Australian Mining - May 2017

NORTHERN TERRITORY SPOTLIGHT

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BLACK LUNG IN FOCUS VOLUME 109/4 | MAY 2017

AUTOMATION

COLLABORATION IN MINING UNITING THE INDUSTRY

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COMMENT

BEN CREAGH

CALLING FOR COLLABORATION

Ben.Creagh@primecreative.com.au A STRONG THEME OF COLLABORATION CONTINUES TO EMERGE AT ALL LEVELS OF THE AUSTRALIAN MINING INDUSTRY.

C

ompanies and organisations in the global mining industry have been urged to work together to achieve growth and improvement for some time now.

Collaboration in mining has been hailed for its ability to help the industry overcome challenges that confront it on a regular and cyclical basis.

In recent years, key challenges have included low commodity prices or declining grades. Before that, it might have been managing Australia’s high cost environment or the skills shortage that previously existed in crucial roles.

With mining being such a competitive environment however, the uptake of widespread collaboration was limited, at best.

Figuring out how to effectively collaborate in mining was often viewed as a key reason why the industry may not have been successful in working together to achieve common goals.

This led to endless discussion and research, particularly by organisations supporting the mining equipment, technology and services (METS) sector, being invested into developing approaches that would enable collaboration to be effective.

Buy-in from the majors also helped.

BHP Billiton is increasingly open about the achievements (and even shortcomings) of its collaboration with the METS sector in its goal to be a more innovative organisation.

BHP’s collaboration with equipment companies, including Caterpillar and WesTrac, has been a vital part of its deployment of autonomous equipment in the Pilbara.

MANAGING DIRECTOR JOHN MURPHY EDITOR BEN CREAGH Tel: (03) 9690 8766 Email: ben.creagh@primecreative.com.au JOURNALIST SHARON MASIGE Tel: (02) 9439 7227 Email: sharon.masige@primecreative.com.au CLIENT SUCCESS MANAGER KRISTINA PERIC Tel: (02) 9439 7227 Email: kristina.peric@primecreative.com.au

I like to think this issue provides evidence that the efforts of the METS sector, as well as the contribution from Australia’s leading miners has set an example that will see the broader industry accept collaboration as a vital cog in the sustained future of the industry.

BGC Contracting’s collaborative model (p10) demonstrates that services companies can be leaders by offering miners with incentive-based contract proposals that deliver ongoing and evolving benefits during long-term agreements.

The collaborative model has been adopted by at least three iron ore miners already, and is being actively proposed to more companies tendering for contractors.

Then there is equipment manufacturer Sandvik, which is targeting collaboration with Australian mine operators to ensure its latest autonomous solutions are well suited for local conditions, in addition to the company’s traditional testing ground in Finland.

Finally, the latest piece covering Deloitte’s 2017 mining trends looks at how the successes of collaboration are shaping an ecosystem in the industry that will drive it forward.

The calls for collaboration in mining are now being heard.

FRONT COVER

In this edition of Australian Mining, we focus on collaboration in the mining industry and shine a spotlight on the mining jobs in the Northern Territory. We also explore the rise in the number of mergers and acquisition in the mining industry and the importance of addressing Australia’s STEM skills gap. This issue also highlights ways to enhance productivity at mining operations and explores the measures the Queensland Government is implementing to combat black lung. Australian Mining also takes a closer look at Metso’s successful installation of two new mills at Grange Resources’ Savage River iron ore mine and Kal Tire’s growth after acquiring Kilnge and Co.’s mining tyre services business.

Front cover photo credit: BGC Contracting

Ben Creagh Editor

SALES MANAGER JONATHAN DUCKETT Tel: (02) 9439 7227 Mob: 0498 091 027 Email: jonathan.duckett@primecreative.com.au ART DIRECTOR Michelle Weston GRAPHIC DESIGNERS James Finlay, Blake Storey, Sarah Doyle SUBSCRIPTION RATES Australia (surface mail) $140.00 (incl GST) New Zealand A$148.00 Overseas A$156.00 For subscriptions enquiries please call GORDON WATSON 03 9690 8766

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CONTENTS

SA SPOTLIGHT A MINING MODEL OF COLLABORATION How BGC Contracting is bringing cost savings to South Australia’s Arrium operations

ENERGY

10-12

30-31

COPPER TO THE WORLD Adelaide will host the inaugural Copper to the World conference in June

FINANCE

NT SPOTLIGHT

34

EMERGING METALS GUIDE COMPANIES TO ASX LISTINGS Prospects for emerging mining companies to list are improving

TRACKING THE TRENDS

MINING SET FOR GROWTH IN THE NT More mining jobs are on the way for the Northern Territory

13 WA SPOTLIGHT CURTIN UNIVERSITY GAINS GLOBAL ACCLAIM FOR MINING RESEARCH Curtin University’s WA School of Mines is now second in the world for mining and engineering

FLOW POWER’S SMART SOLUTION TO SAVING MONEY ON POWER Flow Power’s latest technology – the kWatch Intelligent Controller

35

DEVELOPING ECOSYSTEMS IN MINING Exploring a trend in the mining industry – collaboration

14

PRECIOUS METALS

36-37

GOLD OVERCOMES CHALLENGES TO REMAIN STRONG How precious metals have performed in the first quarter of 2017

ENVIRONMENT FINANCE CONDITIONS RIPE FOR AN INCREASE IN M&A ACTIVITY Mergers and acquisitions in the mining industry are on the rise

38-39

16-17 BLACK LUNG TAKING STEPS TO PREVENT BLACK LUNG The measures Queensland’s Government is taking to combat black lung

18-19 40-42

MOVING FROM EFFICIENCY TO EFFECTIVENESS Ways to improve productivity on site

BREAKING DOWN THE BARRIERS Counting down to the Women in Industry Awards

20-21

43-44 PROSPECT AWARDS PROSPECT AWARDS WINNERS PROFILE A profile on Abergeldie Complex Infrastructure

PERSONNEL TACKLING THE STEM SKILLS GAP Australian Mining speaks to BHP’s head of geoscience about how to address the STEM skills gap

PRODUCTIVITY

WOMEN IN INDUSTRY

AUTOMATION SANDVIK MOVES FURTHER INTO AN AUTONOMOUS MINING ENVIRONMENT How Sandvik continues to develop automated technologies

IMPROVING EFFICIENCY WITH ENVIRONMENTAL MONITORING Envirosuite discusses the benefits of environmental monitoring

22-23

46-47 OIL AND GAS

48

INCREASING GAS SUPPLY IN AUSTRALIA The rising number of gas projects in Australia’s east coast

MAINTENANCE

PDAC REVIEW EXPANDING TYRE CARE IN AUSTRALIA Kal Tire’s successful acquisition of Klinge and Co.’s mining tyre services business

AUSTRALIANS FLOCK TO TORONTO FOR PDAC A look at Canada’s annual prospectors and developers event

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24-25

CASE STUDY NEW MILL GRINDS DOWN COSTS AND BOOSTS EFFICIENCY AT SAVAGE RIVER Metso’s successful installation of two new mills at Grange Resources’ Savage River mine

50-51

26-29

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INDUSTRY COMMENT

DON’T GET CAUGHT OUT ON R&D CLAIMS KPMG PARTNER JAMES EDWARDS DISCUSSES HOW THE MINING INDUSTRY CAN EFFECTIVELY APPROACH THE R&D TAX INCENTIVE.

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he R&D Tax Incentive, jointly administered by AusIndustry and the Australian Taxation Office (ATO), is an Australian Government initiative that provides a tax offset to support companies to be more innovative, productive and competitive. It has been in place since 1985.

Broad-based rather than industryspecific, the incentive provides sizeable tax savings and even cash refunds to eligible companies.

This incentive is particularly valuable for the mid-market.

Companies with turnover of less than $20 million can access the 43.5 per cent refundable offset, which reduces their tax liability by 13.5 cents on the dollar or, if they are in tax losses, result in a cash refund of 43.5 cents on the dollar.

Larger companies with a group turnover of $20 million or more, can access the 38.5 per cent nonrefundable offset, which reduces their tax liability by 8.5 cents on the dollar.

Mining is rich with innovation – just think of the progress the industry has made over the past two decades around deep cover exploration technology, driverless trucks and the continued improvement of processing techniques to realise higher and higher recoveries.

This is reflected in the large number of mining companies accessing the program. The mining industry is the third largest claimant of R&D Tax Incentives behind the services and manufacturing industries.

While the program has been very beneficial to many mining companies, the industry as a whole has been targeted for potential non-compliance, along with agriculture, software development and construction, resulting in an increase in both review and audit activity by AusIndustry and the ATO. In January, AusIndustry released specific issue guidance material focusing on the mining industry and raised the following areas of concern that mining claimants need to pay particular attention to:

THE R&D TAX INCENTIVE HAS HELPED COMPANIES BE MORE INNOVATIVE SINCE 1985

• Claiming activities or tests that are standard to the industry and not hypothesis driven – especially in the development of process flow sheets and mine designs • Claiming activities where no test or experiment is undertaken (only modelling or simulation) • Confusing project or commercial risk with technical risk • Failure to adequately demonstrate the new knowledge that is being generated from the experimental activities • Whole of project claims rather than discrete R&D activities • Lack of substantiation documentation • R&D claims in the exploration phase of a project that is potentially excluded under the legislation.

and potential risk, companies in the mining industry should continue to access the savings afforded by the R&D Tax Incentive, however they should be readily prepared to justify their claims upon a review.

KPMG recommends the following actions to help you prepare and defend your R&D claim: • Identify your R&D activities and associated expenditure contemporaneously – don’t wait until the end of the financial year •E nsure an adequate internal governance process is in place for your R&D claim process. For example, a robust framework around the timing, identification and approval of R&D activities to be claimed.

In addition, other areas of focus by the regulators include companies claiming ineligible expenditure and also R&D advisors who apply highrisk practices such as, according to AusIndustry, providing advice that is not consistent with the legislation, either in its intent or in its letter.

The penalties for non-compliance can be significant, including penalty payments and interest charges.

While this sounds like a minefield, and daunting in terms of complexity

Companies can improve their R&D claim process by using claim management tools, which track activities in real time across the team responsible for compiling a claim.

• Always ensure you have appropriate, contemporaneous substantiation documentation to support your claim.

• Given the complexity of the legislation and current regulatory environment, seek advice from trained, registered tax agents.

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Need to find out more?

If you would like to learn more on how your company may be eligible to claim the R&D Tax Incentive, please don’t hesitate to contact our R&D Incentives team in your state. AM The information contained herein is of a general nature and is not intended to address the specific circumstances of any particular individual or entity.

James Edwards is the partner, R&D Incentives Tax for KPMG. He is based in Perth, Western Australia.

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NEWS

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.AUSTRALIANMINING.COM.AU TO KEEP UP TO DATE WITH WHAT IS HAPPENING. KEY MINING JOBS BACK IN DEMAND: ONE KEY RESOURCES Labour hire and managed workforce services company One Key Resources is seeing a rebound in demand for qualified mining personnel and is on the hunt nationally for suitable workers to fill a variety of jobs.

One Key Resources managing director Grant Wechsel said that along with increasing demand for skilled mining workers he had also observed an increase in wages.

“If I could have another 500 qualified workers lined up outside our offices across the country today, I would be able to put them into good resources jobs tomorrow,” Wechsel said.

“The demand is there from major mine

owners across all commodities including coal, iron ore and gold, as well as with major mining contractors.

“We’re talking the full range from open cut and underground operations, especially from the established mining areas in Queensland, New South Wales and Western Australia.”

One Key is hiring mainly for longer term contracts of a year or more, rather than just filling short-term positions, according to Wechsel.

A varied skill set is in demand including dump truck and multi skilled operators, diesel fitters, auto electricians, as well as underground miner drivers, operators and experienced tradespeople,” Wechsel said.

“Following the downturn many workers left the resources industry due to downsized operations or less mines operating, but we’re now seeing the rebound first-hand particularly since commodity prices have lifted.

“While there are a variety of opinions on how long commodity prices will remain buoyant, the demand for skilled workers can’t be denied. We are able to offer jobs with tenure, including a range of casual, contract and permanent employment in any state.”

One Key Resources has labour supply contracts with almost 100 mine sites nationally and offers roles in production, maintenance and for professionals.

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BALLA BALLA PROJECT A STEP CLOSER WITH CHINESE CONSTRUCTION PARTNERSHIP

The St Barbara board has approved funding for the Gwalia extension project, that will extend mining at the gold operations to at least 2000m below the surface (mbs) in 2024.

The extension project, with a $100 million budget, will take between two and a half and three years to construct at Gwalia operations located south of Leonora in Western Australia. It consists of two main components: a ventilation upgrade and paste aggregate fill (PAF).

The additional ventilation will come through raise bore intake and exhaust ventilation shafts as well as associated power and cooling infrastructure needed to mine between 1800 and 2000mbs.

The PAF, which is set to be completed within 12 months, involves mixing paste from the surface with waste rock crushed underground for stope fill. By disposing waste underground, truck and ventilation resources are able to focus on ore production, increasing efficiency and production. It also enables faster stope filling and reduces stope cycle times.

The extension project is also expected to generate a higher financial return and increase the potential for further extensions.

In January this year, the board approved $6 million project readiness and early works funding for the March 2017 quarter which included engineering, hiring project staff, contacting vendors and beginning underground works. These works are also included in the $100 million budget.

If the drilling program finds major resources deeper than 2000mbs, the feasibility study indicates additional infrastructure that could extend ventilation from 2000mbs to enable mining at 2200mbs.

St Barbara managing director and CEO, Bob Vassie, said the extension project’s approval begins a new phase in Gwalia mine’s history.

“Gwalia started in 1896 and it just keeps going,” he said.

“The project will ensure Gwalia can continue delivering strong, high margin gold production until at least 2024, with the foundation laid for further extensions to the mine life beyond this, as well as potential for increased production.”

BBI Group (BBIG) has signed a memorandum of understanding (MoU) to partner with China State Construction Engineering Corporation (CSCEC) for the construction of the Balla Balla Infrastructure (BBI) iron ore project in Western Australia.

The nearly $6 billion BBI project and a foundation customer mine is set to be developed in WA’s Pilbara region and will need 3300 workers during construction. It is also expected to provide 900 permanent jobs once operations begin.

CSCEC is one of China’s largest companies and one of the largest construction companies in the world.

The MoU was signed by both companies in Canberra, at a ceremony that was attended by prime minister Malcolm Turnbull and Chinese premier Li Kequiang.

Under the agreement, both companies will work together to ensure the project is contructed and operated by suitably qualified, Pilbara-experienced contractors, confirming BBIG’s commitment to increasing work opportunities for local and regional businesses and employees.

It comes after the WA Government signed a state agreement for the project and a 162km railway linking it to iron ore deposits in the region, in January this year.

BBIG chair Jon Young said the partnership was another major milestone for the project and a step closer to company receiving a final investment decision and beginning construction in 2018.

“To have signed such an important MoU for our project in the presence of the Australian prime minister and the Chinese premier confirms the strength and international significance of the BBI Project,” Young said.

“We are pleased to have secured the confidence and support of China State Construction Engineering Corporation, an internationally significant construction partner who possesses world-class experience in the delivery of large-scale infrastructure projects, including port and rail infrastructure.

The MOU between BBIG and CSCEC recognises the critical importance of a Pilbara-experienced workforce to the successful delivery of the project.” photo credit: kaband

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SA SPOTLIGHT

A MINING MODEL OF COLLABORATION BGC CONTRACTING IS AIMING TO DELIVER SIGNIFICANT COST-SAVINGS FOR ARRIUM IN SOUTH AUSTRALIA THROUGH A COLLABORATIVE CONTRACT SIGNED BETWEEN THE TWO COMPANIES. BEN CREAGH REPORTS.

R

educing costs has been a vital goal for Arrium at its iron ore operations in South Australia after the company set a strategy to overcome financial difficulties.

The steel-making and iron ore group, which is a key driver of the South Australian economy and has thousands of employees around the country, was placed in voluntary administration in April last year.

Administrator, KordaMentha, has worked hard with Arrium to maintain a ‘business as usual’ mentality within the group. This has involved identifying opportunities to cut expenditure at its operations.

At the Iron Knob and South Middleback Ranges iron ore mines near Whyalla, Arrium has found an answer to this objective through a new collaborative mining services contract with BGC Contracting.

In March, BGC secured a five-year contract extension worth more than $720 million at the two operations, which replaced an existing agreement between the two companies that was due for completion this year.

Perth-headquartered BGC will

provide a range of mining services under the contract, including drilling, blasting, hauling, loading, dumping and train load-out.

But the key element of the contract is its collaborative model, which is set up with incentives that aim to benefit both parties as the five-year term progresses.

BGC chief executive officer Greg Heylen said the company was now offering the collaborative contract model to several mining clients seeking ways to reduce costs.

The model has already proven successful at other iron ore mine sites, including Cliffs Natural Resources’ Koolyanobbing operation, where BGC has helped saved more than $100 million in recent years.

By working closely with the client, BGC designs a collaborative contracting model that incentivises both parties to work smarter and reduce costs.

“This collaborative model allows the client and the contractor to have meaningful discussions on what the client is actually looking for. It is a commercial model that incentivises the contractor to reach those targets – whatever they are,” Heylen explained.

“It’s more about the model that we

AUSTRALIANMINING

implement that rewards the contractor for achieving the targets the client has, whether that is improved productivity, lower costs or to produce a certain range of product.”

However, if market conditions change the collaborative model will also allow BGC to modify its agreement with Arrium to better reflect evolving outcomes that the miner is targeting from its operations.

“Over time, client requirements change – if commodity prices continue to improve, for example, clients may then want more product to port, opposed to the pure focus at the moment, which is generally around lowering costs,” Heylen said.

“If the client has a change of focus two, three or five years from now the model allows those targets to be changed – that incentivises the contractor to reach those targets.”

The catalyst for developing the collaborative model was the need for mining companies to adapt to changing market conditions after commodity prices plummeted.

Heylen said mining companies were looking to lower their cost base while also establishing a pathway to prosperity for when commodity prices do improve, which he believes

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the industry is now starting to ramp up again.

“It was the changes in the market that forced clients to do things a bit differently than what they were doing in the previous seven or eight years during the ever-increasing commodity prices, which I think shielded us a bit from taking some hard analytical decisions about the business,” Heylen said.

Arrium Mining executive general manager Matt Reed said the collaboration provided benefits for both companies, with BGC playing a major role in helping Arrium lower its mining costs.

“We look forward to developing this partnership with BGC over the coming years and continuing to reduce our costs as we create a world-class business,” Reed said in a statement.

The collaborative contract with Arrium in South Australia is not only expected to benefit the miner’s cost base.

It is also anticipated that the extension will provide more certain employment for workers and subcontractors in the Whyalla region, a welcome boost for the mining industry in South Australia. AM

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SA SPOTLIGHT

COPPER TO THE WORLD ADELAIDE WILL PLAY HOST TO THE ‘COPPER TO THE WORLD CONFERENCE’ IN JUNE WHICH WILL FEATURE A RANGE OF TOPICS THAT ADDRESS THE GROWING GLOBAL DEMAND FOR THE METAL.

C

opper is one of the oldest metals known to civilisation and its uses keep growing in the push to accelerate more energy efficient products.

The inaugural Copper to the World Conference, to be held 27 June in Adelaide, South Australia, focuses on the red metal as global demand continues to climb across the electrical, construction, machinery, transportation and consumergoods sectors.

Global copper production is finely balanced at around 19 million tonnes per annum with additional supplies required. The Copper to the World conference aims to address this demand, bringing together the latest trends across the international copper industry, along with technical innovations and an Australian perspective.

The South Australian Government

has organised the program with a national and global copper audience in mind, securing international speakers from Chile, the UK and Australia including the Chilean Productivity Commission, Chilean Copper Commission, CRU and CSIRO. Topics will range from copper demand and supply forecasts, innovation and opportunities for the supply chain and mining equipment technology and science (METS) sector and the copper sector’s progress towards discovering economic ore bodies.

While vast amounts of copper are in circulation as a result of recycling, the race remains to increase annual production output. Australian producers will be part of the equation, with existing mines yielding relatively high average copper grades.

For its part, the South Australian copper sector has rallied behind the South Australian Copper

Strategy. Launched in 2016, the Copper Strategy sets an ambitious target to treble the state’s copper production to one million tonnes a year by 2030.

The approach has quickly gathered momentum, with some of the best operators in the mining value chain actively involved in its implementation to accelerate exploration, discovery and information; develop innovative infrastructure, services and research and engage to build industry and community capacity. An injection of $20 million into the PACE Copper program will be a vital stimulus to help explorers track down economic ore bodies that lie in the copper belt.

South Australia is a fitting conference host with copper very much the engine room of its economy - with $1.9 billion exported and significant quantities landing in Europe, Asia and India. A proven copper exploration destination,

the state currently has 125 companies exploring for new copper mineral targets.

The state has 68 per cent of Australia’s economic demonstrated copper resources and hosts three operating poly metallic copper mines – Olympic Dam – the world’s fifth largest copper mine, Prominent Hill and Kanmantoo. Future production is expected to be added from sizeable expansions of major mines and advancing developments, Carrapateena and Kalkaroo in the Curnamona Province.

The Technical innovation session will address many of the challenges required for efficient copper production, ensuring mine production continues. Attendees will get an update on the International Copper Technology and Research Hub designed to link and leverage copper research programs and initiatives to support the planned expansion of copper production. AM

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NT SPOTLIGHT

MINING SET FOR GROWTH IN THE NT THE OUTLOOK FOR MINING IN THE NORTHERN TERRITORY IS RISING, WITH THREE OPERATIONS RECEIVING PROJECT FACILITATION AGREEMENTS, HELPING THEM PROGRESS DEVELOPMENT. SHARON MASIGE WRITES.

T

he Northern Territory is on track to deliver more mining jobs after the Territory Government signed project facilitation agreements for three operations this year.

Verdant Minerals – Ammaroo phosphate project

The government awarded Verdant Minerals’ Ammaroo phosphate operations a major project status and signed a project facilitation agreement (PFA) to progress it through the approvals process.

process will be very valuable,” he said.

Tziolis added that the Ammaroo project will support jobs in the local region and the broader Northern Territory.

“This project is in a remote area that will provide an economic boost for local communities through the provision of opportunities for long-term sustainable employment and the development of businesses to support the project,” he said.

Tziolis highlighted that since the project is also aligned with the state’s agricultural sector, it could potentially launch a new fertiliser industry in

MAJOR PROJECTS CREATE EMPLOYMENT OPPORTUNITIES FOR TERRITORIANS AND DEVELOP NEW BUSINESS OPPORTUNITIES WITHIN THE TERRITORY.” The $750 million project, located around 180km south east of Tennant Creek, is estimated to provide around 500 jobs during construction and operation.

Verdant Minerals managing director Chris Tziolis told Australian Mining the PFA was an important milestone for the company.

“As we are entering a phase of seeking government approvals, having the government’s support and government resources available to assist with the facilitation of the approvals

Australia that could expand and move to downstream production over time.

“This will be a significant economic enabler through the creation of a broader fertiliser industry to support Australian agriculture, including in Northern Australia, and also a supplier of significance to the region,” he said.

Tziolis said the company was aiming to produce phosphate rock concentrate for export to phosphoric acid plants in Asia due to a lack of demand in Australia, which instead imports most of its fertiliser in finished form.

“With respect to Ammaroo phosphate, in the course of time, it is envisaged that significant investments can be made in producing finished fertilisers and replacing imports into Australia,” he said.

“I do believe that the Western Georgina basin can become one of the great phosphate provinces over the course of the next handful of decades.

We just need to start.”

All necessary approvals have been sought for the projects, Tziolis added, with environmental approvals, mineral leases and mine management plans to be worked through over the coming 12 months.

Tziolis said the company aims to complete a bankable feasibility study in late 2017 and submit an environmental impact statement by August.

Once approved, NT chief minister Michael Gunner said the company could begin construction by the second half of 2018 and be fully operational by late 2019.

KGL Resources - Jervois coppersilver-gold project

Another operation granted a project facilitation agreement (PFA) this year was KGL Resources’ Jervois coppersilver-gold project.

Located around 270km northeast of Alice Springs, the $190 million project is expected to create 360 jobs during construction and 300 ongoing jobs once operational, over its more than 12-year life.

The company is also upgrading its resource after exploration found additional mineralisation at higher copper grades, particularly at its Rockface prospect.

PHOSPHATE FROM VERDANT MINERALS AMMAROO PROJECT

A BULK SAMPLE TRENCH AT THE AMMAROO PHOSPHATE PROJECT

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Upon the announcement, KGL chairman Denis Wood said: “The confidence that the Northern Territory Government has shown in KGL and the Jervois project, and the cooperation extended to the company in moving towards development at Jervois are greatly appreciated.”

The PFA was signed at the Annual Geoscience Exploration Seminar (AGES) in Alice Springs, the Territory’s major exploration event. “We recognise the significance and potential the project could provide for the Territory,” chief minister Gunner said.

“Major Projects create employment opportunities for Territorians and develop new business opportunities within the Territory.”

TNG – Mount Peake vanadiumtitanium-iron project

The NT Government also signed a PFA with Australian metals company TNG for the location to develop its TIVAN metals refinery – part of its Mount Peake vanadium-titanium-iron project.

The project is around 230km north of Alice Springs, with the development of the mine and its associated refinery expected to bring more than 1700 construction jobs and 600 ongoing jobs.

The refinery expected to produce 17,560 tonnes of vanadium pentoxide, 236,000 tonnes of titanium dioxide (pigment) and 637,000 tonnes of iron ore for export per year.

TNG also signed a binding heads of agreement with SMS Group for the design, engineering and construction of the TIVAN facility.

“The TIVAN downstream metal refinery is a key component of the overall project production and logistics chain, which will see the application of state-ofthe-art processing technology to cost effectively extract high-value vanadium, titanium and iron from the Mt Peake deposit and produce high-purity metals for export,” TNG managing director Paul Burton said.

“The TIVAN refinery is a valueadded downstream process which we expect will bring significant economic benefits to Darwin and the Northern Territory and help to enhance the region’s position as the development hub for Northern Australia.”

TNG is conducting an environmental impact statement for the refinery this year, with construction slated for 2018. AM

WA SPOTLIGHT

CURTIN UNIVERSITY GAINS GLOBAL ACCLAIM FOR MINING RESEARCH HAVING JUMPED TO SECOND IN THE WORLD RANKINGS FOR MINING AND MINERAL ENGINEERING, AUSTRALIAN MINING SPEAKS WITH CURTIN UNIVERSITY PROFESSOR, SAM SPEARING, ABOUT PUTTING THE 110-YEAR-OLD WA SCHOOL OF MINES ON THE WORLD MAP. STEVEN IMPEY WRITES.

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n the 50 years Curtin University has housed the over 110-year-old WA School of Mines in the city of Kalgoorlie, the industry has taken a leap into a brave new world and many of its alumni have been leaders in modern day mining innovation.

The region, situated just shy of 600km north-east of Perth, is a “global centre” for mining related tertiary education and research according to its peers – where new technologies have paved the way for students taking a modern approach to the study of mining engineering and metallurgical engineering.

Now, in a landmark year for the campus, the school has been recognised for its contributions to the mining community having been ranked second among 53 of the best schools of mining and mineral engineering around the world and the best in Australia.

“Ours is one of the oldest mining programmes around and, certainly within the School of Mines, the university has developed an international reputation over its past history,” professor Sam Spearing, director of the WA School of Mines, said.

“But it is also pleasing, considering Curtin University is only 50 years old, to see the university is also going toe-to-toe with some of the world’s oldest and most renowned universities and is a credit to the whole staff we have here.”

Originally set up in 1902 in the town of Coolgardie, the school was moved the 40km trip to Kalgoorlie a year later where it has remained ever since.

In the WA School of Mines, there are several courses for bachelors, masters and PhD students to take in the Departments of Applied Geology, Spatial Sciences, Exploration Geophysics, as well as Mining Engineering and Metallurgical Engineering.

Among its fellow schools across Australia, Curtin University was joined by the University of Queensland (third) and the University

THE WA SCHOOL OF MINES IS WELL KNOWN FOR ROCK MECHANICS AND METALLURGICAL RESEARCH

of New South Wales (fifth) in this year’s rankings and came second to the Colorado School of Mines in the United States.

The ranking system is based on four criteria including academic reputation, employer reputation, research citations and the H-index citations, which measures productivity and impact of the school’s published work.

Last year was the first in the QS Mining and Minerals ranking’s history and saw Curtin University placed 19th. In the past decade, Curtin University has been part of the same Mining Education Australia curricular also implemented by The University of Queensland, University of New South Wales and the University of Adelaide.

“To show an example of mining related technology changes, 50 years ago, surveying was all done manually and calculations done using log tables,” Prof Spearing continued.

“Whereas now, we are using drones, lasers and automatic systemmeasuring equipment with amazing accuracy and our Spatial Science AUSTRALIANMINING

researchers are using this technology in the medial health field measuring facial features etcetera.

“A lot of it is centred around that buzzword ‘Big Data’ so, as our industry progresses it is going to perhaps involve less in the overall workforce but many more highlyskilled technicians, engineers, scientists focussing on safety, efficiency and sustainability.

“Engineers Australia requires all engineering students to have a certain number of workplace related hours before they are allowed to graduate and, being in Kalgoorlie – which is one of the few significant mining centres in the world – has big advantages.

“On the mining side, we are very well known in rock mechanics and metallurgical research work around hard rock mining and, in geology, we are very highly ranked for a huge range of work including planetary science, of which a lot takes place collaboratively outside of Australia.

“Within the WA School of Mines, everything we deliver is certainly well regarded, which is very pleasing for

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us and is obviously a useful asset for Curtin University itself.”

As well as mining, the university’s Faculty of Science and Engineering is making strides in other sectors including agriculture, marine geology and planetary science.

Around 30 per cent of the university’s overall student-base comes from abroad while half of the students in the WA School of Mines are international.

Professor Andris Stelbovics, Curtin’s Pro Vice-Chancellor of Science and Engineering, believes the ranking will further establish the university as an industry leader in mining.

“This is the highest ranking the university has received and, as part of a fiercely competitive industry, recognition like this will attract more students from around the world,” he said.

“Going on the ranking, it gives us more visibility internationally as we continue to aspire to be a global university. This is an incredibly good advertisement for our School of Mines and the Faculty of Science and Engineering.” AM

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CONDITIONS RIPE FOR AN INCREASE IN M&A ACTIVITY WITH COMMODITY PRICES STABILISING A RISE IN THE NUMBER OF M&A DEALS IN AUSTRALIAN MINING COULD BE ON THE WAY. BEN CREAGH REPORTS.

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onsolidation in Australian mining has been subdued in recent years, but market conditions may have now reached a point where a revival in mergers and acquisitions (M&A) activity is on the way.

Last year there was a 25 per cent increase in the number of mining deals announced, research by Herbert Smith Freehills found.

Key deals included South32’s acquisition of Metropolitan coal in New South Wales from Peabody Energy, and EMR Capital’s purchase

of the Golden Grove zinc-copper mine in Western Australia from China’s MMG. However, the value of the reported M&A deals was lower than 2015 by a third.

The volatile state of commodity prices over the past year, including for metallurgical and thermal coal, and iron ore, is viewed as a key reason for the continued lull in the M&A marketplace.

But with the value of these bulk commodities rallying in the second half of 2016, it has created a positive outlook that the industry has not seen for several years.

AUSTRALIANMINING

The rapid rise in the value of metallurgical coal in the second half of 2016 was the leading example of this surge, with prices more than tripling to US$300 (A$398.50) a tonne at one point, before falling back to below US$200 in January 2017.

Herbert Smith Freehills partner Jay Leary said the market volatility made it difficult for deals to be executed in the second half of 2016, but with commodity prices improving and more positive sentiment appearing it could lead to an increase in M&A activity.

“With such a volatile market, it is difficult, particularly for

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listed entities to sell or buy in that environment,” Leary told Australian Mining.

“The price of commodities like iron ore and metallurgical coal will be a bit more stable this year. There will be some volatility, but I think there is a floor in the market now, and also a noticeable change in confidence around the sector, whether you are in gold, copper, iron ore or mineral sands.

“There is opportunity out there.

That confidence I think will drive more transactions but fundamentally I think there is going to be a greater ability to set a price on a transaction.”

IT IS AN EXCITING TIME FOR THE INDUSTRY – A REAL PERIOD OF TRANSITION. I DON’T MEAN IT’S BOOM TIME – NOT AT ALL – BUT I THINK IT IS A PERIOD OF MORE THAN OPTIMISATION…THERE WILL ABSOLUTELY BE GROWTH IN IT AND IT WILL BE REALLY SUCCESSFUL FOR SOME COMPANIES.” In addition to the rally in commodity prices, lower production costs and the Australian dollar have also increased confidence in the mining sector, according to Herbert Smith Freehills.

With mining companies achieving significant cost and debt reductions, as well as improved profitability, the company noted it would provide an opportunity for them to refocus on growth plans.

However, Leary believes that M&A in 2017 will also continue to be driven in part by the divestment programs of major companies, such as Rio Tinto, as these initiatives address long-term strategic goals of streamlining and allowing regeneration of asset portfolios.

One major deal proposed so far this year is Rio Tinto’s plans to sell its Hunter Valley thermal coal subsidiary Coal & Allied to China’s Yancoal for US$2.45 billion.

Rio Tinto described the proposed deal as another step in the company’s strategy to reshape its asset portfolio.

The company has announced or completed at least US$7.7 billion of divestments since 2013.

“I don’t think Rio Tinto has finished their sale project yet,” Leary said. “I think it is also possible that Anglo American will look at selling some of their assets – there will be some refinement of their portfolio.”

Coal – both thermal and metallurgical – are regarded by Herbert Smith Freehills as the commodities to watch in the M&A space.

Leary believes metallurgical coal will be the most likely of the pair to feature in transactions, while M&A opportunities in iron ore will remain limited as the sector is already consolidated and quality assets are unlikely to be put up for sale.

He added gold and copper to the list of commodities where there will likely be activity.

“The whole of the mid-tier coal, gold and copper will be the changing face of the mining industry,” Leary said.

“If we move forward two years I

expect there will be some decent sized mid-tier mining companies that have close to a global presence.

The mid tiers are likely to be more aggressive in their risk profile.

“It is an exciting time for the industry – a real period of transition.

I don’t mean it’s boom time – not at all – but I think it is a period of more than optimisation… there will absolutely be growth in it and it will be really successful for some companies.”

Collaborative transactions may also be a key strategy behind upcoming deals, with Herbert Smith Freehills predicting that joint ventures involving arrangements relating to specific aspects of mining operations, such as infrastructure or marketing and blending, are likely.

“Something I see as a real possibility is joint ventures between companies at different parts of the supply chain,” Leary explained.

“It is possible we will see a company that provides transportation of bulk commodities entering into a joint venture agreement with a mining company.”

The company expects to see innovative deal structures employed to bridge the price expectation gap between buyers and sellers. AM

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BLACK LUNG

TAKING STEPS TO COMBAT BLACK LUNG WITH THE 20TH CONFIRMED CASE OF BLACK LUNG IN AUSTRALIA SINCE REPORTS OF THE DISEASE RESURFACED TWO YEARS AGO, THE QUEENSLAND GOVERNMENT HAS BEEN TAKING EXTRA PROTECTION MEASURES FOR MINE WORKERS, BUT IS THIS ENOUGH? SHARON MASIGE REPORTS.

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rom January 12017, the Queensland Government made certain measures to protect coal mine workers against coal worker’s pneumoconiosis (CWP), or black lung, into laws as part of its efforts to reduce the instances of the disease.

These stipulate that all new coal mine workers are to have respiratory function and chest x-rays once they enter the industry; above-ground coal workers must have respiratory function and chest x-rays at least once every 10 years – underground workers once at least every five years; and mining companies must provide dust monitoring data to the Mines Inspectorate every three years. It also enables retired coal mine workers to ask their employer for a retirement examination which includes chest x-rays and respiratory function tests.

Black lung, which is caused by constant exposure to breathable coal dust, was thought to have been eradicated 30 years ago, however there are currently 20 confirmed cases

in Australia. Of these, 19 are from Queensland, with one case affecting a worker from New South Wales.

Following these measures, the Queensland government made reforms to the Mine Workers Health Scheme in March, as an added preventative step against black lung.

At the time, Queensland’s natural resources and mines minister Anthony Lynham highlighted that around 5000 International Labour Organisation (ILO) standard x-rays had been conducted by Queensland radiologists since July last year and reassessed by a United States B-reader – a physician that can detect instances of pneumoconiosis.

However, the state will begin implementing a Queensland based system from July this year that will assess the x-rays twice. There will also be stricter guidelines for those conducting spirometry (lung capacity) tests by July this year as well.

The reforms also include the development of a process for clinically diagnosing CWP, designed in collaboration with medical experts, as well as a health assessment form AUSTRALIANMINING

to gather health information of coal mine workers.

The Queensland Department of Natural Resources and Mines (DNRM) will also implement an electronic health record system by the end of this year, allowing current and former coal mine workers to access their own health records regardless of where they work or live.

“It also means that doctors will have better information and contractors, working for multiple employers, no longer require multiple medicals or x-rays,” Lynham said.

The Queensland Government has also taken additional measures in terms of compensation. Black-lung affected workers are already able to receive compensation through WorkCover and common law damages regardless of their age or employment status.

Under these measures, all medical examination examination costs for former coal mine workers concerned that they have black lung will be paid

by WorkCover; workers with simple CWP, whose disease progresses, will be allowed to reopen their claim

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in order to access more benefits of the worker’s compensation scheme; additional rehabilitation support will be provided to assist workers back into alternative employment; and worker’s compensation arrangements will be streamlined to align them with the Coal Mine Workers’ Health Scheme.

Prior to these addition measures, the Coal Workers’ Pneumoconiosis Select Committee launched an Inquiry into CWP, with public hearings held throughout Queensland since October last year to further understand how the disease resurfaced.

The Inquiry enabled victims, members of the community and experts to give evidence to highlight the impacts of black lung on workers and the community. It also featured input from US black lung expert Dr Robert Cohen, who traveled to Queensland for the hearing. Cohen was also instrumental in identifying a number of black lung cases in Australia.

The Inquiry follows on from previous research on black lung such

BLACK LUNG

as the Monash University study and the findings of the Senate Select Committee on Health.

Initially, the Inquiry’s findings were to be presented to the Legislative Assembly in April this year, however, this has been extended to September.

The Construction, Forestry, Mining and Energy Union (CFMEU), have so far supported the interim findings of the Inquiry and are awaiting its recommendation.

“The CFMEU has supported all black lung victims and led the fight for justice and a safer workplace,” CFMEU mining and energy division president Stephen Smyth said.

“We look forward to being closely consulted on the recommendations and development of the policy response.”

Smyth also highlighted the importance of enforcing reduced legal dust limits before the next state election as well as a monitoring and compliance regime that operates independent of employers.

The current coal dust limit in Queensland is 3mg/m3 of air, which is higher than the level in NSW and the US at 2.5mg/m3 of air. The Select Committee on Health called for the Queensland to reduce its limits to that level, which is the lowest Australian standard.

With the extended due date of the Inquiry’s findings, the Queensland Resources Council raised concerns about the broadening of the scope of the committee even before the Inquiry was complete, with CEO Ian Macfarlane saying it created uncertainty and delayed the outcomes for black lung sufferers.

“Industry is already taking proactive steps to address dust levels on mine sites and we are working with unions and governments to ensure levels are kept below the regulated limits,” Macfarlane said.

Another issue the QRC stressed on was the need for better medical assessments of coal mine workers to ensure any case of black lung is caught early.

“There must be a significant improvement in the standard of medical assessments that our coal workers are required to undergo,” Macfarlane said.

“We want nothing less than the world’s best practice when it comes to the industry. It is vital the radiologists are highly skilled and using the best equipment that is available to make sure that we are getting every case at its earliest stages.”

Ensuring the right fit

Terry Gorman, senior occupational hygienist at 3M, highlighted that the concept of black lung resurging is debatable, suggesting that it has always been here.

“It has just been unreported or undiagnosed rather than not being there,” he told Australian Mining.

3M, which develops a range of safety products and technologies, also designs a range of respirators to protect workers against respirable contaminants.

Gorman emphasised the

BY LAW, ABOVE GROUND COAL WORKERS MUST HAVE RESPIRATORY FUNCTION AND CHEST X-RAYS AT LEAST ONCE EVERY 10 YEARS AND UNDERGROUND WORKERS AT LEAST ONCE EVERY FIVE YEARS

AUSTRALIANMINING

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importance of strict monitoring on site to prevent dust exposure and said more can be done by mine operators in this respect.

“There are always improvements that can happen with the controls that are put in place, whether they be ventilation, other work practices or personal protective equipment improvements,” he said.

Gorman also said more can be done by state governments, particularly in Queensland and New South Wales where the majority of Australia’s coal mines reside.

“Their performance could be better,” he said. “They have certainly taken off focus on the disease in years past and have not been keeping up with their required oversight of the exposures and worker health.

“There have been, as we know now, a number of cases of black lung being diagnosed with the potential for many more to be diagnosed.”

One of the ways to minimise the risks of inhaling coal dust is through respirators, however, Gorman said these are mostly effective when used appropriately.

“In the past [dust exposure] has occurred because not enough attention has been paid to the use of equipment with the training of workers and fit testing for products to make sure they suit the individual,” he said.

Gorman further emphasised the importance of properly fitted masks.

“Tight fitting masks need to conform to the face of the wearer,” he said. “Not all masks fit every face.”

Gorman added the importance of using fit testing to determine if a particular mask appropriately fits the individual worker. He said fit testing should be done when an individual starts their employment and conducted regularly to ensure they still fit.

He further indicated that one of the biggest resistance to fit testing is the clean shaven requirement, whereby any significant facial hair, even stubble, can affect the effectiveness of respirators.

“The [hairs] act like steeples, literally holding it [the respirator] off the face,” he said, Gorman also emphasised steps mine operators can take to ensure they keep their workers protected against dust inhalation.

“Operators should be undertaking regular workplace monitoring to determine the levels encountered by the workforce,” he said. “They should also ensure workers are being provided with equipment suitable for those exposures and that they receive the training required to use the equipment correctly.” AM

AUTOMATION

SANDVIK MOVES FURTHER INTO AN AUTONOMOUS MINING ENVIRONMENT WITH MORE AUTONOMOUS MINING EQUIPMENT ENTERING THE MARKETPLACE, SANDVIK MINING AND ROCK TECHNOLOGY IS FOCUSED ON DEVELOPING NEW SOLUTIONS THAT HAVE BEEN SUCCESSFULLY TESTED IN AUSTRALIAN CONDITIONS.

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andvik continues to evolve as an automationready company in preparation for the future of Australian mining.

The automation story took off at Sandvik in the late 1990s when a team of mining and automation engineers in Finland decided to solve some of the challenges faced by their customers in the industry.

Ensuring safety within mines is both demanding and time consuming,

and it affects the productivity of the mine. Sandvik launched a project in the late 1990s to address these issues through automation. In 2004, the first AutoMine loading system was installed at Codelco’s El Teniente copper mine in Chile.

Today, automation is a hot topic for the world’s mining companies, and one that continues to grow in importance in Australia with companies seeking ways to have visibility to equipment performance, increase productivity with cost efficient methods, while also

maintaining a high level of safety.

Since launching its first major project, the equipment manufacturer has successfully developed several solutions which apply autonomous technology.

Sandvik uses a unique test mine in Finland, located nearby one of the company’s key production sites, to trial autonomous prototypes for potential clients around the world.

Having this test site provides Sandvik with a faster route from idea to market, a key advantage in mining’s competitive environment.

While the test site does provide development benefits for the company, mining conditions in Finland differ significantly from what companies must contend with in Australia.

For this reason, Sandvik is hoping to collaborate with mine operators in Australia to test its autonomous solutions in local mines and establish a better understanding of how they perform in these conditions, according to Sandvik Mining and Rock Technology’s Automation Manager in Australia, Pieter Prinsloo.

SANDVIK LAUNCHED THE FIRST AUTOMINE LOADING SYSTEM AT CODELCO’S EL TENIENTE COPPER MINE IN CHILE IN 2004

AUSTRALIANMINING

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AUTOMATION

SANDVIK’S AUTOMINE GATE

“You are going to deal with different site conditions and mine specific challenges (in Australia), and you are going to have to have a range of capabilities when you work with different customers as well,” Prinsloo told Australian Mining.

“We like to collaborate with local customers, and test our equipment in the real environment as much as possible.”

Prinsloo said Sandvik successfully tested its next generation drills and loaders at the test site in Finland, which was developed out of an old

war bunker into a functional test mine with an underground ore pass.

The next equipment Sandvik is focused on developing autonomous capabilities for, Prinsloo continues, is its underground ramp haulage trucks.

Testing of the capability for haulage trucks will be particularly important in Australian conditions for the company.

“Something that is going to make remote haulage trucking or autonomous trucking work is the capability to steer them effectively over long ramps – anything between

3.5 and 6km, which is how long some ramps are in Australia,” Prinsloo explained.

“In the test mine we can only run the trucks over a couple of hundred metres. So, we are looking at partnering with a local mining house, or a local mining contractor, to trial our ramp automation for the trucks.”

Sandvik’s latest underground trucks – the TH663 and TH551 – are proving popular in Australia, having been designed by the company to deliver power, performance, ease of maintenance and high productivity.

Both trucks also offer more than 60 safety features for protection of operators and maintenance staff, as well as front frame suspension to ensure cabin comfort.

Prinsloo said there was significant potential for these trucks, and upcoming models, at mines in Australia if autonomous technology was successfully added and then trialled in local conditions.

“While there’s not many of them, where mines have separate declines, or twin declines, if you can dedicate one of them to a fully autonomous ramp haulage truck fleet that would be an easy application to get into,” Prinsloo said.

“The challenge is that most mines only have a single ramp so it would be all about that interaction between autonomous and manual equipment – that’s how the majority of applications are going to run.”

Prinsloo said Sandvik did already have a concept for autonomous ramp haulage trucks sharing a decline with manual equipment, but was yet to test it in a real mining environment.

In the case of a dedicated ramp for autonomous trucks, the concept was proven recently in a mine in Finland with a TH551 truck operating autonomously over shift change. AM

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PERSONNEL

TACKLING THE STEM SKILLS GAP THE NUMBER OF YOUNG MEN AND WOMEN STUDYING SCIENCE, TECHNOLOGY, ENGINEERING AND MATHS (STEM) IS STEADILY DECLINING. AUSTRALIAN MINING SPEAKS TO BHP’S CHIEF OF STAFF AND HEAD OF GEOSCIENCE, LAURA TYLER, ABOUT THE IMPORTANCE OF ADDRESSING THE STEM SKILLS GAP.

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report by Engineers Australia has found a continued decline in the number of students choosing science, technology, engineering and maths (STEM) subjects, creating uncertainty in Australia’s future ability to remain competitive in the sector.

The report highlighted a drop in the number of high school students doing intermediate and advanced maths. In 2015, the number of young men in intermediate maths reduced from 38.6 per cent to 28.4 per cent compared to 2001, while for young women, this dropped from 30.9 per cent in 2001 to 20.6 per cent in 2015.

In terms of advanced maths, the number declined from 15.9 per cent to 11.5 per cent for young men; and from 8.3 per cent down to 6.2 per cent for young women.

The report emphasised that participation in Year 12 maths has been getting lower and lower, sparking concerns of a continued

downward trend. An even greater concern is the low number of women participating in maths.

This declining trend was also found in physics, where 21 per cent of young men studied the subject in 2015, compared to 22.3 per cent in 2012. These figures were even lower for women, with only 5.9 per cent of young women studying physics in 2015, compared to 6.5 in 2012.

“The trends for participation are of serious concern because they show a continuation of declines that stretch back several decades and show no sign of stabilising,” the report said.

Several programs and initiatives have been created by various organisations in a bid to combat the dwindling number of students entering the STEM sector, and one of these events is the World Science Festival (WSF).

The New York-based, week-long festival aims to showcase science research and technologies to general audiences.

It was held in Brisbane for the

first time last year, strengthening Australia’s role in boosting the STEM sector.

One of the speakers during this year’s festival was Laura Tyler, chief of staff and head of geoscience at BHP Billiton.

Tyler held an ‘In Conversation with Laura Tyler’ event, where she spoke to 200 high school students – including a contingent of Chinese students that included the festival in their schooling program – about the benefits of entering the STEM sector.

In light of the alarming statistics from Engineers Australia, Tyler said one of the main reasons the company was involved in the WSF was so they could fill the skills shortage in Australia’s STEM sector.

“We need to ensure we are getting the work for the future we need so that the whole of Australia and also BHP gets the workforce with the necessary skills that are gained through a strong STEM study,” Tyler told Australian Mining.

“We need that pipeline of scientists

BHP CHIEF OF STAFF AND HEAD OF GEOSCIENCE LAURA TYLER WITH STUDENTS AT THE WORLD SCIENCE FESTIVAL

AUSTRALIANMINING

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in the university, not only to collaborate with other universities and other researchers, but to make sure that we are producing new scientists and engineers that we’re going to need for the future.”

Tyler believes one of the biggest reasons that may hinder students from joining the STEM sector is because they regard it as too challenging.

“I think they view STEM as maybe being too hard sometimes or that its easier to do something like English,” she said.

“The physics and maths really drop away in grade 11 and 12 and it’s a major concern.”

Tyler added that the work being done at the WSF ties in with the initiatives BHP has been implementing over several years to promote interest and participation in STEM subjects and related programs.

BHP has committed $55 million over five years to Australia’s STEM sector through four main programs including the Choose Maths program; the Indigenous STEM project; the BHP Billiton Science and Engineering Awards and the Australian Science Olympiads.

The Choose Maths program, done in collaboration with the Australian Mathematical Science Institute began in February 2015 and will run until March 2019. The program is designed to alter the negative perception of maths and includes a national ‘women in mathematics’ campaign, providing professional development for teachers at 120 schools nationwide and an awards program for both students and teachers.

The Indigenous STEM project, established together with the CSIRO, is designed to support Aboriginal and Torres Strait Islander students through their education and employment. The five-year program features six elements including a summer school for excellence in technology and science; Indigenous STEM awards; and science pathways for Indigenous communities.

Currently, 3442 students have taken part in the project, with an estimated 12,670 students expected to join over the life of the project.

In conjunction with the CSIRO, BHP also holds the Science and Engineering Awards for students who have conducted practical

PERSONNEL

research projects using scientific or engineering processes. Tyler said BHP has been a key partner of the awards for 35 years, emphasising its commitment to bolstering the STEM skills gap.

BHP has also supported the Science Olympiads, challenging high school science students through exams and competitions.

Around 900 schools participate in the STEM programs offered by BHP. “These are all focused on school kids and feeding the pipeline to encourage them into university to study sciences,” Tyler said.

within the company, as it focused instead on gender balance “We’re aiming for gender balance, which isn’t necessarily a fully-fit statistic, maybe it’s 60 by 45, 55. We’re aiming for that gender balance and

we tend to use that phrase rather than saying we’re going to get 50,” she said.

Tyler also said the company was looking at ways it recruits people, where it sources people from and the opportunities it can bring to enhance

LAURA TYLER SPEAKING AT THE WORLD SCIENCE FESTIVAL

Reaching a gender balance

Another big challenge for the STEM sector is recruiting more women.

According to the Engineers Australia report, the number of female engineers has historically been low, with only 11.8 per cent of women in the engineering labour force, and 9.7 per cent employed in it.

Mid last year BHP launched an ambitious goal to have half its workforce women by 2025. However, Tyler said the phrase of reaching a 50 per cent femal workforce was not used

diversity. She highlighted that BHP’s integrated remote operations centre (IROC) in Brisbane has around 40 per cent women.

Tyler added that it was more difficult to recruit women in older and more established operations, compared to new projects that have more of a chance to have diversity.

Nonetheless, there has been an improvement in having women on site, with Tyler saying the company is seeing a drop in the turnover of women over the past few months.

“We will continue to look at how to make the environment more inclusive, more open toward different types of people and different opinions, and we’re keen to look at the recruits and the recruitment process,” Tyler said.

A last word

With the STEM sector at the heart of several industries, it is crucial to address the skills gap. “[We need to] make sure the skills gap is recognised so we don’t have a shortage of engineers,” Tyler said.

“We need to start thinking about how we need to address it to solve the problems for the next 20-30 years.” AM

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MAINTENANCE

EXPANDING TYRE CARE IN AUSTRALIA FOLLOWING KAL TIRE’S SUCCESSFUL ACQUISITION OF THE MINING TYRE SERVICES BUSINESS FROM KLINGE & CO., THE COMPANY HAS CONTINUED TO FLOURISH IN AUSTRALIA. SHARON MASIGE WRITES.

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n June 2016, Canadian tyre management and supply company Kal Tire acquired the tyre services business of Australian-owned Klinge & Co., thus broadening its reach across Australia.

Prior to the acquisition, Kal Tire operated in Western Australia for nearly six years and later established a tyre repair facility in Muswellbrook, New South Wales as part of its goal to expand across the country. The Muswellbrook facility, which opened on 1 April 2016, spans approximately 10,000 sqm; covering 8000 sqm of hardstand, 1500 sqm of workshop space and the remainder comprises of office space and a carpark.

The acquisition of Klinge’s mining tyre service has strengthened Kal Tire’s offering in Australia. Kal Tire Australia managing director, Darren Flint, told Australian Mining that the arrangement was positive as both companies are culturally aligned.

“Klinge mining services has very similar values to what Kal Tire has because although we are a global business, we’re still family owned and run,” he said.

Kal Tire was established in

RAM MOUNTS ON TROLLEY

Western Canada during 1953, while Klinge, also a family owned business, has been operating since 1971.

Klinge & Co. will remain a software company going forward focused on tyre management systems, tools and training.

Flint added that Kal Tire brought a global methodology along with additional tyre management offerings to a very strong Australian-

based mine services business with the acquisition. In particular, the ability to repair ultra-class tyres with Kal Tire’s exclusive Ultra repair product and process.

Tyre repair

Flint highlighted that the major challenge with repairing tyres is the limitation of what can be done to a tyre.

KAL TIRE ACQUIRED THE MINING SERVICES BUSINESS OF KLINGE & CO, EXPANDING ITS REACH ACROSS AUSTRALIA

AUSTRALIANMINING

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“The mining company wants to run the machines harder, as quick as possible, and carry as much weight as possible,” he said.

“They push the tyre’s capabilities to the limits on a regular basis so [one of the problems is] having the capability to be able to repair damage.”

Flint added that due to the large costs to operators for a damaged tyre, it is important to follow management processes to reduce the potential destruction.

“Some of the damage can be avoided with practices and procedures being followed and implemented,” he said.

“It’s a big cost to our clients so anything we can do to reduce the early life failure of a tyre is conducive to a solution to that appliance problem.”

To reinforce its tyre servicing capabilities, Kal Tire released the Ultra Repair technology in 2014 following the difficulty of repairing ultra class mining truck tyres.

Around 15 years ago, patches that were available to ultra class tyres had the risk of bulging and limited the size of injuries that could be repaired.

“What we’ve identified a long time ago in the Canadian business was the various existing repair methods have limitations so we find that our own repair, the Ultra Repair, allows us to repair larger injuries,” Flint said.

MAINTENANCE

The Ultra Repair patch provides enough robustness to restore a tyre to its original strength, integrity and performance, more cost-effectively then purchasing a new tyre.

It is able to repair tyres up to 63 inch (160 cm) in ultra class tyres.

Flint added that Ultra Repair allows the company to work on tyres that were traditionally discarded and get them back into service.

“Under our repair standards, we can now put these tyres back to work and we bring value back to the client,” hesaid.

Innovation Centre

One of Kal Tire’s biggest focuses is in innovation, which Flint says they take very seriously. He added that the company has its own Innovation Centre in Vernon, British Columbia, in Canada to develop innovative tools and processes to improve productivity and safety of mining operations.

Flint added that the company also encourages suggestions and ideas from its team members that they could use potentially to develop safer, easier and more efficient systems.

“We encourage all our team members to look at what they’re doing and share ideas with the Innovation Centre,” he said.

“Then we have a team of people and graduates from the local university that then look at ‘Can we take this idea into a workable tool?’”

Kal Tire entered into a research partnership with the University of British Columbia (UBC) to further develop technologies for the mining industry.

Under the three-year agreement,

researchers are invited to submit their project ideas to a committee of Kal Tire and UBC’s Okanagan School of Engineering representatives – anything from robotics to environmentally friendly ways of using recycled tyre crumb.

These items are then tested inhouse before they are taken to be adapted globally.

“We are continually looking at new and innovative ways of doing things,” he said.

One of these innovations is the gravity assist system which allows technicians to weightlessly shift tools and other parts, reducing the possibility of injury. The tool minimises fatigue, instances of pinched fingers, and strain that occurs when mounting earthmover tyres.

Another one of Kal Tire’s innovations is the ram mount tool which secures the ram when breaking the bead. It avoids using tools not designed for dismounting procedure, allowing technicians to work safely and improve service performance.

The company has also designed a pneumatic and an electrical trolley which can be remote controlled, allowing workers to stand at a safe distance away from the truck area.

Future expansion

The company is looking at growing its business in Australia, with a main focus on organic growth.

“We see Australia as a long term mining region and Kal Tire is serious about being here,” Flint said.

“We will always look for opportunities to grow and increase our capabilities and offering.” AM

AUSTRALIANMINING

KAL TIRE’S ULTRA REPAIR SERVICE

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CASE STUDY

NEW MILL GRINDS DOWN COSTS AND BOOSTS EFFICIENCY AT SAVAGE RIVER METSO HAS SUCCESSFULLY DELIVERED THE FIRST OF TWO NEW MILLS AT GRANGE RESOURCES’ SAVAGE RIVER IRON ORE MINE IN TASMANIA. AUSTRALIAN MINING WRITES.

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range Resources owns and operates Australia’s largest integrated iron ore mining and pellet production facility and is the country’s oldest magnetite producer.

The company’s Savage River magnetite iron ore mine and concentrator is located 100km southwest of Burnie in north western Tasmania.

An overview of the “from mine to metal” process at Savage river, starts with the crushed, stockpiled magnetite ore being transported via a tunnel system and fed into the concentrator. Here the ore is initially ground in two Hardinge 9.75 x 3.66 metre autogenous (AG) mills, followed by two Nordberg 8.84 x 3.96 metre ball mills.

Magnetic separators then isolate the magnetite from the gangue (valueless adhering rock), with the fine-particle gangue being pumped to tailings dams. The rich iron concentrate slurry is pumped via an 83km pipeline to the pellet plant at Port Latta.

The company ranks the reliability of product supply, quality and volume, combined with aggressive pricing,

as vital interdependent ingredients to successfully operate in the highly competitive iron ore market.

Wayne Peck, Grange Resources’ engineering superintendent, explained: “From an operation perspective each of these factors have to be consistently met, with little margin for error. Starting from the pit, right through to the end of the ship loader, our customers’ requirements are our focus – ‘from mine to metal’ as we say.

“Reliability of supply depends on the performance of our personnel and the processing equipment they use; while remaining price competitive depends on keeping our costs in check. Energy is our biggest cost, and an area where even small changes can have a big impact.”

A need to upgrade

The two Hardinge AG mills were originally installed in the late 1960s, and by 2005 maintenance personnel noticed cracks starting to appear in their shells and cones.

The mills required ongoing repairs which resulted in plant down time and there was always the risk of a catastrophic failure.

With the mine’s operation expected to extend till at least 2034, Grange’s AUSTRALIANMINING

management team decided that in order to ensure concentrator reliability and to improve output efficiency, these mills would need to be upgraded.

In 2011, the company awarded Metso an $8 million contract to engineer, supply, install, and commission the first of two planned new mills.

The project scope involved increasing production volume with a new rotating element that would accommodate a charge weight of 344 tonnes, but with the requirement to use the existing footprint and some of the components from the original 1966 mill.

This specific requirement introduced a great deal of complexity to the design. A high level of detailed analysis to assess the impact of increased stress due to the new larger rotating element was required.

A key to the success of the project was the review of the bearing housing structure and ensuring adequate lubrication.

Contract award

Metso’s overall experience in mill design and manufacture has been accumulated from the companies that it acquired over the years.

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Hardinge was one of these acquisitions, so Metso had the original design drawings as well as extensive experience and intimate knowledge of these mills. The plant’s Nordberg ball mills are also a Metso product.

The company’s expertise held it in good stead to take on the project.

Tim Dunbabin, Grange Resources’ senior project engineer, commented on the decision to award the contract to Metso: “Our engineering team had done a great job of extending the mill’s 20-year design life to over 45 years. So, while there is no doubt that the mill was at the end of its life, we mainly needed better reliability and efficiency.

“Metso had been involved in many of the repairs to the old mills, and so, we had first-hand experience of their expertise, capabilities and service levels. This, together with the Hardinge mill design being Metso’s intellectual property, really helped to mitigate our risk.”

Wayne Peck cited Metso’s ability to offer a complete package as a key deciding factor. “While we were familiar with Metso’s capabilities, for me the main decision lay in the overall package. Although other suppliers had the elements of good expertise or comprehensive

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INSIDE GRANGE RESOURCES’ SAVAGE RIVER MAGNETITE CONCENTRATOR WITH METSO’S STEVE SEARLE AND JOHN ARAN.

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AUSTRALIANMINING

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CASE STUDY

equipment supply, when we looked at Metso we had the whole project covered. If we had an issue, we would only need to direct questions to one point of contact.”

Unique design constraints

The original mill was based on a single shell design, and although it had lasted more than 45 years, the new design had to be stronger to ensure trouble-free operation beyond the mines expected lifespan of 2034.

So, in the first instance, Metso’s new design replaced the single coneshell with a two-piece structure that was 3.6m wide (distance from feed to discharge) and featured long-life Polymet rubber liners.

To provide sufficient space for these liners, the new mill had to be 10m in diameter, 30cm larger than before. The larger shell, together with thicker stronger steel construction, meant that the new mill was 20 per cent heavier than the old one.

RELIABILITY OF SUPPLY DEPENDS ON THE PERFORMANCE OF OUR PERSONNEL AND THE PROCESSING EQUIPMENT THEY USE; WHILE REMAINING PRICE COMPETITIVE DEPENDS ON KEEPING OUR COSTS IN CHECK. ENERGY IS OUR BIGGEST COST, AND AN AREA WHERE EVEN SMALL CHANGES CAN HAVE A BIG IMPACT.”

METSO’S JOHN ARAN DISCUSSES MILL PERFORMANCE WITH GRANGE RESOURCES ENGINEERING MANAGER FRANK LOVELL.

AUSTRALIANMINING

In order to avoid the need for additional civil works and to keep costs down, the new mill had to be installed in the same position as the old one.

To ensure that the existing structure could accommodate the extra weight and size of the new mill, Metso had to perform extensive FEA’s (finite element analysis) and carefully consider alternate designs.

Key to the successful design of the new mill, was the ability of the mill’s bearings to cope with the increased weight. A simple overview of the bearing components helps to explain how important this aspect was.

Starting from the centre and working outwards, first is the trunnion, the shaft that extends out on both side of the mill and which passes through its axis.

The trunnion rests on a bronze bush that provides the bearing with its crucial lubrication. The bronze bush is supported inside the bearing housing by the rocker.

As its name suggests, the rocker allows the mill very small lateral movements from side to side along its spin axis. Important to note is that the trunnion rolls in a 0.2-0.4mm film of oil that is pumped at high pressure through ports in the bronze bush.

Because no civil work could be considered, stiffening the bearing could only be achieved by thickening the rocker and the brass bush.

The increase in load and reduction in bearing clearance meant that the force per unit of area (pressure) increases. Then of course there was the additional weight that also had to be taken into account.

John Aran, Metso’s grinding product manager, explained: “Making it strong enough was the easy part, next we had to design a lubrication system that would keep the trunnion suspended above the bronze bush with a 0.4mm thick oil film.

“There are no off-the-shelf designs for this, so designing an effective and reliable lubrication solution that included a custom-built cooling and filtering system, involved input from Metso’s experts across the globe.”

“Just imagine pumping oil at 10,000 kPa at a rate of 15 litres per second to achieve a 0.4mm thick film that needs to lift and support a rotating element 10m in diameter and weighing over 500 tonnes on each bearing. There are so many interdependent variables, providing a solution to this unique arrangement gave us all a great sense

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of achievement,” he said.

The base plates that the mill’s bearings sit on also presented an engineering challenge. They had a flatness tolerance of 0.13mm over the entire surface, with a 0.025mm tolerance over an area of 300 x 300mm.

The parallelism tolerance between the top and the underside surface was just 0.13mm. Such precise tolerances are even difficult to achieve in a controlled environment like a machining workshop.

Brian Bunch, Metso’s QA engineer, explained: “Because all the work would be carried out in the field rather than in a workshop, I was keen to see how closely the team would achieve these tolerances in an operational site environment where the base plates had to be positioned using site surveying equipment.

“The attention invested into these fine details by the project team resulted in an almost effortless installation. Once the sub-sole plates were aligned correctly, the base plates were lowered into position and there was no need for any shimming or additional ‘tweaking’ to attain the required flatness.”

Engineering challenges

Dan Tonks, Grange Resources’ projects design engineer, was deeply involved in the design aspects of the plant’s infrastructure upgrade which had to facilitate and perfectly match the new mill’s design.

Talking about the design challenges he faced, Tonks said: “It might sound straight forward, but the infrastructure upgrade consisted of components sourced from different manufacturers located all over the world.

“Together with Metso, we invested in a lot of interactive and iterative planning to make sure everything matched up. An error in the most minor detail, for example bolt-hole sizes, could be a disaster for the project. So, there was a sense of pride, and relief too, when everything came together and matched up so perfectly,” he said.

Work space during the dismantling of the old mill and the construction of the new mill was a major challenge.

Frank Lovell, Grange Resources’ engineering manager, commented: “Originally the mill was built first and then the building was built around it.

So, working on removing the old mill and installing the new mill within

CASE STUDY

the existing building presented major restrictions.

“We had lifting weight and size limits, as well as difficult work access.

The fact that the whole project was completed without a single safety incident is a credited to the way Metso’s design addressed these construction complexities.”

Big wins for efficiency and safety

Talking about the success of the project, Steve Searle, Metso’s regional manager for mining services said: “Metso didn’t just supply the components and technical expertise for the installation, we were an integral part of Grange’s engineering team. This approach makes such a big difference on a project like this.

“We worked through all of the issues together to ensure that the installation ran smoothly and on time. The installation process was developed with the Grange team, and we performed each operation as a unified team. The outcome is a new mill, which together with the new drive system, will provide the plant

with 19 per cent more capacity.”

Wayne Peck also highlighted how the close inter-company teamwork maximised efficiency and cost reductions. “Working so closely together on the project meant that Metso could assist us to look at the design of the project as a whole, not just to consider the quickest or lowest cost solution, but to look at improving quality and throughput, reducing running costs, and overall long term maintenance,” he said.

Dan Tonks, the project’s design engineer reviewed the outcomes of the project: “Efficiency is a big benefit that has been gained from this project. The mill is now grinding more, using the same power.

“Equally as important for Grange, are the safety benefits that the new mill has provided. In particular, both our staff and contractors have praised the new mill’s better overall access and larger size work area. The guarding on the rotating elements is greatly improved and easier-to-handle. In my view, the project receives big ticks for safety, efficiency, and cost reduction.” AM

AUSTRALIANMINING

GRANGE RESOURCES PROJECTS DESIGN ENGINEER DAN TONKS.

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ENERGY

FLOW POWER’S SMART SOLUTION TO SAVING MONEY ON POWER FOR YEARS, ENERGY COMPANIES HAVE KEPT THE INDUSTRY BLINDFOLDED ABOUT THE INNER WORKINGS OF THE POWER GENERATION MARKET. THAT IS ABOUT TO CHANGE THANKS TO A NEW PLAYER ON THE SCENE. MIKE WHEELER EXPLAINS.

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olling blackouts, power cuts and downtime are what happens when electricity demand outstrips supply.

November 2016 saw unseasonably hot weather put a huge load on South Australia’s electricity supply. This caused the Australian Energy Market Operator (AEMO) to cut power to thousands of homes in the state. The same fate awaited New South Wales but for the intervention of AGL Energy who cut power to the Tomago aluminium smelter near Newcastle.

This should never have happened, according to a new player in the energy retail market, Flow Power.

It was knowing that these scenarios were a matter of when, not if, they were going to occur, that got Matthew van der Linden thinking “there must be a better way”. Thus, Flow Power was born. Flow Power gives companies access to wholesale prices that are usually the purview of retail energy suppliers.

“We recognised very early on in the piece that a great way to save customers money was to open up customers to the wholesale electricity market,” managing director van der Linden said. “But to really scale it up, we had to create a retailer.”

Being at the mercy of market forces and nature is no way for mining companies that operate at their maximum. Most mines are a 24-hour operation where an assured power

supply is a necessity – not only for the mining extraction and processing itself, but for the safety of staff who operate in these environments. Power is also a high fixed cost that eats into the bottom line of profitability.

Flow Power allows consumers to access the wholesale market with all the benefits that entails. The company offers two solutions for consumers – the Freedom package or Mastery.

Freedom is a spot market price that can save mining operators tens of thousands of dollars over a four- or five-hour period every year.

“The average price for electricity is around about eight cents a kilowatt at the moment,” van der Linden said. “Very rarely, for short stints it can go up to $14 a kilowatt an hour.

When you convert that $14 a kilowatt hour to an operation that is running megawatts per hour, you’re talking tens of thousands of dollars in savings over that small period of time.”

Flow Power helps operators spot those times so they can then adjust their energy needs. For example, this might entail a mining operation shutting down a crusher, or other high-energy use plant, over those short periods of time. Alternatively, they can shift to local generation sources, like a generator or battery storage. It’s been a challenging project, van der Linden explains, but Flow Power has put a lot of effort into making the process easy to follow.

“There were regulatory issues and

AUSTRALIANMINING

billing issues and also technology issues,” van der Linden said. “We’ve actually put a huge effort into developing our kWatch Intelligent Controllers that can go onsite and provide signals about when to pump, or when to start the generator, or when to shut down, or when to shed load.”

Companies can cash in on the high prices, too. If you have a generator, you can make money during those high-use times by generating electricity and putting it back onto the grid.

“If you’re generating power and putting it back into the grid then you will be earning $14 KW hour,” van der Linden said. “It is a very good market for anybody who has a generator.”

Van der Linden said another benefit of the spot market is that it can help alleviate outages similar to those have occurred in South Australia. “The power market is one of those markets where you have to generate enough power to meet consumer needs,” he said.

“The mechanism the market has designed to fix that was to allow the price to go through the roof for very short periods of time. This is done to encourage consumers to reduce their

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FLOW POWER’S KWATCH INTELLIGENT CONTROLLER

ENERGY

AN ASSURED POWER SUPPLY IS A NECESSITY ON MINE SITES

load. However, traditional retailers have shielded consumers from this price signal. [Consumers] don’t see it. You sign up a fixed contract and nobody cares what’s going on.

Essentially what happens is SA gets blacked out. Fixed price electricity means inefficiency in the market and they stop it working effectively. What we are doing is creating a connection between the two.”

He goes one step further to reiterate the point, using the South Australian blackout as an example.

“In February, the AEMO intervened and cut power to homes,” he said. “We estimated that if we had had 500 industrial customers responding to market signals at that point in time there would have been no shedding. It would have enabled the system to cope more easily. We did have customers in South Australia at the time, but not enough to make a difference.

The [types of companies that could make a difference] are relatively small industrial customers who spend about $100,000 per year on electricity.”

Then there is the Mastery package.

This follows the more traditional route taken by business. “[Mastery]

is more like what most people are used to. It puts a ceiling on the price you can be charged but means you get access to the low points of the market,” van der Linden said. “You have some mining enterprises out there that have critical operations that can’t shut down because they are circulating air or pumping water.

They need to have assurance about their energy supply.”

However, van der Linden reiterated that both products are popular with industries. “Historically, most are on the Freedom product,” he said. “It really is industry specific. In mining you will have a mixture of both. They actually work very well together. You might even have some sites that need Mastery and some sites that need Freedom. We can do both without any issues at all. You can come up with a solution easily. It depends on the customer.”

While Flow Power is a champion of both types of deals it is continuing to find new ways for customers to reduce their energy costs. The company is giving customers direct access to power from solar plants through solar power purchase agreements (PPAs). It makes sense with Australia being one of the sunniest places in the world.

AUSTRALIANMINING

This model offers not only fixed prices but fixed contract lengths, too.

And it is the length of the contracts that might surprise some consumers.

“If you put solar panels on your land or roof, it can be complicated and expensive,” van der Linden said.

“Alternatively, the solar plants can be built where the sun shines best and any commercial customer in that state can sign up. Because it’s a large solar farm, it is quite cost effective. It fully competes with onsite solar as far as price. You sign a 10-year contract and you get your energy fixed for 10 years.

This allows companies to budget accordingly.”

However, consumers have to realise that solar will only cover part of a company’s energy requirements.

“Solar doesn’t cover all needs,” van der Linden said. “If you are a 24-hour operation like a lot of mining companies are, you’ll still need to deal with the other methods.”

Van der Linden is adamant that Flow Power is on the right track and using the right formulas to make sure Australia’s energy needs are not only streamlined and dependable, but transparent to the consumer. He doesn’t expect to make too many friends in the energy market, but

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has no regrets about Flow Power’s approach. To him, the consumer and Australia’s energy sector can have a complementary relationship – one that has been a long time coming. AM

FLOW POWER MANAGING DIRECTOR MATTHEW VAN DER LINDEN

SAFETY

WELDLOK DELIVERS IN FULL AND ON TIME NEPEAN BUILDING AND INFRASTRUCTURE’S WELDLOK EQUIPMENT CONTINUES TO DELIVER SAFETY IN THE WORKPLACE WHILE STILL ENHANCING PRODUCTIVITY.

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ending handrails and shaping walkways has been part of Nepean Building and Infrastructure’s design, manufacture and supply service since the company’s inception more than 40 years ago. Along the way the Weldlok brand has been synonymous with this success and that is set to continue with the recent acquisition of a computer numeric control (CNC) plasma grating profiler and automated pipebending machine. This equipment uses customer supplied computer aided design (CAD) files removing the need for outdated templates and consequent manual mark-up with possible translation errors.

At the heart of the Weldlok offer is to ‘delivering exactly what you want, when you want it’. This is a philosophy that Nepean B&I’s

managing director Dr Anthony Sive not only embraces but says is set in stone when it comes to delivering for customers.

“Our product development is driven by what our customers tell us they want,” Dr Sive said. “We are not a company that tells customers how they should do things. We ask them what they want and then listen carefully. And we deliver exactly what they want and exactly when they want it. Part of this brief is to make sure we have the latest technologies available to meet these customer demands.”

And how does the new Weldlok equipment help meet these demands? “[For example], from a safety perspective in new plant rooms you don’t want people leaning over handrail around equipment,” Dr Sive explained.

“They need to be able to walk right up to the equipment to be maintained with no obstruction. So

our customers want grating that is cut exactly to fit around the equipment and the shape of the grating as a consequence can be quite complex.

In the old days it was cut square with a handrail and there would be a big gap between the grating and the equipment. The new Weldlok machines eliminate all of that because we can now cut complicated shapes accurately. And where needed we can bend pipe for handrail into complex shapes to exactly meet what customers want.”

While Weldlok products are highspec and demand great attention to detail during manufacture, cost is import-competitive due to savings as a result of utilising these latest technologies.

“There is significant reduction in waste,” Dr Sive said, “which helps us keep our costs world competitive.

We can’t have our costs more than

THE NEW CNC MACHINES CATER TO MORE DIFFICULT DESIGNS SUCH AS THE RED BUFF SHARED PATHWAY IN ELEEBANA

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the next guy. We have to figure out a way to do that and reducing waste is the key to being competitive. You also need to be efficient and figure out how to reduce time while still getting a quality product.”

When it comes to the final product, Dr Sive is confident that customers will be happy with the outcome. “Part of the reason we don’t talk about quality and competitive pricing is because that’s what customers expect,” Dr Sive said. “They are not options. And we have to manufacture products that meet expectations.”

With the new grating plasma profiler and pipe bending machine Weldlok has improved lead times and reduced waste while producing products that meet customers increasing demands for high accuracy solutions to complex tasks. A win-win for all. AM

SAFETY

EARLY DETECTION OF CONTAMINATION, WHEN EVERY SECOND COUNTS HAVING A CLEAN WATER SUPPLY IS ESSENTIAL – ESPECIALLY IN REMOTE LOCATIONS. WITH GUIDELINES IN PLACE, HOW DOES INDUSTRY KEEP ITS WATER SUPPLY SAFE? MIKE WHEELER REPORTS.

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n November 2016, more than 3000 homes and businesses in north Dubbo, New South Wales were affected by an E. coli bacteria outbreak found in the regional town’s drinking water. E. coli is one of the leading causes of gastroenteritis and can be potentially fatal if patients are not treated timely.

The incident brought up a couple of important questions – how safe is Australia’s water supply and how quickly can the public be made aware if it becomes contaminated? Having a secure source of drinking water is something that is a given in most cities and towns in Australia. The country’s first world infrastructure ensures that the chances of catching a bug is reduced compared to other parts of the world. Most of Australia and New Zealand’s supply comes from surface and groundwater, with some remote areas completely relying on bore water.

However, constant vigilance is needed to make sure the drinking water is kept free from waterborne diseases. This also includes Australia’s primary industries such as mining where a supply of fresh and contaminant-free water is a must for its workforce, especially for those thousands of workers who live and work in remote locations.

The Australian Drinking Water Guidelines 6 2011 (updated in 2016) from the National Health and Medical Research Council highlights what the greatest risks are to the public and who is responsible for keeping the water supply free from pathogens: “The greatest risks to consumers of drinking water are pathogenic microorganisms. Protection of water sources and treatment are of paramount importance and must never be compromised,” and that “System operators must maintain a personal sense of responsibility and dedication to providing consumers with safe water, and should never ignore a consumer complaint about water quality.”

With that in mind, the onus is on both municipal authorities and employers to make sure that the water quality is constantly monitored to meet industry standards. And although

those in charge of our water supply are diligent, other factors are starting come into the equation.

Deloitte’s State of the Water Sector Report from 2015 stated that although the security of water supply was good, population growth and climate change are two of the greatest challenges for a safe water supply over the next five years. These issues could also have an impact on the quality of drinking water available to workers in remote locations, such as mine sites.

Because there are many bugs and parasites that can infiltrate the water systems, it is essential that the right monitoring equipment is available, and the correct procedures in place, to protect the supply.

Thermo Fisher Scientific has an array of specialised products designed to make the environment cleaner and healthier. This includes automated instrumentation that measures water quality and detect any contaminants that may be present.

A recent example of the company’s solutions coming to the fore was

when students from Massey University’s Wellington campus in New Zealand used the Tecta B16 to detect contagious contaminants, such as E.coli and Total Coliforms pathogens in drinking water at various sites in the great Wellington region.

one step further for those who want a comprehensive solution with quality issues in the water. The company offers a workflow solution for water quality testing and precise elemental analysis – from water sample testing, online and field monitoring, to

THE GREATEST RISKS TO CONSUMERS OF DRINKING WATER ARE PATHOGENIC MICROORGANISMS. PROTECTION OF WATER SOURCES AND TREATMENT ARE OF PARAMOUNT IMPORTANCE AND MUST NEVER BE COMPROMISED.” Researchers received accurate testing results in only 2-18 hours, twice as fast as traditional procedures.

Not only was the equipment reliable and easy to use, but also gave super quick results, which is crucial when trying to contain a breakout of waterborne diseases.

While the Tecta 16 fulfilled its role, Thermo Fisher said it can go

complex contaminants and compounds analysis to find out exactly each element in the water, through cuttingedge technologies developed by industry experts.

Having a secure drinking water supply – especially in remote locations – is a given in most cases. Quality process water also ensures productivity and reduce overall operating costs. AM

WATER QUALITY MUST BE TESTED TO ENSURE THE SECURITY OF WATER SUPPLIES

AUSTRALIANMINING

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FINANCE

EMERGING METALS POTENTIAL GUIDES COMPANIES TO ASX LISTINGS INITIAL PUBLIC OFFERINGS (IPOS) BY AUSTRALIAN MINING COMPANIES HAVE BEEN HARD TO COME BY IN RECENT YEARS UNTIL A RESURGENCE IN ACTIVITY IN 2017. BEN CREAGH WRITES.

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isting on the Australian Securities Exchange (ASX) was a difficult task for junior mining companies following the downturn in commodity prices earlier this decade.

Due to the challenging market conditions investors were reluctant to fund mining companies and instead pursued better-performing sectors like technology.

However, with a cautious optimism emerging in the mining industry since the second half of 2016, prospects for fledgling companies seeking to list to raise funds for project development have improved.

One company that successfully listed on the ASX in February was Ardea Resources, which is led by managing director Matt Painter.

Ardea, a spin-out of Heron Resources, is focused on developing the cobalt potential at its 100 per cent owned Kalgoorlie Nickel Project (KNP) in Western Australia, as well as the Lewis Ponds zinc-gold

project in New South Wales.

KNP is regarded as the largest cobalt resource documented for an ASX-listed Australian mineral explorer. And with cobalt becoming one of the world’s most sought-after commodities, it made Ardea the type of company that could effectively seek a listing in the current environment.

Painter told Australian Mining the emergence of tech-metals, such as lithium, cobalt and vanadium, was driving the next breed of companies seeking to list on the ASX. “There has been a realisation in the marketplace that the batteryrelated metals are going to be vitally important and there is going to be a shortfall of them,” Painter said “Certainty we have seen that with lithium already, we have seen it to an extent with graphite, we are starting to see it with cobalt now.”

Data on the ASX at the end of first quarter of 2017 shows this assessment is spot on. Among the companies that listed during this period were lithium

hopefuls MetalsTech, Lithium Consolidated Mineral Exploration, Matador Mining and Marquee Resources.

Joining Ardea as a company that listed with plans to develop cobalt prosects was Cobalt Blue Holdings.

“With the focus on these metals it has become quite clear that places like Western Australia have an endowment of most of the minerals,” Painter continued.

“It is something that people can see is coming and it is helping to develop a bit of optimism in the sector as well.

The amount of lithium prospects in WA is phenomenal. As it turns out we have quite a bit of cobalt as well and we are happy to say it is ours.”

While Ardea may have fallen short of its $6 million target at IPO, by raising $5.1 million, Painter believes the company is well placed to fund its upcoming activities.

He said, importantly, the funding would allow the company to advance development of the cobalt zone at KNP. THE GOONGARRIE SITE AT THE KALGOORLIE NICKEL PROJECT.

“We are standing on the shoulders of giants there – we’ve had Vale Inco and Heron in there, they’ve done extensive studies on it before and their data is magnificent,” Painter explained.

“We can now move on that and refocus on their data from various viewpoints to allow us to get a prefeasibility study out for a very small budget.”

Despite volatility in the marketplace, Painter believes the company attributes that have always led to a successful IPO remain the same today: quality projects and a clear focus on how they will be developed.

For Ardea, the quality of the KNP and Lewis Ponds projects was always there. However, Painter conceded that the company did switch its focus midway through the process after realising the potential of KNP’s cobalt resource, in addition to it being a nickel prospect.

“Cleary our focus did shift somewhat. But certainly, it became clear that when we did define our focus with the cobalt then things started to lift – assuming you have a good quality set of projects you are going to get there,” Painter concluded. AM

ARDEA RESOURCES MANAGING DIRECTOR MATT PAINTER.

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TRACKING THE TRENDS

DEVELOPING ECOSYSTEMS IN MINING COLLABORATION AND UNORTHODOX PARTNERSHIPS ARE SHOWING THEIR IMPORTANCE FOR THE MINING INDUSTRY IN AUSTRALIA.

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cceptance of the value collaboration adds to the Australian mining industry took a step forward in 2016, according to Deloitte Australia national mining leader Nicki Ivory.

Mining companies and organisations have historically been reluctant to work together to solve issues that affect the industry.

In today’s environment, these might be declining grades, the inability to secure financing or managing changing regulatory environments.

However, the need to be innovative in the wake of the commodities downturn gradually brought collaboration to the fore, with 2016 being a significant year where the industry started to see a change, Ivory told Australian Mining.

“We had been talking about it for a while but (last year) we started to see companies that had a go-it-alone mentality suddenly taking steps to be part of a broader collaboration,” Ivory said.

This change was demonstrated when Austmine launched the initiative, Collaboration Laboratories, or CoLabs, which brought key stakeholders from Australia’s mining, equipment, technology, service and research entities together to brainstorm the challenges facing the industry.

“That was an astounding change,” Ivory said. “People from competing companies were sitting around a table together trying to solve industry problems. It sounded too good to be true, but there now seems to be a real willingness to embrace that and make it happen.”

INDUSTRY COMPETITORS ARE NOW JOINING FORCES TO SOLVE PROBLEMS TOGETHER.

The result of this change is the emergence of a mining industry ecosystem where companies and organisations at all levels are working together to solve collective problems.

This is also a case of the mining industry finally learning from what

has worked in other industries, Ivory added. In the past, factors such as a reluctance to trust each other, concerns around sharing intellectual property and technological challenges around sharing data slowed mining’s adoption

“We have seen (ecosystems) in other industries. This is an example of stuff that has been done well in other industries, like medical research for example, where it has been done well for many years,” Ivory said.

“Hopefully the conversations mean that they all start putting heads together to solve the problems that they have grappled with on their own.

“These are well known problems – mines are going deeper, grades are moving lower – you have to find new ways to unlock orebodies at a cost that makes economic sense. There are some very real problems that everyone is facing and no one has cracked it on their yet.”

Deloitte identified three leading strategies that help new mining ideas gain traction: • Turning vendors into partners: By working collaboratively with services companies and suppliers to resolve common problems, Deloitte believes these relationships encourage partners to uncover ways to save money, improve productivity, enhance efficiency and strengthen supply chains.

• Collaborating with competitors: This may go against the historical grain, but Deloitte believes a strong business case for this type of collaboration exists, especially for companies with geographically proximate mine sites.

• Building extended partnerships: Effective ecosystems are designed to encourage collaboration among all industry stakeholders, according to Deloitte, which added that establishing them would position companies to realise increased opportunities for innovation. AM

Phone: 1800 082199 sales@lacrossetechnology.com.au http://shop.lacrossetechnology.com.au

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PRECIOUS METALS

GOLD OVERCOMES CHALLENGES TO REMAIN STRONG ABC BULLION GENERAL MANAGER NICHOLAS FRAPPELL REVIEWS THE PERFORMANCE OF THE PRECIOUS METALS SECTOR DURING THE FIRST QUARTER OF 2017.

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old may not have experienced the heady initial run that it did in February, but the precious metal was trading higher in US dollar terms than it did at the close of March 2016.

This movement came as the market re-appraised the performance of the US presidency of Donald Trump and the likely impact on the currency and US federal policy.

US president Trump failed with a replacement of the Affordable Care Act – often referred to as “Obamacare” – not long after humiliation at the hands of the FBI over “wiretapping” claims. This followed his national security advisor Mike Flynn stepping down over links to Russia, and before that, the judicial up-ending of an executive order on immigration.

After the litany of errors, markets started to seriously doubt the Trump administration’s ability to deliver the fiscal boost that lies at the core of positive expectations about the dollar and interest rates.

Nonetheless, the quarter ended with the presidents of the New York and Boston branches of the Federal Reserve, William Dudley and Eric Rosengren, warning that 2017 carries strong upside tightening risks, with Rosengren outlining the need for three rate rises.

As is so often the case, the rise in federal funds in mid-March saw weakness in gold preceding the decision, and a rally afterwards.

Gold’s year to date (YTD) performance is 8.3 per cent, based on spot price, according to Bloomberg.

In January, gold rose from US$1150.60 (A$1527) to a high of US$1220.26. The rally stopped at the 38.2 per cent Fibonacci retracement of the down move from the 2016 high to the 2016 low.

The price closed the month at US$1210.70, right at the monthly standard line on the Ichimoku cloud.

Investor behaviour saw managed money shorts buy back 2.04 million fine troy ounces (Ftozs) of gold. Fresh long positions only amounted to another 0.831 million Ftozs, as shorts bought back two-and-a-half times more gold than new buying.

Managed money short positioning had reached a local maximum of 9.122 million Ftozs at the beginning of 2017, the largest short bet in managed money since early January 2016, when shorts were at 9.5 million Ftozs, after peaking at 11.055 million.

Net CME gold futures positioning declined to a small net long position of 3.65 million Ftozs, as shorts entered the market at around US$1143 levels.

True to form, the country’s admittedly shaky statistical analysis,

which regresses “net Comex futures positioning against the price of gold 12 weeks later” suggested a price rally of US$65-70 dollars from spot prices at the beginning of January through the first quarter. What a shame not to pay attention to that at the time.

Gold exchange traded fund (ETF) interest revealed minor outflows during January, of 156,124 Ftozs, of no real significance.

News-wise, January was dominated by the inauguration of President Trump, and rising expectations for higher federal rates, as the US economy remained (effectively) at full employment with an unemployment rate of 4.7 per cent, tempered by low labour participation rates.

In February, the price rose from US$1210.70 to US$1264, before closing just below US$1249.

This time the price closed right at the monthly Ichimoku

GOLD HAS BEEN STEADY IN 2017.

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turning line, another resistive level.

Positioning on the CME underwent a net change of 4.44 million Ftozs upwards, as longs started to stack on fresh positions faster than shorts bought back loss-making positions.

Shorts bought back 1.864 million Ftozs. The volume weighted average price (VWAP) for February was US$1236.80, whereas the December VWAP was US$1161.70, a period when gross managed money shorts added another 1.871 million Ftozs to their bet that gold would weaken further.

Not surprisingly, shorts were pushed out as prices rose. Gold ETFs rose 70,108 Ftoz during that period.

PRECIOUS METALS

March opened at US$1248.60, rallying to US$1261, but could not break the February high. After the Federal Open Market Committee (FOMC) meeting, the price has rebounded to almost the opening levels for the month.

The final month of the quarter was dominated by the FOMC meeting and the near-certainty the federal fund target rate would rise by another 25 basis points.

The price weakened ahead of the meeting as the probability of a rise, as measured by changes in the relative price of treasury futures, increased from the low thirties to the midnineties.

Commodity Futures Trading Commission (CFTC) data showed managed money gross long positioning declined from a high of 16.644 million Ftozs on February 28 to 12.118 million Ftozs on March 14, just ahead of the federal meeting, before recovering to 15.087 million Ftozs by March 28.

The first week of selling was at US$1237, roughly equivalent to the previous month’s average. In the second wave, a reduction in length of almost three million Ftozs, took place at US$1207.

Shorts started to add to the positions again, adding 2.187 million troy ounces (Tozs) until March 21, during a fortnight where the VWAP for CME active gold was US$1221.70, before a sharp reduction of 1.423 million Tozs.

Gold ETFs saw a minor outflow during March, taking holdings to

58.871 million Tozs by March 30.

Politically, the Dutch elections in March were business as usual compared with the upsets of 2016. Challenger Geert Wilders failed to unseat the incumbent, Prime Minister Mark Rutte, as the Dutch said “nee” to Wilder’s antiIslamic party.

In France, Marine Le Pen and Emmanuel Macron were neck-andneck in polling, at 26 per cent each, in a March 20 poll by Le Figaro. They represent diametrically opposed views of what France should be with a Le Pen win spelling genuine danger for the EU. The month also saw the failure of the Republican attempt to replace “Obamacare”, and on March 4, a tweet that the President believed he had been subject to wiretapping by President Obama. The subsequent fall-out led to calls for Devin Nunes, Chair of the House Intelligence committee, to resign.

In summary, gold benefitted from a reappraisal of the reflation trade after various slip-ups by the Washington administration. The rally did not challenge the sort of price levels that would shout ‘bull market’, as the price did not reach the trend line that capped gold in 2016.

Additionally, there is interim resistance at US$1277, and beyond the trend-line, the base of the monthly Ichimoku cloud, which might be somewhat obscure resistance, but one that has blocked gold since mid-2014.

The short- to medium-term outlook allowed for the price to weaken to US$1228, with upside targets to US$1275 and US$1292, close to the resistance area. Longterm targets included US$1455 – a close above US$1365 would put some dynamite under the outlook for gold.

Silver

Silver rallied until early March, when it touched the 50 per cent retracement of the down move from the July 2016 high (US$21.13) to the December low (US$15.63).

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The next phase saw silver drop like a knife – as it so often does – giving up US$1.66 in the next fortnight, before turning around to close the quarter about 25 cents from the February high.

Silver strengthened from the factors propelling gold, and a generally positive performance in copper – although March was rather sideways for copper. The YTD performance for spot silver was 13.90 per cent, making it the second-best precious metals performer. The strengthening ratio suggested a move to 66.00-67.00 against gold.

In terms of CME positioning, silver gross longs grew from 308.380 million on January 3 to a high of 480.165 million on February 28, before over 85 million Tozs of selling kicked in to take gross managed money length down to 394.57 million Tozs by March 21.

The next week saw over 70 million Tozs of buying to take gross positions back up to 465 million Tozs, and the last days of March experienced a 35.1 million growth in open interest as the price rose, suggesting a continuation of fresh buying.

Managed money short sellers took positions down from 96.715 million Tozs to 59.15 million Tozs by March 28. Silver futures VWAP for March was US$17.69, and US$17.74 for the quarter.

The outlook for silver is mixed in the medium term. The price was being challenged by the 50 per cent retracement level and there was work to do before a more bullish resolution became obvious. Moves through US$18.55 and US$19.04 would encourage belief in the longer-term targets to US$24.60 and US$24.90 that were suggested by technical views.

Platinum group metals

Platinum saw CME managed money long positioning a climb to the highest levels since September 2016, after the market dipped below US$900 at endDecember.

This looked too negative, considering the persistence of decent auto sales in the US, the EU and China. The market rallied to hit the 50 per cent retracement of the down move from the August high, before significant long liquidation took place. The YTD performance was 4.90 per cent, the weakest of the four precious metals.

The political situation in South Africa took a turn for the worse at end-March as President Jacob Zuma fired well-respected finance minister, Pravin Gordhan (and his deputy), replacing him with the more

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amenable but inexperienced Malusi Gigaba, allegedly to promote more ‘radical economic transformation’.

The ZAR weakened immediately and was expected to keep pressure on platinum. It looked as if Zuma had over-played his hand on this occasion, with Deputy PM Cyril Ramaphosa and other respected ANC figures pushing back on the cabinet reshuffle.

Global platinum ETFs grew by 71,305 Tozs during the quarter, a gain of about three per cent.

Before that, the technical outlook favoured further weakness, including a test of the December US$890 levels.

Palladium had a powerful quarter, supported by strong auto sales and a belief that gasoline engine vehicles would outsell Diesels. The YTD performance to end-March was 16.7 per cent, making it 2017’s bestperforming precious metal.

Positioning grew to 2,371,800 Tozs, the highest level seen since September 9 2014. The last 442,300 Tozs were stacked on at a VWAP of US$783.86. Meanwhile, managed money shorts declined to 149,300 Tozs, leaving the ratio of longs to shorts at the highest since September 2014, at almost 16.

The last time the long/short ratio was so high, palladium entered a decline that saw almost $US200 wiped off the price initially, before almost halving.

The situation might be different this time. However, it is worth noting the price appeared to be at the upper end of the trend channel that palladium had been rising through this year, and the price was knocking against the highs that capped palladium from November 2014 through to March 2015. So, failure to break above US$820 could have opened the door to a downward swing to US$748 and US$713.

Global palladium ETFs declined by 166,216 Tozs over the three months, with about that much metal flowing out in mid-January after the price rallied almost US$100 from the beginning of the year. The ratio suggested palladium would strengthen to 1.15-1.17 relative to platinum before retreating.

Overall, the precious complex performed well, against the YTD S&P 500 index which returned 6.07 per cent, or the Bloomberg US Corporate Bond index, which returned 1.26 per cent.

Although gold and silver did not break into an unambiguous bull market, the macro conditions were broadly supportive of gold, and could have remained so even when facing the prospect of three US rate rises. AM

ENVIRONMENT

IMPROVING EFFICIENCY OF MINES WITH ENVIRONMENTAL MONITORING ENVIROSUITE’S ROBIN ORMEROD DISCUSSES THE POSITIVE INFLUENCE ENVIRONMENTAL MONITORING CAN HAVE ON THE PERFORMANCE OF MINING OPERATIONS.

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hroughout the world, mining companies are coming under increasing pressure to improve the performance and efficiency of their

operations.

The challenge stems from fluctuating customer demand and shifting commodity prices. Keeping production costs down is a top priority to ensure profit margin can be maintained.

To achieve this, attention

must be given to all facets of the operation. Extraction, processing and transportation all need to be as efficient as possible and work together as a cohesive whole.

The importance of monitoring

Increasingly, mining companies are coming to realise that better monitoring of the environment in which they are operating can have a significant, positive impact on the bottom line. By truly understanding what is happening across a facility,

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more informed decisions can be made about its operation.

Monitoring becomes even more powerful when external data sources such as weather forecasts are also utilised and related to day-to-day operations. This can help when scheduling works to ensure that the most appropriate activities are carried out at the best possible time.

Effectively monitoring a mine site can be greatly improved by the installation of a network of sensors.

Using a sensor network to gather

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data and feed it in real-time back to a centralised information platform allows a clear whole of facility picture to be understood reducing risk and extending traditional operation monitoring capabilities. Sensors that can be deployed on a mine site include: • Mining equipment: Attached to earth moving and extraction equipment, these sensors can monitor the location, level of noise and emissions being produced.

• Site perimeter: Situated at the edge

ENVIRONMENT

of the mining facility, these sensors can gather data on the amount of dust being generated or other fugitive emissions associated with mining activity.

• Weather: Positioned at strategic locations on the site, these sensors can provide real-time data on everything from wind speed and direction to temperature and rainfall intensity.

The power of forecasting

Data gathered from sensor networks can then be stored and analysed by sophisticated simulation tools for weather and air dispersion. When real time site based data is added, the potential insights that can be gained are significant.

The tools can provide graphical details on what any changes in conditions could mean for operations.

Modelling of potential events can

clearly show the impact decisions will have both on the mine itself and the surrounding area.

Some of the typical scenarios that could be covered include: • Strong winds: There have been strong winds forecast for the area to occur in the next 48 hours.

Modelling shows that this will cause significant dust to be generated and impact local air quality. By knowing this preventative dust management actions can be put in place to reduce risk of the event occurring.

• Heavy rainfall: Forecasting the likelihood of heavy rain allows preparation of stormwater and sedimentation management infrastructure to be actioned ahead of time. Practical operational actions such as preparing road surfaces, reducing sediment pond stored volumes to capture new storm generated run off, or moving equipment out of pit areas subject to runoff inflow or groundwater ingress can be implemented to keep operations running.

• High temperatures: Forecast high temperature risk – advise onsite staff and refresh heat stroke training. Prepare and check critical equipment cooling systems. Check fire systems and consult with the community on potential fire risk and preparation.

In each of these scenarios, the network of sensors across the mine site will provide a real-time picture of exactly what is happening and combined with forecasting and simulation, the potential impact of upcoming conditions to make appropriate changes to operations and reduce risk.

Real-time sensors are then able to monitor and track the result of operational actions to ensure site conditions are kept within acceptable limits to keep operating. For example, the amount of dust actually being produced can be graphed, as could the volume of water being discharged off the mine site as a result of the rainfall.

Better informed decisions

Armed with accurate and timely data, mine management is in a much better position to take corrective action before problems arise. Rather than relying on gut instinct or assumptions based on previous events, they can work from the perspective of having an accurate picture of current conditions.

Examples of the types of decisions monitoring will aid include: AUSTRALIANMINING

• Schedule changes: Blasting at an open-cut facility was scheduled to take place in 24 hours’ time, however modelling shows forecast wind direction and speeds will mean significant amounts of dust will be blown towards a nearby town. A decision is taken to delay the blast by another 24 hours until winds subside. Onsite weather station wind sensors and blast simulations will confirm that conditions have improved at the new blast time.

• Production shifts: Work was planned to begin in a new area of the mine site close to a nearby

can be altered ahead of time to avoid a situation where shift workers are onsite but have no mining activity to undertake. Alternatively, they can take part in training or refresher courses so that time (and money) is not wasted during the pause in production.

Real-time monitoring and data analysis can also help to ensure a mine site avoids any potential environmental incidents. By stopping production or shifting it to a different part of the site, harmful outflows of waste water or plumes of dust escaping the site can be avoided.

RATHER THAN CONSTANTLY BEING IN A REACTIVE MODE, OPERATORS CAN MAKE PROACTIVE DECISIONS THAT ENSURE BOTH EQUIPMENT AND STAFF CAN BE AS PRODUCTIVE AS POSSIBLE AT ALL TIMES.” creek. Models show that the rain forecast during the next five days could cause significant sediment runoff which would breach operational limitations. Managers opt to instead focus equipment and staff on the existing mine face until the weather improves. Local sensors will constantly report back on the amount of rain that has fallen and runoff levels at critical points around the site.

• Staff allocation: Forecast modelling shows that production is unlikely to be possible for at least a sevenday period due to an approaching weather system cyclone. A decision can be taken to shift workers to another mine site or stand them down until conditions return to normal.

Improved efficiencies and outcomes

By undertaking such real-time monitoring and analysing the collected data, mining operators are in a much stronger position to make decisions that will have a positive impact on their operations.

For example, if forecast high winds are going to require a cessation of activity for a 24-hour period, equipment can be scheduled for maintenance during that time. This means the equipment is not lying idle during downtime and does not have to be taken out of service at times of peak production.

At the same time staff schedules

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Depending on the software tools used for the data analysis, mine operators can also potentially receive automated recommendations on actions to take. If the software determines that a certain combination of factors could cause problems, a plan of action could be generated for consideration.

A more profitable operation

By following the approach of realtime monitoring and predictive forecasting, mining companies can be confident they are gaining as much output as possible from their infrastructure investments, regardless of the prevailing conditions.

Rather than constantly being in a reactive mode, operators can make proactive decisions that ensure both equipment and staff can be as productive as possible at all times.

Sensor networks and the data they provide allow the impact of decisions to be monitored at a very granular level. Should conditions change unexpectedly, plans can be altered to ensure the best possible outcome for the facility.

Instead of being an onerous overhead that adds only cost to an operation, environmental monitoring can actually deliver significant and sustained value to every mining operation. AM Robin Ormerod is the managing director of EnviroSuite

PRODUCTIVITY

TURNING MINING PERFORMANCE AROUND: MOVING FROM EFFICIENCY TO EFFECTIVENESS HENDRIK LOURENS AND JOHN BLAKEMORE DISCUSS HOW TO SUSTAINABLY IMPROVE PRODUCTIVITY AT MINING OPERATIONS.

D

uring the last upswing in the commodity cycle, the incoming tide lifted all ships.

But, to paraphrase Warren Buffet, now that the tide has gone out it seems to many investors that the mining

industry has been swimming naked.

PricewaterhouseCoopers’ (PwC) Mine 2016 contains some sobering facts.

The PwC financial index for the top 40 miners (2015) shows earnings before interest, tax, depreciation and amortisation (EBITDA) at levels

lower than during the global financial crisis (GFC).

During the upswing, miners took on substantial debt to increase production volume, but now the cash flow is not sufficient to retire this debt.

The financial industry has started to lose faith in mining companies’

IMPROVING PRODUCTIVITY IS AN ONGOING MINING CHALLENGE

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ability to generate a decent return.

This affects the availability and terms for obtaining equity and share capital.

And finally, it states: “Pressure will rise as attention turns to the next wave of productivity initiatives, which will have longer-term paybacks and require fundamental rethinking

PRODUCTIVITY

of structures, processes, systems, technology, organisational designs and capability needs. This is uncharted territory for the industry, at a time of rapid change in all sectors of the global economy.”

It is the authors’ opinion that this fundamental rethink has happened and is being applied successfully, even though the majority of the mining establishment is unaware of this.

Over the past 15 years we have observed a productivity intervention, delivering 20 per cent average output increase, in over 80 mine interventions, spanning Africa, South America and Asia.

This required limited or no capex, using no more than two consultants

and within three to five months. The approach engages employees, and drastically reduces the cognitive load and pressure on mine management.

The impact of increased productivity on mine profitability

It is clear a turnaround requires drastic, sustainable productivity improvement. In a 2015 article titled: Productivity in mining operations: Reversing the downward trend, McKinsey showed that mining productivity had declined an average 28 per cent over the past decade.

From this, there would seem to be ample opportunity for improvement.

Ernst and Young’s 2014 report: Productivity in mining: Now comes the hard part noted: “Executives see increasing productivity as their number one challenge, most are reducing cost and increasing volumes, but this has not affected the core productivity of miners.”

It is possible to make a conservative estimate of the impact of the productivity gap on the financial performance of miners by using the aggregate top 40 financials from the PwC Mine 2016 report.

According to this data, in 2015, if the top 40 could increase output by 20 per cent (using current assets), they would have delivered a 345 per cent increase in EBITDA. This calculation assumes that sales value increase by 20 per cent, totally variable cost of production comprises no more than 50 per cent of the operational cost. Increasing supply would decrease pricing, but this would not be the case if a small fraction of mines improved to this extent.

Why is the mining productivity decline persisting?

A production system can be conceived as existing of three critical, interacting elements: technology, process and people.

Most productivity improvement efforts have focused on these elements in isolation, and in particular on better technology (automation, big data) or improving on process models. Strengthening and adjusting the linkages from these elements to the people link, and the people element itself have not received much attention.

Doing better than what we have always done will not deliver these results. Einstein said: “We cannot solve our problems at the level of AUSTRALIANMINING

thinking that caused them in the first place.”

The new paradigm requires a shift in the way the production flow process is designed and managed and strengthening of the link between production process flow and people behaviour. This drastically simplifies what needs to be done and allows managers and employees to coordinate horizontally, close to where the work is happening.

Eliminating variability and optimising all processes

Despite increasing knowledge around systems thinking and complexity, best practice in managing production flow in mining does not take these ideas into account.

Mining is different from most manufacturing systems in that the variability experienced is much greater and in that, the interdependence between production

on what is inherently uncertain.

This results in inter-departmental and hierarchical conflict, leading to unstable flow.

The consequence of this thinking is that we try to plan production with “just enough of everything”. In this way, we hope that we will achieve high efficiency on all the parts and thus achieve the greatest productivity for the system.

This is a fundamental mistake.

If we were to put together a set of six production units in sequence, each capable of delivering on average 10 units per hour, most observers would expect an average of 10 units produced every hour.

That would have to deliver 100 per cent efficiency in each process. But industrial processes do not follow a normal distribution.

Often a unit goes down and output is zero for that period. This unit blocks all the processes before and

PRESSURE WILL RISE AS ATTENTION TURNS TO THE NEXT WAVE OF PRODUCTIVITY INITIATIVES, WHICH WILL HAVE LONGER-TERM PAYBACKS AND REQUIRE FUNDAMENTAL RETHINKING OF STRUCTURES, PROCESSES, SYSTEMS, TECHNOLOGY, ORGANISATIONAL DESIGNS AND CAPABILITY NEEDS.” steps are tight, not only in space but also in time. Applying what works in manufacturing into mining should therefore be done carefully.

Operational excellence, statistical process control, lean and the theory of constraints are all necessary, but not sufficient.

People aspects need to be integrated with all of these interventions. More important is that the prevailing management paradigm needs adjustment to do this integration well.

Systems thinker Russel Ackoff maintained: “If we optimise all the parts of the system then the overall system will not be optimised. And if we optimise the overall system then all the parts will not be optimised.”

And yet, with the help of ERP systems and budgets, the production flow through mines is constrained by trying to improve the local efficiency of every production department. The belief is that better planning and reducing variability will deliver better results – in this way we force certainty

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starves all downstream. For the time the unit is down no production occurs.

The unit sometimes produces 12, but then 0 now and then delivers 10 on average. The instantaneous output of the chain is always determined by the slowest production department – this gives us an overall chain which only produces five.

This important fact, which management is not aware of, creates tremendous pressure for mine personnel to improve. Often employee engagement is negatively affected.

In most chains one will find one production department with less capacity. This department should determine the maximum output achievable, and cause work to pile up here, but due to the dynamics described the bottleneck often seems to move.

This means that the flow is so unstable that output is significantly less than what the bottleneck department can deliver. This is where the lost output can be liberated.

PRODUCTIVITY

A step change in mining productivity

• Embrace variability and learn to manage it.

We have to identify the capacity bottleneck, put a material buffer in front and a space buffer behind and then ensure excess capacity in the other departments.

In this way, we can decouple the bottleneck from the rest of the system and replenish the buffers in time.

Instead of focusing our attention on six departments we ensure that the

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almost been depleted.

These departments will show a drop in their efficiency measurements, to the consternation of those tasked with measuring performance. It is crucial that change be allowed, only the bottleneck department needs to run at maximum efficiency, this requires a huge shift in thinking.

• Reconfigure and strengthen the process – people link A daily 30-minute cross-functional

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affect the overall system and the outcomes.

It highlights problem areas in these processes and allows for dialogue in improving understanding of causes and actions to take. Management and workers simultaneously become aware of problems in the system, and restrictive policies and bottlenecks are addressed on the spot.

It is not possible to hide anymore – those not doing their part are visible to all. Peer pressure ensures that they rise to the challenge and start to

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platform which delivers a 10-50 per cent increase in output within three to five months.

Sustainability

The intervention is sustainable, provided the management team stays intact. After a few years of excellent performance, it is typical for the person that initiated the project to be promoted.

The new manager often lacks the context of the new paradigm and reintroduces standard industry practice.

Output reverts to the level before the intervention. This points to the need for expanding the intervention to include top management. Otherwise, the intervention survives as an island of new thinking in a sea of old paradigms, eventually it will be submerged.

Summary

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Performance

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5

0 Time FIGURE 1: BUFFERING THE BOTTLENECK AGAINST SYSTEM VARIABILITY

bottleneck is resourced for maximum production and efficiency.

Other departments will work on not depending on the status of the two buffers. This simplifies production dramatically. The part in blue (see figure 1) is now added to the output, typically around 20 per cent of the total.

It is important to note that nonbottleneck departments in this example need to be resourced and run at 12 and 13 units capacity. This is to ensure that the buffers can be quickly replenished in cases where they have

meeting is instituted. This is where the heads of departments, middle managers and selected employees get up-to-date visual information on what is happening to the production process (flow).

Colour codes identify where attention should be focused and where help from support functions such as HR and maintenance is required.

The productivity platform meeting provides visual feedback on the processes workers are responsible for and shows them how their actions AUSTRALIANMINING

support their colleagues.

Sometimes, as workers start to experience success, they become accountable and begin to volunteer their energy and talents. This reduces the load on management; they are not drawn into work which can be better performed by their employees.

A system of this nature was first implemented at Peabody Energy’s Warkworth mine in 1995 and yielded a productivity gain of 16 per cent in six months. In the past 15 years, further fine tuning has led to the development of a productivity

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Miners are aware of the need for dramatic productivity improvement.

When asked whether they are doing productivity improvement the answer is nearly always “we are doing this already”. The absence of substantial sustainable results suggests that something is amiss in these efforts.

The new approach flows from complexity science and systems thinking and pushes for greater effectiveness instead of greater localised efficiency. It does not attempt to force certainty (through better central planning) onto processes and interactions that are inherently uncertain.

It states that variability in mining is a given and needs to be managed, it cannot be eliminated. Centralised decision making must be relaxed and replaced with horizontally coordinated decisions close to the coalface.

We do this so that management maintains visibility of what is happening.

In this way, we can empower and engage our employees without losing command of the situation.

This requires mine managers to embrace a new paradigm, which requires courage. But the reward to risk ratio is tremendous, a 20 per cent increase in output fundamentally affects mine profitability and the mine’s position on the cost curve. AM This article was written by Stratflow Australia’s Hendrik Lourens. It was coauthored by Blakemore Consulting’s John Blakemore.

NOMINATIONS NOW OPEN 11 MAY 2017

MELBOURNE WWW.ENDEAVOURAWARDS.COM.AU

WOMEN IN INDUSTRY

BREAKING DOWN THE BARRIERS THE 2017 WOMEN IN INDUSTRY AWARDS WILL ONCE AGAIN RECOGNISE THE BEST AMONG WOMEN LEADERS WHO CONTINUE TO PLAY AN INTEGRAL ROLE TO THE GROWTH OF AUSTRALIA’S INDUSTRIAL SECTORS.

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or the fourth year running, Australian Mining, PACE, Manufacturers’ Monthly, Logistics and Materials Handling, Prime Mover, Trailer and Diesel are partnering to acknowledge the invaluable contributions of women in Australia who have achieved success through their leadership, innovation and commitment to the various STEM driven industries.

The Women in Industry Awards recognise and reward the women in Australian businesses who are driving change across the industry.

These may be women you work with, women whose achievements are inspiring you from afar, or women who are providing invaluable guidance and support.

For the first time this year, the annual awards will be accompanied by a one-day conference designed for women in the mining, manufacturing, engineering and road transport industries. The conference will feature a range of industry leaders and previous award winners discussing success in the industry,

trends both past and foreseeable, and support, both what’s currently available and what may be required looking towards the future, for women across the sectors.

Prime Creative Media has long recognised the significance that women can bring to adding life to the Australian economy. The Department of the Prime Minister and Cabinet’s 2014 study on the Australian women’s labour force has indicated that there has been an increased participation of women over the past decade (from 62 per cent to 65 per cent of the population aged 20-74 years). This demonstrates that the gap between men’s and women’s participation rates in the work force has narrowed and in the coming years, it will be more evened out.

In comparison to its first world counterparts, Australia’s experience is similar (in particular, to the United Kingdom), where according to the same report, the number of women in self-employment has been increasing at a faster rate than the number of men. The report also found that there is an increasing number of employed Australian women that are

almost half as likely to be employers (4.5 per cent compared with 8.1 per cent of employed Australian men), and two-thirds as likely to be sole operators (six per cent compared with nine per cent of employed Australian men).

In addition, the Peterson Institute for International Economics and multinational professional services firm, Ernst & Young, have also reported in a 2016 joint-study that having women leaders within a company is more likely to boost the business value of that company. The report shows results from 21,980 global, publicly traded companies, in 91 countries from various industries and sectors that having at least 30 per cent of women in leadership positions, especially in the C—Suite, adds up to six per cent to net profit margin.

We believe the dedication and exceptionalism of women should be celebrated.

More importantly, the Women in Industry awards seek to continue to break down the gender barriers and stereotypes around STEMrelated businesses, and create new

THE WOMEN IN INDUSTRY CONFERENCE AND AWARDS KICK OFF ON JUNE 22

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possibilities for the next generation and beyond.

This year’s Awards is sponsored

by MMD, Natroad, Cummins, BOC, ABB, CSR Lightweight Systems and Atlas Copco.

Tickets for both the Women in Industry Awards and conference are available now at www. womeninindustry.com.au. AM

WOMEN IN INDUSTRY CONFERENCE WHEN: 9am-5pm Thursday 22 June 2017 WHERE: Melbourne Convention Centre WOMEN IN INDUSTRY AWARDS WHEN: 6:30pm, Thursday 22 June 2017 WHERE: Peninsular, Central Pier Shed C, Docklands DRESS CODE: Cocktail/lounge suit

2017 WOMEN IN INDUSTRY CONFERENCE AND AWARDS

NOMINATIONS

NOW OPEN

THURSDAY 22 JUNE 2017, MELBOURNE

Tickets now on sale www.womeninindustry.com.au

PROSPECT AWARDS

PROSPECT AWARDS WINNERS PROFILE AUSTRALIAN MINING SPEAKS TO ABERGELDIE COMPLEX INFRASTRUCTURE WHICH WON THE CONTRACTOR OF THE YEAR AWARD AT THE 2015 PROSPECT AWARDS.

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ince its beginnings in 1994, Abergeldie Complex Infrastructure has serviced a range of mining and civil projects throughout Australia’s east.

In 2015, the company received the Contractor of the Year award at Australian Mining’s Prospect Awards for its innovative approach to drilling blind bore vent shafts.

Abergeldie constructed a blind bore ventilation shaft at a mine in the Southern Coalfields, around 45km northwest of Wollongong in New South Wales. The five meters finished diameter (6.2m drilled) shaft reached a final drilled depth of 517m, which at the time was the deepest blind bore vent shaft the company had drilled.

Lining of the shaft took slightly over a month, with crews working around the clock to see the 170 composite steel/concrete liners sections – each three metres long and weighing almost 50 tonnes – installed to make a hydrostatically sealed shaft at five meters finished diameter.

Speaking about the technique, Abergeldie executive chairman Michael Boyle told Australian Mining, “The rock material is extracted through reverse circulation so that means that the shaft is kept full of water during the drilling process.”

“We inject air down the drill pipe and create a flow that extracts the drilled material and it travels up the drill pipe and is delivered into a pond on the the surface.

“Keeping the shaft full of water helps keep the shaft wall stable during excavation and the whole drilling and lining process happens without anyone having to be within the incomplete shaft – so it’s a very safe means of excavating and lining shafts.”

Boyle welcomed the award win and said it was good for the company, despite the current lack of mining clients requiring the award winning shaft design and construction services.

“That project in the southern coalfields is the last shaft that we’ve completed,” he said.

“So our three large diameter drill rigs have in essence been mothballed since around about 2015 when the investment in mining development in Australia pretty much stopped.”

However, this has not stopped Abergeldie from continuing to grow, as it has focussed on the civil sector.

Boyle said the company is multidisciplinary, with all the teams it had for blind boring work now operating in tunnel and shafts projects in the civil sector.

Since 2015 Abergeldie has worked on a rail tunnel in Strathfield in Sydney, which Boyle said was complex as they had to tunnel under live suburban rail lines.

The company is also working on a pipe jack tunnel in Brisbane for Queensland Urban Utilities and is about to begin a pipe jack tunnel in Melbourne for Yarra Valley Water.

“We’re also carrying out a pedestrian tunnel under a rail line in Sydney at Sydney Olympic Park,” Boyle said.

“So we’re still doing a lot of underground work but we’ve focussed more on the civil sector in recent years because of the lack of opportunities in the mining sector.”

Following a recent report from Engineers Australia on the low number of students taking up science, technology, engineering and maths (STEM) related subjects in high school, Boyle said it is essential that initiatives are implemented to encourage students into these subjects.

Boyle has been involved in civil engineering at The University of Sydney, working as chairman of The University of Sydney’s Council of Civil Engineering. He said there is a great need for students proficient in the STEM subjects as these have a large

ABERGELDIE COMPLEX INFRASTRUCTURE EXECUTIVE CHAIRMAN MICHAEL BOYLE

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PROSPECT AWARDS

part to play in a range of technologies critical in the world today.

“I think two things we need to do is to encourage students to study the STEM related subjects and also to encourage students or younger people to train in the trades,” he said.

The company also has graduate programs for university students that have studied engineering which has been very successful so far.

“People that have come through the graduate program have been, and continue to be, key employees of Abergeldie,” he said.

Boyle has noted a growing optimism in the mining sector particularly over recent months as the company has begun to receive tenders for work at mine operations.

“I have noticed over the last probably three to six months that there is discussion of investment and opportunities within the mining sector and we have started to submit offers and tenders to provide shafts on mines,” Boyle said.

“I’m pretty confident that we’ll have a project delivering a blind bore shaft somewhere along the east coast of Australia before the end of this calendar year.”

Boyle also mentioned the positive outlook for Abergeldie going forward.

Historically, one third of the business was in the mining sector and two thirds in the civil and mechanical sector. Despite very little work in the mining sector in recent years the company has still been able to grow.

“I see some strong growth for Abergeldie as we continue to grow our civil sector and the work within the mining sector returns,” he said.

Boyle added that the company’s key strength is in its diverse capabilities and in the technology it has developed which will bolster its continued growth.

“I’m reasonably confident that as investment in mining comes back we’ll see many opportunities in Australia, and with our technology, I envisage we’ll find opportunities right across the world.” AM

ABERGELDIE CONSTRUCTED A BLIND BORE VENTILATION SHAFT AT A MINE IN THE SOUTHERN COALFIELDS

The Contractor of the Year award has been renamed Contract Miner of the Year.

The 2017 Contract Miner of the Year award is proudly sponsored by Atlas Copco. Nominations for the 2017 Prospect Awards are now open. To nominate, visit www.prospectawards. com.au.

Curtin soars globally in Mineral and Mining Engineering.

QS World University rankings places Curtin #2 in the world.

We’re proud to announce that Curtin has ranked second in the world for mineral and mining engineering, up 17 places from 2016. This makes us the highest ranked and best university in Australia to study this globally relevant and sought after course.

Curtin also achieved ranking in 25 subjects, seven more than last year, and ranked as a top 100 university in seven subjects: Mineral and Mining Engineering, Architecture/ Built Environment, Art and Design, Nursing, Earth and Marine Sciences, Education, and Sports-related Subjects.

The results reflect Curtin’s long-standing reputation for innovation and high-quality research across all subject fields. curtin.edu.au

BE THE INNOVATOR

Make tomorrow better.

CRICOS Provider Code 00301J / MF CU-UM000361

2017 QS World University Rankings by Subject

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OIL AND GAS

INCREASING GAS SUPPLY IN AUSTRALIA A NUMBER OF PROJECTS AND PROGRAMS HAVE BEEN LAUNCHED ACROSS THE EAST AND SOUTH OF AUSTRALIA TO INCREASE THE NATIONS GAS SUPPLIES. SHARON MASIGE REPORTS.

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here have been growing investments in gas developments over the past few months, aiming to increase gas supply across Australia’s east coast.

Queensland’s coal seam gas rich Surat basin has been the focus of major gas investments this year, with Shell Australia announcing the development of Project Ruby – involving the drilling of 161 new wells in the region.

The project, a joint venture with Shell’s QGC business, is set to secure 350 new and existing jobs during its 16-month construction over this year and into 2018.

Shell chairman Andrew Smith said the project reinforced the company’s commitment to continuing its gas supply in the east coast market.

“We are proud to be investing in regional Queensland, where state and local government have had the vision to establish the rules for a gas industry that creates jobs and supports farmers by providing water, building new roads and paying taxes,” he said.

Smith added that it will also reduce gas prices in the state.

Queensland Resources Council CEO Ian Macfarlane said Project

Ruby was a vote of confidence in the state’s onshore gas industry.

Oil and gas exploration company Senex Energy also committed to a development in the Surat Basin, investing $50 million in the Western Surat gas project. Thirty wells will be drilled as part of the project, including gas and handling infrastructure.

The first wells are set to go online in the middle of this year, expected to produce around 10 terajoules of gas a day by mid 2018.

Senex aims to ramp up production once the wells are online. It also plans to drill and connect an additional 3050 wells throughout 2018.

The Queensland Government continues its support for gas developments in the state, releasing land for gas exploration in the Surat Basin to address the gas shortage on the east coast.

The land, which covers around 58sqm of the Basin, was released under the condition that the gas produced is sold only in Australia, and the company that secures the land tender will be prevented from exporting the gas.

Queensland natural resources and mines minister Anthony Lynham

said it was important for business and industry to have a reliable supply of energy.

“Secure energy supplies is growing as a critical factor when businesses make decisions about when and where they invest, expand and create jobs,” he said.

According to QRC, Queensland’s gas supply contributed $12.8 billion to the economy and supported 65,000 jobs between 2015 and 2016.

Australia’s east coast is not the only area receiving significant gas investment, with South Australian projects also aiming to boost gas supplies.

Origin Energy signed two agreements with French utilities company Engie to increase gas supply and sustain high energy demands in South Australia.

The first agreement will see Origin supplying gas to the Pelican Point power station and will gain access to 240MW of electricity production that will be supplied to South Australian customers. This will run for three years from July 2017.

The second agreement involves Origin selling eight petajoules of natural gas to Engie between 2018 and 2019

A NUMBER OF INVESTMENTS HAVE BEEN MADE IN AUSTRALIA’S EAST AND SOUTH TO BOOST THE NATION’S GAS SUPPLY

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Origin CEO Frank Calabria said the agreements would help address South Australia’s energy security challenges, particularly after the state’s power outages.

“The power outages in South Australia reinforce the need for sufficient gas-fired power generation to be readily available, especially when wind and solar energy is not available,” he said.

“These agreements are examples of immediate steps industry is taking to safeguard electricity supply and make sure more natural gas will be available to meet the needs of customers.”

The South Australian Government is also playing its part in supporting the state’s gas supply, releasing the first round of grants for gas projects in the state earlier this year.

Under the Plan for Accelerating Exploration (PACE) Gas grant program, the state government awarded five exploration and development projects a share of $24 million.

These were given to the SenexSantos Cooper Basin pipeline project; the Beach Energy Otway Basin exploration project; the Santos Cooper Basin re-fracture stimulation project; the Santos Cooper Basin underbalanced drilling project; and the first phase of the Strike Energy Cooper Basin deep coal project.

The grants are estimated to deliver $174 million in new investment by oil and gas companies involved in local production projects and. This will reportedly increase the affordability of supply and decrease power costs.

South Australian minister for mineral resources, Tom Koutsantonis, said, “We are taking charge of our energy future and in South Australia that means making the most of our abundant wind, solar and gas resources.

“This is enough gas in the ground in South Australia to power our grid for centuries and this package of measures will help us extract more of that gas, boost local electricity generation and put downward pressure on prices.”

The successful companies for the second round of grants will be announced in December this year. AM

PDAC REVIEW

AUSTRALIANS FLOCK TO TORONTO FOR PDAC THE WORLD’S LARGEST MINING TRADE SHOW THIS YEAR AGAIN ATTRACTED A SLEW OF AUSTRALIAN MINING COMPANIES, SERVICES EXPORTERS, GOVERNMENT OFFICIALS AND INVESTMENT PROMOTERS. PETER DIEKMEYER WRITES

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xhibitors, participants and presenters, including a platoon of Australians. attribute increased traffic at the Prospectors and Developers Association of Canada’s (PDAC) annual conference to renewed interest in the sector.

More than 24,000 prospectors, geologists, sector suppliers and investors, from more than 100 countries, crammed the Metro Toronto Convention Centre, earlier this year.

“Every major Australian company is here,” said John Shanahan, president and chief executive of Tintina Resources, which is developing a high-grade copper deposit in Butte, Montana in the United States.

“Canada is the place for mining companies to do business. People here understand that.”

Tintana is a case in point. At first glance the company has little connection with Canada. Shanahan grew up and went to school in Australia. Tintina’s majority shareholder, Sandfire Resources, is Australian-based.

Tintina’s major asset is in the United States, where Shanahan, also lives. However, Tintina is listed on a Canadian stock exchange and is nominally domiciled there.

“It’s much cheaper to list on a Canadian exchange than it is in Australia and Canada’s 43-101 mineral resource disclosure standards, have unparalleled international credibility,”

Shanahan said. “For us a Canadian listing is a no-brainer. But we also use PDAC to meet our Canadian shareholders, seek out future partners and keep abreast of industry developments.”

Doug Ramshaw, a director at Vendetta Mining, which is looking to build interest in the company’s zinc/ lead exploration play in Queensland, agrees that PDAC’s attraction is in part due to the fact that it is a great place for developer to connect with financiers.

This puts PDAC in the same playing field as the Diggers and Dealers event, which will take place in August in Kalgoorlie, Western Australia.

increasingly refining a “complete automation suite,” to help bring down perennially high sector labour costs.

This year Portman’s team was using PDAC to talk up the company’s hands-free rod handling, which she says makes the drill preparation less accident prone.

“Safety isn’t just an operational cost,” she explains. “Most successful mining companies regard it a core social responsibility. Our goal is to help them fulfill that role.”

Caterpillar, which has been increasingly developing and marketing autonomous trucks, and whose banners and advertising adorned the PDAC walls, also used the event to great effect.

Sector suppliers focus on innovation

A turnaround in sight?

As usual, the PDAC halls were packed with sector suppliers, who used the event to plug their wares to a global audience.

According to Monika Portman, a spokesperson with Boart Longyear, a drilling services, tooling and equipment provider, innovation remains a key theme.

“Mining has gone through hard years and companies have been tightening expenses to maintain profitability or cut losses,” said Portman. “That means they need to do more with less.”

Boart Longyear, which regards Australia and North American as its two top markets, has been

The strong PDAC attendance, which was up nearly 10 per cent relative to 2016 levels, provides an effective signal that the mining industry may be turning around, following a major trough.

According to data accumulated by S&P Global Market Intelligence, 2016 marked the fourth consecutive year of declining exploration budgets.

Australia accounted for 13 per cent total gold exploration. Gold’s share of Australia’s total budget jumped to 57 per cent from 48 per cent in 2015, due in part to falling base metals budgets.

Australia’s US$510 million (A$677 million) gold budget overtook Canada as the top gold exploration destination for the first time in more than a decade.

The yellow metal’s attraction among PDAC conference goers was further strengthened by a nine per cent increase in prices since the start of the year in US dollar terms.

This, coupled with the fact that production costs are often priced in local currencies that have weakened relative to the US dollar in recent years, has significantly increased potential profitability levels.

Australia minerals seek investment

Western Australia received more news at PDAC, when the region was named the world’s third best mining AUSTRALIANMINING

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jurisdiction in the prestigious Fraser Institute’s annual rankings.

The only two regions ranked higher were Saskatchewan and Manitoba, two provinces in Canada, where the Fraser Institute itself is based, a factor which may have influenced survey methodology.

Nevertheless the strong results provided momentum to Australian Government officials, such as Richard Blewett, branch head, mineral systems, resources division, at Geoscience Australia, who used PDAC to drum up investor interest in the country.

“We are open for business,” said Blewett. “Our data show that companies that invest in Australian exploration get a far better investment return than they do in other jurisdictions. We are here to get that message out.”

Investment will come back

As usual, PDAC’s most popular event with insiders was the Letter Writers presentations that took place the Sunday before proceedings started.

Rick Rule, president of Sprott U.S. Holdings, as has been the case in recent years, gave the keynote presentation, which set the increasingly optimistic tone that would prevail in the coming days.

“How many people in this room believe that in six years, when you go into the garage your car will start?” asked Rule rhetorically.

“Well then you have to believe that oil prices will go up. The IEA says that the average cost of producing oil is US$60 a barrel, when you include explorations and write-offs.

“If oil is US$50 per barrel now, that means the price has to go up.

The same thing applies to many rare minerals and base metals. The cost of producing them is higher than existing selling prices. That means, over time the pressures on prices will be upwards.”

PDAC will be back next year between 4-7 March. AM Peter Diekmeyer is a Canada-based business journalist, specialising in mining and resources.

PRODUCT FOCUS

CAT’S LATEST BLASTHOLE DRILL DELIVERS OPTIMUM EFFICIENCY CATERPILLAR’S NEW MD6250 BLASTHOLE DRILL CUTS COSTS AND IMPROVES DRILLING EFFICIENCY WITH RUGGED DESIGN AND INTEGRATED TECHNOLOGY.

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aterpillar has launched the MD6250 blasthole drill, which it says delivers optimum drilling efficiency in single- and multi-pass applications for both rotary and downthe-hole modes.

Featuring automated operation, the drill runs within ideal operating parameters for maximum bit life, hole accuracy and reduced total cost of ownership, according to Cat. A sculpted frame design boasts heavy cross-bracing in high-load areas for maximum machine longevity. The machine’s four levelling jacks, mast pivot and deck are welded integrally to the main frame for maximum durability.

The MD6250 drill is built for efficient drilling of 10 and 12m benches, including angle drilling for cast blasting, making it the ideal drill for mining, quarrying and heavy construction applications.

Cat’s new machine is EU compliant, GOST certifiable, AUS compliant, CSA certified, MDG15 and MDG41 aligned, meets emissions standards for any region, and meets over 30 ISO standards.

Efficient hard and soft rock drilling

Offering superior performance in both DTH hard rock and rotary soft rock applications, the flexible machine drills holes of 150-250mm in diameter with bit loads of 22,321kg and 32,655kg, respectively for the 11.2m and 13.7m masts.

The drill delivers single-pass hole depths of 11.2m and 13.7m, and the 11.2m mast is capable of drilling multi-pass hole depths reaching 53.6m, while the 13.7m mast drills multi-pass depths to 37.9m.

Highly manoeuvrable and flexible, the MD6250 features angle drilling from 0 to 30 degrees in five-degree increments. It has an approach angle of 15 degrees for easy ramp access and loading, while the machine can climb up to 26-degree grades to get to the bench.

Featuring track counter rotation for increased manoeuvrability, the versatile drill can be equipped with

either 600mm triple grousers for hard rock applications or 750mm triple grousers for working in soft rock.

High-powered performance

The MD6250 power train features the Cat C27 advanced combustion emissions reduction technology (ACERT) engine with a 655kW power rating at 1800 rpm that can be configured to meet any emissions regulation for any region throughout the world. Variable air volume provides up to 50 per cent less engine load to significantly increase fuel efficiency. Engine and air intake filters boast 500-hour service intervals to help lower long-term operating costs.

Built for drilling in a variety of extremes, the MD6250 delivers reliable operation at elevations as high as 4750m. Standard ambient temperature operation ranges from -1 degrees to 52 deg C, while available arctic temperature packages enable working in subzero temperatures reaching -40 deg C. To meet site needs, the new drill can be equipped with a variety of compressors, all boasting variable volume control. For DTH drilling, operations have compressor choices of 38.2 cubed metres a minute at 500 psi or 42.2 cubed metres a minute at 350 psi.

is accurately placed, drilled to the proper depth and angle, and able to stand up until blasting. In addition, Cat Command for drilling offers an option for semi-autonomous drilling of single row missions.

Operator comfort and safety

Featuring the latest Caterpillar design, the new MD6250 drill boasts a spacious falling object protective structures (FOPS) cab with three square metres of floor space and integrated operator station. Rubber shock-mounts absorb mechanical vibration from drilling and reduce noise. Joystick controls with full instrumentation and dual 254mm colour touch screen displays improve operator productivity.

Technology improves drilling accuracy

The MD6250 drill comes with a variety of standard and optional auto drilling features to ensure drill pattern and depth accuracy, so operations can lower explosives costs, improve blast performance and optimise muckpile uniformity to reduce downstream processing costs.

An optional auto drill assist controls every step of the drill cycle to simplify the operator’s job and improve accuracy. Standard Cat Product Link technology enables operations to improve fleet management through customisable reports and mapping.

To further boost drilling efficiency, sites can choose Terrain for drilling, which provides precision machine guidance, ensuring that every hole AUSTRALIANMINING

CAT’S MD6250 INCLUDES A RUGGED AND INTEGRATES THE LATEST TECHNOLOGY

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A fabric seat, or a leather power seat with heat and ventilation, both include recline, tilt and lumbar support for comfort. The HVAC system features positive pressure and filtration for clean air quality and a new floor vent for improved operator comfort.

A camera mounted on the mast provides the operator full view of the pipe carousel/top drive operation, while cameras at the front and left sides of the drill offer a 360-degree view from the operator’s seat for improved safety.

A full-length window offers an unobstructed view of the drill deck, and large cab windows surround the operator for clear sight lines to the work area. AM

PRODUCT FOCUS

PRODUCTIVE INDIVIDUALLY – SUPERIOR TOGETHER THE COMBINATION OF VOLVO’S EC950 EXCAVATOR AND A60 TRUCK IS PROVING IT CAN MAXIMISE PRODUCTIVITY IN THE MINING INDUSTRY.

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olvo’s EC950E and A60H, the equipment manufacturer’s biggestever excavator and hauler respectively, can together be expected to deliver a high level of productivity in the mining industry.

The EC950E is Volvo’s new flagship crawler excavator and is proving to be extremely competitive in its 90-tonne weight class. Similarly, Volvo’s 60-tonne A60H, the world’s largest articulated hauler, sets productivity standards for quarries, open cut mines and large earth-moving operations.

While both machines offer stateof-the-art performance individually, when matched together, customers can experience the unprecedented productivity and ownership advantages these units offer, according to Volvo.

“The EC950E and the A60H are the ideal pairing for mining or other large projects such as infrastructure, irrigation or major earthworks,” Volvo’s APAC vice-president of dealer development and sales support A.M. Muralidharan said.

“Together they can move more material faster and more efficiently than any other combination of Volvo machines.”

The EC950E will move around 35 per cent more material than the EC750D which was previously the largest machine in Volvo´s excavator range. For the A60H hauler, it will move 40 per cent more material than the Volvo A40G. “By using these highly-productive machines our customers can get more done with fewer machines, allowing them to optimise their fleet sizes,” noted Muralidharan.

“This delivers better operating efficiency, particularly in mine management or in equipment allocation on large projects. Having larger machines also means fewer operators and less maintenance, delivering further resource optimisation.”

Muralidharan said the machines are well suited to Australian mining projects regardless of the commodity at the mine. He added the combination also suited quarry and

VOLVO’S EC950 EXCAVATOR AND A60 TRUCK CREATE A STRONG MINING TEAM.

infrastructure projects in Australia.

“We are already in contact with major contractors in these segments.

Our first set of machines will be on their way (in May) and will be tried in Australian conditions,” Muralidharan told Australian Mining.

Durable and powerful

With a bucket breakout force of 424kN and an arm tearout force of 408kN, the EC950E offers strong digging force, particularly when working with hard and heavy materials, according to Volvo.

Powered by a 446kW Volvo D16 engine, the machine utilises advanced technology built on experience in the industry to ensure highly-productive operations. Cycle times are cut to a minimum thanks to the power and torque of the engine combined with a new fully electro-hydraulic system.

The EC950E features a wide track gauge, long track length, a retractable undercarriage and optimised counterweight, resulting in a wellbalanced, solid machine.

AUSTRALIANMINING

All machine interfaces – including joysticks, keypad and LCD monitor – are ergonomically positioned and designed for optimum control and efficiency.

For increased versatility, the attachment management system enables the use of various attachments, allowing the operator to pre-set hydraulic flow and pressure through the in-cab monitor.

The heavy-duty design of the EC950E ensures the job is done quickly and without delay. Built with protected components, including a heavy-duty boom and arm, a strong frame, and a heavy-duty plate, Volvo says the machine can be relied on for longevity and sustained uptime in demanding applications.

Largest hauler – move more for less

The A60H features the latest innovations from Volvo, including matched drivetrain, automatic 6x4 or 6x6 drive combinations (including 100 per cent differential locks),

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all-terrain bogie, hydro-mechanical steering and active suspension.

Fitted with an active hydraulic front suspension for higher hauling speeds in tough conditions, the A60H optimises operator comfort and stability during travel, allowing more material to be moved in a shorter time for unmatched productivity.

The A60H is powered by a 16-litre Volvo engine, delivering 495kW of power and 3200Nm of torque, as well as excellent fuel efficiency. It also embodies the full articulated hauler concept, providing total versatility so customers can access the entire jobsite and climb steeper gradients.

Customers can work in all seasons, terrains and applications, while a choice of machine configurations and tyres means the machine can be tailored to suit the application.x The A60H’s dump support system, hill assist and load and dump brake, further help the operator stay in control, delivering extra productivity and safety. AM

PRODUCT SHOWCASE

FLEXCO RELEASES WEAR RESISTANT URETHANE SKIRTING

METSO UNVEILS COST-CUTTING MINERALS PROCESSING TECHNOLOGY

Flexco has released a new product to its line of mineral containment solutions, urethane skirting.

The urethane skirting is designed to increase productivity and decrease maintenance costs, providing a more wear-resistant material than typical rubber.

It can provide up to four times the wear life in similar applications and its lower coefficient of friction reduces strain on the system.

The skirting uses soft durometer (65A) urethane with high tear resistance to ensure a good seal and long belt life.

It features a 35° chamfer which eliminates the typical skirting break-in period.

It is available in lengths of 7.6m to ensure easy transportation and works with the existing Flexco series of skirt clamps that offer simple serviceability: RMC1/ PAL-Pak, Flex-Lok, and Flex-Seal.

The skirting is suitable for most applications: single direction or reversing belts, wet or dry conditions, old or new belts, vulcanised or mechanically spliced systems and is rated for temperatures from -30 to 82 deg C. • Flexco 02 8818 2000 www.flexco.com.au

Metso has launched a new rock crushing technology, which it says cuts operational costs by 10 per cent and enables 10 per cent higher uptime compared to traditional cone crushers.

The Metso MX, unveiled at the Conexpo-Con/Agg event in Las Vegas yesterday, is based on the patented multi-action crushing technology, which combines the piston and rotating bowl into a single crusher.

Designed for the most demanding rock conditions and with a special focus on automated adjustment features, the Metso MX enables cost effective and safe operations, the company explained.

It also provides a high reduction ratio with a premium endproduct shape and consistency critical in aggregate applications.

According to Metso, the key benefit of the patented multiaction technology is the easy under-load setting adjustment and wear compensation without having to stop the process.

This can be now combined with extended wear life and better mechanical protection. Optimal cavity design, stroke direction and effectively distributed crushing action lead to the ulti­ mate rock-on-rock crushing motion. This combined with the innovative multi-action technology results in extended maintenance intervals and higher production, Metso added.

The Metso MX also provides maximised tramp release distance with high protection against uncrushable objects and overloading. The crusher can utilise up to 70 per cent of the mass of new wear parts.

• Metso www.metso.com

RCT RELEASES REAL TIME FLEET MANAGEMENT SOLUTION Smart technology company RCT has unveiled the EarthTrack fleet management solution which provides machine performance data to decision makers in real time.

The technology delivers both machine and operator performance data, giving businesses the knowledge to improve its bottom line.

It provides a range of information including idling time, speed, machine utilisation reports, payload and impact monitoring.

The system captures the data in real time, allowing information to be delivered faster, so changes can be implemented more promptly.

Mine managers are also able to receive “live alerts” which immediately bring serious issues to attention, minimising or eliminating extensive damage to machines and reducing downtime.

All information is displayed on an interactive dashboard which can be accessed via any smart device with internet.

The system is also versatile and can be fitted to any mobile machine models and brands used in surface and underground mining.

• RCT 08 9353 6577 www.rct-global.com

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PRODUCT SHOWCASE

RPM DELIVERS NEW MINING WORK MANAGEMENT SOLUTION Tech company RungePincockMinarco (RPM) has launched its latest product – Operations Manager.

The work management solution enables a true short interval control process via a proven software solution. Operations Manager is the next evolution of the Fewzion Short Interval Control (SIC) and work management product acquired by RPM in December 2016.

According to RPM, Operations Manager is a highly configurable web application that can be accessed from a mobile device or a standard desktop/laptop.

Operations Manager provides mining shift personnel with access to a single, integrated shift plan that harnesses real-time data and links it to production and maintenance planning systems to deliver planning continuity through an integrated shift plan that is constantly updated to accurately reflect what is happening on site.

This visibility delivers the ability for shift supervisors to maximise productivity through smart changes and continuous improvement inside the shift.

• RPM 07 3100 7200 www.rmpglobal.com

INDUSTRIAL VOLTAGE MEASUREMENT SOLUTION Ipektronik’s X-Link device series has been extended by a fast six-channel measurement module for RLDA and STG applications.

A part of the X-family, Mx-STG2 6 supports TEDS (Transducer Electronic Data Sheet) sensors just like Mx-SENS2 8, Mx-SENS2 4 and Sx-STG. Compared to CAN-based devices, users benefit from a much faster LAN connection, according to the company. The XCP on Ethernet supports a high number of devices, covering more than 100 channels within a system. Channel data rates up to 100 ksamples also enable RLDA applications that would commonly request high-dynamic measurements. The software integration is ensured by the IPEmotion Plug-In Ipetronik-X V02.04 and the IPEaddon INCA V05.07 supporting ETAS INCA 7.1 and INCA 7.2.

Features: • Six fast analog signal inputs for voltage/STG • Six dual sensor excitations (up to +/-5 V, +/-45 mA) • Offset and target adjust functions, shunt check

• Internal resistors for bridge completion selectable • Hardware-filter can be switched off • TEDS Class 2 support • Measurement data output via XCP on Ethernet or CAN • Complete galvanic isolation (inputs, CAN, Ethernet, power supply) • Designed for automotive applications • Tool-less module to module connection • Ruggedised and compact modules for harsh environments • Metromatics www.metromatics.com.au

HEXAGON UNVEILS GEOLOGIC FOR GEOLOGICAL MODELLING Hexagon Mining has introduced GeoLogic, a new product for the mining industry that leverages the power of implicit modelling by sequencing surfaces and solids to create an airtight geological model.

AUSTRALIANMINING

The block model is the foundation of all planning tools, and the single source of truth for how mines manage their resources.

Classic geomodelling methods can take weeks or months to construct one interpretative scenario. But modern mines do not have time to wait on model updates to make decisions.

According to Hexagon, the outcome of GeoLogic’s capabilities is an entirely reproducible, auditable geological model that can be quickly updated with new information.

Fully integrated with Hexagon’s MineSight Planning Suite, GeoLogic provides geologists with smart, time-saving modelling.

It features a smart vein-set creation and strata-layer stacking methodology based on MineSight’s true thicknesses functionality.

GeoLogic automatically manages fault blocks and unconformities, and is powered by the industry-standard radial basis function (RBF). It allows you to improve the turnaround time in delivery interpretative scenarios.

The time savings are even more significant when it comes to updating a model with the latest field information.

GeoLogic offers an intuitive approach to geomodeling, maintaining a fine balance between user control and guidance, according to Hexagon. It also improves the company’s versatile geology solution, enabling geologists to move seamlessly and risk-free from secure data storage, data interpretation, data statistics, and data interpolation, with integrated functionalities.

• Hexagon Mining www.hexagonmining.com

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EVENTS XXX PRODUCT SHOWCASE

CONFERENCES, SEMINARS & WORKSHOPS EVENT SUBMISSIONS CAN BE EMAILED TO EDITOR@AUSTRALIANMINING.COM.AU

MINEX MAY 16-18 2017 BUCHANAN PARK, MOUNT ISA, QUEENSLAND Returning after a one-year hiatus to an all new biennial format, interest in the Mount Isa Mining Expo (MineX) is growing, with the returning Industry and Trade Only day proving popular.

A concept including an industry breakfast, Mining the North West Information Session, complimentary morning and afternoon teas and tailored Meet the Buyer/Business Matching Sessions, the event delivers a focused business environment and platform for professional development and ideas sharing amongst those in the mining and engineering industries.

This year, the Commerce North West really wanted to focus on maximising the opportunities presented to exhibitors and local industry.

Aspects such as the Meet the Buyer and Business Matching sessions on the Industry and Trade Only day will allow for those in the mining and engineering sectors to arrive on site and be guided to a number of prescheduled tailored appointments with exhibitors who we feel would be relevant to their identified needs and commercial interests.

Entry for MineX in 2017 is free for all three days with more than 100 interactive indoor and open air exhibits will be on site.

•MineX 07 4041 2703 www.minexqld.com

organisations. This year’s speakers include Kim Beazley, shadow minister assisting for resources, Tim Hammond, Westgold Resources managing director Peter Cook, and senior commodity strategist at ANZ Research, Daniel Hayes.

•AMEC Convention 2017 www.amec.org.au/events/amecconvention-2017

FUTURE UNDERSTANDING OF TECTONICS, ORES, RESOURCES, ENVIRONMENT AND SUSTAINABILITY JUNE 4-7, 2017 RYDGES SOUTHBANK TOWNSVILLE, 23 PALMER ST, TOWNSVILLE, QLD FUTORES II (Future Understanding of Tectonics, Ores, Resources, Environment and Sustainability) will address issues related to new understanding in mineral deposits (the David Groves Symposium), new technologies and approaches in exploration (including the challenge of exploration in areas with cover), tectonics and metallogenesis, basins and energy, and future trends in the resources industry.

The conference will feature world class speakers, short courses and field trips, and is estimated to attract between 250 and 350 participants. EGRU (Economic Geology Research Centre)

at James Cook University is organising the event, and welcomes academic colleagues, industry and government geologists, and students to attend.

•Future Understanding of Tectonics, Ores, Resources, Environment and Sustainability 07 4781 4726 www.jcu.edu.au/futores

THE AUSIMM INTERNATIONAL URANIUM CONFERENCE 2017 JUNE 6-7, 2017 ADELAIDE CONVENTION CENTRE, NORTH TERRACE, ADELAIDE, SA Entering its 12th consecutive year, the AusIMM International Uranium Conference continues to be the premier event in the uranium industry. Supported by the SA Government Department of Premier and Cabinet as the leading conference partner, keynote speakers and experienced industry experts will offer the latest technical updates and industry insights in uranium.

The conference will focus on all areas of the sector, including exploration, development, production, environmental, health and safety, and politics. There will be a particular focus on the findings of the Royal Commission review of nuclear fuel cycle in South Australia.

While the conference will take place across 6-7 June, there will also be preconference site tours and workshops

on 5 June, and conference day one will be followed by a dinner.

•The AusIMM International Uranium Conference 2017 03 9658 6126 www.uranium.ausimm.com.au

IRON ORE 2017: BUILDING RESILIENCE JULY 24-26, 2017 PERTH CONVENTION AND EXHIBITION CENTRE, 21 MOUNTS BAY RD, PERTH, WA Iron Ore 2017 is the latest in the well-established and successful international iron ore conference series from AusIMM. Organised jointly

by AusIMM and the CSIRO, this year’s theme is “Building Resilience” in the current challenging climate of low iron ore prices.

The conference will also cover the latest developments in the genesis, geology, exploration, mining and processing of iron ores, including new products and market outlook.

It is expected to host a diverse range of professionals, including geoscientists, mineralogists, geologists, mining engineers, metallurgists, managers, operators, consultants, engineering companies, equipment manufacturers, reagent suppliers and iron and steel makers.

•Iron Ore 2017: Building Resilience 03 9658 6128 www.ironore.ausimm.com.au

AMEC CONVENTION 2017 JUNE 7-8 2017 CROWN PERTH CONVENTION CENTRE, WESTERN AUSTRALIA The Association of Mining and Exploration Companies’ (AMEC) convention theme for this year is “Driving the next cycle”, with discussions on how to use the lessons from the past to shape the mineral resources sector into the 21st century. The event will bring together industry world leading speakers from industry, government and research

AUSTRALIAN MINING BRINGS YOU THE LATEST EVENTS FOR THE RESOURCES INDUSTRY

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2017

AUSTRALIAN MINING PROSPECT AWARDS

NOMINATIONS NOW

OPEN To nominate, please go to

www.prospectawards.com.au Platinum sponsor

Sponsors

The New Generation of seating

Engineered for comfort in the harshest conditions KAB Seating has been designing and manufacturing suspension seating for industrial vehicles since 1968. KAB’s expertise in seating was originally grounded in the Construction sector, expanding rapidly to include a wide range of commercial vehicle sectors.

Our Sciox seat has been engineered to offer a best value solution with premium durability and sculpted cushions maintaining comfort all day long. Its air suspension system offers the driver protection from harmful vibrations and resulting bodily injury.

The Sciox range has taken inspiration directly from mining vehicle users. Feedback has been used to inform the design of the Sciox seat. Extensive research and testing has been carried out to engineer a complete seating solution for vechile users.

W: kabseating.com.au T: 1300 130 522 E: australia.brisbane@cvgrp.com