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DIGGING&DRILLING MAY 2014 - JULY 2014 • Issue 8


AustralaSIA’s QUARTERlY Oil, Gas & Mining Magazine



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Editor’s Letter I would like to congratulate Gina Rinehart on her announcement of a $7.2 billion funding package for her Roy Hill Iron Ore project in WA’s Pilbara region. This is the largest funding package raised for a land based mining project in the world from a consortium of 19 international banks, including Australia’s big four and export credit agencies. Roy Hill is Australia’s largest mining construction project employing over 3,000 workers and has already started to mine high-grade material. On completion, this project may produce 55 million tonnes of iron ore a year. Welcome news for Western Australian jobs and local resource industry contractors and suppliers. Central Australia could become Australia’s next major oil producing region. Central Petroleum have tapped their first well producing high grade crude. The basin is roughly the size of France and has the geology to hold similar oil reserves to those found in Texas and the Gulf of Mexico. The company is preparing to drill a second well and says another significant discovery of Central Australia’s oil reserves would justify a pipeline to Alice Springs. Less than 1% of the basin has currently been explored.

Len Fretwell Publisher / Managing Editor Digging & Drilling Australasia

It has been reported that federal MP, Clive Palmer has requested permission from the Queensland government for Waratah Coal, a wholly owned subsidiary of Palmer’s Mineralology, to acquire the $3 billion T2 expansion of the Abbot Point coal terminal which was surrendered by BHP last November. This project is one of Australia’s most controversial and environmentally sensitive port developments that requires some dredging and spoils dumping within the Great Barrier Reef Marine Park. The Hon. Phil Edman MLC. Member for the Western Australia South Metropolitan Region and Government Whip in the Legislative Council has announced a proposed new Hydrogen Gas Plant for Western Australia. It has been proposed that a hydrogen production plant be constructed south of Corrigin, with the resultant gas being piped either through the Western Trade Coast or down to Bunbury Port. It is anticipated that the carbon dioxide extracted would be piped to Bunbury and connect with the Collie Hub Project. Should this project receive approval, the estimated $625 million plant would create approx’ 1,000 jobs during the peak construction phase, 600 on average and 130 jobs during operation. It is estimated that once operational, $1billion per annum in export derived revenue would flow through the Australian economy from this project. The Chinese Lunar Exploration Program (CLEP) launched a spacecraft with lander and rover, which successfully soft-landed on the Moon on the 14th of December, 2013. The China National Space Administration (CNSA) has announced that it intends to launch a manned mission to the Moon by 2020 and some space experts believe that China has intentions of establishing permanent mining operations on the moon. The Moon holds many minerals and a large deposit of helium-3 (He-3), a light, non-radioactive isotope of helium. Nuclear fusion caused by the burning of the sun’s hydrogen and helium gasses creates an explosive constant stream of helium-3 that is disbursed by solar wind. As the moon has no atmosphere, it has been constantly bombarded by helium-3 for billions of years and many scientists believe that this non-radioactive, elemental isotope could be used in fusion reactors to produce clean energy. We are always looking for interesting ‘Energy & Resource Sector’ innovation and news content so, please feel free to contact me direct with any news or content that may be of interest to our readers. I hope you enjoy reading this edition and as always, I look forward to your feedback. Regards

Len F retwell MAY 2014 - JULY 2014  DIGGING & DRILLING MAGAZINE  3



Digging & Drilling Level 28 AMP Tower Australasia 140 St Georges Terrace Perth WA 6000 Tel: +61 1300 284 637 Fax: +61 (8) 9300 9435 Feedback News inquiries Advertising inquiries • Mobile: 0417 001 080 Editor Writers GUEST Writer SPECIAL FEATURES

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Digging & Drilling Australasia welcomes comments and suggestions, as well as information about errors that call for corrections. We are committed to presenting information fairly and accurately. Disclaimer: Reasonable care is taken to ensure that Digging & Drilling magazine articles and other information are up-to-date and accurate as possible, as at the time of publication, but no responsibility can be taken for any errors or omissions contained herein. The opinions expressed are those of the authors and do not necessarily reflect the views of Digging & Drilling Magazine. The publisher, editors, contributors and related parties shall have no responsibility for any action or omission by any other contributor, consultant, editor or related party.


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Bobcat launches Bobcat® M-Series 500 platform loaders

Bobcat Company has announced the launch of its Bobcat® M-Series 500 skid-steer loaders and compact track loaders in Australia and New Zealand.

The versatile new range boasts superior durability, comfort and reliability and replaces the popular K series machines. The range includes the S510 (replacing the S150), the S530 (replacing the S175), the S550 (replacing the S160), the S570 (replacing the S185) and the S590 (replacing the S205). The T590 replaces the T190 compact track loader. The loaders feature improved digging and pushing power with performance enhancements that provide users increased uptime and improved visibility. Best-in-class pressurised interiors help to keep users clean and comfortable while the cab-forward design moves the operator closer to the attachment and provides unmatched visibility in all directions.

models are mounted to lift the arm’s front plate, which provides a sturdier mounting surface and better protection.

The highly manoeuvrable Bobcat® M-Series 500 skid-steers have a two-speed option Three control systems are available in the 500 which boosts the loaders’ maximum speed. models: foot pedals, the Bobcat® Advanced For hydraulic performance, the loaders are Control System (ACS) and the Selectable Joystick engineered for higher standard flow and Controls (SJC). With the SJC, the machine can pressure which give attachments more power. be operated in the ISO or H pattern. These The hydraulic bucket positioning option keeps handles move up and down in conjunction with the loader bucket level as it is raised to reduce the seat to reduce arm movement and operator fatigue. The joystick mounts also slide forward spillage. or backward to adjust to the preference of each Simple check points and superior design make individual operator. Similar to other M-Series it easier to perform maintenance correctly at loaders, the 500 models feature a 5-inch colour panel that allows the operator to monitor the proper intervals. performance. Roger Baker, product manager with Bobcat Company, said, “With enhanced operation, The 500 M-Series equipment also features maintenance and design, the re-engineered an improved cooling system with superior M-Series 500 loaders offer superior performance protection, dual-path cooling efficiency and and improved visibility. The machine’s hydraulic exclusive SmartFAN to keep the loader cool systems work faster and stronger to increase when working long hours. The new design operator performance. Design choices makes it easier to clean out the cooling system were made to ensure particular parts of the by allowing the operator to clean the area machinery need maintenance less often. The between the oil cooler and radiator. auxiliary hydraulic quick couplers on the 500

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Oil & Gas News highlights for the month

Stanley gas condensate project given go ahead by PNG government


Horizon Oil has been given the go ahead by the Papua New Guinea government for its Stanley gas condensate development project in the forelands of PNG’s Western Province.

WestSide Corp. Ltd. reports that, as operator of the Meridian gas fields near Moura in Queensland’s southern Bowen Basin in Australia, the first phase of the field’s expansion is on track to start within a month, when drilling begins on the first well of a six-well program.

PNG Minister for Petroleum and Energy Nixon Duban has formally notified Horizon of the decision of the PNG National Executive Council (NEC), Horizon stated, which has authorised Duban to sign the gas agreement with Horizon’s subsidiary company, Horizon Oil (Papua), and its fellow licensees on behalf of PNG.

WestSide’s managing director, Mike Hughes, said that the Phase 1 well program, involving six new production wells, would incorporate extensive recommended improvements in drilling procedures and practices to maximize drilling and production success. “Wells will be drilled, lined, and completed in a single seam and drilled in areas where there is good knowledge of faults and depth control to enable a high confidence of drilling in-seam using global best-practice steering techniques,” Hughes said. Key contracts for drilling, directional drilling services, cementing, completions, wireline logging, well-head and connection facilities, and civil earthworks have all now been awarded. WestSide has contracted with Silver City Drilling, PathFinder Directional Drilling Services (part of Schlumberger Drilling Co.) and Superior Energy Services for the critical drilling activities.

The NEC has also approved the benefit sharing arrangements among project area landowners and authorised the commencement by Duban of the development forum required under the PNG Oil and Gas Act. Horizon further advised the licensees have received notification of Duban’s intention to grant a petroleum development licence (PDL 10) and pipeline licence (PL 10) in respect of the Stanley project, stating, in accordance with the Act, it and its fellow licensees have requested Duban to grant such licences. Grant of PDL 10 is the final step in the completion of Horizon’s sale of 40% of its PNG asset to Osaka Gas and will trigger transfer to Horizon of the balance of the sale proceeds plus adjustments of approximately US$77 MM in total, Horizon stated.

WestSide and joint-venturer, Mitsui E&P Australia Pty. Ltd. plan to expand the Meridian gas field to supply increasing volumes of gas to Gladstone liquefied natural gas (GLNG) from 2015. Under the terms of the sales agreement, up to 65 Terajoules of gas per day will be supplied from Meridian to GLNG over 20 years at an oil-linked gas price.

Bow Announces Canaway Drilling Bow Energy has announced the commencement of exploration drilling on its Canaway Ridge coal seam gas (CSG) prospect in the Cooper-Eromanga Basin with the spudding of the Pebble Hill-1 well. The Canaway structure is about 80 km long and extends over two permits, ATP 794P and ATP 560P. Bow intends to drill two exploration core holes, with the Hobson-1 well scheduled to be spudded in late January on ATP 794P. Pebble Hill-1 has been spudded on ATP 560P. “This drilling programme in a new CSG exploration area compliments Bow’s CSG plays in the Surat Basin (Don Juan joint venture) and Bowen Basin (Comet, Norwich Park and Gunyah blocks),” Bow CEO Petroleum Paul Lipski said.





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CURTIS ISLAND LNG FACILITY Queensland Premier the Hon. Campbell Newman MP recently visited Santos GLNG’s Curtis Island LNG facility and the Premier had a lot to say on Domestic Gas Policy and the industry in general. Santos Managing Director and Chief Executive Officer, Mr David Knox hosted the Premier’s visit to the facility.


he following is an excerpt from the media conference transcript from the visit, which has been provided to D&D Australasia by the office of the Premier of Queensland.

of this jetty next year and that will be a wonderful occasion for everybody involved and a great occasion for Queensland. I will now hand over to the Premier to say a few words.

DAVID KNOX: Welcome everybody to Curtis Island, to the Santos GLNG site. A huge welcome to obviously Premier Campbell Newman to this site. I’m very pleased to be able to say today that, as you can see behind me, we’re 75 per cent complete on this project right now, a fantastic achievement for all of the Santos staff, the Bechtel staff, the Saipem staff who are building the pipeline and of course our upstream staff led by Fluor. The other major milestone which we have had very recently was at the other end of the island here we broke through with the tunnel.

QLD PREMIER: Well thanks very much, David. Good morning ladies and gentlemen. It’s an absolute pleasure to be here on Curtis Island in Gladstone today to see the amazing progress on this LNG terminal that will, in the not too distant future, see supplies of affordable, environmentally friendly energy going to the world. And there are other projects here on the island as well that will also be delivered over the next 18 months, again seeing large quantities of gas going to Asian markets, making this a powerhouse state, not just amongst the Australian states, but a leading gas exporter in the world. Ladies and gentlemen these sorts of projects are the things that are making Queensland the powerhouse state that it is today.

We now have a tunnel which goes to the mainland to this island for our pipeline. That was a major step for us. We’re obviously a proud Australian company, we’ve been operating in Australia now for 50 years. We’ve been operating in this State for very close to 50 years as well. We’re very committed to doing things, doing things well, doing it absolutely right in Queensland, working with our landowners, working with our farmers to make sure that we bring benefits, not just to my shareholders, not just to my staff but to everyone who is involved in this project, whether it be contractors, whether it be landowners, whether it be the Government. And obviously at the end of the day this is a mega project, it will continue to pay royalties and taxes for the next 30 or 40 years and in this State today I’m pleased to say we’ve spent over $5 billion dollars actually in this State, with Queensland companies, with Queensland firms. So for me, it’s a hugely important project for my company, it’s a hugely important project for this State. We’re making excellent progress as you can see behind us. I’d just like to thank everybody involved in getting us to this stage. We will see the first ship leave Curtis Island from the end

This is why Queensland is leading Australia’s growth amongst all the states, that’s why we saw three quarters of all jobs created in the nation in the last 12 months being created here in Queensland. One of the things I do need to reflect on today is that the gas industry has gone forward in Queensland because it had bipartisan support. It would be remiss of me not to acknowledge that the former Government, the Bligh Government, gave most of the project approvals for these massive projects, but that was with the strong bipartisan support of my team and I contrast that with the sad situation in other states where the industry has been becalmed, it’s been stalled and I’m afraid consumers interstate are going to see gas prices rise as a result of a lack of political support to take the projects forward. That won’t be a problem in Queensland and we want to see more projects like this. There’s a lot more gas in Queensland. There are many other opportunities to see these sorts of exports going to the globe.

I will be going to the United States in the next few weeks and one of the big things there, we will go to Houston and talk about what’s happening in Queensland and encourage investment in this State, further investment in the gas industry and I think that’s critically important. With the great success story here on Curtis Island and in the gas fields, we have a great story to tell. I also, just before I conclude, want to reflect that I think one of the achievements of my Government has been the GasFields Commission which has sorted out, in the main, most of the conflicts between farming and the energy industry. There’d still be concerns, of course, in some quarters but we have managed to see far greater harmony there and a real willingness for people to work together for the benefit of rural and regional communities in Queensland. So again, thank you very much for having me today David. Ladies and gentlemen, this is a world-class project which is putting Queensland on the map and it’s great to see the progress today and I thank all the staff, all the men and women who are working so hard for their hospitality today. REPORTER: What do you think about export restrictions given gas prices are tipped to rise? QLD PREMIER: Well this hoary chestnut comes up regularly. Ladies and gentlemen we don’t restrict the export of wheat and say we need some for the domestic market. We don’t restrict the export of cheese or wine, or any other commodity. We shouldn’t be doing that with gas. What we need to do is have the free market in operation without government interference, and therefore we will see people actually go and invest in gas. They’ll go and get more out of the ground and we’ll see supply increase and that will ultimately bring prices down. That’s the key to this. Siren’s songs of domestic gas reservation will not work. When governments interfere in the

market consumers ultimate pay even higher prices because there is then an investment strike. So, we have considered this matter in Queensland, Cabinet considered it back in 2012. We have ruled that out, it is not something we believe is appropriate. Instead, we will actively encourage more exploration and exploitation of gas resources in this State. We’ll be able to supply gas to the domestic market, we’ll be able to supply gas to our customers around the world, particularly in Asia, and that’s the way forward in Queensland.

than a lot of the other alternatives to power both Australia and Asia, and therefore I think you can also make a contribution to basically the quality of life and particular air quality in certain Asian countries are struggling with that aspect to. The really important role to play in the future growth of Australia and also Asia.

REPORTER: Can you elaborate on your first markets, your sales, and what sort of future dollars we’re talking about in sales?

DAVID KNOX: So, what will happen over the next two years on this site, we’ve got 3000 currently and say 50 per cent of them live locally as well. That will go down to about the number of people who will be permanently on the site – about 200 to 300. So it will reduce substantially as the construction ramps down on this site, however in the upstream fields, in the gas fields in the upstream around Roma and Fairview, that ramp down will be much slower because we’ll continue to be investing in compressors in new wells and pipelines as we go forward for the next 20 years.

DAVID KNOX: Yes, yes, so we signed two very large contracts, one with Petronas in Malaysia and the other with Kogas in Korea. These contracts will supply gas to the Malaysian Peninsula, the Korean Peninsula for the next 20 years. They run to 2035, so they’re 20 year contracts. They’re basically at oil-link prices, so they’re very good prices. So what this does is it basically allows us to unlock our coal seam gas fields in Queensland. It allows us to invest in this. It allows us to create about 10,000 jobs that we’ve done right now. And it also allows us to create a revenue stream for the Queensland Government and the Federal Government that will last let’s say for the next 20 years. And as the Premier absolutely just said, the key to this whole business around gas here is to unlock the resources we’ve got in Australia that we’re blessed with, and to do it and deliver into markets. And it’s by increasing supply that we will keep gas prices under control, and we’ll be able to drive both the export industry, which obviously this is about, but also the domestic gas industry and so manufacture in this country. 45 per cent of all manufacturers rely on gas. It is a reality. It is a fact of life that we need to keep that supply going both domestically and for the international market. The other thing is the Premier also said, gas has a lower carbon footprint

REPORTER: David with 3000 workers currently on site, what’s the layoffs likely to look like as you ramp up construction?

REPORTER: Premier, is that much of a concern for you that you’ve got a very large workforce here at the moment – roughly ten to eleven thousand I think when you put in all of those projects, that will be less than a thousand in a few years, but how’s that going to be effective employment and are you worried about what’s going to happen to that’s skilled work-force? QLD PREMIER: Well I’d say this, that the Government that I lead has had a very clear policy to promote economic growth. We want to supercharge the economy and we want to create those jobs, and the next big thing in Queensland, apart from more investment in gas, will be the Galilee Basin coal projects and we saw the very important approval for Abbott Point in the last few weeks. One thing I want to say today, because I haven’t been asked before, ladies and gentleman there is a very dishonest campaign run by certain groups. There is no spoil being


dropped on coral reefs. It’s not true. It’s bunkum, which is my favourite expression. The nearest reefs are 40 kilometres away. The Galilee coal projects will see billions-of-dollarsworth of investment, they’re akin to these gas projects, they’ll see eleven to twelve thousand people being employed during construction and then I think it’s at least in the range of four to six thousand when those mines are at steady state. We need to get on with those projects and this Government’s committed to do this. The other point I make is that already there are people who have left projects in Gladstone and in the gas fields and moved on to other gas and LNG projects around Australia. So they are a mobile workforce, they’ve got specialist skills and they go to where the projects are. This Government will do everything we can to see gas exploitation and development to continue in Queensland. There are other gas fields, there are other opportunities and we’re ready for that to happen and that’s again why I mention the trip to the United States. We’ve got a great story to tell, which I’ll be telling in Houston to American investors and the message is we are open for business. Particularly we want to be a powerhouse in energy and we want to be partners, particularly with American investors. REPORTER: Premier, a question about the environment with three projects on the island, conservation groups has come out today and said that Arrow Energy wants to be the fourth but should not be allowed to come here that enough’s enough, what would you say to that? QLD PREMIER: Well, I don’t agree. This is an industrial city and Gladstone has been an industrial port. I acknowledge there were some issues going back a few years ago with some of the works in the harbour but I believe there well in hand and that’s why my administration made changes to the Gladstone Port Corporation which I might add were criticised at the time but they were there so we made sure we did deal with the environmental issues properly.

REPORTER: So you expect that would get the nod? QLD PREMIER: Well, look we would love Arrow to proceed. It’s an investment decision for them, but the exciting thing is that is probably what’s gone on upstream of here. So Arrow had tenements or have tenements that are in more in the inner Darling Downs. I mean Mr Knox’s company is further west out towards Roma and the like so Arrow had some greater challenges going into higher value farming areas, more productive land and that is where there’d been significant angst in relation to the development of CSG. I was really, really, pleased to hear when I was in Toowoomba late last year at Community Cabinet to hear that there is an agreement being reached, between some of the fiercest opponents of coal seam gas in the Downs and Arrow Energy. What I’m saying is the GasField Commission has done its job, that we’ve brought people together, that a path of coexistence has been reached and a framework for agreement has been reached which is to the benefit of Arrow. So I hope they proceed, that is one of the most important things that this Government has achieved through the GasField Commission. REPORTER: Is there a dollar in this for everyone Premier? QLD PREMIER: Look, there is a dollar in these projects for all Queenslanders, the royalties for these projects will be powering Queensland forward for many decades. We’ll see schools and hospitals, great roads and all sorts of community infrastructure being built on the back of these projects. REPORTER: Can you see a lot of these problems in the Gas fields continuing? I say that in the context of I think you’re going to need 200 wells a year every year for the next 20 years, Santos will, I assume that everyone else will. At 600 wells a year, every year for the next 20 years, given the dramas I guess we’ve had thus far this is going to keep going for 20 years?

QLD PREMIER: Well that’s the point I’m making Andrew, it’s a very good question and I am delighted to actually have the opportunity to answer it. The Gas Field Commission is the big achievement of this Government in this space. I acknowledge the Bligh Government in terms of the overall approvals, what they didn’t get right was the issue about the rights of farmers versus energy companies and we believe we have gone a long way towards sorting that out. I’m not saying that you’ll get unanimous support these days, but as I said before, when I was in Toowoomba last year I had a meeting with representatives of the gas companies and also, probably some of the fiercest opponents of coal seam gas in the past, and much to my pleasure there was clear agreement on how the gas companies could access that land, and so this issue has been dealt with effectively by the Government, we are seeing the opportunities for everybody in Queensland to share in the benefits of this gas, and farmers get a fair deal and gas companies the product that they need, so I think that’s really important to note today. REPORTER: David, by 2035 do you have an estimate on how much royalties will come back to Queenslanders from this project? DAVID KNOX: It’s hard to say an exact number because it depends upon our price, but broadly speaking these contracts at $100 are worth about $120 billion, so you can see the royalties at 10 per cent, you can see on a quick back of the envelope calculation, the royalties that will come back directly to Queensland, they’re extremely significant. And I think one of the key things that I am very proud of, it’s not just about creating wealth, it’s not just about supplying a product gas both

domestically and to Asia – which is a lower carbon footprint- but ultimately it is about creating jobs. At the end of the day, we’ll create a lot of jobs here, we are going to be creating ongoing jobs, both operating this plant, but also in Roma and Fairview, which are regional jobs, they’re rural jobs as well, and they’re real jobs and they last for 20 to 30 years, so I am very pleased just to be able to be part of creating something that actually creates a lot of wealth and a lot of future for an awful lot of families here in Australia, and if we can do it, and we can do it well, and we always work with the landowners. And it’s by doing that and by showing real respect, we are genuinely working with them, and actually over time we’ve had good success. So we have over 600 agreements signed right now. We do occasionally have landholders who say that they don’t want us on their land, what we say very clearly is we will not come on your land without your support and approval, and when you say that, immediately the discussion changes to, well, maybe we should have a chat about it, and that’s how we operate, that’s how we work and will continue to do so.

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Shell ‘LEGO’ Floating LNG Platform 18  DIGGING & DRILLING MAGAZINE  JULY 2012





Uranium Mining NEEDED

South Australia hosts the largest resource of uranium in the world with 25% of global identified resources, leading Kazakhstan and Canada that share 12 percent and 11 percent respectively.


resently, global prices for nuclear industry have majority uranium are depressed. public support. Market analysts suggest this current price slump is due The results show that the to the convergence of sufficient majority of South Australians secondary supplies of uranium polled are supportive of mining, with fuel; the halting of Japanese uranium 54 percent in favour of nuclear production; and the impact of the final shipment further development and of down-blended Russian overwhelmingly support if nuclear weapons material in development provides local the Megatons-to-Megawatts jobs (62 percent). Across all categories, opposition towards program. uranium mining recorded The development of nuclear between only 11 and 28 power in Asia, Europe, and percent. North and South America will ensure a continuing demand These positive public attitudes for Australia’s uranium and towards the industry may be a the subsequent increase in reflection of the role uranium prices; even more so if politics mining has contributed in allow our uranium industry to South Australia over the past expand into a local nuclear fuel 75 years. cycle. There have been around 4200 The Australian Federal and shipments of uranium oxide State governments continue through the ports of Adelaide to dismiss the case for both and Darwin. The safety record further enrichment of uranium associated with uranium and the possibility of a nuclear transportation has been industry, based on their impeccable and while mine perceptions of public opinion. incidents have occasionally As South Australian Minister occurred, there has not been for Resources and Energy, Tom a single instance where public Koutsantonis, said: “It’s not or environmental safety has just a question of political will. been considered at serious The truth is you need a social risk. Transparent reporting licence for nuclear power. The and record keeping by industry Australian public don’t want and regulators of incidents highlight this. it.” However, a 2013 SACOME survey of 1214 randomly selected South Australians into community attitudes towards uranium and nuclear power suggests otherwise. Conducted through ReachTel, the survey indicates that within South Australia at least, both uranium and a potential

Even more interestingly, the SACOME survey found that more South Australians support the development of nuclear power in the State than oppose it: 48 percent of those surveyed said they supported nuclear power, less than one-third opposed it, and one-fifth were neutral.

Furthermore, 29 percent of respondents indicated they strongly support nuclear power and only 20 percent strongly oppose. In other words, there were more staunchly pronuclear than anti-nuclear. In response to what individuals believe are the opinions of the broader community, only 15 percent perceive the population to hold a positive view on uranium mining, with 30 percent indicating a negative perception and 38 percent were undecided. The survey also asked respondents to consider the current debate about climate change and indicate what role they saw nuclear power playing in Australia. Overall, 63 percent saw nuclear playing some role in the future of Australia’s electricity supply, with the majority indicating nuclear as an alternative to be considered and only 28% saying it had no role. Currently, nuclear power and the associated fuel cycle, with the exception of mining and milling, are illegal in Australia.

This is the view echoed by of a Standing Committee on key international nuclear Industry and Relations. This committee determined that companies. all impediments to uranium Mr Ivan Dybov, Vice-President mining should be lifted and of Rosatom International, a licensing and regulatory told SACOME that it’s not just framework be developed for about construction, but also the possible establishment “the creation of necessary of fuel cycle services. This infrastructure and training of report was followed in 2007 personnel”. by the Uranium Mining, Processing and Nuclear Energy So what is the next step in – opportunities for Australia?. realising Australia’s nuclear potential? However, as Mr Kuchel points out, “ultimately the Clearly, it’s time for the prohibitions that lie in the debate to be given serious Australian Radiation Protection consideration. and Nuclear Safety and the “We need government to Environment Protection and recognise that both attitudes Biodiversity Conservation acts and technology have changed would need to be removed and take a good look at current through legislation”. public opinion,” SACOME’s “But the results of SACOME’s Chief Executive, Jason Kuchel survey and comments by says. international uranium and “Part of this process would be to evaluate the current technologies available – including long term economics, environmental factors and the risk contingencies – and make the report available for public feedback, including the opportunity to ask questions.”

nuclear companies sends a clear message to our politicians: it’s time to see the possibility of nuclear power at least considered for future use, and put on the agenda for discussion.”

However, Director General of similar report was Author: Dayne Eckermann, SACOME the World Nuclear Association, A conducted in 2006 as a part Agneta Rising, commented to SACOME: “Australia’s wellequipped political, legal and educational structures mean that a reactor program could – with the support of experienced international partners – be started swiftly. Such a program would act as a growth engine for local and regional economies, creating employment and business opportunities over many decades.


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Semi-submersible Platform

The INPEX-operated Ichthys LNG Project has announced a major milestone for its Central Processing Facility (CPF).


Australia Seiya Ito and Ichthys he said. Project Managing Director “Successful delivery of the CPF Louis Bon. is of great importance as it is the centre of the Project’s Speaking at the event, Mr offshore development, with Ito said the ceremony was all future production being significant as it recognised The first dry dock hull block processed through this the introduction of the first erection was yesterday facility. large hull block to the SHI celebrated with a ribbon floating dock, where the CPF cutting ceremony in the “Today’s event is another will be constructed. Samsung Heavy Industries major step towards the (SHI) shipyard in Geoje, South completion of this world“The placement of the hull Korea, where the CPF is class facility by late 2015, and block marks the culmination being constructed. a major step in the delivery of huge fabrication efforts of the Ichthys LNG Project since the first steel plates The ceremony was attended were cut in January last year,” – one of the world’s most by INPEX president Director he INPEX-operated Ichthys LNG Project has announced a major milestone for its Central Processing Facility (CPF).

With topside dimensions of 150 metres by 110 metres, the CPF will be the world’s largest semi-submersible platform.


exciting and challenging developments.” The CPF is a very large floating facility that gathers natural gas and condensate from the Ichthys Field’s subsea wells. Gas will undergo initial processing on the CPF, which will be permanently moored at the field, to extract condensate and water and remove impurities in order to make the gas suitable for transmission. Most condensate will be transferred from the CPF

to the nearby floating production, storage and offloading facility (FPSO) for offshore processing, with the remainder sent to Darwin with the gas via the 889 kilometre gas export pipeline. Earlier this year on 19 February, a major milestone was reached for the FPSO when the Project celebrated its keel laying. With topside dimensions of 150 metres by 110 metres, the CPF will be the world’s largest semi-submersible platform.

Ichthys Concept


Once complete, it will be towed around 6,000 kilometres to the Ichthys Field in the Browse Basin, offshore Western Australia. Work is underway for all major Ichthys LNG Project facilities, including the Central Processing Facility, the FPSO, the subsea structures, flow lines and umbilicals, the Gas Export Pipeline, and the onshore LNG processing plant in Darwin.

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tie-up COULD CREATE new top flight

Australia gold


Australia could spawn a new mega gold producer if Barrick Gold Corp and Newmont Mining Corp spin off their Asia-Pacific assets, heating up competition with the country’s underperforming market leader Newcrest Mining Ltd.




arrick and Newmont have been holding friendly merger talks, but remain at odds over how to group mines each company owns in Australia, New Zealand and possibly Papua New Guinea and Indonesia into a separate company, sources close to the talks have said.

Newcrest has held the No. 1 spot on the Australian Stock Exchange since 2010, with total production this year seen at about 2.3-million ounces. Number two is Evolution Mining, a distant second at less than a half-million ounces.

However, the miner’s stock has lost three-quarters of its If the two companies’ Asia- value over the past three years Pacific mines were grouped as it has struggled with high together, annual output costs, disappointing output at could exceed 2.3 million its Lihir mine in Papua New ounces, challenging Newcrest Guinea and a 28% fall in the as Australia’s biggest gold gold price in 2013. producer and the world’s fifth A sharp drop in half-year largest. profit and a jump in debt also The new entity could also fuelled concerns it may need potentially gain a higher rating to tap the market for capital, among investors than it would while it reported an 11% fall receive within a combined in March quarter gold output Barrick-Newmont. from the previous quarter on Wednesday, well above the 7% “There’s huge investor appetite drop forecast by UBS. for an alternative to Newcrest,” said Eagle Mining Research Newcrest also said it had cut gold analyst Keith Goode. 208 jobs over the last quarter at its Lihir mine. “The next stages of growth for Newcrest are seen as either ARRAY OF MINES risky, as in the case for their assets in Ivory Coast, or too Australia was the world’s long term. What the Barrick- second-biggest gold producer Newmont assets in Asia-Pacific behind China in 2013, with offer is immediate production output of 10.5-million ounces, and cash flow, with growth according to ThomsonReuters through exploration potential.” data, but many of its biggest mines are in the hands of Anglogold Ashanti has also foreign-owned miners. considered spinning off its Tropicana and Sunrise Dam Newmont owns Australia’s mines in Australia into a biggest gold mine, Boddington, separate entity to benefit and is a 50-50 partner with from investor interest in an Barrick in the 800 000-ouncesalternative to Newcrest, but per-year Super Pit lode 700 km (440 miles) away. has yet to act.


Other assets include the Jundee and Tanami gold mines in Australia and Waihi in New Zealand. Newmont’s other main asset in the Asia-Pacific region is the Batu Hijau copper and gold mine in Indonesia. Besides its half-stake in the Super Pit, Barrick could roll its Porgera mine in Papua New Guinea into the fold, bringing with it close to 500,000 ounces. “If you have an Asia-Pacific-listed demerged asset, you would get strong Asia-Pacific interest and be more competitive for those investment dollars than otherwise in North America,” said Morgans mining analyst James Wilson. Still, there’s no guarantee a sizeable number of investors would drop Newcrest for a new Barrick-Newmont combination. “If it was to be listed here (Australia) and it was materially cheaper than Newcrest, then maybe you’d consider it, but I would say from what I’ve seen, Newcrest has the better asset mix than the proposed spin co,” said Darko Kuzmanovic, a portfolio manager at Caledonia Investments. Caledonia does not own Barrick or Newmont shares. Barrick gained 1.8% to C$19.37 ($17.55)in heavy trade on Tuesday after Goldman Sachs upgraded the stock to a “buy” from “neutral” and investors placed bets on whether it can pull off a bid for Newmont.


D&D Exclusive

Interview with Natasha (Kitty) Cann

I had the great pleasure of meeting Natasha (Kitty) Cann at the Momentum International Women’s Day Luncheon in March, 2014 at Crown in Perth, where Kitty was presented with the ‘Most Inspiring Woman of 2014’ award. This award joined the list of others Kitty has previously won. I enjoyed a detailed Q&A style chat about her mining background, her business success and the growing role of women in mining sector.

D&D Exclusive Interview

with Natasha (Kitty) Cann Len Fretwell with Natasha Cann

D&D: I know you have many thousands of mining Twitter followers but for the benefit of our energy and resource sector readers that may not know you, what is your background?

It taught me a lot about resilience and trust.

specializes in both mechanical and electrical maintenance planning and shutdown co-ordination, a highly sought after skill not readily available in the mining and resources industry. I was the first and, to the best of my knowledge, the only female maintenance planner to start my own company in Western Australia. D&D: You have been honoured the Most Inspiring Woman of 2014 and received the CMEWA Award. You also became a Telstra Small Business and Australian Mining Prospect Awards Finalist. Please tell our readers about these and your other major achievements.

I got my first opening into mining at Robe River as a store man and Haul Pac driver when I took some time out from the Regular Army. After I left Kitty: I was honoured to be awarded Kitty: Mining has always been part the army for good, I joined Agincourt the Women in Resources Award in of my life. It’s well and truly in my Mine as a maintenance planner. 2012, which lead to me being invited blood. I grew up in the rugged That’s when my career took off. to speak at the Women in Mining Pilbara as the daughter of a miner. Since then, I have been fortunate to Western Australia BHP Billiton Hard In fact, I’m a fourth generation miner work in mines in South Australia and Hat High Tea. That was a lot of fun. following in the footsteps of my across Western Australia, including Following that, I was invited to be great-grandfather, grandfather and in the Pilbara. I am unusual in that I the key note speaker at the Duxton father. As you might guess, I’m the have both electrical and mechanical in 2013 for the GBTA Symposium. I first female in the family to do the maintenance planning skills. This is was a finalist in two categories of the same but now that I have a daughter, significant, as it made me flexible and Telstra Australian Business Awards in meant I was not pigeon-holed into 2012: HTC Start Up and the Regional it’s possible I won’t be the last. either one of the trades or disciplines. Area. I’ve also had the great honour of being a finalist in Australian My career has been somewhat of In my current role, as a Business Mining Prospect Mining’s Female of a jigsaw puzzle. There are many Process Data Coach, I give first line the Year in 2012. pieces to it, yet each one fits perfectly. I started my career in the support to 1SAP end users to help Australian Defence Force, where ensure adoption and sustainability Beyond work, I won a small I served more than a decade in of standard processes and effective business award in 2008 for NINKIPP the Australian Regular Army and system use. Very simply, I answer the Photography, my other passion. However, empowering women, the Army Reserves. This is where I “how do I?” questions of the users. and men, through mentoring is my honed my skills in planning, analytics, As well, I have a business, NMCann proudest career achievement and project management and network Pty Ltd, which I established as a result greatest skill. For the last 10 years, administration. That experience of opportunities I identified while I’ve been mentoring people new to gave me the technical competence to working as a maintenance planner. mining, as well as those with extensive succeed in mining as a maintenance NM Cann helps mining companies industry experience to stay focused planner without a trade. It also to boost efficiency, productivity and and on-track with their careers. I’m instilled the values of determination, profits. The business is unique as it passionate about seeing others commitment and of never giving up.

enjoy success in the industry too. My objective is to improve the ratio of women in mining, particularly in the trades, maintenance and planning.

recognition from these awards who are employed within the mining encourages other women to have sector? Those who relocate with faith in the opportunities available their husbands and partners to a if they are willing to have a go. As mining site? Both? Why are they well as taking opportunities, I also important and is there a difference Last year I established two new live by certain values. Trust is one. I in their roles? mentoring programs – Mining make myself available and people Mentors and Mining Mums. Both are know they can rely on me. This has Kitty: The women I mentor vary free career mentoring services open been invaluable in developing and in their roles but all are connected to women and men, which I run in enhancing my business relationships to the mining and resources sector my own time to help people reach and earns me respect from those I in some way. Many are women the personal and professional goals work with. For example, former considering employment in the they previously thought out of reach. colleagues from many areas I have mining sector, or who are already worked still call me for advice on employed in the sector. They are I have been extremely fortunate to maintenance and systems. They know also mums returning to the sector find an industry that I love, which has they can rely on me to respond to after maternity leave or after taking given me enormous opportunities, their needs promptly, even in the a break to raise their children. Some especially to support other women. dead of night. are women who relocate with their My skills are unusual. I don’t have partners to a mining site, or who trades experience. However, my To inspire others, work with purpose. have partners working on a FIFO expertise in planning, analytics, My purpose is to be an effective basis. I do not differentiate between project management and network ambassador for women in resources women’s situations as every person administration gave me the technical so that I encourage others to enter I mentor has their own needs and competence to succeed, paving the the sector. In practice, working challenges, as we all have, no matter way for other women to do the same. with purpose means making a what our job or where we live. All contribution every day, however careers add value to the individual When I started my business, NMCann, small, to the people around me. I and their families, and the worth of I was one of only about 20 women have found lots of avenues to do this, this needs to be recognised. maintenance planners in Australia. such as by being part of a stimulating The contracts I secured with global community, industry and women’s What is important is to make sure mining giants were milestones, as groups and contributing to what’s that there is support and guidance were the two proprietary products I going on in the industry through for any woman, or man, no developed: The 6Ps of Planning and forums, as well as through my matter what the reason for their the Safety Dance. I’ve ju st had my mentoring. I have personally been involvement in the mining sector. For first child – my daughter Matilda, inspired by people who have deep instance, I once received a call from so her arrival is of course a major knowledge of their subject. Seeing a graduate female engineer about personal milestone and achievement their expertise in action inspired my to start her first onsite job asking, for me. thinking that to accomplish the same among other things, where she could level of expertise, or higher, I would purchase high visibility safety socks. D&D: In your opinion, what does it need to work in a greater range of Although this seems insignificant, if take to inspire others? mines. So, another way in which she had asked the question onsite, the story would have followed her Kitty: If you want to inspire, work we can inspire others is to pursue career. Asking in a safe environment out what is important to you – your higher goals for ourselves. One of my saved her embarrassment and time values – and live by them. Lead by values is constant growth to develop searching for a non-existent product. example and never be afraid to have new skill sets as I thrive on being This is the sort of support that people a go. If you demonstrate what’s adaptable, knowledgeable and an need. possible, others will see the same. I expert in my field. hope my example will inspire other women, showing that they, too, can be successful in this industry.

Another element I value is empowerment, which is why I mentor people. I want to see others succeed too. I admire others’ ability to coach The awards I have received are and foster a team. People who lead just one example of this. I’ve been efficient and harmonious teams are nominated for some awards and put always highly regarded, and rightly my hand up for others. If I hadn’t so. responded to those opportunities, I wouldn’t be answering your D&D: Who do you refer to when questions today. I hope that the you say “women in mining”? Those

D&D: What are some of the main challenges you have faced in mining? Kitty: When I got started in mining, I quickly realised there are many similarities between working in a mine in, say, the Pilbara and in the military. Even with their many upsides, careers in mining and in the military can be challenging and sometimes lonely. Both involve

D&D: What advice would you offer to women that are already or are considering working in the mining sector? Kitty: Mining is a great sector for all people, including women with children. As it’s a dynamic and complex sector, it offers enormous opportunities across a wide range of roles and skills with great pay and the chance for women to break new ground. Kitty in front of Reclaimer at Finucane Island, Port Hedland

working in close collaboration with colleagues in often isolated locations. Team work is the key to holding it all together. Know who is a leader, who is a navigator and what works best for all people and personality types in the “mining” dynamic. One of the biggest challenges was having a limited number of people at the mines to turn to for career advice and support. That’s why last year I started Mining Mentors and Mining Mums, my no-cost, confidential mentoring services that help people to advance their careers in mining. There was also the challenge of working in a male dominated industry. I started many shutdown meetings as the only female in the room. I never allowed this to bother me, and spoke up, contributing to discussions to earn credibility so that colleagues were able to look past the fact I am not male. Another challenge was to find a balance between work and life. Now that I’m a mum, life has changed. Before having my daughter, my work, business and mentoring took up lots of time. I loved it all, but I always made sure that I kept up with my friends, family and my other passion, photography. I developed a love of nature and landscape photography as a child growing up in the Pilbara. Photography allows me to escape and enter a whole world different to mining, although it is still connected to the land.

My advice is to have a go. I have a motto, “The Art of Can Do,” which is about taking the opportunities available. Build strong relationships through collaboration. These will last you throughout your career and life experiences. Find a mentor, someone you trust to give you straightforward, honest advice and guidance.

noticed by and perhaps employed by. Sign up for Twitter and utilize the hashtags #jobs, #mining, and #FIFO. Twitter is the new medium for cost effective advertising for vacant positions. You can also create and manage lists to define and create credibility for your name and profile. Listen and watch carefully to what’s happening in your workplace. When you are tuned in, you’ll have opportunities to contribute in ways that perhaps you hadn’t considered before. Join groups to meet likeminded people. I am a member of the Women on Boards Community group, the Women in Mining Network (WIMNET), Women in Mining WA (WIMWA), and Australian Women in Resources Alliance Mentoring (AWAER). Plus, I am still actively involved in the Defence Alumni Network.

Lastly, have a defined two, five and 10 year plan with your partner, friends and family. Love and support Be seen. Get out there – don’t sit in are paramount in this industry. your office all day. Speak to people, There needs to be a reason why we get to understand what they do, their accept long stints away from home. challenges and needs. Everyone who works in the industry, or who is seeking to work in the Be good at what you do. When industry, needs to have a purpose or you gain respect for your skills, goals that their work will help them your gender becomes irrelevant. to achieve. Contribute to improvements in the productivity of the business you work My husband Marc is the main reason for, or the efficiency of the company’s I am talking with you today. I want to workforce, so that you add value to thank him for all his love, direction the company’s bottom line. Keep a and support. record of what you have achieved so you can discuss your outcomes with your boss or at your performance appraisal. Build credibility by speaking up. Contribute to meetings, and keep up with what’s happening in mining. It’s vital to be connected through social media, websites and events to keep up with trends, learn about emerging technologies, share ideas and experiences and access support and mentoring. I’m actively involved in Facebook, LinkedIn and Twitter. Create a LinkedIn account and start following companies you wish to get


Interview by Len Fretwell

Pushing the New Frontier of Deepwater in Asia

The 3rd

Deepwater Asia Congress Indonesia

July 10-11 2014 Jakarta Indonesia

Event Features The only commercial conference dedicated to deepwater industry in Indonesia !

Learning the latest developments in Indonesia deepwater markets Understanding Indonesia deepwater regulation environment & tax incentives Updating Indonesia major deepwater & offshore projects progresses from operators &EPIC Examining key offshore markets in Southeast Asia: Malaysia, Vietnam, Myanmar and so on. Analyzing the submarkets development prospect Providing an effective learning platform for advanced technology Discussing and addressing the challenges faced Networking with local government & key offshore players


July 10


• Offshore & Deepwater Policies & Regulatory Framework • Indonesia Offshore/ Deepwater Potential & Prospect • Panel Discussion: Unlocking the Deepwater Potential in East Indonesia

Afternoon • Offshore & Deepwater Development in Foreign Countries • Indonesia Gas Market & Infrastructure Updates • Financial & Legal Contract Issues

July 11


• Major Indonesia Offshore Projects & Operators Showcase • Contractors’ Efforts to Promote Indonesia Offshore & Deepwater Fast Development • Panel Discussion: How to Optimize Deepwater & Offshore Project Operation?

Afternoon • Offshore Submarket Analysis and Prediction • Technical Measures to Enhance Offshore & Deepwater Project Efficiency

keynote Speakers at DAC 2014 Adhi Wibowo, Head of Center for Geological Survey, Geological Agency, Ministry of Energy and Mineral Resources, Indonesia Ahmad Hery Sultoni, Area Manager, Deepwater Operations Gendalo and Gehem at Chevron Indonesia Dinar Indriana Khoiriah, Senior Project Coordinator, Planning & Coordination Department, INPEX Masela Abadi FLNG Development Project Graziano Capone, Operation Geology Team Leader, Eni Indonesia Ignatius Tenny Wiboyo, President Director, Pertamina Hulu Energi Erwindo Tanjung, Drilling & Workover Manager, Pertamina Hulu Energy ONWJ, Indonesia Robert Ziegler, Head Deepwater Drilling Technology, Petronas Carigali Shd Bhd Herman Darnel Ibrahim, Board Member, National Energy Council (DEN) Tammy Meidharma, President Director, Nusantara Regas Dr Budi Dwisakti, PT. Wood Group Kenny Indonesia Dr. Alan Wang, COOEC Contacts Informaiton: Dora Wang Emial: Tel: +86 21 58300710 ext 8045


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Digging & Drilling Issue 8, May - July 2014 edition  

Digging & Drilling Australasia print and on-line magazine is a comprehensive Australasian, 'Oil, Gas & Mining' publication featuring artic...