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D&D MAY – JULY 2022 • ISSUE 36

AUSTRALASIA AUSTRALASIA’S QUARTERLY ENERGY & RESOURCES MAGAZINE

UKRAINE SPECIAL NUCLEAR SAFETY REPORT

STEVE KOLODY COMMERCIAL PANEL & PAINT

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Editor’s Letter The LNG spot market has seen unprecedented price volatility due to the Russian invasion of Ukraine. A recent ACCC report shows prices soaring from AUD 2.29/GJ in July 2020 to AUD 44.57/GJ in April 2022. LNG is usually sold under long-term contracts linked to the oil price which has enabled operators to sanction projects with a fair degree of assurance over often two or three decades of operation. LNG capacity has recently been developed directly related to the spot market and with such a volatile market, driven by factors beyond operators control, how can operators have sufficient confidence to commit the huge investments required to develop a greenfield LNG facility? The war in Ukraine and COVID have demonstrated that market conditions can change extremely quickly and it is important that the financial structure of any business has a strong foundation and the capacity to handle significant market volatility.

LEN FRETWELL Publisher / Managing Editor Digging & Drilling Australasia Magazine

Despite COVID, the conflict in Ukraine and increased awareness about ESG causing widespread havoc to the oil and gas sector globally, Shell (brand value up 18% to US$49.9 billion) has not only withstood the global disruption but been able to grow its brand value this year, according to a new report from brand value consultancy, Brand Finance. After a tough two years due to wildly fluctuating demand, the oil and gas sector is powering ahead with the world’s 50 most valuable oil and gas brands achieving an aggregate growth of 8% this year.

Prior to the 2022 federal election in Australia, the Morrison Government made it easier for highly skilled migrants to remain in Australia and to continue working in critical sectors as Australia’s economic recovery continues. These measures recognised the contribution of skilled migrants who remained here during the COVID-19 pandemic and encourage them to stay in Australia. Eligible skilled workers, already in Australia, would continue to support local businesses facing critical shortages, particularly in health and remote regions. These changes recognise the economic value-add of these critical workers and retaining them will greatly assist in Australia’s economic recovery. Hopefully these changes for Existing Temporary Skill Shortage (subclass 482) visa holders and Legacy Temporary Work Skilled (subclass 457) visa holders who no longer meet the age requirement, will remain in effect post-election.

Vimy Resources Limited (ASX:VMY, OTCQB:VMRSF) will commence a major resource extension drilling program at the high-grade Angularli deposit, part of the company’s Alligator River project in the Northern Territory in June 2022. Work completed since the acquisition of Alligator River in 2018 has shown the potential of the project to develop into a Tier 1 global uranium project.

Vimy is accelerating its resource extension drilling program at the Angularli deposit following the lifting of access restrictions due to COVID-19. The main Angularli deposit is open at depth and parallel uranium-bearing structures have been identified to the south-west and along strike to the north and south. Angularli has an existing Inferred Mineral Resource of 0.91Mt at a uranium grade of 1.29% U3O8 containing 26Mlbs of U3O8.

Demand for Australian exports could take another hit as China plans to reduce energy exports and utilise its own coal reserves. Australian National University expert analysts reported that demand for overseas thermal and metallurgical coal will fall by 26% from 2019 to 2025. If China achieves it target of zero net emissions by 2060 these imports could fall to 45% during this period and Australia’s coking coal exports to China are expected to fall to between 20 & 22 megaton.

Australia’s resource and energy industries have every opportunity to prosper in a low-emissions world by fostering alternative economic futures.

We welcome our latest advertiser HEVILIFT and thank Ashley Roy, Country Manager & CEO Australia at HEVILIFT for offering print copies of D&D Magazine to their FIFO passengers in their fixed wing and rotary wing seat back pockets and in the passenger departure lounges at all of the airports where HEVILIFT planes and helicopters operate throughout Australia.

In support of Ukraine, we have published the Ukrainian flag on our front cover. I have had the privilege of spending a considerable amount of time in Ukraine including Kyiv, central, inland and coastal cities. In my experience, Ukraine has a beautiful culture with peaceful and friendly people. We display Ukraine’s flag in protest of the unprovoked and illegal military invasion of the peaceful country and people of Ukraine.

Best regards

Len F retwell Len Fretwell Publisher/Managing Editor

www.diggingdrilling.com

@DigandDrill MAY – JULY 2022 DIGGING & DRILLING MAGAZINE

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WHAT’S IN THIS ISSUE »

IN THIS ISSUE 3

EDITOR’S LETTER

6

UKRAINE NUCLEAR SAFETY REPORT

8

APPEA CONFERENCE & EXHIBITION 2021

14

CHALICE MINING AUSTRALIAN RECORD PGE DISCOVERY

16

AI GROUP CUSTOM DESIGNED VIDEO-BASED AI SOLUTIONS

21

CARNARVON ENERGY PAVO-1 WELL OIL DISCOVERY

22

MINERAL RESOURCES WODGINA FIRST LITHIUM OUTPUT

24

GEFC GAS FUTURE

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Digging & Drilling Australasia welcomes comments and suggestions, as well as information about errors that call for corrections. We are committed to presenting information fairly and accurately.

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

MAY – JULY 2022 DIGGING & DRILLING MAGAZINE

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FEATURE ARTICLE»

Clean Energy in a time of Dirty War UKRAINE Special Nuclear Safety Report:

We are witnessing the first major war to take place in a country with an established nuclear power infrastructure, which accounts for 54% of its total energy needs.

And the world is paying unprecedented attention as Russian aggression in Ukraine threatens nuclear safety of the European and neighbouring continents.

HANDOUT/BLACK SKY - This satellite image with overlaid graphics shows military vehicles alongside the Chernobyl nuclear power plant in Ukraine was taken on February 25, 2022 just over a day after Russia launched its invasion of Ukraine.

It has taken several decades to strip the word “nuclear” of its

As the world remembers the Chernobyl tragedy (26 April 1986)

negative associations earned during the Cold War and enhanced

on its 36th anniversary, the largest nuclear power plant in Europe

by the Chernobyl events of 1986.

remains surrounded by the invading troops in Zaporizhia region,

Today, nuclear energy takes centre stage once again for the wrong reasons as Russia’s open attack on Ukraine began on 24 February 2022.

Ukraine. Its power is ten times that of Chernobyl, producing one fifth of the total power used in Ukraine. It is also among the ten largest power plants in the world.

Global nuclear safety is potentially facing a two-fold threat.

The first is due to the verbal warnings by the head of the Russian state to use nuclear weapons without hesitation.

The second is indiscriminate fire and attacks by the invading Russian troops in and around nuclear facilities in Ukraine.

There are (currently) two out of the six nuclear facilities in Ukraine that may be more critical to maintaining global nuclear safety than the threats of a head of state - Zaporizhia NPP and Kharkiv’s experimental nuclear reactor Neutron Source.

Europe’s largest nuclear plant is attacked by Russian Forces in the Zaporizhia Region

In April Agency’s Director General Mr Grossi visited Ukraine, heading an assistance mission to deliver vital equipment to conduct radiological and other assessments at the Chernobyl Nuclear Power Plant, which was held by Russian forces for five weeks before they withdrew on 31 March.

Ukrainian staff are operating the plant under immense pressure, controlled by the Russian military.

Fires at Chernobyl Nuclear Power Plant

On March 4, 2022, the Zaporizhia Nuclear Power Plant was

During those five weeks, the original staff at Chernobyl NPP

attacked by Russian forces and a training laboratory on the

spent 25 days on duty, before the first rotation arrived on

premises caught fire as the invading troops were shooting

March 20-21. Despite the unprecedented and already heroic

indiscriminately at the plant.

600 hours shift, 13 employees refused the rotation, remaining

Regulating authorities responsible for the nuclear safety are not allowed on site since Zaporizhia NPP was captured.

on duty till the new rotation arrived in April following the retreat of the Russian military forces.

The safety of the Ukrainian staff at the station is the greatest concern and cannot be underestimated.

Those operating the plant cannot get appropriate rest while working under occupation and immense stress levels.

The International Atomic Energy Agency (IAEA) reports to be “monitoring the situation closely” without too many details of what that entails. The Agency is yet to serve its mission and provide the necessary safety guarantees.

In the east of Ukraine, Kharkiv Institute of Physics and Technology is the site of an experimental nuclear reactor Dzherelo Neitroniw (Neutron Source) used for research and to produce isotopes for medical and industrial use.

The State Nuclear Regulatory Inspectorate of Ukraine reported that on 4 April the Institute was completely without power due to damage to the central distribution substation caused by the fire of the Russian military. Kharkiv remains under fire at the time this article is written.

The International Atomic Energy Agency Statute outlines its intention ”to accelerate and enlarge the contribution of atomic energy to peace, health and prosperity throughout the world”.

The current situation in Ukraine is sadly proof of the opposite.

The Agency “shall ensure, so far as it is able, that assistance provided by it or at its request or under its supervision or control is not used in such a way as to further any military purpose”.

The world is relying on that intent.

Chernobyl Nuclear Power Plant European nuclear physicists and nuclear veterans are calling on the IAEA to undertake a range of measures to ensure nuclear safety in Ukraine and take the situation under its full control in their open letter to the Agency’s Director General.

In one voice they express their profound concern that without IAEA full control and leadership of the situation, the future of zero-emission nuclear energy and the confirmation of its safety will have no future.

Without ensuring that safety, in the battle between man-made laws and the laws of nuclear fusion it is easy to predict which will win. The win, however, will not stand to benefit humanity. The safety of the four nuclear plants and two laboratories in Ukraine must be ensured in the interests of the world.

MAY – JULY 2022 DIGGING & DRILLING MAGAZINE

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APPEA Conference & Exhibition The 2021 Australian Petroleum Production and Exploration Association (APPEA) 60th Anniversary conference was held at the Perth Convention and Exhibition Centre, WA and is the biggest oil and gas event in the southern hemisphere.

The annual event brought together over 120 companies from the oil and gas sector, with exhibitions from industry leaders, innovators, policy makers and energy professionals.

The Principal Sponsors were Clough and Woodside.

Andrew McConville, Chief Executive, APPEA The APPEA 2021 conference is the biggest ‘oil and gas’ event in the Southern Hemisphere and the APPEA team and contractors who brought the APPEA 2021 event to life made a mammoth effort requiring traditional planning to be completely overhauled due to COVID 19 restrictions.

The Prime Minister, the Hon Scott Morrison opened the conference to more than 1700 delegates from across Australia and the world. The closing address was made by Andrew McConville, Chief Executive, APPEA As part of his closing remarks, Mr McConville said; “We have come together as one to understand the opportunity that a decarbonising world presents to us. The opportunity that powering the world into the future presents.

And by 2030, our industry has the opportunity and indeed the obligation, to be leaders in large scale hydrogen and CCS development. We know natural gas is a pathway to a largescale hydrogen industry. I would argue we are the most sensible pathway. Our LNG export success means the Australian upstream oil and gas industry has the technology, expertise, commercial and trade relationships to make hydrogen exports a reality.

Mr McConville ended by saying; “The opportunity that a hydrogen future presents. The opportunity that the rising tide of activism presents for us in terms of how we can respond, engage and drive a narrative for our industry, on our terms, built on the contribution we are making, the heavy lifting we are doing and the role we, not anyone else, can play, in decarbonising our energy future.

So long as we continue to speak up and convince governments and financiers to choose the path of collaboration and innovation over the path of division and exclusion, this conference, your association, our industry and the world, has a bright future ahead.”

The Minister for Resources, Water and Northern Australia, Keith Pitt, addressed the conference by video and used this as an opportunity to launch the 2021 Offshore Petroleum Exploration Acreage Release. This is the first time launching the offshore petroleum acreage release at the conference since 2018. It has the potential to open up offshore areas for carbon capture, use and storage opportunities.

Australian Government agencies in attendance included Geoscience Australia, CSIRO, The Australian Institute of Marine Science, The National Offshore Petroleum Safety and Environmental Management Authority and The National Offshore Petroleum Titles Administrator.

APPEA Western Australia Director Claire Wilkinson said, “In

reduce emissions in importing countries by about 170 million

Australia, our industry contributes 3% to Australia’s GDP and

tonnes each year.

around 13% of our total exports supporting 80,000 jobs directly and indirectly in Australia and hundreds of thousands more in mining and minerals processing, electricity generation, manufacturing, transport and other industries that rely on the sector’s outputs,” “No state understands this more than Western Australia, but this is just the tip of the iceberg; a recent EY report showed that under the right investment settings, the oil and gas sector could provide a $350 billion boost to the economy and more than 220,000 jobs over the next two decades.

“Our industry is also doing a lot of heavy lifting when it comes to reducing emissions from the energy sector. Australia’s natural gas not only reduces emissions and supports renewables in Australia, it also reduces emissions across importing countries in Asia. In fact, Australian liquefied natural gas is helping to

“Natural gas plays an important role in balancing renewable energy and our industry is also leading the world in the practical development of carbon capture and storage and hydrogen to enable a clean energy future.”

The fact APPEA held a conference at all in 2021 is testament to Australia’s strong COVID response and how the industry played a big part ensuring the lights stayed on and the factories still produced.

The Association was formed in 1959 as the Australian Petroleum Exploration Association (APEA) and held their first Conference on the 14th and 15th of March 1961.

For more information about APPEA visit; www.appea.com.au.

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NEWS IN BRIEF » Minerals for climate action A new World Bank Group report, “Minerals for Climate Action” The Mineral Intensity of the Clean Energy Transition, finds that the production of minerals, such as graphite, lithium and cobalt, could increase by nearly 500% by 2050, to meet the growing demand for clean energy technologies.

It estimates that over 3 billion tons of minerals and metals will be needed to deploy wind, solar and geothermal power, as well as energy storage, required for achieving a below 2°C future.

This follows the World Bank’s 2017 report, “The Growing Role of Minerals and Metals for a Low Carbon Future”, which concluded that to realize a lower-carbon future there will be a substantial increase in demand for several key minerals and metals to manufacture cleaner energy technologies. The clean energy transition will be significantly mineral intensive and while the growing demand for minerals and metals provides economic opportunities for resource-rich developing countries and private sector entities alike, significant challenges will likely emerge if the climate-driven clean energy transition is not managed responsibly and sustainably.

Oil and gas majors look to carbon capture to diversify revenue streams after committing to 2050 net zero emission target As the energy transition heats up, many oil and gas companies have begun to recognize the writing on the wall and commit to net zero emissions by 2050 or sooner, according to GlobalData.

Carbon capture, utilization, and storage (CCUS) is seen as a path for oil and gas companies to reach those targets while generating additional revenue, and to some degree as a necessary component of global decarbonization as well, observes the leading data and analytics company.

GlobalData’s latest report, ‘Carbon Capture, Utilisation and Storage (CCUS) Strategies in Oil and Gas Industry’, reveals that existing CCUS capacity is concentrated at natural gas processing plants due to the use of captured CO2 in Enhanced Oil Recovery (EOR) activities within the upstream segment of oil and gas. By 2030, all the largest CCUS sectors shown are expected to grow, but none faster than the power sector, which will become the largest user of CCUS capacity.

Several oil & gas majors are already collaborating on CCUS projects in the power sector, demonstrating that these companies are beginning to diversify their revenue streams

APPEA board appoints new chief executive Australian Petroleum Production & Exploration Association (APPEA) Chair Ian Davies has announced the appointment of Samantha McCulloch as APPEA Chief Executive.

Ms McCulloch will join APPEA from the International Energy Agency, having led the IEA Carbon Capture, Utilisation and Storage (CCUS) Unit since 2018. As an internationally recognised expert in CCUS, Ms McCulloch brings more than twenty years’ experience in energy policy and advocacy within government, the private sector and industry associations in Australia and internationally.

Following the completion of a Bachelor of Laws (Hons) and Bachelor of Commerce (with Distinction) from the University of Wollongong, Ms McCulloch received a Master of Public Policy (with Merit) from the Australian National University. Mr Davies said the Board was pleased to welcome Ms McCulloch as APPEA Chief Executive.

“For more than 60 years, APPEA has amplified the voice of our industry and collaborated with governments and communities to provide energy for a better Australia. “We are very pleased to welcome Ms McCulloch, as an experienced candidate with an informed view of the critical role our industry continues to play in meeting global energy and climate goals. “Now more than ever, energy has a critical role to play.

Reliable, cleaner and affordable energy supply is fundamental to all Australians. It is fundamental to keep businesses running. It is fundamental to the economy. It is fundamental to livelihoods and our way of life. And our industry is critical to energy supply both now and into the future. “We look forward to the important work we will progress together, ensuring APPEA and our member companies are part of the conversation and the solution.”

Your Journey.

Our Mission.

An Eye On Expansion - Townsville Responsible Aviation – Hevilift Australia continues to cement itself as the FIFO provider of choice in Queensland with the The Journey to Carbon Neutral Flying recent award of three new contracts supporting the mining industry and in this article we take a look at Hevilift’s new operating in Townsville andproviders the startup those new contracts.

Hevilift Australia is one base of Australia’s primary of of FIFO Aviation Services to the Mineral Resources Sector with operating bases in Perth, Townsville and Brisbane operating new generation high seating capacity ATR turboprop aircraft 7 days a week, 365 days a year.

Townsville Airport The Hevilift Group takes its environmental responsibilities extremely seriously and back in 2020 we set ourselves the ambitious

In recent years Townsville has experienced a downturn in target of achieving carbon neutral flying by 2024 with the adoption of a Carbon Emissions Program and we ensure that we partner mining employment however recent months have seen an with our mineral resources customers to achieve our carbon footprint reduction commitments. The program has allowed us to increase in employment figures with several mine sites reidentify how, as a responsible operator, we can contribute to the wellbeing of our planet as the impact that aviation can have on cruiting from the local area and as such the demand for the environment is well known.

FIFO flights from Townsville has increased. Hevilift worked closely with Townsville Airport in the latter part of 2019 and into early 2020 as it secured these new contracts to ensure that the infrastructure and support services met customer requirements.

These facilities included a permanent Hevilift staff office and a dedicated Aircraft Stand on the airports operating apron. To ensure that safe and efficient services were Mount Isa. Their staff had previously utilised a mixture of provided to assist in delivering on time departures Hevilift Regular Public Transport (RPT) flights from various locaselected Aus Flight Handling as the Handling Agent for its tions combined with busses to the mine site, however they were keen to provide a more robust and efficient method Townsville operations with Aus Flight Handling conducting of transportation to Mount Gordon and therefore selected passenger check ins and aircraft loading services followHevilift and its 68 seat ATR72-500 to conduct services being a period of training delivered by Hevilift’s own in house Hevilift Group MD Paul Booij visiting Fimito in late 2021 & Tree Saplings being readied forMount plantingGordon at Fimitovia in Cairns PNG. to provide tween Townsville and training department for the 68 seat ATR72 and 48 seat the new enhanced transportation service.

ATR42 that had been to selected

by Fimito the new and therefore choosing the right aircraft that can meet the Our largest initiative date is the treecustomers. planting project in Papua New Guinea. This initiative commenced in November

Townsville isaim a modern well-equipped with 2020 andAirport the initial of the project was to plantfacility a minimum easy parkingtrees andwith a passenger friendly our experience which of 80,000 the goal of offsetting total emissions works extremely well in delivering the needs of companies produced annually. Our recent expansion of FIFO services has requiring services. already FIFO seen us having to revise our target to 120,000 tress and Hevilift will continually revise the project as our operations grow.

Hevilift’s Newest Customers

The Responsible Choice – ATR Turboprop Aircraft

Byrnecut Australia - Byrnecut support the Capricorn Mine The mineral resources market relies heavily on turboprop near Mount Gordon (previously known as “Gunpowder”) aircraft to supporttoFIFO particularly where shorter which is located the operations, West of Townsville just North of distances and smaller aerodromes negate the use of jet aircraft

needs of the operation whilst at the same time addressing the environmental impact of aviation is a key choice. It is no surprise that fuel usage is the primary driver of the carbon emissions of an aircraft and the ATR series of aircraft are the most fuel efficient medium to large category turboprop aircraft in the world. The ATR series have fuel burn rates of between 15% to 25% less than the Dash 8 series of aircraft and this is one of the reasons that has led to it being the most successful medium to large category passenger turboprop aircraft across the world.

Hevilift’s ATR72-’s at Perth Airport As well as the amount of fuel being used on each flight the supply chain and aircraft manufacturer support also contributes to the environmental impact of an aircraft type. Currently in Australia apart from the 68 seat ATR the high seating capacity turboprop market is served by the 36 seat Dash 8 100 & 200 series, 50 seat Dash 8 300 series and the 74 seat Dash 8 Q400 aircraft however none of these aircraft are in production with

Chinova Resources - Chinova’s operation is well established the latest variant, the Q400, having production paused back with its Osborne mine located approximately 200kms Southin 2021 and doubts as to whether production will ever resume. east of Mount Isa. Chinova selected the 68 seat ATR72-500 having previously used an older generation aircraft with the By having aircraft remaining in production, it ensures an service running twice weekly direct to the mine site. ongoing investment by the aircraft manufacturer in reducing

carbon emissions and contributing to the aviation industry’s environmental goals of stabilising emissions at 2020 levels through neutral carbon growth and reducing net emissions from aviation by 50% by 2050 compared to 2005 figures.

ATR is at the forefront of environmental initiatives and their Environmental Management System is ISO 14001 certified and focuses on the ongoing sustainability of the ATR products.

In 2019, the Environmental, social, and governance (ESG) rating agency, Vigeo Eiris, recognised ATR as compliant with Green Bond and Green Loan Principles. ATR consistently meets all ICAO standard requirements for gas emissions, including the latest 2020 regulation on carbon dioxide emission reduction.

Sustainable Aviation Fuel.

BHP Operations Services (OS) – OS selected the Hevilift ATR42-320 to conduct a trial Townsville The next step for aviation in itsservice efforts tobetween dramatically reduce and its Moranbah Airport to serve those members of staff carbon emissions is the use of sustainable aviation fuel, known living in or travelling to the Townsville area. Hevilift were as SAF. SAF is a biofuel used to power aircraft produced from recently awarded a three-year extension to its contract with feedstocks and is very similar in its chemistry to BHPsustainable for services between Brisbane and Moranbah and this traditional fossil jet fuel. new service further extends the relationship between the two companies.

We asked Hevilift’s CEO Ashley Roy why he thought Hevilift were gaining such a large share of the Queensland FIFO market. “I believe it comes down to three key points. Firstly, we are unique in that we only operate FIFO Charter flights rather than trying to combine this specialist type of operaFuelwith Life Cycles – Jet Fuel Transport v’s SAF. (RPT) flights as the two tion Regular Public are extremely difficult to combine within one aviation organSAF gives impressive reduction of up having to 80% in isation.

Weanoften see our competitors to carbon favour the emissions over the lifecycle of the fuel it replaces, depending delivery of RPT services at the expense of FIFO Charter flights when technical delays method are experienced which on the feedstock used, production and the supply chaininvariably toThe service delivery to theleads airport. engines on theissues Hevilift and ATRsthe arepassengers already experiencing a lower level of service than they deserve. cleared to use up to 50% SAF and with the first production facility to be built in Australia recently announced our first SAF

Secondly, our choice of the ATR as our aircraft of choice flight aremarket alreadymeans being planned. futureabilities is starting for thetrials FIFO its classThe leading in the to look greener, and Hevilift now provides the industry with a FIFO market meet our customers’ needs in this challenging sector.

Lastly, but by no means least, our absolute focus on responsible choice. customer safety and quality of service means our customers Hevilift can be contacted at the trust usAustralia to deliver their services for thefollowing: long term.

We’re delighted to have commenced operations out of Townsville and with new aircraft joining our fleet in the coming months we look forward to delivering FIFO services to our customers for many years to come.”

P +61 7 3621 8300

P +61 7 3621 8300 E commercial@hevilift.com

E commercial@hevilift.com www.hevilift.com www.hevilift.com MAY – JULY 2022 DIGGING & DRILLING MAGAZINE

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Chalice Mining - Largest nickel sulphide discovery in 20 years & largest PGE discovery in Australian history Chalice Mining Limited (“Chalice” or “the Company”, ASX: CHN | OTCQB: CGMLF) has reported its maiden Mineral Resource Estimate (Resource) for the Gonneville Deposit (Deposit), the first discovery at its 100%-owned Julimar Nickel-Copper-Platinum Group Element (PGE) Project, located ~70km north-east of Perth in Western Australia.

Drilling is continuing at the ~1.9km x 0.9km Deposit outside the maiden Resource, with assays pending for ~160 drill holes and five rigs continuing to test for extensions of high-grade mineralisation.

Gonneville remains open at the Julimar State Forest boundary to the north, where approval to drill over a further ~10km of strike length is anticipated to be received shortly. The Deposit also remains open beyond a depth of ~630m.

The completion of the maiden Resource is a significant milestone for the Julimar Project and provides a strong foundation for the ongoing Scoping Study, which is scoping the initial mine development options at Gonneville and is expected to be completed in Q2 2022.

Julimar Complex, Gonneville discovery, Project tenure (including licence applications) and nearby infrastructure.

The Company has defined a tier-1 scale, pit-constrained maiden Mineral Resource for Gonneville - 10Moz Pd+Pt+Au (3E), 530kt Ni, 330kt Cu and 53kt Co Largest nickel sulphide discovery in over 20 years and largest PGE discovery in Australian history establishes foundation for world-class ‘green metals’ project.

The sulphide mineralisation is reported at two different cutoff grades in order to highlight the scale and development optionality the Deposit affords. The significant high-grade component of the Resource provides excellent optionality for any future development, could potentially materially improve project economics in the initial years of operation and will be a key focus of the project Scoping Study, which is currently in progress.

Julimar Complex airborne EM (Sept 2020), Julimar State Forest outline, targets and Gonneville Deposit.

Commenting on the maiden Resource, Chalice Managing Director & Chief Executive Officer, Alex Dorsch, said: “This is a major milestone for Chalice, coming just 18 months after our stunning first hole discovery at Julimar.

Since then, we have completed more than 175,000m of diamond and RC drilling and now defined a genuine tier-1 scale deposit of critical minerals, with exceptional growth potential.

“The Resource confirms that Gonneville is the largest nickel sulphide discovery globally in over two decades, and the largest PGE discovery in Australia’s history - a remarkable achievement considering that this is the first discovery in what we consider to

be an entirely new district, Julimar, within a new nickel-copper-

“In the meantime, we are continuing to test the extent of the high-

PGE province, the West Yilgarn. “Given its sheer scale, the

grade sulphide zones with step-out drilling down-plunge, and we

attractive suite of six payable metals it contains and its premier

continue to see strong potential for underground development

location close to world-class infrastructure and services in Perth,

in the longer term.

Chalice clearly has the potential to become a leading global player in the green metals space.

“The high-grade sulphide component of the maiden Resource is very important to the project, as it provides a degree of optionality for mine development that is not often seen in mining projects of this nature.

The vast majority of competitor projects worldwide are narrow, high-grade underground deposits, whereas high-grade mineralisation at Gonneville starts near surface, which could be a material factor when considering project economics in the initial years of operation.

“It is also important to emphasise that the current Resource covers just 7% of the Julimar Intrusive Complex, which has been interpreted to cover a strike length of more than 26km.

We know that the deposit remains open along strike to the north, and we are very much looking forward to receiving the final clearances to commence our initial low impact drilling program in the Julimar State Forest.

The Scoping Study for Gonneville is progressing well and is on track to be completed in the second quarter of next year.

“We are continuing to consult closely with local communities as well as governments at both the State and Federal level, to ensure we build trust and secure our social licence to operate.

We consider it very important that the broader project stakeholders understand the project and the immense opportunity in front of us.”

Commenting on the Resource and current exploration activities at Julimar, Chalice General Manager - Development, Bruce Kendall, said: “This is an exceptional result for a maiden Resource, with approximately 60% of the total sulphide tonnes in the top 250m already contained in the Indicated Resource category.

This reflects the significant amount of infill drilling we have already undertaken at Gonneville and provides an outstanding base from which to complete the ongoing Scoping Study.

“The Resource pit shell is largely drill constrained at the southern end of the Deposit, where the highest grades occur, with few holes drilled thus far beneath the pit shell in this area.

As our infill drilling has progressed it has shown that higher grade zones of mineralisation are more prevalent and more continuous than initial broad spaced drilling suggests.

This is an important characteristic of the deposit which highlights the potential upside. “Deep drilling targeting higher grade extensions and infilling drilling in the northern part of the Deposit, where most of the Inferred Resources are located, will be a focus in the coming months.

3D view (looking ENE) of Gonneville block model (all domains) and Resource pit shell.

“Mineralisation is still open to the north within the Julimar State Forest, and we eagerly await the necessary approvals so that we can start drilling the Hartog target where soil sampling and moving loop EM has identified a number of compelling anomalies for drill testing.

“Despite the scale and significance of the maiden Gonneville Resource, we believe that the broader Julimar Project is still at a very early stage in its discovery history – and we are very excited about the discovery and growth opportunities within the extensive Julimar Complex.”

Material Source; Chalice Mining Limited

3D view (looking NW) of Gonneville block model (all domains) and Resource pit shell.

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ARE YOU KEEPING AN EYE ON EVERYTHING TO MITIGATE RISK?

CUSTOM DESIGNED VIDEO-BASED AI SOLUTIONS "All our systems are uniquely designed to suit your requirements"

The need for a proactive solution in the global energy and resources sector to effectively utilise funds /assets and supplies to improve operations for better conditions are always 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.

However, in terms of surveillance video there are thousands of cameras in the industry that are mainly viewed by human eyes, thus consuming a lot of manpower. There is no doubt that it is impossible to monitor all video feeds and difficult to record, resulting in low efficiency in resources deployed.

This is now possible with our visual-based CCTV Artificial Intelligence systems...

To address this concern in the industry, Ai Group have combined Artificial Intelligence and deep machine learning algorithms and developed AIVI.This s y s t e m c an m o n i t o r p r o c e s s e s a n d abnormal behaviour in real-time.This technology can monitor and track process-related concerns, dynamics of workers /vehicles, building materials,construction equipment,compliance gaps etc. The system works continuously in real time to carry out comprehensive monitoring and reporting to ensure the increase in productivity and the safety of lives and property.

MAKING CCTV SMARTER

AI ALERT ALGORITHM EXAMPLES: UNCOVERED LAND DETECTION The uncovered bare soil on the construction site can be identified through a video algorithm. AiVi can be programmed to alert if the uncovered soil exceeds a specific

HUMAN BEHAVIOR ANALYTICS Recognize hazardous situations by detecting specific human postures: raised arms, man down detector, crouch, and social distancing.

amount of area.

MASK AND SOCIAL DISTANCING During the covid 19-crisis, Governments mandated the wearing of face masks and social distancing in all indoor and outdoor venues. This algorithm is designed to detect individuals who are not following national health guidelines.

RESTRICTED AREA BREACH Video analysis combined with Artificial Intelligence and facial recognition algorithms outlined sensitive areas that can be monitored in real-time. Intrusive work behaviours tagged with individual worker ID is detected and alarmed.

CROWD DETECTION This algorithm recognises the number of people in an allocated production workshop area and reports any overrun situations.

PPE DETECTION

Contact us:

for your tailormade solution

CHECK-IN OF VEHICLES The algorithm recognizes vehicles in specified areas and reports license plates when applicable. Parallelly, driver identity information can be verified and processed through real-time uploads (including photos) and real-time face capture (1: 1 verification).

HARD HAT & REFLECTIVE VEST DETECTION A video algorithm is used to identify whether workers in the construction area are wearing protective clothing such as hard hats & reflective vests. If such protocols have not been adhered to alerts can be generated.

UNCOVERED DIRT VEHICLES AIVI can identify uncovered dirt vehicles, their license plate, and body colour.

Information can also be registered and alerted under proper conditions.

FIRE AND SMOKE DETECTION

Info@aintelgroup.com www.aintelgroup.com

Head office

Branch

Western Australia

Victoria

Suite 2, 43 Oxford Close,

7, 35-37 Dunlop Road,

West Leederville, WA 6007.

Mulgrave, Vic 3170.

Phone+61 (0)893881800

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OBJECT DETECTION

TIME AND ATTENDANCE SYSTEM WITH FACIAL RECOGNITION

FEATURE ARTICLE»

Early adopters drive a hydrogen future with the Toyota Mirai

Progressive organisations and businesses are continuing to drive the development of a hydrogen-fuelled transport future with Dr Alan Finkel, energy retailer Red Energy, hydrogen fuel-cell bus and truck manufacturer Hyzon, Telstra and Melbourne’s Yarra Council among the latest to take delivery of a new Toyota Mirai fuel-cell electric vehicle (FCEV).

The advanced hydrogen-fuelled Toyota Mirai is being offered in

Former Australian Chief Scientist and now Special Adviser

limited numbers on a three-year lease arrangement to forward

to the Australian Government on Low Emissions Technology,

thinking businesses and organisations to experience the zero-

Dr Finkel said he had always been an early adopter of new

emission sedan in real-world, daily driving conditions.

technology and was keen to advocate for hydrogen as part of a sustainable transport future. “Hydrogen will be a big part of our future. Most of the replacement of oil, coal and gas will be electricity delivered as electrons, but about 15 per cent of the end-user requirements will be delivered as hydrogen,” Dr Finkel said.

“Big trucks are the most obvious opportunity. It’s a bit like diesel and petrol – you associate diesel with big trucks, buses, trains, and ships, and petrol with small urban delivery trucks and cars.

Battery electric vehicles (BEVs) and hydrogen fuel-cell electric vehicles (FCEVs) tend to split that way, but there is overlap.

Where hydrogen will really excel for cars is for people who don’t have off-street parking.

Dr Alan Finkel (left) with Toyota Manager, Future Technologies & Mobility Matt Macleod in his new Toyota Mirai As part of the lease agreement, refuelling for Victorian based clients is included at the Toyota Hydrogen Centre in Altona, where hydrogen is produced and stored on site using a 200kW

“It’s fantastic to be able to take the Mirai and fill up in about five minutes. So for those people who live in older houses in inner city Melbourne or Sydney, or live in apartments that don’t have provision for car parking, then a hydrogen car is wonderful,” he said.

electrolyser, that draws power from a combination of an 87kW solar array, 100kW battery storage and mains grid depending on availability.

Dr Alan Finkel, Special Adviser to the Australian Government on Low Emissions Technology refuels his new Toyota Mirai at the Toyota Hydrogen Centre at Altona, Victoria

CEO of Red Energy Iain Graham (left), with Toyota Manager, Future Technologies & Mobility Matt Macleod, takes delivery of his new Toyota Mirai

For Iain Graham, CEO of Red Energy, a retail arm of Snowy Hydro, leasing a Mirai was a natural extension of the company’s core business of selling renewable energy.

“It was important for us to understand what is the future,” Mr Graham said. “We’ve always looked to how we are going to be competitive and what’s on the horizon. “When electric vehicles came along, we were one of the first to get one which has been a tremendous education for us and a wonderful tool to talk about renewable energy and how practical it is. “When we saw that Australia was starting to look at hydrogen and Toyota was involved, we wanted to understand this.

“Hydrogen is probably a distance away before it’s commercially practical but we wanted to be at the very front in our understanding. “We have always thought about the customer and that’s what Toyota does as well.

The Mirai is intuitive if you are used to driving a petrol car, but it has the feel and responsiveness of an electric car. It’s a very good initiative by Toyota,” he said.

Hyzon Motors Australia Head of Special Projects Simon Coburn refuels his Toyota Mirai at the Toyota Hydrogen Centre at Altona, Victoria Hyzon Motors Australia Head of Special Projects Simon Coburn said leasing a Toyota Mirai would further help the company raise the awareness of the growing hydrogen fuel-cell industry and its potential for reducing transport emissions.

“The Mirai is a simple way to enable Hyzon’s employees, prospective customers and partners to normalise hydrogen.

Not many Australians have even seen a hydrogen vehicle let alone experienced one and the Mirai is a beautiful execution of an FCEV,” Mr Coburn said.

Toyota Manager, Future Technologies & Mobility Matt Macleod (left) shows CEO of Red Energy Iain Graham (centre) and Dr Alan Finkel the Toyota Mirai’s hydrogen tanks (uncovered in yellow) Hyzon Motors Australia was established in Melbourne in May 2020 to supply the Australian and New Zealand market with heavy-duty, hydrogen-powered trucks and buses. The company has also recently taken on a Mirai on three-year lease.

Headquartered in Rochester, New York, Hyzon is a manufacturer of commercial fuel cell electric vehicles with operations and vehicles on the road across three continents.

Its fuel cell technology, developed through almost twenty years of research and development, is purpose-built to support the demanding applications of hauling heavy freight.

CEO of Red Energy Iain Graham (right), with Toyota Manager, Future Technologies & Mobility Matt Macleod

MAY – JULY 2022 DIGGING & DRILLING MAGAZINE

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2022 predictions: GlobalData identifies the 20 themes with the most impact on the oil & gas industry in 2022 Companies in the oil and gas sector have the most chance of success when they invest in the right themes. According to GlobalData, hydrogen, liquefied natural gas (LNG), and environment, social and governance (ESG) could be defining themes in the oil and gas sector in the coming decade.

The leading data and analytics company’s report, ‘Top 20 Oil & Gas Themes 2022’, identifies the 20 themes that will have the most impact on the oil and gas industry in 2022.

Oil & Gas analysts at GlobalData offer their views on hydrogen,

Strategic shifts in the LNG competitive landscape will shape

LNG and ESG issues;

the global energy dynamics in the next decade.

Hydrogen Barbara Monterrubio, Energy Transition Analyst at GlobalData, comments: “Several major economies have outlined low-carbon hydrogen strategies to pave the way for enabling the switch to clean energy. In the unfolding hydrogen economy, green hydrogen projects are gaining more prominence over blue hydrogen due to their lower carbon footprint.

“Technology development will play a crucial role in the competitiveness of hydrogen economy in the future.”

LNG Sumit Chaudhuri, Managing Analyst at GlobalData, comments: “LNG, the preferred mode of natural gas delivery across vast distances worldwide, is expected to continue to play an important role as more countries globally switch to natural gas as a bridge-fuel to meet their environmental goals.

“Though LNG is finding new markets globally, there is skepticism over carbon emissions in its value chain. Carbon-neutral LNG (CNL) seems to be the answer to this issue.”

ESG Raj Shekhar, Director at GlobalData, comments: “Oil and gas companies have increased their efforts to limit or offset the environmental impact of their operations. The increased focus on climate change in global conventions like COP26 is expected to have a strong impact on conventional oil and gas operations.

“The ESG theme will dominate the boardrooms of leading energy companies due to shareholder pressure and global outrage on emissions.”

The heightened efforts by industry leaders in establishing hydrogen economy and sound ESG practices, and the strategic shifts in the LNG market landscape, justifies the focus on these themes.

Carnarvon Energy Pavo-1 well oil discovery Carnarvon Energy Limited (“Carnarvon”) (ASX:CVN) confirms that the Pavo-1 well has made a material oil discovery in the Caley Member. Light oil has been recovered from excellent reservoirs.

Figure 1: Pavo-1 well location map

Figure 2: One of the oil samples extracted from Pavo-1

The highly porous and permeable sands contain a net pay

We have a number of additional drilling activities to undertake

thickness of 46 metres from within a gross hydrocarbon package

in the Pavo-1 well before moving the drilling rig to the Apus-

of 60 metres. The results were confirmed when wireline testing

1 well location. Overall, we are extremely pleased with the

was undertaken in the well, after drilling down to around 3,600

Pavo-1 result and are looking forward to it adding significant

metres Measured Depth (“MD”) in the 8 ½” hole.

value within what is now expected to be an expanded Dorado

Carnarvon Managing Director and CEO, Adrian Cook, said the results added significant value to the Dorado development

production hub.”

On completion of the sidewall core sample acquisition across

plan: “Today we announce another important oil discovery in the

the Caley hydrocarbon zone and deeper Milne and Dumont

Bedout Basin, with high quality oil having now been recovered

Members, the well will be deepened in the current 8 ½” hole to

to surface from excellent quality reservoirs.

an expected Total Depth (“TD”) of around 4,200m MD, targeting

This discovery is material because Pavo lies only 46 kilometres from the proposed Dorado production facilities and is expected to be an ideal resource to tie back to Dorado.

Subject to the joint venture making a final investment decision (FID) this year, the Dorado production infrastructure is planned to be in-place by the end of 2025 and will have the capacity to tie-in other fields like Pavo with no material increase in operational costs.

Pavo proves the extension of a working petroleum system some 46 kilometres east of Dorado. The well demonstrates that

the Early Triassic and Upper Permian stratigraphy which have not previously been intersected in the basin.

Carnarvon is not anticipating commercial results from the deeper sections of the well that are to be drilled. The geological information being sought in this section is relevant to assessing the potential for prospects within that stratigraphic section nearby and across the basin.

Equity participation The Pavo-1 well is located in the WA-438-P exploration permit in which Carnarvon holds a 30% interest.

Source: Carnarvon Energy

quality reservoir and trapping mechanisms are effective in this area, which hosts a suite of other exploration targets. These will now warrant further assessment for drilling.

MAY – JULY 2022 DIGGING & DRILLING MAGAZINE

21

Wodgina powers up with first Lithium Output Lithium is the most important commodity for decarbonising the planet and Mineral Resources (MinRes) has marked a significant milestone in its lithium growth strategy with first new spodumene concentrate delivered at the Wodgina Lithium Project in the Pilbara region of Western Australia.

In addition to Wodgina, the MARBL JV includes the 50,000 tonnes per annum Kemerton lithium hydroxide plant near Bunbury in Western Australia’s South West. Commissioning of the first of two 25,000 tonnes per annum processing lines is almost complete and maiden hydroxide production is expected shortly. MinRes also operates the Mt Marion lithium mine in Western Australia’s Goldfields region in a 50-50 joint venture with one of the world’s largest lithium producers, Jiangxi Ganfeng Lithium.

In April this year, MinRes and Ganfeng announced a decision to increase spodumene production at Mt Marion from 450,000 to 600,000 tonnes per annum of mixed-grade concentrate and target an annual plant capacity of 900,000 tonnes by the end of 2022. MinRes has also begun processing its share of Mt Wodgina is one of the world’s largest known hard rock lithium deposits and operates under the MARBL JV – an unincorporated joint venture between MinRes (40%) and Albemarle Corporation (60%) – with a current processing capacity of 750,000 tonnes per annum of 6% spodumene concentrate.

In late 2021, following two years in care and maintenance, the MARBL JV agreed to resume production at Wodgina in response to soaring global demand for high-quality lithium products.

Focus immediately turned to safely restarting the first of Wodgina’s three 250,000 tonnes per annum trains, with first spodumene concentrate now produced in line with a May 2022 target. Work is also underway to prepare Wodgina’s second train for production in July 2022.

MinRes’ Chief Executive – Lithium, Paul Brown, said the fast

Marion spodumene concentrate into lithium hydroxide as part of the Ganfeng partnership.

Mr Brown said increased demand for lithium products – underpinned by advancements in battery technology and the continued growth of the electric vehicle market – made MinRes one of the few producers worldwide that could reliably support and supply the lithium needed for the world’s transition to renewable energy.

“We identified lithium as a target commodity over a decade ago and set about building a portfolio of world-class assets that could deliver long-term, sustained value,” Mr Brown said. “Wodgina is one of the world’s best lithium assets and our well-timed development means MinRes can now safely and effectively ramp up spodumene concentrate production in the Pilbara.

“Lithium as the most critical mineral to support decarbonisation

start-up was a credit to the company’s strategy to build and

and MinRes has established a world-class lithium business with

invest in a portfolio of long-life, high-quality assets.

Tier 1 partners within the world’s lowest-risk lithium jurisdictions.

“Achieving first spodumene concentrate production at Wodgina is a great milestone as we look to safely and efficiently build production momentum to meet significant global demand for lithium products,” Mr Brown said.

“Work is also advanced on starting Train 2, which demonstrates the foresight and optionality MinRes invested in Wodgina when we first developed this world-class asset.”

This positions us well to increase output in line with market demands.

“It’s an exciting time for MinRes, our partners and our people – we’ve worked hard to build a 30-50-year horizon that will keep delivering opportunities for all stakeholders to achieve more success together.”

Source: Mineral Resources

OFFICE & WORKSHOP OFFICE & WORKSHOP 49 Candlewood Boulevard, Joondalup 6027 49 Boulevard, Joondalup 6027 Tel:Candlewood (08) 9300 3135 Fax: (08) 9300 3236 Tel: (08) 9300 3135 Fax: (08) 9300 3236 Email: mark@mechbro.com.au Email: mark@mechbro.com.au MechBro Australia has been set up to respond to the demand for Heavy Duty Diesel Mechanics the repair, servicing of MechBro Australiaand hasFitters been involved set up toinrespond to maintenance the demand and for Heavy Duty earthmoving, mining and transport as well as light vehicles.

Diesel Mechanics and Fitters involvedequipment in the repair, maintenance and servicing of Our business is based in Perth and services regional areas, including the Pilbara.

Our people are highly skilled earthmoving, mining andalso transport equipment as well as light vehicles.

and motivated to provide the highest level of service to companies throughout Western Australia. With a fleet of Our business is based in Perth and also services regional areas, including Our people are hire highly skilled mine specified and fully equipped service utilities, we are unique in that the we Pilbara. are not simply a labour company. and motivated to provide the highest level of service to companies throughout Western WithMechBro’s a fleet of Because with MechBro you don’t just get a capable individual, you get the strength of ourAustralia. entire team! mine and fully equipped utilities, weeconomic are unique in that not simply a labour hirejoining company. teamspecified of mechanics and fitters are service committed to the success of we ourare customers.

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Accordingly, we team of mechanics and fitters are committed to the economic success of our believe this set of values will help to ensure the mutual economic success of customers. all parties. 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, everyPEOPLE person on our team knows OUR that to keep Whether it beplant a civiloperating or miningmeans project, productivity.

Weour work hard and use every person on team knows our heads! a collective, team that to keep As plant operatingour means of highly skilled productivity.

We mechanics work hard diagnose, and use repair and As maintain a wide variety our heads! a collective, our team ofhighly plant and equipment, of skilled mechanicsdozers, diagnose, excavators, graders, scrapers, profilers, repair and maintain a wide variety dump bobcats, heavy haulage of planttrucks, and equipment, dozers, road transport, etc. scrapers, profilers, excavators, graders, dump trucks, bobcats, heavy haulage Our transport, team etc. has the experience, road qualifications and equipment to work on all aspects these machines including Our team ofhas the experience, engine rebuilds, and qualifications andhydraulics, equipmenttrack to work frame, electrics and air conditioning and on all aspects of these machines including on all brands, including, but not limited engine rebuilds, hydraulics, track and to; CAT, Hitachi, Komatsu, Terex, O&K, frame, electrics and air conditioning and Volvo, Bell, Vermeer, Cummins. on all brands, including, but not limited to; CAT, Hitachi, Komatsu, Terex, O&K, As a Bell, team of mechanics, Volvo, Vermeer, Cummins. fitters, servicemen and fabricators we keep machines going,ofas well as being involved As a team mechanics, fitters, in site mobilization where wewe establish servicemen and fabricators keep containerized complete with machines going,workshops as well as being involved domes and commission machinery ready in site mobilization where we establish for operation.workshops Upon project completion containerized complete with we demobilize workshops and ready plant domes and commission machinery and are oftenUpon the project last tocompletion leave site. for operation. we demobilize workshops and plant and are often the last to leave site.

Throughout a project we are able to REFRIGERENT TRADING manage all parts ordering and delivery, AUTHORISATION including urgent hot shots.

Ourable tilt tray Throughout a project we are to REFRIGERENT MechBro has the capability and TRADING can pickall upparts and ordering deliver parts and 20’ AUTHORISATION manage and delivery, authorisation to repair your air containersurgent up to 8.5T. including hot shots. Our tilt tray MechBro conditioning units. has the capability and can pick up and deliver parts and 20’ authorisation to repair your air WHERE WE’VE WORKED MACHINERYunits.

AND VEHICLE HIRE containers up to 8.5T. conditioning During the last 18 months we’ve Mechbro can provide a variety of worked at many WORKED major mine sites machinery andAND vehicles to suit HIRE your WHERE WE’VE MACHINERY VEHICLE owned the

by BHPB, FMG,we’ve Sandfire needs. MechBro currently haveof 6 mine During last 18RIO, months Mechbro can provide a variety Resources and more recently Onslow specified service vehiclestosupported worked at many major mine sites machinery and vehicles suit your Quarry.byOur people the by a tiltMechBro tray truck capablehave of loading owned BHPB, RIO,understand FMG, Sandfire needs. currently 6 mine rigorous requirements of working on and unloading sea containers and Resources and more recently Onslow specified service20’ vehicles supported these sites and act accordingly. moving itemstruck of plant up to Tonne.

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

For more info, contact Mark Nielsen Mobile: 0438005655

www.mechbro.com.au

The future of natural gas in ASEAN’s power sector The development of electricity markets in the Association of Southeast Asia Nations (ASEAN) is in a dynamic stage, both for demand and supply. Countries are continuing their path towards increasing level of electrification, while the region’s power industry and policymakers intend to improve the environmental sustainability of the sector in the context of strengthening clean air policies. Mitigating reliance on coal through the diversification of energy sources for electricity generation is becoming an important trend, which paves the way for higher natural gas penetration and scaling-up of renewables. hours (TWh) by 2050, propelled predominantly by Indonesia, Vietnam, Thailand, and the Philippines’ economies. It is based on a combination of dynamic economic and population drivers.

Particularly, the region’s GDP will more than triple in size and the urbanisation rate is expected to grow from 49% to 66% between now and 2050, when the urban population will expand by 198 million to 525 million in 2050.

The largest contribution to electricity demand will stem from the residential segment, underpinned by higher space cooling requirements and increased household appliance ownership.

With electricity’s share in ASEAN’s final energy consumption The Gas Exporting Countries Forum (GECF) attaches special attention to the development of ASEAN’s energy system and its power sector by targeting this matter in research activities and publications, particularly the GECF Global Gas Outlook 2050 (GGO, February 2021) and the new edition of the GGO (slated for release in Q4 2021). Focusing on cooperation with ASEAN, the GECF is keen to promote the dialogue with key regional stakeholders in order to share views and support in addressing energy challenges, including providing a clean and competitive electricity for the region’s economies. One of the examples is the series of joint workshops with the Economic Research Institute for ASEAN and East Asia (ERIA), involving a number of stakeholders with strong intentions to enhance the usage of natural gas and increase its import.

expected to approach 26% by 2050 (from 15% today), the power sector is slated to undergo a profound transformation to achieve sustainability goals. Thus, given a wide spread of possibilities to meet surging electricity needs, the future configuration of the power generation mix is open to debates.

Historically, the sustained high increase in electricity demand has been covered mainly by the expansion of coal-fired generation, followed by natural gas and hydropower. In 2017, coal had already overtaken gas to become the primary source of the regional power generation mix and the dominance might persist given the capacity under construction, equal to 20.5 GW, mostly in Indonesia, Vietnam and the Philippines (1).

Substantially more capacity of around 56 GW is at the preconstruction phase, although some of potential projects are

Policy orientations and plans to ensure affordable and sustainable electricity supply

expected to be reviewed due to environmental considerations,

Over the past 20 years, electricity demand in the ASEAN

their policy towards coal-powered projects.

community has been rising at a substantial rate of over 6% annually, twice the world average. Of the region’s 10 countries, Indonesia (26%), Vietnam (21%), Thailand (21%), and Malaysia (16%) currently make up almost 85% of the total demand in the region. According to the GGO, this electricity demand is set to continue its strong growth trajectory with an annual pace of 3.2% over the next three decades and to reach 2,690 terawatt

rising public opposition as well as difficulties to secure financing as more banks and financial institutions back away or tighten

A downward revision of the number of coal-fired projects is confirmed by countries’ recently adopted plans and announcements. For example, the Philippines last year implemented a moratorium on new coal-fired power plants; it will not concern projects that have already been approved or secured permits (2). In Vietnam, within the draft national power development plan for the period of 2021-2030 with a

vision to 2045 (draft PDP8, unveiled 22 February 2021), almost

The Philippines, in the draft of the new version of the National

half of previously planned coal-fired projects (about 18 GW,

Renewable Energy Program, has set a target to achieve

approved under the amended PDP7) will be cancelled or

renewables’ share in the power generation mix of 37% by

delayed until after 2030 (3). Malaysia, in line with the country’s

2030 and 56% by 2040 (9). Indonesia also aims to increase

latest generation development plan covering 2021-39 (released

substantially the role of renewables for electricity generation.

on 24 March 2021), intends to retire over 7 GW of coal-fired

It is underpinned by the overall policy orientation to raise their

capacity by 2039 and only 2.8 GW of new coal-fired projects

share in the primary energy mix from 9% in 2020 to 23% by 2025

should be commissioned in that time (4). In Indonesia, where

and 31% by 2050. In accordance with the draft of the National

coal supplies more than 60% of electricity, there remains a

Electricity Supply Business Plan 2021-2030, Indonesia’s

determination to reduce the dominance of this source of fuel.

renewables capacity between 2021 and 2025 is set to boost

The government has declared plans to replace old coal-fired

by 11.7 GW (10).

fleet (aged 20 years and older, a combined capacity of over 11 GW) with cleaner power sources. Moreover, Indonesia is also considering setting a net-zero emissions target by 2070 as part of its long-term strategy for reducing carbon emissions and climate resilience (5). This decision could slow down the ramp-up of coal-fired generation in the country, which has the largest coal pipeline projects in the region.

Despite these ambitious plans, several challenges are expected to affect the pace of renewables’ deployment. Intensive introduction of intermittent renewable energy will be hindered by: 1) economic difficulties post-COVID-19 to fund costly projects; 2) bottlenecks in the electricity transmission networks; 3) current underinvestment in grid modernisation; 4) insufficient availability of land to allocate large-scale renewable projects; and, 5) the existing inflexibility of power systems dominated by coal-fired generation. This is where gas fired power plants will play a critical role regionally, being a significant component for the transition away from coal-fired generation, while complementing variable renewables, and stabilising ever-more complex grids.

In general, a number of countries are highly reliant on natural gas for electricity. With an average share in the regional power generation mix of 36%, this fuel in 2019 accounted for 94% in Singapore, 61% in Thailand, 39% in Myanmar and 37% in

Figure 1. Electricity demand trends in ASEAN (TWh)

Malaysia, while it played a more modest role in Vietnam, the Philippines, and Indonesia, amounting to 23%, 23%, and 20%,

In this context, countries have started to place greater

respectively. Coal-to-gas switching potential as well as strong

emphasis on natural gas and renewables’ expansion. In terms

electricity demand growth mean that natural gas could maintain

of renewables, ASEAN set a target of 35% share in the total

or even strengthen its position over decades. The key drivers

installed power capacity by 2025. It will contribute to achieving

will be the availability of indigenous gas production, as many

the aspirational target of integrating 23% renewable energy in

countries face the depletion of existing domestic assets, and

the regional energy mix by 2025 (6). Under this vision around

the ability to create import opportunities for LNG.

40 GW of renewable energy capacity are to be added by that date. Alongside this regional target, individual countries envision a further push for renewables-based power and a myriad of measures, such as revising feed-in tariffs, net-metering schemes, auction mechanisms, facilitating access to land and surface water for floating projects, are envisaged to support the development.

Policy incentives and ongoing market reforms, which support competition and attract upstream and infrastructure investments, are assumed to slow down the long-term decline of regional gas domestic production. Recent discoveries, including large ones such as Ken Bau 5 in Vietnam, Lang Lebah in Malaysia, and Kali Berau Dalam in Indonesia, are expected to sustain

Indeed, there are strong ambitions towards scaling up of

this trend, however the development of some projects could

renewables. Particularly, Vietnam in the abovementioned draft

be hindered due to difficult geographical (located far away

PDP8 considers 45 GW of renewable capacity by 2030 (an

from demand centres) and geological conditions, problems

increase of nearly 70% in the renewable capacity target from

of impurities and contaminations. Thus, taking into account

the amended PDP7) and 127 GW by 2045 when its share

the rising natural gas usage in the power generation, industry

reaches 46% of the total installed capacity. Currently untapped

and transport sector, the GECF predicts, that ASEAN as a

wind power is anticipated to lead additions, featuring 60 GW

whole will transform into a net gas importer in the early 2030s

growth between 2020 and 2045 (7). Thailand, within the 10-year

(11). For comparison, ASEAN Center for Energy in the 6th

Alternative Energy Development Plan, aims to cover 33% of

Energy Outlook (November 2020) considers that region’s self-

electricity needs from renewables (including hydro) by 2037.

sufficiency in natural gas will come to an end by 2026 (AMS

Renewables are set to reach 29 GW, amounting to around 35%

targets scenario) or by 2029 (APAEC targets scenario) (12).

of the total installed capacity in 2037 (8).

MAY – JULY 2022 DIGGING & DRILLING MAGAZINE

25

Wood Mackenzie foresees ASEAN demand for natural gas to

deployment and is building six LNG-to-power projects with a

surpass local production in around 2026 (13). ERIA anticipates

total installed capacity of 4 GW (17).

that only Malaysia and Brunei Darussalam will keep their export

Perhaps, the most vibrant example of development in this

positions until 2040 (14).

sphere is represented by Vietnam. The country is not yet

This will bring LNG imports to the forefront, while the development

importing LNG, but plans, unveiled in the draft PDP8, are

of LNG-to-power supply chains and interconnectivity, including

attracting the industry’s attention. The draft’s base-load scenario

the Trans-ASEAN Gas Pipeline project, will be pivotal factors,

proposes significant ramp-up of gas-fired capacity from 7 GW

facilitating the attraction of LNG in the region. At this time, there

in 2020 to 29 GW by 2030 and 67 GW by 2045, with additional

are nine LNG receiving terminals in five ASEAN countries with

capacities to be mainly LNG-based. Hai Linh’s LNG terminal in

a total capacity of 38.75 million tonnes per annum (mtpa) and

Vung Tau-Ba Ria province is on-track to become the first LNG

regasification capacity will grow rapidly. Moreover, Singapore

regasification project in Vietnam (set to start operations in Q2

is looking to become a leading gas hub in the region. There

2021) to supply the Hiep Phuoc power plant expansion with

is also an alternative project of gas hub creation in Thailand,

up to 1.2 GW of capacity. Another receiving terminal at Thi Vai

based on a receiving terminal in Map Ta Phut.

is under construction (phase 1 is set to be completed in 2022-

A strong impetus will stem from the advancement of intra-country LNG trade in Indonesia, making gas accessible to the entirety

2023) and will be used to fuel new power plants Nhon Trach 3 & 4 (total capacity of 1.5 GW). Further down the pipeline, Bac Lieu LNG-to-power project (3.2 GW) in the Mekong Delta region

of the archipelago. The long-term infrastructure plan envisages

is being targeted for start-up in 2024 (18).

the allocation of small-scale terminals coupled with integrated

The future for gas-fired generation in ASEAN

generators across 32 locations in Jawa, Sulawesi and West Kalimantan (15). Recently, there has been an announcement

In line with electricity demand increase, electricity generation

that the government will begin to build a system of seaborne

in ASEAN is forecast to grow 2.6-fold to about 2,970 TWh in

electricity supply networks, powered by LNG, in order to deliver

2050. Considering projects under construction as well as an

electricity to islands (up to 10 islands at the initial stage of the

assessment of energy policies and long-term capacity additions,

plan) that currently rely on diesel generation units (16). Moreover, the Indonesia’s first LNG-to-power project, the 1.76 GW Java1 plant integrated with floating storage and regasification unit

the region’s installed generation capacity will almost triple to 760 GW in 2050. Coal will continue to expand across ASEAN

(FSRU), will commence operations shortly.

and the total coal-fired capacity will reach 170 GW in 2050 (net capacity additions of 90 GW). Gas-fired capacity will rise from 98

Meanwhile, Myanmar commissioned its first 477 MW LNG-to-

GW to nearly 200 GW by mid-century, driven by developments in

power plant in Thaketa in June 2020 and LNG import facility

Indonesia, Vietnam, Thailand, and Myanmar. Renewables, such

(floating storage unit, FSU), located on the Yangon River, also

as solar, wind and geothermal, and hydropower will comprise

began to supply natural gas to the 350 MW power plant in

almost 60% of all capacity additions, reaching around 360

Thanlyin and 150 MW in Kyaukpyu. Another gas-fired power

GW by 2050, of which solar and wind will make the largest

plant in Thilawa (1.2 GW), sourced by LNG, is expected to come

contributions. The development of the ASEAN Power Grid is

online by 2024. With the aim of reaching universal electricity

also taken into consideration, which will facilitate the promotion

access by 2030, Myanmar plans to boost gas-fired power plant

and scaling-up of renewables.

Figure 2. ASEAN installed generation capacity by technology (GW)

Gas-fired generation is forecast to contribute to 30% of the

It is also expected that ASEAN countries will experience some

increase in electricity supply through to 2050. This will translate

delays in the commissioning of regasification terminals and

into higher natural gas demand of ASEAN countries in the

new gas-fired power capacities, impacted by COVID-19 and

power generation sector, adding about 110 bcm over the next

capital spending cuts. It could lead to a higher coal utilisation

three decades to 200 bcm in 2050. LNG will bridge a widening

in the following 5-7 years. Overall, coal is projected to be the

gap of field depletion and lack of new indigenous resources;

largest generation source, amounting to 42% by 2030 and

however more pronounced sectoral gas demand growth will

33% by 2050 of the total regional electricity supply. In its turn,

be stifled by competition from cheaper coal that will be critical

gas-fired generation, based on indigenous gas production and

to revitalising economies in the aftermath of COVID-19 and to

LNG imports, is set to maintain a strong foothold and provide

keeping pace with growing electricity needs.

above 30% of the power generation mix in the second part of the outlook period.

Figure 3. ASEAN power generation by fuel (TWh) and fuel shares (%) Renewables, on the strength of policy support and declining

This corresponds to the 2019 Malabo Declaration at the

technology costs, are starting to alter the mix that - together with

outcome of the 5th GECF Gas Summit of Heads of States

expanding hydropower - will meet around 40% of the projected

and Government (19), which emphasised the importance

increase in total power output. The share of renewables in

of cooperation amongst various stakeholders to ensure the

regional electricity supply is forecast to almost quintuple,

stability of gas markets and the security of demand and supply

reaching 20% in 2050. In this context, gas-fired power plants,

of natural gas.

given their effective operations in baseload, flexibility options, and short start-up times, will play a central role, specifically beyond 2030, helping to sustain the transition away from more carbon intensive coal and accommodate higher share of renewables into the grid.

To conclude, electricity requirements in the ASEAN region are vast and natural gas together with renewables should be at the forefront in meeting these needs while reducing the environmental footprint. The existence of abundant and cheap coal resources cannot be simply set aside, however, there is even a larger potential for coal-to-gas switching in the power sector if more favourable policy measures are undertaken and

Given ASEAN’s aspiration to propel energy transition into more sustainable and resilient energy systems using natural gas, the GECF Countries as reliable suppliers are striving to support these efforts and to cater for growing energy and electricity demand in this important economic region of the world.

Expert Commentary by: Dr Alexander Ermakov Energy Econometrician Energy Economics & Forecasting Department GECF Secretariat

gas-based infrastructure affordability grows.

MAY – JULY 2022 DIGGING & DRILLING MAGAZINE

27

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‘Barn find’ 1978 Camaro restoration project In this 3rd instalment of our ‘Barn Find’ 1978 Chevrolet Camaro restoration project series we source some very difficult to find replacement parts and finally get it painted. This 2nd generation Camaro sat for 20-year’s under cover in a shed on a farm in rural Victoria and needed a lot of replacement parts that are no longer being produced by General Motors in the USA.

These images show the huge difference that a great deal of sanding, rubbing and a GM Flame Red, 2-pack acrylic paint job can make to a very sad, 43-year-old steel Chevrolet muscle car. The whole car was stripped back to bare metal before painting.

A huge shout-out to Michael at WestCoast Chev Parts for supplying some parts that are no longer available from GM and I was unable to source from the internet, anywhere in the world. I had to replace the steering column shaft sphere to tighten the loose steering wheel and Michael had the original GM part on his shelf in Perth. I would have had to replace the steering column if he didn’t have this part.

The lights behind the gauges in the dashboard instrument cluster all needed to be replaced so I had to remove it. The small globes were available from Repco but care is needed to unscrew the bulb holders (quarter anti-clockwise turn) not to damage them.

Both rear brake and indicator lenses were replaced and I used Liquid Chrome paint to make the plastic bulb housings look like new.

My good mate Tex from ROAR TORQUE video interviewed my son Max and I for his YouTube Classic Car show and you can view part-1 of the 2-part Camaro ‘Barn Find’ restoration series at; https://www.youtube.com/watch?v=VeYbWi8-ryQ&t=11s.

We will continue this restoration series with more before & after repair images and interior trim work in our Q3 August-September 2022 edition.

Article and Images: Len Fretwell MAY – JULY 2022 DIGGING & DRILLING MAGAZINE

29

Electric vehicle revolution to underpin metals demand As several countries have committed to bring in cleaner fuelled cars in a bid to reduce dependency on fossil fuels, the demand for electric vehicles (EVs) is quickly gaining attraction in automotive markets around the world. This shift towards electrification is now propelling the mining and power companies to extract the essential metals used as inputs of EVs.

As a result, influencer conversations related to metals around

Copper, lithium, cobalt and nickel were the most discussed

EVs rose over 400% during the last seven months (January-

metals among the influencer conversations on EV topic

July) in comparison to previous seven months, find GlobalData,

on GlobalData Social Media Analytics Platform during

a leading data and analytics company.

January-July 2021 while metals like neodymium (a rare earth

Smitarani Tripathy, Influencer Analyst at GlobalData, comments: “The top keywords among EV conversations of influencers included ‘Mining’, ‘Metals’, ‘Clean Technology’, as well as

metal), aluminum and zinc have emerged as new trends during the same time period when compared with previous seven months.

‘Investment’ and ‘Climate Crisis’ are corresponding with the

Several influencers believe that the demand for key metals

rising demand of metals used in EVs.

like copper, lithium, nickel required to produce EV batteries

“Following the top influencers, which includes not only industry experts, but also journalists and business professionals, helps

will further propel as the consumer awareness shifts to EVs. This demand in metals is also pushing top mining and

in tracking the popular and emerging trends of the industry

investment companies across the globe to invest in the

on a regular basis for better informed decision-making in the

acquisition of key materials primarily used in building electric

field of EVs.”

car batteries.

SERVICE CENTRE LOCATED AT

49 Candlewood Blvd, Joondalup (PUMA JOONDALUP)

MAY – JULY 2022 DIGGING & DRILLING MAGAZINE

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Over 25 years experience in the Asia Pacific Region.

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