Q&M July – August 1808

NEW ZEALAND QUARRYING & MINING Volume 15 - No 4 | August - September 2018 | $8.95

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U P F R O N T

NEW ZEALAND QUARRYING & MINING

8

Volume 15 - No 4 | August - September 2018

INSIDE UPFRONT

6 8

Editorial.

Upfront.

ON THE COVER

14

16

Digging for gold near Greymouth.

FEATURES

QuarryNZ Conference 2018

16 Conference coverage.

Quarrying

24 Kiwi quarry gardens lead the way.

Minerals

26 Mining Black Pearl for animal feed supplements.

Mining

32 Pike River re-entry update.

34 Greenland targets its mineral wealth.

35 Old mine shaft create pest problem.

35 OceanaGold enjoys bullish half year.

36 South Island reliance on coal.

22

Aggregate & Quarry Association of NZ

40

Aggregate News.

AT THE BACK 46 Politics.

46 Advertisers’ Index.

26

Di gg in g fo r YING & MINING NEW ZEALAND QUARR Volume 15 - No 4

| August - Septemb

er 2018 | $8.95

GOLD

ON THE COVER: Inland from Greymouth, Brent Whyte and his team at CMR Mining quarry gold with a pair of new Hyundai diggers.

See story page 14

ATING

Aggregate New INCORPOR

s

Q&M August– September 2018 5

E D I T O R I A L

NEW ZEALAND QUARRYING & MINING

Q&M covers news, views and trends from the extractive industries, along with features on projects and people in the industry.

QuarryNZ 2018 and industry solidarity Congratulations to the IOQ and AQA for putting on such a tremendous conference in Hamilton last month.

The timing of this conference has snuck forward in the month of July, which means our August issue coverage cannot be as comprehensive as it has been in the past, but we bring you seven pages of photos from this event.

QuarryNZ 2018 event was one of the best I have attended; the trade was extensive; the display machines huge; the catering superb; and the award night run like a Swiss Watch.

There was also a vibrant atmosphere of industry ‘solidarity’ among delegates as in standing up for an industry that is the first off the rank in terms of national infrastructure construction. A point that has become increasingly lost among many politicians (both local and central) who pander to a creeping cultural paganism, that reminds me of a time long ago in the 1970s when I made pretentions to become a hippie, and was going to live off the land and be closer to nature. Most of us only tried that once before thinking maybe Tom Hobbes was right, and life can be very 'solitary, poor, nasty, brutish and short', without the comforts and graces of technology and the march of civilisation.

And civilisation didn't happen, and can’t happen, without extracting rock out of the ground. It is absurd and reckless to push quarries further and further from the point of demand and then blather on about 'affordable housing' and 'value for money' roading.

Aggregate is the foundation of every construction project, and the more it costs to transport, the higher the cost of the build. It’s as simple as that.

Congratulations again to Jason Kerrison the quarry site supervisor at Rodney Aggregates and Jake Rouse, assistant quarry manager at Western Hills Quarry, who were the recipients of my Tomorrow’s Leaders Award this year (page 20) Meanwhile, we have a strong mining focus in this issue as the controversial Pike River re-entry gets approval and plans are underway for a second crack at the Black Pearl (diatomite) field near Middlemarch in Otago, initially mined by Aussie Featherstone Resources. Even our cover story (a Hyundai excavator) is located in a West Coast gold mine.

As to the Pike River re-entry – I wonder what the final result will be and I hope for the families of the victims involved, it is not disappointing.

There’s also the subject of the final cost of the project. Back when Solid Energy owned the mine, it predicted that re-entry via another egress (and using massive amounts of nitrogen) would cost around $100 million.

I wonder what the 29 miners and contract workers who perished back in the November 2010 explosions would have thought of it all?

www.contrafed.co.nz PUBLISHER

Contrafed Publishing Co Ltd Suite 2.1, 93 Dominion Road, Mt Eden 1024 PO Box 112357, Penrose, Auckland 1642 Phone: 09 636 5715 Fax: 09 636 5716 EDITOR

Alan Titchall DDI: 09 636 5712 Mobile: 027 405 0338 Email: alan@contrafed.co.nz GENERAL MANAGER

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Design: Tracey Asher, TMA Design Contributions welcomed.

Please contact the editor before sending them in.

Articles in NZ Quarrying & Mining are copyright and may not be reproduced in whole or in part without permission of the publisher.

Opinions expressed in this magazine are not necessarily those of the shareholding organisations or the publisher.

The views expressed in the Aggregate News section of NZ Quarrying & Mining may not represent the views of Contrafed Publishing or its shareholding organisations.

VISIT THESE WEBSITES Aggregate & Quarry Association www.quarrying.org.nz Institute of Quarrying (NZ) Inc www.ioqnz.co.nz New Zealand Minerals Industry Association www.straterra.co.nz

Alan Titchall, Editor

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U P F R O N T

A long hot UK summer Hillhead 2018 benefitted from a very hot English summer this year and attracted unprecedented crowds over three days last month at Tarmac’s Hillhead Quarry, near Buxton, in Derbyshire.

According to the official figures, a record-breaking 19,687

enlarged Registration Pavilion.

Exhibition director Richard Bradbury says; “With clear blue skies, record crowds and all the majors from the plant and equipment world in attendance, business was buoyant and the

unique visitors attended this year’s event, surpassing the

atmosphere amongst the exhibitors and visitors was superb!

show’s previous highest attendance record set in 2005. This

Another highlight of this year’s show was the MAN Engine,

year also saw more exhibitors (527) in attendance than ever

which proved to be a real crowd-puller.”

before, many of them occupying newly-created space in the

The next Hillhead show will take place in late June 2020.

Quarries urged to tell ECan to shove off Ex AQA chair Brian Roche urges Canterbury quarries to “vigorously

ignored its own data and announced this without consulting the

fight” any attempt by Environment Canterbury to impose mandatory

quarry sector.

continuous dust monitors on the boundaries of quarries that have a residence within 500 metres of their boundary.

“The move is unprecedented in New Zealand and totally

“It may well be that the decision is not legally enforceable and we encourage quarrying companies to seek legal advice.”

Meantime, MinEx Health and Safety Council chief Wayne Scott

unnecessary given results released on dust monitoring in the

challenges ECan to provide evidence that dust measured at any

Yaldhurst area that showed ‘no serious public health risk to

building site, factory, farm gate, unsealed road or quarry had an

residents’,” he says.

impact on residents 500 metres away in any direction.

There are many quarries out of the hundreds operating in

“I would also ask ECan to tell us what particulate matter was

Canterbury, most very small (some run by District Councils), that do

in the samples on the very few occasions that PM10 limits were

not crush or screen aggregate and therefore generate little dust, he

exceeded at Yaldhurst and what are the potential sources of that

adds.

particulate.”

“This decision will impose unnecessary cost of continuous dust

The Ministry for the Environment defines PM10 as containing

monitoring in these small operations, for no benefit to them or local

combustion particles, organic matter, metals, sulphate, nitrates,

residents.

sea salt and dust and says the most common causes of PM10

“We are surprised and disappointed that ECan appears to have 8 www.quarryingandminingmag.co.nz

exceedance are wood burning and sea spray.

Lafarge Holcim’s five year growth strategy

Time to engage over mining on conservation land Energy and Resources Minister Megan Woods says the mining sector will be

Lafarge Holcim has launched a new five-

consulted along with other groups through a discussion document to be released

year strategy targeting annual sales growth

in September on implementing the Government’s proposal of ‘no new mines on

of three to five percent while chopping

conservation land’.

Straterra says it welcomes the opportunity to provide feedback. Its CEO,

costs.

Lafarge Holcim posted 4.7 percent

Chris Baker, says the Government can’t ignore the contribution the minerals

growth in sales on a like-for-like basis in

industry makes to regional development, which is crucial to our prosperity.

“A blanket ban on new mining on conservation land would compromise

2017, mostly due to higher cement volume sales.

Jan Jenisch, the French-Swiss giant's new chief executive, says good progress

significant economic opportunities, particularly for the regions. Government intervention beyond existing legislation, such as bans, would discourage exploration, further investment, and regional jobs.

was made in 2017 across all key metrics

“It will also limit the opportunities to discover high value deposits including

and provide a very good basis to build on.

rare earths and green minerals. Green minerals have an important role to play

He says the company’s new Building for

in the transition to a low carbon economy.

“Conservation land varies widely in its quality and value. We want to see a

Growth strategy; “Will allow us to more vigorously capture market opportunities,

nuanced approach where all applications are considered on a case-by-case

capitalising on the best assets in a growing

basis, and there is a net-positive benefit.”

Government figures show the minerals sector contributed $418 million in

building materials market.

“We have already started to create a

GDP, he adds. In regions such as the West Coast, mining accounts for 22

leaner, more agile organisation through the

percent of regional GDP and supports 1180 jobs. The minerals sector also

empowerment of the country management.”

has very high productivity ($354,000 of GDP per filled job) and generates high incomes.

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Q&M August– September 2018 9

U P F R O N T

New extraction apprenticeship MinEx, in conjunction with MITO, has put together an apprenticeship in the Extractives sector.

“Having a clear qualification pathway, starting with an apprenticeship,

Tests prove silicosis risk to quarry neighbours false Residents living near quarries in Yaldhurst near

helps make the mining and quarrying industry a more attractive career

Christchurch have no reason to fear being exposed

option for new entrants to the industry, including school-leavers,” they

to dust that can cause the dangerous lung disease of

say.

silicosis, says MinEx.

Expressions of interest are being sought from interested potential

The results of the combined ECan, CCC and CDHB

apprentices who are either working within the mining or quarrying

Yaldhurst area-wide testing near Canterbury quarries

sectors, or who are about to take up employment in either sector.

shows dust issues can be managed within existing

The pathway starts with MITO’s New Zealand Certificate in Mining and Quarrying (Level 2). This training programme takes about seven months to complete, and is most suited to those entering the industry.

Graduates can then proceed to the New Zealand Certificate in

resource consents.

MinEx CEO Wayne Scott says the combined agency testing near quarries that were at the centre of silicosis claims confirm the cause of silicosis, Respirable

Mining and Quarrying (Level 4) training programme that will be ready

Crystalline Silica, are not present at levels that can cause

for enrolments in 2019. It is expected that this training programme

any harm. And this country’s limit on RCS is 0.1mg per

will take approximately two years to complete and includes a mix of

cubic metre, which is among the world’s lowest.

classroom and workplace-based training and assessment.

“If there’s any risk of RCS exposure it’s to quarry workers, not neighbours, who most often are at least 100 metres from a quarry face, with a huge amount of air

CoC update from MinEx Through its ongoing regulatory reform programme, MBIE is aiming to have the regulatory changes in place by the end of

space between them,” he says.

“It needs to be understood that all dust is recorded.

This includes diesel particulates, and dust from roads, farms and riverbanks – not just dust created by quarries.

“That said, while many quarries have good dust

the year and has been interested in obtaining industry views

management in place, all operators need to continue to

on specific issues concerning CoCs, says MinEx chief Wayne

lift their game.”

Scott.

“We recently met with MBIE to explain some issues in the

Meantime, AQA chair Brian Roche welcomes the Canterbury dust test results.“We’ve had a lot of claims

regulations concerning CoCs and the importance of why those

made about dust, and now we have the facts. Most of our

issues needed to be addressed.”

members work hard to meet dust limits set by councils

Key matters discussed at this meeting, he says, included the structure of quarry CoCs, particularly the role of the B-grade quarry manager, working under the supervision of an A-grade

as part of a resource consent, along with controls on noise and traffic movements.

“These results show dust can be managed under

quarry manager in a production shift and as a manager in a

existing planning law. If quarries were pushed well into

quarry with a limited number of workers; alluvial CoCs’ inclusion

the rural hinterland, that would increase the cost of

in the regulations; and specialist CoCs being endorsed as coal

every home, building and road, because the big cost in

and non-coal.

quarrying is transport.

A full change to the CoC requirements has been postponed

“Christchurch alone needs to set aside the equivalent

until the new Health and Safety at Work (Mining Operations and

of 27 rugby fields (27 hectares) every year, just to keep

Quarrying Operations) Regulations 2016 are in place.

up with demand. Sources of aggregate need to be kept

Meantime, three amendments already announced address the immediate needs of industry and will be implemented once the

close to what’s being built or costs escalate markedly.”

From next year onwards, national supplies of aggregate

amendment to the New Zealand Gazette notice is published,

will begin to be exceeded by demand, amid ongoing issues

Scott says.

to get new quarries or extensions consented, he adds.

These are requirements for a site-specific quarry CoC;

“The AQA would like to engage with the new

definition of the meaning of “workings”; and specifying First Aid

Government, as it commences its home building and

certificate unit standards.

transport programmes, to ensure a continued supply, at

“We are very aware that there is a feeling that the review has taken too long and that after all the effort and work many have put into the review, changes to requirements need to be made.

“We can't change CoCs, or how they are structured. Our role

reasonable cost, of the very foundation of the economy.

“On the back of these monitoring results, our industry also wants to engage with Canterbury councils, so we can discuss how we can work together to ensure dust,

is to recommend CoC requirements to WorkSafe based on what

noise and transport issues from quarries are framed and

is in the Regulations.”

managed under appropriate management practices, and ultimately resource consents.”

10 www.quarryingandminingmag.co.nz

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U P F R O N T

Quarry procedures questioned According to MinEx none of our quarries or mines are yet fully compliant with the workplace health and safety regime that came into force a few years ago.

Association chief Wayne Scott says one cause of the non-compliance is that not all sites have up-to-date Certificates of Competence at present – but many are part-way through gaining their CoCs. He is also alarmed over incident reports to MinEx over the past nine months where 12 percent of the incidents reported resulted from breaches of procedure, which is high compared to other countries, such as Australia.

“I think WorkSafe CEO Nicole Rosie could be correct when she said New Zealanders are the most non-compliant race of people in the world.

“The point is, if you are relying on people and procedures, you are going to fail. As MinEx has been advocating, the focus should be on controls that prevent people from being able to breach procedures.”

However Scott adds that the association is pleased with the increase in information coming from quarries.

“Which is a real success, that just nine months in to our new initiative to collect health and safety data, including near misses, MinEx has enjoyed a big rise in reporting rates.

“That includes a four-fold increase in the supply of safety alerts to MinEx between late last year and early this year.

“I put that down to more people in the industry gaining comfort with MinEx’s respect of data confidentiality and being willing to share information.

“And the improvement in health and safety in the last five years across mines and quarries has been exceptional. Let’s keep that momentum going.”

New operators on Saddle Hill The controversial Saddle Hill quarry overlooking the north eastern end of the Taieri Plains in Otago on the outskirts of Dunedin has turned another chapter.

The lease has been purchased by a Canterbury-based operator, but the company is not yet ready to say if it will make any changes to the operation that has been in and out of court with the Dunedin City Council.

Saddle Hill is owned by Saddle Views Estate, headed by director Calvin Fisher and, over the past decade, leased to Saddle Hill Quarries.

Early in June this year the lease was bought by the SOL Group, which is related to South Canterbury Screening and Crushing. Based in Christchurch, this group includes SOL Quarries, closely identified to former All Black captain, Richie McCall.

Calvin Fisher says the sale of the lease ensured a ''seamless'' changeover and a continuation of existing contracts, which is ''critical'' for contractors working in the area.

However, Fisher has confirmed neither Saddle Views Estate nor the SOL Group had yet held discussions with the Dunedin City Council over the extent of the quarry's existing use rights. The Court of Appeal ruling in April upheld earlier court rulings, which concluded a 1960 consent limiting the quarry to extracting 50,000 cubic yards (38,000 cubic metres) of rock for a new airport at Momona was no longer in force. This ensured the protection of the landmark hill's distinctive ridgeline, but left questions about the extent to which quarrying could

EV mining haul trucks

continue under existing use rights.

An earthmoving vehicle manufacturer claims to have made the “first

City Council chief executive Sue Bidrose says it is up to

ever” all-battery­powered underground haul truck.

Fisher says quarrying may continue, while Dunedin Fisher's company to prove its operational rights.

Developed by US-based Artisan Vehicles and Kirkland Lakes Gold, the 40-tonne Z40 electric vehicle is said to have the smallest footprint of any 40-tonne truck on the market, but able to haul a significant load of ore in each truckload for improved productivity.

The Z40's release follows the company’s A4 EV, which is a 1.8 metre long, four-tonne load, haul and dump underground vehicle.

Also powered by lithium batteries it is estimated to have 300 percent more horsepower than an equivalent diesel truck.

According to AV, the Z40 has almost twice the peak horsepower of a comparable diesel engine. It produces zero diesel emissions and generates one-eighth the heat of its diesel equivalent.

The Z40 is equipped with four electric motors and a battery swap system, allowing the operation time of the vehicle to be extended to a duration comparable to that of a diesel model, while reducing the number of trips made around a site.

According to an AV statement, electrifying vehicles and equipment in the industry also helps reduce the impact of making other EVs, because it cleans up the process of sourcing vital components such as nickel, cobalt, lithium and other metals.

12 www.quarryingandminingmag.co.nz

Site Specific Quarry CoCs Last month WorkSafe and the Board of Examiners approved the criteria and requirements to issue a Site Specific Quarry Certificate of Competence (CoC).

To apply for a Site Specific CoC, your site must meet these criteria: Employ no more than four workers, including the CoC holder; use no explosives at the site; have no voids or underground workings within the extraction zone; have a processing rate that does not exceed an average of 1000 tonnes per week; the quarry must have been operating for at least 24 months (this does not have to be continuous as long as the total operating period will be at least 24 months); and the stockpiles must be less than five metres high.

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O N

T H E

C O V E R

Digging for gold Inland from Greymouth, Brent Whyte and his team at CMR Mining quarry gold with a pair of new Hyundai diggers. By MARY SEARLE BELL. BRENT WHYTE HAS been in the gold mining business for years now.

He’s been a shareholder in Whyte Gold for the past 14 years, and his latest venture is CMR Mining.

The firm set to work three years ago at a new site in Notown Valley, one of the feeder valleys into Grey Valley on the gold-rich West Coast.

Here, CMR Mining processes up to 500 cubic yards of material a day in its hunt for gold.

“We’re getting about five grains per yard,” says Brent.

“And with 480 grains in an ounce of gold, that’s about 100 yards for one ounce.”

The first step in the process is to remove the overburden, which is about two metres deep, and expose the pay gravel. This layer is between 10 and 20 metres deep and, once recovered, is loaded onto trucks and taken to the wash plant for processing.

All this digging requires some robust machinery, and Brent has four excavators to tackle the job, plus a couple of 40 tonne articulated dump trucks.

14 www.quarryingandminingmag.co.nz Q&M

When it comes to diggers, Brent is all about Hyundai. His first machine was a R210LC-9 excavator. Twelve years on, it now has 20,000 hours on the clock and is still going strong. Brent says he’s never had any issues with it.

“When I set up CMR Mining I bought a second-hand R450LC-9 from Porters that had done 9000 hours. Since then it’s clocked up another 11,000 hours with minimal maintenance work required. It’s done well.”

With these stellar performances to go on, Brent had no hesitation in selecting Hyundai again when he recently bought two brand new R480LC-9 excavators from Porters.

Hyundai says the state-of-the-art machines offer maximum performance, more precision, and proven quality.

The R480LC-9 has a reliable and low noise Cummins Tier 3 engine that is electronically controlled for optimum fuel to air ratio and clean, efficient combustion.

The new patented hydraulic controls offer improved controllability

An investment of this size requires a good relationship with the supplier, and here Brent has high praise for Hyundai distributor – Porter Group.

and smoother operation, as well as an auto boom and swing priority system for optimum speed.

Brent says the operators are loving the new machines: “They’re nice and smooth to operate, but it’s not just performance that is important, cab comfort is a priority too.

“And, I have to say, the heated seat is a real bonus in winter!”

In Hyundai 9 series’ cabs you can easily adjust the seat, console and armrest settings to suit your preferences and maximise your comfort.

“Work is stressful enough. Your work environment should be stress free. Hyundai’s 9 series provides improved cab amenities, additional space and a comfortable seat to minimise stress to the operation.

“A powerful climate control system provides the operator with optimum air temperature. An advanced audio system, with CD player, AM/FM stereo and MP3 capabilities, is perfect for listening to music favourites. Operators can even talk on the phone with the hands-free cell phone feature.”

The quality and performance of the machine are only two parts of

the purchase equation however. An investment of this size requires a good relationship with the supplier, and here Brent has high praise for Hyundai distributor – Porter Group.

“I have dealt with quite a few companies over my 20 years in business and Porters comes out on top,” says Brent.

“Not just for its machinery, but sales and finance as well.

“Our local rep, Chris Toase, has been great, and also Porter Finance has looked after us really well. In fact, they’d be my number one recommended finance company!

“I chose to buy gear new to save on repairs and maintenance,” he adds.

“The new machinery includes regular servicing as part of the package, but there’s also less downtime when it comes to servicing a new machine – the old machines can be out for weeks while you’re waiting for a part.”

As part of purchasing the two new excavators, Brent traded an older R450LC-9 excavator and an HL780-9 wheel loader. • Q&M August– September 2018 15

Q U A R R Y

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C O N F E R E N C E

2 0 1 8

Quarry NZ

IOQ/AQA Annual Conference 2018

50 years and beyond

1

2

4 16 www.quarryingandminingmag.co.nz

3

5

9

6

10 7

1. Gough Cat Welcome Dinner.

2. I ndustry veterans Gorge Cunningham (retired) and retiring AQA CEO, Roger Parton.

3/4. An impressive outdoor display of machines included this mobile crusher and some big Cats.

5. E njoying the RealSteel function are: George Kelcher, Road Metals; Les Ward, Mimico; and Wayne Scott, MinEx. 6. The Mimco Lunch on the Friday.

7. P eter Kuriger demonstrating his remarkable scaled model steam engine and primary crusher that can actually crush small stones.

8. A presentation by Paul Hunt, WorkSafe chief inspector, HHU Extractives.

9. Jono Gray, RealSteel marketing.

8

10. Gambling for charity was part of the entertainment at TransDiesel Awards Dinner.

Q&M August– September 2018 17

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5

1

6

2

3

7 1. Q &M sales manager Charles Fairbairn and Poovan Naidoo, major accounts manager, Gough.

2. Manning the Virtgen stand are Gary Payne and Clive McKeown.

3. From Brisbane and representing Metso Australia on the Mimico stand were Mike Bygraves and Anita Waihi (originally from Hamilton).

4. Martin Hammond and Ben Gordon-Glassford on the OiI Intel stand.

5. The Claudeland’s convention centre is the country’s best and big enough to fit this huge Volvo loader at the TransDiesel stand in the trade expo.

6. Jared Wright-St. Claire demonstrating the latest loading software on the Wrightzone stand.

4 18 www.quarryingandminingmag.co.nz

7. The Loader Award for best display went to SaboWilsdon. Nigel Larke and Don Mellors picked up the trophy. Andy Loader is on the left.

1

2 1. On show at the Mimico stand was the Metso MX4 (multi-action cone crusher that spent six years in research and development. It was launched at ConExpo in March last year and is designed as a secondary crusher.

2. The draw of stand prizes at 12 noon on the Friday is a big event. Oil Intel gave away the last of its Peugeot scooters and the lucky winner was Lynn Ray from Blackhead Quarries. Pictured is Oil Intel's Martin Hammond and Ben Gordon-Glassford and Paul Mollart from Blackhead.

3. A remarkable scaled model steam engine and primary crusher (pre WW1) on display.

4. Having fun at the Real Steel Hard Rock Club Happy Hour.

5. This Keestrack (Equip2) made a big impression at the trade expo.

6. Peter McGeary, Keestrack.

3

5

4

6 Q&M August– September 2018 19

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Tomorrow’s Leaders Awards 2018 Every year Q&M magazine calls for nominations from the extraction industry for up-and-coming young workers showing promise as future leaders of our industry.

TWO AWARDS WERE given this year: Jason Kerrison and Jake Rouse. These are their citations from their nominees.

Jason Kerrison Site supervisor, Rodney Aggregates Nominated by quarry manager Steve Hancox “I read in your editorial that you are seeking out up-and-coming industry leaders and I would like to nominate our site supervisor Jason Kerrison for this award as I believe he is a deserving recipient.

“In the five short years that he has been quarrying he has achieved a lot and has a great career ahead of him.

“Our site is ticking along nicely and has been improving year on year for the last four years.

I put a lot of our success down to the efforts of Jason. He is a natural born leader and has trained up a team of operators, most of whom have never worked in a quarry before, to be efficient operators. Plant availability is the highest it’s ever been and this is a direct result of systems that Jason has implemented for preventative maintenance.

“We used to be a bit ad hoc and reactive when it came to maintenance but now, thanks to Jason, we have a robust system for preventative checks on the plant and

can monitor wear on parts so that they can be changed out in a planned way instead of waiting for them to fail.

“The result of this is less downtime and fewer unexpected failures on the plant.

“He leads from the front when it comes to Health and Safety onsite and makes sure that people are trained properly in procedures and are following them correctly.

“The site culture has improved through his leadership and the staff are aware that things need to be done properly and that we don’t accept short cuts.

“Housekeeping has also improved immensely and I often get positive feedback from maintenance contractors on how tidy the place is.

“Jason has plans to leave us later this year.

I flagged this with our board of directors and they are adamant that between GBC Winstone and Fulton Hogan that they will find a leadership role on one of their other sites for

him as they don’t want to lose him completely.

“He has also started mentoring one of our other up-and-coming leaders, Jessie Sutton, one of the operators accepted for the IOQ youth programme.

“Jason spends one day a week working with Jess to train her in the systems that he’s put in place and involves her in the planning of production and other tasks.

“When Jason is away Jess steps into his role and looks after the day to day running of the site with minimal support from me.”

Jake Rouse Assistant quarry manager, Western Hills Quarry Nominated by Murray Clements, managing director Clements Contractors and Alistair McIntyre “Jake Rouse left school when he was 16 via the Youth into Industry programme run by Doug the Digger (Alistair McIntyre) and secured a job at Dicksons Quarry.

“He worked there for three years and during that time he became actively involved in the Northland branch of the IOQ as a member of the committee.

“He also won ‘Northland Quarry Employee of the Year’ at the first ever Northland Quarry Awards.

“He worked there for about three years before looking for a change and coming to us at Clements Contractors.

“He has worked at Clements Contractors for two years and, during this time, Jake has built up his skills and is now a competent quarry operator and has achieved his B grade National certificate and B grade COC. 20 www.quarryingandminingmag.co.nz

“He is now the assistant quarry manager at our Western Hills Quarry operation and has been heavily involved in the development and implementation of systems in our quarry.

“In late 2017 he took over the role of vice president of the Northland branch of the IOQ. "Jake is an excellent example of the future of our industry and I believe he could now get a job anywhere he chooses.”

Alistair McIntyre says he meet Jake four years ago on his Youth into Industry Programme that he ran in High Schools in the Whangarei district for students interested in the civil and extraction industries as a professional career.

“When he joined Clements Contracting it had a contract for loading rock onto a barge that was then shipped down to help with the rebuild of Auckland's Freyberg Wharf.

“As site supervisor Jake was responsible for

the site Health and Safety and smooth running of the operation on a daily basis. This also involved good communication and coordination with the operators of the diggers and trucks as well as the skipper of the barge.

“Jake is a good example of a role model for younger generations that are interested in our industries. Given a bit of positive help, support and guidance the positive outcome is company and industry benefits.”

The Tomorrow's Leaders Award winners are honoured by Q&M magazine editor, Alan Titchall (pictured middle, top), at the AQA/IOQ Conference awards dinner sponsored by Transdiesel. Jake Rouse (left) and Jason Kerrison were each given a certificate and $1000 cash to spend how they like.

Q&M August– September 2018 21

Q U A R R Y

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4 22 www.quarryingandminingmag.co.nz

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Q U A R R Y I N G

Kiwi quarry gardens

lead the way An old Whangarei quarry site turned into a ‘quarry garden’ has been promoted as a ‘template’ for converting a disused Aussie site into botanical gardens.

The five hectare former Whangarei quarry, was donated to the Whangarei District Council in 1974 to become part of the city’s parks and reserves network.

TOOWOOMBA REGIONAL COUNCIL in Queensland, in conjunction with the incorporated Friends of the Quarry Gardens, is conducting a $250,000 Queensland Government-funded feasibility study to decide the best future development of the Bridge Street Quarry site.

The 17 hectare site, owned by the council, was mined for over a century but hasn’t been operated THE

24 www.quarryingandminingmag.co.nz Q&M

since 1993.

The local ‘Quarry Gardens’ concept was first proposed in 2001, but did not progress due to the severe drought and water restrictions placed on the city of Toowoomba.

Whangarei Quarry Gardens founder Laughton King and its general manager David McDermott were part of an international delegation that descended on Toowoomba in late May at the invitation of Toowoomba Regional Council.

“It's an affirmation for all of the people, all the ideas and all of the energy that has gone into the Whangarei Quarry Gardens, that it is now being sought as a template for other projects elsewhere in the world,” King told media sources.

Following the workshop, a delegation from the Toowoomba Regional Council delegation was due to visit the Whangarei Quarry Garden in June on a fact-finding mission.

The Toowoomba quarry site is said to feature similarities to the five hectare former Whangarei quarry, which was donated to the Whangarei District Council in 1974 to become part of the city’s parks and reserves network. The land lay uncultivated for 20 years, overgrown with weeds and rubbish until Laughton King approached the council over creating a public garden on the site in 1990.

Then, in 1997, the Whangarei council purchased 2.5 hectares of adjoining land to form a link to the top north-west border and a group of enthusiasts – Friends of the Quarry Garden – began clearing the overgrown site.

A Charitable Trust was formed in 1998 and the Whangarei Quarry Gardens project has since continued to grow.

Other ‘quarry gardens’ covered in Q&M magazine in past issues include the world renowned Butchart Gardens in Canada, created from exhausted limestone quarry on Vancouver Island that stopped producing in 1909; the 5.5 hectare Eden Garden in the heart of Auckland (developed from the city’s orginal bassalt quarry); and Wrights Watergardens in Patumahoe, south of Auckland, developed from an old Stevies quarry used to make the road to the Glenbrook Steel Mill. Q&M

Wrights Watergardens in Patumahoe, south of Auckland, was developed from an old Stevies quarry.

Q&M August– September 2018 25

M I N E R A L S

26 www.quarryingandminingmag.co.nz

Mining

Black Pearl

for animal feed supplement Australian company Plaman Global is progressing with plans to resurrect diatomite quarrying operations in the South Island, with the potential to earn billions of export dollars over the next three decades. NEIL RITCHIE explains.

PLAMAN RESOURCES, A SUBSIDIARY of Plaman

Global, a private company headquartered in Sydney, has successfully raised the initial tranche of funding necessary to reopen the disused Foulden Hills quarry near Middlemarch in Otago, and turn it into a profitable operation.

This initial seed capital of US$20 million (about $28 million) from Goldman Sachs New Zealand Holdings (the local unit of the New York Stock Exchange-listed investment bank) will be used primarily to build a workforce and undertake more animal feed trials before reopening an old black diatomite mine in Otago.

The Plaman management team has decades of experience between them – including founder and chief executive officer Peter Plakidis (agriculture, mining, and investment banking); co-founder and chief financial officer Geordie Manolas (agriculture, mining, investments and finance); and animal nutrition and health president Rob Aukerman (animal nutrition and health).

Rob Aukerman says further funding, ranging up to several hundred million dollars, depending on the eventual scale of the project, will be required to eventually mine up to 31 million tonnes of the rare organic mineral known as black diatomite in Otago over an estimated 27 years.

Plaman Resources Subsidiary Plaman Resources was incorporated last February with its registered office in Parnell, Auckland. Its shareholders are listed as tech giant Iris Corporation of Malaysia (700 shares) and Burleigh nominees of the Isle of Man (674 shares) according to the NZ companies Office. It plans to mine and process the black South Island diatomite – to be branded Black Pearl – in a staged process over two to three years.

The mine was formerly owned by Australian company Featherstone Resources, which was unsuccessful in developing a diatomite-tofertiliser project after starting the original diatomite field at Middlemarch in 1997 and pouring over $15 million into research and development.

It also built a million-dollar processing plant near Mosgiel. Production was minimal and the company was ultimately placed in receivership during 2014 after protracted litigation in the Australian courts (it was registered as a foreign company here).

Plaman Global, known for purchasing distressed assets, bought the mining operation for A$5 million through a deed of company arrangement in March 2015.

Plaman Resources is planning to mine and process black diatomite into a stock feed supplement for poultry, pigs, dairy and beef.

Rich in organic matter, it improves gastrointestinal health and may reduce the need for antibiotics.

Q&M August– September 2018 27

M I N E R A L S

A versatile mineral Diatomite is the naturally occurring fossilised microscopic remains of water-borne, single-cell algae called diatoms, impregnated with silica.

Once this light-coloured sedimentary rock is mined and crushed it resembles hard fertiliser such as limestone or phosphate, and is normally referred to as diatomaceous earth (or DE). Diatomite also has a low specific gravity and is very porous.

These properties make ordinary diatomite useful as a fertiliser or insect repellent in agriculture.

As a fertiliser, diatomite is favoured by the Malaysian and Indonesian palm oil industries, as it has a reputation for improving resistance to fungal diseases in oil palms.

As well, the mineral is widely used as a filter agent in food, beverage and alcohol manufacturing, dental fillings, seed coatings, roofing compounds, adhesives, speciality concretes, pottery, dynamite stabilisers, thermal insulation and in paper.

As it is very rich in organic matter, it is also ideal as a natural organic animal feed additive that improves gastrointestinal health and may reduce the need for antibiotics.

So, rather than be used as fertiliser, Plaman is planning to mine and process this black diatomite into a stock feed supplement for poultry, pigs, dairy and beef.

28 www.quarryingandminingmag.co.nz

Ordinary white diatomite used as a fertiliser is believed to be worth $500-$600 per tonne, while ‘black diatomite’, used as a stock supplement, is understood to fetch significantly higher prices per tonne.

The Plaman website says there are strong market drivers for; “incentivising a shift away from the use of antibiotics, medicated feed and synthetic additives towards new feed additives such as Black Pearl that are naturally occurring and non-medicated”.

Further, Plaman believes it can make a “significant positive contribution” to the animal nutrition industry.

“In addition, more protein with fewer inputs will help to mitigate the environmental impact of livestock farming,” it claims.

“Black Pearl is a unique product with proven efficacy from trials conducted by AHPharma Inc, one of the world’s leading animal nutrition research houses based in the USA.” Animal Pharma is part of the business intelligence division of London-headquartered Informa PLC, which is listed on the London Stock Exchange and is a member of the FTSE 100.

The Plaman website iterates that, if successful, the Kiwi scheme has the potential to become one of only a few in the world mining and processing the “globally rare black diatomite", mostly for export.

Plaman Resources recently appointed Craig Pilcher as its New Zealand general manager – a Kiwi with more than 30 years experience in our mining industry, all of which has been in the South Island where Plaman’s operations are located.

Last November, the Overseas Investment Office granted consent for Plaman to buy 42 hectares for $615,000, while the existing mining permit was transferred from Featherston Resources to subsidiary company Plaman Resources earlier this year.

The mine permit presently covers 42 hectares, but there is an application before the Overseas Investment Office for Plaman Resources to acquire a further 400 hectares of adjacent land.

The mining permit (which has been extended to the year 2033) covers probable reserves of some 50 million to 100 million tonnes of diatomite.

Rob Aukerman notes that there is no complicated regulatory pathway ahead for diatomite as an animal feed supplement, given its existing approval in many countries. Plaman plans to export the majority of the processed mineral to major markets across the globe (most likely from Bluff), though some will be used here in New Zealand.

The black diatomite will be marketed as a feed additive that reduces antibiotic usage, stimulates growth and improves feed quality, as well as improving animals' gastrointestinal health.

It is understood that Plaman Resource’s initial production of the mineral will start at approximately 100,000 tonnes per year and could increase fivefold within four years.

The project could employ 20 to 40 staff and more than 90 at the associated processing plant.

Plaman Resources recently appointed Craig Pilcher as its New Zealand general manager – a Kiwi with more than 30 years experience in our mining industry, all of which has been in the South Island where Plaman’s operations are located.

Q&M August– September 2018 29

M I N E R A L S

"Public consultation will be important in getting organisations, such as the Otago Regional Council, Dunedin City Council, the Strath Taieri Community Board and the general public “on board”.

Before joining Plaman, Pilcher spent nearly six years with Bathurst Resources, where he was most recently the general manager of domestic marketing and business development.

Looking ahead, he says plans start in 2021 with preliminary infrastructure work regarding mining diatomite from the presently disused Foulden Hills Quarry near Middlemarch, with production starting a year later.

He says recent raising of initial funding of $20 million will be used mainly for future land purchases, increasing corporate staff and further diatomite trials with prospective customers.

“More private (fund) raising is in progress,” he adds.

Prospective clients include large companies across the United States, Brazil, Mexico and Argentina – already committed to undertaking their own finished-product trials. Ultimately, top export markets will be “fairly evenly split,” across North America, South America, Europe and the Asia-Pacific region, Pilcher believes.

Sales will be on the back of successful feed supplement trials on poultry and pigs, with cattle next, and later, aquaculture and the pet sector.

Plaman Global’s president of animal nutrition and health Rob Aukerman says major animal health companies are trying to develop a “clean food movement,” given antibiotics and pharmaceuticals have come in for a lot of scrutiny in past years. “It's the right time for our product. It's natural, it's nonantibiotic and it has broad applications.”

Public consultation will be important in getting organisations, such as the Otago Regional

30 www.quarryingandminingmag.co.nz

"...major animal health companies are trying to develop a 'clean food movement,' given antibiotics and pharmaceuticals have come in for a lot of scrutiny in past years."

Council, Dunedin City Council, the Strath Taieri Community Board and the general public “on board”.

“We expect people will have a lot of questions, so there will be a fair bit of engagement,” he says.

There will be many full-time staff directly employed by the start of production with up to 40 employed at Foulden Hills’ mine and another 90 at the processing plant near Bluff.

Involved is the University of Otago's geology department, which considers the Foulden Hills site as one of the country's pre-eminent fossil sites, and hopes a part of the site will be preserved in perpetuity.

The Foulden Hills site, up to 1000 metres in diameter and 180 metres deep, was a volcano about 23 million years ago that later became a lake and then over 130,000 years became layered and filled with decaying, silica-bearing microscopic plant life. Q&M

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M I N I N G

Pike re-entry options get green light Creating a new small tunnel into the Pike River Mine drift is one of three re-entry scenarios that are considered by technical experts in Greymouth. By PETER OWENS.

Pike River Agency workshop on nitrogen capacity.

THE PIKE RIVER RECOVERY AGENCY was set up by the Government earlier this year to plan a manned re-entry and recovery into the Pike River Mine drift access tunnel.

The agency is a Government department, comprising mining staff and administration/ advisory staff.

It calls on the services of a technical expert advisory panel, and workshops include representatives from the Department of Conservation, WorkSafe, New Zealand Mines Rescue, New Zealand Police, family representatives and their own expert advisors.

The agency has been focused on the three re-entry scenarios signed off by the Minister in July. They include building a new two metre by two metre tunnel about 200 metres long and

32 www.quarryingandminingmag.co.nz

driven down to intersect at the pit bottom area; and re-entering the main drift as it is with no second means of egress (exit).

“A two metre by two metre tunnel, if it can be achieved, would provide ventilation, a second means of egress and quicker access to the areas of interest to assist with finding out what happened and recovering any remains,” says agency chief executive Dave Gawn.

“There are other options as well, including the drilling of a new large diameter borehole which would assist ventilation and possibly act as a means of escape. At this stage no final decisions have been made.”

Gawn adds that the input of ventilation and engineering experts, with the detailed chemistry and geological engineering

knowledge, combined with hundreds of years of mining experience, has enabled the team to get closer to finalising a preferred option.

A concept plan drafted following an earlier four day workshop was sent to the Minister Responsible for Pike River Re-entry, Andrew Little, who gave the concept plan the go-ahead to proceed to the next stage.

Dave Gawn says contractors who carry out any work will also be involved in detailed recovery planning and risk analysis, as well as mine sealing and rehabilitation works at the completion of the project. A procurement process is underway to find the right contractor for that work, he adds.

“We need to continue our planning even while the Minister is making his decision about whether he’s confident that re-entry is possible.

“The Pike River families have been waiting for more than seven years now and it’s important that we keep the pace up, while not sacrificing any finer details around health and safety.” Q&M

Top left: Ventilation expert Robin Hughes; Agency Control Room operator/mine worker, Barry McIntosh and Senior Mine Assistant/Mechanical superintendent Matt Coll.

Left: Family Reference Group Chair, Anna Osborne and Families’ Technical Adviser Brian Robinson.

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M I N I N G

Greenland targets its mineral wealth The only country on the planet that can boast ‘Green’ in its name says it is out to develop its mineral wealth big time.

ALSO THE LARGEST island on the

planet, Greenland's burgeoning mining industry got a big boost after a probusiness party doubled its national support and won the nation’s last election.

The Greenland Prime Minister Kim Kielsen says; “Greenland will work to develop its mineral wealth until the last stone is turned.”

Greenland, a self-ruling part of the Kingdom of Denmark, has been courting Chinese investment through the “Polar Silk Road”, whereby China has developed shipping lanes that have been opened up through a warming climate in the region. China is building its first polar expedition cruise ship – a 104-metre vessel equipped with an advanced electric propulsion and control system for navigating sea ice, that is expected to be completed by August 2019.

34 www.quarryingandminingmag.co.nz

Greenland lacks basic infrastructure for its population of 56,000 and has no roads between its 17 towns. So for now, Greenland is keen to benefit from rising Arctic activity that includes plans to expand its airports to allow direct flights from Europe and North America.

This is all good news for mineral investors in the region. One such investor is Bluejay. Its chief Roderick McIllree says his company has already done a lot of hard work on Greenland’s ilmenite deposits to the east around Iterlak.

Bluejay was awarded “Prospector and Developer of the Year” by the Government of Greenland.

Ilmenite, also known as Manaccanite, is a titanium-iron oxide mineral that is a weakly magnetic black or steel-grey solid. From a commercial perspective, ilmenite is the most important ore of titanium, and the main source of titanium dioxide, which is used in paints,

fabrics, plastics, paper, sunscreen, food and cosmetics.

Ilmenite is found in situ at Iterlak in raised beaches and the local delta.

“We have continued to progress permitting, pre-feasibility work modules, as well as a general preparation towards a busy 2018,” says McIllree.

“Alongside this, the team at Bluejay has been working hard with our consulting partners in developing our mine and operational plan.

“The company maintains a cash buffer of more than £15 million having already secured a 30 tonne mining fleet, as well as other necessary equipment and accommodation necessary to prepare and ship out material for smelter testing. During the year we will prepare the site with various infrastructure works. This equipment will continue to be augmented throughout the year.” Q&M

M I N I N G

Karori is one of the oldest suburbs of Wellington City and has long been renowned for its exclusivity, as well as its birdlife. But not well known is that in the mid-19th century, at least four gold mines operated in the area.

By PETER OWENS. HISTORIC MINING IN Karori is proving

a problem for the ring-fenced Zealandia urban ecosanctuary, which is aiming (over 500 years) to restore an area of about 225 hectares of native bush and freshwater ecosystems as closely as possible to their pre-human state.

Operated by a trust board, some 18 species of native wildlife has been re-introduced into the area, some of which were previously absent from the mainland for over 100 years.

Among the various freshwater ecosystems controlled by the Zealandia Trust is the old Karori Reservoir which for many years provided water for the entire City of Wellington. It is a renowned and popular visitor spot.

However, it badly needs restoration.

Zealandia conservation research manager, Danielle Shanahan, says the

PHOTO: JUDI LAPSLEY MILLER

Old mine shafts create pest problem

Among the various freshwater ecosystems controlled by the Zealandia Trust is the old Karori Reservoir.

lake floor needs to be explored before much-needed restoration work can begin.

“I'm trying to find out as much about the lake as possible – how deep it is, what the sides look like, what obstacles are in here – so I can think about what options I have for restoring it in the future. ” Shanahan says this restoration work of the man-made lake is part of Zealandia's wider ‘Sanctuary to Sea’ project to improve fish habitats in the Kaiwharawhara Catchment, enhance fish migration and improve forest corridors for birds leaving the sanctuary.

The lake was created in the 1870s and is now plagued by annual algae blooms and is in a very unhealthy state for a number of reasons including the up to 30,000 small perch inhabiting the lake.

Perch eat microscopic zooplankton and this affects the food chain and water

quality. Shanahan plans to poison the perch but is concerned the fish might be concentrated in an old mine shaft and make the programme ineffective.

Neither the Trust, nor anyone else, knew where the old mine shaft was until the Royal New Zealand Navy came to the rescue. A team came down from Auckland specifically to map out the lake for the project as a training exercise. The team used an autonomous underwater vehicle equipped with side-scan sonar equipment to map the floor of the reservoir. There are still two other mine shafts known to be in the Zealandia Ecosanctuary, but their exact whereabouts are unknown. Before proceeding with its pest eradication progamme, Zealandia’s team of ecological specialists is evaluating the Navy’s findings. Q&M

OceanaGold enjoys bullish half year BACK IN FEBRUARY OceanaGold chief Mick

Wilkes, talking about his company’s full year 2018 production and cost guidance, said he expected this year to be “exciting” as the miner advanced expansion plans at Haile in South Carolina and at Waihi.

“After a strong finish to 2017, the Haile Gold Mine is expected to increase gold production by 20 to 25 percent year-onyear with higher throughput rates.”

He also expected a solid year at Macraes with a 20 percent increase in production from higher grades at Coronation North.

Lately, Wilkes has taken a more ‘bullish’ forecast and says first-half year trading has delivered a strong operating and financial performance, while OceanaGold's

four mining operations in New Zealand, the US and Philippines have been achieving better than expected results.

Didipio continues to outperform, he says, and while the operation at Haile in South Carolina has experienced ‘problems’ with commissioning equipment, it has recently seen a "strong" operating performance alongside "solid" plant performance.

Meanwhile, Waihi is now operating smoothly, he adds, while Macraes in East Otago near Palmerston (the major source of gold extraction for the corporation last year) is “slightly exceeding expectations”.

This operation is producing a steady supply of higher grade gold from the Coronation North open pit.

A market update from the Waihi operation drew attention to "high mineralisation" gold test drilling results from beneath the historical Martha pit.

Wilkes says the test drilling was designed to unlock a million ounces of gold resourcetarget, which could extend Waihi's mine life, at the current production levels, as far as 2030.

In May this year, OceanaGold lodged resource consent applications to develop another underground mine adjacent to the Martha pit, and also to resume open pit operations. The permitting process was expected to be complete by the end of 2019. Q&M

By Peter Owens.

Q&M August– September 2018 35

M I N I N G

Bathurst coalmine.

36 www.quarryingandminingmag.co.nz

South Island

reliance on coal In the South Island there remain few viable alternatives to coal for many domestic, business, and industrial users that depend on coal for energy. NEIL RITCHIE explains.

The South Island’s dependence on coal supplies will get worse if the current Government bans new coal mines as it has done with new offshore oil and gas licences.

Coal is converted into energy in the South Island by a number of sectors, both domestic, commercial and Government (schools). It is extensivley used by industries such as dairy processing plants (eg milk powder), and specialised industrial applications, including medicines and filters.

This is on top of an international demand for quality coking coal for large-scale steel making. And there is no viable and economic alternative.

There are very few economical alternatives to coal for most South Island energy users.

The South Island has no reticulated natural gas and only limited liquefied petroleum gas (LPG) transportation, storage and distribution outlets for use in such places as schools, hospitals, and food and dairy processing plants.

In the last decade the Government initiated a disastrous bio-fuel industry in the South that eventually cost the country millions with no return.

Even the “clean green” and seemingly abundant hydroelectricity generated in the South Island is inadequate sometimes because of low hydro lake levels, increased electricity demands of North Island users, or constraints on the Cook Strait cable.

In early 2018 constrained hydro

generation (primarily because of low hydro lake levels in both islands) meant North Island thermal generation had to increase, with natural gas up 27 percent and coal up 105 percent to ensure adequate electricity for the country.

Coal is our cheapest source of energy It is estimated that electricity generated in the South Island can cost about $20 for the equivalent of one gigajoule (GJ) of energy, diesel about $15-20 per GJ, renewables (wood waste) about $15 per GJ, and LPG about $10-15 per GJ. However, coal can cost as little as $5-7 per GJ on a delivered basis.

While Energy and Resources Minister Megan Woods suggests there could be a halt to issuing new coal permits sometime in the future, fortunately there are currently no plans to make that happen. And she concedes to not asking Government officials for advice on banning coal exploration. Woods does admit her Government is working on a proposal to ban all new mining on conservation land (which also includes old marginal Land & Survey land that was absorbed into the Department of Conservation many years ago).

Meanwhile, National Party leader Simon Bridges says a future National Government will have no problem approving coal mining on conservation land “that isn't pristine", while

Q&M August– September 2018 37

M I N I N G

Stockton Mine when it was operated by Solid Energy (now Bathurst Talleys).

"The mining of coal, silver and gold, iron and some other minerals is a key industry in New Zealand."

38 www.quarryingandminingmag.co.nz

referring to the present Labour-led Government declining an application to build an open-cast mine across 12 hectares in the Mt Rochfort Conservation Area on the South Island's West Coast (see page 46).

The reality of our coal industry In 2016 there were 25 mines across our country producing about 2.8 million tonnes of coal.

In fact, the mining of coal, silver and gold, iron and some other minerals is a key industry in New Zealand, whether the Government likes it or not.

This industry contributes almost $2 billion to the country’s gross domestic product (GDP) and povides around 8000 jobs at an average wage of almost double the national average, and provides opportunities that

seriously support communities, particularly on the West Coast.

One prospective miner, the private L&M Group, is still pressing ahead with its South Island coal plans, which involve coastal Kaitangata (a large coal resource of about 300 million tonnes south of Dunedin) and White Cliffs (south of Christchurch). And there is no Department of Conservation land involved with Kaitangata and any future development will mainly involve exporting coal to Chile.

"Coal is still very much alive, particularly in the South Island,” says the mining company.

Important to the future of South Island energy is the fact the flows of natural gas to the south will slow as the Taranaki gas fields falter. This will also mean less LPG will be available to be transported across Cook Strait – undoubtedly increasing the need for South Island coal. Q&M

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Aggregate News AGGREGATE & QUARRY ASSOCIATION OF NZ Brian Roche giving his outgoing address as AQA chair to the QuarryNZ Conference in Hamilton.

Embrace the future, says outgoing AQA chair If you weren’t able to attend this year’s cracker QuarryNZ conference, this Aggregate News and Q&M gives you some insights and hopefully ensures you make next year’s conference in Invercargill. (See conference photos and story pages 43 and 44).

Our conference set the tone for a future-focused industry.

I intend to be part of that even though I have now stepped down as AQA Board chair, while remaining a board member. Congratulations to Jared Johnston our new Board chair, Mike Higgins his deputy, and welcome to Matt George from Winstone Aggregates who replaces Andrea Cave. I am confident they will provide good leadership for our sector. Jared's opening comments as chair will appear in our next edition.

When I took over in 2015, our industry was struggling with health and safety. We still have issues but we’ve seen a sea change in our own industry’s attitudes and responses.

Many of you have helped, none more than MinEx CEO Wayne Scott who’s visited quarries, held regional workshops and introduced initiatives on mentoring and training and working with AQA on dust issues, notably in Canterbury.

AQA and MinEx also worked together on the consultation document on the review of regulations for the extractive sector.

Our input will hopefully see the requirement dropped for Principal Hazard Management Plans and associated mechanical and electrical superintendents in quarries (while requiring documented health and safety management systems). We are suggesting that the SSE duties for quarries be covered by the COC. Your input is welcome though hopefully aligns with AQA/ IOQNZ and MinEx's formal responses to the consultation document, due by August 17.

We’ve had some real challenges in the last year in Canterbury. Post-quake Canterbury needed huge supplies 40 www.aqa.org.nz

of aggregate and councils moved rapidly to allow this to be delivered from existing sites.

As a result, dust pressures on some near neighbours increased. This led to claims the dust was full of Respirable Crystalline Silica, now laid to rest but the resulting publicity is making any new quarry proposal in Canterbury very hard to progress. See story page 41.

The regional council ECAN is now suggesting full-time dust monitoring for every local quarry with neighbours at points 500 metres from the site. This would impose a major cost burden on every quarry and won’t measure where any dust comes from.

Such issues are one reason why the AQA Board is moving to recruit a new CEO. This is no disrespect to Roger Parton who has served the AQA with distinction over the past 12 years but the Board wants to maintain the momentum for change. We sought the budget from some major players to recruit a new full-time CEO over a three-year period.

One task for the appointee will be working with the new Government. AQA is already seeking to engage with Ministers and other politicians.

In June, Fulton Hogan in Marlborough hosted Workplace Relations and Safety Minister, Iain Lees-Galloway to a site visit. (See story page 42). We’ve got similar bids in with other Ministers.

I urge you to do the same in your own patch. Get your local MP and Mayor to visit your site. Most of them will have never been to a quarry or understand what you face every day to extract, crush and deliver the base material for every NZ road and building.

Don’t miss our Tech Adviser Mike Chilton’s as everexcellent update on page 45 Hope to see you at next year’s conference. AQA Brian Roche

Chair, AQA

"Dust issues can largely be managed within existing resource consents," says Brian Roche.

Dust-up does not need to continue The Canterbury quarry industry deserves a break, says Brian Roche who has just stepped down as AQA chair.

“In the space of a year, the industry has gone from disproving claims that nearby residents were at risk from silicosis, to efforts to require 500 metre setbacks and now we face proposals for mandatory dust monitoring if anyone lives within half a kilometre.”

Mr Roche says the quarry sector acknowledges dust management is an issue and all sites need to meet resource consents.

“We are all trying to do our best in a post-quake environment which saw councils in Canterbury recognise the urgent need for vast volumes of aggregate – with expansion of existing sites the only rapid option for supply.”

Mr Roche said this did create some issues for residents, particularly some of those around the Miners Rd quarry sites at Yaldhurst.

“But then it went from dust issues to claims about the dust containing Respirable Crystalline Silica.”

People living near quarries in Yaldhurst are now confirmed as having no reason to fear being exposed to dust that can cause the dangerous lung disease of silicosis.”

The ECAN testing confirmed no evidence that the active cause of silicosis – Respirable Crystalline Silica – is present at levels that would cause any harm. New Zealand’s limit on RCS is 0.1mg per cubic metre, among the world’s lowest.

The tests also show that other dust levels recorded were well within the acceptable limits.

Brian Roche says this shows that dust issues can largely be managed within existing resource consents. Instead, ECAN is now promoting mandatory testing around quarry sites that

have any neighbours within 500 metres.

“This will effectively mean every Canterbury quarry.

Monitoring will be expensive as it will need to include video devices to watch for tampering. All dust will be recorded, not just dust created by quarries. How will ECAN know where the dust comes from?”

Brian Roche says ECAN’s dust monitoring proposal emerged after local and central Government politicians began talking about mandatory 500 metre setbacks. ‘’They’ve picked up on Australian requirements without realising these were put in place to protect precious rock resources from encroachment – not for residents.’’

He notes that Canterbury quarries are currently working on a voluntary Code of Practice that will provide councils and residents with reassurance that issues such as dust, can continue to be properly managed. ‘’That, along with councils enforcing resource consent, should be all that is required to protect residents from dust issues.’’

“Christchurch alone needs to set aside the equivalent of 27 rugby fields every year just to keep up with demand. Sources of aggregate need to be kept close to what’s being built or costs escalate markedly.”

Brian Roche says from next year onwards national supplies of aggregate will begin to be exceeded by demand.

“The AQA wants to engage with the new Government as it commences its home building and transport programmes to ensure a continued supply, at reasonable cost, of the very foundation of the New Zealand economy.”

“Our industry also wants to engage with Canterbury councils so we can discuss how we can work together to ensure dust, noise and transport issues from quarries are framed and managed under appropriate resource consents.” AQA www.aqa.org.nz August - September 2018 41

Aggregate News

L-R: MinEx CEO, Wayne Scott, Fulton Hogan’s Neill Kydd, Minister Lees-Galloway and his WorkSafe adviser, Alice Feng.

A Minister visits and other MinEx updates Workplace Relations and Safety Minister, Iain Lees-Galloway visited the Fulton Hogan quarry near Renwick while on a visit to Marlborough in early June. He met with Fulton Hogan staff and MinEx chief executive Wayne Scott and toured the quarry site.

It was the first time Minister Lees-Galloway had visited a quarry and he said it provided a good opportunity to see a quarrying operation and learn about some of the industry's issues, including the management of health and safety risks.

Neill Kydd and Tim Glanville from Fulton Hogan hosted the visit.

Site Specific CoC available by late June

WorkSafe and the Board of Examiners have approved the criteria and requirements to issue a Site Specific Quarry Certificate of Competence (CoC). This is expected to be gazetted at any moment and then be available to those that meet the criteria.

To apply for a Site Specific CoC, your site must meet these criteria: a) Employ no more than 4 workers, including the CoC holder; b) No explosives used at the site; c) Excavations/benches can be no deeper than 5 metres; d) N o voids or underground workings within the extraction zone; e) P rocessing rate does not exceed an average of 1,000 tonnes per week; f) T he quarry will be operating for at least 24 months. This does not have to be continuous as long as the total operating period will be at least 24 months; g) Stockpiles must be less than 5 metres high.

It is likely that applicants will be required to confirm by statutory declaration that they meet the criteria when 42 www.aqa.org.nz

applying for the CoC. Applicants will be required to complete six unit standards across preparation of safety inspection plans, demonstrated knowledge of working surfaces and water, conducting an incident investigation, risk management processes, understanding legislative and regulatory requirements.

Those seeking a Site Specific CoC will be required to sit an oral exam; however, it is not clear how this will be conducted as applicants should be tested on their particular site. Once an applicant has passed a Site Specific oral exam, they will not be required to sit another exam if applying for another site.

No-one fully compliant – but we are making progress No New Zealand quarry or mine is yet fully compliant with the workplace health and safety regime, MinEx CEO Wayne Scott told May’s NZ Minerals Forum.

He notes any legislation takes time for a sector to come up to speed.

“Our new act only came in two years ago. One cause of the non-compliance is that not all sites have up-to-date Certificates of Competence present – but many are partway through gaining their CoCs. “One real success is that just nine months into our new initiative to collect health and safety data, including near misses, MinEx has enjoyed a big rise in reporting rates.

That includes a four-fold increase in the supply of safety alerts to MinEx between late last year and early this year.

‘I put that down to more people in the industry gaining

Aggregate News – QuarryNZ 2018 conference

2 1. Canterbury duo. Jared Johnston, South Island Quarries Manager for FH and Mike Higgins from J Swap (but a Canterbury resident) are the new chair and deputy of AQA Board.

2. It was the IOQNZ's 50th birthday and IOQ presidents from UK, Australia, Hong Kong, Singapore and South African joined in a panel discussion to share industry knowledge.

1

3

3. Straterra's Business Manager Sarah Walker, enjoying the Real Steel Happy Hour with AQA Technical Adviser Mike Chilton and FH's Clare Dring, Technical Engineer at FH. 4. The visit to the Ross brothers car museum near Cambridge was a conference highlight including for MinEx's Lynley Lewis and J Swap Contractors Compliance Manager Karen Sayer.

5

4

5. K elly Burchett from Red Bull Powder was all aquiver for the virtual archery competition. AQA

The Aggregate & Quarry Association appreciates the support of our associate members

www.aqa.org.nz August - September 2018

43

Aggregate News

Canterbury company wins top MIMICO award

A Canterbury company took top honours in this year’s industry environmental and community awards for a Chatham Islands project while another Canterbury quarry was a runner-up.

Southern Screenworks, based in Aylesbury near Darfield, won the Gold Award in the renamed MIMICO Environment and Community Awards at the annual quarry industry awards Awards judge, former Parliamentary Commissioner for the Environment Dr Morgan Williams said Southern Screenworks overcame many challenges in constructing, operating and decommissioning a quarry at Ohinemama, near Waitangi, to provide more than 100,000 cubic metres of materials to build the new $52m wharf for the Chatham Islands.

"They were working 800km from mainland NZ and their success was highly dependent on community relations - given it was a single project quarry. Many affected parties had to be worked with to ensure all were happy with the many things they had to deliver – and not just aggregate." After the wharf was completed, the quarry was fully restored to farmland.

The other Canterbury winner was Fulton Hogan for growing and saving endangered indigenous plants with multiple partners. It won a silver MIMICO award. The project began in 2010 when Fulton Hogan began developing a proposal to swap land with the Templeton Golf Course for a new quarry.

As the golf course was a Site of Ecological Significance a mitigation package was required if the land was to become a quarry. Key indigenous and rare plants were identified and a collection and propagation programme commissioned.

Although the proposed land swap with the Templeton Golf Course is now on hold, Fulton Hogan is using the propagated plants in other quarry rehabilitation programmes and donating plants to trusts and local council projects.

Another MIMICO silver award went to Golden Bay Cement in Whangarei for 20 years of restoring, in partnership with others, Matakohe/Limestone Island. The company has had a connection there for a century since establishing a cement works. The sponsorship includes a $300,000 commitment for a five-year project to revegetate the island (55,000 trees planted) and establish it as a reserve. Golden Bay Cement's support also enables pest control on the island and due to its pest free status Matakohe-Limestone Island has been able

From left, MIMICO Environmental Awards judge, Dr Morgan Williams, Brett Swain, director of Southern Screenworks, project manager Alex Thomson, MIMICO managing director Rex Davies.

to operate as a kiwi crèche since 2003, with more than 150 kiwi chick raised for release in other conservation areas in the region.

Another MIMICO silver medal winner was GBC Winstones Belmont Quarry in Lower Hutt recognised Shane Hagai, Regional Quarry Manager, for his leadership working with communities within the quarry and beyond.

Bronze medals went to GBC Winstones Flat Top quarry in North Auckland for growing and greening the work team, with the growing of vegetables and recycling; and to Fulton Hogan's Waignaro Quarry at Ngaruawahia for maintaining environmental enhancements, community relationships and long-term commitments.

MIMICO managing director Rex Davies says his company is proud to sponsor the environmental and community awards as they encouraged quarry companies to strive for excellence as does MIMICO. AQA

This Chatham Islands farmland was briefly a quarry, supplying aggregate for the islands' new wharf, before being completely restored to pasture.

44 www.aqa.org.nz

AQA Board Chair

Jared Johnston

Technical Issues for AQA Members

Fulton Hogan

Deputy Chair

National Planning Standards

Mike Higgins

• This document is out for consultation. Straterra and AQA are preparing a joint submission.

• This is a concerted effort by the Ministry for the Environment to standardise district plan structure and definitions around NZ. • This will not necessarily lead to a National Policy Statement (NPS) on aggregates but will allow AQA to show how continued aggregate extraction aligns with the government’s key focus areas.

• Submissions close on 17 August.

Basecourse for Low Volume Roads (LVR)

J Swap Contractors

Board Members Jayden Ellis

Stevenson Construction Materials

Matt George Winstone Aggregates

Tony Hunter Blackhead Quarries

• To preserve high-quality aggregate resources for projects with high traffic volumes, NZTA would like to introduce guidance for using more marginal materials in lower volume roads.

• AQA will help in this, and the National Pavements Technical Group (NPTG) have offered to review the proposed guide.

George Kelcher Road Metals

Brian Roche Ravensdown

Brett Swain

M/6 Sealing Chip

Southern Screenworks

• The M/6 specification is nearing the ratification stage.

• NZTA is expecting to take it through their ratification process starting at the end of July.

Technical Committee Chair

RNZ 9805 Review

Clare Dring

• Civil Contractors NZ and AQA are reviewing the Roading New Zealand 9805 document Quality Assurance of Aggregates for Roads.

• The first draft – renamed Best Practice Guideline 05 – is being reviewed at the moment.

• If you would like to propose any changes to BPG05, please email tech@aqa.org.nz .

Fulton Hogan

Greg Arnold Road Science

Jayden Ellis Stevensons Construction Materials

MITO Industry Council

• AQA attended the first MITO/Industry Council meeting in May and went on the director appointment panel. E tu- union’s George Hollingsworth was appointed.

• The MITO board will now have only six members this year, down from nine last year.

James Mackechnie Concrete NZ

Stacy Goldsworthy Civil Contractors

David Morgan

NZ Minerals Forum

• AQA attended the New Zealand Minerals Forum at the end of May. • A paper was presented on aggregate volume and other reporting inconsistencies and the aggregate industry’s contribution to NZ. • It was suggested to the meeting that under-reporting resulted in misled government policies – for example, a lack of safety investment and region-wide policies instead of an overarching national strategy identifying the importance of aggregates.

• NZTA is calculating NZ’s aggregate availability. Inside Resources is providing quarry location and volume information to help NZTA prepare and assess The Aggregate and Quarry Association achieves workable and aggregate supplies for upcoming projects. sensible outcomes for our industry.are around NZ so they can • NZP&M is also working on identifying where quarries Contact us today: office@aqa.org.nz www.aqa.org.nz better collect information from them and has identified around 1000 sites so far.

NZP&M has also completed extensive mineral exploration that was released at the Benefits for members include: conference.

• A voice on numerous national committees, including MITO and MinEx • GNS Science presented its summary of work done to identify aggregate sources • Access to information and guidance from our expert Technical committee in NZ using geological information, market volumes and available committee members plus our Board members land data.

• AQA members also receive issues of Contractor and Q&M free of charge.

Join our united voice!

G G Ran E G A0800 T E & number.

QUARRY A S S O C4NZ I A T I OAQA N O F(0800 NZ 0800 Number AQA nowAhas 0800 469 272)

Supporting New Zealand from the ground up

AQA

www.aqa.org.nz August - September 2018 45

GBC Winstone

Cobus van Vuuren GBC Winstone

Aggregate & Quarry Association of NZ PO Box 32 019, Maungaraki, Lower Hutt, 5050 0800 4NZ AQA (0800 469 272) Chief Executive Roger Parton tel 04 568 9123 fax 04 568 2780 email office@aqa.org.nz

www.aqa.org.nz

P O L I T I C S

Green politics clashes with West Coast mine opportunity Minister of Conservation Eugenie Sage and Minister of Energy Resources Megan Woods made an understatement when predicting their decision to turn down an application to mine coal on just 12 hecatres of conservation land on the West Coast would be “disappointing for many West Coast residents”.

Stevenson Mining (Rangitira Developments) applied to mine a 12 hectare patch of conservation land at Te Kuha, near Westport, to mine valuable coking coal.

Sage says not only is the Te Kuha area one of the last two intact, elevated Brunner coal measure ecosystems and “an undisturbed area which is precious and unique," but the “economic benefits assessment for the mine showed it was at a poor risk with a perfect storm if operating costs were higher than anticipated, if there wasn't as much coal as anticipated, and if coal prices continued to be at low levels,” she claims.

“The economic benefits of the mine didn't outweigh the permanent loss and destruction of conservation values.”

Everyone else involved in the project disagrees.

Stevenson Mining chief operating officer Anne Brewster says the decision is short sighted. While the company still has access to about 96 hectares of reserve surrounding the conservation land that it could develop, it says the mine would not be economically viable without the higher-grade coal within the conserved area.

The proposed mine area is very small in terms of conservation land, she iterates. “There are thousands of hectares of conservation land on the West Coast and all we are asking for is 12 hectares.”

Buller District Mayor Garry Howard also says he can’t understand the logic behind the decision as the proposed site is so small.

“The Department of Conservation has 1,596,000 hectares on the West Coast and this was just 12. It would be a commercial venture that is only going to be operating on 144 hectares and an open pit of 10 hectares.”

As small as it is, the mine was also estimated to provide about 60 jobs to the region and mining expenditure of $28 million per annum. It is estimated that indirect benefits include a further 118 jobs and increased expenditure of $23.9 million per annum in the West Coast region.

Straterra chief Chris Baker says the decision is disappointing given the sizable economic benefits that would have accrued to the community from

the mine and the small footprint of the mine in terms of environmental impact.

“Late last year the West Coast Regional Council and the Buller District Council granted a resource consent under the RMA. “That decision clearly demonstrated that the overall mine proposal is able to be managed in a way that meets high environmental standards.

“Commissioners decided that the environmental costs for the 144 hectares are acceptable, but when it comes to the 12 hectares the minsters clearly have a different view.

“This decision comes on the back of the government’s proposal to ban new mining on conservation land – a proposal that we oppose, absolutely.

“In our opinion, such decisions are better made by an independent authority, such as the Environment Court. This decision politicises that process. Proposals to mine, or for any other resource-based economic activity, on conservation land and private land alike should be considered on a case-by-case basis depending on their relative merits and environmental impacts.

“It is also relevant that there are no emissions reductions for New Zealand, or the planet, resulting from this decision.

“These are significant numbers for the West Coast region which are now put at risk. It is a real and totally unnecessary kick in the guts for a region which has faced a lot of adversity in recent years.

“Whatever the outcomes the Ministers seek from this decision, those benefits were not apparent to the Commissioners, and they are not apparent to us,” Baker concluded. Q&M

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