DIGGING & DRILLING Magazine

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D&D JAN-MAR 2020 • ISSUE 27

AUSTRALASIA

AUSTRALASIA’S QUARTERLY OIL , GAS & MINING MAGAZINE

RIO TINTO’S MINE OF THE FUTURE OIL & GAS SECTOR TECH REVOLUTION RESOURCES TECHNOLOGY SHOWCASE 2019 THE NEW REVOLUTION IN CCTV

Editor’s Letter Western Australian resources companies have rallied support for bush fire relief. Andrew and Nicola Forrest’s Minderoo Foundation have made a $70 million bushfire ‘relief and recovery’ donation for fireaffected communities on Australia’s east-coast which includes $50 million for a Fire Fund project. The couple want to grow this fund to $500 million with the help of other donors. Woodside energy, Chevron, Saracen Mineral Holdings Limited and South32 have also donated over $3 million bush fire relief efforts on the East Coast. These are all very generous donations, but much more help is needed.

The Red Cross Disaster Relief and Recovery Fund was set up to enable Red Cross to help people prepare for, cope with and recover from disasters - whenever and wherever they happen. Kindly dig deep and donate to the Disaster Relief and Recovery Fund via the Red Cross website; www.redcross.org.au.

LEN FRETWELL Publisher / Managing Editor Digging & Drilling Australasia Magazine

Dealing with unprecedented fires of this magnitude is highly complex: for those immediately affected by it on the ground, to those working to prevent this from happening in the future through progressive legislation.

Australia’s current and former leaders have been ridiculed in the public domain for their failings in dealing with this important issue, while the effect is global and as such, needs to be addressed globally.

Australia currently contributes approximately 1% of global emissions annually and has done so for the past 60-years. It is important to note that China contributes 27.2%, USA contributes 14.6%, India contributes 6.8% and Russia contributes 4.7% of global emissions annually. Emissions are a global phenomenon and it is doubtful that the removal of Australian emissions over the last 60-years would have significantly changed the current droughts and severe weather patterns.

There is a lot of good energy and resources sector news coming out of Western Australia. Australia has become the largest annual exporter of LNG and Western Australia contributes 57% of the total annually.

Western Australian Lithium will exclusively power BMW electric vehicles into the future and Perth Mint gold sales recently reached their highest level in three years with strong demand from Germany.

The former Ellendale diamond mine area in tWA’s West Kimberley is heading towards a new lease of life.

Mines and Petroleum Minister Bill Johnston has announced that Gibb River Diamonds has accepted his offer to apply for new tenements at Ellendale and has invited India Bore Diamond Holdings to apply for other tenements at the site. The two open cuts at Ellendale, about 135 kilometres east of Derby, produced almost 1.3 million carats of gem and industrial-quality diamonds from 2002 to 2015. During operation, Ellendale produced about half of the world’s Fancy Yellow diamonds. Geological re-examination of the ground confirms there are prospects of further discoveries.

Oil and gas companies are finding innovative ways to capitalise on the benefits of virtual reality (VR) technology, according to GlobalData, a leading data and analytics company. The company’s latest report ‘Virtual Reality in Oil & Gas - Thematic Research’ details how oil and gas companies using VR for subsurface studies, training and simulation, and for developing and improvising processes and products. Visit store. globaldata.com to read this report.

This year the Morrison Government has introduced a number of new measures to strengthen the Australian economy in 2020. Among these new measures, Federal government agencies will start paying e-Invoices within five days or pay interest on any late payments. The five-day e-Invoicing payment policy will apply to contracts valued up to $1 million, where a supplier and a Commonwealth agency both use the internationally established framework for delivering and receiving invoices in an electronic form. Also, employers will no longer be able to use salary sacrificed contributions to satisfy their superannuation guarantee obligations.

These and some other important new measures which come into effect from 1 January 2020 building on the largest tax cuts in more than two decades, vital support to farmers and communities affected by natural disasters and more funding for aged care since their election.

Best regards

Len F retwell Len Fretwell Publisher/Managing Editor

www.diggingdrilling.com

@DigandDrill

WHAT’S IN THIS ISSUE »

IN THIS ISSUE 3 EDITOR’S LETTER 6 RESOURCES TECHNOLOGY SHOWCASE 2019 10 NEWS IN BRIEF: OIL, GAS & MINING NEWS HIGHLIGHTS FOR THE QUARTER 12 THE NEW REVOLUTION IN CCTV 18 RIO TINTO’S MINE OF THE FUTURE 23 KEY QUESTIONS FACING OIL AND GAS COMPANIES OPERATING IN IRAQ 27 HEART ATTACK VICTIM RESCUED FROM REMOTE MINE SITE

DIGGING & DRILLING PO BOX 7566, CLOISTERS SQUARE WA 6850 AUSTRALASIA TEL: +61 1300 284 637 FAX: +61 (8) 9300 9435 FEEDBACK INFO@DIGGINGDRILLING.COM NEWS INQUIRIES EDITOR@DIGGINGDRILLING.COM ADVERTISING INQUIRIES LEN.FRETWELL@DIGGINGDRILLING.COM • 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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Moments

MOMENTS IN PICS »

Resources Technology

Showcase 2019

7  DIGGING & DRILLING MAGAZINE | JANUARY - MARCH 2020

RESOURCES TECHNOLOGY SHOWCASE 2019 Resources Technology Showcase 2019 brought together an unprecedented number of executives from the mining, oil and gas sectors to Perth, WA. This inaugural free event - hosted by Seven West Media - held at the Perth Convention and Exhibition Centre in November 2019 featured public policy experts, academics, senior public servants, industry regulators and politicians from across Australia. Resources Technology Showcase 2019 (RTS2019) was a public event showcasing the technological breakthroughs which have made Australia’s energy and resources sectors the most innovative and competitive in the world.

The theme for the event was “Reimagining Resources” and delegates were shown world-leading technology of the most innovative oil, gas and mining companies. This unprecedented gathering of mining, energy and technology leaders delivered two days of insights into how artificial intelligence, augmented reality, data analytics and autonomous transport are changing the face of energy and resources sectors globally.

WesTrac installed a 785D haulage truck, featured on the front cover of this issue and a Panther Series II low loader carrying a D9T Dozer

at Elizabeth Quay as part of RTS2019.

The Hon. Mark McGowan MLA, Premier of Western Australia opened the event in front of over 800 delegates and The Hon. Bill Johnston MLA, Minister for Mines and Petroleum, Energy, Industrial Relations and Rebecca Brown, Director General, WA Dept. of Jobs, Tourism, Science and Innovation were also present to represent the WA Government.

Leaders in the industry spoke of how they are building technology into their future projects during this two-day event and It was made very clear that technology isn’t a new way forward, it is the only way forward for the energy and resources sectors.

Industry keynote speakers included; Mike Henry, Chief Executive - Elect BHP, Zoe Yujnovich, Country Chair and Executive Vice President, Shell Australia and APPEA Chair, Peter Cole-

man, Chief Executive and Managing Director, Woodside, Jean Savage, Vice President, Surface Mining & Technology Division, Caterpillar, Al Williams, Managing Director, Chevron Australia, Elizabeth Gaines, Chief Executive, Fortescue Metals Group, Hitoshi Okawa, President, Director Australia, INPEX, Santi Pal, Head of Group Technical – Mining, Rio Tinto and Katrina Troughton, Managing Director, IBM Australia and New Zealand and more.

up-skilling and education is crucial to the successful transition of people to the jobs of the future.

School excursions were also invited for both, the students and the teachers to experience behind-the-scenes insight of the new energy and resources sectors technology. Many felt that apart from being an impressive event to attend, it demonstrated the ways technologies of today are transforming the energy and resourcPanel sessions displayed industry leader in- es sectors and shaping the jobs of tomorrow. sight into the future of LNG, hydrogen, Robotics, Automation, Decarbonising technologies This were many opportunities attendees to enand Artificial intelligence and resources tech- gage with other delegates and industry leaders, nologies and more. Automation and techno- whilst enjoying the best in West Australian prological advancement were often mentioned in duce and entertainment. discussions and speeches at RTS2019 as this can be a source of anxiety for employees. It For more information go to; rtsperth.com was suggested that good change management,

JANUARY - MARCH 2020 DIGGING & DRILLING MAGAZINE  9

NEWS IN BRIEF »

OIL, GAS & MINING NEWS HIGHLIGHTS FOR THE QUARTER

WESTERN AUSTRALIA STATE APPROVAL FOR BILLION-DOLLAR WESTERN TURNER SYNCLINE IRON ORE PROJECT More than 1,000 jobs for Western Australians to be created after State Government approves Rio Tinto’s Western Turner Syncline Phase.

The McGowan Government has approved Rio Tinto’s Western Turner Syncline Phase proposal - a $1 billion project expected to create more than 1,000 construction jobs in Western Australia.

The new phase of the Western Turner mine, about 35 kilometres north-west of Tom Price, will enable Rio Tinto to sustain approved production of 30 million tonnes a year. Construction work includes a new crusher and a 13 kilometre-long overland conveyor to transport crushed ore to existing transfer infrastructure.

More than 1,000 workers are expected to be employed at peak construction, with the extension allowing Rio Tinto to sustain the current workforce at its Greater Tom Price hub.

Construction is scheduled to begin early next year with the first ore expected to be delivered during the third quarter of 2021. Most of the technology and equipment needed to build the Western Turner proposal will be manufactured in Western Australia, creating more jobs for local workers.

Rio Tinto was a member of the Premier’s steel fabrication roundtable, which was convened to create more opportunities for local steel fabricating businesses on major projects.

NATION’S SECOND WASTE-TO-ENERGY PLANT TO BE BUILT IN WA A second waste-to-energy plant will be built in Perth’s Western Trade Coast (WTC), making Western Australia home to the country’s first two energy-from-waste facilities.

The project in the WTC’s Rockingham Industry Zone is expected to create about 350 jobs and will turn Perth household and other waste into renewable power.

Consortium partners in the East Rockingham Resource Recovery Facility (ERRRF) announced that work is expected to start in January 2020 on the $511 million facility.

The plant is 4.5 kilometres south of the Avertas waste-

to-energy plant which began construction in the Kwinana Industrial Area, also part of the WTC, in March. The facility will generate 29MW of baseload renewable energy, enough to power more than 36,000 homes, and reduce emissions by more than 300,000 tonnes of CO2-e a year - the equivalent of taking about 64,000 cars off the road.

The DevelopmentWA Industrial Lands Authority development, is expected to employ about 300 workers, including apprentices, during construction and up to 50 operations staff on an ongoing basis once complete. The Western Trade Coast is a 3,900-hectare area between Rockingham and Munster designed as Australia’s industrial land gateway to global industry and trade with powerhouse economies including China and South East Asia.

SODEXO SECURES $15 MILLION CONTRACT AT ARGYLE DIAMOND MINE Sodexo, world leader in quality of life services, has announced its contract at Rio Tinto’s Argyle Diamond Mine has been renewed for another two years, valued at $15.4 million.

It’s a move that further cements Sodexo’s commitment to Rio Tinto, which also includes delivering services to the leading global mining group’s Pilbara operations in Western Australia.

Sodexo will work with Rio Tinto as it transitions the iconic diamond mine, known for its rare gems, from a production site into rehabilitation, with the almost 37-year-old mine set to close at the end of 2020. The contract was signed in November 2019, with the renewed period beginning retrospectively in February 2019. Sodexo is engaged until January 2021.

Sodexo will continue to deliver services to the site in the remote East Kimberley region of Western Australia, including managing aerodrome operations, village and industrial cleaning, village catering, retail, accommodation management, bus services, onsite industrial laundry operations and handyman services. One of Sodexo’s recent focuses has been re-energising the site to enhance facilities and provide economic outcomes, thinking beyond standard village operations.

As Argyle Diamond Mine moves into its rehabilitation phase, Sodexo will work with Rio Tinto on areas including operational consolidation, while engaging with all stakeholders to support this transition.

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To address this concern, Ai group has combined artificial intelligence and deep machine learning algorithms to develop AIVI (Artificial Intelligence Visual Investigator). AIVI can be combined with existing CCTV infrastructure, where its Ai algorithms will examine data feeds and deliver extraordinary analysis, with great accuracy and profound precision, in providing real time alerts for immediate action.

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OIL & GAS SECTOR TECH REVOLUTION Deploying digital technologies to help drive growth was a strong thread running through the AOG Survey responses. It is also one of the five global oil and gas megatrends identified by the CSIRO.9 In its report, Oil and Gas: A Roadmap for Unlocking Future Growth Opportunities for Australia, the five megatrends the organisation believes will have a significant impact on the development and success of the Australian sector over the next two decades are: energy hungry; carbon constrained; socially concerned; more complex and costly; and digitally enabled.

“Rapid improvements in digital technologies hold the promise to dramatically improve the way businesses operate … [through] tools that improve how they create, deliver and capture value,” the CSIRO report notes. “The challenge for this sector is the integration of multiple technologies to capitalise on the next wave of the digitalenabled future.” 10 The AOG Survey found that increasing investment in new technology and innovation was the highest priority for the respondents’ organisations over the next three years (narrowly followed by increasing collaboration with other industry organisations). Almost 45 per cent of respondents classified new technology investment as either a high priority or their highest priority, with just 23 per cent considering it a low or non-existent priority.

needs to throw off some of its reluctance to embrace these new ways of working. “The oil and gas industry is a conservative industry,” he says. “It doesn’t change anything unless it absolutely needs to change anything, and what happened in 2014 forced that change. Now operators are looking at technologies such as digitalisation, artificial intelligence and predictive maintenance to ensure that their facilities can continue to run with fewer stoppages and no downtime.”

The rise of technology is also coinciding with the end of the exploration and construction phases of many of the region’s large projects. As one AOG Survey respondent noted: “Australia is now the world leader in LNG production.

We have moved into the operations and maintenance phase which will last for decades. Now is the time to invest in new technologies, business models and innovation.”

Beyond implementing the separate technologies, the oil and gas industry is also moving into “Industry 4.0”, or integrated operations. Put simply, Industry 4.0 (also known as the Fourth Industrial Revolution) is the ability to combine data sets from different activities to enable interoperability and optimisation of each stage of the process. While integrated data and open process control technology is in its infancy, these new operations will allow a single, multidisciplinary team to oversee the entire process chain.

Emerging digital technologies such as machine learning, “This is probably a 10-year transition,” says Cullinane. artificial intelligence and data analytics will help production “Pockets of the industry are very, very good and getting and improve productivity by allowing companies to some great results. Woodside, for example, has started produce more with less, in turn helping keep costs under to use artificial intelligence for knowledge management in control. According to the World Economic Forum,11 digital both engineering and operations. But the industry has not transformation initiatives have the potential to bring $US1.6 yet moved to deploy that AI in an integrated way.” trillion in value to the oil and gas industry, its customers Digital-services packages, from connectivity and software and wider society between 2016 and 2025. If “operational to simulations and web systems, will also benefit the oil constraints are relaxed and ‘futuristic’ technologies” are and gas industry by enabling more efficient completion considered, the World Economic Forum estimates the of projects. This is especially true with the development value of digitalisation could rise to $US2.5 trillion (see Castoron Pipelay Vessel of “digital twins” for new projects.

Using digital technology, Digitalisation Breakout). an artificial digital twin can be created and used remotely However, as Paul Limpitlaw, Director of Industry Sales for training, commissioning and start up. “Siemens, for Development, Oil and Gas at Siemens notes, the industry example, has created a virtual walk-through of a new plant,” 14 DIGGING & DRILLING MAGAZINE | JANUARY - MARCH 2020

Limpitlaw says. “So, from a training and operating point of view, workers and operators can become familiar with the facility even before it’s commissioned. From concept to completion, I think that time is going to be greatly reduced as these digital services grow value into the customer solution.”

No matter how the productivity question is answered here in Australia, there is also the need to consider how we integrate with the global market and avoid unnecessary “bespoke” local solutions that might impede innovation, competitive performance and trade. Wherever possible,

local oil and gas companies should look to collaborate to achieve a greater level of standardisation and collectively apply international standards locally. “We need to facilitate our supply chain and help innovative small businesses enter global markets, as Australia is too small on its own. We operate in a global market,” says Taylor, “and therefore wherever possible, we should adopt international standards. Our supply chain should see the world as their market not just the local oil and gas industry. This need is further highlighted by the fact that digital data and automation technologies are increasingly facilitating operations beyond borders.”

Source: AOG Survey

THE VALUE OF DIGITALISATION US $1 trillion

US$580$600 BILLION

POTENTIAL VALUE OF DIGITALISATION FOR OIL AND GAS FIRMS

TO ACCRUE TO UPSTREAM COMPANIES

US$260$275 BILLION TO DOWNSTREAM COMPANIES

US$100 BILLION TO MIDSTREAM FIRMS

Benefits worth about US$640 billion for wider society

US$170 BILLION

US$10 BILLION

US$30 BILLION

US$430 BILLION

OF SAVINGS FOR CUSTOMERS

OF PRODUCTIVITY IMPROVEMENTS

FROM REDUCING WATER USAGE

FROM LOWERING EMISSIONS

Environmental benefits include:

REDUCING C02 EMISSIONS

SAVING 800 MILLION

BY APPROXIMATELY

GALLONS OF WATER

1,300 MILLION TONNES

AVOIDING OIL SPILLS EQUIVALENT TO ABOUT 230,000 BARRELS OF OIL

Source: World Economic Forum 12

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Distance to site Passenger numbers per week Runway Length Runway Width Pavement Concessions Average Summer & Winter Temperatures Passenger Comfort & Service Back Up services & Aircraft Manufacturer Support

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KOODAIDERI IRON ORE PROJECT - RIO TINTO’s MINE OF THE FUTURE The US$2. 6 billion Koodaideri iron ore mine near Newman in Western Australia’s Pilbara will be Rio Tinto’s most technologically advanced mine and is set to become the most technologically advanced iron ore mine in the world.

The mine commenced in 2018 and construction of the Project will take approximately three years and is expected to create more than 2,000 jobs during construction and 600 ongoing production roles.

The mine will have a capacity of 43 Mt of iron ore a year, which is expected to commence in late 2021.

The Koodaideri project is located around 110 kilometers from the town of Newman, about 32 kilometers north-west of Rio Tinto’s Yandicoogina mine and will incorporate the latest industry hightech advances and will utilise a high level of

automation and robotics. The project area consists of three mine pits, K75W, K58W and K38W respectively, of which the K58W pit is proposed to be mined first, followed by K75W and K38W.

field for water supply; non-process infrastructure, bridges, access roads and a new airport. There will also be an accommodation village and temporary construction camps, 170km of new railway including rail sidings and junctions, level crossings; rail maintenance track; radio base stations and fibre optic cabling; signalling, communications and asset protection system upgrades; and construction facilities.

The Koodaideri mine will use conventional opencut method of mining using autonomous truck and shovel utilising autonomous trucks, trains, and drills.

It will also use integrated advanced mine automation and simulation systems as part of Rio Tinto’s Mine of the Future program. Ore will be dry-crushed inpit before conveying to the 40Mtpa central screen processing facility. The processed ore will then be conveyed to the port of Dampier and Cape Lambert for exporting to clients.

Integrated property and construction group Pindan has been awarded a new A$90 million contract to construct an operations village for the project and Worley Services Pty Ltd has been appointed as the projects Engineering, Procurement, Construction Manager (EPCM).

The development of the Rio Tinto Koodaideri iron ore mine and associated rail infrastructure extending from the Koodaideri mine to Rio Tinto’s existing rail network will include; a stockyard with associated stackers and reclaimer; train load-out facility; a 220kV transmission line connecting to the Yandicoogina transmission line; a 220/33kV switchyard; site control systems and communications, fire detection and security; a bore 18 DIGGING & DRILLING MAGAZINE | JANUARY - MARCH 2020

Rio Tinto Driverless Train

This is a large scale, low-cost, high-quality project, producing replacement tonnes and forming a new production hub for Rio Tinto in the Pilbara for decades to come. Rio Tinto Iron Ore chief executive Chris Salisbury said "We’ve been building mines in the Pilbara for over 50 years, and subject to final approvals, Koodaideri will incorporate all of that knowledge to enable us to build the smartest, safest and most efficient mine we’ve ever constructed. The deployment of leading-edge technology will deliver a step-change in both safety and productivity for our business." $146 million of funding have been invested in detailed engineering work on key elements of the

Iron Ore Operational Control Centre, Perth

project, the development of a rail construction camp and the first stage of the Koodaideri accommodation camp. Mr Salisbury said, "This is an important step for our Koodaideri project which will be a significant leap forward for the global mining industry and Rio Tinto.”

Koodaideri Phase 1 will help sustain Rio Tinto's existing production capacity by replacing depletion elsewhere in the system. Production capacity of the mine will be 43 million tonnes annually and is expected to commence by the end of 2021. A prefeasibility study into Koodaideri Phase 2, which could increase annual capacity to 70 million tonnes, is ongoing.

Images Copyright © 2018 Rio Tinto

Rio Tinto’s Koodaideri iron ore project supporting local Aboriginal businesses Development of Rio Tinto’s Koodaideri iron ore mine in Western Australia is supporting local Pilbara Aboriginal businesses with more than A$60 million of work awarded in recent months.

The most significant package of work awarded to date has been secured by White Springs who will supply more than 600,000 tonnes of ballast for the rail line for the Koodaideri mine. The contract will require the establishment of the Bea Bea Creek quarry which will be the first Indigenous owned and operated quarry in Western Australia.

Rio Tinto Iron Ore chief executive Chris Salisbury said: “We’ve been operating in the Pilbara for more than 50 years and we couldn’t have built the world-class iron ore business we have today without the support of local and Pilbara Aboriginal businesses.

drainage works for the Crossing Rail Camp. As well as being a Pilbara Aboriginal business, Yanagu’s JV partner Yurala Contracting is owned and operated by Banjima Traditional Owners, whose country is located in Central Pilbara.

Construction & Development Solutions (iCads) iCads will undertake project surveying services to support the construction of the mine and rail scope for the project. iCads is a 51 per cent Aboriginal-owned business that offers attractive employment and subcontracting opportunities for Pilbara Aboriginal businesses.

Karlka Fencewright WA

“These contract awards highlight the growing level of expertise that sit within these businesses and we are proud to be partnering with them to help develop our most technologically advanced mine.”

Karlka Fencewright will supply and install the fence along the northern rail alignment. Karlka Fencewright is a 100 per cent Pilbara Aboriginal business owned by Karlka Developments, which is the commercial arm of the Pilbara-based Karlka Nyiyaparli Aboriginal Corporation. It’s a wholly owned Traditional Owner company registered in the Pilbara.

Other recent significant awards to Aboriginal businesses for work on the Koodaideri project include:

Yurala (trading as Yurala Aboriginal Contracting Services)

Kurtarra Cape USA JV (KCUJV)

Yurala has secured a contract to undertake miscellaneous earthworks along the Koodaideri Project’s rail alignment and the associated roads. Yurala is a 100 per cent Pilbara Aboriginal-owned business, its owner representing the Banjima people who are recognised as the traditional owners of the Central Pilbara.

Kurtarra, as part of the KCUJV, will install 170 kilometres of fibre optic cable as part of the new rail line after securing a contract. Kurtarra was established in 2012 and is a 100 per cent Aboriginal family-owned company originating from the Palkyu area of the Pilbara.

Ngurrara Ngurrara will undertake earthworks for construction of the Pelican Rail Camp. Ngurrara is a wholly-owned Pilbara Aboriginal business and has Indigenous engagement management plans in place to support local Aboriginal communities.

Yanagu Horizon

Lorrex Contracting Lorrex Contracting are responsible for the construction of three access roads within the mine site. The works comprise clearing, bulk earthworks, drainage and pavement construction. Lorrex Contracting is an incorporated Aboriginal business with equal ownership between Lorrex Civil and Mining Pty Ltd and iContracting Pty Ltd. Lorrex Civil and Mining Pty Ltd is located in the Youngaleena Community which is situated to the west of the Koodaideri mine site.

Yanagu Horizon will perform the bulk earthworks and

20 DIGGING & DRILLING MAGAZINE | JANUARY - MARCH 2020

OFFICE & WORKSHOP 49 Candlewood Boulevard, Joondalup 6027 Tel: (08) 9300 3135 Fax: (08) 9300 3236 Email: mark@mechbro.com.au

MechBro Australia has been set up to respond to the demand for Heavy Duty Diesel Mechanics and Fitters involved in the repair, maintenance and servicing of earthmoving, mining and transport equipment as well as light vehicles.

Our business is based in Perth and also services regional areas, including the Pilbara. Our people are highly skilled and motivated to provide the highest level of service to companies throughout Western Australia. With a fleet of mine specifi ed and f ully equipped service utilities, w e are unique in that w e are not simply a labour hire company.

Because with MechBro you don’t just get a capable individual, you get the strength of our entire team! MechBro’s team of mechanics and fitters are committed to the economic success of our customers. And so, before joining us, must demonstrate they possess the passion, skills and attitude required to satisfy our customers. Accordingly, we believe this set of values will help to ensure the mutual economic success of all parties.

OUR PEOPLE

Whether it be a civil or mining project, every person on our team knows that to keep plant operating means productivity. We work hard and use our heads! As a collective, our team of highly skilled mechanics diagnose, repair and maintain a wide variety of plant and equipment, dozers, excavators, graders, scrapers, profilers, dump trucks, bobcats, heavy haulage road transport, etc.

Our team has the experience, qualifications and equipment to work on all aspects of these machines including engine rebuilds, hydraulics, track and frame, electrics and air conditioning and on all brands, including, but not limited to; CAT, Hitachi, Komatsu, Terex, O&K, Volvo, Bell, Vermeer, Cummins.

As a team of mechanics, fitters, servicemen and fabricators we keep machines going, as well as being involved in site mobilization where we establish containerized workshops complete with domes and commission machinery ready for operation. Upon project completion we demobilize workshops and plant and are often the last to leave site.

Throughout a project we are able to manage all parts ordering and delivery, including urgent hot shots. Our tilt tray can pick up and deliver parts and 20’ containers up to 8.5T.

REFRIGERENT TRADING AUTHORISATION

WHERE WE’VE WORKED

MACHINERY AND VEHICLE HIRE

MechBro has the capability and authorisation to repair your air conditioning units.

During the last 18 months we’ve worked at many major mine sites owned by BHPB, RIO, FMG, Sandfire Resources and more recently Onslow Quarry. Our people understand the rigorous requirements of working on these sites and act accordingly.

Mechbro can provide a variety of machinery and vehicles to suit your needs. MechBro currently have 6 mine specified service vehicles supported by a tilt tray truck capable of loading and unloading 20’ sea containers and moving items of plant up to 8 Tonne.

SAFETY FIRST

Having established MechBro Pty Ltd on May 9th 2011, with 2 mechanics we have experienced rapid growth and now have a great team of mechanics and service men. In 2012 we also acquired a light vehicle w ork shop in Joondalup.

Within the next 12 months we will be establishing a heavy duty workshop where we can service, repair and store larger equipment.

Our aim is to conduct our business using systems and practices which will ensure that our workforce and the community are protected from injury and harm. Safety and productivity go hand in hand with our people working as problem solvers to get the job done.

WORKSHOP & ONSITE SERVICE

We have the equipment and the facilities to service your machinery and vehicles. We will also invest in our business and tailor to your requirements.

For more info, contact Mark Nielsen

Mobile: 0438005655

www.mechbro.com.au

Australian coal-based hydrogen delivers cheaper energy and lower emissions Australian coal-based hydrogen will deliver more regional jobs and investment in the resources sector and position Australia as a major supplier to global energy markets.

COAL21’s submission to the National Hydrogen Strategy argues that Australia’s significant black and brown coal resources can be used sustainably to produce hydrogen with low to zero emissions at least cost.

Current cost estimates indicate that coal and carbon capture technologies producing hydrogen are up to 13 times cheaper than hydrogen produced by curtailed renewable energy sources and up to three times cheaper than grid-electricity.

Carbon capture, utilisation and storage (CCUS) is essential to the creation of low emissions hydrogen and is ready today, with Australia having significant storage and utilisation for carbon capture both onshore and offshore.

Australia must have a technologically neutral approach towards the production of hydrogen by using mature technologies such as coal gasification and carbon capture. Coal’s role in Australia’s and our region’s hydrogen economy will be a critical part of the energy transition to a lower emission future and meeting the Paris Agreement.

Australian coal-based hydrogen can make a critical contribution to our transport fuel needs, reducing emissions from passenger vehicles and reducing our reliance on imported liquid fuels. It will also power the economies of our neighbours such as Japan who are investing significantly in hydrogen to drive economic growth and development.

This technology solution will also support emissions reduction in sectors such electricity generation, heating and chemicals production.

COAL21 is a $555 million investment by Australia’s coal industry that is reducing emissions from coal and is strategically supporting a number of hydrogenbased programs including the Hydrogen Energy Supply Chain Project in the Latrobe Valley.

COAL21’s investment and support for the Latrobe Valley Hydrogen Energy Supply Chain project is leading the way in the development of new technologies that will reduce our reliance on imported liquid fuels.

Investments by COAL21 in new ready-to-go technologies such as hydrogen production and CCUS will support regional industry and jobs in the Surat Basin, Gladstone and the Latrobe Valley now and into the future through the use of low emission technologies.

COAL21 also acknowledges that both the Australian Government and Opposition recognise the significance of hydrogen, however coal with CCUS must be central to any national hydrogen strategy to ensure that Australia continues to be an energy superpower.

Statement by Mark McCallum, Chief Executive Officer

22 DIGGING & DRILLING MAGAZINE | JANUARY - MARCH 2020

KEY QUESTIONS FACING OIL AND GAS COMPANIES OPERATING IN IRAQ The US and Iran seem to have stepped back from the brink of armed conflict, at least for now, but many oil and gas companies nevertheless face serious decisions regarding their short and mid-term plans in neighbouring Iraq, where tensions remain high.

There are still some 5000 American troops stationed in Iraq, but their continued presence there has become uncertain.

(See Rystad Energy press release from January 10, 2020.)

Iraqi oil production averaged more than 4.8 million barrels per day (bpd) in 2019, of which about 1.8 million bpd stemmed from the country’s domestic and state-

spending plans in Iraq are likely to be under review given the current circumstances,” says Matthew Fitzsimmons, VP Oilfield Research at Rystad Energy. He reasons that ExxonMobil could ultimately decide to divert a portion of its Iraqi spending budget to other regions where the company is investing heavily in production growth, such as Guyana’s offshore sector and the US shale industry.

Among the major oil companies in Iraq, BP has emerged as a clear leader. Before the recent flaring of tensions, BP had been expected to allocate about 4% of its annual $25.6 billion global oil and gas spending budget towards projects in Iraq. The company has managed an ambitious water injection program that is helping to boost its output and make BP the third largest producer in Iraq, but the fate of this program is now uncertain.

owned players. International oil companies were thus responsible for the lion’s share of production – in the region of 3 million bpd. Companies headquartered in China collectively produced more than 1 million bpd, E&Ps from the United Kingdom produced beyond 630,000 bpd, and Russian players had combined average output of around 330,000 bpd. PetroChina and BP had the largest working interest production for overseas companies, at 880,000 and 606,000 bpd, respectively. US-based companies collectively produced about 180,000 bpd on average last year, led by ExxonMobil with nearly 106,000 bpd.

“ExxonMobil spent more than $250 million last year on its Iraqi upstream operations, and we have projected that this number would likely be ramped up by an additional $150 million over the next five years as the company aims to increase production through 2024. However, any

“Continued tensions in the region could see BP slow their water injection program down and limit the high-side of production for the company and for other international players in southern Iraq,” says Fitzsimmons.

After spending nearly $1 billion in 2019 on its Rumaila North and South project, BP was expected to raise its capex to $1.2 billion by 2024. This would have seen BP’s onshore Iraqi oil production eclipse 725,000 bpd by 2024. “Putting this into context, that tally would be about 70,000 bpd higher than BP is poised to produce from the US shale sector in 2024, and Iraq would emerge as the company’s largest production of one energy resource type in a single country. Only by combining offshore, onshore and shale in the US, could BP’s working interest production in there outweigh its expected interests in Iraq,” states Fitzsimmons.

ZED70 leads the charge towards electric vehicles Electric vehicles are growing in popularity around the world, thanks to their ease of use, strong performance, simplified maintenance requirements and lack of tailpipe emissions.

Australian company ZERO Automotive has combined all of these attributes in an all-electric 4WD vehicle developed to meet the strong demand for emissions-free utility vehicles for mining industry applications. Based in Adelaide, South Australia, ZERO Automotive combines many years of experience in the 4WD, motorsport and manufacturing fields to produce a vehicle that exceeds OEM quality.

battery boxes that are insulated against vibration and meet the IP69K rating for protection against ingress of dust and water. Cables are housed in armoured conduits and every aspect of the electrical system has been engineered for use in wet and saline environments, with the option of further corrosion protection for underground mining applications with extreme corrosion issues. The ZED70 offers nil spark risk and almost silent operation.

The ZERO Automotive ZED70 is Australia’s first road legal electric utility vehicle. Fully ADR-compliant, the ZED70 is based on the popular Toyota Landcruiser 79 Series platform, which delivers 5-star ANCAP safety and rugged off-road capability. The ZED70 is powered by an electric motor that generates a hefty 700Nm of torque – well in excess of the vehicle’s original V8 turbo-diesel engine.

Each ZED70 is built to order, allowing ZERO Automotive to tailor the vehicle to the buyer’s specific needs. The modular battery box system allows for capacities ranging from 21kWh up to 120kWh, which gives a theoretical range of 400km.

Fitted with 88kWh of batteries, the ZED70 can travel near 300km on a charge. Recharging takes four hours, with a one-hour charging system soon to be introduced. The batteries are housed in bespoke

Air conditioning, heating, power steering and other ancillaries are converted to run on a combination of high and low-voltage electrics.

Maintenance requirements are minimal, which leads to extremely low operating costs. Because electric motors have minimal moving parts com-

24 DIGGING & DRILLING MAGAZINE | JANUARY - MARCH 2020

pared to internal combustion engines, the ZED70 boasts service intervals of 24 months. Brake usage and wear is reduced by 75% thanks to the regenerative braking system, which uses the electric motor to slow the vehicle, recharging the batteries in the process.

The ZED70 retains a high and low range transfer case and can ascend and descend a 1 in 3 (33%) slope in low range with four people and a 200kg payload on board. On the road, it has a maximum speed of 114kmh.

The vehicle has been tested in 50°C ambient temperatures, with the battery and motor cooling systems comfortably maintaining optimal operating temperatures in these conditions. Safety systems can automatically reduce applied torque under certain extreme conditions.

ZERO Automotive offers the ZED70 in single-cab, dual-cab, station wagon and troop carrier body styles. Each vehicle can be ordered to meet specific requirements, with options including GVM upgrades, signage, lighting, body protection, communications and telematics, tray modifications, speed limiting, gearing changes, ballistic floor protection and additional corrosion protection.

“We have received a large number of enquiries from companies in the mining and petrochemical

industries,” says company director Tim Possingham. “Many of these companies are concerned about reducing emissions, particularly the dangerous particulate emissions from diesel vehicles in the workplace and are also drawn to the prospect of reduced cost of ownership over the lifetime of the vehicle.

Launched in November 2019, the ZED70 undertook a successful trial with the City of Adelaide’s horticulture fleet. The first customer order is currently under construction in ZERO’s Edwardstown factory, and will be working on an Australian mine site in early 2020.

For more information visit; www.zeroautomotive.com.au

Government of Western Australia Department of the Premier and Cabinet

Hon. Bill Johnston MLA Minister for Mines and Petroleum

MRIWA welcomes new chairperson • •

Miriam Stanborough appointed as MRIWA chairperson effective January 1, 2020 Hailey Adams-Packer appointed as member of the MRIWA board

Mines and Petroleum Minister Bill Johnston today announced the appointment of Miriam Stanborough as the new chairperson of the Minerals Research Institute of Western Australia (MRIWA) and welcomed Hailey Adams-Packer as a member of the board.

Ms Stanborough is well positioned to lead the organisation with her detailed knowledge and experience working in Western Australia’s minerals sector.

She has more than 20 years of experience working for mining and METS companies including Monadelphous Engineering Associates, Iluka Resources and Alcoa of Australia; and has been a member of the MRIWA board since 2017.

Ms Stanborough’s appointment is effective from January 1, 2020 for a three-year period and she succeeds Denise Goldsworthy.

Ms Adams-Packer has worked in the public sector for more than 15 years in a variety of policy and leadership roles; she succeeds Jane Hammond.

Helen Cook has been reappointed as MRIWA deputy chairperson, having been a member of the board since its inception in 2014. Ms Cook and Ms Adams-Packer’s appointments are for a three-year period commencing on February 1, 2020.

Comments attributed to Mines and Petroleum Minister Bill Johnston: “I would like to congratulate Miriam Stanborough and Hailey Adams-Packer on their appointments.

“With these appointments MRIWA is well positioned to continue its strong relationship with industry, academia and government, encouraging innovation and investment in activities that will maintain Western Australia’s reputation as a world leader in the minerals sector.

“I would like to thank Denise Goldsworthy and Jane Hammond for their leadership and contributions while on the MRIWA board.

“The McGowan Government continues to implement its commitment to ensure women make up 50 per cent of board and committee positons.”

Chamber welcomes Government’s commitment to consult with industry on resource laws The PNG Chamber of Mines and Petroleum has welcomed the Government’s announcement to consult the industry on the review of major resource laws of Papua New Guinea.

The Chamber made this statement tat the conclusion of the three-day PNG Mining and Petroleum Conference in Port Moresby following Prime Minister James Marape’s keynote address that his Government will consult the industry on the review of key legislations such as the Oil and Gas Act, and the Mining Act of 1992.

Critical to this partnership will be the need for the country to maintain a stable fiscal and regulatory environment that will attract genuine investors who can bring in the much-needed capital,” it stated.

Mr Marape’s commitment was further reaffirmed by the Mining Minister Johnson Tuke yesterday who invited all mining companies to work with the Government to ensure the country and the investors receive their fair share of the resource wealth.

Mr Tuke also outline six key areas he wanted to work with the industry to achieve. These included mineral ownership, repository of production data at the Mineral Resources Authority, social levy on operating cost of mining companies, downstream processing, gold bullion bank, and local content.

The Chamber stated that as an industry that has contributed significantly to the economy of the country as well as other key social areas in health, education, training, agriculture and SME, it was important that it help resuscitate the country’s economy.

“The industry is well aware of the financial challenges PNG is going through and we are happy that the Prime Minister has indicated his Government’s willingness to work with the resource sector to re-ignite PNG’s economic growth,” the Chamber stated. “There are critical resource projects such as the Papua LNG, the P’nyang gas development and the Wafi Golpu project that have the capability to grow and consolidate our economy,” the Chamber stated. “We are ready to engage and support the Government grow PNG’s economy whilst ensuring the country, its people, and industry investors receive a fair share from its mineral and petroleum resources.

Other notable speakers included Oil Search Managing Director Peter Botten who highlighted the significant potential for PNG to increase oil and gas production over the next five years through the development of Papua LNG, and P’nyang gas projects.

He said the benefits flowing from the resource sector can be used to facilitate infrastructure development, provide employment and training opportunities, fund key social sectors in education and health, and focus on critical areas including agriculture and youth engagement.

OTML Managing Director Peter Graham also highlighted during the conference the country’s mining opportunities which can attract quality investors to generate and share value but stated that uncertainty in fiscal and other terms may drive investors elsewhere. Discussions during the conference were held in line with the event’s theme of Resources Industry: Developing Shared Value.

The conference saw over 900 delegates from the mining and petroleum industry in PNG and abroad, including Government and other key stakeholders attend.

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Heart attack victim rescued from remote mine site Collie man Warren Jones counts himself lucky to be alive after experiencing a heart attack while working at a remote mine site in the East Pilbara region of Western Australia.

A fly-in fly-out mobile plant operator at the Woodie Woodie Manganese Mine, 57-year-old Warren woke up on a scorching hot November afternoon, after night shift, to severe chest pain, shoulder pain and shortness of breath. The mine site’s medic team was quickly alerted, and emergency medical assessment and treatment was initiated under the supervision of a Royal Flying Doctor Service (RFDS) medical officer over the phone.

We were able to respond rapidly and in-flight, we were able to continue Warren’s emergency treatment, monitor his vital signs and ensure plans were in order to get him to Royal Perth Hospital for the procedure he needed.”

Less than a week after being discharged from hospital, Warren made a surprise drop-in to the RFDS Jandakot base, with cake for crew in tow, and was delighted to reunite with Dr Hooper.

“Warren had a life-threatening condition and to see him walking through our doors five days later doing well is just amazing,” Dr Hooper said.

Warren said it was great to catch up with Dr Hooper under very different circumstances and to share with him how well his recovery was going and to pass on his gratitude.

“Without the Royal Flying Doctor Service, I probably wouldn’t be alive and standing here today. I literally was in the middle of nowhere,” Warren said.

An electrocardiogram showed evidence of a large heart attack with a significant blockage in one of Warren’s coronary arteries supplying the heart. Time was of the essence as the blockage was preventing blood supply to his heart and Warren desperately needed specialist medical care and emergency transfer to a coronary care unit in Perth.

Located south-east of Marble Bar, the Woodie Woodie Manganese Mine is approximately 1600 kilometres away from Perth where specialist cardiac care would only be available, a journey that would take 20 hours by road transport. This was time Warren didn’t have to spare given his grave condition and the RFDS was tasked to aero medically retrieve Warren from the mine site to Perth.

In the last financial year, the RFDS has retrieved 215 patients directly from mine sites across Western Australia.

RFDS Head of Medical Dr Andrew Hooper was on the Rio Tinto LifeFlight PC-24 jet, which was about to depart from Broome, on its way to Meekatharra, when it was diverted to respond to Warren’s medical emergency. “We had a time-critical patient scenario where minutes mattered,” Dr Hooper said.

A game-changer for aero medical service in Western Australia, the Rio Tinto LifeFlight PC-24 jet aircraft can travel at speeds of more than 700km/hr, are equipped with state-ofthe-art aero medical equipment and are literally Intensive Care Units in the sky.

“This whole experience has given me a massive wakeup call that I need to stop my bad habits. “I need to do all that I can to keep my body strong and healthy from here on out. “Thanks to the RFDS, I can continue to do all the things I love like the speedway and enjoy life with friends and family.”

The RFDS is a not-for-profit charitable organisation that relies on a combination of government, corporate and community support to ensure the sustainability of its operations. Warren said following the incident, the mine site held three quiz nights to fundraise for the RFDS.

To donate in support of the RFDS, visit: www.rfdswa.com.au

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