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SPECIAL REPORT

EXCLUSIVE INTERVIEW WITH OCEANAGOLD’S MICK WILKES

WWW.BUSINESSREVIEWAUSTRALIA.COM

MARCH 2016

Top10 Business Events in 2016

READY TO

RUMBLE? UFC GYM enjoying significant growth throughout Australia

THE STATE OF

TRANSPORTATION


EDITOR’S COMMENT

I N T H E U N I T E D S T A T E S , the month of March is synonymous with what

we call “March Madness.” We call it this in honor of the nation’s annual college basketball championship tournament, which gives Americans the rare chance to watch sports during the day while at work. This year’s tourney has a particular tie to Australia, as Melbourne native and Louisiana State University freshman phenom Ben Simmons is one of the most high-profile amateur players in the country. Famous legendary American football coach Vince Lombardi once said, “It’s not whether you get knocked down; it’s whether you get up.” Not only does that apply in athletics, but with young, aspiring entrepreneurs as well. In this issue of Business Review Australia, I caught up with Sydney UFC GYM CEO Maz Hagemrad to discuss the sport’s growing popularity across the country. But more than that, the company’s has an impressive branding strategy revolving around education and diversification, which can be applied to a multitude of businesses. In addition, software company Unit4 chief technology officer Erik Tiden details the importance of digital transformation, and how it is becoming the reality for nearly every business. Wrapping up the March issue is a list of top 10 business events this year, as well as our featured companies VicRoads, OceanaGold and much, much more.

Enjoy the madness.

Eric Harding Editor eric.harding@businessreviewaustralia.com Twitter: @eharding10

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30 OceanaGold

CONTENTS

FEATURES

6

Leadership

UFC GYM enjoying significant growth throughout Australia

14

22

Five Enterprise Software Trends to Watch for

Business Events of 2016

Technology

Top 10

COMPANY PROFILES MINING 30 OceanaGold

SUPPLY CHAIN 74 VicRoads

CONSTRUCTION 94 Woollam Constructions 104 Integrated Maintenance Group NZ

ENERGY 114 IPS Australia

4

March 2016

74 VicRoads


94 Woollam

Constructions

104

Integrated Maintenance Group NZ

114

IPS Australia

5


LEADERSHIP


LEADERSHIP THIS ISN’T ANOTHER story about a start-up growing into a new hot trend before quickly running out of steam. With a new emerging Australian market centred around women and children, the Ultimate Fighting Championship (UFC) GYM franchise appears to be here to stay. Last year’s epic UFC 193 bout between underdog Holly Holm and global icon ‘Rowdy’ Ronda Rousey drew over 56,000 fans at Melbourne’s Etihad Stadium, the highest attendance in UFC history. With another UFC event set for March 20 in Brisbane, the sport’s popularity is at an all-time high. “(UFC 193) drove the UFC brand to a mainstream media in Australia,” said UFC GYM Australia CEO Maz Hagemrad. “There was media coverage surrounding that fight for months, and that really assisted us in what we’re trying to achieve.” The brand has quickly capitalised on this, as at the end of 2015, UFC GYM announced its partnership with Ultimate Franchising Group to expand into Australia. PLANS FOR EXPANSION Since making its debut in 2009, UFC 8 March 2016

GYM has opened over 135 locations combined throughout Australia, the United States and Canada. The Sydney gym was opened by the United States team in March 2013, while the franchise model was initially launched in November 2015. Hagemrad believes most Australians


have had a connection with mixed martial arts (MMA) at some point in their lives, and the gym’s expansion will bring a fresh, new style of fitness to the country along with it. “The Australian market is an extremely sports-orientated market in general,” said Hagemrad. “The UFC

brand is growing here in Australia. “The fitness industry has been yearning for something different, and the UFC Gym brand is exactly that. It brings an innovative new fresh feel to the fitness industry, using MMA as the core of the training. “It teaches you fitness, but it also 9


teaches you discipline, respect and all the morals that go with it. It’s bringing those arts into a fitness arena, and that has never been done before.” Although there weren’t any monumental challenges in bringing UFC facilities to Australia, Hagemrad acknowledge the sport had to overcome the popular misconception of bodily harm associated with it. 10 March 2016

That’s where Hagemrad makes his presence felt. With a sports background as a former physiotherapist, his primary duty is to engage with perspective franchisees and promote and educate them about UFC. “The UFC brand in general is well-received in Australia,” he said. “Obviously, there’s a bit of a stigma


“It’s no different than playing rugby or any other contact sport. The difference is we’ve got two people going at it here compared to 30 people on the field going at it.” – Maz Hagemrad, UFC GYM Australia CEO

around the sport being brutal and violent. We continue to communicate to the public that the sport isn’t as brutal and violent as it’s perceived to be. “It’s no different than playing rugby or any other contact sport. The difference is we’ve got two people going at it here, compared to 30 people on the field going at it.” 11


LEADERSHIP

Hagemrad insists that crossfit, Brazilian jiu-jitsu or any other activity performed at the UFG GYM is no more risky than any other exercise — as long as you do it correctly. “Any exercise we do, if it’s done correctly with the correct technique, it’s as safe as any other sport,” said Hadgeman. WOMEN AND CHILDREN FIRST After spending three years convincing executives at the Sydney gym to add him to the group, Hagemrad 12 March 2016

acknowledged his biggest task since coming on board in 2013 was getting people engaged with the brand, and helping them understand that women and children are the biggest focus of its business plan. It’s among the main reasons Hagemrad felt so strongly about the brand in Australia. With youth and female classes representing an integral part of UFC’s programming, he believes they will benefit the most. In fact, Magemrad said the brand is directed toward children and families,


BUSINESS REVIEW AUSTRALIA

which is a key differentiating point than most clubs around the world. “Most clubs don’t let kids into their facilities, whereas we’ve gone the exact polar opposite,” he said. “Kids are a prominent feature in our clubs.” JUST THE BEGINNING UFC Gym Australia is seeking aggressive expansion throughout the country, from the Eastern Seaboard all the way to Western Australia. Hagemrad asserts there has been significant interest throughout the nation. Hagemrad is well-versed in the different types of activities and exercises, and can add an analytical and objective opinion based on his academic and clinical experience. There’s plenty of exclusiveness that comes along with being part of UFC GYM training programs that no others brand can get access to. Memberships include unlimited access to UFC Octagon and signature classes such as Daily Ultimate Training (DUT), TRX, Muay Thai, Brazilian jiu-jitsu, kickboxing, boxing, mixed martial arts conditioning, women’s self-defense, as well as popular group

fitness classes. Although it’s still in franchise development phase, there are ample opportunities to capitalise on since it provides such excellent value proposition to the consumer. “We’ve got a strategic plan over the next 10 years for the Australian market,” he said. “We’re seeking aggressive expansion across the country. Franchisee interest is quite high now, and we’re going to capitalise on that.” 13


TECHNOLOGY

5

Enterprise Software

TRENDS TO WATCH FOR UNIT4 CTO ERIK TIDEN DESCRIBES THE IMPORTANCE OF DIGITAL TRANSFORMATION, AND HOW IT IS BECOMING REALITY FOR NEARLY EVERY BUSINESS WRI T TEN BY: ERIK T IDEN


TECHNOLOGY WITHOUT QUESTION, digital transformation (DX) is shifting from hype to reality for nearly every type of business. Disruptive new business models have already and will continue to transform the workplace, as companies that apply these new paradigms will gain competitive advantage and thrive. However, some companies won’t, simply because they are not taking digital transformation as seriously as they should. The good news is that your business has the potential to maximise the digital transformation journey. Pay close attention to the following five trends to ensure your organisation is on the front foot of DX:

1. I oT s p r e a d s t o ever y thing, ever y where The keyboard is no longer king. It is only one element in the impending data avalanche from a growing network of information contributors. Mobile devices, wearables, sensors, automotive devices and environmental devices have all matured, and the proliferation of input gleaned from them is increasing rapidly. Gartner calls this the “digital 16 March 2016

mesh.” Everything in the digital mesh produces, uses and transmits information, and goes beyond textual, audio and video information to include sensory and contextual information. Effective enterprise software collects this cacophony of data, makes sense of it, and incorporates it into your business processes. For that you’ll need the new analytics — which


lead to the second trend.

2. The new analy tics New techniques and strategies are emerging to analyse this tidal wave of information, as it will be too expansive and complex for humans to digest. Smart software will autonomously analyse the terabytes of input and then suggest solutions and outcomes to

their human “masters.” Yesterday’s generation of software was designed for computations and functionality. Today’s generation is designed for analytics, and provides a level of intelligence never seen before. Self-learning programs that uncover insights beyond human comprehension will gain a solid foothold in our operations. You can 17


expect this trend to evolve and expand quickly in a few short years, but the best businesses will begin taking advantage now.

3. Rapid advances in user experience This year, user experience will go beyond a pretty interface. The technology landscape will be dominated by an intense focus on user experience. 18 March 2016

Smarter systems will facilitate seamless interactions that anticipate the needs and behaviors of users. Expect intelligent software to reduce the need for user interaction at all. As consumers, we’ve come to expect an elegant and intuitive experience, and business users will expect the same. In addition, the impact of BYOD (Bring your own device) will continue and accelerate this usability trend, as employees


choose a familiar device, tailored to their personal needs. The overall result will be employees constantly interacting with their peers, their computers and the web. Excellent usability makes your business applications far more impactful. As your teams exchange more data, more often and from more places than ever before, you’ll realise increased efficiency, more collaboration, and better, timelier

information.

4. The forecast is sunnier for the cloud Small and midsized businesses have led the migration to the cloud. They started with applications that were not core to their business mission, and in a short time, more and more mission-critical apps have been moved to the cloud. However, it is now time for the large 19


TECHNOLOGY

20 March 2016


BUSINESS REVIEW AUSTRALIA

multi-nationals to join the party. By 2018 Gartner anticipates 25 per cent of large organisations will run their financial applications on the public cloud. Enterprise-strength cloud solutions are increasing and security fears are waning. Larger companies are hungry for the greater agility and reduced IT complexity that cloud solutions offer. The movement of core applications to the cloud —– among all businesses of all size — is inevitable.

5. The empowered workforce Sophisticated software will enable high-wage, high-skilled workers to reduce mundane tasks. According to a McKenzie & Company Report from November 2015, “As many as 45 per cent of the activities individuals are paid to perform can be automated by adapting currently demonstrated technologies.” The report references all employees, from CEOs, financial managers and top managers to frontline employees, the ones who respond to customer’s needs. Increasingly sophisticated

software will perform increasingly sophisticated tasks — everything from analysing reports and data to making operating decisions, to preparing staff assignments to reviewing status reports. The result will be more engaged and empowered employees that deliver greater value. These five trends — user interface, IoT, analytics, cloud and the automated workforce — are at the heart of Digital Transformation. It is essential to understand and harness the power of these trends. Your business depends on it. Erik Tiden is chief technology officer (CTO) at Unit4 21


TOP 10

BUSINESS EVENTS OF

2016

These are the sector’s can’t-miss events for this year

Building a business on your own can be difficult. Even if you have all the passion, knowledge, drive and determination needed to make it succeed sometimes a little extra is what can really make your business a success. With numerous business

conferences taking place this year both globally and in Australia, the little extra that you need to achieve your goal could be closer than you think. Here’s a list of the can’t-miss conferences that will be useful for picking up tips and networking:

Written by: Eric Harding


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TOP 10

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AD:TECH

15 & 16 MARCH 2016 — HILTON SYDNEY

A global exhibition and conference where marketing, technology and media communities come together, Ad:tech shares new ways of thinking through building strong partnerships and defining new strategies to address important challenges in the industry. FOR MORE INFORMATION >>

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DIGITAL DISRUPTION

22 & 23 MARCH 2016 — AUSTRALIAN TECHNOLOGY PARK, SYDNEY

Disruption isn’t about technology, its about the velocity of change. As part of Digital Transformation Week, Digital Disruption X 2016 will focus on the velocity of disruption, setting up your organisation for the new state of business and how you can leverage disruption to grow. And the key to staying ahead of the curve, depends on keeping up with the pace of change. FOR MORE INFORMATION >> 24

March 2016


BUSINESS REVIEW AUSTRALIA

8

SOCIAL MEDIA WEEK

6-10 JUNE 2016 — MEXICO CITY/LOS ANGELES/MILAN

Social Media Week happens four times a year at various locations around the world, and this spring it’s kicking off in Mexico City, Los Angeles, and Milan. The global theme for 2016 is “The Invisible Hand: Hidden Forces of Technology (and How We Can Harness it for Good),” which plans to explore the many intricate ways that connectivity has changed—and will continue to change—the way we communicate. FOR MORE INFORMATION >>

7

SEARCH MARKETING SUMMIT

30 MAY – 3 JUNE 2016 — SMC CONFERENCE AND FUNCTION CENTRE, SYDNEY

Search Marketing Summit is Australia’s only dedicated search engine marketing conference designed with search marketing practitioners who have mid to high levels of experience in mind, we don’t do the basics. The conference is filled with sessions to help you learn from leading local and international experts on how to improve your natural search ranking and paid search advertising. FOR MORE INFORMATION >>

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TOP 10

6

MUMBRELLA

7-9 JUNE 2016 — HILTON HOTEL, SYDNEY

Mumbrella is a discussion of everything under Australia’s media and marketing umbrella and Mumbrella360 is its national conference. The event is designed for those in the business of media, marketing and entertainment and provides learning and understanding around today’s media. It includes keynotes from Australia’s most influential media and marketing executives and curated sessions put forward by Mumbrella readers. FOR MORE INFORMATION >>

5

UX AUSTRALIA

23 -26 AUGUST 2016 — GRAND HYATT MELBOURNE

UX Australia is Australia’s premier user experience design conference. Two days of hands-on workshops focus on practical skills to help you get started, learn new techniques and explore ideas in detail. Presentations will provide practical skills to take away, inspire you for your next project, stretch your knowledge in a new direction or show how someone in a different field has tackled a problem just like yours. If you are in a role where your recommendations or decisions ultimately affect the way a person experiences your product, this conference is for you. FOR MORE INFORMATION >>

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March 2016


4

TECHCRUNCH DISRUPT

12-14 SEPT. 2016 — SAN FRANCISCO, USA

If you’re an entrepreneur or an investor in the tech field, TechCrunch Disrupt is the place to be in May. The annual conference attracts thought leaders and innovators for keynote speeches, hackathons, and startups showcasing their ideas at Startup Alley. At the center of it all is the Startup Battlefield, where rising tech stars compete for recognition and a $50,000 prize—past winners include Dropbox and Zenefits, and yours could be next. FOR MORE INFORMATION >>

3

CONNECT EXPO

19 & 20 APRIL 2016 — CONVENTION & EXHIBITION CENTRE, MELBOURNE

With a focus on ‘disruptive and emerging technologies’ and boasting being Australia’s fastest growing business event, there is only one place that business owners new and old should find themselves at the Connect Expo in Melbourne. The conference allows owners and senior executives to come together to network, learn and form partnerships and consists of a tradeshow combined with a conference program. FOR MORE INFORMATION >> 27


TOP 10

2

CEBIT 2016

2-4 MAY 2016 OLYMPIC PARK — SYDNEY

The place to be for any business owners from start-ups to wellestablished is CeBIT Australia — a business event focused on business solutions being solved via technology. The event will feature

twelve technology conferences, over 350 business technology exhibitors and a number of social functions, so there will be something for business owners to learn at every step. FOR MORE INFORMATION >>

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March 2016


BUSINESS REVIEW AUSTRALIA

1

WORLD BUSINESS FORUM

25 & 26 MAY 2016 — THE EVENT CENTRE, SYDNEY

With speakers including Sir Richard Branson, Nicholas Negroponte and Rita McGrath the World Business Forum 2016 is a must visit for any business owner or aspiring entrepreneur. The conference has been running for eleven years

and aims to provide a source of inspiration to any business owners wanting to build a better business. With a diverse range of speakers discussing a variety of business related topics, there is sure to be something to takeaway no matter what field your business is in. FOR MORE INFORMATION >>

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BUILDING A GLOBAL NAME

CEO Mick Wilkes outlines the future of OceanaGold and dis key acquisitions recently completed, including the purchas Waihi Gold mine and Haile Gold mine. Written by: Robert Spence Produced by: Andy Turner


E

iscusses se of the

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O C E A N A G O L D C O R P.

B

orn and bred in New Zealand, OceanaGold was originally founded in 1989 as Macraes Mining. Starting from a single mine, the mining company has developed into a significant multinational gold producer with a dynamic portfolio of operating, development, and exploration assets in New Zealand, the Philippines and most recently the United States. “We’ve gone from a single asset gold mining company to a

Waihi town site & Martha Open Pit

multinational gold producer with four mines in three countries,” said Mick Wilkes, OceanaGold’s Managing Director and CEO. In recent months, the mining firm has secured a string of key additions to build upon, including the purchase of Newmont Mining’s Waihi Gold Mine in New Zealand and the Haile Gold Mine in the U.S, and under the leadership of Wilkes, OceanaGold is poised for a breakthrough year in 2016 and beyond.


MINING

Building a high quality gold mining Company Today, OceanaGold controls and operates a portfolio of mines in the three largest goldfields in New Zealand, including the Macraes operation. As OceanaGold’s pride and joy, the Macraes operation has been operating since 1990 and has produced over four million ounces of gold to date. The site is comprised of an open pit and an underground mine (Frasers

Underground), commissioned in 2008. “The project started out with a seven year mine life. It’s never been particularly profitable as it contains a very low grade, but through the tenacity of our workforce and their innovation, they’ve been able to keep the operation generating a positive cash flow,” said Wilkes. According to Wilkes, Macraes has an estimated 4 million ounces of gold left in resources but it’s an “incremental process” that

w w w. o c e a n a g o l d . c o m

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Partnering OceanaGold at Macraes Mine

RedBull team and Mobile Mixer Units loading a blast at Macraes Mine.


Responsive, reliable and committed to safety and service. OceanaGold selected RedBull as its explosives supply partner due to our ability to meet and exceed service expectations.

We provide a high quality, low cost bulk emulsion, the best possible service and are committed to an open, inclusive and co-operative relationship.

We have achieved these objectives and justified OceanaGold’s appointment of RedBull as their strategic partner.


PROFESSIONAL TO THE CORE

SAFETY, PRODUCTIVITY AND RECOVERY ARE OUR PRIORITIES To know more about us, please visit our website: www.indodrill.com


MINING

Macraes Processing Plant

includes more exploration and a few more years. With the addition of the Frasers Underground mine, which is currently 740 meters below surface and 200 meters below sea level, including over 48 kilometers of developed tunnel drives, OceanaGold intends to continue tapping the asset—despite low gold prices. “The vision at Macraes hasn’t changed but the strategy has. We needed to adapt to the changing economic environment, and when prices dropped in 2013, we were able to quickly adjust,” said Wilkes.

“At Frasers, we’re chasing the higher grade hanging walls where we know we can mine profitably. It’s a very efficient design and we continue to chase higher grades and zones at new depths.” In the Philippines, OceanaGold owns and operates the high grade gold-copper mine, Didipio, located on the island of Luzon north of Manila. The operation is home to roughly 1,800 Filipino employees, with approximately 50 percent derived from local communities in the immediate vicinity of the mine. According to Wilkes, OceanaGold w w w. o c e a n a g o l d . c o m

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WHAT’S YOUR BUSINESS CHALLENGE?

Lowering costs. Keeping people safe. Working more efficiently. Managing your assets. Mining is a challenging business, and whether you have one piece of Cat equipment or many more, we’re there to help you manage it. The combined knowledge of Caterpillar and our dealership is unparalleled in the industry. We’re continually investing in research and developing new products, technologies and services that help you mine more productively, safely and sustainably. We don’t just sell mining equipment; we help manage your equipment. We’re a true business partner who shares your goal of mining excellence — however you define it.

Branches Throughout New Zealand| Phone 0800 93 39 39 | GoughCat.co.nz


MINING

actively recruits, hires and trains locals for the operation. “Our workforce at Dipidio is 99 percent Filipinos. We’re very proud of that 99 percent,” said Wilkes. “We’re putting a lot of effort to developing the workforce here. The same thing applies to our New Zealand and Macraes workforce, and future locations.” The mine, which commenced production in 2013, has a cost structure in the lowest quartile across the industry, with negative All-In Sustaining Costs in its first full year of commercial operations.

Martha Open Pit – Waihi Operation

“2015 was another good year, with cost in line,” said Wilkes. “Although the copper price was lower than expected last year, we do expect the copper price to come back strongly in the next couple of years.” The Right Assets In October 2015, OceanaGold finalized the acquisition of the Waihi Gold Mine from Newmont Mining. The mine, which achieved record gold production in 2014, producing 3.5 million tons of gold, represents a calculated move for the New Zealand company.

w w w. o c e a n a g o l d . c o m

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A competent worker is worth their weight in gold. Underground and Open Cut Operators are only as competent as their training environment. That’s why Site Skills Training and OceanaGold have built a real immersive environment, including 250m of underground hard-rock tunnel, for developing and up-skilling operators. The mine was designed to decrease your operational costs, increase efficiency and meet corporate social responsibility commitments, without disrupting your operations. To discover more about our world first training mine and the 300,000sqm facility it’s housed in, visit siteskillstraining.com/mine


Site Skills Training in partnership with OceanaGold has constructed the first underground and open cut mine training environment in South-East Asia. The 10,000sqm immersive mine training environment is available for use by all companies looking to skill project personnel for a wide range of operator training and safety courses in the region. With training facilities and projects across Australia, the Philippines, PNG, Myanmar, Singapore, Malaysia, the Middle East and more, we build customised training facilities and programs to suit our clients wherever they are. To discover how we can build a customised training solution for your workforce, visit siteskillstraining.com


Experience You Can Trust Respected supplier of high quality specialty processing reagents and chemical commodities for the mining industry. Interchem supplies specialty and commodity chemicals for a vast array of applications in adhesives, building and construction, paint and surface coatings, paper and composites, pool and spa, mining and metals, water treatment and refrigeration. Our range includes (but is not limited to) acids, alkalis, biocides, carbonates, citrates, glycols, phosphates, sulphates, oxidisers, reducing agents, antifoaming agents, wetting agents, dispersants, pigment powders, coating additives, surfactants and sequestering agents. Our team is multi-skilled in order to ensure that we provide our customers with the complete service package. Whether you require sound market advice, compliance support or the conndence that your order will be delivered on time, we have the people and systems to make it happen.

Interchem Agencies Limited 7 Gladstone Road, Northcote Auckland 0627, New Zealand

P +64 9 418 0097 E info@interchem.co.nz

www.interchem.co.nz


MINING

“The Waihi Operation represents a strong strategic fit with our existing business, and we are excited to welcome this high quality asset and its talented team into OceanaGold,” said Wilkes. “Our ambition is to be the gold producer of choice globally and our strategy to get there is invest in high quality assets.” Waihi is comprised of two areas: the Martha Open Pit and associated underground mines, including the Correnso Underground mine, which

Waihi underground mine

is the current active operation at the site producing approximately 130,000 ounces of gold each year. According to OceanaGold, Waihi has a combined open pit and underground Proved and Probable Reserves estimated as 1.52 Mt at 6.33 g/t Au and 24.0 g/t Ag containing 310 koz of gold and 1,173 koz of silver. “We purchased Waihi with a three year mine life and we fully expect to extend that through exploration and


14F Cyberone Bldg, #11 Eastwood Ave Eastwood City Cyberpark, Bagumbayan Quezon City, Philippines 1110

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We’ll Move The Earth For You! Delta Earthmoving, Inc., a Filipino-owned company is the leading Quarry and Mining Contractor in the Philippines. It’s on-going major contract in Metal Mine is with OceanaGold Philippines, Inc. where it covers the entire Open Pit Operations, Tailings Dam Construction, Civil Works and the continuing Mine Rehabilitation activities. On the Quarry industry, it currently undertakes a number of Limestone and Basalt unde Quarries with La Farge-Holcim, CRH-Aboitiz, Cemex and two (2) major local Cement manufacturers.

As a local company, the biggest exposure it has experienced is the acquisition of the mining contract for OceanaGold’s Didipio Copper-Gold Project which became the biggest opportunity for Delta to enhance its operating and safety standards and its socio-economic skills. This transforms Delta into a World-Class Mining Contractor and is now well primed to take on bigger and more challenging projects and continue to lead in the industry in the Philippines. For further information, call or email us: Tel: (63) (2) 687-1000 Email: secretariat@deltaearthmoving.com


MINING

permitting,” said Wilkes. Another upside of the purchase is its location. The township of Waihi is situated near the east coast of the North Island within ninety minutes’ drive of the country’s major cities and provides easy access to employment. “We start with a culture within the organization that looks for efficiencies and we have the right processes in place to drive that,” said Wilkes. “Fundamentally it’s the people and team that make it happen. “It comes back to values. As a company, we have specific values including respect, integrity, teamwork, action, innovation and accountability. Those values are embedded in how we work and live with local communities,” said

Waihi Underground – Waihi Operation

Wilkes. “So when we hire people, we’re looking for people that have those values.” “We are looking forward to working with employees, contractors, and local stakeholders to add further value to this unique operation by extending the mine life and seeking out operational efficiencies,” said Wilkes.

“Our ambition is to be the gold producer of choice globally and our strategy to get there is invest in high quality assets.” – Mick Wilkes, OceanaGold’s Managing Director and CEO w w w. o c e a n a g o l d . c o m

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Work Safe, Drill Safe, Home Safe Washingtons is a leading provider of rotary / slim-hole operations, aimed at providing excellent base data for resource interpretation. Reverse Circulation,Water Bores, Horizontal Drainage, Diamond Core, Coal Seam Gas, Geothermal, Slimhole Oil & Gas, Piling and Construction Drilling. W ith over 51 years experience in the drilling industry, Washingtons offer an extensive range of drillings services and equipment specialising in remote access/track mounted or 8x8 machinery. W ashingtons has a great asset in the experience of its personnel who, between them, have overseen a great variety of drilling and coring operations in localities as diverse as Antarctica, Asia, PNG, Oceania, the Subcontinent, the Middle East and West Africa.

Washingtons Exploration Ltd 19 Seadown Rd., P.O. Box 2045 Washdyke, Timaru, NZ Tel: 03 688 2638, Fax: 03 688 2637 Email: office@washingtons.co.nz

www.washingtons.co.nz


MINING

In late 2015, OceanaGold made a chess move to purchase Romarco Minerals Inc. for $856 million. The deal gave OceanaGold rights to the Haile Gold Mine in Lancaster County, South Carolina, providing its first U.S. gold mine site and paving the way for growth in new territories. “The merger with Romarco allowed us to move even lower on the cost curvethough the development of the high quality Haile Gold Mine. It’s complementary

to our portfolio.” said Wilkes. “With the addition of the Haile Gold Mine and the Waihi Gold Mine to our portfolio, we look forward to integrating both assets and their its experienced workforce into our business, in the process unlocking significant value.” Leading the Charge With Wilkes and his management team at the helm, OceanaGold has established a track record for ethical environmental management

Michael Wilkes, President and Chief Executive Officer

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MAXIMIZE YOUR POTENTIAL VALUE-ADDED SOLUTIONS THAT REDUCE RISK, ENHANCE VALUE, AND MAXIMIZE RETURNS AT EACH STEP OF YOUR VALUE CHAIN

© SGS Group Management SA – 2016 – All rights reserved - SGS is a registered trademark of SGS Group Management SA.

The services we provide range from quality and quantity inspection and testing for a vast array of commodities to advanced services, which optimise the recovery of metals in processing plants. Our customers rely on us to provide them with expert services and advice, which help them gain competitive advantage through reduced risk at all stages of the value chain. SGS Minerals services in the Philippines include: Trade and Analytical Services for Energy Minerals (Coal, Coke, Pet Coke); Trade Services for Steel and Steel Making Raw Materials; Trade Services for Non Ferrous Metals and Minerals; Trade Services for Fertilizers and Dry Chemicals; Geochem through Onsite Laboratories; and, Analytical Services for Geochem Samples. SGS Philippines, Inc. Minerals laboratories are accredited to ISO 17025:2005 while its Minerals Inspection operation is accredited to ISO 17020:2012. Operating its Didipio laboratory since 2012, its facilities, experience, and expertise ensures that Oceana Gold is provided with accurate results within optimum turn-around time. SGS Minerals services of New Zealand won the NZ onsite laboratories contract at Oceana Gold’s Macraes and Reefton sites in 2011. The SGS Waihi laboratory also continues to provide analytical services and technical expertise to OGL’s Waihi Mine, purchased from Newmont Waihi Gold in mid 2015. Accredited to ISO/IEC 17025, these laboratories are

responsible for the on-going sampling, preparation and analytical requirements crucial to the daily operations each of these OGL sites. SGS New Zealand continues to support OGL both as a strategic partner and a technical advisor.

WHY SGS? SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 85,000 employees, SGS operates a network of over 1,800 offices and laboratories around the world.

FOR PHILIPPINE OPERATIONS: NELSON CALPO Manager, Minerals Division SGS Philippines, Inc. 2nd Floor, Alegria Building, 2229 Chino Roces Avenue Makati City, Metro Manila Philippines Phone: +63 7849400 Email: nelson.calpo@sgs.com

FOR NEW ZEALAND OPERATIONS: HUGH MCMILLAN General Manager Minerals and Environment, Health and Safety SGS Minerals New Zealand Ltd. Head Office 5 Lyttelton Street Westport PO Box 240 Westport 7866 New Zealand Phone: +64 3 788 9003 Email: hugh.mcmillan@sgs.com


MINING

and community and social engagement. The company prides itself on its strong social license to operate, and rigorously works with its stakeholders to identify--and invest--in new social programs, designed to “build capacity and not dependency.” “Wherever we work, we invest in the wellbeing of our communities by supporting programs that improve health, education, infrastructure and capacity building,” Wilkes said. For OceanaGold as a business, the focus is how to make operations safer through technology and innovation, while increasing productivity. “Our leadership team embraces modern technology and we use it to drive innovative ideas in everything we do. Modern technology, like wireless communication for example, has greatly advanced in recent years and it’s created a stepchange in innovative technology,” said Wilkes. “You don’t have to invest tens of millions of dollar to make a big change.” Wilkes’ overall strategy for moving forward is simple, he said. “As I look back on the past five years, we’ve been successful because we get people aligned with our vision,” said Wilkes. “Through our success, we have to be mindful to stay humble and just keep putting one foot in front of the other. It’s all about big vision—small steps.”

Key Personnel

Michael Wilkes

President and Chief Executive Officer

Mark Chamberlain Executive Vice President and Chief Financial Officer

Mark Cadzow

Executive Vice President and Chief Development Officer

Michael Holmes

Executive Vice President and Chief Operating Officer

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O C E A N A G O L D C O R P.

Gold

In 2015, production guidance range with 419,153 ounces produced (36 percent yearon-year increase) Didipio Open Pit

OceanaGold Beats 2 0 15 G u i d a n c e f o r Gold, Copper While 2015 was mostly a forgettable year for the mining industry, multinational gold mining company, OceanaGold, achieved record success. The company exceeded 2015 consolidated gold production 50

March 2016

guidance range with 419,153 ounces produced (36 percent year-on-year increase) and achieved copper production guidance range with 23,109 tons produced. Operations At its Didipio operation, a high grade gold-copper mine located in the


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“Through our success, we have to be mindful to stay humble and just keep putting one foot in front of the other. It’s all about big vision—small steps.” – Mick Wilkes, OceanaGold’s Managing Director and CEO

Philippines, the company delivered record annual gold production and throughput with 127,086 ounces of gold produced along with 3.58 million tons of ore processed. The company recorded unaudited consolidated All-In Sustaining Costs (“AISC”) of $709 per ounce sold and cash costs of $458 per ounce sold,

both within the 2015 cost guidance range. In addition, OceanaGold completed commissioning of the power grid connection at Didipio. The operation is now operating on grid power and the Company expects lower processing costs than in previous years. Development w w w. o c e a n a g o l d . c o m

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"Our priorities are the health and safety of workers and the delivery of quality products and services on time."

WAE is a medium to heavy fabrication engineering company with branches located at Waikouaiti and in Dunedin City. • • • • • • • • • • •

WAIKOUAITI BRANCH 128 Main Road Waikouiti 9510 New Zealand Ph: 03 465 7797 Mobile: 0274 555 797 E5 mail: 2 kevin.byrne@wae.co.nz March 2016

Safety Focus - Planning and Hazard Management Project Planning - Scheduling - Execution - Reporting Design - Build - Install - Maintain Structural Steelwork Plate and Tank Fabrications Piping Mechanical Machining Maintenance and Diagnostics - Planned and Breakdown Response. Crane and Hiab Hire: 1.5 ,15, 30, 45 & 60 Tonne Scaffolding

DUNEDIN BRANCH 63 Sturdee Street, Dunedin New Zealand Ph: 03 477 6797 Mobile: 0274 776 799 Email: Dunedin@wae.co.nz

www.wae.co.nz


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Didipio water treatment plant

of the Didipio underground mine continues to progress with a plan to begin developing exploration drifts by the second half of 2016, which will allow for drilling of the Didipio deposit at depth. In New Zealand, Macraes and Reefton exceeded their gold production guidance with 222,093 ounces produced including 51,419 ounces produced in the fourth

quarter. The year-on-year increase in gold production was a result of higher production at Reefton where the operation will process stockpiles until the end of February 2016, at which point it will be placed on care and maintenance. “Last year was a transformational year for OceanaGold and another year of strong operational and social performance where we delivered w w w. o c e a n a g o l d . c o m

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See how we partnered with OceanaGold at

www.west-trak.co.nz/customers/oceana-gold/

Every hour of machine downtime equals immense loss of productivity As a complete wear part solution provider to the Mining, Quarrying, Forestry and Civil Construction industries, West-Trak helps customers like OceanaGold do things they’ve never done before. Because that’s what productivity is really about…

Wear parts that wear longer instead of wearing faster

Improved uptime instead of downtime

Increased ROI instead of increased cost

When you partner with West-Trak, productivity is never an accident. We make sure it’s a given.


MINING

a solid return for shareholders and made significant social investment in the communities where we operate,” said Mick Wilkes, President and CEO. “We not only exceeded our gold production guidance but did so at sector leading low costs while further improving on our environment, health and safety record.” Acquisitions and Developments Last year also saw OceanaGold complete the acquisition of

Romarco Minerals, securing ownership of the Haile Gold Mine in South Carolina, USA, as well as completing the acquisition of the Waihi Gold Mine in New Zealand from Newmont Mining. Waihi produced 69,973 ounces of gold in the second half of 2015, being production attributable to OceanaGold. In the fourth quarter, Waihi produced 34,987 ounces of gold which was slightly higher than in the previous quarter on the back of a higher mill feed and better recoveries. The Company completed the Waihi transaction

Mill zone starter pit - Haile Gold Mine

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REVOLUTIONIZING THE MINING INDUSTRY WITH NEW TECHNOLOGIES With over 50 years of presence in Philippines, Atlas Copco offers comprehensive nationwide sales, parts and service facilities and support. To know more, visit us at

www.atlascopco.com.ph

How can we help you today? Service? Sales? Product Information? We would be happy to answer your questions, email us acpi@ph.atlascopco.com or call us at the contact number below:

Atlas Copco (Philippines), Inc. Business Address: North Main Ave., Lot 12 Blk 2, Laguna Technopark, Bi単an, Laguna Telephone: +63 (0)2 843 0535 to 39


MINING

Waihi Operation

on October 30, 2015. Subsequent to the completion, the Company focused on integrating the Waihi operation into the OceanaGold business while seeking to improve productivity and reducing costs. “In the fourth quarter, we completed both the Romarco and Waihi transactions and developed an extensive exploration program across our business. Through exploration, we have already

demonstrated additional resources at Macraes along with solid results from Waihi,� Wilkes said. Financing Prior to the end of 2015, OceanaGold completed an agreement for a $250 million four year amortising corporate revolving credit facility being a restructure of the existing $195 million three year amortising corporate revolver, w w w. o c e a n a g o l d . c o m

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CLEVER RESOURCEFUL SOLUTIONS At Orica, we’re focused on developing long term partnerships which reduce total cost of mining, improve productivity and enhance your licence to operate. We combine the progressive thinking of our Global R & D and Technical networks to find solutions to the challenges you face every day. For more information contact our team: Keiran J. Balkin Business Development Manager, Asia Email: keiran.balkin@orica.com Louie R. Sarmiento Business Manager Philippines, Taiwan, Micronesia Email: louie.sarmiento@orica.con

orica.com

Orica Philippines,Inc. 2/F, Bonifacio Technology Center, 31st st. Cor. 2nd Ave. Bonifacio Global City Taguig City, Philippines 1634 Tel No: +632 815 1657 Fax No: +632 815 1729

Limay Factory Lamao, Limay, Bataan, Philippines Tel No: +6347 244 5772 to 74 Fax No: +6347 244 5810


MINING

Reefton Operation

which was set to mature on July 1, 2018. The new facility amortises to $200 million in December 2017, $150 million in December 2018 and matures on December 31, 2019. Compared to the previous corporate loan, the restructured facility has more relaxed commercial terms

and a substantially reduced margin. The new facility was financed by six international financial institutions comprising the Bank of Nova Scotia, BNP Paribas, Citibank N.A., Commonwealth Bank of Australia, HSBC and Natixis. The new debt facility also replaces to the Romarco w w w. o c e a n a g o l d . c o m

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Proud partner of OceanaGold Since the 1960’s, Bridgestone has been an innovator in the field of off-the-road tyres, supplying a full range of products and providing worldwide, world class service for mining, construction, highway service and port customers.

For all enquiries to our Commercial Bridgestone Tyre Centres please phone 0800 80 20 80

// U N R I VA L L E D PA R T N E R S H I P The Hitachi EH5000AC-3 mining truck and EX8000-6 backhoe excavator. From the factory to the pit, Hitachi’s ultra-class hydraulic excavators and electric drive mining trucks are engineered to maximise the productivity of mining operations. Our flagship machines deliver unmatched performance and reliability when it comes to loading and haulage. The most powerful and productive combination yet.


MINING

debt facility which was terminated in the fourth quarter. Mr. Wilkes added, “As we close out a successful campaign in 2015, we begin a new year with a more robust business, one that is low cost and structured to continue delivering positive results even at lower commodity prices. It’s a business that has significant organic growth and self-financed to unlock this potential.” He went on to say, “We will continue to advance the

development of the Haile Gold Mine to commercial production in early 2017. We have developed our most ambitious exploration program in the Company’s 25 year history to identify additional resources and extend mine life across our operations. We will remain steadfast in our environmental and social commitments and will continue to work very closely with our valued stakeholders.”

Haile Operation

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THE FIRST CHOICE IN DESIGN, EXECUTION & M AINTENANCE A reputation built on 45 years of expertise and integrity, delivering engineering design, construction and maintenance services to the minerals resource sector. CPC’s success is driven by a commitment from our people to add value in everything we do. P E RTH | KALG O O RLI E | KAMBALDA | P O RT HE DLAND | RAV E NS THO RP E | E S P E RANCE

S AF E R BY CHOICE

cp cen g i n eer i n g . co m . au


MINING

Outlook Moving forward, OceanaGold announced its 2016 production and guidance of 385,000 to 425,000 ounces of gold at continued low AISC of $700 to $750 per ounce. At Haile, the company commenced infill drilling of the Horseshoe resource in the fourth quarter of 2015 and conducted initial drilling of regional targets including Cypress and Loblolly with assays pending. In 2016,

OceanaGold will continue to drill at Horseshoe, other targets at Haile and advance its portfolio of regional exploration targets. Construction of the Haile Gold Mine continues to progress well despite inclement weather in the fourth quarter that resulted in excessive amounts of rainfall at site. In the fourth quarter, the Executive Vice President and Chief Development Officer and the Vice President, Construction and

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OCEANAGOLD

Reefton Processing Plant

other key OceanaGold personnel relocated to South Carolina to oversee the construction of the project. In December, the Company commenced the concrete works for the Ball and SAG mill foundations and advanced the earthworks for 64

March 2016

the plant site, waste rock pads and tailings storage facility. In the Philippines, drilling continued on the Morning Star prospect at Didipio and scout drilling of geophysical targets at the Paco tenements in


MINING

Company Information INDUSTRY

Mining and Metals HEADQUARTERS

Melbourne, Victoria Australia FOUNDED

1985 ABOUT

northeast Mindanao. In 2016, the Company has allocated an exploration budget of $25 to $30 million, of which $10 to $15 million has been allocated at Haile and $5 million to $10 million at Waihi with the remaining amount to be spent at Macraes and in the Philippines.

OceanaGold Corporation is a significant multinational gold producer with assets located on the South Island of New Zealand, including one of the largest gold mines in the country, and in the northern Philippines. OceanaGold has built a strong business in New Zealand, operating three mines – Macraes Open Pit, Frasers Underground and the Reefton Open Pit mines

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SUPPLIER PROFILE

RedBull has made a name in the New Zealand mining and quarrying industries for combining the best technical capabilities with down-to-earth practical solutions and reliable, safe delivery of blasting services and explosives products. OceanaGold selects strategic partners who are able to assist them to achieve their clear objectives of safety, lowest cost production and superior quality. In 2012 OceanaGold selected RedBull Mining Services Ltd as their partner for the supply of explosives at Macraes, Frasers Underground and Reefton Mines. We were chosen due to our flexibility, responsiveness, superior service and competitive pricing. The relationship has grown and strengthened over time, assisted by our open and co-operative approach combined with our day-to-day ‘can-do’ attitude and highest quality emulsions. RedBull met and exceeded expectations when in 2012 we established, constructed and mobilised a greenfields site at Macraes Mine into full logistics, manufacturing, production and supply in just five months. In New Zealand we supply various gold mines and provide a fully integrated ‘rock-on-ground’ drilling and blasting service to over 120 quarries. We also specialise in the technically challenging close proximity blasting on confined, urban construction sites. RedBull Mining Services Ltd and RedBull Powder Company Ltd operate only within New Zealand. Outside New Zealand we trade through a subsidiary, Star Holdings Ltd. Employees: 50 Established: 1997 Industry: Mining, Quarrying and Construction Services: Explosives and blasting services, including fully integrated ‘rock-on-ground’ drilling and blasting services Management:

Managing Director – Peter Shapiro; Operations Director – Mike Henderson; General Manager – Chris Pilmer; Manager, Mining – Steve Butters Website: www.redbullpowder.co.nz Phone: +64 (9) 525 1181


Real Training SUPPLIER PROFILE

in World’s First Real Training Mine.

COMPANY NAME

Site Skills Training in partnership with OceanaGold has created the first fully immersive underground and open cut mine training environment in South-East Asia. Located at their 300,000sqm Clark, Philippines facility, the immersive environment is available for all companies looking to skill project personnel for a wide range of operator training and safety skills. The facility has been designed to upskill Underground and Open Cut Operators, increasing their competency levels by placing them in real world situations.

The environment has been built for competency assessment and training of Underground Mine Personnel across a range of programs designed for inexperienced persons through to experienced and specialised crews. The training environment replicates conditions which are experienced underground, allowing the training to be more impactful with higher levels of competency retention. Competencies include, services extensions, venting, ground support encompassing bolting, meshing and shotcreting, vehicle operations underground, CABA operations, dewartering, rigging, lifting, and health and safety skills. Experienced workers can gain competence in drilling, blasting, emergency response / rescue and firefighting. All these skills are developed according to company standard operating procedures without affecting mine production while training is occurring.

Employees: Xxxxx

The process plant environment will provide competence based operations and technical maintenance training and assessment. The plant boasts live process systems, a centralised control room, emergency protection systems and an electrical distribution centre, establishing it as a real life scenario training and assessment facility. Site boasts another similar process plant environment based in Myanmar. Site is capable of customising, designing and developing specific training to all client’s requirements, providing tailored workforce solutions that represent the growing need for highly competent employees trained on-site or at one of our many international facilities, without affecting production, and saving time and cost. Recently Granite Services International Inc., an affiliate of GE Power, approached Site for the continuation of training and assessment services at Site’s facility in Clark, Philippines and is designed to develop Granite’s in-region specialist workforce around maintenance of heavy duty rotating equipment in power generation and other industrial applications. The recent signing of a joint agreement between Site, Canadian Petroleum Services Inc., and Abdul Ali AL-AJMI Company will train a national workforce of 500 operators in Saudi Arabia in the first year of the contract, increasing national employment, education and competence, along with organisational efficiency and skills.

This is just one of numerous, fully immersive Established: Xxxx training environments Site has developed to Industry: service the growing needs of mining, Sitexxxxx continues to adapt and develop solutions Xxxxxxxxxxxx xxxx xxxx xxx xxxxx. construction and oil and gas companies tailored to the needs of numerous international Services: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx throughout the world. clients, with xxxxx. customisable training systems, processes and immersive environments. Ongoing Projects: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx Site recently finalised Papua New Guinea’s first siteskillstraining.com safeManagement: live oil and gas processXxxxxxxxxxxx plant environment. xxxx xxxx xxx xxxxx xxxxx

Website: address goes here as the last entry


OCEANAGOLD

SUPPLIER PROFILE

INDODRILL

Indodrill was formed in Indonesia in 1993 and since then has steadily grown and expanded to become one of the foremost drilling contractors in Southeast Asia, providing a wide variety of drilling and drilling support services to customers in the region. A recent expansion to Scotland allows Indodrill to now target Europe, Middle East and Africa regions. Mission Statement: To be recognised and respected for providing the safest, highest quality, innovative and competitive drilling service to every company we collaborate with in every industry and country we work in. Website: www.indodrill.com

SUPPLIER PROFILE

GOUGH CAT

Gough Cat has been the New Zealand dealer for Caterpillar products since 1932. The support provided by Gough’s and Caterpillar when our mining machines go to work is what truly differentiates the full value of Cat equipment. We consider ourselves partners not just in the equipment, but in the entire productivity cycle. So we work alongside you to help find ways to optimize your operation. We’ll evaluate your site to help you select the right equipment. We then deliver expert maintenance and repair services utilising the latest technology to deliver critical machine uptime and maximize the performance of your Cat equipment. We explore every innovation to help you keep people safe, better manage fleets, boost efficiency, and manage the health of your machines, all so you’re better able to meet your production goals. The result is higher productivity — and higher profitability — for your mining operation. Website: www.goughcat.co.nz

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SUPPLIER PROFILE

INTERCHEM AGENCIES LTD

Established: 1987 Products & Services: Interchem Agencies Ltd markets a wide range of raw materials and specialty chemicals to a diverse range of industries. We have long-standing relationships with leading manufacturers throughout the world all supported by our extensive industry knowledge, experience and commitment to customer service. Quality systems: We actively align ourselves with suppliers that have adopted internationally accepted quality systems and operate our own continuous improvement system that ensures we provide a professional quality service to our customers. Website: www.interchem.co.nz

SUPPLIER PROFILE

DELTA EARTHMOVING, INC.

Employees: 1,914 Established: September 25, 2003 Industry: Mining, Quarry and Construction (No More than 25 words) Services: Quarrying, Mining (development & excavation), Construction, Equipment Rental Services and Civil and Special Engineering Works (No More than 25 words) Ongoing Projects: Oceanagold Didipio Gold-Copper Mining, Limestone and Basalt Quarries with La Farge-Holcim, CRH-Aboitiz, Cemex & Eagle Cement (No More than 25 words) Management: Vicente U. Omengan Jr. - President & CEO, Jimmy U. Omengan Director, Edward G. Anyayahan, EVP-COO Website: www.deltaearthmoving.com

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OCEANAGOLD

SUPPLIER PROFILE

SGS MINERALS SERVICES

SGS has a proven service track record since its establishment in 1878. SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 85,000 employees, SGS operates a network of over 1,800 offices and laboratories around the world. SGS MINERALS SERVICES provides support to its clients both as a strategic partner and a technical advisor, delivering a broad spectrum of independent, quality services. ONGOING PROJECTS IN THE PHILIPPINES AND NEW ZEALAND SGS supplies laboratory and technical services to OGL at the Macraes Flat and Waihi sites in New Zealand and the Didipio site in the Philippines. Website: www.sgs.com

SUPPLIER PROFILE

WASHINGTONS

With 51 years experience in the drilling industry Washingtons have developed a huge client base. We offer a transparent working relationship with our clients from start to finish. Washingtons offer an extensive range of drillings services and equipment specialising in remote access/track mounted or 8x8 machinery. Washingtons has a great asset in the experience of its personnel who, between them, have overseen a great variety of drilling and coring operations in localities as diverse as Antarctica, Asia, PNG, Oceania, the Subcontinent, the Middle East and West Africa. Through this team, and their training of personnel, and comprehensive OHSE safe operating procedures, all our operations have been conducted in a safe and successful manner. Washingtons has permanent bases in various parts of NZ and PNG. With a extensive inventory of Rigs, mud pumps, compressors, air boosters and tooling up to 42� diameter. Website: www.washingtons.co.nz

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SUPPLIER PROFILE

ORICA

Orica provides market-leading customer solutions to improve productivity and resource efficiency in the mining, quarrying, oil and gas and infrastructure sectors. An Australian company with a global footprint, Orica has a diverse workforce of over 12,500 people, with operations in more than 50 countries and customers in more than 100. Orica delivers value by developing and commercialising differentiated services and products that maximise our customers’ capacity to: › Transform mineral resources into recoverable reserves › Increase mine productivity and mill throughput › Increase mineral recovery

Orica’s value of No Accidents Today underpins our commitment to the safety, health and wellbeing of our people and customers, the environment, and the communities in which we operate. Website: www.orica.com

SUPPLIER PROFILE

WEST-TRAK

West-Trak specialises in reducing downtime and improving performance of heavy machinery that simply has to work. As New Zealand’s leading wear parts provider, we import and manufacture high quality, replacement wear parts for all makes and models of excavators, loaders, bulldozers, scrapers, graders, dump trucks and crushers. A complete wear solution provider to the Mining, Quarrying, Forestry and Civil Construction industries, there’s more to us than meets the eye. We dig deep, question wide and solve the wear challenges that mess with our customers’ machinery and bottom line. Headquartered in Westport, New Zealand with several branch offices and a global wear part network giving us access to the largest range of wear parts on the planet, means we have your back and back-up plan. When you partner with us, productivity is never an accident. We make sure it’s a given. Website: www.west-trak.co.nz

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OCEANAGOLD

SUPPLIER PROFILE

ATLAS COPCO PHILIPPINES

With over 50 years of presence in Philippines, Atlas Copco offers comprehensive nationwide sales, parts and service facilities and support. Product Information: Air compressors, vacuum pumps, nitogen generators, blowers, construction equipment, light towers, generators, portable air compressors, rock drilling tools, underground trucks and loaders, surface and exploration drill rigs, specialty rental-air compressors, dryers and boosters. Website: www.atlascopco.com.ph

SUPPLIER PROFILE Employees: 45

WAIKOUAITI AUTO & ENGINEERING

Established: 1988

Industry: Engineering – Industrial, Mining, Manufacturing, Transport and Construction Services: Maintenance and Diagnostics, Structural Engineering, Piping, Medium and Heavy Engineering, Fabrication and Certified Welding, Sandblasting and Painting, Scaffolding, Crane and Hiab Hire Ongoing Projects: Dunedin City Council Water Treatment Plants - Maintenance Contract, Projects and Upgrades. Oceana Gold – Maintenance, Projects and Upgrades. Ravensdown Fertiliser - Maintenance, Projects and Upgrades. Management: Managing Director - Kevin Byrne Website: www. www.wae.co.nz

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VicRoads ta at


IMPROVING THE STATE OF TRANSPORTATION

IN VICTORIA

ackles the issue of population growth with a fresh look the state’s roadways and public transportation needs

Photo by Misheye

Written by: Sasha Orman | Produced by: Andy Turner

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VICROADS

The West Gate Bridge with traffic management active on the overhead gantries

W

hen Nick Fisher joined the VicRoads team at the start of 2004, the agency was known for a handful of vital but standard functions. Beyond the licenses and registrations it issues, most customers knew VicRoads primarily as a road builder. “That was its business,” he explains. “Pretty much every solution 76

March 2016

VicRoads offered as a core group of engineers was to build its way out of congestion or traffic problems.” More than a decade into the future, Fisher has risen through the ranks to his current role of Director of Road Operations, and Victoria’s roads agency has evolved as well in both vision and scope. With its latest efforts, VicRoads aims to


CONSTRUCTION

ensure that customer journeys are safe, reliableand enjoyable throughout Melbourne and beyond. FORECASTING THE FUTURE TO IMPROVE THE PRESENT Each year the Victoria State Government’s Department of Environment, Land, Water and

Planning releases Victoria in Future (VIF), a document that projects population and household growth trends in Victoria up to 40 years into the future. The purpose of this forecast is to anticipate the various needs of that future population and start the planning process far in advance. Current projections see Victoria w w w. v i c r o a d s . v i c . g o v. a u

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AS4801


SUPPLIER PROFILE

Established: 1960 Industry: Towing & Transport Strategy: Nationwide has chosen a very deliberate path to build a quality-assured business platform based around ICT, WH&S and comprehensive training in support of our fleet and people that sets the benchmark for the industry. Services: Nationwide is the industry leader and completes over 300,000 tows per annum for all types of vehicles, a wide range of plant & equipment and other unique items. Other specialty services include clearway and emergency related towing and salvage. Nationwide services a broad range of customers such as state-based automotive clubs, police, road authorities, local councils and large Australian and multi-national corporations. Projects: During the past five years Nationwide has invested more than $30m in ICT, WH&S, quality, training, fleet and people. The ICT investment includes the collection of a wide array of data including video streaming from in-truck cameras, GPS tracking, speedometer reading, duress management and job status. Key to success: Nationwide attributes its success to its heavy focus on ICT, Quality and WH&S in support of its people, industry knowledge, fleet and supplier relationships. Nationwide has a partnership with a premium supplier, Prestige Hino, which extends over 10 years. This supplier relationship has developed due to the reliability and durability of over 150 Hino vehicles which is critical to enable Nationwide to deliver customer expectations. Management: Tony Re – Managing Director; Rob Nicholls – Chief Executive Officer; Lennie Jerliu – National Sales Manager Website: www.134tow.com.au


CONSTRUCTION

growing to 10 million people within the next 40 years, with Melbourne in particular expanding from today’s population of 4.3 million to as much as 7.8 million by the year 2051. Melbourne is consistently ranked as one of the Top 10 livable cities in the world, and agencies like VicRoads are charged with the task of maintaining that mobility, productivity and livability for a growing population. “One of the big challenges for VicRoads is preserving our livability with a population that’s almost

going to double in a 40 year period, but with a transport network that won’t double in a traditional form,” says Fisher. “My team at Road Operations is tasked with dealing with that particular challenge around journeys, where we must preserve both well being and productivity.” MEETING NEEDS THROUGH C O M M U N I C AT I O N To achieve this task, VicRoads is taking a fresh look at the way it

The old Mitcham Road level crossing approaching Whitehorse Road in Mitcham


The beneďŹ t of an extra freeway lane at a fraction of the cost *

* Travel time using the STREAMS ITS platform on a 15-km section of the M1 Monash Freeway was reduced by more than 42% during peak periods which equates to travel time s lane (based on a four-lane cross-section) at a fraction of the cost and with minimal impact to road users.


savings achievable by adding almost an extra freeway

TRANSMAX Transmax is a full-service Intelligent Transport Systems (ITS) solutions provider that develops, deploys and supports the international award-winning ITS platform STREAMS. Transmax offers customers systems engineering, software design and development, along with a range of consulting and support services throughout the entire ITS lifecycle. We place our customers at the centre of everything we do. We are committed to the highest standards of quality, and work collaboratively with our customers to ensure our products are purpose-fit for their specific needs. Our products and services are innovative and unique – designed by experts and delivered with customer service excellence. With over 40 years’ experience developing, implementing and managing ITS, we help our customers realise the community benefits of optimising transport networks by providing smarter, more sustainable ITS solutions.

For more information, contact Transmax: +61 7 3355 8700 info@transmax.com.au transmax.com.au


SUPPLIER PROFILE

The Australian Bureau of Infrastructure, Transport and Regional Economics forecasts that, without improvements in the management of congestion, rising traffic volumes in Australian cities are likely to result in the doubling of the net social costs of congestion from $16.5 billion in 2015 to more than $30 billion in 2030. To alleviate this congestion, road authorities are increasingly turning to the Intelligent Transport Systems (ITS) rather than the traditional approach of simply widening roads. Not only can ITS be implemented at a fraction of the cost of building more infrastructure, their deployment is much less disruptive to the transport network. VicRoads engaged Transmax to undertake a trial of STREAMS (Transmax’s international-award winning ITS platform) coordinated ramp metering on a 15-kilometre section of the M1 Monash Freeway, Melbourne’s most congested freeway. Before and after studies demonstrated the following benefits: • Peak hour flow increases exceeding 10% and average peak hour speed increase of 20kph • Travel time reduction of more than 42% during peak periods which equates to travel time savings achievable by adding almost an extra freeway lane (based on a four-lane cross-section) but at a fraction of the cost •

Accidents were reduced by 30%

Daily fuel savings estimated at 16,500 litres of petrol

• Greenhouse gas emission reductions of 11% (approximately 39,800kg per day) • Economic benefits estimated at more than $1 million per day and the payback period relative to the project cost was just 11 days. ‘In Victoria, STREAMS now also manages the M80, and 75km of the M1 which includes 64 ramps and 40 lane use signal gantries,’ says Transmax Managing Director, Mark Williamson. ‘As well as the quantifiable benefits, STREAMS Managed Motorways realises social benefits including: community satisfaction through noticeable improvement; reduced stress; financial savings; increased comfort; and improved availability and quality of information on road networks.’ STREAMS Managed Motorways has the ability to maximise the capacity of existing road infrastructure and reduce travel times while improving day-to-day reliability and safety outcomes. Through the implementation of STREAMS Managed Motorways, road traffic authorities are able to benefit from the capabilities of a fully integrated ITS platform that can deliver substantial improvements in traffic management and safety. Website: www.transmax.com.au


VICROADS

CONSTRUCTION

approaches problem solving. This includes working directly with the communities it serves to find out exactly how to meet its needs. “VicRoads recently released its new four-year strategic commitment, which includes our vision and how we intend to deliver on that vision,” says Fisher. “Unlike in the past, where we’d typically come up with an engineering solution that we would then tell the public and the customer about, we’ve substantially changed our approach. We now engage with our customers, understand what

it is about their local area that they enjoy most, and then build a solution around the needs of the community.” This approach, which includes annual satisfaction surveys, has yielded communication around which VicRoads can build concrete action plans and goals. “What our customers are telling us is that they would like the ability to plan their journeys in an easier way before they make them, and to ensure that those journeys are more predictable. If something does happen, they want to be told what

“VicRoads recently released its new four-year strategic commitment, which includes our vision and how we intend to deliver on that vision.” – Nick Fisher, Director of Road Operations w w w. v i c r o a d s . v i c . g o v. a u

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ATSC4 with Internal Uninterruptable Power Supply (UPS) for Traffic Signals

Delivering successful projects from Hobart to Dublin and many cities in between, we are totally committed to designing and integrating advanced electronic road network management products and providing adaptive engineering services to the traffic control and global ITS management industry. Having designed & developed the latest SCATS® compliant Traffic Signal Controller (ATSC4) that is Type Approved by the Roads and Maritime Services Authority (RMS) of New South Wales Australia and VicRoads, these ATCS4’s are now controlling more than 2,500 intersections globally with more than 600 in Victoria. Leading the market, ATC has deployed the first controller in the world with the RMS VC6TRAFF software. Our ATSC4 SCATS® Controller is significantly more capable & flexible than any other on the market.

ATSC4 SCATS® Traffic Signal Controller

ATC delivers, implements & maintains the RMS SCATS® software for international customers and provide support services from its network of SCATS® practitioners and traffic engineering staff.

Aldridge Traffic Controllers Pty Ltd Building N, 10-16 South Street, Rydalmere NSW 2116 ABN 44 098 257 035

Telephone: +61 2 8846-5599 Facsimile: +61 2 8846-5590

Web: www.atsc4.com.au


VICROADS

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we’re doing about it and find out easily what their alternatives are. They want to know that their journeys will be safe— and post-journey customers are telling us they would love to be able to give feedback on how their journey went.” SHORT TERM AND LONG TE R M GOA LS To address these customer needs as well as business needs, VicRoads has first identified several short term priorities including delivering more predictable journeys and moving freight more efficiently. As a key part of realising the goals in these priorities, VicRoads is

SUPPLIER PROFILE Employees: 40+

Overnight works to lift beams into place for the bridge over Cheltenham Road in Keysborough as part of the Dandenong Bypass

ATC - MOVING TRAFFIC

Established: 2001

Industry: Transportation, Supplying the global Intelligent Transport Systems market Worldwide distributors and integrators of; SCATS® software and SCATS® Traffic Signal Controllers and associated hardware and software. Services: SCATS® Installation & maintenance, adaptive traffic engineering services, training & consulting, Electronic Engineering, Design & Manufacturing of advanced traffic control devices. Ongoing Projects: In more than 12 Countries throughout Asia, Middle East, Europe and America. Management: Andrew Bull - Managing Director Website: www.atsc4.com

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BRAUMS proudly delivers the world’s very best ITS solutions to the Australian & New Zealand markets. With ATC and SWARCO-FUTURIT as our key technology and product supply partners we offer best of breed solutions to our market. BRAUMS is the leading Australian supplier of the latest in LED Traffic Signals HPSM Technology. Proudly the first Company to gain the approvals of this technology across Australia and New Zealand (including RMS NSW and VIC ROADS). Having provided the first significant roll out of this technology in the region in 2012 we now have more than 50,000 HPSM LED Traffic Signal aspects deployed and growing fast. Our depth of engineering experience has also led to a more robustly designed and manufactured Pedestrian Detector and Audio Tactile unit. This robust design has become the preferred product as they are proven to be reliable, not only for general use but also in areas that experience high rates of vandalism. BRAUMS have partnered with SWARCO-FUTURIT and introduced a new leading edge full matrix RGB VMS technology to our region. This technology provides rich fully saturated colours at high intensity with very low current usage. This VMS provides road users with strong sharp text display as well as pictogram displays without needing a dedicated graphical section, text and graphics can be located wherever needed. (available with NTCIP and RMS protocol) We understand our ITS market not only requires the best technology but also exceptional service and support. Our experienced team of qualified Engineers and Partners have decades of industry experience ensuring our customers receive the best possible products, solutions and service.

Braums Pty Ltd Building N, 10-16 South Street, Rydalmere NSW 2116 ABN 31 150 551 732

Telephone: +61 2 9684-3300 Facsimile: +61 2 9684-3390

Web: www.braums.com.au


VICROADS

looking at transportation altogether in a different way. “We’re in the business of moving people and goods. We recognise a diverse choice of transportation modes for our customers—cars, trains, buses, trams, and active transport modes including walking and cycling,” says Fisher, noting that use of public transportation in Melbourne is growing rapidly at a double-digit rate, each 5-year census period. “If we’re going to be successful in moving people in such a rapidly growing city, as

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a roads organisation we have to really embrace public transport as a solution to the future for moving people, as opposed to just more cars.” VicRoads is taking several steps toward improving journeys for both driving and public transport options. Some of these steps include installing Bluetooth readers at traffic signal sites to accurately measure and predict travel patterns and travel times, capital investment into Victoria’s successful managed motorways, and the development

SUPPLIER PROFILE

BRAUMS PTY LTD

Employees: 35+ Industry: Transportation, Supplying the Intelligent Transport Systems market Australia’s LEADING HPSM Traffic Signals Company. Having partnered with the world’s leading signal and VMS manufacturers SWARCO-FUTURIT, together with ATC, BRAUMS delivers innovative and advanced technology to benefit Road authorities and users. Services: Electronic Engineering, Design, Manufacturing and Integration of advanced ITS devices. Management: Andrew Bull - Managing Director Website: www.braums.com.au

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Photo by Misheye

The Tullamarine Freeway and M80 Ring Road hosted a visual tribute to commemorate the centenary of ANZAC

and impending relaunch of the VicTraffic app. “Some years ago VicRoads released its first version of VicTraffic to provide customers and travelers with some data around congestion levels on the network,” says Fisher. “By next year, we’re looking to relaunch that app with substantial improvements. For example, Victoria Police can close roads during incidents. When there are 90

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such unforeseen circumstances, how do we get this information to customers and then provide available alternatives? That’s a gap we want to be able to fill using the VicTraffic app and other communication channels.” L O O K I N G A H E A D AT W H AT ’ S N E X T VicRoads has significant plans for the year ahead, especially at the


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Intelligent Transport Systems (ITS) World Congress taking place in Melbourne in October 2016, where the agency will display some of its biggest initiatives and engage the industry for collaboration. “One thing that’s very important to us is that we need to partner with the industry to make this successful,” says Fisher. “The Congress is one place where we’ll be showcasing some of the initiatives that we want to deliver on, but also we want the industry to

“We’re in the business of moving people and goods. We recognise a diverse choice of transportation modes for our customers —cars, trains, buses, trams, and active transport modes including walking and cycling.” – Nick Fisher, Director of Road Operations w w w. v i c r o a d s . v i c . g o v. a u

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VicRoads recently installed 70 concrete bridge beams over the Princes Freeway to form the new Sneydes Roda interchange in Werribee

better engage with VicRoads to help Victorians.” VicRoads is also turning a strong focus to freeway improvement to support the region’s large population of motorists, and has 92

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partnered with Public Transport Victoria to support the growing population of mass transit users. “We’ve partnered with PTV to understand how we can prioritise public transport movements,


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Company Information NAME

VicRoads INDUSTRY

Transportation / Construction HEADQUARTERS

Kew, Victoria - Australia ABOUT

VicRoads purpose is to deliver social, economic and environmental benefits to communities throughout Victoria by managing the Victorian arterial road network and its use as an integral part of the overall transport system

particularly public transport modes that are on-road,” says Fisher. “At the moment we have a tram system that’s the biggest in the world. There are a lot of opportunities, and we will be working with PTV to see how we can make that far more successful. That is the future for us.” w w w. v i c r o a d s . v i c . g o v. a u

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A business

BUILT TO LAST Woollam Constructions Managing Director Craig Percival discusses the company’s history, values, and approach toward growth for the long haul Written by: Sasha Orman Produced by: Vince Kielty


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015 was a strong year for Woollam Constructions, a year marked by growth in territories and in leadership. But such success does not happen overnight—it is hardwon, built steadily on a foundation of innovative quality work and long-lasting relationships with contractors and clients alike. Through this approach, Woollam has developed its reputation as a leader in commercial construction. Changing leadership for changing times Woollam Constructions values longevity in its relationships, both outside of and within the company. Craig Percival knows this well— he joined Woollam 26 years ago, starting in onsite labor before working up the ranks to build a career in management. In March 2015 Percival was appointed to the role of Managing Director, when MD of 15 years George Bogiatzis moved into the role of Company Director and Chairman. “I’m very fortunate with my career path in early stages at Woollam— and I’m proud to say there weren’t 96

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Director George Bogiatz Grafton resid

any free rides with founder Keith Woollam. He really did expect you to start from the bottom and understand every part of the building process,” explains Percival, noting that those expectations and years of work have prepared him for the role. “My apprenticeship in terms of taking on this role has been long,


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zis and NSW Manager Ben Cummins discuss construction of a new dential aged care facility with client The Whiddon Group

and it’s not something I feel like I’ve walked into as a whole new world,” he adds. “Whilst George was in the Managing Director role, we worked together and shared a lot of the duties. Through working closely with George, we’ve been able to build the right culture of leadership, personal development, and mentoring to take on the role.”

Investing in business by investing in people Percival’s story is not an anomaly: as a rule, Woollam Constructions is committed to investing in its people and promoting growth on a personal level as well as a business-wide level. Over the years the company has developed new ways to encourage that growth,

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Committed to superior quality and results.

Cemento Concrete Services has the experience and resources to provide residential, commercial, industrial and civil concreting services throughout South East Queensland. We pride ourselves on achieving the best results for our clients – from commercial buildings, to suspended slabs, house slabs, warehouse and industrial concrete flooring, that is durable and fit for purpose. Cemento has earned a reputation for being reliable and committed to achieving high quality concreting to design and specification. We provide honest, expert, personal advice that offers solutions to difficult problems, cost effective outcomes, strength, durability and striking results.

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www.cementoconcrete.com.au


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most recently with the launch of a new leadership program in partnership with the University of Queensland. “When you look back at legacies you’ve created within the business, something I’m proud of and want to be a part of Woollam well into the future is training—not just to make them better at the building process, but more personal development and giving them confidence as people to be put into different environments,” says Percival. While he acknowledges that this confidence can sometimes introduce risk that employees may move on, at Woollam the priority is concentrating on making its people the best they can possibly be—while making Woollam the best working environment it can be to inspire those confident people to stay on.

SUPPLIER PROFILE

Managing Director Craig Percival with Director George Bogiatzis

CEMENTO CONCRETE SERVICES

Founded by Peter Zocaro, Cemento Concrete Services opened its doors for business in 2010. Based in Brisbane, our teams undertake a variety of concreting projects for domestic clients, residential builders, architects, and landscape designers, commercial and civil contractors. An experienced commercial and residential concreter, Peter leads Cemento with the proven capabilities to manage up to 40+ men across multiple sites. To secure a high level of quality in concreting and ensure design and strength specifications are always met, skilled and experienced trades people are hired for every project, with workmanship guided by Australian Standards and Best Trade Practice. Cemento strives to establish long-term relationships based on respect and trust, with our clients and suppliers. Peter brings his valuable, expert advice to each job and is focused on ensuring that every client receives the same level of commitment and high quality workmanship from himself and the Cemento team. Website: www.cementoconcrete.com.au

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WOOLLAM CONSTRUCTIONS Empowering the nex t generation In recognizing the importance of training and leadership, Woollam Constructions also understands the importance of inspiring and encouraging the next generation of builders. To this end, the company developed the Woollam’s Young Builders Alliance (WYBA) program. Through WYBA, apprentices and university students in cadetships gain real world experience working on building projects across sectors

ranging from aged care and health to commercial and industrial. In addition to hands-on experience, Percival explains that the program also acts as a welcome support network to start building connections between young people with futures at Woollam. In this way, the program is working now to preserve Woollam’s positive company culture well into the future. “Obviously in our industry, and at our company, there are different career paths—you’ll

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Woollam Constructions Hummingbird House site team helping to create the ‘Hummingbird House Family Tree’ auction artwork which sold for $8,500. Proceeds go directly to Queensland’s only children’s hospice Hummingbird House

have one starting in a carpentry apprenticeship, and at the same time a student going to university and doing a building cadetship,” he says. “Both of them can have big futures, and each is as important as the other. The WYBA program is a good opportunity for these people to get together and form their own generation of Woollam people, understanding that as a company it’s not just the guys doing the

university course that are going to solely be our future, and it’s not just the tradespeople. It’s a combination of both and a way of starting that connection very early on.” A measured approach to the future and grow th Perspective is an important part of any successful business. For Woollam Constructions, decades of perspective allow the company

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to make smart decisions for its future, whether it’s building relationships with suppliers or building a presence in a new location for strategic growth. This way of thinking inspired Woollam’s 2015 expansion into Townsville, a complement to the company’s nearby Mackay and Rockhampton offices and a logical next step in its long-term growth. “Regionally that’s where we have done most of our work over the years, and it’s been our breeding ground for senior management and site management positions— we still employ apprentices, and those apprentices become our leaders,” says Percival. It was true for him, and for employees like Mark Swanson who started his apprenticeship 44 years ago and has stayed with Woollam his entire career. As regions change, this growth into new areas provides these same long-term career opportunities for the next generation of Woollam employees. The Woollam dif fer ence “Woollam Constructions has been 102

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“In a lot of ways we’re a tr ourselves on being innova in the sect – Manag

The recently completed $34.5 Redevelopment U

around for 132 years,” says Percival. “In a lot of ways we’re a traditional older company, but we pride ourselves on being innovative and wanting to be market leaders in the sectors that we focus on.” That innovation has not gone unnoticed—in 2015 the company was awarded its fourth Commercial Builder of the Year award from the


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raditional older company, but we pride ative and wanting to be market leaders tors that we focus on.”

Company Information INDUSTRY

Early Contractor Involvement Construction

ing Director Craig Percival

HEADQUARTERS

Brisbane, Queensland Australia FOUNDED

1884 EMPLOYEES

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5 million Karratha Airport Terminal Building Upgrade in Western Australia

Master Builders Association, while employee Ben Cummins was named 2015 QUT Young Constructor of the Year. Woollam also gained recognition as exclusive business partner to Leading Age Services Australia Queensland (LASAQ), making it contractor of choice for Queensland’s aged care industry. With the success of the year past, Woollam can look forward to a century and more of continued growth ahead.

REVENUE

$120 million EXECUTIVES

Managing Director: Craig Percival Director and Chairman: George Bogiatzis

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ENGINEERING AN EXPANSION

Integrated Maintenance Group strategic capabilit Matthew Holland discusses growth and diversific Written by: Sasha Orman | Produced by: Vince Kielty


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ince 2003, Integrated Maintenance Group (IMG) has been building a name for itself as a premier New Zealand provider of innovative construction, fabrication and heavy industrial solutions. By building long-term relationships with a high profile clientele, IMG has had the drive and opportunity to develop skills and standards go above and beyond. “Because we’ve worked with some of the largest corporations in the New Zealand market, we have had to develop processes and systems in health and safety and quality that really puts us ahead of the market and ahead of

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our competition,” says Matthew Holland, Strategic Capability Manager for IMG. “We have good capabilities to offer the market. We bring professionalism and sophistication into some industries that need a shot in the arm for some of these processes.” To date, IMG has developed a reputation within the mineral processing and the pulp and paper industries. But as the company continues to grow, diversification becomes increasingly important. To this end, IMG is exploring the option of contributing its skill sets to new sectors including power generation, oil and gas, food and beverage, water and wastewater treatment, and more. A higher standard of quality and safety “Whether we’re working for the steel industry or in the pulp and paper industry, our clients have very exacting requirements regarding quality and health and safety,” says Holland. IMG meets those requirements by maintaining exacting standards of its own,


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NZ Steel - Project Atom

including ISO-9001 certification to ensure quality and tertiary status with the Accident Compensation Corporation (ACC). As Holland explains, this focus on promoting and improving health and safety is an integral part of company culture at IMG. “The people in our business become culturally very aware of how safety needs to be

acted upon, and that becomes part of the way we operate in everyday life and everything we do,” he says. Moreover, IMG staff have found that health and safety is inexorably linked to a higher quality level of service. “You think about the process of the engineering project in a lot more detail, you become more familiar w w w. i m g . c o . n z

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with it, and so you deliver the project not only in a safer way, but also in a more tidy and more high quality way,” he adds. “So the more we think about safety, the better our delivery performance becomes as well.” Growing into new markets “We started out with 30 people when we started the business, and now we’re at about 150,” says Holland. “We started out with one office workshop, and now we have five throughout the North Island of New Zealand.” This significant

amount of expansion over the last two decades has brought IMG’s progress into different market sectors and different industries, through both organic growth and acquisition. “Bruce Bonner, our owner, is quite entrepreneurial,” says Holland. “His strategy has been to look for opportunities in the market to grow, and to find synergistic businesses that will blend in well with our core background capabilities. We’ve been able to acquire businesses, put good management behind them and bring them back online as efficient, profitable businesses.”

“We started out with 30 people when we started the business, and now we’re at about 150.” – Matthew Holland, Strategic Capability Manager for IMG w w w. i m g . c o . n z

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This process has allowed IMG to onboard several new civil and mechanical capabilities, including concrete formwork, scaffolding and rigging. These increased capabilities help IMG offer its clients more complete integrated solutions to meet their needs. A focus on training IMG’s continued growth has led to a focus on education and training to support the increasingly diverse range of skills that the company has to offer.

“We have a number of apprenticeship schemes to train new people coming on board,” says Holland. “We are bringing on quite a few new people, and we will put these young engineers through an apprenticeship so that they become qualified tradesmen, whether as welders or as fitters or as trade assistants.” IMG’s training prepares both new and existing staff for roles across a diverse range of capabilities and skill sets, providing a valuable education in an underserved field.

Geothermal Power Station Construction Team

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“Training is critical for us to provide a talent pool for our customers in an environment which is sadly lacking in good engineering talent throughout New Zealand,” says Holland. “It’s a worldwide issue that there is a lack of engineers—so we’ve got to take the initiative, be proactive and do it ourselves.” Next steps According to Holland, IMG wants to become the leader in heavy 112

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Wiri Workshop Vessel Fabrication

industrial maintenance in New Zealand and the Pacific. “We want to become a project delivery organization with sophisticated project controls, quality systems, health and safety systems and—most importantly— sophisticated employees that are experienced in that type of industry,” he says. “That means that we need to start to move offshore into Australia, Papua New Guinea, and other areas outside of New


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Company Information NAME

Integrated Maintenance Group NZ INDUSTRY

Engineering solutions HEADQUARTERS

Takanini, North Island New Zealand E S TA B L I S H E D

2003 EMPLOYEES

Zealand to sustain that growth.” Ready to take it growth to the next level, IMG is examining the aspects of business it needs to enhance in order to extend its reach to new sectors and new regions. “We do have ambitious plans to become a better company in many regards,” Holland explains. “We’ve got to get a greater level of experience in the business, so recruitment and talent acquisition is incredibly important to fulfill that strategic growth.” With this focus and ambition, IMG is on its way to a wider reach and further success in the years to come.

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IPS AUSTRALIA:

A RELIABLE SIDEKICK

OEM service provider IPS Australia uses dependability nd top-notch customer service to thrive in the industry

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lthough rotating equipment is among the central processes of the oil and gas industry, its importance can never be underestimated. But IPS Australia is using its small stature in a specialised industry to its advantage. An independent service provider representing a number of global original equipment manufacturers (OEM), IPS Australia provides sales and service to a wide range of customers, specifically for highspeed rotating equipment such as turbo compressors, steam turbines, reciprocating compressors pumps and more. “Rotating equipment is the heartbeat of any process,” said IPS Australia managing director Geoff Yeoman. “Wherever there’s a manufacturing process, typically at some stage of the process, rotating equipment is used. We provide crucial support for that equipment. “If an LNG plant or refinery’s gas compressors aren’t operating, they lose production. As you can imagine, there’s a huge cost to customer in those circumstances. 116

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So there is a very big focus on reliability and availability of those machines.” A SPECIALISED O P E R AT I O N Originally part of Germany’s MAN Group until 2008, IPS Australia provides on-site service throughout Australia, New Zealand and the Pacific Islands. The company also


ENERGY

Dynamic balancing

administers market support in sales of new OEM equipment and spare parts, as well as workshop and service centre repairs. With goals of growing and sustaining excellence, IPS Australia’s core focus on service and maintenance, as well as its agility within the market to respond quickly, has helped make growth come to fruition.

This has led to a new, larger facility in NSW to be closer to its customers north of Sydney. The company is continuing to improve its capabilities and offerings to customers, while expanding its reach. In addition, IPS Australia has a regional approach and is close to the customer to reduce response times and increase efficiency. w w w. i p s a u s . c o m . a u

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ENERGY

FRIENDS IN H IG H PL ACES IPS Australia’s customer base ranges from high end LNG companies to steel manufacturing, power generation, petrochemical wastewater, food and beverage, and other enterprises. With prominent partners such as Atlas Copco Gas& Process Division, GE Oil and Gas, Mitsubishi, Burckhardt Compression, Ferrum AG among others, IPS Australia is a credible player in the market. Yeoman compares these highprofile relationships to a marriage. “You have to nurture these relationships and can never take them for granted,” he said. “We work very hard to make certain we maintain the required standards and represent their product and brand in the best way possible. “When you’ve got partners like these that put faith in you to represent their brands, it gives you a lot of credibility in the market. We view our OEM partners as equally important as our customers. One of my main tasks is to keep those relationships on track.”

Workshop

With a constantly changing market in the steel industry and refining business which were once one of IPS Australia’s top customer bases, the sector has fallen on hard times in recent years. But while these industries have diminished, there has been large investment in LNG. “Geographically, the customer base has changed,” said Yeoman. “There’s a big focus in Queensland with the LNG facilities on Curtis Island, in Darwin and Western Australia.” w w w. i p s a u s . c o m . a u

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IPS Business Managers

P L A N A C C O R D I N G LY Planning is a large part of the process for major LNG or other energy projects. The process typically begins at least 12 months in advance with an audit inspection, the procurement of the critical spare parts, and planning the scope of work. 120

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IPS Australia works very closely with its customers on the planning aspects of their major shutdowns. “The success to any of these major shutdowns is certainly in the planning,” said Yeoman. “It comes with a cost, but when you compare the cost to days of lost production, it is insignificant.”


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WELL OILED MACH INE Several factors separate IPS Australia from the competition. With so many original equipment manufacturers in Australia, IPS Australia’s smaller size actually works in its advantage compared to larger corporations. “Their systems of operations are very much in that large corporate vein,” said Yeoman. “They’re very rigid in the way they do business.” With the recent downturn in the oil and gas, as well as mining

industries, there has been a big focus on cost from IPS Australia’s customers. But even though being more cost efficient is one benefit to customers, they are generally more concerned with reliability. “I think we have a much stronger focus on customer service, and we’re certainly a lot more agile,” said Yeoman. “We’re able to respond and react much quicker, and we have a very close relationship with our customers and regional business support, so customers w w w. i p s a u s . c o m . a u

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know who they’re dealing with and have that relationship. “Some companies have moved to requiring ‘critical maintenance’ only, where they run the equipment with minimal maintenance or it until it breaks; which, in my experience, it inevitably does. That’s when they really need a support company like IPS to respond in the shortest possible time to get them up and running.” The industry is cyclical. Currently, 122

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it’s the oil refineries that are having the most success. IPS has recently completed a couple very large shutdowns for Australian refineries, and will do work on two more later this year. TEC H N O LOGY FO R PEOPLE One of the biggest investments IPS Australia makes is in the right kind of people. However, there are some


ENERGY

technologies that assist with having the ideal personnel, such as laser alignment technology balancing equipment, on-site diagnostics, machine diagnostics, laser scanning for reengineering and quick reverse engineering, various software packages for design and drafting. “The market is very broad, but the rotating equipment in itself is a very specialised field, and obviously requires special skills — particularly for our field service and workshop personnel,” said Yeoman.

“The level of detail that is required to ensure the service and maintenance commissioning on these machines is significant.” A BRIGHT FUTURE Aside from moving into its new larger facility with more crane capacity, the next step for IPS Australia is to invest in high-speed balancing. Although it’s not yet available in Australia, there is a lot of interest in having it despite it requiring a significant investment.

“The level of detail that is required to ensure the service and maintenance commissioning on these machines is significant.” – IPS Australia managing director Geoff Yeoman w w w. i p s a u s . c o m . a u

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IPS AUSTRALIA

Field service

“The thing that makes it achievable for us is our OEM partnerships. They will support it, they will utilise it and there is a lot of interest in the market for it. “It creates a lot of added value to the customer,” said Yeoman. “Often what customers do these days is instead of having a standby machine, they hold critical spare parts, and the rotating elements are always amongst that. “If they need to do refurbishment 124

March 2016

of a rotor, they need to send that to Europe or the U.S., but that increases the risk profile for their business significantly. If something happens during the entry period, they are going to be out of production for a long time. “But if that work can be done in Australia, it certainly reduces that risk profile to the customer, and therefore has significant added value to them as a business. That’s the next logical step forward for us.”


ENERGY

Company Information INDUSTRY

Energy / Manufacturing HEADQUARTERS

Dee Why, NSW - Australia E S TA B L I S H E D

1975 ABOUT

The company is constantly looking to grow both organically and inorganically, and has excellent backing from our shareholders. If an opportunity makes sense as a business that requires investment, Yeoman believes its partners will certainly support it. “There’s a lot happening in terms of relocation and expansion,” said Yeoman. “For us, it’s a very positive message in a negative news world at the moment. We are growing, we are investing. We are increasing and improving our capabilities and therefore offering to our customers. It’s an exciting time for us.”

IPS Australia was established 1975 and is the largest independent service provider for rotating equipment in the region. The company provides the highest quality professional sales and service for all rotating equipment needs in Australia, New Zealand, PNG and the Pacific Islands

w w w. i p s a u s . c o m . a u

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Business Review Australia March 2016  
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