DIGGING & DRILLING Magazine - Issue 29 July-September, 2021

AUSTRALIA • CHINA • INDIA • JAPAN • NEW ZEALAND • ASIA PACIFIC

D&D JUL-SEP 2020 • ISSUE 29

AUSTRALASIA

AUSTRALASIA’S QUARTERLY OIL , GAS & MINING MAGAZINE

WORLD’S FIRST FLOATING OCEAN HYBRID PLATFORM FORTESCUE SETS AMBITIOUS CLIMATE CHANGE TARGET CME’s WOMEN IN RESOURCES AWARDS 2020 SANTOS COMPLETES CONOCOPHILLIPS NORTHERN AUSTRALIA ACQUISITION

Editor’s Letter

LEN FRETWELL Publisher / Managing Editor Digging & Drilling Australasia Magazine

Here is some positive news which I am pleased to share as we are launching into the new financial year with many variables. The June 2020 resources and energy quarterly report released by the Department of Industry, Innovation and Science predicts Australia’s resource and energy export earnings are set to reach a new record. Offsetting the impact of generally weaker prices, both higher export volumes and a lower-than-expected Australian dollar are estimated to have seen Australia’s resource and energy exports reach a record $293 billion in 2019–20. The PwC’s 17th annual review of global trends in the mining industry published in June reports that the world’s top 40 mining companies have so far been mostly unscathed by the pandemic storm. Also due to the COVID-19 and its impacts, the gold price is forecast to reach an 8-year high, averaging about US$1,630 an ounce in 2020.

The June 2020 resources and energy quarterly report released by the Department of Industry, Innovation and Science states that Oil prices are forecast to increase in the second half of 2020 but remain relatively low as the COVID-19 pandemic limits global consumption. Brent crude prices are forecast to average US$42 a barrel in 2020, down from US$64 a barrel in 2019. Australian LNG export prices have fallen to record lows, due to the sharp decline in both oil and Asian LNG spot prices. Fortunately, both spot and contract LNG prices are forecast to gradually recover from these lows over the next two years.

WA produces 9 out of 10 mineral elements required to produce lithium-ion batteries and a report commissioned by the FBICRC and undertaken by the Queensland University of Technology, with support from Hatch Engineering and Curtin University has shown that WA has all the minerals needed to make batteries, including nickel, lithium and cobalt, and expertise in mineral processing. As identified in this report, and the WA Future Battery Industry Strategy, the next step to add value to Australia’s supply chain is to move into cathode precursor and cathode active production. The report ‘Li-ion battery cathode manufacture in Australia demonstrates that Australia can transition into a major processing, manufacturing and trading hub for battery precursors. The report found that the Future Batteries Industry Cooperative Research Centre’s (FBICRC) Cathode Precursor Pilot Plant can be built at CSIRO’s Waterford facilities. The Global lithium-ion battery market projected to reach around $136 billion by 2030.

According to the AOG 2019 Industry Confidence Whitepaper. the Australasian oil and gas industry are well positioned globally, especially as the energy market evolves. Despite clear uncertainties in geopolitical forces, commodity prices, increasing competition and new technologies, there is a general consensus that demand for oil and, in particular, gas, will increase and continue to play a key role in the region’s economy. On a global scale, Australia’s oil and gas sector will need to maintain strong cost discipline in a highly competitive energy market. This combined with improved energy efficiency and carbon abatement should, however, ensure a healthy future. With world-class universities, a highly skilled population and strong links to the burgeoning Asian economies, the Australasian oil and gas industry is perfectly positioned to embrace a shifting energy market.

To help boost the economy and keep the construction industry moving forward through the COVID-19 pandemic, the Australian Government has announced a $17.6 billion economic stimulus package that includes an increase of the Instant Asset Write-off (IWAO) threshold, the Backing Business Incentive (BBI) and a cash flow boost of up to $100,000 for small business.

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

8

WOMEN IN RESOURCES 2020 AWARDS

10

NEWS IN BRIEF: OIL, GAS & MINING NEWS HIGHLIGHTS FOR THE QUARTER

12

THE NEW REVOLUTION IN CCTV

14

FORTESCUE SETS AMBITIOUS CLIMATE CHANGE TARGET

18

WORLD’S FIRST FLOATING OCEAN HYBRID PLATFORM

22

SANTOS COMPLETES CONOCOPHILLIPS NORTHERN AUSTRALIA ACQUISITION

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

LEN FRETWELL LENA KOZAK, STEPHEN DAWSON ANDREW SPENCE EMMANUEL SOLOMON

GRAPHIC DESIGNER BRANDON WANG SUBSCRIPTION SUBSCRIPTION@DIGGINGDRILLING.COM PUBLISHING DIGGING AND DRILLING IS A TRADING NAME OF LF FAMILY TRUST INFORMATION ABN: 97 893 623 301 VISIT US AT WWW.DIGGINGDRILLING.COM FOLLOW US ON TWITTER @DiggandDrill COVER RIO TINTO - DIAVIK DIAMOND MINE IN CANADA - WINTER ARIAL IMAGE SOURCE: RIO TINTO

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.

Tania Constable, CEO

Creating jobs more quickly The commitment by the Prime Minister in June 2020 to address delays in assessment and approval processes under national environmental law will help Australia’s world-leading minerals industry create more jobs more quickly.

The Australian minerals industry supports robust regulation focused on efficient and effective processes, high environmental standards and sound community engagement to protect Australia’s unique environment.

Faster approvals for mines and other major projects will support the investment and jobs Australia needs to recover more quickly from the COVID-19 pandemic.

Australia’s environmental approval processes can be improved and better integrated while preserving environmental standards and meeting community expectations.

Specialised teams to coordinate Commonwealth, state and territory assessments and clearer processes will improve business certainty and address delays.

The government is to be commended for moving quickly after calls by the MCA and others to create jobs while protecting the environment.

All governments should continue with positive reforms as a matter of urgency to support regional communities while encouraging investment through best-practice regulation.

Statement from Tania Constable, Chief Executive Officer

6 DIGGING & DRILLING MAGAZINE | JULY - SEPTEMBER 2020

The Hon Keith Pitt MP

Minister for Resources, Water and Northern Australia

Flexibility for offshore explorers during COVID-19 crisis Minister for Resources, Water and Northern Australia Keith Pitt has announced measures to provide flexibility to offshore oil and gas explorers to provide greater assistance during the Coronavirus outbreak.

This followed agreement by COAG resources ministers at yesterday’s roundtable meeting.

Greater flexibility will be available to explorers in an effort to assist the sector to manage and plan through the current COVID-19 pandemic, to ensure ongoing, future investment.

The measures provide for a simplified application process to suspend and extend existing work programs, as well as further flexibility to be applied to well expectations in the renewal of exploration permits.

Exploration will be key to recovery in the sector post-pandemic. The 2020 offshore petroleum acreage release will proceed as planned with some key adjustments, including an increased consultation period on nominated areas and an alternative to the public launch event later this year.

“The offshore petroleum industry in Australia faces challenging times in the current environment,” Minister Pitt said.

“It is critical that explorers are offered greater flexibility as they are key to ensuring Australia’s energy security into the future.

“The Australian Government is committed to working with the oil and gas industry in order to provide support and flexibility given the changing circumstances at this time.”

Guidance on the new measure is available on the National Offshore Petroleum Titles Administrator’s (NOPTA) website at www.nopta.gov.au.

JULY - SEPTEMBER 2020 DIGGING & DRILLING MAGAZINE 7

JULY - SEPTEMBER 2020 DIGGING & DRILLING MAGAZINE 9

NEWS IN BRIEF »

OIL, GAS & MINING NEWS HIGHLIGHTS FOR THE QUARTER

RIO TINTO PLEDGES $10 MILLION IN SUPPORT FOR COMMUNITY PARTNERS AND COVID-19 INITIATIVES IN CANADA AND USA Rio Tinto is partnering with the Yellowknife Women’s Society to support their COVID-19 isolation shelter with a C$150,000 contribution.

As part of Rio Tinto’s worldwide community investment in COVID-19 relief initiatives, this funding will provide accommodation and food for individuals who are at high medical risk of serious illness or death if they contract the virus. It will also support the hiring of three additional staff at the shelter to provide service continuity and better support the ongoing programming for residents.

The shelter is currently operating with funding in place for 25 individuals and expects to transition back into its original purpose as supportive housing after the pandemic. Diavik President and chief operating officer Richard Storrie said “Staying safe and well is at the core of how we operate.

As part of our approach to community investments, Diavik is supporting the health and wellbeing of our community members. We believe that we all have a role to play in protecting and supporting each other through COVID-19 and are proud to partner, on behalf of Rio Tinto, with communities and organizations that are vital in the COVID-19 response.” Yellowknife Women’s Society executive director, Bree Denning said “The Yellowknife Women’s Society is dedicated to increasing safety for the most vulnerable women and men in our community. We are grateful to Rio Tinto for their support in meeting the needs of our community.”

ployment, have rebounded, with daily SEEK data showing that job advertisements are almost back to pre-COVID levels. Encouragingly, after being disproportionately impacted by COVID-19 restrictions, women accounted for four out of five of those gaining employment in June, up a record 17,700.

Due to the survey timeframes, the positive effects of the easing of restrictions in WA will take time to be fully reflected in the data.

Other positive results from this report include the underemployment rate for WA falling for the second consecutive month to 10.8 per cent in June, making WA the second lowest underemployment rate of the States.Statement by Hon Ben Wyatt LLB MSc MLA, WA Treasurer; Minister for Finance; Aboriginal Affairs; Lands.

BP AGREES TO SELL ITS PETROCHEMICALS BUSINESS TO INEOS bp has announced that it has agreed to sell its global petrochemicals business to INEOS for a total consideration of $5 billion, subject to customary adjustments.

The agreed sale, the next strategic step in reinventing bp, will further strengthen bp’s balance sheet and delivers its target for agreed divestments a year earlier than originally scheduled.

Subject to regulatory and other approvals, the transaction is expected to complete by the end of 2020. bp’s petrochemicals business is focused on two main businesses - aromatics and acetyls - each of which has leading technology and advantaged manufacturing plants, including a strong presence in growth markets in Asia. In total, the businesses have interests in 14 manufacturing plants in Asia, Europe and the US and in 2019 produced 9.7 million tonnes of petrochemicals. Bernard Looney, bp chief executive officer said: “This is another significant step

ENCOURAGING SIGNS FOR WA WITH AN INCREASE OF 22,000 JOBS IN JUNE

as we steadily work to reinvent bp. These businesses are lead-

ABS Labour Force data shows employment rose in Western

people. In recent years they have improved performance to pro-

Australia by 22,000 jobs in June, this is the second highest

duce highly competitive returns and now have the potential for

rise in employment on record and the highest since March

growth and expansion into the circular economy.

ers in their sectors, with world-class technologies, plants and

1993.

“I am very grateful to our petrochemicals team for what they have The Australian Bureau of Statistics (ABS) Labour Force report for June showed an increase of 22,000 jobs in Western Australia - the second highest monthly increase for jobs on record and the highest since March 1993. Young people have been some of the hardest hit during this pandemic, and the data has shown some positive movement with the youth unemployment rate falling by one per cent to 15.2 per cent (now the third lowest in the country) and the number of youth employed rising strongly up 5.5 per cent.

Job vacancies in Western Australia, a leading indicator of em-

achieved over the years and their commitment to bp. I recognise this decision will come as a surprise and we will do our best to minimise uncertainty. I am confident however that the businesses will thrive as part of INEOS, a global leader in petrochemicals. “Strategically, the overlap with the rest of bp is limited and it would take considerable capital for us to grow these businesses.

As we work to build a more focused, more integrated bp, we have other opportunities that are more aligned with our future direction. This agreement is another deliberate step in building a bp that can compete and succeed through the energy transition.”

S&G GEARBOX S & G Gearbox Exchange was established in 1977. In 1998 our company has undergone major changes and we are now recognised as a leader in the field of diagnosing problems and rebuilding transmissions.

S & G Gearbox Exchange employ competent, quality staff who are well respected throughout the industry. Together with utilising only quality parts ensures a product is produced that we are proud of. We are an MTA member and an RAC Approved Repairer.

S & G Gearbox Exchange Services Include: • • • •

REPAIRS TO MANUAL GEARBOX, AUTOMATIC TRANSMISSIONS, DIFFERENTIAL & POWER STEERING COMBINING A TOWING SERVICE AND A FITTING SERVICE TO OUR REPAIR & REBUILDING EXPERTISE ROO SYSTEMS DEALER PROVIDING DIESEL PERFORMANCE CHIPS AND EXHAUST UPGRADES SPECIALISING IN 4WD AND DIESEL TRANSMISSION AND CLUTCH REPAIRS AND SERVICING

S & G Gearbox Exchange offer our clients a complete hassle-free solution to their problems The demands of modern technology in today’s vehicles has ensured we keep up with the latest information available.

Together with our trained specialists and range of modern test equipment supplying us with the best diagnostic information we need to remain a leader in the field.

Contact us today 18 Marriot Street, Cannington Perth, WA 6107 (08) 9356 9988 info@sggearbox.com.au

www.sggearbox.com.au

CAN YOU KEEP AN ON

MA K ING C C T V S MA RTER

EYE

EVERYTHING? WITH VISUAL BASED CCTV ARTIFICIAL INTELLIGENCE SYSTEMS THIS IS POSSIBLE

The need for a proactive solution in the global energy and resources sector to effectively utilize funds/assets and supplies in order to improve operations for better conditions are ever being researched and studied. The significance of video-based data has become an important part of this initiative due to its inherent capabilities and real-time characteristics.

In terms of surveillance video, there are thousands of cameras in the industry which are mainly viewed by human eyes thus consuming a lot of manpower. There is no doubt that it is impossible to monitor and record all videos, resulting in low efficiency in resources deployed. Therefore, how can you make use of the video data which is of great magnitude for the application scenarios in the oil, gas and mining industries?

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.

Ai group systems can monitor process and abnormal behaviour on site in real time. The system uses deep learning technology to track and monitor processes related concerns dynamics of workers/vehicles, building materials and construction equipment etc.

I t us e s me thods such as tar g e t detection and positioning, behaviour assessment and analysis to monitor and implement procedures such as dangerous object placement warning, health and safety concerns, process productivity maximisation and warning of dangerous behaviour.

DETECTING WORKER WITHOUT HARD HAT

DETECT ON-THE-JOB SITUATION OF INDOOR OERSONNEL

The system can be applied 24 hours to carry out comprehensive monitoring and reporting, to ensure the increase in productivity, safety of life and property.

For more information +61 (0)3 9540 0708 info@aintelgroup.com

UNCOVERED SOIL DETECTION

Head Office 7, 35-37 Dunlop Road Mulgrave, Vic 3170 Australia aintelgroup.com IDENTIFYING THE NUMBER OF WORKERS

HEAT SIGNATURE DETECTION

CHECK-IN OF VEHICLES

FORTESCUE SETS AMBITIOUS CLIMATE CHANGE TARGET TO REACH NET ZERO OPERATIONAL EMISSIONS BY 2040 Fortescue Metals Group (Fortescue, ASX: FMG) has announced an industry leading emissions reduction goal to achieve net zero operational emissions by 2040. This goal is core to Fortescue’s climate change strategy and is underpinned by a pathway to decarbonisation, including the reduction of Scope 1 and 2 emissions from Existing Operations by 26 per cent from 2020 levels, by 2030.

Fortescue Chief Executive Officer, Elizabeth achieve our emissions reduction targets.”

Gaines, said, “Fortescue has a proud history of setting stretch targets and our 2030 emissions reduc- “The Chichester Solar Gas Hybrid Project, antion commitment, together with our goal to achieve nounced with Alinta Energy in October 2019, is well net zero operational emissions by 2040, positions advanced for the installation of 60MW of solar genFortescue as a leader in addressing the global cli- eration. More recently, Fortescue announced the mate change challenge.

US$700 million investment in the Pilbara Energy Connect program which, together with the Chich“Fortescue supports the Paris Agreement long-term ester Solar Gas Hybrid Project, will deliver 25-30 goal of limiting global temperature rise to well below per cent of our stationary energy requirements from 2°C above pre-industrial levels, and our emissions solar power. reduction targets align with this international objective. Our success will be founded on practical initia- “Mining is one of the most innovative industries in tives that will allow us to deliver on our targets in an the world and Fortescue is harnessing this technoleconomically sustainable manner. ogy and capability to achieve carbon neutrality with a sense of urgency. In addition to the development “Since October 2019, Fortescue and our partners of gas technology and renewables for our stationhave announced investments in excess of US$800 ary energy requirements, we are working towards million in significant energy infrastructure projects decarbonising our mobile fleet through the next which will increase our use of renewable ener- phase of hydrogen and battery electric energy solugy and will be a key contributor to our pathway to tions,” Ms Gaines said.

Background Emissions data and performance against targets will be reported annually as part of Fortescue’s annual reporting suite. Baseline and annual emissions data will be calculated on a financial year basis.

Autonomous Haulage Truck

Existing Operations include all of Fortescue’s current and future iron ore operations in the Pilbara, excluding the Iron Bridge Magnetite Project (Iron Bridge).

Iron Bridge is due to commence operation by mid2022, with emissions reduction targets to be established that align with Fortescue’s goal to achieve net zero operational emissions by 2040.

mining operations with Alinta Energy’s Newman gas-fired power station and 35MW battery facility.

Pilbara Energy Connect (PEC)

Fortescue supports the United Nations Framework Fortescue will build, own, and operate the PEC Convention on Climate Change which mandates which includes: that individual nations take responsibility for emissions within their own borders. The Company will • the US$250 million Pilbara Transmission continue to actively engage with its customers and Project consisting of 275km of high voltage suppliers to encourage and facilitate the reduction transmission lines connecting Fortescue’s of emissions in its value chain. mine sites, and Chichester Solar Gas Hybrid Project

•

the US$450 million Pilbara Generation Project comprising 150MW of gas fired generation, together with 150MW of solar PV generation and large-scale battery storage.

The Chichester Solar Gas Hybrid Project, owned and operated by Alinta Energy, is under construction and will include a 60MW solar photovoltaic (PV) generation facility at the Chichester Hub, compris- The PEC project leverages existing assets and ing Fortescue’s Christmas Creek and Cloudbreak provides Fortescue with a hybrid solar gas energy mining operations. In addition, an approximately solution that enables the delivery of stable, low cost 60km transmission line will be built, with completion power and supports the incorporation of additional due mid-2021. large-scale renewable energy in the future.The following map identifies components of the PEC and This will link the Christmas Creek and Cloudbreak Chichester Solar Gas Hybrid projects:

Hydrogen

A portfolio of additional projects associated with hydrogen production, storage and use is under develIn 2018, Fortescue signed a landmark partnership opment to ensure that Fortescue is well positioned agreement with the CSIRO to develop its metal to meet the demand for hydrogen as both an export membrane technology, which provides the poten- opportunity and to contribute to the decarbonisation tial for the bulk transportation of hydrogen through of Fortescue’s operations. ammonia.

Material Source: Fortescue Metals Group Ltd

POSTCARD PROJECT»

Herb Elliott Port

Wave, Wind and PV: The World’s First Floating Ocean Hybrid Platform SINN Power introduces a modular, cost-efficient power generation platform SINN Power has been developing and building innovative wave energy systems since 2015. Five years later, the Bavarian manufacturer sells self-developed high-tech generators, power electronic components and energy storage for wave energy systems and other renewable energy systems.

Floating Ocean Hybrid Platform

All power sources are controlled by SINN Power ModTroniX, IP68 Power electronics including Electric Machines, Engine Control Units, MPP Trackers, LFP & SuperCap Storage, Hybrid Inverters. The entire system runs on an internal 800V DC bus, and grid connection to 400V AC is possible.

SINN Power will offer solar panel manufacturers the opportunity to demonstrate and test their PV modules on a floating platform in Iraklio, Greece.

The goal is to internationalise SINN Power’s ocean hybrid platform as a complete off-grid energy solution to provide people near coasts worldwide with renewable energy.

•

Looking for solar PV manufacturers to cooperate for showcase in Iraklio, Greece

•

Hybrid power generation on the SINN Power Wave Energy Structure

•

Ocean Floating PV uses open sea space for renewable energy production

Based on many years of R&D of a patented floating wave energy system, SINN Power developed an extremely robust, modular yet affordable maritime structure to generate renewable energy from waves, wind and PV.

18 DIGGING & DRILLING MAGAZINE | JULY - SEPTEMBER 2020

The floating platform can supply renewable energy to island resorts in the Caribbean and contribute to the worldwide implementation of offshore wind farms.

SINN Power is the first to offer a customizable energy solution using waves, small wind and PV according to climatic conditions of any location and at competitive prices compared to other proven technologies.”

Intensive long-term tests of the structure show that it withstands waves up to six meters high.

These findings are based on SINN Power’s extensive experience in the maritime environment with high potential to outperform the competition. At the same time, this opens doors for a global market within the renewable energy industry.

Dr.-Ing. Philipp Sinn, Founder & CEO

The SINN Power floating structure provides regions that are affected by harsh maritime environment access to renewable energy and ocean energy solutions.

Dr-Ing. Philipp Sinn (CEO, SINN Power): “Modularity has been a key aspect since we started developing maritime technologies which allows flexibility and a wide variety of applications.

SINN Power now offers a turn-key solution for energy project developers worldwide at a competitive price and significantly increased base load capacity compared to conventional renewable energy systems with storage.

Basic wave energy converter (top left), then with solar, then with wind Images Source: SINN Power

Government of Western Australia Department of the Premier and Cabinet

Hon. Bill Johnston MLA Minister for Mines and Petroleum

McGowan Government supports resources sector during COVID-19 •

Amendments to mining regulations will assist tenement holders applying for expenditure exemption

•

New measures will reduce objection period from 35 days to 14 days

The McGowan Government has amended the Mining Regulations 1981 to support stakeholders impacted by the COVID-19 pandemic.

Under the revised regulations, tenement holders can now apply for expenditure exemptions if they are able to demonstrate that COVID-19 has affected their ability to meet their expenditure conditions.

The temporary amendments reduce the amount of time allowed for an objection to be lodged, from 35 days to 14 days, and all exemption applications will now be published online.

Guidelines have been developed to assist stakeholders through the new interim process and to ensure applications remain of a high-quality.

Providing clear guidance should also minimise the requests for additional information from the applicant.

Additionally, on Wednesday July 1, the Department of Mines, Industry Regulation and Safety cut its assessment timeframes in half for exploration Programme of Work applications.

The new timeframe target for applications has been reduced from 30 to 15 business days.

For more information, visit https://www.dmirs.wa.gov.au Comments attributed to Mines and Petroleum Minister Bill Johnston: “Mineral exploration is fundamental to the ongoing success of Western Australia’s resources sector and we continue to work with industry to improve outcomes.

“The McGowan Government recognises that tenement holders continue to be impacted by COVID-19 and the new regulations will help the resources sector by reducing the objection timeframe while still providing procedural fairness for objectors.

“A review of these arrangements, which are not intended to be permanent, is planned for early 2021 and industry will be consulted as part of the process.”

20 DIGGING & DRILLING MAGAZINE | JULY - SEPTEMBER 2020

Santos completes ConocoPhillips northern Australia acquisition Santos has announced it has completed the acquisition of ConocoPhillips’ northern Australia and Timor-Leste assets for a reduced purchase price of US$1.265 billion plus an increased contingent payment of US$200 million subject to a final investment decision (FID) on Barossa.

Due to recent market volatility and the deferral of Barossa FID, Santos and ConocoPhillips agreed to decrease the previously announced US$1.39 billion upfront payment at completion to US$1.265 billion and increase the contingent payment on Barossa FID from US$75 million to US$200 million.

“We welcome the ConocoPhillips’ Australia-West employees to Santos and look forward to getting on with the process of integrating our two businesses to create one high performing team,” Mr Gallagher said.

The purchase price at completion was fully-funded from available cash together with US$750 million of new two-year acquisition debt. The reduced purchase price on completion has a favourable impact on net debt and gearing, with net debt at completion estimated at US$3.75 billion and gearing at approximately 32%. Post-completion, Santos’ balance sheet remains in a strong position with liquidity of US$3.1 billion, comprising cash of US$1.2 billion and committed undrawn debt facilities of US$1.9 billion. Santos has previously announced an agreement to sell a 25% interest in Darwin LNG and Bayu-Undan to SK E&S for US$390 million and the signing of a letter of intent to sell a 12.5% interest in Barossa to JERA.

At completion, the net settlement amount was US$655 million, lower than the previously forecast amount of US$800 million, comprising the revised firm purchase price of US$1.265 billion less cash in the acquired business from the effective date of 1 January 2019 to completion with customary adjustments. The net settlement amount is before any sell-downs of interests owned by Santos in the acquired assets.

The acquisition delivers operatorship and control of a high quality portfolio of low-cost, longlife natural gas assets and strategic LNG infrastructure. Santos’ interest in Bayu-Undan and Darwin LNG increases to 68.4% at completion and will provide a significant boost to 2020 production and cash flows.

Santos’ interest in the Barossa project to backfill Darwin LNG increases to 62.5%.

“Santos continues to build alignment between the Darwin LNG and Barossa joint ventures. Following completion of the previously announced sell-downs to SK E&S and JERA, Santos will hold a 43.4% interest in Darwin LNG and a 50% interest in Barossa,” Mr Gallagher said.

“We are continuing to advance discussions with other parties for the sale of further equity in the Barossa project in line with our previously stated target ownership level of around 40% to achieve increased partner alignment and prudent future allocation of growth capital. We are also in discussions with buyers for Barossa LNG volumes.” The sale of interests in Bayu-Undan and Darwin LNG to SK E&S, and in Barossa to JERA, are subject to third-party consents, regulatory approvals and an FID decision on Barossa. Credit Suisse (Australia) Limited and J.B. North & Co. acted as financial advisors to Santos and Allens acted as legal advisor to Santos.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said he was pleased to complete the acquisition which is fully-aligned with Santos’ strategy to build on existing infrastructure positions around Santos’ core assets.

“As a foundation partner in Bayu-Undan and Darwin LNG, and an existing partner in Barossa, we know these assets well. We are delighted to assume operatorship and continue to progress the Barossa project so that a final investment decision can be made when market conditions permit.”

22 DIGGING & DRILLING MAGAZINE | JULY - SEPTEMBER 2020

Santos wins new gas exploration acreage in Queensland Santos has announced it has been awarded four new gas exploration permits in the Surat Basin east of Roma in Queensland. Two of the permits are for domestic-only supply and two could supply both domestic and LNG markets.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said these blocks offered exciting domestic and LNG development opportunities close to existing infrastructure and adjacent to promising Santos-owned coal seam gas pilot activities.

“This means Santos will be able to get gas to market faster and at a lower cost of supply, which is the best way to put downward pressure on gas prices,” Mr Gallagher said.

“Minister for Natural Resources, Mines & Energy, Anthony Lynham, has been a great supporter of the gas industry in Queensland, ensuring there is an ongoing pipeline In the Roma region in 2018, Santos: of new supply opportunities so that explorers and producers like Santos can unlock gas for • Employed 465 people and paid over $5.5 local manufacturers and electricity generators million in wages & provide long-term security of gas supply at • Purchased more than $90 million in local competitive prices. goods and services • Paid over $16 million to local government “Opening up these opportunities is also creatauthorities ing jobs and investment in Queensland at a • Made landholder payments of almost $17 time when they are more important than ever. million “We’re very pleased to work with the Queens• Invested nearly $1.5 million in community land Government to continue to explore and partnerships. develop new gas supplies for both domestic and LNG markets,” Mr Gallagher said.

“Santos is proud to invest in the communities in which we operate and partner with local busi“Queensland continues to lead the way and do nesses to create jobs and safely and sustainthe heavy lifting for the east coast gas market able develop Australia’s natural gas reserves,” in Australia and in doing so, Queensland comMr Gallagher said. munities like Roma are benefiting with stronger local economies.”

Material Source: Santos

JULY - SEPTEMBER 2020 DIGGING & DRILLING MAGAZINE 23

PORT HEDLAND DRIVES JOBS, WEALTH ACROSS THE NATION The Port of Port Hedland and its supply chain pumped $54.7 billion into WA’s economy in 2018/19 and supports one in every 12 jobs throughout the State, a major economic assessment commissioned by the Port Hedland Industries Council has revealed.

Reinforcing the Pilbara and the Port of Port Hedland as the powerhouses of the State and national economies, The Economic Significance of the Port of Port Hedland report compiled by ACIL Allen Consulting found that the port’s economic contribution accounted for 20 per cent of WA’s Gross State Product in 2018/19.

In Port Hedland, the economic value of the port and its supply chain is even more significant.

It contributed $1.1 billion to the town of Port Hedland’s economy in 2018-19, creating 3,581 direct and indirect full-time jobs — 44per cent of all jobs in Port Hedland in the year — and paid almost $500 million in wages and salaries to resident workers.

For every full-time job directly employed by the Port and the companies that trade through the Port, a further two full-time jobs are created in other parts of the town’s economy.

The economic benefits of the Port of Port Hedland and its associated supply chain flow beyond the region and WA. The report said the Port of Port Hedland and the trade facilitated through the port in 2018/19 boosted Australia’s GDP by more than $64 billion, generated more than 133,000 full time jobs across Australia, and delivered almost $4 billion in taxes to the Federal Government.

The report updates a 2017 economic study of the value of the Port of Port Hedland and its supply chain, expanding the assessment beyond iron ore to include lithium and salt exports and the indirect benefits.

PHIC members — the Pilbara Ports Authority, BHP, Fortescue, and Roy Hill — and port users Atlas Iron, Rio Tinto (salt), Sandfire Resources, Pilbara Minerals, and Mineral Resources contributed production and financial details for the report.

Drawing on future production estimates, the report said the economic benefits would grow over the next 10 years, delivering an extra $26.2 billion to regional, State and national economies by 2028/29, with an average extra benefit of $2.6 billion a year.

An extra $21 billion would be paid to the WA and Federal Governments in taxes and royalties.

PHIC Chief Executive Kirsty Danby said the figures revealed in the report were a powerful reminder of the economic muscle of the Pilbara, the Port of Port Hedland, and the town.

“That the port supply chain is responsible for one in every 12 jobs in WA is extraordinary and a reflection of the importance of the port to the economic futures of the town, the State and the nation,” Ms Danby said.

“Industry is not only contributing directly through taxes, royalties, wages and salaries. It provides vital indirect benefits to a range of contractors and services providers and contributes to the vitality and development of Port Hedland community through its support for a range of programs.

“The report also reflects the enormous economic potential that will flow based on the production and export targets of a range of industries.”

The report said total iron ore production was expected to increase from 524.9Mt in 2019-20, peaking at 547.5Mt in 2022-23 before easing to an average of 545.2Mt over the remainder of the period to 2028/29.

For lithium, spodumene concentrate production is expected to accelerate from 180,000 dry metric tonnes in 2019-20 to 370,000 DMT in 2020-21 and then again to 1,500,000 DMT in 2021-22. In subsequent years, total production is expected to average 1,600,000 DMT to 2028/29.

24 DIGGING & DRILLING MAGAZINE | JULY - SEPTEMBER 2020

Start planned for Arrow’s Surat Gas Project Arrow Energy has sanctioned commencement of the first phase of its Surat Gas Project (SGP) in southern Queensland, with construction set to begin this year. Arrow’s sanction decision follows the announcement from its shareholders, PetroChina and Shell, of a final investment decision (FID) for phase one of the SGP. Arrow CEO Cecile Wake said “These decisions by PetroChina, Shell and Arrow demonstrate commitment to and confidence in Queensland and the Australian market at a time of global economic turmoil from COVID-19 and against the backdrop of sustained low oil prices.

rat Gas Project and commence construction this year is good for Queensland. It will mean more jobs, more opportunities for local companies and other economic benefits for regional Queensland, which has been home to Arrow for more than 20 years.”

“This significant investment comes at a critical time and will cement Arrow’s position as a major producer of natural gas on the east coast,” Ms Wake said.

Arrow currently operates five gas fields in the Surat and Bowen basins in southern and central Queensland, respectively, and produces the equivalent of more than 40 per cent of Queensland’s total domestic gas demand.

“This FID is the result of extensive collaboration between not just Arrow and the QGC joint venture, but also with landholders, communities and the State Government.

“The Surat Gas Project is the first large-scale CSG project in Australia to be underpinned by a significant infrastructure collaboration and gas sales agreement, together with a suite of supporting agreements, which have been put in place between Arrow and the Shell-operated QGC joint venture.

“This agreement enables the use of capacity in QGC’s existing gas and water processing, treatment and transportation infrastructure, reducing the impacts on landholders, communities and the environment and ensuring that more gas can be economically developed.”

Ms Wake said Arrow would this year commence construction of more than 600 phase one wells and is on track to deliver first gas from the project in 2021. Over the full 27-year life of the Surat Gas Project, Arrow expects to develop around 5 TCF of natural gas. “An initial 200 construction jobs will be created during phase one, with an anticipated further 800 construction and operating roles over the life of the Surat Gas Project,” Ms Wake said.

“Arrow recognises the current uncertainty caused by COVID-19 and oil-price volatility and will ensure that its development plans retain sufficient flexibility to manage these evolving challenges while bringing more gas to market. The decision to sanction phase one of the Su-

“In taking this investment decision, Arrow is enlivening those collaboration arrangements for the benefit of Arrow and its shareholders, the QGC joint venture and all Queenslanders,” Ms Wake said.

“Importantly there have been sustained efforts by Arrow, its landholders and local communities to jointly develop tailor-made ways of working on high quality black soil with minimised impacts, which will be the foundation of positive co-existence into the future.

“We sincerely appreciate the efforts of all involved, including the State Government, to bring Arrow to this point, and we look forward to safely and successfully delivering the first phase of this exciting project.”

“In these challenging COVID-19 times, Arrow remains committed to operating its business and executing this project safely and responsibly to protect the health and well-being of its people and all of the regional communities where we operate,” she said.

Arrow is the developer and operator of the Surat Gas Project.

JULY - SEPTEMBER 2020 DIGGING & DRILLING MAGAZINE 25

The Fortescue Hive: the heart of Fortescue’s integrated supply chain Fortescue Metals Group (Fortescue) has officially opened the Fortescue Hive, the company’s newly expanded Integrated Operations Centre (IOC) which utilises the latest technology and brings together the Company’s fully owned and integrated supply chain.

Fortescue Founder and Chairman, Dr Andrew Forrest AO and Chief Executive Officer, Ms Elizabeth Gaines celebrated the official opening in Perth with: • • • • •

Hon Bill Johnston MLA, Minister for Mines and Petroleum; Energy; Industrial Relations Matt Keogh, Shadow Minister for WA Resources Hon Bill Marmion MLA, Deputy Leader; Shadow Minister for Mines and Petroleum Patrick Gorman, Federal Member for Perth Members of the Fortescue Board of Directors and the Core Leadership team

The purpose-built facility includes Fortescue’s planning, “The Fortescue Hive seamlessly links our core exploraoperations and mine control teams, together with port, tion, metallurgical, mining and marketing expertise to rail, shipping and marketing teams. The newly refur- deliver value to our customers, shareholders and the bished space allows 330 team members across Fortes- broader community. Importantly, the Fortescue Hive will cue’s complete supply chain to work together, 24 hours underpin our future use of technology including artificial a day, seven days a week, to deliver improved safety, intelligence and robotics and will expand to include the reliability, efficiency and commercial outcomes. generation and integrated distribution network for the Pilbara Energy Connect, our hybrid solar-gas power Dr Forrest said: “Mining is one of the most innovative solution,” Ms Gaines said. industries in the world. Fortescue has long been a technology leader in the industry and was the first mining Chief Operating Officer, Greg Lilleyman, said “Fortesoperation in Western Australia to control a railway from cue’s integrated management of the mine to market supa remote location when we unveiled our Train Control ply chain is unique to our industry and co-locating our Centre in Perth in 2009. planning, operations, shipping and marketing business functions further leverages our exclusive advantage. By “Since then Fortescue has continued to lead the pack ensuring our teams are truly integrated we can capitaland today we officially launch the Fortescue Hive, our ise on market dynamics and respond to the needs of our reimagined IOC, which sits at the heart of our integrated customers” Mr Lilleyman said. supply chain to deliver critical ores to develop the great cities of our region and beyond,” Dr Forrest said.

Facts about the Fortescue Hive: Chief Executive Officer, Elizabeth Gaines, said “Fortescue has developed the world’s most advanced vertically integrated bulk operations infrastructure. We are very proud to open our enhanced IOC, the Fortescue Hive, which enables us to operate our globally significant mines from the centre of Perth.

Covers 2,500m2 Over 15 weeks, 6.5 tonnes of concrete was removed from the building, while 2.1 tonnes of steel was installed The fit-out includes 162 workstations and 996 computer monitors, connected by 64km of underfloor cables Material Source: Fortescue Metals Group Ltd

Australia’s average gas prices remain among lowest in Asia Australia’s average natural gas prices remain amongst the lowest in Asia, according to the latest international survey of wholesale gas prices by the International Gas Union (IGU) released on 3 July.

The 2020 IGU’s Wholesale Gas Price Survey shows the average wholesale gas price in Australia last year ($US5.58/MMBTU*) was around 40 per cent less than the average wholesale price for the Asia-Pacific region.

The Australian price was also just under 30 per cent less than the average wholesale price in the Asian region.

The IGU survey again showed the highest wholesale gas prices in the world were found in the main LNG importing nations of North Asia, Chinese Taipei, South Korea and Japan – around or over $US10/MMBTU. Australia’s other major gas export market, China had the sixth highest prices in the survey.

Globally, Australia’s average wholesale price ranked 18th in a survey of 53 nations (see chart below). The IGU said the lowest prices were found in countries with regulated markets where producers often sold gas below the cost of production and transportation. Those low-cost producers included Turkmenistan, Algeria and Venezuela.

ed States, Canada, Russia and in the Middle East. “This is in large part reflects the high cost of doing business in Australia, and increasingly the impact of restrictions on the development of natural resources,” Mr McConville said. A recent report by leading energy research and consultancy Wood Mackenzie found, against a backdrop of a challenging macroeconomic environment and lower commodity prices, Australian fiscal and regulatory volatility has increased – in turn impacting investor confidence in the country.

The IGU’s report follows the March 2020 release of the 2020 Gas Statement of Opportunities (GSOO) by the Australian Energy Market Operator (AEMO) which confirmed the actions taken by the industry to bring more gas into the domestic market have removed concerns about potential shortfalls out to 2024. The IGU report highlighted the need for further investment in local exploration and production to bring more gas to the domestic market.

APPEA Chief Executive Andrew McConville said: “Even “Removing unnecessary government restrictions on exploration and development is the most effective way to before the sharp contraction we’ve seen in gas prices this year, Australian gas users have enjoyed very com- boost supply, enhance competition and put downward pressure on prices, ensuring Australia retains or impetitive wholesale prices. The widely repeated claim proves its global position while enjoying the substantial that Australia’s wholesale prices are higher than in the and on-going benefits from our LNG exports,” Mr McCocountries importing our LNG has once again shown to nville said. be without foundation.

“Interestingly, the statistics show countries with the highest gas prices including Chinese Taipei, South Korea, Japan, Singapore and China - well above Australia – all have successful major manufacturing sectors.”

The IGU report can be found at; https://www.igu.org/publication/302533/31

Also, when compared with recent World Economic Fo- * MMBTU = one million British Thermal Units. rum listing of the world’s largest manufacturing countries, The BTU is a traditional unit of work equal to six out of 10 top manufacturing nations in the world (UN about 1,055 joules. It is the amount of work data) have higher gas prices than Australia. needed to raise the temperature of one pound However, Australia does face higher wholesale gas prices than other leading gas producers, including the Unit-

of water by one-degree Fahrenheit. The more usual measure of price used in Australia is gigajoule (GJ). 1 MMBTU = 1.055056 GJ.

JULY - SEPTEMBER 2020 DIGGING & DRILLING MAGAZINE 27

FEATURE ARTICLE»

BHP’s Local Buying Program invests A$500 million with small businesses

BHP’s Local Buying Program has reached more than A$500 million in approved spend since its launch in 2012. In that time, the program has worked with over 1,450 local businesses, on over 36,000 work packages, with an average payment period of just 13 days.

BHP President Minerals Australia, Edgar Basto, said: “The Local Buying Program has enabled our small business suppliers to grow and develop their companies as we have grown ours. It has brought our operations and local small businesses closer together. It has increased capability across the local supply chain and boosted regional economic development in our host communities.”

“The program has grown from supporting our Queensland operations in 2012 to now supporting our operations in WA, SA, and NSW. It is more important than ever in the current environment and is growing at the fastest rate since its inception, with half the A$500 million committed in the previous two years alone.”

BHP partner, C-Res, manages the program and administers all transactional activities, while also providing ongoing support, engagement and mentoring to registered local suppliers.

C-Res CEO, Tracey Cuttriss-Smith, said: “The Local Buying Program is something very special. We knew from the start this was a vital and much-needed program. We knew the opportunity it could bring small businesses and how it would underpin BHP’s Charter to support and nurture the businesses, communities and people in the areas where they operate.”

“What we didn’t expect was the breadth and scope of our growth. This kind of milestone was not even in the realms of our imagination when we started in 2012.”

The program makes it easier for small business owners to competitively bid for supply opportunities through a streamlined onboarding, procurement and payment process that includes 21-day payment terms or less. Small businesses have greater access to work opportunities with BHP through a central online directory.

BHP Group Procurement Officer, Sundeep Singh, said: “We designed the program to make it easier for local small businesses to work with us, and the response has been fantastic. We continue to work with small and local businesses across the country to improve and grow the program.”

The Local Buying Programs in Queensland and New South Wales are also supported by the Local Buying Foundation. The Foundation’s role is to support and deliver economic business programs to help build capacity and capability of regional small businesses.

28 DIGGING & DRILLING MAGAZINE | JULY - SEPTEMBER 2020

Material Source: BHP

How to make copper mines emission free: new report The Zero Emission Copper Mine of the Future by the University of Sydney’s Warren Centre for Advanced Engineering sets out how Australian copper mining can become emission free over the next 30 years through the use of emerging technologies.

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A world first study, Zero Emission Copper Mine of the Future, lays out how Australian copper mining can be cleaner and smarter using emerging technologies.

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Study identifies 5 targets: exploration, movement of materials, ventilation, processing, and use of water – in partnership with industry and government.

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Copper represents almost 2 percent of Australian exports and will grow as productivity and brand reputation improves.

Costs fall when mined in partnership with high tech and clean energy industries.

This ‘world first’ roadmap, commissioned by the International Copper Association Australia (ICAA), identifies five key target areas for technological innovation to reduce and ultimately eliminate mining emissions: exploration, movement of materials, ventilation, processing, and water use.

The range of technologies copper supports is vast: autonomous drones and robot machinery, next generation sensors, Mixed Reality (immersive technology), wearable tech, in-situ ore recovery, novel leaching processes and on demand ventilation are just some examples.

Achieving cutting edge innovation will also depend on collaboration across five strategic levers: policy and programs, industry networks, capital enablers, future knowledge and an open mindset.

“A zero-emission copper mine of the future will be significantly different from the current copper mining system, and will require fundamental changes in how the mine sources, consumes and abates energy,” Director of the Warren Centre for Advanced Engineering, Ashley Brinson, said.

“To achieve a zero-emissions future, ’moonshot’ type thinking is needed and will require a joint commitment from research bodies, the public and private sectors,” he added.

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The resources sector, and copper mining in particular, faces big challenges – falling ore quality, fewer new deposits and much tougher licence to operate rules”, John Fennell, ICAA CEO, said. “But we need to do things differently going forward.

Mr Fennell said this is the first of three blueprints or horizon reports over three years, designed to clarify the vision, establish viable technologies, create an innovation culture, and bring the industry together.

COPPER TO POWER SUSTAINABILITY? Copper is widely used in green innovation, used by industries seeking to reduce their environmental impact.

“Hybrid and electric vehicles rely on copper, as do renewable energy sources such as solar photovoltaic, wind farms, hydroelectricity and associated grid infrastructure. Constructing a renewable energy system demands significantly more copper than traditional systems,” said Mr Brinson.

“Copper plays an important role in the transition of society to a zero-carbon future.”

The report was researched and compiled by The Warren Centre and was funded by the International Copper Association Australia.

It includes insights on how to achieve direct emissions reduction at mining and smelting sites from leading industry experts with first–hand experience of the practical challenges faced by industry.

WesTrac’s Collie technology training centre nears completion The WesTrac Technology Training Centre in Collie is close to completion and due to accept its first trainees within weeks.

The facility, which is the first of its kind in the Southern Hemisphere, will deliver training courses to technicians and operators of autonomous equipment such as haul trucks used in the mining industry.

“We are in the final testing phase at present and plan to commence the first official eight-day training course with internal WesTrac team members in early July, followed by courses for a range of mining operators later in the month, ”Mr Croome said.

Announced in January this year and partially funded through the State Government’s Collie Futures Fund, “As the only such facility outside the USA that can prothe site near Bluewaters Power Station includes dedi- vide dedicated training for autonomous operations of cated training facilities and an extensive “calibration pad” Caterpillar equipment, we anticipate strong demand for used for trialling and fine-tuning autonomous equipment. training over the next three years as resources companies transition their fleets. “Initially, the focus will be on conversion of existing haul trucks to operate autonomously, with additional courses to be rolled out in line with industry demand.”

Trainees will be accommodated at the nearby Collie Hills Village while undertaking courses and are expected to boost opportunities for local businesses during their time in the town.

Cat 789D Mining Truck drives around the WesTrac Technology Training Centre in Collie

Premier Mark McGowan was onsite today (Monday, 29 June 2020) to inspect progress, along with Regional Development Minister Alannah MacTiernan, Collie-Preston MLA Mick Murray and WesTrac CEO Jarvas Croome.

Mr McGowan said the training centre was one of a range of new initiatives designed to secure the future of the town. “It’s great to be here in Collie to view first-hand the progress on this facility, which is going to put Collie on the map for training technicians and operators of autonomous equipment,” Mr McGowan said.

“The WesTrac Technology Training Centre will result in new jobs and training opportunities for local people. “At the same time, it will meet demand from around Australia and overseas from resource companies that need specialised technicians and operators of autonomous equipment to support the growth in this technology. “My government is focused on ensuring Collie’s long-term prosperity by creating sustainable jobs in a strong, diverse local economy.

Mr Croome said earthworks and construction at the site had progressed rapidly since it was announced in January and WesTrac was preparing to accept its first intake of trainees in coming weeks.

Close up of a Cat 789D Mining Truck being driven around the WesTrac Technology Training Centre in Collie

Mr Croome said WesTrac had been working with local businesses to supply goods and services, and expected job opportunities to grow in the future.

For more than 25 years WesTrac has set the benchmark in equipment management solutions, providing customers across Western Australia, New South Wales and the Australian Capital Territory with unrivalled support in the mining and construction industries. As one of the largest authorised Cat equipment dealers in the world, WesTrac provides customers with a wide range of machinery and construction equipment as well as comprehensive whole-of-life management solutions designed to make owning and operating equipment as easy, profitable and safe as possible.

Images Source: Westrac

30 DIGGING & DRILLING MAGAZINE | JULY - SEPTEMBER 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