RESOURCE PEOPLE Issue 006 | Autumn 2014

Issue 006 Autumn 2014

HEALTH IN FOCUS

Sodexo CEO talks mine wellbeing initiative FIFO program a soaring success Rio energy chief’s productivity call Farstad navigates gender diversity

PLUS Tony Abbott’s resources vision and Stornoway’s story

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CONTENTS

REGULARS 04 | From the Editor 05 | Chief Executive’s message 56 | Business Partner Directory HUMAN RESOURCES 06 | People development keeps

Jamieson’s wheels turning 08 | Recruiters gear up for oil and gas surge 09 | Skills collaboration key to workforce puzzle 09 | Construction skills demand easing – Pit Crew 10 | Compass sets course for eager jobseekers 11 | 5 Minutes with an AMMA staffer LEADERSHIP 12 | A message from the Prime Minister 13 | Gina Rinehart launches national mining day 14 | Rio energy chief calls for ‘productivity boom’ POLICY 16 | Senator Abetz outlines impending

workplace changes 17 | Recommendations to Twiggy’s Indigenous review 17 | Hadgkiss the right man to

head construction watchdog 18 | Policy at a glance 19 | AMMA leads charge for Fair Work

appeals bench

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TRAINING & DEVELOPMENT 20 | Partnership delivers job security

for Indigenous trainees 22 | Work a blast for Orica graduates 23 | Macmahon named Apprentice

Employer Of The Year 23 | Your behavioural style DISCovered MIGRATION 24 | Immigration minister channels

Howard’s support for skilled migration 25 | Coalition reverses excessive

457 labour market testing 26 | Productivity Commission warns

against skilled migration restrictions 27 | VET key to social inclusion

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COVER STORY 28 | Quality of life: Sodexo fast-tracks wellbeing program DIVERSITY 32 | All aboard: Farstad navigates path to diversity 33 | Inspirational Aussie women make top 100 34 | Gender reporting to build bigger picture 34 | Jobseeker forum opens pathways for women 36 | Employers support ‘Way Forward’strategies 36 | ExxonMobil fuels staff childcare centre 37 | East-West partnership redefines

mentoring experience

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PO Box 406, Nundah Qld 4012 Phone (07) 3866 0000 Fax (07) 3866 0066 Email sales@tmpc.com.au Web www.tmpc.com.au

www.amma.org.au | Autumn 2014 |

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CONTENTS

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INNOVATION 38 | Alpha to harness cost-efficient technology 39 | Assetlink employee offerings receive top award 40 | Innovation runs deep at Stornoway 41 | Shell’s floating Prelude takes shape OHS & WELLBEING 42 | FIFO wellbeing program a soaring success 44 | Program shines light on mental health 46 | Putting drug and alcohol procedures to the test 47 | Leighton Contractors wins with hazard app FEATURE 48 | CSG energising community connection

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ECONOMY 50 | Super cycle here to stay 51 | WA offers exploration incentive grants 52 | Resources production phase dawning 53 | Growth sectors to match mining over 20 years 53 | Queensland’s 30-year resources plan EVENTS 54 | Events Calendar

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COVER IMAGE Sodexo CEO Johnpaul Dimech

Editor | Tom Reid Tom.Reid@amma.org.au Deputy Editor | Kylie Sully Kylie.Sully@amma.org.au Advertising | Tara Diamond Tara.Diamond@amma.org.au

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AMMA Contacts 1800 627 771 | membership@amma.org.au migration@amma.org.au miningoilandgasjobs@amma.org.au training@amma.org.au

| Autumn 2014 | www.amma.org.au

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REGULARS

From the Editor SERVICING AN INDUSTRY so reliant on the strength of its workforces, Sodexo Australia is a quintessential ‘people’ business. Fifteen years spent with the global facilities management company has given CEO Johnpaul Dimech a practiced eye for what it takes to improve the quality of life of both his own 6,000-strong workforce and that of his clients.

Speaking to Resource People for this issue’s cover story, Dimech delves into Sodexo’s pioneering initiative Well Track and explains how, using global research, the comprehensive program is taking employee wellbeing and its impact on job performance to the next level.

With FIFO practices the backbone of many of our nation’s projects, we also explore how John Holland is supporting its workforce in adapting to the transient lifestyle, and a renewed push to integrate mental health awareness training across every corner of the industry.

Developing new talent is another theme threaded throughout this first edition of 2014. In our feature, Arrow Energy CEO Andrew Faulkner tells us about the Queensland-based CSG company’s progress in local Indigenous training and employment.

Training & Development looks at how an industry and

www.amma.org.au |Autumn 2014 |

government collaboration is opening new career possibilities in mine site security for Indigenous Western Australians, and reveals why a spot in Orica’s graduate program may just be the hottest ticket going for talented jobseekers.

The maritime support sector probably isn’t the first to come to mind when thinking of workplace diversity, but here we discover why Farstad Shipping is leading the way as the first Australian resource company to become industry-endorsed for gender diversity capability. Human Resources covers the latest recruitment trends and also explores how people are keeping truck company Jamieson Transport’s wheels turning.

Economy and Leadership serve up a range of commentary on the transition to a production-heavy resources phase and the policies needed to ensure our industry continues to deliver economic and employment benefits for the nation – skip to page 14 to read why Rio Tinto’s energy chief sees a ‘productivity boom’ essential to this growth.

2014 is shaping up to be a defining year for our industry and, if the stories within these pages are any indication, Australia will continue to prosper not only from the strength of our projects, but the innovation of our people.

Tom Reid

EDITOR

REGULARS

Chief Executive’s Message THE SCOPE OF representative work undertaken by AMMA includes complex employment policy and macro-economic analysis – but at the end of the day we’re all in the business of people.

One of the most rewarding parts of leading Australia’s resource industry employer group is witnessing the positive impact our member companies have on people – their careers, their livelihoods and their general wellbeing.

From Sodexo’s holistic Well Track program to FIFO initiatives and mental health, our first 2014 edition of Resource People celebrates this by delving into just a few select innovations of resource employers in this area.

Being in the ‘people’ business, we understand it is the skills and capability of our workforces that will power Australia forward through a range of challenges in coming years. The economic analysis throughout this magazine clearly shows Australia is transitioning from an unprecedented phase of resources investment to a new production era.

A record $30.3 billion worth of major projects have moved from the labour-intensive construction phase to long-term production in the last six months of 2013. Far from marking the end of the ‘skills shortage’, this new phase introduces its own people puzzle.

The Australian Workforce and Productivity Agency (AWPA) recently forecast employment in the oil and gas sector alone will grow by 57 per cent to about 61,200 workers by 2018 as new projects begin operating.

It warns skills of thousands of mine construction workers are not yet ready for this shift and an acute undersupply of skilled workers will occur in many production-based technical roles.

Assisting Australia’s workforce through this difficult transition will require a cohesive focus and direction from industry stakeholders and our national policy-makers.

AMMA is already engaged in many initiatives that are helping to bridge this skills gap, and we firmly believe further government collaboration and co-operation on industry-led employment programs will ensure more Australians can connect with employment opportunities in our sector.

We are already seeing great success with the Australian Women in Resources Alliance (AWRA) and AMMA Skills Connect; the latter of which helped train a dozen Indigenous

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jobseekers for new careers in the mine site security sector.

The take-up of these programs is delivering real social and commercial outcomes and, excuse the pun, directly at the coal face. These encouraging results are especially important as our industry and indeed our national economy rapidly evolves.

On page 50, economist Justin Smirk joins senior resource executives in correctly pointing to a focus on competitiveness, productivity and cost minimisation as critical to our sector’s business health during this shift to a long-term production phase.

However, we also must do all we can to foster the $560bn worth of proposed and committed new construction projects in the resource investment pipeline. With the right focus on maintaining our nation’s competitiveness, we can ensure this exciting new phase of production activity can be complemented with another wave of new resources construction projects.

This must be supported by the right policy settings and AMMA is gearing up for a significant role in the Productivity Commission’s imminent review of Australia’s workplace laws this year.

It is encouraging to read our Prime Minister Tony Abbott’s plans for our sector in his message to resource employers on page 12. We endorse the Prime Minister’s stated views about allowing management and business leaders to play a key role in ensuring the success of our enterprises and our economy.

Our call to the government is to wind back unnecessary regulations that increase business costs and detract from employers’ capacity to directly engage with their employees – critical to improving our national productivity.

Many of these changes were made at the end of Labor’s tenure in government and include issues like new laws permitting unwanted union intrusions into employee lunchrooms. Other priorities include fixing our new projects or ‘greenfields’ negotiation process and restoring the Australian Building and Construction Commission (ABCC) to stamp out unlawful union activity.

In his message to our readers, the Prime Minister notes AMMA ‘consistently supports policies that strengthen the economy and encourage growth’. We will continue to represent our members and advocate on this very basis.

AMMA strives to keep our industry the cornerstone of our economy and thus our national wellbeing – but we never lose sight that our industry’s success is best measured by the positive impact we have on Australia’s resource people.

Steve Knott

AMMA CHIEF EXECUTIVE

Our call to the government is to wind back unnecessary regulations that increase business costs and detract from employers’ capacity to directly engage with their employees – critical to improving our national productivity. | Autumn 2014 | www.amma.org.au

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HUMAN RESOURCES

PEOPLE DEVELOPMENT keeps Jamieson’s wheels turning A unique recruitment solution to source experienced road train drivers for its Pilbara business is keeping Jamieson Transport on a solid road to growth.

POWERING THROUGH THE Pilbara’s unforgiving landscape, the earth’s red dust billowing around 86 tyres holding the weight of two loaded Boeing 737s – the road train is quite a sight.

Far from the average heavy haulage truck, these mammoth vehicles, and the people behind the wheel, provide a critical service to mining companies meeting the world’s demand for Western Australia’s natural resources.

Based in Port Hedland, Jamieson Transport has been servicing the bulk ore transport industry in Western Australia since 1994, with a 145-strong workforce moving primarily copper, iron ore and manganese.

“With the big players in the industry having their own rail networks there leaves a requirement for the many other regional mines to be supported by road train transport, so there will always be a need for these drivers,” says Jamieson Transport manager Rob Broderick.

But with the requirement for a multi-combination licence, prior heavy vehicle experience and a stomach for the marathon 750km return journey through the hot and lonely outback, the life of a road train driver is not for the faint-hearted.

Consequently, Broderick says Jamieson Transport’s main challenge is reaching a market of jobseekers that match its criteria.

“The FIFO lifestyle is a challenge to some and the extreme temperatures of the Pilbara requires our drivers to adopt a special operating technique that is often vastly different to the way many truck drivers are trained,” he says.

“This involves driving the vehicle to the temperature gauges as well as dropping gears slowly over a period of kilometres before negotiating a tight corner.

Workshop managers Robert Broderick (L) and Wayne Marnane (R)

www.amma.org.au | Autumn 2014 |

One of Jamieson Transport’s fleet of road trains

With the big players in the industry having their own rail networks there leaves a requirement for the many other regional mines to be supported by road train transport, so there will always be a need for these drivers.

ROB BRODERICK “It ensures the drivers are safer and minimises the inevitable damage to the engine and parts from the constant strain of pulling 170 tonnes in 50-degree heat.

“Adopting this technique can present a challenge for some drivers.”

As demand for their services increased with the growth of the industry, Jamieson Transport found it could no longer rely on word of mouth to fill specialist vacancies.

But while crowded recruitment websites failed to produce quality candidates, the company was able to tap in to a pool of experienced workers through a ‘mini-site’ partnership with the resource industry owned-and-operated miningoilandgasjobs.com.

Designed for organisations running multi-vacancy campaigns, the mini-site provided Jamieson Transport with its own fullybranded section of the resource industry careers website, featuring all job vacancies, company images, audiovisuals and testimonials.

“Through advertising on the mini-site we were inundated with solid applications from within both local and regional

HUMAN RESOURCES

Australia,” Broderick says.

“These operators have years of proven experience operating road trains and are job-ready. As a result, we’ve welcomed 10 new employees.”

Having seen many truck drivers come and go during his time in the industry, Jamieson’s long-serving workshop manager Wayne Marnane says the company is now focused on keeping retention rates high.

“We rely on the experience, commitment and dedication of staff in all departments, from drivers through to our 30 multiskilled service and repair workshop staff. They are the driving force behind Jamieson Transport,” Marnane says.

“Some of our staff have been with us for up to 15 years.

These guys value the lifestyle and appreciate our focus on safety, maintenance and the general perks of working at Jamieson Transport.

“But retention really is a challenge here in the Port Hedland transport industry.

“As FIFO workers, it is not always easy being away from family and loved ones for periods of time, so we acknowledge home life as being an important factor to employee wellbeing.

“By adopting an open culture, our employees understand

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they can approach management with any issues or concerns for resolution without fear of judgement or reprisal.”

Marnane says the company has also realised the benefits of investing in promising applicants that require some further training before taking on the full responsibilities of the role.

“The driving workforce in the industry is getting older and not everyone has driven a road train before. We recognised this by providing thorough training for individuals who show promise, a good work ethic and appreciation for the chance given to them,” he says.

“We also have ongoing health and safety training and a third of our maintenance and service staff are currently working their way through apprenticeships.”

As prices for minerals such as iron ore begin to stabilise, Port Hedland continues to mark its standing as a thriving export hub with a record 25.2 million tonnes of the commodity leaving for China in October 2013, up 43 per cent on the year prior.

With this activity fuelling the demand for road train transport services, and Jamieson Transport’s bolstered team of experienced drivers, Broderick and Marnane are nothing but optimistic for the company’s ongoing growth.

| Autumn 2014 | www.amma.org.au

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HUMAN RESOURCES

RECRUITERS GEAR UP for oil and gas surge Recruitment in Australia’s oil and gas operations is set to power forward in the first quarter of 2014 with job advertisements in the sector up almost 10 per cent in the second half of last year, according to a national resource industry jobs analysis.

THE SURGE IN oil and gas vacancies and continuously strong metal ore mining recruitment keeps the DFP Mining and Resources Job Index steady, despite a dip of 1.58 points to 87.12 in December. The recruitment specialist attributes this slight fall to a weakening in exploration and coal mining demand and seasonal factors.

“December and January are typically difficult months to interpret because of the fall off in advertising due to the Christmas and New Year holiday period; however, our numbers suggest the market has held up well,” DFP CEO Robert van Stokrom says.

“Job opportunities in metal ore mining continue to dominate the employment landscape, accounting for almost 40 per cent of all vacancies.

“Weaknesses within the exploration segment continued, while coal mining remains the weakest sub-sector. In contrast, oil and gas extraction roles are outperforming the rest of the market, rising from 18.9 per cent to 23.7 per cent of all vacancies advertised in December.”

The Index shows Western Australia represents more than half of all national job advertisements, and while Queensland vacancies have declined 36 per cent since June 2013, the sunshine state’s resources recruitment market is predicted to be buoyed by recent project approvals.

“The recent approval of both the GVK/Aurizon and now Clive Palmer’s China First railway lines from the Galilee Basin to Abbot Point may provide some scope for improved employment conditions in the medium term,” van Stokrom says.

In its analysis of monthly data from employers, recruiters and jobs boards, DFP also establishes trends across key occupational groups.

DFP Mining and Resources Job Index

www.amma.org.au | Autumn 2014 |

“Following a steep decline in the final 2013 quarter, demand for engineering professionals has stabilised and the demand for trades and operators has been consistently strong over the past six months,” van Stokrom says.

“The strongest market remains ROBERT VAN engineering trades and technicians, where STOKROM the index sits at 99.59 – showing excellent resilience in an otherwise weak sector.

“Demand for core operational staff – drillers, miners and moving plant operators – stabilised while rigger and labouring opportunities enjoyed a fifth successive month of increased demand.

“However, business support roles that had previously shown surprising resilience finally saw a softening in opportunities in December with this group’s index falling below 100 for the first time since July.”

Van Stokrom says coupled with its focus on the resource industry, the technology behind the job index makes it unique among current indices.

“The market intelligence within the index can be used to augment, challenge or benchmark internally generated data and other sources of information while assisting in talent attraction strategies and workforce planning,” he says.

“The analyses of job ads from a wide range of sources allows for the accumulation of a significant amount of data, previously limited to the analysis of advertising on major job boards. The new technology also ensures job ads are not double or triple counted due to duplicate and re-posted advertisements.”

The proportion of job vacancies by sub-sector, December 2013

HUMAN RESOURCES

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SKILLS COLLABORATION key to workforce puzzle THE RISE OF liquefied natural gas (LNG) projects coming online in the next five years will add a new dimension to the Australian resource industry’s workforce skills puzzle, a government report has declared.

The Australian Workforce and Productivity Agency’s (AWPA) Resources Sector Skills Needs report predicted 57 per cent growth in oil and gas employment to about 61,200 workers by 2018.

“As the sector shifts from construction to operations and major oil and gas projects come online, [the sector] will need to work hard to develop workers with the right skills and experience to manage the transition,” the report says.

Resource industry employer group AMMA’s executive director, policy and public affairs Scott Barklamb says the industry has been preparing for changing skills requirements for some time, but wants to see collaboration between industry and the Commonwealth on training, skills and employment initiatives ramped up.

“Since 2011, AMMA has been leading two successful government-industry employment initiatives to assist with this transition: AMMA Skills Connect and the Australian Women in Resources Alliance,” Barklamb says.

“These initiatives have established a range of valuable programs, events and collaborations that are already addressing many of the key challenges identified by AWPA, most notably transitioning workers from construction-based skills to operational skills.

“However, the resource industry believes a continued and expanded focus on skills development and helping workers transition to areas of opportunity is critical.”

The AWPA report also confirmed the industry’s wider economic contributions, including accounting for $187 billion or around 60 per cent of the total value of Australian exports; creating 174,400 mostly full-time jobs since 2003; and proportionally employing more than twice the all industries average of Indigenous workers.

CONSTRUCTION SKILLS demand easing – Pit Crew AUSTRALIA’S LEADING LABOUR market forecasting firm predicts a high level of construction skills availability during 2014 due to project completions, labour displacement from other industries and the slowing rate of new investment.

The latest data from Pit Crew Management Consulting shows Australia has 350 major resource industry and related infrastructure projects either awaiting approval or already under construction worth a total of $617.1 billion.

Construction of these projects will require about 66,500 workers during 2014-15, but in stark contrast to the widespread skills shortages seen less than two years ago, Pit Crew founder and director Peter Dyball says this demand should be comfortably met.

“Demand levels are easing as a result of projects reaching completion or reaching their peak and progressing towards the latter stages of completion, as well as a reduced number of [new] projects in the pipeline,” says Dyball, whose firm releases the biannual AMMA Pit Crew Labour Market Index in partnership with the resource industry employer group.

“Increased availability is due to a range of conditions from both within and outside the major project sector. Within the sector the easing numbers on projects is freeing up labour. Outside the sector in areas such as operations and manufacturing, easing markets, cost-cutting and optimisation

are also providing a greater availability for the major projects construction sector.

“It is worth noting that an easing construction market will be somewhat counteracted over time by growth in the operations requirement as new assets come online.”

The Pit Crew data estimates Australia’s relative availability of construction skills is at 22 per cent surplus, with only the Northern Territory experiencing ongoing shortages (-8 per cent). The two major mining states, Western Australia and Queensland, have construction labour surpluses of 28 per cent and 10 per cent respectively.

However, Dyball warns the availability of workers in the future can rapidly change with factors such as natural attrition, mobility, other sector activity and unexpected changes in the project sector. He also says the supply sectors to major projects are having an impact.

“When project sites need labour, service providers and suppliers will generally also need labour, reducing the available labour in the market and pushing shortages,” he says.

“An easing market sees availability similarly affected by suppliers and contractors letting workers go, as soon as order books aren’t full, resulting in higher availability of workers.”

The full AMMA Pit Crew Labour Market Index analysis can be read on AMMA’s website.

| Autumn 2014 | www.amma.org.au

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HUMAN RESOURCES

COMPASS SETS COURSE for eager jobseekers While its award-winning multimedia campaign continued to scope new recruits, Compass Group still seized the opportunity to engage directly with a room of enthusiastic Western Australians at a recent mining jobseeker forum, delivering solid results.

RESPONSIBLE FOR LEADING recruitment for 650 sites across Australia, Compass Group’s Phil Turner says direct engagement with jobseekers is crucial to the food and support service company’s diversified recruitment strategy.

For this reason, the general manager of talent acquisition ensured Compass PHIL TURNER Group was front-and-centre at a recent Perth forum attended by 100 pre-screened jobseekers and held by the resource industry’s government-funded workforce development initiative, AMMA Skills Connect.

“Many jobseekers believe opportunities in the resource industry are limited to engineers and technical specialists, but the industry also has many different roles in support services,” Turner says.

“It is my and my team’s role to communicate the wealth of opportunities within Compass Group and to share our employee value proposition.”

Specifically, Compass Group attended the AMMA Skills Connect jobseeker forum to raise awareness of career pathways for its ESS Support Services Worldwide company; a provider to the resource industry.

“We try to get to as many events as possible so we can engage with a cross section of jobseekers in the community – such as expos, career days, school and college visits, and networking events,” Turner says.

“Jobseekers learn a lot at events like these, from the types of positions available to rosters, rewards and benefits, life onsite, and opportunities for career development and training.

“Following the forum we had a number of candidates go through our assessment and selection process and secure positions.”

Among the successful applicants were Scott Wenke and Candice Litchfield, who say the event broadened their perspective about opportunities in the industry.

“When I found out about the jobseeker forum in Perth I jumped at the chance to attend. I saw it as an ideal way of interacting directly with representatives from mining sector companies,” says Wenke.

“What stood out to me the most when listening to the Compass Group presentation was simply that there is just so much variety in support service roles and so much opportunity to gain new skills and build a career in the company over many years.”

Wenke now undertakes a FIFO roster of two weeks on and one week off at Nifty Copper Mine’s worker accommodation

village located in the east Pilbara region and operated by ESS Support Services Worldwide.

“My duties are predominately bus driving, operating a garbage truck, luggage handling and garden maintenance such as cutting and removing branches,” he says.

“I have a good amount of experience with outdoor work and operating vehicles of all sorts and also great people skills, which made me a perfect candidate for this versatile role.”

As one of Compass Group’s newest FIFO relief utility workers, Litchfield says her previous experience in hospitality helped her secure a role performing cleaning, kitchen and bar duties.

“What appealed to me most about working in a support service role in the resource industry was the opportunity to gain new experiences and be in a position where I could save some money,” she says.

“I have met some incredible people working for ESS Support Services Worldwide and love the whole FIFO lifestyle. I look forward to working my way up the ladder to bigger and better opportunities.”

With Compass Group operating in around 50 countries and employing more than 500,000 people worldwide, Turner says direct engagement is part of a wider recruitment and retention strategy that ensures the company remains competitive in a global marketplace.

“We’re continually innovating as a company and developing new initiatives to attract and retain employees. One of our most recent national multimedia campaigns received a staggering 10.5 million views and was part of a strategy that won Compass Group the 2013 Australian HR ‘Best Recruitment Strategy’ Award,” he says.

“We are also committed to training our people and annually have 700 employees complete formal qualifications. Our strength is in providing career advancement opportunities for our employees who are presented with a range of career paths such as management, specialist roles or movement into other projects.”

Scott Wenke is enjoying his diverse new role with Compass Group’s ESS Support Services Worldwide

www.amma.org.au | Autumn 2014 |

HUMAN RESOURCES

5 minutes with...

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AMMA Principal Employee Relations Consultant Simon White I’ve worked in the employee relations field for: 17 years.

SIMON WHITE

For me, the resource industry represents: An amazingly diverse group of different industries, each with their own quirks.

My work with AMMA involves: I generally work with the industries that get wet. While 2013 was dominated by the offshore vessel agreement negotiations it still allowed me the opportunity to be involved in Australia’s exciting range of major oil and gas projects.

The greatest challenge of my work is: Attempting to reach agreement in a low-trust environment when the other party is either not willing or not able to.

The thing I love about my job is: Being involved (in a small part) in major projects as they evolve from planning into construction and then operations.

My alternative career choice would be: Federal politician.

My favourite thing about Western Australia is: That it is a great mixture of cultures and nationalities all placed in such a warm and beautiful place. Those that don’t live here want to.

If I could be anywhere else in the world it would be: New York. Simply the centre of the world.

I couldn’t live without: My family.

I’m inspired by: My children.

The perfect day/night out involves: A drive along the coast in my 1957 Corvette (once I get one), a long lunch with my wife, followed by a Fremantle Dockers game.

I would spend my last $100 on: Probably on petrol for the Corvette!

| Autumn 2014 | www.amma.org.au

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LEADERSHIP

A STRONG RESOURCE INDUSTRY for a prosperous economy In this message to resource industry employers, Prime Minister Tony Abbott explains how his government will keep Australia’s resource industry at the centre of economic growth.

IN JUST A few short months, the Coalition Government has reset the relationship between government and the mining sector.

The new government is overturning the green tape, taxes and class war rhetoric that robbed our most successful sector of its confidence.

As AMMA chief executive Steve Knott succinctly said before the last election: “There remains a sour political backdrop where the urgent policy demands for sustaining Australia’s great resources opportunity are not being sufficiently addressed”.

My message to the miners of Australia and to investors throughout the world is that Australia is under new management and once more open for business.

The new government is now delivering its plan for a stronger, more prosperous economy.

Our plan – to reduce taxes and to cut red tape to boost productivity and growth – has been underway from day one.

In the marrow of its bones, the new government understands you can’t have strong communities without strong economies to sustain them, and you can’t have strong economies without profitable private businesses and industry.

As far as the new government is concerned, profit is not a dirty word and success is something to be proud of. The class war rhetoric of the past few years has no place in a modern economy.

The resources industry is one of our areas of economic advantage and it should never be taken for granted. Thence, the government is determined to ensure Australia’s mining industry remains at the centre of our economic growth.

We are doing our part to strengthen the resources industry and restore Australia’s reputation as a place to invest.

The carbon tax repeal legislation has passed the House of Representatives. The mining tax repeal legislation has passed the House of Representatives. On 1 July 2014, the carbon tax and the mining tax should be history.

The end of the carbon tax will remove a $9 billion a year hit from the economy and scrapping the mining tax will not only remove the sovereign risk cloud over resources investment but will also remove $13 billion in unfunded expenditure from the Federal Budget.

We’ve closed 21 non-statutory bodies as a down-payment on our commitment to streamline government and reduce business red tape costs by $1 billion a year.

The Minister for the Environment has given environmental approval to $400 billion in new projects.

We have introduced legislation to restore the Australian Building and Construction Commission. Investors considering the construction of new mining projects and supporting infrastructure

www.amma.org.au | Autumn 2014 |

TONY ABBOTT PRIME MINISTER will have the confidence there will be a tough cop on the beat.

The Commission of Audit, a once-in-a-generation review of the size, scope and efficiency of government is underway, which will guide our efforts to reduce government waste and duplication, including between levels of government.

Most of the former government’s nearly 100 announced-butnot-enacted tax changes won’t go ahead because that means lower taxes and less paperwork.

Tax reform starts with abolishing the carbon tax and the mining tax but it doesn’t end there. The coming tax reform white paper will inform the mandate for lower, simpler, fairer taxes that the government will seek at the next election.

Prior to the election, the Coalition detailed its policy to improve the Fair Work laws and restore the balance back to the sensible centre. We will honour our commitment.

I wholeheartedly agree with the sentiment of AMMA, which stated in December: “The first step in restoring our nation’s global competitiveness is the Federal Opposition respecting the government’s mandate to remove the carbon and mining taxes”.

The Coalition, in opposition, tried to stop the thengovernment from breaking its election commitments. Bizarrely, the current Opposition is trying to stop this government from keeping its election commitments.

I thank AMMA for its consistent support of policies that strengthen the economy, encourage growth and create employment opportunities. I look forward to working with you to achieve that very end.

LEADERSHIP

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GINA RINEHART LAUNCHES national mining day Australia’s most recognisable mining identity has called for the resource industry to ‘shake up its spirit’ and celebrate its contribution to Australia’s prosperity.

“THE 22ND OF November every year will be an opportunity for us to tell our story.”

Gina Rinehart’s words on the inaugural National Mining and Related Industries Day drew applause from an audience of industry professionals gathered in Brisbane.

The prominent chairman of Hancock Prospecting says it is about time the industry speaks up about its efforts and contributions.

“As a collective, we seem to prefer to stay beneath the radar for fear of attracting too much of the wrong attention and waking up the inevitable tall poppy hit-squad,” Rinehart says.

“But we have a story to tell and we should tell it proudly.

“Australian mining is a key part of this country’s economy and, I hope, our future.”

In addition to her past success, Australia’s wealthiest person is well known for her stake in the Roy Hill iron ore and associated infrastructure project in the Pilbara and the Alpha Coal project in Queensland’s Galilee Basin.

Hancock Prospecting has awarded $3 billion worth of development contracts for the Roy Hill project and a $200 million accommodation village is already complete in anticipation for 2000 construction workers.

Rinehart says Australia’s high standard of living is due in large part to the resource and related industries, but too many have a negative view of its activities.

“We live under the biased watch of a movement which seemingly wants us not to exist but has no problem planning how to spend the billions in royalties and taxes we pay,” she says.

“Increasingly, today’s children are taught that mining is bad – that it’s environmental vandalism.

“I’m sure we’ve all often wondered how many of the knockers have ever gone out to visit our great mines in the remote areas, see for themselves that we are not one giant quarry, but how far apart these mines actually are.

“And maybe even get their shoes dirty, put on the hard hat and reflective safety gear, wave away the flies or mosquitoes, share the dust and heat, and have a look for themselves.”

Rinehart urged the industry to ‘shake up its spirit’.

“How many Australians appreciate that the efforts of our country’s miners keep the lights on for a large part of the world?” she says.

“We can bemoan coal and uranium and shale oil, but try to imagine the lives of billions of people without electricity; would we wish to be

just one of them?”

While commending the Coalition Government for ‘sticking to its election pledges’ and moving to abolish the MRRT and Carbon Tax, Rinehart says state and federal governments need to do more to remove investment deterrents.

“Our story is important but our existence is fragile in the face of growing competition from much lower cost countries of Africa, South America, Indonesia and elsewhere,” she says.

“Our existence is fragile because our costs are some of the highest in the world, yet we have to sell our products on the world markets in competition with all others. The world doesn’t owe Australia a high-cost existence; it simply won’t keep buying our products if we don’t try much harder to lower our costs.

“Less tax and much less regulation are critical.”

Speaking in support of National Mining and Related Industries Day, Minister for Industry Ian Macfarlane says the industry may be subject to ‘ups and downs’ but remains a mainstay of the Australian economy.

“During the last financial year alone, the mining sector contributed a record $151.2 billion to the Australian economy,” he says.

“That is 10 per cent of GDP for that year and 8.8 per cent higher than the previous year.

“There is no doubt about where this government stands – we want the mining sector to thrive and continue to build Australian prosperity.

“It is only fitting that we celebrate mining’s contribution to the Australian economy and society.”

Gina Rinehart is calling for greater celebration of the mining industry

| Autumn 2014 | www.amma.org.au

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LEADERSHIP

RIO ENERGY CHIEF CALLS for ‘productivity boom’ Harry Kenyon-Slaney is calling for a new boom.

Heading one of the country’s leading coal and uranium businesses, Rio Tinto’s chief executive, energy, sees the industry continuing to play a starring role in the international market and national economic growth.

FOR THIS TO happen, he says the next boom needs to be one of productivity.

“Growth in volume has given way to an unremitting focus on raising productivity from existing operations. In short, our industry must now reset the way it does business if it is to remain competitive over the long term,” says Kenyon-Slaney.

“A boom in productivity is desperately needed if the Australian coal sector is going to find answers to the difficult conditions it is facing.”

Speaking to a room of industry peers at a Brisbane mining function, Kenyon-Slaney points to International Energy Agency forecasts that global primary energy demand will increase by 35 per cent from levels in 2010 to 2035.

This coincides with the Bureau of Resources and Energy Economics (BREE) analysis of Australian export earnings, which forecasts earnings from our mineral and energy commodities to increase by 11 per cent in the 2013-14 financial year to $203 billion and grow at an average annual pace of 7 per cent thereafter.

THE RIGHT BALANCE Kenyon-Slaney doesn’t sugar-coat that a productivity boom would require a change in mindset within the industry, and his advice comes from experience.

With an unrelenting focus on cost control, Rio Tinto successfully achieved more than $333 million in annualised savings in the first half of 2013 across its Australian coal operations located in Queensland and New South Wales.

Globally, the company has set a target of $5 billion in cost savings by the end of 2014.

While cost-cutting would logically come at the expense of growth, Rio Tinto has succeeded at both, recently moving ahead with a $2 billion extension of it Kestrel coking and thermal coal operation near Emerald in Central Queensland.

The new longwall development will extend the life of the mine by 20 years, producing on average more than 5 million tonnes of saleable coal per annum.

According to Kenyon-Slaney, a ‘fast and furious shrinking’ of outgoings while maintaining or increasing the value of every dollar spent requires a delicate balance between bad costs and good costs.

“To use a sporting analogy, the former can feel like a sugar hit because it addresses the immediate problem, is relatively easy to administer and leaves you feeling as though you are back in the race,” he says.

www.amma.org.au | Autumn 2014 |

HARRY KENYON-SLANEY “The latter, however, is more akin to a boot camp – you know it will address the underlying cause and will set you up to win race after race, but it can be mighty hard to find the willpower to see the program through to the end, and you are not really sure which aspect of your fitness is going to be the hardest to turn around.

“If we get the balance right, we will unlock significant productivity gains and we will improve our industry’s global competitiveness.”

In a business where time is money, the Rio Tinto executive says a productivity boom would require better performance across labour, machinery, suppliers, infrastructure and laws and regulations.

“One of the great scourges of modern business is the loss of time to inefficient behaviours, practices and processes,” says Kenyon-Slaney.

“This theft of time costs us dearly and eats into the working hour, day or week and reduces our capacity to do real valueadding work.

“One example of how we are addressing theft of time in our Australian coal business is to fit each of our haul trucks with GPS technology.

“The technology identifies areas where the haul road surface is poor or damaged, and immediately notifies the site control room.

“This enables road repairs to be made more quickly and also improves the fleet’s cycle time, reduces fuel use and prolongs equipment life.”

LEADERSHIP

EMPOWERING PEOPLE When it comes to labour, Kenyon-Slaney says the productivity conversation should involve everyone in the business.

“We have to accept we can no longer have growth at any cost. Growth has to be earned the hard way by working harder, smarter and faster,” he says.

“Our people are the cornerstone of our businesses. To deliver this boom in productivity, leaders must engage the hearts and minds of employees and articulate clearly why change is needed.

“They need to understand how this new way of working will raise productivity and improve the competitive position of our industry at this critical time.”

Rio Tinto staff are encouraged to act as business owners rather than managers, converting every decision into dollars.

While such an approach may sound extreme to some, it has extracted business-altering innovations from employees.

“In our coal business in the Hunter Valley, a superintendent challenged the traditional way of rebuilding a dozer. As a result, he halved the time usually taken for this work and saved more than half a million dollars,” he says.

“There is enormous opportunity to tap into people’s desire to talk, to debate, to question and to offer up their ideas.

“In my experience, people want to know three things: what they are expected to do, how they are doing and what the future holds for them.

“If we can address these questions through good dialogue and engagement, there is virtually no limit to the improvements we can make.”

Our industry must now reset the way it does business if it is to remain competitive over the long term. A boom in productivity is desperately needed...

HARRY KENYON-SLANEY

15

Employees at Rio Tinto’s Weipa operations

REBUILDING AUSTRALIA’S COMPETITIVENESS Hinging its election win on a promise to reinvigorate Australia’s productivity growth, the Coalition Government’s mandate to reduce red tape and other competitive barriers has been strongly welcomed by industry.

While Kenyon-Slaney commends the government’s agenda to improve economic, employment and productivity growth, he says industry must not rest on its laurels when it comes to pushing for effective policy outcomes.

“To rebuild Australia’s competitiveness, we need government to help restore an appetite for risk and investment,” he says.

“And if we expect government to help drive this change, we as an industry need to communicate more effectively with them about what should be done.

“We need to identify and remove regulatory inefficiency. We need to explain the need for certainty in policy making. And we need to be clear about the costs and delays that arise from inefficient approval processes.

“Mining is about long lead times. If we’re to invest with confidence and achieve sustainable growth, we need predictability in policy and political certainty.”

Kenyon-Slaney acknowledges workplace relations as one of these key areas of policy, saying: “It must be fair and provide appropriate protection for employees, while balancing individual desire with business and national needs.

“In any workplace, the way people work together, and management’s relationship with employees and unions, can significantly affect productivity.

“Rio Tinto has a full range of employment arrangements and union agreements, and our approach is always to focus on employees, not industrial relations. This brings a very different focus and builds employee engagement.”

Whether it be a change in government, an economic downturn or a shift in market demand, periods of uncertainty can make or break organisations large and small.

Rio Tinto has faced its share of challenges in recent times, but Kenyon-Slaney says an open dialogue and a common goal is seeing the company’s people embrace change and play a part in driving the industry’s productivity boom.

“If our industry gets it right, we won’t allow costs to creep back in as conditions improve and the memory of these dark times recedes.”

Rio Tinto’s Kestrel coking and thermal coal operation

| Autumn 2014 | www.amma.org.au

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POLICY

SENATOR ABETZ OUTLINES impending workplace changes Resource industry employers are anticipating a number of important changes to Australia’s workplace laws being introduced into parliament early this year, following an address by Minister for Employment Eric Abetz.

IF SENATOR ERIC Abetz’s rousing speech to AMMA’s Tasmania Conference late last year is any indication, the employment minister is on a mission to deliver policy change that will support a more competitive Australian resource industry.

Most significantly, these include changes to laws governing union entry to worksites, the negotiation of wages and conditions for new resource projects (greenfields) and the restoration of the Australian Building and Construction Commission (ABCC).

“The Coalition wants a stable, fair and prosperous future for all Australians, and we see workplaces as vital to achieving that goal,” Senator Abetz told AMMA members.

“This is why we’re improving the Fair Work laws and restoring the balance back to the sensible centre.”

RIGHT OF ENTRY Last year the laws governing union entry to workplaces were extended to allow unions to hold recruitment meetings in employee lunchrooms, and require resource industry employers to subsidise the costs for union officials visiting far-remote projects, including those offshore.

AMMA was at the forefront of highlighting the impracticalities, imbalances and costs of these ‘poorly thought out amendments’. These changes by the former Labor Government are among the first in Senator Abetz’s sights.

“We will ensure that union right-of-entry protections are sensible and fair, balancing the need for workers to be represented if they wish with the need for workplaces to run without unnecessary disruption,” Senator Abetz said.

“The way that right of entry operates under the Fair Work Act is not balanced and is not based on common sense. When I hear of one project experiencing 200 union visits in just three months it is clear there are issues with the system that need to be addressed.”

GREENFIELD AGREEMENTS The other key area of change outlined by Senator Abetz referred to greenfield agreements – the workplace negotiation process for new projects.

“Unions should not have the power to effectively veto the commencement of new projects or extract exorbitant wages and conditions by refusing to sign up to a greenfields agreement,” the Senator said.

“The current model for greenfields agreements delays construction projects, is bad for jobs, bad for businesses and is bad for the Australian economy.

“We will fix this problem by providing that if negotiations

www.amma.org.au | Autumn 2014 |

for a greenfields agreement have not been completed within three months then a business will be able to take their proposed agreement to the Fair Work Commission for approval (subject to the ‘Better Off Overall Test’).”

CONSTRUCTION INDUSTRY LAWLESSNESS Senator Abetz also took the opportunity at AMMA’s recent Tasmania Conference to reaffirm the Coalition Government’s commitment to restore the ABCC and tackle lawlessness on construction sites.

“As AMMA in its own survey shows, there has been a significant deterioration in the culture of the building and construction industry since the abolition of the ABCC by the previous government,” he said.

“When the ABCC previously existed, the performance of the building and construction sector improved dramatically. The results speak for themselves – industry productivity up by 9.4 per cent, Australian consumers better off by around $7.5 billion per year and fewer days lost through industrial action.

“A re-established ABCC will administer a re-invigorated national building code that will govern industrial relations arrangements for government-funded projects. This step will ensure that taxpayers’ dollars are used efficiently.”

Union site entry laws, greenfield agreement making and the restoration of the ABCC are key priority concerns identified by AMMA members through the Board Reference Group (BRG), and AMMA has strongly supported the government prioritising action in these areas.

The Fair Work laws will soon be restored to ‘the sensible centre’, Employment Minister Eric Abetz has assured resource employers

POLICY

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Recommendations to TWIGGY’S INDIGENOUS employment review FOLLOWING ITS PARTICIPATION in a roundtable discussion, AMMA has made seven key recommendations to the Review of Indigenous Training and Employment, led by Fortescue Metals Group chairman Andrew Forrest.

The review will soon provide recommendations to Prime Minister Tony Abbott to ensure Indigenous training and employment services are targeted and administered to connect unemployed Aboriginal and Torres Strait Islander people with real and sustainable jobs.

“The clear message from early consultations was the need to move beyond talk to action. The concept of a covenant and business publicly committing to actions, not words, remains highly relevant,” says AMMA executive director, policy Scott Barklamb.

The seven key recommendations provided by AMMA are: 1) Better promote and share the success stories and lessons from Australia’s resource sector employers.

2) Promote successful international practices and initiatives.

3) Create further government-industry partnerships on job readiness and skills to deliver employment outcomes.

4) Recommend to the Attorneys General that they amend anti-discrimination legislation to explicitly allow targeted job advertising to Indigenous peoples.

5) Provide research and practical support to improve the commercial operation of Indigenous enterprises and better equip them to tender for resource industry work.

6) Collaborate with financial institutions and employers on products and remuneration practices that best sustain and support Indigenous employment.

7) Further consider what is necessary to equip more indigenous people to take up FIFO/DIDO work and/or encourage FIFO employers to offer more opportunities to Indigenous job seekers.

Speaking to News Corporation after his appointment, Mr Forrest said Indigenous people ‘continue to suffer the racism of low expectations’.

HADGKISS THE RIGHT MAN to head construction watchdog IN A MOVE paving the way for the restoration of the Australian Building and Construction Commission (ABCC), the Coalition Government has appointed two respected figures to the Fair Work Building and Construction (FWBC) inspectorate.

NIGEL Minister for Employment Eric Abetz HADGKISS announced Nigel Hadgkiss as director and the Hon. John Lloyd PSM as the Chair of the FWBC Advisory Board.

“Mr Hadgkiss and Mr Lloyd bring a great depth of experience to their roles, particularly having formerly been Deputy Commissioner and Commissioner respectively, of the ABCC,” says Senator Abetz.

“The government has committed to the re-establishment of the ABCC and Mr Hadgkiss and Mr Lloyd will steer the FWBC during the transition.”

Warmly welcoming the appointments, AMMA chief executive Steve Knott stressed that appointing the right person to clean-up Australia’s building sites’ is just as important as implementing the appropriate institutional and legal arrangements to bring back the ABCC.

“Strong continuity has been achieved in appointing the previous deputy head of the ABCC to lead the current FWBC through this transition,” Knott says.

“Mr Hadgkiss is a well respected, tough and consistent operator. He has the runs on the board from his time with the ABCC, in leading Construction Code Compliance Victoria and through his time with the NSW Office of the Director of Public Prosecutions and the Australian Federal Police.

“Mr Lloyd was a highly effective leader of the ABCC prior to its unwarranted and short sighted abolition by the previous government. He was critical to the implementation of the Cole Royal Commission recommendations, which found widespread disregard for the rule of law on Australian building sites and an industry too often subject to a culture of lawlessness.”

Mr Knott says resource industry employers are looking for the restoration of the tough industry watchdog that was the ABCC, to stamp out rising unlawfulness on Australia’s onshore and offshore construction sites and provide improvements to productivity and workplace harmony.

New FWBC director Nigel Hadgkiss will address AMMA members at the 2014 Resource People Summit in Perth from May 29-30. More information at resourcepeople.org.au

| Autumn 2014 | www.amma.org.au

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POLICY

POLICY AT A GLANCE A wrap-up of recent resource industry policy activity by AMMA executive director, policy and public affairs, Scott Barklamb.

INDUSTRIAL REGULATION OF THE BUILDING INDUSTRY AMMA has submitted to the latest Senate Committee on the re-establishment of the Australian Building and Construction Commission (ABCC) that there is a strong and compelling basis to pass the Building and Construction Industry (Improving Productivity) Bill 2013 and the Building and Construction Industry (Consequential and Transitional Provisions) Bill 2013.

These two legislative bills were introduced by the Abbott Government in late 2013 with the intention of bringing back the ABCC. The most recent delay comes from the Senate Education and Employment References Committee launching an inquiry into the ‘government’s approach to re-establishing the ABCC’.

In its latest submission, AMMA says the previously convened inquiry provided a sufficient foundation for the passage of the amendments. We urged the Senate to pass the legislation without delay and again outlined the clear economic benefits this move would have, both for our members in the resource industry and for the wider Australian economy.

PRODUCTIVITY COMMISSION REVIEW AMMA is gearing up for a significant role in the Productivity Commission’s imminent review of Australia’s workplace laws, flagged by the Coalition Government to begin this year. AMMA will use its strong working relationship with Prime Minister Tony Abbott and his government to ensure members’ concerns are appropriately represented both in the scope of the review and the evidence provided to support change. Information on the scope of the review will be circulated when released by government.

ANTI-BULLYING JURISDICTION IN FWC In one of the former Labor Government’s most contentious workplace changes, the Fair Work Amendment Act 2013 introduced a new jurisdiction for the Fair Work Commission to deal with bullying complaints from January 1, 2014.

A person who ‘reasonably believes’ they have been bullied at work will be able to apply to the Fair Work Commission for orders to stop the bullying. The commission is not allowed to order reinstatement, compensation or penalties associated with any initial applications, however, it can refer matters to a work health and safety regulator where appropriate.

The precise implications and impact of this new avenue for litigation remain to be seen, pending how the Fair Work Commission approaches its new powers. AMMA will work with members to closely monitor the operation of the new system and concurs with the Australian Chamber of Commerce and Industry (ACCI) that the system should be reviewed and reconsidered after an initial six months of operation.

LUNCH ROOM ACCESS AND REMOTE SITES OPEN FOR UNION SITE ENTRY The former Labor Government’s final right of entry changes commenced on 1 January to make lunch rooms or crib rooms

www.amma.org.au | Autumn 2014 |

SCOTT BARKLAMB the default meeting places for discussions between unions.

Also under the changes, where unions and occupiers are unable to agree on accommodation and transport arrangements for union access to remote sites, the employer/occupier will be required to facilitate access by providing transport and accommodation, for which it can then charge back the direct costs (although on AMMA’s analysis, full cost recovery is far from guaranteed).

These expansions of union site entry laws were heavily opposed by AMMA and are among the first anti-business Labor Government laws new employment minister Senator Eric Abetz has indicated he will reverse in 2014.

OTHER LEGISLATIVE CHANGES 2014 Other changes to Australia’s workplace relations laws made by the former Labor Government that came into effect on 1 January 2014 included: • Allowing the Fair Work Commission to arbitrate some dismissal-related general protections matters and some unlawful termination matters, as long as both parties consent.

• All modern awards must now include a term requiring employers to genuinely consult with employees about changes to their regular rosters or ordinary hours of work.

• The FWC will now be required to consider penalty rates when ensuring modern awards together with the National Employment Standards provide a minimum safety net.

AMMA’s policy specialists, employee consultants and legal professionals are best placed to advise you on how any of these policy developments may impact your operations. Contact your local AMMA office via www.amma.org.au.

POLICY

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AMMA LEADS CHARGE for Fair Work appeals bench AMMA IS CONTINUING the push for a new appeals jurisdiction to be established within the Fair Work Commission (FWC), arguing such a body would solve structural issues at the tribunal and restore confidence in the system after a number of inconsistent decisions.

CEO of the resource industry employer group, Steve Knott, has been a vocal advocate for this structural change to Australia’s highest industrial relations tribunal, which was also canvassed in the federal Coalition’s pre-election policy statement.

“Of the 46 current FWC members, half are presidential members and half are commissioners,” he says.

“A business, tribunal or judicial structure that runs with 50 per cent of its establishment at managerial or presidential levels is not reflective of modern day organisational structures.”

Mr Knott says ‘politicking’ around the functions and role of the tribunal in the six years under Labor, coupled with inconsistent approaches to important workplace issues, has contributed to a decline in employer confidence in its decisions.

“In addition to the politicisation of appointments, including the demotion of existing members to make way for new Labor

appointees, the inconsistent nature of some decisions handed down by different members of the commission signals the need for an independent appeal jurisdiction,” says Knott.

Some areas that have seen conflicting decisions handed down by different commission members include: • Onsite urine testing in drug and alcohol testing policies; • Dismissal of employees found distributing pornographic material on work computers; • Dismissal of employees who physically assaulted colleagues; • Capacity for enterprise agreements to include provision for ‘loaded hourly rates’; and • Approval of enterprise agreements, particularly around the effectiveness of mandatory flexibility clauses.

“An improved appeals process would hopefully have the effect of bringing some much-needed rigour and accountability into the decision-making processes of single commissioners. It would also be in step with international practice in this area and allow a semblance of independence and impartiality to be maintained,” says Knott.

| Autumn 2014 | www.amma.org.au

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TRAINING & DEVELOPMENT

Partnership delivers job security FOR INDIGENOUS TRAINEES A group of Indigenous jobseekers are benefiting from a new resource industry partnership providing qualifications and employment outcomes in mine site security.

NEWLY ARMED WITH a Certificate II in Security Operations, Daniel Hamill is one of a group of Indigenous Australians embarking on an exciting career path in mine site security.

After his previous job as a mine labourer was wound-up, Hamill’s determination and keen eye for opportunity saw him secure his spot in a fully-funded Indigenous training program.

“I originally moved from Queensland to Western Australia more than two years ago after watching a program about Indigenous employment opportunities in the mining sector,” says Hamill.

“I hit the ground running and got a job labouring on a mine site, but unfortunately was made redundant. When searching for more work in the industry, I heard about the security training course and jumped at the opportunity.

“With each day of the training I became more intrigued with the industry and have really enjoyed learning new skills.”

Utilising federal government funding, resource industry workforce development initiative AMMA Skills Connect partnered with Perth-based Indigenous employment centre Access Working Careers to develop the program.

Each participant was guided through four weeks’ training to secure a security licence and opportunity to work with a leading mine site security company.

According to Access Working Careers director Peter Naughton, the program assists unemployed Indigenous Australians to participate in the state’s thriving resource sector.

“It is vital Western Australia’s Indigenous communities continue to have access to the social and economic opportunities the resource industry creates,” says Naughton.

“This program provides Indigenous jobseekers with the qualifications that will enable them to transition into meaningful employment in one of the resource industry’s most important service sectors.

“Participants completed the pre-employment assessments with flying colours and are excited about their future careers in the resource industry and contributing to significant nationbuilding projects.”

AMMA Skills Connect project director Tara Diamond says the past decade of strong investment has seen the resource industry become one of the largest employers of Indigenous people.

“Facilitating job outcomes for local Indigenous Australians is critical to fulfilling our industry’s community responsibilities, but also helps mining employers tackle complex skills challenges,” says Diamond.

“Along with gaining skills in security operations, the trainees learnt about the unique work environments, employer expectations and how to carve out a long and successful career within the state’s $142 billion resource industry.”

For many, the chance to acquire fully-funded qualifications is opportunity enough, but this program saw respected Indigenous Australian mine site security company Tri-Shield Services step forward to transition the participants straight into employment.

Managing director Rob Seth says Tri-Shield Services was built on a passion to promote the employment of Indigenous people and hopes to employ most of the participants through a new contract secured in the Pilbara.

“We are the most active Indigenous mine site security company in Australia. Others just don’t have the opportunities that we can provide,” says Seth.

“None of the participants had previous security experience so this is a new adventure that allows them to advance in the mining industry in a new field.

“We would like to take on all of them but if the positions aren’t available, we are committed to sourcing work for them elsewhere in the industry.”

Along with his fellow trainees, Hamill will be required to undertake tasks such as controlling access to mine sites, checking vehicles, undertaking patrols and interacting with employees across all occupational roles.

But Seth is adamant that new recruits have to be ready for the responsibility.

“Getting people security cleared and licensed can be incredibly difficult, especially Indigenous people who have lived on the land or in communities where they have faced social challenges,” he says.

“You can provide opportunity but they’ve got to want to do it and be involved in it.

“The group we’ve got through this program are a great bunch.

We look forward to them all becoming a part of the industry.”

Mine site security trainees

www.amma.org.au | Autumn 2014 |

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TRAINING & DEVELOPMENT

WORK A BLAST FOR Orica graduates Experiencing South America, humanitarian projects in India and protecting threatened species in Australia. These may sound like the adventures of a carefree backpacker, but all are part of serious leadership development for Orica’s graduate employees.

FOR MANY GRADUATES, the first few years out of university are spent undertaking typical entry-level tasks. But there is nothing typical about the life of a graduate employee at commercial blasting systems provider Orica, where its three-year program includes exotic international locations and valuable leadership development initiatives.

“Orica’s graduate program aims to build a talent pipeline for the future,” says group leader of graduate resourcing and development, Adele Preston.

“We focus on developing our graduates’ leadership, communication, networking, business improvement, team management and end-to-end project management skills through a variety of initiatives.

“For example, we offer international rotations and currently have Australian graduates in Indonesia, Chile and Brazil. We have also sent one of our chemical engineering graduates to India for a month to work on humanitarian engineering projects with volunteer organisation Engineers Without Borders.

“It is a great opportunity and an experience that will accelerate self-insight and instil humility early in one’s career.”

Since 2010, Orica has launched more than 280 graduates on an exciting path to career success. But it was the introduction of a global Graduate Sustainability Committee in 2012 that took the program to the next level and won the company the prestigious 2013 Australian Association of Graduate Employers (AAGE) Will Spensley Memorial Award for Innovation.

Preston says the development of the Graduate Sustainability Committee was a marriage between building leadership capability and an increasing focus on corporate social responsibility.

“Our graduates have always had good technical challenges in leading projects but we needed a forum for them to contribute more,” she says.

“We needed to give graduates an opportunity to make a real difference to Orica and an opportunity to manage the tough things in business; people, brand, reputation, suppliers, community stakeholder groups and budgets.

“The committee is graduate-led with a focus on implementing sustainable initiatives supporting local community groups and creating goodwill in the communities in which Orica operates.

“Graduates run a selection process for the committee each year, set objectives, propose and manage a budget, liaise with external parties including community and promote their initiatives Orica-wide.”

Operating in three of Orica’s key regions – Australia Pacific, Latin America and North America – the committee undertook a number of initiatives in 2013, from collecting and donating 8,000kg of food in a global food drive to promoting engineering and science professions at local high schools.

www.amma.org.au | Autumn 2014 |

University of New South Wales mining engineering graduate Andrew Collins credits the graduate sustainability committee for some of the most rewarding experiences during his time with Orica.

“I have enjoyed coordinating projects which benefit the community and the environment. The Western Australian graduates and I have been working with a local native animal rescue organisation, building animal pens and upgrading facilities,” he says.

“During this project we constructed 20 large cages, which will be used to house spotted quolls. Once these marsupials pass a health check, they will be relocated and released in the Flinders Ranges where their numbers have been decimated by feral animals.”

Alongside this volunteer work, the underground blasting engineer says he’s learnt the ‘nuts and bolts’ of the explosives industry and has gained valuable new project management and engineering skills. He now has his sights set on career progression with Orica, focusing on business growth and improvement.

“I am now at the stage where I understand the financial drivers of mine sites and can deliver to customers the financial benefits brought about by effective and efficient blasting methods,” Collins says.

But it’s not just employees who benefit from Orica’s graduate program. Preston says initiatives like the sustainability committee have positioned the company to attract and retain the best and brightest talent.

“For Orica, our graduates are our future pipeline. They will be our leaders, our technical and functional experts,” she says.

“We have outstanding graduates and investing early retains them and allows us to develop the type of leaders we want for the future.”

Andrew Collins gained valuable leadership skills in Orica’s graduate program

TRAINING & DEVELOPMENT

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MACMAHON NAMED apprentice employer of the year MINING AND ENGINEERING service provider Macmahon is driving its 2014 apprenticeship program under the banner of ‘Apprentice Employer of the Year (northern region)’.

Announced at the inaugural CCI Apprentice Solutions Employer Excellence Awards in Perth late last year, the award recognised Macmahon’s commitment to providing tailored training and upskilling to young people through its outstanding apprenticeship program.

No stranger to the spotlight, Macmahon has previously received recognition for its apprenticeship program at both state and national levels.

Macmahon apprentice coordinator Jason Cullen says the award is testament to the focus Macmahon places on providing specialised training for young people wishing to enter the resources industry.

“Macmahon is committed to apprentice training and we believe apprentices are an integral part of our future

development as a company,” Cullen says.

“This award will help build awareness about our excellent apprenticeship program and allow us to attract our future workforce and leaders of tomorrow.”

Macmahon’s apprenticeship program delivers a combination of both on and off the job training, with a focus on providing tailored training for apprentices.

Each apprentice also completes rotations at Macmahon’s underground and surface mining operations, and further off the job training is delivered through an RTO. CEO Ross Carroll says Macmahon’s tailored approach to training was a leading factor in the program’s success and has increased the quality and skill level of apprentices employed by the company.

“Our success highlights the very high standard of work put in by everyone at Macmahon, including our supervisors, tradespeople and the apprentices themselves,” he says.

YOUR BEHAVIOURAL style DISCovered QUALIFICATIONS AND EXPERIENCE aside, the ability to adapt to various work environments is a strong, if not underrated, asset to bring to an organisation.

For this reason, many employers put an emphasis on hiring people with the right personality for a particular team, division or organisation.

But is there a formula for matching the right person to a specific role or group of people to a work team?

According to AMMA training and development consultant Geoff Timmerman, it is more about the way people behave than personality.

Timmerman adapts the DISC personal assessment tool to improve teamwork, leadership and communication within resource organisations by helping people to understand their own dominant behavioural traits and those of the people they work with.

“DISC is primarily about behaviour and centres on four key behavioural styles; dominance – how you approach problems and challenges, influence – how you deal with people, steadiness – how you respond to pace and consistency, and compliance – how you respond to procedures and constraints,” he says.

“We all have characteristics from each of the four behavioural styles, but generally we will have one or two dominant styles.”

Far from putting people into categories where, for example, a high score in GEOFF ‘dominance’ (outgoing, fast-paced and TIMMERMAN task-orientated) identifies someone as a successful leader, Timmerman says the power of DISC lies in the opportunity for someone to modify their behaviour to get the best out of the people they work with.

“There’s no one particular style that is indicative of a strong leader or a better team player or a better communicator,” he says.

“One of the key takeaways from the DISC program is how you can adapt your behavioural style to suit the people you deal with.

“Managers learn how to motivate their people, how to lead them and what tasks to give them.

“For example someone with a strong ‘compliance’ behavioural style will want to weigh up all the facts and information in order to confidently make a decision.”

But to properly understand other people, Timmerman says one must first understand themselves.

“It involves self-reflection to begin with. You need to be aware of your own behavioural style and determine what your traits are first. Until you do, it is very difficult to understand others and be more effective in the workplace,” he says.

| Autumn 2014 | www.amma.org.au

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MIGRATION

IMMIGRATION MINISTER CHANNELS Howard’s support for skilled migration IMMIGRATION AND BORDER Protection Minister Scott Morrison has promised to return Australia’s skilled migration programs to the Howard Government’s positive approach.

“The cornerstone of the Howard Government was our commitment to skilled migration and we will return to that foundation,” Minister Morrison has declared.

“During the Howard years the percentage of Australians who were concerned about immigration levels being too high almost halved from more than two-thirds to just over one-third. Over the same period our permanent immigration intake doubled.

“Over the course of that government, the percentage of skilled migrants in the permanent program rose from the less than 30 per cent under the Keating Government to almost 70 per cent at the end of the Howard Government.”

The minister wants Australia’s migration system to be based on the economic participation of migrants. A key focus will be strengthening permanent skilled migration.

“Around 68 per cent of people migrating to Australia permanently come under the Permanent Skilled Program and it is a critical focus of ours that we keep it that way, if not even higher,” he says.

“Australia’s permanent employer-sponsored migration program plays a pivotal role in ensuring businesses right across the country, regardless of where their workplace is, can find skilled workers to fill genuine vacancies – and I stress genuine vacancies – where they emerge.

“A business that has to shut its doors because it can’t source the skilled workers it needs employs no one.”

The Coalition Government will also support temporary skilled migrants who wish to stay in Australia.

“The employer sponsored program shows significant benefit to Australia, with migrant employment rates of 98 per cent on any given year; the best performing element of the program by far,” says the Minister.

A business that has to shut its doors because it can’t source the skilled workers it needs employs no one.

SCOTT MORRISON

www.amma.org.au | Autumn 2014 |

“More skilled people now arrive on a temporary visa and, then having proven themselves and decided they’d like to stay in Australia, find an employer who is willing to back them.

“These are exactly the productive migrants we want to encourage to stay.

SCOTT They have worked in our country. They MORRISON have paid taxes from day one.”

On the issue of temporary skilled migrants, Minister Morrison characterised the former Labor Government’s changes to the 457 visa program as ‘heavy-handed regulation and red tape that stifles business productivity, ingenuity and creativity’.

He says the current points test system introduced under the Howard Government such as skilled employment experience and English language proficiency will be reviewed to ensure the skilled migrants coming to Australia can fully participate in society and the economy.

“457s have been a mainstay of Australia’s skilled migration program since their inception in 1996. The program is flexible and responds to the economic cycle in line with employer demand.

“The Coalition has always approached this issue from the starting point that wherever possible, jobs should be filled from within the Australian workforce. That is our clear commitment and that is our goal.

“But where those skills are not available and that can be demonstrated, migration can and should play a vital role in supporting Australian business and creating Australian jobs.

“It provides the labour and, importantly, can facilitate the process of getting workers out to the sites where they are actually needed, whether in major infrastructure projects or in other places around the country.”

The minister also touched on the Coalition’s plan for the Significant Investor visa, saying the program was sabotaged by poor Labor Government implementation.

“Effectively what I’m saying is the program needs to be rebooted. We need to get it back and ensure the processes are right and the criteria is as it should be and that is the work we are going through at the moment,” he says.

“The $5 million invested under the Significant Investor visa should be the first of hundreds of millions that would flow from someone making this decision to come and live and settle and become part of our community and an Australian citizen.

“We think people who create business, people who risk their capital, people who go out there every day and create jobs off their own effort and off their own enterprise is what we need to see more of in this country and certainly within our immigration program.”

MIGRATION

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Coalition reverses excessive 457 LABOUR MARKET TESTING THE COALITION HAS taken decisive steps to undo some of the former Labor Government’s 457 visa amendments by exempting highly skilled occupations from the labour market testing requirement, with engineering as the exception.

Assistant Minister for Immigration and Border Protection Senator Michaelia Cash says the changes reflect the Coalition’s plan to take a sensible approach to skilled migration.

“The Abbott Government is committed to ensuring the Subclass 457 program acts as a supplement to, and not a substitute for Australian workers, and the government fully supports the principle that Australian workers have priority,” Senator Cash says.

“But to bind employers up in needless red tape will only stymie Australian business and cost Australian jobs over the long run.”

Guidelines from the department recognise a broad range of recruitment activities as sufficient for meeting the labour market testing requirement, the evidence of which will be valid for 12 months.

Occupations that are ANZSCO as Skill Level 1 or 2 are exempt from labour market testing. These include occupations that

require an Australian Degree Level qualification (or five years recognised experience) and occupations that require an AQF Associate Degree, Advanced Diploma or Diploma qualification (or at least three years of relevant experience).

The Coalition did not include engineering or nursing on the exemption list. Under the current arrangement skilled migration applications for these occupations must be subject to labour market testing.

However, exemptions will apply in a small number of cases in which labour market testing would conflict with Australia’s international trade obligations or in the event of a major disaster.

Labour market testing laws were passed during the former government’s last parliamentary sitting in June 2013, despite concern from business groups that adequate consultation time had not been allocated to the highly contentious issue.

“In implementing this legislation the government has therefore been mindful that affected parties have been consulted to ensure that its implementation is done in a practical way, which accounts for its impact on Australian businesses and Australian workers alike,” Senator Cash says.

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MIGRATION

PRODUCTIVITY COMMISSION WARNS against skilled migration restrictions The Productivity Commission has released a comprehensive draft report into labour mobility in Australia that warns against imposing excessive restrictions on recruitment practices for far remote areas – including the hiring of temporary skilled migrants to fill critical skills gaps.

THE DRAFT REPORT, Geographic Labour Mobility, is presented by Assistant Treasurer David Bradbury with the principle aim to ‘examine patterns of mobility, impediments and enablers, and their effect on the ability to meet Australia’s continually changing workforce and employment needs’.

“Geographic mobility is especially valuable in an evolving and multi-speed economy, helping people to adapt and connect with the job opportunities available in different regions of Australia, including outer metropolitan and non-metropolitan locations,” the draft report says.

“Enabling geographic mobility can help to relieve labour shortages, increase skills utilisation and improve earnings.”

The 346-page report is among the most comprehensive publications into labour mobility in Australia, with many relevant findings to the national resource industry, including an analysis of the benefits and drawbacks of drive-in, drive-out (DIDO) and fly-in, fly-out (FIFO) work practices.

In relation to temporary migration, the report finds Subclass 457 visa migrants have been effectively ‘used across a wide range of industries, and have been important in filling skills shortages’.

“Employers are using a range of labour sources in order to find the skills they require and are sourcing workers from a much wider geography than in the past. The increased use of FIFO practices and temporary immigration, such as 457 and working holiday visas, has been critical to meeting labour demand in many parts of the country,” the report says.

Under Section 9 Employer Strategies, the report breaks down the skilled migration practices of various sectors and for the

www.amma.org.au | Autumn 2014 |

resource industry, highlights that the workers are provided the same wages and conditions of their Australian counterparts and that the industry has largely benefited from this practice.

“The resources sector contends that employing international workers on Subclass 457 visas has been effective in helping the mining industry overcome skills shortages, and that without skilled migration, the mining industry might not have been able to respond as well to demand during the past decade,” the report says.

“It has also been noted skilled immigrants play an important part in improving the local workforce through general knowledge and skills transfers.”

A number of AMMA submissions on issues of labour mobility and skilled migration policy were referenced throughout the report as strong contributors to the research.

The Productivity Commission is reviewing written submissions and is due to submit a final report to the Australian Government

by May 2014.

The Productivity Commission’s recommendations to increase labour mobility also include: • Reducing housing-related stamp duties; • Improving geographic mobility assistance for unemployed; • Improving housing supply through efficient planning and flexible land release, and review of the Commonwealth Rent Assistance program; and • Addressing delays in national occupational licensing reforms.

MIGRATION

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VET KEY TO social inclusion A RECENT STUDY has identified vocational education and training can play a critical role in the social inclusion of skilled migrants and their families.

The National Centre for Vocational Education and Research (NCVER) study focused on the Greater Shepparton region in Victoria, an area with an expanding number of migrants.

The report, Skilled Migrant Women in Regional Australia: Promoting Social Inclusion Through VET, considers the settlement experience of skilled migrants and their spouses, predominantly women, who arrive in Australia with skills, qualifications and experience.

NCVER general manager research Sue Fergusson says settlement is compounded in regional areas with limited labour markets and few strategies in place to support transition for skilled migrants.

“The research asks us to consider skilled migration from the perspective of the family unit, as spouses are often wellqualified, highly skilled professionals with much to offer,” Fergusson says.

“VET institutions can assist the spouses of skilled migrants by explaining and offering recognition of prior learning and providing advice on how educational opportunities relate to

jobs in the Australian context.”

Principal author Monash University Professor Sue Webb says the research did find some good practices in the university sector that enhanced individual migrants’ employability skills.

“They involved support in relation to job seeking, local work experience, volunteering and an understanding of specific professional networks and labour markets,” says Webb.

“Skilled migrants are very adept at developing their capabilities and building new networks to gain work and integrate. Organisations would do well to recognise and build on such resourcefulness.”

The research asks us to consider skilled migration from the perspective of the family unit, as spouses are often well-qualified, highly skilled professionals with much to offer.

SUE FERGUSSON

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COVER STORY

QUALITY OF LIFE:

SODEXO FASTTRACKS WELLBEING PROGRAM

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COVER STORY

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With four years of university research and an offshore trial under its belt, facilities management provider Sodexo is helping its clients up the ante on employee wellbeing. As its Well Track program builds momentum, Australian CEO Johnpaul Dimech explains how Sodexo intends to ensure Aussie resource workers are the most productive, healthy and happy in the world.

WORKING AS A service hand on offshore oil rigs has its perks for 25-year-old Danny – not least the great pay, flexibility and an exciting work environment unlike any other.

But, like many people around the globe employed on remote resource projects, the inherent health demands – both physical and mental – can take their toll.

Simple household issues like a broken washing machine can leave Danny feeling helplessly withdrawn from home life as he fixates on his girlfriend tending to such problems alone. His eating habits and exercise routine also fall away when off-roster.

His colleague, David, 27, can become depressed when missing friends’ birthdays and the weekend social events most take for granted.

OHS adviser Ruth is concerned about managing physical fatigue on the rig, with workers starting shifts after long travel, late nights and early starts.

This insight into the health and mental pressures of the resource industry could easily have come from any one of the 125,000 Australians working away from home on remote sites.

However, this feedback came from the other side of the world in the Atlantic North Sea, where in 2009 the University of Aberdeen was helping Sodexo research and develop the pilot program for its new comprehensive wellbeing initiative, Well Track.

While its primary role was to ensure Dolphin Drilling’s offshore rig workers were well-fed and well-slept, Sodexo saw an opportunity to add greater value to its client’s bottom line by delving deeper into the workers’ overall mental and physical wellbeing.

The successes included weight loss, reduced blood pressure and increased job satisfaction, paving the way for the launch of Well Track into a larger and equally complex environment – the

Australian resources sector.

“Late last year, all key elements of the Well Track program were implemented at the 750-man Prominent Hill camp in South Australia. This is the first site in Australia and the first onshore mining operation globally to receive this program,” says Sodexo Australia CEO Johnpaul Dimech.

A 15-year veteran with the global facilities management company, Dimech and his teams deliver food services, hospitality and technical expertise to onshore and offshore resource operations across Australia.

He has no doubt the nine-month pilot at Prominent Hill will prove a roaring success for both his company and its client, copper-gold miner OZ Minerals, as they collectively focus on improving safety, absenteeism, employee health and engagement, and staff turnover.

“The success of the Well Track offshore pilot will be replicated onshore in Australia because, regardless of the location or sector, we will always be a people business.

Sodexo doesn’t produce nuts and bolts or mine for resources; our people deliver critical services that improve the quality of life of those we serve,” says Dimech.

“While an offshore environment and an onshore environment are very different, there are many similarities in terms of how we manage the wellbeing of our clients’ workforces. At times they all face issues of being isolated, working away from home and doing long hours in demanding environments.

“Well Track is an excellent example of how a company like Sodexo can innovate and design a solution to these challenges at a global level, deploying it across many unique sites around the world.”

In an industry renowned for its uncompromising focus on looking after its people, Well Track is more complete than any other wellbeing and wellness program in the market. Focusing on employee health and wellbeing both at work and at home, it covers many of the physiological and psychological factors that impact on-the-job performance. »

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COVER STORY

» The three components of Well Track include a tailored physical fitness, nutrition and healthy lifestyle program; the ‘Home Away’ segment that provides support services to workers and their families; and an interactive ‘Web Motivation Centre’, which uses rewards and incentives to keep participants committed to their wellbeing goals.

In adapting this initiative for the local market, Sodexo Australia went beyond the North Sea trial and commissioned Queensland University of Technology (QUT) to gain unique insight into the Australian onshore resources sector.

QUT’s research analysed the physical and mental issues associated with working and living on remote sites while also developing robust KPIs and participant questionnaires to measure and validate the success of the program.

“The positioning is really around how we can improve the overall quality of life of the people that we provide services to around the globe,” says Dimech, who represents his specialist sector on the Australian Mines and Metals Association

(AMMA) Board of Directors.

“Sodexo provides services to 75 million consumers daily across a wide range of services and markets. We have really looked at how we can help our clients address business issues that impact their people as well as their bottom line.

“In Australia, we are leading the industry in terms of understanding and innovating in our approach to this area.

The early feedback from Prominent Hill has been very positive and the signs very encouraging.”

CULTURE AND COMMUNICATION The facilities management sector demands a unique, multi-faceted people strategy.

Not only does Sodexo need to constantly offer new, innovative programs like Well Track to better service its client’s workforces, the company must also implement a range of engagement and cultural strategies for its own 6000 Australian employees.

With all services delivered by staff at the coal face, Dimech is focused on

A key strategic priority is to really understand the needs and impacts on the end consumer of our services. In doing so, we are adding real value to our clients by focusing on their most valuable asset – their people. www.amma.org.au | Autumn 2014 |

WELL TRACK BY SODEXO PART 1 – Fit 2: Effective and engaging new ways for a healthier lifestyle.

PART 2 – Home Away: A virtual concierge for participants and their families.

PART 3 – Motivation: Rewarding participants for accumulating wellness points.

maintaining the right cultural aspects within the organisation. This is especially critical given Sodexo’s range of entrylevel, semi-skilled and skilled roles.

“A fair percentage in our workforce come into our organisation as unskilled labour, but those different skill levels and roles don’t make certain employees any less valuable to our organisation or their impact on our clients,” says Dimech.

“We are a decentralised business with people out in the field, on clients’ sites and running accommodation villages.

Whether we are providing technical services or food services, they are really making a difference to the daily lives of our clients’ employees.

“Having people with the right mindsets

COVER STORY and behaviours as well as technical skills to deliver this wide scope of work is absolutely paramount. We also ensure we can retain our people by investing in their training and development. The recruitment market is just too competitive not to do so.”

Dimech continues to spend a great deal of time onsite with Sodexo’s people and clients to better understand the key challenges for the business. He also encourages the flow of practical advice from Sodexo’s remote sites to the boardroom through monthly webinars involving onsite managers.

“Our bespoke Onsite Insights Program ensures we have direct communication with our frontline; that information regarding our strategy and key performance indicators is being heard first-hand and not cascaded through multiple sources,” he says.

“For our people delivering our frontline services, it has certainly been well received and much appreciated that they are regularly hearing from me as the leader of the organisation and they understand what our priorities are and how we’re improving the business.”

Many of Sodexo’s onsite staff may be surprised to find a member of the executive team occasionally donning a chef’s hat, cleaning gloves or landscaping tools to work alongside them for a week.

“This program is very important to how we engage and understand our workforce. Our staff don’t see our

leaders coming on site to talk to them as executives, but rather to spend a week as a frontline employee,” says Dimech.

“This has been a huge engagement opportunity for us.”

GROWTH AND COMMUNITY Before being appointed CEO of Sodexo Australia in 2009, Dimech worked extensively across Asia, including China, Singapore and India.

Describing his time in India as ‘particularly amazing’, the experience affirmed the importance of implementing a global platform of business ethics and operational systems while respecting a different national culture.

Now eyeing a new phase of growth in Sodexo’s Australian operations as the resource industry transitions from record construction activity into a strong production phase, Dimech is most proud of the company’s safety performance and corporate social responsibility achievements.

He notes that alongside its clients Rio Tinto and BHP Billiton, Sodexo was recognised for its Indigenous work in the Business Reference Guide to the UN Declaration on the Rights of Indigenous People.

“We’ve built a culture where safety, workforce diversity and social responsibility are part of how we do business. Our engagement with Indigenous communities in Australia has

Sodexo will always be a people business. Whether providing technical services or food services, our people are out in the field, really making a difference to the daily lives of our consumers.

SODEXO IN NUMBERS Globally (as of September 2013): • 428,000 employees across 33,300 sites • Servicing 75 million consumers daily in 80 countries • AU$27 billion in annual revenue In Australia: – 6000 employees across 300 sites – Servicing more than 105,000 consumers daily – $885 million annual turnover – 20% annual revenue growth.

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been particularly successful,” he says.

“Sodexo Australia has just finished developing our third Reconciliation Action Plan, which has really helped us strategically position what we want to achieve in this important area. It has kept us committed and accountable to Reconciliation Australia, our employees, our clients and the general public.”

Commercially, Dimech has focused his leadership on both diversifying and growing the services Sodexo provides to its clients. Importantly, he says the company has shifted its focus from a ‘business to business’ strategy, to a ‘business to consumers for business’ strategy.

“We’ve evolved to focus more on the benefits for the actual consumers who in turn are our clients’ employees receiving our services onsite every day,” says Dimech, explaining the terminology.

“That’s been a key strategic priority – to really understand the needs and impacts on the end consumer of our services. In doing so, we are adding real value to our clients by focusing on their most valuable asset – their people.”

As the Well Track program makes its initial impact at Prominent Hill before its inevitable rollout to remote sites nationwide, Sodexo’s strategic focus on delivering value for its clients through looking after their people will only intensify.

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DIVERSITY

ALL ABOARD: Farstad navigates path to diversity With women comprising just 2 per cent of seafarers worldwide, gender diversity is a major priority for the maritime industry, and vessel operator Farstad Shipping is at the helm of the challenge.

WHEN IT COMES to the attraction and retention of women, the Australian resource industry has ramped up efforts to diversify its workforce during recent years of unparalleled growth.

Employers, industry associations, unions, universities and women’s groups have banded together to break down traditional barriers and ensure there is nothing stopping women from donning a hard-hat, steel-capped boots and a highvisibility vest in an exciting resources role.

The challenge is far from over, but if you think the mining sector is facing an uphill battle in turning around its male-dominated image, spare a thought for the industry’s maritime sector.

Worldwide, it is estimated that around 2 per cent of seafarers are women and Farstad Shipping managing director Wayne Aitken says that is generally representative of its 650-strong seagoing workforce.

“Within this 2 per cent of female seafarers worldwide, around 20 per cent work in the cruise industry. We are in a sector of the offshore industry that is traditionally less attractive to women,” says Aitken.

“Certainly within our Australian office-based workforce we have a strong overall gender split with 45 to 50 per cent of positions occupied by women.

“But we are trying to move more women into non-traditional operational and senior management roles, and to do that we have to build our reputation as an employer of choice.”

Farstad, which provides shipping services to Australia’s oil and gas projects, stepped forward for the first ever assessment in the Australian Women in Resources Alliance (AWRA) Recognised Program.

Facilitated by national resource industry employer group AMMA in partnership with the Australian Government, AWRA Recognised is the first industry-specific gender diversity

Farstad vessel ‘Far Sword’

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endorsement program based on a rigorous model of organisational capability.

“Bearers of an AWRA Recognised stamp have had their workplace policies, procedures and practices formally assessed against best practice management of workplace gender diversity,” says AMMA executive director WAYNE industry services Tara Diamond.

AITKEN “The program recognises organisations at different stages of their journey with a bronze, silver, gold or platinum stamp that can be used in recruitment campaigns and internal communication.

“Farstad Shipping received a silver rating, which means that like many small to medium-sized organisations, they are at the ‘aware and building’ stage of their diversity journey. They understand the business case and have the beginnings of an effective diversity program to truly benefit from a greater proportion of women throughout the organisation.”

During the assessment, key Farstad Shipping employees, including seagoing, shore-based staff and senior management, were interviewed across a range of dimensions, including cultural integration and acceptance, vision and management of existing diversity policies.

“Despite never having a formal strategy to increase workforce gender diversity, I knew when we embarked on this assessment that the feedback would be encouraging,” says Aitken.

“We have always had good paid maternity leave policies and programs to assist women to return to the workplace after maternity leave.

“We also offer flexible working arrangements for all staff and make it clear during recruitment that we are an equal opportunity employer.

“Although we struggle to attract female applicants to seagoing roles, we do support learning and development, and encourage our female staff to succeed. We work hard to ensure there is no glass ceiling on our ships.

“The women who were interviewed were very positive about the company and what they’ve been able to achieve.”

Even with established support programs in place for its female workforce, like many organisations in the wider industry, Farstad Shipping realises these initiatives are no longer enough to gain a competitive edge over the competition.

The evidence overwhelmingly supports the need for industry to raise the bar further to embed an ethos of diversity in all aspects and all levels of an organisation. Aitken says he is leading the

DIVERSITY

charge to progress this transformation at Farstad Shipping.

“We started by introducing a values workshop for all staff to meet and discuss Farstad’s values and direction, and are in the process of creating a diversity committee that will assist in developing a formal program and action plan,” he says.

“We also aim to improve communication through a company intranet site and have created a new liaison officer role that will act as a bridge between our office and seagoing staff to really build a culture of inclusion.

“Taking on more entry-level women is also important and we hope to soon welcome our first female trainee engineer.”

Aitken firmly states these changes will be driven from the top of the organisation, with commitment and focus from all Farstad global offices.

“The industry’s increased focus on workforce diversity is systematic of the Australian situation where we’ve experienced phenomenal growth and subsequent widespread skills shortages,” he says.

“Our aim is to take the recommendations from the program and incorporate workforce diversity into our global brand.

“We are certainly looking at all areas because over the next 12 months we’re going for the AWRA Recognised Gold.”

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Farstad has achieved AWRA Recognised Silver for its efforts to improve workforce diversity

INSPIRATIONAL AUSSIE women make top 100 THE AUSTRALIAN RESOURCE industry is celebrating 29 of its accomplished women after they were named among the most inspirational in a competitive global report.

Taking out almost one-third of positions in the Women in Mining UK’s 100 Global Inspirational Women in Mining report, the Aussies helped showcase the significant impact of women within the resource industry worldwide.

The list was created to identify role models in the industry through a collaboration of women in mining groups from Australia, the UK, Canada, South Africa and the United States.

“It is widely acknowledged inspirational role models can play a large part in inspiring a new generation of professionals and we aim to facilitate development in this arena,” Women in Mining chairman Amanda Van Dyke says in the report.

“Those we selected stand out in a number of ways. They have a lasting impact on the industry. They support other women in mining, and the communities and environments impacted by the industry.”

Australia’s high-achieving women span a range of

disciplines and career stages, including: • Fran Burgess, Perilya Ltd’s general manager projects and group metallurgy, an experienced mining executive whose 35-year career has seen her oversee safety, health, community issues at mines across the globe; • MMG’s Century Mine operations manager Sandra Collins was the first woman to study mining engineering in Queensland and only the second in Australia. She has helped secure paid maternity leave, flexible hours and equitable pay and policies for many women in the industry; • Fortescue Metals Group’s Cloudbreak Mine general manger Julie Shuttleworth has 20 years’ experience in the industry and is committed to the career development of individuals in mining, participating in formal and informal mentoring programs; and • Newmont Mining dump truck operator and trainer Lisa Mirtsopoulos’s enthusiasm and passion for the industry led her to create Dump Truck Discovery, a website informing and encouraging people to take up the profession.

The full list is available via womeninmining.org.uk

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DIVERSITY

GENDER REPORTING TO build bigger picture HELEN

MANY RESOURCE EMPLOYERS will soon report to the Workplace Gender Equality Agency (WGEA) under requirements its director Helen Conway says will turn talk into tangibles.

“At the organisational level there is so much research now,” Conway says.

“Stop the research, stop the talking and start the doing because the research has established that gender equality leads to better organisational performance, greater access to talent and competitive advantage.”

The WGEA is an Australian Government agency responsible for administering the Workplace Gender Equality Act 2012 (previously the Equal Opportunity for Women in the Workplace Act 1999).

Private sector employers with more than 100 employees are now required to report annually against a set of standardised Gender Equality Indicators (GEIs) designed to directly address gender equality challenges such as workforce composition and remuneration.

The first annual reporting period ends 31 March 2014, while the

CONWAY next stage (to March 2015) will require these employers to meet a set of minimum GEIs and standards established by the government.

While the business community has expressed concerns about the potential compliance burden and detraction from their own gender equality practices, Conway insists the agency will remain a ‘soft-touch regulator’.

“Essentially the reporting will be a workplace profile – a surveytype questionnaire. It will be done online with drop-down menus and the agency will release guidelines on how to report,” she says.

“It is exciting because there’s no other jurisdiction in the world that has this data. Canada and many South American nations have very similar reporting mechanisms but they are not as comprehensive. Australia will have the best picture of gender equality in the world.

“Considering the contribution the resource sector makes to the Australian economy, it has the potential to make a great impact in the gender space.”

Jobseeker forum opens PATHWAYS FOR WOMEN MORE THAN 150 women eager to pursue a mining career had the opportunity to directly engage with employers and enrol in fully-funded training at a recent AMMA jobseeker forum in Brisbane.

“We offered Queensland women the opportunity to gain insight into the diverse roles on offer across Australia’s resource industry – from engineering and technical roles through to support services such as catering, cleaning and maintenance,” says AMMA executive director industry services Tara Diamond.

Designed to bolster the number of women working in the industry, the Connecting Women Jobseeker Forum was developed with Australian Government funding as part of AMMA’s workforce development project AMMA Skills Connect.

“The forum’s attendees spanned a range of skill levels, from university students to existing workers and unemployed – all looking to take part in Queensland’s burgeoning resource industry,” says Diamond.

“In addition to hearing from industry experts, a number of eligible attendees kick-started a new career in the support service sector by enrolling in a fully-funded Certificate III in Hospitality with the Sarina Russo Institute.

www.amma.org.au | Autumn 2014 |

“For all of the forum’s female jobseekers, learning more about the various mining projects in Queensland and nationally, and receiving direct advice from employers could provide the boost they need to embark on a rewarding resources career.”

With some previous truck driving experience, jobseeker Johanna Wilson attended the forum to learn more about upcoming job opportunities and network with employers.

“I thought [the forum] was a fantastic wealth of knowledge and I enjoyed all of the presentations. I was also able to do some great networking and make some contacts with the presenters, especially with Thiess, who I have a great interest in working for,” she says.

The AMMA Skills Connect initiative complements the work underway by the Australian Women in Resources Alliance, which aims to increase the level of women in the resource industry from 15.5 to 25 per cent by 2020.

Attendees heard from companies including Thiess, Caltex Australia, Easternwell, Assetlink, Cater Care Services, Aero-Care, Diamond Protection, miningoilandgasjobs.com, Sarina Russo Institute and AMMA Skills Connect.

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DIVERSITY

Employers support ‘WAY FORWARD’ STRATEGIES AMMA MEMBERS HAVE backed a national education campaign to boost competitiveness, productivity and economic growth through increased women’s participation in the mining, energy and allied construction sectors.

Through AMMA’s government-partnered initiative the Australian Women in Resources Alliance (AWRA), the campaign promotes top-down leadership towards greater gender diversity, backed by tools and information through its online Way Forward Guides.

AMMA chief executive Steve Knott says hundreds of employers and HR professionals attended a series of workshops held across the country to discuss how the guides’ strategies can be used to break down barriers to female participation, from attraction and recruitment to culture, mentoring and work-life balance.

“The AWRA Way Forward Guides provide the resource industry’s first end-to-end toolkit of practical business strategies to assist employers to attract and retain women workers,” Knott says.

“They assist HR professionals to build a compelling business case for gender diversity and shore up organisational support and executive leadership toward this vision.”

The guides contain several case studies highlighting diversity

success in the resource industry, such as: • Anglo American Metallurgical Coal’s innovative recruitment campaign promoting their top female talent to achieve a ‘pipeline’ target of 75 per cent women among new recruits; • Caltex’s BabyCare initiative designed to increase staff retention by providing financial and practical support for new parents returning to work; and • A career development partnership between OZ Minerals and Beach Energy providing strategic training and development opportunities to assist women toward their career goals.

“These case studies show some resource organisations are already pioneering the diversity business case. However, Australia is ranked outside the top 20 countries in the World Economic Forum’s Global Gender Gap Report, so clearly there is much work still to be done,” Knott says.

“This type of change must be driven from the top of an organisation and workforce inclusion must play a central role in normal business practice.”

The AWRA Way Forward Guides can be downloaded from www.amma.org.au/awra.

ExxonMobil fuels STAFF CHILDCARE CENTRE A LACK OF convenient and affordable childcare is often a deal-breaker when new parents weigh up a return to work.

Luckily for ExxonMobil Australia’s Melbourne staff, their employer has it covered.

Since 1993, the Emerald Hill Childcare Centre has provided ExxonMobil employees with prioritised high-quality childcare services within close proximity to its Melbourne head office.

Maintaining this valuable service is critical to the company’s focus on leading all industries in best practice parental support. This is why 20 years after opening the centre with three joint-venture partners, the oil and gas major has elected to continue its operation as its sole sponsor.

Operations technical subsurface manager Melanie Cook says this support enabled her to resume her career with ExxonMobil.

“I cherish the opportunity to have our children cared for in a place where the families know each other and where there is personalised attention to both childrens’ and parents’ needs. Emerald Hill is a very special place,” Cook says.

Chairman of ExxonMobil subsidiary Esso Australia, Richard Owen, says the company is focused on creating a working

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environment that encourages all employees to achieve their ultimate potential.

“As well as providing company-sponsored childcare places, over the years we have introduced many policies that acknowledge the needs of our employees,” Owen says.

“These include 15 weeks of paid parental leave in addition to the federal government’s scheme, workplace flexibility programs that allow part-time work opportunities, a childcare referral service and the recent introduction of return-to-work leave, which provides an additional week of paid leave in the first 12 months after returning to work to provide additional flexibility during this transition period for primary caregivers.”

Owen says Esso Australia’s return-to-work rate has been excellent as a result of these initiatives.

“Over the last five years, 96 per cent of employees who have taken parental leave have returned to work. In addition in 2013, 23 per cent of our executive-level managers are female. In a traditionally male-dominated industry this is a good representation, but we continue to work toward improving this even further,” he says.

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EAST-WEST PARTNERSHIP redefines mentoring experience They live 4,000km apart, but distance was no obstacle to Shauna Martin and Scott Pope’s enriching AWRA e-Mentoring experience.

SHAUNA MARTIN COULD not be happier that she ‘took the plunge’ and signed up to be a mentee in the flagship Australian Women in Resources Alliance (AWRA) e-Mentoring Program.

Admitting she was apprehensive at first, the geological database administrator is now an advocate for what a mentoring experience can offer aspiring women in the resource industry.

Working at MMG’s Golden Grove mine in Western Australia’s mid-west, Martin first saw the AWRA e-Mentoring Program advertised through her employer’s intranet.

“I think there’s always some non-formal mentoring in the workplace, but I’ve never had a formal opportunity like this presented to me before,” she says.

“It struck a chord and I thought it actually wouldn’t be too bad to put myself forward and to see exactly what I could get out of it.

“I’m really pleased I took the plunge and I often wonder had I not, perhaps I wouldn’t have professionally developed as much as I have.”

On the opposite side of Australia, Sydney-based Scott Pope discovered AWRA was looking for male and female mentors and saw the opportunity to apply his mentoring and coaching skills in a different way.

“I thought the AWRA e-Mentoring Program was a great opportunity to use diverse mentoring approaches,” says Pope, commercial manager retail markets at Origin Energy.

Pope believes the program breaks down the barrier of remoteness that can prevent women in male-dominated sectors finding the right mentor to provide dedicated professional support.

Through AWRA e-Mentoring, Martin and Pope connected regularly either by telephone, Skype or email and were supported through a structured nine-month program featuring training webinars and online tools.

SCOTT POPE

What’s great is that I wasn’t just limited to mentors in WA; there’s a whole nation involved across different resourcerelated sectors.

SHAUNA MARTIN

Despite working in different professions, they found common ground across similar career challenges.

“I’ve worked in a number of different organisations and have a lot of experience in the energy sector, so I have a sense of different workplace cultures and the dynamics of a generally male-dominated industry,” says Pope.

“When you are not bound to the same occupational category you can assess a situation without being locked in to a certain perspective.

“And as we’ve progressed through the program, the issues we deal with have broadened, so it’s an evolving relationship in that context.

“However, I didn’t come into this having all the answers. I just probably have more in my kit bag to draw upon as I reflect on my own career and compare it to the challenges Shauna has.”

Initially Martin assumed she would be matched with another woman in the industry, but has found Pope to be an incredible support.

“It’s interesting to get a male perspective on different challenges in the workplace,” she says “Building my confidence and developing pathways to achieve my career goals are some issues we worked on, but Scott also gave lots of little tips around time management and prioritising that I could instantly apply to my work.”

Most of all, Martin credits the program for bringing resource professionals from every corner of the industry closer together.

“What’s great is that I wasn’t just limited to mentors in WA; there’s a whole nation involved across different resource-related sectors. There is no way I would have connected with Scott if it wasn’t for this program and I wouldn’t change my experience for the world,” she says.

| Autumn 2014 | www.amma.org.au

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INNOVATION

ALPHA TO HARNESS cost-efficient technology At a time when Australia’s international competitiveness is being called into question, Alpha Coal is one of several emerging resource operations focusing on technical innovations to boost productivity and create smarter workforces.

ROMANTICALLY COINED THE ‘jewel in the crown’ of the Galilee Basin, GVK Hancock Coal’s Alpha Coal Project is on track to be the first to tap into Queensland’s next coal mining frontier.

The project is under the careful management of GVK Hancock chief operating officer Ross Willis, who believes innovation will position it at the forefront of global coal operations.

“We believe Alpha will be the largest operating open cut mine in the Southern Hemisphere and the way we are developing the project is the result of innovation,” says Willis.

“Alpha will look like no other coal mine you’ll see anywhere in the world because of the way we have configured it. We have been very fortunate with a very low, flat resource that dips to the west at only one or two degrees, and the geology is very benign.”

A quick look at the figures confirms Willis is not underestimating the potential of the project.

The most advanced of 10 mines proposed for the Galilee Basin, the $10 billion Alpha project is majority-owned by Indian conglomerate GVK in partnership with Gina Rinehart’s Hancock Prospecting.

Since 2010, the Alpha test pit has extracted 125,000 tonnes of thermal coal. From 2017, the project is expected to move

Alpha will look like no other coal mine you’ll see anywhere in the world. We believe it will be the largest operating open cut mine in the Southern Hemisphere and the way we are developing the project is the result of innovation.

ROSS WILLIS

The Alpha Coal Project test pit

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upwards of 30 million tonnes per year.

With additional coal projects including GVK’s Kevin’s Corner and Clive Palmer’s Waratah Coal becoming more advanced, the Queensland Government estimates development of the region will deliver $28.4 billion in investment, 15,000 construction jobs and more than 13,000 operational roles.

Willis is candid in explaining how GVK’s focus on innovative solutions comes down to ‘hard-nosed’ cost efficiency.

He believes under the right management and by utilising world-class technologies, the mine can be profitable for more than 30 years, delivering significant economic and employment opportunities to the region.

“Thermal coal is a low-margin product. Suppliers are especially sensitive to price and, with Alpha situated 500km from the coast, we do have an unrelenting focus on cost,” Willis says.

“It’s clear there is some work to be done in addressing Australia’s high-cost position and we think there are enormous opportunities for the country’s technology innovation industry to support that.

“We are not afraid to bring new technology entrants to the coal industry if they have something new and exciting to offer us. However, we are not into gadgets for gadgets’ sake. It has to demonstrate real value as a business case.

“For example, we have already made a decision that every employee will be carrying something like an iPad, because we want to be able to take information to employees and not have to bring them back to briefing areas. We want employees to undertake real-time decision-making.”

Willis says Alpha can best be described as a ‘mechanised’ project, but stresses incorporating automation where viable will not negatively impacted the people side of the business.

“There might be less people driving trucks and more people with higher-end electronic and computing qualifications. There won’t be a large change in workforce,” he says.

“A very large focus will be on the training of clean skins.

We’re of the view that if you want people to operate equipment a certain way, while it may cost you initially, it’s easier to take on clean skins and train them.”

Willis’s insight affirms technology innovation will become more prominent in the way the resource operations remain competitive in Australia in coming years.

The past decade may have been characterised by the unprecedented investment into capital and labour-intensive resources construction projects, but the scene is now set for new operational-driven innovations to spur the industry through its new phase of growth and prosperity.

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ASSETLINK EMPLOYEE offerings receive top award AN INNOVATIVE RANGE of employee offerings has seen integrated facilities service and project management provider Assetlink Services become just the third Australian company to receive certification by the global Top Employers Institute.

The annual international research undertaken by the Top Employers Institute recognises leading employers that provide excellent conditions to employees, nurture and develop organisational talent, and continuously optimise employment practices.

“We are honoured to be recognised by the Top Employers Institute’s 2014 certification, making us just the third Australian organisation in the Asia Pacific category to receive this accolade,” says Wayne Gobert, national general manager of Assetlink’s People and Culture team.

“This certification is testament to our commitment to continually look for ways to deliver effective and premier employee conditions that resonate with our team members.”

Gobert cites Assetlink’s Meet Them Where They Are program, which aims to connect its people working across

multiple cultures, as a prime example of the employment initiatives the company has developed to lead the market.

“This program utilised pictorial and multi-language training materials for which Assetlink was awarded the 2013 Cross Cultural Management Award by the Australian Human Resource Institute’s (AHRI) and the NSW BSCAA Innovation through People Award,” he says.

Johann Labuschagne is global accounts director for the Top Employers Institute and says participating companies must complete a stringent research process and meet the required standard to achieve the certification.

Assetlink’s total employee offering was assessed by analysing its primary benefits, secondary benefits and working conditions, training and development, career development and culture.

“Optimal employee conditions ensure that people can develop themselves personally and professionally,” says Labuschagne.

Assetlink delivers integrated facility services that assist businesses to manage their assets, operations and carry out projects.

| Autumn 2014 | www.amma.org.au

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INNOVATION

Innovation runs deep AT STORNOWAY Formed almost 40 years ago from a dairy farmer’s chance discovery of a profitable gravel resource, Tasmania’s Stornoway has become a competitive force in the mine services sector through its innovative water treatment solutions.

TIM GARDNER CREDITS his late father Alan’s ingenuity for seizing an opportunity to turn a struggling Tasmanian dairy farm into what is today a diversified infrastructure development and solutions business.

“It was driven by a fundamental resourcefulness of a farmer in the 1970s. Facing difficult conditions and changes in the operating environment, he identified a gravel resource on the farm and realised he could make more money selling gravel than milking cows,” says the Stornoway managing director.

Today, Stornoway continues to grow through innovation and recently scooped the Launceston Chamber of Commerce Business Excellence Awards – taking out both the Business of the Year and Excellence in Marketing accolades.

While traditionally working on state and local government road maintenance and quarrying contracts, in the mid-2000s Gardner identified a gap in the resources market in terms of the supply of water treatment services.

After strategically opening an additional office in Brisbane to better service the coal sector, Stornoway now provides drinking water and wastewater treatment and recycling solutions for resource worker villages from the west to east coast.

“As a Tasmanian company, there is opportunity beyond the shores of this island and it’s important for local companies to look to national and regional marketing opportunities, especially at a time when many businesses are doing it tough in the local economy,” Gardner says.

“Stornoway has evolved from design and build to just a few years ago moving into operations and maintenance, which

Stornoway provides water treatment solutions for resource project worker villages

www.amma.org.au | Autumn 2014 |

TIM GARDNER allows much more control over the ability of the treatment plant to meet the customer’s compliance requirements.

“It also manages our risk as a supplier and, like our road maintenance business, provides recurrent income, which means we are less exposed to the reduction in capital spend of mining customers and positions us well for the operational phase the industry is moving into.”

Gardner says the company is increasingly involved in treatment of contaminated waste streams but admits there have been hurdles along the way.

“There is an assumption that systems that work in urban or suburban areas can be taken out to a remote mining site, and that assumption doesn’t stack up. We’ve been through a lot of issues in getting the systems to work and through all that learning, we’ve built a great deal of technical expertise,” he says.

“Most of our workforce is based in the field as plant operators, labourers or trades people and it’s the small innovations and improvements that come from those people that really drive our growth, so we have focused on harnessing and capturing that.”

As environmental regulations become more stringent and acquiring a social license to operate a mainstay of the corporate responsibility agenda, Gardner has seen a shift in the way companies approach water management.

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“Our customers are recognising they are working with a scarce resource,” he says.

“There is certainly enormous opportunity to better harness water resources and develop technologies around treatment of contaminated groundwater, particularly given environmental regulations are getting tougher and there is a lot more onus on resource companies to deal with water on site rather than discharge it outside of a lease boundary.”

While he is focused on driving Stornoway’s growth nationally and internationally, Gardner believes Tasmania’s resource industry and related service sectors have much opportunity to prosper in the right regulatory environment.

“What investors are looking for is more certainty around planning and approvals processes. As a supplier, we see political risk as a major factor in determining whether or not to participate in a project,” he says.

“Having said that, the resource sector has always been a key part of the Tasmanian economy and I believe it always will be.

“So Stornoway will continue to grow but it’s very much about continuing to form long-term relationships with customers who have invested in large asset bases and need to operate and maintain them at the lowest functional cost for the most return.”

Shell’s floating Prelude TAKES SHAPE THE WORLD’S FIRST floating liquefied natural gas (FLNG) plant is on track to moor above Australia’s Prelude offshore gas field, 200km from the Western Australian coast.

Currently under construction at Samsung’s Geoje shipyard in South Korea, the $12 billion Prelude floating project is expected to begin production from 2016 and will remain in position for 25 years, producing 3.6 million tonnes of LNG per year along with liquefied petroleum gas and condensate.

The project received Australian Government environmental approval in 2010, but Royal Dutch Shell projects and technology director Matthias Bichsel says its innovative design has been a long time coming.

“I think it is worth highlighting that work on FLNG began at Shell in the mid-1990s – 15 years or so before the decision to go ahead with Prelude,” Bichsel says.

When complete, Prelude will span 488m long and 74m wide, making it the largest offshore floating facility ever built.

“Eventually, more than 600 engineers became involved.

Today, some 5,000 workers are busy at the shipyard in Geoje – one of the few with a dry dock large enough to accommodate the construction,” Bichsel says.

The project has come under heavy public scrutiny but Shell maintains the project positions Australia at the forefront of FLNG technology and contributes to the local economy through tax and flow-on benefits.

“A local independent consulting firm has estimated the Prelude project will contribute AUD$45 billion to the national economy over its 25-year life. Some of that money will go to the treasury as tax and some of it will go to Australian providers of goods and services,” Bichsel says.

“Then there are jobs to think about. It’s estimated the Prelude project will create 350 direct jobs and 650 indirect ones. And these in the main are not ‘boom-and-bust’ construction jobs but career-opening jobs in high-tech operations, maintenance and other services.”

Under construction: Shell’s Prelude is set to be the world’s first operational FLNG project

| Autumn 2014 | www.amma.org.au

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OHS & WELLBEING

FIFO WELLBEING program a soaring success The increase in remote projects has inspired resource employers to adopt innovative health and wellbeing solutions for FIFO workers, and John Holland’s Working Away Support Program is receiving praise from employees and families alike.

DURING THE PEAK of resource investment the demographics of John Holland’s workforce evolved substantially.

Within a few years the engineering, construction and service contractor had won contracts on most of Australia’s major resources projects. It now employs about 70 per cent of its project-based employees on fly-in, fly-out (FIFO) arrangements.

The change in its number of employees undertaking long distance commuting led executive general manager of energy and resources, Brendan Petersen, and his team to launch the pioneering Working Away Support Program in 2012.

“We saw the change in our workforce demographics and felt that our people support systems hadn’t evolved the same way as the markets we were working in,” Petersen says.

“During the resources boom, the attraction for work in remote sites was high, there was some good money to be made, there was opportunity for people to establish young families and reduce mortgages, but quite often people didn’t understand the real impacts of the situation they were entering.

“Through our annual staff engagement surveys and focus groups, we found the most critical issue for our FIFO employees was work-life balance.”

This feedback was recently echoed in a University of Queensland study into factors linked to the retention and wellbeing of FIFO workers.

BRENDAN PETERSEN

www.amma.org.au | Autumn 2014 |

The research found the benefits of the lifestyle outweighed any disadvantages, with the vast majority of the 286 respondents satisfied with their job security, salary and roster cycle. However, 60 per cent agreed FIFO demands interfered with home and family life.

For new John Holland employees, the Working Away Support Program begins with clear communication on the realities of a FIFO lifestyle, while their families receive a welcome pack including a ‘working away survival guide’, free membership to support network FIFO Families, links to online resources and discounts on maintenance, shopping, travel and childcare.

Suicide prevention organisation Mates in Construction was also engaged to train workers to identify telltale signs of mental health problems.

“We were absolutely convinced this program and these partnerships would reduce the impact of the FIFO arrangement on our employees and their families. This was a valuable platform to ensure they finished their day’s work in the safest possible way,” Petersen says.

“It is about getting all the information up front and centre so that people are as informed as possible when they make this choice. We aim to create more awareness and connectivity to support forums and to let employees know John Holland encourages their use of these resources.”

More than one year on from the program’s launch and while Petersen says it’s too early for concrete wellbeing and retention statistics, positive feedback has inspired the company to continue with its investment.

“We’re getting feedback that our employees appreciate the care we are providing and see it as valuable. We believe this translates through to their engagement on projects and the way they work with others,” he says.

“But some of the most inspiring feedback is from partners at home who have really benefited from the information provided and the connection to support networks such as FIFO Families.

“When you get this sort of feedback you know that you’re doing something right.”

John Holland’s return to work co-ordinator/junior safety advisor Louise Grewcock believes programs like her employer’s should be a priority for all organisations who want to build and retain happy and healthy FIFO workforces.

A FIFO worker herself, Grewcock commutes from her home in Sydney to Rio Tinto’s Cape Lambert Port B in the Pilbara, for which John Holland is constructing a wharf extension.

“The FIFO support is a great idea for young families but also for someone like me with no kids but who is finding the lifestyle

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John Holland’s FIFO employees are benefiting from the Working Away Support Program

Some of the most inspiring feedback is from partners at home who have really benefited from the information provided and the connection to support networks such as FIFO Families.

BRENDAN PETERSEN benefits attractive,” she says.

“There are many workers that couldn’t continue with FIFO work due to home stresses. Programs like this can change the lives of these individuals and allow them to continue working towards their family’s future.”

Grewcock finds the most benefit from the regular staff newsletters and discounts on goods and services, while her family has benefited greatly from links to online discussion forums.

And while the FIFO lifestyle isn’t for everyone, she says with a

bit of support it’s easy to focus on the positives.

“The key is to have a great support network both at work and home,” she says.

“Connections to organisations like FIFO Families allow the peace of mind of knowing that you have others in the area who are in the same situation and that the support isn’t as far away as you might think.

“I enjoy the challenges of the job. Every day there is something different, new and exciting, and it gives me a greater head start in life with being able to save for the important things like a house.”

With the pilot program a success, Petersen says his team will look at rolling out similar support programs throughout the John Holland business.

“We’re starting off by keeping the focus of this program on our FIFO arrangements but we’re thinking the next evolution will be to extend it to workers who may work long hours instead of away, or staff who travel internationally,” he says.

“In our industry, putting your hand up and asking for help isn’t necessarily what people do straight away. We like to encourage people that it’s perfectly okay to ask for and receive assistance and support.”

| Autumn 2014 | www.amma.org.au

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OHS & WELLBEING

Program shines light ON MENTAL HEALTH With depression threatening to cause six million lost working days in 2014, AMMA and corporate partner Davidson Trahaire Corpsych have teamed up to increase mental health awareness across resource industry workplaces.

IN THE TWO years since becoming the sole licensee to deliver Beyondblue’s National Workplace Program (NWP), mental health specialists Davidson Trahaire Corpsych (DTC) has contributed to its decade-long success of preparing more than 81,000 Australians to recognise and act on mental health issues at work.

MICHELE GROW Now embarking on a new series of the training workshops with the Australian Mines and Metals Association (AMMA) and its membership of resource industry employers, DTC CEO Michele Grow says education and awareness is key to bringing the all-too-often ignored illness out of the shadows.

“Mental health is an issue of increasing concern in Australia – approximately half the country’s population will experience a mental health condition at some stage in their lives,” Grow says.

“Of more concern is that more than 50 per cent of those people don’t seek help, even though effective treatments are available.

“Individuals are often reluctant to access help due to a lack of awareness about what is happening, a lack of knowledge about effective treatments and a concern about the stigma associated with disclosing a personal experience.”

Grow says when someone is grappling with the symptoms of a mental health condition – the most common being depression and anxiety – the devastating effects can spill across all areas of their life. She credits the Beyondblue training programs for giving workers the tools to help others in need.

“If left unsupported and untreated, the impact can be considerable not only for the individual, but also for their family, friends and colleagues,” she says.

“The Beyondblue programs have been shown to significantly increase awareness among managers and employees, improve attitudes towards mental health issues and increase confidence in assisting someone to seek help.”

As part of a push to tackle the high rate of male suicide, the workshops will be subsidised for male-dominated industries by the federal government’s Department of Health and Ageing.

AMMA executive director policy Scott Barklamb hopes AMMA members take advantage of the funded program and agrees the business case for investing time in mental health awareness training is strong.

“The demographics of the resource industry are becoming more diverse, but many operations across the nation are still male-dominated and many roles involve extended periods away from family and other social support networks. Sadly, the latest

www.amma.org.au | Autumn 2014 |

government statistics reveal men accounted for 76 per cent of deaths by suicide and more than half were of working age,” Barklamb says.

“The workplace can play an important role and employers are adopting a number of awareness and intervention strategies.

“Not only are these efforts making a real difference in people’s lives and addressing mental health in society more broadly, but there are also serious commercial factors involved.

“The impact on business operations can be staggering.

Beyondblue research indicates the potential costs from absenteeism and lost productivity reach almost $10,000 per untreated employee each year.”

Often the first point of call for organisations seeking support following incidents relating to mental health, Grow has some sage advice for employers.

“Don’t wait until you have an issue at hand – take proactive steps to participate in education and training to improve the health and safety of employees in your workplace,” she says.

In partnership with AMMA and ACCI (the Australian Chamber of Commerce and Industry), Davidson Trahaire Corpsych is now conducting the Beyondblue training programs at subsidised rates for AMMA members. For more information contact 1300 134 644.

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OHS & WELLBEING

PUTTING DRUG AND ALCOHOL procedures to the test Medvet’s Steve Korkoneas has received many phone calls from resource companies lost in the daunting world of drug and alcohol testing. He tells Resource People about some common pitfalls employers should avoid when developing their policies and procedures.

WITH SOME OF the most stringent health and safety obligations of any industry, it is no surprise drug and alcohol testing is a critical practice at resource operations across Australia.

As national operations and technical manager for Medvet – one of Australia’s STEVE largest providers of onsite health and KORKONEAS safety solutions – Steve Korkoneas says employers embarking on this area soon become aware of the intricacies involved.

“Many organisations require a third party provider to assist in writing their drug and alcohol testing policy and procedure,” says Korkoneas.

“It’s very important it is drafted in the correct manner and testing is conducted by a National Association of Testing Authorities (NATA) accredited collecting agency.”

Korkoneas says it is not unusual for employers to believe their drug and alcohol testing abides by all laws and regulations only to end up in from of a workplace relations tribunal due to it not being carried out by an accredited third party.

“I know of one case where the provider said they tested in the ‘spirit’ of the standards. Upon investigation, it was found they weren’t accredited to conduct any form of testing, let alone sample collection,” he says.

“So it’s crucial the initial conversation organisations have with a prospective service provider is to check they are NATAaccredited depending on the type of testing they will undertake.”

When it comes to deciding which type of testing to administer, the task can become even more confusing.

Conflicting Fair Work Commission decisions have more recently reignited the debate around urine versus oral fluid (saliva) testing and management’s scope to choose a method that best meets the operational and safety standards of the workplace.

With the Australian Drug Foundation reporting that drug and alcohol use is costing Australian businesses around $6 billion per year in lost productivity, and alcohol contributing to 5 per cent of workplace deaths and 11 per cent of non-fatal injuries, it is only natural employers want the most efficient and effective method.

Korkoneas says his resource industry clients will opt for onsite urine drug testing when they discover it is the only rapid, formally accredited onsite testing option.

“At this present time, there is no NATA-accredited agency to perform onsite oral fluid testing in Australia,” he says.

www.amma.org.au | Autumn 2014 |

“There are, however, organisations accredited to the oral fluid standards to collect and transport to an accredited laboratory, but the limitation is that instead of receiving a result in 10 minutes, it can take up to three working days once the sample has been collected and transported.

“By that stage, the employee could have gone into a mine or up a pole and killed themselves, or even worse, other people.

“This is the first point I make when a client approaches Medvet with a view to roll-out onsite oral fluid drug testing. After consulting with lawyers, they decide on an onsite urine drug testing program because there are NATA-accredited providers.”

While Korkoneas says the science backs urine testing over saliva methods, he acknowledges that critical operational decisions about the safety of employees should ultimately be made by those who assume the responsibility of providing a safe workplace – the employer.

In some instances, he says, employers prefer a saliva-based protocol and Medvet is equally supportive in providing its expert services.

Another common pitfall of drug and alcohol testing, according to Korkoneas, is that employers will draft and implement a policy without consulting with and educating all relevant stakeholders.

“Without buy-in from the relevant stakeholders you can’t successfully roll-out the program, so it is very important the initial step of drafting a policy and procedure involves stakeholder engagement,” he says.

“And before testing is undertaken there needs to be education and training. That can’t involve just sticking the policy and procedure in the lunch room. There needs to be formal education and training and sign-off from all relevant stakeholders to say they have received the policy and procedure and understand it.

“That way, if employees refuse to be tested and the matter is taken to the Fair Work Commission, employers can confidently prove all stakeholders were aware of the policy and procedure.”

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LEIGHTON CONTRACTORS wins with hazard app A NEW SMART phone application designed to analyse and diagnose hazards is one innovation that has seen a Leighton Contractors major energy construction project recognised for safety excellence.

The app, designed by Odyssey Risk Solutions for the Australia Pacific LNG Upstream Phase 1 Water Treatment Facilities project, is currently being trialled onsite via smartphones to analyse and diagnose hazards in the workplace.

A statement by Leighton Contractors describes the safety tool as ‘a quick and easy self audit inspection to help identify and correct safety hazards before they cause an accident or injury’.

The Queensland Project Safety Excellence Award also recognised the construction giant for its innovation and implementation of prevention strategies such as its Heat Stress Management program.

“Managing the health and wellbeing of workers, the program targets zero heat stress related incidents,” says Leighton Contractors.

“The initiative reduced the risk of heat stress, despite air

temperatures of 45 degrees and radiating temperatures of 57 degrees, the project to-date has had no instances of heat stress related injuries.”

Awards judging panel chair Harold Downes, says a combination of innovation, simplicity and executive commitment won Leighton Contractors the Award.

“Leighton Contractors’ success in raising worker awareness of onsite hazards through early adoption of technology, assisted in lifting the project above and beyond the competition,” says Downes.

Leighton Contractors has a $350 million contract to construct the water treatment facilities and storage ponds for the Australia Pacific LNG Project, operated by Origin Energy and ConocoPhillips in Central Queensland.

The facilities will treat water produced by the project’s coal seam gas wells, with a goal of producing water that can be used for irrigation.

Due for completion in mid-2014, the project will provide work for up to 1,000 people during construction.

| Autumn 2014 | www.amma.org.au

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FEATURE

CSG ENERGISING community connection Having spent more than 30 years in the global energy business, Arrow Energy CEO Andrew Faulkner is as qualified as anyone to promote the economic and employment potential of Australia’s vast natural gas reserves. Here, he explains how the Queensland energy company has been promoting the benefits of coal seam gas throughout the state’s regional communities and engaging in valuable Indigenous training and employment opportunities.

WHILE ARROW ENERGY’S proposed coal seam gas to liquefied natural gas project may not go ahead in Queensland, the Brisbane-based CSG company has been in the energy business for more than a decade and already holds a significant energy portfolio.

“Many Queenslanders may not know that Arrow supplies 20 per cent of the Queensland gas market, or enough electricity to power as many as 800,000 homes,” says Arrow Energy CEO Andrew Faulkner.

“Arrow Energy has been involved in CSG since 2000. We’re an integrated CSG company; we explore for CSG, we set up the reserves, we produce it, we supply it and we’re actually a customer of it.

“Arrow owns and operates one 450MW gas-fired power station and has take-off rights in two other stations. We have five gas production fields in the Surat and the Bowen Basin through which we supply about one-fifth of Queensland’s gas needs.”

Arrow’s next move on its CSG-LNG pipeline project will be critical. Nonetheless, Faulkner has spent years ensuring that regardless of whichever commercial direction Arrow takes, Queensland communities will be better off for it.

Arrow CEO Andrew Faulkner (left), Arrow Energy Indigenous Tertiary Scholarship program scholar Jemila Darr and Queensland Minister for Aboriginal and Torres Strait Islander and Multicultural Affairs Glen Elmes

www.amma.org.au | Autumn 2014 |

ANDREW FAULKNER

“According to the International Energy Agency the world will need to invest some $37 trillion dollars in the global energy infrastructure between 2012 and 2035. That’s $30 billion a week and significantly more than double America’s total GDP,” Faulkner says.

“Across the world billions of people are rising from poverty in China, India and other emerging economies. They are buying their first fridges, cars, washing machines – their countries are undergoing rapid urbanisation and industrialisation.

“To achieve the same living standards as Australia, these emerging countries need energy. The world has a need for cleaner energy sources and Australia has vast, vast reserves of CSG – far more than it would ever use.

“All this creates a massive supply chain opportunity in Australia, bringing massive benefits to our economy. And it’s not just about the export of LNG, it’s about employment. It’s a real package of opportunity worth billions of dollars every year.”

SUPPORTING INDIGENOUS BUSINESSES AND INDIVIDUALS While some may argue the resource industry doesn’t shout loud enough about its positive contribution to local economies and communities, Arrow Energy it is proactively sharing some of its ‘untold stories’ to promote the social and commercial benefits of CSG activity.

An impassioned speaker, Faulkner told a recent Energy Skills Queensland conference that some of the work he’s most proud

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Arrow Energy assistant construction supervisor Thomas Draper

We wanted to be in the position of offering full, fair and reasonable opportunities to Indigenous businesses and workers because they are competitive and capable, not because they are Indigenous.

ANDREW FAULKNER

of as CEO is Arrow Energy’s Indigenous training and education.

“As a CSG company with a very large footprint, we are very well aware of Aboriginal people’s traditional ownership and that our footprint is on their land,” he says.

“We have nine land use agreements in place with 23 different traditional owner groups which make Aboriginal people very significant stakeholders in our business. We are also very aware of the existing gap in the educational, employment and economical opportunities between Indigenous and nonIndigenous Australians.

“The path we’re taking is slightly different from what you might expect from a resource company, given we’re not outsourcing Indigenous participation but instead focusing on direct involvement in the empowerment of Indigenous communities. This means we have to put in resources to support the efforts to build their capacity and capability.”

Arrow Energy’s philosophy to use its presence to benefit these communities is behind the establishment of the Whanu Binal program within its Reconciliation Action Plan.

Whanu Binal focuses on both business development and individual employment and training. The business stream involves five stages of assistance in navigating Arrow’s prequalification process.

“In May (2013) Arrow launched its Reconciliation Action Plan, becoming the first Australian CSG company to do so and I say that with some pride,” says Faulkner.

“So far 13 Aboriginal businesses have successfully pre-qualified with Arrow and five are traditional owner companies. But we wanted to ensure that businesses weren’t relying solely on Arrow, that they were capable of accessing opportunities with any of the CSG to LNG projects and indeed with other industries.”

To complement Arrow’s work with Indigenous-owned businesses, Aboriginal people from surrounding regions have also participated in an employment stream which involves full-time camp operations and construction training along with ‘soft skills’.

“I believe we are making a sustainable difference through the application of this education and training,” Faulkner says.

“We wanted to be in the position of offering full, fair and reasonable opportunities to Indigenous businesses and workers because they are competitive and capable, not because they are Indigenous.

“Post-training, participants were supported to make their own connections with local employees and those that don’t secure work go on to receive additional training. The final stage involves helping people transition to major projects.”

Arrow Energy and its CEO’s passion for Indigenous participation may just be one facet of the company’s efforts to connect with local communities and share the many benefits of a viable, burgeoning CSG sector.

Regardless of its next commercial move, Arrow Energy’s community engagement and social responsibility investment will always remain right on target.

| Autumn 2014 | www.amma.org.au

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ECONOMY AND FINANCE

SUPER CYCLE here to stay The resource industry’s ‘boom-bust’ analogy may resonate with the general community, but economist Justin Smirk explains such simplistic arguments can miss the full picture. He says we are, in fact, entering the mature phase of a ‘super cycle’.

A QUICK SCAN of newspaper headlines over the past 12 months might have us believe that Australia’s resource industry was either undergoing unprecedented growth or grounding to a sudden halt.

While the ‘boom-bust’ theme that has attached to the industry is appealing to the masses, Westpac senior economist Justin Smirk says it is also widely misunderstood.

Smirk prefers to speak of a commodities ‘super cycle’ and, while he admits it may have peaked, it is far from over.

“This super cycle, this commodities boom, is a long-term one but it’s going through many phases. It does not mean an endless rise in commodity prices,” Smirk recently told a mining investment conference.

He says the super cycle has consisted of three phases: the high price phase in the first eight years of the 21st century, the investment phase from 2008 onwards, and now the beginning of the output phase.

“We have seen two phases come through with big changes and it is changing rapidly again,” he says.

“In the early days, it was completely missed by most miners who then rushed to keep up. When they did catch up, the cost blow-outs hit.

“Now we’re focusing on the long term, the return of productivity, cost control – the fundamentals of being a good miner. It’s no longer about just building mines at any cost to get stuff out of the ground as fast as possible.”

Despite a shift towards cost minimisation, Smirk forecasts the industry to meet rather than exceed demand for our nation’s commodities and support prices above the long run average.

However, he is clear peaks and troughs are inevitable.

“It is a mature cycle now and it is going to be a volatile cycle.

Cost minimisation is key as we focus on expanding output.

“But the foundations remain. China is not going away and India is on the rise.”

Smirk says commodity prices, especially for metallurgical coal and iron ore, will remain in high demand from Asia as more countries shift from urbanisation to consumer societies.

“If you firmly believe, like we do, that the western world is in a phase of saving and deleveraging and the developing world is going through a growth phase, then you can just see simplistically a strong demand for raw material and a soft demand for consumer goods,” he says.

“Prices can remain high until the developing world shifts into being a consumer society.

“We have probably seen it in real terms, but we haven’t seen a long-term trend starting yet.”

From his analysis of data derived by the Bureau of Energy Economics (BREE), Smirk predicts 2016-17 will be a gainful year

www.amma.org.au | Autumn 2014 |

JUSTIN SMIRK

It is a mature cycle now and it is going to be a volatile cycle. Cost minimisation is key as we focus on expanding output.

JUSTIN SMIRK

for Australia’s commodities, but warns of another downturn on the horizon.

“Those good years will be driven by policy, liquidity and by money flowing into emerging markets. But because of this, a correction is inevitable,” he says.

“Get ready for more shocks to come around 2017-18.”

During a period where many forecasters are apprehensive about the resource industry’s future role as Australia’s economic powerhouse, Smirk is one economist who remains upbeat.

“The reason I am optimistic is if you look back in history and see why these cycles last for a long time, it is because once miners have caught up, they go back to cost minimisation,” he says.

“It’s going to be different, it’s going to be tougher but it’s still here. The mining super cycle is still going to be shaping our economy.”

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WA offers exploration INCENTIVE GRANTS THE WESTERN AUSTRALIAN Government is providing 46 exploration drilling projects with grants in order to help discover the next generation of operational mines in the state.

The funding is being offered through the state’s successful ‘Co-funded Drilling’ program, a flagship program of the Exploration Incentive Scheme (EIS), a state government initiative supported by Royalties for Regions.

The ongoing support for explorers from the state comes as the federal government begins to implement its own resource industry development scheme to support ‘the R&D of Australia’s mining sector’.

WA Mines and Petroleum Minister Bill Marmion says the state’s grants have been very competitive, attracting a record 101 applications requesting a combined $11.1 million in co-funding.

“The EIS Co-funded Drilling program provides incentives to drill in underexplored areas to ensure the continued prosperity of the state’s resources industry, particularly in the current difficult financial environment being experienced by exploration companies,” says Minister Marmion.

“In the past, the Co-funded Drilling program has helped unearth substantial new resource discoveries. Some discoveries such as Sirius’ Nova are expected to be mined within a few years and others, such as Beadell’s West Musgrave Handpump discovery, were instrumental in promoting interest in a region which had previously been underexplored.”

The Co-funded Drilling program refunds up to 50 per cent of direct drilling costs with caps of $150,000 for a multi-hole project, $200,000 for a single deep hole, and $30,000 for a prospector’s project.

“The EIS is just one of the many reasons why Western Australia is ranked as the destination of choice in Australia for explorers as measured by the world-renowned Fraser Institute Survey,” the minister says.

In total, the Barnett Government has allocated $130m to the EIS from 2008-09 to 2016-17. The latest round of the Co-funded Drilling program sees $5.6 million being offered to 46 projects, including three prospecting projects.

| Autumn 2014 | www.amma.org.au

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ECONOMY AND FINANCE

Resources production PHASE DAWNING For some time, talk in industry circles has centred on a shift from Australia’s record decade of resource project investment to a new production and export era. Now government analysis of the country’s major projects has confirmed this transition is in full swing.

EIGHTEEN PROJECTS WORTH $30.3 billion. These figures represent Australia’s highest value recorded for project completions in a six-month period, according to the federal government’s Bureau of Resources and Energy Economics (BREE).

With the release of its latest biannual Resources and Energy Major Projects, BREE confirmed Australia’s burgeoning resources sector is entering a new phase.

“Australia is now seeing a transition from the investment phase of the resources boom to the production phase,” says BREE deputy executive director Wayne Calder.

Previously announcing unprecedented levels of project approvals and construction, BREE’s latest findings show that as of October, there were 63 projects at the ‘committed’ stage with a combined value of $240 billion compared with 73 projects worth $268 billion six months earlier.

Calder says this drop is in part due to three mega projects valued at more than $5 billion reaching completion, including BHP Billiton’s Jimblebar mine and rail project, Rio Tinto’s Cape Lambert port and rail expansion, and the latest expansion of the Woodside-led North West Shelf LNG project (North Rankin B).

The projects completed over the past 12 months have added considerably to Australia’s production capacity and will support strong commodity export volumes into the future.

WAYNE CALDER

The Woodside-led North West Shelf LNG (North Rankin B) project has achieved start-up

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BHP Billiton’s rail network transporting iron ore near Newman, Western Australia

“While the number of projects at the ‘committed’ stage contracted, the six months to October 2013 saw 18 projects completed at a record $30 billion,” he says.

“The projects completed over the past 12 months have added considerably to Australia’s production capacity and will support strong commodity export volumes into the future.”

The BREE data follows a BIS Shrapnel forecast that mining production will grow by 41 per cent in the next five years, led primarily by LNG and iron ore.

Its report Mining in Australia 2013 to 2028 indicates the industry will target productivity gains to offset a fall in investment.

“By 2017-18, annual fixed capital investment is forecast to have shrunk to $66 billion as a new, smaller round of developments begins to ramp up,” the report says.

“This is six times the level of investment during the early 2000s.”

BREE’s forward projections also indicate investment in Australia’s resources is likely to decline over the medium term.

Reflecting widely-held concerns that the industry has fallen victim to over-regulation, inefficient taxation and high costs, BREE reports an additional 71 projects in the planning stages of the investment pipeline have been delayed by a year or more in the six months to October.

Specifically, the number of projects at the ‘publically announced’ stage fell in value by between $12 billion and $19 billion. However, it highlights that higher levels of investment could be sustained if projects at earlier stages of development proceed through the pipeline.

The advice signals an opportunity for the Australian Government and business community to deliver greater employment and economic returns in an environment of intensifying global competition.

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FIVE GROWTH SECTORS to match mining over 20 years DELOITTE ACCESS ECONOMICS believes five ‘super growth’ industries worth an extra $250 billion to the national economy over the next 20 years hold the key to Australia’s future prosperity.

In its report entitled Positioning For Prosperity? Catching The Next Wave, the leading macroeconomics firm analyses how Australia can both maintain one of the world’s strongest mining sectors while also making the most of the next five ‘super waves’.

Co-author Chris Richardson predicts the combined value of agribusiness, gas, tourism, international education and wealth management will collectively match mining in terms of their contribution to the Australian economy.

“It’s all about catching the next wave,” Richardson says.

“Mining will continue as a major driver of our prosperity over the next two decades and beyond [but] we need to look at how we can extend our ability to ride the mining wave.

Yet success as a nation cannot be built on natural resources alone. That boom is slowing and our competitive advantage is being challenged.

“The reality is that we need new growth drivers.

We need another wave – or several – to create more diversified growth. And the first place to look is markets that can be expected to grow significantly faster than the global economy as a whole over the next 10 or 20 years, or by more than about 3.4 per cent per year. For example, global markets for gas, tourism and agribusiness are each expected to grow at rates at least 10 per cent faster than global GDP as a whole.

“As history has shown, global growth alone isn’t enough to deliver success to Australia. We also need an edge, a source of comparative advantage that’s hard for other nations to match, so that the world wants what we have.”

The Deloitte Access Economics report outlines five big-picture advantages that give Australia a head-start: world-class resources in land, minerals and energy; proximity to the world’s fastest growing markets in Asia; our use of English, the world’s business language; a temperate climate; and well-understood tax and regulatory regimes.

QLD Government developing 30-YEAR RESOURCES PLAN The Queensland Government is developing a strategic vision to drive growth and jobs in the state’s resource sector.

PREMIER CAMPBELL NEWMAN says the ResourcesQ initiative delivers his promise to provide better infrastructure and planning as well as grow the state’s resource sector as part of a four pillar economy.

“Under Labor, the resource sector was shouldering too great a burden and had no clear direction from the government about its long-term future,” says Newman.

“In contrast, the LNP Government will work collaboratively with the resource industry to develop a strategic vision that will drive this sector and generate significant benefits for decades to come.”

In the development of the plan, the state government will hear from industry and community about what position the resource sector should be like in 30 years’ time, and the challenges and opportunities that lie ahead.

“The aim will be to ensure Queensland remains a global resource destination and continues to build on its competitive strengths,” says Newman.

Minister for Natural Resources and Mines Andrew Cripps

promised the government would partner with the resource sector to develop the project.

“The mining industry provides direct and indirect employment for more than 300,000 Queenslanders and delivers significant economic benefit across the state’s economy,” the minister says.

“We will collaborate closely with industry to forge a clear vision, supported by strategic goals and actions to generate a strong, competitive and diversified resource sector in Queensland.

“We will work with all those involved in Queensland’s resource sector – from the pit to the port, from the drill hole to the transmission line, from the permit application to the smelter, and from the environmental assessment to the building of a rail network.”

The Queensland Government has recently introduced measures to spur growth of the states resource sector, namely an overhaul of approval process for mining exploration and discounts on royalties for companies that progress the first coal projects in the Galilee Basin.

| Autumn 2014 | www.amma.org.au

EVENTS 54

EVENTS

FEBRUARY

Monday 17 – Tuesday 18 The Effective Crisis Communications and Media Management for the Energy Sector course builds on lessons learned from real incidents to help your organisation identify practical tools and techniques. Held in Perth.

More info at: www.valiantbmedia.com Monday 17 – Thursday 27 Held in Perth and Brisbane, Land Access, Native Title, Cultural Heritage & Tenure Management is an in-depth series of separately bookable training days addressing numerous issues.

More info at: www.landaccessandtenement.com Wednesday 19 - Friday 21 The Australasian Oil and Gas Exhibition & Conference (AOG) is the first major industry event of the international oil and gas calendar in 2014, providing a unique opportunity to see what’s new and build business connections with industry leaders.

More info at aogexpo.com.au

MARCH Monday 10 – Wednesday 12 The 9th Annual Excellence in Oil and Gas is a gathering to discuss the future of investment in the oil and gas industry. Held at the Hilton, Sydney.

More info at: www.exellenceoilgas.com

AMMA Skills Connect ‘Workforce Planning in a Day’ The resource industry is entering a complex new phase of skills supply and demand. It’s time to go back to basics with AMMA’s one-day workforce planning short course.

AMMA Skills Connect has teamed up with AMMA’s experienced trainers to deliver a program addressing the unique workforce challenges of resources, related construction and allied service employers. Learn the principles and benefits of effective workforce planning and undertake practical case scenarios.

26 February – Perth 5 March – Brisbane 9 April – Kalgoorlie 16 May – Perth More info at: www.amma.org.au

Australian Resource People Summit AMMA National Conference, 29-30 May 2014 On May 29-30, AMMA will welcome valued members and guests to the 2014 Australian Resource People Summit, hosted among the entrepreneurial hustle of picturesque Perth.

The theme for 2014 is ‘Innovation through People, Policy, Productivity’.

As is the hallmark of AMMA’s signature annual event and in light of ongoing economic, operational and political challenges, this aptly themed summit lends itself to topical industry discussion, debate and deliberation across an unrivalled two-day program.

Tuesday 18 – Wednesday 19 Liquid Learning will present the inaugural Safety Leadership and Engagement Conference 2014, showcasing industry best practice from a variety of organisations. Held in Sydney.

More info at: www.liquidlearning.com.au

This event will feature imminent leaders of the business community, resource industry specialists and national policymakers and politicians to provide invaluable insight into all workforce matters across the diverse and dynamic resource industry.

The 2014 Australian Resource People Summit is also about opportunities.

APRIL

Underpinned by the conference theme, the sessions will explore best practice, innovative leadership and how employers can help mould a more supportive policy framework for resource industry activities and operations. Held at the Pan Pacific Perth.

More info at: www.resourcepeople.org.au

Tuesday 1 – Wednesday 2 The Construction Risk Management Summit brings together professionals from the construction, risk management and insurance industry to hear how the use of technology will improve risk management processes. Held at the Melbourne Convention & Exhibition Centre.

More info at: www.constructionrisksummit.com.au Sunday 6 – Wednesday 9 The APPEA Conference & Exhibition is the largest annual upstream oil and gas event in the Southern Hemisphere, attracting delegates from across the country and the world.

More info at: appeaconference.com.au

Australian Resource People Summit 2014 delegates will converge at Perth’s Pan Pacific

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BUSINESS PARTNER DIRECTORY

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