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Science education Just too challenging?
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Mawson’s legacy
Port Pirie Ăź Whyalla ? Uranium...
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04 From the Editor
from the
Editor Megan Andrews Deputy editor Stephen Batten Publisher South Australian Chamber of Mines & Energy (SACOME)
Editor
Production editor Lindy McNamara Editorial committee Tino Guglielmo, Dayne Eckermann, Lachlan Wallace, Jacqui Dealtry, Leanne McClurg, Steve Whitham, Clara Roccioletti Designer Raymond Capozzi
As a ‘humanities’ person (a humanitarian, as described by a generous offspring) I would have put up some resistance if asked as a teen to discard some of my creative arts and English favourites for maths and science.
Printer Lane Print Advertising & SACOME Membership Stephen Batten (08) 8202 9999 sbatten@sacome.org.au
But maybe it makes some sense.
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Tell Us What You Think..
Technology, engineering and maths (STEM) skills are increasingly touted as the foundations for our future jobs.
Your opinion and feedback is important and we always appreciate hearing from readers. Love or loathe something you’ve read, or simply want to get something off your chest then please feel free to drop us a line. editor@resourcingsa.com.au
In my early career, I worked at the Commonwealth Bank building on King William Street. It was buzzing, swarming with workers on every level. The ground floor was a hub of activity with tellers and various officers serving the hundreds (thousands?) of daily customers. The basement was humming – organised chaos with hundreds of humans and a few machines processing, checking and balancing thousands of scraps of paper. I attended a training course in the building the other week. The ground floor also hosts a coffee shop now, and the handful of people enjoying their three o’clock lattes pretty much eclipsed the scant bankers. The basement was a sad, empty hull. Like moths to a flame, myself and fellow first aid aspirants gathered beneath the only lumens emitting from that shadowy cave. Luckily our trainer was a hoot.
But what of the other 25 percent? That’s a reasonable whack for us non-STEMmers. It’s hard to find an industry that has not been altered dramatically by technology, science and maths. Marketing, for example, requires business skills and creativity. But now there’s extensive data analysis, interpreting social media and communications analytics, optimisation, understanding multimedia resolution and compression, calculating, correlating and forecasting amount and mix of dollar spend to digital opportunities... there’s maths, stats and more. Minerals and petroleum, of course, are all about science. And as technology changes, opportunities in the sector will also broaden. Prof. Tanya Monro, Deputy Vice Chancellor at Uni SA recently commented “Science is often seen as dry and procedural but at its heart, it’s a creative process.” She also made the point that a scientific method is needed by society to make better decisions. I hope you enjoy our stories this issue and be sure to check out our STEM features. It seems there’s a good argument for building a STEM capable workforce, including valuable contributions from our creative ‘humanitarians’!
So there’s less jobs in banking. What has that to do with resources? Not a lot, but the question is, where are our future jobs?
Follow SACOME on facebook.com/southaustralianchamberminesandenergy Linkedin/South Australian Chamber of mines and energy Twitter @Mining_EnergySA
www.sacome.org.au
Apparently 75 percent will be based on STEM skills – data science and information systems, healthcare, research, mining, finance, trades or logistics perhaps – and some say up to 60 percent of the jobs we’ll do in 2025 haven’t been invented yet.
Megan Andrews Editor
Resourcing SA is published by the South Australian Chamber of Mines and Energy (SACOME), our partners include:
Diamond
Platinum
Gold
Silver
Zircon
QHEATHGATE ISSUE 04 RESOURCING SA Spring 2016
Black Gold
Contents 05
14 | FEATURE What exactly does high level nuclear waste entail?
10 | SCIENCE ALIVE!
20 | ENVIRONMENT
Adelaide’s annual extravaganza event enthralls more than 30,000 children and parents.
Aboriginal high school students find unique learning experiences ‘on country’.
In this issue 8 FEATURE
Women in resources making their mark.
28
FEATURE
High electricity prices placing a burden on business in SA.
STEM feature DOWN TO PRACTICALITIES 7 Private industry engages teenagers in career planning and personal development.
HERITAGE 12 Sir Douglas Mawson’s remarkable 30 FEATURE contribution to mining and energy
SCIENCE ALIVE! 10 Adelaide’s annual extravaganza event
19 PROFILE
INSPIRING SCIENCE ON 16 THE EYRE PENINSULA
The tide is turning for junior resources companies.
in SA.
Kara Edmonds’ love of nature is a perfect fit for her role at Olympic Dam.
32 FEATURE
Why is the SA Government supporting resources?
20 ENVIRONMENT
33 COMMUNITY
24 FEATURE
34
COMMUNITY
26 FEATURE
36
WORKFORCE
37
WORKFORCE
Nature Foundation teams up with uranium miner Heathgate.
The future of Whyalla remains uncertain as the search for a buyer of Arrium continues.
Activity at Leigh Creek could be on the up with a new energy prject.
Stakeholder engagement for the digital age.
Nyrstar upgrade a breath of fresh air for Port Pirie.
Safety in training
An online training program helping managers to become effective leaders.
enthralls more than 30,000 children and parents.
A low population is no impediment to interactive science and maths.
TO LIFT OUR 22 TIME STEM GAME
Is Australia missing the mark?
BRINGING REAL LIFE TO 38 SCHOOL
Companies partnering with school groups are providing real world STEM.
BREAKING OUT 40 Adelaide University prepares for its elite summer school for minerals exploration enthusiasts.
ISSUE 04 RESOURCING SA Spring 2016
06 Letters to the Editor
Winning letter
Crops or carats? We hear a lot in the press these days about conflict between mining and farming and, at first glance, there would seem to be little shared interest between the agribusiness and mining sectors. But dig a bit deeper (pardon the pun) - and there are many similarities and synergies. Not only is gold dug out of the ground, we also produce gold from farms. Agribusiness and mining both rely on Australia’s natural resources to create wealth. As industries, they also rely on each other to prosper. Agriculture depends on mined minerals such as phosphates to fertilise the soil. Mining needs agricultural products to feed, clothe and shelter the industry’s workforce. As well as such dependencies, mining and agribusiness share a need for improved infrastructure - the sort of infrastructure required for a mine is exactly the sort of infrastructure needed to service agribusiness expansion. Both industries aid national economic growth, contribute to a healthy trade surplus and provide an inflow of investment capital. At the same time, each can have positive or negative consequences for the other industry. To maximise the positive and mitigate the negative consequences, agriculture and mining must work together. This requires clear policy frameworks and coherent industry strategies. Any competition or tension between these two sectors, agribusiness and mining, is best addressed by people of good will from each sector working together with a synergistic, not a competitive, approach. The agribusiness sector is up for this. What response can we expect from our mining colleagues?
Tim Burrow CEO, Agribusiness Australia
Opportunities at hand
Any fear amongst the Woodside residents to having a working mine so close to their town needs to be tempered by a similar situation here at Strathalbyn a decade ago, where many residents were also loath to have a working mine so close. Australia has a history of communities growing up out of nothing (and then often dying once the ore body is gone) around mines but in these current times it seems that sometimes a community will have a mine growing within its midst. It must be said that mining companies need to be stringent and take on board every environmental consideration put to them. This, and working closely with and being answerable to the local community, is not only good practice it is a necessity in today’s world. As a Strathalbyn resident I would like to say that I, certainly, welcome the fact that when Terramin starts production on their Woodside
‘Bird in the Hand’ mine that they will start processing the ore at the Angas Zinc site just out of Strathalbyn. The addition of around 40 jobs in the Strathalbyn area will be a welcome one once the crushing and concentration commences. I am sure the same goes for the Hills towns near the site once the mine is in full swing. The support that this and other mining companies tip into their local communities is sometimes not fully understood but should be welcomed. Mines come and go, but their legacy can certainly live on and that legacy should be positive and communities can facilitate the way to make that happen.
Andrew Strathalbyn
Immediate solutions for SA the key It’s encouraging to see that at the recent COAG meeting of energy ministers there was alignment (on the most part) towards long and medium-term reform of the energy markets; including long-term structural change in the National Electricity Market (NEM) to accommodate various recently announced targets of increased penetration of Renewable Energy (RE) generation across the eastern seaboard, and importantly for all energy users in SA, expediting the regulatory focus for a possible new interconnector between SA and NSW to provide a mid-term solution to the current wholesale electricity market issues in SA. But what of the short-term issues? A new interconnector may not be available until around 2020 and will do little for SA’s immediate circumstance of high levels (~40 percent) of intermittent RE generation and risky low levels of baseload generation providing inertia for supply security. Furthermore, by 2020 VIC will have 25 percent RE penetration (if targets are met), QLD will be well on the way to 50 percent RE by 2030 and NSW is expected to be well over 20 percent RE. In other words, the current
solution for SA of importing from other states will not work in the long term unless a NEM wide solution is found. Regardless of its founding principles, the NEM is now required to deliver on the three social objectives of transitioning to zero emissions while maintaining supply security with a least cost of supply solution. The most economically efficient solution to achieve these objectives is to use what generation we have currently installed to provide low emissions baseload supply security (eg gas fired), but also incentivize investment in new technologies as we move forward (eg thermal solar baseload). There are a number of proposed capacity payment and other models for providing a solution framework to this problem, however the main point is that finding a solution to these issues needs perhaps more focus immediately by industry and government so as to underpin the longer-term solutions highlighted by COAG.
Nicholas Mumford Mumford Commercial Consulting Pty Ltd
Editor’s note: Check out our infographic on electricity prices in SA, on page 29
Our winning correspondence each issue receives a 250gm box of assorted chocolate truffles from Haighs. Congratulations Andrew! Send us your thoughts, we love feedback - and what better incentive than a box of SA’s award winning Haighs? editor@resourcingsa.com.au Letters or emails may be edited to fit.
ISSUE 04 RESOURCING SA Spring 2016
STEM Feature 07
Renee Preece (left) and Teresa Janowski (right). Image: Tom Roschi
Down to practicalities A four-day program held in Adelaide provided high school girls with a unique experience, delivering life skills and expanding their views on what the future could hold. By Megan Andrews It’s no secret that women are dramatically under represented in roles based on science, technology, engineering or maths skills – making up only a quarter of Australia’s STEM workforce. STEM Sista is the brain child of South Australia enterpreneur Teresa Janowski and the organisation Concept2Creation. The initiative was created to help tackle this inequity and increase options for girls. Teresa creates practical programs that engage teenagers in career planning and personal development. STEM Sista is designed to give girls mentoring and the confidence to consider STEM futures. The program covers goal setting, budgeting, resilience, dressing for success, and the opportunity to meet working professionals.
For the July school holiday event, Teresa called in BP Australia to assist. As event sponsor, BP funded the program but also provided personal input with real world examples to ensure the event would inspire, increase self-confidence, and open the girls’ minds to STEM opportunities. Teresa says the contribution of Renee Preece, external affairs manager at BP Australia, was pivotal. “Renee showed a video of one of the projects BP is working on in Australia, identifying the multitude of STEM roles that are essential to its success,” Teresa explains. “This really impacted the girls. It opened their minds to roles they had not even considered.”
Teresa says Renee joined the class again on day three for the financial planning and budgeting session. “Renee was kind enough to share her own way of budgeting and show how this allows her to manage her personal budget effectively.” Anushka from Henley High School participated in the event, saying it was valuable to be shown how to budget and set goals and then see a practical example: “Renee proved it does work… it’s possible!” Lucinda, also from Henley High, commented, “I had the privilege of meeting Renee, along with a number of different women involved in STEM and found it extremely beneficial to my career planning, along with learning different life skills to help me in future”.
Bacon & eggs, STEM on the side STEM was also on the menu at another July event, when Heathgate Resources and Concept2Creation hosted Year 9 and 10 boys and girls to a morning of STEM. Students from across South Australia joined professionals from Heathgate Resources, a uranium miner with operations in the State’s north, for breakfast and a presentation including how STEM skills are applied within the company. Nima Sherpa, chemical and process superintendent at Heathgate, then brought in geologists, hydrogeologists, engineers and scientists from within the company for a Q&A session.
Each of the speakers reinforced the concepts to ‘take a risk, give it a go, don’t be afraid of failure; there are more open doors than closed ones’
“This provided a range of interesting perspectives from people working in STEM and the resources industry,” Teresa said. Andrew Costi, design and technology teacher of Hamilton Secondary College said, “Our students gained a great deal from the speakers as each of them reinforced the concepts to ‘...take a risk, give it a go, don’t be afraid of failure; there are more open doors than closed ones...’ “It was re-assuring and inspiring,” he said. “The presenters spoke at a level which made sense to the students and they retained much of each speaker’s message.”
ISSUE 04 RESOURCING SA Spring 2016
08 Feature
resources
Making strides in Inspirational women working in SA’s resources sector were celebrated at the South Australian Women in Resources Awards, presented at a SACOME lunch in May. By Bridget Fardon
F
ive individuals were awarded from a pool of around 30 exceptional nominations at this year’s awards, together with one company winner. The South Australian Women in Resources Awards are an initiative of the Women in Resources South Australia committee (WinRSA) which aims to shape the future of the State’s resources sector by supporting and encouraging women in the industry. Outstanding South Australian Tradeswoman, Operator or Technician award winner Kristy Hasting grew up on her family farm in South Kilkerran (on York Peninsula) and initially worked in the hospitality industry before commencing with Thiess, at OZ Minerals’ Prominent Hill mine site. Kristy worked her way up to driving a dump truck weighing 400 tonnes (when fully loaded) as well as large graders – one of the trickier machines to operate and one of the riskiest in a mine site as they work in high-risk, high-traffic areas. After working on dump trucks for 12 months, Kristy was asked to train new dump truck operators. She is now also helping to train new grader drivers and will be responsible for passing on her knowledge to the next wave of the workforce – both male and female. Kristy says her company Thiess is “very supportive of females in the industry and
everyone I have worked with over the years has been very supportive and respectful of the females on site”. She is proud to be recognised with the award and believes that it shows other women in the industry that if you keep your head down and do the job to the best of your ability, you can match it with anyone. “FIFO (fly-in, fly-out) is a great lifestyle as I work week on, week off, so when I am home I get to spend quality time with family and friends and working on my own property,” she says. Fyfe Pty Ltd won the Excellence in Diversity Programs and Performance Award category and Lucy McEwen (General Manager, Property Services at Fyfe) was joint winner in the Gender Diversity Champion in South Australian resources category. Fyfe’s commitment to equal treatment of its staff with flexible or part-time working arrangements saw Lucy promoted a week before having her second child. She progressed to a position in the executive management team, while maintaining flexible working arrangements. Lucy has visited the firm’s various project sites and gained a deep understanding of work conditions and practices, that has helped her propose changes to strengthen Fyfe as an inclusive workplace.
The winners Gender Diversity Champion in SA Resources Sponsored by Thiess Joint winners: Kate Hobbs (Senior Consultant, First Principles Consulting); Lucy McEwen (General Manager, Property Services at Fyfe) Excellence in Diversity Programs & Performance Sponsored by the Department of State Development Winner: Fyfe Pty Ltd Exceptional Young Woman in SA Resources Sponsored by OZ Minerals Winner: Jasmine Richards (Senior Environmental Advisor, OZ Minerals)
ISSUE 04 RESOURCING SA Spring 2016
Outstanding South Australian Tradeswoman, Operator or Technician Sponsored by Santos Limited Winner: Kristy Hasting (Operator, Grader and Haul Truck – Thiess, OZ Minerals Prominent Hill mine site) Exceptional Woman in SA Resources Sponsored by Heathgate Resources Pty Ltd Winner: Dr Andrea Marsland-Smith (Manager, Regulatory and Compliance, Heathgate Resources Pty Ltd)
Jasmine Richards, Exceptional Young Woman in Australian Resources, at the national awards ceremony. Image: Andy Stephen
Feature 09 Her involvement with WinRSA, (she’s the current chair) is fully supported by Fyfe, with the firm also supporting and participating in the WinRSA/WIMnet 2015 mentoring program with three mentors. Fyfe’s executive team comprises equal numbers of men and women and by focusing on removing barriers to flexible work, the company has seen the development of internal diversity champions and ensured pay equality across the organisation.
Minerals since 2011 as a hydrogeologist and environmental professional. As a young woman working in the industry, Jasmine strives to do what she can to mentor other women in the resource industry in an official capacity through committees and organisations, and unofficially with her peers. Her goal is to work towards equality for all within the sector. Jasmine is
Jasmine Richards, Senior Environmental Advisor for OZ Minerals at Prominent Hill was the winner of the Exceptional Young Woman in South Australian resources (sponsored by OZ Minerals). Jasmine has been working at OZ
South Australia’s award winners are also finalists in the Women in Resources National Awards, held in September.
NEWSFLASH!! The National award winners were announced on 1 September 2016. BHP Billiton Olympic Dam Women in Resources National Awards winners: Gender Diversity Champion in Australian Resources Sponsored by OZ Minerals Winner: Michael Schoch (WA) General Manager – Crux Project, Shell Australia Pty Ltd
Everyone I have worked with over the years has been very supportive and respectful of the females on site
currently the deputy chair of the Women in Mining Network South Australia (WIMnetSA) committee (2015-current) and is also the SA representative of the national WIMnet committee (2016).
Excellence in Company Programs and Performance Winner: Aurizon (QLD) – Targeting 30% women by the end of the decade High Commendation: McCullough Robertson (NSW) – Inclusion and Diversity Strategy
Outstanding Australian Tradeswoman, Operator or Technician Sponsored by Glencore Winner: Kelly Jane Down (Tas) Safety and Training Officer, Bell Bay Aluminium Exceptional Young Woman in Australian Resources Winner: Jasmine Richards (SA) Senior Environmental Advisor, OZ Minerals Exceptional Woman in Australian Resources Winner: Cecile Wake (Qld) Vice President Commercial, Shell Australia High Commendations: Dr Sandra Close (Vic) Founder and Director, Surbiton Associates Pty Ltd Claire Negus (WA) General Manager Commercial, Roy Hill
Heathgate Resources Pty Ltd Technical Excellence Driving Change
Half Page
• Investing in South Australia for over 25 years • Ongoing and sustained employment for South Australia
• Environmentally Responsible In-situ Recovery Mining • Winner Premiers Award - Excellence in Social Inclusion 2015 & 2016 • Winner SACOME Exceptional Women in South Australian Resources 2016
10 STEM Feature
Science
Alive!
Few annual events can claim the exponential success that is Adelaide’s Science Alive! This year’s explosion of fascinating, freaky and fabulous enthralled and entertained around 30,000 children and parents from August 5-7. Megan Andrews reports
Robot Roos, a community initiative sponsored by BAE Systems, is an all-student group that builds robots for entering in competitions. It’s a global phenomena, started in the US, and in Australia they compete in Sydney (which also hosts competitors from our Asian neighbours). Pictured is one of their creations, which children could drive and operate by remote control at the group’s Science Alive! stand. The Roos like to promote what they do, share the fun – and potentially recruit new engineering enthusiasts!
Slava was one of the volunteers to generously donate his time helping at the South Australian Chamber of Mines & Energy’s stand. As a mining engineer graduate, Stavos was a wealth of information. Here he explains the magnetic properties of magnetite iron ore, a mineral mined in South Australia and used to make steel (haematite and magnetite are the two main types of iron ore and either can be used to make steel, through smeltering in a blast furnace).
The Australasian Radioprotection Society aims to make sure radiation is used safely. It has 250 members who are engaged in activities to ensure the safe use of radiation in applications such as medicine, science and research, manufacturing and mining. Visitors to their stand learnt about natural radiation in the environment and in natural and man-made objects, how radiation can be beneficial and many others aspects of often misunderstood ionising and nonionising radiation.
SA-based resources companies Beach Energy, OZ Minerals and Iron Road, together with BP Australia, all pitched in to help make the SACOME booth a hit with the crowd.
Bridget at the South Australian Chamber of Mines and Energy stand explained some of the concepts geoscientists use to investigate what metals may be buried beneath the earth using a metal detector, compasses and a magnetic measurement device. Children could also learn about some of the uses for a range of mined substances, including mineral sands from South Australia. Many children were surprised to discover that oil extracted from the ground makes not only petrol and plastics, but cleaning products, bitumen for roads, nylon and polyester in clothing and shoes, and much more. ISSUE 04 RESOURCING SA Spring 2016
The South Australian Museum was again a popular booth with the children. The museum had an enormous range of activities on offer, including the ever popular fossil hunt.
Adults and children alike provided a constant stream of visitors to the Know Nuclear stand. The nuclear engagement display distributed information on the facts about nuclear, particularly nuclear energy storage, with staff also keen to listen to the views of their visitors. An expert was on hand to answer most technical enquiries, information sheets were handed out, and plenty of balloons.
STEM Feature 11
Daniel Griffiths from the University of South Australia’s Mechatronic Engineering and Robotics Club was proudly parading Freddy the Fire truck through the pavilions. The club partnered with the CFS to build Freddy, creating the appliance’s intelligent insides. The university and CFS have different reasons for building and maintaining the handy machine, but both like to show off their cheery utility – and Freddy had no shortage of young admirers.
Flinders University’s Science and Engineering faculty had a fascinating display: a 3D real time map in the form of a brightly lit sand box, where children could shape hills and valleys and see how the colour of the ‘landscape’ changed in real time, with warm colours depicting the highs, and cool colours the trenches. The friendly young staff explained how the technology provides valuable information on topography, by depicting the height of mountains and depth of valleys. The queue for the animals display snaked more than 60 metres at the height of Sunday afternoon hysteria, but that didn’t stop the thousands of children intent on patting an adorable bettong, peering at a water dragon and picking up a friendly bearded dragon. A lucky stand volunteer hosted an enormous python winding its way around her body, just centimetres from the queuing enthusiasts.
The oil & gas boys explained the petroleum cycle, sharing core samples, outlining drilling, showing how oil fluoresces and using interactive tools such as microscopes and 3D posters to engage the crowd. They also enjoyed explaining why some geological substances are more permeable than others, enabling liquids to move easily through some materials and with more difficulty (or not at all) through others. It’s all to do with the porosity of material, shapes of the holes and how they interconnect. Aero bars, chocolate milk and Tee Vee snacks proved to be engaging educational tools – and had nothing to do with the popularity of their booth!
Daleks have been a Science Alive! hit from the very beginning. These dalek enthusiasts make every part of their machines and some were busy at their stand over the weekend, forming the half spherical domes that adorn the bodies. The polyurethane domes are cast from fibreglass moulds before being attached to the robots. Seven terrifying machines were on display or in action, the grey one pictured was a favourite, where children could speak into a microphone at the machine’s back and have their voices projected to the crowd ‘dalekised’. Exterminate!
Images: Tom Roschi
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12 Heritage
Members of the Adelaide University final year geology class, 1940 atop Wilyerpa Hill, southern Flinders Ranges. Reg Sprigg top right Sir Douglas Mawson standing bottom right (Courtesy Doug and Margaret Sprigg)
Sir Douglas Mawson: man for all seasons By Steve Whitham
A
ntarctica is a cold, dry, barren continent. In fact it is classified as a desert.
In that aspect, it has something in common with South Australia’s outback, certainly in terms of rainfall. And there is something else that irrevocably binds the two. The great adventurer Sir Douglas Mawson has explored both. Mawson’s three Antarctic expeditions are legendary: his leadership, courage and stories of survival were epic. To quote the title of Tom Wolfe’s book about American astronauts, Mawson had ‘the right stuff’. Perhaps, not surprisingly, Mawson’s polar adventures somewhat overshadow his valuable contribution to South Australia’s mining and energy industries. From his beginnings in 1905 as a lecturer in mineralogy and petrology and later as professor of geology and mineralogy at Adelaide University, Mawson inspired several generations of geos to uncover the hidden wealth of South Australia’s minerals and oil & gas. In fact it was he who was instrumental in ISSUE 04 RESOURCING SA Spring 2016
identifying Australia’s first radioactive ore body at Radium Hill in the dusty dry mid-north east of South Australia in 1906. Then in 1910, after forming the Radium Extraction Company of South Australia, Mawson became a mining mogul himself in order to extract uranium from Mount Painter in the Flinders Ranges.
But the story picks up more than 30 years later when a young Reg Sprigg, one of Mawson’s star students whom he had endowed with a passion for geology, saw that uranium was fast becoming the new fuel for electricity generation.
Mawson never spoke about his famous Antarctic expeditions... He was totally focused on what he was there to teach Well a mining minnow maybe, as he soon realised that despite a fledgling demand for uranium mostly for medical purposes, there was no fortune to be made.
Mawson packing a geological specimen, Encounter Bay geology camp, August 1922. (Courtesy Thomas family collection)
Heritage 13 In her book ‘Rock Star’, Kristin Weidenbach says that Sprigg was “optimistic that Radium Hill could in fact yield uranium in amounts and grades required to be economic”. And so in the late 1940s on the back of Mawson’s prescience, uranium mining began in earnest at Radium Hill.
As with everywhere in life and art, those epic moments that are preserved forever, are few and far between. But when a genius does arise among us, they will outlast their own time. Of course Sir Douglas Mawson’s heroic
Antarctic expeditions are much acclaimed. But more than that, his vision and the legacy he left South Australia and our mining industry, is immeasurable. Further reading: Rock Star: The story of Reg Sprigg by Kristin Weidenbach
Mawson and Sprigg were again to cross paths in the 1950s, this time when Mawson was appointed to the inaugural Santos board. Sprigg at the time was Santos’ geological consultant, convinced that oil was to be found in the State’s north east in what was then known as the Great Artesian Basin. One of Mawson’s great strengths was his ability to evoke passion and imagination among his geology students. Field trips with his students to the Flinders Ranges were renowned for his riveting explanations of the ancient glacial formations, particularly around the Arkaroola area. Former geologist Brian Clarke recalls being one of 200 students studying under Mawson in the 1940s and the great man even stayed with Brian’s family at their Melrose homestead during one of the field trips. “Mawson never spoke about his famous Antarctic expeditions during his field trips. He was totally focused on what he was there to teach,” said Brian.
Old Boolcoomata Homestead 1945. Sir Douglas Mawson (standing far right) with Adelaide University Geology students on a Flinders Ranges trip, together with host family at their Melrose station. Brian Clarke is back row far left (with tie). (Courtesy David Thorn Clarke)
Win an iPad Air 2
Wi-Fi + cellular, 64GB! You choose – gold, silver or grey! Need an iPad? An iPad upgrade? A gift for a special person? We have one to give away, entry open to South Australian residents only. Just enter the web address below and complete five easy questions in our two minute survey to be in the running to win this fabulous, full size iPad Air AND you get to choose the colour! Enter here: www.surveymonkey.com/r/resourcingsa
Hurry, entries close October 10 2016. The winning entry will be randomly selected. As long as all questions have been answered the entry is eligible to win – there are no correct answers and answers will not be judged in selecting the winning entry. Competition open to South Australian residents only. Enter at www.surveymonkey.com/r/resourcingsa
14 Feature
HIGH LEVEL STORAGE
Visiting the Cigeo Underground Laboratory in France, 500m underground. Image: Kyra Reznikov
What does the disposal of high level nuclear waste involve? Lawyer Kyra Reznikov travelled to Finland, France and the UK to find out just what South Australians should be considering, and answers our top four questions.
S
outh Australia’s Nuclear Fuel Cycle Royal Commission found that the State potentially has a lot to gain economically from building and operating a facility to dispose of high level nuclear waste from overseas. So what do these facilities look like, and can they be operated safely? Kyra Reznikov is the head of the Environment, Climate Change and Planning practice at Finlaysons Lawyers. In April this year,
ISSUE 04 RESOURCING SA Spring 2016
she joined a study tour organised by the committee for Adelaide and visited Finland, France and the UK to investigate how their high level nuclear waste repositories have been developed, assessed and approved. She shares her learnings here, addressing some of the most important questions. Most South Australians have not had any experience with nuclear power. There are many things we need to question, investigate and discuss before we decide whether to follow the
recommendations in the Royal Commission’s report. Our community needs to properly understand the risks and opportunities of the disposal of high level waste and work through how we might be able to proceed from here. Learning from the experience of other countries that have been through this process is a good way to start an informed conversation.
Feature 15 Kyra Reznikor, Finlaysons Lawyers
& 1 What exactly is high level nuclear waste? High level nuclear waste (HLW) is the spent fuel that comes out of the reactors in nuclear power plants. It’s usually in the form of the fuel assemblies that are removed directly from the reactors. These are bundles of thin metal rods (about 4-5 metres long) filled with ceramic fuel pellets containing enriched uranium. HLW emits high levels of radiation, so it must be shielded to protect the safety of people and the environment. The radioactivity of HLW reduces over time – rapidly at first and then more slowly as the radiation level eventually returns to the equivalent of naturally occurring uranium.
2 Can repositories be built to last such a lengthy time? The designs of the Finnish and French high level waste repositories that we investigated on the trip are the result of decades of scientific and engineering effort. The tunnels in each facility are precision engineered for the particular geological conditions of its site, and the design incorporates multiple levels of redundancy to ensure that the integrity of the facility is maintained. France’s Cigeo repository is designed to withstand two Ice Ages.
3 How is high level waste transported? HLW has already been transported in more than 7000 shipments around the world since the early 1970s, without a single leak or breach of containment. Steel transport casks are used for transport of HLW on rail carriages and special-purpose ships. The casks have walls that are 25-30 centimetres thick, weigh more than 100 tonnes each, and can withstand fire, explosion, collision, being dropped from heights and even the pressure at the deepest part of the ocean. Specialised equipment is needed to open them, which prevents theft or sabotage.
4 What is deep geological disposal? Deep geological disposal is internationally accepted as the best method of safely disposing of HLW. It involves encasing the HLW in solid canisters made of metals such as steel and copper, and burying the canisters 400 to 500 metres underground, in engineered tunnels and chambers within a stable rock formation. The rock provides the HLW with a stable place for it to naturally lose its radioactivity, isolated from the surface environment where it won’t be disturbed. Once buried in this way, it doesn’t need to be actively managed by future generations. Because HLW keeps losing its radioactivity over time and is separated from the surface environment by the canisters and several hundred metres of solid rock, the amount of radiation that can reach the surface is tiny compared to the natural sources of radiation that we are exposed to every day, such as natural background radiation, medical radiation and even natural radiation in our food. The safety assessment for the Onkalo facility in Finland, which is currently under construction, looked at what would happen if one of the buried canisters was defective so that it did not contain the spent fuel as designed. It found that the worst case radiation dose that a person would be exposed to, if they stood on the surface above the facility for a whole year, would be the equivalent of eating one tenth of a banana.
Radiation doses in context Natural background radiation generally in Australia ~ 2600 micro sieverts (μSv)/year One chest CT scan~ 5000 μSv Flying from Australia to London ~ 65 μSv Eating 1 banana ~ 1 μSv Worst case scenario, imagining a defective waste canister, standing on the surface above the Onkalo facility (assuming a defective canister) ~ 0.1 μSv / year
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Inspiring SCIENCE ON THE EP
16 STEM Feature
Reduced resources and funding generally go hand in hand with a small school, but this hasn’t dampened the ability of Wudinna Area School to engage its students in science and maths. By Megan Andrews “We have a strong focus on science, maths and literacy here at Wudinna,” Ned says. “We encourage students through activities, engaging their interest then letting them explore.” Situated in an area with a large agricultural industry, the Wudinna school includes practical agricultural components to help engage their students. “There is a lot of science in agriculture and a lot of maths as well,” he explains. “You need to know spray rates, fertiliser rates, fuel economy and so on. “We try to make sure all of our learning is relevant and we strive to develop a growth mindset, getting kids to find out what they don’t know so they can explore what they need to know. It makes learning relevant.” With the abundance of information available, Ned says it’s critical children are taught how to determine whether the information they are reading is accurate and relevant.
Wudinna Area School, with a population of 176 across reception through to Year 12, is situated on the Eyre Peninsula. The school made a decision to invest in a science laboratory years ago, because of the importance of science to its community. Primary students have also benefited from a specialist secondary science teacher in recent years, who picked up teaching in the primary levels. Principal Ned Loades says education is all about relationships, and not only with the children but also with parents and teaching staff. Having a specialist who can engage and inspire children, while making themselves available for other teachers as a mentor and support network, has been extremely valuable. Together with relationships, he says engagement and shaping children to think for themselves underlies all teaching at Wudinna. ISSUE 04 RESOURCING SA Spring 2016
“We’ve moved beyond just thinking we need to fill kids with knowledge, they need to be able to use knowledge and research and understand what’s truth and what’s not,” Ned explains.
We’ve moved beyond just thinking we need to fill kids with knowledge, they need to be able to use knowledge and research and understand what’s truth and what’s not
At Wudinna, the science curriculum is tailored across the different year groups. “The kids love to get into a lab and feel like a scientist,” Ned says. “Bunsen burners and beakers are all part of that, we burn magnesium, get back to the periodic table... there’s a huge range of activities.” As for the national science curriculum, he says they make it work for them. “Like maths, we see where the connections are and we make the curriculum work for us. We do it properly, but we also tailor our teaching and ensure the activities are really engaging for our students.”
A Great Australian Resource
Join our Principal Dr Nicole Archard for a College Tour Wed 21 Sept 2016 at 9.15am Fri 18 Nov 2016 at 9.15am Book online www.loreto.sa.edu.au/college-tours Loreto College Marryatville is South Australia’s only all-girls independent Catholic day and boarding school, catering for students from Early Learning to Year 12.
ISSUE 04 RESOURCING SANo: Spring 2016 CRICOS Provider 00629G
South Australian
RESOURCES INDUSTRY
INNOVATION SUMMIT
6 18 3 1
Keynotes: BHP Billiton, Condor Energy, OZ Minerals, Sandvik, Deep Exploration Technology CRC, Maptek Managing Directors and Technical Leaders will share how they are successfully innovating and competing in their dynamic, global industries.
Succinct presentations on local innovations and innovation enablers Advanced technology, processing, environmental, community relations, collaborative research, commercialisation. Applicable to mining and/or oil & gas operations, there is something to learn from all of these innovation leaders.
Networking / exhibition sessions
Exclusive, optional tour of the Tonsley Innovation Hub
Last to re chance giste r!
WHO SHOULD ATTEND? Anyone involved in the growth of South Australia’s resources industry, including senior and operational management, organisations who provide goods and services, government and research bodies and anyone with an interest in innovation and driving our dynamic resources industry onwards and up!
VIEW THE PROGRAM OR REGISTER AT SACOME.ORG.AU 23 September 2016 8am – 2.40pm Adelaide Convention Centre $124 for members $198 for non-members Event Sponsors
Profile 19
For the of nature
Family camping trips, growing up on an Eyre Peninsula farm and participating in natureoriented initiatives like Trees For Life all helped shape Kara Edmonds’ love of nature – a perfect fit for her career at BHP Billiton Olympic Dam. By Megan Andrews
Kara Edmonds is one of a growing number of resources industry employees working in the environmental area. It was a career choice made at high school and she’s never looked back, having chalked up a decade now working for South Australia’s largest mining operation. “Mining was always something I wanted to get into from an environmental perspective,” Kara explains. She’s always understood the importance of the industry and its products and felt it was an excellent match for her environmental interests. With a firm plan for her future, Kara completed a Bachelor of Applied Science after school, majoring in biodiversity and environmental park management. After graduating, she was fortunate to land a temporary environmental monitoring role at Olympic Dam, based at Roxby Downs. Soon after, BHP Billiton offered her a full time role. “It’s been a fantastic career so far. I’ve moved from monitoring impacts to looking at the sources, working in operations, and now the approvals area.”
Kara gets up close and personal with a favourite local, a Central Netted Dragon
I’m really lucky to work with amazing people who care about the environment and genuinely want to make a difference
Kara says she’s an environmental jack-ofall-trades in her current role, which involves regulatory approvals, managing environmental offsets and GIS mapping (a geographic information system that captures, stores, analyses and manages geographical data). Like any industry, mining has potential environmental impacts to manage. At Olympic Dam, these may come from the mining, processing or transporting of its copper, gold, silver and uranium.
The environments surrounding the mine (including Roxby Downs) are constantly monitored, together with its water source, the Great Artesian Basin. When not working, Kara loves to spend time in nature, getting outdoors or in the garden, with her friends (including Kuri her adorable rescue mutt, a Jack Russell Heeler cross). “Now I’m based in Adelaide, I’m also enjoying getting out to our wonderful winery regions,” she adds. Kara sees plenty of opportunities ahead but is enjoying her current role. “I’m so lucky to work with amazing people who care about the environment and genuinely want to make a difference.” In the future, she may consider exploring the community engagement aspects of the sector. “I’m keen on helping others understand my industry, especially with all the pseudoscience on the internet. It’s really important people have correct information and you can have proper conversations based on facts.”
Bilbies, bettongs & all sorts of lizards One of the highlights of Kara’s time at Roxby Downs was volunteering as a tour guide for the Arid Recovery Program, co-funded by BHP Billiton, and located on and adjacent Olympic Dam’s mine lease. The aim of the Arid Recovery Program, initiated by BHP Billiton’s predecessor in 2001, is to rehabilitate the area to a preEuropean state.
“Working at Olympic Dam you dream of seeing bettongs and bilbies, and I’ve been lucky enough to not only see plenty but help others to also! “We’d mostly take school groups or tourists on the way up to Lake Eyre. You can go out at dusk, there’s a viewing hide, it’s fantastic,” she explains. The program has successfully reintroduced four species to date– the Greater Bilby, Burrowing Bettong, Western Barred Bandicoot and Greater Stick Nest Rat. It’s a voluntary
initiative and doesn’t form part of the mine’s environmental obligations under SA’s Native Vegetation Act. Under that act, where native vegetation is cleared the environment must be compensated by an ‘offset’, or action that results in a Significant Environmental Benefit (SEB) for overall environmental gain. “We have our own SEB area we manage,” explains Kara. “It’s around 11,000 hectares south of Lake Eyre, in an area called Gosse Springs.”
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20 Environment
A bewitching experience
An innovate collaboration between Heathgate Resources, Port Augusta Secondary School, Career Employment Group and Nature Foundation SA is providing unique learning experiences for Aboriginal high school students ‘on country’. By Caroline Nefiodovas Students at a Witchelina camp nail a GPS and mapping activity
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ature Foundation SA (NFSA) is leading a series of outback ecology work experience camps at Witchelina Nature Reserve, just north of Lyndhurst in northern South Australia. The Witchelina camps form the gateway for students to participate in the Aboriginal School Mentoring Program (ASMP), a dynamic program developed by Heathgate Resources’ Senior Human Resources Advisor, Jacquie Dealtry which recently won the SA Premier’s Community Excellence Award in Mining and Energy for Excellence in Social Inclusion. Heathgate mines for uranium at its Beverly operation in South Australia.
The students have gained so much from the camps. They all want to go to Witchelina again next year and learn even more about conservation and the opportunities out there to work on country
The camp program is designed as a unique learning experience, not only to ensure students enjoy their time at Witchelina, but also to gain important life skills such as living away from home in a remote location. The students gain conservation land management experience by participating in activities alongside Nature Foundation SA’s ecologists and conservation land managers.
education and possible employment in the resources industry. Backed by Heathgate, it’s aimed at providing young Aboriginal school students with the skills, opportunities and belief to complete their schooling and step out into the workplace with confidence. It also provides students with a good understanding of the resources industry and the opportunities to work on traditional lands.
The first camp for Years 8 and 9 students was held in June 2016, the second camp was for Year 10 students in July and the Year 11/12 camp will be held in September 2016.
Students spend three days in and around the Witchelina homestead participating in activities such as the Geocache Treasure Hunt Trail, and Bird Watching and Identification Walk – where they develop skills in map reading, conducting bird surveys, flora and fauna identification and data management. As part of
A groundbreaking program, the ASMP connects students with opportunities to further ISSUE 04 RESOURCING SA Spring 2016
the safety induction, students are taught how to operate UHF radios and GPS units. “By involving students in the range of work NFSA does in conservation and land management, they are learning about potential jobs available on the lands,” explains Alex Nankivell, NFSA Conservation Programs Manager. “All the people involved in the camps want to inspire, so the same students come back next year and learn even more. “It truly is a pleasure to help the students work on country and see their faces light up when they master new skills such as operating GPS units.” In subsequent years, the activities and skills gained at Witchelina can be counted towards certification in conservation land management and provide possible pathways to further education and employment opportunities through the ASMP. “All four members in this very exciting project are thrilled with the feedback from the students and the teachers, as well as from the families of the students,” says Heathgate’s Jacquie Dealtry. “We’re very much looking forward to learning from what we’ve started this year and developing the ASMP into a program that really proves to be a pathway for these wonderful students.”
Feature 21 Port August Secondary School Industry Pathways Senior Leader, Simon Finch said their students had gained much from the Witchelina experience.
operations. Heathgate and Nature Foundation SA are continuing to explore opportunities to work together with traditional owners of the lands at Witchelina and the Beverley Mine.
“They all want to go to Witchelina again next year and learn even more about conservation and the opportunities out there to work on country. The only complaint was that the camps weren’t long enough – they all wished they could stay at Witchelina longer.”
Jacquie Dealtry says the first two camps this year have been a great success.
“The students have loved learning more about their country and are super enthusiastic to gain new skills. I look forward to attending the Year 11/12 camp and progressing students through to the next phase of education at Beverley Mine.”
I look forward to attending the Year 11/12 camp and progressing students through to the next phase of education at Beverly Mine Since 2012 NFSA has been delivering Significant Environmental Benefit offsets by improving native vegetation on Witchelina Nature Reserve to offset disturbance at Heathgate’s mining
Flora identification and sample collection with NFSA conservation programs manger Alex Nankivell.
South Australian businesses helping build infrastructure. BP’s Great Australian Bight exploration drilling programme wouldn’t be possible without the onshore infrastructure being built with the help of local businesses. Infrastructure is being developed at various sites in Port Adelaide and Ceduna, where an aviation support base will be home to the Eyre Peninsula’s first dedicated helicopter facility. More than 25 local businesses and 100 people have been involved in the Ceduna project – about half of the workers are local and about 20 per cent of these are Indigenous workers.
By involving local businesses in these activities, investment flows through the full length of the supply chain. The development of a hydrocarbon province in the Bight could contribute to South Australia’s economy through construction, employment and ancillary opportunities for businesses and communities.
22 STEM Feature
Getty images
Time to lift
our GAME
Science, technology, maths and engineering skills are central to future jobs and competing in a global world – not to mention South Australia’s key industries including health, mining and defence. Yet we’re falling behind, and it all starts at primary school. By Megan Andrews
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ustralia needs a STEM capable workforce. The reasons are two-fold, it’s where the future jobs are, and we need strength in these areas for our nation to be competitive in a dynamic, technology shaped world. According to a PwC report published earlier this year ‘Making Stem a Primary Priority’, shifting just 1 percent of the workforce into STEM roles would add $57 billion to national GDP. Yet we’re falling behind in STEM graduates – in an environment where 75 percent of the fastest growing occupations require STEM knowledge.
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Year 7 is the level at which there should be specialist subject teaching and that’s what the Australian curriculum has been designed for
The experts are saying it all begins at primary school, and Australia is not doing so well. Here, critical foundation skills, knowledge and curiosity are established. The PwC report suggests that in primary school STEM, the focus should be on science and maths. Science is currently drawing the short straw, taking up less than 3 percent of teaching time and vaguely defined in the Australian curriculum. Unlike maths, teachers find it difficult to visualise what a year’s progress in science should look like. Ask someone with children in the public system and you’ll often hear comments around the lack of science or the same concepts taught year on year.
STEM Feature 23 Mining & energy need STEM! A lack of skills was one of the most significant challenges recognised by the resources industry at a cyclical peak several years ago – identified as a key risk to the industry’s progression.
Although not a concern at the bottom of the cycle when the industry must deal with other challenges, the tangent is starting to climb again and, as with all traditionally STEM-focused industries and newer ‘technology shaped’ ones alike, ensuring we have appropriately qualified graduates will become integral to the sector’s
continued innovation, productivity and global competitiveness. Many science degrees offer specialisation well into the course or through graduate diplomas - enabling students to fine tune career direction later, in consideration of job opportunities at that time.
STEM - What’s the solution? PwC’s ‘Making Stem a Primary Priority’ report found that “Australia stands to enjoy massive economic and societal gains if we can ensure every child finishes primary school with fundamental STEM knowledge and skills”. The report makes four recommendations: Provide access to a specialist Stem teacher for every Australian primary school. Including incentivising teaching students to complete STEM specialisations, creating opportunities for existing teachers to acquire
a specialisation, and fostering collaborations between schools to deliver universal access to expertise. Improve the standard of professional development in primary science and maths for all teachers Every teacher must be equipped to teach science and maths to a satisfactory baseline model, with specialists engaged to deliver targeted professional development. Better use of data for targeted teaching and enhanced learning in STEM and beyond
diagnose what each student knows, determine what they’re ready to learn, and implement strategies to ensure learning occurs and teaching impact is evaluated. Increase the quality and quantity of STEM instruction in primary schools. The national curriculum be revised to make it more rigorous; better modules and resources be developed and made easily available to all teachers; and the curriculum ‘decluttered’ to ensure core areas receive the attention they need.
STEM specialists should be trained to
Is it enough? Recognising the issues around science in schools, the South Australian Government stepped up in the budget this year with around $250 million to improve school science facilities at public schools and another $250 million as low interest loans to eligible non-government schools. Shadow Minister for Education, John Gardner, cautiously welcomes the investment but says students need the timetabling and teachers who can provide an experience that will “stimulate their minds”. However, anyone who attends the wildly popular Science Alive! event in Adelaide can confirm just how excited children are about science. So why are we letting them down? Sara Caplan, joint author of the PwC report, says teachers feel there is not enough time for everything and are continually juggling priorities. She says it’s also about teachers’ own abilities, interests and comfort levels, and more professional development is essential. “Primary teachers are generalists, and the vast majority have no tertiary education in science,” she says.
He says the funding presents an opportunity to ensure the high schools that are at capacity, have room to cope with what he hopes is the inevitable integration of Year 7 students.
However, the department says strengthening the teaching and learning of STEM from preschool to Year 12 will help improve student engagement and achievement.
“Year 7 is the level where there should be specialist subject teaching,” he says, “and it’s what the Australian curriculum has been designed for.”
“We want to ensure STEM teachers have strong disciplinary knowledge and underlying skills, supported through the establishment of effective partnerships for STEM teaching within and between schools and with business, industry and the community,” the department commented.
The Department for Education and Child Development disagrees, asserting “our primary teachers are well trained to teach the curriculum to Year 7 and beyond”.
“When STEM subjects are taught by people without a STEM background they lack confidence and find it difficult to answer questions and engage the class in anything outside what they’ve been taught.” Shadow Minister for Education John Gardner believes expertise in science is vital if children are to be engaged. He says teaching should be better promoted as a pathway for STEM graduates, adding “despite popular belief, not all secure highly paid jobs - often earning less than teachers.”
are a lot of learning materials on the web, teachers don’t know which ones are good. “The solution is not necessarily having a specialist in each school, but a network of specialists that teachers can draw on,” she says. “So many teachers are trying to do the right thing, but they just don’t have the skills to do it. “
Sara says many teachers feel isolated when it comes to STEM teaching and although there ISSUE 04 RESOURCING SA Spring 2016
24 Feature
Thursday April 7 2016 was a dark day for the Upper Spencer Gulf city of Whyalla… the day when it’s major employer, Arrium, went into voluntary administration. Nearly six months later, with their resilience tested, locals remain hopeful that their town will survive this crisis. By Lindy McNamara
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caused by over production in China and owed its banks and lenders more than $2 billion.
ewly-elected Mayor Lyn Breuer sums it up perfectly.
“This is the big one, this is the gut cruncher,” she says, referring to the still uncertain future of her beloved city Whyalla following the collapse of its main employer, Arrium earlier this year. “We’ve been through crises in the past – I’ve been through all of them – we’ve watched the shipyards close, the rationalisation of the workforce in the early 80s, the spin-off to OneSteel. “But I don’t think we’ve ever been in as serious position as we are now, and that’s what is worrying the community.”
Our strategy has always been to sell it as one entity and that continues
The predominantly one-industry town came under the national spotlight in April when Arrium went into voluntary administration. The miner and steel producer had fallen victim to decreasing iron ore prices and a steel glut
With about 1600 of its 23,000 population employed at the city’s steelworks, suddenly Whyalla’s future was unclear. While the Federal and State governments have both jumped in to provide financial support, this will only happen if a new buyer can be found. KordaMentha is the administrator charged with running the day-to-day operations at Whyalla and getting the business “lean and mean” in readiness for a sale, hopefully by the end of the year. As spokesperson Mike Smith explains, it is their job to make the business as “attractive as possible” for a new owner. Already it has “carved out” $150 million from supplier prices and made other efficiencies in the workplace. Workers were asked to take a 10 percent pay cut to increase the chances of a sale and the “company surviving”, but voted against this in August.
People are positive in hoping that we’ll get through this and survive, but it is tinged with certainly a lot of concern and an understanding that it is an extremely serious situation for us this time Whyalla Mayor Lyn Breuer
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Feature 25 “The business needs more efficient equipment – already we have received $50 million from the Federal Government and money from the State Government and now we are looking for new investors to make it a modern facility. “Our strategy has always been to sell it as one entity and that continues,” he explains. Mark says that the KordaMentha employees working in Whyalla have been heartened by the support of the local community. “We have been really gratified by the tremendous support and goodwill from employees, suppliers and members of the community, which has been wonderful given the daunting circumstances. Politicians from both sides of politics have also shown great support.” He adds that the plan is to have a sale completed by the end of the year, but if it needs to be delayed to “get a better result”, that is what they’ll do. In the meantime, Whyalla remains in a holding pattern. People are not spending their money in retail, there are many vacant shops in the city and the hospitality industry has been particularly hard hit.
Local Manager of Elders Real Estate, Graham Taylor, says similar to what other businesses are experiencing, the real estate market is “subdued”. In what is a buyers’ market, there are many more properties for sale than normal and prices are down. The rental market is also depressed with high vacancy rates and much lower rents than that of a few years ago. “Houses are selling, but they are not realising the prices they would normally,” Graham explains. “Most that are selling are at the lower end of the market and those in the mid to top end price range are much slower to move. “I think people are reluctant to commit before they get some confidence and certainty.”
Mayor Breuer agrees and says no-one is giving up on her watch. “People are positive in hoping that we’ll get through this and survive, but it is tinged with certainly a lot of concern and an understanding that it is an extremely serious situation for us this time. “The really important issue as a council and a community is to make sure we have in place the supports and services and infrastructure we need for the changes that are going to happen. Because whatever happens with Arrium, we will have changes in our community. “We just have to make sure we can survive this.”
Graham, who has lived most of his life in the city, says while a “level of nervousness” pervades, many in the community have been through it before and are “confident there will be a turnaround”. “The people of Whyalla have enormous personal resilience. They have seen it before and have faith that things are going to work out. They haven’t got their heads in the sand but they do have a belief.”
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flowing
26 Community
OPTIMISM AT THE CREEK When the Port Augusta coal-fired power stations closed in May this year the remote township of Leigh Creek, where the coal was mined, was hard hit… but there’s hope a new energy project may provide a lifeline to the ailing community. By Lindy McNamara
The towns of Copley and Leigh Creek are surrounded by outstanding scenery Image: Geoff Borg
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ven for those ‘glass half full’ kind of people, there’s no getting away from it - it’s been a tough year for the small outback communities of Leigh Creek and Copley. When Alinta Energy announced it was shutting down its coal-fired power stations at Port Augusta, it was also bad news for the small service towns which supported the coal mine at Leigh Creek. Since mining finished late last year the number of residents in the town has gradually declined. For those who have stayed the future has remained uncertain, with the State Government committed to taking over management of services as early as next year. However, there is a wave of optimism filling the air as the Leigh Creek Energy Project (LCEP) undertakes preliminary studies for a major development. The LCEP will provide energy in the form of gas (through a pipeline connection between Leigh
Creek and the East Coast), a power station and eventually the production of ammonium nitrate products such as fertiliser and industrial explosives. The LCEP is 100 percent owned by ASX listed Leigh Creek Energy Limited (LCK). The company’s petroleum exploration licence overlies the existing coalfield at Leigh Creek and the project will use the In Situ Gasification (ISG) process to produce synthesis gas (syngas). Work is gathering momentum and the company has recently undertaken an exploration drilling program to validate existing information and provide supporting information for the technical feasibility of the proposed ISG Demonstration Plant. Leigh Creek Energy CEO Phil Staveley says these results will be documented in environmental assessment reports central to the approval process, which includes “extensive consultation with relevant
stakeholders and the local community”. At the same time, the company is forging ahead to find additional investors and partners for the project. “LCK raised about $11 million through a share placement in May to fund this program and for general working capital. We are continuing to pursue additional strategic funding options, including gas and power sales, while progressing negotiations with additional strategic partners,” he says. Phil explains that Leigh Creek offers many advantages to the project – including the established town and infrastructure, power, water, an airport and leisure facilities. The small communities at Leigh Creek and nearby town of Copley also see the benefits the project will bring to them – namely jobs, business activity and an economic boost to the region.
Community 27 If all goes to plan, it is hoped the construction phase for the LCEP will begin in 2017 and with that will come much-needed jobs for the local community. “Significant employment opportunities for the LCEP will be available during the 1218 month construction program for the commercial facilities LCK will need, including the power station and the connecting gas pipeline – and then for the 30-plus year duration of the mine once operations commence in 2019,” Phil explains. “The numbers are expected to be in the high hundreds during construction and the low hundreds for operations.” Phil adds the company is committed to ensuring, where possible, these jobs go to locals. They will also make every attempt to include the traditional owners, the Adnyamathanha, in the development and operations of the project. “We have commenced discussions with the Adnyamathanha Traditional Lands Association on a variety of issues and we hope that one of the outcomes of these discussions will be targeted pathways for Adnyamathanha people to work at the LCEP.”
The numbers are expected to be in the high hundreds during construction and the low hundreds for operations
Mick Secomb, Copley hotel publican Image: Michelle Waters
The Copley Caravan Park enjoy the additional guests provided by the Leigh Creek Energy project Image: Michelle Waters
Future unknown In addition, Leigh Creek Energy has a strong preference to use the services of businesses and contractors from the towns, including the broader Upper Spencer Gulf regions of Port Pirie, Port Augusta and Whyalla. “We have been very impressed by their flexibility, responsiveness and especially experience in areas where we will need specialist support,” Phil says. Like all resources developments, government approvals take time, however Phil is confident the company’s project will “eventually bring people and activity back” to the Leigh Creek community. “Working with the Outback Communities Authority and the community we hope to support many initiatives over time that will secure the long term future and vibrancy of the town.”
Publican at the Leigh Creek Hotel at Copley Mick Secomb describes the mood among townsfolk since Alinta Energy’s coal mine closed late last year as “unknown”. “The town is in limbo and we’re all unsure what it will mean when the government takes over,” he explains. “Hopefully in the next six to 12 months we will know more. We’re hoping some of these projects like Leigh Creek Energy will go ahead and it will offer a bit more stability and encouragement for the locals.” While tourism has been touted as the industry to save the area, Mick says the town “still needs jobs” and “this project is a good one”. He, like other business owners at Copley, 6km north of Leigh Creek, have been grateful for the support LCK has shown the community so far.
When the drilling team was in town recently, he was more than happy to be able to supply their evening meal. Several other businesses also benefit when the team is out, including David and Shirley Mills from the Copley Caravan Park which supplied accommodation and day meals. Leigh Creek Energy CEO Phil Staveley says the support from local businesses has been warmly welcomed by the company. “These businesses have a great track record of meeting the needs of companies working in remote locations. These are often in the early hours of the morning and on weekends – and they have done all this with professionalism and great humour at all times,” he says.
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28 Feature
Electric SHOCK
So you think power prices are already high? Unless you’re living off the grid you will have noticed that prices in SA have escalated to a rate that’s leaving other states (and the CPI) well behind. By Jason Kuchel
Victoria makes us extremely vulnerable if the interconnector that brings electricity into SA fails and the wind’s not blowing.
South Australians have responded to inflating electricity prices by installing low energy lighting, replacing electric hot water services with solar or installing solar panels on the roof. None of this takes away from the fact that in this State we are paying significantly more than most people in the world per kilowatt of electricity used. Industry – from supermarkets to manufacturers, restaurants to steel mills, offices to mines – is also paying more for electricity. A lot more. Some businesses, like supermarkets, compete locally, resulting in higher prices for the goods we purchase. Other businesses, such as manufacturers, compete in a global market and high electricity prices contribute to making these companies less competitive. These are the businesses that collectively provide tens of thousands of jobs across South Australia, stimulate additional business growth, and contribute thousands or millions in State and Federal taxes. This group also includes future businesses, those deciding on a location to establish themselves that will provide optimal business outcomes. Power prices make up a substantial portion of business costs in many industries and in South Australia, businesses need to compare rates on long term electricity contracts that are double, triple or quadruple those payable outside of this State. Higher electricity prices are a triple whammy for all of us. Higher electricity bills, higher consumer costs and less jobs. South Australia’s extreme electricity prices are already seen by many as being in crisis, however more recently, our power system is facing another hurdle – reliability and security. Whilst our Australian Energy Market Operator (AEMO) does a pretty good job ensuring we receive a continuous supply of power, our increased reliance on coal-fired power from ISSUE 04 RESOURCING SA Spring 2016
Other businesses compete in a global market and high electricity prices contribute to making these companies less competitive. These are the businesses that collectively provide tens of thousands of jobs across SA
This is where we risk a debate about the merits of renewable energy. It’s not wind power or solar power per se that is the problem, but rather energy market rules that were established many years ago that did not anticipate the high levels of intermittent power generation that we have today. At that time, inertia and frequency control (referred to as Frequency Control and Ancillary Services (FCAS)), which is needed to keep the whole system stable, came for free from generators that were running all the time, every day. Today, there is no requirement for generators to meet any minimum FCAS standards and the responsibility for this is left with the market operator and infrastructure providers, resulting in higher transmission costs and distortions in the market. Changing the energy market rules to make the generators responsible for minimum FCAS requirements would largely fix the increasing problems of reliability and security, it would encourage investment in energy storage and renewable power generation that collectively could provide stable, rather than intermittent power supply. A report released by AEMO on August 11, ‘Electricity Statement of Opportunities’ identifies the need for an FCAS market, rather than simply a supply market, which reinforces the need to change market rules to better reflect the range of generation that we have today and expect in the future. Most importantly, changing the energy market rules to reflect FCAS requirements is technology ambivalent, but will deliver improved reliability, security and in turn, lower power prices. An even more tangible change is the proposal for an interconnector between SA and NSW. At the moment our so-called electricity grid is
SA’s recent electricity evolution Electricity Section 29 really a long string of electricity transmission network. A NSW interconnector would make a true grid and reduce power fluctuations between states; help some states meet their decarbonisation targets (without necessarily having to build the renewable generation in their own backyards); help wind supply more of the broader market in whichever jurisdiction it happens to be blowing, and more. The bottom line is, South Australia is facing a real crisis, other states are following suit and the blame game is not productive. We are already losing businesses and jobs and we must stem the tide. Consumers did not create the electricity market and neither businesses trying to stay viable nor people struggling to pay their bills are able to fix it. A change to market rules and a NSW interconnector will help in the longer term. But we also need a short term solution – and we need it now.
What is • frequency • inertia • synchronous generators?
info graphic
SA’s electricity prices are expensive and volatile
Australia’s electricity grid and everything connected to it – power plants, lines, home appliances – are designed to work at a specific frequency (50 Hz). As the grid adapts continually to changes in power generation and use, frequency fluctuates. Conventional generators like coal and gas are synchronous generators and have built in inertia: they operate with large, heavy spinning turbines that are synchronised to the frequency of the grid – able to maintain frequency in a safe range and supporting the stability of the power system with continuous baseload power. They cannot be easily or economically turned on and off, but when operating, run efficiently and economically. Renewables such as wind and solar are at the mercy of the elements, they cannot be synchronised to the grid and are very limited in their ability to respond to any changes in frequency or demand. They are intermittent rather than ‘baseload’ energy providers.
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30 Feature
SURVIVORS Emerging from an era that could be billed as the resources sector’s version of ‘Survivor’, it appears the low tide of recent years is now beginning to turn for junior companies. By Lindy McNamara
Australians have all heard about the “mining boom”. Immediately prior to the Global Financial Crisis in 2008, it seemed any company that wanted to explore for minerals, or develop a new concept in the resources sector, had investors knocking at their door. However, when the GFC hit, things started to slow and despite a resurgence in 2010, junior companies have been in the doldrums since 2011, with projects stalling or abandoned as investors became cautious and unwilling to back an unknown quantity. Just like the television series, it became a case of survival of the fittest. Some didn’t make it, while others stayed afloat by divesting into other industries. Spencer Resources Limited, for example, executed a reverse takeover and became cloud technology company Bulletproof Group, while King Solomon Mines Limited moved into the recruitment business, promoting the Xref candidate selection process. However, those who weathered the storm may now be reaping the rewards in what SACOME Chief Executive Jason Kuchel describes as a “definite lift” in attracting capital investment. “People are starting to come back. If you’re interested in this type of stock and the very large windfalls that can come with a junior explorer, then there’s a point in time when you have to get back into the market,” he says. And that time appears to be now according to mining entrepreneur and geologist David Clarke, who over the past 35 years has taken a leading role with a series of junior Australian resource companies which have successfully discovered, developed and produced Australian mineral and petroleum reserves. “The current recovery has been lead by a strong Australian gold price and genuinely ISSUE 04 RESOURCING SA Spring 2016
The resource and financial markets are cyclical and provided people keep working up value-creative ideas, opportunities will return
good production and financial performances from several junior gold miners,’ he says. “Some good work in graphite and lithium exploration have also helped,” he says. “These good performances have directed investor attention back to the junior resources sector and venture capital is again becoming available for well structured concepts.” David adds that many juniors spent their “time in the wilderness” working on valuecreating concepts and these companies could be expected to deliver “good returns” for the venture capitalists that support them. However, he cautions those that had no luck with project generation will need to do deals “fairly quickly” to have concepts strong enough to take advantage of the return of venture capital. Having spent decades involved with the resources industry, David has witnessed the mining cycle at its best – and worst. His advice to juniors is to “keep working hard, keep doing the right things”. “The resource and financial markets are cyclical and provided people keep working up value-creative ideas, opportunities will return.”
Likewise, Bob Kennedy, who sits on the boards of several mining companies, says the opportunities are starting to flow for juniors and medium size companies, in part due to development of technology and smart devices. “The results from gold companies in the last year have significantly improved with changed management, better workforce practices resulting in savings and, of course, the rise in the price of gold,” he says. “There is also excitement in the lithium discoveries, which are moving to production, and the potential from lithium explorers due to the Elon Musk electric vehicle which is powered by a lithium-ion (Li-ion) battery.”
Feature 31
Bob says this has also lifted interest in cobalt and nickel, which are significant components of the batteries. “Of course the ubiquitous smart phone and all the hand-held micro devices are powered by Li-on batteries and it appears that we have only seen the beginning of smart devices that will permeate our existence. China is significantly contributing to the change by lowering the price of manufacture mirroring Moore’s Law.” Bob adds that the exploration and mining industry needs juniors to “pursue ideas that may not have yet gained recognition”. “Juniors have lower overheads and can provide significant reward incentives through the
There is also excitement in the lithium discoveries, which are moving to production, and the potential from lithium explorers due to the Elon Musk electric vehicle which is powered by a lithiumion (Li-ion) battery
granting of share options which, if properly managed, can provide motivation to go the extra yard to make a discovery. Significant rewards are available to the shareholders of juniors that make discoveries, providing the company wisely chooses a development partner who will provide them with immediate and long term rewards when they aren’t able to develop the project themselves.” While it may be too early to pop the champagne corks and wave another bust cycle goodbye, it appears that for juniors who have toughed out the last few years, life is starting to get a little easier.
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32 Feature
THE
BIGGER PICTURE
Economies prosper through diversified industries and mining - including associated processing and manufacturing - tops the list for community outcomes. Lindy McNamara investigates why the South Australian Government is so supportive of the industry. From pledging $50 million to assist the eventual new owner of the Whyalla steelworks to providing financial support for the Nystrar transformation at Port Pirie, Premier Jay Weatherill’s team have been pulling out the stops to maintain a vibrant resources processing and operating industry in South Australia. In the State Budget handed down in July, Treasurer Tom Koutsantonis stressed the important contribution the resources sector makes to the State. In 2014/15 the minerals and petroleum sector had a gross value of product of around $6 billion. Its recognised as having the greatest growth potential of all South Australian industries. According to President of the South Australian Chamber of Mines and Energy Terry Burgess, the government understands the cyclical nature of the industry and is willing to support companies in times of need, because the rewards in terms of employment, business opportunities, royalty payments and taxes outweigh the costs. Terry says while the regional benefits of resources activities are huge - including infrastructure, jobs and social benefits - mines have finite lives and a continual pipeline of projects is needed to ensure communities stay strong. Forward planning approaches by the government, including the current magnetite and copper strategies, aim to address challenges to the progression of these rich resources in SA and attract investment, encouraging a continuum of projects. ISSUE 04 RESOURCING SA Spring 2016
As part of a strategic review last year, OZ Minerals identified the benefits of moving its head office from Melbourne to Adelaide, as well as advancing “hydromet” technology that was in pilot study stage.
The government understands the cyclical nature of the industry and is willing to support companies in times of need - rewards in terms of employment, business opportunities, royalty payments & taxes outweigh the costs Hydromet is used in processing copper concentrate and has the potential to significantly reduce concentrate transport costs and produce a copper quality that’s sought after in smelting markets. Seeing the broader benefits this could provide copper production in the State, the SA Government provided a $10 million grant to
co-develop the technology with the assistance of the University of Adelaide and Orway Mineral Consultants. Trials have been successful and OZ Minerals has now signed a non-binding MOU with the administrators of Arrium to explore possible site, infrastructure and port options to establish a concentrate treatment plant at Whyalla. OZ Minerals’ Managing Director Andrew Cole says the company’s decision to fully embrace SA by moving its headquarters and developing the hydromet technology with the help of the State Government has been “probably one of the best enabling things we could have done”. “Both sides of politics are very supportive of the resources sector generally and are proactive in this space – they actually want to help to generate activity in the State, which is incredibly refreshing.” Hillgrove Resources has been another to benefit from the government’s strategic approach. It recently received a pipeline grant to enable security of water to its Kanmantoo copper mine. The company also moved its head office from Sydney to Adelaide, receiving a $4 million government loan. Hillgrove CEO & Managing Director Steve McClare says the South Australian Government understands the importance of building a strong resource sector. “The Government has a clear strategy for growth and is extremely proactive and supportive.”
Community 33
POWER to the people
Community engagement is moving further into the digital age thanks to a local SA innovation. By Stephen Batten We all like to know what’s going on, we love to read, listen and watch across multiple platforms.
receive a variety of communications, whether it is feedback, questions or requests from their stakeholders, via multiple sources.
A company that is looking to trial the C3 software for their gas project in the State’s north is Leigh Creek Energy (LCK).
Increasingly, the internet is where we form opinions, absorb facts and share them across social media, email or in person to our friends, family and colleagues.
“As a result of being able to share in realtime, stakeholders have an expectation that they should be responded to just as quickly, therefore, a timely response can mean the difference between a satisfied or disgruntled stakeholder. More often than not, responsibility for these responses rests on a small internal team which can be costly and time consuming.”
Phil Staveley, Chief Executive Officer for LCK said that the software will work well as a method for the community to give their feedback to the company on a day-to-day, week-to-week basis.
Adelaide-based SRA Information Technology supplies services to a range of industries, with the minerals and energy sector one of its key markets. Its innovative team has created a solution that brings community engagement up to speed with the modern world. Purpose built to facilitate two-way communication between organisations and the communities in which they operate, its latest Software as a Service (SaaS) offering, called C3, helps to manage the community communications process effectively and efficiently. SRA Solution Advocate, Stuart van de Water, says in today’s connected society, companies
It’s easy to see the importance of having excellent community relations, but sometimes hard to engage everyone and take in all their messages, often more is said behind closed doors than open. The team at SRA sought to streamline this process by collecting stakeholder communication and allowing responses to be completed in a simple, consistent and repeatable manner. People can then track their query online.
“If there is a concern out there, we want to know about it, whatever it might be. We understand our project affects a lot of different people and to have a single point where the community can connect with us will enable the effective management of this feedback for our team,” he said. Although personalised contact will always be prioritised when liaising with community stakeholders, the need for people to interact with project proponents or operators using methods and times that suit them is important – and times are changing.
Stuart Van De Water, SRA Information Technology and Tony Lawey, Leigh Creek Energy meet to discuss C3 image: Andy Stevens ISSUE 04 RESOURCING SA Spring 2016
34 Community
OF A NEW AGE The heartbeat of any community is its people and the pulse has been reinvigorated in the South Australian town of Port Pirie through the nearly complete transformation of the Nyrstar smelter. By Stephen Batten Standing at a massive 205 metres tall, for years the large smelter stack has stood out on the Port Pirie landscape as an icon of the town. Now the reluctant landmark finds itself in the company of one of the biggest cranes in the Southern hemisphere, building what will be the new clean, multi-use, poly-metallic processing and recovery smelter. Collaboration between industry and State and Federal governments has been instrumental for the $563 million project. Without this support, the redevelopment may have been a pipe dream and the future of Pirie uncertain at best. The locals understand the importance of the smelter and can clearly see the benefits of the transformation. One of these is Saeid Safavi. 16 years ago, Saeid left the civil troubles of Iran to start a new life in Port Pirie. He was held in detention at Woomera for some time before being granted citizenship. Today he owns and manages, Safavi, a local café that once housed the School of Mines; training and educating workers in the old smelter. “I am noticing lots of new people coming into the town, lots of new activity, and for me it is very exciting.” Saeid says.
I am noticing lots of new people coming into the town, lots of new activity, and for me it is very exciting Saeid says the work being done with the Targeted Lead Abatement Program (TLAP) Committee is reassurance to his family and others in the town. “Our son has never had a problem with lead levels or anything since we came here,” he says. “We get him monitored every few months, but there has never been a problem. He’s a healthy, happy young boy.” The transformation will deliver a step change reduction and a positive impact on the operational and environmental performance of the smelter with the most positive impact being felt by the community of Port Pirie. The benefits are staggering with lead emissions anticipated to be reduced by 50% and sulphur dioxide emissions reducing by 90% with the
Local families are feeling a new sense of rejuvenation in the town. (Caputo family pictured, owner of the Pt Pirie fresh fish store.)
ISSUE 04 RESOURCING SA Spring 2016
upgrade, ensuring Nyrstar’s social license to operate remains valued by the community. Julie Mitchell, Chair of the TLAP Committee says their role is overseeing the programs in the community to help change and improve blood lead levels of children in Port Pirie. “I’ve had the pleasure of getting to know the community quite well and so far what I’ve seen is amazing. I would encourage the community to continue to own their futures with the changes around the new smelter.” Bertus de Villiers, VP Metals Refining at Nyrstar expects the smelter commissioning and rampup activities to continue through the rest of 2016 and into 2017. “To date, there has been over 1.5 million man hours of work put into the new operation with no loss time. Once operational the new smelter will be able to handle 785,000 dry metric tonnes of feed material per year.” The heartbeat of the Southern Flinders Ranges can be felt clearly in the community of Port Pirie and its tall stack can hold its head high - as a symbol of changing times and renewed positivity. Speak to a local and the message is clear, confidence is back and a new era is beginning.
The TheSouth SouthAustralian Australianbranches branchesofofAIG, AIG,ASEG, ASEG,AusIMM, AusIMM,GSA GSAand andSACOME, SACOME, with with principal principalsupporters supportersDepartment Departmentof ofState StateDevelopment Developmentand andPaydirt, Paydirt, invite invite you you to to the: the: AUSTRALIA’SBEST BESTVALUE VALUEMINING MININGINDUSTRY INDUSTRYCONFERENCE CONFERENCE AUSTRALIA’S
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EXPLORATION & MINING CONFERENCE
13th South South Australian Australian 13th Exploration and and Mining Conference Exploration Friday22December December2016, 2016,Adelaide AdelaideConvention ConventionCentre Centre Friday
20 PRESENTATIONS 20 PRESENTATIONS
• New companies • Exploration projects • New companies • Exploration projects • Feasibility studies • Mining operations • Feasibility studies • Mining operations
NETWORKING NETWORKING
•
COLLABORATIVE EVENT COLLABORATIVE EVENT
• GSSA DISCOVERY DAY: Discover new data, new • GSSA DISCOVERY DAY: Discover new data, new technology, new insights technology, new insights Thursday 1 December, ACC Thursday 1 December, ACC More Information: More Information: www.minerals.statewidedevelopment.sa.gov.au/ www.minerals.statewidedevelopment.sa.gov.au/ mineral_exploration mineral_exploration
WORKSHOPS WORKSHOPS
• AIG Roger Taylor – 2-day • AIG Roger Taylor – 2-day Ore Textures/Breccias Workshop, Ore Textures/Breccias Workshop, 30 Nov–1 Dec 30 Nov–1 Dec • AIG – 1-day • AIG – 1-dayHills Wine Tour, 3 Dec Adelaide Adelaide Hills Wine Tour, 3 Dec
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• Registration 7.30 to 8.30 am • Registration 7.30 to 8.30 am • Conference 8.30 am to 5.00 pm • Conference 8.30 am to 5.00 pm • Drinks to follow 5.00 to 7.00 pm • Drinks to follow 5.00 to 7.00 pm REGISTRATION – $185 REGISTRATION – $185
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• Students – $15 • Students – $15 • Includes coffee breaks, lunch •and closing drinks and closing drinks ONLINE REGISTRATION ONLINE REGISTRATION AVAILABLE NOW! AVAILABLE NOW!
36 STEM Feature
Bringing real life to school
SA companies are partnering with school groups in an initiative that’s providing real world projects for students, and engaging them in the value of STEM. By Sam Pearse In response to declining engagement in science, technology, engineering and maths (STEM) subjects, schools are looking at approaching these areas as an integration of disciplines, rather than siloed subjects.
This approach is seeing real impact on student learning, particularly how they understand STEM subjects working together in the ‘real world’ and more importantly, how they can see themselves as part of it.
One way they’re doing this is by providing projects that integrate STEM subject knowledge, while developing the important application skills of problem solving, critical and creative thinking, collaboration and communication. Real world projects are ideal for the task, providing authenticity to maximise engagement.
Earlier this year, 50 science, technology and math teachers from 20 schools began a professional development course with the Australian Science and Maths School, designing a task with an industry partner around a real challenge identified by industry.
ISSUE 04 RESOURCING SA Spring 2016
STEM Feature 37
Student skincare Jurlique manufactures and sells natural skincare products, growing many of its own organic ingredients at the company’s Adelaide Hills farm.
The students used design software to create packaging concepts.
Jurlique presented a challenge to two classes of Year 9 students at Heathfield High, asking students to design a new product that would target the youth market. Students worked in teams, with each member having a role that aligned with the company’s functions including product formulation, marketing, costing and packaging and receiving further information from Jurlique to assist them in their designs. The company’s involvement included an initial meeting with STEM teachers to plan the task, the Jurlique engineer presented the product development brief to students, staff at Jurlique participated in a follow up Q & A session with students, with the final product pitched by students, ‘Shark Tank’ style to a Jurlique panel. The time committed by Jurlique amounted to the same as having two students on a week’s work experience – but reached 30 students and provided an excellent deep learning experience. Students were assessed on their maths (consumer survey, costings), science (product formulation) and design and technology (packaging), as well as collaboration, teamwork and final presentation.
A video on this collaboration can be viewed at vimeo.com/152127859 To find out more about this initiative and how your business or school could get involved contact Sam Pearse, Business Partnership Manager on 0457 755 394 or sam.pearse@sa.gov.au
Teachers worked in teams and identified the maths, science and technology curriculum in the problem and how to design tasks in a way that students working in teams would need to think, research, find solutions, test these and present them back to industry. Schools then partnered with a range of industries, in arrangements brokered through the Department for Education and Child Development’s business partnership managers, who work closely with teachers and industry. This real world learning was successfully trialled late last year when Heathfield High School was introduced to Jurlique and assisted that company with a project. Several South Australian businesses have come on board – including Zonge Engineering, Automotive Safety Engineers, Beerenberg and Haighs – valuing the role they can play in inspiring the next generation of innovators.
Earlier this year, 50 science, technology and maths teachers began a Professional Development course, designing a task with an industry partner around a real challenge South Australia’s minerals and oil & gas industries are rich in resources, including real world STEM opportunities for students. As the industry partnerships program gathers traction into 2017, South Australian students could soon be helping to solve real, local resources challenges – with benefits for all participants.
ISSUE 04 RESOURCING SA Spring 2016
GEOLOGICAL SURVEY OF South Australia
DISCOVERY DAY
PACE
PLAN for ACCELERATING EXPLORATION
ADELAIDE CONVENTION CENTRE Thursday l 1 December l 2016 Discover
New Data New Technology New Insights
www.minerals.statedevelopment.sa.gov.au/gssa_dd
05/08/2016-204815
STEM feature 39
BREAKING OUT
The University of Adelaide is running a new summer school for minerals exploration enthusiasts. Its elite – but free – and students won’t be coming into the city or working online. The National Exploration Undercover School (NExUS) aims to provide world-class training in mineral exploration to a small group of graduates and early career geoscientists, with the first course commencing this year. Funded by the Minerals Council of Australia and run by the University of Adelaide, the short course will host an exclusive group of students from all over Australia. There will be no charge, no assessment, but completing the course will be prestigious. With numbers limited to just 30 places, entry is very competitive. Students will be coming from any university in Australia, or they may be early career staff working in geological surveys. For all participants, course costs are covered in their entirety – and that includes airfares, accommodation and meals. Starting at the end of November, the threeweek intense program will focus on four key
themes identified as the major knowledge areas needed to improve the success rate of world-class mineral system discoveries, particularly under extensive and deep cover. The first week will be held at the Drill Core Library at the redeveloped Tonsley site in Adelaide. With a mixture of classroom, laboratory and drill core activities, students will be introduced to state-of-the-art facilities – including the high tech, hands on visualisation suite. Students will spend Friday at the highly acclaimed SA Exploration and Mining Conference at the Adelaide Convention Centre. The importance of relationship building will be covered, with opportunities to interact socially with industry, government and classmates provided through the conference and social events held during the week – which fortunately coincides with the Test Match at the Adelaide Oval.
The second week will be held at Strathalbyn in the Adelaide Hills, focusing on practical mineral exploration with the Deep Exploration Technologies CRC at Brukunga, and Hillgrove Resources at their Kanmantoo copper mine and nearby exploration targets. Social events and talks in the evenings by industry people will cover ‘real world’ topics such as heritage clearances, cultural and gender diversity in the workplace, safety and economics. The final week will be based on the Yorke Peninsula with Rex Minerals at the Hillside deposit and other undercover targets. Wrapping up just in time for Christmas, the university will also hold a six-month reunion to reflect on outcomes and build an alumni. For more information go to www.nexus.org.au
ISSUE 04 RESOURCING SA Spring 2016
40 Workforce
Uncomfortable
Conversations Is aiming for zero harm workplaces realistic? Absolutely, asserts Trevor Strother, but only when a true culture of safety permeates the workplace… and that can put many out of their comfort zones. By Megan Andrews
Workplace safety has come a long way, however, incidents still occur. Trevor Strother, founder and director of Performance Leadership Consulting, thinks many organisations are lulled into a false sense of security with audits that note improvements to Total Recordable Incident rate and confirm compliance with legal safety requirements. “We often view safety independently of other organisational functions,” he says. Trevor’s 30 years’ experience developing and implementing organisational change strategies (the past 15 years working globally on safety culture) has taught him that “safety should be mainstream, no different from any other function”. The mining and petroleum industries are well known for their commitment to safety and making great strides in safety improvement. They are often leaders in taking up safety initiatives, such as encouraging workers to stop work and speak up if they feel something is unsafe. But in practice, that can be difficult. Lack of confidence to stop the job, fear of slowing down work (with potential impacts on bonuses) or unfavourable responses in the past when a supervisor has been alerted to a potential hazard, can all affect a worker’s ISSUE 04 RESOURCING SA Spring 2016
We often view safety independently of other organisational functions comfort levels when it comes to safety. “Safety needs more than compliance,” Trevor explains. “Good relationships, teamwork and leadership that develops people and provides clear direction is essential.”
These are some of the skills needed to instil a safety culture and developing them also improves other aspects of a worker’s performance – so there’s multiple earnings from the one investment. So what of the zero harm concept, the incident free workplace? Will it ever be a reality? There’s some debate around the concept and Trevor estimates 20 percent of workers believe it can happen, while 40 percent don’t know if it can but are willing to do what they can to achieve it. “Around 20 percent say it never will happen and are not prepared to give it a go – they’re the ones who shouldn’t be in your business,” Trevor says.
Getting in the way Trevor says there are two major obstacles when it comes to safety and both relate to compliance and culture. First, is the extent to which a workplace culture supports safety compliance. A concept that’s become popular in recent years is a stop work authority, empowering workers with the responsibility to stop work when a perceived
unsafe condition or behaviour could result in a dangerous event. Trevor questions the degree to which many workplace cultures support the concept. Secondly, is the focus on compliance itself. This can create a perception that all an organisation needs to do to achieve a ‘safe’ workplace is comply with the regulator’s requirements.
Workforce 41
Online leaders
An online training program is equipping supervisors and middle management with the skills to become effective leaders of the future. By Megan Andrews Budgets in the resources industry have been battered in recent years and when savings need to be found, non-essential training is amongst the first to go. For South Australia’s Career Employment Group (CEG), training for the resources industry is a key area. After developing a custom management training program for OZ Minerals last year, CEG saw an opportunity for an economical, onlinebased leadership course targeted at the sector. It’s well known that people promoted to supervisory or middle management roles often have managerial responsibilities they are not qualified for – they have the technical know-how, but managing people can be a new challenge. It’s not unusual to follow a steep learning curve, picking up bits here and there and sometimes missing the mark.
CEG believes the key to successful online training is achieving genuine engagement and assessment that demands mastery of the concepts. They had just the person for the job… Tony Arrowsmith, an industry veteran who spent years working in heavy machinery on mine sites and dealerships before progressing to training. Tony, with technical guru Michael Coghlan, set about developing a comprehensive Certificate Four in Leadership and Management, covering all the skills needed of an effective manager. “The result is a little out of the box,” Tony explains. There’s a fictional company, which students join as ‘employees’. Participants are inducted, introduced to the business, then progress through activities and divisions as a management intern, finishing up with a major project that moves out of the online domain
and requires them to present in person, to a real panel. An online forum facilitates questions and course discussion and a trainer meets with each participant in person or by phone call when they commence. Text is kept to the minimum, pages load quickly and effective videos and imagery all help to maximise engagement. Passing the course is not possible without a thorough grasp of the concepts. Tony thinks the program is unique in the online training realm, and equally applicable to any industry. “Importantly, the online method keeps the cost down, for individuals or discounted group bookings.”
Right man for the job When the Mitsubishi plant at Tonsley closed almost a decade ago, Tony Arrowsmith was tasked to prepare workers in mobile plant service and repair for the potential expansion at Olympic Dam. “I was asked to develop an accelerated program, it was a collaboration involving Cavpower, Tafe SA , CEG and BHP Billiton that would transition them.” A “bit of an innovator”, Tony is a self-confessed non-academic who “couldn’t get past Year 10”. He moved on to gain a qualification as a mobile plant mechanic, a degree in Education (majoring in Adult Learning), a masters in Research and Innovation, and a doctorate in Education. With a preference for practical, Tony ensured the training centre was set up like a functioning workshop. The program successfully put through three groups before becoming obsolete, but it did lead Tony to his next roles with CEG and BHP Billiton. For the past two years Tony has worked with CEG, currently in his chosen capacity of three days a week, enjoying the autonomy and flexibility to work on training projects for the resources sector. Tony Arrowsmith (right)
ISSUE 04 RESOURCING SA Spring 2016
42 On the move
on the move SACOME chief moves on
Cornel joins WPG
WPG Resources is pleased to announce that Cornel Parshotam has been appointed Chief Operating Officer.
After almost 10 years in the position, Jason Kuchel will step down as CEO of SACOME at the end of November. During his time with the Chamber, Jason has witnessed many changes within the resources sector and worked hard to enhance SACOME as the peak resources industry body. In the early years of his tenure, Jason was responsible for building up SACOME after a depressed period in the sector and significantly expanded the membership base by attracting many service companies to join. Jason also played an important part in supporting exploration in South Australia through direct advocacy for the Exploration Development Incentive and the South Australian Government PACE program. His push for greater opportunity and initiatives were a key part in influencing the set-up of the SA Nuclear Royal Commission initiative. Terry Burgess, President of SACOME described Jason an “active promoter” of the mining, oil & gas and resources service sectors in South Australia.
Cornel Parshotam
Jason Kuchel
“The Dirt TV program is a prime example of an excellent initiative under Jason’s leadership.” Jason will take up the position of CEO for the Wakefield Regional Council in December.
Watsons merges with Alderman which includes Partners, Greg English, a qualified mining engineer and experienced lawyer and Ashley Watson, who advises resources and energy companies across Australia.
Left to right: Peter Watson, Sarah Clarke, Lucy Gauvin and Ashley Watson
Adelaide boutique firm Watsons Lawyers has merged with national firm Piper Alderman, with Sarah Clarke and Lucy Gauvin welcomed to the partnership and Peter Watson joining as a senior consultant. Sarah, Lucy and Peter advise clients across Australia in the energy and resources sectors, with key areas including mergers and acquisitions, farm-in and joint venture agreements, share and asset acquisitions and disposals, capital raisings, exploration and operational contracting and project financing delivery. The new appointments add depth to Piper Alderman’s Adelaide Energy and Resources team,
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Piper Alderman managing partner Tony Britten-Jones said: “These appointments will allow us to significantly enhance our corporate and commercial offering, not only in Adelaide but also nationally. From their grassroots in 2003 to now, Watsons has amassed an impressive client list and we are delighted to welcome such quality to our firm.” Watsons’ former Managing Partner, Ms Clarke said “Since joining the firm we have been impressed by the high level of expertise both within the Adelaide office and nationally and we are pleased that our clients now enjoy all the benefits of a boutique firm but with the added benefit of access to additional resources and a broader range of legal services should they be needed.” Piper Alderman will host a workshop on ASIC’s policy on forward looking statements and implications for energy and resources companies on 20 October 2016 - more information: events@piperalderman.com.au.
Cornel is a mining professional with more than 36 years’ leadership and operational experience in the minerals industry.
He joins WPG from his most recent position as Head of Operations at BHP Billiton’s Olympic Dam mine. Cornel has also worked for Emperor Gold Mines in Fiji and at Metallon Gold in Zimbabwe. His appointment rounds off WPG Resource’s key executive team of CEO Martin Jacobsen, CFO Wayne Rossiter, Chief Geologist Gary Jones and Company Secretary Larissa Brown.
New CEO for Iluka Tom O’Leary has been appointed the new Chief Executive Officer and Managing Director of Iluka Resources. Tom stepped into his new role in early September, taking over from David Robb, who has been Managing Director since for the past 10 years. A seasoned business executive, Tom has run complex businesses, most recently as Managing Director of Wesfarmers Chemicals, Energy & Fertilisers Division.
Rex change over With the imminent departure of Environment and Stakeholder Engagement Supervisor, Erica Dearlove on maternity leave, Rex Minerals has engaged Ross Sawers, an experienced consultant in stakeholder engagement, regional development, agriculture and training. Ross’s primary role will be to ensure continuity of relationships with the local and regional Hillside Project Community. Erica will continue at Rex Minerals, working through a handover until mid-September.
News 43 Beach set to grow
it well positioned for growth. He added the acquisitions being looked at “ would be producing assets that are larger than what Beach has looked at historically”. Beach has outlined capital expenditure of between $180 million and $200 million this financial year, two-thirds of which will be directed to its highly profitable Western Flank oil and gas portfolio in the Cooper Basin, including the drilling of up to 16 exploration wells. Meanwhile, the company has entered an agreement for the sale of its Queensland oil assets to Bridgeport (Cooper Basin) Pty Ltd.
Beach Energy reported a statutory net loss of over half a billion dollars in its full year results in August, reflecting weak oil prices and write downs of assets. However a positive cash flow of $28 million was recorded for the year and the company is expecting record production in the coming year. The company ended the previous quarter with cash reserves of $199 million and access to a further $350 million of undrawn debt facilities. Following the completion of its merger with
Drillsearch in March, Beach produced 2.7 million barrels of oil equivalent (MMboe) in the June quarter, up 13 percent on the previous quarter – mainly due to the contribution from Drillsearch. Sales volumes rose 17 percent to more than 3.1 MMboe due to increased production and higher winter gas demand. Quarterly sales revenues totalled $166.6 million. New chief executive Matthew Kay said the company was “a proven low-cost operator with a strong financial position” which made
As part of a three-year growth strategy, Komatsu has announced it has acquired mining machinery manufacturer Joy Global for US$3.7 billion.
“Demand for mining equipment has declined dramatically from the peak, reflecting economic slowdown in emerging countries and low commodity prices,” Komatsu said.
The company said that despite manufacturing mining equipment since 1921, its portfolio did not include equipment for underground mining and this acquisition would take it into that space. The purchase also provides it with a new line of surface equipment.
“Over the long term, however, the mining equipment business is projected to grow, driven by population growth and rapid urbanisation around the world.
In June it announced it had acquired the network design and consulting services business of CBO Telecommunications. Its capabilities include expertise across Wi-Fi and Mesh technologies and the design, build and maintenance of enterprise grade networks used in mine sites. Martijn Blanken, Group Managing Director, Telstra Global Enterprise and Services, said that Telstra Mining Services was part of the company’s
“The transaction will provide modest cash consideration, manage ongoing liabilities and increase the efficiency of our Cooper Basin operations,” he added.
“In terms of mining techniques, economic rationale will call for use of larger equipment in surface mining as well as further development of underground mining.” Joy stated it would operate as a separate subsidiary of Komatsu, and retain its brand.
Technology innovation for mining Telstra has moved into the mining services area.
While transaction terms remain confidential, Matthew said divestment of the oil permits was “consistent with our strategy to optimise Beach’s Cooper Basin portfolio through sale of non-core assets”.
Leadership for safety officers
Komatsu goes underground
According to Komatsu, its growth strategy focuses on strengthening its core mining equipment business.
Subject to government approvals, the deal is expected to close by the end of the second quarter of 2017, and relates to permits within the greater Kenmore-Bodalla area.
strategy to create a “significant global mining technology product and services business”. “Telstra is committed to becoming a new driving force for mining in Australia by helping the industry transition to a digital future.” “Telstra Mining Services will be focused on helping our mining customers drive better business outcomes by significantly improving in-shift staff and asset productivity.”
Trevor Strother (Safety Culture Development)
Safety Culture Development has developed a two-day Safety Leadership for Safety Officers workshop to assist officers to focus on their ‘influencing skills’. Safety officers have a key role to play in creating this culture, as they interact every day with worksite supervisors and employees and directly influence worksite safety integration. For details go to www.safetyculturedevelopment.com.au
44 News World first drilling program a ‘game changer’ technologies in a “real-world drilling program” in order to speed their transition from the lab to commercial products. “Decreasing mineral exploration success and expenditure in Australia reflect the fact that relatively easy-to-find mineral deposits with a surface expression have largely been discovered. “New mineral exploration provinces must be found hidden beneath barren cover rocks, such as those covering hidden deposits in the Gawler Craton,” he said. “The world-first technologies developed by DET CRC that were trialled during the MSDP deliver real-time information during a drilling program, which in-turn enables real-time decision making.”
SACOME staff on a recent visit to Adelaide’s Core Library
The resurgence of successful, greenfields mineral exploration in Australia is a step closer thanks to trials of new technologies in the South Australian outback. The Mineral Systems Drilling Program (MSDP) completed recently in the northern Eyre Peninsula was a world-first collaboration between the Deep Exploration Technologies Cooperative Research Centre (DET CRC) and various mineral explorers, service providers,
government and research institutes. Over nine months, 14 holes and almost 8km of drilling, the MSDP tested DET CRC’s revolutionary new technologies and uncovered valuable geological information on the eastern Gawler Craton Olympic Copper-Gold Province – a district widely regarded as one of South Australia’s key emerging mineral provinces. Chief Executive Officer of DET CRC, Professor Richard Hillis, said the focus was to trial the
The technologies trialled included the Wireless Sub, Fluid Management System, AutoSonde with gamma sensor, AutoShuttle and Lab-at-Rig. Mineral Resources Minister Tom Koutsantonis said real time exploration was a breakthrough that would change the way the resources sector conducts exploration and mining forever. “Real time analysis allows people in the field to make decisions then and there. “People in boardrooms can be analysing this data, making decisions about where the next hole will be and how to invest those vital exploration dollars.”
Drilling program ‘gold’ Terramin Australia recently announced it had revised its Bird-in-Hand gold project resource estimate following the recent completion of a successful drilling campaign. The company said it had achieved in eight percent increase in contained gold ounces to 252,000 ounces of gold. The focus of the drilling program was to provide hydrological, geotechnical and metallurgical data about the Bird-in-Hand deposit. A number of drill holes have also allowed an upgrade of the resource to the indicated classification between the levels 200mRL and 325mRL. The grade of this portion of the orebody was increased by 15 percent. This result also indicates the potential for further resource upgrades as the infill drilling progresses. The Bird-in-Hand project is located about 30km north of Terramin’s existing mining and processing facilities at the Angas zinc mine. Some of the Terramin team at Woodside, L to R: Katy Fechner, CEO Martin Janes, Brianna Clarke, Ashleigh Job, Katherine Laughton. ISSUE 04 RESOURCING SA Spring 2016
News 45 Record production but long way to go Despite a first half net loss of US$1104 million, Santos has announced record oil and gas production in the first half of 2016. Impacted significantly by the previously announced impairment charge for the Gladstone LNG project of US$1050 million after tax and lower oil prices, the company announced last month an underlying net loss of US$5 million. However, on a bright note, the first half production of 31.1 mmboe was a record, and a 10 percent increase on the previous half-year. Significant cost reductions were also achieved during the first half ¬– unit upstream production costs were down by 15 percent to US$8.80/boe and capital expenditure was down by 58 percent to US$283 million. Managing Director and Chief Executive Officer Kevin Gallagher said he was confident the
company was taking the “right steps” towards becoming a “strong and sustainable business”.
Another partnership for OZ
“When I joined the company in February I said the first priority was to assess the company’s assets and deliver the appropriate organisational structure to ensure that Santos is sustainable in a low oil price environment,” he said. “Our goal is to be free cash flow breakeven at between US$35 to US$40 per barrel on a portfolio basis. “We have made good progress in the first half towards this goal and are forecasting a free cash flow breakeven oil price of US$43.50 per barrel for 2016, down from US$47 per barrel.” He added that the establishment of the new operating model for Santos will “lift productivity” and “drive long-term value for shareholders in a low oil price environment”. OZ Minerals recently announced that it had entered an agreement with Mithril Resources to explore seven new licence areas in the south west of the State. “The area that OZ Minerals will be exploring with Mithril is real frontier country,” said Andrew Cole, CEO and Managing Director of OZ Minerals. “It is exciting greenfields exploration in rocks that are comparable to those just across the border that are known to host major mineral deposits. “This new wave of exploration aligns with the State Government’s Plan for Accelerating Exploration (PACE 2020) which is aimed at unlocking South Australia’s plentiful natural resources,” he added. The PACE initiative has collected and released a comprehensive geoscientific data set over the Coompana Province, which includes a high resolution aeromagnetic, seismic survey data and magnetotelluric data. In addition, an extensive ground gravity survey is planned for the last quarter of 2016. Mithril will undertake a target generation exercise in the Coompana Block of the far west of South Australia in the first instance, with a view to identifying potential drill targets on the relevant tenements. OZ Minerals will invest $250,000 as part of the stage one targeting.
High grade graphite at Siviour High grade graphite resources have been uncovered by Renascor Resources during a drilling program at its Arno Graphite Project.
In its June quarterly report, the company said its exploration and development activities were primarily focused on its Arno Graphite Project
on South Australia’s Eyre Peninsula. Renascor completed a diamond core drill program consisting of four holes for approximately 225m, with ground electromagnetic surveys identifying “multiple high conductivity anomalies at Siviour, suggesting high potential to locate higher-grade or thicker zones of graphite”.
Renascor said the style of graphite mineralisation at Siviour was considered unique within the Eyre Peninsula, in contrast to other graphite occurrences that are generally more vertical and consist of multiple lenses.
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46 News Iron Road to accelerate program Iron Road has announced its project commercialisation program will be accelerated to enable construction of its Central Eyre Iron Project (CEIP) to commence by the end of 2017. This follows a series of successful meetings with senior China Railway Group executives in South Australia, including a site visit to the Eyre Peninsula. CREC is Asia’s largest infrastructure construction contractor and its GDP contribution is approximately equivalent to one percent of China’s national GDP. The visit by CREC included meetings with senior South Australian government officials involving Premier Jay Weatherill and Treasurer Tom Koutsantonis, as well as a review of the project commercialisation program. Following the week’s activities, CREC expressed its view that the 12-month commercialisation program should be accelerated to enable construction to start by the end of 2017, with the first shipments of CEIP iron concentrate expected by the end of 2020. The CEIP field visit encompassed all major project components – proposed port site, infrastructure corridor (including rail) and mine/beneficiation site. At the Iron Road
Iron Road’s Andrew Stocks visits an Eyre Peninsula farm early this year.
core processing and storage facilities at Kyancutta, CREC gained access to more than 150,000m of drill core taken from more than
Rail upgrade on fast track
Fuel terminal commissioned The new state-of-the-art fuel terminal at Port Bonython fuels is now operational and supplying quality diesel to the South Australian market. Petro Diamond Australia, a subsidiary business of Mitsubishi Corporation, commissioned the $80 million project in May and said it was the
550 diamond drill holes, as well as logging, geotechnical and assay data.
largest diesel fuel storage facility in the State. More than 130 people were involved at the peak of its construction, with much of the workforce sourced from South Australia and where possible, the local communities of Whyalla, Port Augusta and Port Pirie.
It will be all systems go following the announcement that the Australian Rail Track Corporation (ARTC) will fast track a major upgrade to the east-west national rail network. The upgrade will involve the replacement of 1200 kilometre of rail between Adelaide and Tarcoola, and will deliver a substantial boost to freight productivity in South Australia and the national freight network. ARTC will partner with Arrium Steel to deliver the upgrade, substantially boosting demand for steel production at the Whyalla facility. The upgrade will replace decades old rail with stronger steel, weighing 60kg per metre compared to the current 47kg per metre. The stronger tracks will enable axle weight to increase from 23 tonne to 25 tonne at 80 km per hour. This means a heavier freight load will be able to be carried and faster track speed, delivering a significant boost in productivity to the network.
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News 47 Portia potential exposed
Natural resources risk index released
Latest drilling results from Havilah Resources have supported the potential for the Portia gold mine to transition to a long-life gold mining operation.
The clean tech revolution driving renewable technologies is a major risk on the minds of executives in the Australian natural resources sector.
High grade bedrock gold drilling intersections from the southern extensions yielded highlights such as 6 metres of 53.6g/t gold from 68 metres; and 13 metres of 8.4g/t gold from 79 metres during the recent drilling campaign.
That is the findings of the Natural Resources Risk Index released recently by global advisory, broking and solutions company, Willis Towers Watson. The Index also revealed that difficulties arising from operating in more technically challenging physical environments and the potential impacts of increasingly complex environmental regulation also rank highly as perceived risks. Technology that opens up the marketplace to disruptors was clearly identified as a source of concern by business leaders polled in the study. Regional Industry Leader, Natural ResourcesAustralasia, Martyn Thompson, said the industry was known for its ability to
Martyn Thompson
Simon Blight (Willis Towers Watson’s SA Development Manager)
innovate and change, but in the face of disruptors, mitigation strategies had to be regularly evaluated at a risk management level to ensure they remained relevant and effective. “This has arisen because of the low unit cost of power generated by alternative energy providers such as wind, solar and other alternative low carbon power technologies,” he explained.
Inroads into Chinese market
Demonstrating the strength of international demand for its high-grade product, emerging iron producer Carpentaria Exploration has announced successful inroads to the Chinese market. The company has signed a non-binding letter of intent (LOI) with independent commodities trading house Gunvor Singapore for the purchase of one million tonnes per annum of Supergrade from the company’s 62 percentowned Hawsons iron project near Broken Hill. It targets supply to smaller Chinese steel mills and follows other LOIs which have been signed with the Japanese trading house Mitsubishi Corporation RtM and Middle Eastern DR pellet maker Bahrain Steel. This means 50 percent of initial planned production from the Hawsons project, located 60km south west of Broken Hill, has been assigned to high value direct reduction
Managing Director Dr Chris Giles said: “While we have always suspected on geological grounds that Portia harboured something much larger at depth, it is satisfying to now have the indicative physical evidence before our eyes”. “We are very familiar with the vein/replacement style of mineralisation we are now seeing exposed at Portia, from Kalkaroo and many other prospects we have drilled in the region. “Given we now have a much clearer picture from mine exposures, our forward drill targeting can be more precisely directed.” Chris the company planned to do a lot more diamond drilling, “that to date we have not had the opportunity of undertaking due to financial constraints”.
markets in the Middle East and to blast furnace markets in China and the Asia-Pacific. Under the LOI, the parties intend to develop binding offtake arrangements, initially for a 10year term, with first supply targeted in 2020. Carpentaria’s Managing Director, Quentin Hill said the latest LOI came only months after outstanding pelletising results for the Hawsons Supergrade product and highlights its attractiveness across key markets. “The addition of this LOI, our first focused on the Chinese market, demonstrates the clear commercial advantages that Hawsons product quality and the location close to key markets provides. It also demonstrates that Hawsons is ideally suited to meet international demand for high grade and DR pellet feed and pellets that is forecast to increase over time as the global steel industry shifts focus to higher productivity and cleaner, more efficient operations.”
Chris Giles (left) with Steve Radford of Consolidated Mining and Civil ISSUE 04 RESOURCING SA Spring 2016
48 Industry events
Industry events
19-20 September 2016 The AusIMM New Leaders Conference Brisbane, Queensland www.newleaders.ausimm.com.au
28-30 September 2016 Life-of-mine Brisbane, Queensland www.ausimm.com.au
28 November – Dec 1 2016 Mines and Money London London London.minesandmoney.com
22-26 September 2016 International Mining & Resources Conference Melbourne Convention Centre Melbourne, Vic Imarcmelbourne.com
20 October 2016 Dirt TV Awards Night www.dirttv.com.au
1 December Geological Survey of South Australia Discovery Day Adelaide Convention Centre Minerals.statedevelopment.sa.gov.au/ gssa_dd
23 September 2016 SACOME Innovation Summit Adelaide Convention Centre www.sacome.org.au 25-28 September 2016 Chemeca 2016 - Chemical Engineering Conference Adelaide, South Australia chemeca2016.org
28 October 2016 SACOME Breakfast Series Adelaide Convention Centre www.sacome.org.au 17 November 2016 SACOME Lunch Series Adelaide Convention Centre www.sacome.org.au
On the radar!
Immune to the industry’s highs and lows, the SA Exploration and Mining Conference typically attracts 600-700 industry, government, supplier, and community stakeholders of the State’s dynamic minerals exploration, development and operations activities. The conference has over a decade’s history of unusual success, sticking to its unique organisation formula involving a team of passionate volunteers from non-profit industry bodies meeting once a month to piece together a comprehensive, fast moving event that attracts more delegates year on year. Concise presentations, quality catering and a program that covers the ‘whos who’ of the State’s mining world combine with an extraordinarily low registration fee to keep the conference’s reputation up there with the very best.
The SA Exploration and Mining Conference typically attracts 600-700 industry, government, supplier, and community stakeholders
Last year’s SA Exploration and Mining Conference exhibitors were an eclectic mix!
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2 December 2016 Annual SA Exploration & Mining Conference Adelaide Convention Centre www.saexplorers.com.au
For 2016, SA heavy weights BHP Billiton Olympic Dam, Arrium and OZ Minerals will present alongside a myriad of fellow developers and miners. Havilah Resources, Iron Road, Investigator Resources, Magnetite Mines, Terramin and Lincoln Minerals are all on the menu, together with the fresh, new discoveries that keep the conference dynamic. Traditionally held on the first Friday of December, a change for this year will be the addition of the Department for State Development’s showcase technical ‘discovery’ day – scheduled for the day preceding the conference. The two-day line-up is expected to attract more interstate visitors, ensuring another record breaking crowd. Registration is available on the conference website at an early bird price of $160 up to 1st October, ($185 after this date) including full day catering and a conference highlight – the post conference celebration networking drinks.
Events 49 1 1. Terry Burgess, President, SACOME and Terry Kallis, Principal & Director, Kallis & Co 2. John Fennell, International Copper Association Australia Ltd and Julie Beveridge, OZ Minerals 3. Kim Sczesny, OZ Minerals, Kate Litchfield and Dominika Piotrowska, EY. 4. Lunch guests at the July lunch event 5. Peter O’shannessy and Michael Bryant from Kalari 6. Justin Haines, Leigh Creek Energy and Phillip Link, Honeywell at the GMUSG/SACOME Industry Conference 7. Jacqui McGill, Asset President, BHP Olympic Dam and Bob Fulker, Chief Operating officer, OZ Minerals 8. Ted Tyne and Nicole Argent from the Department of State Development at the GMUSG/SACOME Industry Conference 9. Warren Rowley (middle) from LH Perry & Sons at the GMUSG/SACOME Industry Conference
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GMUSG /SACOME Industry Conference and Trade Expo Port Pirie hosted several hundred delegates at the annual regional conference, focused on resources, energy, manufacturing and infrastructure industries so vital for the upper Spencer Gulf Region and the State as a whole. The conference is the largest regional event of its kind, and adapts to the changing business environment and opportunities for local service providers and suppliers. This year’s event featured the usual relaxed networking and insightful talks, with oil & gas, nuclear and defence industry opportunities added to the resources heavy program.
Breakfast bonus
Lunch with Jacqui
More than 110 SACOME members enjoyed breakfast and heard from Justyn Peters, Executive Chairman, Leigh Creek Energy; Tom Kenyon MP, Member for Newland, SA Labor Party; and Martin Jacobsen, Managing Director & CEO, WPG Resources as they shared news of their current projects and activities across South Australia on 28 July.
In July, BHP Billiton Olympic Dam Asset President Jacqui McGill presented an exclusive update to around 300 attendees at a SACOME lunch.
Terry Kallis, Principal & Director, Kallis & Co was awarded a life member plaque by Terry Burgess, President, SACOME in recognition of the eight years that Terry has been a member and Councillor of SACOME.
Jacqui spoke on the transformational mine, including how and when it plans to access the expansive southern area – previously untouched and home to 70 percent of its copper, uranium and gold. Dramatic production increases, 120km of new tunnels, processing innovations and cultural transformation are all underway or on the agenda as the mega-mine, one of SA’s major employers, positions itself for long-term, sustainable growth.
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50 Service Provider Michael Wilkinson, Max Cranes. Image: Kim Mavromatis
PUSH IT TO THE
MAX
Scaling new heights has always come naturally to the Port Augusta headquartered team at Max Cranes. By Stephen Batten Port Augusta business owners Mark Kuhn and Shane Bradshaw have much to thank for the mining and construction highs of the 2000s. For Mark and Shane, it began when they recognised an opportunity to assist local building projects that needed a hand. With limited resources, they bought two cranes to help with the heavy lifting in the Upper Spencer Gulf. A few years on and the mining industry burgeoned. “This gave us an opportunity to purchase and upgrade to the best available fleet, develop our in house services and create a very positive culture for our staff,” Mark said. Fast forward 14 years, and the business now owns a fleet of over 30 cranes varying in capacity from 12 – 500 tonnes, working across many industries providing lifting, transport and equipment hire. The company has kept its roots close to home in country SA with several depots across the land giving them access to every corner of the state. “Our history stems from strategically locating in Port Augusta from inception, along with supporting sites in Whyalla, Port Pirie, Moomba, Cavan north of Adelaide and Lonsdale south of the city. This enables us to service our clients in the most remote locations, but also the city and surrounds.” Mark explained. Although the company is relatively young, its focus on mining and petroleum has meant a fair share of ups and downs over that timeframe. Yet Mark has never “talked down the economy” -though he is the first to admit things could always be better, he appreciates the growth and activity that cemented his business’ foundations over the past decade. “It is pretty obvious that a whole lot of people out there are frustrated over current conditions, and that’s fine, but maybe we have become too accustomed or comfortable with strong commodities prices that, in hindsight, weren’t so sustainable.” Like most other businesses, the team at Max Cranes has needed to evolve over the years to the changing market, in this case by adding services to their crane fleet such as transport and logistics, haulage, equipment hire, project management, site works, warehousing and lay down storage sites. The company has many exciting new projects on the horizon, ranging from wind farm maintenance, to construction and port support and their continued partnership and investment in the Cooper and Eromanga Basins. With 85 employees spread across South Australia, Mark says the team prides itself on their trainee and apprenticeship programs and “Can Do capability”. For the Max crew, it’s a case of rolling up the sleeves in true Aussie style and getting on with the hard yards - to deliver a service that keeps pushing it to the max. ISSUE 04 RESOURCING SA Spring 2016
Opinion 51
FINDING THE MAGIC With Australia’s disappointing NAPLAN results, it’s time to find ways to inspire primary students to enjoy maths and science. By Terry Burgess
maths or science and as a result many new primary school teachers lack confidence and competence in these areas. There is a wealth of information and advice available on what should and could be done. Comparisons can be made with Finland, Singapore and Shanghai that have high performing education systems, where standards are set high and students expected to do well. Good practice in maths teaching and learning can be found in Hungary, Japan and (again) Finland. These examples show how other countries have increased the attractiveness of teaching as a profession, restricted entry into teaching degrees to top qualified applicants and employed STEM specialists in primary schools. Maybe we have progressed since the Barbie Doll’s first words in 1992 were “Math is tough”, but there is clearly still a long way to go. One thing that seems to be absent in all the reports and studies is the idea that maths and science should be fun – the magic seems to be missing. Connor discovering the magic of permeability at Science Alive! recently.
The recent NAPLAN results were, in general, disappointing… with no significant improvement in literacy and numeracy among Australian students over the past year. Politicians and commentators quickly looked for reason – insufficient funding, wrong focus on funding, under-resourced schools – and searched for gems that might highlight their State’s performance over others. Results from international studies have also been disappointing. The Trends in International Mathematics and Science Study (TIMSS) and Progress in International Reading Literacy Study (PIRLS) show that Australia’s performance ranking in maths and reading has declined consistently for the past 15 years. The latest studies for Year 4 students showed that Australia ranked 18th in maths, 25th in science and 27th in reading. This might not sound too bad out of the 192 countries, however the OECD classifies only 48 UN member countries as being self-sufficient enough not to require foreign aid.
If you take the position that the core job of primary schools is teaching children to read, write and do maths then Australia has a problem – especially if we want to be an ‘innovation nation’. The majority of the fastest growing occupations require science, technology, engineering and maths (STEM) skills, yet only 16 percent of Australia’s tertiary graduates are from STEM degrees. Only one in ten Year 12 students completes an advanced maths subject and there are twice as many students studying elementary maths than intermediate maths.
As Minister Simon Birmingham has said the objective for primary school children is “to set them up for a life of learning, exploring and discovery”. This is something that everyone should be striving for as we head into a world in which everyone needs to work until they are in their seventies. Perhaps semi-retired scientists, engineers and STEM teachers can find a new role in primary school education?
The universities are not helping with the development of STEM at school, with a growing number of science and engineering degrees not requiring school high level maths.
Here are a few ‘magic’ ingredients that should appeal to many primary school children, easily found through the magic of Google:
The foundations of STEM competence are laid down in early childhood, but less than 3 percent of total primary school teaching time is devoted to science. It is reported that a sizeable number of primary school teachers have no Year 12 qualification in
• Magic number 12,345,679 • Magic fingers 9 times table • Magic fireworks in a jar • Magic bending water ISSUE 04 RESOURCING SA Spring 2016
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