Australian Mining January 2013

AM.JAN13.PG001.pdf

Page

1

6/12/12,

11:28

AM

SERVING THE MINING INDUSTRY SINCE 1908

VOLUME 105/1 – JANUARY 2013

www.miningaustralia.com.au

NO.1 FOR MINING TECHNOLOGY AND EQUIPMENT Australians Overseas

The state of exploration Making minors into majors

TAkING ON THE wORLD Making our mark

P.10

Indigenous Mining

MINING MATTERS

Supporting Indigenous workers P.18

Minerals Processing

REFINING METALS Metal manipulation

P.20

Print Post Approved PP255003/00535

Safety

wORkING SMARTER Safety on site

P.24

AD_AMHITAUG_12.pdf

Page

1

5/07/12,

3:25

PM

// B E C A U S E Y O U D O N ’ T D O T H I N G S B Y H A LV E S

Hitachi AC Drive dump trucks. Built to match Hitachi excavators.

Our trucks and excavators are brothers. They’re designed by the same engineers, assembled in the same factories, and built to the same quality. If you’re running a Hitachi excavator, then you’ve already experienced half of the Hitachi advantage.

Now it’s time to see what a fleet can do.

AM.JAN13.PG003.pdf

Page

3

6/12/12,

11:26

AM

COMMENT

Mining Back from the brink 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

Associate Publisher – Martin Sinclair Email: martin.sinclair@reedbusiness.com.au Editor – Cole Latimer Tel: (02) 9422 2352 Email: ozmining@reedbusiness.com.au Journalists – Vicky Validakis Tel: (02) 9422 2964 Email: vicky.validakis@reedbusiness.com.au Brent Balinski Tel: (02) 9422 2408 Email: brent.balinski@reedbusiness.com.au Alex Heber Tel: (02) 9422 2884 Email: alexandra.heber@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 WA Representative – Jamie Wade Mob: 0435 945 868 Email: jamie@wadebusiness.com.au RBI Manufacturing & Electronics Group: Production Co-ordinator – Tracy Engle Tel: (02) 9422 2707 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

A new year means new opportunities.

S

o over the break the mining industry didn’t implode upon itself.

What a surprise.

After more than six months of doom and gloom predictions the industry has somewhat stabilised.

The rash of job cuts that we saw in September, August, and October also slowed down towards the end of the year until they reached the point where news of mine closures and mass lay offs were unusual rather than the norm.

The bad times have not ceased, but they have eased.

And now is time for us to reflect on how we got here, and where we’ve been.

I think we’ve experienced a golden age of mining, and gone through the last major spike that we will see in Australia for some time.

Comment Cole Latimer ozmining@reedbusiness.com.au And what a ride it was.

Not only did it see the exponential rise of iron ore, it also saw the rise of the iron ore magnates.

People who were always there in the industry; but for the first time entered the public spotlight.

Every Australian now knows the names Clive Palmer, Kloppers, Andrew Forrest, and Gina Rinehart. And the Australian general public was instantly critical of the industry, only seeing the success and not seeing the millions, and in some cases billions,

that went into the development to make these peoples’ operations a success, the gambles that were taken. But they are all seeing that now, after the industry faltered and the razor thin margins that were keeping many an operation afloat essentially vanished overnight – or nearly a single afternoon in the case of Fortescue. Although it didn’t generate much sympathy from the general public. Yet despite the downturn we experienced, we are far from the end of mining’s life and position in Australia.

The industry is set to get leaner and more productive, as we can’t keep operating at the ridiculous costs at which we had, and wages are likely to shrink or become more controlled, but mining is still one of the most interesting sectors in which to work.

The mining industry had a year of highs and lows – record share prices, and share price and commodity drops that rivalled the global financial crisis. We can look back and mourn the passing of the good times, but why?

The mining industry must move forward.

This is a new year, with new opportunities, and a chance to start afresh for many companies.

Mining is back from the apparent ‘brink’, so let’s see where we can go next.

FRONT COVER All rights reserved. No part of the publication may be reproduced or copied in any form or by any means without the written permission of the publisher.

SSn 0004-976X Reader Services – 1300 360 126 Subscription Rates – Australia (surface mail) $140.00 (incl GST) New Zealand A$148.00 Overseas A$156.00

A D Average _ A MNet K Distribution I NJ AN_ 1 3 . p d f Period ending September 2012 8,019

Pa ge

1

3 0 / 1 1 / 1 2 ,

1 1 : 0 5

AM

K-Superskirt will out last rubber and protect your belt’s surface...

BENEFITS - Reduces dust leakage - Up to 10 times better wear life - High tensile strength - Low friction - Belt friendly - High abrasion resistant

On the front cover we’ve featured an exploration rig drilling prospective tenements for a junior miner. Exploration has had a shot in the arm recently, despite many cutbacks to funding and investment in the area.

The CSIRO has taken a huge leap forward in exploration technology, creating new ways for miners to interact and uncover prospective new areas.

In this edition we’ve also looked at how Australian mining companies are making their mark overseas, as well as the issues affecting those still at home.

KINDER BULK MATERIALS HANDLING PRODUCTS

+61 (3) 9587 9244 sales@kinder.com.au www.kinder.com.au

Innovative - Product Efficiencies - Environmental Benefits - Global Solutions - Service Excellence www.miningaustralia.com.au

AustralianMining

January 2013

3

AM.JAN13.PG004.pdf

Page

4

6/12/12,

11:24

AM

Contents

Januar y 2013 issue

South of the border: A Mexican ‘Opportunidad’

Advancing the cause

Exploring the potential of South and Central America….p10,11

Gold on the rise….p14

Features

Preventing processing pains Stopping jellification of metals ............................................................ p21

ENVIRONMENTAL MANAGEMENT

Floodgates open on better water management Searching for sustainable solutions ........................................................ p8

AUSTRALIAN MINING

The new frontier Opening the Galilee Basin ................................................................... p12 Mining booms lead to crime boom Machinery theft on the rise ................................................................. p13

ADAPTING FOR THE FUTURE

Four must have productivity improvements Part Two of the path towards productivity .................................... p22-23

SAFETY

Risky business Getting ready for the risks ................................................................... p24 Difficult problem, simple solution Overcoming dust onsite....................................................................... p25

EXPLORATION

Juice for junior miners and explorers The trials and tribulations of mining .............................................. p16-17

INDIGENOUS MINING

Regulars

MINERALS PROCESSING

NEWS .......................................................................................................... p6 PRODUCT SHOWCASE ........................................................................... p26 JOBS .......................................................................................................... p28 EVENTS ..................................................................................................... p30

Mining the middle class Mining aiding Indigenous Australians ............................................ p18-19 Capturing solid changes New processing technology ................................................................. p20 4

January 2013

AustralianMining

www.miningaustralia.com.au

AD_AMUGLJAN_13.pdf

Page

1

3/12/12,

11:54

Creating tommorrows Mining Solutions Today - Australian Mining (final).pdf 1 30/11/2012 11:02:07 AM

CREATING TOMORROW’S MINING SOLUTIONS TODAY

C

M

Y

UGL offers a comprehensive pit to port solution for each step of the mining process that fuels increased productivity, reliability, efficiency and safety for our customers.

CM

MY

CY

CMY

K

From mining and mineral processing infrastructure to power generation and transmission, from water treatment facilities to heavy haul locomotives, freight wagons and signalling equipment – we deliver integrated solutions that support the mining sector.

Our competitive edge lies in our unique ability to provide support to customers throughout the entire asset life cycle with our strong in-house engineering, project management and maintenance capability.

www.ugllimited.com +61 2 8925 8925

AM

AM.JAN13.PG006.pdf

Page

6

6/12/12,

11:04

AM

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.

Newmont Mining CEO steps down Newmont Mining Corp announced chief executive Richard O’Brien will bow out of the top job on March 1, and is also set to retire from the board. Chief operating officer and president Gary Goldberg is set to take the top job. The company faced a tough year as production fell and costs rose. In July, the company reported adjusted net income of $294 million or 59-cents per share for the second quarter, down from $445 million or 90-cents per share for the second-quarter 2011.

Net income for the second quarter was $279 million, down 28% from $387 million in net income for the same period of last year.

$10bn coal project to create 9000 jobs Indian conglomerate the Adani Group have announced plans to push ahead with its $10 billion Carmichael Coal mine, rail and port project in central Queensland, flagging the need for 9000 workers. Chairman Gautam Adani announced his company planned to export its first coal to India in 2016. At 10 billion tonnes, Carmichael is considered the largest single coal tenement in the world.

Adani said the project would include construction of the mine, as well as rail and port infrastructure. The project is expected to create 5000 jobs during construction and 4000 permanent jobs.

Tropicana increases resource The massive Tropicana gold project has dramatically increased its mineral resources at the site.

According to Independence Group, which owns the mine in a joint venture with AngloGold Ashanti, Tropicana has increased its mineral resources estimate by an additional 1.48 million ounces of contained gold.

This now takes the total estimated resource up to 7.89 million ounces.

The increase is a result of drilling carried out this year, and greater confidence in the viability of a larger pit at Havana

PNG mining tax review causes concern Papua New Guinea’s Government is trying to dampen miners’ fears ahead of its mining tax review, with

6

January 2013

AustralianMining

concerns it could look at greater nationalisation.

It came during the 12th PNG Mining and Investment conference in Sydney.

PNG prime minister Peter O’Neill used the conference to speak to miners before implementing any changes to the regulations, stating that they will not be left out of negotiations during the review.

O’Neill explained that the changes are being made as landowners feel they are missing out on the resources boom.

However he added that “it is going to be done in a fair and equitable manner. “It is not going to be out there to deprive the investors who are investing in these projects.

“We understand very well that they are there for a return for their shareholders,” he said.

“But equally I am responsible for the return to my own people and my own country.”

Swift changes to nation’s mining laws, and the growing fear of nationalisation, is a rising concern for miners globally. According to Grant Thornton: “Increasing and unpredictable government intervention across the globe is adding further complexity to a sector that is already heavily laden with risk. The shadow of higher taxes, restrictive regulation and indigenisation looms large of an industry already grappling with the risks normally associated with exploration and extraction,” the company states in its report Facing an uncertain future: Government intervention threatens the global mining sector. Speaking to Scott Griffin, the national head of corporate finance industry leader – resources & energy at Grant Thornton, he told Australian Mining that a lot of governments are dissuading mining investment with taxes and nationalisation moves, essentially giving “too much stick and not enough carrot”. Earlier this year Ernst & Young listed resource nationalism as the number one fear for miners. In its report Business risks facing mining and metals 2012-2013, global mining and metals leader for Ernest & Young, Mike Elliot, said “resource nationalism retains the number one risk as governments seek to transfer even more value from mining.

Australian Mining gets the latest news every day, providing mining professionals with the up to the minute information on safety, news and technology for the Australian mining and resources industry.

equipment was very hard to find and, even when you could find it, you were paying near-new prices,” PPB partner Campbell Jaski said.

“It was just because so many mines were wanting to expand at the same time and there were so many contract mining companies increasing their fleets.

“Now things have really started to quiet down.”

Jaski said as the prices and lead times for new equipment fell miners were increasingly looking away from the second-hand market.

He also said that in some cases the payments being made on secondhand equipment were now worth more than the asset.

$50 billion link between QLD coal and WA iron

The University of WA is considering opening a campus in the Pilbara to support its expansion into the resources sector in the state’s northwest.

A taskforce has already been set up to examine the move, but no final decision has been made on the investment or its location.

The push is likely to be spearheaded by the university’s Energy and Minerals Institute and will help students and staff conduct research on WA’s mining industry, EMI director Tim Shanahan said.

“Clearly the Pilbara is the most important energy and minerals region in WA and probably in Australia,” he said.

“Over the last four or five years the university’s been active in making regular visits to the communities there and supporting a range of activities which already exist.”

A Japanese firm has agreed to develop a feasibility study for a plan to develop a $50 billion steel industry linking WA’s iron ore mines with QLD’s coal projects.

The Nomura Research Institute and the consulting arm of Britain’s Tata Steel have taken on early research on the Iron Boomerang proposal, with an agreement signed in Tokyo.

The plan would involve building a new Queensland town for 20,000 people, which will service a slabsteel plant near Abbot Point.

Another slab-steel plant would also be built in the Pilbara at Port Hedland, and rail lines crossing the NT would transfer coal and iron ore between the two centres.

The project could cost as much as $50 billion and create 20,000 jobs, and the man behind the plan, Shane Condon, said it could be a “game changer” for Australia’s industry.

Condon and the project’s backers, who remain unknown, are funding the $30 million study, which is expected to take two years.

Value of mining equipment plunges

Dark matter at the bottom of a gold mine

Pilbara campus for UWA

The price of second-hand mining equipment has dropped 20 to 30 per cent over the last 12 months, and services companies are finding it difficult to move stock, according to an insolvency specialist.

PPB Advisory said second-hand equipment traders were starting to fall on tough times as the prices for new equipment came down.

“A couple of years ago second-hand

Scientists in the United States are searching for dark matter at the bottom of a South Dakota gold mine as part of a world first experiment.

Earlier this month the world’s most sensitive dark matter detector was lowered into the mine, and it’s now sitting more than a kilometre and a half below the earth’s surface.

The instrument was also placed inside a large water tank and it’s

hoped both measures will shroud it in enough insulation to isolate dark matter that would be undetectable on the surface.

If the test, known as the Large Underground Xenon experiment, goes to plan the data could be used to answer age-old questions about the universe and its origins.

Scientists at the University of California have been working on the experiment for around five years, and it will take several months before the detector reaches its most sensitive level.

Rio to cut billions in spending Mining giant Rio Tinto has will cut over $4 billion in costs over the next two years in response to softening demand in the resources sector.

The company said it planned to reduce its operating and support costs by $4.81 billion by the end of 2014, and exploration and assessment spending would also be cut by $1 billion over the remainder of 2012 and 2013.

Capital expenditure on current projects will also taper off from the current levels set for 2013, and Rio said keeping capex within this margin would save close to $1 billion.

“We are taking further tough action to roll back the unsustainable cost increases of the past few years and are maintaining a relentless focus on improving productivity,” Rio CEO Tom Albanese said in a statement.

Ahead of the company’s investor seminar in Sydney today, Rio said the short term economic outlook for the mining industry was volatile, but it was “guardedly optimistic on China’s prospects”.

The company marked expansions in Pilbara iron ore, and first production at the Oyu Tolgoi copper-gold mine in Mongolia as two key growth areas for 2013.

The continued ramp-up of the Yarwun 2 alumina refinery in Gladstone, which started production in the second half of 2012, was also marked as a key area of growth.

“The longer term picture remains positive, with increasing urbanisation in emerging markets driving strong demand growth across a range of commodities, and a slower supply response from the industry,” the company said. www.miningaustralia.com.au

AD_AMSANJAN_13_R.pdf

Page 1

12/12/12,

9:54

AM

HOW CAN YOU INCREASE BOTH SAFETY AND YOUR PRODUCTION RATE? THIS WAY! If you are in the mining business, you know that an improved safety record means a lot to your employees and your entire company.

This safety mind-set is part of everything we do – from research and product development to on-site service.

Join the movement towards The Future of Mining.

It´s This Way: sandvik.com/thisway

SANDVIK MINING Par t Sales 180 0 1 7263845 | General Enquiries 130 0 1 7263845 info.smc-au@sandvik.com | w w w.mining.sandvik.com/au

AM.JAN13.PG008.pdf

Page

8

6/12/12,

10:01

AM

ENVIRONMENTAL MANAGEMENT

FLOODGATES OPEN on better water management

The mining fraternity is now a major player in the search for sustainable solutions for the treatment and management of water – not just for the industry but the community as a whole. Jamie Wade writes for Australian Mining.

F

rom dust suppression to refining processes and workers’ amenities to name a few, the mining industry is well aware of the importance of water.

It’s a simple equation really: no water equals no mining.

Managing this precious resource has always presented challenges in mining and not just because of its scarcity, according to Chris Huijbregsen general manager for the water sector at UGL – a global and diversified services company operating in maintenance, asset management, engineering and construction.

“Too much water is a concern; water collected in the mines, in dams and from amenities needs to be treated to a standard suitable for re-use or to a quality suitable for discharge back into the environment,” he said.

“Discharges to the environment that breach environmental regulations and basic good care of the can seriously damage a mining company’s reputation – and the industry’s as a whole.

“Miners understand this very well and over the last decade have invested heavily in their understanding of water and water related issues,” Huijbregsen told Australian Mining.

“Quite often they are now at the forefront of product and process development and often have inno8

January 2013

AustralianMining

vative solutions for their particular circumstances.”

Given the remote locations of many sites, the issue of fresh water is particularly critical, says Huijbregsen.

“As mine sites are often in remote areas and as fresh surface water always is a finite resource, most miners are now investing in producing their own fresh water using modern techniques using either seawater or brackish bore water as the source,” he said.

“The treatment processes are well understood and the cost of the desalination equipment is becoming more cost effective.

“Miners are also now viewing the wastewaters they collect as a potential resource and careful management of this resource is more a standard activity in mining.

“While the treatment techniques are becoming more cost effective, producing fresh water is still a costly affair and as mines move from site to site most of the treatment facilities are designed and constructed for mobility. The demand for mobility has driven many innovative and cost-effective solutions.”

Reliability and support

When it comes to the management of water and wastewater, says Huijbregsen, mine operators demand plant 24/7 availability.

“Mine operators require value for money solutions that provide reliability, redundancy and robustness. These solutions are cost effective, but not cheap! The mine operator wants his investment in water to be available 24 hours/day, 7 days/ week and 52 weeks/year.

“The designers/suppliers of the treatment facilities need to understand that they must be able to provide back-up support, spare parts and real time on-line monitoring of the facilities around the clock.

“More miners will outsource the operations and maintenance of the facilities to expert companies that are able to mobilise quality technicians with back up engineering support and research and development capabilities to assist in the solving of site specific challenges.”

Innovation

As the value of water to a mining operation increases, says Huijbregsen, so too is the level of innovation in the management of water and wastewater.

A solid example of an innovation is the use of on-line monitoring of the production facility.

“Real time on-line monitoring of the performance of the facility by those that designed and engineered the facility is proving to be a fantastic step forward in the creation of reliability and robustness of the

systems. This has dramatically improved the availability of the critical resource: water,” Huijbregsen said.

User-friendly and mobile technologies are assisting mine operators further manage water.

“Around the clock observations of plant, raising remote alarms in another state or even another country and instant access to experts to help solve problems creates peace of mind for those that rely on the product,” Huijbregsen said.

“Other developments such as better, stronger and more flexible and cost effective materials, better treatment modules and more sophisticated operating systems have also contributed to improved water and wastewater management practices in mining operations.”

With effort pouring into the science of water management, says Huijbregsen, the mining fraternity is now a major player in the search for sustainable solutions for the treatment and management of water not just for the mining industry but for the community as a whole.

“The industry that delivers the solutions and the hardware also employs dedicated designers and engineers that have made water treatment and management their career,” he said.

“Close cooperation between the mining industry and the water industry would create more innovation and, therefore, even better solutions.” www.miningaustralia.com.au

AD_AMPIRJAN_13.pdf

Page

1

29/11/12,

2:25

PM

Pirtek and Mining... the Perfect Partnership!

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 ASQA 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

Servicing your mining needs anywhere... anytime 24 Hours - 7 Days

AM.JAN13.PG010.pdf

Page

10

6/12/12,

8:58

AM

AUSTRALIANS MINING OVERSEAS

SOUTH OF THE BORDER: A Mexican ‘Opportunidad’ The potential of South and Central America is becoming more obvious for many Australian miners. Alex Heber speaks to one that has made the leap.

O

pportunidad is Spanish for opportunity, something Australian exploration company Cerro Resources is grasping with both hands at their Mexico operations.

And they aren’t alone, in 2011 it was estimated there was already around 300 to 400 Canadian companies alongside about 35 Australian mining companies operating in South and Central America.

At the time Dan Sullivan, trade commissioner at the Australian embassy in Lima Peru told Australian Mining that Australian companies were missing out on valuable opportunities.

“The Canadians are all over South America, which means that Australian mining companies are missing out on the opportunities here, and this worries me,” Sullivan said.

Mexico’s long running mining history dates back to the 1500s when the Spanish first mined the Guanajuato region in 1540.

At the height of production, the La Valenciana silver mine located north of Guanajuato produced 66 per cent of the world’s silver. Over a period of 250 years from the 17th century it continued to produce 30 per cent of global silver and amazingly is still in production today.

In terms of nominal gross domestic product (BDP) Mexico’s economy is the 13th largest globally; combine this with a wealth of undeveloped resources, cheap labour costs, and their 10

January 2013

AustralianMining

involvement in the North American Free Trade Agreement (NAFTA), the viability of Mexican projects looks good.

Cerro Resources managing director Tony McDonald told Australian Mining that resources operations in Mexico have precedence over lots of other things.

“It’s quite a unique jurisdiction, it has a big workforce that understands mining, and they meet international standards,” he explained.

Mexican safety

Back in 2011 Australian Mining reported safety standards in South America as questionable at the best of times, using the example of Bolivia’s Potosi silver mine which experienced on average a major accident every day, with at least three of the approximately 12 000 miners killed every month; mainly due to tunnel collapses and/or toxic gases.

In the case of Mexico McDonald disagrees, saying that most of the western companies operating in the country including Canadians, Australians, and Americans rigidly comply with international standards, so there are no cutting corners “If you don’t meet international standards you can expect to be fairly harshly dealt with in Mexico.

“International standards are a must, workplace health and safety, environmental; all of those things are an absolute must,” he said.

Discussing safety standard compliance in Mexico, Cerro Resources general manager Greg Germon said in their case being a dual international listed company sets a higher benchmark as investors have the expectation of first world operations, no matter where the operation in conducted.

“It sets you to the global best practice because ultimately you’re at reputation risk if your listed, particularly because we’re on TSXV and ASX, we have to adequately meet investor queries about those [safety] aspects of the operations.

“Nobody would be trying to cut corners just to make small wins because in the long term it just doesn’t bear out,” he said.

Combating safety issues head on and managing perceptions are two ways in which Cerro Resources plans to safely operate its Mexican Cerro Del Gallo operation.

“We educate the Australian market by making representational promises, we will meet international standard in terms of workplace health and safety, environmental and all of those sorts of best practices.

“We’ve come a long way these days and it’s the exception rather than the rule that someone will take a risk with people’s lives. You don’t want to do it, you don’t have to do it and we hear of some of those deaths and it’s really unfortunate,” McDonald said.

The fact that Cerro Del Gallo is a brand new open cut mine, not an underground one with legacy issues also plays in the company’s favour when planning safety processes Germon added.

“Safety is normally the number one issue, before profit, before everything else, safety is the number one benchmark, everybody holds themselves to it and I don’t see us as any different,” Germon said.

Cerro’s Mexican venture

Cerro Resources Mexican move is largely being driven by their Cerro Del Gallo gold and silver mine located in the Guanajuato province.

With an expected mine life of 14 years, a low strip ratio, and estimated production of 94,500 ounces of gold each year at $516 per ounce the project is not only looking viable, it will also be of huge financial benefit to Cerro Resources, especially if gold continues at its current rates.

“It’s a large resource, 14 years, about 100,000 ounces a year and has a reasonably low capex,” McDonald stated.

“It’s almost impossible to find 100,000 ounce gold projects that can produce for under $700 per ounce,” Germon added.

“We’re already seeing veins exposed at the surface carrying gold and that’s opportunity,” McDonald said adding that “once we get this project off the ground we’ll have www.miningaustralia.com.au

AM.JAN13.PG011.pdf

Page

11

6/12/12,

7:57

AM

AUSTRALIANS MINING OVERSEAS

plenty of cash to spin off and fund these other projects, it opens the doors to opportunity.”

The mine’s feasibility study was released earlier this year and McDonald said the company is continuing to work towards the mine’s development stage.

“We’ve been firming up to try and get it now to a stage of development,” he explained.

“All of the pre construction work, preparation for permitting, land acquisitions are being done and now importantly we’re working on funding to meet that capital expenditure.

“We’ve had talks with debt pro- They have spent more than two decades in Mexico, working to Australian standards. viders, equity participation and all sorts of things so we’re working our fund our 69 per cent share of it. So some time ago it has left a lasting way towards that now,” McDonald as soon as that happens I think we impression on the industry. said. can move fairly quickly,” McDon“I think the GFC changed the Cerro is currently in the mid- ald said. Cerro’s jump into Mexico nature of things but the metallurgy dle of negotiations with senior gold hasn’t all been smooth sailing: two of any mining project is the cruncher miner Goldcorp, and said they are of the biggest challenges the compa- and you have to convince people, hopeful Goldcorp will finalise the ny has faced to date developing the you have to do enough work on it to deal soon.

Cerro Del Gallo site have been met- make sure you’ve got it right.

“The most critical thing is our allurgy and the timing of the global “Every project is unique, with Goldcorp joint venture partner; financial crisis (GFC). its own set of challenges and the finwe’re working with them to sort out “Financier levels of comfort anciers and others will always want how best to proceed. have gone far more conservative. to see you do more metallurgy than “Once Goldcorp are across the Everyone’s trying to eliminate any you might have thought was necesline then I’ve got a much clearer risk,” Germon explained. sary and that’s what we’ve done. passage determine probably the biggest A D _ to AM T R E F Ewhether B _ 1 2 we’re . pdf PMcDonald a g e 1 added 5 / 0that 1 / although 1 2 , 3 : 2 9“SoP that’s M going to fund 100 per cent of it or the depths of the 1:15:13 GFC were quite issue to continually deal with and Tread-AustralianHorizontal1-2pg2Page 1 12/19/11 AM

our recovery is good, we’ve shown that, the feasibility has been signed off and we’re ready to go,” McDonald told Australian Mining.

Despite these hurdles, McDonald said after more that 20 years operating in Mexico they’re still confident.

“I can honestly say we haven’t had too many surprises.

“We’ve worked in Mexico as a broader group for 20 odd years so we’re pretty comfortable in knowing what we have to do, knowing the standards of what Mexican’s require and I think we’ve been able to execute,” he said.

The Cerro Del Gallo project itself is surrounded by undulating land with a few hills, when looking at the photographs one could easily mistake the location for somewhere in Australia.

“You’ve got the wild mountains in behind where that photo was taken, it’s beautiful country and it does look a lot like Australia,” McDonald explains.

As yet there are no confirmed dates for the project’s development, however McDonald told Australian Mining stage one will consist of a heap leach and when stage two is reached there will be some valleys to fill in with waste.

The worldwide leader for providing solutions to the Explosives Handling Equipment Industry since 1957.

The TREAD Australia Advantage –

TREAD’s local Australian based field service staff provides:

C

M

Field Service • Technical Support • Training Maintenance • Repairs • Calibrations • Truck • Commissioning

Y

CM

ALL TREAD Bulk Trucks Built to Your Specifications

MY

CY

Australian Compliant, Engineered for Maximum Utilisation

CMY

K

BULK LOADING TRUCKS

STORAGE BINS

www.TREADcorp.com www.miningaustralia.com.au

MAGAZINES

AFTERMARKET PARTS

EMULSION PLANTS

BRISBANE OFFICE: TREAD Australia Andre Fouche Business Manager – Australia & Asia afouche@TREADcorp.com

REBUILDS

FIELD SERVICE

PROBLAST

WORLD HEADQUARTERS: TREAD Corporation 176 EastPark Drive Roanoke, VA 24019 USA 540-982-6881 AustralianMining

January 2013

11

AM.JAN13.PG012.pdf

Page

12

6/12/12,

8:23

AM

AUSTRALIAN MINING

The new C

uesta Coal is a junior exploration company making huge gains in Queensland’s coal sector. With key thermal coal projects set to come into production within the next few years, and further drilling and exploration work continuing in the state, the company is set to become a major player in the industry.

And this makes its Chineseowned major shareholder, Guoli, in the fortunate position of being able to be a part of the exploration of coal in Queensland.

Speaking to Australian Mining, Cuesta managing director Matthew Crawford explained that Guoli’s support puts the problem of raising capital out of the equation, allowing the miner to get on with their goal of producing coal.

“It has allowed us to carry on drilling and we’ve done around 13,000 metres this year and increased our resource base by about 200 per cent,” Crawford stated.

“We still have sufficient funding to keep drilling for another 18 months.”

Producing coal

“The goal the company has is that we want to become a producer in a three to five year timeframe and the project that we are targeting to take us into production is Moorlands deposit at West Bowen,” Crawford explained.

Located 25km west of Clermont in the Bowen Basin, the Moorland project stretches over an area of 1000 square kilometres and is in close proximity to already established infrastructure.

Earlier this year the company intersected an 8-10m coal seam with a coal thickness of 24m down to a depth of 250m, with the last resource base measuring at 39.5 million tonnes.

Crawford said the project was due for a resource upgrade in the coming weeks, and was hopeful that the tenure could be fast-tracked into production.

“We want to fast track it into production,” he said.

“It’s a small scale but low stripping ratio, open cut coal deposit and is located close to infrastructure.

“We have a one to one and a half million tonne a year coal production target for Moorelands,” Crawford explained.

12

January 2013

AustralianMining

FRONTIER The opening of the Galilee Basin has created new opportunities for junior miners.

Vicky Validakis reports.

Cuesta is also enjoying good exploration results at its other projects in the region.

“This year we started drilling in about March at our Thorn Hill deposit in the Surat Basin and we increased that resource by 87 per cent from 22 to 45Mt,” Crawford said.

The project is located 15km east of Wandoan with an area of 1753 km2, and has good access to proposed infrastructure with Queensland’s ‘southern missing link’ railway running through the project area. This will allow the area to link up with Wiggins Island coal export terminal. With thermal coal located less than 110m from the surface, Cuesta has flagged the deposit as a low cost option.

While down at its Amberley project in the Clarence Moreton Basin, Cuesta has also intersected a decent amount of thermal coal.

“We took it from five million tonnes up to about fifty-four through some strategic infill drilling.

“The main thing we had to do there was get coal quality data so we did four core holes and got all the right results from that which was great.”

Likewise, the Yellow Jacket project in the Galilee also shows much promise covering a total area of approximately 4000km2 extending in a south-easterly direction from the township of Pentland.

Yellow Jacket has an eight to ten year timeline before operation is expected to begin, but Crawford said he considers the project one of the company’s flagship operations.

The company has completed twelve holes for approximately 2000m, with a further six to ten open and cored holes planned and has interested coal 130m from the

Cuesta is currently exploring in the resource rich Galilee Basin.

surface with a further exploration target of 2-00-1000 million tonnes.

Crawford points out that at the Yellow Jacket Project, railway corridors are only 30kms away.

“In the grand scheme of the Galilee Basin that’s not very far away.”

Keeping costs down by developing tenures located near already established infrastructure means the company can spend more time and resources on exploring, making them the ideal junior company to invest with.

And with the recent signing of a joint venture with QCI Galilee, a wholly owned subsidiary of Hancock Prospecting, to develop the Eastern Galilee Snake Creek project, Cuesta is in a very sturdy corporate position.

Under the terms of agreement, QCI is able to earn up to a 51 per cent share if they spend $3 million.

With $20 million to last Cuesta for the next 18 months, and a joint venture with one of the biggest players in the Queensland coal sector, Cuesta is making its name through solid capital backing, and the resource rich tenures it is exploring.

It has another project underway near Emerald in the Western Bowen, where the company plans has planned twenty open holes and four cored holes in 2013 to define seam thickness, stripping ratios and coal quality.

“What we’ve tried to do is set up the company so that we’ve got a pipeline of projects,” Crawford explained.

“Over a fifteen year period that will make the company quite large.” www.miningaustralia.com.au

AM.JAN13.PG013.pdf

Page

13

5/12/12,

9:14

AM

AUSTRALIAN MINING

Mining booms leads to crime boom Massive mining machinery is now the target of organised thieves.

O

rganised crime gangs are stealing millions of dollars worth of equipment from Queensland mine sites, a report by the Crime and Misconduct Commission (CMC) has revealed.

In a special report it said heavy equipment theft was on the rise in QLD, and the trend was expected to continue as the mining and construction sectors expanded.

“Stakeholders suggested the increase in thefts could be attributed in part to the Organised crime has targeted QLD following the mining boom, yet WA has mostly avoided the problem. mining boom and associated infrastructure projects in not been recorded, despite stolen equipment from QLD secure locations, where one Queensland,” the report said. the state experiencing similar to interstate and overseas master key could operate mul“The expansion of the growth in its industry. So the markets,” it said. The profit- tiple pieces of equipment, was mining and construction in- question remains – why has ability of equipment theft, also marked as a contributing dustries creates a larger mar- crime targeted QLD’s min- which is of high value and in factor. The CMC also said ket for stolen heavy equip- ing industry? high demand in interstate and some gangs were using their ment, in terms of both supply “Organised networks may overseas markets, was seen as knowledge of car theft and and demand.” view QLD (and the other east- a contributing factor to the rebirthing and transferring It noted a similar in- ern states) as a more attrac- rise in crime. The vulnerabil- it to heavy equipment theft. crease target was The report said some gang A D _inA Mequipment N O R F E Btheft _ 1 0 tive . pd f Pbecause a g e they 1 per1 / 1 5ity/ of 1 0equipment, , 5 : 2 which 0 PM from mine sites in WA had ceive it is easier to transport often left in isolated or un- members were involved in

www.miningaustralia.com.au

the construction and mining industries or had “links to industry insiders,” and such links made it easier for gangs to gain access to equipment.

Speaking to Australian Mining one commentator who worked in the Queensland mining industry stated that “this doesn’t surprise me in the least, I’d seen (and heard) a lot of this type of activity going on; but as always many seem to turn a blind-eye to it.

“In many instances it’s a case of ‘shut your mouth and and keep your own slate clean’ ”.

According to the report QLD heavy equipment thefts increased from 132 in 2007 to 231 in 2011, a 75 per cent increase. Regional QLD, with its agriculture, mining, and large infrastructure projects was the heaviest hit, and Toowoomba, Mackay, and Rockhampton marked as the “hot spots”.

AustralianMining

January 2013

13

AM.JAN13.PG014.pdf

Page

14

5/12/12,

1:16

PM

AUSTRALIAN MINING

Advancing the cause An advance from a major North American company has put new gold projects in the works, Victoria Kemp reports.

W

ith the future of gold bright, now is the time that many juniors are looking towards the metal to make their fortune.

Aphrodite Gold is one of these much smaller players in the industry, but is determined to prove itself and is focused on becoming a significant gold provider through its Aphrodite gold Project.

And prove itself it has, garnering the attention of massive Canadian firm Franco-Nevada, which has wielded the power of its US$8.3 billion market cap.

Last month Aphrodite Gold announced that Franco Nevara Corporation has advanced the company $2500 000 against a future royalty of 2.5 per cent over production from the Aphrodite gold project near Kalgoorlie, Western Australia.

The funding will be used to accelerate exploration and a feasibility study, with production expected to commence in 2014.

Canadian Franco Nevara is the world’s largest buyer of gold royalties and stream, and this represents a significant endorsement by a major North-American resources investment group.

Located in Australia’s premier gold producing province – the Eastern Goldfields, and only 65km north of Kalgoorlie, the project was granted five mining leases, totalling 30km2 of potential gold deposits.

Current JORC resources estimate the deposit to contain more than one million ounces of gold.

The site is positioned in close proximity to existing infrastructure, treatment plants, and mining services.

With ready access to facilities and workers, Aphrodite is well-placed for commercialisation.

14

January 2013

AustralianMining

A scoping study completed in February 2012 delivered encouraging results for the miner, and indentified Aphrodite’s potential to become a significant cost-competitive gold producer with potential to increase production and mine life as resource inventory expands.

Initial metallurgical program confirmed favourable characteristics for extraction, indicating gold recoveries of more than 90 per cent are achievable, while actual recoveries may yield extra depending on ore type.

The Franco Nevara advance, in addition to monies raised during the company’s recent share placement, will be used to help finance Aphrodite’s current prefeasibility study on the site, which is expected to be completed by mid 2013.

Aphrodite will then begin a definitive feasibility study with a view to having

production underway by late 2014.

Some of these funds will also be used to finance further exploration in the area.

Aphrodite told Australian Mining that the advance “bears no interest, requires no repayments for five years and which, provided production at the gold project commences within that time, automatically converts to a 2.5 per cent royalty”.

The deal is set to be quite favourable both companies, with the ‘gold rush’ of recent years expected to continue, thanks in part to the ongoing European debt crisis.

Gold is one of the few commodities that tend to perform better during times of economic uncertainty, as it can reasonably be considered a ‘safe bet’.

Investors know that they are putting their money into a product that is consistently valuable and free from

Recent studies have shown gold recoveries of more than 90%.

It is uncovering prospects in historically fertile areas.

many risks associated with other markets.

Many expect the price of gold to continue to rise from its current price of US$1719.70 per ounce in coming months.

Barrick Gold’s president and CEO, Jamie Sokalsky, recently suggested that the gold price may reach $2000 in 2013, and at a recent WA Mining club gathering, it was suggested that it may even reach highs of $5000 in the future.

But there is a catch – high gold prices increase the incentive for further, deeper exploration which in turn pushes up production costs and effectively decreases the value of gold for the mining company.

This doesn’t seem to be too much of a concern for Franco Nevara, with their involvement seen to be indicative of Aphrodite’s ability to compete effectively in this market, validating the commercial appeal of the project and assertions that Aphrodite is a company significantly undervalued by their peers.

“We are very pleased to partner with Aphrodite for this investment which will

contribute towards the prefeasibility study on the Aphrodite gold project,” Franco Nevada’s Australian managing director, Kevin McGellicott said McGellicott also indicated an interest in providing additional funding down the line.

“As the provision of stream financing for development stage projects is a growth area for our company, we would in future consider stream financing a portion of capital expenditure upon completion of a positive definitive feasibility study.”

For a company such as Aphrodite, the opportunity to partner with a major multibillion dollar corporation establishes them as a small, but formidable, player in the industry.

“We are delighted at the involvement of Franco Nevada, which we see as a positive endorsement of the Project” Aphrodite chairman Peter Buttigieg stated.

“Our management will keep them apprised of progress, and we will be pleased to offer them the opportunity to provide the required capital expenditure for production.” www.miningaustralia.com.au

AD_AMWIRAUG_12.pdf

Page

1

10/07/12,

10:42

AM

SURFACE MINING AND CRUSHING – TECHNOLOGY AND RELIABILITY

Wirtgen Surface Mining: • World leader in surface mining technology • Ove r 30 years of experience • Range of materials: coal, gypsum, salt, limestone, bauxite, granite, iron ore • New 4200 SM: annual mining capacity of 12 million t in soft rock (e.g. coal)

Kleemann Crushing: • Combining process knowledge, technology, high quality and product support • Wide range of crushing and screening equipment for quarrying and recycling • Range of materials: limestone, standstone, shale, granite, basalt, diorite, concrete, asphalt, building rubble

ROAD AND MINERAL TECHNOLOGIES

WIRTGEN AUSTRALIA 2-12 Sommerville Circuit · Emu Plains NSW 2750 PO Box 21 Penrith NSW 2751 · Tel.: +61 2 4735 2699 A_NL_Mining/Crushing_AUST.indd 1

The market-leading brands Wirtgen, Vögele, Hamm and Kleemann offer strong technologies for road construction and for the mining and processing of mineral raw materials. Wirtgen Australia provides best-in-class, professional consulting and customer services. Clear philosophy, clear benefits for you. www.wirtgen-aust.com.au

Queensland Yatala, Brisbane / Gold Coast Tel.: 07 3382 7593

Victoria & Tasmania Knoxfield, Melbourne Tel.: 03-9800 5268

Western Australia & South Australia Wangara, Perth Tel.: 08 9309 9666

New Zealand Wellington Tel.: 64 2744 26555

18.03.10 16:06

AM.JAN13.PG016.pdf

Page

16

30/11/12,

10:11

AM

EXPLORATION

Juice for the JUNIOR and EXPLORERS

MINERS

A new report has outlined the difficulties junior miners are having establishing themselves.

Alex Heber writes.

T

he release of the latest JUMEX report is changing how the market is viewing juniors.

Grant Thornton’s JUMEX report looks at ASX listed junior mining and exploration companies with a market cap of less than $500 million.

The company’s national head of corporate finance Paul Gooley led the research behind the report which found that only 4 per cent of ‘junior miners’ were in the mining or production phases; the majority are still exploring.

Funding issues out into the open

Junior miners and explorers in their early phases don’t often receive a lot of attention from media and government, largely because they’re busy exploring and searching for funding to continue the development of their assets rather than sending out press releases to various me16

January 2013

AustralianMining

dia outlets. The report found these companies are facing a number of constraints, including the availability and instability of equity capital, market volatility, and government red tape and policy with the introduction of the carbon tax and Mineral Resources Rent Tax. Gooley said the availability and difficulty of sourcing funding are major challenges, with 68 per cent of companies surveyed saying they expect to raise capital in the next 12 months.

“It’s very challenging conditions and has been for the last 12 months, we don’t see that dramatically changing in the next 12 months, given where we are in terms of the market.

“The underlying message is that companies need to focus on the opportunities in the market, there’s going to be a lot of corporate action, a lot of acquisition op-

portunities, and there are still a lot of opportunities out there,” Gooley said.

Murray Hutton, technical manager at Geos Mining stated that most juniors are struggling for funding at the moment and that “reports of short term doom and gloom lose sight of the bigger picture.

“Many [juniors] have very good exploration projects, but the general feeling is that ‘we can’t hope to get funding in this market’ and so they have been forced to look overseas for investors,” Hutton told Australian Mining.

Opportunities for junior miners and explorers

Talking about opportunities in the market, Gooley spoke about the experience of Western Australian based nickel and copper miner Sirus Resources who were down to their last drilling exercises funding would allow when

they managed to hit a large nickel seam. Subsequently their shares rose 4500 per cent in two months from .6 cents in July to peak at $3 a share, valuing the company at more than $600 million.

“You need to keep focusing on your core, you need to keep exploring, you need to be true to your strategy, because that’s why everyone is in this game, it’s about hitting that big seam and despite the issues if you remain core to your strategies there are opportunities,” Gooley said.

With an abundance of opportunity competition for capital is on the rise, forcing junior mining companies to look into private placement and alternative funding solutions both locally and internationally as well as taking extensive cash preservation measures and entering into joint ventures or considering takeovers.

According to Hutton, for those junior explorers with cash, the current situation is a bonus, particularly with the availability and pricing of services like drilling contractors, geophysics contractors, and technical personnel.

“It is a sad irony that the best time for a junior company to be exploring is when the market is in the doldrums.

“By the time the market improves, these services will again be in short supply relative to demand, as those companies with operating mines will have the cash to spend on their own exploration programs,” Hutton said.

Long term thinking needed

Hutton warned that there still needs to be a considerable shift from short term to long term investment.

“Exploration is a longterm venture, from inception to development takes, on avwww.miningaustralia.com.au

AM.JAN13.PG017.pdf

Page

17

30/11/12,

10:12

AM

EXPLORATION

erage, at least 10 years and an exploration project would go through many stages along the road to mine development.

“Having access to funding at all stages is important and the investment community needs to understand that.

“I would encourage financial advisors and the media to focus on long-term potential rather than whether today’s price is lower than yesterday’s,” Hutton said.

Despite this, it is a great time for junior miners to be entering the market Hutton explained.

“From a technical point of view, this is a very good time for junior explorers to be entering the market. Availability of services and contractors is very good and prices have come down significantly, especially for drilling contractors.

“Twelve months ago, drilling rigs were in short supply and the contractors could demand very high prices for their services. Junior explorers that are short on cash will need to offload some of their projects in order to stay viable, sometimes at prices well below their true value. Therefore, it is definitely a buyer’s market,” Hutton said.

The report also flagged unstable commodity prices as a concern for junior mining companies. Since the April 2011 coal peaks, thermal coal has seen a price drop of 30 per cent and coking coal experienced a drop of 40 per cent. Such a significant fall in prices has seen companies redeploy resources, refocus business activities to take advantage of production opportunities, and undertake in sourcing of tasks.

Yet Hutton disagrees, saying “all of the commodities presented in [Grant Thornton’s] report have seen price rises over the past three years and some have more than doubled! And yet, what was pointed out was that ‘the average price of the vast majority of commodities was considerably lower during 2012 than in 2011’ ”.

He added that “these price drops affect the producers, not the junior explorers. Just because BHP Billiton, Xstrata, www.miningaustralia.com.au

Deregulation and streamlining

Juniors should focus on their core strategy, their geology, and hitting ‘the big seam’.

and Rio Tinto have shelved major developments and mine expansions, junior explorers should not be viewed as being in the same boat”.

Flexibility and informed decisions are the best way forward

Talking about junior miners, Dan Peel, Australian general manager of advisory consulting for Runge Limited, said it is important for these companies to be able to make the right decision quickly.

“Juniors need to keep exploring, they need to keep putting holes in the ground and they need to keep developing their asset. Juniors will only stop doing work at

their own peril,” Peel said.

He recommended junior miners take the time to put together a log book in order to efficiently access capital, detailing quantity of exploration, location of the asset, resource base, grade, and quantity as well as the approach you will take to test and develop the asset.

Peel went on to say the log book should also include what work has been done, what still needs to be done, and who the management team are.

“Recently we have seen two companies who were given the opportunity to gain capital from Asian investors, one company came along and said ‘here’s the geology and she’ll be right’.

“The other company gave a very detailed approach, with geology, a business plan and the process in which they plan to do it.

“The first company didn’t even get through the first gate, the second got through with flying colours.”

Peel acknowledged competition for capital is on the rise, however he stated that there is still funding out there, it’s just gotten smarter and has lost its appetite for risk in the market.

“There is still plenty of capital around and we’re seeing that capital come off somewhat slowly, it’s still getting to the quality assets and the quality management teams,” Peel said.

Now is a great time for explorers to be entering the market, Hutton says.

Funding difficulties aside, the report also highlighted issues around government process, Australian Mining reported a push from industry leaders to cut the red and green tape in Queensland, where in some cases prospective miners have to complete the same paperwork two or three times for different government bodies.

Member for Mount Isa, Robbie Katter, is pushing through the legislation to unlock the land to miners.

Katter has tabled the Environment Protection (Greentape Reduction) and other Legislation Amendment Bill 2012 to assist both miners and farmers.

The amendment seeks to make changes to a wide number of different existing acts, including the Aboriginal Cultural Heritage Act 2003, the Mineral Resources Act 1989, and the Petroleum Act 1923.

A major focus of the bill is the “streamlining and clarifying [of] information requirements”.

Hutton told Australian Mining that cutting costly bureaucratic processes like this will go a long way towards assisting junior miners and explorers in their early phases.

“State governments are placing more bureaucratic, OH&S, and environmental obstacles in their way, which takes up a large slice of what little funding they have,” he said.

Urging for collaboration between the state governments, Hutton recommended a standard set of mining and exploration procedures needs to be drawn up.

“The various State governments really need to get together and come up with a standard set of procedures with regards to mining and exploration.

“At Geos Mining, we have dealt with projects in all States of Australia and coming to grips with differences in the rules and regulations between States is an administrative nightmare,” he said.

AustralianMining

January 2013

17

AM.JAN13.PG018.pdf

Page

18

6/12/12,

10:05

AM

INDIGENOUS MINING

Mining the MIDDLE CLASS

M

illions of dollars are spent on Aboriginal programs each year, but finding out just how effective these initiatives are depends on who you ask.

According to Professor Marcia Langton, chair of Australian indigenous studies at the University of Melbourne, the mining industry is helping to pull many Aboriginal Australians out of poverty.

By Langton’s count around 7000 Indigenous people work in Australia’s mining industry, and like most other people in the sector, they’re raking in a decent wage for their work.

But more than the money, these people have been trained in skills they can use for life.

The Australian mining industry has been working towards an unofficial goal of pulling many Indigenous Australians out of poverty.

Andrew Duffy reports.

Skills pay the bills

Aboriginal Australians find to the next generation. school, they acquire assets,” According to Langton, once work, the skills, education, “The outcome of that is A D _ A MMA X N O V _ 1 2 . p d f Pa ge 1 1 7 / 1 0 / 1 2 , 1 0 : 1 4 A M she explained. And while the cycle is broken and and prospects are passed on that they send their kids to there’s some pessimism

about how much impact miners have made, Langton said the improvements over

Employee Benefits Asset Management

ATTRACTING, ENGAGING AND RETAINING SKILLED EMPLOYEES:

)PX EPFT ZPVS FNQMPZFF CFOFmUT QSPHSBN TUBDL VQ Maxxia works with you to develop and manage specific salary packaging programs for mining and resources industry employers, with benefits including: t 'J'P CFOFmUT t /PWBUFE WFIJDMF MFBTJOH t -"')" t 3FNPUF BSFB IPVTJOH CFOFmUT

Find out more, visit maxxia.com.au, or call us on 1300 728 801 to speak to a Maxxia representative in your state.

Maxxia Pty Limited ABN 39 082 449 036 Authorised Representative (No. 278683) of McMillan Shakespeare Limited (AFSL No. 299054)

18

January 2013

AustralianMining

www.miningaustralia.com.au

AM.JAN13.PG019.pdf

Page

19

6/12/12,

10:08

AM

INDIGENOUS MINING

the last ten years had been larger than many realised.

Mining companies in Western Australia, which operate in regions with high indigenous populations, are a case in point.

In the mid 1990s less than half a per cent of Rio Tinto’s workforce was indigenous.

Now, along with other resource giants in the Pilbara, it’s made significant inroads into bridging the gap.

Last year Rio employed 1100 Aboriginal people, representing around 11 per cent of its total WA workforce, and the company is hoping to move to 20 per cent by 2015.

One of the main drivers of this has been the development of Rio Tinto Iron Ore’s Indigenous ‘work-ready’ training program, which has seen the miner become the single largest employer of Aboriginal and Torres Strait Islander people in the country.

It began as a local initiative from the communities near Rio’s Pilbara mines; and eventually grew into these pre-employment training programs that actively provide literacy, numeracy and health and safety education as well as driving training, usually through a government funded college, to Indigenous people looking for employment.

“Our work-ready programs aim to give unemployed Aboriginal people the skills to gain full-time, meaningful employment. We adopt a no-barriers approach to address common obstacles such as lack of driving licences, poor literacy and numeracy, limited training and employment opportunities, family life balance, fitness for work, and work adjustment issues,” Rio Tinto Iron Ore explained.

While Rio Tinto admits the training is tailored to its business needs, graduates are welcomed to take jobs with contractors or outside the mining industry.

Rio Tinto told Australian Mining they are committed to growing sustainable indigenous business capacity, training and employment opportunities.

“Presently we are benefiting from a significant Aboriginal contribution to our www.miningaustralia.com.au

“While the numbers remain small, this change heralds an economic future for Aboriginal people unimaginable 50 years ago.”

Underpinning these advancements is native title law, which most experts credit with clearing the path toward fair negotiations between miners and Aboriginals.

ButwhileLangton’sclaims are encouraging news, indigenous disadvantage is still high in mining regions, and some Aboriginal groups (such as YAC) don’t think miners are doing enough to help improve the situation.

Tough times

Rio Tinto has been one of the largest employers of Indigenous workers in the country.

expansion program in Western Australia,” the company stated.

In July 2011, 30 Aboriginal people graduated from one of the Roebourne workready programs, of these 29 moved into employment at a Rio Tinto site, and more than half of this number were women.

More broadly, since 2006, more than 160 Rio Tinto work-ready program graduates have achieved resource industry employment, 37 per cent of which are women.

However it is not just Rio Tinto focusing on growing Indigenous involvement.

In the Pilbara BHP Billiton employs 10 000 people, with just under 1000 of those being Aboriginal.

Fortescue Metals Group, the region’s other big employer, has also brought its indigenous workforce up to around 10 per cent in Western Australia.

Fortescue Metals Group’s executive chairman, Andrew Forrest, is also well known for his Generation One

foundation, which is aimed at ending the current disparity between Indigenous and non-Indigenous Australians in a single generation through education, training, and employment – working closely with the Australian Employment Convenant to aid the rise of Aboriginal Australians.

“The emergence of an Aboriginal middle class in Australia in the last two to three decades has gone largely unnoticed,” Langton said in ABC Boyer lecture recently.

Around 10 per cent of BHP Billiton’s workforce in the Pilbara are Indigenous.

Over half a decade ago a study published by the Australian National University highlighted the chronic social problems facing indigenous Australians in the Pilbara.

Six years later very little has improved on those fronts.

Statistics showed a vast majority of Indigenous adults did not have full schooling, or a qualification, and around half remained outside the labour force.

They also showed many Indigenous adults (especially young males) had been arrested and incarcerated, and others were suffering from chronic health problems that required strict management.

“Despite 40 years of substantial economic development in the Pilbara region, the labour force status of indigenous Pilbara residents has barely altered,” researchers concluded.

Such sobering statistics prove that while the mining industry has played a small part in contributing to indigenous participation, the problems run deep and require attention from all stakeholders.

Langton is right to herald the beginnings of an Aboriginal middle class in Australia, and other research shows this trend has expanded beyond those attached to the mining sector.

But for the moment this resurgence is in its early days, and there are still plenty of problems that miners, indigenous groups, and governments alike need to work on.

AustralianMining

January 2013

19

AM.JAN13.PG020.pdf

Page

20

30/11/12,

10:17

AM

MINERALS PROCESSING

CAPTURING solid changes New processing technology is cutting costs and aiding solids capture.

T

he goal of all mineral processors is to do more with less, and to make more from less.

This is especially the case as the mining boom slows and companies begin to cut costs where they can.

So a tried and tested development by Nalco, which is set to improve solids capture by up to 40 per cent while also cutting costs, is the first in a wave of innovation in this newly financially restricted arena.

According to the company, its recent development in trihydrate flocculant technology for alumina processing plants has now been released internationally following a number of site plant trials.

Dubbed ‘HyClass’, and first presented to the industry at the 9th International Alumina Quality Workshop in Perth last year, Nalco claims that “it represents the first major breakthrough in trihydrate flocculant technology since such programs were introduced into Bayer Process alumina processing.

“Based on laboratory testing and the results from these trials, this new tech20

January 2013

AustralianMining

nology is able to deliver underflow density increased of up to 20 per cent along with tangible cost savings and environmental benefits.”

The concept of hydrate flocculants isn’t new, having been used in the industry’s alumina trihydrate classification circuits for around two decades.

Usually dosed into the secondary overflow launder or tray feed lines, they improve overflow clarity, increase settling rates, and improve general overflow composition and flow.

However while they have been successful in alumina processing, the rising cost of production as well as the constant need for improved productivity and efficiencies is driving the demand for better technology.

The fact is the mining industry is unable to spend money in the freewheeling way it has over the last two years, and has to now worker smarter – looking to minimise input and maximise its output.

Nalco stated that HyClass is the result of this new demand.

Importantly for the industry, “the trials, carried out under operational conditions, actually mirrored the results first recorded in the laboratory test programs,” it said.

“Reports from the site trials indicate a consistent improvement in fines capture, faster settling rates, and tangible improvements in underflow rheology – which will contribute to improved productivity, as well as cost savings.”

During these trials the new polymer yielded the same overflow solids ratio

as achieved with the formerly used product – “but with the dose rate reduced by up to 40 per cent,” Nalco stated.

“Conversely maintaining the dose at the old rate would see a direct increase in production; at the other end of the equation overflow solids reductions in the range of 30 to 50 per cent were achieved, depending on the quality of the base product.”

To understand the full impact of this over a year, for a standard refinery producing around one million tonnes of

The new technology minimises scale buildup, cutting downtimes.

alumina per year, with a circulation flow of 1700 kilolitres per hour, the results are substantial.

Its captured overflow solids would provide a direct production increase of more than 3000 tonnes per year.

On top of this the improvements in yield due to the increase seed tonnage and surface area translates to an increase production of around 1500 tonnes a year.

At a net treatment cost of $60 000 per year, when the old treatment is replaced at an equivalent dose “this is a 500 per cent ROI”.

Importantly however, as many mines look to reduce the wear on their equipment and get longer life out of their existing machinery and fleets, “this new technology has been shown to extend processing equipment life, including rakes and vessels”.

The company went on to say that “with the new technology capturing all the fines, scale build-up is virtually eliminated from processing equipment; this in turn will reduce maintenance costs and the number and length of downtimes. www.miningaustralia.com.au

AM.JAN13.PG021.pdf

Page

21

6/12/12,

11:12

AM

MINERALS PROCESSING

Preventing processing pains A new discovery has uncovered the culprit behind gel-forming in processing.

M

inerals processing has always been a mix of art and science.

Getting the right outcomes has been as much about understanding the metals and minerals, and the right moment to act.

Yet sometimes it doesn’t always go to plan.

Miners and mineral processing professionals often faced the risk of turning minerals to jelly during processing – but were unsure of why.

Until now.

New research has uncovered why metals act in this way during processing, and provides processors a relief from this fairly common occurrence.

The University of South Australia’s Ataollah Nosrati has found that sticky gel like materials often form during the liquid processing of mineral ores into concentrated slurries, when clays in the deposits release elements The breakdown of silicon compounds is behind gel-forming in processing. such as silicon and aluminium.

He found that this tends to occur in mixing tanks at high Nosrati discovered that increase in throughput with a temperatures under acidic or al- due to their high solubility at greatly reduced number of plant kaline conditions. elevated temperatures under shutdowns; the decreased need “Zinc silicate ores, for ex- acidic conditions, clay based for cleaning the mixing tanks ample, are typically cooked at minerals release high amounts would also increase safety”. between 50° C and 80° C un- of gel-forming elements into the Nosrati added that “the der very acidic conditions for a processing solutions. research paves the way for encouple of hours,” Nosrati said.

He explained that “if we hancing our ability to process And on occasion the break- can prevent or mitigate this it complex, low grade ores of copdown of the attached silicon would lead to a higher recovery per, gold, nickel, and cobalt, A D _ A M WA DSE P _ 1 2 . prate d f ofPvaluable a g e 1metals, 2 2 /lower 0 8 / 1which 2 , contain 1 0 : 0 silicates 6 A Mand alucompounds causes everything to thicken into a gel. operating costs, and a dramatic minosilicate clays”.

www.miningaustralia.com.au

Mineral processing contracts FLSmidth has won a huge contract with Minera Los Pelambres to provide mainteinance for its processing plant in Chile.

The five year, US$ 190 million contract sees it provide maintenance services for MLP’s copper and molybdenum plant in central Chile.

It is a five year extension of FLSmidth existing maintenance contract that dates back to the turn of the century.

All major process equipment at the plant has been supplied by FLSmidth, starting in the late 1990s and with subsequent additions in 2003-2007.

The Pelambres plant processes around 175 000 tonnes of primary and secondary copper ore per day, according to the company.

Thiess has also been awarded contracts for BMA’s Caval Ridge coal mine in the Bowen Basin.

The contracts, valued at around $220 million, are for the construction of a coal handling and preparation plant and rail loop, which are approximately $125 million and $95 million in value respectively.

It follows the award last year of a $180 million contract for Thiess at Caval Ridge which sees its provide earthworks at the site, including the construction of haul roads, the early works for a coal stockpile and conveyor area, and drainage infrastructure and creek diversions.

Bruce Munro, Thiess’ managing director, explained that “we’re already delivering major site preparation and drainage workers at Caval Ridge; the addition of the CHPP and rail facilities further showcase our offering”.

The CHPP contract will be carried out by Thiess’s specialist industrial projects team.

The rail contract includes engineering design and the project will comprise of earthworks and excavation ahead of track lagging and installation of signaling, overhead power, and communication systems.

While Thiess will construct the CHPP, Monadelophous will provide its structural, mechanical, piping, and electrical works.

It was awarded the $100 million contract by BMA in the same month.

AustralianMining

January 2013

21

AM.JAN13.PG022.pdf

Page

22

30/11/12,

10:22

AM

ADAPTING FOR THE FUTURE

Four “MUST-HAVE” productivity improvements

T

o support these greater levels of efficiency and automation, software and business processes need to transform alongside physical systems.

This change is taking the form of greater integration, visibility and “intelligence” within and among operational technology (OT) production control systems and information technology (IT) that manage the company’s critical assets, logistics, planning and operations.

The result will be unprecedented agility in response to changing conditions in the operations and to both supply and demand fluctuations.

As the convergence of IT and OT brings more and more information from real-time systems into IT software, these four are among the ”must-have” benefits that will enhance efficiency, responsiveness and profitability across the mining value chain: 1. Intelligent production 2. Intelligent response to critical asset condition 3. Demand-driven planning 4. Reduced energy consumption and waste

1. Intelligent production

Production line processes have a major bearing on overall productivity. If mining companies are able to precisely optimize production functions based on real-time demand and market conditions, they can achieve significant improvements.

Take, for example, the optimization of dosing and flow rates. While many miners already have Advanced Process Control (APC) solutions automating the management of dosing and flow rates in real-time, most are unable to easily align this data with the realtime conditions out in the market.

For instance, miners are unable to connect information on relative product pricing, data on feed material and information from sales contracts, because this information is stored in disparate systems – often in a completely different department than the control room operators.

With the convergence of these IT systems and the process control OT, the APC can refine the set points to maximize returns for the current 22

January 2013

AustralianMining

In the second part of our two part series, John Jessop and Eduardo Gallestey* discuss the path towards productivity.

feed material and product pricing based on information from the sales system driven by the global pricing index.

To further improve productivity, on-stream analysers in the plant can be connected to reconcile actual feed with the model provided. The net result is that miners are able to increase plant recovery and optimise the product mix based on market pricing.

2. Intelligent response to realtime asset condition

Failure of a critical production asset can have catastrophic impacts on the ability to meet heavy production targets. Consider the failure of the main conveyer out of a mine – failure could result in losses in production totalling hundreds of thousands of dollars per hour. While comprehensive asset management strategies backed by an Enterprise Asset Management (EAM) system fit-for-purpose in mining, along with regular inspections, can go a long way to preventing failures in critical assets, the latest technology enables miners to take this one step further.

As IT and OT converge, more

real-time data on asset condition will be available to streamline maintenance effectiveness, enabling condition-based monitoring.

When business analytics are applied to this wealth of real-time data, miners can get high-value insights into the real condition of these critical assets.

In the case of the above conveyer, if the temperature sensor was to detect an over-current condition, an alarm would be generated and the control system could slow the drive to reduce risk.

When integrated, these OT systems could connect directly into the IT systems without operator intervention and automatically raise a work order with the nearest crew.

Once the crew completes the repair, the completion could be instantly reported, allowing the control system to return systems to normal in the shortest possible time.

Integration of condition monitoring, inspection data and work processes enables a dynamic, highly automated reliability centered maintenance (RCM) strategy. Asset management is optimized not only in relation to maintenance efficiency, but

also relative to a holistic assessment of priority based on business impact and business rules.

The ability to apply predictive analytics to a combination of operational and information system data automates what would otherwise be a time-consuming process involving multiple decision-makers, plus a reliance on a high degree of decisionmaking skill and experience to recognize and prioritise critical factors.

Ultimately, condition-based monitoring makes high-reliability asset management strategies more pragmatic and cost effective.

Let’s look to another scenario that highlights the critical issues surrounding the asset management lifecycle for a mill.

Analysis of real-time process data can flag a potential issue when certain operating conditions (e.g., load greater than 95 percent for given ore hardness) increase the mill wear and tear – risking failure and production loss. With this information, mill operations would be automatically adjusted to either optimise ore blending, or to avoid the risky operating conditions when the ore has undesirable properties. Along with these imwww.miningaustralia.com.au

AM.JAN13.PG023.pdf

Page

23

30/11/12,

10:24

AM

ADAPTING FOR THE FUTURE

mediate actions, work orders would be triggered to analyze the problem root cause. The result will be less downtime and more production. A further advantage of IT/OT integration is that over time asset historical data becomes increasingly rich, enabling organizations to better understand the true condition and health of its assets and then adjust its operations in real-time for better overall performance.

Futhermore, the direct linkage of asset condition monitoring data with inspection/work data stored in the EAM system helps build stronger business cases for replacement versus ongoing maintenance of an asset, for instance.

3. Demand-driven planning

The difficulties associated with coordinating supply and demand across the mining value chain are well known. Many mining companies experience bottlenecks in their supply chain processes, which can delay deliveries. This delay can lead to increased operating costs and a negative impact on profitability.

The mining supply chain extends from the extraction of raw materials to the transport of products to the end customer. To achieve production and productivity targets, mining companies need to achieve high operational performance and efficiency across supply chain processes.

Among the principle causes of supply chain bottlenecks are difficulties in inventory planning, output planning and demand forecasting.

These challenges in dynamically driving supply in relation to demand often result in inefficient production flow, large stockpiles and, incorrect product grades available to the customer.

Conversely, better integration and automation across processing plant operations, mine planning and asset maintenance/management ensures the right product is available at the right time and equipment maintenance can be scheduled to minimise impact on production schedules while maintaining the required level of availability.

What is required is a unified management view of data from both IT and OT sources that offers visibility into all production variables including delivery contracts (demand), current inventory, mine plans, equipment availability and transport schedules.

To further anticipate demand, this information can be supplementwww.miningaustralia.com.au

ed by market-based demand signal information such as stock levels, customer demand trends, fuel and commodity pricing.

With this level of visibility, production plans can be optimised. In a coal mining value chain, for instance, visibility into real-time conditions can be provided by online coal quality analysis sensors. When these sensors discover that the actual blend deviates from the target blend, a control sequence could automatically be triggered.

This control sequence would use the inventory management system and its data on the stockpile composition to realign the reclaimer’s actions and correct the blend to meet the customer’s specification.

The result: production within specifications, with no penalties and guaranteed customer satisfaction.

flow rate data with supply chain inputs can reduce energy consumption by mill drive systems, while increasing overall production and grinding efficiency.

In another scenario, the targets for grinding section would be automatically selected according to the current ore properties, its expected composition in the near future, and the overall effect on the flotation plant performance. This enables significant energy savings due to less grinding effort whenever the ore characteristics allow for it.

The convergence of IT and OT can reduce mining energy demands in a number of ways.

Examples include: • Understanding the energy profile of a site (where and how energy is used for extraction, conveying and hauling, and what opportunities

It is about working towards the convergence of IT and OT systems across mining.

This holistic view enables the full implications of short-term, medium-term or operations recovery decisions to be understood, improving the overall performance of the entire operation.

4. Reduced energy consumption

Energy efficiency fundamentally helps mining operations reduce costs. It can also help improve overall productivity and support compliance with environmental mandates.

Improvements in energy efficiency can be driven not only by improvements in mining processes and technologies, but also by greater visibility and process control across the value chain through IT/OT integration and optimisation.

For example, more accurate and near real-time process control made possible by combining asset and

exist for conservation or leveraging alternative energy sources) • Ability to forecast energy requirements and schedule plant activities in relation to “on-the-grid” energy demands and costs, so that energy-intensive activities take place at off-peak times when energy costs are lower • Leveraging “what-if” planning for completing energy-intensive production steps in order to maximize energy efficiency and reduce energy costs • Ability to track and report on energy consumption for compliance purposes and/or as a baseline for energy efficiency programs

Moving toward the next generation of mining

As automation and communication capabilities increase, mining com-

panies at the forefront of technology adoption can make significant improvements in their overall value chain. From driving better linkage between IT and OT technology in production systems, to improving asset health by integrating real time data and intelligent insights, to smarter energy management, the advantages can be significant.

Perhaps the best and most visible example of these trends coming together is in the remote mining center, designed to manage operations with minimal on-site human intervention.

Such systems better facilitate around-the-clock operations and more easily ramp up and down in alignment with demand.

At the same time, technology and process improvements that support more automation on the site, such as continuous conveying of ore between key processing stages, will reduce or eliminate long-standing production bottlenecks.

Mining enterprises worldwide have already made significant investments in remote operations centers and remote mining technology.

The ultimate success of these remote operations centers lies in their ability to control and automate processes on-site.

This requires a synergistic convergence of IT and OT systems across the mining value chain to create a unified, highly collaborative enterprise able to be controlled remotely. Core enabling communication technologies combined with real-time input from sensors and logical devices deliver connectivity and data from the heart of the operations.

Applying information technologies such as business intelligence, data can be transformed into actionable insights and made available to the right personnel via customised views and reports.

This kind of technology is enabling mining companies to make dramatic advancements.

What is about being at the forefront of IT/OT convergence in mining. With the right next-generation infrastructure, conferring the ability to control and monitor operations in real-time, the operational technology is in place for dramatic improvements. *John Jessop is the vice president of Mining Solution for Ventyx, while Eduardo Gallestey is the head of Business Development, Intergrated Mine Operations for ABB’s Process Automation Division.

AustralianMining

January 2013

23

AM.JAN13.PG024.pdf

Page

24

6/12/12,

10:18

AM

SAFETY

RISKY business A

ustralian miners operate in some dangerous areas of the world and have to be prepared for anything, but how do you become prepared?

From simply losing passports to threats on workers lives, expertise is needed to handle a company’s response.

“Dynamiq is an emergency response and risk management business, we help clients and especially mining organisations to prevent, prepare for, respond to, and recover from incidents which could affect their people, their operations and ultimately their reputations,” chief executive officer Anthony Moorhouse told Australian Mining.

Covering everything from evacuations on mine sites, extortion threats made on executives, to helping a worker if they have lost a passport, the company provides 24 hour assistance through their call centre in Sydney.

“We have a 24 hour emergency centre in Australia manned by doctors and nurses and crisis response experts,” he explained.

“Dynamiq does about 300 emergency cases a year.”

But with more and more companies now making the move overseas, Moorhouse explains the risks can be heightened and that is where his team’s expert knowledge is utilised.

“About 55 per cent of Dynamiq’s revenue is generated overseas and the vast majority of that is supporting Australian clients,” Moorhouse said.

With the risks associated in more exotic locations like Africa and Asia, companies had a responsibility to ensure workers remained safe wherever they were located.

“Because some of these countries are so remote, their medical and safety security infrastructure can be poor so we help them to be self sufficient.”

“What we help them with is dealing with the unique working environment, and mitigate those risks by providing policies, plans and people for medical and security purposes.”

Providing initial risk assessments through to on the ground support, training, and emergency response, it ensures workers are not only safe, but are ready to respond in the case of emergencies.

And with many workers travelling overseas, the company also provides strategic training and the 24

January 2013

AustralianMining

As more Australian miners look overseas, they have to prepare for any eventuality, and that requires specialist knowledge.

Vicky Validakis reports.

know-how depending on where the individual is travelling.

“We work with individual staff and in particular travellers who are going to more exotic locations that may face a safety, security, or medical incident to make sure that they’re not bumbling around not knowing what they are doing.”

Moorhouse said that while Australian companies are very good at keeping workers safe, incidences were bound to occur where specialised skill sets and responses are required.

“In the last two weeks alone we have conducted evacuations out of the Democratic Republic of Congo, responded to a car-jacking in PNG, and also had an extortion attempt against an Australian executive.

“In essence, we become an outsourced, ‘when shit happens’ function for these guys.”

“They can worry about their core business which is to extract minerals out of the ground and we can take care of all the contingency planning scenarios and making sure the system is robust to deal with anything that goes wrong.”

And the support is not just on the ground level. The company first consults with board members about policy, ensuring that safe practices are understood from the top down to make for a safer working environment.

“We work with the board and senior managers to get them ready to deal with an emergency event, so we help those teams prepare so that if the worst happens, they have got a game plan and they feel comfortable with that plan.”

Dynamiq also provides on-site training at mine, where emergency response drills are practised with

New mining hotspots means miners are exposed to new, unknown risks.

staff so they know “how to deal with a more tactical event like a fire or a mine site collapse.

“We do a lot of training, consulting and testing at sites around Australia,” he stated.

With the much publicised boom shifting, Moorhouse said that in recent months discussions had centred around cutting costs while still ensuring the safety of workers was not compromised – a task that had been exciting, allowing for customised solutions.

“We are finding that we are actually growing through this phase because we can provide solutions to clients that are more cost competitive,” Moorhouse explained.

Moorhouse told Australian Mining that many rival companies were now benefiting from combining resources in order to cut costs.

“By sharing resources with other companies or doing more remote oncall assistance rather than having a huge permanent staff base or sharing roles we are able to provide this risk management support to our clients.

“It’s about risk management,” Moorhouse said.

“Let’s think of smarter ways to do more with less.”

A former Australian special forces counter terrorism commander, Moorhouse founded Dynamiq eight years ago, and the company now employs 150 full-time staff in Australia and has offices in both Sydney, Papua New Guinea and future plans for a greater push into Asia and South America. www.miningaustralia.com.au

AM.JAN13.PG025.pdf

Page

25

5/12/12,

10:42

AM

SAFETY

Difficult problem, simple solution With many companies rushing to use the latest technology to solve safety issues on site, sometimes the simple solutions are best.

S

afety on site is all about removing the risk from the job, and the miner from unnecessarily hazardous operations.

Currently, with the push towards automation on site many mines are looking to create an automated process to carry out many of the previously time consuming, and potentially dangerous, tasks miners faced every day. But sometimes the simple solutions are the best.

Every underground mine faces the same problem with dust in its tunnels and development panels, and currently most deal with the issue in the same way – using an auxiliary fan to disperse the stone dust.

This is crucial as not only does the dust make operations difficult, it also poses an inhalation risk to the workers. But how do they deal with the dust from the fans themselves?

These typically require three workers hanging two massive one tonne bags, on chains, behind the exhaust of the auxiliary.

The set up time at best was around 45 minutes with all three personnel, equating to 135 minutes of used time.

The whole hanging operation is a high risk, time consuming task.

But it did not have to be.

At Xstrata Coal Queensland’s Newlands underground coal mine, the traditional solution for auxiliary fans was not good enough.

“Concerns were raised by the workforce as to the safest method for completing the task, as this was a common task performed by crews A D _panel A M Qadvance” UI AUG _ 1 2 .Coal pd during Xstrata explained.

www.miningaustralia.com.au

The mine redesigned a QDS pod to replace a time consuming, high risk procedure.

“The primary safety issues were manual handling of heavy loads, the risk of strain and sprain, working at heights, and working with suspended loads.”

With the issues so clearly identified Newlands carried out a risk rat-

f

ing analysis on the process, identifying and discussing improvement opportunities. The solution was surprisingly simple. “After researching and reviewing our alternatives, we came to a decision and a modified QDS pod was designed to disperse the stone

Pa ge 1 2 0 / 0 7 / 1 2 , 1 2 : 2 0 PM The pod can be put in place by one worker in just five minutes.

dust,” it said. Xstrata used a QDS rubbish pod that was already on site, modifying it to incorporate a steel frame internally in the initial trials, christening it the Trickle Duster.

The pod was designed specifically for positioning behind the exhaust of an auxiliary fan in a development panel. The invention had an immediate effect on work at Newlands.

According to the company, since the implementation of the Trickle Duster it has cut down the number of people needed for the task from three to one, cut the set up time down to five minutes, which means quicker installation during panel advances and operators can now get two panel advances before refilling is required.

It also has a range of other benefits, such as no working at heights; no manual handling; no risk from suspended loads; no wastage compared to previously when wastage occasionally went on the floor; no rubbish such as empty bags or pallets to remove.

The pod is designed to collect dust from auxiliary fans.

AustralianMining

January 2013

25

AM.JAN13.PG026.pdf

Page

26

6/12/12,

10:21

AM

PRODUCT SHOWCASE

Equipment cleaning

Geology software

Aussie Pumps have released Yanmar’s new diesel, high pressure water cleaner – the Mine Blaster, for cleaning mining machinery. Complying with the National Mine specification MDG15, the high pressure, cold water blaster’s power is provided by a fuel efficient, compact, low vibration, L-N series Yanmar 10HP electric start engine, The pressure for the system is provided by a new TTL Has up to 4000 psi. series “Big Berty” Bertolini triplex piston pump which enables it to provide up to 4000 psi. The higher pressures mean cleaning times are cut, maximising efficiency and reducing the amount of water and fuel used. The new Yanmar Mine scud also offers users additional safety features that set a new standard in cleaning equipment. it features an ergonomic, 38mm galvanised steel frame that incorporates a lifting bar. The lifting bar can also double as a mount for an ‘easy fit’ high pressure hose reel. A hose reel kit simply bolts on to the bar. it can store of up to 50 metres of high pressure hose, allowing more convenient cleaning of large equipment. The mine spec blaster is loaded with safety features including an emergency stop, battery isolator and frame mounted fire extinguisher. The units come with a top quality 10 metre high pressure double wire braid, hose.

• Aussie Pumps www.aussiepumps.com.au

MAPTek has released eureka; new exploration software designed to aid geologists and explorers. Company CeO Allows large data sets to be viewed in a Barry Henderson explained that it developed single environment. the software to help explorers satisfy the massive global demand for minerals.

“A few years ago, an exploration company asked us for help in viewing seismic sections. Our software was 3D, the sections were in 2D and they really needed to see where those sections were in 3D space. Once we’d solved that problem, we realised that we could bring in other types of data and this was the catalyst for developing eureka,” Henderson stated. The software allows large datasets with millions of points such as airborne magnetic and radiometric surveys, space shuttle topography data and imagery to be viewed in a single 3D environment, allowing geologist to analyse the relationships. it is able to convert seismic time data to depth without ignoring the important drillhole information.

• Maptek www.maptek.com

Exploration software XsTRACT Mining Consultants have developed new software for exploration and mining.

The free, open-standards, open source mining database and software package has been called XODB (Xstract Open Database) and has been designed to make exploration software more available to junior miners. According to the company it supports standards such as AusiMM’s ‘CoalLog’ and “will help small to medium size exploration and mining companies manager their valuable data better. XODB has the ability to synchronise information between geologists in the field or between servers using cloud software; can store detailed exploration data including drilling, QAQC and geophysics information; can store geological models; aids in compliance; and aids in providing more detailed reporting and analysis.

• Xstract 07 3221 2366 www.xstractgroup.com

Mobile solar generator New mobile, solar power generators have been developed for use in industrial applications.

The solar Power Generators have released new energy units that are available as a 12 000 watt single phase 240V AC sinewave or 3 phase 440V AC at 3000 watts, 3-phase power unit.

Able to be mounted on an 8 by 5 metre aluminium Designed for industrial use. trailer for easy transport, the unit is designed to facilitate the use of welding machinery, power tools, cooking facilities, lights, and most general plug in equipment associated with work in factories, on site, and in processing plants.

They includes 10 batteries, of varying special types, 12 special type solar panels, 4x3000 watt inverters, a custom-built trailer, electric breaks, various electrical components, many internal parts and wiring, trailer registration, construction and assembly labour.

• The Solar Power Generators 07 3630 5570 brian@investex.com.au

26

January 2013

AustralianMining

Rough terrain crane ZOOMLiON has unveiled its latest 100 rough terrain crane at Bauma China, the RT100.

The crane will be added to the Zoomlion rough terrain crane line, which features the RT35, RT55, and RT75.

The RT100 has a 100 tonne capacity and a 43 metre boom, and is engineered to have the maximum capacity at radius for its weight.

• Zoomlion www.zoomlion.com

Has a 100 tonne lifting capacity.

High force screens RG Recycling, in conjunction with McCloskey equipment and Binder, has launched the McCloskey B200 high G-force screener.

According to the company it designed to recover sticky, moist, difficult-to-screen Uses high intensity, high G-Force. materials, even in poor weather. Built with a BiViTeC screen, the B200 uses a highintensity, high G-force, dual vibration system, which it claims is “much more efficient than traditional screeners, which encounter a wide range of operating problems, such as blinding, pegging, spillages and blockages, in difficult applications”. The new B200 also has low maintenance, screw-less, easy-to-change screen mats that reduce overspill and enhance production with true cut points. it has a wide feeding load and the largest hopper and screen-box in its class, which maximise its output capacity. it is designed with user friendly controls that mean that, for such a heavy-duty, robust machine, it is very easy to manoeuvre.

• RG Recycling www.rgrecycling.co.uk www.miningaustralia.com.au

Page

1

6/12/12,

11:12

AM

2013

AD_AMREXJAN_13.pdf

SAFETY CONFERENCE

1st May 2013, Brisbane REGISTER NOW!

Reserve your seat today – and secure your site’s safety.

Topics include: t 5FDIOPMPHZ EFWFMPQNFOUT JO NJOF TBGFUZ t 6OEFSHSPVOE NJOJOH t #MBTUJOH TBGFUZ t %SJMMJOH TBGFUZ t .FOUBM IFBMUI t '*'0 BOE %*%0 t "VUPNBUJPO BOE 4BGFUZ

Book your seats today to receive the early bird offer.

'PS NPSF JOGPSNBUJPO PS UP SFHJTUFS

QMFBTF WJTJU www.miningaustralia.com.au/conference PS $POUBDU 'SBODFTDB -BXSFODF 02 9422 2896 PS FNBJM francesca.lawrence@reedbusiness.com.au

AM.JAN13.PG028.pdf

Page

28

5/12/12,

1:21

PM

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.

Team Leader / ShoTfirer Company: oriCa LoCaTion: QueenSLand description: Orica Mining Services offers commercial explosives, initiating systems and Blast-Based Services to the mining, quarrying and construction industries.

As a Team Leader you will be responsible for providing support, mentoring and developing the skills of the team to meet the needs of Orica in accordance with agreed goals for the business. Your responsibilities will also include management of individual blasts to provide products and services to customers, assisting with providing a quality service of bulk and explosives to customers in a safe and environmentally conscious manner at all times, and manufacturing bulk products and delivering the operational services to the volume service type and quality specified.

You must have heavy industry experience, preferably mining, have experienced Shot firer with 5-10 years experience along with your Current Qld Shot firers ticket and dangerous goods experience. apply online at our website, http://www.orica.com.au/ mmu operaTor Company: oriCa LoCaTion: QueenSLand description: Key accountabilities of the role include commitment and pro active approach to Orica SHE and Quality systems; Deliver product and services in accordance to relevant SH&E standards and statutory laws; Participate and maintain safe & efficient operation of MMU’s, and on bench activities; Maintain MMU and associated plant and equipment (inc. other mobile equipment) to Orica standards; Commit to customer production requirements through commitment to on bench services, problem solving and time management; Actively building and maintaining excellent relationships with key mine personnel; Commitment to the team and teamwork, a culture of empowerment, involvement and owning the business.

You must have over 12 months demonstrated ability to operate and maintain a MMU as this is not a trainee position, a valid Heavy Rigid drivers licence and a strong mechanical aptitude or trade certificate is desirable.

To apply, please send your CV to alun.hume@orica.com enVironmenTaL Lead – yarwun Company: oriCa LoCaTion: QueenSLand description: The Orica site at Yarwun comprises two major complexes being one of the world’s largest Industrial Grade Ammonium Nitrate Complex and the Sodium Cyanide Plant.

The main function of this role is to investigate and analyse site environmental performance, and provide solutions which guarantee licence compliance and high performance of the Yarwun site.

The position has direct responsibility for the complete suite of environmental matters and compliance requirements on site.

You must have Tertiary qualifications in Engineering or Environmental Science, Process Engineering experience and previous project experience with an environmental focus.

To apply online, please go to http://www.orica.com.au/ mainTenanCe SerViCeS SuperinTendenT regionaL mainTenanCe SuperViSor Company: oriCa LoCaTion: newCaSTLe description: Orica Mining Services offers commercial explosives, initiating systems and Blast-Based Services to the mining, quarrying and construction industries. This role is considered a critical support role in the region and will require that you be accountable for the ongoing support of plant and equipment as well as a wide range of accountabilities focused on the support of existing fixed and mobile assets.

28

January 2013

AustralianMining

You will be required to support approximately 30-40 plants, up to 150 major mobile items including MMU’s, trailers and other plant items in regional use. The environment is technically complex involving a diversity of manufacturing and delivery technologies in the bulk explosives business.

You must have a Trade Certificate, high level of SH&E experience, specifically with JSA’s & Risk Assessments and experience with contractor repairs. apply online at our website, http://www.orica.com.au/ operaTionS manager – niTraTeS Company: oriCa LoCaTion: Kooragang iSLand description: As the Operations Manager, reporting directly to the Site Manager, you will have full autonomy to lead the manufacturing operations area of the Ammonium Nitrate Complex with prime accountability to achieve and improve production output; the development of Operations related SH&E procedures and processes; and provide overall direction and management of solutions to immediate and longer-term operations, safety, and environmental opportunities and issues on the Ammonium Nitrate Complex.

Establish a ‘can do safely’ culture aligned with Orica principles and ensure the development of employees into highly motivated and capable personnel who accept responsibility and accountability for their performance and development. apply online at our website, http://www.orica.com.au/

mainTenanCe pLanner Company: mmg LoCaTion: QueenSLand description: MMG is one of the world’s largest producers of zinc as well as a substantial producer of copper, lead, gold and silver.

Your responsibility in this role will be to ensure that maintenance strategies, system and procedures are executed well in advance of each maintenance period. This will see you responsible for managing maintenance projects and weekly schedules from detail development of job scopes, resourcing, planning, through to work management and post-maintenance reviews as part of continuous improvement.

To be considered, you’ll hold a certificate-level qualification in maintenance or relevant trade and have a high level of processing plant and facilities maintenance experience. Be accredited in project management or recognised methodology and have a proven background in maintenance planning or a related area.

Experience with a CMMS such as SAP and strong computer skills, including Microsoft applications, in particular Project, is essential. apply online, email your CV to https://secure.pageuppeople. com/apply/

SheC adViSor – manufaCTuring Company: oriCa LoCaTion: Sydney description: You will be a hands-on resource working across three major hazard facilities that operate under environmental licences. In this challenging and varied environment, you will deliver our corporate strategies and championing SHEC initiatives.

This will involve reporting, analysis and administration of site based SHEC metrics in our internal systems, supporting the site to navigate and meet mandatory legislation & Orica’s SHEC targets and preparation of internal communication, data and reports.

You will have prior hands on delivery of SHEC, proven success influencing and educating stakeholders in manufacturing or heavy industry and demonstrable knowledge of current SH&E legislation.

It is expected that you will have OH&S qualifications, coupled with 5 years+ experience in a SHEC advisory capacity in manufacturing, petrochemicals or a heavy industry. apply online at our website, http://www.orica.com.au/

Senior oCCupaTionaL heaLTh and hygiene adViSor Company: mmg LoCaTion: LaoS description: MMG is one of the world’s largest producers of zinc as well as a substantial producer of copper, lead, gold and silver. The purpose of the role is to be responsible for the development, implementation and maintenance of Occupational Health and Hygiene programs, to prevent injury and illness to employees resulting from exposure to chemical, physical, biological and ergonomic hazards.

Your responsibilities will include development and implementation of the Sepon baseline occupational hygiene monitoring program, Management and Improvement Plans and the implementation of control strategies.

To be successful in this position you must possess an Undergraduate Degree in Engineering or Science, post graduate studies in Occupational Hygiene and eligibility for Full Membership of the Australian Institute of Occupational Hygiene (AIOH).

Located near the gateway to South East Asia, this 18 month contract position allows for exploration of this fascinating region whilst on R&R. please apply online at http://careers.mmg.com/jobSearch. asp?stp=aw&sLanguage=en

Senior TeChniCaL SerViCeS engineer Company: oriCa LoCaTion: perTh description: Orica Mining Services offers commercial explosives, initiating systems and Blast-Based Services to the mining, quarrying and construction industries.

You will be responsible for the day to day management of the Iron Ore sector Technical Services team as well as the delivery of measurable value to Iron Ore Customers through the support of Orica’s products and services in alignment with the West Region’s strategic business plan.

You will also be responsible for delivery of the Regional SHE plan in line with the Orica SHE policy, and for driving innovation and technology offerings to the Iron Ore sector that establishes Orica as the preferred supplier of explosives solutions.

You must have Tertiary Qualifications in Mining Engineering, or Science, Project Management experience and proven experience in an operational Drill and Blast function with 3-5 years including Iron Ore execution and planning. apply online at our website, http://www.orica.com.au/

inTegriTy engineer Company: oriCa LoCaTion: BriSBane description: Orica is an ASX listed global company and the Yarwun site manufactures mining chemicals and explosives for local and international customers.

This role will involve risk assessments identifying potential equipment failures; providing detailed inspection and rectification work scopes for our maintenance teams; influencing shut-downs and capital equipment budgets; sourcing specialist technical expertise for assessments; and assisting in the development of an asset management database. Overall, your role will be a significant contributor to plant safety, environment compliance, asset availability and operational costs.

Key to your success will be your ability to demonstrate knowledge of equipment maintenance, reliability and integrity processes, familiarity with relevant mechanical engineering standards and statutory compliance requirements.

You will have Degree qualifications in Mechanical Engineering. please apply online at http://jobs.orica.com/oms/en/#/job/ www.miningaustralia.com.au

AD_AMMMDJAN_13.pdf

Page

1

6/12/12,

3:25

PM

Innovation

through experience Established in 1978, MMD designed and patented the Twin Shaft Mineral Sizer. To complement the robust Twin Shaft Sizer, MMD has also designed and developed a range of heavy duty Apron Plate Feeders, to be used in conjunction with sizers on both static and mobile Installations.

An independent company that focuses on Sizing and developing IPCC sizing solutions, MMD works with customers to develop systems adapted to their needs and has an unmatched record for the development and supply of effective trend setting static, semi and fully mobile sizing systems for mining a wide range of minerals around the world.

An exemplary track record of ‘Innovation through experience’ has led MMD to being an integral part of the global mining industry and a byword for productivity and reliability.

MMD Australia Pty. Ltd. Brisbane Mackay Singleton

sizers@mmdaus.com.au

THE MMD GROUP OF COMPANIES WWW.MMD SI Z E R S. C OM

AM.JAN13.PG030.pdf

Page

30

6/12/12,

10:23

AM

EVENTS

Conferences, seminars & workshops Event submissions can be emailed to ozmining@reedbusiness.com.au Mine Site Security Africa 2013

Hot on the heels of its successful conference in Perth, Australian Mining will be holding its second mining safety conference in Brisbane.

The event aims to bring together mine safety professional who focus not only on site OH&S nut also general work health and well being.

It covers the gamut from safety in underground mining, automation safety, safe practices and technology in drilling and blasting, and issues affecting worker mental health.

To find out more about the event and how you can be a part of it, contact us today.

• Australian Mining 02 9422 2352 editor@miningaustralia.com.au www.miningaustralia.com.au

28-29 January Johannesburg South Africa Security is vital in mining operations to: protect the value commodities, expensive machinery and create a safe working environment. Africa’s economy thrives on mining. It holds the biggest producer of platinum and one of the largest producers of gold in the world, and also mines coal and diamonds. Africa boasts some of the deepest mines in the world with some gold mines reaching deeper than 300 metres, with speculation digging below 5000 metres. This means that security is a huge and expensive issue.

Keeping massive mine sites secure from intruders poses large logistical and technological challenges for operators.

This is why Mining IQ in partnership with the Security Association of South Africa is hosting a Mine Site Security Africa conference.

It will offer a platform for mining professionals to benchmark their work in corporate security.

• IQPC www.miningsitesecurityafrica. com

AIMEX 20-23 August Sydney Showground Sydney

comes from a company whose 02 9224 6013 culture is a green one and who have erin.pelquesthunt@ their own drivers to become more tonkincorporation.com Environmental Culture sustainable. And these projects must www.tonkincorporation.com and Compliance all comply with very strict policy.

Resources Roadshow 6-8 February In this light, it’s not so hard to see 14-15 February Sydney the link.

The Establishment Compliance and culture might seem Make sure you attend Tonkin’s an unlikely coupling: the culture of Environmental Culture and Sydney an organisation and the compliance Compliance Conference to hear 10 The Symposium Resources of different projects to relevant unique case studies from leading Roadshow is specifically designed legislations aren’t an immediately environmental management to promote the Australian resources obvious pair. However, any major specialists from around the country. industry to a wide variety of A D _ A MA U S J A N _ 1 3 . p d f Pa ge 1 3 0 / 1 1 / 1 2 , 1 1 : 1 3 AM environmental initiative invariably • Tonkin investors: from professional brokers,

CENTRAL QUEENSLAND TRANSPORT TRADES AND MINING EXPO

analysts and private investors who are current shareholders, to others who are keen to understand the investment opportunities within this sector.

• Symposium Events 02 9299 4350 info@symposium.net.au www.symposium.net.au

Australian Mining Safety Conference 1 May Brisbane

13th & 14th March 2013 ROCKHAMPTON QUEENSLAND

Unique opportunity to network and generate new business EVENT PARTNERS

Now held once every two years and firmly established on the international mining calendar, AIMEX is the flagship event within the portfolio of established industrial trade fairs staged by Reed Exhibitions.

AIMEX is where Australian and international suppliers of mining technology, equipment and services come together with mining industry buyers and specifiers from throughout the Asia-Pacific region to network and explore business opportunities, and exchange technical information.

• Reed Exhibitions Peter Thompson 02 9422 2472 peter.thompson@reedexhibitions. com.au www.aimex.com.au

T on he even ly industr y tf Que or Centra e n sland l Glad the B stone an , owe d n in 20 Basin 13

Register your interest now at www.cqexpo.com.au or Freecall Freecalll 1800 671 588 30

January 2013

AustralianMining

www.miningaustralia.com.au

AD_AMTYRJAN_13.pdf

Page

1

22/11/12,

4:16

PM

NEW 0R49

270 ENQUIRE NOW

SIZES: 1400R24, 17.5R25, 20.5R25, 23.5R25, 26.5R25, 29.5R25, 35/65R33, 2700R49

REM 1

REM 2

REM 9

REM 10

REM 12

FLAT PROOF YOUR TYRES! ZEUS STOPS Expensive downtime while improving tyre wear & performance

NO MORE NO MORE NO MORE NO MORE NO MORE

PUNCTURES

BLOWOUTS UNDER INFLATION REPAIRS STOPPAGES

For more information and to ďŹ nd your closest dealer freecall Tyres4U on 1800 788 688 or email Tyres4U OTR Sales Manager - Trent Wallin (trentw@tyres4u.com.au) 100% Australian owned & operated

FLEET AND GOVERNMENT WELCOME Sydney s Newcastle s Coffs Harbour s Wagga Wagga s Brisbane s Townsville s Toowoomba Rockhampton s Melbourne s Shepparton s Launceston s Adelaide s Darwin s Perth

UNM13793_AusMiningS.pdf

Page

1

1/12/2011,

2:10

PM

If what you do depends on Lime, talk to us.

Mining operations depend on Lime. Which is why industry leaders get their Lime from Sibelco. Whether it’s Quicklime, Hydrated Lime or one of many other limestone products you may require, you’re getting quality, premium Lime. Choose Limil from one of the seven Sibelco plants around Australia and you can look forward to 135 years of Lime manufacturing expertise, the security of long-term supplies and a level of quality and consistency that our ISO9001:2008 Quality Program delivers.

To find out more about Limil, Sibelco and our industry-leading products, visit www.sibelco.com.au

UNM13793