ISSUE
AUSTRALASIAN BUSINESS COVERAGE 20
BHP AWARDS MULTI-MILLION SOUTH FLANK CONTRACTS
AUSTRALIAN MINERS ACHIEVE RECORD GOLD PRODUCTION 1
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EDITOR’S NOTES CONTRIBUTORS PUBLISHER Oliver Moy
okm@aubusinesscoverage.com
EDITOR Lydia Lanckmans
RESEARCH DIRECTOR Simon Webb
simon.webb@aubusinesscoverage.com
Adam Williams
adamw@aubusinesscoverage.com
Abi Abagun
abi.abagun@aubusinesscoverage.com
DESIGN Sam Wood
sam.wood@aubusinesscoverage.com
W
elcome to issue 20 of Australasian Business Coverage. In this issue we feature the Chamber of Minerals & Energy of Western Australia, as the state’s mining industry reaches a record level of employment. We look at BHP Billiton’s South Flank project, as we continue our focus on the regions mining boom. South Flank will be one of the world’s largest iron ore operations integrating the latest advances in autonomous-ready fleets, digital connectivity and modular design. Over in Queensland, we take a look at the new runway which is under construction at Brisbane Airport. Brisbane’s new run runway is the largest aviation construction project in Australia. It has been estimated by 2035 that the new runway will lead to the creation of 7,800 new jobs and contribute an additional $5 billion in annual economic benefit to the region. New South Wales will soon be the home of Australia’s largest solar panel farm. Construction of the Sunraysia Solar Farm is expected to be completed by the end of this year. Once completed the Sunraysia Solar Farm will supply electricity to the Australian grid to assist with the reduction of emissions in the electricity sector, as part of the Renewable Energy Targets set by the Australian Government. Finally we look at the latest news from Perth Airport, Cranecorp, and multinational energy corporation, Chevron. Enjoy the issue! Lydia Lanckmans Editor
ACCOUNTS Charlie Daniels
charlie.daniels@aubusinesscoverage.com
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CONTENTS 8 NEWS 16 CME 22 BHP BILLITON 30 PERTH AIRPORT 38 CHEVRON AUSTRALIA 48 CRANECORP 56 BRISBANE AIRPORT 64 SUNRAYSIA SOLAR FARM 70 MRS MAC’S
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NEWS
FORTESCUE AWARDS $35M WORTH OF CONTRACTS TO PILBARA BUSINESSES Fortescue Metals Group has awarded a major component overhaul and replacement services contract to three contractors based in Port Hedland in Western Australia. Force Equipment, WesTrac and Komatsu received the $35 million joint contract to perform maintenance on Fortescue’s heavy mobile equipment in
Port Hedland, saving the company a 1600 kilometre one-way trip to Perth for heavy mobile equipment repairs. The contract will provide 17 full-time jobs for local workers and infrastructure investment in the Pilbara. Six per cent of Fortescue’s spend on procurement in the last financial year went towards businesses in the Pilbara region of Western
Australia, Fortescue chief executive officer Elizabeth Gaines said. “Thriving businesses are fundamental to the economic prosperity of our communities and basing the maintenance of our heavy mobile equipment in Port Hedland is a very practical, common sense approach that has significant benefits for our community,” Gaines said.
TROPICANA UNDERGROUND EXPANSION RECEIVES APPROVAL The Tropicana joint venture has cemented the Western Australian gold mine’s future by approving the Boston Shaker underground development. JV partners AngloGold Ashanti and Independence Group (IGO) will launch the $105.7 million project in the June quarter. They have scheduled first gold for the September quarter next year. The underground development is expected to contribute an annual
average of 100,000 ounces to Tropicana’s production profile from the 2021 financial year. It will allow the JV to maintain Tropicana’s production at between 450,000-500,000 ounces per annum over the next five years, with the average annual output over this period expected to be 480,000 ounces. A feasibility study on the Boston Shaker development has confirmed that underground mining is
technically and financially viable. The cost estimate is, however, higher than the $95 million forecast in the December 2018 project prefeasibility study. Macmahon Holdings has been awarded a fiveyear, $170 million mining services contract for the underground mine. The work adds to Macmahon’s existing agreement at Tropicana, which is already the site of the company’s largest mining contract in Australia.
AUSTRALASIAN BUSINESS COVERAGE
BHP AWARDS MONADELPHOUS TWO CONTRACTS WORTH $212M AT SOUTH FLANK PROJECT
BHP has awarded a second construction contract at the South Flank iron ore project in the Pilbara, Western Australia to Monadelphous. The $104 million contract includes structural, mechanical, piping and electrical and instrumentation works for the project’s inflow infrastructure. Monadelphous now has $212 million of combined construction work at South Flank with the latest award. The contractor was also awarded a $108 million construction works contract for the project last month.
The work under the inflow infrastructure contract is expected to start immediately and is scheduled for completion by March 2021. Monadelphous managing director Rob Velletri said the award of a second contract at South Flank enabled the contractor to realise efficiency synergies between the two packages of work. “We are pleased to secure further work on this significant project and look forward to continuing our long track record of successfully working with BHP,” Velletri said.
Monadelphous’ first contract win involves supporting South Flank’s outflow systems by providing structural, mechanical, electrical, piping and instrumentation. The first contract is expected to create around 400 jobs and will last until May 2021, according to Monadelphous. BHP’s Western Australian Iron Ore (WAIO) division is developing South Flank to replace production from the ageing Yandi mine. The miner is targeting first production at the site in 2021, with an initial mine life of at least 25 years. 9
NEWS
MURRAY RIVER ORGANICS LAUNCHES EXPORT-DRIVEN RANGES AT ASIAN TRADE SHOW Murray River Organics (MRO) has launched two of its own branded premium ranges in Japan as part of its strategy to grow exports under the ‘Taking Sunraysia to Asia’ program. MRO’s branded ranges Gobble and Premium Australian Clusters are organically certified and ideal for the Asian markets which are focused on the quality and food safety that Australian growers deliver. They have been launched at Foodex Japan, Asia Pacific’s largest food and beverage trade show, taking place over four days in Chiba City where the latest food trends are showcased. MRO’s Sales & Marketing Manager – Export, Adelyn Chee, said: “These new products are the first for these brands in over 4 years. Our Gobble mini snack boxes are aimed at children in the Asia region with 12 grams of organically certified dried vine fruit suitable as a snack on the go and Premium Australian Clusters come in a gift box, ideal as a present for Asian customers looking to gift a piece of Australia to their friends and family.” “We believe Foodex Japan is the perfect venue to launch Gobble and Premium
Australian Clusters with more than 85,000 people from 78 countries expected to attend. There is no better way to build international awareness of our unique products, “Adelyn Chee said. More than 80% of MRO’s fruit is exported and it already has well established export markets in Japan, China, Vietnam, Korea, Taiwan and USA. Mr Akihiro Asai, President of Alpha Foodstuffs which is one of the largest organic dried vine importer and distributors in Japan said; “We are very pleased to be working with Murray River Organics and look forward to expanding the range and volume of Murray
River Organics products in the Japanese market.” MRO chief executive Valentina Tripp said, “Australia has the best dried vine fruit in the world and our strategy for 2019 is to extend our range of branded Dried Vine Fruit products, both natural and organic, suited to the Asian consumer. With concerns about food safety in Asia and the trusted Australian clean and green image we believe the strong interest we are seeing from the region will result in significant new contracts, and Foodex is an exceptional place to kick off our regional roll out.”
AUSTRALASIAN BUSINESS COVERAGE
WESTGOLD TO SELL HIGGINSVILLE GOLD OPERATION TO CANADA’S RNC RNC Minerals has agreed to purchase Westgold Resources’ Higginsville gold operation near Norseman, Western Australia, for $50 million. Canada-based RNC plans to consolidate Higginsville and the company’s Beta Hunt operation to increase its output while also lowering operational costs. RNC made headlines at Beta Hunt last September with a record discovery of two gold nuggets that weighed a combined 4060 ounces. The company will pay Westgold $25 million in cash (including a non-refundable $4 million exclusivity deposit) and $25 million in shares to secure the acquisition.
Higginsville hosts a measured, indicated and inferred resource of 33 million tonnes at 1.97 grams of gold a tonne for 487,000 ounces. Westgold has been divesting its non-core assets over the last year to increase its focus on its three gold operations in the Murchison region of WA – the Murchison gold operation, Fortnum project and Cue gold operation, The company’s divestments over the last year include the sale of its South Kalgoorlie operations to Northern Star in April 2018 for $80 million, and the sale of its non-core lithium royalties in December 2018 to an investor for $15 million. Westgold managing
director Peter Cook called the RNC deal “a sensible transaction” that was mutually beneficial for both companies. Westgold will maintain exposure to both Higginsville and the highly prospective Beta Hunt mine through its purchase of RNC shares. “The addition of the ‘bonanza grade’ gold discoveries and resource potential at Beta Hunt to the existing operation at Higginsville will provide enhanced gold output at lower costs, as well as security from ownership of substantial plant and infrastructure,” Cook said. “Importantly the asset consolidation paints a bright picture for the future of the project and its employees.”
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NEWS
AUSTRALIA AND INDONESIA SIGN TRADE DEAL TO PROMOTE METS SECTOR Australia and Indonesia have signed a trade agreement that will bring greater opportunities for Australia’s mining equipment, technology and services (METS) companies. The inked IndonesiaAustralia Comprehensive Economic Partnership Agreement (IA-CEPA) means that 99 per cent of Australian goods (by value) will enter Indonesia duty-free or under significantly improved preferential arrangements by 2020. Effectively, this will add $35 billion to both economies. Australia’s $90 billion METS sector can also own up to 67
per cent of contract mining and mine site preparation services. Minerals Council of Australia (MCA) has voiced its support for the trade deal, particularly noting Indonesia’s potential to be the world’s fourth-largest economy by 2050. “Under this agreement, Australia’s world-leading resources sector will have access to greater trade opportunities – increasing mineral and energy exports and creating more highlypaid, highly-skilled jobs,” Constable said. “This agreement will enhance people-to-people connections between
Indonesia and Australia, with working visas for Indonesians expanded from 1000 to 4100 per year. In addition, 200 Indonesians will have access to six-month training opportunities in Australia.” According to the joint statement of Australia’s Prime Minister Scott Morrison and Minister for Trade Simon Birmingham, the agreement builds on multiple trade deals that led to Australia’s $22.2 billion record trade surplus in 2018. In 2017, two-way trade between Australia and Indonesia stood at $16.5 billion, with Indonesia ranked as Australia’s 13th largest trading partner.
AUSTRALASIAN BUSINESS COVERAGE
AUSTRALIAN MINERS ACHIEVE RECORD GOLD PRODUCTION IN 2018 Australia’s gold producers have capitalised on a surging price for the precious metal by delivering an all-time production record last year. With 317 tonnes of gold in 2018, the companies broke the previous record of 314.5 tonnes, which stood for 21 years. Australian gold production reached 81 tonnes in the December 2018 quarter, the third consecutive quarter where output exceeded 80 tonnes. The gold price averaged $1711 an ounce in the December quarter. Surbiton Associates director Sandra Close said the record output in 2018 was worth $17.3 billion at the average spot price. “It took 21 years to break the old calendar year record and the outlook for the near term looks positive, but of course there can always be surprises,” Close said. “Following a fall to just 220 tonnes in calendar 2008, the industry has bounced back, helped in part by the weakening of the Australian dollar against the US dollar, as it has fallen from around parity to near US 70 cents in the last decade.” Australia’s gold sector is well positioned to continue this record-breaking form. The Australian gold price
has already hit an all-time record of $1876 per ounce (on February 20), Close noted. Gold has so far averaged around $1820 per ounce in 2019, with the Australian dollar currently fetching around US 71 cents. The sector will also see positive developments production wise on both sides of the country. “On the production front, Gold Fields and Gold Road’s Gruyere joint venture, some 200 kilometres north-east of Laverton will start up midyear,” Close said. “Production is scheduled to ramp up to around 300,000 ounces (or some 10 tonnes) annually at full capacity. “Fosterville (in Victoria) will become a significant producer in 2019, as Kirkland
Lake has just announced its output should rise from around 350,000 ounces in 2018 to some 600,000 ounces in 2019. “Its average grade was an extraordinary 40 grams per tonne in the December 2018 quarter.” Newcrest’s Cadia operation in New South Wales was the largest producer in 2018 at just over 750,000 ounces, followed by Boddington, Western Australia at around 710,000 ounces. “Super Pit output fell to just under 630,000 ounces for 2018, following the pit wall failure in May,” Close said. “It dropped out of the list of the quarter’s top five gold producers for the first time since Surbiton began its quarterly gold survey over 25 years ago.”
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NEWS
MAJOR CONTRACTS PUSH DECMIL TO STRONG START IN 2019 Decmil has secured several Tier 1 mining contracts to set up the engineering contractor for a profitable 2019. The Western Australiabased company won a $65 million contract extension with BHP at the South Flank project in the Pilbara during the December quarter. Decmil is upgrading the site’s Mulla Mulla accomodation village, including the installation of 632 new rooms, as well as refurbishing and relocating existing rooms. The expansion of the project built on a $13 million early works package and $75 million stage one package to a new total of $153 million. It also inked a three-year, $150 million framework agreement on the Shelloperated Queensland Gas Company (QGC)’s brownfields coal seam gas facility in Queensland’s Surat Basin. The company also wrapped up its contracts with Rio Tinto at the Amrun bauxite mine in Queensland and Fortescue at Port Hedland in the previous quarter. Decmil participated in extensive construction work at the Amrun site (part of Rio Tinto’s Weipa operations), including the building of workshops,
storage facilities, wastewater systems, process water distribution, comms and electrics, and several other developments. The Port Hedland project, meanwhile, involved the creation of tug facilities for Fortescue’s Pilbara Marine subsidiary. These works helped Decmil towards a 96 per cent jump in revenue for the six months ended December 31 last year on the back of several high-profile contracts. The company also secured several prominent contracts outside of mining, most prominently a $277 million engineering, procurement and construction (EPC)
contract at Sunraysia’s solar project in New South Wales, a $86 million roads contract in Victoria and a $NZ185 million ($177.5 million) prisons contract in New Zealand. The company achieved $276 million in revenue for its 2019 first half result, with contract revenue for the full year currently standing at $650 million. “Decmil’s diverse capability, national footprint and Tier 1 client base is providing good forward revenue visibility and increasingly better quality of earnings,” said Decmil managing director and chief executive officer Scott Criddle.
AUSTRALASIAN BUSINESS COVERAGE
WOODSIDE AWARDS CONTRACTS FOR SCARBOROUGH PROJECT Woodside has awarded four contracts for frontend engineering design activities for the proposed Scarborough Project. The contracts are for engineering activities related to the upstream development’s floating production unit, the export trunkline and the subsea umbilical risers and flowlines. Each contract includes an option to progress to execute phase activities, which is subject to, among other conditions, a positive final investment decision (FID) being taken on the project by the Scarborough Joint Venture. McDermott Australia Pty Ltd has been awarded a contract to undertake engineering studies for the floating production unit, which includes the option to
progress to an engineering, procurement and construction contract for execute phase activities. Subsea Integration Alliance, a consortium between OneSubsea Australia Pty Ltd and Subsea 7 Australia Contracting Pty Ltd, has been awarded a contract to undertake engineering studies for the subsea umbilical risers and flowlines, with the option to progress to an engineering, procurement, construction and installation contract for execute phase activities. Saipem Australia Pty Ltd has been awarded a contract to provide export trunkline engineering support services with an option to execute line pipe coating and installation activities. Intecsea Pty Ltd has been awarded a contract for export trunkline engineering.
Each contract was awarded by Woodside in its corporate capacity as a Scarborough titleholder and will be funded initially by Woodside on a 100% basis. Woodside CEO Peter Coleman said the award of these contracts would support the project schedule and Woodside’s targeted FID for the Scarborough Project next year. “We have made good progress since announcing last year that we had increased our stake in Scarborough. The award of these contracts brings us closer to unlocking the Scarborough resource. “We want to continue to maintain the momentum that has been generated during 2018 towards a targeted final investment decision in 2020,” he said.
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CHAMBER OF MINERA OF WESTERN AUSTRA
ALS AND ENERGY ALIA (CME)
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INDUSTRY REPORT THE GOALS AND ROLE OF THE CME IN TODAY’S INDUSTRY The Chamber of Minerals and Energy of Western Australia (CME) is the leading advocate for the resources sector in Western Australia. We are a memberfunded, not for profit organisation that represents the views and advocates the needs of our members. CME leads policy development on issues impacting the sector, promotes the value of the sector to the community, and provides an avenue through which members and stakeholders can collaborate. Since its formation in 1901, CME has given members a unified voice, ensuring the priorities of the sector are well understood and its role as a driver of the Western Australian and national economies continues. HISTORY In 1895, following the discovery of gold in Coolgardie, local leaseholders and representatives of the area’s gold mining companies formed the Coolgardie Chamber of Mines and Commerce to protect and advance their interests. The Kalgoorlie Chamber of Mines was inaugurated the following year, with a Perth Chamber of Mines established in 1897, consisting principally of attorneys and legal managers of gold mining companies. In 1900, the Kalgoorlie and Coolgardie Chambers were amalgamated to provide a consolidated voice for the flourishing gold mining industry, and the Chamber of Mines of Western Australia was born.
At the first general meeting of the new Chamber on 11 March 1901, Richard Hamilton was unanimously elected as the inaugural President, a position he held until his death in 1943. At its first meeting on 18 March 1901, the Chamber’s Executive Council discussed a range of matters including, opposition to the granting of a sluicing and dredging area as recommended by the Warden, methods of mine timbering, and a recommendation that the Government supply immediately at least 250 additional rolling stock for conveyance of fuel and fresh water supplies to the mines. CME has grown with the mining industry, particularly through the boom times of the 1960s when key minerals such as iron ore, bauxite and nickel came on line. As the industry expanded into oil, petroleum and gas, so too did CME, leading to its formal renaming as the Chamber of Minerals and Energy of Western Australia Inc (CME). Today, CME’s member companies generate 90% of all mineral and energy production and employ 80 per cent of the resources sector workforce in the State. INDUSTRY DEVELOPMENTS AND INVESTMENT WA’s resource sector plays a vital role in supporting and sustaining the national, state and regional economies through jobs, investment and payment of taxes, fees and charges. In 2015-2016, a survey of 46 resource sector companies a direct financial contribution to Western Australia of $32
AUSTRALASIAN BUSINESS COVERAGE
billion in wages and salaries, business purchases, community contributions and government payments. A further $14.6 billion was spent across the rest of Australia. HOT TOPICS WITHIN THE INDUSTRY CME’s policy expertise spans industry and research activities, occupational safety and health, education and training, the environment, exploration, Indigenous affairs, economics, infrastructure and tax, and workforce development, CME provides stakeholders and members with an avenue for extensive collaboration on all industry matters. We contribute to policy development
across three strategic themes; People and Communities, Economic Competitiveness and Natural Resources. People and Communities • Safety – Enhanced focus on relevant and practical responses to high risk activities through increased sharing of safety information and addressing safety behaviour and safety leadership. • Employment • Education and training systems responsive to emerging occupational requirements and commodity specific labour shortages by up-skilling existing personnel and providing opportunities for new entrants using industry standard facilities.
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INDUSTRY REPORT • Diversity in the workforce embraced with increased representation of women and Aboriginal Australians. • Community – Increased knowledge and a positive understanding of the industry by community and decision makers. Economic Competitiveness • Regulation – Regulatory frameworks which reduce approval timelines, minimise unnecessary duplication and compliance processes to improve the cost of doing business in Western Australia. • Taxation and royalties – Transparent stable and competitive fiscal regimes across local, state and federal governments, and a greater distribution of goods and services tax returned to Western Australia. • Infrastructure – Long term government planning which demonstrates a comprehensive understanding of industry need and expedites development and investment to enable access to cost effective fit for purpose infrastructure. Efficient energy markets and security of supply. • Technology and innovation – Link industry and researchers to promote adoption of new technologies including automation. Natural Resources • Environment – Understanding of industry environmental performance and increased focus on relevant and practical responses to environmental matters. • Exploration – Unlock natural resources potential through incentivising exploration.
• Land access – Certainty over security of land tenure and reduced conflict of land use. While maintaining its strong record in developing and influencing public policy on issues affecting the industry, CME is also proactively engaging and expanding its stakeholder engagement via digital and social media. CME commenced its industry positioning campaign, resourc. ly, late in 2017 to create and spread positive stories around key topics about the resources sector and to ‘join the conversation’ on social media. The first phase of the campaign will focus on innovation, community, environment and wonder. Resourc.ly presents a fantastic
AUSTRALASIAN BUSINESS COVERAGE
opportunity for the WA resources sector to tell its own story in a way that should impact and ultimately change community perceptions. Type ‘resourc.ly’ into your internet browser to visit the blog and from there, find links to the other social media channels on Facebook, YouTube and Instagram. BENEFITS OF MEMBERSHIP • Representation and advocacy at regional, state and national levels with strong national links • Advice and support on industry issues and access to CME initiatives aimed at managing those issues • Opportunity to provide input into CME
advocacy and shape the collective voice of the industry • Programs providing opportunities for sharing on common issues • Events and activities providing networking opportunities with key decision makers in resource companies • Access to publications and guidelines on industry best practice, research and statistical information • Advice and support on industry issues and access to CME initiatives aimed at managing those issues • Regular information service on issues affecting the resources sector • Access to the CME Site Clearance Service (police checking service).
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BHP BILLITON
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COMPANY REPORT
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n a world where a disaster in the work place will spread across the stock exchange, internet and global news channels quicker than wild fire, it has never been more important to ensure mining operations are safe. BHP Billiton is leading the way with its most recent mining development combats many dangerous situations by putting digital connectivity at the forefront of its plans. Such technological introductions to its business will make its latest venture Australia’s most advanced mine. LEADING THE WAY A world-leading resources company, BHP Billiton (BHP) employs more than 62,000 members of staff and contractors. Whilst its work force is primarily in Australia and the Americas, its products are sold worldwide. The company’s global headquarters are in Melbourne, Australia. It operates under a Dual Listed Company structure with two parent companies, BHP Group Limited and BHP Group Plc. However, its organisationally managed by a unified Board and management and operates as a single economic entity, referred to as BHP. MODEST MINING TO MARKET LEADING From two small mining companies founded in the mid-1800s, BHP is now a world leader in the diversified resources industry. Formed from a merger between BHP and Billiton in 2001, the company values its heritage and the strong foundations on which it is built. These days, it is among the world’s top producers of major commodities
such as iron ore, metallurgical coal and copper. The company also has substantial interests in oil, gas and energy coal. BHP has certainly come a long way from its humble beginnings, but it remains an Australian focused organisation with worldwide reach. Today, its corporate purpose is to create long-term shareholder value through the discovery, acquisition,
AUSTRALASIAN BUSINESS COVERAGE
development and marketing of natural resources. BHP does so by following its effective strategy: to own and operate large, long-life, low-cost, expandable, upstream assets diversified by commodity, geography and market. Which is far easier to say than do yet BHP seem to have mastered it. BHP is demonstrating this by leading the way with its recent investment,
South Flank. One of many of its projects, it is particularly gaining attention by pledging to set new standards as it paves the way for the future of the resources industry. SOUTH FLANK IRON ORE In June 2018, the BHP Board approved US$2.9 billion (BHP share; US$3.4 billion 100%) in capital expenditure for the South
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COMPANY REPORT Flank project in the central Pilbara, Western Australia. Fully replacing the production from the Yandi mine, the South Flank project expands the existing infrastructure of the Minerals Australia Mining Area C. Following the announcement, BHP set to work on construction of an 80 Mtpa crushing and screening plant, an overland conveyor system, stockyard and train loading facilities, procurement of new mining fleet and substantial mine development and pre-strip work. “The project will create around 2,500 construction jobs, more than 500 ongoing operational roles and generate many opportunities for Western Australian
suppliers”. Mike Henry, BHP President Operations, Minerals Australia, confirmed during the investment announcement. It is anticipated that South Flank will be one of the world’s largest iron ore operations and will integrate the latest technology. Autonomous-ready fleets, digital connectivity and its modular design will make Mining Area C one of Australia’s most advanced mines. Designed down to the smallest detail, South Flank’s future focused modular design makes it safer and easier to operate and maintain. The first ore from South Flank is forecasted for the 2021 calendar year, with the project expected to produce ore for
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more than 25 years. South Flank iron ore will contribute to an increase in Western Australia Iron Ore’s average iron grade from 61% to 62% with the overall proportion of lump from 25% to approximately 35%. FIRST BLAST FIRED In September 2018, the first blast was fired at BHP’s South Flank project, representing the next major step in the development of the US$3.6 billion mine site in the Pilbara. The blast signified the start of mining development. Following the first blast, it was estimated that about 8.9 million tonnes of material would be moved ahead of the first concrete pour in early 2019 for the 40Mtpa
Primary Crusher 1. Following that first blast, the South Flank teams constructed road networks to enable the early mining activity and construction access ahead of the build of Primary Crusher 1. This project is not just technologically advanced but economically beneficial too. It is predicted that 9,000 people will be employed as part of the South Flank work force over the life of the project. BHP also anticipates that approximately 85% of the US$3.6 billion project will be awarded to companies based in Australia, of which the majority (as much as 90%) will go to companies based in Western Australia.
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COMPANY REPORT UNEARTHING SUCCESS South Flank, part of Mining Area C forms just one part of BHP’s Western Australia Iron Ore (WAIO) division which is integrated system of four processing hubs and five mines, it is connected by more than 1,000km of rail infrastructure and port facilities. Having achieved record production in
FY2018, supported by record production at Jimblebar and Mining Area C, WAIO is set to further benefit when South Flank becomes operational. With its Jimblebar truck fleet also becoming fully autonomous in 2017 and South Flank following its lead through further technological advancements, it’s clear that BHP is set to continue unearthing success.
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PERTH AIRP
Flying into the future
PORT
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COMPANY REPORT PAST TO PRESENT Sitting on a site that was once a golf course and an RAAF base, Perth Airport has grown to become the fourth busiest airport in Australia in terms of passenger traffic. In early 1942, the Dunreath golf course was converted to an RAAF base, which operated until the end of World War II in 1945. It was during that period as an RAAF base that the first runway was built for RAAF fighters in 1943. By 1944, the Government agreed to allow Australian National Airways Pty Ltd (ANA) and Qantas to operate from the site in Guildford. Guildford Aerodrome officially changed its status and name to Perth Airport in September 1952. Having benefited from various enhancements in the years that followed, Perth Airport Pty Ltd went on to take a 99year leasehold interest over Perth Airport
in July 1997. This formed the first phase in the privatisation of airports in Australia, and Perth Airport Pty Ltd has since operated the airport and its 2,105-hectare estate. THE GATEWAY TO WESTERN AUSTRALIA Perth Airport Pty Ltd plays a significant role in the economic, social and cultural activities of Perth. Not only is it a hub for domestic and international travel but also facilitating employment, connecting people and places, managing a thriving retail environment and providing support for local communities. Operating 24 hours a day, seven days a week throughout the year, Perth Airport welcomed almost 14 million passengers during the 2016/2017 financial year. With almost 150,000 plane movements in the same year, Perth Airport
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continues to strive for growth. Situated on part of a 2,105-hectare estate, the airport states there is sufficient capacity to expand and meet projected commercial aviation demands for the next 40 years and beyond. PROJECTED GROWTH With long-term plans to transform Perth Airport, significant investment is required to ensure the organisation’s vision becomes a reality. The airport expects to be virtually unrecognisable in 30 years’ time, with all commercial air services operating from one precinct and offering a world-class airport experience. Forecasting that the number of passengers using Perth Airport each year will grow from 13.8 million in 2016 to 28.5 million within the next 20 years, the company is planning for tomorrow, today.
Going beyond its projected passenger numbers, Perth Airport’s vision is to include terminal and passenger facilities for 40 million passengers a year and beyond. INVESTMENT AND DEVELOPMENT An initial extensive $1 billion redevelopment programme that has transformed the customer experience of all travellers was completed in late 2016. Further improvements include construction of a multi-storey car park, a new international terminal and a new runway. In addition to the infrastructure above, further enhancements to Perth Airport continue to improve its services. The new T1 Domestic Terminal became home to Virgin Australia’s interstate and some regional services in late 2015. Situated at the western end of T1, the new terminal
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REPORT “COMPANY I’m trained to keep the skies safe while providing an exceptional passenger experience” Mario Peters Aviation Protection Officer Perth Airport, WA
As a worldwide provider of security, cleaning and property services to Aviation & Transport customers, ISS recognises the importance of creating the best passenger experience. In Australia, we are proud partners with 15 airports where we provide services for over 44 million passengers annually. Our experienced divisional team harness global best-practice innovations to ensure a compliant, low-risk and customer-focused service for all our A&T clients.
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allows Virgin Australia’s passengers to transfer seamlessly between regional, interstate and international services. In addition to its new domestic terminal, Perth Airport has revamped its international passenger terminals. A significant investment at $145 million, the International Departures expansion and refurbishment will greatly improve the outbound international customer experience. Perth Airport will benefit commercially from the development too, with a far greater range of retail and dining choices available. Furthermore, its $80 million International Arrivals Expansion project has also upgraded the inbound international travel experience. This project involved introducing an expanded baggage reclaim area and immigration and secondary examination areas that are twice the size of
the previous area. NEW RUNWAY PROJECT Whilst the new runway has been identified for Perth Airport since the 1970s, it was approved in January 2015. The Major Development Plan (MDP) for Perth Airport’s proposed new runway introduces an important piece of infrastructure for Western Australia. The new runway is expected to be up to 3,000 metres long and 45 metres wide, running parallel to the existing main runway. It also includes taxiways to integrate the runway with the current airfield. To meet future capacity demand, Perth Airport anticipate the new runway will be operational between 2023 and 2028. To achieve this timeframe, Perth Airport is seeking to complete the approval process
ISS is one of the world’s leading facility services companies, operating in 74 countries worldwide. In Australia, we directly employ over 12,000 staff who deliver facility management, cleaning, support, property, aviation security or catering services to hundreds of clients. ISS is the largest provider of aviation screening services in Australia and has long term partnerships with 15 of the country’s busiest airports and airlines. With a presence in every state, we screen over 44 million passengers annually and clean facilities for major airports. For this sector, we provide security, passenger screening, baggage screening, kerbside management, concierge and cleaning services. Our focus is superior customer service, delivered through self-employed and highly-trained teams who have pride and purpose. We align to the goals of our customers and strive to work together as ‘one team’ to deliver their vision. ISS also has a strong focus on driving innovation, implementing new technologies and programs geared towards continually improving the airport experience for passengers.
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by 2019, to allow for the required 4 to 5 year construction phase to begin. The approvals process involves the release of a major development plan for public comment and Commonwealth Government approval. The 60-business day public comment period for the major development plan, during which Perth Airport seeks input from the community and other stakeholders, will start on Thursday 31 May and close on Friday 24 August 2018. In addition to the Commonwealth approvals process, in May 2018, approval
was given by the WA Government under the Aboriginal Heritage Act 1972 to allow disturbance of heritage areas as part of the new runway project. TRANSFORMING TRAVEL With plans to transform travel in Perth and enhance the experience of its tens of millions of customers every year, Perth Airport is one to watch.
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CHEVRON A Energising growth
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he world’s demand for energy is increasing and the need for Liquefied natural gas (LNG) is expected to almost double over the next 10 to 15 years. Meanwhile, the public continues to pressure energy producers to investigate sustainable energy methods as technology continues to advance. Chevron Australia is a long-standing industry player that is utilising its global resources and more than 130 years of experience to provide energy, whilst also striving to be admired for its people, partnership and performance. Its strong values set the organisation apart and it takes its social and environmental responsibilities seriously. In Australia, Chevron operates through its wholly owned subsidiary Chevron Australia Pty Ltd, the largest holder of natural gas resources in the country. The organisation’s important assets help meet the growing need for energy in the AsiaPacific region.
PERFECTLY PLACED Holding petroleum titles to resources located offshore Western Australia and onshore at Barrow Island, its exploration and appraisal program plays an important part in building the economic prosperity in Australia and around the world. Chevron Australia provides technological support and solutions to both the company’s operations in Australia and around the world from its Perth based Global Technology Centre as it devises new and innovative ways of delivering oil, gas and emerging energy sources. As demand increases across Asia, Chevron Australia is also perfectly placed to meet the world’s escalating
demand for natural gas and its gas supply and trading team working in Perth benefits from being in the same time zone as much of South East Asia. Continuous progression and commitment to both the community and the environment helps Chevron Australia to continue succeeding. Its recent projects such as the Gorgon project is a perfect example of the iconic and innovative business that the company undertakes. CHEVRON’S GORGON PROJECT: FUELLING THE FUTURE A story of energy and the environment combined with technology and expertise,
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the Gorgon project is one of the world’s largest natural gas projects and the largest single resource development project in Australia’s history. Based on Barrow Island, the Gorgon project includes a liquefied natural gas (LNG) facility with three processing units, designed to produce 15.6 million metric tons of LNG per year. With a total production capacity of approximately 2.6 billion cubic feet of natural gas and 20,000 barrels of condensate per day, the Gorgon Project will be an important pillar of the Australian economy for decades to come. Unlocking this energy puts Australia in a prime position to meet future demand and provide a cleanburning fuel, both at home and overseas. It isn’t just the physical scale or the capacity of Gorgon that is massive. Its economic impact on the Australian
economy is too. Providing local opportunities on a scale that has never been seen before, the Gorgon project has spent more than AU$34 billion on Australian goods and services since 2009. It has also awarded 700 contracts to Australian companies and directly employed more than 10,000 workers. With its operations expected to span more than 40 years, the project will continue providing economic benefits long after the construction is completed. The company has also developed the Powering Careers in Energy (PCiE) initiative with the Western Australian School Curriculum and Standards Authority to increase energy literacy in schools. This one year course has been approved for use in Western Australia schools as the long-term project will continue to require a highly skilled workforce for both this generation and the next.
The state-of-the-art subsea gathering system used in the Gorgon project is one of the world’s deepest and longest subsea gas production and gathering systems. Extremes in gas flow conditions, water depth, distance and the natural environment tested the practical limits of design and construction. In 2014, the Jansz-Io Subsea Pipeline Scarp Crossing won the Innovation and Development award at both the Western Australian and the National Engineering Excellence Awards. Two of many awards achieved during construction, they mark almost 10 years of detailed research, planning and final execution of the Jansz-Io pipeline and scarp crossing. Just one example of Chevron’s pioneering operational excellence, this innovative project and the methods developed will provide revolutionary technology for future deep water pipeline projects for many years to come.
GREAT AUSTRALIAN BIGHT: ENVIRONMENTAL EXPLORATION Maintaining its position as a leader in its industry, Chevron Australia acquired two deep water exploration permits in 2013 to explore wells in the Great Australian Bight (GAB). Located approximately 300 kilometres west of Port Lincoln off the southern Australian coast, the GAB represents one of Australia’s most prospective frontier hydrocarbon exploration regions. The exploration permits, EPP44 and EPP45 cover more than 32,000 square kilometres (8 million acres) and nearly doubles Chevron’s offshore acreage holding in Australia. As an operator with 100% interest, Chevron’s schedule includes the largest marine seismic surveys undertaken in Australasia and by Chevron to date, as well as geological studies and two exploration wells in each permit.
Whilst BP have recently announced it would not proceed with planned exploration drilling in the GAB, Chevron Australia has expressed its confidence in its ability to drill without mishap. With a commitment to environmental stewardship, Chevron consistently strives for world’s best practice in environmental management and often goes above and beyond industry standards. Its petroleum activities associated with its exploration in GAB is no exception and is subject to an Environmental Plan approved by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) in accordance with the Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009. As ever, Chevron remains committed to its philosophy ‘we do it safely, or not at all’. PARTNERSHIPS Diverse is a word that could be used to amply describe Chevron’s partnerships
because developing projects of this magnitude and the requisite support network simply couldn’t be achieved by any one organisation. The tenders for Chevron’s Gorgon Project and the Great Australian Bight attracted interests from all over Australia and across the world, reflected in the companies that have been given responsibility for different parts of the projects. These range from local well established Australian firms to those as far away as Europe and the United, all working together to ensure the success of this project. These include Ensco Australia Pty Ltd is providing the Offshore Jack Up Rig, BP Australia is supply fuel, Aerodrome Management Services Pty Ltd is tasked with providing management and maintenance coordination of the Barrow Island Aerodrome including ground support crew, passenger processing, baggage and freight check-in and Passenger Security processing. Other
key contractors include MMA Offshore Limited and Go Offshore charged with the provision of two Platform Supply Vessels (PSV), Schenker Australia is providing freight forwarding Services, BOC limited with cylinder gases and lots more including Kentz, Toll Energy and Marine as well Sadliers Nexus. SO, WHAT’S IN THE PIPELINE? Whilst the demand for energy is continuing to grow, the world is simultaneously challenging the source, ethics and volume of consumption across the globe, as technology continues to progress and regulations are constantly reviewed.
Despite external factors and industry issues, Chevron Australia consistently succeeds in providing the commodity that entire countries so effortlessly enjoy the benefits of. Chevron Australia is in a strong position to diversify, innovate and supply demand for many years to come but it does so consciously through both recognising and acting upon, its economic and environmental responsibilities. With the Gorgon project taking shape and Chevron at the forefront of developing some of the latest technology in the market, Australia looks to be on the fast track to becoming one of the world’s leading providers of natural gas.
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CRANECORP AUSTRALIA
Over two decades lifting service delivery in Western Australia’s booming crane hire market
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raneCorp Australia is a business on the move. In 21 years, the company has grown from having one crane and two staff, to owning 63 cranes and a fleet of prime movers and trailers, with up to 200 workers on their books. While increasing opportunities and diversification into other markets have played a part in the success, CEO Rod White said a commitment to customer service has been key to the enviable growth rate of the Western Australian crane hire business. “It’s about outstanding customer service,” he said. “We’ve never lost a contracted
customer, which is impressive given we’ve been in business since 1997. “We’ve gone from one crane and two staff, to a state-wide business with 63 cranes and more on the way. We have a permanent staff of about 45 and a contracted workforce of about 100 to 110, although in the peak shutdown periods we often have over 200 people on the books for quite some time. “We’ve done that by providing outstanding service, from the time of placing the order through to delivery of the service. “I’ve never worked for a company that gets so many commendations from its clients just for going about its day-to-day business.”
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That daily business is focused on providing the best equipment, service, and technically advanced lifting solutions to the region’s prominent mining and processing companies, including BHP Billiton Nickel West, Kalgoorlie Consolidated Gold Mines, Gold Fields Limited, Norton Gold Fields, Glencore, AngloGold Ashanti, Newmont Mining, and Leighton Contractors, among others. The foundation of CraneCorp Australia’s current success was built in the Western Australian gold fields, where it was originally known as Goldfields Crane Hire. However a strategic re-branding in 2014 saw the company adopt the more generalised name, allowing for
its expansion throughout the state’s parochial mining industries, including iron ore and nickel. It now operates from four locations around Western Australia, including its head office in Perth, and its depots in Kalgoorlie, Leonora / Leinster, and Geraldton. Rod said CraneCorp Australia’s two shareholders, founder Rick Musarra and co-owner Craig O’Donnell, share a vision for its growth and a commitment to remaining hands-on. “I think one of the key things about the success of the business has been the major shareholders’ vision to want to grow,” Rod said.
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“They complement each other in that one’s very creative and entrepreneurial and the other has a great eye for detail and equipment knowledge. “They’ve both always led by example and they can do all the jobs too, so a lot of the staff are very loyal to those two individuals because they know the boss so to speak, they’ve actually worked alongside them.” Earning the loyalty of highly qualified and skilled staff has been another key to the success of the business, which is heavily reliant of the skills of their employees to maintain their strong
reputation within the industry. Wet hire services, where CraneCorp provides the crane, its operator and a rigger for the duration of the job, makes up about 45 per cent of its business, while labour hire of skilled crane crews equates to around 40 per cent of their work. Dry hire (hiring out only the asset) accounts for the remaining 15 per cent of their contracts. “It’s absolutely essential to have people who are good at what they do because we have to lift things that can sometimes weigh hundreds of tons, to within a millimetre or two of an engineer’s
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construction plans. If you don’t get it to the right place, it just doesn’t all come together,” Rod said. “The calibre of our people is without doubt outstanding. “We actually appoint an operator to a crane and the core of that is the core of our success - the cranes are looked after because the operators think ‘It’s my crane, I’m proud to drive it so I’m going to look after it’. They don’t damage them, they don’t treat them like a hire car, if I can use that analogy. They treat them as their own car and look after them. “And that pays huge dividends, the customer sees that these people care about the assets they’re using and the job they’re doing, and I think that’s why we get so many commendations.” Aside from having a great team culture, the company is renowned for its commit to safety in the workplace, with only two lost time injuries recorded in the last 10 years. For an industry that comes with so many inherent risks, it is an impressive achievement. Investing in technology has also paid dividends for CraneCorp Australia, with the implementation of a new enterprise resource planning (ERP) system allowing it to streamline its services and increase its efficiency through the use of iPadbased communications systems. “All of our cranes are now operated through an iPad, in that we send all the work orders, instructions, permits and qualifications from a centralised point to the iPad for each crane,” Rod said.
“We’re almost paperless now. You can imagine on a hot, dusty, windy mine site having sheets and sheets of paper around is not ideal, so we’ve got rid of all of that. “We’re the only company in Western Australia certainly, and I think in Australia, who have this capability to completely operate our cranes using the communications of an iPad. And as technology evolves we’ll find more and more opportunities to use it.” With more than $50 million of identified projects the business is intending to bid on in the next 12 months alone, it’s clear advances in technology aren’t the only opportunities CraneCorp Australia will look to capitalise on to ensure its continued growth and success well into the future.
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THE CALIBRE OF OUR PEOPLE IS WITHOUT DOUBT OUTSTANDING 55
BRISBANE AIR Investing in tomorrow
RPORT
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he largest airport in Australia by land size, Brisbane Airport (BNE) covers 2,700 hectares and houses 480 businesses, which employ more than 23,000 people. This is set to increase significantly too, as the work force is expected to exceed 50,000 people by 2034. Brisbane Airport Corporate Pty Limited (BAC) operates BNE and is a private, unlisted Queensland company. It creates economic opportunities for the city and the state which equate to more than $4 billion annually. THEN AND NOW In 1997, BAC purchased BNE from the Federal Government for $1.4 billion, under a 49 year lease with an option to renew a further 50 years. Under this unique leasehold tenure, BAC retains ownership and control of the airport and its entirety for the duration of the lease term up to 2096. Since taking ownership, the airport has
flourished over the last twenty years and BAC has continued to invest. Since FY12 BAC has invested $1.7 billion in developing BAC, with a further $1.8 billion worth of infrastructure set to be delivered between FY18 and FY22. It has been worthwhile too, with passenger numbers forecast to more than double by 2034. This extremely important investment has enabled BNE to facilitate and continue to make such growth, possible. SOARING SUCCESS With no curfew, BNE can operate 24 hours a day, seven days a week. It has two major terminals, accommodating 35 airlines which fly to 84 domestic and international destinations. In 2018, BNE averaged almost 3,000 weekly domestic movements with Sydney, Perth, Melbourne, Canberra and Adelaide ranking as its top 5 domestic destinations. Covering more than 30 destinations worldwide, BNE also averaged 712 global movements every week. Its top
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5 international destinations were named as New Zealand, USA, UK, China and Taiwan. The third-largest airport in Australia by passenger numbers, in FY18 BNE enjoyed record passenger numbers, with 23.4 million passengers using the airport during the financial year. Reporting total passenger growth of 2.4%, its international travel experienced the highest growth, with passenger numbers up 5.2% whilst its domestic passengers also increased by 1.5%. With customer numbers expected to continue growing, the business is showing fantastic potential for the future as it looks to open its new runway in 2020. NEW RUNWAY IS NEARING TAKE OFF Realising plans that were set in motion in the 1970s when additional land was purchased for the future, the work on the new runway began on site in 2012. Following years of planning, approvals, construction and investment, BNE is finally on the brink of opening its new parallel
runway. At a total cost of $1.3 billion, this significant investment will enable BNE to effectively double its current capacity. Once complete, BNE is confident it will have the best runway system in Australia and simultaneously enhance its offering for years to come. A key driver for long term growth of Brisbane and Queensland, the project has involved developing a 60m wide and 3.3km long runway and 12km of taxiways. The forward thinking planning in the 1970s has enabled BNE to benefit from using land that was allocated for development all those years ago. Importantly, it is far enough away from the current runway to allow the two to run independently yet close enough to have terminals, retail and commercial businesses running alongside. As the runway is nearing completion, the team acknowledge it has been a long road to reach this point. With up to 675 people working on the project during peak periods, it has involved 11 million cubic metres of
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COMPANY REPORT dredged sand, 1.2 million tonne of quarry products, 100,000 tonne of aircraft grade asphalt and an estimated 500,000,000m3 of earthworks. In addition to offering its passengers a greater choice of airlines, destinations and flight times, the new runway is expected to significantly enhance BNE’s economic contributions. It is estimated that by 2035, the new runway will lead to the creation of 7,800 more jobs and contribute an additional $5 billion in annual economic benefit to the region. With its current infrastructure nearing capacity, this crucial development will enable the continued growth of Brisbane,
its region and the nation. FLYING HIGH Whilst the development will revolutionise BNE’s business, the company is already established as a world class airport. BNE is consistently recognised as a leading airport and continues to win awards to support this. Most recently BNE reclaimed the title of Best Airport (Australia/Pacific) in the prestigious global Skytrax World Airport Awards 2019, which is the third time in four years. The company also increased its position to 18th in the World’s Top 100 Airports, making BNE the only Australian airport in the Top 20. BAC Chief
www.neilsens.com.au
Neilsons is supplying some 370,000t of Concrete Aggregates for the onsite Concrete Plant as well as some 30,000m3 of Pre-mixed Concrete and over 200,000 tonnes
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Brisbane & South East Queensland’s leading supplier of road based products. www.karreman.com.au West Mount Cotton Road, Mount Cotton (07) 3206 6311
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Executive Officer, Gert-Jan de Graaff exclaimed there was no greater accolade than being voted the best by global travellers in the world’s most prestigious industry awards as he commented on the achievement, “We are incredibly proud of this achievement as we’ve worked hard over the last few years to improve facilities, processes and the passenger experience at our terminals.” de Graaf added that the next couple of years will see BNE further strengthen its position as the future gateway to Australia. “While other major Australian airports are reaching ultimate capacity, when Brisbane’s new runway opens in 2020,
Brisbane Airport will have the most capacity of any airport in the Southern hemisphere and the most efficient runway system in the country.” If BNE wasn’t already, it will soon be the envy of Australia’s airports. The company shows no signs of slowing down, with additional projects including a new multi-level car park, road terminal expansions, terminal redevelopments and new commercial buildings planned to enhance the airport expansion. With Gert-Jan de Graaff commencing as BAC Chief Executive Officer in summer of 2018 and the new runway set to double capacity in 2020, Brisbane Airport is set for a fruitful future.
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SUNRAYS
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lobal population has doubled in the last 40 years and the demand on energy is higher than ever. As we continue to retrieve non-renewable resources, consumers are ever wary that these finite supplies are dwindling whilst costs continue to increase. In contrast, renewable resources such as solar energy represent an opportunity to generate energy from natural sources. Reducing the strain on fossil fuel demand and addressing the need for action against climate change, solar farms are springing up across the world. AUSTRALIA’S SOLAR FARM INDUSTRY Capitalising on the ever-increasing demand for natural sources of energy, solar farm development in Australia has dramatically increased in recent years. Combining the dry climate and high latitude, Australia is well placed to produce solar energy. It is reported that 2019 will set another record volume for commissioning, with more solar farms
currently under construction than its existing total capacity of operational solar farms (1.9GW). Sunraysia solar farm is one example of such solar farms due to be completed this year, and it is set to be a big one. SOLAR SUCCESS Owned and operated by both John Laing and Maoneng Australia and managed by Maoneng Australia, the Sunraysia solar farm is currently under development in New South Wales. This major renewable energy project is set to become one of Australia’s largest utility scale Solar PV power plants. The $277 million and 255MW project is underpinned by Power Purchase Agreements with the University of New South Wales and AGL Energy. Maoneng is well placed to manage such a large project, having delivered over 100MW of solar energy solutions. Its development pipeline comprises of approximately 2000 MW of utility and industrial scale solar energy projects
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across the APAC region. Equally, John Laing is committed to investing in Australia’s solar sector and is focused on major environmental infrastructure solutions. SUNRAYSIA: THE FUTURE IS BRIGHT Once complete, Sunraysia solar farm will be home to more than 755,000 solar panels (255MW DC) which will be mounted onto single axis tracking tubes. The construction requires more than 4,000km of cables and 100,000 piles to be installed over a development footprint of up to 800 hectares. The solar farm is expected to generate approximately 529GWh of energy per year; the equivalent to powering up to 50,000 households and offsetting approximately 430,000 tonnes of CO2. Sunraysia solar farm is connected to a 33 / 220kV substation co-located onsite where the energy is transferred to the Transgrid 220kV Balranald Substation. From there, the energy is transferred
either towards Buronga/VIC or Darlington Point/NSW. To improve communication and control of the solar farm, approximately 400km of new dark fibre will be installed between the Buronga and Darlington Point substations. The 255 MWp Sunraysia solar farm is scheduled for completion in December 2019 and on track to be the largest solar farm unveiled in Australia this year. During the construction period, up to 400 people will be directly appointed by the engineering, procurement and construction (EPC) contractor, Decmil Group Limited. The accommodation camp will be running close to full occupancy as the project ramps up. SUPPLY-CHAIN PROVIDERS Northline, one of Australia’s leading supply-chain providers were recently awarded the end to end logistics contract for Sunraysia. The contract involves transporting more than 2000 containers over 26 weeks from China and the USA
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COMPANY REPORT to the site. Appointed by Decmil Group Limited, the first containers arrived into Australia in early 2019. Northline will provide a full-service solution incorporating international sea freight, customs clearance, wharf cartage, warehousing, inventory management, quality control and interstate linehaul. The logistics company will also freight the photovoltaic panels, trackers and pile for the project. SUSTAINABLE FUTURE With a much lower impact on the environment, using renewable energy helps to protect our planet by significantly
reducing the carbon emissions that we produce. As the population of the planet continues to grow, it has never been more evident that fossil fuels are required to live our normal daily lives but remain limited and can be difficult to retrieve. On top of that, the consumer demand for renewable energy is at an all-time high as people across the world campaign for action against climate change. Sunraysia solar farm is just one example of a solar farm that is set to offer a sustainable source of energy for many years to come. The significant growth in solar farms in Australia over the last two years suggests the solar sector is one to watch closely.
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MRS MAC’S Dedication to quality for 100 million pastry products and counting
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he Mrs Mac journey began when Ken Macgregor (Mr Mac) and his family moved from Melbourne to Perth. A pie and cake wholesale business, named Bakewell Pies was founded in 1954. A nod to both the quality of its products and Mr Mac’s Scottish heritage, this remained the name of the company until the 1980s. From humble beginnings, Mrs Mac’s has come a long way yet benefits from its history and reputation as it continues to grow. Having grown over the years to become the diverse and innovative yet authentic food supplier it is, Mrs Mac’s strives to maintain its position as one of Australia’s greatest food companies. Established as a family-owned business, Mrs Mac’s is well known for its high-quality products and practices. Its ingredients support its reputation as the company pledges to only uses 100% Australian beef, fresh vegetables and local producers where possible. Though what has perhaps been most instrumental to its success, is Mrs Mac’s ability to remain true to its humble beginnings by continuing to make its pastry the traditional way, every day.
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A FRESH LOOK, SAME GREAT TASTE Most recently, the brand has demonstrated how it is moving forward with innovative introductions to its product range and modern refreshes to its brand design. Though Mrs Mac’s mission is clear that the company is as committed to its heritage as ever. It is this continued dedication to quality and tradition that has helped the company secure its position as Western Australia’s
largest pie and sausage roll maker and the second largest in all of Australia. Recently, Mrs Mac’s has turned red, which is all part of its rebrand. The new logo includes a stamp marking Mrs Mac’s seal of quality and the revised brand look and feel acts as a nod to its rich history. Whilst the brand promises the same great taste, its new packaging showcases Mrs Mac’s pledge to produce high-quality products, using
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COMPANY REPORT fresh and local ingredients. Mrs Mac’s CEO Paul Slaughter said, “The brand refresh is a great opportunity for us to showcase our rich history and ongoing commitment to quality. We make all of our products with the utmost care just as the Macgregor family did back in the 1950’s.” One thing that hasn’t changed though is the tag-line, providing that longstanding sense of trust and familiarity to its ever-growing consumer base, ‘If it’s not a Mrs Mac’s – take it back.’ RECIPE FOR SUCCESS Whilst its past is crucial to Mrs Mac’s success, the company is not under any illusion that it can become complacent. This is recognised through its mission and vision to continue offering quality pastry snacks and meals by being innovative, responsible and developing its people. Through a carefully measured mix of authenticity and heritage, combined with innovation and responsibility, the company is very well positioned to continue succeeding. PEOPLE AND FACILITIES Acknowledging the crucial part employees play in a company is all too often overlooked in business. However, Mrs Mac’s is passionate about developing its people and understands it is its employees that live and breathe the brand and company’s mission every day. Employing over 330 people, Mrs Mac’s is grounded in traditional family
values and committed to diversity. Established as a family-run business, Mrs Mac’s is proud that many of its team members have worked for the company for multiple decades and often over several generations. With reps spanning across Australia and New Zealand, the company offers job opportunities far and wide. Mrs Mac’s is also committed to supporting the communities that it operates within. The business has a wide range of sponsorship and official pie supplier partnerships that vary in size from local grassroots programmes to national sporting events. SUSTAINABILITY, QUALITY AND SAFETY A big challenge for organisations scaling operations to mass production is assurance and compliance but compromising on quality and safety can be a costly mistake to make. Thankfully, Mrs Mac’s is going above and beyond to take care of these elements of its business. For many businesses in recent years, sustainability has been on the radar and considered a goal. However, Mrs Mac’s is putting plans into action. As members of the RSPO Roundtable on Sustainable Palm Oil and Australian Packaging Covenant, Mrs Mac’s is already committed to sound business practices that significantly limit its environmental impact. It also has a bio-energy plant turning its organic waste into electricity for the local power grid. Getting ahead
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SU P PP RO PR LI UD OF ER T I L O O EP F BE A C T C H H K O E A IC P G E R IN TO EF G I M ER S RS R E M D A C S
in such practices will help Mrs Mac’s further stand out to consumers looking for responsible brands today and for generations to come. Mrs Mac’s is dedicated to meeting the needs of both consumers and stockists with its commitment to quality, safety and sustainability. Taking the title as the only Australian savoury pastry manufacturer with BRC Global Certification, one of the highest food safety standards available. Moreover, its quality and operational teams ensure the company achieves strict quality
and safety standards, with a focus on continuous improvement. Such certificates and assurances will speak volumes to any stockist considering Mrs Mac’s and will aid its position in many sales meetings to come. HEALTHY FUTURE With a company built on both strong family values and commitment to quality combined with a dedication to being both sustainable and innovative, Mrs Mac’s is well placed to enjoy a healthy future.
Australian made & globally sourced Our focus is to always consider environmental impacts and therefore we only use materials that are recyclable and reusable or compostable.
PHONE +61 8 9244 2711 FAX +61 8 9244 2776 EMAIL INFO@PROFILEPACKAGING.COM.AU
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