Australian Mining April 2012

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SERVING THE MINING INDUSTRY SINCE 1908

VOLUME 104/4 – APRIL 2012

www.miningaustralia.com.au

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COMMENT

Mining Is mining missing the point?

Australian

Copyright Reed Business Information Published 12 issues a year by Reed Business Information (ABN 80 132 719 861) Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Australia Tel: (02) 9422 2999 Fax: (02) 9422 2966 Publisher – Michelle Graves Email: michelle.graves@reedbusiness.com.au Editor – Cole Latimer Tel: (02) 9422 2352 Email: ozmining@reedbusiness.com.au Journalist – Andrew Duffy Tel: (02) 9422 2884 Email: ozmining@reedbusiness.com.au Key Account Manager – Sarah Bateman Tel: (02) 9422 8994 Mob: 0408 991 585 Email: sarah.bateman@reedbusiness.com.au Key Account Manager – Tim Richards Tel: (02) 9422 2818 Mob: 0407 948 774 Email: tim.richards@reedbusiness.com.au QLD and SA Sales Manager – Sharon Amos Tel: (07) 3261 8857 Fax: (07) 3261 8347 Mob: 0417 072 625 Email: sharon.amos@reedbusiness.com.au New Business – Alex Evans Tel: (02) 9422 2890 Email: alex.evans@reedbusiness.com.au WA Representative – Jamie Wade Mob: 0435 945 868 Email: jamie@wadebusiness.com.au RBI Manufacturing & Electronics Group: Production Co-ordinator – Mary Copland Tel: (02) 9422 2738 Fax: (02) 9422 2966 Graphic Designer – Dave Ashley South Africa – Bob Stephen Stephen Marketing PO Box 75, Tarlton, Gauteng 1749, South Africa Tel: 27(011) 952 1721 Fax: 27(011) 952 1607 USA – Jonathan Sismey RBI 24th Floor, 125 Park Avenue, New York, NY 10017 Tel: (1) 212 370 7445 Fax: (1) 212 370 7441 Email: jsismey@ix.netcom.com Larry Arthur RBI Suite 203, 3700 Campus Drive, Newport Beach, CA 92660 Tel: (1) 949 756 1057 Fax: (1) 949 756 2514 Email: lharthur@ix.netcom.com Printed by GEON 20 Baker Street, Banksmeadow, NSW 2019 Tel: (02) 8333 6555

Bizarre antics and comments from some in the mining industry have distracted us from the real issues.

S

o it has finally happened, and the mining tax has come to pass.

While it’s not really surprising that it would pass, the vitriol that passed between the Federal Government and major mining billionaires was.

To say that the very public argument between the government and miners such as Andrew Forrest, Gina Rinehart, and especially Clive Palmer, quickly descended into a mess of outrageous accusation is a bit of an understatement.

The mining industry has prepared for this tax (at least it should have) but I’m fairly sure it wasn’t prepared for the muckraking, especially from Swan.

However what really took the cake was how quickly it was all ignored following a couple of choice comments

Comment Cole Latimer ozmining@reedbusiness.com.au from one of our perennial favourites here at Australian Mining – Clive Palmer.

We spoke about Clive’s proposal to sue QR for $8 billion in brief last month, but this month we’ve dug a bit deeper into the announcement from a man who apparently has listed ‘litigation’ as one of his pasttimes in Australia’s Who’s Who. Now Clive has accused the CIA of attempting to stifle Australia’s mining boom, and coal in particular, via backdoor funding to Greenpeace and other conservation groups to put together an anti-mining strategy to

block new coal developments.

He claimed that the Rockefeller Foundation, which had provided funding to Greenpeace for some of these strategies, was directed by the CIA. This is the same foundation that developed the vaccine to Yellow Fever, developed and funded WWII German eugenics programs, but also established numerous renowned schools.

While the outrage beforehand was fairly expected, it would be fair to say absolutely no-one saw this coming.

Palmer’s statements came out of left field and stole the limelight and focus from the ongoing mining tax arguments and subsequent anger over the proposed further slashing of the Diesel Fuel Rebate Scheme.

This has essentially allowed the major issues to pass while everyone wonders just what has happened at a time when the focus should remain on ensuring mining is paying what it owes but still getting a fair deal.

So what will happen next?

Firstly, good question and thanks for asking.

To be honest, we don’t know, but we should be focusing on how to work with this upcoming unavoidable tax (all High Court cases aside) and not get distracted by sideshow antics.

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ON the front cover of this edition of Australian Mining, we’ve featured the Kooragang Island coal terminal, which appears in two of our features – Hunter Valley Spotlight and Infrastructure. In this edition’s Infrastructure feature, we’ve focused on the latest port developments across the country, new coal loaders, and the demand for increased infrastructure in Australia’s remote areas to support the boom. For our Hunter Valley Spotlight we look at how mining and the local communities attempt to co-exist in such close quarters, and why this often fails to work. We also look at the booming mining machinery and vehicle rental market, and why A M this sector isn’t likely to slow down any time soon.

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Contents Features INFRASTRUCTURE

Loading questions The saga of the latest Newcastle coal loaders ..................................................... p12-13 At war with Palmer The scrabble in the Galilee Basin ................ p14 Cape size campaign The push for a new South Australian port .. p16 The Great Barrier Reef Question QLD coal ports under scrutiny ................... p18

OPEN CUT MINING

Monitoring by the millimetre Slope surveying ............................................. p20

HIRE & RENTAL

Growing market The booming hire and rental market ...................................................... p22-23 Becoming a hire power The growing vehicle rental market in WA ........................................................... p24-25 To rent or to own?

What you should consider when buying equipment ................................................ p26-27

CONTRACT MINING, ENGINEERING & SERVICES

Strikes continue Industrial action across BHP mine sites ...... p32 Indigenous internship Getting more Indigenous miners on the ground ...................................................... p34-35 Human riches at Prominent Hill Mining another resource .............................. p36 Mining in the pits The case for in-pit crushing .................... p38-40 Training drill A D _ Aup Mto KR C Jdown AN_ 1 0 . p d f Pa ge Getting drillers dry on site ........................... p41

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Activist outrage

April 2012 issue Risky business Anti-mining movements growing in the Hunter ...................................................... p54-55

UNDERGROUND MINING

Greenpeace’s coal killing strategy….p28-30

BILLIONAIRE BATTLE

One last Swan song The Government’s savage attack on miners ............................................................ p42

HUNTER VALLEY SPOTLIGHT

Making a move in the Hunter M&E NSW shifting sites ............................. p49 New home at Heatherbrae Sandvik launches new mining facility ........ p50 Carving up the country Strategic land use issues .......................... p52-53

Coastal coal battle

Aiding underground technology Intrinsically safe computing equipment ..... p56 From open cut to underground The story of the Ernest Henry mine ....... p58-59 Gimme shelter New underground refuge chambers ............ p60 Head of the pack Safer teleremote cabins ................................ p62

POWER GENERATION & ELECTRICAL EQUIPMENT

Money for nothing Stopping work to earn money......................

Voltage regulation for remote sites Ensuring adequate power .............................

Remote site power Mobile generators ........................................

Pilbara power Iron ore power expansion ............................

Devil of a problem Will the Devil’s Creek gas plant provide what it promises? ..........................................

p64 p66 p68 p69 p70

INTERNATIONAL

Mission to Moscow Australia showcasing technology in Russia ... p78

Regulars

1 The1 Central 2 / 1 1Coast / 0 9coal , mine 9 : dispute….p46 5 4 AM

NEWS .......................................................... p6 INDUSTRY COMMENT ................................ p8 PRODUCT FOCUS: Cranes & Lifting ... p72-76 Q&A: Nic Pollock ...................................... p80 PROSPECT AWARDS ................................ p82 JOBS ......................................................... p84 EVENTS .................................................... p86

www.miningaustralia.com.au

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HEADLINES

The latest mining news and safety Australian Mining presents the latest news and safety affecting you from the boardroom to the mine and everywhere in between. Visit www.miningaustralia.com.au to keep up to date with what is happening.

Mixed reactions to mining tax victory

on the global scale.

According to The West Australian WA Mines Minister Norman Moore said the tax would hurt WA. “It means a significant outflow of companies’ money from WA to other parts of the country,” he said.

The Association of Mining and Exploration Companies chief executive Simon Bennison also told The West Australian the tax’s passage marked a “sad day”.

proportion of the world’s stores of brown coal. IBISWorld figures show Victoria has a quarter of the world’s brown coal reserves, 90 per cent of which are in the Latrobe Valley.

The Government’s victory at passing the mining tax through the senate has re-sparked heated debate, both inside and outside Parliament House, over the legislation’s legitimacy.

Details scarce on FMG’s Even before the tax was passed, mining tax challenge Queensland Liberal senator Sue Confusion surrounds Fortescue Boyce, in the final hours of senate, Metals Group and its High Court slammed the Government for challenge against the mining tax, targeting the nation’s big earners. with the company giving mixed “They are singing the song of the messages about its intentions. politics of envy, non-stop,” she said.

FMG said it would “push ahead” Victoria to boost brown Other Liberal senator’s joined suit, with its battle against the tax after it coal mining with Mathias Cormann telling ABC had finalised its legal advice.

Victoria’s Baillieu Government has radio the tax was likely to be killed “The company has engaged senior begun a strategy to develop the Australian Mining gets the latby the High Court. counsel and will commence legal state’s massive brown coal reserves. est news every day, providing “Labor’s mining tax will be thrown proceedings after the legislation According draft cabinet submissions up to the minute information out by the High Cout just like their it will look to “increase industry on safety, news and technology has been enacted and legal opinion dodgy Malaysia people swap deal,” has been finalised,” it said. But interest in participating in the for the Australian mining and he said. “I am confident that will PerthNow reports FMG director proposed allocation of brown coal. resources industry. happen soon,” Cormann stated. of development Peter Meurs told Victoria is home to an abundance of Cormann also joined with Opposition reporters there was still no certainty of Primary Industries (DPI) says brown coal occurring close to the Treasurer Joe Hockey to accuse about the action. there is a proven resource potential earth’s surface, one of the largest the A Gillard Government of reducing “We’re looking at what’s legal and of 430 billion tonnes of coal located and lowest cost energy sources in D _ A MT R E 2 F E B _ 1 2 . p d f Pa ge 1 1 0 / 0 1 / 1 2 , 1 1 : 5 1 AM Australia’s mining competitiveness what’s not,” he said. in the state, which is a significant the world.

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“We will wait and see what advice we get before we decide what we do.” The Western Australian Government has already given its support to any challenge to the tax, with Premier Colin Barnett again arguing the legislation’s unfairness.

CIA rejects Palmer’s claims The CIA has rejected claims by Clive Palmer that it’s helping fund anticoal protests in Australia. According to the ABC a CIA spokesperson flatly rejected the allegation.

“Simply put, these allegations are false,” they said.

The comments follow Palmer’s accusation that a Greenpeace plan to shut down the coal industry had received funding by the Rockerfeller Foundation, which was funded by the CIA. Palmer said many antimining interests in Australia were part of a “foreign-orchestrated and overseas-funded campaign” to hamper the country’s development.

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INDUSTRY COMMENT

AUTOMATION & REMOTE COLLABORATION: Will it change the future of mining?

Honeywell Process Solutions’s Neil Freeman discusses what the future of automation may bring for mining.

I

magine a full-scale mining facility operated entirely by automated machinery and processes.

This is precisely what NASA examined in their Lunar Surface Systems study. It might appear to be a farfetched concept, but the reality might be close as the mining, minerals and metals (MMM) sectors look at ways to combat the lack of skilled resources, increased mining taxes and fluctuating supply and demand.

Selected autonomous machinery is already in use.

Rio Tinto, for example, use driverless haulage trucks in WA’s Pilbara region. However, remote or mobile mining operations attract many challenges with the implementation of automated systems safely while also ensuring operations are equally or more effective.

Understanding the benefits of a Remote Collaboration Centre

Enter the remote collaboration centre (RCC) – an offsite operations hub where experts from a variety of disciplines can access information, troubleshoot and optimise production facilities – all from a single location.

While RCCs have already been adopted by some mining giants, including Codelco, the requirements and systems needed to support RCCs are often advanced compared to how mining operations are presently run. While the technology exists, operational management is yet to catch up with the technology.

When looking at a fixed processing facility, the coordination of automated operations remains at a single location at any given point in time. Trying to coordinate automated fixed processing operations with automated mobile mining operations proves a more difficult task, requiring a skilled workforce with sophisticated processes and systems to effectively and safely run operations.

Herein lies the benefit of the RCC – the ability to coordinate and streamline automated operations between the fixed and mobile operations of a mining facility.

Creating synergies

Typically, mining processes are operated in relative isolation to each other; miners mine the raw material; metallurgists process the raw material; and logistics teams

transport the goods to an end destination. The synergies lost in keeping these processes separate are great.

Take a look at the manufacturing industry, for example. The just-in-time production method employed 10-15 years ago put the industry ahead of the curve in realising greater process efficiencies and cost savings.

The mining industry now needs its own just-in-time system/s to improve efficiencies along the supply chain, right down to the inventory stockpile that sits alongside the processing plant waiting to be transported.

Considering multiple operations

Imagining the value of a RCC with respect to operations at a single mine site is one thing. Imagining the complexity of coordinating automated operations across a company’s multiple mine sites is naturally more daunting. Yet it is in this environment that the greatest returns and value can be seen through the implementation of a RCC.

Where to from here?

With the technology available for the MMM sector to

Both automated and remote operations present a new set of challenges for the industry.

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Driverless haul trucks in the Pilbara have highligted automation..

move towards automation, where does the industry look to, to begin understanding and transitioning its existing operations to an automated environment? Its people.

While operations continue as they have done for a number of years, the mining industry needs to ask itself – how can we deploy our resources in the most effective manner? How can we empower our people to do more?

Creating synergy within operations is not a simple or quick task to deploy.

Automation requires careful planning and scheduling with implementation over a considered timeframe to ensure the smooth and efficient running of operations. It is critical that the right systems are in place to ensure the viability of the technology, and more importantly, the safety of all workers: the technology is the enabler;

the people make it happen; and the right systems and processes keep operations safe and viable.

Known for its boom-bust attributes, the mining industry has predominantly continued to push throughput, sometimes at any cost and without considering new solutions to alleviate unnecessary expenses, particularly during tighter market conditions. It’s now time for the industry to assess its position and understand the loss of efficiencies, productivity and profits in conducting its operations separately and with limited automation. With the opportunity in reach to make these changes, the right solutions and relevant supporting resources will turn an automated vision into a reality. *Neil Freeman is the principal consultant – mining and metals at Honeywell. www.miningaustralia.com.au

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MINING FAMILY MATTERS

Beating the I

f you travel away for distant and withdrawn. If work, a term you might this is you, it might help to hear bandied about by increase connections with miners is ‘black day’. loved ones while you’re Not surprisingly, it’s away. used to describe their toughFor others, black day is est day. For some, it’s the fi- about anxiety (felt as unnal day of their time off. For ease, restlessness or irritaothers it’s the actual day of bility). Anxiety generally retravel back to the mine site. lates to nameless fears so it’s The term is also used hard to generalise, but they to describe different experi- might include something ences: for some it’s a day of bad happening to the famfeeling sad; for others it’s a ily, something going wrong day of worry or stress. with their relationship, or If you’re one of those not getting enough sleep affected, you need to work while on site. If your black out what exactly your indi- day is an anxious one, revidual experience is – it will flect on your exact thoughts help to determine what can and fears. Depending on be done to make life easier what your thoughts are, to bear. you could simply choose to People whose black ignore them, or “challenge day is one of sadness usu- them” (i.e. is this really a really dwell on what they have alistic/rational thought?) already missed because of For others still, black working away, or what they day is about stress. Like will miss this time. They anxiety, stress can make might think about not being people feel wound up and able to go to important fam- edgy. But unlike anxiety, ily events, loneliness on the the thoughts that go with mine site, or anticipate miss- stress are more ‘realistic’ ing their loved ones while and usually relate to being they are away. All of these busy or having too much to thoughts lead to feeling do. If your black day is one sad or low – which in turn of stress, it’s likely that your might make them ‘clingy’ mind has switched back into and needy, or they can go work mode, maybe a day or D _ A MA B L A P R _ 1 2 . p d f Pa ge 1 1 3 / theA other way and become so early. Your family might

BLACK DAY BLUES Mining Family Matters psychologist Angie Willcocks on how to beat the mining blues.

Many miners find returning to site particularly hard.

notice that you are grumpy and short-tempered, and that you seem to have a lot on your mind. Stress management techniques will help you manage your black day better.

Next time you are having a black day, take the time to stop for a moment and think about how you feel (sad, anxious or stressed); what your thoughts are about; and how you are acting (withdrawn, snappy with 3 / 1 2 , 9 : 0 1 AM others). Sometimes, even

just noticing your black day thoughts can help you to feel more in control.

On a final note, it might help to share your thoughts and feelings with your partner, family or friends – especially if you can suggest a few ways they might be able to get you through your black day.

For example, keeping busy with something fun the day before you go back to work might help you to keep any anxious thoughts

in check. Making sure you have a family dinner the night before you fly/drive out might help you to feel more connected and less sad. Sitting down and making a ‘to do’ list might help you manage stress better.

As the old saying goes, a problem shared is a problem halved.

More professional advice and practical strategies for families in mining and resources can be found at www.miningfm.com.au.

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INFRASTRUCTURE

Loading QUESTIONS T he Hunter Valley needs a new coal loader at Newcastle. As one of the world’s major coal ports, rivalling its namesake, the tonnage shipped through Newcastle is astounding.

The need for another coal loader has been apparent for some time, with log jams across the Hunter Valley Coal Chain caused by backups at the port, and rising numbers of ships lining the coast from Newcastle down to the Central Coast.

And while the Chinese and Indian companies which receive the coal do not really care whether a new loader is run by Port Waratah Coal services or Nathan Tinkler’s Hunter Ports, the people who live in Newcastle and the State Government do.

In 2009, Port Waratah was given the opportunity to build a new coal loading terminal, known as Terminal 4 (or T4), as part of a wider long term agreement to service the Hunter’s growing coal industry.

This was in addition to the two it already theP Carrington A D _ operates A M J S T– A R_ 1 2 . p and Kooragang Coal Terminals. In

The battle for a new coal loader in Newcastle has finally come to a head.

2010 the company began planning rail dump station, track infrastructhe export site’s development. ture, upgrades to the buck-wheel reHowever the ball only really claimers and ship-loading amenities. started rolling last year as Port It also included the new T4 coal Waratah Coal Services announced loader. its ‘Project 145’, which was a plan Yet this was not the only new to grow the loader’s capacity at coal loader planned for the region.

Newcastle by an extra 145 million Mining magnate Nathan Tinkler tonnes annually. had also put forth an application d f The P a g$230 e 1million 1 6 / project 3 / 1 2 in, 1 for : 5a8newP coal M loader and container cludes the construction of a fourth terminal on what was previously the site of the BHP Billiton steelworks at Mayfield, via his company Hunter Ports.

This new coal loader was to be known as Terminal 5 (or T5).

Tinkler’s plan for the development of the site would include a coal loader, conveyor belt, two shipping berths as well as an upgraded rail system.

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Tubular Piles and Pipes Spirally welded up to 25mm The application stated that the thick, up to 3m dia, unspliced lengths in excess of 60m long.

NSW Government “endorsed terms Longitudinally welded up to 120mm thick. Complete with various protective coating solutions and accessories. for the construction of a fourth coal Fabricated Steel Modules Fully fabricated or supplied as “knock terminal at the port, should condidown” components (eg headstocks, pile caps, dolphins, jetty tions be met. decks).

“In support of the NSW Govern460MPa Structural Steel Sections Full range of structural steel sections including high strength “HISTAR” beams and columns ment’s commitment to further deup to 1118mm deep and 125mm flange thickness. velopment of export capacity within Anchorage Systems Tie Rods and waling systems including the port of Newcastle, [the port complete packages of ready to install components. Smart articulation and corrosion solutions. corporation] has made the decision Specialty Plates Heavy plate, Quench & Tempered plate, wear to amend the location of the swing plates, products that are either unable to be manufactured or are basin,” the application said. difficult to source locally.

“These changes are required to Reinforcing Steel / Krybar® AS reinforcing steels, Cryogenic facilitate further expansion of coalreinforcing bar and strand suitable for onshore LNG storage tanks. loading facilities on Kooragang IsJ STEEL AUSTRALASIA PTY LTD land upstream of the swing basin.”

Sydney: 02 8198 9500 Perth: 08 9278 4800 The month also saw Tinkler put Auckland: +64 9 623 2221 Brisbane: 07 3236 9690 his application on the table.

While he outlined the port’s Email: contact@jsteel.com.au www.jsteel.com.au development timeline, Tinkler also

A world of steel innovAtion

12

April 2012

AustralianMining

took the time to criticise Port Waratah as well as the Newcastle Port Corporation itself.

The two came to a head as the government was only prepared to approve one new loader.

Tinkler pushed his $2.5 billion proposal as one which was ‘more friendly’ to the local region, and promised to remove the majority of freight trains through Mayfield.

Hunter Ports managing director Steve van Barneveld explained that “a highlight of our plan is to create a new rail corridor through the industrial land adjacent to the Hunter River.

“This will remove an estimated 90% of coal trains from the main north-south line, permitting the closure of the Mayfield rail corridor and transforming the surrounding communities.

“Our proposed rail corridor can also service other port-related industries, removing current and future heavy trucks from industrial areas.”

Hunter Ports claimed that this coal terminal will ‘set new benchmarks in environmental and operational standards’ as well.

The company also claimed that it would be able to create a new ‘green belt’ along the Mayfield rail corridor.

Soon after the lodging of his proposal, Tinkler announced that Terminal 5’s size would double.

The new proposal aimed to handle up to 100 million tonnes of coal per annum.

However, Tinkler’s Hunter Ports proposal quickly saw opposition not only from its competition Port Waratah, but also the Hunter Development Corporation, the www.miningaustralia.com.au

AM.APR12.PG013.pdf

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The T5 proposal claimed it would remove 90 per cent of rail freight in Mayfield.

site because it is too just close to uncertainty in the industry as it Mayfield”. could potentially jeopardise existing The T5 was rejected in January coal agreements at Port Waratah’s this year, with the government in- new port. stead giving development approval Port Waratah Coal Services said to Port Waratah’s T4 coal loader. the decision of the O’Farrell GovAccording to the government ernment to reject Tinkler’s Hunter assessment “the proposal’s benefits Ports’ Terminal 5 provides certainty were outweighed by its potentially for the region, adding that its proadverse effects”. posed T4 loader will provide the with enough coal f PIta went g e on 1 to8 say / 0 that 3 / 1the 2 ,con-5 : Hunter 3 7 P Valley M struction of the coal loader created loading capacity.

0156_AFC_AusMining_halfpg_ad_April12_FA_o.indd 1 www.miningaustralia.com.au

As part of the Hunter Valley Coal Chain plan “the industry very clearly asked PWCS to deliver T4 to provide the next tranches of coal loading capacity,” Port Waratah said. It went on to attack Tinkler’s proposal, stating that T5 “was an incomplete concept from outside the industry framework, and did not appear to have been costed or modelled against the overall coal chain”.

Since this time, the T4 coal loader’s $5 billion proposal has gone public and drawn criticism from environmental groups, particularly over its dust management claims.

“Anybody who lives in Newcastle knows there is a blanketing of coal dust in many suburbs close to the coal loaders every day of the year, 365 days,” Correct Planning and Consultation for Mayfield spokesperson John Hayes told The Newcastle Herald.

“There’s a widespread view that spraying water and dust on the coal dust piles doesn’t do much to suppress dust.

“There’s also a widespread view that with the monitoring that takes place, frequently that the monitors aren’t in the right position.”

PWCS expansion will create 2000 jobs during construction and 400 during operations.

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Newcastle Port Corporation, and local politicians.

Port Waratah was the most vocal in its opposition.

PWCS CEO Hennie du Plooy said Tinkler’s proposal ‘undermined’ and weakend the entire commercial framework for the Hunter Valley Coal Chain.

“The [proposed Tinkler T4 terminal] doesn’t currently fit into the long-term commercial framework,” du Plooy said.

“It would need to fit with that commercial framework.”

Barneveld dismissed this, stating that the T5 loader would create more certainty and jobs for the region than the T4 proposal.

Jodi McKay, the NSW minister for the Hunter, believed that the T5 coal loader could not exist on the same site as a container terminal.

She said that when the State government body Newcastle Port Corporation (NPC) originally put the plans forward for a multipurpose facility on site, it did not include either a coal loader or terminal for the shipment of coal.

“There was no proposal for a coal loader when the original tender was put forward.”

AMcKay D _ A Mwent A F Con A to P Rsay _ 1that 2 . she pd did not “support a coal loader on

PIP

AustralianMining6/03/12 April 2012 13 12:11 PM

AM.APR12.PG014.pdf

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INFRASTRUCTURE

At war with Palmer The scramble to develop infrastructure in the Galilee Basin turned ugly this year.

T

he war between Clive Palmer’s China First and QR National over Galilee Basin infrastructure shows how much is at stake in planning the region’s rail network.

The battle kicked off early this year with Palmer, true to form, accusing QR of “misleading conduct” and a “breach of confidentiality”.

Palmer took to Twitter shortly after an announcement by China First of legal action, quipping: “shame on QR and the Queensland Government”.

The way Palmer sees it, QR National is taking plans it developed in conjunction with China First, and using them for itself.

Mining magnate Clive Palmer is threatening to sue QR National for $8 billion in damages.

Once the QLD Government announced ‘significant respect of the Galilee Basin ment also claimed coordina- ment if the LNP won Govproject status’ for QR Na- and its corridor and associ- tor general Keith Davies was ernment. tional’s rail project, a direct ated port facilities.” biased in his decision to enFor what it was worth competitor of China First, But it wasn’t just breach dorse QR’s project. premier Anna Bligh said the company was furious. of confidentiality China Once things got political there was a level playing “This is an outrage as First slammed QR for.

QLD Liberal-National Party field on all rail applications we had already been in comIt also claimed QR, leader Campbell Newman, in Galilee. mercial discussions and ex- more than a third owned who’s received significant fiShe said Palmer had changes with QR National by the QLD Government, nancial backing from Palm- won significant status for for cooperation in the joint was pushing its plan as part er, tried to distance himself his project and other propodevelopment of rail and port of the Bligh Government’s from the battle. nents had received the same facilities supporting the Gal- election campaign.

“This is his matter with treatment. ilee Basin,” China First said.

Both entities are spruik- the QLD Government, I’ve “A level fielding’s not “We intend seeking ing job creation as a rea- not ever discussed this with good enough, it seems Mr damages of $8 billion and son to back their plan, but him at all,” he said.

Palmer wants some special will also seek injunctions China First said QR’s claims He also fought off sug- treatment,” she said. against QR National and looked “like a bid to score gestions by QLD deputy But Palmer isn’t the only other relevant parties seek- some political mileage”. premier Andrew Fraser billionaire scrambling to D _ restrain A MH B D APR _ 1 2 . pA d f leaked P a g letter e 1 from 1 3 / 0that 3 / Palmer 1 2 , and 1 0China : 4 6 First A M connect Galilee’s coal to the ingA to them from dealing with QR National in Palmer to the Bligh Govern- would get preferential treat- coast, with Gina Rinehart

and Indian [billionaire] GV Krishna Reddy also eyeing rail development in the mining region.

Rinehart and Reddy’s GVK Group have $10 billion plans for a mine, rail, and port project out of Galilee, almost double the value of the China First project.

A landlocked, underdeveloped, and often ignored region, miners are now looking to exploit the Galilee Basin’s coal reserves on the back of continued demand from Asia.

The cost of connecting these deposits to the coast is enormous, and with no development on the ground, each company is pressing for their own plans to be championed.

With the debate’s current vitriol cooperation looks unlikely, but rising competition for developing infrastructure in the region might force traditional rivals to the negotiating table.

Other less involved miners, including Brazil based giant Vale, have previously said a jointly owned railway would save costs and speed up development.

Vale too is considering splashing $10 million on a project in the region.

But what’s more likely in the short term is more debate, especially if Palmer manages to drag QR through the courts.

Mechanical & Structural Detailing • • • • • •

Fixed Plant Mobile Plant Processing Plant Transfer infrastructure Materials Handling Hopper & Crushing

• • • • • •

Structural Detailing Mechanical Drawings 3D Parametric Modelling Mechanical Design Structural Design 3D Pipe Work

www.hamiltonbydesign.com 14

April 2012

AustralianMining

www.miningaustralia.com.au

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AM.APR12.PG016.pdf

Page

16

23/03/12,

10:53

AM

INFRASTRUCTURE

Cape size campaign Centrex Metals has plans to build South Australia’s first port for cape size vessels.

C

urrently no port in South Australia can support capesize vessels for export, a significant impediment to the mining industry’s expansion.

With the success of mining tied closely to strong infrastructure, iron ore upstart Centrex Metals has ambitious plans for a new deep water port on the Eyre Peninsula.

Located 200 kilometres north west of Adelaide, the proposed $180 million Port Spencer development includes plans for a loading facility, storage areas for iron ore and grain, and a 500-metre deep wharf.

Back in January last year the project was given Major Development status by the Government, and the draft public environment report was released just last month.

Amongst the major issues investigated, the report looked at the impact of a deep water port on the region’s marine and coastal environment, implications for local traffic, and the project’s A D _ Aeconomic M S F C Abenefits.

P R _ 1 2In. the pd report’s executive summary Centrex

16

April 2012

AustralianMining

South Australia’s lack of infrastructure has handicapped mining development.

acknowledged the handicap a lack transportation options … central of infrastructure had put on SA’s to this is the development of suitmining industry. able infrastructure to facilitate cost“Large iron ore reserves and effective and environmentally reother valuable minerals are yet to be sponsible transportation options for recovered on the Eyre Peninsula and industry.” across SA more generally,” it said.

The Port Spencer development “While the resource demands represents a change in direction for continue to grow, particularly from Centrex, after it initially planned on f China, P a gthere e 1is increasing 2 2 / 0 3 /pressure 1 2 , 2 exporting : 5 3 Piron M ore from its Wilgerup for industry to plan for efficient mine through Port Lincoln.

The proposed Port Bonython development and shipment through Whyalla was also considered.

“Existing ports were not considered suitable to meet Centrex’s mining and shipping needs, due to a number of reasons including proximity to iron ore deposits, ability to receive cape class vessels, potential environmental impacts, economic costs, terminus congestion and likely community support,” the company said.

According to Centrex whether the Port Spencer development ends up in the rejection pile with other proposals or gets the green light largely depends on the viability of its Eyre Peninsula mines.Centrex holds over 2,000 square kilometres of iron ore resources and exploration targets on Eyre Peninsula, including the Wilgerup, Eyre Penninsula Joint Venture, and Bungalow Joint Venture projects. But the company means business on Port Spencer, indicating a target for stage one construction to start later this year, with operations starting Q4 2014.

www.miningaustralia.com.au

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AM.APR12.PG018.pdf

Page

18

23/03/12,

3:02

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INFRASTRUCTURE

The Great Barrier Reef question The development of QLD coal ports is under scrutiny following a UNESCO investigation.

Q

ueensland has already taken major steps in the development of its coal ports to take advantage of the mining boom.

Via the development of the Wiggins Island Coal Terminal, through the expansion of Hay Point and Abbot Point, Dudgeon Point, Gladstone Harbour, and looking to additional ports such as Yarwun, it has demonstrated it is a state on the move.

However on the back of all this massive development a number of questions are being asked – such as how will it affect the environment and more importantly, the Great Barrier Reef?

A recent United Nations mission to Queensland sought to answer these ques- Environmental impacts on the Reef have been a key focus for both mining and conservation groups. tions.

The United Nations Edu- development because if we However, this fear was resentatives to carry out a cation, Scientific and Cultur- fail the environment, we fail quickly quashed by the QLD ‘reactive monitoring misal Organization (UNESCO) the people of Queensland, Department of Environment sion’ and get to the source spent last month investigat- Australia and the world,” and Resource Management, of the matter. ing claims that coal ports QRC chief Michael Roche which claimed that water This involved them flyacross Queensland were said. quality had not changed ing over the ports in queshaving a serious impact on “Our social licence to in harbours since dredging tion to observe the impact the Reef, and put its World operate – the unwritten began. of the operations and see Heritage listing at risk. contract between the people However the discovery whether increased vessel According to the and our industries that often of a cracked coal ship, the numbers would damage the Queensland Resources extends well beyond legisla- Newland Venetico, steam- region.

Council (QRC), the visit was tion and regulation – is criti- ing through the Barrier After this they met with also part of the coal industry cal to business success.”

Reef to China earlier this conservation groups. and North Queensland Bulk Ahead of the visit, the year highlighted additional According to the Greens Ports Corporation’s massive Greens claimed the devel- threats to the reef. local candidate Chrisenvironmental investigation opments could see tonnes Fanny Douvere and Tim tine Carlisle, conservation into the expansions. of dredged soil from the Badman, from UNESCO’s groups erected protest signs A“It D _isAan M Aessential X I A P input R _ 1 2 ports . p d dumped f P a ghaphazardly, e 1 2 3 / 0 3 / 1 Heritage 2 , 8 :Centre 1 4 met A M for the UNESCO delegates World Axiomplanning Mining Ad and 02e - 60x210.pdf into project putting the 1reef20/03/12 in danger.12:19 PM with resource industry rep- as they flew over.

“We want to draw attention to the stresses the reef is under,” Carlisle told the Daily Mercury.

“This community is under siege from the over development of the ports.

“UNESCO was here as an external observer. They gave the reef heritage status in the first place; they have a vested interest in maintaining it as an area of international significance.”

Greens senator Larissa Waters added: “we’ve spoken out loud and clear on this issue – the Great Barrier Reef contributes $6 billion to our economy every year and supports more than 60,000 jobs, and we don’t want to see it destroyed to become the world’s largest marine rubbish dump”.

QRC chief Michael Roche agreed, stating “any incident that damages the reef is totally unacceptable to us, as it is to all Australians and the international community.

“The resources sector has as much equity in the sanctity of the reef as everyone else.”

While the two agree on the importance of the environment, it is unlikely they will ever agree on the development of the coal ports.

At the time of publication, a UNESCO decision had not been finalised.

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Phone Email Web Postal

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(08) 8118 6151 sales@axiomic.com.au www.axiomic.com.au PO Box 243 Melrose Park SA 5039 Australia Wide AustralianMining

www.miningaustralia.com.au

AD_AMSCHAPR_12.pdf

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AM.APR12.PG020.pdf

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OPEN CUT MINING

Monitoring by the

MILLIMETRE

24/7 site surveying is providing a safer workplace.

M

ine deformation tomated 3D stations and and ground slip fixed monitors can perform are ever present auto-pointing to access both issues at both open cut and reflective prisms and sheet underground mines. targets from distances of up Unforeseen changes in to a kilometre. ground conditions, water These automated delevels, land slips or deterio- formation management ration in rock strata condi- systems are represented by tions all present a serious Lightwave Technology in risk on site.

Australia.

At sites such as Cadia According to Justin Davand Savage River, ground is, Lightwave’s CEO, there slips and rockfalls have pre- has already been an interest viously halted production in the technology in mining. and presented a danger to The Sokkia Net systems miners on site. are designed for fixed outDeformation manage- door installation and operament is key to ensuring that tion in wet or dusty condiincidents such as these can tions. either be avoided or at the They use a primary telvery least mitigated. escope with a modulated According to Sokkia, laser, phase comparison its latest survey and moni- method to provide automattoring the NET A D _equipment, A MI N P A PR _ 1 2 ed . preal d f time P aand g econtinuous 1 1 6 / 1AX and NET 05AX au- slope monitoring.

This structural data is then collected, processed, and interpreted, after which it can be remotely accessed through a web based system.

Alerts are trigged as soon as an anomaly is detected, with an early warning system designed to minimise potentially disastrous events.

Davis stated that “if there has been any detectable movement in the structure or landform then an alert can be raised”.

He added that the site specific accuracy can be set as narrowly to detect movements down to .5mm.

“For instance, in an open cut mine slope angles can be monitored to allow the 3optimal / 1 2 ,excavation 1 : 5 0 and PM facilitation of mining steep-

The automated monitoring equipment can provide info on movements down to .5mm.

er slopes with safety,” Davis explained.

It incorporates a Windows CE operating system which interfaces with the MONMOS three dimensional co-ordinate measuring software for the immediate analysis and

reporting of any structural change.

According to Davis these change warnings “can be delivered by a range of different mediums, including email, SMS, audible alarms, printed reports, or visual warning systems.

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www.miningaustralia.com.au

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HIRE & RENTAL

To drive your dollar further

Over 300 pieces of machinery went on display at the Euro Auctions sale.

GROWING market Equipment hire and rental continues to grow strongly in Australia, with international companies also getting involved.

L

Call us on 13 27 27 today Budget has a wide range of mine-spec vehicles available in all of Australia’s major mining regions. To discuss your mine-spec fleet requirements, please call your nearest Budget location on 13 27 27 today.

ike some manufacturing companies and other service providers mining focused equipment hire and rental companies are reaping the benefit of the boom.

The sector is becoming an increasingly popular target for mergers and acquisitions, both for companies already in the business and those with no mining background.

For companies outside the mining or equipment industries but with the money to make acquisitions, mining geared equipment and machinery represents the perfect opportunity to capitalise on the boom without taking on too much risk.

For companies already in the sectors, expanding their operations with new projects, sites, or acquisitions represents a chance to build on an already successful market.

Two of the most recent and significant plays in the equipment hire and rental industries this year came last month with Onsite Rental Group’s acquisition of Q-Air, and Euro Actions’ first Australian sale in Brisbane.

Onsite Rental

BUDG1027

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In mid-march national equipment rental firm Onsite Rental said it was boosting investment in resource-rich Queensland with the acquisition of hire provider Q-Air.

Onsite Rental said the move was made to capitalise on Queensland’s growing mining industry, particularly the fledgling onshore gas industry.

“The expansion places the company in a unique position to capitalise on the significant growth opportunities in the Surat to Gladstone Corridor where forecast projects exceed $83 billion,” the company said in a statement.

Onsite Rental said growth in the Surat and Bowen Basin regions would be a priority moving forward, and a new branch was established in Emerald earlier this year to meet the strong demand for equipment.

The company said the another Gladstone branch, picked up as part of the Q-Air business, would take Onsite Rental’s total branches in QLD to eight.

The Q-Air deal is the latest in a long spate of expansions and acquisitions for Onsite Rental.

In 2009 the company made the $40 million acquisition of Queensland power rental business WASP Diesel, and in 2010 it acquired portable building company Ifco.

Keeping at a rate of one acquisition a year, Onsite also bought-out Melbourne-based portable building and rental business Parks Portables in 2011. www.miningaustralia.com.au

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HIRE & RENTAL

The previous acquisitions point to the company’s diversified background covering building, power and pumps, earthmoving, and materials handling.

With the onwards march of the mining industry we may see more acquisitions yet, and a growing focus on the resources sectors.

Onsite Rental Group CEO Mark Rich said in a statement the most recent acquisition of Q-Air was an “important milestone” for the company’s plans to support the mining sector and its support industries.

“We now have a very significant investment profile in place to support our growth in Queensland on top of considerable capex already employed in the state,” he said.

Euro Auctions

Following months of preparations equipment auctioneer Euro Actions held its first Australian sale early last month.

A Europe-based company, Euro Actions’ move into the Australian market highlighted the continued interest of international companies on Australia’s mining industry.

The sale was held at the new company headquarters in Brisbane, with Euro Auctions following the lead of other international companies in establishing a new base in the city.

“Given the current buoyant Australian economy, with the mining and infrastructure sectors demanding more and more access to plant and construction machinery, the planning and execution of this sale was a natural choice for Euro Auctions in satisfying the needs of its global audience,” it said.

In a statement the company said over 300 pieces of machinery went on sale and interest had been “far

Higher than expected numbers turned out for the Brisbane auction

better than anticipated,” with an extra 35 per cent of attendees participating in online auctions.

“The level of online bidding was high, mainly from international and Western Australian participants, however the bidders that attended the sale on the day were the ultimate buyers, such is the power of the physical auction,” it said.

“The audience on the day was made up of buyers and dealers from across Australia as well as international buyers that arrived into Brisbane from Europe, Malaysia, Singapore and Japan solely for the sale.”

Loaders, dozers, and forklifts as well as larger excavators and dump trucks formed the bulk of the company’s inventory.

Crushing and screening equipment was also on sale, along with buckets and other attachments.

The company said it made a turnover of close to $11 million and would be hosting another sale in June.

In a statement Euro Auctions managing director Derek Keyes said the sale’s success had confirmed theAcompany’s suspicions D _ A MB O G A P R _there 1 2 .was pd a strong demand for equipment

from the Australian market.

He said Euro Actions was “firmly in business in Australia.

“Queenslanders made up the majority of the onsite bidders but New South Wales, ACT and Victoria were well represented and there some1 equipment f wasP also a ge 2 / 0 3 /purchased 1 2 , 1 2 : 5 5 by bidders from Darwin and Perth.”

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Becoming a hire power The mining vehicle hire market is set to grow as another competitor expands into the space.

I

The demand for mining hire cars has risen dramatically in WA on the back of the boom.

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t is an undeniable fact in mining that there is a shortage of vehicles.

From massive mine trucks through to four wheel drives and utes, there are not enough vehicles to go around.

Car hire companies have been attempting to fill this massive shortfall in mine site vehicles.

Companies such as Budget Rent-A-Car, Thrifty, and Hertz have been servicing this space in Western Australia for a while, and now another vehicle hire and rental company – Europcar – is entering the space, even if it is a bit late to the party.

Previously the hire car company’s focus was more on airport rentals as its bread winner.

However speaking to Rod Zakostelsky, who is heading up the company’s

West Australian expansion, he explained to Australian Mining that it has now increased its focus on the boom state, and this new push into WA reflects the company’s “understanding of some of the supply challenges businesses are facing right now.

“The demand for purchasing commercial vehicles to fill project requirements has created a backlog in vehicle manufacturing, triggering an increase demand for rental vehicles,” Zakostelsky said.

This has only been exacerbated by the tsunamis in Japan last year, which drastically reduced output from the major mine site personnel vehicle manufacturer Toyota, which builds the Hiluxes and the majority of the four wheel drives that populate most mine sites.

www.miningaustralia.com.au

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“There is a huge problem with buying at the moment,” he told Australian Mining.

“You can’t even get the vehicles due to this shortage, especially the Toyotas, which everyone wants.

You can’t get your hands on these due to the floods and the tsunamis last year.

Toyota still apparently has around 12 000 vehicles on back order, even a year on.

“By offering mine specific rentals as an alternative, we are saving our customers time and are taking away the stress from purchasing vehicles that are on backlog Globally, personnal vehicles on site are at an all time shortage, with Toyota seeing a backlog of around 12 000 vehicles. orders.”

He pointed to this short- ready had a presence, albeit Zakostelsky said that Geraldton, Busselton, Bun- hicles right across WA.” fall as one of the main tip- rather small, in the state’s with so many personnel ve- bury, Albany, and Collie.

According to Zakostelping points in the hire or mining sector. hicle rentals firms already “More branches will sky the company will hire buy debate.

“Europcar only did min- in the region competition mean vehicles can be moved out “all vehicles ranging “The common reason ing rentals on a very small would be tough. more easily between loca- from dual cab hiluxes to miners will hire equipment scale, not more than about Which is why the com- tions, allowing the mining 12 seater buses, eight to ten is that you can rent as much ten to 20 vehicles in the Pil- pany is “gearing up to have industry’s demands to be tonne trucks, through to 33 as you need, and that it is a bara, although it had a pres- a stronger presence in the met,” Zakostelsky said. seater coaches. single expense.” ence in the Eastern Coast’s market so that mining com“We understand that “We now have 160 veWhile the personnel ve- mining industry it only panies have a wider choice, some businesses are not lo- hicles but we forecast a fleet hicle hire market has strong had WA branches in Perth, we’ll try to be there as the cated near a commercial of 500 plus by the end of competition within Western Broome and the Pilbara. market needs us,” he said. vehicle rental branch and so the year and between 1500 Australia, ex-1 0 . p “But achieve A D _ A MZakostelsky NORF E B_ d f now P a itg has e changed 1 1 / 1 5 / It 1 0will , 5 : 2 0 this P Mby we are working hard to meet and 2000 vehicles within 24 plained that Europcar al- its perspective.” opening five new branches in their needs by delivering ve- months,” he stated.

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HIRE & RENTAL

To rent or to own?

What should you consider when hiring mining equipment, writes Mohammed Abdul*.

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ining equipment often has price tags of millions of dollars and not all mining companies can afford to buy high priced equipment outright or straight away.

Most junior miners prefer to rent the equipment, in order to reduce their investments in fixed assets and to gain quicker access to it as the equipment shortage bites.

In addition to the junior miners, most global mining giants are relying entirely on rentals for their operations, or concentrating on equipment rental to support their existing fleet of equipment.

But there is always the question of whether it better to buy or rent.

However equipment rentals do offer a number of benefits over straight out purchases.

Firstly there is no capital investment, as hiring equipment frees up capital which can be used profitably elsewhere.

Borrowing power also improves as rented equipment is not shown as a liability on the balance sheet.

By renting rather than purchase the latest equip-

With such high initial price tags, the mining machinery requires heavy investment.

ment can be hired, without concerns over the depreciation of owned machines or the usage of worn-out equipment.

It also allows for the possibility of trials – a try before you do buy – so you can study how well the equipment works, before purchasing them later for

larger projects.

Through rental a company can supplement the core fleet, with machines quickly added to the existing fleet to tackle one-off projects.

Additionally it wipes out storage costs as there is no requirement for storage yards.

On top of this are low-

ered maintenance costs as service shops, spare parts, tools, mechanics etc. can be eliminated at the customer’s end as rental agreements, typically, cover complete maintenance during the rental period.

Some rental service providers of major manufacturers provide on-the-spot

services, in a short duration of time.

The rent of the equipment depends on various factors like the size, condition, age and life of the equipment.

While the rent per hour is higher for new and large sized equipment compared to smaller and older ones machine quality is higher.

Our name is changing.

These are exciting times for our company. After 14 successful years providing vehicle hire throughout

more. That’s why we’re changing our name to reflect

BLOCK252024-4

the Pilbara and beyond, we’re growing and offering

Whatever it takes to get you there.

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www.miningaustralia.com.au

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HIRE & RENTAL

Some contractors also request the hirer to submit the topography and weather conditions of the mines and, for excavators, request the type of ore, its abrasiveness and hardness, after which the rent is decided.

Rental contracts

Rental contract periods may vary from one month to several years.

Rental contracts are usually not made for periods less than a month while the rents themselves are calculated on an hourly basis.

At the beginning of the contract, the user has to make an upfront payment, for about 200 hours or in some cases for one month, along with transportation costs.

The transportation cost has no fixed rates as it depends on the distance to the location, the remoteness of the location, the topography etc.

For mining equipment, the dry rate is usually considered for rent per houu without fuel.

The upfront payment, excluding the transportation cost, will be returned to the user, at the end of the contract.

It is usually adjusted towards the bill, which the user has to pay, at the end of the usage period. Hiring of machines is concluded based on an individual contract of hire/machine.

All aspects of the machine’s use, such as role, time needed, and costs should be considered prior to purchase or rental.

The hirer is responsible for clean fuel supply, for the plant, for the duration of the hire.

All Ground Engaging Tools supplied are applied to the hirer’s account.

The hirer will be responsible for punctures, excessive tire/under carriage wear and insurance of the Plant.

A minimum rate will still be charged per day, even if the equipment is not used.

The rate will be equivalent to the rates for 9-9.5 hours, so if equipment is

hired then hirer has to pay rent for around 300 hours/ month, even if the equipment is not used.

Occasionally the equipment is rented along with an operator and the operator keeps an account of the operating (used) hours of the equipment although the operator’s rates vary from region to region.

Most large equipment rental companies publish their rental rates on their websites and in some cases there are associations of the

equipment rental contractors which publish the rental rates on websites with categorised regions and equipment.

Factors to be considered while hiring equipment • Cost of the Equipment • Condition of the Equipment • Project Life • Operating Cost • Rent per hour.

• Services provided by the Contractor Considering these factors, the total cost incurred

if the equipment is bought/ leased or rented, should be calculated for the project life.

Usually, the renting of equipment is justifiable for smaller periods and may prove expensive in the long term.

The breakeven point can be achieved by taking into consideration all the factors mentioned, and for periods less than that, the equipment can be safely hired. *Mohammed Abdul is a research analyst at Beroe.

Our commitment remains. who we are: a strong, honest and reliable company.

While we’ll look different, we’re still the same people offering the same dedicated service. As we change, you can expect no disruption to your plans.

1800 CAR 4 HIRE www.miningaustralia.com.au

rawhire.com.au AustralianMining

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GREENPEACE

Activist

OUTRAGE

The surfacing of secret Greenpeace documents detailing anti-mining plans have sent shockwaves through the industry.

B

y far the most shocking news to hit the mining industry this year was the revelation activists led by Greenpeace were secretly planning to destroy the coal industry.

In itself the news is not new or surprising, but the leaked document detailing their plans, titled Stopping the Australian Coal Export Boom, provided a rarely seen insight into the inner workings of some environmental activists.

Of particular concern to the mining industry and both sides of politics were the ambitions of protestors to fund “scandal research” in the hope of stopping coal mining.

The plans also detailed how dragging companies through the courts and propping up landholder opposition could “disrupt and delay” the industry.

The plan’s finances proved anti-mining activists meant business, aiming for $5.92 million in philanthropic funding to bankroll 28

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demonstrations, advertising, and legal challenges.

The strategy

Working off the assumption the coal industry is bad for Australia, the Greenpeace plans aim to close down the coal industry by working to change the public’s perception of the mining industry.

Most importantly the documents aim to build off the anti coal seam gas campaign, which they mark as having already had significant success.

“We urgently need to build the anti-coal movement and mobilise off the back of community backlash to coal seam gas,” the documents say.

“Coal seam gas has spawned a phenomenal community backlash through the ‘Lock the Gate’ movement and has created unprecedented political opportunities for coal activists around the country.”

The Greenpeace plans talk of “eroding public and political support for the in-

dustry” on a nation-wide scale.

They say with the Greens holding the balance of power in the Federal Government, a “powerful opportunity” exists to push for shutting down the coal industry.

Greenpeace said central to the plan to stop the coal industry would be confronting mining industry rhetoric head on.

The strategy aims to distort the story of the coal sector so the public no longer sees it as a prosperous industry supporting jobs, community, and the economy.

“Change the story of coal from being the backbone of our economy, to being a destructive industry that destroys the landscape and communities, corrupts our democracy, and threats the global climate,” the document says.

But Greenpeace says relying on a head on attack will not bring a total victory for protestors. It says an assault from all levels of

government and community will be necessary,but added that it will require a “significant investment in legal capacity”.

“We cannot win by taking the industry head-on and there is no single point of intervention that we can rely upon,” it says.

Greenpeace names litigation, grass roots opposition, creating a heightened perception of risk among investors, and building alliances with other activists as some of its main objectives in taking down the industry.

Scandal research

Of the millions earmarked for the campaign, around $240,000 was marked by Greenpeace to fund “scandal research”.

Anti-coal mining activist group Coalswarm, and donors marked as “private” were designated to pay for the research.

Left-leaning think tank The Australia Institute, coal seam gas activists Lock the Gate, and GetUp were also

listed as donors, along with other organisations.

Officials for Greenpeace, the non-government Environmental Defenders Office, Beyond Zero Emissions, and other Australian organisations were also thanked in the document’s acknowledgements for contributing to the plan.

Prominent philanthropist, Greens donor, and Wotif founder Graeme Wood was also named as a possible financial backer.

As it stands Greenpeace has not yet collected enough money for the campaign and research but the details of its financing are unclear.

A Greenpeace spokesperson told Australian Mining by “scandal research” it meant investigating and bringing to light the darker sides of the mining industry it thought the public had no knowledge of.

“We think there are a lot of things that, if they saw the light of day, the pubContinued on page 30 www.miningaustralia.com.au

AD_AMBARDEC_11.pdf

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A COMMITMENT TO BEST PRACTICE AND DELIVERY OF VALUE

Barminco is an international leader in mechanised hard rock underground mining, delivering world best standards and productivities.

22 years of experience and knowledge Leading edge production information systems Robust services in maintenance and support Safety records that exceed global benchmarks Service excellence and flexibility supported by a progressive culture The largest single company owned fleet of underground mechanised equipment in the world.

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AM.APR12.PG030.pdf

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GREENPEACE

Continued from page 28

lic would not be impressed by,” they said.

“There’s a range of scandals in the industry relating to the revolving door between industry and the government, a lack of regulation, breaches of licence conditions, and political donations.”

Industry reaction

The entire mining industry was unsurprisingly unanimous in its condemnation of the Greenpeace claims.

Minerals Council chief executive Mitch Hooke la- Greenpeace documents say they aim to “erode public and political support for the industry”. beled them a “direct attack on Australia’s national inHooke said it was “pro- do “untold damage” to the But miners weren’t the terest” and said they threat- foundly disappointing” to economy. only ones opposed to the ened the lives of workers see anti coal campaigners He said while many of plans, with the strategy and the economy as a whole. take the approach they had. the concerns raised in the briefly uniting both sides of “Coal is a legal and leHe said the mining in- Greenpeace documents were politics. gitimate industry that com- dustry was committed to legitimate, the way they Treasurer Wayne Swan plies with rigorous environ- operating sustainably and were being dealt with was slammed the documents as mental and social approvals spent billions of dollars disappointing. “deeply irresponsible” and processes,” he said. minimising its environmen“We’re extremely con- “completely irrational and “It should be permitted tal impact. cerned about the way that destructive”. to expand without facing New South Wales Min- genuine concerns about the The Opposition also vexatious, untruthful and erals Council CEO Stephen impacts of mining are being spoke out against them. potentially camBut the political ties did A D _ A Munlawful D MF D E C _ 1 1 Galilee . p d f also P a followed g e 1 suit, 4 / 1 1cynically / 1 1 , hi-jacked 3 : 3 2 andP maM paigns.” and said the plan would nipulated,” he said. not end there, with news

emerging several groups in the anti-mining campaign had received almost $750,000 in Federal funding.

The Nature Conservation Council, Environment Victoria, and the Conservation Council of Western Australia, named in the anti-coal documents, have received Government grants of $211,000, $213,215, and $319,420 respectively since last December.

Environment Victoria was designated to fund $60,000 of anti-coal campaigning expenses in VIC and also bankroll a $90,000 protest in Melbourne.

While ultimately no different to much of the Greenpeace rhetoric already on the record, the leaked documents showed just how determined activists were and the broad network of organisations behind them.

With links to the Government, the rich and powerful, and international foundations, the documents indicated the strengthening of a movement that could not be ignored.

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AM.APR12.PG032.pdf

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CONTRACT MINING, ENGINEERING & SERVICES

STRIKES continue Industrial action and new work agreements continue to be a problem plaguing the mining industry.

O

ne of the most troubling and long running problems for mining companies, particularly in the coal industry, has been resigning new contracts for workers.

With companies posting record profits year after year, employees are now keener than ever to ensure they’re taking a fair share of the earnings.

And with the skills shortage still hurting companies employees are in a stronger than ever bargaining position.

One of the miners hardest hit by rolling industrial action has been BHP Billiton, with disputes at the West Cliff mine, Port Kembla Coal Terminal, and Queensland BMA sites, as well as subsidiary projects.

Port Kembla

Early this year the CFMEU led industrial action at BHP’s Port Kembla Coal Terminal after negotiations on new enterprise agreements broke down.

The sticking point on the new contract was the pay, with workers demanding a 4.5 per cent rise and being offered a raise of only 4.3 per cent.

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The CFMEU again pushed Concerns about job Fair Work said while the security were also voiced, for a 4.5 per cent pay rise for Appin mine management and close to 100 employees workers at West Cliff, as well had attended negotiations it stopped work to have their as minor changes to bonuses. had failed to show a “genu“We’re asking for some- ine endeavour to negotiate demands heard.

After initial strikes new thing that we believe is com- an agreemen”. negotiations broke down parable to other BHP Bil“This decision should again, and workers striked liton operations,” CFMEU be a wake-up call to BHP. for a second time only a day mining and energy district Whether at Endeavour Coal vice-president Bob Timbs or in the Bowen Basin, the after returning to work.

Talks and industrial ac- said at the time. company can’t just ignore But unlike Port Kembla the wishes of its employees tion continued for around a month before the CFMEU the strikes did not eventu- to be covered by a fair collecand BHP finally came to an ate, with both workers and tive agreement,” the CFMEU agreement. said following the In the end BHP This decision should be a wake-up ruling. agreed to initial call for BHP. The company can’t just BMA worker demands Central to union for a 4.5 per cent ignore the wishes of its employees claims over BHP’s pay rise per year for three years plus job secu- the company coming to a unwillingness to negotiate is a leaked email released last compromise. rity provisions. month.

The CFMEU marked the In the email BHP Billiton agreement as a win for work- Good faith ers, while BHP ran its contin- A recent decision by Fair coal CEO Marcus Randolph ued policy of not comment- Work Australia might change said the dispute between unhow miners negotiate with ions on its QLD BMA mines ing over work agreements. unions after the regulator dis- was nonnegotiable – “not West Cliff ciplined a BHP subsidiary. now, not next month, and Almost three times the In late March Fair Work not next year”. workers involved in the Port ruled Endeavour Coal had The comments had unKembla dispute threatened not bargained in good faith ions questioning why BHP to down tools at BHP’s West with workers at its Appin had been attending bargainCliff mine earlier in the year. mine in New South Wales. ing meetings if it wasn’t preAnd like Port Kembla, The decision was hailed pared to budge. remuneration took centre by the CFMEU as a blow to “This shows the compastage in the disagreement companies not interested in ny went in with a strategy to though the union denied negotiating, a charge which purposely ignore its workthere was any link between it had leveled at BHP nu- force, to enter negotiations disputes at both sites. merous times. with no intention whatso-

ever of listening to employee concerns,” it said.

But in breaking the code of silence, BHP told Australian Mining it had already made concessions during BMA negotiations.

“We have had numerous meetings with the unions over a period of more than a year and have resolved the overwhelming majority of issues during this time,” it said.

The company said most unresolved issues were not to do with workers but to do with union power, and this had always been nonnegotiable.

“The company can not, and will not, diminish its rights and obligations to manage the business, nor will we accept productivitydestroying arrangements as currently proposed by the unions,” it said.

“Strike action will not change our position, as has been the case for the past eight months.”

With equally strong opinions on both sides of the debate a short term resolution to the disputes seems unlikely. And if the current battles are any indication, we’ll be reading about them for some time to come. www.miningaustralia.com.au

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AM.APR12.PG034.pdf

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CONTRACT MINING, ENGINEERING & SERVICES

Indigenous internship Australian Mining caught up with Leighton intern Jesse Vincent to get a first-hand account of a training initiative.

W

A D _ A MF L E MA R _ 1 2 . p d f Pa ge 1 1 7 / 0 2 / 1 2 , 1 2 : 0 5 A new careers program is designed to get more young Indigenous miners on the ground.

hile mining is often lambasted for its commitment to training few of its detractors take time to talk to industry interns like Jesse Vincent.

Working with Leighton Contractors, Vincent is a young mining engineering student who scored a placement through the Indigenous-focused Career Trackers program.

Designed to create internship opportunities culminating in a career for Indigenous students, Career Trackers is expanding its work in the mining industry to capitalise on the skills shortage and demand from students.

For interested students the way the program worked out for Vincent was after a Career Trackers visit to his university campus.

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AM.APR12.PG035.pdf

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CONTRACT MINING, ENGINEERING & SERVICES

As the latest recruit aspects to the work and gave a positive appraisal of “It also gives a great emVincent is juggling uni- there’s always something the industry’s commitment ployment opportunity to Inversity life with practical else you can learn.” to training. digenous Australians.” experience at Leighton, with While he didn’t always “The Indigenous pro“They’re really good the end-game a full time po- have an ambition for mining grams they’ve got in the ideas and should be supsition in the mining indus- Vincent traces his interest mining industry are really ported by all companies.” try. Vincent told Australian in the industry to his child- good. If you choose they can Vincent also said he Mining that while not with- hood. send you to Aboriginal com- would encourage all Indigout its difficulties, mining “There’s a fair bit of munities around Australia enous Australians to get inhad been an exciting indus- influence from when I was and you can have the chance volved with similar employtry to experience first hand. younger and growing up in to work within those areas ment programs if they had “I did 12 weeks on a a mining town,” he said. and help them out.” the chance. mine site last year from No“My father worked in “You also get a differ“I’d definitely recomvember as part of an agree- the mines for 20 years and ent perspective around those mend it,” he said. ment with Career Trackers one of my older brothers isolated areas.”

“From the moment I and Leighton Contractors,” worked in the industry sat down with Career he said. as well.”

“There are different aspects to Trackers to the experiVincent counted the “I didn’t see minence of going over to sheer size of the industry ing so much as a career the work, there’s always Perth with Leighton and diversity of skills re- avenue till I started to something else you can learn.” Contractors, it’s all quired as one of the best do a bit of work in the been positive. parts of getting a practical industry and gain a bit more Vincent said these indus“It’s been a really good start in mining. knowledge.” try employment initiatives, experience for me and it’s a “With mining engineerHaving just come back particularly for Indigenous great opportunity if people ing there’s a lot of differ- from working at Newcrest’s Australians, were of benefit can get involved.” ent aspects of the industry underground Telfer gold both to mining companies Vincent was hard you need to be exposed to mine in the Pilbara Vincent and the public in general. pressed to recount any bad and I like that diversity,” he told Australian Mining the “I think they should be experiences from his work said. variety of work sites on of- valued,” he said. with Leighton and Career “You need to know fer around Australia was “Indigenous heritage is Trackers, but marked the about drill and blast, trucks also one of the most appeal- Australia’s cultural back- fly-in fly-out lifestyle at and transport, maintenance, ing aspects of the work. ground and these programs Telfer as one of the biggest and lots more.”

As an Indigenous Aus- are one way of acknowledg- challenges, with the flights A“That’s D _ A Mone G R thing E A P IR like _ 1 2 tralian . p d f taking P a g epart1 in1 4a / 3ing / that,” 1 2 , Vincent 1 2 : 0explained 9 P M across the country creatting about it, there’re different training initiative, Vincent to Australian Mining. a unique problem.

www.miningaustralia.com.au

Living and studying in New South Wales, the potential of working at Telfer meant racking up some serious frequent flyer points.

But part of the Career Trackers package meant Vincent was able to stay with friends in Perth and cut down on the distance, though not removing it completely.

Vincent has a number of practical placements left, not always at Telfer but always with Leighton, until he finishes his degree.

And if it all works out he should land himself a mining job with Leighton after graduating.

“I’d like to stay as an employee with Leighton Contractors and develop my career with them,” he told Australian Mining.

“I’d also like to go back to Career Trackers after the cadetship as an alumnus and talk to students coming through their degrees.”

“I’d like to share this experience with them and keep building that community and program.”

AustralianMining

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AM.APR12.PG036.pdf

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CONTRACT MINING, ENGINEERING & SERVICES

Human riches at Prominent Hill People have been one of the key focuses for a contractor at OZ Mineral’s Prominent Hill mine.

A

commitment to workforce diversity and maximising the number of local employees have been central to Thiess being awarded a $1 billion extension to its contract to operate OZ Minerals’ Prominent Hill copper and gold mine.

The contract award ensures that Thiess will continue working at OZ Minerals’ mine until 2018.

According to the company it is already in planning, training and implementation of the project’s rampup, which requires a substantial expansion of Thiess’ existing operation, peaking at five fleets of large mining equipment.

The expansion requires Thiess to employ an additional 170 people, which is well underway, with the total open pit mining workforce expected to peak at 550 people.

Amid the turbulence surrounding fly-in-fly-out and drive-in-drive-out, Prominent Hill is emerging as an example of how to strike the right employment balance.

Located in northern South Australia, the mine is as remote as they come.

The iconic outback hamlet of Coober Pedy is two hours drive way, but that hasn’t stopped the mining contractor Thiess, with the backing of OZ Minerals, achieving remarkable goals in local employment.

The number one achievement so far is in local Indigenous employment, with this group now representing fifteen per cent of Prominent Hill’s workforce. “About nine months ago when we started discussing the rampup, indigenous people made up around four per cent of our workforce, so to get to fifteen percent in that time is exciting and our intention is to keep it there or improve on it,” Michael Wright, Thiess’ executive general 36

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Gender diversity has been a focus at the mine, with women making up 15 per cent of the workforce.

manager of Australian mining said.

This push for diversity has also focused on gender, with women also now making up fifteen per cent of the team at Prominent Hill.

The remote nature of the project means a large proportion of fly-in-fly-out in the workforce is inevitable, but according to Thiess it

has tried to remain ‘local’.

“Ninety per cent of our FIFO workforce is from South Australia to ensure we keep the economic benefit in that state,” Wright explained.

“We have a significant number of people driving in and out from Coober Pedy, as well as some local indigenous people fly in by light

The contractor will operate the mine until 2018.

aircraft from a nearby remote community.

“At Thiess, our goal is to have the workforce as local as it can be and one of our key strategies to achieving that is diversity.”

It has also reportedly set gender diversity targets for the entire Australian mining division.

“We aspire to have twenty per cent women and significantly increase our Indigenous employment over the next three years,” Wright said.

Members of the Federal Parliamentary committee examining the impacts of FIFO/DIDO were genuinely surprised and impressed when Michael Wright presented the figures on Prominent Hill at a recent hearing, the contractor stated.

Speaking in support of the Thiess submission to the inquiry, Michael Wright stressed the link between workforce diversity and maximising local employment. Beyond Prominent

Hill, he gave examples of other diversity campaigns such as the Women in Hard Hats Program which has employed women into traditional mining roles, such as haul truck operators in Queensland’s Bowen Basin.

He also outlined an Indigenous Pre-apprenticeship Training Program which is entering its third year.

Wright stressed that these are the areas on which Thiess will continue to focus rather than long term community housing initiatives which are better suited to the interests mine owners.

“As a contractor, we’ll do all we can to employ locally, then we’ll go to regional catchments and only as a last resort will we fly people in from distant centres,” Wright stated.

“Ideally we would have 100 per cent local people who can live at home every night but that’s unrealistic.

“We are seeing an increasing migration of the skilled engineering workforce to big cities. Mine owners are flying people in and out of major centres and we’re under pressure to do the same.

Aside from consequences for local communities, other major issues with FIFO/DIDO are the impact on families and problems with fatigue.

Wright says Thiess is currently focused on designing family-friendly shifts that also address fatigue.

“We’re planning to become leaders in the development of our people, and at projects this clearly includes a focus on rosters.”

Thiess’ $2.8 billion mining business in Australia and overseas provides contract services for mine owners, including mine development and approvals, mine planning, infrastructure design and construction, technical services, plant procurement and maintenance. www.miningaustralia.com.au

AD_AMHEN2APR_12.pdf

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AM.APR12.PG038.pdf

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26/03/12,

3:28

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CONTRACT MINING, ENGINEERING & SERVICES

Mining in the pits Scott McEwing discusses the economic and environmental case for in-pit crushing.

C

an the greater use of in-pit crushing and conveying (IPCC) systems by Australian mining companies reduce their exposure to the skills shortage, equipment and tyre availability problems, diesel fuel requirements and help companies with their carbon credits?

According to SRK Consulting’s Scott McEwing it can.

“While an IPCC requires an investment, in the longterm it helps mining companies reduce their capital and operating costs,” he explained.

“Your traditional truck and shovel mining operation is equipment intensive and has a heavy reliance on diesel fuel.

“You have loaded trucks travelling A D _ Aup M Kand E Mout A Pof R the _ 1 2 mine 24 hours a day, so you

need a fleet of trucks and a roster of drivers. You’re burning up huge amounts of diesel and wearing tyres, at a time when there is a worldwide shortage of them,” McEwing stated.

“The IPCC option provides a significant saving in operating costs because you are using less trucks, less fuel and less manpower.

And to me there’s no doubt that reducing carbon emissions is also becoming a key driver to having an IPCC.” McEwing added that IPCC systems can be used for either ore or waste, or in specific instances, both.

He explained that in an ore focused IPCC installation the primary ore crusher in front of the processing plant is relocated into the operating mine. The crushed . pdf

Pa ge 1 1 9 / 0 3 / 1 2 , 1 1 : 1 0 AM Continued on page 40 A surface miner at Fortescue was considered unusual, like IPCC, but has paid off for the miner.

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AD_AMWIRFEB_12.pdf

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NEWS CONTRACT MINING, ENGINEERING & SERVICES

Continued from page 38

ore is then carried out of the mine by a conveyor back to the processing plant.

As the crusher was required regardless, the capital cost is largely driven by the conveyor system.

“Offsetting the capital cost of the conveyor is the reduction in the fleet truck size, as less trucks are required to transport the ore.”

McEwing, who is a mining engineer and consultant at SRK, said that mining companies often overlook the use of an IPCC because of a desire to get a rapid return on their investment.

“As a result of the boom and bust cycle in Australia’s mining industry, it has traditionally had a truck IPCC reduces a miner’s exposure to the skills shortage, McEwing explained. and shovel mining fleet, which has a high emphasis on short-term flexibility risk, early payback on their right amount of initial in- for the long term. The benas opposed to looking at a investment and to make hay vestment into a project so efit is that once they go into project’s long term optimi- while the sun shines. that it is more financially production, their operating sation.

He added that “one of stable. costs are low, so they can “A lot of mining com- the problems with the Aus“If you go to other keep mining, even when panies put in place a tra- tralian mining industry is parts of the world, they’re commodity prices drop. The ditional invest IPCC concept has been well A D _ Aoperation M WA D A because P R _ 1 2 that . p dfor f too P along g e there 1 1has 5 / 3not / 1afraid 2 , to 8 :heavily 4 6 A M they are looking for low been a reluctance to put the in the right infrastructure proven across the globe by

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many major mining companies.”

McEwing said that IPCC’s can be used to mine a range of commodities and are best suited to deep, longlife mines.

He believes that during the evaluation stage of a project, engineers should compare the costs and weigh up the benefits of an IPCC system to a traditional mining operation.

“Studies have demonstrated that operating costs can be significantly reduced which shows that if you’re prepared to outlay that extra money upfront, there is the potential for large savings in the long run.

“Back in the early days of FMG, we recommended the use of a surface miner. It was new technology for the iron ore industry, everyone else was still focused on drill and blast, truck and shovel.

It was leading edge, Fortescue implemented it and it worked. The IPCC system isn’t leading edge, it’s well established and should be considered.”

www.miningaustralia.com.au

AM.APR12.PG041.pdf

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20/03/12,

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CONTRACT MINING, ENGINEERING & SERVICES NEWS

Training up to drill down Automated drill rigs are fighting the skills shortage.

M

ining vehicles and equipment require trained miners to operate them.

Despite what many outside the industry seem to think, you can’t just walk up to a truck or a drill rig on the first day and run it like a pro.

As the skills shortage bites, there are just fewer and fewer trained and experience people on mines around the world.

One contractor has found a way to overcome this skills gap on site by utilising semi-autonomous drill rigs on its sites.

Speaking to Barminco’s manager for diamond drilling, David Miitel, he told Australian Mining that it has The APC technology allowed inexperienced drillers to ‘get dry’ in a much shorter time, Miitel says. been employing a number of Atlas Copco mobile carrier “What used to take mechanical control and set These rigs are also rigs (MCR) with automated around two weeks to learn, parameters, and is easier for known for better handling pilot control (APC) technol- on the automated system younger drillers to use due in poor ground conditions ogy, and has seen positive now only takes three to four to its touch screen. compared to similar rigs. results. days to train workers how Integrated rod handling Miitel went on to say Mittel explained that the to operate, and within a systems as well as a func- that it also has a control setechnology has allowed it to couple of weeks these guys tion for machine fault find- quence that must be entered train and familiarise inexpe- are as good as anyone – it ing, which can download when operating, which if rienced drillers quicker than really reduces the time it the rig’s service information entered incorrectly will stop ever before. takes to get these guys dry,” and any operating issues the rig.

“We have been putting Miitel said. and send it to maintenance “It takes over when more inexperienced drillers The machine report- for monitoring, also come as drilling so that drillers can’t on these rigs, as it helps to edly drills a straighter, more part of the new automated push it on further and poA D _ A MC P S F E B _ 1 2 . p d f Pa ge 1 3 0 / 0 1 / 1 2 , 1 1 : 0 3 AM train them at a faster pace. consistent hole due to its system. tentially go wrong.”

He said that when the rigs “were first brought into the field we tested it by running it against a pilot control rig.

“The more experienced drillers operated it first and had average results, but then we put the inexperienced drillers on the new rigs and within three days they were operating as well as the more experienced drillers, in three months they recorded a ten per cent increase in production compared to previously,” Miitel told Australian Mining.

By using the new technology on the MCR APCs, the contractor has “had success at some of our mines with much straighter holes, and been able to extend on holes that other contractors have found difficult to do due to poor ground”.

From here, Miitel says Barminco is looking to trial unattended drilling so that drilling can occur while blasting is going on nearby.

“These advantages are not far away,” he added.

However, it still needs to develop a safety system so that if it hits a pre-programmed barrier the rig automatically shuts down.

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April 2012

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AM.APR12.PG042.pdf

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BILLIONAIRE BATTLE

One last SWAN song Wayne Swan’s savage attack on mining leaders didn’t go down well in the industry.

Image courtesy of ABC

L

ast month Treasurer Wayne Swan launched an all-out attack on the mining industry, accusing its most high profile figures of leading a movement of “ruthless individualism and unquestioning materialism”.

His three targets, Gina Rinehart, Clive Palmer, and Andrew Forrest, were accused of selling out democracy, and using funds generated by the mining boom to distort political debate.

Swan said the mining boom had introduced an ugly new force to Australia, where a small group of magnates “use their considerable wealth to oppose good public policy and economic reforms designed to benefit the majority.

“The combination of industry deep pockets, conservative political support, biased editorial policy and shock-jock ranting has been mobilised in an attempt to protect vested interest,” he said.

Although hardly mentioned in the tirade, what Swan was complaining about was the mining industry’s opposition to the mining tax and carbon tax.

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policies have drawn harsh criticism from the industry, but have regardless made their way into law.

In what Swan claimed as proof he was right, despite winning a majority vote both the carbon tax and mining tax are subject to High Court battles led by Andrew Forrest and Clive Palmer.

The problem

The crux of Swan’s lengthy critique concerned what he saw as an inherent contradiction in mining industry rhetoric. What the industry claimed as lobbying in the best interests of the Australian people, he saw as a selfinterested argument focused on personal profit first and nationwide benefit last.

“What characterises the vested interests that I’m concerned about is how they misrepresent their self-interest as the national interest,” he said.

Swan also blamed news media for contributing to the problem.

“Crucially, much of our media seems more and more inclined to accept that growing influence.”

Swan said the media was not only to blame for uncriti-

cal coverage of mining, but was also under risk of being bought-out by mining interests following Rinehart’s foray into Fairfax Media.

He pointed to comments

by Rinehart’s “friend and fellow media owner” John Singleton to prove his point.

Swan said Singleton had previously “let the cat out of the bag” when he spoke publicly on how the resources industry could attack governments because media figures like Andrew Bolt and Alan Jones were ‘employed by us’.

“This poison has infected our politics and is seeping into our economy,” Swan said.

“Though these vested interests have not yet prevailed, every day their demands get louder.”

The answer

Unsurprisingly the mining industry, and in particular Forrest and Palmer, did not take kindly to the critique.

Of the three Palmer was most eager to refute Swan publicly.

“The Treasurer attacks me as being anti-democratic but he hardly knows me, or who I am,” he wrote in

an opinion piece following Swan’s essay.

“Other than a fiveminute encounter at breakfast one morning, he has never met me.”

Palmer also pointed to his own philanthropy, which he claimed had this year already reached levels “more than a hundred times the Treasurer’s salary”.

Palmer questioned how much Swan had done, beyond criticism of the rich in the media, for Australians in need.

Compared to Palmer, Forrest kept a lower profile following Swan’s criticism, with Fortescue Metals Group instead coming to the magnate’s defence.

Immediately after the attack FMG took out full page advertisements in newspapers and accused the Treasurer of engaging in “class warfare”.

FMG dismissed Swan’s condemnation as “irrational” and “unfounded”, and said Forrest had built a company from nothing and donated generously, two qualities that epitomised the Australian ‘fair go’.

While Rinehart most likely shared the opinions of her peers the public was

again left guessing over her reaction.

The richest, and arguably most powerful of the figures attacked in Swan’s essay, Rinehart kept the lowest profile, but will undoubtedly have her opinions aired as time goes on.

Ultimately the furore eventuated without surprises, and served only as a mild distraction to the debate over the carbon tax and mining tax.

But after the dust settled both parties refused to back down, and Swan left the magnates, politicians, media, and public with an ultimatum. The choice, according to the Treasurer, is between middle class Australia or the richest industry heavyweights.

Between “standing up for workers or kneeling down at the feet of the Gina Rineharts and the Clive Palmers,” says Swan.

“It’s simply the best way to keep growing Australia’s economic pie so ultimately we all end up better off.”

Whether Swan’s right or not only time will tell.

Like most battles with red-hot rhetoric the answer will most likely lie somewhere in between. www.miningaustralia.com.au

AD_AMHITOCT_11.pdf

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Coastal coal BATTLE An ongoing dispute over a Central Coast coal mine is unlikely to be resolved soon, Cole Latimer reports.

A

long running battle over a proposed underground coal mine on the NSW Central Coast has reignited.

The Wallarah 2 Coal project is a contentious underground mine located in the Wyong area (see Australian Mining April 2010).

For a number of years the mine, and its Korean backers KoRes, have seen serious opposition to the proposed project.

It sought approvals from the state government but was rejected in March last year due to a number of ‘unresolved concerns’ regarding its impact on the water catchment, subsidence, and ecological impacts.

According to the Department of Planning “the project was not considered consistent with the principles of ecologically sustaina-

ble development”. However Despite this approval rejection, Wallarah Coal still sought to develop the coal deposits under the coastal region.

The mine soon came back on the agenda for the local community as KoRes again sought approval from a new state government following a Liberal ousting of the previous Labor government.

As Wallarah and their Korean joint venture partners sought to revive the project the miner quickly came to loggerheads with the local council and environmental groups once more.

The main concern remains the mine’s potential impact on water, with both sides giving a different story as to what the mine will do.

Speaking to Wallarah’s general manager Kerry Heywood, he told Australian

Mining that worries over its impact on water were misplaced.

“Public concern has been on our effect on the water catchment, but the project and planning commission said in its report that there will be a minimal impact to the region’s water, but opponents to the mine keep saying it will have a devastating impact.

“This isn’t the case … we don’t operate under water, our operations are only under a very small area of the catchment and won’t have a serious impact on the water supply.

“Even if there is an impact, it is only likely to be between five and 14 per cent,” Heywood added.

“A minimal amount.”

However, this minimal amount is raising serious concerns from the council.

The council is opposing the mine due to its potential impact on the region’s water supply.

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Wyong Shire mayor Bob Graham told Australian Mining that “this mine is operating under the catchment for the whole area, which provides water for around 300 000 residents.

“KoRes tell us that the mine won’t affect the region’s water, but I don’t believe it. They claim it but they have never been able to prove it to me.”

A community group fighting against the mine, the Australian Coal Alliance (ACA), stated previously that “no matter what the company says or does it is clear that there will be an impact and they can’t escape from that”.

Graham went on to stress that even though he is the patron of the ACA he is not anti mining at all; he is “just against this mine in particular and the risk it

poses to the region’s water supply”.

Heywood stated that the Wallarah is working to dispel this idea, adding that the potential upsides such as jobs and development for the area outweigh the “benign impacts of the mine.

“This mine was designed for water in the area.”

He added that the initial project development rejection had nothing to do with water, and more to do with a government making a decision as it went into caretaker mode.

With the two unable to agree, relations have slowly decayed between the miner and the Wyong Shire Council. Most recently claims of one party ignoring the other and being ‘uncommunicative’ have emerged.

Continued on page 48

Wallarah’s tenements run under a wide swathe of Wyong Shire. www.miningaustralia.com.au

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Continued from page 46

On local ABC radio, Graham stated that the only communication the council has had from the miner was via the media.

Yet according to the miner, the council had not responded to a number of offers to meet and discuss the latest developments.

“We met with the GM and planning director in November and asked what more needed to be done,” Heywood told Australian Mining.

“We came back later, in January, and received no response at all.”

Heywood added that he only heard the council wanted a full briefing from the company after hearing it on the radio.

However this was refuted by the council in no uncertain terms.

“That is untrue,” Graham explained to Australian Mining.

“They claimed that they couldn’t aP a L C M 1 email 2 5 8 .me…it’s pdf poor excuse. We met with

The Yarramalong Valley, under which Wallarah Coal plans to mine. Photo courtesy of Lisa Levine.

them and they brought no new news on the project.”

Federal member for the local area Craig Thomson, who has recently come under the spotlight in regards to credit card usage during his time in the HSU, also came out against the mine.

Thomson called on the State to/ ban g e Government 1 1 3 / 0 3 1 2all , mining in the region.

“Otherwise we will see time and money wasted because the community will again have to fight this coal mine plan and again prove that our water supply must be protected,” he said.

While the two parties remain divided over the mine’s potential impact, both have 2claimed : 1 7 toPhave M had support from current NSW premier

Barry O’Farrell; support which has since disappeared.

Speaking to Graham, he complained that “when Barry O’Farrell was running for premier he promised to stop this coal mine, but now they’ve gone against this pledge for the money that will come from its operation”. Earlier, Heywood stated “the O’Farrell Gov-

ernment’s commitment to an independent process free from political interference is entirely consistent with safeguarding the environment and water supply”.

However since these comments new environmental requirements enacted by the NSW Department of Planning and Infrastructure are more stringent than those previously in place.

Even the locals are divided.

Calls to Australian Mining from unnamed Wyong Shire locals have expressed anger at the opposition to the mine, in particular to the loss of potential jobs.

With the gulf seemingly widening between the two parties, the issue is unlikely to be resolved soon.

All that is clear is that Wallarah will continue to spruik its operations and “spread the word to everyone so we can dispel alarm”, while community groups and politicians continue to fight against a mine they believe may damage the local region beyond repair.

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Making a move in the Hunter M&E NSW, an institution in Muswellbrook, is making a move to the city.

C

oal has been king for a long time in the Hunter Valley and in such a well established market it’s hard to get a foot in the door.

One event, which has been held for more than twenty years, has been helping highlight new players and the different services available to the industry in the region – M&E NSW. Since its first exhibition back in 1991 it was held in Muswellbrook every four years. However, for the first time the event has made a major change. With increased demand and continuing growth driving interest in the region, the exhibition organiser, Reed Mining Events, has been forced to move it to the nearby city of Newcastle.

“Since 1991, previous editions of M&E NSW have been held every four years in the Upper Hunter, with the last one in Muswellbrook in 2009,” Reed Mining Events exhibition director Paul Baker explained.

“However, this year we have decided to move it to Newcastle for a number of reasons.

“Newcastle is recognised as the industry hub for the NSW Hunter Coalfields, with a large proportion of the sector’s mining engineering services and support based in and around the city,” he said.

In addition, a significant portion of the workforce and mine management are based around Newcastle and the surrounding region, including Lake Macquarie and Port Stephens – so the Newcastle Entertainment Centre is a central location to attract key visitors. This wasn’t a spur of the moment move either, according to Baker, and involved serious thought.

“Before deciding on the move, we carried out an in-depth research project – including surveying our M&E NSW exhibitors and visitors, who clearly indicated that their preference was for the event to be based in Newcastle,” he said.

The event itself, held later this year in August, comes as the demand for coal from developing industries in China and India is outstripping production rates, as Hunter Valley operations try to keep the supply flowing while at the same time attempting to fill the shortfall caused by the Queensland wet seasons disrupting output from the Bowen Bawww.miningaustralia.com.au

The event has moved to the the state’s coal port capital Newcastle.

sin and surrounding regions. This need for more coal is seeing an increase in demand for equipment, services, and contractors.

“A number of major coal projects have recently been approved by the NSW government, and there is a further 13 projects under assessment. At the same time we have had the recent expansion of the Port of Newcastle to allow increased tonnages to be shipped.

“As a result of all these factors, we have a coal industry in NSW which is growing quickly and has strong demand for the latest products and services for both surface and underground mining – which will all be on display at M&E NSW,” Baker said. However the focus is not just on suppliers. Baker explained that the exhibition will hold similar theme days to those at its most recent AIMEX event.

“At Reed Mining Events during 2011, we introduced programs aimed at attracting more women, ‘frontliners’ – operators, maintenance crews, supervisors and foremen – and the wider mining community.

“These proved very successful, and we’ll be building on them for M&E NSW 2012 – with further details to be announced in the near future,” he said.

“We will also be incorporating a recruitment element through the

M&E who A D _NSW A M LCareers A N M ACentre R _ 1 2as. an p d f people Pa g e are 1 looking 1 7 / 0at2careers / 1 2 ,in 1 2 : 3 6 integral part of the event, aimed at the mining industry.”

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HUNTER VALLEY SPOTLIGHT

New home at Heatherbrae Sandvik has made a significant new play in the Hunter Valley.

I

n late March Sandvik Mining opened its $50 million Hunter Valley Site facility for the manufacture, assembly and support of surface and underground coal equipment.

The site covers over 16 hectares, with a four hectare expansion area for the future, and is one of Sandvik’s largest manufacturing, assembly, and distribution centres in the world.

In launching the project the company said the manufacturing of Australian designed, developed, and built products would lay at the heart of the new centre.

As more and more manufacturers, including mining manufacturers, move overseas, the Australian-based business of the Hunter Valley site will be one of the centre’s key offerings to businesses and the public.

The centre also offers a strong endorsement to claims by the Minerals Council last month that some services sectors were growing as fast, if not faster, than the mining industry itself.

With the strong Australian dollar and declining market for Australian manufacturing, the Sandvik project marks the benefits to be had from tapping into the mining boom.

The Heatherbrae site will act to integrate a number of Sandvik’s NSW facilities to a single operation, and will employ around 600 workers and contractors.

Added expansions could boost that number to around 750 employees/contractors.

As an integrated site, the Hunter Valley operation will replace six Sandvik facilities at Tomago, Mayfield, Caves Beach, Redhead, and two at Hexham.

The site’s total turnover is expected to reach $200300 million a year, including manufacturing, repairs and refurbishments, and spare parts. A large chunk of these 50

April 2012

AustralianMining

Sandvik said the company will be there from the moment coal is dug until it is loaded on the ship.

earnings, at around $40 million, will be accounted for by the manufacture of Sandvik’s LS range of load, haul, dump vehicles.

As well as the company’s manufacturing staple, the new site will include new facilities to increase energy efficiency and reduce carbon footprint.

Among the environmental improvements will be a compressor system with a heat recovery module that allows waste energy to be used to heat water.

Sanvik said an estimated 420 tonnes of carbon would be saved per annum with the initiative. A 132kW solar panel system, which the company claims is the largest in NSW, will also power the site’s offices, saving 185 tonnes of carbon emissions.

Sanvik Mining AustraliaPacific president Rowan Melrose said in a statement the company had decided to base the new site in the Hunter Valley because of the region’s growing importance in the industry. He said as one of the two largest coal export regions in Australia the Hunter Valley was a strate-

gically important region to Sandvik. Melrose said the region’s new manufacturing facility would be part of the exciting growth in the area.

“We remain very positive about the near-term and long-term future of the coal industry in Australia – and in particular the Hunter region,” he said.

“To continue supporting this growth, we have to continue to invest in facilities

that will not only support our existing markets, but will also have the capacity and capability to support the growing demand for both our products and our services.

“This site and our investment in it, is testament to our confidence and belief that the region and its people will continue to play a significant role in Sandvik’s future in Australia.”

A large chunk of manufacturing is focused on its LHDs.

Melrose said as a key manufacturer of a wide array of mining equipment, Sandvik made an important contribution to the businesses of many Hunter Valley mines.

He said from the new site the company would be able to strengthen its position in the market and be able to better supply services and support to its customers.

“Our role in the coal supply chain in the Newcastle/Hunter region is very significant; we are involved from literally the ‘point of the pick’ on the underground equipment that excavates the coal right through to the very last point of contact as the final product is loaded onto a ship for Australia’s export markets,” he said.

“From this new facility, not only do we manufacture and supply all these products, we also offer service and support to help ensure our products continue operating effectively and efficiently, and then we repair and overhaul them.”

• Catch our May issue for a pictoral follow up. www.miningaustralia.com.au

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Carving up the country The development of a NSW land use strategy is not even reaching a middle ground.

N

ew South Wales is a battlefield as miners and farmers struggle to not butt heads while the government fails in its attempts at mediation.

The issue of strategic land use – who uses the land and for what – has been a contentious one for some time.

The main worry is that prime agricultural land, such as that in the Hunter Valley and Liverpool Floodplains, may be used for mining and ruined by open cut operations, which would essentially negate the possibility of the land being used for farming again any time soon.

It comes as the Hunter Valley is predicted to increase production from 135 million tonnes in 2011 to 163 million tonnes this year, and to 216 million tonnes in 2015.

Representatives from mining and farming groups, the NSW Minerals Council (NSWMC) and the NSW Farmers’ Association respectively, have gathered on a number of occasions tryAand A D _ Ato ML N A get P Rthe _ 1land 2 . use pd balance right.

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Many coal deposits are found under what is considered ‘prime agricultural land’.

In late October last year, former NSWMC chief Nikki Williams explained that the Government must find an appropriate balance between different industries and developf ments, P a gwith e no 1 one 1 4 group / 3 / favoured 1 2 , 9 : over any other and it must continue

consulting widely as it develops its land use plans.

“It’s a difficult job, but one it must get right if it is to ensure a strong future for our communities and 0 0 our A industries.

M “These are complex issues and

important to the future of NSW. That’s why the community, government, business and industries need a roadmap to help minimise land use conflicts and to maximise the capacity of our regional communities and economies.”

Williams pointed to Queensland policy development on the issue as an example of finding the middle ground.

“The three areas of rehabilitation, air quality and community engagement, are ones where we need to keep improving,” she added.

While the state government dithered on a response to land use issues and tried to develop a strategic land use policy (which was branded as long overdue), local councils took it upon themselves to take the first steps.

Muswellbrook Council released its first draft policy back in September 2011.

The initial policy looked at how to balance coal mining’s contribution, acknowledge its primary po-

www.miningaustralia.com.au

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sition, while also ensure the health of residents and the protection of aquifers, agricultural land, and the thoroughbred industry.

It also highlighted instances where it would impede or reject mining, such as farming, urban development, and for eco-tourism.

After much planning and back and forth, the state government released a strategic land use policy draft, which promptly drew criticism from both mining and agricultural concerns.

According to the NSW minister for planning and infrastructure Brad Hazzard, the regional land use policy released last month for the Upper Hunter will “ensure prime agricultural land and critical industry clusters like the thoroughbred and wine industries are safeguarded.

“We’re also giving improved certainty for the State’s important resources industry by establishing clear rules and a transparent assessment process.”

According to the draft, mining and coal seam gas proposals within two kilometers of ‘strategic agricultural land’ will now need to go through a new ‘Gateway’ process, which involve A D will _ AM M A T an F Eexternal B _ 1 2scien. pd tific panel which has the power to

Underground mining has raised concerns over possible subsidence of farming land.

veto or pass it through to the devel- seam gas exploration and operations. opment application state.

“Nowhere is sacred, nowhere is Fiona Simson, head of the NSW safe,’’ she said.

Farmers’ Association, was quick to “The government is clearly on slam the draft. the coal seam gas bandwagon.’’

She stated that the government The NSW Minerals Council also had its concerns over f P abroken g e 1its promise 3 1 / 0 1to/ protect 1 2 , 4 joined : 5 0 in,P voicing M part of the state from mining and coal increased regulation.

“We’re concerned that this is imposing more regulation and in some cases duplicating existing processes for what is already one of the most heavily regulated industries in NSW,” the current CEO of the NSWMC, Stephen Galilee, said.

“The minerals industry takes its obligations to the environment and the community very seriously and supports a balanced approach to the development of the State’s resources.

“We’ve always said that if a project doesn’t stack up against the science it shouldn’t go ahead and that remains our position.

“However, the new ‘Gateway’ assessment appears to duplicate processes already in place. It includes the addition of yet another expert panel to decide early in the process whether a proposal can proceed to a second stage with advice from the Federal Government’s Independent Expert Panel,” he said.

“It’s extremely concerning that this new State-based panel would decide whether a mining proposal can be developed without having actually seen a full mining proposal.”

This is a slow burning issue, and one which does not have a quick fix.

Only time will tell if it gets ‘solved’.

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HUNTER VALLEY SPOTLIGHT

Risky business With protests and anti-mining movements building in the Hunter Valley, is the region as mining friendly as it used to be? Andrew Duffy reports

T

he last six to 12 months have seen a rapid buildup of protests and anti-mining sentiment in the Hunter Valley.

The most significant community opposition has been directed at the coal seam gas industry, but protests have now leveraged this sentiment to foster discontent towards other industries.

A region full of new and existing development, mining in the Hunter Valley has always been a focus for communities, and has always fielded criticism from locals.

But anti-mining voices in the Hunter Valley have now reached levels higher than in previous years.

For a region once considered an industry safe house and hotspot for new development, is investment in the Hunter Valley now riskier than ever?

The voices of anti-mining groups have become louder than ever before.

Look around

best way to know if mining in the Brown said global demand for Foster Stockbroking analyst Craig Hunter Valley was safe was to look coal,

by Asia, was A D _ A MMO D MA R _ 1 2 . p d f Pa ge 1 1 7 / 0 2 / 1 2 , 1 2 : 0driven 2 P primarily M Brown told Australian Mining the at the industry as a whole. rocketing upwards, and a coal-rich

region like the Hunter Valley was bound to reap the benefits.

“I think it’s pretty safe given the fact that the coal mining industry has been the major source of growth for that region over the last 30 to 40 years,” he said.

He said the region and its companies had the experience and credentials to ensure the industry wasn’t going anywhere.

“There’re numerous amounts of coal companies that are already in production there and in the longer term it appears like a number of new projects will come online,” he said.

Brown said companies like Coal Works, as well as the on-again-offagain Whitehaven-Aston merger showed an ongoing business interest in the Hunter Valley.

“We’ve got all these mining companies within the region that are already existing operators and producers,” he said. adding that “the majority of the experience is there

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HUNTER VALLEY SPOTLIGHT

and that whole region has benefitted substantially from the mining industry.”

Not safe

But Brown did not refute the threat of community opposition to mining in the Hunter Valley, nor did deny the risk could be rising.

He said in part this risk would be mitigated as more companies went underground in the future.

“In the longer term some of these coal companies will be going underground so I think that’ll alleviate a fair amount of the open cut environmental issues people have,” he said.

But Brown said underground mining had plenty of its own environmental risks and problems, and would prove no silver bullet to community opposition.

He said as demands for cleaner and more environmentally friendly mines became more widespread some companies would feel the pinch.

But with coal demand on the rise Brown said these closures would be more than offset by new projects coming online.

“I’ve got not doubt that there are some mines that will close down,” he said.

“An Integra mining site has already been put up for sale because it had too high methane levels.

“There will be older mines that will eventually close down or be too expensive to run but there are new ones coming to replace them.”

Brown said the time to win environmental approvals may also get longer for some companies, particularly in explorer/developer scenarios.

But he said the history of mining in the Hunter Valley was one of responsible activity from professional operators, and opposition to the industry would be the action of a “minority” as that trend continued.

In Foster Stockbroking’s view coal seam gas in the Hunter Valley remains a much riskier prospect than coal mining.

“I think coal seam gas might be a bit more of an issue because they’re talking about fracking and its impact on water reservoirs,” Brown said.

“In terms of mining coal I don’t think this sort of opposition is a high risk scenario,” he said.

Politics

A force stronger than community activism yet closely linked to it, the politics of mining opposition looms www.miningaustralia.com.au

For the majority of those in the region, mining has been beneficial, Foster Stockbroking’s Craig Brown explained.

as a more serious threat than grassroots protests.

And the Hunter Valley, at the cross section of anti-coal seam gas and coal sentiments, and strong non-mining industries like wine and tourism, is an area where such politics can gain traction.

Brown told Australian Mining he had no doubt political movements would attempt to find a foot hole on anti-mining movements and attempt to widen them.

But he said a force much stronger than local politics, and potent enough to drive favourable treatment on the State and Federal level, global resources demand would continue to be the main determinant in the Hunter Valley’s industry.

“Political agendas will definitely arise but coal supplies the majority of the world’s energy source and there’s a real need for it,” he said.

“I don’t think minority movements are going to stop projects from getting up and running.”

And Brown said a likely change in the Federal Government would also tip the scales in the industry’s favour.

From the grassroots level political opposition to the coal industry looks to have gained little practical power.

While there’s no doubt environmental and community concern has been on the rise, the region’s current local governance reflects a pro-mining sentiment.

Singleton mayor Sue Moore, a community leader in one of the Hunter Valley’s busiest mining regions, told Australian Mining antimining activism was not a strong movement in the region’s local government.

However like all major issues, Moore said a balance had to be

struck between mining and environmental interests.

“There has to be a balance for people that live in the area and work in the coal mines as well as the concerns of groups such as the Greens,” she said.

Moore also said mining companies “could pick up their game” with their attention to the environment.

“As I understand it these companiesA are within D _ working A MP A U A P Rtheir _ 1 2condi. pd tions of consent,” she said.

“But I think the community would like to see an improvement in some areas, particularly in rehabilitation of mined areas.”

From both community leaders and business analysts the expectation is that coal mining will continue to be a well-valued and important part of the Hunter Valley’s future.

While community opposition, usually based on legitimate grounds and concerns, will never go away, it rhetoric f seems P a unlikely g e 1 the 2 3 / 0 3 /of1 some 2 , 1 : 1 2 protestors will ever eventuate.

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UNDERGROUND MINING

Aiding

U

nderground mines are a hazardous environment, no two ways about it.

Which has made communication while working underground difficult; especially in coal mines.

In environments such as these, the dangers of spontaneous ignition are increased by the use of unsafe communication and computing devices.

In the last three years alone ignitions at Xstrata’s Blakefield coal mine and the Pike River coal mine have demonstrated just how deadly these events can be if not safely handled, as the difference between the Blakefield and Pike River mine disasters show.

The signals emitted from commnications equipment has the potential to ignite the air, particularly at gassy or dusty coal mines, and you can’t take chances when it comes to worker safety.

But this doesn’t mean that you have to give up completely on mobile computers and the benefits they can provide on site, particularly in hazardous environments.

Additionally, sealed and safe computers have an increasingly important role in helping to automate the mine site.

Due to the constant issue of safety and security, as well as regulatory and reporting issues, companies need these more sophisticated systems to monitor and manage their work environments.

According to the ARC Advisory Group’s safety and Critical Control Systems Worldwide Outlook, the safety systems market grew approximately 50 per cent from 2006 to 2010.

Mobile computers are a major part of this growth as they provide the ability for miners to automatically collect and communicate data from remote or hazardous sites.

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UNDERGROUND technology A new technology partnership will make communications and computers safer underground.

However, there is confusion on site regarding regulations and certifications that has led some mines to believe they can not use mobile computers for maintenance, monitoring, data collection and basic communications in hazardous environments such as coal mines or plants where combustible liquids and gases are present.

A large amount of this confusion centres on the terms ‘intrinsically safe’ and ‘non-incendive’ which have very different meanings.

There is also confusion about the regulatory bodies and standards for environmental safety and their various coding designation systems.

So a new partnership between Intermec and ecom instruments (a global manufacturer of intrinsically safe mobile solutions) is set to make the mine a little safer.

The partnership between the two companies will develop a range of innovative and more importantly, ex-

plosion proof, mobile computer products.

“This partnership between Intermec and ecom will provide some significant benefits to the Australian and New Zealand markets, (particularly) in our mining and industrial sectors,” Intermec’s managing director Tony Repaci said.

According to the company, this partnership will use Intermec’s rugged mobile

computer experience and ecom’s capabilities in creating portable intrinsically safe devices for hazardous.

Repaci said that ecom’s technology already has certification for use in explosive environments such as refineries, chemical plants, and mining operations.

He added that the two will focus on addressing the high demand for mobile computing.

Rugged computers are seeing increased usage underground.

“Operational pressures are continually impacting technology buying cycles for hazardous areas as businesses are looking for not only ruggedness and intrinsic safety, but a total mobile solution that enables them to perform in ‘mission-critical’ environments,” ecom instruments’ president Rolf Nied stated.

“We look forward to collaborating with Intermec on technology that provides next generation mobility requirements that better empower mobile workers in hazardous areas,” he said.

VDC Research’s vice president of mobile and wireless, David Krebs, stated that it was a good time for the two companies to come together.

“We continue to see strong demand for specialised mobile computers and mobile solutions certified for use in hazardous environments with explosives atmospheres,” he said. www.miningaustralia.com.au

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UNDERGROUND MINING

From open cut to underground The development of the Ernest Henry mine has added another 12 years onto its life.

X

strata Copper has been operating in North West Queensland for some time.

One of its most recognisable mines (after the Mount Isa mine itself) is the Ernest Henry mine.

Operating as an open cut mine since 1997, the mine has practically become an institution in the Mt Isa/ Cloncurry area.

In 2009, the miner approved a massive investment to transform the open cut pit into an underground mine.

The plan was approved after a series of studies lead to the mine’s ore reserves being revised to 72 million tonnes at a grade of one per cent copper, 0.5 grams per tonne gold and 22 per cent magnetite.

The company said this was a 600 per cent increase on previously published underground reserves.

The move by Xstrata has breathed another 12 years of life into its Ernest Henry Mining operation near Cloncurry, which has now successfully transitioned from open cut last year into an underground mine and is now on track to reach full production levels.

It also signalled the mine becoming the first magnetite producer in Queensland.

Ernest Henry Mining general manager Myles Johnston said 2012 is a year of growth for the operation, which consists of the new underground project, the Mount Margaret Mining project and associated magnetite processing facilities.

Since 1997 Ernest Henry Mining has operated as a successful open cut mine employing around 600 people.

In December 2011 the operation reached another milestone in its $589 million life of mine extension project with open pit completion and the start of initial underground production. “We are protect58

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The Ernest Henry Mine is changing direction, going from an open cut mine into an underground operation.

ing and creating jobs, with 330 jobs created during the construction phase for our underground and magnetite projects and 400 full-time jobs from 2013,” EHM’s Myles Johnston said.

The Ernest Henry open pit mine had reached a final depth of over half a kilometre and was a substantial 1.5 kilometres long and 1.3 kilometres wide. “Now the focus is on completing the underground shaft, which will be sunk to 1,000 metres and we expect it to be commissioned in 2013,” Johnston said.

“Following shaft commissioning, production will ramp up to six million tonnes of ore per annum producing 50,000 tonnes of copper and

70,000 ounces of gold in concentrate.

However in the initial phases of ground work around three million tonnes of ore will be trucked form the mine, generating 25 000 tonnes of copper and 35 000 ounces of gold.

“Since our first cut in February 2008, the underground project has progressed with more than 31 kilometres of total development,” Johnston added.

“We are also on track to bring our Mount Margaret Mining project online in the second half of 2012, which will create an additional 100 full-time jobs. Additionally we have made significant progress in developing detailed plans, finalising

government approvals, and consulting with landowners and key stakeholders.

“The project includes the E1 and Monakoff tenements purchased from Exco Resources in 2011, located eight kilometres east and 21 kilometres south respectively of Ernest Henry Mining.

The Mount Margaret operation has a five year mine life with a combined resource of 52.1 million tonnes grading 0.77 per cent copper and 0.23g/t gold.

“It is expected to produce approximately three to four million tonnes of ore per annum, which will feed straight into Ernest Henry Mining’s concentrator along with ore from the underground operation.

The mine is set to become the first magnetite producer in Queensland.

“The Mount Margaret Mining project increases our production profile, utilises the remaining capacity of our existing concentrator and further strengthens the viability of our operations.

Xstrata sees potential within the local region and resources like the Mount Margaret Mining project could lead to further expansion.

“We see positive exploration potential in the area and further opportunities with juniors and mid-tiers.

The E1 and Monakoff tenements were the first deal we focused on and now we are investigating others,” Mr Johnston said.

Historically, Ernest Henry Mining’s concentrator was a single-ore operation Xstrata explained, but with the underground development is now being reconfigured to enable processing of additional feed sources, including smelter slags and near-waste materials that have grades as low as 0.15 per cent copper.

“Over the next five years the concentrator will produce copper, gold and magnetite from at least six different orebodies, comwww.miningaustralia.com.au

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UNDERGROUND MINING

Cloncurry’s mayor expects the mine to provide job security.

Since the first cut in 2008, the mine has progressed with more than 31 kilometres of development.

prising some 13 different Kruijff The Ernest Henry ore types,” Johnston said.

Mine (EHM) will produce “It has the capacity to about 1.2 million tonnes of produce around 400,000 magnetite concentrate per tonnes per annum of copper- year, which will be used to gold concentrate and 1.2 fuel Asia’s steel industry and million tonnes per annum also used as a washing agent of magnetite concentrate, in domestic coal operations. depending on the grade of Magnetite concentrate the ore. will be stockpiled at EHM “In June 2011 we be- and then transported via came the state’s first magnet- road to a rail load-out faite concentrate exporter with cility near Cloncurry, after the first shipload leaving the which it will be hauled to Port of Townsville bound Townsville. for Asia, creating a new inIt is predicted to credustry for Queensland. ate a number of new jobs According to earlier at the port, de Kruijff saystatements by Xstrata Cop- ing “the receival, storage per North Queensland chief and shipping of magnetite A D _ A MMI N MA R _ 1 2 . p d f Pa ge 1 2 2 / operating officer Steve de concentrate has generated

14 additional operator and maintenance roles within the operations and another two positions within shipping and sales”.

Johnston went on to say that “all together, these developments reaffirm our commitment to the Ernest Henry operation and to the Queensland region and local communities.

“Extending the mine life by an additional 12 years to 2024 will help provide ongoing economic security for the Cloncurry community, to which we are a major contributor.

“We are proud of the 2 / 1 2 , 0 : 0 9 AM contribution1we make to the

www.miningaustralia.com.au

local Cloncurry region and I think our recent announcement of $2.75 million towards the Cloncurry Community Precinct reflects this commitment.

“It also gives people confidence to continue investing in Cloncurry and helps underpin the ongoing economic and social development in the shire.”

This was supported by Cloncurry shire mayor Andrew Daniels stated that the mine’s expansion will provide economic security for the region.

“Ernest Henry Mining is a major contributor to our shire. Extending the mine’s

life by another 12 years has helped to provide job security for many people and will underpin the ongoing economic and social development in the shire,” he said.

However, while there has been increased development in Xstrata’s copper and magnetite operations in the region, it continues to look at phasing out its copper smelting and refining operations in North Queensland, de Kruijff explained that copper smelting and refining operations have been under increasing pressure for a number of years and could not be sustained in the long term.

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UNDERGROUND MINING

Gimme shelter New refuge chambers are providing increased saftey in single entry headings.

T

he disasters of Pike River and Moura have highlighted the need for greater safety underground.

Under mining safety guidelines, all miners have to be within at least 750 metres of a place of refuge in case of an emergency.

However, during works in single entry headings this becomes difficult.

“In cases such as these there is only one way in and one way out,” explained MineARC general manager Mike Lincoln.

In the case of an emergency these miners could potentially be trapped behind a bogger or other heavy machinery.

While escape ladders may be available, they still do not provide a proper refuge A D _ A MB E A A P R _ 1 2 . p d f P a g e 1 1 5 / 3emergency / 1 2 , 8 : 2 3for Athese M The refuge chambers provide up to 96 hours of life support. miners. Based on this need

MineARC had developed an upgraded standalone refuge chamber for single entry headings – the HRM-ELVP (Hard Rock Mine – Extra Low Voltage Portable), which comes in either four or six person configurations. Lincoln told Australian Mining that these refuge chambers are portable and able to be moved with the mine face as work goes along.

“The challenge was that we had to make it portable while also meeting life support guidelines.

“So we developed the unit so that it doesn’t have to be permanently connected to the mine’s main electricity all the time, so that it can be stand alone and moved along the mine’s face,” he said.

The refuge chamber is powered by two sets of bat-

teries, one of which is used solely for life support.

According to MineARC these batteries can provide more than 36 hours of life support.

This can even be extended up to 96 hours if required. These internal life support systems include CO/CO2 scrubbers, as well as air conditioners and dehumidifiers.

Additionally, the chambers only need to be recharged every three months.

Lincoln added that it is available in different configurations, one of which has a higher blast resistance rating, of 15psi, one with raised skis, while another has an IT hitch configuration so that it can be picked up and carried by boggers or IT unit. These refuge chambers are the next generation of MineARC’s PLP.

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AD_AMDAVMAR_12.pdf

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Davey Bickford Australia Pty Ltd PO Box 298, Osborne Park, WA 6917 T 08 9207 1066 E admin@daveybickford.com.au www.daveybickford.com.au

Untitled-5 1

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AM.APR12.PG062.pdf

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UNDERGROUND MINING

Head of the pack Making underground remote control safer.

O

perating machinery un- in both above and underground Conditions where it may reach derground is hard enough, mining applications. around 30 degrees Celsius at but being cooped up in a “Each mini-cube is about 2.3 times. Buchanan stated that the tiny, hot, airless room as you do it metres by 2.3 metres,” Royal new “teleremote cabins, made usmakes the job worse.

Wolf’s WA regional sales manager ing Royal Wolf’s mini-cubes, have For heavy machinery remote Dion Clifford explained. been found to withstand some off control operators working 300 “Compared to other competi- the harshest mining conditions metres underground, this was just tor (containers or teleremote cab- while still providing the operator part and parcel of the job. ins) that use standarised wood with the comfort of working in a Now two companies have based flooring, all of the Royal station style set up. Their toughjoined together to create new Wolf mini-cube containers are ness also aid in its portability. teleremote cabins that are making made from steel, which provides a “Each cabin can move up to these miners’ lives a little easier. much higher level of protection of one hundred times in its lifetime, Remote Control Technolo- the mining operators controlling so the robust nature of the congies (RCT) and shipping container the digging machinery,” Clifford tainer and its ability to be relocompany Royal Wolf have teamed said. cated easily makes Royal Wolf’s together to create new teleremote RCT’s national sales and mar- mini-cubes the perfect solution for operations cabins housed inside keting manager Craig Buchanan the confined spaces in which we mini-cube containers, making said that safety is a major priority work,” he said. work safer on site. for teleremote operators.

“Control systems can be manRCT has changed the shipEven if they aren’t at the aged from the back of a 4WD but ping containers into teleremote mine’s face itself, danger still ex- we’ve found that operators prefer cabins by fitting them out with ists on site. to work from the cabins as they heavy duty electronics, air con“It’s important that our em- tend to be more comfortable.” ditioning, as well as an in- ployees feel safe and secure when built barrier system, changing working in the challenging con- • Royal Wolf 700 theA Dmini-cube _ A M R O Cinto S E Pa_ 1remote 1 . p d ditions f P a of g ethe 1mines,” 5 / 8 Buchanan / 1 1 , 9 :1300 3 3651 A M www.royalwolf.com.au control station for operators to use explained.

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Underground operator safety. Inset: The cabins.

www.miningaustralia.com.au

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POWER GENERATION & ELECTRICAL EQUIPMENT

Money for

W

NOTHING

hether scheduled of it with our portfolio of or unscheduled, businesses.” shutting down With some mining commachinery is usually the last panies the experiment has thing a miner wants to do. been so successful it’s been But United States-based more profitable to shut Enernoc is paying more and down production and earn more companies to do just off Enernoc rather than prothat. duce ore.

Branching out into what Renaud said Enernoc’s has been a traditionally US- Australian operations were focused market, Enernoc most advanced in Western works with electricity suppli- Australia, where they were ers and consumers to ensure dealing with five large minthere’s enough power avail- ing companies. able in times of peak demand.

He said all three gold Enernoc pays miners, miners in their WA portfoand a range of other busi- lio had decided that when nesses, to use less power Enernoc needed it, the most when the electricity grid is profitable thing they could under stress, and the power do was halt production. supplier in turn pays Ener“All three made the denoc for delivering the service. cision that the financial in“The simplest answer is centive for participating was that we’re paying compa- sufficiently high that they nies to not consume energy,” could actually shut down Enernoc Australia and New gold production,” he said.

Zealand director Jeff Renaud The catch is that when told Australian Mining.

Enernoc needs what they “The constraint is that call a ‘demand response usually a provider can’t gen- event’ the shutdown time is erate enough power at cer- between one and four hours. tain points in time and they Unfortunately it’s not need some way to deal with possible to close the mine that problem.” for weeks and make more “They pay us to deal with money than when it’s operait by reducing demand.” tional.

“We then take the monCustomers usually parey the system operator has ticipate in demand response A D _ A MB & R MA R _ 1 2 . p d f Pa ge 1 2 3 / given us and share a portion events for a fixed number of

How can shutting down production be the most profitable move for a miner?

hours per year, with most signed on for 24 hours and some for a maximum of 48 hours.

But full production shutdowns aren’t the only way miners make money from saving electricity, and Renaud told Australian Mining most operations presented clear opportunities where some equipment could be switched off with no impact on production.

“It’s not going to be the case that everyone wants to shut down production and the reality is that there’s a lot that can be done,” he explained.

“Demand response is usually a secondary consid2 / 1 2 , 8 : 0 6 AM eration to shipping product

out the door in the most profitable way possible.”

Renaud marked crushing and extraction as mining areas where there were “clear opportunities”.

“Waste water treatment is also something that can typically be curtailed for a few hours, especially if there’s excess capacity and storage tanks,” he said.

“None of our customers would shut down thickening or agitation or things that have a long start up time to get them going again.”

The other opportunity is for businesses to schedule maintenance during demand response time to make the most of the downtime.

He stated that “a lot of

customers synch up their maintenance with demand response to hit two birds with one stone.”.

And Renaud said the impact on energy savings with this kind of business is not insignificant.

“On the low end there can be a one to two per cent reduction on overall energy spent and on the high end it can be up to five or seven per cent.”

That’s all the while getting paid by Enernoc and still focusing on hitting production targets.

“None of our customers would be participating if the fundamental economic equation didn’t make sense,” he said.

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AD_AMAPCAPR_12.pdf

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AM.APR12.PG066.pdf

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POWER GENERATION & ELECTRICAL EQUIPMENT

Voltage regulation for remote sites Ensuring your site has adequate power controls is crucial, Subodh Bhatia* writes

T

he need for efficient voltage control is particularly important for remote mining sites, but also for sites where frequent island-operation may be necessary.

Frequently these sites have stand-by or permanent motor generator sets.

Depending on the type of loading the generator will be rated appropriately for standby, limited time, prime, or continuous running with the latter applying to island sites, far removed from the main grids.

Almost invariably island grids are not stiff giving rise to voltage as well as frequency instability.

The need for voltage control is increasingly important for remote mine sites like in the Pilbara.

It is therefore sensible to segregate loads, connecting those requiring voltage transformer will have leak- locked loop (PLL) means for age regulator (AVR) is likely stability to environmentally- age reactance of perhaps example, only work within in those instances to reduce suitable local voltage regu- as high as three or four per a vary narrow range of fre- excitation current – again lators, such as the TSi VRx cent. quencies, PLLs also respond leading to instability. series.

A typical 500 kVA gen- badly to fast slew rates – For the above reasons, This can be a much more erator will have a sub-tran- and all this poses a problem the reticulation for a mining economical solution than sient reactance of ten per for more modestly rated site should be planned so as oversizing local generation cent or more – it can be as generators. to employ generation assets facilities in order to obtain high as 18 per cent.

Sharp load variations that are for economy realocal network stability.

For this reason genera- can cause wild gyration of sons reasonably matched to Isolated generators, tors are often oversized with the voltage and frequency loads capable of tolerating a when compared to the grid respect to the connected parameters. So-called power large degree of variation in power distribution systems load in order to mitigate the walk-in features when avail- voltage, and even frequency. in terms of frequency sta- instability that would occur able can ameliorate the situFor other loads such as bility, impedance, power when generator and load are ation although depending process control, commuquality, voltage regulation, closely matched. on load impedance char- nication and IT, effective or transient response have Many loads such as acteristics, for example a voltage regulation should inferior characteristics. control gear and generally passive filter, the generator be installed, such as the new As a point of com- IT systems do not respond might initially see a large VRx precision voltage regulAD_ A P R E 500 A P RkVA _ 1 2 well . p dto f frequency P a g e changes.

1 1 6 / 3capacitor / 1 2 , causing 2 : 2 9 leading PM parison, aM typical erators from TSi Power Cordistribution 11 kV/415 V Equipment relying on phase- VARs. The Automatic volt- poration.

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AustralianMining

They are designed for outdoor use and suit applications including control apparatus, microwave relaying stations, remote telemetry, etc. The VRx voltage regulators are packaged in IP65 (NEMA 44) housing making them wash down and corrosion resistant and thus well suited to challenging environments. They withstand stressing environmental conditions including ambient temperatures ranging from -20°C to + 50°C, humidity to 90%, and altitudes to 3300 metres.

The voltage regulators employ IGBT-based PWMconverter-inverters and buck-boost transformer to provide very low distortion precision-regulated voltage with less than 3% variation.

An automatic bypass provides assurance that in the unlikely event of equipment failure, voltage for mission critical applications can still being supplied.

The VRx voltage regulators are equipped with coordinated voltage surge protection in accordance with IEC 61312. In addition a noise filter is provided for the regulated output.

The VRx voltage regulators are available in ratings of 10 kVA, 15 kVA, and 20 kVA. *Subodh Bhatia is from Westek Electronics.

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AM.APR12.PG068.pdf

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POWER GENERATION & ELECTRICAL EQUIPMENT

Remote site power Mobile generators are providing power where you need it.

P

eople often say if a machine can survive the Australian mining industry it can survive anywhere.

With the heat, dust, abrasive materials, and unforgiving nature of the Australian landscape, they are not far wrong.

Taking this on board, Advanced Power have released a new range of 3000rpm Kohler powered diesel “Mine Specification” generators.

These generating sets have been designed and built to withstand the extreme and demanding conditions typically found on the mine site, and “to withstand the rigours of site work… anywhere portable power is required”.

According to the company the range has a standard fitment of options that allow for the generator sets to be used in nearly any industrial or mining commercial application.

Fitted with a rated central crane lifting point for ease of transport, the generators feature a lockable battery isolator, a 300 mm earth stake for increased safety, as well as gel sealed lead acid cranking batteries and European Linz alternators as standard.

All of the generator units are equipped with theA ‘Spinifex D _ A M E Lifeguard’ N E 2 A P Rfor . p safety, df P individual a ge 1 RCD’s per outlet, an emergency stop button,

Created for the mine environment.

auxiliary push to test outlets, and also are fitted with type rated high visibility yellow GRP generator6 boards breaker 1 / 3 / 1 with 2 , lockable 1 1 : 1 polycarbonate 8 AM covers.

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Advanced Power explained that these board increase on site safety and avoid accidents as it allows the site supervisor to lock out the access to the generator’s RCDs so that contractors can not reset earth leakage fault trips at will to get around safety ‘roadblocks’.

The generators have also been designed with environmental management in mind.

The remote power generators sit inside their own galvanised containment trays, which eliminates substrate spilling as well as avoiding the potential for further contamination that might be caused by oil or fuel spillage during filling, servicing, or general use, eliminating the potential for environmental damage.

According to Advanced Power, if rolling portability is required on site, then a high clearance heavy duty puncture resistant wheel kit can fitted instead of the containment tray, allowing for increased mobility and the provision of power to almost anywhere on site.

The generator is available in four different models, including a 4, 6, 7.5, and 10 kva version, which all use rugged Kohler diesel engines.

“These sets make the ideal starting platform for heavy industry portable power requirements and are fully backed by a three year Advanced Power warranty,” according to the company.

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A D _ A MMP O A P R _ 1 2 . p d f

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POWER GENERATION & ELECTRICAL EQUIPMENT

r o F t IBuil The s e m e r Ext

The electrical engineering and substations are part of Rio’s 333 expansion.

Pilbara power A number of contractors have been brought in for Rio’s iron ore power generation expansion.

A

BB has won orders worth approximately $100 million for 17 substations to support Rio Tinto’s iron ore expansion in the Pilbara. According to ABB, these upgrades and the installation of new power infrastructure will raise the voltage level of the existing substations. “These solutions will also help reinforce the reliability of the grid and ensure the supply of high quality power,” ABB’s Australian manager Axel Kuhr explained.

The scope of the contract includes electrical switch rooms, switchgear, cables, power transformers, and ring main units. ABB will also provide SCADA, and the protection and communication equipment compliant with IEC 61850. It says that this will enable the remote monitoring and control of power assets at multiple sites from Rio’s Mine of the Future operations centre in Perth, which is more than 1000 kilometres away from many of the substations. As part of the contracts with Rio Tinto, ABB is responsible for the design, engineering, and supply of the equipment needed for the upgrade and installation of the new electrical infrastructure for the www.miningaustralia.com.au

substations. The projects are scheduled for completion by next year and are part of Rio’s larger Electrical Infrastructure Replacement (EIR) poject. This latest award comes as the power company strengthens its network in Western Australia. It won a contract to supply and service the distribution transformers from Western Power for south west Western Australia. The contract’s scope includes the design, engineering, supply and service of 10kVA to 1000kVA up to 33kV rated distribution transformers.

Downer EDI has also entered into a framework agreement with Rio as preferred contractor for next five years on nominated projects for electrical and instrumentation work within its 333 Capacity Expansion programme in the Pilbara. Head of Downer, Grant Fenn said the company was pleased to be building on its previous contracts from Rio. “Downer Mining is currently providing fleet maintenance at Rio Tinto’s Argyle diamond mine, open cut mining services, as well as an indigenous recruitment and development scheme at Paraburdoo, and tyre management,” he said.

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AM.APR12.PG070.pdf

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POWER GENERATION & ELECTRICAL EQUIPMENT

Devil of a problem Will the Devil Creek gas plant in Western Australia help miners as much as the Government says it will?

U

nlike the well-connected eastern states, Western Australia poses greater infrastructure challenges to miners, particularly in the regions surrounding the Pilbara.

Water, rail, roads, and ports have all been previous problems, along with many more, with some of these troubles continuing to cause headaches for miners.

One less discussed problem, but still of major concern to mining companies, is the provision of power.

The state’s North West Shelf is one of the boom regions of Australia’s gas industry, with governments and companies alike forking out massive sums for gas deThe plant will make a significant contribution to State security, despite historically high energy prices. velopment.

But while investments in the region’s gas so far total make a “significant contri- processing industries ex- it’s unclear how useful the more than $20 billion, lo- bution” to the state’s energy panding, demand for natu- plant will be. cal miners have long com- security, and help power the ral gas is continuing to rise,” In its promotional mateplained of a limited and ex- state’s expanding industry. he said. rial Apache, which together pensive supply.

He signalled Devil Creek And in a move the Gov- with Santos developed the Earlier this year the as an important pillar in ernment marked as saving Devil Creek plant, told inopening of Apache Energy’s supporting the “significant gas for local users, Barnett vestors the gas contracts $1.1 billion Devil Creek gas new energy requirements” said approximately 15 per it had secured were “subplant, 45 kilometres south- that would be demanded cent of the resource proc- stantially higher than we west of Dampier, was mar- from new and upgraded essed onshore was reserved have historically received in keted by the Government as iron ore projects. for domestic use.

Western Australia”. a step towards solving this “With WA’s populaBut when comparing the That sounds like good problem. WA premier Colin tion growing strongly, and rhetoric of Apache Energy news for Apache investors, A D _ A ME L T A P R _ 1 2 . p d f a ge 1 1 9 / 0 3 / 1 2 , 0 : 4 1 AM Barnett said the plant would its mineralP production and and the WA 1 Government but bad news for mining

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companies and other energy customers.

It also flies in the face of comments made by Barnett that the plant would help support the region’s energy requirements.

If miners have already complained about gas prices prior to Devil Creek’s opening, they are unlikely to warmly welcome costs higher than historical levels.

Apache declined to answer questions from Australian Mining about its proposed gas prices or the wider energy market for miners in the Pilbara.

Nevertheless the Devil Creek gas plant project represents a significant increase in Western Australia’s natural gas supply, boosting domestic production by 20 per cent, which will surely be welcomed by some parts of the industry.

The plant adds to gas production sites at Dampier and Varanus Island, and is the first new facility built in WA in over 15 years.

Future gas production is also planned at the BHP Billiton-led Macedon development near Onslow and the Chevron-led Gorgon and Wheatstone projects.

www.miningaustralia.com.au

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AM.APR12.PG072.pdf

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PRODUCT FOCUS: CRANES & LIFTING

Lifting the

STANDARDS

C

ranes are an underap- Australia (EWPAA); the first A new industry group preciated machine on such group in the world. has been created for the mine site, despite Stuart Walker, managthe integral role they play. ing director of Manitou telescopic handlers From heavy booms Australia, was appointed as on site. through to smaller telehan- the group’s first president. dlers, they lift and move all “With the use of telloads on site. Telehandlers escopic handlers in the Ausin particular have even been tralia and Pacific Region seeing use in underground gaining acceptance it was coal mines as their abilities clear to us that an industry have become more apparent. body was required to act as It’s no surprise considering a conduit for information how widespread their usage regarding the benefits and is right across the mine site safe use of telehandlers for as well as construction and industry, users, government civil industries. regulators and other stakeDespite this, there has holders,” Walker stated. never been a telehandler asHe explained the high safety standards we’ve within its standards, in parsociation focused on the safe THAA’s focus was to gain already set in Australia.” ticular when handling sususage of the machinery. recognition and inform the Walker said Manitou pended loads.

Until now. Manitou is Australian mining industry have been working for a “This has never been taking a leading role in the in the use of telehandlers. number of years to educate more relevant than today development of the Tel“With such a versatile operators of their obligations due to the increasing number escopic Handler Association tool (as telehandlers) people under Australian Standards of grey imports from less regof Australia (THAA), a divi- must be educated in its safe AS1418.19 and AS2550.19, ulated countries,” he added. sion of_ the Walker said that since AD M AElevating N M F L I Work A P R _ and 1 2 efficient . p d f usePas a well g e as 1en- 1 /especially 3 / 1 2 , as 1Australia 1 : 0 9 has AM Platform Association of sure the industry monitors the some specific requirements 1998 the company has been

pushing for a standarised position between the country’s various states and territories when classifying telehandlers.

“Today we are almost there and no doubt the THAA will be a valuable voice and industry body in helping manufacturers get this message across.”

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www.miningaustralia.com.au

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DO YOU REQUIRE RECERTIFICATION OR A THIRD PARTY INSPECTION OF YOUR CRANES?

Konecranes Inspection Services is an independent business unit, which operates under an independent quality process.

We provide quality independent inspection services for all makes and models of cranes. This ensures your FULL compliance to the Current Australian Standards.

As per AS2550.1- 2011, an assessment for the suitability of continued safe use is required when: 1. Cranes that have been in use for more than 7 years and have not had a major inspection. (The distinction of 10 years for components and 25 years for structure has been removed).

2. Cranes that have a Duty Recording Device that identifies that, two thirds of the DWP has been utilised.

3. In the absence of Duty Recording Device, Recommendations from a third party Inspection.

4. Second hand cranes commissioned with no previous history.

Annual Third Party Inspection is a new addition in the Standard.

Third Party Inspection is defined as “An inspection carried out by an independent* competent person, who is not involved in the maintenance of the crane”.

Konecranes Inspection Services Offer: Crane Reliability Surveys (CRS) – An Engineering Assessment, designed to give you reliable information about the current condition, the continued safe use, the DWP (Design Work Period) and the future Maintenance and Modernisation needs of your cranes, in compliance with Australian Standards.

Third party Inspections > All components as per scope of Annual Inspection listed

by Manufacturer. > Study and Analysis of previous 12 months service history. > Check on Basic Design Life. > Detailed Inspection report.

*NOTE: “For the purpose of this definition, ‘independent’ means not employed by the same organisation unless that organisation uses a quality process that confirms independence”.

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AM.APR12.PG074.pdf

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PRODUCT FOCUS: CRANES & LIFTING

Sealing the deal Double-acting seals on a crane hook are the answer for the Thialf, the world’s largest crane vessel.

I

n Australia, when people think of the resources industry they generally think of a massive pit in the middle of nowhere.

As soon as operations move offshore the public tends to forget about them, but unlike on land, operations at sea need lifting equipment to work right the first time or it could be potentially lost forever at the bottom of the sea.

Trelleborg seals are helping ensure smooth lifting operations for the world’s largest crane vessel as it goes about its business of installing production equipment for deepwater oil and gas fields.

The crane vessel is Heerema Marine Contractors’ Thialf, a huge semisubmersible barge equipped The crane’s seal were exposed to high levels of corrosive seawater in its role. with two super-cranes.

Since it entered service in 1986, the Thialf has in- as subsea production facili- blies, the business ends of from seawater and resulting stalled many of the produc- ties or moorings for floating the cranes, are exposed to corrosion and wear to the tion platforms in the North platforms directly onto the corrosive seawater. metal parts, while allowing Sea and elsewhere around seabed.

Measuring more than the smooth rotation of the the world.

According to Heerema six meters in height, each hook shaft.

As the industry increas- lifting operations can now four-prong hook assembly Any interruption of noringly develops oil and gas take place in water depths rotates on a massive roller mal operations can be costly fields in waters too deep well in excess of 2,000 me- bearing packed with lubri- for Heerema Marine Confor bottom-founded plat- ters. cating grease. tractors (HMC). forms, the vessel is called Underwater operations Trelleborg’s seals are rePrevious seals proved _ A MP E A A P R _ 1 2 . p d f a ge 1 1 2 / 3 / 1 2 , 1 2 : 1 3 PM onAtoDinstall equipment such mean thatPthe hook assem- quired to protect the bearing unsatisfactory for the job,

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allowing seawater to get in when the hook assemblies were used underwater, according to Jurgen de Jong, HMC’s Senior Technical Superintendent for cranes. de Jong’s responsibilities include arranging repairs, overhaul and certification of the crane blocks.

“In 1999 HMC and

www.miningaustralia.com.au

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PRODUCT FOCUS: CRANES & LIFTING

Trelleborg worked together to come up with a better solution,” explained Ralph van de Grijp, business unit manager offshore & energy, at the Trelleborg Sealing Solutions marketing company in the Netherlands.

“Armed with specifications provided by HMC, we proposed using a doubleacting seal to prevent fluid passing in either direction, to stop seawater going into the bearing or grease from the bearing leaking into the external environment.”

The solution chosen was Trelleborg’s Turcon Roto Glyd Ring, which is widely used in other industries.

However an unusually large size was required, with The seals were still in a good condition after ten years on the job, de Grijp said. a diameter of 1.8 meters.

Over the next decade the was possible. Trelleborg ment,” van de Grijp said. sense to install new seals.

Thialf continued to perform Sealing Solutions was called “There was very little “Normally when a block lifts, and the bearings in the in to inspect and replace the deterioration.” is overhauled we renew all hook assemblies functioned seals, a job requiring three This was backed up by seals preventively, so we do satisfactorily, with no sign days for each seal. de Jong. not have to take everything of problems.

The results were surpris“The bearing and the in- apart again for a leaking When the vessel re- ing. ternals of the block were in seal shortly afterward,” de turned to its home port of “My colleagues had nev- very good condition, which Jong stated.

Rotterdam for maintenance er seen seals in such good shows that the seals worked But van de Grijp and in A 2010, a proper after his colleagues at Trelleborg D_ A M M E Revaluation A P R _ 1 2 condition . pdf P a g 10 e years 1 8 in / 0 3effectively,” / 1 2 , 5he: said.

2 1 PM of the seals’ performance a harsh working environStill, for HMC it made Sealing Solutions were left

with the tantalizing question: How much longer might the originals have continued to function satisfactorily?

The Turcon Roto Glyd Ring PTFE seal is energized by an elastomer O-Ring.

As pressure from liquids such as seawater or oil increases, the pressure with which the O-Ring pushes the PTFE seal onto the counter surface also increases, thus ensuring that the seal remains tight.

The Turcon Roto Glyd Ring is a seal made of Trelleborg’s proprietary PTFE (polytetrafluoroethylene) based material.

The characteristics of PTFE have won it wide use in industrial applications, especially in environments where movement is involved. It has a low friction coefficient and is stick-slipfree, thus allowing smooth transition from a stationary state to movement.

In addition, it is a longlasting material that displays excellent chemical resistance and fluid compatibility.

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3:52 PM AustralianMining28/02/12 April 2012 75

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PRODUCT FOCUS: CRANES & LIFTING

Massive mobile cranes Gladstone Harbour receives Australia’s largest mobile crane.

T

he port of Gladstone has been viewed for some time as Australia’s next export hot spot as the LNG’s boom fuse is lit.

The port has also been caught up in Queensland’s coal revolution which has seen massive expansion and port development across the state.

One of the latest developments at Gladstone is also an Australian first.

The port now has the country’s largest mobile harbour crane.

Stevedoring service NSS has unveiled its latest addition, the Liebherr Mobile Harbour Crane (LHM 550 Litronic).

The acquisition of this massive new crane was “sparked by a significant increase in demand for stevedoring, transport, and logistics services in the region,” NSS explained. theA Rcompany AAccording D _ A M B RtoE M _ 1 2 . pthe df LHM 550 Litronic is able to carry

loads of up to 150 tonnes “making it capable of handling the heavy lift and oversized project cargoes that are typically see in large scale LNG, mining, and construction project”.

The crane is reportedly the largest of its kind and can lift said 150 tonnes around 54 metres, while its twin lift container spreader and large 18 cbm grab will improve overall stevedoring productivity at the port.

The LHM 550 Litronic will couple with NSS’ 3.3ha QAP1.1 port terminal, professional, experienced workforce and streamlined local road transport capabilities to provide integrated stevedoring, storage, transport and logistics services for Gladstone.

NSS is a private company jointly owned by Xstrata Copper and Qube Logistics.

•P NSS a ge 1 1 7 / 0 2 / 1 2 , 1 2 : 1 1 PM http://www.northernstevedoring.com.au/ The mobile crane can lift close to 150 tonnes, according to Liebherr.

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AUSTMINE

Mission to MOSCOW

W

hile Australia is one of the world’s premium markets in which to mine, Russia is fast becoming another investment hot spot.

Russia is one of the world’s largest mineral producers, and accounts for 20 per cent of global nickel and cobalt production, close to seven per cent of all coal and iron ore as well as a range of different metals such as gold and silver.

Russian held resources at operating mines are now in the vicinity of US$325 billion, and new deposits worth around US$225 billion.

Similar to Australia, the mining industry is also crucial to the Russian economy.

According to Robert Trzebski, an executive officer at Austmine, “the mining industry is strategically essential and is one of the most important industries in the Russian economy”.

Both also have reputations for a harsh mining industry that demands the most out of their equipment and technology. With such a booming mining industry Austmine,

in association with Trade & Investment Queensland, is hosting Mining World Russia 2012 at the Australian Mining Technology Pavilion in Moscow, 24-26 April, to give Australian companies the opportunity to showcase their products, technologies, and services to mining professionals from Russia, CIS countries (such as the Ukraine, Kazakhstan, and Kyrgyzstan) as well as other international visitors.

Austmine say events like this give greater exposure to Australian innovation.

“Russian mining companies are aware of the Australian expertise but have limited direct exposure to Australian mining technologies and services,” Trzebski explained.

Last year eight Australian companies exhibited at the Australian Pavilion, including Micromine, Russell Mineral Equipment (RME), Austin Engineering, Maptek, and Bradken.

This year participating companies include Industrea, Mine Site Technologies, Xstrata Technology, with Austin, RME, and Maptek returning to the exhibition.

An upcoming mining exhibition in Russia is helping to get an Aussie foot in the door.

Austmine went on to say that apart from the showing at the event, the Moscow mission also includes informal meetings with leading Russian mining companies such as SUEK, Mechel, and Evraz, which provides participants with first hand

info on upcoming project developments.

This mission will be held after the upcoming Austmine mission to Brazil, and prior to Austmine’s showing at the massive Mine Expo 2012 in Las Vegas later this year.

AustralianMining

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Q&A

Q and A As the newly appointed head of Snowden Technologies, Nic Pollock shares with Australian Mining’s WA correspondent Jamie Wade his vision to streamline, simplify and improve information systems in mining.

AM: You’ve joined Snowden role as group general manager of the technologies division. What is the scope of that role and what is your remit?

NP: The role sits on the Executive Leadership Team of Snowden reporting to the CEO with direct responsibility for Technologies to define and execute the strategy for the Technology Group globally within Snowden. The role is based here in Australia, but it’s a global remit to work with all regional offices to deliver those technologies through our global network.

AM: Can you elaborate on that new strategy?

NP: Initially the strategy is to mature the Technologies Group. Snowden Technologies is now over ten years old, however some of the practices don’t necessarily reflect that. What has made us successful as a mining consulting house is not necessarily the best model for a technology company so we need to have a fresh look at how we go to market.The other part of that strategy is to refine our focus on core areas of customer value. Traditionally we have been too willing to build bespoke systems for customers purely because they were willing to pay for them rather than determining our strategic focus and choosing projects which fitted into that direction. Consequently the Snowden Technologies message is lost in the marketplace; people don’t really know what we’re about, so number one is to let people know what it is we do and reminding, educating about what we’re good at and what we’re going to keep doing.

AM: Your career thus far has included senior roles at Mincom, Gemcom and founding Viewlocity in Australia. What changes have you seen in your career? What would you characterise as the most significant changes in information systems in mining?

NP: The number one thing I’ve seen (in mining) is maturation of the technology marketplace. When I entered the mining software market I was quite shocked at where the customers were in their infrastructure and use of technology from an enterprise perspective. On the one hand you had incredibly advanced technical software that was very

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Software in mining has a serious problem with cross integration, Pollock says..

clever being used by mining engineers and geologists. However, from an enterprise computing point of view, mining was far behind the rest of the world.

Automation will be the biggest driver of that maturation in mining information systems; it’s allowed software to integrate data or control systems into the hardware. That wouldn’t be possible without huge improvements in networking and comms to enable that.

The other big change is the take up of commercial off-the-shelf software. This fits well with our strat-

egy of moving away from bespoke software development for mining customers. The whole reason you go into software development is repeatability – not one-off projects; each time there’s a bespoke project we throw an anchor out the back of our boat to slow us down. Yes, we’ll honour our commitments to key customers, but there’s going to be more rigour on what we take on.

And that’s better for them too.

AM: What are the end users of mining software and IT services demanding?

NP: Simplicity through better inte-

gration of the software and therefore processes, applications, and increasingly between operational technologies (OT) and information technologies (IT), and ultimately to or from mobile devices. People want access to information readily from anywhere. There is an increasing reliance on mobile devices everywhere – particularly in mining where most of the workforce is out in the field.

Regrettably, the mining software business is characterised by too many bespoke and discrete systems that don’t integrate. Therefore, delivering that simplicity through better integration is the key challenge to vendors of information systems.

However, let’s not escape the fact that some of these applications are very complex and powerful, so we shouldn’t dumb them down either.

AM: What are the opportunities to vendors of information systems to the mining sector?

NP: The opportunities lie in that maturation I was referring to earlier. That is those that can help the customer standardise as much as possible without too much negative impact on functionality. That takes much more than just technology but being able to enable best practice through a change management process otherwise it won’t survive.

That’s why the Snowden Technologies story is so compelling, it’s not just the software but the best practice we provide. Reconciliation is a great example. We obviously sell a product called Reconcilor however anybody can do that, but ours came out of our field experience of our 170 odd professionals in the field and the development of a best practice around reconciliation. It’s driven by mining professionals, not just product managers.

AM: How are some of the latest developments in information systems to the mining sector improving efficiency and productivity?

NP: Clearly Automation is driving most of these gains. A lot of people confuse automation with staff reduction. It’s not; it’s about optimising the way that you mine a particular resource throughout the whole process. That obviously implies more than just automation of big yellow vehicles. www.miningaustralia.com.au

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Servicing the Mining Industry for 30 years All Products and Services exceed MDG41 requirements Mining dedicated Service and Supply Centres with pressure testing facilities Specialists in Open Cut and Underground applications for all soft and hard rock mining All Service and Supply Centres ISO9001:2008 accredited RTO Registered by VETAB Project Management for machine overhauls and hose refurbishment NATA certified hose testing facility Experience across all OEM mining equipment manufacturers National fleet of mining specific mobile service units

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9th Annual Australian Mining Prospect Awards In this issue we have a brief word from some of the sponsors about their companies and why they choose to sponsor the Prospect Awards.

SEW-Eurodrive

BASF Construction Chemicals

SEW-Eurodrive is proud to be sponsoring the coal mine of the year award at the 2012 Australian Mining Prospect Awards.

As a key supplier to the coal mining industry, we believe in quality and efficiency when it comes to drive technology.

Supplying a range of industrial gear units, motors and drives in sizes in excess of 1MW, we deliver more than just products to heavy industry.

A team of talented engineers develop effective and timely solutions based on customers’ motion requirements, which are backed by aftersales commissioning and product support that is second to none.

We also understand that time is money, so units are delivered within a matter of weeks from our local assembly plants, rather than waiting months for items to be shipped from overseas.

The coal mining industry is one of Australia’s strongest assets – as the world’s greatest exporter of coal, we can be thankful for an industry that has given us global recognition.

SEW-Eurodrive takes great pride in sponsoring the coal mine of the year award, which we hope in turn, encourages the organisation in and industry which has greatly supported our company over time.

We hope that this award goes to a fitting recipient to provide them with the acknowledgment they deserve for making such a strong contribution to Australian industry.

SEW-Eurodrive looks forward to further ongoing partnerships with all forms of mining, now and into the future.

BASF Construction Chemicals; Underground Construction division (UGC), can provide state-of-the-art solutions for ‘Ground Support’ requirements in mining and tunnelling. BASF is the largest chemical company in the world, with R&D and innovation being the key factor for it’s continued success in the remaining the global leader in its field. A prime reason why BASF are proud to sponsor the Innovation Mining Solutions category for the Prospect Awards.

Atlas Copco For over 130 years Atlas Copco has supplied the world with mining equipment, making it one of the most experienced suppliers in the industry. Since setting up shop in Kalgoorlie in the 1950s, Atlas Copco has learned from the very specific and in many ways original Australian mining methods, which differ from the rest of the world. On top of higher demands on people and equipment, conditions faced in Australia (especially water) are very often tougher than most. One of Atlas Copco’s highest priorities is reducing people’s exposure to the drilling process and to the hostile environment often found in underground mines.

With our first experience in automation over a quarter of a century ago, and having spent the past 12 years refining our common rig automation platform RCS, the performance of Atlas Copco’s production drill rigs, RCS control system, rock drills, Cable bolting rigs and innovative braking system (SAHR) have set the standard in the industry for productivity and safety.

The Prospect Awards recognise personal and company achievements, and they recognise the new benchmarks these create within the industry.

As a company and as individuals, Atlas Copco and its staff are pleased to support this event the Contract Miner of the Year and Hard Rock Mine of the Year awards because we appreciate how hard it is to be at the frontier of mining.

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Orica Mining Services Orica Mining Services is the world’s leading supplier of commercial explosives and blasting systems and is committed to developing and applying new technologies to achieve productivity, safety, environmental and financial gains for its customers.

Sponsoring the ‘Excellence in Environmental Management Award’ in Australian Mining’s Prospect Awards is one of the ways we contribute to and celebrate the success of this vital aspect of the mining industry, an industry that is not only critically important to the economy of our country but also to our business.

There is no single ‘answer’ to environmental issues, most improvements are incremental and are the result of hard work, close collaboration and sound science.

At Orica we are, however, making real progress. We have invested heavily in developing mining technologies and processes that can bring about, measurable step changes in environmental performance.

We are proud to sponsor this worthwhile award and consider the Prospect Awards an excellent way to recognise the valuable work undertaken in environmental management.

We thank all participants for taking the time and effort to submit their entries and we look forward to meeting the finalists in November.

Be a leader in Australia’s mining industry and nominate today

www.miningaustralia.com.au

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NOVEMBER 1, SYDNEY For close to ten years the Australian Mining Prospect Awards has recognised and celebrated innovation and performance in the industry.

Last year close to 400 of the industry’s best gathered to highlight an industry that is excelling amidst a global down turn. And now it plans to gather again to showcase all that mining in Australia can do, and those that are making a difference. Are you?

NOMINATIONS ARE NOW OPEN IN THE FOLLOWING CATEGORIES • Mine of the Year • Hardrock Mine of the Year • Coal Mine of the Year • Explorer of the Year • Mine Manager of the Year • Contract Miner of the Year • Minerals Processing Plant of the Year • Contribution to Mining

• Employer of Choice • Mining’s Woman of the Year • Young Achiever • Community Interaction • Innovative Mining Solutions • Excellence in Mine OH&S • Excellence in Environmental Management

AND NEW FOR 2012 The People’s Choice award, which is chosen from the awards recognising individual achievement and is voted on by an online poll at www.miningaustralia.com.au

DON’T MISS MINING’S NIGHT OF NIGHTS

BE A PART OF IT! Download the nomination kit at www.miningaustralia.com.au/awards

For further information, please contact (02) 9422 2759 or email awards@miningaustralia.com.au SPONSORED BY:

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MINING JOBS

To advertise a new job contact Hussein Azzan at 02 9422 2851

To see the latest jobs available visit www.miningaustralia.com.au, which is updated daily.

Manager Belt & Shutdown ServiceS location – Perth coMPany – BhP Billiton description: We are BHP Billiton, a leading global resources company. Our principal iron ore operations are based in the Pilbara region of northern Western Australia and our corporate offices based in Perth.

Reporting through to the Head of Central Maintenance Fixed Plant, this Perth based role requires regular travel to site to successfully lead and develop the FIFO crews responsible for delivery of the services.

The individual we require will be a superior performer, with leadership, people management, and operational management capability. Most importantly, we are seeking a leader who is capable of delivering results. to submit your application click visit www.miningaustralia.com. au/jobs

Mining engineer – underground (donkin Mine – canada) location – canada coMPany – XStrata description: Xstrata Coal proposes to construct and operate an underground coal mine at the site of the existing Donkin Mine located on the Donkin Peninsula within the Cape Breton Regional Municipality, Nova Scotia.

An exciting opportunity exists for a Mining Engineer (Underground) to join the Donkin project team that is responsible for generating long-term underground mine plans.

The successful candidate will have significant technical and operational experience in underground coal, as well as tertiary qualifications in mining or a similar discipline.

You should also be willing to undertake training and familiarisation with underground technical and mining in our Australian operations for a period of approximately 12 months. to apply for this role, please visit www.miningaustralia.com.au/jobs

Mill Maintenance SuPerintendent location – golden grove coMPany – MMg description: MMG comes with a long and proud history of providing metals Mining engineer – Planning and minerals of all kinds to customers around the world. The Group owns and location – north-weSt QueenSland operates a portfolio of world-class base metal mining operations, developcoMPany: MMg ment projects and exploration fields, and is a substantial producer of zinc as description: MMG’s Century Operation, located in North-west Queensland, well as copper, lead, gold and silver. is Australia’s largest open pit zinc mine. In production since 2000, Century Due to the recent growth in mining activities at Golden Grove, we now seek comprises an open pit mine and concentrator at Lawn Hill, and a dewatering a Mill Maintenance Superintendent to join our Engineering and Maintenance and shipping facility at the port of Karumba Port.

Department.

Due to further growth within the Mining Engineering team, a fantastic opporPossessing a Mechanical or Electrical trades qualification and a fixed plant tunity exists for experienced Mining Engineer, Planning to get on board now maintenance background, you will have both well developed technical skills and be a part of this exciting journey at the Century Mine site! and personal attributes including significant experience in a continuous procReporting to the Senior Mine Engineering, your primary role will see you proess, mining or related maintenance environment and previous supervisory viding critical and a high level of Drill and blast planning, scheduling and experience. technical support services to our Century Mine production team. You will have The successful candidate will be offered a remuneration package commenthe ability to deliver to tight inflexible deadline and will be advising the Senior surate with their experience and the current market. Relocation assistance Engineer of any technical or administrative issues. is also on offer.

You will have strong attention to detail that will demonstrate your technical For further information regarding this mine site, please click on the skill, whilst being supported by an established framework and a network of link below: experienced personnel. download the golden_grove_Fact_Sheet.pdf.

This is an exciting time to join MMG, as our expansion plans offer numerto register your interest in this opportunity to be part of MMg, please ous development opportunities within an environment that fosters a work life _ ‘apply’ A M Tbutton R Ebelow F EorBstart _ 1an2application . p d fat www.mmg.

P a g e 1balance.

5 / 0 1 / 1 2 , 3 : 2 9 PM clickAonDthe 12/19/11 AMplease visit www.miningaustralia.com.au/jobs com/careers Tread-AustralianHorizontal1-2pg2Page 1 to apply1:15:13 for this role,

electrical deSign draFter – 6 to 12 Month contract working in the Mining Sector location – BriSBane coMPany – Barclay recruitMent description: You are an experienced Electrical Detail Design Drafter seeking an exciting challenge within a well established organisation focusing on control system solutions across a variety of markets including the buoyant mining sector and oil and gas.

Some key parts of the role are as follows: knowledge of electrical standards & regulations, superb use of Auto Cad and production of drawings from design sketches.

You will come from either a trade or engineering background, ideally with a Mining background and have had the relevant Electrical drafting experience.

You will come from either a trade or engineering background, ideally with a Mining background and have had the relevant Electrical drafting experience. if you feel that this is the role for you, please submit your cv or for further information please call Pat taaffe – 07 3211 1433, quoting Pt11250. environMental SuPerintendent location – century Mine coMPany – MMg description: Minerals and Metals Group (MMG) is one of the world’s largest producers of zinc as well as a substantial producer of copper, lead, gold and silver.

We are now recruiting an Environmental Superintendent to lead the implementation of our Environmental Management System as well as the day-today management of the Environment team. Reporting to the Environmental Manager, key priorities in this role will include: compliance monitoring and reporting; maintenance of assigned management plans, procedures and processes; and internal auditing to demonstrate overall system effectiveness.

To be considered, you’ll hold appropriate degree qualifications in science or engineering and have experience at senior advisory or superintendent level.

Ideally you’ll come from a mining, consulting or regulatory industry and be skilled in people leadership. Knowledge of ISO:14001 or comparable certified management systems is essential as is an ability to communicate clearly with diverse audiences. to apply for this role, please visit www.miningaustralia.com.au/jobs

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BRISBANE OFFICE: TREAD Australia Andre Fouche Business Manager – Australia & Asia afouche@TREADcorp.com

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WORLD HEADQUARTERS: TREAD Corporation 176 EastPark Drive Roanoke, VA 24019 USA 540-982-6881 www.miningaustralia.com.au

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Delivered to your Workplace

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Request your copy of the

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EVENTS

Conferences, seminars & workshops Event submissions can be emailed to ozmining@reedbusiness.com.au Shale Gas Symposium 2012

Dust Explosions 2012

This show allows specifiers and industry professionals to come together to catch up on products 17-18 April 2012 and technology, industry trends and The Dust Explosions Conference Sofitel, Brisbane to network with mining industry will examine the means to control The rise in unconventional gas is colleagues. dust and the latest technology reshaping the natural gas industry.

QME features free entry to all people to ensure the maximum safety New technologies coupled with in the mining, engineering and of your organisation. The risk of the abundance of resources has construction industries. complacency around combustible seen coal seam gas move from an • QME dust management in the workplace industry hazard to a major industry 5th Annual Kimberley 02 9422 2955 may not be overtly obvious but the in itself in the last ten years.

Resources Conference qme@reedexhibitions.com.au The A 3rd D _annual A M Shale D E LGas A P R _ 1 2 . 10 pd f 2012 P a g e 1 1 2 / 0consequences 3 / 1 2 , can1 be 1 dire. : 5 2 A M www.queenslandminingexpo.

May Developed in consultation with Symposium is the only event event Cable Beach Club Resort, com.au respected Australasian and Broome international experts, this event Mining and Engineering 5th Annual Kimberley Resources will examine industrial hazards, the NSW (M&E NSW) Conference is your opportunity to means to control or eliminate dust 28-30 August 2012 develop your strategy for success and analyze the latest technology to Newcastle, NSW in the booming North West and ensure the maximum protection and M&E NSW has become a “must Kimberley region. safety of your organisation. attendâ€? event for all buyers and Assess how the leading experts in • http://www.informa.com.au industry professionals, with over the area are planning their mineral 02 9080 4300 230* exhibitors in 2009. exploration and development and Keep abreast of the latest products see how your mining operation can Queensland Mining and technology as well as network follow suit and take a lucrative slice Exhibition (QME) with industry colleagues in a vibrant of the future profits.

24-26 July 2012 business environment. • IIR Conferences A D _ A M Q M WA U G _ 1 0 02 . p d f4300P a g e 1 2 2 / 7Mackay / 1 0 , Showgrounds, 1 0 : 5 9 A M • M&E NSW 9080 QLD Peter Thompson http://www.iir.com.au/ of its kind to specifically explore the huge potential of this future energy source.

Shale gas is the next big fuel set to ignite the resources sector, having already developed into a successful industry in North America. • 02 9080 4300 http://www.informa.com.au

29-30 May 2012 Penrith Panthers

02 9422 2472 Peter.thompson@reedexhibitions. com.au www.miningandengineeringnsw. com.au

Goldfields Mining Exhibition (GME) 30 October-1 November 2012 Kalgoorlie-Boulder, WA GME provides local and international suppliers with a unique opportunity to conduct business face to face with key buyers and decision makers in Western Australia.

Staged by Reed Exhibitions, GME provides a valuable opportunity to network and exchange ideas and information with industry colleagues in an interactive business environment. • GME Chris Ghosh 02 9422 2955 chris.ghosh@reedexhibitions. com.au www.goldfieldsminingexpo.com. au

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The Bell MkVII Articulated Dump Truck (ADT) delivers ultimate power and performance with the integration of a newly designed engine and optimised power-to-weight ratio.

Incorporating an intuitive software upgrade allowing smoother gear transmission and Wet Disc Brake system reducing driveline drag and fuel consumption, the Bell MkVII is the most competitive ADT on the market.

FOR MORE INFORMATION CALL 1300 HITACHI (1300 448 2244)

The B50D engine now delivers 380kW of power.

www.hcma.com.au

Bellllll articulated B tii l t d dump d trucks t k are distributed di t ib ib t d by b Hitachi Hit hi Construction Hi C t tii Machinery M hi (Australia) (A t li ) Pty Pt Ltd. Ltdd Some S options tii shown h may nott be b available il bl in i Australia.

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REDA

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