which together weighed 8000 tonnes –
through the sub-sea trench.
“Th is engineering feat is signifi cant
on a world scale in terms of scope and
complexity,” QGC pipelines project
director Norman Ingram said.
Uplifting experience
Th e Queensland Curtis LNG
construction team has lifted a 900-tonne
steel dome roof to the top of a 38m high
tank using air. Th e tank roof – 79m in
diameter - is the fi rst to be placed into
position across the three LNG projects
under way in Gladstone.
Bechtel Oil, Gas and Chemicals - the
construction contractor for the QCLNG
plant - began building the fi rst tank 15
months ago.
Bechtel said the roof had been assembled
inside the tank wall, close to the ground,
during the early stages of the tank
construction process. To lift the roof, the
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tank entrance was sealed and three large
fans pumped air underneath the roof,
creating an increase in air pressure that
enabled the roof to rise in a three-hour
process. Th e roof will be covered with
concrete while the interior of the tank
will be insulated and lined with nickel
steel to keep the gas liquefi ed at minus
162 degrees.
APLNG construction on track
A schedule and cost review of Australia
Pacifi c LNG’s coal seam gas to liquefi ed
natural gas project has found the fi rst
train to be on track for completion on or
ahead of schedule, with the fi rst LNG
cargo expected in mid-2015.
Train 2 is expected to be completed at
least three months earlier than scheduled,
with start-up expected in the fourth
quarter of 2015.
Cost estimates for the project have risen
from $23 billion in July to $24.7 billion.
Online aptitude test
Energy Skills Queensland has launched a
new aptitude test to help energy industry
employers recruit suitable candidates.
Th e online tool – at www.energyskillstest.
com.au - gauges a candidate’s suitability
for a trade career in the energy industry,
including the electrical, gas and
telecommunications sectors.
ESQ workforce development consultant
Jody McAully said the test should
help reduce the number of apprentices
dropping out. “Around one in three
electrical apprentices fail to become
tradespersons and this high non-
completion rate is costing employers
thousands in recruitment expenses and
poor productivity,” Ms McAully said.
Gove gas deal
Th e Northern Territory Government has
committed to supply enough gas to keep
Rio Tinto’s alumina refi nery in Gove
open for 10 years.
Chief Minister Terry Mills said
the Government would fi nalise the
necessary documents and formalise the
arrangements for the release of gas as
soon as possible.
“A $1.2billion project
is now likely in the
Northern Territory, made
up of approximately
$500 million in infra-
structure upgrades to
allow Eni to fl ow gas
from Blacktip to Gove,
$200 million for Pacifi c
Aluminium to convert
their generators to gas
at the Gove refi nery,
and approximately
$500 million to construct
the new pipeline,”
Mr Mills said. “Th e
Commonwealth
Government has shown
its support for the
Northern Territory
Government’s decision
to release gas to Rio
Tinto, and must now
follow through on their
commitment to underwrite the fi nancing
of a gas pipeline to Gove.”
Rio Tinto said Pacifi c Aluminium was
advancing plans for conversion from
heavy fuel oil to gas but noted there
were still a number of important steps
remaining to deliver gas to Gove.
It has threatened to close the operation,
saying the rising cost of heavy fuel oil
coupled with a high exchange rate and
low alumina price meant the plant had
sustained heavy losses for some time.
Skills groups join forces
Energy Skills Queensland and Kinetic
Group are joining forces to provide a
broader range of workforce planning and
development services to the energy and
mining industries.
ESQ is responsible for leading industry
and government engagement on education
and training, skills development and
labour market issues for the energy sector.
Th e Kinetic Group is the skills advisor to
the resources sector.
ESQ chief executive offi cer Glenn Porter
said the merger would create a bigger and
stronger organisation that had increased
capabilities to service and meet the needs
of the industry and its stakeholders.
Meridian strengthens
WestSide Corporation has announced a
signifi cant upgrade to its certifi ed reserves
after receiving a report highlighting 2012
results from the Meridian SeamGas CSG
fi eld near Moura. Net 1P reserves were
up 40.7PJ to 47.2PJ, while 2P reserves
rose from 258PJ to 347PJ and 3P reserves
increased from 725PJ to 885PJ.
WestSide chief executive offi cer Julie
Beeby said the report acknowledged the
company’s achievements in bringing new
wells into production at Meridian and
extending the life and productivity of
existing wells within the fi eld.
New Oakleigh bows out
Th e New Oakleigh open-cut coal mine in
the Ipswich region has shut up shop after
coming to the end of its productive life.
New Hope Group chief operating
offi cer Bruce Denney said the company,
which formed in Ipswich in 1952, would
continue its strong local links through its
nearby Jeebropilly mine.
Mr Denney said the company had
been working closely with about 30
staff members to fi nd other positions
within New Hope where possible. Some
would be retained at the site to continue
rehabilitation work, he said.
15The Mining Advocate | March 2013 INDUSTRY UPDATE COAL AND GAS
Economic windfall
Bandanna Energy’s proposed Springsure
Creek coal project will deliver the state
an economic windfall of almost $1 billion
and more than 2000 new jobs, according
to new modelling.
A study by economic consultancy
AECgroup shows construction of the
fi rst stage of the project between 2013
and 2015 would directly create 1022 full-
time jobs in Queensland and a further
2104 jobs indirectly.
Th ese include 380 direct full-time
positions and 560 fl ow-on jobs in the
Central Highlands, Rockhampton
and Gladstone regional council areas
surrounding the proposed underground
mine, 47km south-east of Emerald.
Bandanna’s total capital expenditure on
the fi rst longwall operation is expected to
be about $750 million, with an additional
$400 million spent during construction
of the second longwall from 2020.
Th e defi nitive feasibility study for the
project has been completed.
Bandanna managing director Michael
Gray said, with delays to many other
new projects, the company was confi dent
it would be producing coal at a world
competitive cost in a market of increasing
demand and limited new supply.
Collinsville control shift
Xstrata Coal will take the reins at the
Collinsville coal mine from Th iess, in
a move expected to cost the contractor
about $650 million in lost work over the
next four years.
Following a review of operations at
the mine, Th iess said it had entered a
transition agreement with Xstrata Coal
which would see the site move to an
owner-operator model from August
2013.
Th e Bowen Basin mine has suff ered
substantial fi nancial losses in 2012/13 –
attributed to factors including the weak
coal export market, strong Australian
dollar and high costs. Xstrata Coal said
the change in management aimed to
restore the mine’s viability.
“As owner-operators Xstrata Coal will be
able to make the decisions and changes
necessary to improve productivity and
reduce costs,” the company said in a
statement.
Collinsville Coal Mine produces about
3.9 million tonnes of coking and thermal
coal per annum. It is owned by a joint
venture partnership between Xstrata Coal
(with 55 per cent ownership), Itochu
Coal Resources and Sumitomo.
Solar power study
Th e Australian Government is backing
a feasibility study into the potential
conversion of the Collinsville coal-fi red
power station into a hybrid gas/solar
thermal plant.
Resources and Energy Minister Martin
Ferguson announced $2.5 million in
funding under the Australian Renewable
Energy Agency’s (ARENA’s) Emerging
Renewables Program towards the study.
Initiated by Collinsville Power
Station owner RATCH-Australia, the
$5.6 million study will assess the viability
of converting the 180MW plant to a
30MW hybrid solar thermal/gas power
station with the help of ARENA.
“Th e feasibility study will help other
generators to assess the possibility of
using solar thermal technologies at coal-
fi red plants,” Mr Ferguson said.
Th e University of Queensland will
contribute through a research program
that investigates potential early stage
operation and any commissioning issues.
Virgin fl ies to Moranbah
Virgin Australia plans to start fl ights
between Brisbane and Moranbah
in April. Th e company said its ATR
Turboprop aircraft would initially operate
two daily return fl ights on weekdays,
increasing to three daily return fl ights
from April 15, as well as one daily return
fl ight every Sunday.
“Moranbah is situated in the heart of
the Bowen Basin and we are pleased to
be supporting both the local community
and the resources industry by bringing
much-needed competition to this
market,’’ Virgin Australia group executive
of alliances, network and yield Merren
McArthur said.
Deputy Premier Jeff Seeney recently
opened the $46 million Moranbah
airport expansion, which was funded
by BHP Billiton Mitsubishi Alliance.
Th e upgraded airport can support an
estimated 110 fl ights each week.
Gregory Crinum sale prospect
BHP Billiton has confi rmed it is
investigating potential sale of the
Gregory Crinum mining operation near
Emerald.
Th e company said it was also assessing
options to further extend the life of the
complex, owned and operated by the
BHP Billiton Mitsubishi Alliance.
BMA closed the Gregory open-cut
mine in October last year due to its
unprofi tability in current market
conditions.
Th e company said the Crinum
underground mine remained profi table
and would continue to operate in the
event that the Gregory Crinum complex
was retained within the BMA portfolio.
“Any decision to proceed with
divestment, or otherwise, is unlikely for
six to nine months and will depend on
market interest and other commercial
factors,” a BMA spokeswoman said.
More for Moorlands
Queensland coal explorer Cuesta Coal has
further capital to advance its Moorlands
thermal coal project in the Bowen Basin
after raising $12 million through a share
placement agreement with Beijing Guoli
Energy Investment Co.
“Our immediate priority is to complete
the mine scoping study at Moorlands in
Q1 2013 followed by resource drilling
programs in the lead up to feasibility
studies,” Cuesta Coal managing director
Matthew Crawford said.
Deal sealed on Belvedere
Vale has paid $150 million to acquire
Aquila Resources’ 24.5 per cent stake in
the Belvedere coal project, near Moura
in the Bowen Basin, giving the Brazilian
mining giant 100 per cent ownership.
Th e company has also paid $20 million in
an agreement to settle legal disputes with
Aquila Resources.
Aquila said it now had more than
$600 million in cash available to progress
various projects, most notably the
construction of the Eagle Downs
coking coal project - which is under way
25km south-east of Moranbah.
Merger forms MEM Group
Mackay-based company DPSA
Engineering and Rockhampton-based
Mining Equipment Maintenance have
merged to create MEM Group.
MEM Group chief executive offi cer
David Blower said MEM Group Mackay
and MEM Group Rockhampton
would enjoy signifi cant infrastructure
redevelopments in 2013.
MEM Group Mackay had relocated
to a 6600sq m purpose-built complex
in Paget, including two fabrication and
repair facilities, while a redevelopment
was planned for the group’s 8ha North
Rockhampton site to increase heavy
equipment and medium vehicle service
capacity, he said.
E-mentoring for resource women
Th e Australian Women in Resources
Alliance has launched a dedicated virtual
mentoring program for women working
across Australia’s resource sector.
Th e online portal is delivered by resource
industry employer group AMMA with
support from the Australian Government
under the National Resource Sector
Workforce Strategy. Th e program
connects experienced mining, oil and gas
professionals with women in the earlier
stages of their careers.
AMMA director of group services
Tara Diamond said the fi rst round of
AWRA e-mentoring partnerships had
commenced, with male and female
mentors providing guidance to women
seeking to further their resources careers.
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Mackay Area Industry Network breakfast
Gladstone Engineering Alliance industry update lunch
Ocean International Hotel, Mackay
Rydges Gladstone
Ruston Kemp (Excel Drilling), Michelle Berkhout (VIA), James
Harris (Brown & Bird), and Hans Berkhout (RCS).
Stephen Ross (Gibsons) with Michelle McAuliff e and Allistair
Emery (both Momentum Software Solutions).
Ray Vella and Drew Callander (DAC Mining Services) with Luke
Harrison (Diamond Protective Coating) and Paul Squire (NZ
Professional Health & Safety Services).
Jessica Simpson (BMC), Ray Allan (AIM), Gina Davis (Gina’s Flags),
Nikki Crouch (Veolia), and Leon du Preez (Mastermyne).
Terry Sammut (Elite), Dan Thompson (NAB), Garry Pennell
(Vantage), Bill Hopton (CTPM) and Troy Pantall (QCCS).
Doug Forster and Allan Jerrery (Seventeen Seventy Beach Pty Ltd)
with Cameron Price (Fodico Marine Group).
Matt Ireland (Ireland & Co.), Nicola Kelbie (Cement Australia) and
Bill Blake (McKays Solicitors).
Brendan Kanofski and Sean Grey (both from Total Drafting Service).
Shayne Ritchings (Jet Engineering), Jeff O’Keefe (Mastermyne),
Danny Schneider (NAB) and Matthew Gray (KPMG).
PHOTOS: Damien Carty
17The Mining Advocate | March 2013 BETWEEN SHIFTS
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Tony Bright, Ella Brownsey, Sally Howard and Courtney Lavender
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and Lawrence Pappin (both CCTS).
Kate O’Dea (G&S Engineering), Andrew Pellow (Mastermyne) and
John May (Eagle Boys Sarina).
Craig Forsyth (Flanagan Consulting Group), Steve Lawn (EHS
Manufacturing), Tony Hutchinson (Jet Engineering) and Alan Hayes
(Hayes HR).
Joanne Hamilton (NAB), John Vella (Dowdens) and Martin
Lambert (Stamford Financial).
PHOTOS: Damien Carty
TSBE February Enterprise Evening
Dalby Bowls Club
Ross Low and Geoff rey Campbell (both Country Petroleum)
with Gavin Walton (CEC).
Reagan Parle (Toowoomba Surat Basin Enterprise), Beth Wood
(DCCI) and Wilhemena Mclean (Origin Energy).
Peter Worth (Rocla), Andrew Bowden (Queensland Survey Pegs),
and Adam Bradley (Rocla).
Michael Hubbard (ANZ), Nick Koeing (DCCI), and Tony Randall
(Murdoch Lawyers).
Dallas Hunter (FKG) and Terry Smoothy (Verifact). Bill Gammack (AMVL) and Bruce Cameron (Cottrell Cameron and
Steen Surveys).
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Darwin Mining Club lunch
Crowne Plaza, Darwin
Stuart and Rebecca Pascoe (Northwest Equipment Hire). Anthony Griffi n (Broncos) with Carli Schulz and Emily White. Dylan O’Neill and Jamie Hull (Dave Clancy Electrical).
Siggi Buba (Geminex) with Seamus and Fred May (May Drilling). Chris Roe (KSB Australia), Colin McTaggart and Adam Stockwell
(Thinkwater), Glenn Rossiter (Thrifty), and Glen Funnell (KSB).
Deb Carr (RTO Temphelp), Rosemary Yanz (Mt Todd), and
Jeanette Button (Creative Territory).
PHOTOS: Christopher Knight
Sportsman Dinner
Overlander Motel, Mount Isa
Jason Taumalolo and Chris Grevsmuhl (Cowboys) with Grant
Torta and Chloe Hornsby (AWX), and Curtis Rona (Cowboys).Julie Loccisano and Tariq Sims (Cowboys). Linda and Lee Pullman (Mount Isa Bell & Moir Toyota) with Neil
Henry and Peter Parr (Cowboys).
Chris McCleave, Natalie Lund, and Bryant Schwengler (back),
with Huw Werrett and Steve de Kruijff (all from Xstrata).
Adam Dotta and Cameran Conlan (ASPIC) with Kristian Woolf
(Broncos).
Len Farren, Ron Pertovt and Kim Kretschmann (back), with Deb
and Gary Cooke (representing Migate).
PHOTOS: Roslyn Budd
19The Mining Advocate | March 2013 BETWEEN SHIFTS
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Diamantina Power Station visit
Mount Isa
Brett Peterson (Mount Isa City Council) with Grahame West
and Loughlin Nolan (both APA Group).
Jean Ferris (Mount Isa City Council), with David Jones and Colin
Popple (APA Group), and Mark Williamson (Ergon Energy). Stephen Ohl (DPS) and Tony McGrady (Mount Isa City Council).
Steve McDougall (KBR) and Anne Seymour (Mount Isa City
Council).Kim Coughlan (Mount Isa City Council) and Michael Butler (APA
Group).
Mark Magnowski (DPS) and Mark Shadur (MITEZ).
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AusIMM trivia night
Island Bowls Club, Mount Isa
“Toga Crew” - (back) Jazmine Ketsteven, Toni Khun, Emily
White, Carli Schulz, (front) Andrew Murray, Kellie Green, and
Catherine Cantony.
Xstrata vacation students - (back) Phill Henderson, Jason
Squires, Warwick Devlin, (front) Caitlyn Standen, Roland duToit
and Akshay Kumar.
Xstrata second-year graduates - (back) Mel Rickets, Ashleigh
Job, Hank McDonell, Alfi e Tsang, (front) Anne Schoemaker, Matt
Harland, Matt Grayland, and Belinda Wong.
“Norfolk and Chance” - (back) Gareth Parkinson, Laura Parkinson,
Richard Ogle, Daniel Woolmer, (front) Anna Chase, Jack
Pilkington, and Eileen Rowe.
“Penny Pinchers” - Billy Reid, Felix Koeppen, Graham Ball, Nick
Patterson, and Douglas Ball.“Sharapova Screamers” - (back) Alyssa Hunt, Glenn Bradley
Trueman, Jack Lowe, (front) Glen Molanano, Pete Kroek, Samuel
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20 March 2013 | The Mining Advocate
CanningtonProudly supporting mining communities
SUPPORTED BY BHP BILLITON CANNINGTON
Building Mining Communities
Julia Creek has suff ered in past years by not being able to rival other north-west Queensland townships with a tourist attraction that would entice the grey nomads who crisscross Australia in caravans and motor homes to stay a while.
Th at has changed with what McKinlay Shire Council chief executive offi cer Shane Cagney describes as “phenomenal” support from the BHP Billiton Cannington mine, which has invested $1 million into stages one and two of Julia Creek’s Tourist Information Centre.
“Hughenden and Richmond have their dinosaur bones while Cloncurry and Mount Isa have mining,” Mr Cagney said.
“Julia Creek had no hook to entice the grey nomads to stay overnight here, but that has all changed now and the business community is starting to realise the benefi ts.”
Stage two of the project - offi cially opened in December – has been named “Beneath Th e Creek” and features a modern building fi tted with state-of-the-art audiovisual equipment.
A focal point is a display
Th ey’ve dunnart
Bandanna Energy has launched a ground-breaking
agricultural project at its Springsure Creek mining lease
in central Queensland to prove that mining wealth can
come without sacrifi cing strategic cropping land.
Bandanna aims to maintain or improve crop
production at its wholly-owned Den-Lo Park property
while it operates its proposed 11mtpa thermal coal mine
underneath.
Th e Den-Lo property – south-east of Emerald -
produces wheat, corn, cotton, sorghum and mung beans.
Bandanna managing director Michael Gray said the
company would draw on Queensland’s top farming
experts to help guide research on strategies to maximise
agricultural productivity above an underground mine in
a bid to help solve one of the major economic dilemmas
facing the community.
Th e project, costing at least $10 million in its fi rst
phase, involves a three-year research program overseen by
an independent steering committee of leading farming
academics and consultants
Mung beans mix
with coal dreams
Bandanna Energy managing director Michael Gray examines
a wheat crop with Anthony Diprose from Customised Farm
Management and fellow Bandanna executives Matthew Palmer
and Stuart Clarke.
Mining contractor Redpath Australia has
introduced a bright pink excavator and pink
work wear to BHP Billiton’s Cannington
mine in a breast cancer awareness and
fundraising initiative.
Redpath has volunteered to donate
$10 for every hour the pink excavator is
at work at the north-west Queensland
mine throughout 2013, with BHP Billiton
contributing $10,000 dollars to the cause.
All Cannington workers also have the
opportunity to get involved, with any
person who donates $50 given a pink hard
hat and work shirt to wear on site.
Redpath said the initiative, run in
partnership with the National Breast
Cancer Foundation (NBCF), kicked off in
January.
While it was too early to gain fi gures for
the number of employees donning pink,
Redpath Australia marketing manager
Rhiannon Vines said the response had been
extremely positive.
“Initially we weren’t sure how enthusiastic
our workers would be about wearing bright
pink to work, but they have been incredibly
supportive, with many volunteering and
getting involved,” she said.
Redpath Australia in the pink at Cannington operation
featuring two rare carnivorous marsupials, dunnarts Rex and Dingo.
Th ey were donated by the University of Queensland’s Native Wildlife Teaching and Research Facility at Gatton, near Brisbane.
Mr Cagney said Julia Creek was the only place outside of the wild where members of the public could see the mouse-like creatures.
One of the most popular
Stage two of the Julia Creek Tourist Information Centre opened recently,
thanks to support from BHP Billiton Cannington.
This pink excavator and workers with gear to match are doing their bit to fund breast cancer research. Photo: Greg Crow
features is the recreation of a
section of bush on the fl oor of
the new building where visitors
can see a dunnart scurry off as
they stand on a tuft of spinifex
grass.
Mr Cagney said the four
walls of the new building
featured the geology of the
region from the Cannington
mine north to the Gulf; fauna
of the region; fl ora and the
pioneers who settled the area.
21The Mining Advocate | March 2013
CanningtonProudly supporting mining communities
The Royal Flying Doctor
Service (RFDS) is swapping
wings for wheels to help address
regional Queensland’s oral health
problems.
Th e RFDS initiative is backed
by mining company QCoal,
which has committed $3 million
to deliver a new mobile dental
service from an 18-wheel
semi-trailer housing two dental
surgeries and a team of dental
experts.
Th e QCoal Community
Dental Service will visit regional
Queensland communities where
oral health services are limited,
providing access to preventative
dental care and treatment with no
out-of-pocket expense for users.
QCoal managing director
Christopher Wallin said regional
Queensland had a serious dentist
shortage, leaving far too many
people without proper dental care.
“I’ve worked in regional
Queensland for decades and
have seen the toll this shortage is
taking on people’s overall health,”
Mr Wallin said.
“People in the regions have
fewer teeth and more untreated
decay, which can lead to the onset
of a range of other chronic health
conditions.
“QCoal is keen to support
Queensland’s rural and remote
communities, including those we
work in. I know from talking to
our employees and their families
that having regular, reliable access
to dental care is a major concern
for them.”
Th e truck contains equipment
including an orthopantomogram
(OPG), which allows RFDS
dentists to take an x-ray of the
teeth and jaws.
RFDS Queensland chief
executive offi cer Nino Di Marco
said the QCoal Community
Dental Service would off er
everything from a simple
check and clean through to an
extraction or x-ray.
“With around 80 per cent of
all dental practitioners located in
major cities and less than 1 per
cent working in remote areas, this
new service will fi ll a real gap in
many communities,” he said. “Th e
RFDS aims to provide equity of
access to quality health care for all
those who live and work in rural
and regional Queensland and
we’ve identifi ed dental health as
an area of signifi cant need.”
Th e QCoal Community
Dental Service will visit towns
including Clermont, Moranbah,
Collinsville, Bowen, Hughenden
and Camooweal.
For more information visit
http://www.fl yingdoctor.org.au/
dental
Fight for better bites
Gas company QGC is investing $1.3 million to give families
in the Western Downs better access to medical specialists in
Toowoomba and Brisbane.
Th e investment will establish a telehealth service at Dalby
Hospital from mid-2013 and fund running costs for the fi rst
two years, enabling families in the region to get specialist
medical consultations online.
Th e Health e-REGIONS service will be run by the
University of Queensland’s Centre for Online Health,
with assistance from the university’s main research
commercialisation company, UniQuest.
QGC said patients from Dalby, Chinchilla and Miles
would have access to the broadest online network of specialist
paediatric, geriatric and aged-care services in Australia at
participating hospitals, general practitioners and aged-care
facilities.
Under this system patients can have specialist appointments
by video conference, reducing the need for long-distance
travel for face-to-face consultations.
QGC vice-president sustainability Brett Smith said the
project refl ected QGC’s commitment to rural health services.
“Community health is a key focus of our $150 million social
contribution, through which we manage social impacts and
maximise benefi ts from our Queensland Curtis LNG project,”
Mr Smith said.
“As part of this work, we funded a study of health services
in the region in 2012 which highlighted the need for greater
access to specialist medical care.”
Telehealth link toserve Dalby region
Dysart medical boost
A Brisbane paediatric neurologist engages in a consultation with
remote clinical staff .
Children at the Moranbah Community Playgroup are enjoying new playground equipment purchased with social investment funds donated by Anglo American’s Moranbah North mine.
Playgroup co-ordinator Lisa Hardwick said until recently the centre had only an older plastic fort with a slide, which had become unsafe, so she urgently needed funding to purchase some new equipment.
After applying for funding through Anglo American’s 2012 social investments and donations
program, the centre received funding for a new play fort and a colourful “worm tunnel”.
“Our playgroup was established in 2006 to address a need with new families moving to town and looking for a social place to bring their young kids while making local contacts and friends themselves,” Ms Hardwick said.
“It’s grown into a wonderful place for children to learn through play and make new friends while parents fi nd they establish a support network as they become part of our community.”
Mine funds for playgroup fun
Moranbah North human relations co-ordinator Tanya Vaughan, stakeholder engagement specialist Lynda Pollock and
Moranbah Community Playgroup co-ordinator Lisa Hardwick show off the new equipment with children from the
Milburn, Hardwick and Walker families. Dysart is set to gain a new medical centre after Isaac Regional Council received $750,000 from Queensland’s Royalties for the Regions program.
Th e council is one of six local governments across Queensland that was shortlisted for funding under the fi rst pilot round of the program.
Deputy Premier Jeff Seeney said Dysart had a residential population of about 3450 people, or 5530 when non-resident workers were taken into account.
Th e new project would deliver a medical centre with three consulting rooms and two treatment rooms, he said.
“It will house two GPs, two part-time practice nurses and visiting allied health specialists such as dentists, chiropractors and optometrists,” Mr Seeney said.
It followed the announcement in January of a $5 million commitment for Emerald’s Nogoa River Rail Bridge fl ood mitigation project - the fi rst project to receive funding under the Newman Government’s $495 million Royalties for the Regions program.
SUPPORTED BY BHP BILLITON CANNINGTON
Building Mining Communities
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Darwin
Rental accommodation in Roma
received a major boost with the
recent opening of the $50 million
Diamantina Village complex,
5km east of the CBD.
Stage one of the project
will accommodate 660 people,
according to Brisbane-
based company Modular
Accommodation Solutions.
MAS general manager James
Donnelly said the village was
the fi rst of a series of projects
planned by his company, with
Gladstone the site for a second
project expected to start in
August or September this year.
Mr Donnelly said he received
the full backing of the Maranoa
Regional Council during the
approval stage of the Roma
project.
Th e Roma complex is aimed at
mining industry workers but is
also open to the general public.
It off ers fully self-contained
units with a host of facilities
including a licensed bar,
gymnasium, tennis courts,
barbecue area, pool tables, cafe,
general store and a swimming
pool with sauna. Each room
in the village contains reverse-
cycle airconditioning, ensuite
bathroom, pay TV, refrigerator
and a work space.
A training room is also
available, featuring high-speed
internet to provide conference
calls and induction courses for
new workers destined for the
major mining sites in the district.
Mr Donnelly said his company
had decided to go ahead with
the ambitious project with no
pre-commitment from mining
companies to take out long-term
leases.
“We adopted the philosophy
that if we build it, they will
come,” Mr Donnelly said.
Th e village is being built by
the FK Gardner Group.
Stage two of the project, which
has council approval, will allow
the village to accommodate more
than 1000 people. It is expected
to be completed by the end of
the year.
Mr Donnelly has 20
years’ experience in property
development and his name may
seem familiar to some readers.
He made 23 appearances for the
Brisbane Broncos between 1989
and 1991.
New rooms
for Roma
The $50 million
Diamantina
Village complex
opened recently
in Roma.
A health and fi tness program run by one of Australia’s largest mining services companies has seen 1412 fl y in-fl y out workers lose 3872kg in a 12-week challenge.
ESS Support Services Worldwide (ESS) has been running the Tastelife program throughout its Australian mining villages since 2004 and in 2006 kicked off an annual weight loss challenge as part of the scheme.
Th e overall winner of the latest challenge – David Law from the Eureka Village at Goonyella Riverside mine, Moranbah - shed 24.5 per cent of his body weight by losing 31.7kg.
“I became frustrated by being overweight when I realised I couldn’t tie my boots
comfortably,” Mr Law said.“I was always fi t and healthy
in my younger days and just became lazier as I got older. Now I enjoy feeling fi t, healthy and being active.”
Th e Tastelife Weight Loss Challenge sees FIFO workers participate in activities to increase their awareness about weight gain and improve their overall health, fi tness and lifestyle choices through a program of activities co-ordinated by on-site ESS Activelife coaches.
ESS Eureka Village project manager Adam Rolfe said participation in the challenge was growing due to an increased awareness amongst village residents of how their lifestyle
choices aff ected their health, combined with the assistance and encouragement they received from Activelife co-ordinators on site.
He said there had also been a defi nite increase in the number of residents becoming involved generally in the sporting and group fi tness activities off ered on site as people had become more aware of the negative side eff ects of making poor health and fi tness choices and the obesity crisis was highlighted in the media.
“One of the major trends we have seen is the positive benefi ts the Tastelife program is having on residents when they leave site and head home on their R&R – they are continuing their new
Miners embrace health and fi tness programhealthy habits, such as increased
physical activity and healthy
eating, when at home with their
families,” he said.
“Th is is a great endorsement
of the Tastelife program and the
long-term positive changes it can
inspire in residents.”
Central Queensland miner Dave Law before and after the challenge.
23The Mining Advocate | March 2013 BIG BOYS’ TOYS
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Love your lure fi shing but just don’t have the time to reach your best spots?
Self-confessed fi shing tragic Josh Batterson stumbled upon the American-built Skeeter range of boats when watching a television program on US bass fi shing.
Th e Sydney-based angler was hooked and has had the Australian distribution rights for the Skeeter range since 2004.
Uptake on the purpose-built lure fi shing platforms was slow initially but he now sells 70 to 80 boats annually from his Penrith boat yard.
Skeeter boats are designed to travel quickly to fi shing hot spots and provide a stable, carpeted fi shing platform.
Everything is stowed below the deck, optimising the lure casting area.
Th e craft are fast, with many capable of travelling at well over 100km/h - allowing the crew maximum fi shing time at their favourite locations.
Skeeter Boats has been building specialised lure fi shing craft for 60 years in the US and it was the attention to detail and quality of workmanship
which won Josh over.“I’ve been fi shing all
my life, mainly from aluminium boats. Th ere was nothing like the Skeeter boats in Australia until I started importing them,” he said.
“With more fi shing tournaments in Australia the popularity of the boats has grown, particularly amongst barramundi anglers.”
Th e strong Aussie dollar means you can get into a Skeeter boat for $40,000 right through to the top-of-the-range craft at $110,000.
While 80 per cent of the Skeeter boats sold by Josh are for fi shing, ski and pleasure craft also feature in the range.
Secondhand craft are also available from around $22,000 for 2004, 2005 or 2006 models.
For more information visit www.skeeterboats.com.au
Mackay Rod and Custom Club
pesident Steve “Stumpy” Ware’s
Chevrolet Tudor.
Exterior and
interior views of
one of the bass
boats from the
Skeeter range of
fi shing craft.
Th e coal mining boom in the Bowen Basin has had a welcome impact on the Mackay Rod and Custom Club, which has seen its membership double to 110 enthusiasts in the past fi ve years.
As the name indicates, the club is for automobile fanciers who like to modify their vehicles.
Th e club has operated for 30 years and current president Steve “Stumpy” Ware has been a member for 20 years.
He is the proud owner of a 1930 Ford closed-cab
rod and a Chevrolet Tudor.
Stumpy said there was no doubting that the mining boom had been good for the club.
Club members head off down the highway once a month and gather for a regular Friday night cruise around Mackay.
“We pretty much decide on the night where we go,” Stumpy said.It’s the club’s 30th anniversary this year and Stumpy and his
committee are planning some big events to celebrate the occasion.But the highlight of 2013 will be the biennial club show at the
Mackay Showgrounds on May 11 and 12.Th e last show in 2011 attracted 211 vehicles from across
Queensland and interstate.Th e club caters to a wide cross-section of motoring enthusiasts
from fanciers of Australian and American muscle cars to all types of hot rods.
“We even have a Ferrari owner in the club,” Stumpy said.Club membership is $100 per year and prospective members must attend three meetings before being voted into the club.
Membership has its benefi ts including cheaper registration for members’ custom vehicles.
Contact Stumpy on 0428 184 773 or visit the website at: www.mrcc.org.au
Boom times for custom car club
Boats to lure you in
24 March 2013 | The Mining AdvocateSAFETY AND RESCUE
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Technology gives trainers the edgeA Mount Isa business is using interactive software with an Xbox control system to take a new generation of miners through their safety paces.
Krause Health and Safety began running courses with the Canary technology in January after getting its team of trainers up to speed with the system.
General manager Dave Anderson said not all of the trainers found it easy to adjust to using the complex Xbox controls – unlike those Generation Y students attending the new courses.
“Th ey are able to pick up the controller and make it look easy,” Mr Anderson said.
“It’s the future: we’re getting a lot more of the more senior people retiring and moving out of the
industry and we have the new generation coming through. It suits their learning, and adjusting to their needs is part of what we do as an RTO (registered training organisation).”
Use of the Canary technology is not confi ned to newcomers, however - it is also helping take existing mining industry employees through refresher training.
In addition to generic induction scenarios, Mr Anderson said the Canary system off ered training in areas such as driving, supervisory skills and incident investigation.
Mr Anderson said the technology represented a substantial investment for Krause Health and Safety.
It was a case of moving with the
times and fi nding better ways to engage people, he said.
Th e Canary system allows trainers to project computer animated scenarios for their class – putting students in the shoes of a miner as they apply day-to-day safety procedures in a virtual reality environment.
“It allows students to make mistakes in a training environment and understand the mistakes that would not be acceptable on a mine site when it comes to safety and health,” Mr Anderson said.
Th e response from students so far had been very positive, he said.
“Rather than sitting there and listening to a trainer use a power point (presentation) as a tool, the Canary is a lot more interactive,” Mr Anderson said.
Krause Health and Safety has added Canary software to its training repertoire.
An arresting display
MineARC Systems has launched a new range of refuge chambers
for the hard-rock mining industry – the HRM Series IV.
MineARC general manager Mike Lincoln said Series IV built on
the success of the Series III.
“It’s now even safer, it’s smarter, and it’s easier to maintain and
service. We’ve also included a number of structural modifi cations
that make it easier to position on site,” he said.
Upgrades include a new carbon monoxide/carbon dioxide
scrubbing system and an intelligent voice audio navigation system
to “talk” occupants through operating procedures and alerts.
Th e team in February set up a display at the Gladstone refi nery’s front entrance, using a mannequin and orange scissor lift platform, to draw attention to the issue.
QAL safety advisor Jo Burke said the idea of the display was to show how far a fall-arrest system could deploy and the clearances required.
A worker’s height, the length of the lanyard attached to them and the maximum energy absorber extension must all be taken into account to ensure the fall arrest system is safe given their distance from the ground.
Mrs Burke said there needed to be at least 1m clearance below the person’s feet after deployment to prevent a serious injury.
QAL’s safety team have
rammed home the importance
of clearance calculation when
working with fall-arrest systems.
Refuge revamp
25The Mining Advocate | March 2013 BUILDING NW QUEENSLAND
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Birthday bashes
rock Mount Isa Resource industry representatives,
businesspeople and members of
the public gathered at the Mount
Isa Civic Th eatre to celebrate two
milestones on February 23 - the
90th anniversary of the Isa and
50 years since the mining centre
was declared a city.
Th e Swinging Sixties was the
theme for the function, attended
by 300 people. In a novel twist,
each table was named after a solo
artist or band from the era and
the people from Vivid Realty
claimed the $1000 door prize for
best representing the Monkeys
pop group, right down to the
bananas and nuts on their table.
Mount Isa Mayor Tony
McGrady said ‘60s tribute group
Green Velvet was a huge hit
with the patrons, who sat down
to a fi ve-course meal with the
menu printed on old 70rpm vinyl
records. “It was a great night and
everybody had a wow of a time,”
Cr McGrady said.
Highlight of the night occurred
at the stroke of midnight when
about 250 people walked from
the civic centre to the site of the
old town hall clock, which was
removed 15 years ago.
Long-time Mount Isa
businessman and Rotarian Bob
Keoghan raised $45,000 towards
a new clock and local businesses
off ered their expertise to install
the time piece.
“Guests danced to the Bill
Haley and the Comets classic
Rock Around Th e Clock as the clock
struck midnight before heading
back to the civic theatre to party
on,” Cr McGrady said.
Celebrations will continue
throughout the year including a
Back to Mount Isa function in
July, and the annual show and
Mount Isa Rodeo taking on 90th
anniversary themes.
Cr McGrady said a re-
enactment of the very fi rst Mount
Isa City Council meeting on July
12, 1963 in the CWA Hall would
be another highlight.
“We are asking former
councillors, mayors and their
families to join us at the re-
enactment,” Cr McGrady said.
Providing innovative solutions for the mining industry has seen Mount Isa business ART Airconditioning & Sheetmetal staff numbers go from seven to 16 in the past fi ve years.
Merv Whitney owned and operated Bear Instrumentation for 13 years and shared a commercial land site with ART, which opened in 1998.
Realising there was a synergy
between the two businesses he purchased ART, pooling the expertise of the businesses.
Since then, Mr Whitney has added experienced employees with the skills to work underground and provide a measure and quote for airconditioning systems at the mine face.
He has recently purchased a specialised laser cutting and etching
machine which can perform a host of useful tasks, particularly in the area of safety.
When ART Airconditioning & Sheetmetal staff install electrical switchboards, for example, cable tags etched by the laser ensure people who have reason to work on the switchboard in the future will know clearly what every wire is used for.
ARTful approach to answering mining needs
ART Airconditioning & Sheetmetal employees Drew
Hicks and Faith McClelland with a label fresh off the
laser etching machine
Revellers at the Mount Isa Civic Theatre toast the city’s 90th birthday.
26 March 2013 | The Mining AdvocateIsa Carpentaria projects feature
Will your business succeed or fail?
Every day I come across companies in the mining industry who have high turnover, great margins and are growing at a rapid rate.
Most of these businesses have started from the family home, which then over night have ended up with 50 employees, a fleet of motor vehicles and a workshop to go with it. Sound familiar? What you don’t generally see is the mountain of working capital required to grow so fast (usually financed by an overdraft secured by the family home and in some cases money that should be set aside to pay the businesses ATO obligations). The business will usually have inadequate policies and procedures in place and this leads to instability at the very foundations of the business. It doesn’t matter what industry the business is operating in, the principles remain the same.
Building a business is similar to building a house. Before you even start you need an architect to help you design your plan. Like a house the business needs to be built based on that plan. You don’t build your house without planning out each minute detail, so why should your business be any different? Your business needs to have strong foundations to support your framework and it needs quality materials, a good design and a competent builder if you expect it to withstand both the good and bad times.
One of the most important questions you should consider is “what is your business’s strategic plan?” If you can not
Director Tim Kummerfeld 0408 153 326
www.launchaccounting.com
answer that question, here are a few questions to get you started.
> What does success mean to you?
> Where do you want to be in next 12 months, and then the next 3 years?
> What do you want your business to look like?
> How would/does your business management structure look?
> What is your exit strategy?
These are all questions you should know the answers to or be working towards the answer for. The best safety net for your business is planning to succeed in good times and in bad rather than not planning at all. Businesses that have performed the best in all phases of the mining cycle are the businesses who were prepared. The majority of these businesses had strategic plans in place to diversify in case of a slowdown in the marketplace. They were able to respond quickly, and were able to measure the effect of their decisions within a timely manner.
More often than not the business plan is completed and then sits in the bottom of a filing cabinet somewhere collecting dust. The common perception is that it is only good to get bank finance, after that there is no use for it. Go back to the house analogy and think about it like this. You’ve taken the time to sit down with your architect and draw up plans for the house only to find that the builder has built the house and not looked at or used the plans at all.
Your business plan isn’t just ‘set and forget,’ you should be reviewing it monthly, quarterly or at the very least six monthly with your trusted advisor. We all know business is a constantly changing environment and so should your
Are you prepared for what’s coming next?
Asks Tim Kummerfeld, Director of Launch Accounting.
business plan evolve with it. Referring to and reflecting on your business plan will help you steer your business in the right direction.
This is only part of the service we provide to our clients at Launch Accounting. Part of our ‘client first’ philosophy means that you won’t get billed for giving us a call. You have nothing to lose by giving me a call on 0408 153 326 for a confidential and obligation free discussion.
Disclaimer: Liability limited by a scheme approved under professional standards legislation.
Century mine achieved annual and quarterly production records in 2012 due to excellent plant throughput and an ongoing focus on asset utilisation, owner MMG said.
Th e mine produced 514,707 tonnes of zinc concentrate last year - a 4 per cent increase on 2011.
Th e company said a record 152,684 tonnes of that was produced during the fourth quarter – a 14 per cent increase on the same period in 2011.
MMG Queensland operations manager Mark Adams said that the production records demonstrated the importance of the mine’s ongoing work to debottleneck and improve asset utilisation.
“Th is annual production record, which was achieved despite a major maintenance outage mid-year, demonstrates the value of investing in effi ciency and reliability across the operation,” he said.
“Our investments have included extensive maintenance and improvements to mine infrastructure as well as organisational changes.”
Mr Adams said that MMG
would continue to focus on
extracting maximum value from
Century during 2013.
“Building on recent
operational effi ciency
improvements will ensure the
strength of the operation as we
progress through the fi nal stages
of open-cut zinc production at
Century,” he said.
MMG Century expects to
mine lower grade ore in 2013 as
mining activity starts to progress
through these fi nal stages,
producing 480,000–490,000
tonnes of zinc concentrate.
MMG also expects to produce
38,000-42,000 tonnes of lead
in concentrate in 2013, which
includes the processing of some
tailings from the dam.
Th e company is nearing
completion on a scoping
study to assess utilisation of
Century infrastructure to
process phosphate following the
exhaustion of the open-pit zinc
operation post-2016.
Bumper run for
Century output
Mark AdamsMMG Queensland operations
manager
Th e Lady Loretta team aims to deliver 380,000 tonnes of ore to Xstrata Zinc’s processing facilities in Mount Isa this year, according to site senior executive Chris McCleave.
Th e new underground zinc-lead-silver mine commenced ore production ahead of schedule in September last year and owner Xstrata Zinc recently announced plans for a production rate of 1.6 million tonnes per annum by 2016.
Development work is continuing at the site, 140km north-west of Mount Isa, and Mr McCleave said commercial-scale mining was set to start mid-year, with a workforce of more than 200 people.
Recent work has included installation of a telecommunications tower to provide 3G mobile service across the site.
Th e batch plant is complete and has been handed over to the operational crew. Construction of the paste plant is also complete, with only commissioning works to fi nalise.
Th e Lady Loretta deposit contains an estimated 12.7 million tonne reserve, consisting of 14.2 per cent zinc and 4.8 per cent lead as well as 84g of silver per tonne.
The telecommunications tower at Lady Loretta. Photo: Roslyn Budd
Lady Loretta roll-out
27The Mining Advocate | March 2013 Isa Carpentaria Projects Feature
Isa zinc rises to rival top dogsXstrata Zinc’s Mount Isa operations are the fourth largest in the world for zinc output, vaulting up from 14th place in 2003.
Brook Hunt and Associates estimates for 2012 show their zinc concentrate production rate sat only behind Rampura-Agucha in Chile, Red Dog in Alaska and north-west Queensland’s MMG Century mine, which is winding down in the next few years.
But expansion projects and product from the new Lady Loretta mine should soon lift that production rate well above the 390,407 tonnes achieved last year.
Th e George Fisher mine, which boasts one of the world’s largest zinc reserves, is undergoing a $274 million expansion.
Xstrata Zinc chief operating offi cer Brian Hearne said the stepped-up production rate post-expansion – 4.5 million tonnes of ore per annum - was expected to reduce the life of the underground mine by fi ve years to 21 years.
However, the ore body remains open at depth to the north of the mine – presenting the potential for a further increase in the site’s hefty zinc reserves.
Th e expansion project involves the development of a second hoisting shaft and associated
infrastructure to service the
northern area of the mine using
large diameter raise-boring
technology.
It also includes the installation
of an underground crushing and
ore handling facility and upgrades
to power and air ventilation
services. An existing shaft
servicing the northern end of the
mine will be lined and extended
by 420m to a depth of 1140m.
Mr Hearne said the newly
opened section of the George
Fisher mine began producing ore in October last year. Stripping and lining of shafts had begun and supporting infrastructure, such as the new materials handling system, were due to commence in March, he said.
Meanwhile a $30 million works project is under way at sister operation Handlebar Hill to extend the life of mine by a year to 2014. It adds about one million tonnes of ore to the Handlebar Hill open-cut reserve.
On the horizon is the potential Mount Isa Open Pit project – a
large-scale zinc-lead-copper open pit which could begin some time after 2016 and extend the life of the combined operations on the Mount Isa Mines footprint beyond 2060.
Xstrata Mount Isa Mines is conducting a $47 million prefeasibility study into the potential development.
A MIOP concept study completed in May 2011 indicated the potential to mine and process at least 340 million tonnes of zinc-lead ore and 130 million tonnes of copper ore.
Technical
services manager
Johannes Grobler
at the George
Fisher expansion
project drill rig.
Photo: Roslyn Budd
The George Fisher mine headframe. Photo: Roslyn Budd
28 March 2013 | The Mining Advocate
Tailings at north-west Queensland mining operations may provide a fast-track start to the state’s new uranium industry.
Uranium Implementation Committee chairman Paul Bell, a Central Highlands councillor, said there were a number of cases in the region where uranium was present in the ore mined for core products such as copper and would be available for extraction from tailings dams.
In addition, he said the defunct Mary Kathleen uranium mine held a substantial quantity of uranium in a capped tailings dam which the committee believed would be available for further production.
“Some of the fi rst opportunities for uranium production in Queensland might be from mining companies looking at extraction of uranium out of those tailings,” Cr Bell said. Th is may be a good way to restart the industry at a time
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Tailings a kick-start opportunity
when global uranium prices were
not conducive to developing new
mining operations, he said.
Th e Uranium Implementation
Committee was tasked to establish
a best-practice framework for the
recommencement of uranium
mining in Queensland after the
Government’s announcement last year that it would lift the ban in place since the 1980s.
Th e committee, which visited Mount Isa recently as part of its investigations, expects to hand its fi nal report to the State Government by March 18.
“We’re very confi dent we’ve had a very thorough but targeted consultation process,” Cr Bell said.
“We are fi nalising the report with a number of recommendations to government to make sure we have adequate health and safety guidelines, adequate regulatory arrangements in place environmentally and in regards to mining, and that we can put some structures in place to help communities understand and to engage in discussion about uranium mining.”
Committee investigations included discussions in the Northern Territory and South Australia which indicated the way would be open for new Queensland uranium operations to transport their product through ports in those jurisdictions, which were already licensed to handle the product, Cr Bell said.
However he said this did not exclude the potential for Queensland bulk ports to handle such trade in the future.
Cr Bell said the lifting of the uranium mining ban was creating a new interest in exploration and opportunities in the Carpentaria and Mount Isa mineral province and in Mary Kathleen in particular.
“Certainly one of the things we think the Government may need to look at very quickly is to look at
what it can do with Mary K and whether or not it should possibly be investigated as an opportunity for early mining because of the ease of getting into the old tailings and the presence of rare earths as well,” he said.
Th e Geological Survey of Queensland is undertaking an assessment for the State Government of the potential for rare earths development options at Mary Kathleen, a former mine between Mount Isa and Cloncurry which ceased production of uranium in 1982.
About 7 million tonnes of ore tailings is stored on the Mary Kathleen site, with an estimated content of about 3 per cent total rare earth oxides - making it one of the largest rare earth deposits in Australia.
The former
Mary Kathleen
uranium mine.
Cr Paul BellUranium Implementation
Committee chairman
29The Mining Advocate | March 2013 Isa Carpentaria projects feature
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Great Australian success storyCloncurry’s employment will be boosted by more than 100 the way CopperChem is heading.
Th at 3 per cent or so increase in the town’s employment is forecast with the advent of underground mining at the Mt Collins lease about 60km west of town towards Mount Isa.
It is one of the assets purchased with the takeover of Exco in September last year, when the owners reached an agreement with listed diversifi ed investment company Washington H Soul Pattison after an unsolicited off er.
Others include the Kangaroo Rat and Salebury copper resources and the Wallace South gold deposit, all on Cloncurry’s border.
CopperChem’s current productive resource is the old Great Australia mine just north of Cloncurry.
Th e introduction of a copper concentrator to compliment the heap leach operation and implementation of mine sequencing to keep both facilities
working to capacity are credited with bringing CopperChem into profi tability.
Th ere are a few big ticket items at the top of the company’s “to do” list. Th e fi rst development priority is the Collins lease.
“Th is will be the fi rst underground mine for the company,” chief executive offi cer Brendan James said. “We will start mining in January 2014, with the fi rst ore being delivered by April 2014.”
“We are certainly looking for people in the region and to attract people to the Cloncurry region to fi ll places.
“It is very important to be a part of the region you’re in and that the people in your mine are committed to your region being successful. Th at process has already begun.
“We recently went from contract crushing (at the Great Australia mine) to our own team and have sourced all 12 jobs locally. All replacements from there on in will be made locally.”
Th at’s also the case Mr James
makes for the new underground
operation and it is an off er
extended to the local indigenous
people, the Mitakoodi. “We want
to support and facilitate that local
involvement as much as we can,”
Mr James said
Th e company’s big “sleeper”
project is the Turpentine Deposit,
about 120km north of Cloncurry,
which has an identifi ed copper
resource of fi ve million tonnes
and is being considered as a
stand-alone operation.
CopperChem produces copper
chemicals including copper
sulphate.
Steve Cocks bags
copper sulphate
pentahydrate
crystal at the
CopperChem plant.
Photo: Graham
Wharton
Th ere’s a new knight at Cloncurry’s
round table.
CopperChem chief executive offi cer
Brendan James has slayed the debt
dragon at one of the North West’s older
mines, Great Australia.
Th e beast that grew to a whopping
$32 million in the 2011 fi nancial year
now lies beaten and bleeding at his feet
with a sword at its throat.
Mr James practised his killer blows
with the big miners and learned subtlety
and restraint with the smaller companies.
As a greenhorn engineer he was
with Straits Resources at Girilambone
in central western New South Wales
mining copper working on shift. It was
a good start and something missing in
the education of young engineers today,
he said.
He had various roles with the then
WMC-owned Olympic Dam and
later was global head of Rio Tinto’s
hydrometallurgy technical group.
Th e experience of seeing how small
and large companies were run gave him
perspective, Mr James said.
“Both have attributes,” he said. “You
need to understand what you can do with
signifi cant funding capital and what you
have to do when you don’t (have that).”
From there it was on with a suit and
tie as a partner with fund manager
Perennial in Melbourne, whose assets
included an underperforming operation
in Spain.
Th is was a chance to test his mettle
and he once again donned the refl ective
gear as managing director to take the
uranium project back into profi tability.
Th e last six months as CopperChem
CEO has seen a similar turnaround. Th e
operation recorded a profi t early in 2013
despite a high Australian dollar and a
lacklustre copper price.
Tried and tested team leader
30 March 2013 | The Mining Advocate
Altona Mining aims to lock in fi nancing for its $320 million Roseby copper-gold project by mid-year, allowing construction to kick off before the next wet season.
Th e company is in the market for a partnership deal after Xstrata Copper in January announced it would not exercise its option to purchase 51 per cent of the north-west Queensland project.
Altona managing director Alistair Cowden said the Xstrata decision would not aff ect the timeline for the project and, if anything, had improved its outlook and allowed his company greater fl exibility.
“Xstrata would have their agenda, and only they can speak to that, but it would probably fall around feeding the Ernest Henry mills and the best thing for the (Roseby) project is to have something there to fully exploit all the resources,” he said.
“I think that’s a better deal for everyone - for Queensland, for the company and for the region.”
Roseby, a 65km drive north of Cloncurry on the Burke Developmental Rd, boasts a resource of 1.52 million tonnes of contained copper and just under 400,000oz of gold.
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Altona maintains rosy outlook
Altona has completed a feasibility study focused on mining and processing ore from the 100 million-tonne Little Eva deposit within that project area, with a resource of about 540,000 tonnes of contained copper and 270,000oz of gold.
“Essentially the strategy is to look at this asset in a very simple way – one very large pit with very simple metallurgy, very simple mining and quite large scale,” Mr Cowden said.
“Th at is how we’ll start up and once we get going we’ll look to expand by exploiting the
other resources in the area.” Mr Cowden said Little Eva
would be a seven-million-tonne-a-year operation – producing just under 40,000 tonnes of copper and about 17,000oz of gold annually.
Altona hopes to secure fi nancing certainty by the middle of 2013, allowing a go-ahead decision in the second half of the year and a start to construction before the next wet sets in.
“We were not unaware that these days were coming and we didn’t count at all on Xstrata doing anything – so we’ve got the project essentially development-ready,” Mr Cowden said.
“Th e native title arrangements with the Kalkadoon people are in place, the environmental permitting is completed and mining leases are granted.
“It may sound a little fl ippant – but it really is a case of just add money and we can start building it.”
Mr Cowden said Altona would be encouraging a local workforce as much as possible, although Roseby was a little far from Cloncurry for an easy commute by road and would include an on-site village.
While he expected to see some people based in Cloncurry as a
lifestyle preference, the reality was that much of the 300-strong workforce would be likely to be fl y in-fl y out miners, he said.
While Altona was a strong company with a producing mine in Finland, it required backing from another party to start up Roseby, Mr Cowden said.
He said Altona had received a lot of interest from other potential partners in the project since Xstrata opted out, ranging from smelters in Asia to various
fi nancial groups and other mining companies.
Th e main consideration was to create value for shareholders, with a potential sale of the project among the options, Mr Cowden said.
“Clearly a partnership arrangement where we can continue to build and manage the project is our preference. But if it’s a good deal and it makes money for shareholders, you take it,” he said.
Alistair CowdenAltona managing director
The Mt Roseby area at the centre of Altona’s copper project.
Isa Carpentaria projects feature
31The Mining Advocate | March 2013
CuDeco’s new ball mill
has arrived from China as
construction work powers ahead
at its $250 million Rocklands
group copper project outside
Cloncurry in north-west
Queensland.
Th e mill - produced by Citec
- is 5.8m in diameter, 8.5m long
and will crush 375 tonnes of ore
an hour when installed.
CuDeco logistics manager
John Green said its shell had
been transported in fi ve parts –
two end pieces weighing up to
60 tonnes each and three barrel
pieces weighing 35.5 tonnes
each.
“Th is is the single biggest
component of our processing
plant. It has been custom made
in China – you can’t just buy it
off the shelf,” he said.
Mr Green said the company
was also importing one of
the largest scrubbers seen in
Australia for its Rocklands
processing plant, which is
expected to be commissioned
in early 2014 to kick off
commercial production.
Th e processing plant to be
installed at Rocklands will have a
capacity of three million tonnes
per annum and will produce
copper-gold, cobalt-clean pyrite,
native copper and magnetite
concentrates.
On-site work is already well
under way, with construction
of the 500-tonnes-per-hour
primary and secondary crushing
circuits starting shortly after the
Christmas break.
Mr Green said the relatively
dry wet season in the Cloncurry
area had been a boon for
earthworks and other site
development activities at the
Rocklands mining leases – which
have seen up to 1m of rain over
similar periods in previous years.
Construction activity is
expected to peak in the third
quarter of this year, when Mr
Green said the on-site workforce
would reach about 400.
Meanwhile, he said
construction on a planned multi-
user rail load-out facility for the
region was expected to begin
mid-year.
CuDeco, Xstrata and MMG
have entered a joint venture
to fully fund construction of
the facility about 8km east of
Cloncurry.
Isa Carpentaria projects feature
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Cloncurry could see a new gold operation up and running by the end of the year after Malachite Resources recently entered an agreement with BCD Resources to develop the Lorena deposit.
Th e agreement would see the companies act in joint venture to develop and operate the Lorena gold mine, 15km east of Cloncurry, with BCD to fully fund and develop a fl otation processing facility on site to commence
commercial gold operations by the fourth quarter of 2013. Concentrate would be processed at BCD’s Beaconsfi eld treatment plant in Tasmania to produce gold dore.
Lorena has a total JORC mineral resource of about 56,000oz of gold at a 2g/tonne cut-off grade.
Th e heads of agreement between Malachite and BCD is subject to completion of due diligence by both parties.
The fi nished
ball mill before
shipment to
Australia.
Golden deal for Lorena start-up
32 March 2013 | The Mining AdvocateIsa Carpentaria projects feature
For further information contact Dee Rodwell or Michael Clarke 07 4724 1199 www.maptomine.com.au
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Life has gotten a whole lot better for bulk commodities exporters from the Port of Townsville.
Th e introduction of “rotainers”, rotating half-height containers, is one of the solutions that has addressed the perception of dust escaping to nearby inner-city suburbs.
Townsville Bulk Storage and Handling (TBSH) was the fi rst in North Queensland to use half-height systems in their bulk material handling operations.
“Th e bulk material is transported from mine to vessel in sealed half-height containers,” TBSH joint owner Peta Connelly said.
“Th is minimises product loss through the export chain and cuts out the need for stockpiles.Th e system
reduces costs for both operations.”
Peta and her partner and co-owner Dewayne Cannon founded TBSH four years ago.Th ey now have 13,000sq m under roof at Port of Townsville and another 6000sq m warehouse being developed which allows Type 2 triple road trains direct access from the new Port Access Rd.Th ey also have 30,000sq m hardstand to accommodate containers and break bulk cargo and provide an approved imports and exports depot.
Th e company employs more than 70 staff including their own highly skilled stevedoring crew.
Th ey can immediately provide capacity by calling on their large fl eet of prime movers to haul containers
from the North West Minerals Province for export, and count miners among their long-term clients.
Ms Connelly said the reason for client loyalty was TBSH’s commitment to providing quality and ongoing improvements to services.
“We place a priority on safety management and environmental compliance to stay ahead of expectations,” she said.
“Th is is the sort of reporting that operators at modern ports need to be aware of. We are also very conscious that there is nothing more important for the client than to track the movements of commodities through the export chain and our commitment to accurate reporting is something we are recognised for.”
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ADVERTORIAL
Chinalco Yunnan Copper Resources has appointed Paul Williams as the new managing director, following the retirement of Jason Beckton from that role in late 2012.
Mr Williams has spent the past few years working in Mitsui’s coal division and previously worked for 17 years as a commercial lawyer with Brisbane fi rm Hopgood Ganim and two years as chief executive offi cer of Eastern Corporation (now known as Galilee Energy).
Mr Williams said that he was privileged to be appointed to a senior management role at a company within the Chinalco/Yunnan Copper group.
Chinalco Yunnan Copper Resources’ interests include the Elaine copper-gold project in
north-west Queensland, where
a JORC inferred resource of
27.7 million tonnes containing
147,000 tonnes of copper and
75,000oz of gold was defi ned
in 2012.
Paul WilliamsChinalco Yunnan Copper Resources
managing director
New man at the helm
Bedourie district land releaseTh e State Government is releasing three new areas of land in north-west Queensland for mineral exploration.
Natural Resources and Mines Minister Andrew Cripps said the 2364sq km of land was near Bedourie within Restricted Areas 351, 353 and 354 which currently preclude any exploration activities.
“Recent airborne geophysical and ground gravity survey data collected as part of the Queensland Government’s $20 million Smart Exploration program has indicated the area is potentially rich in a range of minerals and rare earth elements,” he said.
“Th at’s why the Government intends to repeal Restricted Areas 351, 353 and 354 in July 2013 to allow companies to apply for exploration permits for minerals.”
33The Mining Advocate | March 2013 Isa Carpentaria projects feature
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Th e Diamantina Power Station will mark a real change of scenery for energy generation in Mount Isa, according to newly appointed manager Mark Magnowski.
Mr Magnowski left a position with Alinta Energy in Perth to take the helm at the new combined-cycle gas-fi red plant being built near the 50-year-old Mica Creek Power Station.
“I saw it as a great opportunity,” he said of the move.
“It doesn’t happen very often that you have the chance to start a new operation - a greenfi eld operation with the latest technology, very much what you can buy from the top shelf at this time. So it’s exciting times.”
Diamantina Power Station will comprise two 121MW power trains - each consisting of two 40MW Siemens SGT-800 gas turbines, two NEM heat recovery steam generators and one 40MW SST-400 steam turbine.
It will be fi tted with air inlet chillers which will maximise power output and effi ciency of the turbines regardless of ambient air temperature and humidity.
Mr Magnowski said the plant would have a fully automated operating system and boast very high effi ciency.
As well as off ering the north-
Switch for
Isa’s energy
aspirationswest mining region a reliable
long-term electricity supply, he
said the plant owners believed
that the region had great
potential for expansion.
“We are building an additional
60MW power station next door
called the Leichhardt Power
Station and this is to provide a
back-up power supply as well
as potentially being available to
meet additional demand,” he said.
On-site construction work is
set to peak in March/April, with
a workforce of about 350 people.
Mr Magnowski said in late
February the two gas turbines
were in position for the fi rst
train, the heat recovery steam
generators were being
assembled and the cooling
tower was being built.
Th e team was on track
to have some 80MW of
On-site construction
work is set to peak in
March/April with a
workforce of about 350
power available mid-year
as planned, with the total
242MW due to come online
in mid-2014, he said.
Diamantina Power Station
joint project owners APA
Group and AGL Energy also
plan to bring the open-cycle
Leichhardt Power Station
online in mid-2014.
While the move from
Western Australia was a
large geographical leap, Mr
Magnowski said it was “no
big change” for he and wife
Ada.
Th e pair lived in Mount Isa
from 1989-1997, when their
two children were schooled
in the city.
“We both have very good
memories of the Isa,” he said.
Mr Magnowski worked
in Xstrata Mount Isa Mines
mining and construction
operations and then at Mica
Creek Power Station in that
time.
Mark MagnowskiDiamantina Power Station manager
A recent view of progress at the Diamantina Power Station construction site at Mount Isa. Photo: Roslyn Budd
34 March 2013 | The Mining AdvocateIsa Carpentaria projects
To register your interest in the position please submit a cover letter and resume to: Human Resources ManagerEmail > [email protected]
Mining Manager >UndergroundEmployment Status Full Time Permanent
Location Cloncurry
Date Posted Sunday, 24 February 2013
Reference CCM - 001
> Residential role – home every night
> Family roster 5/2
> Live and work in beautiful Central West Queensland
> Be a part of a small but growing company
As the mining and operations manager you would be responsible for the day to day running of the open pit as well as the site operations, with the view to moving into the underground operations.
Our company is small and is very strong on developing their own leaders within the company.
Responsibilities/Job Description >
> Proven ability to manage the day to day operations of the mine; Fleet management, pit design, drill and blast, engineering, production and contractor management
> Manage Capital, Operational and Management budgets
Transport to Work Residential
Opportunities Gender Diversity Opportunities
Salary Salary and benefits will be discussed with the successful applicant
> Strategy implementation including OH&S, financial regulation, production plans, resources and environmental management
> Provide effective leadership and mentoring for site team leaders
> Manage risk and maintain regulatory compliance
> Foster strong community relation
Minimum Qualifications >
> Tertiary Qualifications - Mine Engineering
> First Class Mine Managers ticket
> A minimum of 10 years experience in open cut and underground position
Desired Qualifications >
> Strong personal accountability and responsibility
> Willing to work with the senior management team to motivate site to meet current production timelines
> Demonstrated people skills
This position is residential only, relocation and housing will be supplied.
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Xtract has assigned its oil shale rights in a package of Julia Creek tenements to Global Oil Shale Group in a deal including a shares package, royalties and $50,000 initial cash payment
Th e Julia Creek tenements cover an area of 709sq km and contain JORC indicated and inferred resources of 2.18 billion barrels of shale oil at an average grade of 61 litres per tonne at zero moisture (LT0M).
Global Oil Shale Group executive chairman Petri Karjalainen said the company had extensively
evaluated the Julia Creek opportunity and felt confi dent its low emission Kerogex/Kerocon benefi ciation approach, coupled with partnerships with leading providers of proven oil shale processing technologies, provided a strong basis for a commercial development of the Julia Creek deposit, subject to local permitting.
“Furthermore Julia Creek will complement well our other oil shale developments in Jordan, Morocco and Israel with a key aim of using oil shale as a source for long-term environmentally
sustainable production of petroleum and other value-add products,” he said.
Th e Newman Government recently announced it would allow the development of a commercial oil shale industry in Queensland under strict environmental conditions.
Blue Ensign Technologies also holds an oil shale resource near Julia Creek containing total indicated and inferred resources equivalent to 895 million barrels of shale oil producible.
Shale gas explorer Armour Energy plans to start drilling in April at a 7128sq km (1.76 million-acre) exploration tenement granted in the lower Gulf area about 500km noth of Mount Isa late last year.
Th e company has engaged Silver City Drilling to carry out drilling for its 2013 exploration program in North Queensland and the Northern Territory.
Armour said the program would commence in the recently granted ATP 1087 area in North Queensland, targeting the highly prospective shale gas
potential of the Lawn Hill formation.
Armour Energy’s 2013 drilling plans
also include exploration of a newly
identifi ed regionally extensive shale
gas play within the Riversleigh shale
formation.
Th e company said this shale was a
stratigraphic equivalent of the Barney
Creek Shale in the McArthur Basin,
Northern Territory, over which Armour
holds tenements and applications over
125,000sq km.
Shale rights shuffl e
Armour targets NQ
35The Mining Advocate | March 2013 Isa Carpentaria projects
Discovery Parks has expanded its operations into Darwin with the acquisition of Shady Glen Tourist Park, centrally located near the airport.
Th e acquisition of the Darwin site continues the company’s move into off ering a variety of accommodation for tourists, long-term residents and, more recently, workforce villages located in Australia’s resource areas.
Th e new site in Darwin was purchased with an eye to expansion. Th e site boasts 90 four-star studio rooms and cabins with kitchenette facilities, queen-size bed, ensuite bathroom, airconditioning, TV/DVD and wifi access.
Th e cabins are less than three years old and many are new.
Discovery Parks plans to expand the site to accommodate additional ensuite rooms and a dining hall facility in the near future.
Th e Darwin acquisition follows workforce and corporate-oriented sites coming online in Mount Isa, Cloncurry, Blackwater, Biloela and Emerald over the past few years.
Business development manager Robyn Sefton said corporate and workforce villages now represented a substantial part of the business.
“Th e expansion into resource areas has been a successful strategy off ering continuity of occupancy to be able to cater for larger workforce numbers in one place and provide a wider range of accommodation options,” she said.
“But we have retained a mix of clients with tourists and permanent residents still catered for.”
Discovery Parks owns and operates more than 30 parks across Australia.
ADVERTORIAL
AMC Consultants have
completed a scoping
study to develop mine
design for Aditya Birla
Minerals’ Mt Gordon
operations.
Th e scoping study
demonstrated that a four-
million-tonne-per-annum
mechanised sublevel cave
mining operation may
be economically feasible,
Aditya Birla said.
Aditya Birla said
the design extended
over the Mammoth
Surrounds, Mammoth
Deeps, Mammoth
North, Esperanza Pluto,
Esperanza South and
Green Stone deposits.
Underground mining
at the Mt Gordon copper
operation, about 120km
north of Mount Isa, is
currently carried out
using the longhole open
stoping method.
“Th e completion of the
scoping study marks a
signifi cant milestone for
Mt Gordon operations
and Aditya Birla Minerals
… the study indicates
that Mt Gordon might
produce approximately
4mtpa for nine years with
a total life of mine of 16
years,” the company said
in a statement.
Further work is being
carried out including
a strategic review by
ANZ Bank to advise
management on various
strategic options based on
the scoping study results.
A little further northThe recently opened Discovery Parks village in Cloncurry.
Shady Glen Tourist Park in Darwin.
Mt Gordon game plan
36 March 2013 | The Mining AdvocateIsa Carpentaria projects feature
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Rare opportunity for Krucible Krucible Metals is intensifying its focus on the rare earths potential of its north-west Queensland tenements as it moves on from the Korella project.
Th e Townsville-based exploration company recently reached a $12 million agreement to sell 13 proven and potential phosphate tenements, including the Korella project, to fertiliser manufacturer Daton Group Australia.
While focusing its eff orts on that project, managing director Allan Branch said Krucible had also been building its knowledge of rare earths after discovering yttrium and others during exploration in the region.
With the political manipulation involved in the rare earths market and recent prices not so high, Mr Branch said he had held some concerns about focusing company resources in that area and recently decided to “really dig in” and analyse the industry.
“I came out of that analysis really excited because I’m convinced now that it’s really worthwhile being in,” Mr Branch said.
Krucible received approval in August 2012 for the mining lease for Korella, where it had established an inferred resource of 5 million tonnes at 30.8 per cent phosphate. Th e site also hosts yttrium.
Krucible invests about $1 million a year on its exploration program, which Mr Branch said would now have two key avenues - rare earths plus base and precious metals.
A Krucible tenement called Yttrio and one under application called Coorabulka are prospective for rare earth elements including yttrium, neodymium and strontium.
Yttrium material from the Korella deposit near Incitec Pivot’s Phosphate Hill operation in north-west Queensland.
Mr Branch said many rare earth elements were actually quite prevalent – but it was rare to fi nd commercially exploitable sources.
He said China, which supplied about 95 per cent of the world’s rare earths, had openly wanted to control the market.
But attempts to manipulate price by limiting exports had seen only a short-term spike before prices dropped again, despite the apparent demand.
After researching the area, Mr Branch believes this was because much of the rare earth exported went into consumer products such as cell phones and super magnets for small motors in household appliances.
“Consumer products are a commodity and they have a price ceiling themselves,” he said.
“Such consumer items, if they
become too expensive people just
don’t buy them.”
Th e manufacturers had
initially paid more for rare
earths but then began looking
for alternative suppliers or
alternative technological
solutions that did not require
rare earths.
“Th is has been happening for two or three years now and that’s long enough for some of those companies to fi nd alternatives and therefore not buy the rare
earth,” Mr Branch said.“Th at’s why lack of supply
from China hasn’t driven the price up like they expected. Just very recently China has realised
that and instead of stopping supply now they’re trying to encourage it – so the market should stabilise at what the demand price is.”
Allan BranchKrucible Metals managing director
Allan Branch may be delving into the world of mining now, but his business career began with robots.
A mobile educational robot developed in 1979 – the Tasman Turtle – kicked things off for the technology enthusiast from the Apple Isle.
“I started out as a hi-tech nerd - didn’t even own a suit,” Mr Branch said. “I invented this robot and discovered demand for it around the world.”
Mr Branch went on to run several companies pioneering smart mobile robot technology, including Denning Branch International, and has advised a raft of major manufacturers in the fi eld of robotics development and use.
He said his achievements had included developing the fi rst autonomous navigation system and the fi rst autonomous household robotic vacuum cleaners (Florbot for General Electric in 1989 and D’Entrecasteaux for Moulinex in 1991).
After being immersed in that fi eld for years, he said he had come to the realisation that there was no great
market for robots – as sexy as the technology seemed.“Th at was a huge shock for me because I had lived
and breathed robots for about 18 years,” he said.Mr Branch said he had been able to turn his
company-building expertise to a new career as a corporate manager – work that has taken him all over the world to turn around “stressed”companies.
He said these had included biotechs in Zurich and Pittsburgh, dotcoms in Chennai and San Jose, multimedia in Sydney and Los Angeles, retailing, construction, medical technology, management services and non-profi t organisations.
Mr Branch said he had returned to Tasmania a few years ago for family reasons and worked for a string of companies including Hobart-based mining company Creat Resources Holdings before taking up his role with Krucible Metals in May last year.
In this case the Townsville-based company was not stressed but was at a stage where it needed to commercialise some assets to ensure continued operations, he said.
Allan’s fi rst passion was robots
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