D&d magazine issue 14 dec 2015 feb 2016 (web)

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DECEMBER 2015 - FEBRUARY 2016 • ISSUE 14

SANTOS FIRST CARGO SHIPPED FROM GLNG ICHTHYS PIPELAY COMPLETED BHP-VALE DAM IN BRAZIL

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AUSTRALASIA’S QUARTERLY OIL, GAS & MINING MAGAZINE

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Editor’s Letter This year has been volatile for the energy and resources sectors seeing a massive decline in global commodities markets. September, 2015 quarter GDP growth in Australia was three times stronger than the previous period leaving the annual rate at 2.5%, which is stronger than the US, Eurozone and Canada. We are making the transition from Australia’s largest resources investment boom in our history to a broad based net growth with large increases in exports, but iron ore prices are still falling as key trading partner China’s economy slows.

LEN FRETWELL Publisher / Managing Editor Digging & Drilling Australasia and Race & Restore Magazines

A few attention seeking analysts vying for media coverage are making some outrageous forecasts about a pending recession in Australia, but there does not seem to be any of the usual recession indicators. Australia is grappling with falling commodity exports prices, including iron ore and oil but I do not believe Australia is heading for a recession. It is important to note that the world economy is actually growing at a reasonable pace with global real GDP expected to rise between 3 and 3.5% in 2016. This will drive Australia’s export sector and assist with much needed business confidence. There is an enormous difference between a recession and weak GDP growth.

I congratulate Gina Rinehart for being awarded 2015 miner of the year by the Sydney Mining Club. The Roy Hill Mine started construction in 2014 in the Pilbara, Western Australia and is the largest private land based mining and infrastructure project in the world. This $10 billion iron ore project that will produce 55 million tons of iron ore annually and is a credit to her vision and entrepreneurial talent.

In addition to developing mining and processing facilities, Gina Rinehart has built a new airport to handle 737 aircraft, a 344 kilometre heavy haul standard gauge railway line for 232 wagon trains that carry 32,000 tons of iron ore each day from the Roy Hill mine site to Port Hedland, 277 kilometres away and two new shipping berths have also been dredged in Port Hedland’s inner harbour, which has already seen the first shipment depart. Gina Rinehart is truly an inspirational Australian.

Woodside Energy and all the North West Shelf Project participants have announced an additional $2.75 billion investment in the Greater Western Flank Phase 2 (GWF-2) Project. Located off the north-west coast of Western Australia, the.GWF-2 development will extract 1.6 trillion cubic feet of raw gas and the initial project start-up is expected to commence in 2019. The North West Shelf Project has provided over 40% of Australia’s total oil and gas production since it commenced production in 1984. As we remain on track to become the world’s largest LNG exporter by 2020, continued investment in this import project further highlights Australia’s ability to develop our gas. And 15 new projects worth around $13 billion have been approved for investment in Australia’s resources and energy sectors since November, 2014.

The Australian government is taking steps to expand our domestic uranium mining and the New South Wales government is encouraging further exploration of the state’s reserves.

Global uranium prices plunged after the Fukushima disaster in 2011 but analysts predicting that the industry will soon recover and that uranium prices will flourish by the end of the decade. Demand for the radioactive fuel is rising from emerging giants, such as India and PR China and this surge in demand will boost prices. Market insiders predict that uranium demand could double over the next 20-years as PR China and other developing countries turn to this carbon-free, non-polluting source of energy.

We are always looking for interesting and innovative energy and resource sector news and I invite energy and resources sectors members to contact me directly with any information that may be of interest to our readers. I look forward to receiving your feedback.

Best regards

Len F retwell www.diggingdrilling.com

Race and Restore

WHAT’S IN THIS ISSUE »

IN THIS ISSUE 3 EDITOR’S LETTER 6 MOMENTS IN PICS: PERTH TRUCK & TRAILOR SHOW 8 BHP-VALE DAM IN BRAZIL 10 NEWS IN BRIEF: OIL, GAS & MINING NEWS HIGHLIGHTS FOR THE QUARTER 11 AUSTRALIAN MINISTER FOR RESOURCES, ENERGY AND NORTHERN AUSTRALIA MESSAGE 14 SANTOS FIRST CARGO SHIPPED FROM GLNG 18 PROJECT POSTCARD: SANTOS GLNG FIRST CARGO DEPARTURE 23 ICHTHYS PIPELAY COMPLETED

DIGGING & DRILLING AMP TOWER - LEVEL 28 AUSTRALASIA 140 ST GEORGES TERRACE PERTH WA 6000 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 ROBIN WHITLOCK, STEPHEN DAWSON, ANDREW BURRELL KINSLEY HAYFORD EMMANUEL SOLOMON

GRAPHIC DESIGNER BRANDON WANG - O 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 SISTER PUBLICATION RACE & RESTORE MAGAZINE RACE AND RESTORE COVER SANTOS GLNG FIRST CARGO DEPARTURE

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.

4 DIGGING & DRILLING MAGAZINE DECEMBER 2015 - FEBRUARY 2016

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Moments

MOMENTS IN PICS »

PERTH TRUCK & TRAILER SHOW

6 DIGGING & DRILLING MAGAZINE DECEMBER 2015 - FEBRUARY 2016

DECEMBER 2015 - FEBRUARY 2016 DIGGING & DRILLING MAGAZINE 7

BHP-Vale Dam in Brazil Brazilian authorities were racing to rescue victims and determine the death toll after a town was flooded by mine waste from a burst dam owned by two of the world’s largest mining companies, Vale SA and BHP Billiton Ltd. The flood and its toll on the local community threatens to be major financial and reputational challenge for BHP and Vale, which jointly own the iron-ore mine operated

by Samarco Mineração SA. BHP shares fell by up to 5.4% Friday in Australia and more than 4% in London as investors fretted about the damage.

known as a tailings dam, used to hold water and discarded minerals from the nearby iron-ore mine.

Mr. MacKenzie said the miner’s priority was to help manage the immediate rescue efforts. Firefighters were using tractors to open a road to reach stranded residents, and a bus with medical personnel had been moved near the scene.

The flood felt like an earthquake as it rushed through Bento Rodrigues, said Andrew Oliveira, who was working there at the time, in an interview with Globo TV. He said he ran until he reached safety.

BHP Chief Executive, Andrew MacKenzie held a news conference in Melbourne to address the unfolding crisis, “So I survived, thank God, for not having stopped running, calling it a “tragic incident.” He said the local area had this saved my life,” he said. been devastated by flooding, but that the companies “still Samarco isn’t directly run by the global mining giants, but don’t know the full extent of the situation.” is operated as a separate company, with BHP and Vale as joint shareholders.

“We really need to be able to look a bit more carefully when we have daylight,” he said. Mr. Mackenzie said he couldn’t comment on possible fatalities or what role A spokesman for Vale declined to comment, pointing to a statement by Samarco that said the venture was prioritizing weather conditions had played in the incident. helping people and mitigating damage to the environment “Our biggest imperative is to secure the safety of the and that it wasn’t yet possible to confirm the cause of the incident. community and obviously our workforce,” he said.

The dam broke at 4:20 p.m. local time on Thursday the 5th of November, 2015. The structure that failed is what is

Mining accidents aren’t uncommon in the region. In January 2007, the collapse of a tailings dam owned by Mineração

Rio Pomba Cataguases Ltda. resulted in catastrophic flooding that rendered thousands homeless in the cities of Miraí and Muriaé.

roughly 3% of annual earnings and 5% of valuation—a meaningful unit for such a large company, said Australian bank Macquarie.

But such events are a rarity for mining giant BHP, which prides itself on high safety standards. Still, in the year through June it recorded five worker fatalities, compared with none the 12 months prior. It said it had since implemented a new companywide safety program.

In the year through June, the venture contributed US$695 million to BHP’s underlying earnings and generated a total US$1.41 billion in revenue. Macquarie values Samarco at US$6.2 billion.

The last significant tailings dam failure at a mine owned

by BHP was at Pinto Valley in Arizona in 1997. A dam was being covered with waste rock when its wall collapsed, sending a wave of tailings and rock into the creek below.

There were no serious injuries. BHP sold that mine two years ago.

Investors feared Thursday’s incident could cause the Samarco mine to shut down for some time, said Angus Nicholson, a Melbourne-based analyst at broker IG. BHP’s Australia-listed shares closed down 2.5%, compared with a 0.4% rise in the broader Australian market. The company is dual-listed in Sydney and London.

“It could be a significant amount of time before it [Samarco] gets back to production, so I am only surprised we haven’t seen a bigger selloff,” Mr. Nicholson said.

Samarco is an important business for BHP, accounting for

“The dam failure is a major concern and could have a material impact on the near-term production outlook for Samarco,” it said in a client note. BHP is one of the world’s biggest producers of iron ore globally. Its earnings have been hit by a slump in prices for the commodity since the start of last year, although both it and fellow mining giants Vale and Rio Tinto PLC have continued to increase their output.

Samarco produces about 29 million metric tons of iron ore, and is one of Brazil’s biggest deposits of the steelmaking commodity. It has enough reserves to last for more than three decades, at current rates of production.

Image Caption: The US$33 billion expansion plan was shelved in 2012.

Image courtesy of BHP Billiton

DECEMBER 2015 - FEBRUARY 2016 DIGGING & DRILLING MAGAZINE 9

NEWS IN BRIEF »

OIL, GAS & MINING NEWS HIGHLIGHTS FOR THE QUARTER

NEPTUNE WINS SHELL CRUX CONTRACT OFF AUSTRALIA Neptune has been awarded a geophysical and light geotechnical survey services contract by Shell Australia Pty Ltd (Shell).

The work will start in November 2015 and includes a site survey of the Crux gas field and a 160km route survey between the Crux and Prelude gas fields, in water depths ranging from 90m to 280m, the company informed.

Neptune will collect high resolution Multi Beam Echo Sounder (MBES), Side Scan Sonar (SSS) and Sub Bottom Profiler (SBP) data on-board the ‘Mermaid Investigator’ Offshore Supply Vessel (OSV).

Neptune Chief Executive Officer, Robin King, said: “This project is the first to be awarded to Neptune by Shell in Australia and we are delighted to be involved. Furthermore, our survey business in Australia has been awarded a number of contracts in recent months and it is pleasing to see a steady flow of work for our Geomatics team.”

AUSTRALIA UNVEILS NEW RESEARCH ICEBREAKER FOR ANTARCTICA The Australian Government has provided the first look at Australia’s new icebreaker that will offer scientists an extended access to the Southern Ocean and Antarctica.

The new, custom built icebreaker will be uniquely tailored to meet Australia’s needs. It will be faster, larger, stronger and offer increased endurance compared with the ageing Aurora Australis.

The new ship provides a modern platform for marine science research in both sea ice and open water, MP Malcolm Turnbull wrote.

A multi-beam bathymetric echo sounder will enable seafloor mapping, while portable and flexible science laboratories will offer scientists space to conduct research.

Greg Hunt and Malcolm Turnbull unveil the vessel.

Greg Hunt and Malcolm Turnbull unveil the vessel.

The procurement represents the single biggest investment in the history of Australia’s Antarctic programme, with additional funding committed by the Australian Government to modernise shore-side infrastructure and equipment at Australia’s Antarctic stations and in Hobart.

For decades the Aurora Australis has been an icon in Hobart. The new ship will also be home ported in Hobart, further demonstrating the Government’s commitment to Tasmania’s role as the gateway to East Antarctica, MP Turnbull said.

Australian company DMS Maritime Pty Ltd has been selected as preferred tenderer to undertake the ship design and building process, and will then operate and maintain the icebreaker. The Department of the Environment and DMS Maritime Pty Ltd have recently started formal contract negotiations.

Subject to successful contract negotiations, the icebreaker will be built by Damen Shipyards. The new icebreaker is expected to be commissioned in October 2019.

Works will be performed from DeepOcean’s DPII MSV Volantis using the 2,800hp jet trencher UT-1.

This contract for post-lay intervention works is scheduled for Q4 2015 and will see DeepOcean’s Volantis mobilize from current works offshore Malaysia to Australian waters.

Tony Stokes, Managing Director of Asia Pacific & Middle East said: “We are extremely pleased to receive this award in Australian waters.

This project highlights the requirement for such front-end trenching technology in the region and the demand for expertise found within DeepOcean and the UT-1. We look forward to a successful campaign and growing our presence in Australian waters”

NEW AGREEMENT SIGNED WITH BANJIMA PEOPLE BHP Billiton has signed a new native title agreement with the Banjima People in Western Australia.

The BHP Billiton Banjima Comprehensive Agreement covers an area of 8263 square kilometres and includes a number of the Company’s Pilbara-based iron ore operations and most of the Banjima Native Title determination area.

BHP Billiton Iron Ore President, Jimmy Wilson, said the agreement was believed to be one of the most significant of its kind in Australia and highlighted the Company’s transparent and unique approach to engaging Indigenous communities.

“BHP Billiton and the Banjima People have carefully considered all of the terms of this agreement over many years to ensure it would provide real and lasting benefits to both parties,” he said.

“I am incredibly proud that we have secured an agreement that reflects our approach of developing true partnerships with Indigenous communities.

It moves us away from transaction-based engagement to an ongoing and open relationship that will span generations to come.

“With a life of more than 100 years, it provides long-term certainty for both BHP Billiton, in terms of our current operations and potential future developments, and the Banjima People, with regards to how we will respect and treat their land.”

Banjima Native Title Aboriginal Corporation RNTBC Chairperson, Slim Parker, said: “We are in the midst of a period of great change. Through the agreement, the Banjima People have a great opportunity to build a fantastic future through programs and projects.

“The Banjima People are privileged to be at the forefront of a future that can truly be fabulous in all areas of our lives. Change is the name of the game if we the Banjima People are to build prosperity through self-determination. This will enable sustainability of our law and culture for future generations to come.”

Simon Hawkins, CEO of Yamatji Marlpa Aboriginal Corporation, the native title representative body for the Pilbara region, said this agreement between BHP Billiton Iron Ore and the Banjima People is a positive outcome after many years of negotiation.

DEEPOCEAN NETS POST-LAY TRENCHING JOB IN AUSTRALIA

“This agreement between BHP Billiton and the Banjima People is a great achievement for all parties involved. It shows that mining and Traditional Owners can co-exist if parties are willing to listen and work co-operatively,” he said.

DeepOcean 1 UK Ltd., a subsidiary of DeepOcean, has been awarded a contract for the provision of post-lay trenching and survey works in Australia.

The area of the BHP Billiton Banjima Comprehensive Agreement includes some of BHP Billiton’s interests at Mining Area C, Yandi, Munjina, Upper Marillana, Ministers North, parts of Mudlark, Roy Hill and Marillana.

10 DIGGING & DRILLING MAGAZINE DECEMBER 2015 - FEBRUARY 2016

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First cargo shipped from GLNG

Santos announced the first shipment of liquefied natural gas (LNG) from its US$18.5 billion GLNG project left Curtis Island on the 16th of October, 2015 bound for South Korea.

The first cargo is being carried by the Malaysian-owned LNG ship Seri Bakti and will be delivered to South Korea in the coming weeks.

Santos Managing Director and Chief Executive Officer David Knox said today’s announcement was the culmination of a historic journey for Santos.

“This is the largest project we have ever undertaken as a company and I am so proud that we have been able to deliver this on time and within budget,” Mr Knox said.

16 DIGGING&DRILLINGMAGAZINE JUNE2015-AUGUST2015

“Successfully delivering our first operated LNG project is a testament to our dedicated employees and contractors, the support we have received from governments, local communities, our customers and shareholders, as well as the strong relationships we enjoy with our joint venture partners.

“The first cargo from GLNG strengthens our position as a major and competitive LNG supplier to Asia.

“GLNG is a robust project and will generate strong cash flows for the

business for decades to come.�

Project construction began in 2011 and has taken more than 95 million work hours to date. More than 10,000 people have worked on the project which saw more than $15 billion invested Australia- wide, including $8 billion in Queensland alone.Production from the first train commenced in September and work on the second train is continuing to progress well, with Train 2 expected to be ready for start-up by the end of the year with first LNG in the second quarter 2016.

GLNG is a pioneering venture which produces natural gas from Queensland’s coal seams and converts it into LNG. It involves gas field development in the Surat and Bowen Basins, a 420-kilometre gas transmission pipeline and a two-train LNG plant on Curtis Island, near Gladstone which will have the capacity to produce 7.8 million tonnes of LNG per year when fully operational.

Santos is the operator and has a 30% interest in the project. Other coventurers include PETRONAS of Malaysia (27.5%), Total of France (27.5%) and KOGAS of South Korea (15%).

My r AFRICA: Kenya POSTCARD PROJECT»

SANTOS FIRST LNG SHIPMENT FROM GLNG

18 DIGGING & DRILLING MAGAZINE DECEMBER 2015 - FEBRUARY 2016 v

EPA: Iron ore mine expansion recommended for approval Report 1562 An expansion to an existing iron ore mine in Western Australian’s Pilbara region has been recommended for approval by the Environmental Protection Authority.

The approved Hope Downs Iron Ore Mine Proposal, 75 kilometres north-west of Newman, includes open cut mine pits and associated infrastructure. Proponent Hamersley HMS Pty Ltd, representing the Hope Downs Joint Venture partners, proposes to amend the existing Ministerial Statement (584) to develop and operate the Baby Hope proposal, which includes three above water table open pits, associated waste rock dumps, stockpiles and haul roads.

EPA Chairman Dr Tom Hatton said the proposal, which was assessed as an Assessment on Proponent Information – category A, could be managed to meet the EPA’s environmental objectives.

Figure 2: Project area conceptual layout

Figure 3: Hope Downs 1 Development Envelope

“The EPA has recommended that this proposal be approved, subject to a further set of conditions,” Dr Hatton said.

“In addition to the existing conditions in the Ministerial Statement, the EPA has recommended the proponent ensure all areas within the development envelope are rehabilitated and decommissioned to restore ecological sustainability.”

Dr Hatton said this would be achieved with the implementation of a mine closure plan, which will be regularly revised.

“The EPA has also recommended the proponent contribute funds to a government-established conservation fund to mitigate the significant residual impact of clearing up to 800 hectares of native vegetation in ‘good to excellent’ condition,” Dr Hatton said.

The EPA’s report to the Minister for Environment is now open for a two-week public appeal period, closing November 30, 2015. Appeals are administered independently by the Appeals Convenor and can be made at www.appealsconvenor.wa.gov.au The Minister for Environment will make the final decision.

EPA Report 1562 is available at www.epa.wa.gov.au

DECEMBER - FEBRUARY 2016DIGGING DIGGING & DRILLING MAGAZINE21 21 SEPTEMBER2015 - NOVEMBER 2015 & DRILLING MAGAZINE

ICHTHYS - Offshore Pipelay Completed Offshore pipelay has been completed for the Ichthys LNG project. Laying of the 42-in. gas pipeline began in June 2014.

The 890-km pipeline will deliver gas from Ichthys gas-condensate field offshore Western Australia to onshore gas liquefaction facilities at Bladin Point near Darwin, Northern Territory, for processing (OGJ Online, Sept. 25, 2015).

Inpex Corp., Tokyo, said the line is the “longest subsea pipeline in the southern hemisphere and the third longest subsea pipeline in the world.� Inpex is operator and 62.245% interest holder in the Ichthys LNG project.

The pipeline was installed by two Saipem barges.

Innovation in Australian subsea construction As far as offshore pipelines being Reserves for the project stand at more constructed in Australia go, it doesn’t get than 12 Tcf of gas and approximately much bigger than the 889 km subsea 300 MMbbl of condensate. export pipeline for the INPEX-operated Ichthys LNG Project.

The project is initially expected to produce 8.4 MMt/a of LNG from two

Once completed, the 889 km, 40-inch trains, 1.6 MMt/a of LPG and 100,000 diameter pipeline will transport gas bbl/d of condensate at peak. The from the Ichthys Gas Field, located facilities will include two 165,000 cubic in permit WA—37-R in the Browse metre LNG storage tanks.

Basin, approximately 200 km offshore northwest Australia, to an onshore LNG processing facility located at Blaydin Point, Darwin.

The Ichthys LNG Project equity interest is INPEX (66.070 per cent), TOTAL (30 per cent), Tokyo Gas (1.575 per cent), Osaka Gas (1.2 per

Before leaving the gas field, the gas cent), Chubu Electric Power (0.735 will undergo preliminary processing per cent), and Toho Gas (0.42 per at the offshore central processing cent). facility (CPF) to remove water and raw liquids, including a large proportion of the condensate. This condensate will be pumped to a floating production, storage and offloading (FPSO) facility anchored nearby, from which it will be transferred to tankers for delivery to markets.

Saipem have been awarded the main construction contract for the offshore pipeline, following on from initial frontend engineering and design works undertaken by JP Kenny and AMEC. Boskalis is also subcontracted to Saipem to assist with associated pipeline works.

24 DIGGING & DRILLING MAGAZINE DECEMBER 2015 - FEBRUARY 2016

ICHTHYS - World’s Largest Semi-Submersible Platform

The INPEX-operated Ichthys LNG Project Speaking at the event, Mr Ito said the has announced a major milestone for its ceremony was significant as it recognized the introduction of the first large hull block Central Processing Facility (CPF). to the SHI floating dock, where the CPF The first dry dock hull block erection was will be constructed. celebrated with a ribbon cutting ceremony in the Samsung Heavy Industries (SHI) “The placement of the hull block marks the shipyard in Geoje, South Korea, where the culmination of huge fabrication efforts since CPF is being constructed. the first steel plates were cut in January last year,” he said.

The ceremony was attended by INPEX president Director Australia Seiya Ito and “Successful delivery of the CPF is of Ichthys Project Managing Director Louis great importance as it is the centre of the Bon. Project’s offshore development, with all

future production being processed through offshore processing, with the remainder sent to Darwin with the gas via the 889 this facility. kilometer gas export pipeline.

“Today’s event is another major step towards the completion of this world-class Earlier this year on 19 February, a major facility by late 2015, and a major step in milestone was reached for the FPSO the delivery of the Ichthys LNG Project when the Project celebrated its keel laying.

– one of the world’s most exciting and With topside dimensions of 150 metres by challenging developments.”

110 metres, the CPF will be the world’s The CPF is a very large floating facility that largest semi-submersible platform. gathers natural gas and condensate from Once complete, it will be towed around the Ichthys Field’s subsea wells.

6,000 kilometers to the Ichthys Field in Gas will undergo initial processing on the the Browse Basin, offshore Western CPF, which will be permanently moored at Australia. the field, to extract condensate and water and remove impurities in order to make Work is underway for all major Ichthys LNG Project facilities, including the Central the gas suitable for transmission.

Processing Facility, the FPSO, the subsea Most condensate will be transferred from structures, flow lines and umbilical’s, the the CPF to the nearby floating production, Gas Export Pipeline, and the onshore storage and offloading facility (FPSO) for LNG processing plant in Darwin.

December 2015 - February 2016 DIGGING & DRILLING MAGAZINE 27

ORICA FURTHER ENGAGES LOCAL PILBARA COMMUNITY PARTNERSHIPS As part of its commitment to both the Pilbara and to science and technology, Orica has donated significant equipment and training to local schools and Nickol Bay Hospital.Orica Mining Services Pilbara CEO, Paul Bernhardt, said: “With over 100 Orica employees working in the Pilbara region, and projects in train that will further cementour local presence, we are dedicated to making a positive contribution to thiscommunity.”

ORICA PARTNERS WITH THE SMITH FAMILY AND STELR TO BOOST EDUCATION IN THE PILBARA

L-R: Cameron Ross, Head of Department at Hedland Senior High School; Cathryn Cutfield, Karratha Senior High School Teacher; Grant Lo wood, Tom Price Senior High School Teacher; Paul Natale, Newman Senior High School; Teacher Pennie Stoyles, STELR Program Manager; Daphne Trevurza, The Smith Family Pilbara Team Leader; Greg Boylan, Hedland Senior High School Teacher Orica has joined forces with The Smith Family and the Science & Technology Education Leveraging Relevance (STELR) Project, to host a teachers’ professional development day, and donate science and technology equipment to Pilbara High Schools on Tuesday 1 December.

The initiative is part of a new three-year funding commitment from Orica to the Australian Academy of Technology and Engineering’s STELR Project, which underpins an ambitious program to expand the reach of in-

novative science education. Newman, Port Hedland, Karratha, Tom Price and St Luke’s Senior High School Teachers will attend the professional development course, where they will learn how to utilise the equipment effectively in the classroom to maximise the benefit for local students.

Orica Mining Services Pilbara CEO, Paul Bernhardt, said: “Orica is the founding and major sponsor of STELR and has been involved since 2009. As an organisation that has technology and innovation at its core, Orica is proud to support STELR, which aims to engage students in science, technology, mathematics and engineering. The program’s hands-on renewable energy module now reaches more than 35,000 students each year.

“Thanks to the combined efforts of Orica, STELR and The Smith Family, we have been able to identify the need for equipment and training within schools in the Pilbara region, and activate this fantastic venture,” he said.

Australian Academy of Technology and Engineering (ATSE) Education Manager, Peter Pentland, said: “STELR puts a practical science-based curriculum into the classroom, building on what students are already learning with the aim of encouraging students to consider science-based careers. “We are proud to work with Orica and through The Smith Family’s local contacts to provide a valuable learning opportunity that is already in more than 450 schools across the country,” said Mr Pentland. The Smith Family, a national children’s education charity, has partnered with Orica in Western Australia since 2014. The partnership supports The Smith Family’s education programs in the Pilbara region for disadvantaged children. Lorna Woodley, WA General Manager at The Smith Family, said: “With Orica’s support, in the Pilbara we now help more than 200 students through our Learning for Life financial sponsorship, working in 15 partner schools, and we run a range of learning programs including student2student, Learning Clubs and iTrack.” “With this initiative, we were able to assist STELR to make some local contacts thanks to our in-region presence, and it will be great to see the hard work come to fruition on the 1st knowing it will benefit students in the region,” she said.

ORICA DONATION BENEFITS LOCAL HOSPITAL Orica and the Humpty Dumpty Foundation will be making a difference to the lives of children in the Pilbara after the donation of medical equipment to Nickol Bay Hospital on Wednesday 2 December.

The equipment, a Medfusion 4000 Syringe Driver and Jaundice Meter, valued at $14,000, was identified by the Humpty Dumpty Foundation as critical for the wards at Nickol Bay Hospital and come as part of Orica’s recent announcement that it will provide medical equipment to six hospitals across five continents as a single initiative under its Global Community Partnerships Program.

Paul Bernhardt, said: “Working closely with the Humpty Dumpty Foundation has allowed us to identify the outstanding work of health services in the Pilbara and we will continue to support the Foundation to purchase essential and often life-saving medical equipment for sick and injured children in the communities in which we operate.”

DECEMBER 2015 - FEBRUARY 2016

DIGGING & DRILLING MAGAZINE 29

L-R: Matthew Ravenscroft, WA Country Health Service Operations Manager West Pilbara; Paul Bernhardt - Orica Mining Services Pilbara CEO; Monica Seth, District Director of Nursing West Pilbara; Jo Dawson, Clinical Midwifery Specialist; Baby Ruby and parents Bonnie and Brett Slater who will benefit from the recent donation; Debbie Jones, Orica Account Lead; Natalie Baine, Orica Global Community Manager

Orica has sustained a close partnership with the Humpty Dumpty Foundation over the years, having also donated a much needed Mobile Infant Warmer, valued at $10,500, to the Hedland Health Campus maternity ward in 2013.

Humpty Dumpty Foundation Executive Chairman and Founder, Paul Francis, said: “Thanks to our Humpty “Good Eggs” supporters across Australia, we have been able to create a better environment and treatment for children living in the Pilbara. “ With the support of Orica and our community partners, we hope to continue to help Western Australian children by providing the medical equipment needed for hospitals to specifically care for children and babies,” said Mr Francis.

With Orica and Yara’s Burrup AN plant due to open near Dampier soon, and the company’s existing Pippingarra Plant near Port Hedland, Orica will continue to invest in the growth and wellbeing of the Pilbara.

As part of its ongoing charitable work, Orica WA also recently joined in with Pilbara customer MACA for the 2013, 2014 and 2015 Ride to Conquer Cancer raising funds for a Perth-based cancer research foundation.

30 DIGGING & DRILLING MAGAZINE DECEMBER 2015 - FEBRUARY 2016

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 Deep sea mining 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

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MINERALS COUNCIL OF AUSTRALIA REALISING AUSTRALIA’S URANIUM POTENTIAL: LAUNCH OF POLICY PAPER ON AUSTRALIA’S URANIUM POTENTIAL BY PROFESSOR SINCLAIR DAVIDSON AND DR ASHTON DE SILVA

Australia’s uranium industry holds enormous opportunity for jobs and export revenue growth as governments around the world continue to adopt policies to deal with climate constraints.

However, such opportunities will only be realisable if Australia undergoes policy reform making Australia a more attractive uranium investment destination, and a more competitive supplier.

These findings are contained in a new report by leading economists Professor Sinclair Davidson and Dr Ashton de Silva. The report, commissioned by the Minerals Council of Australia (MCA), is titled ‘Realising Australia’s Uranium Potential’ and provides an economic analysis of the uranium industry contribution to the Australian economy, as well as its potential in the years ahead under various assumptions and scenarios.

The upshot is that Australia’s uranium industry could expand from its current state of around 3000 direct and indirect jobs and $600 million per annum value, to over $9 billion per annum value with over 20,000 direct and indirect jobs by 2040.

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DIGGING & DRILLING MAGAZINE 33

Professor Davidson and Dr de Silva show that expansion potential in Australia’s uranium sector is substantial and based on two key variables: growth in nuclear power generation worldwide, and growth in Australia’s share of global uranium production.

How much nuclear power grows worldwide will be determined by factors almost entirely outside of Australia. However, their modelling was based on scenarios developed by the International Energy Agency (IEA) highlighting that the more countries execute policies to mitigate climate change, the more nuclear power will grow.

More importantly, Professor Davidson and Dr de Silva show that the most significant variable is largely within Australian control; and that is the share of global production. Despite having almost a third of the world’s uranium, Australia produces just 10 per cent of global production. With vision, policy reform, and state and federal commitments to increase competitiveness and investment attractiveness, Australia could target a share of global production closer to its resource endowment.

The economists show that in the process, Australia could reap substantial benefit in jobs and export revenue; particularly if government policies around the world continue to encourage emissions reduction in energy production. Such scenarios could see Australian uranium fuelling as much as 5 per cent of the world’s electricity generation with zero emissions coming out of nuclear reactors. This would be an outstanding contribution to global low emissions electricity generation.

Statement from Daniel Zavattiero, Executive Director - Uranium, Minerals Council of Australia

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34 DIGGING & DRILLING MAGAZINE DECEMBER 2015 - FEBRUARY 2016

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