ZENITH ENERGY AND LIONTOWN RESOURCES PARTNER ON AUSTRALIA’S LARGEST OFF-GRID RENEWABLE ENERGY HYBRID POWER STATION
NT GOVERNMENT ANNOUNCES FRACKING IN BEETALOO BASIN CAN BEGIN
RESOURCES TECHNOLOGY SHOWCASE 2023

BHP ACQUIRES OZ MINERALS



ZENITH ENERGY AND LIONTOWN RESOURCES PARTNER ON AUSTRALIA’S LARGEST OFF-GRID RENEWABLE ENERGY HYBRID POWER STATION
NT GOVERNMENT ANNOUNCES FRACKING IN BEETALOO BASIN CAN BEGIN
RESOURCES TECHNOLOGY SHOWCASE 2023
BHP ACQUIRES OZ MINERALS
The $4.2bn 2022/23 Australian Federal Budget surplus is a far more robust starting point in Australia’s fiscal position. The 2023 budget includes reductions to gross debt and should alleviate some of the inflationary pressures which threaten Australian economic growth and cost of living pressures. The significant contributions of the mining and resources sector helped the Government deliver $14.6 billion in cost-of-living relief among other key budget measures. The Budget paves the way for new gas supply, recognises low-carbon hydrogen and carbon capture utilisation and storage (CCUS) as crucial to net zero, confirms the growing economic contribution of the oil and gas industry to the nation’s finances and includes new revenue measures and changes to the Petroleum Resources Rent Tax (PRRT).
The McGowan Government has appointed Reg Howard-Smith as the inaugural chair of its state-first Resources Community Investment Initiative (RCII), launching an expression of interest process for companies to identify projects they wish to contribute to. The RCII, which was launched on 22 November 2022, will facilitate investment from the resources industry in iconic infrastructure projects and community initiatives across Western Australia.
The (RCII) initiative’s foundation partners have already committed a total of $750 million, which is made up of contributions from Rio Tinto ($250 million), BHP ($250 million), Hancock Prospecting, Roy Hill and Atlas Iron ($100 million), Woodside Energy ($50 million), Chevron Australia ($50 million) and Mineral Resources ($50 million). This funding will be used to invest in iconic projects that will leave a lasting legacy for Western Australia. Other resource companies are encouraged to participate in the RCII, with additional contributions already pledged. A further announcement of contributions will be made following the close of the expression of interest process on 31 July 2023.
The new CommBank Manufacturing Insights 2023 report reveals that 72 per cent of manufacturers in Australia expect to increase production levels in the next 12 months, while the same proportion are planning to increase capital expenditure. The majority of Australian manufacturers surveyed are confident in the short-term outlook for business conditions, likely buoyed by a stronger-thanexpected financial performance in the past year. Seventy per cent of manufacturers reported profit growth in the past 12 months, compared to just 52 per cent last year.
Manufacturers are optimistic with 74 per cent anticipating increased profits in the next 12 months. This is notwithstanding broad challenges facing the industry, with 75 per cent expecting increases in operating costs and 92 per cent saying lingering supply chain issues are holding back capacity or growth. Around 86 per cent of manufacturers said this is impacting on cash flow. Jerry Macey, CBA Executive Manager Consumer Diversified Industries, said Australian manufacturers had a strong track record of rising to disruption by adapting their operational performance and investment programs to the operating environment.
Two major Australian fossil fuel developments were rejected after the applicant companies failed to act in a timely manner. The Australian Department of the Environment recently rejected the Stanmore Resources’ Range Coal Project (44km northwest of Miles) and MacMines Austasia’s $6.7B China Stone Coal Project (300km west of Mackay) in Queensland. Federal Environment Minister Tanya Plibersek blamed MacMines for taking four years to respond to potential impacts on threatened species and water resources. Plibersek also blamed Stanmore for taking 10 years for the same reason.
The Western Australia State Budget released in May 2023 has highlighted the significant contribution the mining and resources sector makes to Western Australia, driving a $4.2 billion surplus for 2022-23 and accounting for 29.5 per cent of Government revenue. The surplus is $2.4 billion higher than forecast 6 months ago primarily thanks to WA’s strong iron ore sector, with unexpectedly higher commodity prices delivering cost of living support for households and small businesses, a substantial investment in decarbonisation of the state’s main electricity grid, a further record spend on health and mental health, new social housing investment, and further repayment of debt.
Best regards
Len Fretwell Publisher/Managing EditorEDITOR’S LETTER
TECHNOLOGY SHOWCASE 2023
GOVERNMENT ANNOUNCES FRACKING IN BEETALOO BASIN CAN BEGIN
BHP ACQUIRES OZ MINERALS
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The Resources Technology Showcase took over Perth! Visitors to the Perth Convention & Exhibition Centre saw incredible robotics in action, immersed themselves in jawdropping augmented reality, and took part in amazing remote operations systems – and it was completely free!
The Perth Convention and Exhibition Centre came to life for three days in April, showcasing the amazing technology that is driving the mining, resources, defence and space industries in WA. This free event gave entrants the chance to interact with virtual reality, drones, robots and all of the extraordinary innovation that is being developed and used across Western Australia.
After 7NEWS Tim McMillan’s MC Welcome and WELCOME TO COUNTRY, Keynote Speakers included, Hon Mark McGowan MLA, WA Premier; Treasurer; Minister for Public Sector Management; Federal – State Relations, Hon Madeline King MP, Minister for Resources; Minister for Northern Australia, Simon Trott, Chief Executive Iron Ore, Rio Tinto and Brandon Craig, WA Iron Ore Asset President, BHP. There were also several interesting Panel Discussions with WA Government official and industry executives.
2023 Principal Partners were the Government of Western Australia and he Australian Government Department of Defence. 2023 Presenting Partners were INPEX, BHP, Woodside Energy, Fortescue, WesTrac CAT, MINERAL RESOURCES, ROY HILL, Rio Tinto, CATERPILLAR and Chevron. 2023 Supporting Partner was CITY OF PERTH and the 2023 Conference Partner was CME.
Perth’s Governors Avenue and Supreme Court Gardens was a major attraction for families showcasing some of the large-scale mining equipment that is usually only seen at active mining operations, courtesy of RTS 2023 partner WesTrac.
The event was a celebration of the technological breakthroughs which have made Australia’s resources industry the most innovative and competitive in the world. RTS 2023 included twenty Interactive Exhibitions, had twelve event partners and hosted ten Centre Court Presentations and over 8,000 school students visited the event.
The Resources Technology Showcase will be back in 2025! For more information about RTS 2025 and school excursions please email SWMevents@swm.com.au
Madeline King MP RTS AddressWesTrac and Caterpillar® once again brought family-friendly fun to the Resources Technology Showcase (RTS) in 2023. A major Cat equipment display was setup close to the city centre in addition to an interactive booth at the Perth Convention and Exhibition Centre.
RTS 2023 is a family-friendly free exhibition that gives the general public a chance to see the amazing technology and innovation driving the mining, resources, defence and space industries in Western Australia. As an entrant to #RTSPerth, you’ll interact with the latest in robotics, drones and remote operating software.
WesTrac and Caterpillar were at booth number 4 with 3D technology and virtual reality stations that put you in the driver’s seat of a large mining truck. RTS made its big return to the Perth Convention and Exhibition Centre on 2-4 April, from 12pm to 4pm on Sunday 2 April and 9am to 4pm on both Monday and Tuesday. Entrance to RTS was free with required online registration. Just like in 2019 and 2021, WesTrac was on
world’s biggest and best mining and construction equipment to the city which gave people the chance to get up close to machines usually found working on some of the largest projects in Australia.
Visitors had the chance to jump in a Cat Next Gen Mini Excavator and move some dirt around, the kids could even get in on the action too. WesTrac Careers team members were at the booth and display to answer any questions you have about their machinery, technology solutions and job opportunities at WesTrac. While the display showcased Cat equipment, the main purpose of RTS was to inspire our local communities and future generations to explore exciting career options and opportunities in the resources industry.
At Governors Avenue and Supreme Court Gardens, there was a variety of Cat machines including Excavators (of all sizes!), an Articulated Truck, Wheel Loaders and more. At the event, visitors had the chance to jump in the cab and get a photo taken.
board as an RTS partner for 2023. Two days before the event started, WesTrac and Caterpillar had a major Cat equipment display setup close to Perth CBD – on Governors Avenue, next to Supreme Court Gardens. The display brough some of the
Australian lithium miner Core Lithium (ASX: CXO) has approved up to $50 million expenditure for early works for the BP33 underground project - the second proposed mine at the Finniss Lithium Operation near Darwin in the Northern Territory.
Core said that development of BP33, located 5km from the Dense Media Separation (DMS) plant, was in line with its strategy to develop Finniss via several satellite deposits within trucking distance of the DMS plant located at the Grants Mine Operation. Early works for BP33 underground will include the covered box cut, improved access and some associated surface works for water management. The capital approved for these works is $45 million to $50 million. This updates earlier estimates presented in September 2022 for early works. Subject to potential early wet season, modelled geotechnical and groundwater impacts, this work is expected to be complete by end of Q1 CY24.
Final capital expenditure, development and production timing for the BP33 underground mine will be completed following further studies that include the new BP33 resources, further metallurgical test work, additional geotechnical studies, mine sequencing options and cost estimates associated with a potentially extended mine area. FID for BP33 will be made once this work is completed and expected Q1 CY24. Following completion of the early works and subject to a positive FID and board approval to proceed with the BP33 underground mining operations, subsequent work required before BP33 ore production commences is expected to include decline development, early stope development, ventilation infrastructure, water management and power infrastructure and further civil site works.
The MCA welcomes the Leader of the Opposition acknowledging the significant contribution the Australian minerals industry made to the nation’s economy and the budget surplus – via exports and tax revenue – in his 2023/24 Budget reply speech. This contribution –thanks to iron ore, thermal and metallurgical coal, gold, aluminium, alumina, bauxite, copper, nickel, lithium and other minerals which are important for the global transition for net zero emissions – was an important reason for the Budget surplus. In 2021-22, Australia’s exports of minerals, metals and energy commodities was worth $413 billion and accounted for 69 per cent of total export revenue.
In 2022, Australian minerals contributed an estimated $64 billion in company taxes and royalties, an increase of $21 billion on 2021. Australian minerals have contributed 21 percent of Australia’s GDP growth in the last ten years and 32 per cent ($41 billion) of all company tax paid in the nation in 2022. Australia’s vulnerability to competition from resources-rich economies will only grow as they seek to seize the opportunity to supply the minerals and metals needed to achieve global net zero emissions. To attract a significant proportion of this investment that will create tens of thousands of new regional jobs, business growth and investment should be placed at the centre of government’s policymaking. Workplace relations, tax, environment, climate change and energy policies that impose unexpected costs on the mining industry threaten the capital investment that underpins its contribution to the economy and the global efforts to decarbonise.
The MCA welcomes the Opposition Leader’s support for nuclear energy. Small modular reactors are a sensible net zero emissions solution that would not only provide the additional firming capacity that Australia’s energy grid requires but propel Australia’s transition to a clean energy economy.
Tania Constable, MCA Chief Executive OfficerMeranti Power, a wholly owned subsidiary of Singapore’s Energy Market Authority, has broken ground on its first-ever power station. A consortium led by Jurong Engineering Limited (JEL) and comprising Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, Ltd. (MHI), will design, manufacture, procure and construct the 680MW power station. It is expected to be in commercial operation by mid-2025.
Situated on Jurong Island, the new facility will feature an open cycle gas turbine (OCGT) configuration capable of fast start up and rapidly ramping up power production to deliver electricity on demand. Once fully operational, the power station will help minimize the risk of energy disruption and enhance overall grid stability in Singapore. As part of the consortium, Mitsubishi Power will design and manufacture two 340MW M701F-Series gas turbines and generators and also supply related auxiliary equipment.
49 Candlewood Boulevard, Joondalup 6027
49 Candlewood Boulevard, Joondalup 6027
Tel: (08) 9300 3135
Fax: (08) 9300 3236
Tel: (08) 9300 3135
Fax: (08) 9300 3236
Email: mark@mechbro.com.au
Email: mark@mechbro.com.au
MechBro Australia has been set up to respond to the demand for Heavy Duty Diesel Mechanics and Fitters involved in the repair, maintenance and servicing of earthmoving, mining and transport equipment as well as light vehicles.
Our business is based in Perth and also services regional areas, including the Pilbara. Our people are highly skilled and motivated to provide the highest level of service to companies throughout Western Australia. With a fleet of mine specified and fully equipped service utilities, we are unique in that we are not simply a labour hire company. Because with MechBro you don’t just get a capable individual, you get the strength of our entire team! MechBro’s team of mechanics and fitters are committed to the economic success of our customers. And so, before joining us, must demonstrate they possess the passion, skills and attitude required to satisfy our customers. Accordingly, we believe this set of values will help to ensure the mutual economic success of all parties.
Our business is based in Perth and also services regional areas, including the Pilbara. Our people are highly skilled and motivated to provide the highest level of service to companies throughout Western Australia. With a fleet of mine specified and fully equipped service utilities, we are unique in that we are not simply a labour hire company. Because with MechBro you don’t just get a capable individual, you get the strength of our entire team! MechBro’s team of mechanics and fitters are committed to the economic success of our customers. And so, before joining us, must demonstrate they possess the passion, skills and attitude required to satisfy our customers. Accordingly, we believe this set of values will help to ensure the mutual economic success of all parties.
Whether it be a civil or mining project, every person on our team knows that to keep plant operating means productivity. We work hard and use our heads! As a collective, our team of highly skilled mechanics diagnose, repair and maintain a wide variety of plant and equipment, dozers, excavators, graders, scrapers, profilers, dump trucks, bobcats, heavy haulage road transport, etc.
Whether it be a civil or mining project, every person on our team knows that to keep plant operating means productivity. We work hard and use our heads! As a collective, our team of highly skilled mechanics diagnose, repair and maintain a wide variety of plant and equipment, dozers, excavators, graders, scrapers, profilers, dump trucks, bobcats, heavy haulage road transport, etc.
Our team has the experience, qualifications and equipment to work on all aspects of these machines including engine rebuilds, hydraulics, track and frame, electrics and air conditioning and on all brands, including, but not limited to; CAT, Hitachi, Komatsu, Terex, O&K, Volvo, Bell, Vermeer, Cummins.
Our team has the experience, qualifications and equipment to work on all aspects of these machines including engine rebuilds, hydraulics, track and frame, electrics and air conditioning and on all brands, including, but not limited to; CAT, Hitachi, Komatsu, Terex, O&K, Volvo, Bell, Vermeer, Cummins.
As a team of mechanics, fitters, servicemen and fabricators we keep machines going, as well as being involved in site mobilization where we establish containerized workshops complete with domes and commission machinery ready for operation. Upon project completion we demobilize workshops and plant and are often the last to leave site.
As a team of mechanics, fitters, servicemen and fabricators we keep machines going, as well as being involved in site mobilization where we establish containerized workshops complete with domes and commission machinery ready for operation. Upon project completion we demobilize workshops and plant and are often the last to leave site.
Throughout a project we are able to manage all parts ordering and delivery, including urgent hot shots. Our tilt tray can pick up and deliver parts and 20’ containers up to 8.5T.
Throughout a project we are able to manage all parts ordering and delivery, including urgent hot shots. Our tilt tray can pick up and deliver parts and 20’ containers up to 8.5T.
During the last 18 months we’ve worked at many major mine sites owned by BHPB, RIO, FMG, Sandfire Resources and more recently Onslow Quarry. Our people understand the rigorous requirements of working on these sites and act accordingly.
During the last 18 months we’ve worked at many major mine sites owned by BHPB, RIO, FMG, Sandfire Resources and more recently Onslow Quarry. Our people understand the rigorous requirements of working on these sites and act accordingly.
Our aim is to conduct our business using systems and practices which will ensure that our workforce and the community are protected from injury and harm. Safety and productivity go hand in hand with our people working as problem solvers to get the job done.
Our aim is to conduct our business using systems and practices which will ensure that our workforce and the community are protected from injury and harm. Safety and productivity go hand in hand with our people working as problem solvers to get the job done.
We have the equipment and the facilities to service your machinery and vehicles. We will also invest in our business and tailor to your requirements.
We have the equipment and the facilities to service your machinery and vehicles. We will also invest in our business and tailor to your requirements.
MechBro has the capability and authorisation to repair your air conditioning units.
MechBro has the capability and authorisation to repair your air conditioning units.
Mechbro can provide a variety of machinery and vehicles to suit your needs. MechBro currently have 6 mine specified service vehicles supported by a tilt tray truck capable of loading and unloading 20’ sea containers and moving items of plant up to 8 Tonne.
Mechbro can provide a variety of machinery and vehicles to suit your needs. MechBro currently have 6 mine specified service vehicles supported by a tilt tray truck capable of loading and unloading 20’ sea containers and moving items of plant up to 8 Tonne.
Having established MechBro Pty Ltd on May 9th 2011, with 2 mechanics we have experienced rapid growth and now have a great team of mechanics and service men. In 2012 we also acquired a light vehicle workshop in Joondalup. Within the next 12 months we will be establishing a heavy duty workshop where we can service, repair and store larger equipment.
Having established MechBro Pty Ltd on May 9th 2011, with 2 mechanics we have experienced rapid growth and now have a great team of mechanics and service men. In 2012 we also acquired a light vehicle workshop in Joondalup. Within the next 12 months we will be establishing a heavy duty workshop where we can service, repair and store larger equipment.
For more info, contact Mark Nielsen Mobile: 0438005655 www.mechbro.com.au
Reduce your diesel generator run time while eliminating expensive AC underground cable runs. Bolt together concrete base lockdown system to give cyclone rating, no need for expenssive earthworks on site.
• Gate houses
• Accommodation units
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• Lighting towers
• Power tools and equipment
• Split system air conditioning
Unique Hire can assist with the hybrid power systems, as well as containerized reverse osmosis systems and hydration units, all compatible with our power systems.
• Australian Made 40-foot container with switchboard and powerpoints
• 3Phase Victron Quattro 30kVA Inverter Charger
• Pylontech Lithium Battery Bank customisable to suit your application (minimum 60kWh storage)
• 6 x 250/100 Victron SmartSolar MPPT (allows for plug and play of additional solar panel arrays)
• Victron Cerbo GX System Monitor with Online Access
• 11.7kW Solar Array – 30x 390W JA Mono Solar Panels.
• Incredible Unique Automatic Foldaway Solar Panel design
• Fully wired and programmed so that you can plug and play
• Auto start backup diesel generator
Our Portable Power Stations can be dropped onto site,wired into your switchboard & are ready to provide immediate power!
Call Unique Hire & Sales
+61 499 020 152
sales@uniquehirewa.com.au
Life
When you purchase an Off grid hybrid solar power module you won’t be left in the dark. We are proud to provide specialised lifetime support with every system.
Know how your system is performing with our advanced monitoring tools & allow your generator to autmatically start too.
Five years after a moratorium on fracking was lifted, the Northern Territory Government will now allow a full-scale onshore gas industry to operate in the gas rich Beetaloo Basin.
The Northern Territory Government has announced that hydraulic fracturing of onshore unconventional shale gas reservoirs may begin under very strict conditions and in tightly prescribed areas.
During the announcement, Northern Territory Chief Minister Hon Natasha Fyles stated, “The Territory Government will move carefully to manage the onshore gas industry through our strength and regulatory framework ensuring greater transparency and accountability and ensuring that Traditional Owners, Aboriginal People have a seat at the table. This means that all applications made for gas production, subject to the successful industry exploration and appraisal results, will go through this rigorous approval and monitoring process. I want to make it clear; Traditional Owners Aboriginal Territorians have the power to veto a project. Now is the time for the Northern Territory to provide the energy the world needs to transition to renewable energies. We are absolutely serious about protecting our environment and our social amenity, this won’t come at the cost to Territorians.”
In December 2016 the Northern Territory Government announced an independent Scientific Inquiry into Hydraulic Fracturing of Onshore Unconventional Reservoirs in the Northern Territory.
The Inquiry was commissioned under the Inquires Act and its Terms of Reference required it to investigate the environmental, social and economic risks and impacts of hydraulic fracturing (commonly known as fracking) of onshore unconventional gas reservoirs and associated activities in the Northern Territory.
The Honourable Justice Rachel Pepper was Chair of the Inquiry. An eminent scientific Inquiry panel with expertise in disciplines such as water, geology, ecology, health, sociology and engineering was assembled to form the Commissioners under the Inquires Act.
The independent Scientific Inquiry into Hydraulic Fracturing of Onshore Unconventional Reservoirs in the Northern Territory handed down its Final Report to the Northern Territory Government in March 2018.
After careful consideration of the March 2018 Final Report of the Scientific Inquiry into Hydraulic Fracturing of Onshore Unconventional Reservoirs in the Northern Territory, including the nature and extent of identified risks and the 135 accompanying recommendations, the Government supports, or supports in-principle, all recommendations.
The Final Report emphasises that a robust and trusted regulatory framework is the principal way by which Government can ensure any onshore unconventional shale gas industry can safely develop in a manner which protects the environment and meets community expectations.
Delivering the complex regulatory framework will take time and no hydraulic fracturing of unconventional reservoirs will occur until a required regime of recommendations have been implemented.
The Inquiry’s recommendation about no-go zones has been supported and there will be no hydraulic fracturing in areas including in National Parks, Conservation Areas, Indigenous Protected Areas, towns, residential and strategic assets, and areas of high cultural, environmental or tourism value.
Charles Darwin University (CDU)’s Professor Alan Andersen, who was the terrestrial ecologist on the NT Fracking Inquiry said, “The decision to give the green light for fracking in the Beetaloo basin is no surprise. Our Inquiry established 135 recommendations to implement if gas production were to go ahead. One of these was to undertake a baseline assessment to determine all potential risks and understand how these could be managed or mitigated, which has now been completed. No additional risks were identified. Our Inquiry found that the primary concern with fracking was the impact on water quality, particularly the contamination of groundwater. The Beetaloo groundwater feeds into our iconic Roper and Daly rivers but does so extremely slowly. Any risks of contamination can be appropriately mitigated. The baseline assessment report described the requirements for ongoing monitoring at the regional scale, covering aquatic and terrestrial ecosystems, human health and wellbeing, and methane emissions. Such ongoing monitoring is critical for identifying and addressing any impacts of gas production.”
Hydraulic fracturing produces fractures in the rock formation that stimulate the flow of natural gas or oil, increasing the volumes that can be recovered. Wells may be drilled vertically hundreds to thousands of feet below the land surface and may include horizontal or directional sections extending thousands of feet.
Fractures are created by pumping large quantities of fluids at high pressure down a wellbore and into the target rock formation. Hydraulic fracturing fluid commonly consists of water, proppant and chemical additives that open and enlarge fractures within the rock formation. These fractures can extend several hundred feet away from the wellbore. The proppantssand, ceramic pellets or other small incompressible particles - hold open the newly created fractures.
Hydraulic fracturing is a technique used in “unconventional” gas production. “Unconventional” reservoirs can costeffectively produce gas only by using a special stimulation technique, like hydraulic fracturing, or other special recovery process and technology. This is often because the gas is highly dispersed in the rock, rather than occurring in a concentrated underground location.
Extracting unconventional gas is relatively new. Coalbed methane production began in the 1980s; shale gas extraction is even more recent. The main enabling technologies, hydraulic fracturing and horizontal drilling, have opened up new areas for oil and gas development, with particular focus on natural gas reservoirs such as shale, coalbed and tight sands.
Shale Gas Extraction. Shale rock formations have become an important source of natural gas in the United States. Shale gas is present in many locations in the contiguous United States, including some areas where oil or gas production has never occurred before.
Once the injection process is completed, the internal pressure of the rock formation causes fluid to return to the surface through the wellbore. This fluid is known as both “flowback” and “produced water” and may contain the injected chemicals plus naturally occurring materials such as brines, metals, radionuclides, and hydrocarbons.
The flowback and produced water is typically stored on site in tanks or pits before treatment, disposal or recycling. In many cases, it is injected underground for disposal. In areas where that is not an option, it may be treated and reused or processed by a wastewater treatment facility and then discharged to surface water.
Production of Coalbed Methane. Coalbed methane (CBM) was first extracted from coal mines as a safety measure to reduce the explosion hazard posed by methane gas in the mines. Today the methane is captured and used as a source of energy. Deeper coal formations might require hydraulic fracturing to release the natural gas.
Tight Sands. Tight sands are gas-bearing, fine-grained sandstones or carbonates with a low permeability. Unless natural fractures are present, almost all tight sand reservoirs require hydraulic fracturing to release gas.
Material Source: US EPA
The future of regional communities throughout the Bowen Basin is at risk from the State Government’s new royalty tax tiers, which are set to cost coal producers six times more this financial year than predicted in last year’s state budget, the Queensland Resources Council (QRC) said recently.
Speaking from Moranbah, where Bowen Coking Coal will officially re-open its Burton Mine Complex today, QRC Chief Executive Ian Macfarlane said the scale of the sudden state royalty tax hike is already impacting decisions about resources investment and jobs across the state.
“It’s great to be here at the Burton Mine, but the fact remains this investment decision was made before the Queensland Government’s shock royalty increase,” he said,” he said.
“Queenslanders should be in no doubt there will be fewer jobs and less investment in the future because we now have the highest royalty rates in the world, which has seriously undermined our sector’s international competitiveness.”
Last year, the Queensland Government announced it would add three higher tiers to the state’s royalty tax system, costing coal producers an estimated extra $800 million in 2022/23. The latest price forecast from the Office of the Chief Economist suggests the amount will be closer to an extra $5 billion, bringing the total amount of coal royalties paid by coal companies this financial year to an unprecedented $13 billion.
Mr Macfarlane said taking this amount of money out of the sector in a one-year period is a huge disincentive for companies to continue to invest in Queensland.
“Queensland royalty taxes are now the highest in the world, and our top rate is five times higher than in New South Wales,” he said.
“Alarm bells should be ringing for the State Government and for every Queenslander. No industry can withstand such a heavy-handed and sudden tax impost, not even an industry as resilient and significant to the Queensland economy as the coal sector, which represents about 60 per cent of our exports.”
Last month, BHP confirmed it will not make any significant new investments in Queensland while the higher tax regime is in place, and Glencore has cited higher royalties as a factor in its decision not to proceed with its $2 billion Valeria project. Mr Macfarlane said mining companies operating throughout the Bowen Basin, where Queensland’s coal sector is largely based, have long been the driving force behind the Queensland economy.
Statewide, the resources sector contributed $94.6 billion to the Queensland economy last year, supported the jobs of 450,000-plus people and spent more than $27 billion across 14,000 businesses in its supply chain.
“The frustrating reality is that before the new tax tiers were introduced, coal companies would have still contributed a record $8.3 billion in royalties to the state budget this financial year because coal prices have been so strong,” Mr Macfarlane said.
“When prices are high, the amount of royalties paid by companies increases. That’s how the previous system worked, and it was working well for Queensland.
“There is no justification for the government to step in and throw Queensland’s investment environment into chaos.”
MR Macfarlane said the full impact of the government’s sudden change in economic policy will be felt in five to 10 years, when the pipeline of new investment in large-scale, long-term resources projects is not there to take over from projects that have reached their end of mine life.
“This should be a concern for every Queenslander, and I urge people to find out more about this issue and how it will affect their lives and livelihoods.”
BHP has announced the completion of the OZ Minerals acquisition and implementation of the scheme of arrangement for BHP Lonsdale Investments Pty Limited, a wholly owned subsidiary of BHP Group Limited, to acquire 100% of the shares in OZ Minerals Limited (OZL) (the Scheme). BHP Group Limited is now the ultimate parent company of OZL.
BHP Chief Operating Officer Edgar Basto said: “We welcome the OZ Minerals team to BHP as new colleagues with shared values of safety, respect, innovation and performance. Bringing together our quality resources, talented teams and innovative thinking will help us create opportunities for local employment, small businesses, regional communities, Traditional Owners and the South Australian economy.
BHP CEO Mike Henry said: “This acquisition strengthens BHP’s portfolio in copper and nickel and is in line with our strategy to meet increasing demand for the critical minerals needed for electric vehicles, wind turbines and solar panels to support the energy transition. Combining our two organisations will provide options for growth, bring new talent and innovation to unlock these resources in a sustainable way, and deliver value to shareholders and communities.”
In bringing together the BHP and OZ Minerals businesses, BHP will focus on safe and reliable operation of the Olympic Dam, Prominent Hill and Carrapateena assets, building a shared culture of innovation and performance, and progressing sustainable growth options to establish a copper province in South Australia.
“South Australia has the potential to be a major supplier of copper to meet the world’s increasing demand for copper and we look forward to unlocking the potential of our people and their combined talent. This will require new thinking and new technology and we are excited to begin work on the opportunities ahead.”
OZL shareholders have received total cash consideration of A$28.25 per OZL share, comprising:the scheme consideration paid by BHP of A$26.50 for each OZL share held at the scheme record date, which is 7:00pm on 24 April 2023; and a fully franked special dividend paid by OZL of A$1.75 for each OZL share held on the special dividend record date, which is 7:00pm on 21 April 2023.
The cash payment by BHP has been funded using a combination of BHP’s existing cash reserves and the proceeds of a debt facility.
The Federal Government has handed down a 2023-24 Budget which forecasts a surplus of $4.2 billion and higher than anticipated reductions to gross debt.
The Chamber of Minerals and Energy of WA (CME) Chief Executive Officer Rebecca Tomkinson said the significant contributions of the mining and resources sector had helped the Government deliver $14.6 billion in cost-of-living relief among other key budget measures.
“When commodity prices are high, Australia wins. The resources sector pays more than 30 per cent of Australia’s total company tax income to improve our nation’s budget bottom line,” she said.
“Commodities remain crucial to the prosperity of our economy and go hand-in-hand with the focus on further developing our critical minerals capabilities as the world continues to decarbonise in line with the Paris Agreement.”
Mining and resources make up 69 per cent of all Australian goods and services exported, up 3 per cent from the previous year.
Ms Tomkinson said Western Australia played a leading role in every one of these export markets, reinforcing the view that the State is the engine room of the Australian economy.
Australian resource and energy exports are forecast to set a record of $464 billion in 2022–23, comprising:
Iron ore: $133 billion, with export volumes forecast to increase by 1.9% annually over the outlook period to 2028. Since the 2019 budget, higher-than-expected iron ore prices have primarily led to increased company tax receipts, growth in nominal GDP and supported Australia’s favourable terms of trade.
Oil and Gas: A combined $106 billion, with forecasted growth in global demand for both commodities through to 2028.
Gold: $25 billion, with production forecast to increase to a peak of 336 tonnes in 2024–25.
Critical Minerals: A combined total of more than $47 billion across aluminium, copper, nickel, uranium, zinc and lithium. Demand is also set to increase, with lithium alone forecast to triple its export earnings this year — from $5.3 billion in 2021–22 to $18.6 billion.
Ms Tomkinson welcomed the Government’s investment in Australia’s energy transformation and its commitment to establish Australia as a renewable energy superpower, with strong strategic industries in global supply chains.
“CME and its member companies are incredibly proud of the role that WA’s mining and resources sector plays in making a positive difference to people’s lives across the nation.
“There are a range of initiatives, announced both in the lead-up to the budget and tonight, which are a clear recognition of the critical role our commodities will play in a low carbon future.
“These include the $2 billion Hydrogen Headstart program, which aims to position Australia as a world leader in producing and exporting hydrogen power, as well as funding for the operations of the Critical Minerals Office and the development of a Future Gas Strategy.
“Measures announced in the budget will help build the sector’s workforce of the future and foster the use of new technologies to deliver lower emissions energy.”
However, Ms Tomkinson said governments will need to be prepared to do more to maximise these opportunities to ensure Australia realises its ambitions of becoming a renewable energy superpower.
“While the acknowledgement of the critical role commodities will play in this is welcome, there are few budget measures which will materially address the increasingly intense competition for global capital, stagnant productivity growth, and the increased costs and uncertainty flowing from cumulative impact of regulatory changes and persistent regulatory and administrative inefficiencies,” she said.
CME notes the budget also includes new revenue measures, namely the previously announced changes to the Petroleum Resources Rent Tax (PRRT).
This measure is expected to generate an additional $2.4 billion in revenue and add to the already record levels of PRRT revenues, bringing the total forecast to be raised to $13.4 billion over the forward estimates.
“Western Australia’s energy industry is already a major economic contributor to both state and federal revenue, delivering billions to Federal and State governments through taxation measures and royalties,” Ms Tomkinson said.
“The Western Australian mining and resource sector provides tens of thousands of jobs, makes significant investments in local communities and has funded major infrastructure throughout the state.
“It is critical that governments continue to provide supportive fiscal and policy settings to secure future investment and ensure the long-term sustainability of these critical industries.”
Other significant announcements contained in the budget, or unveiled in the lead-up to it, and welcomed by the Western Australian mining and resources sector include:
• Housing (Build-To-Rent Developments) – Decrease receipts by $30 million and increase payments by $4.3 million over five years including increasing the capital works tax deduction depreciation rate from 2.5 to 4 per cent per year for eligible new build to rent projects.
• $80.5 million over 4 years from 2023–24 to support the Australian critical minerals sector to build diverse and competitive supply chains, attract international investment and transition to net zero.
• $2.2 million for Treasury to establish data analysis capabilities, to track foreign investment patterns and compliance in the critical minerals sector.
• $6.7 million to develop a Future Gas Strategy to support Australia’s energy system to reach 82 per cent renewables by 2030 and become cleaner, cheaper and more reliable while maintaining our international reputation as a trusted energy supplier to the region.
• Kimberley flood support, under a joint collaboration with the WA Government, to fund 20 positions under the Community and Industry Recovery Officer Program.
The Chamber of Minerals and Energy of Western Australia is the peak resources sector representative body in Western Australia. CME are a member-funded, not-forprofit organisation representing the views and the needs of members.
CME leads policy development on issues impacting the sector, promotes the value of the sector to the community, and provides an avenue through which members and stakeholders collaborate.
Since its formation in 1901, CME has continued to give members a unified voice, ensuring the priorities of the resources sector are well understood and its role as a driver of the Western Australian and national economy continues into the future.
Today, CME’s member companies generate 95 per cent of all mineral and energy production and employ 80 per cent of the sector’s workforce in the State, with their mining activities spanning from the Kimberley to the Pilbara, Goldfields and to the South West of WA.
The Australian Federal Budget paves the way for much-needed new gas supply, recognises low-carbon hydrogen and carbon capture, utilisation and storage (CCUS) as crucial to net zero and confirms the growing economic contribution of the oil and gas industry to the nation’s finances.
Australian Petroleum Production & Exploration Association (APPEA) Chief Executive Samantha McCulloch said the new Future Gas Strategy showed the government had listened to industry concerns and recognised the urgent need for a strategy to secure new gas supply to avoid shortfalls in coming years.
“New gas supply is essential to keep the lights on, put downward pressure on prices and deliver substantial economic benefits in the transformation of our energy system for net zero,” Ms McCulloch said.
“The national strategy announced tonight is a response to independent reports and authorities warning of gas supply shortfalls and allows for a coordinated policy response.
“APPEA has been calling for a new supply strategy and looks forward to working constructively with the government as part of this process.”
The Budget allocates $2 billion to accelerate the development of low-carbon hydrogen in Australia and to catalyse clean energy industries.
Ms McCulloch said: “Low-carbon hydrogen has a critical role to play in reaching net zero, in particular in hard-to-abate industries and manufacturing.
“The oil and gas sector is pivotal in scaling up and rolling out low-carbon hydrogen in Australia and globally, with natural gas combined with carbon capture representing the most developed and lowest cost pathway to low-carbon hydrogen available today.”
The Budget also recognised the importance of CCUS, with a review of regulations to enable CCUS investment – as highlighted by APPEA in its 2023-24 Federal Budget Submission.
However, the Budget fell short of committing to a national CCUS roadmap in partnership with industry to provide the clear policy direction needed to promote Australia as a regional carbon storage leader.
Ms McCulloch said: “We share Australia’s commitment to reducing emissions to achieve net zero across the economy by 2050 and CCUS will be a key tool.
“Global momentum for CCUS is growing and Australia must not miss the emissions reduction and economic opportunity of an emerging CCUS industry that creates new jobs and investment.”
APPEA also welcomed the review of environmental management regulations for offshore energy to provide clarity for major supply projects. Budget papers show that since the October budget Petroleum Resource Rent Tax receipts have been revised up $300 million in 2023-24 and $2 billion over the five years from 2022-23 to 2026-27 before adding the extra $2.4 billion of PRRT forecast to be collected as a result of changes to the regime.
The tax is only one part of the growing total industry economic contribution, which was forecast before the Budget to almost triple to $16.2 billion this year after steep rises in corporate income tax, PRRT, royalties and excise since last year.
“Tonight’s extra measures will deliver more revenue to the Budget earlier, again helping the government fund policies like costof-living relief and build important infrastructure like schools and hospitals,” Ms McCulloch said.
“Gas companies are among the biggest taxpayers in Australia and their role in delivering economic benefits across Australia is again shown in tonight’s Budget.”
Zenith Energy Pty Ltd (Zenith Energy) recently received a Letter of Award from Liontown Resources to build, own, and operate what is expected to become the largest off-grid renewable energy hybrid power station in Australia at Liontown’s Kathleen Valley Project.
Zenith Energy Pty Ltd (Zenith Energy) has received a Letter of Award from Liontown Resources to build, own, and operate what is expected to become the largest off-grid renewable energy hybrid power station in Australia at Liontown’s Kathleen Valley Project.
The award will see Zenith Energy construct a 95MW hybrid power station at Kathleen Valley in WA’s Goldfields-Esperance region, which includes 30MW of wind capacity, 16MWp fixed axis solar PV array, and 17MW/19MWh battery energy storage system (BESS).
The partnership will allow Zenith Energy to demonstrate its innovation, flexibility, and expertise to deliver low-carbon emitting hybrid power solutions.
We are proud to continue to play a lead role in the energy transition, and to provide like-minded partners with a glide path to Net Zero.
The project also further demonstrates our continued commitment to increasing the proportion of renewable generation in our portfolio.
The thermal components of the power station are designed to operate in ‘engine off’ mode at various times, delivering 100% renewable energy generation to Kathleen Valley.
It’s an exciting opportunity for Zenith Energy to showcase our expertise, and the ability of renewables to deliver reliable, continuous supply, to power an entire mining operation. \
We believed it will once again raise the industry benchmark in renewable energy integration and demonstrates our commitment to power decarbonisation.
Largest Off-Grid Hybrid Power Station in Australia: The hybrid power station is currently expected to have the largest off-grid renewable capacity of any mining project in the country, with 46MW + 17MW BESS.
Renewable Incentives: A combination of incentives to produce renewable power over thermal power together with a renewable energy guarantee will allow Liontown to meet and exceed its renewable energy factor target of 60% at startup and beyond.
Zenith Energy is engaged with Traditional Owners, recently announcing a collaboration with Tjiwarl Contracting Services to work together to deliver low carbon emission power solutions for miners and communities on Tjiwarl native title determined lands.
Zenith Energy and Liontown have agreed key commercial terms and are working to finalise arrangements under a binding long term Build, Own and Operate (BOO) Power Purchase Agreement. Zenith Energy and Liontown Resources are working closely with traditional owners Tjiwarl (Aboriginal Corporation) RNTBC to ensure this, and all engagement is respectful and collaborative.
Image Sources: Zenith Energy and Liontown Resources
Liontown Managing Director and CEO Tony Ottaviano says Liontown is delighted to partner with such an experienced and highly competent power producer.
“We believe Zenith Energy is an ideal partner to delivery an industry leading hybrid power station to meet Liontown’s energy needs and requirements for a high-capacity renewable solution.”
“The hybrid power station proposed will enable Liontown to exceed our target of achieving at least 60% renewable energy at Project start-up and beyond.”
A 43-kilometre section of the Parmelia Gas Pipeline is a step closer to being one of the first gas transmission pipelines in Australia to be converted to a pure hydrogen service, with APA Group (APA) announcing it has successfully completed pressurised hydrogen testing.
Laboratory testing conducted by APA, the owner and operator of the Parmelia Gas Pipeline, has successfully proved that it is technically feasible, safe and efficient to run the southern section of the pipeline at the current operating pressure using pure or blended hydrogen.
The 43-kilometre section of the pipeline being considered for conversion runs between the Kwinana Industrial Area and the Alcoa Pinjarra Refinery.
The testing was conducted as part of APA’s second phase of research into converting the section of pipeline and was partly funded with $300,000 from the WA Government’s Renewable Hydrogen Fund.
The WA Government is investing more than $170 million to accelerate the growth of Western Australia’s renewable hydrogen industry and meet the commitment to achieve net zero emissions by 2050.
The pressurised hydrogen testing was undertaken at Australia’ first dedicated hydrogen test laboratory at the University of Wollongong, in partnership with the Future Fuels Cooperative Research Centre.
The next phase of the project will consider preparing the pipeline for hydrogen service, including detailed conversion plans and safety studies, while continuing to investigate potential supply and offtake opportunities.
To read the public knowledge sharing report for APA Group’s Parmelia Gas Pipeline Hydrogen Conversion Project Technical Feasibility Study, visit https://www.wa.gov.au/government/ document-collections/public-knowledge-sharing-reports-warenewable-hydrogen-fund
State Development, Jobs and Trade Minister Roger Cook said “The Parmelia Gas Pipeline Hydrogen Conversion Project has the potential to be Western Australia’s next big renewable hydrogen first. The study will help in re-purposing some of our existing gas pipeline infrastructure for use in future hydrogen transmission.
“The project is a prime example of how funding from the WA Government is helping to ensure that the State reaches its potential and becomes a renewable hydrogen powerhouse.
“The McGowan Government is investing in projects across the renewable hydrogen supply chain to support Western Australia’s emergence as a significant producer, exporter and user of the clean energy source.”
Mines and Petroleum Minister Bill Johnston said “The results from APA’s pressurised hydrogen testing on the Parmelia Gas Pipeline is great news for the State’s renewable hydrogen industry and our transition to a sustainable, net zero economy.
“Western Australia has a vast gas pipeline network. Hydrogen blending into natural gas networks to support decarbonisation is a strategic focus area for the WA Government.
“Progress continues to be made on a Renewable Hydrogen Target for Western Australia, which will aim to drive local demand and assist emerging hydrogen production projects.”
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Article and Images: Len Fretwell
len.fretwell@diggingdrilling.com with any queries or suggestions.