resourcing The people, projects and happenings in SA minerals and energy
SA
Opportunity within reach
Footy motivation Jobs plus
SA’s winning entrepreneurs
Issue 3 Winter 2016 $9.95 (incl. GST)
Mercedes-Benz Adelaide Corporate Programme benefits you.
Mercedes Benz
• Complimentary scheduled servicing* • Total of 4 years Mercedes-Benz roadside care • Reduced dealer delivery fee Mercedes-Benz vehicles are renowned for quality, safety, luxury and performance. That’s why cars with the Mercedes-Benz three-pointed star are the choice of those who demand the best. That choice is even easier if you qualify for our Corporate Programme. Our Corporate Sales Consultants at Mercedes-Benz Adelaide can provide eligible members with a range of privileges including complimentary scheduled servicing.* In fact, the benefits you receive with your new Mercedes-Benz may evoke more envy than the badge. A Daimler Brand.
For full details, visit www.mercedes-benz.com.au/corporate
* Up to 3 years or 75,000km from new (whichever comes first). AMG (excluding V12 vehicles) 3 years or 60,000 km
Mercedes-Benz Adelaide 20 Sir Donald Brandman Dr, Mile End SA, Tel 8152 5000, LVD2071
Mining relies on fuel & lubricants. And Jeremy. Jeremy is a Viva Energy Fuels Technical Advisor who proactively looks for ways to help reduce his clients’ operational costs. With dedicated people like Jeremy identifying cost saving opportunities, you can focus on what’s really important – mining. vivaenergy.com.au
Driven by People
04 From the Editor Editor Megan Andrews Deputy editor Stephen Batten Publisher South Australian Chamber of Mines and Energy (SACOME) Production editor Lindy McNamara Editorial committee Tino Guglielmo, Anya Hart, Dayne Eckermann, Yasmin Chrisohoou, Lachlan Wallace, Jacqui Dealtry, Leanne McClurg, Steve Whitham, Clara Roccioletti
Printing Lane Print Advertising & SACOME Membership Stephen Batten (08) 8202 9999 sbatten@sacome.org.au Online magazine www.sacome.org.au/sacome-media/magazine Frequency Quarterly Subscribe sacome@sacome.org.au $9.95 per issue; $20 for four issues Cover Photo by Andy Steven - Miss McClurg at Brighton Beach
Your opinion and feedback is important and we always appreciate hearing from readers. Love or loathe something you’ve read, or simply want to get something off your chest then please feel free to drop us a line. editor@resourcingsa.com.au
Follow SACOME on facebook.com/southaustralianchamberminesandenergy Linkedin/South Australian Chamber of mines and energy Twitter @Mining_EnergySA
www.sacome.org.au
Editor
This edition of Resourcing SA is all about opportunity for South Australia. Up to my mid-twenties I didn’t care much for local business, economic or political news unless it was directly related to myself. If a friend was on TV, a relative running for council, or a neighbouring business in the paper… it might rate my attention.
Designer Raymond Capozzi
Tell Us What You Think..
from the
I was drawn to more dramatic news, the end of the cold war, people starving in Africa, refugees fleeing war torn countries. But, I cringe to admit, even that took a backseat to the latest celebrity updates, although in that early internet era I’d at least pay more attention to the comings and goings of home grown successes than what Princess Diana or Madonna were up to (favourite bands aside.) Perhaps I was a ‘late bloomer’, but despite growing up in SA - Kangaroo Island then Adelaide- I just didn’t make the connection that what happens here economically does affect me, and very directly. Happily, two of my closest friends recently found full time work after two years of unemployment complete with periods of depression and hundreds of job applications. Neither work in manufacturing or resources, in fact their industries are not suffering particularly, yet opportunities are few. Many others are also experiencing that the downsizing or closure of our employers flows through to everyone - even public sector jobs. Big and small business alike serve far more than their owners and chief execs. My children will be voting when they turn 18, so I want them to understand sooner than I did that the prosperity of our State not only determines jobs, but contributes (or detracts)
from state and national revenue. That means services here, and funding for overseas aid, including to assist the billion plus people living in extreme poverty and - my daughter’s passion - to reduce the decimation of our world’s remaining rainforests. The first ever SA Resources Industry Awards were held this year and in April the winners were announced (page 24). Their success will help piece together our puzzle of prosperity, translating into benefits for the whole State and ultimately for all of us. As will those of our mining stalwarts who are progressing towards exciting goals that promise more jobs and revenue (page 18). In this issue we also bring you news on some of our development projects - which may surprise when you read about their achievements and the fantastic opportunities ahead. I also recommend the opinion articles by Jason Kuchel (page 12) and Tom Kenyon (page 21) that may challenge your thinking. Will the submarines save us? No. But they’re a valuable piece of the puzzle. We know better than to rely on that one big thing. Encouraging business growth, including addressing obstacles to viability (such as electricity prices) and celebrating our successes, will go a long way to nurturing our fantastic opportunities into prosperity.
Megan Andrews Editor
Resourcing SA is published by the South Australian Chamber of Mines and Energy (SACOME), our partners include:
Diamond
Platinum
Gold
Silver
Zircon
QHEATHGATE ISSUE 03 RESOURCING SA Winter 2016
Black Gold
Contents 05
8 | HERITAGE The Glen Osmond silver lead mine on Adelaide’s door step – the first metalliferous mine in Australia and a State treasure.
34 | INNOVATION
24 | FEATURE
South Australia’s future prosperity will require innovation, including from entrepreneurial start-up companies.
Some of SA’s ingenious teams and entrepreneurs.
In this issue FOOTBALL HAS 7 THE POWER
It’s more than a game and engaging Aboriginal children to complete school.
LICENCE TO WHAT? 10 Who knows what a social licence is
32 UNISA’S NEW INSTITUTE
Opportunity feature IN THEM HILLS 14 AGOLD historic deposit is set to receive a
MENTORING FOR 33 DIVERSITY
ON THE ROAD TO 16 SUCCESS
A changing academia philosophy is nurturing innovation.
A successful program is supporting SA women in their work aspirations.
anyway?
12 AFFORDABLE ENERGY KEY 36 STEPPING UP Affordable energy is central to lifting people out of poverty – while benefiting the environment.
24 28
SA’S INVENTIVE GENIUSES
The first resources industry awards unearthed some surprising entrepreneurs.
FIFO UP CLOSE
Two families tell their FIFO stories.
PROGRAMS 30 INDIGENOUS HEADLINE AWARDS
Supporting Aboriginal communities was a common thread among many winners of this year’s Premier’s awards.
A local engineer/manufacturer is successfully diversifying from a reliance on the automotive industry.
38
ELECTION PRIORITIES
How do the Federal parties support resources sector growth in SA?
50 GAP ANALYSIS
Is there a gender pay gap?
second life.
Iron Road’s magnetite giant has reached major milestones.
LOCAL JOBS AT HEART 18 BP’s exploration is already yielding local opportunities.
INFRASTRUCTURE VISION 21 Tom Kenyon has a bold but attainable goal for SA, from schools to roads and more.
NUCLEAR ROYAL 22 COMMISSION
A summary of the findings.
NEW HEIGHTS 26 SCALING SA boasts several successful minerals producers with exciting growth plans.
ISSUE 03 RESOURCING SA Winter 2016
06 Letters to the editor
Winning letter
No room for lies The Norwood Resource (TNR) commends SACOME on the article published on page 6 of the Autumn 2016 edition of Resourcing SA, entitled “Betts’ Backyard”, as it places on record the fact that the petroleum industry and the agricultural industry, in this case the beef cattle industry, can and do co-exist harmoniously. Unfortunately, this type of balanced reporting, which sticks to the facts, is generally ignored by mainstream media when the likes of the Limestone Coast Protection Alliance (LCPA) and The Wilderness Society (TWS) spread their misinformation for the sole purpose of generating fear and confusion in the community. It is TNR’s mission to disseminate factual, scientific information and challenge misinformation. We need look no further than a couple of South Australian examples to witness the baseless, extreme claims made by environmental activist groups. Firstly, the LCPA claim, on page 54 of their submission to the Parliament of South Australia Natural Resources Committee Inquiry into Unconventional Gas (Fracking) that, “There is now evidence showing stock dying in vicinity of gas wells” and they reference a media article from North Dakota USA to support this outrageous claim. This claim (based on an unsubstantiated media story) is clearly not valid as it is not factual, nor was there any scientific and verifiable information to support the claim and also conflicts with the experience of organic beef producers like the Betts’ in the NE of South Australia, as wells in the Cooper Basin have produced gas for consumption in Adelaide since 1969, without any impact on the beef cattle in the area. Additionally, TWS’ campaign against BP’s Great Australian Bight drilling program is based on scare-mongering and misinformation. One glaring example of deception is TWS’s claim that “There are serious concerns about BP drilling for oil in the Great Australian Bight whale nursery“.
Kudos to Kenyon Release of the Royal Commission’s report on matters nuclear hopefully marks a shift in the log-jam that has characterised our State for 40 years. Long memories will recall that until the mid1960s South Australia’s was an inherently fragile economy, brilliantly administered by Tom Playford. Industrialisation, which included coercing of BHP into establishing steelworks at Whyalla, was balanced by social measures such as the South Australian Housing Trust. The State was transformed from its agrarian/ resource roots. New South Wales, Victoria and South Australia were the leading Australian states at that time. What followed could have been documented by Gibbon in ‘The Decline and Fall…’ A new generation of political leaders (post Frank Walsh) found the electorate ready cannonfodder for spin. A new generation of journalists at The Advertiser fell in with the spin and a new generation of teachers entrenched image and dogma over substance in the minds of two generations of South Australia’s children. Who can forget the misrepresentations which lay behind the mirages of the Redcliff Petrochemical Plant or the Chowilla Dam… or those which attended on the Multi-function Polis or the State Bank of South Australia. Who can forget the description of Olympic
New regional industries
The Iron Road project planned for the Eyre Peninsula will provide the SA Government with significant royalty payments. The project will provide employment to construct mine infrastructure, railway and port facilities. During the operations phase, there will beopportunity to employ South Australian personnel and particularly local people from around the mine area.
Incorrect! BP is proposing to drill over 260km away from the nursery.
The new rail facility could provide opportunities for other users to get their products to the port.
The Norwood Resource Norwoord, SA
I consulted to the Cowal Gold Project in NSW from 2002 to 2006 during advanced exploration, construction and its initial operations phases.
Our winning correspondence each issue receives a 250gm box of assorted chocolate truffles from Haighs. Congratulations David! Send us your thoughts, we love feedback - and what better incentive than a box of SA’s award winning Haighs? editor@resourcingsa.com.au Letters or emails may be edited to fit.
ISSUE 02 RESOURCING SA Winter 2016
Dam as a mirage in the desert that will never happen ……followed later by constant overspruiking of an Olympic Dam expansion. We know which political party was responsible for these fiascos, but faced with misleading conduct on an industrial scale, the other side of the chamber barely stirred. Where to from this sorry pass? Tom Kenyon is the person responsible for the only major rational initiative taken by a South Australian government in two generations. I refer, of course, to the Scarce Royal Commission. Nobody should trust the party of Tom’s choice to deliver two rational initiatives in a row – their record is proof. Nor is there any reason of record to trust the other side. The purpose of my letter is to ask whether we might all now be prepared to say more. Even a couple of The Advertiser columnists have joined planet Earth, so change must be in the air. Let’s try to encourage and empower capable people in both parties. They exist – they’re just outnumbered! Also, let’s hope that Tom Kenyon reaps a proper reward for sponsoring our first even break in long years. David Clarke North Adelaide
The town of West Wyalong, the nearest town and base for Cowal personnel before the project was commenced, was a dying town with shops and hotels closing and people leaving. There were drought conditions and farmers were suffering. Once the project went into construction and operation, the town recovered into a thriving community. Many mine employees were local people and many were local farmers who could earn money to save their properties. If this project proceeds, towns such as Wudinna will get a boost like West Wyalong did as described above. Bob Allan Margaret River, WA
Community 07
POWERFUL support
The Port Adelaide Football club understands football is a powerful tool to engage children with education. From a successful senior school program, they’ve expanded to support younger children and also youths into work. By Matt Agius. Port Community Limited has a clear charter, to continue the community programs it commenced upon entering the AFL in 1997, through strong links with corporate Australia. These community programs work within schools and through bringing school groups to Port Adelaide’s in-house classroom at Alberton Oval. The Power’s community team also travels throughout SA and the NT, working with youth groups and indigenous communities to promote lifestyle and educational messages. It’s a journey that started almost a decade ago with the nationally-regarded Aboriginal Power Cup - then a small football carnival for senior school students with a significant educational component. Port Adelaide has enjoyed significant success with indigenous communities, with 90 per cent curriculum completion among participants in the Aboriginal Power Cup, and significant funding from government and partners including SA resources companies enabling the program’s expansion. Just five schools and 120 students participated in the program in its first year. Now in its ninth year, the program has 430 high school students from 42 schools.
Paul Vandenbergh is the manager of Power Aboriginal Programs. A former NBL basketballer, he understands the importance of sport for indigenous youth, and the role it can play in educational outcomes. “The Aboriginal Power Cup is our flagship program, and from that we’ve grown to have football academies and primary school programs. “Schools wanted us to have a role with younger students too, so we started WillPOWER for years 5-9, which is the age range children are most atrisk for dropping out from their education.” “Football participation is a powerful tool to encourage and help kids understand their school curriculum and culture. Kids love it, so by tying participation to their school work we’ve been able to give something to motivate students to stick at school.” Paul says. With thousands of students in South Australia graduating from the Aboriginal Power Cup each year, and similar numbers moving through Power Community’s youth programs stream, a need was identified to support the school-to-work transition. This resulted in the launch of Powerful Futures this year, to help get school students into the workplace after finishing their studies. The launch was an opportunity to find positions
for many of the graduates and investigate what support the corporate world would need to support Powerful Futures, such as training, cultural awareness programs or work attire. “Since mid-April we have placed 15 of our Aboriginal Power Cup graduates into work – this is really positive.” Paul said. Powerful Futures represents the final step in Power Community’s program suite to give students’ a leg-up into work experience, a job placement or full-time employment. “People sometimes don’t realise that a job opportunity is not just important for the individual, but also the community,” Paul says. He says it’s that final piece in the puzzle for many indigenous kids, and often the hardest to achieve. “It gives them a chance to prove their value in the workplace and sets them up to become a leader within their family and community.” For more information on Powerful Futures, contact Paul Vandenbergh on 08 8447 9966
Chad Wingard and members of Port Adelaide’s Aboriginal programs in the APY Lands Image: Port Adelaide Football Club ISSUE 02 RESOURCING SA Winter 2016
08 Heritage
(Left to right) William, David and Alexander at the entrance to the Wheal Watkins mine. Their father Peter, enjoyed exploring the mine as a child. Image: Andy Steven
Journey of discovery
For many Australians growing up in the 1960s, life outside school was all about friends and freedom. Michael Bosworth reminisces on his exploration of a heritage listed Glen Osmond mine, Australia’s first metalliferous mine.
As a young lad in 1958, I received for Christmas a Sturmy Archer wheel and gear hub for my bicycle. It was a life-changing present. Until then, my travels had been limited by my fixed wheel bicycle. Riding that fixed wheel to Mount Lofty summit and back was an experience that will never be forgotten. Together with friends and new-found freedom, we often ventured to Brownhill Creek, in particular to explore the old mine tunnels upstream from the church ruins. On panning lode (mineral deposit) material we dug from this mine, some heavy greyish-silver minerals were obtained, which gave off a garlic odour upon heating. No gold or other metals were found, so we lost interest in further work, which was probably fortunate as that greyishsilver mineral could well have been iron arsenic sulphide. However, it sparked my lifelong interest
ISSUE 03 RESOURCING SA Winter 2016
in where and how mineral deposits formed. I soon discovered there were like-minded people at school and as a group we went on to explore the mines at Glen Osmond. This was in the early 1960s, and there was sparse residential development on the hills face and rough dirt roads. At that time, nearly all the mines and their adits (horizontal tunnels) were readily accessible. The Wheal Watkins and Wheal Gawler shafts were still open and stones dropped down took a long time to hit the bottom. Small pieces of galena were readily found around the Wheal Watkins shaft. Of course, we had soon explored all the open adits. In many of these were winzes (vertical internal shafts) connecting to the lower levels. We believed those lower levels could well preserve items of historical interest. Our aim was to climb down a winze to explore these lower levels.
One of our group, Nigel, constructed a 10 metre rope ladder. However, some of these winzes were deep, descending some 20 metres. A winze in the upper adit of the Glen Osmond mine was approximately 10 metres deep and there were timbers on which to secure a rope ladder. Straws were drawn and Richard Wright had the privilege (or was he the most adventurous!) of being the first to venture down. His reward was finding a miner’s pick-head on the tunnel floor, which he later donated to the Burnside Historical Society. The finding of large specimens of galena continued to elude us. We had by now all decided to go on to study geology at university. The year was 1961, we were in Leaving Honours (Year 12) at school and had our driver’s licences. I still hankered to find that elusive large specimen of galena.
Heritage 09 In those days, it wasn’t particularly difficult to work out where the lode lay. Just establish a straight line between an adit and the main shaft up on the hill. The most obvious was Peacheys Lode, however a layer of calcium carbonate (calcrete) covered the underlying rock and both were very hard. It needed heavy digging implements. Now that I possessed a driver’s licence, I loaded my mother’s Austin 7 with a pick and crowbar and ventured up. It was first gear all the way up Gill Terrace; the only gear the car could maintain without stalling.
Most of the morning was spent smashing calcrete off Peacheys Lode, to reveal a large lump of galena. Then most of the afternoon spent breaking the rock, to release a three kilogram specimen.
level of Chief Geologist in Shell for mineral exploration in Tasmania. I elected for a career in CSIRO, but kept a keen interest in fossicking.
This specimen is also now in the possession of the Burnside Historical Society.
In retirement, we still go fossicking. It was on a 2014 trip to Tasmania when Richard passed on the pick he’d found in the early 1960’s for preservation.
Subsequently, Nigel, Richard and myself went on to complete geology degrees at the University of Adelaide.
This article was reproduced with permission from the Burnside Historical Society newsletter, March 2016.
Nigel and Richard went on to careers in geological exploration, Richard reaching the
Re-opening the Glen Osmond heritage mine Wheal Watkins was mined for lead and silver from 1843 to 1851. It’s one of the most historically important mines in Australia and part of the Glen Osmond mines group that exported the nation’s first minerals. In 1984, the mine was State heritage listed and made safe for underground public tours. These were conducted by volunteers from the Burnside Historical Society until 2005, when a rock fall led to the Burnside Council terminating tours. Since then, the Burnside Historical Society has worked tirelessly to reinstate the tours, using
its members’ funds to commission engineering reports that detail the work needed to re-open the mine. The society sought funding for a plan to re-open the mine at a recent Burnside Council meeting but instead, the council voted to close it permanently. Leading mining consulting company, AMC Consultants, was approached by the society to evaluate the requirements for rehabilitation of the mine. The company carried out an initial site inspection and is liaising with the Burnside Council, who have opened up discussions on the
mine’s future. Johann van Wijk, General Manager of AMC’s Adelaide office, says he is hoping to work with the Burnside Council to rehabilitate the mine and preserve its heritage for the benefit of the community. In SA heritage mine tours are conducted at Blinman in the Flinders Ranges and Coober Pedy. The Burnside Historical Society is committed to persuading the Burnside Council to preserve this heritage treasure through a staged rehabilitation program.
Julia Dnistrianski, Daniel Jenkinson, Glenn Davis, Leanne McClurg and Justin Nelson
L
A W
Y
E
R
S
DMAW Lawyers is a leading South Australian based commercial law firm providing services throughout Australia. We are committed to the delivery of prompt and precise results of real value to clients and offer the highest level of legal services in the energy, resources and minerals sectors.
10 Community
Licence to WHAT? A Social Licence to Operate is a phrase often coined in discussions surrounding the resources industry. But what does it really mean? By Dr Nigel Long Image: shutterstock
The success of a minerals or petroleum project relies on many aspects coming together, high on the priorities list is the need to attain, demonstrate and maintain a ‘social licence to operate’. This social licence is now commonly accepted and reported on across business and government activities – applying to a far higher standard to resources businesses than any other business type across Australia. So what is a social licence to operate and how is it obtained? Rather than a tangible permit, a social licence to operate refers to the level of acceptance or approval by local communities (and other stakeholders) of companies and their operations. The licence reflects an idea that society is able to grant, or withhold, support for a company. There is no pre-determined percentage of community support that will guarantee the progression of a project. Nor is there a firm measurement that could condemn it, yet acquiring this licence is important to the approvals and consent process. Universal agreement is not required and is impossible – there will always be those who will never support resources development and others who may, but reject any form of ‘backyard’ development that may intrude on their personal lifestyle. Many issues that concern communities are genuine and need to be addressed. Others are emotive, used to create tension and exacerbate fear; these are the choice of Green activists, who achieve their broader goals through fuelling the emotive rather than constructively discussing individual community issues. These groups are well funded, have mastered social media as a weapon without accountability, and have ISSUE 03 RESOURCING SA Winter 2016
developed strategic tactics to activate community action around the emotive. Ask someone what mining means to them and they may well leave out the key aspect – the essential role of minerals and petroleum to living standards, health, education or the production of food and fibre. Many do not understand the critical, equal role of resources and agriculture on this nation’s history and future, both socially and economically. Although the resources industry must challenge the myths and dishonesties perpetuated, developing constructive partnerships needs to focus on the positives and realities.
Ask someone what mining means to them and they may well leave out the key aspect – the essential role of minerals and petroleum to living standards, health, education or the production of food and fibre At a project level, there are tangible regional benefits including diversifying an economy that can withstand fluctuations in seasons and commodity prices, providing employment opportunities, new and improved infrastructure, improved regional services and new business opportunities. Increasing regional populations has a number
of positive social benefits, some lasting well beyond a project and continuing to support farmers and communities. Declining populations in rural areas are a reality and results in the erosion of essential services – schools, police, medical, retailers, sporting clubs, churches and more. Local infrastructure declines, with councils unable to fund the maintenance and support of social and hard infrastructure. The foundation to a social licence is understanding the community. This includes insight into its values, historical context and the aspirations of various groups and the community as a whole, from which base a valuable partnership can develop. Partnerships by definition are two-way. Once companies understand their community, they have the right for their projects to be understood. Drawing on community leaders who connect with a project is central to this with a narrative emerging from consultation, rather than imposition. Likewise, upon understanding a project, a community has the right to have their concerns addressed and contribute to decision-making. The minerals in the ground belong to all South Australians. This wealth, together with the benefits it brings, can be significant. A social licence to operate places obligations on companies looking to develop resources, but also on the communities impacted. Simply saying ‘no’ is not satisfactory. Landholders and stakeholders must be constructively engaged in the debate surrounding resource development in their communities. Disregard this obligation and they risk becoming irrelevant in the valuable role of shaping how mining may bring real benefits to their community.
We’ll help build a rock solid future while you take care of what matters today
Pim: Member since 2014 Likes knowing: He’s with a top performing industry super fund
12 Opinion
Imagine if you couldn’t afford energy By Jason Kuchel
Can you imagine living in a one room house? Can you imagine if you had no running water? Can you imagine if you had no electricity? What would this mean for you and your children? Apart from obviously being more cramped than the average Australian household is used to, without light to study your children’s education would be severely affected - and you may even have to send them off for hours just to get drinking water meaning no schooling at all. And how would you keep warm on cold nights, perhaps from burning wood or dung and in doing so polluting the air you breathe! How much do you think you would appreciate it if the government then came along and gave you electricity to your home and running water? It would be the first steps towards the life you have now, one which is safe, healthy and where we are well educated leading to good jobs and prosperity. I’m not asking you to give money to a charity to support people in this situation, although that is a good thing and should be encouraged, rather I am asking you to think about what it took for Australians to reach the life we enjoy today. Believe it or not, coal transformed our way of life as the earliest method of providing us with cheap reliable power, or any power for that matter, and reduced the burning of our forests, cleaned up our air compared with wood burning fires for heat and cooking. Today many of us enjoy cooking with gas in our ovens, cooktops and BBQs. It is a quick, clean and efficient way of cooking. Coal and gas have done more for cleaning up our environment than most people realize! Imagine if China with its 1.3 billion people relied on wood and or dung for warmth and cooking, rather than coal and gas fired electricity. Their pollution would be much, much worse than it is today. ISSUE 03 RESOURCING SA Winter 2016
I’m not promoting one technology over another because any way you look at it, mining is required, whether it is for traditional, renewable or nuclear power Of course wind and solar are welcome sources of low emission energy generation, but without coal or gas to provide continuous power for when the wind stops blowing or the sun goes down, we would be in trouble. Ever improving battery technology is also welcome, but uses a tremendous amount of our mineral resources to make and is arguably not a sustainable use of resources. Don’t get me wrong, batteries will be very lucrative and disruptive. All of this is why the best minds in the world, who are concerned for those living in poverty AND the environment are turning their attention to methods of minimising emissions. Already, technology is used to reduce emissions from new coal fired power plants. This type of investment should be encouraged as the consistency of coal or gas fired generation is required to keep our electricity network stable and gas plants that can be turned on and off quickly are necessary to fill the gap in renewable power generation and also to keep our transmission networks within the frequency tolerances necessary to ensure your fridge motor does not burn out. Of course one of the cleanest and most environmentally sensitive methods of power
generation is nuclear power. A typical nuclear power station is virtually emission free once established, just like wind turbines, except it provides reliable power 24/7. But what about the waste? Well one large nuclear power plant, big enough to power a city the size of Adelaide, would annually produce spent fuel that would fit inside just one of the BBQ gas cylinders you have at home. It’s such a small amount! Having recently visited Sellafield in the UK, where they process and store this material, it’s easier to understand how there are simple engineering solutions to manage this spent material effectively. I’m not promoting one technology over another because any way you look at it, mining is required, whether for traditional, renewable or nuclear power. And just as an aside, electric cars mean more electricity generation, more batteries and more technology, all of which requires more mining. My point is, the collective mining industry is indifferent to which type of power generation is chosen as it all requires mining to work. Many years ago I had the privilege of being an exchange student and lived in a third world country. My host father was reasonably well off and one day bought some forest to protect it from being cut down. He explained to me that the people had nothing but the land and the land itself had no value to them except to sell every tree for fire wood. This is how they would feed their family for a few years. Destitute people will do what they have to for survival. Lifting them out of poverty does more for the environment than you might imagine. Denying people in poverty the access to cheap power in the name of the environment does more to damage the environment than protect it. Access to affordable energy has and will continue to do more to lift our fellow human beings out of poverty and misery than anything else - and has brought nothing but a net benefit to the environment in the process.
IRON ROAD IS BUILDING A FULLY INTEGRATED, LONG LIFE, MAGNETITE IRON PROJECT KEY PROJECT METRICS
US $4 billion
mining and
infrastructure project
Industry competitive
FOB cost profile range
US $34-38/tonne
Total operating breakeven iron ore price assessment
US $40/dmt
(62% Fe fines CFR China)
KEY PROJECT FACTS 2014 definitive feasibility study and 2015 optimisation study demonstrate a highly competitive project with potential for strong economic returns +21.5 million tonnes per annum of high grade (67% iron) concentrate, low impurity iron concentrate Current mine life of 25+ years, with growth expected to beyond 30 years
Project has mineral resources of 4.5 billion tonnes and ore reserves of 3.7 billion tonnes High quality, low impurity iron concentrate will serve as a cleaner and superior blending product for steel mill customers Port infrastructure able to accommodate Capesize vessels Project has the support of the Australian State and Federal Governments
Construction Partner - China Railway Group • Lead Offtake Partner - Shandong Iron & Steel • Grain Partner - Emerald Grain
Iron Road Limited | ASX Code: IRD | GPO Box 1164, Adelaide 5001, South Australia ironroadlimited.com.au | @IronRoadLimited | admin@ironroadlimited.com.au
14 Opportunity
With a winning combination of local experience, established relationships and their own existing production facilities, an SA business is set to re-open opportunities from a historical gold deposit in the Adelaide Hills. By Megan Andrews
W
hen uncertainties riddle the global economy, gold often remains a safe bet.
For the inspired employees at local business Terramin, the odds are even better. They’re looking to mine the Bird-in-Hand gold deposit at Woodside, where a prosperous gold mine produced over 10,500 ounces of gold in the late 1880s. The team has the added advantage of Adelaide Hills experience and their own existing production facilities, having established and operated the Angas Zinc Mine at nearby Strathalbyn until its closure in 2014. Chief Executive Officer Martin Janes was with the company through much of its Angas mining days, as was Joe Ranford, Terramin’s General Manager and Chief Technical Officer. “We’re a small South Australian company and we know some of the issues after our work at Strathalbyn, but we also know that every community has its own specific concerns,” says Joe, who is a Hills’ resident. Back in the day, 17 gold mines operated in the area – all underground. This is a tradition that Martin, Joe and colleagues will continue, albeit with the safety and economies now available. Modern mining technology also means more ore can be located, accessed and extracted. “They used horses trotting in a circle to crush ore back then,” Joe laughs. “The amount the industry has changed is phenomenal.” A resource of 233,000 ounces of gold is already proven, but Joe says they’ve only explored the top 450 metres. “We haven’t gone down further because it’s expensive and we don’t need to. It’s a robust project with what we already know,” he says. “A higher priority for us is ensuring that the existing project can proceed without negative
ISSUE 03 RESOURCING SA Winter 2016
impact on the environment.” Extensive stakeholder consultation has confirmed this is in line with priorities of neighbours and the wider Woodside community. “Number one for us is a project plan sympathetic to the natural environment and considerate of locals concerns. Right now, we’re spending our resources on a huge environmental program.”
The team has planted 2500 native trees and helpers are assisting plant an additional 22,000 this winter, broadening the minimal native woodlands left from agricultural clearing This has involved an exhaustive study leading through to a comprehensive investigation of the area’s groundwater – including its interactions, flows and chemistry. As part of this, five bores were drilled, cased and capped to determine aquifer properties, permeability and water flows. “During the tests, 37 private bores were monitored to help understand the wider effect of pumping water from our bores,” Joe adds. It’s the most comprehensive groundwater study undertaken in the Western Mount Lofty Ranges catchment area, and has resulted in a groundwater management plan that will
completely seal the mine, leaving the water safely in the aquifer. Above ground, the whole team has pitched in to plant 2500 native trees, helpers are assisting with an additional 22,000 to be planted this winter, significantly broadening the minimal native woodlands left from prior agricultural clearing. “These native vegetation corridors will also provide buffers between our equipment and the neighbouring roads and properties,” Joe says. Being underground, the project will host little surface infrastructure, comparable to the facilities of neighbouring wineries. Processing and tailings equipment at the Angas site will be adapted and re-used by Bird-inHand, providing excellent operating economies. “Twelve trucks of ore will be transported to Strathalbyn each day, increasing local truck traffic by less than 10 percent,” says Joe. “These are the same size trucks as those on our roads now.” Joe is excited about what the project would do for the broader hills community and says it’s a fantastic asset. “We know the gold is high grade and the mine will have a very small impact on the surrounding area.” With the plan to develop a minimum five-year project, with the potential of mining continuing well beyond that time, Joe is looking forward to supporting local industries and the day the company can significantly add to their own crew. The project will directly employ 100 people between Woodside and Strathalbyn. More people will be employed indirectly through business generated by the mine. “We can train and employ a lot of people in a diverse range of areas, equipping them with skills they can also use in their future career moves.”
Opportunity 15
Joe Ranford (left) and Simon Henderson at Terramin’s Woodside property Image: Andy Steven
Hard wearing opportunities Simon Henderson is one local who understands the opportunities mining can bring. Simon owned the Strathalbyn Mitre 10 hardware store throughout the duration of Terramin’s Angas Zinc mine’s operation. “To start off we supplied for the build of the offices and buildings,” he says.
a 700m2 shop and “dust bowl” yard, to a modern 3000m2 building. “We’re the closest hardware store to the new proposed mine, we have a comprehensive stock list and an established plumbing business. So I definitely see opportunities ahead,” he says.
“We then started supplying the tools and equipment, the cement and building products, and went on to collaborate with other local businesses for an employee voucher system Terramin initiated to incentivise and reward safety.”
Much more than a regional hardware store, the Balhannah Mitre 10 has a plumbing business and a broad range of customers, recently winning two major Westfield Shopping Centre contracts and serving customers across other regions including the Yorke Peninsula and interstate.
Simon bought the Balhannah Mitre 10 in 2013, wasting little time transforming it from
“We get around a bit, but we certainly appreciate the local opportunities.”
ISSUE 02 RESOURCING SA Winter 2016
16 Opportunity
(Left to right) Andrew Stocks, Iron Road; Mark Pfitzner; Tim Scholz, Iron Road Image: Robert Lang
ON THE ROAD TO
SUCCESS
SA’s Iron Road team are striving to build a long-term magnetite project near Warramboo on the Eyre Peninsula, including a deep water port near Port Neill and new railway line, power and water. With major milestones recently achieved, the project’s moving closer to bringing significant benefits to regional communities - and the entire State. By Lindy McNamara
I
t’s been a long and at times bumpy ride, but Iron Road’s Managing Director Andrew Stocks and his close knit South Australian team have taken major steps towards the development of their $US4 billion Central Eyre Iron Project (CEIP) in recent months. Global grain handler, Emerald Grain and infrastructure giant China Railway Group recently signed separate agreements with Iron Road, propelling the CEIP much closer to the ‘finish line’. The development and operation of the open pit magnetite mine at Warramboo and its associated rail and port infrastructure have the potential to enhance Eyre Peninsula’s existing industries, re-ignite the social fabric of its communities and provide a major boost for the South Australia economy. Andrew has driven the CEIP since its beginning back in 2007 and says recent developments have been pivotal, facilitated by the positive results of a 2014 Definitive Feasibility Study that revealed the project’s “robust economics”. Results of an Optimisation Study released late last year were also instrumental. The study brought in experts from German miner RWE (which uses the same mining system) and Thiess, one of Australia’s largest mining contractors and saw a decrease in projected operating costs to about $37 a tonne (calculated on an exchange rate of $US 0.76), confirming the CEIP would be a low cost
ISSUE 03 RESOURCING SA Winter 2016
operation producing a high quality product, with control of its supply chain. “Our studies have demonstrated that the CEIP ore is unusual in that it upgrades with much lower energy than might be expected, and certainly much less than other magnetite ores,” Andrew explains. “This, together with the efficient mining method and mine to customer logistics chain, results in very competitive operating costs. Furthermore, the flow sheet has been designed to produce a premium product that will reduce energy use and emissions in steel making. This will assist steel manufacturers adjust to ever tightening operational standards - attracting premium pricing.” The results of the Optimisation Study paved the way for the most recent agreements to be signed, including with Emerald Grain, owned by the Sumitomo Corporation of Japan - one of the world’s largest diversified trading houses with offices in 60 countries. Emerald Grain would become a third party user of the deep water port at Cape Hardy, which will be the State’s first port able to load Capesize vessels. Besides helping to provide much needed infrastructure on the Eyre Peninsula, the involvement of Emerald Grain will benefit local growers through lower grain handling costs that the addition of a new player would bring. Andrew believes other industries will look at using the Cape Hardy facility.
“The combined project can bring great benefit to the Eyre Peninsula. Later this year we will put out a public document seeking expressions of interest to use the infrastructure which will enable us to comprehensively understand its full potential.” “We will have a large forklift that can handle sea containers and will therefore have the ability to import and export other containers so possibly, fish food, fertiliser, machinery. We’re also talking about exports of hay as a potential.” Andrew says. The agreement signed recently with global giant China Rail, the world’s second largest infrastructure company, involves a 12-month Project Commercialisation Program, although Andrew says this may be fast-tracked to eight or nine months. China Rail will be an integral partner, helping to firm up the CEIP’s construction and operations strategies, pricing the project “as it will be built”. China Rail plans to contribute a direct investment of 15% to the project’s equity and will also provide consultancy services totalling $5 million. “We expect to achieve significant costs savings through this program and realistically target at least a 15 percent reduction in capital expenditure.” Andrew explains. In yet another agreement, between Iron Road, China Rail and Shandong Iron and Steel (China’s seventh largest steel manufacturer)
Opportunity 17
– the three parties will review the CEIP to “maximise value of the project and see how they can accelerate development”.
So while a lot is happening, a lot remains to be done, including government approvals and funding. However Andrew is quietly optimistic.
“I have been working on this since 2007 – I like the project, I like the area we are working in and we’re looking forward to making a long term, meaningful contribution.”
Jobs and lifestyle Standing eight metres high, the granite statue of The Australian Farmer in the small town of Wudinna is a constant reminder of the importance agriculture has played in the local region since its settlement. Now many in the area hope another industry may work alongside the farmer, supporting the agricultural communities and contributing to the prosperity of the central Eyre Peninsula. With a population of just 600, Wudinna is facing challenges similar to that of other shrinking rural communities, including diminishing social and sporting opportunities, jobs and the decline in services that accompanies smaller populations such as health, education, infrastructure and retail. The team at SA based Iron Road have had many discussions with local residents and landholders, learning about the community and asking questions to understand how their project would best assist the region. Andrew and his team recognise the benefits a project this size can bring and are committed to maximising the opportunities for locals during
the construction and operation phases of the mine and associated infrastructure. Likewise, community stakeholders have asked many questions about the project, which the Iron Road team have addressed through numerous one on one meetings and group consultations. Leon Petty from the Wudinna Meat Store has a good understanding of the CEIP project and is optimistic about its potential benefits. While he’s not sure yet how much work he might be able to tender for at the mine camp, Leon believes if the CEIP brings an influx of families that would be an enormous benefit for the region. “Our main concern is to get families here,” he says. “The sporting clubs are suffering and the school numbers are struggling, so it would be great for the whole community if more people came to live in the town.” With an increase in population, Leon says
his family business, like many others in the town, could only benefit from an increase in customers. Mark Pfitzner, a grain grower and livestock producer from the Port Neill area agrees that larger regional populations have many advantages. The establishment of a port facility near Port Neill would assist that town, which currently has neither a supermarket nor takeaway facilities. Opportunities for the wider Tumby Bay region would also increase. He says a mining project of this size, as with any development, has both positives and negatives for those in the immediate vicinity. At a personal level, he’s neutral about the mine and rail corridor, and positive about the impact of a local port and cheaper export route for his grain. “My great grandfather chaired a committee 50 years ago that tried hard to establish a port in the same location at Cape Hardy.” Mark says. “The circumstances haven’t changed in that there’s still a need for that port and I have a passion to see what he foresaw come about.”
ISSUE 03 RESOURCING SA Winter 2016
18 Opportunity
Local jobs at heart
While the oil & gas industry continues to adapt to testing times and plans for a sustained lower oil price, companies are proving resilient and South Australia is seeing new opportunities for local businesses and workers – including through BP’s work in the Bight.
A
fter years of planning, the offshore oil & gas industry is finally showing signs of life in South Australia.
BP is leading a group of experienced oil & gas enterprises that plan to explore in the Great Australian Bight. While many of these operate globally, the benefits for local South Australians are becoming very clear. Subject to regulatory approval, BP expects to start drilling two exploration wells off the coast of South Australia late this year. The project team is working closely with the National Offshore Petroleum Safety and Environment Management Authority on its environmental plans, with an updated submission lodged in March this year as part of the normal iterative process.
ISSUE 03 RESOURCING SA Winter 2016
The Ocean GreatWhite drilling rig will be located offshore (not visible from the coast), supported by new onshore infrastructure currently under construction. These facilities will play an integral role in the safe and efficient exploration program, while providing a host of opportunities for local jobs. BP opened its Marine Supply Base in Port Adelaide in early March. At the opening, Claire Fitzpatrick, BP’s Managing Director, Exploration and Production, Australia, said she was proud the company was partnering with ASCO and its global expertise, together with highly respected South Australian businesses Flinders Logistics and Flinders Ports.
“The Marine Supply Base will be used to provide specialist materials to the Ocean GreatWhite offshore drilling rig, store large amounts of equipment, host a drilling fluids plant and provide a dedicated wharf area for supply vessels,” Claire said. Andrew Pellizzari, General Manager, Flinders Logistics, said “Our team is proud to work with BP and ASCO to bring our strong safety and environmental management skills to land-side operations at this marine supply base”. ASCO’s CEO Australasia, Matt Thomas, commented on the local input. “ASCO is committed to providing opportunities to the local workforce, with over 70 percent of staff on-site calling South Australia home,” he said.
Opportunity 19
At the Marine Supply Base launch this year, from left, Stewart Lammin, General Manager Flinders Ports; Andrew Pellizzari, General Manager Flinders Logistics; Matt Thomas, CEO Australasia ASCO; Senator Sean Edwards, South Australia; Claire Fitzpatrick, BP’s Head of Exploration and Production, Upstream, Australia; Tom Koutsantonis, SA Minister for Mineral Resources and Energy Image: Andy Steven
A drilling fluids plant has been built at the base, with South Australian company Ottoway Engineering heavily involved through the supply of 10 large tanks for the recycling of drilling liquid used by the offshore drilling unit. Weighing 20 tonnes each, the tanks were designed in Ottoway’s Adelaide office and constructed at its Whyalla manufacturing facilities. Group Business Development Manager at Ottoway Engineering, Michael Lewis, said their local employees were excited to be working on South Australia’s first drilling fluid supply base. “It’s a great opportunity for our team to be working closely with such professional international operators as M-I SWACO, Schlumberger, Case and BP and open global networks that may create further business outcomes in the future,” he said.
Claire said BP’s exploration program had underpinned around 70 jobs in South Australia to date. “When operational, our contractors are expected to employ people at the Marine Supply Base in Port Adelaide and at the aviation base in Ceduna. There will be about 180 roles on the rig, so several multiples of that once you allow for shifts. It’s difficult to give a definitive number while we are still working on the logistics, but there will be direct and indirect jobs.” Another local business, McMahons Services, will carry out civil construction works at the aviation base at the Ceduna airport, including a hangar for helicopters, lighting, passenger processing facilities and laying of bitumen.
Managing Director David McMahon said, “As a South Australian-owned and operated business we are thrilled to win this work and see the benefits of such an exciting project in South Australia”. The aviation base will receive daily flights to and from the Ocean GreatWhite rig and charters from Adelaide. This infrastructure project marks another step forward for the exploration drilling program, which BP has committed an investment of $605 million. With further preparations required before drilling later this year, the buzz of activity and opportunity for South Australia is likely to grow louder.
ISSUE 03 RESOURCING SA Winter 2016
Opportunity 21
Billion dollar
transformation
By Tom Kenyon MP
The attitude of the Australian Labor Party (ALP) to the nuclear cycle has varied over time. With the advent of first nuclear weapons during the Second World War and soon after that commercial nuclear power generation, the ALP’s policy was to support the mining of uranium, conversion, enrichment and power generation. Rising awareness of the possibility of nuclear war and the widespread knowledge of the incident at the Three Mile Island power station in the US led to a changing in public opinion against the nuclear cycle during the 1970s. However, since the end of the Cold War and rise of a fear of global warming, public opinion against the nuclear cycle has lessened over time and is now much more inclined to accept both nuclear power and to a lesser extent, spent fuel storage. I think we should be using cash generated from the storage of spent nuclear fuel to transform the infrastructure of the State and using that to remake South Australia so that it becomes a spectacular state. One that people from interstate and overseas want to visit, move to and set up businesses in. One that is noted for amazing architecture, incredible public transport and public amenities, liveable and desirable cities, outstanding cultural precincts and support for the arts, education institutions without peer and a well-protected and well-visited physical environment. There are a number of potential customers for such a proposal. Taiwan, for instance, has three nuclear power stations. When power users pay their power bills in Taiwan, an amount of money is set aside to pay for the disposal of the waste generated by the reactors. I am told that currently there is US$9bn cash in the account. It is reasonable to assume that we could get the full US$9bn from Taiwan. The Royal Commission in its tentative findings found that it would be possible to generate
We should be using cash generated from the storage of spent nuclear fuel to transform the infrastructure of the State and using that to remake South Australia so that it becomes a spectacular state $257 billion in revenues whilst at the same time expending $145 billion in costs. It estimated that by establishing a State Future Fund, it would be possible to generate annual revenues to the State Government of $5 billion. Just think about that for a minute. The annual State budget is about $16 billion so we are talking almost a third of the current budget in extra revenue. That money should be used to build the infrastructure this State needs and frankly, only infrastructure. There has to be some discipline on government spending and also, the benefits have to spread widely across the community. Infrastructure is the best way of doing that. It provides a jobs boost and a platform for South Australian companies to grow and start winning contracts overseas. Further, it allows the government to get ahead of population and build the infrastructure a community needs when it needs it. That would allow the population of the State to increase and to increase the size of our regional cities. See the breakout box for what I would build.
I’d also do some spectacular things. For instance, a modern art museum or a national Indigenous art museum as suggested by former Liberal Minister Ian Evans. You could afford to put all the roads through the parklands underground so that you had a continuous ring of parklands around the city. We could even build the resources port that has been talked about for so long. There are so many other things that could fit on this list. It’s a big thing for us to think about, but it is an even bigger opportunity for us to build a spectacular state. The opportunity exists to build things not just on economic grounds but because we want them and they will make the State better and more attractive. In 20 years, people will be talking about Adelaide in hushed tones, but by then, it will be for all the right reasons. Tom Kenyon is the Labor Member for Newland.
What would I build? • Improve our roads so that they are the best and safest roads in Australia • Rebuild local sporting club infrastructure • Reinvigorate schools including classrooms, libraries and science labs • Accelerate hospital upgrades and maintenance • An underground railway like the Paris Metro • Fast Trains to outer city and inner country areas (Barossa, Clare, Pt Pirie) • High Speed trains to outer country (Pt Augusta, Pt Lincoln, Mt Gambier) • Building a ring route around the city, tunnelling where necessary ISSUE 03 RESOURCING SA Winter 2016
22 Opportunity
HISTORY
IN THE MAKING
On 6 May the Nuclear Fuel Cycle Royal Commission handed down its findings. The focus was on four key issues surrounding South Australia’s role in the nuclear fuel cycle, these are summarised below.
Exploration and mining Currently South Australia mines uranium at Olympic Dam, Honeymoon, Beverley and Four Mile. The Commission examined the regulatory process of uranium mining, finding it sufficient to support safe expansion activity. However, existing approvals processes for new uranium mines were found to be unnecessarily duplicated at State and Federal levels with reform recommended to a single environmental assessment process for new projects. The Commission also recommended the SA Government enhance the public availability of geophysical data and undertake further geophysical surveys in priority areas, where mineral prospectivity is high and access to data is limited. Overall, the Commission highlighted that South Australia could play a larger role in the exploration and mining of uranium, which would provide additional benefits to the State economy by way of jobs and royalties.
Uranium enrichment The Commission found that the most significant environmental and safety risks associated with further processing uranium (enrichment) for use in nuclear reactors are posed by chemicals, rather than radioactivity. Many of these materials are already used and safely managed in Australia. The Commission found that South Australia is capable of providing enrichment services but significant barriers to entering commercial markets exist and markets are oversupplied, however a competitive advantage could be possible if further processing accompanies a guarantee to take back used fuel. The Commission recommended the SA Government remove at the State level, and pursue removal at the Federal level, existing prohibitions on the licensing of further processing activities to enable commercial development of multilateral facilities, as part of nuclear fuel leasing arrangements. The Commission also recommended the SA Government promote and support commercialisation strategies for the increased use of the cyclotron at the South Australian Health and Medical Research Institute.
Nuclear energy
Storage and disposal of spent fuel
Nuclear power is a source of low-carbon energy comparable to other renewable technologies. The Commission noted that to meet Australia’s future energy needs action must be taken now to plan for any potential implementation of nuclear solutions.
Around the world there are large inventories of used nuclear fuel and intermediate level waste in safe, but temporary storage. International consensus agrees the best available approach to long-term disposal of used fuel is through deep geological storage.
The Commission recommended that the SA Government pursue removal at the Federal level of existing prohibitions on nuclear power generation to allow it to contribute to a low-carbon electricity system, if required. The Commission also recommended the SA Government lead and collaborate on the development of a comprehensive national energy policy that enables all technologies - including nuclear - to contribute to a reliable, low-carbon electricity network.
The Commission found that South Australia has the necessary attributes and capabilities to develop a world-class disposal facility, and importantly, to do so safely. The Commission determined that a spent fuel disposal facility could, conservatively, generate a net present value of $51 billion during its operation and 7500 plus full time jobs. By accumulating all operating profits in a State Wealth Fund, and annually reinvesting half the interest generated, a fund of $445 billion could be generated over 70 years representing immense opportunity for South Australia and the nation.
The Commission also recommended the SA collaborate with the Federal Government to commission expert reporting on the commercialisation of new nuclear reactor designs that may offer economic value for nuclear power generation.
ISSUE 03 RESOURCING SA Winter 2016
The Commission recommended immediate steps to define a concept for the storage of spent fuel; establish an agency to undertake community engagement in this regard; and remove legislative constraints that currently preclude an analysis of the opportunity to establish these facilities.
The AusIMM International Uranium Conference 2016 7–8 June 2016, Adelaide, South Australia
Regis t Now! er
Images courtesy of Cameco Australia.
The Conference
Leading Conference Partner
Registration now open to the 11th AusIMM International Uranium Conference, the annual and most successful uranium conference in Australia and the world. Like previous years’, there is an action packed program including 40 presentations with many of the premier experts from around the globe presenting. In addition, this year there will be further insight presented into the future of the Nuclear Fuel cycle as well as presentations pertaining to the South Australia Nuclear Royal Commission which will make the conference even more exciting and worthwhile.
Conference Supporters
Keynote Speakers • Jason Kuchel, CEO, SACOME • Daniel Zavattiero, Executive Director – Uranium, Minerals Council of Australia • Troy Wilson, General Manager Mine – Olympic Dam, BHP Billiton
Tours Two tours are on offer to world class sites making the conference an excellent platform for not just the formal program but also the opportunity to see some of the newest and largest uranium production sources in actual operation. • BHP Billiton Olympic Dam, Monday 6 June
Sponsorship & Exhibition Opportunities Showcase your organisation at the conference by signing up as a sponsor or exhibitor. For further details please visit the conference website.
• Heathgate Resources Beverley/Four Mile projects, Thursday 9 June Interesting in participating in the conference program? Visit the website to register today.
www.uranium.ausimm.com.au
24 Feature
OUR
INVENTIVE
GENIUSES
A diverse cluster of engineers, geologists and doggedly persistent teams were honoured in the first ever SA Resources Industry Awards. By Megan Andrews
C
hris Kelsy, winner of four prestigious engineering awards, celebrated his 81st birthday with another win - this time with colleagues through their company IMP Technology, receiving a Statewide Super Innovation in Resources Award for a pioneering invention destined to transform the global mining and quarrying industry. With half a century of engineering know-how combined with a passion to do things better, inventor Chris is the mastermind behind the unique crusher. Work on the project began over a decade ago when he designed and put together the first proto type at his South Australian property on the fringes of McLaren Vale. Chris and son Simon, with the help of other IMP Technology directors and industry supporters, have taken the project through several incarnations to arrive at the current model – a commercial version being trialled in SA at Hallett Concrete. John Doherty, IMP Technology Managing Director said “Our super fine crusher can crush materials of almost any hardness including zircon, quartz or garnet to name a few, down to 5 microns in a wet or dry environment.” The technology is touted as a game changer, as it produces fine particles with dramatically reduced energy use. With rock crushing using a massive 5-10% of the world’s energy use, the implications are huge if proven successful in a commercial setting. So far, that’s looking positive. John has known Chris for decades. In fact most of the Directors have a long history. The technology is a passion they’re all excited about exporting to the world. The inaugural Statewide Super Innovation in Resources and Ocean Partners Commercial Achievement awards come under the banner of the new SA Resources Industry Awards, an
ISSUE 03 RESOURCING SA Winter 2016
initiative of the South Australian Chamber of Mines and Energy (SACOME). The awards were presented at a gala dinner in April under the watch of Treasurer and Minister for Mineral and Energy Resources, Tom Koutsantonis, and stakeholders in SA’s resources industry.
A high commendation was awarded in the Ocean Partners Commercial Achievement category to Mechvac Engineering, a Pooraka family business, for its Heap Leach testing plant - a milestone in its diversification from SA’s automobile industry (see page 36.)
Two winners took home a Statewide Super Innovation Award, with the Adelaide based OZ Minerals team sharing IMP’s limelight, for their hydromet technology – a pioneering innovation combining new chemistry with proven technology to improve the quality of copper concentrate. The innovation has game changing implications for OZ, who own the Prominent Hill mine near Coober Pedy, and for others investigating SA’s highly prospective copper regions.
SA has a surprising number of world class innovators in resources, a key industry in terms of jobs and opportunities, also contributing millions to the State annually in royalties and taxes.
Contributions of this scale make a significant difference, including to services like health and education Dr Chris Giles, an Adelaide exploration Geologist, accepted the Ocean Partners Commercial Achievement Award on behalf of his business Havilah Resources, a company he co-founded over a decade ago. As Managing Director, Chris leads the team who are progressing a suite of SA minerals projects and this year brought their first one online, the Portia gold mine. Havilah was recognised for its innovative funding that enabled Portia to be developed in an investment scarce environment by partnering with contractor, Consolidated Mining & Civil.
Jason Kuchel, Chief Executive of SACOME said “Contributions of this scale make a significant difference, including to services like health and education.” A judging panel including leaders within industry, research and government guaranteed the award’s integrity. Judge Professor Bill Skinner, who leads the Minerals and Energy strand at the University of South Australia’s Future Industries Institute, was impressed at the quality of entries but not surprised, as he facilitates research with some of the most progressive resources teams and developers here and overseas. “It was great to see smaller players amongst the finalists and truly world class innovations.” Professor Skinner commented. Mr Kuchel said the awards highlight that the resources industry is not just about digging holes. “Our Australian mining sector has proven repeatedly that it’s driven by innovation and that’s what puts it at the forefront globally.” he said. Awards finalists together with other local resources innovations will be shared at an Innovation Summit to be hosted by SACOME in September this year.
Feature 25 Winning for SA Statewide Super Innovation in Resources Award Winner: OZ Minerals Winner: IMP Technology
Ocean Partners Commercial Achievement Award Winner: Havilah Resources High Commendation: Mechvac Engineering
The finalists & their projects 1 2
OZ Minerals: Hydromet technology to upgrade iron ore copper gold minerals concentrates and remove impurities, resulting in a significantly purer product and lower export costs. IMP Technology: Super fine crushing technology for the mining and quarrying industries to cost effectively produce fine particles with dramatically reduced energy use. Havilah Resources: Development of the Portia gold mine via an innovative mining and funding agreement with local mining contractor, Consolidated Mining & Civil. Mechvac Engineering: Heap Leach technology demonstration plant collaboratively designed and built/installed for BHP Billiton Olympic Dam and Bureau Veritas. Hillgrove Resources: Oxide ore treatment to recover copper concentrate in historical ore stockpiles at the Kanmnatoo Copper Mine, unrecoverable by the conventional flotation process.
3
Flinders Logistics: Applying misting fan technology to the discharge of lead concentrates from vessels and in the blast furnace of the Nyrstar Port Pirie Smelter. Novafast: Design and engineered GRP piping for the unique seawater transfer and discharge system at the greenhouses for Sundrop Farms
The judges John Spoehr - Director, Australian Industrial Transformation Institute Pauline Carr - Resources industry executive, board member and consultant Barry Goldstein - Executive Director – Energy Resources, Department of State Development Professor William Skinner - Minerals and Resources Engineering Strand Leader, Future Industries Institute at the University of South Australia Wayne Hutton - Business Development Manager, Statewide Super Christine Charles - CEO, RREDD, member on a number of advisory boards Alice McCleary - Director, Archer Exploration member on a number of boards including the SACOME Council David Cruickshanks-Boyd, National Director of Sustainability - WSP Parsons Brinckerhoff
4
1. The winning team from OZ Minerals 2. Dr Chris Giles, Havilah Resources accepts the Ocean Partners Commercial Achievement Award from Rob Nachum. 3. The winning team from IMP Technologies with Wayne Hutton from Statewide Super 4. The winning team from Mechvac Engineering Images: Andy Steven
ISSUE 03 RESOURCING SA Winter 2016
26 Opportunity
Scaling new heights
Right now, investment in the minerals industry is scarce. But SA’s dynamic minerals future is anything but bleak with some of our proven winners striding towards exciting growth plans. By Megan Andrews
I
t can be difficult not to focus on the negatives in tough times. But SA’s minerals sector has weathered many storms since the silver, lead and copper mines of the 1800s heralded the arrival of an industry that has continued to play a pivotal role in SA. SA hosts a myriad of fantastic opportunities, projects quietly developing, adapting to the times and innovating to drive efficiencies. The minerals in the ground are owned by the State and those who develop them transform these assets into opportunity - growing their businesses while benefiting South Australians through royalty payments, employment, regional opportunities and more. Many of these are scaling new heights under the care of dedicated teams, with major growth planned in the near term. Olympic Dam is the fifth largest copper deposit in the world and employs thousands in South Australia. Last year, the mine spent $580 million on local SA services, paid $70 million in taxes and royalties, spent $8 million on Aboriginal enterprises and $1.6 million on community initiatives. Also last year, under the prudent management of new mine chief Jacqui McGill, the mine made impressive inroads towards its transformation from one of the highest cost copper producers globally to one of the lowest – potentially paving the way for capital investment that could realise much more of the giant deposit. This year the mine’s on track to exceed its planned 200,000 tonnes copper output, 20,000 more than last year. A relatively minor capital investment of $655 million to access the deposit’s southern areas would see annual copper production lift to a massive 280,000 tonnes. Following the 2012 shelving of its highly anticipated Olympic Dam expansion, the company takes a subdued approach with its media these days, but those following the mine’s progress are optimistic that this remarkable asset is on track for low risk growth, well timed for the expected undersupply in the copper market around 2019. OZ Minerals is also well known in SA, with many aware of the local company’s successful Prominent Hill copper-gold mine near Coober Pedy. The Adelaide headquartered business announced a record profit of $130 million in 2015 and advised earlier this year that contrary to previous plans, its Carrapateena project was likely to be fast tracked without a development partner.
Managing Director and CEO Andrew Cole confirmed “With Prominent Hills’ strong cash flows and our current cash balance, we are confident that we can fund the construction of Carrapateena.” Also in the State’s North, Carrapateena is a massive copper resource with a 20 year mine life that would deliver hundreds of jobs and opportunities for local people and others. For cashed up OZ, the current low point in the cycle is an ideal time to start construction with development costs cheaper and risks of schedule or capital overruns lower. Accordingly, the team announced in May that it would embark on a 4Mtpa operation (almost twice the initial size planned) at Carrapateena, with construction to start immediately tenders are filled. The company is also progressing an ore treatment facility to be located at Whyalla, earmarked for construction in 2017, which will also treat ore from Prominent Hill. The additional mine would employ 400, with the Whyalla plant employing 100 during construction and 100 ongoing. Havilah Resources may be lesser known, but not for long. The local business has been working quietly on a collection of SA copper, gold and iron projects for over a decade and this year commenced mining the first of its pipeline of projects with Portia, processing its first gold in April. Portia will produce 67,000 ounces of gold (contributing royalties of $2.4 million.) With a short mine life, Managing Director Chris Giles says it will likely be finished by the end of this year. However Portia’s success is set to enable North Portia, which will produce another 235,000 ounces of gold and 100,000 tonnes copper. In turn, that project will help bring Havilah’s other projects on line, including the much larger Kalkaroo which would employ 200 people over a 20 year mine life. “We hope to make an investment decision on Kalkaroo by the end of this year” Chris says. “Depending on financing, we could press the go button in 2017, heading into 2018 production.” Unlike negative news, which dominates media in a continuum of updates and analyses, SA’s minerals success receive less attention. Resources is a cyclical industry and these projects, together with other remarkable developments, will ensure SA’s at the front foot now – and when the wind changes.
TROWELS to TRACTORS to TECH... Farming & mining - partners then, partners now
→
→
petroleumproducts copper
→
phosporous sulphur
molybdenum magnesium manganese zinc iron+coal =steel clay
sand mineralsands
iron coal gypsum
sand mineralpetroleum- sands products oil
iron+coal+ aluminium =tractor body carbon lead zinc silica
petroleumproducts= plastics
iron+coal =steel graphite
petroleumproducts bronze
brass copper aluminium
potassium oil petroleumproducts
feldspar manganese chromium nickel magnesium graphite diesel=power
phosporous copper
oil petroleumproducts rare earths+ copper= engine wiring
gypsum clay mineralsands copper zinc
iron coal metal alloys tin titanium petroleum-
Leading growth and prosperity for South Australians through a strong resources industry
sacome.org.au
products oil gas silica+ feldspar= glass
28 Workforce
A family affair
Dust, heat, flies, long hours, missing children’s birthdays and Christmas... who would be a Fly-in, Fly-out (FIFO) shift worker? By Steve Whitham Several thousand people regularly fly (or drive) in and out to stints at remote mine or oil & gas operations around South Australia.
do was go to work, get three square meals provided every day and then go back to his room and watch television.”
When asked the question “what do you like about FIFO?” they mostly agree that the pay is pretty good, the living conditions and food are of motel quality or better and you get used to spending time in beautiful remote areas of the country that most city people never experience.
One can understand a little resentment starting to creep in.
But of course there is a downside. It can be particularly hard on family members left at home with the key provider away for weeks on end. Adelaide Hills’ resident Alicia Ranford is the creator of the Mining Family Matters website (miningfm.com.au) which offers a range of services and advice to families who may be struggling with the adjustments and challenges that come with FIFO life. Speaking from years of FIFO experience, Alicia says when her husband Joe was away on shift, her youngest daughter used to hug a laminated picture of her dad and cry herself to sleep. And she recalls working out of a makeshift kitchen under a tarpaulin during house renovations, looking after two young children and coping with an infestation of millipedes, thinking her husband had the better end of the deal. “Even though I knew the reality of how hard he worked I started to feel like all he had to
When Alicia started investigating what resources were available for families to guide them through the pitfalls of FIFO life, she found precious little. She had already been experimenting with various strategies to help the children through Joe’s time away: simple things like Joe going along to ‘show and tell’ at school dressed up in his full hi-vis mining rig – “That was big hit!” So, using her 11 years of exposure to FIFO and the coping mechanisms she had developed, Alicia and her friend, local journalist Lainie Anderson, launched the miningfm website. Initially it was aimed at providing simple tactics for families and partners of FIFO workers to prevent relationships deteriorating under the stress of being apart for long periods. Alicia was amazed by the response, which revealed common issues that had been bubbling away among many families of FIFO workers. Since those early days, the website and the services offered by Alicia and Lainie through their company Mining Family Matters have expanded enormously.
Alicia with children Abby and Sam – an image taken from a local event Joe missed while away and sent to him
Miningfm draws on the services of two psychologists who address, free of charge, issues raised by people who email the website. The advice is then published on a forum for other families, who may be experiencing similar issues. The site has recently expanded into Canada and the US.
It’s about working together to make the most of the situation. Trying to understand each other’s needs and most of all, communicating and then communicating some more. They have also published a number of guides including “The Survival Guide for Families in Oil and Gas”, “The Working Away Guide” and “The Survival Guide for Mining Families”. Their various self-help publications have now sold collectively more than 135,000 copies. Many best selling authors would be very pleased with these figures! Alicia’s initiative in developing a resource based on her experiences to help others is remarkable and she is justifiably proud of her achievement. And a couple of tips for FIFO families? “It’s about working together to make the most of the situation. Trying to understand each other’s needs and most of all, communicating and then communicating some more.” Steve Whitham is a ‘part time FIFO’ person, having filmed safety and other videos for resources companies over the past 25 years. Alicia’s husband Joe has now settled into a local role with SA’s Terramin – he discusses their Adelaide Hills’ project on page 14.
ISSUE 03 RESOURCING SA Winter 2016
Workforce 29
Daniel and Donna Vanderwoude with their children Holly and Chase
Daddy’s long day at work It’s not everyone’s cup of tea, but for the young Vanderwoude family, a two-week on/two-week off work roster is a ‘normal’ way of life. By Lindy McNamara Every 14 days, Daniel Vanderwoude’s young children wave goodbye to him as he heads off to work. It’s no big deal to them – other than Daddy has a very long commute and won’t be back to read them a bedtime story for another two weeks. But for three-year-old Holly and one-year old Chase it’s always been like this and they just get on with life. Similarly, wife Donna has always had her husband missing two weeks out of four and has devised a system for managing as a single parent while he’s away. Such is the life of a FIFO family and while it’s not everyone’s cup of tea, the Vanderwoudes wouldn’t have it any other way. “Sure, the kids miss me, although they don’t really know any different. Dad’s just going to work, they don’t cry and they know I’m gone for a long time.” Daniel has been on the FIFO treadmill for 12 years – first as a contractor at the Moomba Gas Plant and for the past 10 and a half years working for Santos, where he is an Instrument Electrical Supervisor. Several mining companies in South Australia operate FIFO arrangements including big players Santos and BHP Billiton at the Olympic Dam mine. When he started travelling to the far north of
the State for his two-week on/two-week off roster, Daniel was single, living by himself and it was really a “no-brainer”. “It definitely was an easy choice to make and I have really enjoyed it,” he says. “Obviously I miss my wife and kids when I’m away, I also miss birthdays, public holidays and numerous special events. Missing Christmas now is a bit more of a big deal than it used to be. “It’s definitely harder now, but my wife and I have always been like this so we just try and make the most of the time when I’m at home.” That includes plenty of catch-ups with friends and families when he is back in Adelaide and taking short holidays whenever they can. As the children get older and start school this will become more difficult, but Daniel is looking forward to then being able to get involved in school activities, which some parents can’t do because they are in a normal nine to five routine.
the monotony in the evenings by going to the gym, socialising with his work mates, watching a movie and sometimes just relaxing in his accommodation. “But before you know it, you’re back on the plane flying home.” Advances in technology have made keeping in contact with the family much easier too. While he doesn’t Skype, Daniel can call and send text messages or emails whenever he likes, so he never feels isolated from the daily activities in his home. However, he stresses that FIFO is not for everyone. Depending on the employee’s roster and family situation it can be challenging and stressfull. But for the Vanderwoudes FIFO is a part of life and will continue to be their work model for years to come.
From a work point of view, Daniel says FIFO enables him to “concentrate 100 percent” on the job as there are no outside distractions.
“FIFO works for my wife and I – we’ve made it work. We’ve talked about whether it’s beneficial for me to come home, but we both agree this is for us.”
With 11-hour shifts, 14 days straight it can seem a bit like “groundhog day”, but he breaks
And Holly and Chase agree and are happy to wait a bit longer for that bedtime story. ISSUE 02 RESOURCING SA Autumn 2016
30 Community
Excellence
Indigenous headline awards
The significant achievements of companies fostering community programs that help Aboriginal communities were highlighted at the 2016 Premier’s Community Excellence Awards. By Grace Taylor
The resource sector’s leading contribution in Aboriginal training and employment headlined the 2016 Premier’s Community Excellence Awards in Mining and Energy. Treasurer Tom Koutsantonis, acting on behalf of the Premier, opened the awards ceremony that was held as part of the SACOME Annual Resources Dinner. Heathgate Resources Ltd received an Excellence in Social Inclusion award for its exceptional partnership in an Aboriginal School Mentoring program with the Port Augusta Secondary School and the Career Employment Group. This dynamic program equips Year 8-12 students with skill sets for the future, provides unique work experience placements and connects students to further education in the professions and possible employment in the resource sector. Central to this initiative is a commitment to instil in young Aboriginal students the skills, aspiration and confidence to finish school.
The Antakirinja Matu-Yankunytjatjara Aboriginal Corporation (AMYAC) with partner OZ Minerals also won the category for Excellence in Social inclusion for establishing a sustainable, professional and competitive business. The long-standing partnership directly contributed to a successful bid by AMYAC’s subsidiary company, A.M.Y. Environmental Services Pty Ltd for the waste management contract at Prominent Hill in 2015, in which it met all rigorous pre-qualifications that this heavily regulated area entails. In developing a robust business model, AMYAC laid a foundation to leverage longterm business opportunities beyond the life of the Prominent Hill mine and outside of the resources industry. AMYAC was established in 2005 and has a charter that includes pursuing business development opportunities for long-term sustainability, while addressing social issues for the broader community.
This award belongs to each one of the AMYAC members and we’ve shown as a group we can promote wellbeing through economic development Directors William Lennon and Ian Crombie made their way from the State’s far north to the awards ceremony and were proud to receive the award on behalf of their community. William reflected that developing a viable business had involved a lot of time and effort for the community to come together. “We pulled together, we worked hard and winning the waste management contract at Prominent Hill on a competitive basis was a big achievement,” he said. Ian added that establishing a good business model gave stakeholders the opportunity to benefit from economic development, while staying in step with cultural considerations. “This award belongs to each one of the AMYAC members and we’ve shown as a group we can promote wellbeing through economic development,” Ian said. The commercial activity from the new waste management contract is also a launching pad for future business growth, with AMYAC using profits to seed fund new opportunities.
William Lennon and Ian Crombie, directors of the Antakirinja Matu-Yankunytjatjara Aboriginal Corporation with Treasurer Tom Koutsantonis and their award for Excellence in Social Inclusion shared with partner OZ Minerals. ISSUE 03 RESOURCING SA Winter 2016
A spokesperson of the South Australian-based specialist Indigenous business development
Community 31
The Hon Tom Koutsantonis MP presents Kelly Keates of Zonge Engineering with their award. Image: Andy Steven
firm MLCS Corporate Pty Ltd, which assisted AMYAC, noted the corporation had forged important synergies, bringing in expertise to progress their business as needed. Tapping into specialists in the field of business development, legal and accounting services helped to make sure systems were in place to bid successfully for the work. BHP Billiton Olympic Dam Corporation and the Art Gallery of South Australia received an award for Excellence in Supporting Communities for their partnership to deliver the Tarnanthi Festival of Contemporary Aboriginal and Torres Strait Islander Art – a platform celebrating the strength, diversity and richness of contemporary culture. The inaugural Tarnanthi Festival presented Aboriginal and Torres Strait Island art on a scale never before seen in Australia. Attendance at all Tarnanthi exhibitions and events across 22 venues exceeded more than 300,000 visitors. The festival incorporated a two-day Art Fair held in partnership with the Tandanya National Aboriginal Cultural Institute which generated sales to commercial artists and art centres that returned more than $450,000 to remote communities, a particular benefit to artists in the APY Lands. Also receiving an Excellence in Supporting Communities award was Hillgrove Resources and the Kanmantoo Callington Consultative Committee. Hillgrove operates the Kanmantoo mine in the Adelaide Hills and the judging panel
was impressed by Hillgrove’s significant progress towards leaving a positive legacy on surrounding communities and its approach to building durable relationships.
Premier’s Community Excellence Awards
Its Master Planning working party is making excellent headway to obtain the greatest social and economic benefit in relation to art, history and tourism for the area. As part of an ambitious program of seed collection and propagation, the Kanmantoo Callington Landcare group has worked to ensure that during rehabilitation the flora mirrors some of the region’s remnant vegetation.
Excellence in Social Inclusion
The Excellence in Leadership - Women in Resources award went to the Zonge Engineering & Research Organisation.
BHP Billiton Olympic Dam Corporation and the Art Gallery of South Australia
Zonge operates in a number of developing countries and the company has been innovative in supporting women in the communities in which it works. The company has taken a lateral approach to embrace gender equality through its global programs – for example, a dedicated R&D program seeks to reduce the weight of equipment used in geophysical surveys, which in turn removes a significant barrier to women participating in field work.
Heathgate Resources Pty Ltd OZ Minerals and the Antakirinja Matu-Yankunytjatjara Aboriginal Corporation Excellence in Supporting Communities Hillgrove Resources Limited and the Kanmantoo Callington Community Consultative Committee
Excellence in Leadership – Women in Resources Zonge Engineering & Research Organisation (Aust) Pty Commendation - Boral Resources Ltd
In this category Boral Resources Ltd received a commendation for its diversity plan, with results evident in its workforce profile. Grace Taylor works in Resources Information at the Department of State Development.
Hillgrove Resources Limited and the Kanmantoo Callington Community Consultative Committee Image: Andy Steven ISSUE 03 RESOURCING SA Winter 2016
32 Education
TOWARDS THE SAME GOAL SA’s universities are seeing a culture change - and it will affect us all. With a focus on industry collaboration and innovation, the philosophy is shaping a new UniSA institute. By Megan Andrews
The University of South Australia secured esteemed chemist Professor Emily Hilder last year to lead the school’s new, multi-million dollar Future Industries Institute. Honoured the year earlier as one of just three Australian Scientists to make The Analytical Scientist’s Top 40 under 40 power list, Emily has published 124 publications, secured over $17 million in grant funding and been honoured with local and international awards. Despite these accolades, Emily’s appointment likely centred on a combination of leadership skills and her modern ethos of merging academia with industry - including a passion for empowering researchers for careers outside academia. Emily talks the talk, but she also understands the tools, which she’s applying to enhance the outcomes of the uni’s new Institute. “Everyone is driven by the reward structures in their environment,” she comments. “In academic research, the typical reward structure centres on publications and citations. You have to change that if you want to make a difference, so we also have indicators built around industry engagement and commercial income.” She says the university is focused on industry engagement at every point in the curriculum. Perhaps nowhere is this so critical as within the Future Industries Institute. Building from UniSA’s former Ian Wark Research Institute, the Mawson Institute and the Centre for Environmental Risk Assessment and Remediation, the Future Industries Institute covers four strands– Minerals and Resources Engineering, Energy and Advanced ISSUE 03 RESOURCING SA Winter 2016
Manufacturing, Environmental Science and Engineering, and Biomaterials Engineering and Nanomedicine. Emily says the new institute is about sharing not only research, but also facilities. “This is an incredibly expensive facility, we have in excess of $40 million in equipment without even considering building or administration costs, so we’re keen for companies to come in and use our space.” She says. The Institute’s analytical equipment and facilities are open access, with users paying affordable rates for daily or longer term use. Within the Minerals and Resources Engineering strand these facilities include labs devoted to minerals processing, including flotation, hydrometallurgy and physical separation. A specialised electron microscope to analyse particle mineralogy in process streams, and a mini-pilot flotation plant. Professor Bill Skinner heads up the strand. He says the mini-pilot plant is the only one of its kind in Australia, dedicated to R&D and capable of flowsheet testing with just a few hundred kilograms of ore, rather than the tonnes often required by larger pilot plants. “We use the plant when a company wants to test a flowsheet or re-arrange an existing one,” he explains. “A single run can take up to 24 hours, so we get people camping here overnight. The longest we’ve done was a several week campaign for BHP Billiton Chile.” Bill says there are other important factors that set the mineral processing facilities apart.
Professor Emily Hilder
“We’re the only research lab in South Australia with combined Class C labs and quarantine licences. This means we can receive low level radioactive ores, and samples from overseas in a timely manner while satisfying AQIS regulations. This is important for minimising any chemical changes that may occur in transit or quarantine treatment.” Emily points out that many of the people working in the labs are students and early career researchers. “These are the people to drive innovation in the future, so it’s important they know what the end game is.” She’s confident of the opportunities that will evolve from the Institute’s industry centred philosophy. “It will spark something in people, something entrepreneurial. It will enable students to step out and help transform industries from the inside because they’ll already understand them.” Emily illustrates the changing culture through a recent conversation where a researcher told her he would only apply for a prestigious fellowship if it didn’t affect building industry connections early in his career. “We’re seeing this attitude more and more.” Emily says. “It’s new. And it’s really exciting to see those barriers between academia and industry breaking down.”
Workforce 33
Matchmaker
Jacqui Rose and Greg Hall
A mentoring program is helping to remove barriers and support women working in SA’s resources industry. By Bridget Fardon
Jacqueline Rose, who works at BHP Billiton Olympic Dam in the area of health, safety and environment, was one of 22 women who signed up to a pilot mentee program launched late last year. The program, an initiative of the Women in Resources South Australia (WinRSA) and the Women in Mining Network South Australia (WIMnetSA), aimed to support women working in the resources sector by connecting them with a more experienced individual who was able to support them from a professional and personal development perspective. Jacqui, who had never had an official mentor before, was matched with Greg Hall, a mining engineer with more than three decades of experience within the resources industry. “The concept of a structured program that paired me with a respected industry member from outside of my organisation that I may otherwise not have become connected with attracted me to the program,” Jacqui said. Greg is currently working with Rex Minerals as Project Director overseeing the Hillside copper/gold project on Yorke Peninsula. He also holds a number of directorships, a role on the SA Chamber of Mines and Energy Council, and is Chairman of the Advisory Board for the School of Civil, Environmental and Mining Engineering at the University of Adelaide.
The low cost, semi-structured program ensured mentees were carefully matched with mentors who were considered a good fit to their individual circumstances. “The matching of mentees and mentors seemed very good in the case of Jacqui and I, and the background I had of her work location in particular was valuable in our discussions,” Greg said. “The background work that went into pairing up the mentee and mentor was apparent when the relationship developed organically as the program progressed.” Greg was happy to provide a confidential sounding board and a different, more lateral perspective and said he also learnt a lot from the experience. “How younger professionals, women and men, think about our industry has been enlightening, as has the additional learnings about being a woman in certain roles. Planning personal role opportunities and career potential around a partner and family is now more readily taken for granted, but for a professional woman with an employed partner, it still seems to bring in an added amount of ‘anguish’.”
event at PwC in conjunction with a celebration of the 2015 program. WIMNet chair Kate Hobbs, an industry consultant and former BHP Billiton projects manager was also a mentor in the pilot program. “There is a real need to support the progression of women in this industry... and steady demand. “We felt that starting a program under the current market conditions was even more important, due to the current lack of resources available within companies to support individuals, particularly minority groups such as women looking to develop in their careers,” Kate said. The support from male and female mentors has been crucial to the initiative’s ongoing success. Jacqui said having somebody from outside of her workplace for general career discussions had been invaluable. ”The process assisted me in making some significant decisions – not only in my planned career path but also how that fits in to the bigger picture of life goals.”
Building on the success of the pilot, the 2016 program is now underway, launched at an ISSUE 03 RESOURCING SA Winter 2016
34 Innovation
SA entrepreneurs Chris Kelsey and son Simon of IMP Technology celebrating the company’s recent Innovation in Resources award win. See page 24 for details. Image: Andy Steven
START
ME UP!
South Australia currently relies heavily on the resources and agriculture sectors for the majority of its exports, but its future prosperity requires additional, innovative start-up companies to diversify the economy and compete internationally. By Lindy McNamara Everyone seems to loves an entrepreneur… the person who is willing to throw caution to the wind in order to follow their dream of building a company from scratch. Someone who can think outside the square and has a clear vision of how they will create a successful business. And while it would seem we are happy to admire and sometimes share the spoils of those willing to risk it all, we are less inclined to provide any real support to help them fulfil their ambitions. In fact, a recent report commissioned by the State Government reveals that much more is needed to attract and assist innovative startup companies, as it is these businesses that will be creating the wealth of South Australia in the years to come. Besides offering high-value jobs and economic prosperity for SA, perhaps the biggest advantage of helping these start-ups is the diversity they will provide. For too long, the State has relied heavily on the resources ISSUE 03 RESOURCING SA Winter 2016
and agriculture sectors for the majority of its exports and new industries will provide additional fresh streams of generating wealth.
and would support more than 350 start-up businesses, leading to the creation of more than 1200 new jobs.
Prepared by the Redfire Consulting Group, the Implementation Plan for a South Australian Commercialisation Fund offers the government some suggestions on how to assist these start-ups, with the major recommendation being the establishment of a $50 million Venture Capital Fund and a $10 million Early Commercialisation Fund.
“It creates the opportunity for the development of a vibrant environment where entrepreneurs are encouraged to develop their ideas, to take risks, to succeed and to fail. Where investors are prepared to back local entrepreneurs. Where successful entrepreneurs are prepared to assist in the development of the community and mentor up and coming entrepreneurs,” the report said.
As the report noted, the government currently does not have a co-ordinated and integrated approach to developing, implementing and managing innovation policies and programs and often there is “conflict, duplication and inconsistencies” within government in relation to goals, programs and initiatives.
“It will not only encourage local entrepreneurs to have a go, it will also encourage entrepreneurs from outside of South Australia to join the local ecosystem.”
The framework proposed by the implementation plan would encourage “collaboration and continuous dialogue between entrepreneurs and Government”
The government’s chief scientist, Dr Leanna Read, who provided input for the report, said it is important that only start-ups with high growth potential be assisted through the proposed venture fund, “because it is these companies that will generate most of South Australia’s future wealth”.
Section 35 Success stories There are a number of successful innovative companies which have their origins in South Australia, including: SRA Information Technology – innovative software solutions for the resources, environment, compliance and approvals area and more IMP Technology – designs innovative machinery and processes for the resources industry, projects not commercial as yet but potential is high Maptek – at the forefront of innovative mining technology more than 30 years, exporting to and servicing the global mining industry Ellex – laser technologies at the forefront of ophthalmic innovation, with cutting-edge products and technologies for eye disease diagnosis and treatment SAGE Group Holdings Ltd – a system integration company specialising in industrial automation and control systems Scantech Limited – the world leader in the application of online realtime measurement technology for bulk materials CPR Pharma Services – international pharmaceutical services and early phase clinical research and trials REDARC Electronics – development and manufacture of a range of electronic voltage converters and associated products Seeley International – manufacturing machinery and equipment brands such as Breezair, Braemar, Climate Wizard, Coolair
Debbie Constable
Myrioto – a recent start-up that uses low earth orbit satellites to form two-way communication
Australian Institute of Management
Head of Corporate Solutions SA
QxBrand – quantum computing (now US based but all R&D undertaken in Adelaide) Bionomics Ltd – a biopharmaceutical company developing treatments for cancer and central nervous system disorders Codan Limited – designing and building some of the world’s best communications equipment for high frequency radio, satellite and metal detection
BUILD STRATEGIC CAPABILITY WITHIN. Get the competitive edge with AIM Customised Solutions. Every organisation is different and so is our approach. AIM solutions are as unique as the challenges you face.
“Currently there is a lack of investment funding options for early stage growth companies, together with a thin pipeline of opportunities to invest in. It is clear South Australia needs to develop a more entrepreneurial and risk-tolerant culture,” she explained. “Steady as you go is not an option for SA. The industries of the future will be very different to those that have served us well to date”. Commenting on the report, Premier Jay Weatherill said that growth through innovation was one of the government’s 10 economic priorities and the recommendations were an important contribution to the “advancement of the State’s innovation agenda”.
Find out how AIM can help unleash the power within your organisation and maximise business results.
CONTACT DEBBIE CONSTABLE TODAY DEBBIE.CONSTABLE@AIM.COM.AU 0438 167 434 | AIM.COM.AU
“We need to improve the links between industries and institutions, innovators and investors. The smart ideas being developed by our researchers and students need to be matched with entrepreneurs and the venture capital to commercialise them, so we can create the hightech jobs of the future,” he said. SACOME is facilitating an Innovation Summit on 23 September to showcase SA’s innovators in the resources space. ISSUE 03 RESOURCING SA Winter 2016
36 Service provider
UP to the challenge
From humble beginnings Mechvac has gained a foothold in the resources sector and is now involved in a major project to develop new technology for Olympic Dam. By Lindy McNamara
When Byron Burridge took a leap of faith and established his own engineering company in 2003, he had little idea that more than a decade later it would be one of South Australia’s small business success stories. Today Mechvac employs 12 people, boasts a purpose built workshop at Pooraka and is playing a major role in a project that has the potential to change the State’s mining industry into the future.
The safety considerations during the design phase, the engineering development, construction and commissioning activities were planned, managed and delivered to meet the project requirements while working closely with the BHP Billiton and Bureau Veritas teams.
evolving constantly. When they get results, they want to try new things so we continually need to add to it, improve it,” Byron says, adding he is delighted his company is involved in a project that could have a lasting impact on the State by assisting to unlock the incredible Olympic Dam ore body.
“We’re doing constant updates and there is future work coming up. The pilot plant is
About 60 percent of Mechvac’s work comes from the mining and resources sector. Other recent projects have included assisting Halliburton by designing a tower that supports coil tubing as it goes down the oil well head. It has also designed and manufactured a “man basket” which fits at the front of an underground mining rig and provides protection for someone planting explosives underground.
In 2012 the company was contracted to design and install a pilot scale heap leaching (“crib”) facility at Bureau Veritas Minerals’ site in Wingfield. Heap leaching is a process where ore is placed on a lined pad and leaching solutions are dripped onto the ore. Once the leaching solution makes its way through the ore, it is then collected and processed to extract the metal.
While Mechvac also serves the water, food, manufacturing, defence and automotive industries, Byron believes the resources sector will be the growth area for his company.
BHP Billiton has been testing the technology as an alternative, less capital-intensive method to improve the economics of expanding the Olympic Dam copper mine. Bureau Veritas is conducting test work on behalf of BHP Billiton Olympic Dam and called on Mechvac to assist.
“At the moment we have a core group of mining resource companies that we serve, but we want to spread our wings and make contact with new customers. We want to establish ourselves where we can now when the cycle is low, so we are there to ride the wave.”
As Byron explains, initially the company was asked to design, manufacture and install the crib leach facility, pipework and plant services. Super duplex stainless steels were used extensively in the project and this meant employees had to be trained with new specialist welding skills to work with this material.
A design engineer by training, Byron learnt his trade during a decade with Mitsubishi Motors as a manager of major projects. He also worked for the State Government’s Centre for Manufacturing, training graduates in manufacturing engineering. When that program ended Byron decided to take the bold step and set up his own business.
The project was a real test of Mechvac’s capabilities as the timeframe was tight and the company had a lot of other work underway at the time. At its peak, 50 people were involved on the project and suitably qualified sub-contractors were brought in to assist with the work. Despite the pressure, the team came through with flying colours – safely completing the project on time and within budget and sending a clear message to other customers in the mining and resources industry.
ISSUE 03 RESOURCING SA Winter 2016
“Out of the ashes of the graduate program I formed Burridge Engineers” he explains. The opportunity then arose to purchase sheet metal company Newstyle Engineering and from that, Mechvac was formed. Byron and Kate at their Pooraka facility
Mechvac received a high commendation in the SA Resources Industry Awards for its work on the crib leach facility, (see page 24).
EXTRAORDINARY COLLABORATIONS Creating the world we live in
At Aquenta, we deliver integrated project services that streamline, safeguard and add value to mining and oil & gas projects. Our services are tailored to meet each client’s specific requirements, and include: Project Management Risk Management Cost Management Project Planning + Controls Contract, Commercial + Disputes Asset + Facilities Management We work with a broad cross-section of resources clients, many of whom have been partnering with us over several years, including BHP Billiton, Santos, Origin Energy, Chevron, UGL Resources, Rio Tinto and Roy Hill Infrastructure. For any given assignment we draw upon our experience to deliver strategic and hands-on support, bringing together experts from across our business to create a high performing team that will best support your project and deliver extraordinary outcomes.
AQ U EN TA .CO M . AU
A D E L A I D E @ AQ U E NTA .CO M. AU
0 8 8 2 31 33 30
38 Feature
Election priorities
The South Australian Chamber of Mines & Energy requested comment from major federal parties on its election priorities. The Greens and Nick Xenophon declined to comment, other responses are summarised below. Go to www.sacome.org.au for the full report.
SACOME’S RECOMMENDATIONS
LIBERAL PARTY OF AUSTRALIA
AUSTRALIAN LABOR PARTY
FAMILY FIRST
(Bob Day, Federal Senator)
(Josh Frydenberg, Minister for Resources, Energy & Northern Australia)
(Gary Gray, outgoing Shadow Minister for Resources)
A review of the Exploration Development Incentive (EDI) & its continuation post 2017. Removing cap on deductable exploration expenses.
We will review the EDI in 2016 & are building on this through the Exploring for the Future initiative, which provides $100 million for Geoscience Australia to map mineral, energy & groundwater potential, focusing on NT & SA.
We supported the EDI & are keen to see how effective it is regarding additional exploration, we were pleased to see the $100 million allocated to geoscience in the budget.
Family First supports a review of the EDI & potential continuation, & removal of the deductable exploration expenses cap.
A comprehensive reform to the tax system to improve efficiency, enabling removal of regressive taxes by the states. A reduction in corporate income tax encourages investment.
We are committed to a system that boosts investment, leading to higher wages & living standards. The 10-year Enterprise Tax Plan will lower the company tax rate to 27.5% for small business, progressively to 25% for all businesses.
Consequences of the MRRT debate left a sub optimal royalty arrangement in some states. The point of taxation cannot distort investment decisions, tax in the minerals sector must be internationally competitive.
Family First supports a flat 20% tax for individuals, corporations & others. We support the repeal of stamp duty, payroll tax & other regressive taxes.
Federal government use bodies such as Infrastructure Australia (IA) & EFIC for funding arrangements to stimulate infrastructure for SA resources projects.
The IA Infrastructure Plan & Priority list (including improved access to the Cooper Basin in SA) will be a key tool to inform decisions on projects. We will consider a range of funding mechanisms.
I am encouraged at cooperation across SA parliament with federal government (& opposition) focused on ways to support expanding the resources sector in SA.
Family First supports decision making via bodies like IA & EFIC that is independent; evidence-based; determined & tracked on a costbenefit basis for this purpose.
A low profit offset for the Petroleum Resources Rent Tax (PRRT) with profits below $50 million not subject to the tax, to encourage investment by junior companies.
We have no plans to introduce a low profit offset for the PRRT. The focus is delivering our 10-year Enterprise Tax Plan to boost investment across the economy, leading to higher wages & living standards for Australians.
I disagree, the PRRT has been in place for decades & targets revenue without distorting investment decisions. A threshold is unnecessary. PRRT in the offshore environment is effective - but onshore extension introduces complexities.
Family First supports a low profit offset mechanism in the Petroleum Resource Rent Tax (PRRT) to encourage exploration & investment.
Uranium mining & milling be removed from the definition of ‘nuclear action’ & a matter of national environmental significance under EPBC Act; relevant sections of that Act be repealed to enable Australia’s future nuclear industry.
We support uranium exploration/ mining. All options should be part of future energy discussions. We welcome the Nuclear Fuel Cycle Royal Commission and will carefully consider its findings.
I am enthusiastic about the uranium industry & development of broader nuclear technologies. The Royal Commission is an outstanding exercise of bipartisanship & knowledge to inform policy.
Family First moved Senate changes to remove barriers to the nuclear fuel cycle but was not supported by other parties. We are the strongest supporters of a fully functioning nuclear fuel cycle.
Reforms to industrial relations to improve the resources sector’s international competitiveness, including allowing flexibility to react to rapid changes in economic conditions.
We are committed to a strong safety net in the workplace & a framework that does not inhibit economic opportunities. We are committed to re-establishing the Australian Building & Construction Commission & a strong Building Code.
It’s important to have an industrial relations framework that supports greater productivity, better jobs, skills & trades training. Workers, companies, governments, unions all must work together for the best outcomes & to prioritise productivity & safety.
We believe Australian workplace regulation imprisons the unemployed who could get work on terms suiting them. Their right to work is infringed. Workplace regulation protects those with jobs & harms those without.
ISSUE 03 RESOURCING SA Winter 2016
Feature 39 Increasing resourcing to Aboriginal & Torres Strait Islander Representative Bodies to assist resolve overlapping claims & negotiate land access agreements; increasing funding to the Native Title Assistance Scheme.
We are providing $20.4 million to support native title corporations to engage with potential investors & proponents, and supporting native title holders maximise the benefits of their rights & interests.
It’s essential that peoples’ legal rights be protected & supported to ensure properly constructed & informed decisions are made by native title holders.
Family First supports the swift resolution of claims to Native Title & negotiation of agreements to enable investment, community partnerships & jobs for indigenous communities.
The Diesel Fuel Tax Credit scheme (DFTC) for off-road vehicles be retained to ensure business inputs are not taxed & the diesel excise duty purpose maintained as a way for road users to contribute to road costs.
We support the DFTC which ensures fuel tax isn’t paid on business inputs. Removing it would harm Australia’s international competitiveness & lower economic growth, wages & living standards.
The DFTC is supported by a critical set of taxation principals, the first is we do not tax business inputs, to do so distorts investment decisions. The diesel excise is a road use charge & should not be paid by those using diesel but not on public roads.
Family First supports continuing the DFTC. Unlike Labor, Liberals or the Greens, we refused to entertain any increase to diesel or petrol excise.
Reform to coastal shipping be revisited. Costs for shipping within Australian waters are much higher than from Australia to China or vice versa, disadvantaging companies obtaining then processing products at different Australian locations.
We are committed to ensuring Australia has a viable coastal shipping sector that supports local manufacturing jobs. The Government is consulting with stakeholders & developing policy to continue coastal shipping reforms this year.
Labor’s view on coastal shipping has been clear & consistent for over five years, we strongly support Australian jobs in our coastal shipping industries & have been consistent on this matter.
We have been critical of the high cost of coastal shipping & moved for a Productivity Commission inquiry to investigate all freight modes to remove obstacles to their productivity/ competitiveness.
The National Electricity Market be reviewed to ensure the market operates to the benefit of end users. The Government should encourage collaboration of the States through the COAG Energy Council to address network stability & lower prices. Federal energy policies should be reviewed to ensure they don’t distort the energy market.
Through the COAG Energy Council the Government is focused on competition & innovation in services by emerging technologies & ongoing power security. We are committed to improving energy productivity by 40% between 2015 & 2030. A National Energy Productivity Plan has been developed including developing sector roadmaps with the mining sector launch this year.
The only way to balance the needs of consumers, generators & networks is a market with market based principals. Electricity markets are no place for ideology. Our electricity markets require considered support of all actors, state & common. COAG is the best process for this.
Huge renewable energy subsidies have crippled energy affordability & our economy. Family First seeks a Royal Commission into causes of the world’s worst energy affordability. We embrace technologies that deliver energy competitiveness & security including coal, gas & nuclear power.
“
RESA will contribute to the development of the resources and related sectors’ capability and workforces for improved business, social and economic outcomes in South Australia.”
RESA Productivity Breakfast Series The Royal Commissioner discussing options for SA’s future
RESA objectives: • A higher skilled workforce • Improved SME supply chain capabilities
Join RESA and Rear Admiral the Honourable Kevin Scarce AC CSC RAN (Rtd), Royal Commissioner, at RESA’s May breakfast event to hear about the Nuclear Fuel Cycle Royal Commission’s final findings that are due to be released on 6 May 2016. • •
Tuesday May 31 2016, 6:45am for a 7:15am start Adelaide Convention Centre, Riverbank Rooms
The breakfast will focus on: • •
The job and workforce implications of the final findings The skills development potential created by a nuclear industry in SA
$67.50 for a sit down hot breakfast and networking opportunities
Book your seat at www.resa.org.au/events
www.resa.org.au info@resa.org.au 08 7325 8555 ISSUE 03 RESOURCING SA Winter 2016
40 Innovation
on the move Just add Waters
Challenge accepted
Leigh Creek Energy continues to build, adding Michelle Waters as its environmental manager.
WPG Resources has welcomed two new additions to its senior management team. Marcus Doyle has been appointed as the General Manager of the Challenger Joint Venture and Narghiza Ergashova has taken on the role of WPG’s Group Financial Controller.
With more than 20 years in environmental approvals and compliance, Michelle recently spent five years with mineral sands producer, Murray Zircon as it wound down its operation at Mindarie. Successful rehabilitation at the site earned Michelle and her team a High Commendation in Environmental Excellence at the 2014 Premier’s Community Excellence Awards. Her appointment at LCK moves the focus to its Environmental Impact Report for the Leigh Creek Energy Project and approvals for its
Where there’s a Wills there’s a way
Michelle Waters, Leigh Creek Energy
demonstration plant on the existing Leigh Creek coalfield as it looks to demonstrate gas flaring. Michelle is also a member of SACOME’s Sustainable Development Committee.
Investigating change In mid-April Investigator Resources announced it was in the process of closing the Brisbane Head Office and consolidating in Adelaide. The move is also spearheading a drive to reduce the costs of Investigator’s on-going exploration and development opportunities. The company said that as a result of the relocation, Peter Harding-Smith would resign as Chief Financial Officer and Company Secretary, with the new appointment of Angelo Gaudio to that position.
Dr Wills opens the 2016 Exploration & Mining conference
Chairman of the South Australian Exploration and Mining Conference and industry veteran Dr Kevin Wills has been appointed as Chief Consulting Geologist of Marmota Energy. Dr Wills is recognised as a pioneer of the use of calcrete sampling for gold exploration in the Gawler Craton. In particular, he designed the calcrete sampling program that ultimately led to the discovery of the Challenger Gold Mine. “Marmota is delighted to bring on board a geologist of Kevin Wills’ calibre and experience – particularly in our highly prospective Gawler Craton gold region around the Challenger gold mine – both guiding and focusing Marmota’s exploration program.,” said Marmota’s Chairman Dr Colin Rose.
Anderson moves on Gerard Anderson has resigned as managing director of Archer Exploration, effective 30 June 2016. Gerard was instrumental in the progression of the company’s exploration projects and in particular the Gerard Anderson development of the Eyre Peninsula Graphite Project, host of the company’s Campoona Shaft, Central Campoona and Wilclo South JORC graphite resources. “Gerard has been a director of the company since July 2008 and held the position of managing director at Archer since October 2010 and during that period has made a significant contribution to positioning the company for future growth,” said Executive Chairman Greg English.
Executive Chairman Bob Duffin said these senior management appointments and the start of the recruitment process for the Challenger gold mine reflected the strategic positioning of WPG as the company progresses the development and operation of the mine.
Excom on board Santos has announced the establishment of a new executive team (Excom), which will report to the CEO, Kevin Gallagher. The Excom team includes senior executives Bill Ovenden, Vice President Exploration; Brett Woods, Vice President Development; Vince Santostefano, Chief Operations Officer; John Anderson, Executive Vice President Commercial and Business Development; Andrew Seaton, Chief Financial Officer; and Angus Jaffray, Executive Vice President Strategy and Corporate Services. Kevin Gallagher said “The appointment of the Excom is a key step in establishing a new operating model for Santos that is focused on both lifting productivity and driving longterm value for shareholders in a low oil price environment.”
Iluka’s succession plan The board of directors of Iluka Resources will begin a succession plan for its Managing Director and Chief Executive Officer, David Robb during the second half of 2016. David, who joined Iluka in October 2006, will remain in his role until succession is finalised. said: “Iluka has been transformed under David’s 10-year leadership and is very well placed financially at present with no debt, significant funding capacity and positive cash flows supporting investment and shareholder returns,” said Iluka Chairman, Greg Martin. “David’s tenure has also seen major achievements in project execution, mineral sands marketing, workforce diversity and engagement and in corporate sustainability practices.”
Uncover Earth’s Past to Discover Our Future
26 - 30 June 2016 – Adelaide Convention Centre PLENARY SPEAKER
SELECTED KEYNOTE AND SESSION TALKS
PROFESSOR RICHARD GOLDFARB Gold deposits in metamorphic rocks: Why are we getting more confused?
WORKSHOPS Orogenic Gold Deposits: Geology, Geochemistry, Exploration Criteria and Global Patterns. Professor Richard Goldfarb (Colorado School of Mines/China
NEW
Visit aesc2016.gsa.org.au for full details of conference sessions, symposia, workshops and field trips.
aesc2016.gsa.org.au
University of Geosciences). Friday 1st July.
Theme: Mineral Endowment: Formation and Exploration of Mineral Deposits; Their Tectonic and Geochemical Environment and Significance Rob Hough (CSIRO) Detection of mineral system signatures through cover – A bigger picture. Session: New technologies in mineral exploration
Epithermal and porphyry Au-Cu-Ag ore deposits.
Nick Oliver (HCOV Global)
Dr Greg Corbett (Corbett Geological Services).
Combined slow and rapid mineral precipitation
25-26 th June.
in lode gold and IOCG deposits.
New mineral characterisation techniques.
Session: Integrating structure and geochemistry
Dr Margauz Le Vaillant & Dr Yulia Uvarova
Theme: Earth Science for Energy: From Hydrocarbons to Renewables
(CSIRO). Sunday 26th June.
FIELDTRIPS
Dr Peter McCabe (University of Adelaide)
IOCGs – Where it all began:
Will fossil fuels ever peak?
the Moonta-Wallaroo region
The future global energy mix.
of the eastern Gawler Craton.
Session: Energy 2050
A/Prof Colin Conor (UniSA).
Nigel Rees (University of Adelaide)
25-26 th June.
Monitoring of coal seam gas
Olympic Dam on site core display.
depressurisation using magnetotellurics.
Dr Kathy Ehrig (BHP Billiton). 1st July.
Session: Gas from coal
PUBLIC FORUM – NUCLEAR ENERGY This will be a Q&A-style discussion that is open to
Moderator:
the public and focussed on the pertinent topic of
Dr Paul Willis (RiAus)
nuclear energy. Does Australia need to consider
Panellists include:
nuclear energy as part of its future energy mix?
Dr Vanessa Guthrie (Toro Energy);
What are the potential environmental impacts?
Prof Ian Lowe (Griffith University);
What are the alternatives?
Prof. Barry Brook (UTas) and
Monday 27th June, 7.30 pm,
Tony Irwin (SMR Nuclear)
Adelaide Convention Centre
REGISTRATION Full and one-day registrations available from aesc2016.gsa.org.au/registration. Reduced rates for students and retirees. Bookings also available for conference field trips and workshops – register early to secure your place! PHOTO: Pleistocene sediments of the Hindmarsh Clay (red) and unconformably overlying Bridgewater Formation (white) in cliff exposures at Balgowan, Yorke Peninsula, South Australia. Photo courtesy of Caroline Forbes
www.aesc2016.gsa.org.au
We look forward to seeing you in Adelaide. T +61 8 8125 2200 F +61 8 8125 2233
E aesc2016@aomevents.com © 2016 Geological Society of Australia Inc.
42 News Up to the challenge After finalising the acquisition of the Challenger gold mine in March, WPG Resources is looking forward to restarting mining operations by the middle of the year. Located in far west South Australia, the gold mine is currently in care and maintenance, however WPG is producing a revised mine plan focusing on using smaller scale mining equipment and reducing dilution to result in a more efficient operation. WPG has purchased Kingsgate Consolidated’s half share in the project, with Diversified Minerals owning the other half stake. “The Challenger Joint Venture mine restart plan is well advanced and will be detailed in a separate announcement once it is completed and adopted,’’ the company said.
Deal done Beach Energy has announced that all conditions relating to the scheme of arrangement for its merger with Drillsearch Energy have been satisfied. As a result, Drillsearch is now a wholly owned subsidiary of Beach. Acting Chief Executive Officer Neil Gibbins, said, “From Beach’s perspective, the merger provides an additional 19,000 km2 of gross acreage within our core Cooper Basin area. It delivers full ownership of our key Western Flank oil and gas permits, expands our gas and gas liquids acreage, and provides an enlarged exploration footprint”.
Census online for 2016 The Australian Bureau of Statistics conducts the Census of Population and Housing every five years, aiming to include every person in Australia. This year the Census will be held on Tuesday 9 August. The Census covers people at work in remote locations, including half of the approximately 10,000 South Australians in the last Census who worked in the mining and oil & gas sectors with a place of residence outside of Adelaide. Respondents must identify their usual place of residence as the place where they spend more than six months of the year. Mining activities bring much needed income to areas with low population density that may otherwise not receive funding for essential services. The information provided in the Census informs decisions about some of these services – including housing, transport, education, industry, hospitals, and the environment. Therefore, it is important that workers residing at a mining or petroleum camp for more than six months of the year identify this accommodation as their usual place of residence.
In 2016, the Census is changing to make it quicker, easier, cheaper and more environmentally friendly. From early August, most people will receive a letter with a login code and instructions on how to complete their Census online. More than 65 percent of households are expected to use this format including via tablet or a mobile device. People unable to complete the Census online may request a paper form to be sent back in the reply paid envelope. Anyone at work on a mine site on 9 August must fill out the form online or request a paper form from their site manager. It’s compulsory for everyone in Australia to be included on a Census form on Census night. People need to be aware that this information will not be shared with other government departments or agencies – it’s the law. Neither Centrelink, the Australian Tax Office or even the police will see any personal information. To find out more about the 2016 Census, visit census.abs.gov.au.
Surveying milestone
As part of that integration, Beach announced late last month it would cut 64 jobs by the end of May as it closes Drillsearch’s Sydney office and removes duplicated operational and corporate positions. New Chief Executive Matthew Kay commenced with Beach in May this year.
Core strength The new $32.3 million Drill Core Reference Library at the Tonsley precinct was officially opened by Premier Jay Weatherill in February. The Premier said the facility housed a priceless collection of the State’s geology and would help explorers “uncover the next wave of resource discoveries” in South Australia. “This flagship facility will bring together more than 7.5 million metres of drill core samples from across the State, capturing more than 100 years of exploration,” he said.
ISSUE 03 RESOURCING SA Winter 2016
South Australian surveying consultancy Alexander Symonds has reached a 45-year milestone of supporting the State’s mining sector. Since completing surveying projects for Santos in the Cooper Basin in the early 1970s, the company has been involved in a host of local mining and resources projects. Alexander Symonds Managing Director Glenn
Hordacre said the company was proud of its commitment to the local mining sector and was confident about the industry’s future despite its current challenges. “We pride ourselves on being one of the top surveying consultancies in the country and the extensive work we have undertaken in SA’s mining sector has certainly been integral to our success,” he said.
News 43 Administrator hopeful
In a dark day for South Australia, Whyalla steelmaker and iron ore miner Arrium was placed into voluntary administration by its directors in early April. At the time, it was revealed the company owed around $4.3b – $2.8b to lenders, $1b to suppliers and $500m to staff.
Major signings for Iron Road
Iron Road’s $US4 billion Central Eyre Iron Project (CEIP) has taken some major steps forward in recent months.
firm up the CEIP’s construction and operations strategies, with the view of reducing capital expenditure by at least 15 percent.
In the first announcement, global grain handler Emerald Grain said it plans to develop a new grain distribution and supply chain network utilising Iron Road’s planned rail and port facilities at Cape Hardy on the Eyre Peninsula.
China Rail has entered into a 12-month exclusivity agreement with Iron Road, as the prime construction contractor for the CEIP and providing consultancy services to the project.
“Working together with Iron Road allows us to realise our shared vision to deliver the most efficient supply chain we possibly can. Ultimately this is about doing all we can to help growers remain viable and compete on the world market,” he said. In further good news, Iron Road announced last month the signing of a Strategic Cooperation Agreement with a wholly owned subsidiary of China Railway Group Limited (CREC), China’s largest rail engineering firm. The agreement will see China Rail helping to
In another major development, Iron Road signed a tripartite cooperation agreement with China Rail and Shandong Iron and Steel. This agreement will see the three parties working together to evaluate the commercial and technical aspects of the CEIP, with the intention of collectively advancing the project towards a Final Investment Decision. Iron Road released results of an optimisation study last year that reduced operating costs to $37 a tonne and a recent announcement confirmed these had been brought down to $35 a tonne. Work to target further efficiencies is continuing.
Arrium has around 6700 employees, with 1600 in South Australia, 2800 in New South Wales, 930 in Victoria, 900 in Queensland, 350 in Western Australia, 60 in Tasmania, 40 in the Northern Territory and 30 in the ACT. The Newcastle-based subsidiary Moly-Cop, which primarily manufactures products used in the mining sector, is profitable and was not covered by the administration. Initially, administrators from Grant Thornton were appointed and assumed control of the company’s day-to-day operations, working with lenders, staff, suppliers and government to review the steelmaker’s business model. However on 12 April, Mark Mentha, Bryan Webster, Martin Madden and Cassandra Mathews of KordaMentha took over this role. The future of the company remains uncertain but the Administrator has confirmed they are confident in the steelworks and is working on options with the State and Federal governments to facilitate Arrium’s ongoing operations.
The art of getting talked about. McCo Group has the team, tools and tactics to get you talking with your markets – and to get the town talking about you. We create targeted, engaging content that builds profiles and reinforces reputations. We know every client’s brand and strategy is different, and we develop solutions tailored to each project’s unique objectives. At the very core of McCo Group, you’ll find smart communication that delivers results to businesses and organisations of all sizes, structures and industry sectors.
From frontline reputation management and stakeholder engagement, McCo Group brings media training and presentation workshops to your table, along with website and content creation, marketing collateral and cost-effective, broadcast quality video production. From an event to a national strategic campaign, McCo Group makes sure your audience will read, see, hear, share and know all about it.
mccogroup.com.au contact@mccogroup.com.au
44 News Iluka suspends operations
Top SA firm
Subdued global demand for zircon has resulted in Iluka Resources suspending its mining and concentrate production activities at its JacinthAmbrosia operation near Ceduna.
Aurecon was awarded best South Australian firm (all professions) and best provider to the power and utilities sector at the 2016 Financial Review Client Choice Awards. Winners and finalists were chosen based on results from Beaton Benchmark’s overall client service performance reports gathered from Australia and New Zealand. The research
Jacinth-Ambrosia was a globally significant source of zircon and at peak production had the ability to supply 25 to 30 percent of global zircon demand.
involved a survey of more than 20,000 clients from participation professional services firms. Aurecon’s market director Victor Young said, “I’m very proud of our team’s performance and we appreciate our clients recognising our contribution, especially at a time when they are focused on significant change and disruption in their industry”.
According to the company, the suspension of Iluka’s activities could last from 18 to 24 months, depending on market conditions. Iluka’s Managing Director, David Robb said Iluka would continue to supply key customers from both finished product inventory and via the continued processing of existing concentrate inventory (totaling more than 800,000 tonnes currently at Jacinth-Ambrosia) into finished product at its mineral separation plants in Victoria and Western Australia. The company will maintain the operations at Jacinth-Ambrosia so they can be “reactivated rapidly” in line with global market recovery. The suspension of operations has resulted in the loss of 33 jobs, with 46 employees being retained or redeployed.
Good news at the creek
Leigh Creek Energy has announced the signing of a heads of agreement with Shanghai Electric Power Generation Group to jointly build, own and operate a gas-fired power station.
From left, Harry Turner, Stephen Symons, Ralph Belperio and David Hawkins from Aurecon accept the award for Best South Australian Firm at the 2016 Financial Review Client Choice Awards
“The generation of base load power through a gas-fired power station is important both to our company and to South Australia,” said Justyn Peters, executive chair of Leigh Creek.
Liberals’ vision for next 20 years In launching the “2036” plan, Mr Marshall said it lay the foundation for the policies the Liberals will develop over the next two years, ahead of the 2018 election.
“We see this as a great first step in our development as an energy company. The building, owning and operating of a power station ensures the success of our project, but also has the ability to provide cheaper, reliable power to industry and mines in South Australia.”
“2036 represents the values we will bring and the reforms we will implement to restore prosperity to South Australia and make our community a better place to be,” he said.
A delegation from Shanghai Electric recently visited Adelaide, Port Augusta and Leigh Creek, where members were given a tour of the local coal fields and associated infrastructure. Earlier this year, Leigh Creek Energy announced the results of an independent assessment of its contingent gas resources, which places the company at the top echelon of mid-level prospective gas producers in the nation. The independent certification found the project, which would be located at the former coal mine, had contingent gas resources of around 2963 petajoules. The company intends for the gas project to become operational in 2018, with its site including a power station, gas clean-up plant and later a fertiliser plant. ISSUE 03 RESOURCING SA Winter 2016
Included in the plan are details outlining the Liberals’ wish to unlock the resources and production of the State’s regional areas and ensuring growth opportunities for regional businesses and industries. Steven Marshall
South Australian Liberal leader Steven Marshall has released a document that sets out the party’s principles in nine policy areas to be tackled by the time of the State’s bicentenary in 20 years.
“We believe government should be committed to delivering the best outcomes for all South Australians. By ensuring that decisions on investment in infrastructure projects are prioritised based on objective assessments on the merits of a project, we will be able to provide value-for-money and certainty to South Australians,” Mr Marshall said.
News 45
24 March – 22 May 2016 Buy tickets online at www.samuseum.sa.gov.au Become a Museum Member for unlimited free VIP entry to exhibitions and more.
The South Australian Museum gratefully acknowledges the generous support of the Shields Leadership Council
46 News Moomba Touchdown
The first Alliance Airlines Fokker 100 jet to touchdown in Moomba
Alliance Airlines has serviced its first flight from Adelaide to Moomba on behalf of Santos’ oil & gas operations in South Australia.
per week, in addition to coordinating and managing airport operations and intra-field subcontracted flying.
After signing a five-year contract with the oil producer in February, the service began on 1 March. Alliance Airlines will have a Fokker 100 jet operating between 10 and 16 services
“This new contract adds to services that Alliance have provided to Santos in Queensland since 2006,” said Alliance Chief Executive Officer, Lee Schofield.
Carrapateena’s fast tracks
Compelling magnetite Adelaide company Magnetite Mines has signed a non-binding agreement with Chinese State-owned company Sinosteel Resources. The memorandum of understanding (MOU) will evaluate Sinosteel’s investment in and purchase of magnetite concentrate from Magnetite Mines’ potential project in the east of South Australia. Magnetite Mines and its related company Lodestone Equities own or have iron ore rights to prospective tenements containing more than 200km of ‘prospective strike length’. Gordon Toll, who is the majority owner of Lodestone and also executive chairman of Magnetite Mines, described the MOU as a
“milestone” in the development of the Braemar region. “It is a vote of confidence for the development of a new and potentially large iron province in South Australia and recognises the ongoing need for high grade magnetite for the Chinese steel mills,” he said. Meanwhile, Magnetite Mines has sent four tonnes of ore to the Bureau Veritas Laboratories in Perth. Following the company’s continuing negotiations in China, concentrates produced from this work will provide samples for testing by interested Chinese steel companies.
All systems go at Portia Havilah Resources has started mining at its Portia mine northeast of Broken Hill with the processing plant now operating and producing high-grade gold ore. Mining commenced more than three months ahead of schedule, due to recent redesign of the mining plan. Commenting on the milestone, Havilah Managing Director Dr Chris Giles said it was pleasing that in spite of the numerous challenges presented by the soft clay overburden and ongoing dewatering requirements, mining of the Portia open pit had largely gone “according to plan” and the
ISSUE 03 RESOURCING SA Winter 2016
“We remain passionate about long term relationships which have always been developed from a foundation of industryleading operational performance and outstanding customer service. This is the reason why Alliance retains and wins long term contracts.”
ore zone was as expected, “which augers well for the remainder of the mining operation”. Meanwhile, results from drilling at the North Portia proposed mine have provided promising results. The drilling was part of a fast-tracked feasibility study determining the economic viability of mining the upper oxidised portion of the North Portia deposit, as a follow on operation from the adjacent Portia gold mine. There is estimated to be 3.7 million tonnes of mainly oxidised material that is the target of the feasibility study.
OZ Minerals announced plans to accelerate studies into its Carrapateena copper gold development in the north of SA earlier this year. Following a review of nine options, OZ identified a sub-level caving option that would generate strong returns and could be funded by cash on hand and expected cash flow from the Prominent Hill mine. Wasting no time, the company announced in May that a scoping study had increased the project size from 2.8Mtpa to a target between 3.9 and 4.8Mtpa. OZ Minerals will now commence construction at Carrapateena as soon as possible, with tenders on a tunnel to reach the ore body to be filled this June, preceding immediate start of the work. The mine is expected to be up and running by 2019 employing over 400 people, for over 20 years. In other exciting developments the company signed an MOU with the administrators of Arrium, as part of its plan to establish a processing plant at Whyalla for treatment of its ore. The facility would employ 100 people for construction and 100 people ongoing; construction is expected to start next year. Meanwhile, OZ Minerals’ farm-in agreement with Minotaur is progressing well, with exploration accelerated on two advanced targets within the Eloise Project while continuing to define ‘Cannington style’ targets further north east, with additional interesting targets also identified around Prominent Hill. “What is really exciting is that these targets are very close to Prominent Hill and within aregion that has a great copper pedigree,” said OZ Minerals Managing Director Andrew Cole.
48 Industry events
Industry events 19 May 2016 Women in Resources SA Awards – SACOME lunch Adelaide Convention Centre www.sacome.org.au
26-30 June 2016 Australian Earth Sciences Convention Adelaide, South Australia www.aesc2016.gsa.org.au
19-20 May 2016 PVC Aus Conference Melbourne, Victoria www.informa.com.au
1 July 2016 SACOME Lunch Series Jacqui Mc Gill BHP Billiton Adelaide Convention Centre www.sacome.org.au
31 May 2016 RESA Productivity Breakfast Nuclear Royal Commission Kevin Scarce Adelaide Convention Centre www.resa.org.au
28 July 2016 SACOME Breakfast Series Adelaide Convention Centre www.sacome.org.au
5-8 June 2016 2016 APPEA Conference & Exhibition Brisbane, Queensland www.appea.com.au 9 June 2016 SACOME Breakfast Series Adelaide Convention Centre www.sacome.org.au 7-8 June 2016 The AusIMM International Uranium Conference Adelaide, South Australia www.ausimm.com.au 15-17 June 2016 Third AusIMM International Geometallurgy Conference Perth, Western Australia www.geomet.ausimm.com.au
1-3 August 2016 Diggers & Dealers Kalgoorlie, Western Australia diggersndealers.com.au 5-7 August 2016 Science Alive Adelaide Showgrounds www.facebook.com/scienceactivesa 17-18 August 2016 GMUSG & SACOME Resource Industry Conference & Trade Expo Port Pirie, South Australia www.usgconference.com.au 22-24 August 2016 International Mine Management 2016 Brisbane, Queensland www.immconference.ausimm.com.au
1 September National Women in Resources Awards Dinner 2016 Adelaide Convention Centre www.sacome.org.au 19-20 September 2016 The AusIMM New Leaders Conference Brisbane, Queensland www.newleaders.ausimm.com.au 23 September 2016 SACOME Innovation Summit Adelaide Convention Centre www.sacome.org.au 28-30 September 2016 Life-of-mine Brisbane, Queensland www.ausimm.com.au 20 October 2016 Dirt TV Awards Night www.dirttv.com.au 28 October 2016 SACOME Breakfast Series Adelaide Convention Centre www.sacome.org.au 17 November 2016 SACOME Lunch Series Adelaide Convention Centre www.sacome.org.au 2 December 2016 Annual SA Exploration & Mining Conference Adelaide Convention Centre www.saexplorers.com.au
Largest regional resources event coming to Pirie The annual Global Maintenance Upper Spencer Gulf (GMUSG) and SACOME annual resources industry conference and trade expo will be held at Port Pirie on 17-18 August. Following an established format that has cemented the event as the largest regional resources conference in the State, the event will again cover the projects, people and opportunities most relevant to those doing business or looking for opportunities in South Australia’s dynamic resources industry. The GMUSG/SACOME conference focuses on relationship building. Image: Kim Mavromatis ISSUE 03 RESOURCING SA Winter 2016
With a focus on linking explorers, producers, developers and the State’s supply chain, the two days includes a carefully selected range
of speakers, case studies and specialised sessions together with extensive casual networking opportunities. The pre-conference Mayoral Reception on the evening of 16 August and informal networking dinner on the 17th are both included in the price. Early bird pricing at just $290 for the full two days will ensure the event attracts its usual high attendance, with a variety of limited sponsorships and 32 exclusive exhibitor booths on offer from just $1300. Find out more or register at www.usgconference.com.au
Events 49 1
2
3
4 5
6
7
8 9
10
A touch of gold
Into the home stretch
SACOME held its highly anticipated Annual Resources Industry Dinner on Wednesday 20 April at the Adelaide Convention Centre.
More than 200 guest gathered for the launch of SACOME’s 2016 event series in February.
The formalities of the night included presentations of the Premiers Community Excellence Awards in Mining and Energy by the Treasurer and Minister for Mineral Resources and Energy, Tom Koutsantonis and the inaugural South Australian Resources Industry Awards, (by SACOME President, Terry Burgess.) Guests were treated to fabulous entertainment by Bronte-Ellen Jones and Anthony Janus, the More Than One Trio, Festival Statesman and All About Her.
A timely presentation was provided by Bertus de Villiers, Vice President of Metals Refining at Nyrstar, who gave a comprehensive update of the $563 million investment in Port Pirie which will contribute more than $304 million a year to the State’s economy.
Bumper breakfast Resources companies Arrium Mining, Senex Energy and Iuka Resources shared news of their current projects and activities at a breakfast for SACOME members on 17 March.
1. Mr Spin entertains guests at the Annual Resources dinner pre-event drinks 2. Bronte-Ellen Jones and Anthony Janus perform 3. Paul Kiley, Hillgrove Resources, Frank Weits, PwC and Karen White, WPG Resources 4. Courtenay Eckermann and Dayne Eckermann, SACOME 5. Guests fill the hall before the Annual Resources Industry Dinner 6. Phillip Link, Honeywell Process Solutions and Kathie Link 7. Pre-dinner networking 8. Louise Swann, Jarrod Bishop, Kylie Bishop of LBW Environmental Projects with Dave Winterburn, Lathwida 9. Jasmine Gligora, Rossair Charter with colleagues 10. Kim Cheater, PwC with colleagues ISSUE 03 RESOURCING SA Winter 2016
50 Opinion
Gap
analysis
The gender pay gap is a complex discussion and relying on data has its drawbacks. Managers: Is it time to stand up for your team? By Terry Burgess Over the past two years, I have been fortunate to be a judge for the South Australian Women in Resources Awards, an initiative of SACOME and WinRSA. The winners of the 2016 awards will be announced on 19 May and again, nominations highlight very talented and passionate women within the industry. Some nominations noted family concern that their daughter or granddaughter wanted to work in a mine/oil & gas field, but many saw it as a positive turning point in their lives – albeit acknowledging the need for resilience, particularly in light of recent years’ redundancies. These awards are held at a time of increasing concern around gender pay gaps in Australia, as detailed in the Bankwest Curtin Economics Centre/Workplace Gender Equality Agency (WGEA) Gender Equity Insights 2016 report, Inside Australia’s Gender Pay Gap and also the AusIMM Remuneration Survey 2014. The WGEA has data for four million employees from 12,000 employers across Australia. Findings draw attention to greater remuneration for men in almost every scenario, particularly at senior levels. The conclusion is men are given preferential pay treatment over women. In the mining sector, the Gender Pay Gap from the 2014-15 data is shown to be between 15 percent and 18 percent. The AusIMM survey, with more than 3000 responses, contains the same issues, with conclusions again based on averages across broad categories. These reports provide many examples which feed into media headlines. However, I see some issues in the data analysis, as the results and conclusions are based on the averages of very broad categories. It is therefore necessary to understand the data and find the best way to use it. For example, one category ‘engineers’ could comprise four mining engineers – two women and two men – each earning identical ISSUE 03 RESOURCING SA Winter 2016
annual salaries of $140k, together with four environmental engineers –three women and one man – each earning $110k. Within the ‘engineers’ category, the men earn an average of $130k and the women an average of $122k, even though the women and men are paid identical salaries for each role. Is this a gender pay gap of $8k and could we conclude that women are paid less than men in the same role?
The challenge to every manager is to look at your team to make sure they have made the first step for ‘equal pay for equal work’, or if not at least have a plan to get there There are some valid questions to be asked as to why environmental engineers earn less than mining engineers and, more broadly, why there are fewer female mining engineers than male. The first question on the gender pay gap we should be asking within the resources sector is whether we are now paying the same remuneration to people with similar qualifications, experience and performance in the same job – irrespective of gender? If we are, this can be clearly stated but if not, we need to change immediately. A real life example comes to mind. A production manager had two engineering vacancies with identical requirements. On paper two candidates stood out, Harry and Sally, this was confirmed upon interview. Sally said her salary expectation was $120k – she was confident as she knew the market and had a friend employed with the company.
Harry was less confident, having recently been made redundant a short time into a new role. He was extremely keen to find employment and indicated he would accept $100k. The production manager was in a quandary – costs were under pressure and here was an opportunity to save $20k. So what would you do in this situation? While you think about this, let’s turn back to the SA Women in Resources Award nominees who were asked to comment on gender equality – responses included: I believe I am employed on merit and gender/ gender targets are less of an issue than they were only ten years ago. Since starting my career ... I have never felt disadvantaged or mistreated. We need to focus on the expectations of the person employed, the leadership to be provided and how we train, mentor and encourage people to grow. To get sustainable diversity we need to think differently about leadership. Others wrote: There is a gender payment and training gap and this affects retention. There is a gender bias rather than on merit. Men need to hold other men to account on unacceptable behaviour and women need to support each other and not see other women as a threat. Where gender is cited as an issue, it is in jobs with significant travel, in remote locations with FIFO/DIDO and/or where there are limited child care options. A common issue for women in mid-career is the perception that there is not the same support as earlier stages in their careers. This is potentially related to women returning after maternity leave, seeing less options for advancement that can accommodate their new situations, or a lack of training opportunities. These are major challenges if the resources sector is going to retain its talented women, including those nominated for these awards. I’ll illustrate this through something I
Opinion 51 heard recently. In late March, there was a Women in Science panel at the National Press Club in Canberra with mathematician Professor Nalini Joshi, physicist Professor Tanya Monro and marine scientist Professor Emma Johnston. In the natural sciences subjects more women that men get degrees (56 percent for undergraduate degrees and 50 percent for doctorates), however only 14 percent of natural sciences professors are women. Professor Joshi said everyone talks about the need to get more girls studying STEM subjects at school, but with no visible role models within our universities, women lack the confidence to step up to more senior roles. She said that it is as if universities are saying women can study science, but cannot be science leaders. The reason I have digressed to the Press Club panel is because of a quote from Professor Joshi: “We produce so many talented people that we lose and so many great ideas go elsewhere. Imagine if we could encourage and keep these talented people.” Similarly, the resources sector cannot afford to lose the talented women that have already been attracted into the industry. The women who have been nominated for our awards are passionate about the sector, actively involved in speaking about the industry at clubs, societies, schools, universities and within their local communities, mentors to other women both formally through a number of mentor programs and informally. We need to ensure we retain these women and attract others throughout the stages of their careers.
companies should follow in my company’s footsteps.
first step for ‘equal pay for equal work’, or if not at least have a plan to get there.
The last quote prompted me to contact a number of SACOME’s minerals and oil & gas companies to ask if they pay the same remuneration to everyone in the same job irrespective of gender who meets the basic requirements and competency, and delivers similar performances and output.
In September 2015, PwC publicised data from a gender pay equity audit it undertook on its 6300 Australian employees – one comment from the CEO, Luke Sayers, was “It’s not until you zoom in on every role in every team that you start to see how easy it is for the scales to get out of balance”.
The responses have varied – some companies would be happy to be named as meeting this objective already, others believe they still had more to do in this area because of anomalies in the past and some felt that there was much more to do beyond this – asking for example:
Kate Jenkins, the new Sex Discrimination Commissioner, recently questioned why Australia, which reached Educational Attainment equality in 2006, should rank only 36 in the 2015 World Economic Forum Global Gender Gap report largely due to our poor female labour force participation and poor performance in relation to wage equality.
• Are people in different roles being paid the same rate if they have similar responsibilities and make similar contributions to the business? • Are leadership skills given higher weighting than technical skills at senior levels where leadership is the key requirement? So ‘equal pay for equal work’ can be seen as the initial first step, but there is much more to be done to provide equality of opportunity to derive full benefit from the value that diversity can bring to an organisation. So the challenge I make to every resources company is to undertake a gender pay gap analysis, if they have not done this already, and the challenge to every manager is to look at your team to make sure they have made the
In case you wondered what happened to Harry’s salary… Paula, the production manager decided that although Harry would have accepted $100k, she would pay him the same as Sally, $120k. His confidence was immediately restored. The excellent performance from Harry and Sally in their first year confirmed Paula had made the right choice. I will leave you with another question. If you have someone who works in the office four days a week, keeping Wednesdays off to be with their children, but frequently works at home until late in the evening, comes into the office on Wednesdays for important external meetings and exceeds the job requirements, should he (or she) be paid a full salary or 80 percent?
I will end with another quote from the nominations: Be excellent in your role and good at your job and you will be respected. I have shown that the stereotype can be broken down; my experience and work ethic has spoken for itself. The most difficult challenges for me have been selfconfidence, self-doubt and self-belief but I know that I will go a long way because I have drive, commitment and passion. The encouragement and support from my company has been excellent and gender is not an issue – other
Terry Burgess discusses gender equality with Jo Barron-Perry, (winner of a Women in Resources Award last year.) ISSUE 03 RESOURCING SA Winter 2016