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1The Mining Advocate | May 2014 NEWS 1NEWS

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CONTACTS

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Email: ...............................................................info@miningadvocate.com.au

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Advertising booking deadlineJuly 2014 edition: June 18

COVER IMAGE: Kevin Lee and Wesley McRae prepare to fl y out from

Toowoomba with Easternwell. Photo: Statik Illusions

3 Rights ruling A High Court decision has cleared confusion over the status of

native title on older mining leases.

7 Exploration lifeline A federal incentive to boost greenfi elds exploration has been

embraced by industry bodies, as Australian geoscientists face

record jobless rates.

8 Up and away A detailed look at the fl y in-fl y out phenomenon across the

Queensland resources sector.

12 Golden Gympie How an English prospector’s discovery turned around the

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20 Full steam ahead Th e Port of Townsville reaches a key milestone in 2014, with ongoing improvements cementing a bright

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FEATURES

8 FIFO Special

12 Our Mining Heritage

14 Promoting Indigenous Employment

15 Building Mining Communities

16 Industry Update

18 Between Shifts

20 Port of Townsville feature

24 Toowoomba and Surat Basin Operations

2 May 2014 | The Mining AdvocateNEWS

Coal has the edgeGas exports change Queensland’s power

generation equation, writes Bruce Macdonald

Th e development of three LNG processing plants off Gladstone is forcing up the domestic price of gas and returning coal to favour as a power generating fuel in Queensland, according to a senior resource analyst.

Gavin Wendt, the founding director of MineLife, said thermal coal prices had, in contrast, been at low levels for a number of years and looked like staying that way for some time to come.

He said that Australian gas prices were more related to oil after being turned into liquefi ed natural gas as an export fuel.

Queensland power producer Stanwell Corporation recently opted to close its Swanbank E power plant, 10km south of Ipswich, and sell the gas used to run the 385MW facility on the open market.

Meanwhile two 350MW units not in use at Tarong in southern Queensland will be brought back on line at the coal-fi red plant progressively starting in July.

Stanwell spokesman Jay Merrit said Stanwell’s energy generation division lost $96 million last fi nancial year and the board had

put in place a strategy to return it to profi tability in two years.

Mr Merrit said the Queensland energy sector had in the region of a 60 per cent oversupply, which was a signifi cant factor in Stanwell’s loss.

Th ermal coal is trading at about $US80 a tonne and has progressively declined from a high of $US140 a tonne in January 2011, making it a more cost-eff ective solution than gas - which is expected to rise in price as the three Curtis Island LNG plants come progressively online from this year.

Th e three consortia involved in the projects are tapping large coal seam gas reserves in the Surat and Bowen basins, with all production earmarked for export.

Th e Australian Energy Market Operator (AEMO) has set up a gas trading hub at Wallumbilla, about fi ve hours by road west of Brisbane at the junction of three major gas pipelines.

“Th e gas supply hub is an exchange for the wholesale trading of natural gas. Participants place anonymous off ers (to sell) or bids (to buy) a specifi ed quantity

at a specifi ed price, which are

automatically matched on the

exchange to form transactions,” an

AEMO spokeswoman said.

“Th e new voluntary market

responds to emerging challenges

in the east coast gas markets.

Queensland in particular

is experiencing substantial

developments in LNG exports,

which has increased the need for

more fl exible and transparent

upstream transactions between

parties.”

Th e hub opened for business in

February this year and had traded

222,425 gigajoules up to April 20

for a total cash value of $768,678.

One of the players in gas hub

trading is energy provider Alinta,

which operates the Braemer 1

500MW gas-powered generation

plant comprising three open-cycle

gas turbine units in southern

Queensland.

Alinta gas trading manager

Peter Frost said gas prices were

steadily increasing as a result of

the growing LNG export industry.

“In this environment Alinta

potentially sees value in gas being

sold as a commodity rather than

as a fuel to generate electricity,”

he said.

Mount Isa will continue to receive its energy needs from gas, according to an industry expert.

Soren Consulting director Ross Th ompson told the 2014 Mining the North West Conference that energy provider Ergon and miner Glencore Xstrata had both negotiated long-term gas supply contracts to 2020 and beyond which would hedge against projected rises in the cost of domestic gas supply.

Mr Th ompson’s remarks come in the wake of State power producer Stanwell Corporation’s decision to take its 385-megawatt gas-fi red Swanbank E station off the grid and sell its gas supply.

Mr Th ompson told the conference that the gas market would tighten as LNG trains at Curtis Island off Gladstone came online in the $10 to $12 range per gigajoule, but the market forecast was that prices would drop back to $7 to $8 per gigajoule by 2019.

Mr Th ompson added that there were “many impacts” that could infl uence future prices.

Th ese could include project delays, the cost of resource development, new gas resources and new LNG trains.

Mr Th ompson said while the conversion of coal seam gas to LNG was the main focus of energy providers in Queensland at the moment he didn’t rule out other non-conventional energy sources like shale becoming viable in the future as the need for energy grew.

Ross Thompson speaking at the 2014 Mining the North West Conference.

Gas logical power source for the Isa

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New twist for native title A ruling addresses the issue of rights on older

mine sites, writes Dominique Kimber

A recent High Court decision has cleared confusion over the presence of native title rights on older mining leases.

It was previously thought that when dealing with extinguishment of native title under common law, the rights of traditional land owners would be considered extinguished if the land had been developed.

Th e court ruled in March that non-exclusive native title rights and interests would not be extinguished by the grant of certain mining leases - even in areas which had been developed into a mine, town and associated works.

Senior associate at Herbert Smith Freehills commercial law fi rm, Katherine Perincek, said the decision provided clarity moving forward.

“Until this decision came down, the law was in a state of fl ux about the extent to which native title could be extinguished at common law by operations under certain older mining leases,” she said.

“More recent mining leases that are granted in accordance with the ‘future act procedures’

under the Native Title Act, we know what happens there and generally native title isn’t extinguished. With the older mining leases that were granted some time ago, it wasn’t clear.

“Th ere was a case called De Rose No 2 about pastoral interests, and generally a pastoral lease only partially extinguishes native title.

“But then within the area of the pastoral lease, say for example where the pastoralist built a building or constructed a dam or something like that, the court in this case said native title can’t continue to exist in those areas. So in those areas native title was wholly extinguished. So the same was thought to apply to areas developed under these older style mining leases.

“Th e High Court decision that came down recently said that the De Rose case was wrong on this point and that native title is not extinguished in these areas.”

Ms Perincek said the holder of a validly granted mining lease could continue to exercise rights under that mining lease, which would prevail over native title rights.

However, the new ruling

meant that mining companies

interested in obtaining

tenure over areas of previous

development would have to

consider carefully whether they

needed to go through Native

Title Act processes.

“Native title is a bundle of

rights and some grants, like the

grant of a pastoral lease, can

extinguish some of those rights,”

Ms Perincek said. “But the High

Court’s recent decision indicates

that even in the area of a mine,

some of those rights may not be

extinguished, although the native

title holders may not be able

to exercise those rights while

the mine is operating. But once

the mine closes and the land is

rehabilitated they can exercise

their native rights and use the

land. Mining developments

don’t necessarily extinguish their

rights forever.”

Mining and resources

industries are beginning to

catch up with the needs and

entitlements of traditional

owners according to one cultural

heritage management specialist.

Fay Agee-Wakefi eld has

worked in cultural heritage fi eld

for the last eight years and says

that operations and procedures

relating to native title have come

a long way. “Now, native title

is becoming one of those huge

compliance areas which needs

serious consideration before

commencing a project,” she said.

Th e mines rescue team from Oaky No. 1 coal mine came up trumps at this year’s Queensland Mines Rescue Service Memorial Cup.

Chief assessor Ray Smith said the six teams competing in the 2014 event at BMA Gregory Crinum had been closely matched.

“In the underground exercises, it was probably the closest we’ve seen in scores in many years,” he said.

Th e above-ground scenarios had made the diff erence in sorting out the Top 4, who will go on to compete in the EK Healy Cup competition at Broadmeadow mine on July 31.

Th e teams from Oaky No. 1, Moranbah North, Kestrel and Cook Colliery will take on North Goonyella, Oaky North, Broadmeadow and Crinum at that competition.

Mr Smith said the winning Oaky No. 1 team had also claimed the George Carbine Shield for excellence in fi rst aid at the QMRS Memorial Cup event.

Oaky team triumphs

4 May 2014 | The Mining AdvocateNEWS

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Hundreds of workers for rebrickMajor project to cost $30 million and take 31

days to complete working around the clock

Glencore’s Mount Isa Mines

copper smelter will undergo a

$30 million refurbishment at the

end of May.

Th e project involves 300

contractors, 100 maintenance

staff plus another 30 workers

from the operational team.

Th ey will combine for the

planned 31-day, 24-hours-a-day undertaking. Th e last time the smelter was refurbished was in April 2010.

Glencore’s chief processing offi cer in Mount Isa, Richard Harvey, said the refurbishment was the culmination of an eight-month planning project.

“Th e project started with a dedicated team of fi ve staff , which steadily increased in number as the project drew closer,” Mr Harvey said.

About 40 per cent of all the contractors involved in the massive undertaking are drawn from the Mount Isa area.

Th e key elements of the refurbishment are the rebricking of one of the two rotary holding furnaces, the two anode furnaces plus the primary smelting vessel (ISASMELT).

Copper smelter manager Steve Nilsson said specially made bricks capable of withstanding heat up to 1300 degrees would be stripped out of the vessels and replaced with 1100 tonnes of new bricks.

Th ese will be laid by a team of 130 specialist bricklayers recruited from across Australia.

Th e bricks, manufactured by RHI in Austria, were shipped from Hamburg to Brisbane and trucked to Mount Isa over several weeks ahead of the project, which

was scheduled to start on May 28 when Th e Mining Advocate went to press.

Th e cylindrical primary smelting vessel measures 14.5m

Th e shutdown of Glencore’s Mount Isa Mines copper

smelter at the end of May will mark the creation of a

global record for the refractory brick campaign length

in the ISASMELT process pioneered at the site.

A total of 15 ISASMELT plants operate in 10

countries worldwide. Previous to this shutdown, the

longest campaign achieved by the Mount Isa Mines

smelter was 44 months.

Outside that plant, the longest record standing is

40.8 months at a facility in India. Both records will

fall to the Mount Isa plant at 50 months when the

shutdown begins, according to Glencore’s North

Queensland chief processing offi cer, Richard Harvey.

ISASMELT and companion processes, Jameson

Cell fl otation technology and the refi ning method,

ISA PROCESS, were spawned from the diffi culties

associated with mining lead, zinc and copper from the

region.

Th e ISASMELT process evolved out of a

collaboration between Mount Isa Mines staff and

the CSIRO in the late 1970s and has been subject

to ongoing innovation since to become an industry

benchmark.

From a small pilot plant that moved fi ve tonnes

per hour in 1983, the process is now responsible for

production of 160 tonnes per hour.

in height, with a diameter of

4.8m, and the holding furnace is

15.5m long and 4.6m in diameter.

In addition to the primary

work, sections of ducting to the

nearby acid plant - which uses

the by-product from the smelting

process - will be refurbished and

boiler tubes above the furnace

used to create steam for power

generation will be replaced.

Mr Nilsson said safety

was paramount during the

refurbishment project. Bricks

would be removed from both

vessels remotely using a specially

designed machine and new bricks

would be moved into the vessels

via a conveyor belt, he said.

Richard HarveyGlencore Mount Isa

chief processing offi cer

Smelter shutdown record in sight

Copper anodes

ready to be

transported

from the

copper smelter

at Glencore’s

Mount Isa Mine.

Photo: Rob

Parsons

5The Mining Advocate | May 2014 NEWS

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Program tackles use of illicit drugs

A Queensland-based company is developing a program for the Institute of Quarrying Australia (IQA) to tackle the issues surrounding illicit drugs in the industry.

BXF Consulting directors Adam Frost and Clay Butler say there is a strong demand for specialist advice in this area as the drugs market is ever-changing and adapting.

“We started the business because we saw the need mainly in the resources industry for more information on drugs - the issues and hazards that they present not only the workers, but for the businesses that have to manage those hazards,” Mr Frost said.

“Especially when it comes to the new synthetic drugs, there’s a lot of confusion over the legality and the eff ects of them, so we saw a need to get that information out there.”

Th e IQA’s “Fit for

Duty”program will be delivered in a one-day face-to-face workshop that will see Mr Frost and Mr Butler travelling across Queensland and interstate.

“Th e IQA package will be a day session - so we do workshops on alcohol, traditional drugs and the synthetic drugs out there,” Mr Frost said. “We will look at the adverse eff ects of these drugs and their impact on the individual, the workplace and the greater community. It’s designed to run for a full day and it is very comprehensive.

“It’s for company managers, their site supervisors and their health and safety staff and it allows them to understand the hazards and use current risk management processes to reinvigorate their existing policies and make them more eff ective in light of the new synthetics and the other new drugs on the market.

One-day workshops to help quarrying

industry deal with emerging problem

“Th ere’s a lot of information available on the internet but it often takes that little extra explanation to relate it to that person or organisation’s situation so it makes sense.”

Mr Frost and Mr Butler have a combined 30 years’ of law enforcement experience dealing with alcohol and other drugs.

“Th ere are a lot of policies in place for drug and alcohol testing in corporations but they’re for the traditional drugs, and it’s really important to be aware of the new drugs that are always coming out,” Mr Butler said

“Th e idea behind our program is to improve initial awareness levels, let companies and workers know what’s out there, let them know that their policies are probably a little bit out of date and then, past that, if they need any help in developing policies we can assist further there.”

BXF Consulting is also working on the delivery of an online information portal that will deliver information on drug-related issues via online webinars.

Duty of care rests

with all, says instituteWorkers in the quarrying industry have a moral obligation to look out for their co-workers on site, according to Institute of Quarrying Australia general manager Paul Sutton.

Mr Sutton says that although there are appropriate safety rules and legislation in place, all on-site workers have a duty to do more.

“Th e fact is that, yes, legislation states that there has to be health and safety policies for each state, but it goes beyond that in the sense of taking care of your mates,” Mr Sutton said.

“Th e quarrying industry has come a long way with their health and safety - and they do health and safety, along with so many other good things in their industry, by the smell of an oily rag because they’re operating on very low margins.

“On some sites the quarrying manager is the manager, the supervisor and the health and safety person, so they wear a number of hats. It’s not always possible to get around the site with the health and safety hat on. So it’s necessary for the team to take on some of that moral responsibility.

“If you see something health and safety-related, it’s your moral

duty to report it to someone who

can fi x it. It may not be part of

your job description but as part of

a team it’s a moral obligation to

address it.

“If you suspect that your co-

worker is fatigued, or under the

infl uence of drugs or alcohol,

and those types of things, it’s

important to say something.

Accidents will occur if this moral

obligation is ignored.”

6 May 2014 | The Mining AdvocateNEWS

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Quality Training

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“We’re delivering training in Townsville and Brisbane”

Campaign to protect workers

Rachel and Jason Blee were

booked in with the lawyer

to fi nalise their wills, but a

tragic accident at Jason’s work

meant they never made the

appointment.

Jason was working at

Moranbah North mine in the

Bowen Basin when he lost his

life in an underground accident.

After the accident, Mrs Blee

said she had been left alone to

look after four children and to

battle through paperwork and

legal obstacles that she and her

husband had not been prepared

for.

“In 2007 my husband Jason

was working at Moranbah

North and he was killed in an

underground mining incident

with a shuttle car,” she said.

“We didn’t have a current

will. We were in the process of

doing one but my husband was

changed from one crew to the

next. So we were booked in to

get it done the next week and

the next week never came.”

Mrs Blee, with the help

of Mine Safety Institute of

Australia director Mark Parcell,

started up A Miner’s Legacy

in 2012 to act as a support and

advice network for families who

experienced the loss of a loved

one in the mining industry.

Th e organisation recently

produced an induction book for

mine workers and their families

advising on how to be prepared

in the case of an accident.

“As A Miner’s Legacy has

progressed we have actually

produced an induction brochure.

It outlines what they should have

prepared for themselves to get

themselves through if something

were to happen,” Mrs Blee said.

“Th ings like get a current will,

make sure they have power of

attorney arrangements, adequate

life insurance, income protection,

update super with correct details,

update next of kin forms at work.

“We would like mining

companies to purchase these

brochures for $2 each and hand

them out to their workers. It

will get them to think, this is

what it’s all about. It’s not just

about earning good money

The death of her husband prompted Rachel

Blee to set up an organisation to help others

and having a great job, it’s also

about protecting the ones that

they love. Th e unfortunate part

about it is people don’t like to

talk about incidents that could

or could not happen. Th ey don’t

like to think it will happen on

their watch.

“But in the industry itself since

2000 we’ve lost over 30 guys and

they’re all single fatalities.

“We have to marry up great

job, great work, great life with

the other side of the coin, which

is devastation.”

A Miner’s Legacy founder Rachel Blee and her late husband Jason.

Th e mothballing of Surat Basin coal projects has reshaped plans for an export terminal at Yarwun, Gladstone.

Tenement to Terminal Ltd (3TL) is still moving forward on its plan to build on 134ha of land, according to board chairman Everald Compton.

But the project is no longer planned as a single-use facility.

“We now plan to make the site an agricultural import and export facility as well,” he said.

Mr Compton said the project was not in mothballs, but that 3TL was moving forward with the environmental impact study a little slower than it normally would.

He was confi dent the 25 million tonnes per annum coal export facility would eventually go ahead, but could off er no insight into when global coal prices would rise to about $100 per tonne, a trigger he sees for mothballed coal mining projects to move forward.

In the interim, he is bullish about the potential for the agricultural sector to provide business opportunities.

“We have been getting good feedback (from agricultural groups) in the Darling Downs, Maranoa and Central Queensland,” Mr Compton said.

“Multi-user ports is the way to go, it’s going to happen (as the mining boom slows down).”

Rethink for Yarwun

coal export terminal

Councils share in royaltiesTh e Queensland Government is well advanced in preparing its list of council recipients for grants under the third round of the Royalties for the Regions (R4R) program, which has already distributed $250 million.

Deputy Premier and State Development, Infrastructure and Planning Minister, Jeff Seeney, said the State Government would fi nalise successful R4R Round Th ree applications in coming weeks, with more than 23 council projects expected to share in this round’s allocations.

“To date more than 39 councils across Queensland have received over $250 million in funding under the program, delivering much-needed roads, community infrastructure and fl ood mitigation projects,” Mr Seeney said.

Councils already on the list to benefi t from the fund include Banana Shire Council (fl oodway upgrade); Blackall-Tambo Regional Council; Goondiwindi Regional Council; Boulia Shire Council (new passenger terminal for airport); Livingstone Shire Council and North Burnett Regional Council (sealing of Mount Perry Road).

Earlier this month work offi cially began on one of the larger projects associated with Round Two allocations, the $21 million Toowoomba transport corridor.

7The Mining Advocate | May 2014 NEWS

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Th e Australian Institute of Geoscientists (AIG) has welcomed a scheme to boost mineral exploration in Australia as the profession faces its highest jobless rates since 2009. Th e Exploration Development Incentive is a plan by the Federal Government aimed at assisting junior explorers in raising funds.

AIG vice-president and immediate past-president Kaylene Camuti said the incentive would provide support to the industry, which was experiencing record unemployment rates.

A recent survey by the AIG showed that by the end of last year, 18.7 per cent of Australia’s geoscientists, geologists and

geophysicists were unemployed. Th e fi gures revealed the

highest unemployment and underemployment levels since the surveys began in 2009.

“Th e Exploration Development Incentive was a policy that the government announced at the lead-up to the last federal election and that will be introduced from July 1,” Ms Camuti said. “It’s good news for geoscientists and we’re looking towards it. Hopefully it will encourage investment in junior companies and we’re hoping it will help pump more funds into exploration and get some activity going again.

“Th e downturn had an immediate eff ect on geoscientists.

A federal move to back greenfi elds exploration

kicks off in July, writes Dominique Kimber

Incentive a lifeline for ailing industry

We’re one of the fi rst groups within the industry that starts to feel the cold breeze and it spreads from there.”

Th e Exploration Development Incentive will apply to exploration undertaken from July onwards and will provide investors with a refundable tax off set for greenfi elds mineral exploration costs.

Federal Industry Minister Ian Macfarlane said the scheme would give a signifi cant boost to Australia’s junior explorers.

“Th e future prosperity of the resources sector and the Australian economy is dependent on our ability to make new mineral discoveries, and this scheme will provide an incentive for exploration,” Mr Macfarlane said.

Chief executive offi cer and managing director of Townsville-

based Krucible Metals, Allan Branch. said investment into exploration was key to the future of the resources industry.

“Without investment in exploration, Australia is going to be behind the ball game as we come out of this,” he said.

“Existing mines will run out and without discoveries there will be nothing to fi ll the gaps, so there will be a huge problem and in fi ve or 10 years’ time the eff ects of today will be felt.”

Association of Mining and Exploration Companies (AMEC) chief executive offi cer Simon Bennison said that the group

had been a vocal supporter of the initiative.

“Th e EDI (Exploration Development Incentive) will go a long way towards addressing low new discovery rates, an ongoing reduction in Australian greenfi eld exploration activities and a low number of Initial Public Off erings for mineral projects in Australia,” he said.

“It will help Australia to regain international competitiveness and increase its share of global exploration expenditure. Th is is on the back of the worst periods in many for years for base and precious metal companies.”

AIG vice-president Kaylene Camuti. Photo: Allison Bessell

UNESCO’s World Heritage Committee (WHC) draft decision on management of the Great Barrier Reef has expressed concern about the proposed relocation of dredge spoil associated with the Abbot Point coal-loading terminal expansion.

Th e body has asked the Federal Government to provide a new report by February 1 next year proving that dumping is the least damaging option and will not damage the reef ’s value to the WHC.

UNESCO has indicated it may declare in reef “in danger” if it is not satisfi ed with the report it is seeking.

However, the WHC also commended progress being made by governments to safely manage the reef, a point Queensland Resources Council chief executive Michael Roche

highlighted recently. Mr Roche also cited a Reef Scientifi c Consensus Statement released last year which indicated that terrestrial run-off was one of the most signifi cant threats facing the Great Barrier Reef.

“Th e consensus statement goes on to say that compared with terrestrial run-off , the impacts of ports and shipping are relatively small,” Mr Roche added.

Th irty businesses have closed in Bowen in the past two years as the nearby Abbot Point expansion became the most recent battleground to halt coal mining, according to Bowen Chamber of Commerce chairman Bruce Hedditch.

What frustrates Mr Hedditch is that the anti coal-mining alliance has used the Great Barrier Reef as an emotive trigger by suggesting that

Abbot Point concerns dredged up again

dredging associated with the

port expansion will somehow

damage the reef.

“It’s (the dredge material)

80 per cent sand and it’s been

dumped 40km from the reef,” he said.

Mr Roche told a recent meeting of the Bowen Basin Mining Club that the anti-coal mining lobby had an ulterior motive for attacking the Abbot Point project – strangling the expansion of coal mining into the Galilee Basin by denying export points to the coal companies.

Mr Roche said this was revealed in 2012 in a leaked document, Stopping the Australian Coal Export Boom.

“A central component of the strategy is litigation, which is now being pursued in the Federal Court over the Abbot Point coal terminal approval,” he said.

Th e QRC recently authorised a campaign of television commercials urging Australians

to become informed about the true environmental health of the Great Barrier Reef.

Federal Environment Minister Greg Hunt said approval for the Abbot Point work had carried stringent conditions and he urged people to visit website www.reeff acts.qld.gov.au - set up by the Queensland Government to highlight the work being done to support the health of the reef.

North Queensland Bulk Ports chief executive offi cer Brad Fish told a gathering of business people in Bowen at a function staged by Whitsunday Marketing and Development recently that he doubted there had ever been a port dredging project in Australia, and possibly even overseas, that had as many stringent conditions associated with it.

Michael RocheQueensland Resources Council

chief executive

Women working in resource industries are being encouraged to stand up and be recognised for their

achievements by nominating themselves for a Crystal Vision Award.

Th e awards, now in their 16th year, acknowledge the work of women in the

construction industry in Queensland and the Northern Territory.

National Association of Women in Construction (NAWIC) Queensland and Northern Territory President Marnie Beckett says that the construction and mining industries are closely aligned.“I have actually worked in

construction and in the mining industries in my time and I think there is often a lot of synergies between the two,” she said.

“Obviously most mines start off with a construction phase.”

Ms Beckett said more women from the construction and mining industries should feel confi dent in nominating themselves for the upcoming awards.

“Th ere are about 12 categories available and details on the categories as well as some of the criteria we’re looking for is listed on our website,” she said.

Th e award presentations will be held at the Brisbane Convention and Exhibition Centre in August. For more information on Crystal Vision Award categories, nominations and tickets visit www.nawic.com.au.

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NAWIC president Marnie Beckett

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New Queensland Government statistics show that the FIFO and DIDO population of the Surat Basin has almost quadrupled since 2011 while the Bowen Basin has seen a drop of about 30 per cent since its peak in 2012.

Th e Surat Basin non–resident population projections report, 2014 to 2020, revealed that by June 2014 an estimated 12,000 FIFO and DIDO employees would work in the region compared to only 3270 counted in June 2011.

Toowoomba and Surat Basin Enterprise chief executive offi cer Shane Charles said the fi gures represented a successful construction phase among projects in the area but that he now expected to see a more permanent workforce employed during operational phases.

“Th e report endorses what we know to be true and that is, we are nearing peak construction in 2014,” he said.

“During construction phase of projects, which have a set life, FIFO is imperative as regional communities cannot cope with the level of demand that the construction phase places on essential services including housing - aff ordable and social housing, sewerage, water, schooling, health, etc.

“FIFO/DIDO is here to stay for some time as at this stage I am not sure the region can cope with the number of employees required in an operational phase.

“However, the community leaders throughout the region have made it very clear that they would prefer and will actively encourage people to relocate to the regions to work in this phase.”

According to the government report, seven gas and coal operations within the Western Downs region contributed to the signifi cant growth in FIFO and DIDO numbers in the Surat Basin.

Numbers in the Western Downs increased by 273 per cent (5480 people) over the two-year period 2011-13.

Th e Bowen Basin non–resident population projections report, 2014 to 2020, showed that by June of this year FIFO and DIDO numbers were expected to sit between 17,720 and 17,830 people.

Th is is about a 30 per cent drop from a peak of 25,000 people in June 2012 and more than a 20 per cent drop from the 22,900 total recorded in 2013.

Th e report said that if potential projects in the Bowen Basin reached fi nal investment decision in the expected timeframe, non-resident population levels could reach another peak of 25,500 people by June 2017.

Proposed resource projects and infrastructure developments in the Bowen Basin include new coal terminals and port expansions at Abbot Point and Arrow Energy’s proposed Bowen Basin gasfi eld development and gas pipeline to Gladstone.

Up and awayFIFO Special

More than a million fl y in- fl y out workers passed

through Queensland’s Mackay and Cairns airports

over the past year.

Operator North Queensland Airports recorded

about 480,000 FIFO passenger movements for

Mackay and 574,000 FIFO passenger movements

for Cairns during the past 12 months.

“NQA actively explores opportunities to share

our aviation and airport expertise with mining

companies and local governments to assist them to

provide the most eff ective and effi cient transport

solutions for resource sector workforce,” NQA chief

executive offi cer Kevin Brown said.Cairns has one of the most extensive FIFO

networks in Australia, with 15 routes operating either dedicated FIFO charters or regular public transport air services that carry a large portion of FIFO personnel. Th e majority of these people are travelling to Queensland destinations and the Northern Territory as well as the international locations of Papua New Guinea and Indonesia.

Th e 2011 Census reported that 858 people in Cairns recorded their place of work as being the North West of Queensland, 360 in Central Queensland, 370 in Northern Territory and 169 in the Kimberley and Pilbara area.

“In 2013 these numbers were boosted further when BMA specifi cally recruited 250 people from the Cairns region to work in their Central Queensland operations under FIFO arrangements and these employees fl y direct from Cairns to Moranbah,” Mr Brown said.

Mr Brown said the Mackay Airport provided an integrated transport hub servicing mining activity in the Bowen and Galilee basins.

“An airport passenger survey conducted in 2012 showed that 41 per cent of passengers were involved in the resources industry and were fl ying in and out of Mackay Airport on a regular basis,” he said.

“Most FIFO personnel fl ying into Mackay were coming from Brisbane on regular public transport air services. Our passenger surveys indicated demand for direct services between Mackay and the Gold Coast, with almost half the FIFO travellers residing in South-East Queensland. Th is was reaffi rmed in a study by renowned demographer Bernard Salt, Analysis of the Gold Coast Long Distance Commuter Workforce.

“Th e study highlighted the signifi cant size of the FIFO resource industry workforce which is based on the Gold Coast and that these people would benefi t from direct services to places such as Mackay, being central to the Bowen and Galilee Basin mining operations.”

Jetstar in June would introduce the fi rst direct service between Mackay and the Gold Coast, Mr Brown said. “We are now in discussion with airlines on direct links with the Sunshine Coast which is another signifi cant FIFO home base.”

Popular departure points

Project workforces entering decline Fly in-fl y out (FIFO) and drive in-drive out (DIDO) workforces across the Bowen, Surat and Galilee basins and the Gladstone region are set to decline as major projects transition from construction to operational phase.

According to the Queensland Government Statistician’s Offi ce (QGSO) non-resident population projections, 2014 to 2020, the current estimated FIFO and DIDO population in the Bowen Basin is between 17,720 and 17,830 people. Th is is a drop from the 2012 high of 25,000.

Without any investment in new projects this fi gure is predicted to fall to 14,240 by 2020.

A QGSO spokeswoman said if projects in the pipeline were to proceed there could be another increase in FIFO and DIDO numbers from 2017, which would match the 2012 peak.

“Th e non-resident population projections refl ect that the contribution of the resources sector to the Queensland economy is transitioning from investment and construction to operation and export,” she said.

“Non-resident populations in all the resources regions would decline after 2014

(except the Galilee as there is virtually no non-residential population currently), unless projects in the approvals process go ahead.”

Th e Surat Basin FIFO and DIDO numbers have remained steady since June 2013 at more than 12,000. Totals are expected to drop off later this year as the large construction workforces of the three CSG-LNG projects taper off .

By June 2017 the non-resident population is predicted to sit between 6080 and 8050 people, with further declines through to 2020.

Th e Galilee Basin has typically recorded low levels of FIFO and DIDO workers, with levels of around 100 people.

However, if major projects in the approval process get the go-ahead, this number could grow to between 2120 and 3830 by June 2017.

Th e Gladstone region FIFO and DIDO statistics peaked in June 2013 at 4890 and this number is expected to remain steady until the construction completion of the LNG projects and Wiggins Island Coal Export Terminal.

According to the 2014 non-resident population projections report, that number will be under 1000 by 2020.

Th e QGSO reports did not cover the North West but the 2011 census showed there were about 4000 FIFO and DIDO workers in that region.

It’s estimated the FIFO and DIDO population in the Bowen Basin is around 17,750.

Photo: Courtesy NQA

9The Mining Advocate | May 2014 FIFO Special

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About 140 Downer employees being fl own and bussed to Goonyellla Riverside mine in Central Queensland have been told to fi nd their own way to site from late June.

Th e company announced that as of June, fl ights from Townsville would no longer run for workers and a raft of bus services would also be dropped.

Queensland CFMEU district president Stephen Smyth said the decision by Downer to cancel fl ights for workers should act as a warning to other FIFO contractors.

“According to a call that I got from one of the workers, something like 60 per cent of the workforce that are with Downer are in Townsville or Cairns - so it will obviously have a dramatic eff ect,” he said.

“We (CFMEU) keep telling workers, get things written into the agreement. Employers will promise you the world and will say trust us, but if it’s not in writing, you haven’t got it.

“I’d say it was obviously a

cost-cutting measure. Th ey’ll have people waiting in the wings to take the jobs that live closer and are ready to step in when the workers can’t adapt to the new arrangement.”

Most of the workers are on a four-days-on, four-off roster. Mr Smyth said there would be a real issue of fatigue for the workers who would now be forced to drive to the mine.

“For the workers who are in Townsville or Brisbane they have to now drive and fatigue is an issue,” he said.

“I assume the company will have to put the mechanisms in place to address that.”

A Downer spokeswoman said the changes were in response to a depressed coal market.

“Flights from Townsville and bus transport from Cairns, Airlie Beach and Rockhampton will cease eff ective June 29. Employees are required to make their own travel arrangements eff ective June 29 if they live in these regions,” she said.

“Th e Mackay bus service will

remain unchanged at this time.

“Approximately 140 employees

will be impacted. Employees

living in the Central Highlands

and Mackay regions will not be

aff ected.

“It is important that we take

measures to ensure that we

continue to provide a cost-

eff ective and effi cient service to

our clients.”

Th e spokeswoman said any

issues related to fatigue would

be addressed under the current

Goonyella Riverside mine

fatigue management plan.

“Th e current management

plan details employees’

responsibilities and maximum

hours of work, including travel/

breaks etc,”she said.

“Information sessions will

be run to assist employees in

understanding their obligations

under the Coal Mining Act.

Other practices, such as travel

management plans and fatigue

rooms, will also be in place.”

Fatigue fears as air travel canned

Questions are being raised as to whether a year-old report on fl y in-fl y out work practices will ever be addressed.

In February last year the House Standing Committee on Regional Australia tabled its report on the inquiry into the use of FIFO workforces in regional Australia entitled Cancer of the bush or salvation for our cities? But more than 12 months on, little more has happened.

FIFO Families founder and director Nicole Ashby said it seemed like the inquiry had been put on the shelf.

“I think it was a much needed

report, the title was rather controversial and certainly didn’t do any favours for FIFO as a positive work choice but I strongly agreed with many of the recommendations that the inquiry came up with, particularly around employers supporting families and having a best model for employers to follow,” Mrs Ashby said.

“When it was released it was quite exciting and I had a lot of hope that some changes would be implemented, but with the change of government it seems like it has been shelved.”

A spokesman for Deputy Prime Minister Warren Truss refused to comment on the status of the inquiry other than to say that it was under review.

“Th e government is currently considering the recommendations made by the former House of Representatives Standing Committee on Regional Australia into fl y in-fl y out work practices,” he said. “As the report’s 21 recommendations were wide-ranging and require a whole-of-government response, it is appropriate for government to carefully consider these recommendations before responding.”

Inquiry fi ndings in holding pattern

Nicole AshbyFIFO Families director

10 May 2014 | The Mining AdvocateFIFO Special

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Row over blanket FIFO planTh e Bowen Basin could become home to another BHP Billiton Mitsubishi Alliance (BMA) coal mine using a 100 per cent fl y in-fl y out workforce if approvals go ahead.

Th e Red Hill mine lease project, 20km north of Moranbah, would include a new accommodation village to house the proposed 2000 employees during the construction phase and 1500 workers during the operational phase.

Isaac Regional Council Mayor Anne Baker said another 100 per cent FIFO mine in the area would be detrimental to the region.

“What we’re faced with at the moment is the single biggest threat, which is the 100 per cent forced FIFO workforce,” she said.

“One hundred per cent FIFO removes our ability for

population renewal, it has an impact on business and subsequently across the whole region.

“When I say the region I mean Isaac region and I also mean the wider region from Townsville through to Gladstone.”

Two other BMA-operated mines in the area, Daunia and Caval Ridge, are using a wholly FIFO workforce.

“What we know is that the Daunia mine and the Caval Ridge mine have been approved for complete FIFO workforce. People who live in these regions, and I might say that both of those mines are less than 20km away from the community of Moranbah, and the people living in the community do not have the opportunity to work at those mines,” Cr Baker said.

“Look, council is not naïve enough to expect total

Process engineer Michael Osborne experienced culture shock when he travelled to PNG for his fi rst FIFO roster, but now he says it’s the cultural diversity that makes his job so interesting.

Mr Osborne fi rst arrived in PNG in 2011 and has been working in his most recent position at a small oil refi nery near Port Moresby for just under two years.

“PNG is very diff erent to Australia and it took a little bit of getting used to,” Mr Osborne said. “New Guinean people are very very laid back. It’s good but initially I had a little bit of frustration getting used to the way that they work out there. I come from a background in Australia where it’s a ‘get the

job done’ focus and things don’t work quite the same there.

“Th ere are a lot of other fl y in-fl y out workers and they come from all over the place. Th ere’s Filipinos, Americans, Australians and some English guys. I think I’ve met more people from diff erent backgrounds working in PNG than I ever would have in, say, a job in Brisbane. It’s a diverse group but it’s really interesting.”

Mr Osborne said the long commute to work didn’t put him off travelling and that he actually liked to use his nine days off every four weeks to travel more with his partner.

“When I’m at home, my partner and I travel a fair bit. For a while my partner and

I were both doing FIFO and our rosters were aligned, which worked well because it meant on our days off we could go travelling together,” he said.

“If I worked a nine-to-fi ve job I’d get four weeks annual leave a year and so that’s like one or two holidays a year. But with this job I can take a holiday at the end of every rotation.”

Th e small oil refi nery, owned and operated by InterOil, is located just outside of Port Moresby, more than 2000km away from Mr Osborne’s home in Brisbane.

“Sometimes I feel a million miles away from Australia, communication back to Australia is hard sometimes, calls are more expensive, internet doesn’t

Commute a foreign aff air for process engineer

operational numbers to be

sourced locally but we certainly

have a high expectation that

genuine choice be given to everybody and people decide for themselves where they would like to live and not be dictated to through work practice.

“Th is is a national issue and every Australian and local government should be watching it and familiarising themselves with this type of work practice slowly being implemented.”

A BHP Billiton spokeswoman said the FIFO workforce arrangements at the mines would spread job opportunities across the state and open opportunities for diversity in the workplace.

“Over 6500 of our employees reside in Central Queensland communities,”she said.

“We made a careful and considered decision to operate our newest mines, Caval Ridge and Daunia, with remote workforce arrangements for a range of reasons, including

the ability to source a diverse

workforce, to operate the mines

safely and effi ciently,” she said.

“It’s important to remember,

we employ more than 7000

people in the Bowen Basin and

just 900 are FIFO. Th is balances

the benefi ts of employment fairly

across the state.

“Having some FIFO provides

us with access to a broader skills

base and improves our diversity

– 25 per cent of employees at

Daunia are women.

“We had more than 30,000

applicants from Cairns and

Brisbane for around 900 roles

at Caval and Daunia mines.

Th e strong demand from

these regions in Queensland

demonstrates the choices people

are making about how they want

to live and work.”

Anne BakerIsaac Regional Council mayor

Michael Osborne (right) with operators Ernesto Quijano, Tino Perez, Bert

Odeta and Mario Dalisay at his PNG workplace.

work as well. It comes with the

territory of FIFO as it’s often

in remote locations I suppose,”

he said. “I don’t think FIFO is

something I could do forever but

right now I’m enjoying it. I’m

working hard to get stuff done

and I get the big rewards for it.”

11The Mining Advocate | May 2014 FIFO Special

Well crews

have their

own wingsA drilling and well servicing

company in Queensland has its

own fl eet of planes to transport

employees working on remote

rigs.

Easternwell’s private fl eet

fl ys its employees to its 14-plus

rigs operating in the Surat and

Bowen basins.

Easternwell human resources

and recruitment advisor Kate

Hutson says the planes allow

the company to work in remote

locations that would otherwise

be hard to access.

“We have operations in the

Surat Basin, Central Queensland

and the Cooper Basin. We also

fl y to Barrow Island and the

Pilbara,” she said.

“Th e areas that we work in are

quite remote. Th ere aren’t always

commercial fl ights that fl y into

the areas that we work in.

“We have our own hangar at

Toowoomba airport and our own

fl eet of planes.”

Most of the rig workers are

employed on a two-week-on,

two-week-off roster.

Ms Hutson said the longer

periods at home made it easier

for workers adjusting to the

FIFO lifestyle.

“Workers, particularly with our

entry-level employees, can fi nd

that the lifestyle is a bit of an

adjustment,”she said.

“We do consciously recruit

people that have experience

living and working in remote

locations because they tend

to deal with the lifestyle a bit

better. Having said that, once

they have had a few trips out

there they quickly grow to enjoy

the lifestyle and appreciate the

benefi ts.

“While they’re at work, the

accommodation mobile camps

are very comfortable. Th ere are

camp attendants and chefs.

“Th e chefs cook them fi ve-

course meals and look after

them pretty well and the camp

attendants do their washing and

make their beds for them every

day.”

Th e company has roughly 1200

workers spread across Australia

who work on more than 60

diff erent rigs.

Easternwell’s private planes fl y its employees to remote rigs operating throughout the Surat and Bowen basins.

Towns in the Surat Basin are fi nding there is an increased demand for beauty-related services as more female oil and gas workers travel to the region for FIFO work.

Western Downs Regional Council Mayor Ray Brown said the Miles airport currently welcomed about 2000 passengers a week, including an increased number of women.

“We’re averaging around 40 fl ights and charter fl ights per week out of the new Miles airport,” he said.

“A great many women are involved in the gas industry - it’s not just men, so we have to make some changes in our commercial and business sectors to cater for everybody.

“I’m talking about beauticians, coff ee shops and hair salons, female fl y in-fl y out workers want to spend money too.”

Veronica Allwood owns and operates the local Veronica May Beauty Salon.

Ms Allwood said there had been an increased demand for salon services since new mining and resources projects started in the region.

“I started my small business in 2011 in Miles as there were no beauty salons there at the time,” she said.

“Clientele is increasing with more women involved in the mining sector visiting the salon.

“Th e most popular treatments are waxing and relaxation treatments such as eyebrow waxing and, if the time permits, facials, relaxation massage and

Beautiful business spin-off as gas workforce blossoms

Growing activity in the Surat Basin’s gas fi elds has attracted the attention of Qantas and Alliance Aviation Services, who both recently started new fl ights from Brisbane to Miles.

Qantas now operates nine commercial fl ights a week and Alliance signed a contract with Serco Australia for the provision of 24 fl y in-fl y out (FIFO) services per week.

Alliance Aviation managing director Scott McMillan said it was the company’s fi rst contract in the coal seam gas sector.

“We are seeing growth in demand for FIFO services from the oil and gas sector and have strategies in place to increase our exposure to this industry,” he said.

“Diversifi cation of revenue sources is an important diff erentiator of our business. We continue to service the mining sector, targeting major operating mines across Australia.”

Th e introduction of the new fl ights follows a $20 million runway upgrade managed by Origin on behalf of Australia Pacifi c LNG and approval by the Civil Aviation Safety Authority (CASA) last October, allowing larger aircraft to land at Miles.

Western Downs Mayor and GasFields Commissioner Ray Brown said the upgrade would add to the region’s growing air transport infrastructure.

“APLNG’s upgrade of Miles Airport to cater for these commercial fl ights is a great example of how investment by gas companies can leave an infrastructure legacy, potentially attracting other industries to the area and helping to diversify and sustain our regional communities,” he said.

“We now have upgraded airport facilities and commercial fl ights available across our region including Roma, Miles and soon from the new Wellcamp airport near Toowoomba.”

An online induction tool has

been launched to help boost the

emotional resilience of Australia’s

growing population of fl y in-fl y

out workers.

Developed by Mining Family

Matters, the induction tool

features professional advice from

a psychologist and practical tips

for keeping employees happy and

healthy despite regular separation

from loved ones.

Mining Family Matters creator

Alicia Ranford said Making

It Work When You Work

Away off ered advice on issues

including the importance of

setting goals, overcoming mood

swings, avoiding arguments

about how R&R is spent, and

staying connected. “It’s designed

to forewarn employees about

the most common emotional

pressures faced by FIFO workers,

and arm them with simple

strategies to overcome any issues

that do arise,” Ms Ranford said.

Th e launch follows the success

of Mining Family Matters’ suite

of guides including the original

Survival Guide for Mining

Families.

pedicures, especially with the added treatment of shellac application.

“I have also been told on many occasions that the women are very thankful that there is a beauty salon where they can have their beauty needs provided.

“It’s such a compliment when

the women in the mining sector

visit the salon and compliment

your work, knowing they are

from another city, state or

country and the salons they

normally visit are much larger

than mine.”

Veronica Allwood prepares a client for an eyebrow waxing treatment.

New fl ights to Miles

Help for workers

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In 1867, one man’s search for personal fortune made the history books when he discovered 75 ounces of gold in the place that became known as “the town that saved Queensland”.

English prospector James Nash was travelling the bankrupt state of Queensland when he arrived at Gympie, 150km north of central Brisbane, and struck gold – sparking a gold rush.

Queensland had recently become a self-governing colony with its own Governor, nominated Legislative Council and an elected Legislative Assembly.

Gympie historian Beth Wilson says the Queensland government encouraged prospectors to search for gold as an answer to the state’s fi nancial problems.

“When James Nash discovered the gold in Gympie the government had put out a reward for any gold that was found within 90 miles (145 km) of Brisbane, so people were out

looking for gold everywhere,” she said.

“When James Nash reported the fi nd they didn’t pay him the full reward because he was outside of the mileage limits, but he was awarded about £1000. Th is was a lot of money though, really quite a signifi cant amount for the time. Most people were maybe earning one or two pounds a week, if that.

“Th e gold that James Nash found saved the state from bankruptcy, that’s the signifi cance of Gympie - it’s the town that saved Queensland.”

James Nash published the tale of how he came to fi nd gold in the Gympie Times of October 15, 1896.

“About the middle of August, 1867, I left Nanango for Gladstone, I had been working some time in Nanango; there was nothing there worth staying for, so I thought of going to Gladstone, trying all likely places on the way,” he wrote.

“…I did not try it at all, nor any

An international mining history event in Charters Towers promises to explore where old mining and new meet as part of a guided tour of the nearby town of Ravenswood.

Th e tour is part of the 10th International Mining History Congress and 20th Australasian Mining History Association Conference program to be held in July.

Historical consultant Peter Bell will be leading the Ravenswood trip and says it will be of particular interest for international guests.

“Th is conference is a little bit special because we’re combining our own national conference with the international mining history congress. So we’re expecting not just the usual suspects but an infl ux

other place, until travelling down

to what is now Caledonian Hill.

Just at the end of where Mr. T. J.

Ferguson’s garden now is I tried a

dish of dirt, and got a speck in it.

“Th at half day and the next

day I got an ounce and three

pennyweights. On the second day

I broke the hammer-headed pick I

had and could do no more digging,

so I went on to Maryborough,

where I tried two banks and several

stores, but could not sell the gold.

“…I went up the creek, near

where the gas works now is. While

washing the fi rst dirt there, I picked

up gold beside me in small pieces.

I stayed on there…I got 75oz.

in six days, and then started for

Maryborough again.”

As well as receiving £1000 for

his fi nd, Mr Nash was given the

prospector’s reward of an extra

claim and a half. He made £7000

from his alluvial claims and fi nished

up his days taking care of the

Gympie powder magazine.

Gold fi nd saved state

of visitors from overseas,” he said. “Ravenswood is a very interesting place to visit. It was

a very early gold discovery and

it remained a very important

mining centre from the 1860s

until roughly the First World

War.”

But the site posed a problem.

“Th e gold in Ravenswood

was notoriously diffi cult to

work, there were metallurgical

problems; the gold was

chemically bound up in the rock

and it was a nightmare,” Mr Bell

said. “Th ey spent decades trying

to work out what to do with it

before someone fi nally had a

breakthrough and very briefl y

got rich and then the whole

thing collapsed in the First

World War.”

More information on the

upcoming conference can be

found on the website http://

www.ct2014miningcongress.com

Tour will take guests back in time

The Five Ways

Gympie c1870.

Photo: Courtesy of

Gympie Regional

Libraries

James Nash portrait. Photo: Courtesy of Gympie Regional Libraries

Peter BellHistorical consultant

OUR MINING HERITAGE

13The Mining Advocate | May 2014 OUR MINING HERITAGE

JOIN US TODAYCall: 07 3839 8588 or visit www.cfmeu.com.au

CFMEU WHEREVER WORK TAKES YOU WE’RE LOOKING OUT FOR YOU

The CFMEU Mining and Energy Division represents workers in the mining, oil, gas, port and power industries. We are the principal union in the black and brown coal mining industries, representing the vast majority of workers employed.

Why join? Because union members get better pay and conditions than non members. They win that through using their collective bargaining power to get a better deal.

A union’s greatest strength is always its members and there is no better benefit for members than the mutual support offered by fellow members.

Through pooling the resources of members, both financially and industrially, the CFMEU is able to provide a wide range of services to members, including superannuation, financial, insurance and solicitors, as well as a broad range of items through Union Shopper from household goods to overseas holidays.

Queensland District Branch

JOIN NOW!

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More than 30 years ago retired miner Jack Dempsey made an overseas trip from Collinsville for a world mining conference.

It was on this trip Mr Dempsey decided that something needed to be done to preserve Collinsville’s rich mining history.

On his return, Mr Dempsey and others, including Arch Tudehope and James Th omas, from the Collinsville Lodge of Retired Miners began to think about how they could tell Collinsville’s mining stories for years to come.

Mr Dempsey is a long-standing member of the Retired Miners and has been the lodge president for about 10 years.

“When I was in England I saw that they had mining museums that you could go to and look at. Arch (past president Arch Tudehope) and the others would have seen things like it too during their travels overseas and there was nothing like it here, so we decided to do it,” Mr Dempsey said.

In 1997 the Retired Miners Lodge began lobbying the Bowen Shire Council, unions and the State Government for assistance in getting the Coalface Museum up and running. Th e council committed $100,000, the Mineworkers Trust

Displays at the

Collinsville Coalface

Museum.

Photos: Carly Grittner

~ Life at the lodge ~

Jack DempseyCollinsville Lodge of Retired Miners

committed $100,000 and the State Government committed $130,000 to the project.

“It really is one of the most memorable things for me and I think it’s one of the best things that the Retired Miners has done,” Mr Dempsey said.

“It’s a memorial to underground workers of the past and what they had to go through, the strikes, the disasters and what have you.”

Mr Dempsey said another key achievement for the lodge was

the local memorial garden where a ceremony is held each year to commemorate the deaths of local miners.

“Th e lodge also started the Collinsville Miners Memorial Day. We have a very big day each year to commemorate the miners who lost their lives. People attend the memorial at the garden and travel from as far as WA. We also open up the Coalface Museum for free on that day each year,” he said.

14 May 2014 | The Mining AdvocatePROMOTING INDIGENOUS EMPLOYMENT

Arrow Energy is launching its 2014 indigenous business development program with free introductory workshops in Dalby, Toowoomba, Gladstone, Mackay and Brisbane.

Th e May and June workshops are the lead-in to Whanu Binal – Arrow’s program to build indigenous participation in supplying goods and services into the coal seam gas industry.

“Th e CSG supply chain off ers big opportunities but there are also some signifi cant standards that businesses must meet,” Arrow vice-president community and sustainable development Leisa Elder said.

“Whanu Binal is Arrow’s capacity-building program for indigenous businesses wanting to learn how to meet those standards and compete for work across the CSG industry and beyond.

“Last year we had 10 indigenous businesses pre-qualify with Arrow as a direct result of their participation in Whanu Binal, so we know it works.

“Even better, if a business is capable of pre-qualifying in the oil and gas sector, it’s capable of pursuing work in the wider resources sector and amongst major projects as well.”

Th omas Holden, managing director of Townsville-based training and security company Sundown Group, took part in Whanu Binal last year and is already receiving interest from suppliers to the LNG industry.

“I did my introductory workshop in Gladstone and they talked about capacity building and fi tting into the LNG supply

Whanu Binal workshop schedule• May 26 – Brisbane (Arrow Energy offi ce, 8.30am-12pm)

• May 28 – Mackay (Mackay Entertainment and Convention Centre, 12.30pm-4pm)

• June 4 – Gladstone (Oaks Grand Gladstone, 8.30am-12pm)

• June 5 – Brisbane (Arrow Energy offi ce, 8.30am-12pm)

• June 11 – Dalby (Dalby Chamber of Commerce and Industry, 12.30pm-4pm)

• June 12 – Toowoomba (Burke and Wills Hotel, 8.30am-12pm).

To register for the workshops, please email: indigenousrelations@arrowenergy.com.au or visit http://www.arrowenergy.com.au/sustainability/indigenous-relations/whanu-binal- program

A speed-dating-style forum helped resources companies and contractors meet face-to-face with indigenous businesses recently in Brisbane.

Th e Meet the Buyer forum was held under the Memorandum of Understanding (MoU) to increase indigenous participation in the Queensland Resources Sector.

Partnership facilitator Michael Limerick said the forum was about creating networks and opening up opportunities for resources companies and indigenous businesses alike.

“We had about 30 indigenous businesses and about 12 or 13 mining companies and contractors attend the Meet the Buyer forum,” Mr Limerick said.

“We ran it in a speed networking type format. We set the resources companies and contractors with tables around the room with table numbers and then the indigenous businesses got fi ve minutes with each table to pitch their capability and provide a capability statement and hand over their business card. Th ey got to see what opportunities were there and what they could off er in terms of their supply chain.

“We had around 36 rounds over three and a half hours and each time the bell rang they moved tables.

“Th e format was good because it opened up networking and forced the resources companies and contractors and indigenous contractors to talk.

“Hopefully what comes out of it is resource companies fi nd out more about the capability of the indigenous businesses out there and the indigenous businesses got an opportunity to talk directly to the buyers and at the same time fi nd out a little bit more about how the industry works.”

Th ere was also a separate forum for procurement managers to discuss good processes for indigenous businesses opportunities.

“Th e idea of that was to hear about things like where you can source indigenous businesses from, whether it’s through databases like the Black Business Finder that the Industry Capability Network hosts on their network or whether it’s through Supply Nation which is a national body that accredits indigenous business and connects them with the private sector,” Mr Limerick said.

Mr Limerick said the plan was to hold several more Meet the Buyer forums across the state.

chain,” Mr Holden said.“Back in 2009, getting

involved in LNG was a 10-year goal for my company. Whanu Binal moved it forward.

“As a direct result of Whanu

Binal, we’re getting more

interest in my company. We’re

in discussions with major

international companies and we

have the capability to acquire

those works.”

Applications are now open for

businesses to join Whanu Binal

in 2014.

Businesses must be

indigenous-owned (50 per cent

minimum) and priority will be

given to businesses from Arrow’s

areas of operation.

Th e free Whanu Binal

introductory workshops will

give indigenous businesses an

overview of the CSG-LNG

industry and allow them to

assess whether the program can

assist them.

Businesses which progress

from the workshops will

receive a pathway plan for their

development, and then be guided

with assistance that includes

networking and mentoring from

local and regional businesses.

Arrow aims to build indigenous connection

Leisa ElderArrow vice-president community

and sustainable development

Forum talks up businessMeet the Buyer forum participants. Photo: Mel Sutton

The Mining Advocate | May 2014 15

Outback in focus

Th e world’s largest secondary school technology program is under way in Roma, with the global initiative F1 in Schools giving local students the green light to design, build and test model formula one (F1) cars.

F1 in Schools aims to encourage students into science and engineering tertiary studies or trades, and is supported by Santos GLNG in partnership with QMI Solutions and Roma State College.

Santos GLNG Maranoa regional manager Sam Klaas said the program would give students the chance to have fun and develop creativity, innovation and technical skills.

“Santos GLNG has a strong track record of supporting great educational initiatives in the regions, but I think students will particularly enjoy F1 in Schools,” Mr Klaas said.

“Students will use computer programs to design miniature F1 cars before building and eventually racing them competitively. I almost wish I was 15 again so I could give it a go.

“We’re delighted to be helping lift the profi le of science and engineering-related fi elds and encouraging students to consider careers in these areas.”

Roma students in pole position for learning

Pink a perfect way to drive home message

Organising committee member Kate Bradshaw (left) poses with visiting judge Robyn Hills beside the 2013 winning

colour entry by Scott Bridle entitled Jordan’s Woolshed, Brenda Station.

Cannington

Proudly supporting mining communities

Real men really do wear pink, and they’re proving it at MMG’s Queensland operations with high-visibility pink shirts spreading like wildfi re at Century’s Lawn Hill mine and its Karumba Port operation, as well as MMG’s Dugald River development project near Cloncurry.

Th e Real Men Wear Pink (RMWP) campaign, which raises funds for breast cancer research, was launched in May for Century and Dugald River. It is an Australia-wide campaign that uses the colour pink, long associated with breast cancer awareness and fundraising.

Th e local MMG campaign for Real Men Wear Pink is an initiative of the human resources team at Century and Dugald River, with the groundwork being done by Superintendent Rebecca (Bec) Stevenson and her RMWP

committee. Th e campaign has formed part of the Queensland Operations Diversity and Inclusion initiatives.

Ms Stevenson sais there was a good reason to have the campaign in a fl y in-fl y out mining operation.

“On a remote mine site, people can have a feeling of helplessness and isolation because they feel less able to assist loved ones or those in need,” she said.

“Th e message that we are sending is that of support and inclusiveness to our employees and to really demonstrate the commitment that MMG has to our people’s work and life balance.”

To give the campaign a high profi le, she arranged for high-visibility pink shirts to be made available for purchase, with $3 from every shirt sale going to breast cancer research.

Barry Riddiford and Peter Flanagan go pink at Century mine.

Pipeline poised to help save wombats

Project and partners pursue services hub

SUPPORTED BY BHP BILLITON CANNINGTON

Building Mining Communities

Th e Waltzing Matilda Outback

photo competition is one of

BHP Billiton Cannington’s

longest-running community

associations, supported

continuously since 1999.

Th e competition began in

1998 to help publicise the

opening of the Waltzing Matilda

Centre, which was built to

celebrate the writing of the

iconic song by A. B. “Banjo”

Paterson in 1895 in Winton.

Th e following year a

committee was formed

to continue the event and

Cannington mine offi cials were

approached to assist with the

administrative costs.

Fast forward to 2014 and the

event continues to fl ourish with

photographers from across the

country eager to showcase their

work.

Organising committee

treasurer Helen Collins said

Cannington’s continued

involvement had allowed the

competition to grow in prestige.

“Th e theme of the competition

is ‘Image of the Outback’, we

want it to refl ect where we live,”

Ms Collins said.

“It’s about the Outback but we

allow photographers to interpret

it in their own ways.”

Cannington has increased its

sponsorship this year, allowing

the committee to off er $8000

prize money for the competition

– which will be judged in

September.

Due to the popularity of

the event, Ms Collins said

photographers were restricted to

a total of four entries each.

“We only have space to

comfortably hang about 80

photographs in the gallery

space,” she said.

“One year we had 200 entries

and it was a struggle to fi t them

all in.”

First prize-winning works will

be acquired by the Cannington

Collection. All other entries will

be for sale.

Acclaimed Australian

photographer, writer, creative

producer and social documentary

maker John Elliott is this year’s

judge.

Entries close on August 8. For

details: www.matildacentre.com.

au/competitions.

Pipeline from Santos GLNG contractor Saipem will help the Queensland Department of Environment and Heritage Protection establish new colonies of northern hairy-nosed wombats and protect the species from extinction.

Th e pipe would usually be used by Saipem in construction projects such as Santos GLNG’s 420km gas transmission pipeline from the Maranoa to Gladstone, but in this case will be used to create traps and new wombat burrows.

Saipem has donated 20 segments of 8m long,

450mm-diameter pipe to Moggill National Park in

Brisbane.

Santos GLNG principal ecologist Joe Adair said

the donation was made after Santos GLNG heard

the pipe segments would be ideal material for the

wombat rehabilitation program.

“We are really pleased to be helping our furry

friends move to new homes,” he said.

Th e Australia Pacifi c LNG Project has partnered with Santos GLNG, the Queensland Government and Maranoa Regional Council to build a new community services hub in Roma.

Australia Pacifi c LNG

contributed $500,000 for the construction and fi tout of the new facility to house local community support organisations.

Th e facility will enable a range of services to be accessed at one location.

Th ese include family support,

legal aid, counselling, job-

seeking programs, disability

services and emergency relief.

Th e Roma community hub is

scheduled for construction in the

fi rst half of 2014.

16 May 2014 | The Mining AdvocateINDUSTRY UPDATE COAL AND GAS

Boost for Baralaba mine

Cockatoo Coal has started producing

coal from its $313 million mine

expansion at Baralaba in Central

Queensland.

Queensland Deputy Premier Jeff Seeney

said the fi rst part of the Baralaba North

mine expansion would enable Cockatoo

Coal to boost production from about

700,000 tonnes to about one million

tonnes of metallurgical coal a year.

Th is would climb to 3.5 million tonnes

per annum by 2015, he said.

Cockatoo Coal chief executive offi cer

Andrew Lawson said the coal from the

mine’s expansion would be exported

initially to Japan and Korea.

Clearance for Carmichael

Queensland’s Co-ordinator-General

has approved the proposed $16.5 billion

Carmichael coal mine and rail project

north-west of Clermont, subject to

environmental and social conditions.

Deputy Premier Jeff Seeney said the

Galilee Basin project had the potential

to be the largest coal mine in Australia

and one of the largest in the world.

Th e project had the potential to create

up to 2500 construction and 3900

operational jobs, providing a major boost

to the local and state economy, he said.

“Th e project proposes a combination of

open-cut and underground coal mining

and is forecast to produce 60 million

tonnes of thermal coal per annum for

export,” he said.

Mr Seeney said the Co-ordinator-

General had set stringent and

wide-ranging conditions to protect

landholders, local fl ora, groundwater

resources, surface water and air quality

as well as controls on dust and noise.

More grunt at Meandu

Stanwell Corporation has added

six new Hitachi dump trucks to its

Meandu Mine fl eet at a cost of almost

$50 million.

Stanwell chief executive offi cer Richard

Van Breda said the new, much larger

mine trucks would mean Meandu Mine

could provide cheaper coal to Stanwell’s

Tarong and Tarong North power

stations, located adjacent to the mine.

“Our expenditure of more than

$47 million is a strong vote of confi dence

in the future of electricity generation in

the South Burnett,” he said.

“Stanwell is ensuring that it has the

most up-to-date mine machinery to

continue coal mining at Meandu and

power generation at our two power

stations for the long term.”

South Clermont agreement

Australian Pacifi c Coal has entered a

deal with Linchpin Capital Group to

jointly develop the South Clermont

coal exploration tenement in the Bowen

Basin.

Th e intention, once the agreement is

fi nalised, is to initiate an exploration

program to complete proving the

resource and then to bring the deposit

into production.

Australian Pacifi c Coal said initial

indications were that the project had the

potential to be an open-cut operation.

Court clears way for GVK

GVK Hancock has welcomed Land

Court recommendations that the

Environmental Authority and Mining

Lease for the Alpha coal project be

granted subject to conditions.

Company corporate aff airs manager Josh

Euler said objections had been raised in

relation to climate change, economics,

surface water, groundwater, land use,

public interest and greenhouse gas

emissions.

“In its judgment the Land Court

clearly confi rmed that GVK Hancock’s

comprehensive environmental

assessment addressed all the objections

raised with no requirement for further

conditions apart from groundwater,” he

said.

“Th e groundwater conditions do

not raise any new environmental

obligations under the project’s existing

environmental approvals.”

Aquila takeover bid

Aurizon Holdings and Baosteel

Resources International have announced

plans to make a joint bid for Aquila

Resources.

Aquila Resources’ assets include the

Eagle Downs hard coking coal project

- an underground longwall coal mine

under construction in the Bowen Basin,

as well as an interest in the West Pilbara

iron ore project.

Moves to expand Meridian

WestSide Corporation has kicked off the fi rst phase of the planned expansion of the Meridian gas fi elds near Moura with a drilling program.

WestSide managing director Mike Hughes said the Phase 1 well program, involving six new production wells, would incorporate extensive recommended improvements in drilling procedures and practices to maximise drilling and production success.

“Wells will be drilled, lined and completed in a single seam and drilled in areas where there is good knowledge of faults and depth control to enable a high confi dence of drilling in-seam using global best practice steering techniques,” Mr Hughes said.

WestSide has contracted with Silver City Drilling, PathFinder Directional Drilling Services (part of Schlumberger Drilling Company) and Superior Energy Services for the critical drilling activities.

PNG LNG comes online

Th e PNG LNG project has started

producing liquefi ed natural gas ahead

of schedule, with fi rst cargo expected

to be shipped to Asian markets before

mid-year.

Santos managing director David Knox

said that fi rst LNG production from

PNG LNG represented a signifi cant

milestone for the project, following fi rst

condensate production in late March.

“I congratulate our operator

ExxonMobil on the successful delivery

of this major milestone ahead of

schedule. We look forward to the

continued ramp up of LNG production

until the fi rst cargo is ready to be loaded

in the coming weeks,” he said.

Sanctioned in December 2009, the

$US19 billion PNG LNG project

includes the development of gas

production and processing facilities

in the Hela, Southern Highlands and

Western Provinces of Papua New

Guinea, more than 700km of pipelines

and a two-train LNG processing and

loading facility with a capacity of

6.9 million tonnes per annum located

near Port Moresby.

Pipeline pushes through

Santos GLNG has achieved another

milestone, with the fi nal section of its

gas transmission pipeline successfully

pushed through a 4.3km tunnel beneath

the Gladstone Harbour to the LNG

plant on Curtis Island.

Th e 120 pipeline segments, each 36m

long, were welded and pushed gradually

through the tunnel using a large

hydraulic jack.

Th e gas transmission pipeline is being

built by Santos GLNG’s contractor

Saipem Australia, while the tunnel was

constructed by subcontractor Th iess.

Th e 3.45m internal diameter under-sea

tunnel was a feat in itself, running about

8m below the sea bed and constructed

using a 100m long, 277-tonne tunnel

boring machine.

Tank tests under way

Th e fi rst of the six LNG storage tanks

Bechtel is building for the three Curtis

Island liquefi ed natural gas projects at

Gladstone has passed a landmark hydro

test involving 94 million litres of water.

“Th is was the fi rst of a series of tank

hydro tests to take place in 2014 and

another example of how the LNG

construction projects in Gladstone are

achieving many world-fi rst milestones

for Bechtel and the industry in

Australia,” Bechtel Gladstone general

manager Kevin Berg said.

Th e hydro test involved fi lling the tank

with seawater to about the halfway mark

– 19m, with the water allowed to sit for

24 hours to ensure the integrity of the

tank foundations.

Th en members of the tanks team worked

around the clock to scrub the walls with

80,000 litres of fresh water as the tank

was slowly drained. Due to the type

of work being conducted, the access

restrictions, and the high humidity

inside the tank, workers were allowed

to swap their long pants, long sleeves

and steel caps, for shorts, shirts and reef

shoes.

Kentz wins $615m job

An Australian subsidiary of

Kentz Corporation has won the

$615 million contract for electrical and

instrumentation construction packages

for Ichthys LNG project onshore

facilities in Darwin.

Site preparation will commence in

August for the work, expected to last

30 months and provide more than 1200

jobs for construction personnel.

Th e Ichthys LNG project is a joint

venture between INPEX group

companies, major partner TOTAL and

the Australian subsidiaries of Tokyo

Gas, Osaka Gas, Chubu Electric Power

and Toho Gas.

It is expected to produce 8.4 million

tonnes of LNG and 1.6 million tonnes

of LPG per annum, along with about

100,000 barrels of condensate per day

at peak.

Key land release

Th e Queensland Government has

released more than 16,400sq km of land

in six areas of the state’s north-west

and south-west for petroleum and gas

exploration.

Natural Resources and Mines Minister

Andrew Cripps said the land available

through tenders was located south of

Normanton, north of Camooweal in far

north-west Queensland and areas to the

west of Quilpie.

“Queensland’s mining industry will

benefi t from the release of under-

explored land, considered to be

frontier areas with little or no previous

exploration,” he said.

“Th e land we are releasing has potential

for new discoveries of both conventional

and unconventional petroleum resources,

and the area to the west of Quilpie

possibly contains oil resources as well.”

Queensland companies QCoal and SAB Mining Services have achieved the milestone of 1000 days injury free across SAB operations at the Sonoma and Cows sites just outside Collinsville in the Bowen Basin.

Th ey say the achievement is a refl ection of the strong safety ethos which is embedded in the culture of the two Queensland-born-and-bred companies.

QCoal managing director Christopher Wallin said he was proud of the partnership between the companies.

“Achieving 1000 days injury free is a credit to the team at SAB, in particular the company’s director Scott Browne, who leads by example and ensures that safety is at the forefront of operations,” Mr Wallin said.

He said QCoal preferred to partner with likeminded companies and the partnership with SAB refl ected its values of safety and community involvement.

Safe hands

SAB mining director Scott Browne with QCoal general manager – mining operations

Danny McCarthy.

17The Mining Advocate | May 2014 INDUSTRY UPDATE HARD ROCK

Mount Morgan gold deal

Raging Bull Mining has acquired

Norton Gold Fields’ Mount Morgan

gold and copper tailings project, 38km

south-west of Rockhampton.

Th e company has also announced the

execution of a formal agreement with

Carbine Resources to fi nance and

develop the asset.

In addition to the Mount Morgan

tenements and Kundana plant

acquisition, Raging Bull will acquire

Norton’s Many Peaks copper and gold

exploration tenements.

Fe Limited completes sale

Australian mineral resources explorer

Fe Limited has completed the sale of its

subsidiary Gympie Eldorado Mining to

a private Singapore-registered company.

Fe will receive about $2.4 million

from the sale, which includes a

reimbursement of environmental

performance bonds, as well as a royalty

provision.

Walford Creek changes hands

Aeon Metals has announced it has

agreed to acquire Aston Metals – the

largest remaining mining asset of

Nathan Tinkler – from the company’s

receivers.

Th e move will see Aeon Metals gain

a 3600sq km portfolio of exploration

tenements in north-west Queensland

including the Walford Creek base

metals project. Aeon sees Walford Creek

– with a JORC indicated and inferred

resource of 48 million tonnes at 1.42 per

cent copper – as having the potential for

open-pit mine development of world

scale.

Th e company plans to drill an additional

12,000m. Th e aim is to increase the

Walford Creek resource by at least

50 per cent to more than 75 million

tonnes and complete a pre-feasibility

study by December 2015.

Aeon will purchase Aston through a

combination of shares, options and a

$20 million loan. It has completed an

$8 million share placement as part of

the transaction.

Cash for north-west exploration

Chinalco Yunnan Copper Resources

plans a $2 million exploration program

on its Mount Isa region holdings

throughout 2014. Th e activities are

designed to further defi ne copper, gold

and other mineralisation at prospects

such as Millenium and create a pipeline

of drill targets into 2015 and 2016.

Th e project area covers more than

1000sq km, centred in an area 75km

north-east of Mount Isa and 40km

north-west of Cloncurry.

It involves a number of farm-in

agreements including with Mount

Isa Mines, Altona, Elementos and

Goldsearch, together with tenure held

directly by Chinalco Yunnan Copper

Resources.

Green light for Lorena

Malachite Resources and BCD

Resources have received the State

Environmental Authority Permit to

develop Lorena gold project, 15km east

of Cloncurry in north-west Queensland.

Granting of the authority will allow the

major part of construction at Lorena to

begin in earnest.

Malachite said concrete construction

commenced in April for the project,

with a contractor working on slabs and

pedestal arrangements for the ball mill

and fl otation area.

Fabrication of the steel for the fl otation

building was complete and fabrication

of the primary ball mill steel structure

was proceeding, the company said.

Knock-back for Aurukun plans

Th e Queensland Government has

decided not to accept two proposals to

develop the Aurukun bauxite deposit,

saying benefi ts for local communities

were deemed to be insuffi cient and

timeframes for delivery too long.

Australian Indigenous Resources

(AIR) and Glencore International had

submitted proposals to develop the

deposit after Chalco Australia allowed

its $2.5 billion development deal to

lapse in 2010.

Deputy Premier Jeff Seeney said the

government had committed to work

with mining companies and indigenous

communities to ensure benefi ts fl owed

from the development of bauxite

resources on Western Cape York.

“When we came to government the

process of developing these deposits was

going nowhere given Labor’s insistence

that proponents also build a refi nery in

Queensland,” Mr Seeney said.

“Our government shifted the focus away

from a refi nery and instead made the

primary goal to deliver benefi ts to the

people of Aurukun.”

Th e door remained open to proposals

which would develop these resources in

a timely fashion, Mr Seeney said.

Rocklands trial a triumph

CuDeco has reported ore grades 400 per

cent higher than expected in a recent

ore-sorter trial at its Rocklands copper

project, 15km west of Cloncurry.

Th e company recently processed 5000

tonnes of low-grade native copper/

chalcocite ore through the primary

crushing circuit to investigate the

impact on mineralogical characteristics

at various size fractions.

About 1000 tonnes was processed

continuously through the company’s

ore-sorter and produced 26 tonnes of

copper concentrate product.

Th e sorted product averaged 77 per cent

copper, with 974 tonnes of copper-rich

“waste” averaging 0.5 per cent copper,

that was sent back to the stockpiles

for later processing through the main

process plant.

Th e results indicated head-grades were

well above 2.5 per cent - fi ve times more

than expected, for this apparently “low-

grade” ore, the company said.

Th e success of the ore-sorter trials at

Rocklands has encouraged the company

to incorporate a larger unit into the

circuit.

Th e copper processing circuit which

forms part of the Rocklands process

plant is under construction and is due

for completion late 2014.

Th e Queensland resources sector has welcomed an agreement with the State Government that takes a long-term view to develop the state’s minerals and energy wealth to its full potential.

Queensland Resources Council chief executive Michael Roche said ResourcesQ, a 30-year vision for the sector, was an important blueprint for the industry’s future, particularly with its emphasis on global competitiveness.

A statement of intent between the Queensland Government, the Association of Mining and Exploration Companies (AMEC), the Australian Petroleum Production and Exploration Association (APPEA), and the QRC was signed recently.

State Premier Campbell Newman said key elements of the agreement included a new Resources Skills Centre of Excellence and a government “one-stop-shop” for the resource industry.

Th e government has been holding workshops throughout Queensland to gather on-the-ground attitudes from businesses and communities in key resource regions.

Th ey included a forum for more than 60 supply chain industry leaders from across Queensland, as well as recent workshops in Cairns, Mount Isa and Gladstone. More ResourcesQ workshops are planned for Roma on May 28 and Emerald on June 11.

ResourcesQ on a roll

Water has the potential to inhibit the growth of Mount Isa as the supply hub of the rich North West Mineral Province.

Th at is the view of the chairman of the Mount Isa Chamber of Commerce, Travis Crowther, who was born and bred in the inland city.

He was disappointed when he read recently in the media that as many as eight dams could be built in South-East Queensland to fl ood-proof the region.

“Why couldn’t they make it seven and do something out

here?” Mr Crowther said.His comments came as the

city’s water supply at Lake Moondarra sat around a third full and the Mount Isa City Council rolled out Level Two water restrictions.

“Better road and rail links with the Port of Townsville are obviously very important but I see water as something that needs to be addressed quickly,” he said.

Mr Crowther said the chamber, Mount Isa City Council and representatives

from Glencore were in discussions to mount a three-pronged campaign to address the water issue.

An electrician and instrument fi tter by trade, Mr Crowther owns an industrial supply business which services the mining and agricultural sectors in the region.

He said the region had seen its ups and downs over the years as commodity prices fl uctuated but was confi dent in a bright future for the city.

“Th ings can change quite

quickly from my experience and

even though Glencore plans

to close the copper smelter in

Mount Isa (in December 2016)

it may still not happen,” he said.

Mr Crowther pointed to the

imminent start of production

at CuDeco’s copper mine near

Cloncurry and more distant

mining operations at Lady

Loretta and McArthur River as

projects with great potential.

“Th ere still remains plenty of

potential ahead for the region,”

he said.

Joyce McCulloch (Mount Isa Chamber of Commerce), Natural Resources and Mines

Minister Andrew Cripps, John Green (CuDeco) and Deanne Ivers (State Development) at

the Mount Isa ResourcesQ workshop. Photo: Kate Glover

Emerging Leaders

Continuity of water supply key issue for Mount Isa

Travis Crowther

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19The Mining Advocate | May 2014 BETWEEN SHIFTS

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TOWNSVILLE | GLADSTONE | MACKAY | CAIRNS | WEIPA

More that just a stevedore

Stevedoring. Transport. Logistics.

Th e Port of Townsville’s operational fl exibility received a huge boost with completion late last year of the $85 million multi-purpose Berth 10.

Berth 10 has unlocked the tourist potential of Townsville with cruise liners now able to berth and transit through a state-of-the art cruise terminal to the city’s CBD and beyond.

In addition, the Australian Defence Force and visiting overseas naval vessels use the berth for refuelling, providoring and rest and recreation, injecting money into the community.

An extensive hard stand area has been built around the berth for quick loading and unloading of containers and general cargo.

Th e Port of Townsville is Australia’s largest export point for sugar, copper, zinc and lead.

“Th at diversity means our business is more resilient to changes in market forces and can adapt to accommodate diff erent commodities and cargo to remain viable,” the

port’s acting general manager trade and property Claudia Brumme-Smith said.

“Th e arrival of Berth 10 signifi cantly adds to that fl exibility.”

Innovation is a hallmark of the port’s business relationship with its clients.

It has developed a four-tier supply chain solution for bulk mineral exporters which previously faced diffi culties in shipping product, particularly junior miners.

Unique in Queensland, the supply chain options off er fl exibility and reliability.

Th e fi rst option, or “Rotainer” Solution, allows customers to store products in special half-height containers.

Th ese containers are moved to Berths 3, 4 or 10 where they are rotated above the holds of bulk carriers and the contents dumped into the vessel.

Option two, the Container Solution, allows customers to deliver product in bulk bags which

are containerised when shipping is available.

Ms Brumme-Smith said this solution was easy to get started, involved no or low-investment costs, plus off ered berth and transport fl exibility.

Option three, or Th ird Party Access Solution, allows customers to use port facilities at Berths 7, 8, 9 and 11.

Finally there is the Individual Logistic Solution used at Berth 11 by BHP Billiton Cannington mine and Berth 2 by Queensland Nickel, where the companies have dedicated facilities.

Th e port has completed design and has approvals in place for the development of Berth 12 in the outer harbour, which would likely be a privately fi nanced project.

Ms Brumme-Smith said more than $500 million had been invested over the past fi ve years to increase port and transport links to provide capacity and effi ciency to support growth.

Berth completion unlocks potential

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Supply chain supports

freight worth $15 billion

annually

$8 billion international

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value per day)

721 vessels arrive to port

per year

12,000 direct and indirect

jobs

21The Mining Advocate | May 2014 Port of Townsville

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Th e Port of Townsville celebrates 150 years since the beginning of trade this year and, like the city itself, has changed dramatically both in appearance and function during the intervening years.

Inland Australia was being opened up by enterprising pastoralists in the mid-1800s and the northern portion of Queensland needed a close and obstacle-free access point for imports and exports.

John Melton Black, employed by Robert Towns at Woodstock Station, dispatched a small party accompanied by Aboriginal guides to fi nd a suitable location for a port.

Th e party reached the mouth of Ross Creek in April 1864 and soon returned with news that a suitable location had been found.

Cyclone Sigma struck Townsville in 1896 causing extensive damage and prompting the formation of the Townsville Harbour Board.

Th e inner harbour was repaired and expanded but it wasn’t until it was decided to expand into the outer harbour that construction activity stepped up.

Trade fell away dramatically soon after the beginning of World War I in 1914 and didn’t begin to recover until 1921, a period marked by industrial unrest.

Th e vast mineral wealth centred around Mount Isa heralded a new era of development at the port, which became the sole export point for all the mined products via an inland rail link.

Th e eastern jetty was extended by 220m and rail tracks laid along it. A 20-tonne electric crane was also installed to load the products. In 1929 Shell and Vacuum Oil began the fi rst bulk oil trade into the city. Th at sector continued to grow -with Mobil, Caltex, BP, Ampol, Amco and H. C. Sleigh all

using the port to import petroleum products by the 1960s.

Townsville’s strategic location was never more important than during World War II when one million tonnes of war supplies and some 300,000 tonnes of fuel passed through the port by 1943.

Th e war period resulted in major congestion problems and soon after the eastern breakwater was widened and Mount Isa Mines signifi cantly ramped up its production.

A sugar terminal was completed in 1959 and operated until 1963 when a fi re destroyed the facility. It was rebuilt soon after and a second bulk sugar shed was added in 1965.

Th e face of the Port of Townsville changed dramatically with the introduction of the region’s fi rst roll-on/roll-off facilities at Berth 7 in 1969.

Townsville was hit by a second cyclone in 1971 when Althea ravaged the port and city infrastructure.

Th e port’s control tower was destroyed and took more than a year to rebuild.

Th e Mount Is Mines loading facilities were upgraded again in 1972 to accommodate product in containers. Th e Harbour Board installed a container crane in 1974 with a net lifting capacity of 55 tonnes.

Th e 1980s saw further port expansion with 9.1ha adjacent to the eastern breakwater reclaimed for a new container terminal, LPG terminals and an aqua ammonia terminal.

A major upgrade of the bulk sugar terminal also took place along with a new bulk minerals handling facility for Mount Isa Mines.

On January 1, 1987 the Townsville Harbour Board became the Townsville Port Authority and

Th e port that grew and grew

as the 1980s came to a close oil, sugar and minerals accounted for 95 per cent of port throughput, with trade records regularly being broken.

Port facilities continued to expand into the 1990s with Berth 9 lengthened to cater for Panamax Class cargo vessels.

By December 1997 BHP

World Minerals had constructed Berth 11, Townsville’s fi rst outer harbour berth to handle mineral concentrates from its Cannington Mine.

Ross Markham has seen signifi cant changes at the port since he started as a carpenter 22 years ago, not just in the physical appearance but with what happens on a day-to-day basis.

Now the port’s contract supervisor, he has previously held several supervisory roles.

During the course of Mr Markham’s career at the port, he has witnessed the implementation of computerised management systems.

“When I started it was all manual paperwork. Th ese days most of it is done via email,” Mr Markham said.

“Th ere’s no doubting that computers have made forward planning much easier.”

Mr Markham has seen signifi cant changes in the way the port does business, particularly in his area of

The Port of

Townsville circa

1940s.

Photo: courtesy

Port of Townsville

overseeing external work

undertaken by contractors.

Mr Markham praised those

who, over the last 40 years,

have played a role in growing

the port’s infrastructure to its

current state. “Th ey deserve credit for their vision,” he said.

A number of events are being planned to mark the Port of Townsville’s 150-year milestone in 2014.

A community event involving the port, Defence and its customers will be held in October.

Th e port’s acting general manager trade and property, Claudia Brumme-Smith, said a fundraising dinner, industry breakfasts and engagement with local schools was also planned.

Ross is ready to tackle any job

Ross MarkhamPort of Townsville contract

supervisor

22 May 2014 | The Mining AdvocatePort of Townsville

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Demand drives expansionA raft of expansion projects are under way, ready for implementation or in the future planning stage at the Port of Townsville.

As global demand for bulk ore from the North West Mineral Province centred around Mount Isa grows, momentum gathers to fi nd a proponent to develop Berth 12 in the outer harbour.

Th e port is in talks with a number of proponents to develop the bulk loading facility.

In the meantime, work on the $80 million refurbishment of Berth 8 continues and should be completed by July.

Th e project was jointly funded by the Port of Townsville and Glencore ($40 million each). When completed, it will accommodate Panamax-sized vessels up to 220m long for bulk loading of mineral concentrates and fertiliser products.

Th e port’s acting general manager trade and property Claudia Brumme-Smith said once Glencore’s operations were relocated to Berth 8, the nearby Berths 6 and 7 would be decommissioned - creating

additional manoeuvring space for larger Panamax vessels while also increasing loading capacity via the new conveyor belt.

Also planned for the near future is the realigning of Berths 2, 3 and 4 to create one contiguous “super wharf ” capable of berthing four vessels at once.

While Berth 12, which has all the required approvals, will need private sector funding to move ahead, plans are already afoot to open up a State Development Area on the southern side of the Ross River adjacent to the new Port Access Rd and proposed rail corridor which links the Flinders Highway to Mount Isa with the port. An area of 4900ha has been earmarked for the development, of which 2900ha will form buff er areas.

Ms Brumme-Smith said it was vital the port “stayed ahead of the game” by having approvals in place with the various planning authorities well before they were needed.

Th e Port of Townsville has lodged plans for six new outer harbour berths with the required State Government departments.

Port of Townsville

acting general

manager trade

and property

Claudia Brumme-

Smith, with

Queensland

Nickel managing

director

operations

refi nery and port,

Ian Ferguson.

Port of Townsville customer, Queensland Nickel/

Palmer Nickel and Cobalt Refi nery, has operated

its refi nery north of the city for 40 years and has

evolved from an exporter to the port’s biggest

importer over the years.

Th e Yabulu nickel refi nery opened in 1974 to

process ore from the Greenvale nickel mine 225km

north-west of the city but switched to importing

ore in 1986 when the mine resource dwindled.

Th e fi rst nickel ore import arrived aboard the

River Torrens in 1986 and it took weeks to unload

the 30,000-tonne shipment.

Fast forward to 2014, QN has imported up

to 4.1 million tonnes of ore in one year in bulk

carriers which now carry twice the cargo of the

River Torrens and unloading the shipment takes a

mere three days with the aid of modern technology.

QN also imports nickel intermediate feed stocks

and generates up to 6000 container movements

annually.

QN operates Berth 2, dedicated to bulk

unloading nickel ore, and last year reached a

signifi cant milestone of unloading 75 million

tonnes of nickel ore.

Each year about 80 bulk carriers unload ore

using a sophisticated material handling system as

opposed to originally unloading directly onto the

wharf.

QN managing director operations refi nery and

port, Ian Ferguson, said ore was now unloaded via

a combination of a gantry crane and ship cranes

into hoppers and then on to conveyor belts to the

railway loading facility or to a stockpile.

“Th e ore is then railed 28km to the Yabulu

refi nery,” Mr Ferguson said.

“Th ree trains are continually working around the

clock delivering the ore from the port.’’

Mr Ferguson said QN was the port’s largest

importer and its product represented about 80 per

cent of all imports through the Port of Townsville.

Th e changing face of operations

23The Mining Advocate | May 2014 Port of Townsville

Unlike many ports, the Port of Townsville is adjacent to the city’s CBD and is surrounded by well-established homes, so environmental issues like noise and air quality are critical for its immediate neighbours.

A team of fi ve environmental scientists focus their eff orts on four key areas: ambient marine water, marine sediment, air quality and sea-grass monitoring. Th is is in addition to specifi c programs undertaken for development projects.

“Th e port operates in a sensitive environment with unique and highly valued ecosystems,” the port’s acting general manager trade and property Claudia Brumme-Smith said.

“We are dedicated to the sustainable management of any impacts our operations may have on the environment and that our trade growth is done in a sustainable way.”

Ms Brumme-Smith said the port operated under an environmental management system and continued to monitor and improve the system to ensure best practice.

An environmental work group has also been in operation for many years to identify and implement continual improvements to environmental and sustainability programs.

Th ese initiatives include the collection of 20 marine water samples every month during the wet season and every second month during the dry season from the inner and outer harbours, the shipping channel, marine precinct, Ross Creek and Ross River areas.

An average of 250 samples of marine sediment are collected every quarter and tested for heavy

metals. Air quality is monitored by a tapered element oscillating microbalance (TEOM) located at Ross Creek, downwind from the majority of port operations. High volume samplers are also installed at a number of sites to supplement the TEOM monitoring.

In addition, every port customer has its own environmental guidelines in place.

Th e Port of Townsville’s two principal stevedoring operations, Northern Stevedoring Services (NSS) and Townsville Bulk Storage and Handling (TBSH), are investing heavily in keeping pace with the rapid growth of imports and exports through the city.

Between them, the companies are spending more than $30 million in additional storage capacity and two new mobile cranes which will dramatically cut loading and unloading times.

NSS commercial manager Ross Grenside expected work on the company’s $12 million, 8500sq m, fully pressurised storage facility to be completed by June.

Mr Grenside said zinc producer Sun Metals had already struck a deal to use the new facility and other prospective clients were also being spoken to.

TBSH is investing $15 million to develop a 30,000sq m warehousing precinct and is expecting to employ 60 people as it expands its storage capability and fl eet of road trains.

About $10 million is being invested in four warehouses providing 12,000sq m under cover plus a new two-level 300sq m offi ce building along with wash bays and workshops.

Part-owner and chief executive offi cer Peta Connelly said TBSH was investing in the future growth of trade through the Port of Townsville.

Ms Connelly said a new $5 million Liebherr mobile harbour crane with a lifting capacity of 140 tonnes was due to arrive in May.

NSS is also investing in a Liebherr LHM420 mobile harbour crane which will be able to handle bulk cargo, project cargo and containers.

Mr Grenside said the crane, which will arrive in August, would reinforce NSS’s commitment to the region and greatly increase productivity at the port and reduce loading times.

Port of Townsville acting general manager trade and property Claudia Brumme-Smith said the port had a good working relationship with both companies and provided the land for the latest developments.

Stevedoring fi rms invest heavily todeal with growth

Strong focus on environmentEnvironmental

co-ordinator

Patricia Elder

(left) and

environmental

offi cer Casey

Johnson take

water samples

at the port as

part of their

routine duties.

A Townsville-based business specialising in steel fabrication and supplying equipment and services to the mining and mineral processing sectors continues to prosper in the market as many competitors have been forced to downsize as commodity prices contract.The Wulguru Group boasts 150 employees and company director Wayne Landrigan reckons he knows why

the business continues to do well.

“It’s our people - we don’t have much turnover, within the last few years having several employees reaching milestones of 15, 20 as well as 30 years with us,” he said.

“We have experienced people with the right skill sets who are known by our clients through repeat business, that’s where we shine.”

Wulguru Group staff are skilled in a variety of engineering applications including steel, plate work, tanks and pressure pipe work.

Clients include the BHP Billiton Cannington Mine in the North West, Phosphate Hill, Queensland Nickel, Glencore and the Port of Townsville.

Formed in 1977, the company has evolved and diversified with

the changing market conditions, but one common thread has run through the business since its inception – acquiring the very best staff with a shared view of excellence and a capacity to present engineering solutions across a range of engineering, welding and fabrication applications.For more details visit: www.wulgurusteel.com

Wulguru Group employees Barry Weir (26 years’ service), Jeff Dellit (16 years) and Kevin Cox (32 years).

Wulguru Steel - experienced people with the right skill sets

24 May 2014 | The Mining AdvocateToowoomba and Surat Basin Operations

Final testing and commissioning

can begin at Santos GLNG’s

largest gas compression hub after

its control room was connected

to the Brisbane headquarters in

May.

Th is marks the handover of

the hub from the construction

contractor to Santos GLNG and

brings it closer to start-up and

gas production.

Santos vice-president

Queensland Trevor Brown said

new work fronts would open up

at the hub in Fairview fi eld, two

hours’ drive north of Roma, now

the connection was complete.

“Now that our hub control

room is connected to the

Brisbane operations centre

we can monitor the status of

all equipment at this site and

eventually control the hub from

hundreds of kilometres away,”

Mr Brown said.

Th ree hubs under construction

for Santos GLNG include one in

Roma and two in Fairview fi eld.

From 2015, the hubs will

compress and treat gas extracted

from nearby wells so it can be

sent along a 420km pipeline

to Gladstone for conversion to

liquefi ed natural gas for export.

Toowoomba-based drilling and well-servicing company Easternwell has built and commissioned a ground-breaking rig as part of its new $30 million contract with Santos.

Th e well-servicing rig sets new standards in safety, versatility, load rating, portability and doesn’t need a road permit when moved from one well head to another.

Easternwell superintendent of operations Craig Giff en said the servicing rig had been trucked to the Cooper Basin near Moomba in South Australia on its purpose-built trailer and would play a lead role in maintaining Santos’ well infrastructure in the area.

Word has got out about how eff ective the new rig is with a second already under construction for a new client, according to Mr Giff en.

Th e well-servicing rig project took 18 months to complete and involved about 100 skilled workers in various facets of its construction.

Easternwell chief operating offi cer Darren Greer said $4 million was injected into the Toowoomba region’s economy during construction.

Mr Greer said that in addition to providing work-over services on conventional gas wells, the rig had the potential to be used on upcoming shale operations.

“Th is would be a natural and exciting progression for us as we have substantial experience in the conventional and non-conventional (coal seam gas) industry which puts us in a good position to deliver for Santos,” he said.

Mr Giff en said the rig had been designed with a high priority given to safety.

“Th e rig operator is out of the

line of fi re if there is a critical load pressure issue and direct contact with the rig when it is working has been minimised,” he said.

“Th e rig underwent a rigorous commissioning phase before being shipped to the Cooper Basin and didn’t have any reliability issues in the fi rst month of operation, which we are really proud of.”

Easternwell has worked closely

with Santos for 20 years and

the latest $30 million contract

represents a further two-year

association with the energy

provider, which is a partner in

one of three consortia building

gas pipelines from the Surat

Basin CSG fi elds to Curtis

Island off Gladstone where three

LNG plants are being developed.

Easternwell delivers on rig contract

All systems go for GLNG’s Fairview hub

The well-

servicing rig

went through

a rigorous

commissioning

phase before it

was sent to the

Cooper Basin.

25The Mining Advocate | May 2014 Toowoomba and Surat Basin Operations

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Tips from Th iess to win work Th iess has awarded about $750 million in contracts on the Queensland Curtis LNG project in the past year and is working with local businesses to build their capability in the sector.

Project director Joe Dujmovic said the company had channelled 83 per cent of these funds into Queensland and 26.6 per cent into the Surat Basin region.

“Suppliers play an important role in the success of our operations,” Mr Dujmovic said.

“Th at is why we spend a great deal of time working with local business to help them demonstrate that they can meet the fundamental requirements of our operations such as the right health and safety procedures, quality procedures, ability to manage a workforce and provide equitable and diverse working environments.”

Th e company is delivering 17 fi eld compression stations and four central processing plants for the QCLNG project.

Th iess local content advisor for QCLNG Ben Hughes has shared some advice for local businesses wishing to get involved.

Mr Hughes stresses that the gateway everyone needs to go through to be part of the Th iess supply chain is to prequalify.

“Beyond these broad essentials, businesses must also ensure they present themselves in the best possible light,” he said.

“Th ere are fundamentally about six things that local businesses and small businesses need to focus on.”

1. A good online presence

“We hear a lot about businesses having capability statements and that’s important, but I think the more important thing is for that capability statement to be replicated online,” Mr Hughes said.

Most large businesses

centralised their contracts and procurement departments, and those people were likely to make an online search of potential suppliers, he said.

“If they can’t be found or their website looks unprofessional then that’s a signifi cant disadvantage,” Mr Hughes said.“For somebody looking to crack into a supply chain or crack into a market they need to really put their best foot forward in a number of ways - and one of them is to be represented professionally online.”

2. Good customer service

Businesses also should ensure they could react professionally to any enquiries, Mr Hughes said.

“One example, when I was looking to speak to an organisation about a $9 million road package, I was given a number that went through to an offi ce and I presume one of their parents or grandparents was on the phone because she asked if I could call back after Th e Bold and the Beautiful was fi nished,” he said. “Now, obviously I didn’t because we have a lot of people who want to compete for our work

accommodation to use. Th e ability to access a local workforce, the ability to be on call in a short space of time. All of these factors are often considerations within a tender and very often we see local businesses not selling themselves. Th ey just don’t tell us about it, they don’t think it’s important.”

5. Know your place

“Businesses seeking work must make sure they know where they fi t in the supply chain and must diff erentiate between a construction project and an operations and maintenance contract,” Mr Hughes said.

“QGC subcontract to us and we subcontract to others, and they might subcontract down to a fourth level. If you’re a small business with a couple of welders, you’re unlikely to be working for the proponent, but you could be working for one of our subcontractors. Understand where you fi t in the supply chain so you can really target your niche.”

6. Don’t be afraid to put departures in a tender response

“If you are sent a tender package, it will likely include a draft contract,” he said. “Read that contract, read it three or four times, and make sure you understand the impact that it will have on your business.”

When subcontractors ran into trouble with terms and schedule timings, often these issues could have been resolved in the tender process, Mr Hughes said.

“Th e business can submit a ‘departure’ with their tender,” he said. “It’s common practice and no one will think any less of you, in fact it demonstrates you have clearly understood the scope and the risks.”

and if that’s the customer service standard we’re going to receive from that business now we’re just going to be letting ourselves in for a lot of problems in future. ”

3. Good business systems

“Th at doesn’t mean you have to involve yourself in huge great complex platforms, but just to ensure the business systems work -

and that’s everything from emails through to the ability to track lost parts,” Mr Hughes said.

“It’s not about having the latest piece of equipment, it’s just about having your paperwork in order, having a process that demonstrates what is your HR strategy. It’s all about going on a branding journey of building confi dence in the supply chain that you can deliver on a job.”

4. Sell to your advantages

Local businesses should consider what benefi ts they off er over other suppliers in terms of time, cost, quality and safety – then make sure the company they are approaching knows about them.

“When you’re a local business, take advantage of the benefi ts of being local,” Mr Hughes said.

“For example, if we’re looking for haulage operators, we would ideally want to use locals because they understand how the roads react under heavy loads when it’s raining, they know that you can’t go down a road because it might be cut off when the creek’s up. Th ey might even have

Ben HughesThiess local content advisor

QGC compression

facilities in the

Surat Basin.

Photo: Angela

Buddee

May 2014 | The Mining Advocate26 Toowoomba and Surat Basin Operations

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BIRTHDAY est. 199321st

Justin engineers right balanceJustin Clarke’s business philosophy fl ies in the face of conventional wisdom, which in many cases demands long hours and personal sacrifi ces to succeed, often to the detriment of family and friends.

Mr Clarke owns and operates JPC Engineering, located near Toowoomba on the family’s 2ha property.

It is but a few paces to his design studio from the family home, shared by wife of 20 years Sonja and fi ve children, Patrick, Ben, Hugh, James and Emily.

Striking a balance between family and business has been the focus of Justin’s working life which began in Canberra.

He registered JPC Engineering in 1988 and the business has travelled with him through many destinations in Australia and overseas.

JPC delivers a wide range of engineering projects from design concept through to 3D design, 2D drafting of production drawings, engineering certifi cation, fabrication and machining, site installation and commissioning.

It has supported many businesses in the Surat Basin development and in recent years also conducted projects in South

and am currently restoring a

1977 Torana SS.”

And if overseeing the rise to

prominence of his company in

recent years isn’t enough to keep

him busy, he has also found

time to design on and off -road

caravans as a sideline.

With so many projects on the

go and a trip to Brazil in the

pipeline to scope a new job, it’s

hard to believe that Mr Clarke

manages to spend more than

two months every year travelling

with his family around Australia.

“Many people who own

businesses might think I take

too much time off to be with my

family during the school holidays

but I believe it’s important to get

away from work,” he said.

“Of course I take my mobile

phone and laptop (computer)

with me so I’m not out of

contact. I fi nd by stepping back I

think more clearly about the best

way to run the business.

“Th e business is on a continual

path of improvement to fi nd

better solutions to design

challenges while increasing

effi ciency.”

Mr Clarke’s eff orts haven’t

gone unnoticed; he recently won

the Professional and Business

category at the Toowoomba

Chamber of Commerce and

Business Excellence Awards.

Africa, Zimbabwe and Morocco.

In fact one of the attractions

of his business is being able

to off er a total package to his

clients from 3D modelling to

installation in often technically

demanding locations including

the Kalahari Desert in South

Africa and 450m underground at

a mine.

A self-confessed tinkerer with

an enthusiasm for mechanical

restoration, Mr Clarke casually

remarks: “I’ve restored a couple

of old 50s Chevs, a 1962

speedboat, a couple of sailboats

Justin

Clarke at a

phosphate

mine in

Morocco.

Sailing

with family

on Sydney

harbour.

The Mining Advocate | May 2014 27Toowoomba and Surat Basin Operations

Carbon Energy is continuing to push towards the commercialisation of its Underground Coal Gasifi cation (UCG) technology in Queensland.

A government-appointed independent scientifi c panel last year concluded that UCG could have a viable commercial future, but only if companies could demonstrate an ability to decommission and rehabilitate their sites. Carbon Energy chief executive offi cer Morné Engelbrecht says the Queensland-based company is doing exactly that at its Bloodwood Creek site, about 40km west of Dalby.

“We are closing the complete life cycle process for our specifi c UCG technology and being more rigorous than any similar industry at the same stage,” Mr Engelbrecht said.

UCG is an unconventional gas production technology that’s been around for about 80 years.

Mr Engelbrecht said Carbon Energy’s specifi c style of UCG, keyseam technology, had provided the industry with the most signifi cant advances of recent times. “Keyseam is a highly controlled process, that effi ciently converts solid coal into synthetic gas (syngas) deep underground,”

Carbon Energy fi red up

over UCG possibilities Construction of the Toowoomba Second Range Crossing is facing delays as the Federal and State governments try to work out the fi ne print for the allocation of $1.67 billion in funding.

Toowoomba and Surat Basin Enterprise chief executive offi cer Shane Charles said the governments had agreed to an 80/20 per cent funding split but that discussions over the arrangements had caused delays.

Th e original deadline to launch the expressions of interest (EOI) phase of the bypass project lapsed in March.

“Projects Queensland are a little late at the moment in releasing their expressions of interest, they’re behind schedule. Th e reason is, to the best of my knowledge, that the Federal Government and Queensland Government are still fi nalising the terms between them on the funding arrangements,” Mr Charles said.

“Th ere seems to be a real commitment to the range by-pass proceeding, it’s just a case of when an agreement can be reached between the state and the feds.”

Mr Charles said the early project delays would add pressure to the prospective tenderers once the EOI phase began.

“Th e delays clearly bring pressure on the prospective tenderers to try and get their tenders and design work done in a quick fashion,” he said.

“Th e project has the expressions of interest, then the tenders will have to be submitted, then the prospective tenders selected, more design works will have to be completed and negotiations with the local councils will have to take place. So there’s a signifi cant amount of design work and negotiation that needs to be done to get the project under way.

“We’re still hopeful that work will commence in January 2015, but unless the governments can get their arrangements fi nalised quickly, the commencement time frames may need to be postponed.”

Th e road project is seen as a key enabler for economic growth in the Toowoomba and Surat Basin region.

he said. “It unlocks new energy sources by accessing vast coal reserves located hundreds of metres below the earth’s surface, which until now have not been commercially viable to extract through conventional means. It produces a high-quality syngas which can be used for many purposes including power generation, chemical production, fertilisers and production of natural gas.

“Keyseam also minimises

surface disturbance and preserves groundwater quality. Importantly keyseam maximises resource effi ciency, extracting up to 20 times more gas than any other unconventional method in comparison.”

Another Queensland-based UCG pilot operator, Linc Energy, is facing government charges over alleged environmental breaches.

Th e Department of Environment and Heritage Protection charged Linc Energy with causing serious environmental harm. Environment and Heritage Protection Minister Andrew Powell said the charges followed a nine-month investigation in relation to the company’s pilot UCG plant near Chinchilla.

Linc Energy said in a recent statement that it would defend allegations that it had caused unauthorised environmental harm.

Managing director and chief executive offi cer Peter Bond said Linc Energy had had an ongoing dispute with the department for a number of years; “a rift that essentially is based around the DEHP’s lack of knowledge of UCG and their unwillingness to learn about the UCG process’’.

Morné EngelbrechtCarbon Energy CEO

Toowoomba bypass

strikes speed bump

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Under the leadership of new rig shift manager

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Mr Ryan has 30 years’ experience in transport

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Seymour, brings great knowledge and experience

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and supply off ers a 24-hour service to meet client

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“Being able to be in a closer proximity to the rig

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“With this need identifi ed, we decided to open a

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Open for business this yearTh e Wellcamp Business Park will have the “open” sign up in October when stage one of the project is expected to be completed.

A 3km dual-lane road is being pushed into the business park off Toowoomba-Cecil Plains Rd.

Th e fi rst blocks available for purchase or lease will be located in cul-de-sacs off the dual carriageway.

Th e project is being privately funded by Toowoomba-based Wagners Constructions, which will relocate its head offi ce and equipment storage facility to the business park.

It is adjacent to the airport they are building on the same site.

Wagners Construction director Denis Wagner said construction teams were fl at out to meet the October deadline and work would continue on the project post the opening at a rate determined by demand.

“All the water, sewerage, fi bre

optic cables and main trunk roads will be completed as part of stage one,” he said.

A total of 500ha has been set aside for the business park, which will cater to a range of transport, storage, manufacturing and warehousing operations plus corporate offi ces.

Th ere are also plans to locate a fi ve-star hotel near the business park and airport.

Mr Wagner said the family business would locate its composite fi bre technology manufacturing company on the site. It manufactures cross-arms for power poles and rail bridges.

He said the company sold its products mainly into the US but also in Australia.

Mr Wagner said because of “commercial in confi dence” considerations he couldn’t name actual businesses that were keen to move into the business park.

“Th ere has been interest from the aviation maintenance industry and overall there has

probably been more interest than

we had expected,” Mr Wagner

said.

He is excited about the

prospect of a major global food

processor possibly locating its

operation at the business park.

“Toowoomba has the potential

to become the logistics hub for

distribution of perishable food

products into Asia,” he said.

“When people in Brisbane

are eating food grown on the

Darling Downs, so will people

in Asia.”

A Toowoomba Surat Basin

Enterprise economic impact

study on the airport and business

park revealed that it could

John and Denis

Wagner inspect

the business

park site outside

Toowoomba.

Little did the Wagner family know how signifi cant the purchase of the Wellcamp Downs thoroughbred horse stud in 1994 would become as a tipping point to build a commercial airport and business hub 17km

west of Toowoomba.

Th e family owns a construction business and bought the property

because of its potential as a quarry site.

It was that abundance of rock which was needed for the 2.87km runway which made it viable to press on with the project which will see the airport open for business in the last quarter of 2014.

Company director Denis Wagner is proud to declare that the project

is “on time and on budget”.

What that budget is has never been publicly revealed, but chairman of Wagner Constructions, John Wagner, was quoted as saying it was

“well north of $100 million”.

An offi cial opening of the airport is being planned for November.

Work on the runway was to be complete in May, with lighting, the

terminal and other infrastructure to follow.

Denis Wagner said Toowoomba - Australia’s largest inland city after Canberra, with a population of about 165,000 - lacked rail, road and

air connectivity.

“We (the four Wagner brothers) sat down around the board table in

April 2012 and discussed the pros and cons,” he said. “After we made

the decision things happened pretty quickly, we appointed consultants

in June and received approval by December 2012.” Toowoomba’s offi cial airport is limited as to the size of aircraft

which land there because the runway is road-bound.

Mr Wagner said talks were well advanced with major carriers

which had expressed an interest in landing 737s capable of seating

168 passengers and the smaller 717s, which accommodate about 125 passengers, at the new air strip.

generate as many as 3200 jobs

by its fi fth year of operation

and generate revenues of

$528 million per annum within

the same timeframe. Mr Wagner

said he and his brothers were

confi dent of turning a profi t in

three to four years.

Wellcamp Downs a rock-solid investment

An artist’s impression of the Wellcamp Business Park.

May 2014 | The Mining AdvocateREGIONAL ROUND-UP

Mount Isa A heckler’s blast against Mount Isa Mayor Tony McGrady may spark a police presence at future local anti-uranium meetings, Th e North West Star reports.

Cr McGrady was defending planned uranium mining in Queensland after presentations by Dr Bill Williams from the Medical Association for the Prevention of War and Australian Conservation Foundation nuclear-free campaigner Dave Sweeney.

Th e North West Star described Cr McGrady as appearing frustrated and shaken by the angry audience member’s confrontation.

Mount Isa Senior Sergeant Graham Boyd told the paper police were evaluating the need for police attendance to keep the peace at future events.

Similar anti-uranium forums were held in Townsville and Charters Towers recently.

Natural Resources and Mines Minister Andrew Cripps told the Townsville Bulletin that uranium mining had the potential to generate signifi cant economic growth and jobs for Queensland.

Th e government was still on track to have regulatory framework for uranium mining in place by July, he said.

Cairns Th e Cairns Chamber of Commerce has launched a Queensland-fi rst tendering and

procurement taskforce to help far northern businesses win more government contracts.

Th e taskforce has been working with senior offi cers from the State Government’s new

Procurement Transformation Division to develop an action plan.

Cairns Chamber of Commerce chief executive offi cer Deb Hancock said the new taskforce

would be an important conduit for information related to tendering and procurement on

State Government contracts.

Th e government is looking to replicate the Cairns model – which involves business,

industry and government - across other regions, based on its early success, according to

Housing and Public Works Minister Tim Mander.

Townsville Th e Queensland Government was monitoring water released from tailings dams at Th e Palmer Nickel and Cobalt Refi nery after rain from Cyclone Ita.

News outlets reported in April that the Yabulu refi nery’s operations were suspended as the dams reached capacity and that Environment Minister Andrew Powell raised concerns about toxic waste spilling into local waterways.

Queensland Nickel managing director Ian Ferguson stated that the company was meeting licence requirements, according to ABC News, while refi nery owner Clive

Palmer accused the State Government of targeting him and jeopardising the local economy.

During a visit to Townsville, Mr Powell said he was concerned there was no capacity within the dams for further rainfall, the Townsville Bulletin reported.

“Th ey have until next wet season to get that dam lifted,” Mr Powell told the newspaper.Mr Palmer defended his environmental record in a recent Brisbane news

conference where it was announced that his Waratah Coal company had applied for preferred developer status for the $3 billion T2 expansion at Abbot Point, near Bowen.

RavenswoodResolute Mining’s Carpentaria Gold operation recently

hosted a two-day mines rescue challenge, with teams

from Citigold and the Eloise mine competing with

local personnel in a series of skill tests.

“Th e events were bigger and more challenging

than last year and some, such as the search and

rescue, were very physically demanding,”

Carpentaria Gold ERT trainer Justin

Gersbach said.

“Th e fi ve teams that attended last

year showed a marked improvement

and Eloise did a great job in their

fi rst mines rescue challenge –

it shows what an important

learning opportunity these

challenges are to prepare teams

for real-life incidents.”

Carpentaria Gold’s Hard

Rock Rescue team took out the

challenge champion’s title, with

captain Lloyd Mossman named

as best captain. Kyle Urquhart

from the company’s DNA team

was named best medic and the gold miner’s TNT team

was voted the “Esprit de Corps” winner by the other

participants.

Adjudicators from NSW Coal Mine Rescue,

Queensland Ambulance Service, Capital Safety and

Alliance Safety Group oversaw the challenge.

ToowoombaToowoomba Region Mayor Paul Antonio is representing southern Queensland’s interests in a group

formed to give local government a voice in the development of the Melbourne to Brisbane Inland Rail

project.

Th e Melbourne to Brisbane Inland Rail Alliance (MBIRA) includes council representatives from

New South Wales, Victoria and Queensland.

“Th e Federal Government has committed $300 million in the budget for corridor acquisition and

detailed alignment of the Melbourne to Brisbane Inland Rail,” Cr Antonio said.

“Th is group brings together all local governments with an interest in seeing the inland rail line

developed.”

Th e MBIRA chair, Parkes Mayor Ken Keith from New South Wales, told the Parkes Champion-Post

that work on the line could start within three years - and be fi nished in 10 years.

“Planning and consultation has commenced for the project, especially around Toowoomba and into

the Port of Brisbane where over half the cost of the project will occur,” he told the paper.

YeppoonLivingstone Shire Council has paved the way for a new

industry park on Yeppoon to Rockhampton Rd with a

$3.5 million strategic land acquisition.

Mayor Bill Ludwig said the 55ha site would form

an integral component of the council’s economic

development and job creation strategy for the Capricorn

Coast.

“Council is encouraging existing Rockhampton-based

businesses to consider expanding current operations to the Capricorn

Coast to take full advantage of our projected strong growth,” he said.

“Long-term commercial and industrial growth will naturally expand

here on the coast to cater for the rapidly growing residential market and

smart businesses will naturally want to get in on the ground fl oor.”

Meanwhile the State Government has agreed to fund half of the

expected $25-$30 million needed to construct the Northern Strategic Link Road –

Panorama Drive at Yeppoon (Western Bypass Stage 2).

Capricorn Enterprise helped Livingstone Shire Council win the funding under

Royalties for the Regions Round 3, Capricorn Enterprise chief executive offi cer

Mary Carroll said.

GladstoneTh e Australian Manufacturing Workers’ Union has called for an investigation

into welding test procedures for employment on the Curtis Island LNG

projects after Bechtel revealed a high failure rate by Australian welders.

More than 50 per cent of the tradespeople who took the practical test for

specialist weld positions with Bechtel had failed, Th e Observer reported.

Th e company had brought in specialists from the United Kingdom and

Ireland as a result, in what Bechtel general manager Gladstone Kevin Berg

described as an expensive last option, the paper said.

Th e AMWU has called on the Federal Government to tighten the 457 visa

rules to ensure all local employment opportunities are exhausted before

bringing in overseas workers.

In a statement published on its website, the union said it believed some

locals in Gladstone had been ruled out for non-skill reasons including failing to

sweep the fl oor after the test and being a few minutes late for the appointment.

MackayKomatsu Australia has opened a new customer support facility at Bosso Road,

Paget, just 10 months after a ground-breaking ceremony at the launch of the

company’s Mackay Mining Assembly facilities.

Th e new Mackay customer support centre, with a covered area of 1800sq m,

includes a parts warehouse, service workshop, track press, washbay and offi ces.

Equipment being serviced out of this new site includes Komatsu 960E ultra-

class dump trucks, WA900 and WA1200 wheel loaders, and up to PC8000

mining shovels – as well as other Komatsu mining and construction equipment.

“Our new Paget customer support facility is a major investment in our ability to

better service our mining and construction industry customers throughout Central

and North Queensland,” Komatsu Australia Queensland general manager Dean

Gaedtke said.

“As far as we are concerned, it’s a real vote of confi dence in the Central

Queensland mining industry and indicates that we believe there is a long-term,

stable future for the region.”

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