CELEBRATING 22 YEARS | FEB/MAR 2017

OPEN GRYLL Iron ore fees under the microscope ahead of March’s WA state election

MID-TIER RISES What next for the miners in the middle?

PILBARA WATER WORLD Inside Roy Hill’s award-winning $10bn RRP $4.40 (GST included) water management network

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CONTENTS DISCLAIMER The views expressed in this publication are not necessarily those of The West INDUSTRY INSIGHT – ON THE GRYLL 4 Australian, but are those of the respective author who accept sole responsibility and liability for them. COVER STORY 6 NOTICE TO ADVERTISERS ROY HILL AND WATER INNOVATION The Australian Consumer Law (ACL) came into force on 1 January 2011. Published by There are important provisions in that Act which contain strict regulations on MID-TIER MAKES ITS WAY BACK 10 advertising and all advertisers and advertising agents are advised to study ABN 98 008 667 632 | GPO Box D162 Perth WA 6840 those provisions WORKING CAPITAL 12 very carefully. Phone +61 8 9482 3938 | www.nationalminingchronicle.com.au It can be an offence for anyone to engage, in trade or commerce, in conduct AMEC COLUMN - SIMON BENNISON 13 “misleading or deceptive”. In particular Section 53 contains prohibitions from Editor Louise Allan doing any of the following in connection with the promotion, by any means, of DRONE TECH IN THE MINING SECTOR 14 the supply or use of goods or services: [email protected] PUTTING METS SECTOR ON THE MAP 15 (a) Falsely represent that goods or services are of a particular standard, quality Project Manager Troy Douglas +61 8 9482 3933 or grade, or that goods are of a particular style or model; (b) Falsely represent that goods are new; AWARD-WINNING SEED FLAMER DEVICE 16 [email protected] (c) Represent that goods or services have sponsorship, approval, performance characteristics, accessories, uses or benefits ENGINEERING GRADUATE CYCLE 18 Resources Lead Journalist Jack McGinn they do not have; [email protected] (d) Represent that he, she or it has a sponsorship approval or affiliation he, she PUTTING A STOP TO SCAM JOB SITES 19 or it does not have; Journalists Sandra Argese, Cassie Gunthorpe (e) Make false or misleading statements concerning the existence of, or LITHIUM AND HANDHELD LIBS TECH 20 Kaitlin Shawcross, Chris Thurmott, Chloe Vellinga amount of, price reductions; (f) Make false or misleading statements concerning the need for any goods, TECHNOLOGY AND INNOVATION 21 Subeditor Rhys Graeme-Drury services, replacements or repairs; WATER IN MINING 26 Creative Lead Designer Gemma Medforth (g) Make false or misleading statements concerning the existence or effect of any warranty or guarantee. Designer Cale Arnold SAFETY IN MINING 28 PENALTIES CRUSHING, SCREENING AND CONVEYING 30 Printed by Vanguard Press For an individual – $10,000 or six months imprisonment. For a corporation – $50,000. It is not possible for this company to ensure that advertisements PNG FOCUS 32 Next issue April/May 2017 which are published in this newspaper comply with the Act and the responsibility must therefore be on the person, company or advertising agency BULLS N BEARS – MATT BIRNEY 33 The copyright is vested in the Proprietors of The Mining Chronicle; neither submitting the advertisements for publication. In case of doubt consult your whole nor any part of this issue may be reproduced without permission. lawyer. SPOTLIGHT ON VANADIUM 34 BUSINESS DIARY 35 Average Net Distribution PEOPLE AND PROJECTS 36 April 2012 - March 2013 | 5112 copies OUT AND ABOUT 38

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Brendan Grylls.

BY JACK MCGINN such competitive advantage would be lost with an increase David Flanagan told The Australian’s Andrew Burrell in to the lease rental fee, which the CME has labeled a $7.2 October he had little sympathy for Rio or BHP because of The debate around Western Australian iron ore royalties billion tax. their alleged tax avoidance methods and interactions with has raged from the moment Brendon Grylls reassumed smaller miners on infrastructure. leadership of the WA Nationals from Terry Redman in “The new tax will hurt, not help Western Australian August last year. regional communities,” he said in a media release. While the industry has been overwhelmingly dismissive of the plan to increase the fee, early polling suggests the “Western Australia would officially become one of the least Conversation around Mr Grylls’ proposed increase to a public has taken a more sympathetic view to any plan attractive destinations for investment in the world. It would lease rental fee paid per tonne of iron ore mined in WA 20- around it. fold from 25c per tonne to $5 per tonne sparked passionate undo in one fell swoop the efforts of successive Western campaigns on both sides of the fence and appears likely to Australian governments of both political persuasions to A survey of more than 1700 people conducted by come to a head on March 11, when the state hits the polling develop the great iron ore province of the Pilbara.” ReachTEL late last year on behalf of The West Australian booths to vote on the makeup of its next government. recorded support for the plan, with 45.4 per cent in favour, CME WA argues that adding to the already significant taxes 31.5 per cent opposed and 23.1 per cent undecided. Needless to say the WA Nationals won’t ‘win’ the election imposed on BHP and Rio would make investment in WA outright and wouldn’t harbour any ambition to do so. The less lucrative, and make the state’s iron ore royalties seven Whether these early figures translate to votes on March 11 fate of their ambitious lease rental fee increase rests in times higher than those in Brazil. remains to be seen. the performance of the major parties on March 11, and the The sentiments of CME WA are echoed by Minerals parliamentary balance of power. Professional opinions Council of Australia Chief Executive Brendan Pearson. Analysis commissioned by the Minerals Council of Such was the case in 2008 when a hung parliament “The Grylls tax would represent a gold-plated gift to Australia and conducted by Deloitte Access Economics resulted in a WA Nationals partnership with the Liberals Australia’s iron ore competitors, most notably Brazil,” he was critical of the proposal to up the lease rental fee to $5, and the negotiation of WA’s Royalties for Regions program, said. saying the increase would not have the intended effect a WA Nationals initiative delivering significantly increased long term and could actually take the nation’s iron ore funding for rural areas of the state. “With iron ore accounting for 16 per cent of Australia’s industry backwards. export income, this tax would represent a massive While both major parties have talked it down so far, should self-inflicted wound on both the national and Western Deloitte argues that while increasing the fee would increase the balance of power again fall to the hands of the WA Australian economies.” the revenue it generates in the short term, the long game is Nationals following the state election, the iron ore royalties less lucrative for the WA economy. platform would surely make part of any negotiation. In keeping with these themes, rhetoric has been overwhelmingly negative from the majority of industry Deloitte’s report highlights the impact of GST distribution A change to the lease rental fee wouldn’t impact all WA affiliated groups and figures, though former BC Iron boss on the profitability of the fee to the state’s economy; a iron ore operators as the fee is only applied after 15 years of operation at a site. As it stands, the proposal would affect BHP Billiton, Rio Tinto and Cliffs Natural Resources with more to follow as tenures in the region grow longer. A matter of perspective Industry bodies have been quick to vocalise their disapproval for an iron ore lease rental fee increase, with the Chamber of Minerals and Energy WA spearheading a campaign against it for fears of its impact on the jurisdiction’s investment attractiveness and jobs. In a survey conducted last year by Canadian think tank The Fraser Institute, WA claimed the title of the world’s number one mining investment jurisdiction, beating out Canada’s Saskatchewan and Nevada in the US. Reg Howard-Smith. David Flanagan. According to CME WA Chief Executive Reg Howard-Smith, 5

royalty raise would initially generate revenues of around $2.3 billion a year, but WA would be expected to see less than $300 million of that figure. Long term impact on the nation’s iron ore sector were also raised. While most iron ore mines that have run longer than 15 years are likely to be lucrative operations with high profit margins, Deloitte said the likelihood was that towards the end of their lives, this margin would shrink and the fee more damaging, closing mines earlier, detracting new investment and costing somewhere in the order of 7200 jobs nationally over time. These arguments were countered in a report by David Richardson from independent think tank The Australia Institute, which held the view that an increase to the iron ore levy would not be a bad thing for the state or nation in the short to medium term, and also picked apart perceived flaws in Deloitte’s argument. Mr Richardson states that in the short term, miners impacted wouldn’t have incentive to change their behaviour as their costs are far lower than the prices received per tonne of iron ore. “When and if the old mines become marginal there is more than enough time for a government to change the tax arrangements if it so wishes,” he said. Analysis by The Australia Institute said if the additional state revenues generated by the tax were to be invested in infrastructure projects, an extra 4600 jobs would be created. Whatever the case, there will be plenty of interested industry eyes on the outcome of the WA State Election in March and the influence of Grylls and his state Nationals The proposed ‘Grylls tax’ on iron ore is an important talking point ahead of the WA State Election. thereafter. NMC PLODtrack Mine Data Tracking & Reporting

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in water

Pilbara miner Roy Hill is leading the charge in developing water management systems. management

BY JACK MCGINN dewatering operations which extends across most the of “If you don’t get dewatering right, you can’t mine,” he said. the mining tenement, covering some 300 square kilometres. National Mining Chronicle They certainly got it right at Roy Hill if initial production Resources Lead Journalist And while public focus may sit on the headline figures – and the results of the 2016 Bentley Systems Be Inspired of production tonnage and production cost, the water Awards, where the project took out the Innovation in Water While the Pilbara region has a reputation for its dry climate, management system at Roy Hill is a vital, efficient Network Analysis category – are anything to go by. there is no shortage of below-ground water in the nation’s component in achieving both – and any mining at all. iron ore heartland – a factor the majority of sector operators Roy Hill’s extensive water supply and dewatering network grapple with on a daily basis as they move further beneath “After the composition of geology of the ore body, water was one of two Australian recipients of a Be Inspired the water table. management is the next most important area for any mining Award, which offers global recognition for the world’s operation,” Roy Hill Engineering Services Water Planning most outstanding advancements in infrastructure design, One organisation leading the way on water management Engineer Craig Nelson told National Mining Chronicle. construction and operations. systems in the region is relatively new entrant Roy Hill, at its much-publicised $10 billion, 55 million tonne per With costs a particular focus for iron ore producers in annum namesake iron ore project. a volatile commodity price environment, the water Roy Hill received plaudits management team at Roy Hill received plaudits for For Roy Hill, the maintenance of a one-metre barrier carefully modelling and designing the mine’s water system between the pit floor and water table was a stipulated for carefully modelling and to be efficient and cost effective. requirement prior to project funding was granted. designing the water system to The model and design was carried out in partnership with A budget of $60 million was set aside for the establishment Bentley Systems using WaterGEMS hydraulic models – a of an effective and adaptable water management system be efficient and effective. system which allows the team to model current and future at the mine – an integrated network of water supply and scenarios, enabling optimal pipe size and pressure ratings. Cont on page 8...

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“Roy Hill optimised pipe sizes and pressure rating in the design process using WaterGEMS hydraulic models,” Mr Nelson said. “By doing this and reducing the pipe size by one of Roy Hill’s preferred standard dimensions or pressure rating, it can save as much a 33 per cent in material costs. “Roy Hill also utilised fit for purpose, cost-effective designs and strategies – we removed the ‘bells and whistles’ where they were not required. “Most recently we have begun using variable speed gensets to reduce fuel consumption on bores at yield drops.” WaterGEMS is also used to optimise the running order of supply bores to lower running hours and fuel consumption. Modelling through WaterGEMS allowed the Roy Hill The award-winning water management system in action. water management team to more quickly understand the implications of its decisions, and avoid delays to mining operations and risks to the dewatering network. Under the hood WaterGEMS is also used to While the water management system at Roy Hill is dewatering isn’t expected to begin until 2018. currently up and running, there is plenty of room and As is evident from its award-winning water management optimise the running order of requirement to expand as the company takes the project system, Roy Hill has learned plenty in the space from other forward; the system will be adapted to meet transitioning supply bores to lower running operators in the region and around the globe. requirements over its life. hours and fuel consumption. However, Mr Nelson said the company’s philosophy in “By any measure the scale and complexity of the Roy Hill water management would be to continue to expand on the project is at the large end of the spectrum,” Mr Nelson said. lessons learned and strive to deliver the best possible result Based on the modelling, significant cost savings are “There are currently 79 bores and around 56km of for the project. expected across the 20-year initial life of the project, pipelines – our estimated peak is 213 bores which would “Roy Hill as an organisation is constantly seeking to including $16 million by better modelling and designing see us expand to approximately 220km of pipelines. improve on the status quo and innovate where possible,” the system’s operating pressure; $10 million in reduced “The Roy Hill minesite is currently providing up to 60 he said. equipment costs; $1 million in redesigns and alterations; million litres of water per day. Dewatering is required to and $20 million in operational expenditure and a further “At the mine, we manage fresh and saline water separately operate 24/7 to achieve drawdown targets, while supply 20 per cent in operating run hours and fuel use. as the water quality feed to the process plant is important bore priorities are changed to ensure the system runs for the final product quality. Mr Nelson said the company hoped to use WaterGEMS for evenly and efficiently.” further applications moving forward. “We are currently trialling in-ground methods to reduce Part of the challenge for the system is the handling of both aquifer permeability and the amount of water needed to be “Looking to the future we would hope to monitor raw and saline water. Each are to be managed by a separate abstracted. water quality changes to ensure we are meeting supply set of bores – 138 raw and 75 saline at the estimated peak of obligations and defer treatment and disposal requirements 213 – with the dewatering system turning more saline the “We are also taking a unique utilities approach to hydraulic as long as possible,” he said. deeper and further southwest the project develops. Saline modelling, rather than the ‘normal’ mining approach.” NMC

Roy Hill water management system

Up to Up to At peak operation 22 million 34 million 213 $440 $60 $4 litres litres bores million million million high quality water lower quality water will pump around 140 water management sustaining upfront capital cost to ongoing operation budget, requirement per day requirement per day million litres of water capital budget over initial 20- establish Roy Hill water including fuelling and per day year life-of-mine management network servicing costs Under the hood

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Mining Chronicle magazine. 161mmH x 231mmW 10 Mid-tier makes its turn

BY JACK MCGINN Mining Leader Chris Dodd said on the release of Aussie Mine 2016. Are the tumultuous times over for Australian mining’s mid- tier and all those businesses depending on it? “Increases in market value, capital expenditure and ordinary dividends all point to confidence returning.” National Mining Chronicle Resources Lead Reporter Jack McGinn delves into Pricewaterhousecoopers’ Aussie Mine FY2016 saw a 23 per cent increase in market capitalisation report to get the low-down on what’s being described as of PwC’s mid-tier 50, driven largely by investor confidence the sector’s ‘next act’. in gold – in part on the back of aforementioned global volatility – and the emerging lithium space. 2016 was, in many ways and places, a year in which the systems by which the world has come to function were Premium of market capitalisation over net assets was up turned on their head. from 3 per cent to 47 per cent. In Europe there was Brexit and in the US the election Impairments of $2 billion were recorded in FY16 among of Donald Trump; both seemingly against all odds but those companies surveyed, but the result represented a 36 Chris Dodd. the result of groundswell of discontent with the way per cent fall from FY15’s record of $5.5 billion. things were and a wave of nationalism which somehow In a positive sign for investors, ordinary dividends jumped the industry has a number of challenges to face as it continued to catch observers off-guard. 21 per cent while capital expenditure grew 37 per cent in a navigates a world in which prices are increasingly volatile, There were also big losses in popular culture; David Bowie, reflection of management confidence in existing projects. demand is harder to predict and stakeholder mistrust is a Prince, Alan Rickman, Lemmy Kilmister, George Michael, growing factor in project operation and development. With the exclusion of an outlier, net cash position of the Carrie Fisher and Debbie Reynolds were among those who mid-tier increased by five per cent. Mining’s ‘brand’ is expected to be a particularly prominent passed. factor moving forward – vocal public opposition to PwC said the signs indicated a looming turnaround, though The merit of these matters and whether they could the development of Adani’s Carmichael coal mine in an aggregated net loss of $1 billion showed there was still possibly be in any way the fault of a calendar year is a Queensland, for example, shows much work is to be done work to be done. debate for another day, or another publication, but on the in re-engaging a public increasingly conscious of the surface it would appear the western world witnessed some “Against these tough market conditions a turning point industry’s environmental impacts. significant and visible change last year. appears to have been reached in 2016 with impairments But PwC says influence of activism stretches further than down by 36 per cent,” Mr Dodd said. If PwC’s annual and well-respected Aussie Mine report is protesters and placards; public pressure from groups has anything to go by, 2016 (the financial year, at least) was as Entering the third act resulted in funding difficulty, as seen at Carmichael, while transformative for Australian mining’s middle tier as it was governments need to balance the interests of the public divisive in other areas. PwC has split the last 10 years into three distinct periods and industry. of performance, with a first act from FY07 to FY11 in which Celebrating its 10th year, Aussie Mine tracks the The report also cites the example of the collapse of the industry grew and soared on huge demand from China; performance of Australia’s 50 biggest ASX-listed miners Queensland Nickel’s refinery in Townsville earlier in and a second from FY11 to FY15, when global growth with a market value under $5 billion each financial year. 2016, which contributed to the passing of the Chain of slowed and volatility prevailed. Responsibility bill in the state to force key stakeholders to Coming off the back of a difficult run characterised Conditions at present are considered the beginning of a meet their obligations in terms of project rehabilitation. by depressed commodity prices and the end of an third act as gold, coal, aluminium, nickel, copper and iron unprecedented construction boom, things have been In public dissatisfaction lies opportunity, and PwC ore prices all rose in FY16. difficult for many in the sector in recent years. recommends setting aside the tried and tested “The downturn has stabilised and investments made are conventional means of viewing business and the However, on the back of the performance of its mid-tier showing rewards for miners who controlled costs and environment, giving significant thought to the future while top 50 list in 2016, PwC is heralding the end of the worst strengthened their capital position,” the report said. operating in the present. and a transition to better times for Australia’s all important middle tier miners. “This is the bottom of the cycle and the mid-tier 50 are “The backdrop for mining has never been this challenging,” about to write a new story.” the report said. “With the brand of mining this damaged “We’re seeing signs that the mid-tier has hit the bottom, there can be no exceptions. survived the worst and is now making a comeback,” PwC What will that next story actually be? According to PwC, “In our view all companies should accept their social burden and proactively self-regulate on rehabilitation.Only then will the industry take a step towards winning back the public’s trust.” The emergence over the next decade of savvy new companies capitalising on low-entry barriers to challenge traditional operators is seen as one potential future for the industry.

The collapse of Clive Palmer’s Queensland Nickel refinery contributed to changes made to state legislation in terms of rehabilitation responsibility. Image: The West Australian.

Hard rock lithium demand has changed the dynamic of the Deloitte Mid-Tier 50 list. 11

Where there’s risk there’s also potential reward; tools like Blockchain could one day allow consumers to trace the source of materials used in cars to an individual mine. “Is it possible that an Australian mid-tier copper producer, boasting an environmental five-star rating on its flagship mine, will sell the output from that small, low-cost mine directly to Toyota at a 20 per cent price premium for use in the ‘really green’ 2025 model Prius?” PwC ponders in its Aussie Mine report. While the social licence debate seems dominated by majors, this year’s mid-tier 50 holds more projects in Australia than Rio Tinto and BHP Billiton combined. PwC suggests these companies could “take up the fight” Rio Tinto’s Energy Resources of Australia is one of the survivors from the original 2007 Mid-Tier 50 list. Image: Rio Tinto © 2016. in the coming years and show the public that they can operate safely, responsibly and sustainably without overdone regulation and oversight. Only 11 miners survive from the inaugural Aussie Mine report, with 22 of the original companies since acquired by Mid-tier survivors “The players that can embrace technology and innovation others and two having merged. as the new norm and rebuild the public’s trust in the Eleven companies remain in mining’s ASX- industry to be socially responsible operators will be best- Of the 10 companies which have fallen out of the 50 since listed mid-tier from 2007, when the first Aussie placed for success,” Mr Dodd said. 2007, three operate in iron ore. PwC said this was a reflection Mine report was published. These are Paladin of the impact majors squeezing out the mid-tier operators Resources, Energy Resources of Australia, in the space. Three from 2007 class entered external One decade down Mount Gibson Iron, New Hope Corporation, administration, while two were delisted from the market. A telling sign of how quickly things change in the mining Zimplats Holdings, Iluka Resources, sector is the comparison between the list of top 50 mid-tier Meanwhile, Orocobre was joined by four new lithium Independence Group, Western Areas, St Barbara, companies used in the first and most recent Aussie Mine entrants in the 2016 mid-tier 50 list, highlighting the Lynas Corporation and Resolute Mining. reports. increased popularity of the commodity in the market. NMC

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BY JACK MCGINN miners are dealing with are simply being transferred to their creditors, Mr Ireland said companies were playing Australia’s miners notably reduced their average days within the parameters of what they’d done previously and working capital in the 2016 financial year by paying their what the industry allowed them to do. creditors later, according to a report from advisory firm McGrathNicol. “This is not new – if you have a look at 2015 it’s not a fundamental change,” he said. The report, which highlights the working capital cycles across nine Australian industries, revealed the nation’s “In 2015 they took 27 days to collect and paid at 64 – it’s miners sat alongside transport & distribution as the biggest more a tweak than a reversal of the whole process. improvers when it came to lowering DWC – the measure of “It appears to me that this is just a fact of the mining and the days it takes to convert working capital to cash. resources sector, that they enjoy being able to collect Average DWC across the 22 mining companies assessed quickly and also take their time to pay people. in the McGrathNicol Advisory report improved by 5.9 “The key for suppliers to the sector is to make sure they Jason Ireland. days in FY2016 to 45.8 days – one of the largest reductions have all of their internal processes working as well as recorded for the period. possible so their own inefficiencies do not contribute to the It’s welcome news for an industry which has in recent time it takes to get paid” in FY15 to 24.8 days in FY16 on the back of strong performance and record production. times experienced a sustained period of low commodity In a somewhat welcome sign for suppliers, there does prices, and was one achieved in large by expanding appear to be parameters on what miners can achieve by At the other end of the scale was Evolution Mining, whose payment cycles to suppliers. extending their payment cycles. Backlash at a proposal by DWC grew 21.3 days from 17.4 days to 38.7 days during an While reducing their revenue collection timeframes by an Rio Tinto to double its payment terms from 45 to 90 days acquisition-heavy, transformative year. in April 2016 resulted in significant public pressure and a average of 1.4 days to 25.7 days, the miners included in the Evolution’s result was driven by an increase in inventory backflip by the multinational in addition to a promise to report pushed their payment cycles out by an average 3.6 days to 70.9 days in FY16, up from 47.4 the previous year. days on the previous year’s results to 68.2 days – collecting negotiate new arrangements to “maintain the competitive revenue quicker while simultaneously taking longer to pay of our business and our future ability to develop assets”. The majors performed in contrast with one another; Rio Tinto recorded a 10.8-day reduction in DWC to 30.4 days their suppliers. Rio had extended its payment terms from 30 to 45 days on the back of lengthening the time it took to pay creditors the previous year. BHP Billiton doubled its contractual Report author and McGrathNicol Advisory Partner Jason by 5.7 days to 33.6 combined with improvements in both payment terms to 60 days in August, after the data was Ireland told National Mining Chronicle the mining industry collections and inventory days, while BHP’s DWC grew 5.1 collated but a move forewarned in November 2015. sample stacked up differently when compared with other days to 20.3 days due to a 42.5-day reduction in payments areas of Australian business. While Mr Ireland conceded there was only so far payment days. they could be pushed, he said it was good practice to try “This is a sector where, because of the size of many of the However, Mr Ireland said the figures were not always and manage working capital cycles. operators and because of recent history, many participants comparable as a result of different accounting treatments, use mining services businesses to provide supply and they Lessons to learn inventory management structures, policies and other pay them slowly,” he said. “The miners often make sure influencing factors. they receive their money before they pay their contractors.” While the averages suggest mining has a good grasp of its DWC cycles, Mr Ireland said the diversity of results “The result is unusual because in all other sectors that Room for improvement indicated a sector where there were lessons to be learned achieved an improvement in days working capital bar While mining was among the better performers in from industry peers. one, the improvement was predominantly achieved by improving working capital over FY16, Mr Ireland said collecting more quickly. “There are big differences within the mining industry there was potentially further room for improvement in between the best and worst performers,” he said. inventory. “Mining and resources did collect more quickly – I made a comment in the report that this is one of the fastest “Maybe some in the mining industry could look at the On average, the miners surveyed increased their days collecting sectors and they still made an improvement by working capital cycle of other operators in their industry inventory by 1.1 days to 100.4 days over the 12-month 1.4 days, which is excellent – but they made their biggest and try learn from them.” period. improvement by slowing down payments to creditors.” Whitehaven Coal recorded the largest improvement, “The largest number in the net working capital calculation While it may look as though any working capital problems reducing its DWC by a staggering 40.3 days from 65.1 is the cash tied up in inventory,” Mr Ireland said. “If you look at the DSO (days it takes to collect revenue) Top 5 DWC improvements – Mining and Resources you might wonder if they could really collect much more quickly than that,” he said. 160 “Then you might question whether their creditors will 140 withstand much more of an increase in how long it takes to get paid? Maybe, maybe not. 119.4 120 “Then you look at DIO – the biggest element of working capital – that’s where there’s potential improvement, I 100 think.” 80 74.0 Addressing inventory isn’t the easiest task, but Mr Ireland said companies which took a strong inward focus to what 60 they were doing with their processes would be better 45.8 placed to improve on their figures. 40 24.8 “There’s upside in taking a good look at an internal view 20 12.7 and saying ‘we’ve held this level of inventory forever – 6.6 why? Is there a new model for us to look at?’ Days 0 Whitehaven Yancoal Australia Resolute Mining OceanaGold OZ Minerals Peer group “It’s interesting that it ticked up a little bit this year, but it’s Coal Limited Limited Limited Corporation Limited average clearly an area of the working capital cycle where there DWC at 30 June (or latest available) 2015 2016 seems to be room for improvement.” NMC 13

Federal Government must keep exploration tax offsets for shareholders

BY SIMON BENNISON early 2015. Detailed statistical modelling found that the economic pressure, CHIEF EXECUTIVE OFFICER, ASSOCIATION long run (3-year) cumulative effect of $1million spent on falling commodity OF MINES AND EXPLORATION exploration incentives led to an increase in exploration prices, massive expenditure of $19 million. unemployment, AMEC is calling on the Federal Government to urgently reduced international The EDI review comes at a time when greenfield mineral conclude the Exploration Development Incentive (EDI) competitiveness and exploration expenditure has reached a 10-year low. review and continue this important initiative. The EDI capital investment Greenfield mineral exploration’s share of drilling activity provides Australian resident shareholders of emerging going to offshore and has also experienced a decline over the last decade. mineral exploration companies with a tax offset equivalent competing projects. to the company tax rate. At the same time, following a high of 126 initial public The Federal offerings (IPOs) in 2007, there has been a sharp decline in The EDI stimulates investment in eligible Australian Government must the number of mineral exploration IPOs. There were only emerging mineral exploration companies, making it more support emerging attractive for investors to decide to support the next 12, six, three and eight in each of the last four years. greenfields mineral generation of miners. In order to address this, the Government has exploration companies The mining industry in Australia faces a number of barriers acknowledged the concerning trend and committed $100 and the EDI must be including land access, increasing red tape, rising costs million to the EDI over three years ending 2016/17. continued. NMC and difficulties raising capital. The EDI is part of a suite AMEC believes the Federal Government must extend the of strategies that recognise that a number of Australia’s Exploration Development Incentive programme beyond producing mines are coming to an end and need to be 2016/17. There should be a new funding allocation of at replenished. least $40 million per annum for the 2017/18 year and The cyclical nature of the industry means that investing in provision should be made in the forward estimates for this mineral exploration now is vital to ensuring the discoveries important initiative. It is critical to provide junior mineral that will become the mines of tomorrow are made, exploration companies and their shareholders with providing the jobs and government revenue streams for certainty and predictability in a high risk and competitive the future. investment environment. An independent economic impact study into exploration The mining and mineral exploration industry has Simon Bennison. incentives was undertaken by ACIL Allen Consulting in experienced a period of considerable financial and

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Drone tech takes

Bas de Vos. next step

BY JACK MCGINN drones do more than humans, except for getting into those The technology could be used in a range of mining dangerous areas’, if you combine the technology with all applications; drones are now used in Australia for safety Drones have already carved out a significant niche in the kinds of advanced analytics, visual or computer imaging and surveying, with operators bringing in significant coin Australian mining landscape, but they could soon be doing processing – that’s what we’ve done here with the proof of as demand for the technology grows. more with less human interaction at sites around the concept.” world. But while automating the analytic capabilities of new Mr de Vos said the value of using a drone in the industrial technologies like drones could be seen as detrimental to A trial by IFS Labs, a think tank within Sweden-based IFS sense was significantly boosted when the drone collected long term job prospects in the industry, Mr de Vos said the Research and Development, has taken drone technology to and analysed advanced data such as temperature and systems would likely improve work conditions for people. the next level by combining it with the Internet of Things images as well as accessed areas. to deliver and efficient and reliable proof of concept for “I’m a big believer in implementing technology to support future application across a range of industries, including “What happens a lot is we fly the drone up, we see efficiency and the quality of jobs,” he said. mining. something and then a human being opens their computer “Technology like this could of course lead to places where and starts typing up a work order – that’s something you you could actually do with less people, but there’s a lot of During testing in Europe, a drone was used to detect faults don’t want,” he said. in the flow of power lines before automatically generating a reasons that can impact that. work order based on the irregularity for follow-up. “Sheer processing efficiency can do that, the entire IT Using computer image analysis, the drone was able to industry is a prime example; back in the 60s, people were recognise a break in the power line, and by coordinating Drones are now used in entering data manually on papers in an archive. In the with IFS applications, the end user was able to observe and Australia for safety and 1990s, everyone was data typing and today we are getting process additional information via a work order to action it from IT devices. appropriate maintenance and repair. surveying, with operators in “At the same time more people are working today than While power lines may not be mine specific, it is the demand as technology grows. were working in the 60s. Jobs will go elsewhere but it’s collaboration between the drone, the likes of which are not so much replacing human beings, I think it’s about already used on mining projects, and other systems to making human beings more efficient and effective.” lessen the human involvement in fault detection which “If you have advanced analytics at your disposal you can And while the standard definition of a drone as its come has IFS excited about its application in industry contexts. automatically detect a break in a power line – why can’t you to be known may typically be of a flying machine, Mr then automatically create a work order that’s scheduled “I’m a firm believer in the idea that we should never look at de Vos said thinking for the use of automated analysis optimally and contains all the data from the collection? new technologies in an isolated way,” IFS Labs Director Bas technology could extend further than this in the mining de Vos told National Mining Chronicle. “GPS coordinates, pictures, readings of the surroundings – context. so there’s as little human intervention from discovering the “Yes, if you take a drone today you can already see value in “A lot of people look at drones as things that are flying, but problem to doing that. that – if you look at our power line example, it makes sense if you extend the word drone a little bit more in robotics, that if you have difficult or dangerous areas to access you “That’s basically our proof of concept.” you can also have driving drones,” he said. can take the drones and fly them over without having to By combining a drone with IFS’ Internet of Things Business “Maybe you have a mine underground – you could manually detect problems. Connector – a tool which helps leverage IoT signals, IFS envision a drone driving through dangerous or difficult “But I believe in this idea that one and one equals three was able to automate the hazard identification process areas of the mine which could be used to go through to if you have the correct one and one. If you say ‘what can right down to the work order. the mine shaft or tunnels.” NMC 15

Putting Australia on the METS map

BY CHLOE VELLINGA Tara Diamond said. “Australia has an opportunity to be at “As you undoubtedly know, Australia is blessed with the fore of an increasingly important global industry that mineral wealth and despite being a young nation has As the resources sector continues its struggle with the is driving technology advancements, productivity and managed to build a world leading, competitive mining current commodity market downturn, industry-led, efficiency improvements across all key resource markets.” industry and METS sector. government-funded growth centre METS Ignited is looking to the future to restore growth and confidence within the The plan takes a 10-year view and proposes five broad “However, there is much work to be done to develop and industry. programs the industry needs to work on, which include enhance this legacy for our nation’s future,” the statement said. At the International Mining and Resources Conference in aligned strategy, improving global brand, making the November last year, a 10-year sector competitiveness plan industry internationally competitive, being collaborative “We have an exciting and unique opportunity, with the was launched as a result of extensive research by METS and innovative and looking forward to being a skilled support of the Australian Federal Government, to work Ignited, federal and state governments, industry peak workforce for 2026. together positively and collaboratively to develop and lead bodies and Australia’s national resource industry employer Through extensive research and a glance at the current the METS industry in Australia and internationally.” association AMMA. economic context troubling the sector, a number of As a contributor to the 10-year plan, AMMA Head of Policy The overall goal of the plan is to strengthen the Australian consistent views were presented; for example, tighter Scott Barklamb said the organisation looked forward to METS sector and help invigorate Australia’s position as the margins, limited cash flow, comparatively high exchange working with METS Ignited to increase productivity, social global hub for mining innovation. rates and low prices in the majority of commodities. licence to operate, skilling, human resources and other “The 10-year METS Ignited and all involved in the METS Sector people-related matters. competitiveness plan for Competitiveness Plan hope talking about these problems “Governments and regulators also have a significant role the METS sector provides and creating valuable solutions for the future will help to play in reforming regulatory processes that impose a clear roadmap for the create smarter relationships and collaborative leadership unnecessary costs and compliance burdens on Australia’s development of a sector within the industry. METS industry,” he said. that is poised to drive significant economic “It is a report that aims to start a conversation, it explores “This includes an unproductive and often cumbersome and employment and challenges us to think about what is possible and what workplace relations system, inconsistencies in OHS laws, opportunities for initiatives could create a different future,” METS Ignited serious issues in exploration and mining project approvals Australia,” AMMA Director Chair Elizabeth Lewis-Gray and Chief Executive Officer Ric and a lack of protection against increasing vexatious Tara Diamond. of Industry Services Gross said in a company statement. environmental and social activism.” NMC

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BY SANDRA ARGESE Damaged and desperate for native plant restoration, over 2300km of land from former mining projects are crying out for a new lease on life. Due to a lack of vegetation and Game growth, a sparse future is imminent and workable solutions to this problem have been scarce for a many years. But in an age where innovations and revolutionary breakthroughs provide realistic workarounds for issues changing such as this, it was only a matter of time before someone found a solution that would allow these areas the opportunity to flourish once more. In Western Australia alone there is approximately $2 billion restoration worth of mining projects currently on hold or rejected based on the inability of mining companies to demonstrate to regulators they will be able to restore sites to greater than 70 per cent pre-mined plant species biodiversity upon mine closure. A three-year collaboration between a multi-disciplinary team comprising Dr Andrew Guzzomi, Research Assistant Professor in Agricultural Engineering at the School of Mechanical & Chemical Engineering at The University of Western Australia, student Alan Ling from the UWA School of Mechanical and Chemical Engineering, researchers Dr Todd Erickson, Dr David Merritt and Professor Kingsley Dixon from King’s Park and Botanic Gardens and UWA School of Plant Biology has led to a valuable discovery with enriched potential to forever transform the industry of land rehabilitation. Revolutionising the ability to effectively handle seeds to enhance the land rejuvenation processes, the collaboration led to the creation of a seed flamer device. Dr Guzzomi, an esteemed agricultural engineer who has overseen the design and construction of the seed flamer, said it was fluffy appendages and hairs on many wild collected seeds that made them bulky to store and difficult to transport. Their appendages also hinder seed enhancement technologies, such as the coating of seeds in artificial polymers or aid precision machine sowing. Native grass seeds are typically highly irregular in shape, with surface hairs and awns that make them very difficult to work with. “Successful large-scale restoration of minesites relies on the effective use of seeds from wild or native species,” Dr Guzzomi said. “The seeds stick together, making them hard to sort and use in direct seeding machinery. Dr Andrew Guzzomi with the seed flamer device. “Removing the appendages enables the application of artificial coatings to seeds to further improve germination They can then be planted to revitalise degraded land. and allow precision machine sowing. Not only does this encourage sustainability and vegetation “The technique has many benefits including increasing There are $2 billion worth security for the future, it also has the power to restore the bulk density of the seeds which saves on storage, confidence in zones where potential mining projects for processing and handling costs and increasing their of mining projects in WA on the future can become reality. flowability which assists with their planting using hold based on the inability mechanised techniques.” Dr Guzzomi said the $25,000 prize money would translate into further exciting research and exploration into the Traditionally, the success rate of plant regeneration from to restore sites to 70 per cent revegetation field. native seeds has been quite low with approximately 95 per pre-mind plant species. cent failing. “Winning the award has allowed the potential commercialisation of the technique, meaning we could see “Through application of our technology and subsequent some real traction with our research,” he said. seed coatings, we can increase the success rate from five device exposes the seeds to a precise amount of pulsed per cent to approximately 40 per cent,” Dr Guzzomi said. heat. “Our innovation will transform how vast areas are revegetated using native seed. The money is being used Devising and arriving at the final concept for the device “Through modifying a rotary seed coater with an to explore seed flaming of diverse plant species at a over a period of three years wasn’t without its challenges, engineered flaming apparatus, we developed a novel commercial scale in Australia and Dr Todd Erickson, the according to Dr Guzzomi. flash flaming technique which carefully removes the project manager of the Restoration Seed Bank Initiative appendages without subjecting the seed to damaging heat “We knew that dry plant material is flammable and burns. at UWA and Kings Park, is currently visiting the USA energy,” Dr Guzzomi said. The challenge was devising a way to use this attribute to exploring opportunities for revegetation and rangeland subject the seeds to sufficient heat energy to remove the By repeatedly exposing the seeds to short flaming pulses, management there.” appendages without damaging the seed inside,” he said. appendages are removed without damaging their ability to The ‘flash flaming’ device has been patented and a germinate. Taking home the top prize in the Emerging Innovation partnership to support the commercialisation of the Category of the 2016 Mitsubishi Corporation Western Once treated, the seeds are easier to handle and coat as invention is being offered through UWA’s Research Australian Innovator of the Year Awards, the seed flamer they are reduced in bulk and fluff, with a smoother texture. Development and Innovation office. NMC 15664 Austmine ADVERT 245x340mm_OL.indd 1 25/01/2017 2:44 PM 18 Riding out the mining cycle

“Mining is incredibly cyclical and the peaks and troughs are shortfalls, however Prof Hagan said in the case of engineers dramatic,” he said. “Downturns are fast and usually last two this was not a viable option as many other countries also or three years, which means there’s a peak in enrolments had a demand for these skilled workers, adding there were just as demand for jobs collapse. We saw student intake potential cultural issues that could come about too. peak in 2013 and enrolments have fallen fast since. Australia’s key commodity exports, iron ore and coal, have UNSW Head of School of Mining Engineering “This is the sixth mining cycle I’ve been through, so I know been on a spectacular rally recently and, for the first time in Associate Professor Paul Hagan at the school’s what happens next; demand for jobs will soar, but there six years, exports have risen for three successive quarters. virtual reality minesite. won’t be enough trained engineers to hire. Prices for coking coal have tripled, thermal coal is up 50 per “Anyone enrolling now will be in top demand in three cent and there was a 48 per cent surge in iron ore in China years, but students don’t perceive it that way.” during 2016. BY KAITLIN SHAWCROSS UNSW has struggled to fill the current scholarships on offer Rising Chinese steel production, driven by government Australia could face a serious shortage of mining engineers, with only five applicants enrolled in the course for 2017, stimulus, is likely to continue, with indications China’s with graduate numbers plummeting and showing no down from seven the previous year. construction sector has ramped up in recent months. immediate signs of abating. At the peak of the course, the university had 107 students “We are seeing signs of a turnaround in mining activity, a In a bid to encourage students into mining engineering accepted in 2013, which has fallen year on year by an rise in commodity prices and a flow of investment back degrees, the University of New South Wales (UNSW) is average of 58 per cent. into the resources sector,” Whitehaven Coal Managing offering 25 scholarships worth $1.14 million for 2017. Director Paul Flynn said. “Enrolments may not get up to that 2013 level again Four Australian universities that form the collaborative because in some ways that’s a reflection of what was “Based on past cycles, we’ll be short of skills within three venture Mining Education Australia (MEA) together termed ‘the super cycle,” Prof Hagan said. “The cycle lasted years. That’s why we need to attract enrolments now so we with two other universities saw a combined total of 260 a lot longer than what had happened in previous cycles, so have enough engineers graduating when we really need students graduate from mining engineering in 2015. the interest just increased year on year from 2006 to 2013 – them.” Last year that number was anticipated to be much closer to it’s unlikely to get up to that level again. Prof Hagan admitted UNSW would have to consider the 200 and by 2019 is expected to drop 80 per cent to just 50 “Normally we see the cycles lasting about six or seven years long-term viability of its mining program if low enrolment graduates. so I’m expecting we should be starting to see a pick up in numbers continued for several years. UNSW Head of School of Mining Engineering Associate interest in 2017 and that won’t start to affect the supply of He said the viability of having any mining school left Professor Paul Hagan said the drop in graduates was graduates until 2020 because of the four-year delay.” in Australia would be thrown into question if current expected to have a dramatic impact on industry as demand Typically Australia looks overseas to meet employment numbers were sustained. NMC was predicted to pick up around the same time. “Going from a situation of more than 250 graduates to less Student Intake 107 than 50 graduates in four years time is not sustainable and 100 it’s going to affect the industry,” he said.

“That flow on effect will affect efficiency of operations 83 80 and it will then start to affect the ability of the Australian 73 mining industry to deliver mineral commodities to the 69 global market. 60 62 55 55 “There’s a general disconnect between the public and understanding the role mining plays in the Australian 40 38 economy, more so in the eastern states than in WA; people 34 underestimate the part it plays in the future of Australia.” 20 20 Prof Hagan said despite the mining industry keenly looking 16 16 for engineers, demand hadn’t yet translated to public 12 7 5 6 perception of the value of holding those qualifications. 2 3 However, it’s all part of the cycle and Prof Hagan has 1972 1952 1976 2012 1992 1956 2016 1948 1984 1996 1964 1988 1968 1960 journeyed through it five times before. 1980 2004 2008 2000

UNSW School of Mining Engineering students at a mining engineering camp at the Cadia Valley gold mine near Orange, NSW. Scholarships launch news conference. 19 Jobseeker scams

BY KAITLIN SHAWCROSS as a parkland and the ABN used was a fake. In a time where industry jobs are harder to come by, if there She said scammers would often take advantage of the is one thing jobseekers don’t need it’s trying to sort fake current climate to try and trap vulnerable people. employment advertisements from the authentic. “Scammers are really good at scanning media and the Opportunistic scammers are taking advantage of environment so they can make sure they target areas that Western Australia’s mining sector downturn by targeting are linked to particular things occurring in the season or unemployed miners through a fake job website. the economy within the environment they’re trying to Laine Chopping. target,” she said. The fake website miningjobswa.org, which has since been taken down, attempted to mimic the legitimate “With the downturn in the WA mining sector and an Popular job advertising sites such as Gumtree and Seek employment website miningjobswa.net.au, including increase in unemployment of people who were working could also feature fake job advertisements despite being stealing an ABN from an Australian company with a similar in that sector, they know more people will be looking legitimate sites, Ms Chopping advises asking around to name. for employment opportunities, therefore it’s a good see if anyone you know can recommend reputable job opportunity for them to start a new scam.” providers. NMC Department of Consumer Affairs Acting Director of Retail and Services Laine Chopping said employment related scams were quite common and jobseekers should be alerted by any payment requests. How to spot a scam “We know that in WA employment, agents have to be • Look for an email address that includes the domain name as licensed by the Department of Commerce and they are opposed to a freemail address such as Gmail or Hotmail. not allowed to charge potential employees as part of the licence,” she said. “That should be an alarm bell straight off • Do an ABN search to see if the company matches. the bat.” • Look up the company’s physical address. The department was alerted to the fake website after one victim lost a few hundred dollars when asked to pay fees • Telephone the number directly and have a conversation. associated with their job application on the site. • Guard your personal information including your CV, tax file Ms Chopping said it became clear the site was a scam when number, bank details and any proof of identity documentation. an investigation into the company’s listed address came up

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www.mercycare.com.au/first-time 20 Laser sharp focus Andrew Somers using the Z500 for rock analysis. BY CHRIS THURMOTT comparing the data. You get a better final result than you between $50,000 and $60,000, similar to the price of a top do just by using one just in isolation over another.” of the range portable XRF and Mr Griffin believes this will Towards the end of last year a lot of buzz was being be money well spent. generated about the emergence of a new handheld product Despite this product having exciting prospects for in that would be able to assay for lithium in the field. field exploration and testing, it is not in the position to “Given the amount of money you save in terms of drill completely remove the laboratory from the equation. efficiency per project, you might recoup the costs in a Handheld assay technology, such as a handheld XRF, has What it does allow is exploration and mining companies to single drilling programme. Its only a couple of drills holes been around for the best part of 20 years but has always pre-screen samples to better direct their assay budgets and you’ve got to save,” he said. been limited by what it can read. make decisions in real time in the field. Anything lighter than chlorine or magnesium in some “If we have the right geology and we have a lithium The future for LIBS newer models and the product was simply unable to number generated in the field, we will send it away for Other than just searching for assays within samples, conclusively confirm what is in the soil. It could give an assay for confirmation,” LIT Managing Director Adrian the future for the LIBS technology has some fairly wide indication about what was there but indications can prove Griffin said. ranging applications. costly, especially if that means assaying the entirety of a “If we’ve got the wrong geology and no lithium or even if drill hole, blanks and all. “We are looking at agricultural applications, we’ve got the right geology and no lithium then we won’t pharmaceuticals, scrap metal recycling New technology utilises laser-induced breakdown send it away. It means you’re not assaying all the blanks.” spectroscopy (LIBS) and has been in development for the and electronics geochemical analysis of lithium with US-based SciAps Inc One of the reasons LIBS is so effective at reading the light scrap recycling elements is because it is able to pinpoint specific areas for (SciAps), a field portable analytical product manufacturer, where we analysis. It is able to assay about 0.2 of a cubic centimetre and Lithium Australia (LIT) working in collaboration for the are using the as the laser can pinpoint down to 50um spots within in a past two years. technology to 2sq mm area. identify what LIBS is a new type of analytic approach; it is able to detect metals are where very light elements such as boron, beryllium and lithium. within circuit It is a small sub 2kg handheld device that runs on batteries boards and and has a very similar makeup to that of a portable XRF. It LIBS is a new analytical electronic micro has a relatively low-powered laser beam which is directed approach; it is able to detect components in order to onto the sample and creates plasma. The analyser collects recycle them effectively,” Mr emitted light from the plasma and produces a spectrum light elements such as boron, Somers said. from which peaks associated with constituent elements beryllium and lithium. can be observed and measured. The electronic scrap recycling is reliant on a fingerprint library of “The elemental capabilities of the LIBS augment and elements being created with the go beyond what a portable XRF can produce in terms With this pinpoint accuracy comes great responsibility, of elemental range but I think there still is a place for especially when it comes to sample presentation. Mr Griffin help of LIBS. It has some spectral complementary analysis between the two tools,” SciAps said if the sample presentation was not done properly, it features that can produce a Global Business Development Director for Geochemistry was just as likely salt from a fingerprint would get analysed geochemical fingerprint Andrew Somers said. instead of the minerals in the soil from the drill hole. of a rock or mineral, which can then be used “The spot you assay is only a couple of millimetres “I believe LIBS is the next generation in the evolution of to identify the rock field portable analytical tools but I still think there’s a lot and you’re getting down to just a couple of microns, it’s probably less than one 1000th of the volume that you’re type or mineral species of strength in using multiple analytical tools and cross shooting with a handheld XRF,” he told National Mining in future explorations. Chronicle. “This is something that is of real interest to us; doing a “You need to look at the number you get back in a qualitative spectral fingerprint library where you can subjective manner, make sure it makes sense with what shoot minerals and identify them based on the chemical you’re trying to achieve and make sure you prepare the fingerprint,” Mr Somers said. sample the right way to get the correct result. If you do Despite the technology not being able to remove the all of those things, then you get very good reproducible laboratory from the assaying equation at this stage, there results.” are definite plans in place to improve the LIBS to a point This technology has the capability to save an enormous where there is less reliance on the laboratory for a variety amount of time and money when assaying for minerals, of techniques. especially lithium. This technology is changing the way things are done but it “It is able to generate direct lithium assays in real time in will not happen overnight. It has taken two years to get to the field. Visually being able to see if there is lithium or this point and it will be a while before it can fully compete not will maximise the drill result. That will have a very with the portable XRF in terms of calibration capabilities. large impact in terms of dollars and efficiency of running a Despite this, there is a light at the end of what has been a programme of that type,” Mr Griffin said. very dark tunnel for the mining industry and it is burning Adrian Griffin. The cost of buying a commercial unit is estimated to be bright. NMC TECHNOLOGY AND INNOVATION 21

Leading the way on project lighting

BY JACK MCGINN “Using small diesel engines, we adapted a specialised 24- and allows users to keep track of the system components volt DC sealed industrial alternator, allowing the client to via a smartphone and tablet. An innovative, collaborative lighting refurbishment run the same light towers with a very small engine using program developed in Queensland is delivering significant “We remotely monitor every fuel tank and engine hours, 500ml of fuel per hour compared with up to three litres per on-site savings to mining service provider Thiess. and we automatically gather statistics on all the light hour previously,” Auxilium Chief Executive Officer Wayne towers on all sites every night and day with no human A collaborative effort between Thiess, industrial systems Panther told National Mining Chronicle. interaction at all,” Mr Panther said. specialist Auxilium Systems and build partner Haynes “The other benefits we built into these special generators Group, the aim of the project was to reduce costs, increase “To top this off, we actually refurbished their existing light reliability, improve performance and add automation to are 400-hour service intervals and supplied fuel tanks with tower fleet; some of these assets are up to 10-years-old and Thiess’ light tower fleet. a 400-hour run time. That means each light tower needs a now have a further 5-10 years of life.” service and refuelling just once a month,” he said. Auxilium developed several new products with these goals The effort certainly paid off for Auxilium, with the in mind, delivering a product Thiess estimates will save $5 To match the DC generator, Auxilium introduced a special project winning QME Best Product Launch at the 2016 million per annum across roughly 200 light towers on six industrial LED lighting system at the same voltage, Queensland Mining Contractor Awards and named a mine sites nationally. meaning zero maintenance and bulbs and provided with a finalist in the 2016 METS Ignited Collaboration Award. five-year warranty. Savings were delivered courtesy of new DC generators, Auxilium now offers new build light towers with even LED lighting and the introduction of a remote monitoring Tying together the new technology is a cloud-based more technology and is pushing the program to a global system. remote monitoring system, which uses satellite telemetry scale. NMC

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AUS 1800 225 084 NZ 0800 363 772 PNG +675 7988 9115 [email protected] [email protected] [email protected] www.enerpac.com.au www.enerpac.co.nz www.enerpac.com.au 22 TECHNOLOGY AND INNOVATION How industry can improve employee engagement

BY BILL MCMURRAY, 1. Involve key leaders when 3. Define the questions MANAGING DIRECTOR, ASIA PACIFIC AND JAPAN, QUALTRICS developing the employee Once the customised engagement categories have been engagement program finalised, survey designers should create three to six Engaged mining employees can directly impact a mining questions per category. operation’s productivity, efficiency, safety levels and Involving key leaders when developing your employee bottom line. This makes measuring employee engagement engagement program creates executive buy-in and The questions should measure different aspects of a theme important to help maintain a high level of involvement, as enables leadership of the program from the top-down (e.g. the company, the manager, the team, the environment, well as determine ways to improve it. to demonstrate the programs significance, which will the individual etc.), so that each question offers a new encourage employees to participate. Leaders should piece of information. Given mining staff typically work at disparate locations, also be involved in establishing the question category employee surveys often can be the only effective way to Wherever possible, the survey should also define and priorities. measure this. The trick is to ensure surveys are delivered consistently use the same scale. For example, the majority in a fashion that reaches all employees and allows them to 2. Develop an organisation-specific of the time, the question should be answered on a ‘strongly participate. agree to strongly disagree’ scale or a ‘very good to very list of engagement drivers for Surveys provide the opportunity to collect valuable poor’ scale. This makes the results easier to measure and employee feedback and let organisations make changes surveys quantify. where necessary. If done right, it will help to optimise Employee surveys should focus around a number of 4. Include necessary definitions engagement and improve organisational performance. engagement category drivers, including autonomy To get the most out of an employee survey, the questions and empowerment, career progression, collaboration, Not everybody understands certain titles and terms in the need to be framed in such a way that the employer will communication, company leadership, pay and benefits, same way. It is important to make sure everyone is on the be able to use the responses to help measure factors like quality of products and services as well as training and same page by including definitions at the beginning of the company pride, intention to stay, level of motivation to go development. survey, or attached to individual questions, depending on above and beyond the call of duty and the likelihood of the format. Organisations need to ensure that the engagement recommending the business to friends or family. categories used in surveys are relevant to their specific 5. Know how to reach employees By following these seven key steps, mining operators can business. Don’t be afraid to remove categories that don’t develop employee engagement surveys that will deliver seem relevant or create new categories such as satisfaction It is crucial to deliver the engagement survey in a relevant true value. with safety procedures or shift patterns. manner to encourage employee participation. This includes ensuring surveys are mobile-responsive and can be distributed via SMS or available at shared kiosks/tablet devices so employees can easily complete them while they are out in the field, rather than your traditional email surveys as not all employees have access to a corporate email account. 6. Determine how the data needs to be broken down for analysis Organisation hierarchy and demographic data should be integrated into the employee engagement feedback platform so it can be broken down and delivered in managerial or departmental dashboards. 7. Action the employee feedback Before starting an engagement survey, managers must understand the strategy and how to action the data. The most important part of collecting employee feedback is to take action in an appropriate timeframe to show employees that the organisation has listened and values their input.

Once the employee engagement survey has been executed, the business needs to consider combining its annual employee engagement survey with ‘pulse surveys’. Pulse surveys let organisations dive deeper into a particular area of the mine operation or issue to identify if improvements are taking place.

Mining companies should consider an employee engagement and pulse survey platform like Qualtrics which is easy to use, yet sophisticated. Such platforms let organisations implement programs faster, and offer the ability to see the feedback in real-time. Mining companies that prioritise employee engagement can significantly improve productivity, efficiency and the business’s bottom Bill McMurray. line. NMC 23 Pulse pumps out

Coal Quality efficiencies Dashboard.

Recognising the potential in new technology has paid “To be competitive, we needed to deliver agile reporting, “Our aim is to make it very easy for our customers top significant dividends for Pulse Mining Services, with the quick-fire creation of visualisations and analytics plug a product in, get the data flowing and create company’s new business intelligence offerings providing capabilities. The technology also had to be simple to use visualisations to help them monitor mine performance,” agile and functional solutions for its clients. and empower employees to obtain insights from the data he said. they had collected.” After three decades in the business, the appointment “The longer it takes to roll out a BI solution, the more data of Mark Spry as CEO in 2014 led to the creation of a The solution for Pulse was built on technology from builds up and waits to be analysed. By creating a simple visualisation and analytics (V&A) division within the software provider Tableau and its partner Birst and comes and fast solution, our customers can get answers to the company and recognition of a need to help miners in the form of a series of plug-and-play analytics rights questions they’ve been asking for years.” realise the potential of captured data in driving greater which deliver data visualisations from different areas of The immediate potential of Pulse’s BI solutions were insights and operational efficiencies. the business into a central hub. on show during an introductory presentation with The technology was much needed; one of Pulse’s clients “Since we pre-created the design and data modelling, Whitehaven Coal, during which Pulse was able to answer had an employee whose job was solely focused on we can now offer our customers a set of mining specific a previously unresolved two-decade old question about managing production data to determine the value and analytics,” Mr Parvin said. an operational anomaly on the spot. quantity of coal produced on a daily basis. “Our customers can very quickly and easily get insights “We were able to deliver analytics quickly and simply in “Many of Pulse Mining’s customers store data in Excel using these templates and then create visualisations using next to no time,” Mr Parvin said. spreadsheets and had developed their own means of Tableau. Once they have it, they can’t live without it.” extracting essential information, but they were arduous “This differs from some other solutions that are often and time consuming,” Pulse Mining Visualisation and Pulse’s breadth of customer data sources combined with sold in as a theory, and insights that can’t gained for some Analytics Manager Rob Parvin said. the usability of Tableau means the system is versatile time.” enough to be adapted to a range of mining uses. “Our objective was to create a solution that saved our Whitehaven rolled out the technology across its business customers time, was cost effective and delivered value Mr Parvin said ease of use was critical when it came to in less than six months, with the four licenses initially sold from the word go. products in this area. expanded to 20 across the company. NMC 24 TECHNOLOGY AND INNOVATION

Internet of Things to hone mine craft

BY ANDREW SPENCE, decisions in new and different ways - that’s where the real “We don’t believe there is another one around the world,” THE LEAD SOUTH AUSTRALIA power sits with the Internet of Things.” he said. An ‘Internet of Things’ cluster designed specifically for Ms Campbell said the primarily virtual cluster would “The supply chain of the mining and the resource the mining and energy resources sector is set to boost begin with members of AIIA’s mining and energy companies extend right around the world so what we’re productivity, efficiency and safety in the industry. resources special interest group and branch out to include trying to create are technologies that will be sold into those universities, technology firms and supply chain operators supply chains.” The Australian Information Industry Association (AIIA) will in the mining and energy resources sector. partner with the South Australian Government to facilitate “The concept behind the cluster is how to get companies cluster members to make investments and provide access “We have a commitment to the State Government to go to collaborate in more effective ways than they do at to advisers and multinationals with relevant supply chains. to the market to establish a much broader collective of the moment so what we’re looking to do is not only get industry participants to join the cluster so we’re looking complementary companies to come together but to get The cluster, believed to be the first-of-its-kind in the world, forward to a very energetic start to the year,” she said. competitive companies together to generate new things also aims to encourage industry collaboration, streamline through the collaboration that the cluster offers.” the flow of information and allow real-time decisions. South Australia is a globally significant producer of copper, AIIA is Australia’s peak industry association for The Internet of Things will uranium and zircon. It also produces iron ore, zinc, lead, organisations in the digital economy and has more than silver, industrial minerals (including salt, silica sand and 20,000 members across all industries. open new opportunities in the gypsum) and extractive materials (including dimension Chief Executive Officer Suzanne Campbell said combining mining and energy resources stone and opal). Mineral production from the state’s data gathering devices such as sensors with internet commodities reached a record US$4.19 ($5.56) billion in capability and applying analytical tools would provide sector, with the power to 2013–14, increasing by $US523 ($693) million (16 per cent) “wisdom, truth and insights” to be drawn from data from US$3.6 ($4.78) billion in 2012–13. collected and shared across the cluster. make our local industry more The South Australian Government, which is contributing Ms Campbell said areas of Internet of Things application productive and better able to US$565,350 ($750,000) over three years to the Internet of Things project, has helped establish several clusters in in the industry included real-time machine and sensor recent years including in aerospace, specialized vehicles, integration, fleet operations monitoring, plant dashboards maintain competitiveness. aquifer recharge and medical devices. and trend analysis, ore-grade sensing and sales and supply chain management. South Australian Manufacturing and Innovation Minister “It is in anticipation of benefits for South Australia directly Kyam Maher said the cluster was critical to the competitive “There’s expansive use of sensor technologies in the and also for Australia and globally. The investment that’s future of mining and energy resources in the state. mining, resources and energy sector and that includes being made is an investment to promote, motivate and things as simple as sensors on drill bits to make sure inspire new business opportunities within South Australia “The Internet of Things will open new opportunities in the maximum utilization of the tool is achieved in the and further afield.” the mining and energy resources sector, with the power extraction of ore,” she said. to make our local industry more productive and better Interim Cluster Facilitator Martin Woodcock said the able to maintain competitiveness in highly volatile global “There’s a vast amount of opportunities with regard to the concept of a regional cluster was not new – in Europe alone markets,” Mr Maher said. devices, but the device is only the beginning of the story; there are about 10,000 of them – but the combination of it’s the collection of data and the analysis and manipulation the Internet of Things and mining and energy resources in “Innovation is crucial to the future productivity and of data to create those insights to allow businesses to make one cluster was unique. efficiency of this country’s resources sector.”NMC Minesites across Australia can now access advanced software to aid in mineral processing operations. 25

BY SANDRA ARGESE Advanced plant simulation and optimisation software offers the potential to maximise profitability and efficiency for existing and future mineral processing operations. In an exciting move, Australian mineral processing and quarry operations are now able to access the most innovative and advanced version of it on the market. Named NIAflow and developed by mineral processing technology experts Haver & Boecker, the software offers Optimising mineral support to mineral processing operations throughout every engineering phase, from drafting flow diagrams for product pre-calculation to plant start-up and simulating processing operations parameter changes. As a result, users can discover the most efficient configuration methods for existing equipment and determine what equipment is best suited to enhance “Because we are an equipment developer and parameters to prevent plant bottlenecks before equipment productivity and undertake prognostic maintenance. manufacturer, not a software company, we have the is in place. practical expertise to ensure this technology has the level Haver & Boecker Australia Head of Mineral Processing Designed to enhance user functionality and accessibility, of functionality and usability that operations require for it Technology Steffen Silge said the company was well the in-built menu control caters for all levels of experience, to add real value,” he said. positioned to master the software’s execution. with user training even available. The software uses simulation technology to determine Mr Silge said that understanding costs per tonne of product the impact of diverse feed material scenarios on machine Haver and Boecker’s NIAflow software and identifying ways to reduce this should always be a vital capacities, process parameters and product quality package uses simulation technology to operation. warn of incidents before they occur. measures. As a result, problems can be immediately identified and resolved before they even occur. “An accurate mass balance and product quality prediction is a prerequisite for the success of any mine and the NIAflow delivers the capacity for users to analyse over 90 subsequent ore preparation process operation,” he said. diverse process equipment pieces ranging from crushers and vibrating screens to material washers and conveyors. “When paired with other Haver & Boecker technology, Extending beyond equipment capabilities, the system such as the Pulse vibration analysis software, customers observes and monitors the operations input, output and will hold all of the tools they need to optimise process flow waste piles. and increase productivity and profits. Mass and volumetric flow rates are calculated in addition “We believe NIAflow will serve as a cornerstone in the to the valuable content, with machine-specific operating development of future process engineering projects.” NMC

MINING PRODUCTS AND SERVICE

Mining Products and Service (MPS) A proud example of MPS thinking was successfully delivered this month at is an Australian based company the Bluebird Gold Mine, operated by Westgold Limited. The mining schedule specialising in the Design, Supply, is delivering harder ore and coupled with the recent commissioning of a PO Box 1389, Service & Optimisation of process Pebble Crusher, the operating conditions in the Milling circuit are becoming Joondalup DC, equipment and wear components considerably more arduous. The customer requested MPS convert their for the Mineral Processing Industry. SAG mill to a steel lined system and replace the composite rubber liners that Western Australia, 6919 Our main supply areas are Major were expected to be unable to achieve the required reline interval. However, equipment wear components the installation of Steel segments required a liner handler which they did +61 408 222 546 (Mill Liners, Crusher Liners), not have on site and with 12 months to have a new machine designed and Engineered Castings and Machined delivered Bluebird required a quicker solution. Mining Products and Services Components, Wear Components stepped in and purchased a decommissioned, second hand machine, and [email protected] (high chrome castings, chromium over a four week period implemented modifications to suit the new duty and carbide plate, rubber, ceramic), Site completely refurbished the unit ready for use. The Liner handler is now hired www.miningproducts.net services and support. to site when a reline is undertaken.

We’re in the business to improve your business. Patented Smith and Loveless 26 WATER IN MINING FAST wastewater system.

BY CHRIS THURMOTT Remaining sustainable in the modern world is a growing problem for industries across the globe. This is possibly even more of a challenge for the mining industry which constantly faces an uphill battle in this area.

“Companies who can show that they are proactively doing something to minimise their impact on the environment and adopt best-practice when it comes to sustainability are often the ones that succeed over the long term,” CST Wastewater Solutions Managing Director Michael Bambridge said.

His comments come after CST Wastewater Solutions picked up a Highly Commended Award at the 2016 Bulk Handling Awards for their patented Smith and Loveless Sustainability is a Fixed Activated Sludge Treatment (FAST) system.

It is a fixed-film aerobic treatment system designed for tackling variable load and flow conditions. Proven in FAST growing problem thousands of installations worldwide, FAST consists of tankage packed with completely submerged media. The FAST media creates a high surface area-to-volume ratio, “Other products frequently do not have the portability of “Bulk handling is an industry that can really benefit from which combined with internal settling zones, maintains being able to pack an entire wastewater treatment system this technology, so it was especially rewarding to have constant bacterial growth during low-flow and peak into a single shipping container in such a way that it’s ready one of our success stories displayed to an audience of usage. This results in stable operation on a daily basis. to go with minimal plumbing and electrical work,” he told environmentally aware companies who appreciate the National Mining Chronicle. importance of modularity and portability.” NMC FAST is available in factory-built or field-installed modules, providing high performance treatment in CST Wastewater won their award because their system a minimal space. The modular FAST arrangement helped a world-class outback mining operation produce handles smaller, variable flows generated from onsite an effluent water quality to class-A standard. Class-A is applications, including mining accommodation, schools, needed if the water is going to be reused in an application small developments, commercial and public facilities to where it may come into contact with people, such as dust hospitality venues such as hotels, camps, and restaurants. suppression. No daily operation is required and it provides significantly “In remote locations, it is more of a challenge to achieve improved performance over traditional leach field and high standards with low maintenance. The self-contained septic tank systems, especially when a nitrification/de- FAST plant overcomes the need for the type of installation nitrification component is specified in permit or effluent and maintenance supply that is not available far from main requirements. industry centres,” Mr Bambridge said. One of the biggest advantages of the system is it can all “It’s great to get this sort of recognition for technologies fit into a shipping container, something Mr Bambridge that are environmentally harmonious, as well as efficient CST Wastewater Solutions Managing Director Michael Bambridge. believes puts this product ahead of its competitors. and convenient. Regional rollout for Hydro-dis

An award-winning water technology developed by and micro-flora and converting chloride ions to chlorine, location for any industry, creating a choice of potable or Adelaide-based Hydro-dis Water Treatment Systems giving a secondary disinfection.” non-potable water from waste water. has passed a 10-year evaluation and field trials period in The electro-chlorination process uses a specially designed “We have developed a self-cleaning design which increases Western Australia and is now being used at a number of cell which can be retrofitted to any type of pipe in any the operational efficiency of the cells and extends the cell small regional schemes. life. In the WA trial, the system ran for five years – more Hydro-dis Managing Director Mark Carey said the company than 20,000 hours – with minimal routine maintenance. had run three pilots for the WA Water Corporation since This level of worry free operation is very appealing to the 2007, one for potable water and two to remove iron and market,” Mr Carey said. manganese. The Water Corporation team implementing “Systems are scalable and can churn up to 10 million litres the technology was recently commended at the a day. Built-in energy efficiency means the system can be organisation’s internal Fresh Water Thinking Innovation used in remote areas, powered by wind or solar. Awards, following a Water Industry Association Allwater Award for Water Treatment and Re-Use in South Australia. “Our process has already been used successfully in South Australia in applications as diverse as mining and “We’ve got an operating system in WA, two more pending commercial pools. We’re at the scoping stage of discussions and other opportunities in SA,” Mr Carey said. with SA Water about larger scale implementation. We’ve “We took existing electro-chlorination technology, also had interest from the Northern Territory and are ramped it up and moved it in a new direction. Our system actively pursuing opportunities in both China and India.” has significantly lower operating costs and is more Mr Carey was a member of the SA Government’s trade environmentally friendly than traditional treatment delegation to India in August and received strong interest methods. from Rajasthan, which is now being followed up. “It is fully automated and reduces servicing as well as “Clean water supply is a global problem and South eliminates the need for moving chemicals across outback Australia, as the driest state in the driest continent, is at the roads and storing them on site. Chemical treatments are forefront of developing water technologies,” Mr Carey said. replaced with an electrolytic technique, which breaks Hydro-Dis Managing Director Mark Carey “Hydro-dis is among the leaders in this field and we see a holding a working prototype of the Gen 3 Cell. down the water to be treated, destroying micro-organisms strong global future for our business.” NMC 27 Best solution for liquid storage tanks

Tanks West is the premier manufacturer of The material advantages system which is certified for Region D cyclonic moulded Fibreglass FRP (fibre reinforced plastic) wind loadings. Fitting sizes of up to 600mm tanks in Western Australia and is devoted to of a Tanks West tank in a variety of materials (FRP, brass, stainless providing best value solutions for liquid storage The following comparison of engineering and polypropylene) can be factory fitted using and handling. Tanks West has been supplying properties is based on published data threaded or flanged connections to suit your the WA mining industry for over 20 years; using relating to the common grades of specific requirements and reduces the need for advanced manufacturing technology, its tanks are fibreglass and polyethylene used in tank onsite labour. designed to meet the requirements of a variety of manufacture. Its technical staff can assist with your tank design industrial applications. Tensile strength: At 25C a Tanks West and consultations on chemical compatibility Whilst the storage of potable water for camps tank is eight times stronger than a as well as area specific hazards related to and safety showers remains a major requirement polyethylene tank. temperature and UV exposure. The tanks for remote mining locations the demand for can be hydrostatically tested on completion specialised chemical and cyclonic tanks have also Tensile Modulus: A tanks West Tank is 12 and expeditors are welcome to arrange QA increased. High temperatures, hyper-saline water, to 30 times stiffer than a polyethylene tank. inspections prior to despatch. Tanks are delivered volatile liquids and cyclonic conditions are all in a Thermal Conductivity: Polyethylene to site as a single unit, increasing efficiency by day’s work for these sturdy FRP storage tanks. conducts 55 per cent more heat than negating any need for onsite construction. Tanks West works closely with clients to fibreglass. Whether it is for water storage, break tanks, determine exact requirements; in order to provide Tensile Creep: At 20C polyethylene creeps chemical storage, dust suppression or process effective and economical solutions, Tanks West (stretches) 30 to 50 times more than applications, Tanks West will deliver a quality supply tanks with capacities ranging from 450 fibreglass. product with exceptional customer service to suit litres to 65,000 litres for aggressive and non- your application. Contact Tanks West by calling aggressive liquids at temperatures ranging from Hardness: At 25C a Tanks West tanks is 10 1800 812 677 or send an email to info@tankswest. -10C to 90C. Tanks can be fitted with a restraint times harder than a polyethylene tank. com.au. ADVERTISING 28 SAFETY IN MINING

Flawed OH&S equipment puts lives at risk Creating a Because safety is paramount on minesites, mining companies are seeking alternative solutions to outdated, flawed and dangerous equipment to avoid injury for their staff and contractors. world-class risk In one particular instance, engineering company Downer had a person sustain an injury to their eye when immense pressure from a grease fitting dislodged their management system safety glasses and hard hat. To keep a fleet running smoothly onsite, service vehicles provide lubricants to all mobile equipment. One of the BY DAVID BERECZKY, HSEQ MANAGER, are more prevalent than others. Understanding and supplied lubricants, grease, can be supplied at very high ACTION DRILL & BLAST identifying high risk energies signals where extra pressure, up to 5000 psi. focus is required. The concept of understanding risk in the workplace and A high-pressure injection injury often results in a serious making commitments to reduce that risk is nothing new. 3. Educate and set responsibilities medical emergency and can be common on mining sites, What’s challenging is creating something that achieves sometimes resulting in the amputation of limbs. As part of the on-boarding process, new employees complete employee buy-in. As we all know, when the Downer saw this as a major risk for the company and wellbeing of workers is prioritised, optimal productivity should take a suitability for job analysis followed by an introduction to the safety system. as a result proactively asked Australian Diversified follows. Engineering (ADE) to create a solution that would In our view, there are four critical components of a world- Provide a job specific position description which eliminate the hazard without adding any additional class safety system: identifies what the company vision and values are, steps to the greasing task. the position accountabilities and safety obligations. 1. A culture of participation The solution had to be simple, cost effective and be fitted 4. Establish scheduled and unscheduled to the existing fleet of service equipment. For a safety system to succeed, its development activities To design an effective solution, ADE researched all must be prioritised and driven by management and Naturally, the mining environment can throw up aspects of the task at hand, including understanding the experienced safety professionals. challenges in risk management which have not actions of the workers, the existing safety controls and Just as important is complete employee buy-in. To been identified in the advanced risk management the greasing hardware. achieve this, staff must also be heavily involved process. The research revealed the usual protective equipment, in the process. Establishing a culture of listening, To combat ad hoc risk, scheduled and unscheduled still currently being used on mine sites, was not feedback, participation and good reporting practices risk minimisation activities should be established. protecting the workers and the standard process of from the outset is essential. Crews must understand removing the hose from a greasing nipple in the case of a that reporting hazards and incidents won’t result in 5. Embed a reporting system blockage was intrinsically flawed and dangerous. blaming, but learning and improving. Proactively monitor the performance of workplace “ADE undertook a thorough research of the protective 2. Continuous monitoring health and safety through an embedded reporting equipment currently in use and found it to be inadequate system and a culture of open communication. offering very little protection to service persons,” ADE A company’s workplace health and safety performance Sales Manager Eric Tomicek said. “Not only is this a big is measured by the lead and lag results delivered to These mechanisms may include weekly safety risk for service persons, but also highlighted a massive stakeholders in relation to key performance indicators. teleconferences between management, monthly risk for mining companies who need to provide safety reporting of project KPIs, HSE committee Monitoring the weekly, monthly and yearly results for their staff.” meetings and performance review reports and a continuously enables management to keep tabs on comprehensive database to manage safety and The solution ADE provided is an easy-to-use device how well the company is keeping workers injury and training input and output requirements. that removes the pressure from the hose, removing the incident free. More important than the lag results hazard. are the proactive activities which prevent injury or 6. Revitalise incidents occurring in the first place. ADE Manufacturing Manager Daniel Kirk said the device To keep the system current and effective, at least design means it was retrofitted to existing systems 3. A quality cycle for continuous one comprehensive review per year where all key and was compatible with most industry standard improvement stakeholders participate in the improvement and components. renewal process should be conducted. “We engineered a very easy to use grease pressure A safety system is never finished or complete. It is a release device which is remote operated using a garage continuous journey requiring constant attention. 4. Recognise and reinforce door style remote with a green lamp indicating when the Developing and implementing a quality cycle Recognising safety performance is the final step to system is active,” he said. establishes a method for continuous improvement. A engaging employees. Since completion, Downer has installed the remote cycle can be summarised into six steps: In-house initiatives that recognise and reinforce grease pressure release system to their entire fleet of 1. Create policy and set objectives good safety practices and exemplify other service vehicles. NMC company values are an important function for Recruit the right personnel and ensure they keeping safety front of mind. understand the health and safety expectations from day one. Action Drill & Blast is a leading integrated drill and blast contractor to mining, coal and civil projects. Align safety with clients’ requirements without compromising your own standards. This can be The company’s safety system, ActionSAFE, is the achieved through site-specific risk assessment product of five years of ongoing development to workshops to facilitate better planning, procedures and create a program that would lead the industry in site practices. professionalism and safety. ActionSAFE exceeds Australian industry safety 2. Implement advanced risk management benchmarks and to date has achieved more than 1600 Downer’s entire fleet of service vehicles are now Mining operations have inherent risks, some of which continuous LTI-free days across ADB’s operations. NMC fitted with safer pressure release systems. 29 Problem-solving cushions take out national award Air Springs Supply has won the Best Practice in WH&S high durability and power with gentle, precisely controlled those employed in the oil and gas industries, where safety category of the 2016 Australian Bulk Handling Awards lifting that can spread the load over broader surfaces of the and reliability of fixed and mobile plant is crucial,” he said. for its Pronal lifiting cushions that help lift irregular object being lifted, rather than focusing the power on point “Similarly, mining and pipeline applications need to shapes, delicate load surfaces or loads in problematic site loads potentially creating slippage hazards or damage to happen as time-efficiently as possible, with the least conditions. the object being lifted. downtime in the case of maintenance and repairs.” The design innovation recognised by these awards can “Avoidance of damage is obviously a prime consideration Thin, deflated Pronal cushions can be used in confined in maritime and offshore structures and vessels, such as lift weights of more than 60 tons with ultra-thin bags (just spaces underneath a range of inaccessible loads from 20mm thick deflated), which are particularly relevant engines through to foundations of bridges, buildings, to applications such as construction and infrastructure, machinery, pipeline structures and resource development pipelines, oil and gas, water and wastewater as well as rigs requiring lifting for inspection and repair. heavy industry, transport and mobile and stationary plant in industries such as mining and energy, manufacturing “Sometimes cranes, slings or cylinders may not be the right and rail. choice for lifts with particular technical challenges in terms of lifting surfaces or surfaces to which lifting force is to be “Winning this award is a great honour for us,” Air Springs applied,” he said. Supply Technical Product Manager James Maslin said. “Where companies are contemplating considerable “Pronal technologies assist bulk handling companies investments in custom-engineered conventional lifting to do tricky tasks more safely and efficiently, and to be platforms, it may be well worth considering the simple recognised amongst the industry’s best and brightest is principle of pneumatic actuation.” testament to the hard work put in by our entire team.” This can be particularly useful when working in confined The lifting cushions can delicately raise loads ranging from spaces such as trenches and mines where there is little heavy vehicles and pipelines, through to beams, building room beneath pipelines and plant. components, machinery and resource development Rapid inflation of Pronal cylinders is also a major advantage structures, as well as resource exploration. in emergency situations, for which special low-pressure James Maslin with award. Mr Maslin said Pronal bags combine the advantages of types are also available. NMC

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#TheMetsoWay 30 CRUSHING, SCREENING AND CONVEYING Reliable solution to spring problems

BY CHLOE VELLINGA wave of OEM equipment that was imported to Australia when companies rushed to keep up with demand during Mining equipment such as bulk handling machinery, the mining and economic booms. conveyor belts and mineral processing units take a real beating in the day-to-day operations of minesites across “Companies using this OEM equipment will be driven by Australia. the twin imperatives of having to work with equipment harder than ever to maintain production volumes, while With this in mind, many quarry and bulk material handlers simultaneously ensuring that nothing breaks down to Marsh Mellow springs need little upkeep. will be looking at ways to replace isolators used in their interrupt cash flow,” Mr Maslin said. crushers, grinders, conveyors and vibrating screens to ensure productivity is kept at maximum efficiency. To combat this growing issue, Air Springs Supply – one of which results in less overall cost.” Australia’s leading suppliers of air springs and associated According to Air Springs Supply Actuation and Isolation Marsh Mellow springs operate silently with more spring pneumatic technology – have released a maintenance-free Specialist James Maslin, machinery can literally shake travel and greater load capacities than conventional coil alternative to metal springs that doesn’t require lubrication itself to pieces if good isolators are not fitted to these units, springs. or upkeep and will not suffer permanent compression like damaging the work environment, causing costly delays, metal springs do. The cylindrical springs are constructed of a solid rubber hazards and possible injuries to staff on site. core with a hollow centre and several plies of fabric These robust engineered rubber and fabric Marsh Mellow The search to upgrade many of the machines reliable reinforced rubber as an outer cover. springs are manufactured by Firestone and are used isolator replacements is predicted to ramp up over the next worldwide in machinery such as shaker screens, crushing This unique use of materials allows the product to have few years as mining operators focus on maintaining the equipment, vibrating bins, conveyors and other equipment great flexibility and precision when operating. which is subject to vibration. “Existing coil springs supporting crushing and screening “While no one spring design is ideal for all applications, equipment have to put up with a lot in life,” Mr Maslin said. Marsh Mellows offer considerable advantages over both “Not only are they expected to function reliably in often conventional coils and solid rubber springs for many tasks,” wet and corrosive environments, they also have to cope Mr Maslin said. with rapidly changing loads and sudden severe impacts. “One of the big advantages of Marsh Mellows is that they “Not surprisingly, many suffer trauma as a result. One offer constant vibration isolation with changing loads, problem is noisy coil chatter as loads change. Under meaning that their variable spring rate allows for a nearly constant battering, coils may also suffer spring set or constant natural frequency under the impact of such loads. permanent compression below their original design A step up on conventional “The high-load capability of Marsh Mellow springs also height. This means they do not perform to their original solid rubber springs. means fewer springs may be needed in an application, specifications.” NMC Pushing innovation

The new diffused buffer bin loader design for bulk “As with many ideas that are simple in principle, the materials conveyor chute systems has been built to use a diffuser loader needs thoroughly sound engineering and diffuser loader to distribute incoming feed more evenly to be scalable to make it work faultlessly in practice. over a greater area of the surface, instead of concentrating “We had to totally rethink the manufacturing process it into one large inefficient cone-shaped peak. to produce a design that could be profitably and cost- Chute Technology Director and veteran materials efficiently engineered to respond to particular issues. The handling, ports and mining process engineer Dennis new system is much easier to custom-engineer to fit into Pomfret said this new system would increase productivity existing and new systems as part of flow improvement.” and efficiency in reclaiming and ship loading functions by When it comes to conveying coal in particular, Chute up to an estimated 20 per cent. Technology installed a coal deflector hood in the head end Chute Technologies’ diffused buffer bin. “The classic problem of how to fill a rectangular space with of the conveyors feeding the bins. a free flowing material that naturally assumes a rounded BY CHLOE VELLINGA This installation will now deliver a vertical product stream conical shape has now been solved,” he said. into two diffusers, giving a total of four diffused product In what is an Australian first and possibly even a world “We believe this innovation is revolutionary, with huge outlets. first, Chute Technology – a group of three Australian potential for the mining and bulk materials handling “A design objective was to use as much of the existing innovators – have joined forces to rethink the practices of industries. We’ve had it patented approved so it’s ready equipment as possible to minimise costs and installation material handling, including mineral processing on mine for Australian markets.” time,” Mr Woods said. sites across the nation. The improved process also avoids mechanical wear and “The new design deals with the existing issues and at the The company’s three principal partners TW Woods tear, in time providing a more profit-enhancing product same time will provide an overall increase in the loading Construction, McKajj Design and Management and for mineral processing companies within the mining system efficiency. Dennis Pomfret Engineering have come together to industry. produce a diffused buffer bin which raises volumetric “Similar principles are capable of being designed and capacity for handling flowing bulk materials at mines, “Materials handling professionals who see and are installed for very broad range of materials handling mineral process plants, energy plants, railway loading implementing the system say it’s brilliantly simple in technology in use globally. The beauty is the improvements facilities, material handling facilities and factory concept and wonder why someone hasn’t thought of it offer a generational major step up in efficiency, attainable at processing and conveying plants. before,” Chute Technology Director Tom Woods said. modest cost with high returns.” NMC MINING and the ENVIRONMENT

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The Mining and the Environment Conference is organised by the Association of Mining and Exploration Companie P: 1300 738 184 E: [email protected] ASSOCIATION OF MINING AND EXPLORATION COMPANIES AMEC-104 32 PNG FOCUS PNG PM backs resources sector BY JACK MCGINN to the Mining Act prior to the 2017 National Election.” “But, I am confident we have established the foundation, substance and capacity to continue to weather this storm. Papua New Guinea Prime Minister Peter O’Neill has Mr O’Neill said when changes were made in time, assured Australian miners he is not considering changing the industry would be given plenty of opportunity to “We have navigated a safe path through these troubled the nation’s mining act ahead of the country’s national contribute. times for a number of years now and we will continue to election in 2017. move forward with determination.” “It is only right the new parliament be granted the mandate The nation has long debated altering the Mining Act to give to carry forward any changes to the existing mining Among PNG’s emerging resources projects are PanAust’s landowners more control of mining wealth, with an act legislation. joint venture Freida River copper-gold project and Era drafted in recent years to amend the original introduced in Resources’ Yandera copper-gold project. “Again, I stress that the industry will be fully consulted. 1992. Polling in the PNG national election begins on June 24 and “Any change to the act will ensure there are equal benefits But speaking at the opening of the PNG Mining and ends on July 8. NMC for landowners and provincial governments.” Petroleum Investment Conference in Sydney in December, Mr O’Neill said any changes to the act would be made The Prime Minister said the Government’s recent decision Peter O’Neill carefully and after full consultation of all stakeholders. to give 33 per cent of direct shares in the Ok Tedi mine, addressing the previously owned by BHP Billiton, to landowners and conference. He ruled out making changes before the 2017 national the provincial government and 17.4 per cent of shares election scheduled for July. in Bougainville Copper, previously majority owned by “Our aim is to achieve a fair deal for our people, both Rio Tinto, to landowners was a clear indicator of the landowners directly impacted and also the country as Government’s desire to share mining’s benefits with the a whole, and this has been a driving force behind the people. proposed changes,” Mr O’Neill said. Despite the commodity price challenges of recent times, “I know that many have worked tirelessly to develop the Mr O’Neill said it was still a good time for companies to draft act, both from government and industry. I thank you invest in PNG. for engaging with each other so honestly and openly. “2016 has certainly been a challenging year and there is no “I want to state categorically that there will be no changes doubt 2017 will be similar for the global economy,” he said.

BY JACK MCGINN Underwater mining pioneer Nautilus Minerals continues Underwater explorer to progress the construction of a production support vessel (PSV) as it targets mining off the coast of Papua New Guinea in 2019. sets sights on 2019 Nautilus is the first company to commercially explore the seafloor for massive sulphide systems and is developing the flagship Solwara 1 project in PNG territorial waters with local partner Eda Kopa. The PSV will serve as the base of the company’s seafloor operations and is being developed by teams at the Fujian Mawei Shipyard (FSM) and Marine Assets Corporate (MAC). “The thruster rooms have just recently been lifted into position on the vessel,” Nautilus Chief Executive Officer Mike Johnston said in a release to the Toronto Stock Exchange. “The accommodation module construction is progressing rapidly, with many blocks being assembled alongside the dry dock. It is expected to be lifted onto the vessel by the end of the month. “We are now looking forward to progressing the final build phase and fit out of the vessel with the team at FSM and MAC.” The progress is a welcome sign for the innovative prospect which in August last year announced financing troubles before securing bridge financing of up to US$20 (A$26.56) million from key shareholders. Having first been granted an exploration tenement in the Bismarck Sea in 1997 – the world’s first for such deposits – Nautilus is now eyeing the first quarter of 2019 for commencement of operations at Solwara 1. “Subject to further financing, Nautilus’ objective remains to develop the world’s first commercial high-grade seafloor copper-gold mine and launch the seafloor resource Construction process. Image: Nautilus Minerals. production industry,” the company said in a statement. NMC BULLS N BEARS 33 Lucrative lithium leases

BY MATT BIRNEY lithium plays,” Rare Earth Minerals Executive Chairman DIRECTOR, BULLS N BEARS Andrew Suckling said. In what appears to be an endorsement of its latest strategy “We will leverage our mining, marketing and lithium to secure five highly prospective lithium leases in Namibia, industry knowledge and experience to provide continuing Auroch Minerals has attracted the attention of Rare Earth support to Auroch, and to assist management and develop Minerals, a London and New York-listed fund that takes these prospects rapidly up the development curve. strategic interests in undervalued lithium projects around “We look forward to a close collaboration with the the globe. management of Auroch as it develops its lithium interests.” Auroch announced recently it would make a placement to Last month Auroch announced it had applied for five Rare Earth Minerals totalling $650,000 at 10c a share with exploration licenses in Namibia in the south of Africa. a one for two attaching option expiring in October 2018. The prospects are in the Karibib region within Given that Auroch already has $6.4 million in the bank and Namibia, which is well known for its extensive lithium $2 million in receivables, the placement looks more like a mineralisation. 90 per cent of Namibia’s historic lithium strategy to secure a partner capable of funding the project production comes from this region and the Namibian into the future rather than a call for immediate cash. Government has identified over 100 pegmatite The placement will give Rare Earths a 7.7 per cent stake in occurrences in Karbib. Lithium is often found within the company and it has already added nearly 70 per cent to pegmatite geological structures. its purchase price with Auroch now trading at around 17c The Rubikon and Helikon lithium mines operated in the a share. Karibib region in the 1980s, with both ore bodies occurring Rare Earth Minerals is also major shareholders in the within pegmatite bodies that were up to 50m wide and revered Sonora Lithium project in Northern Mexico and several hundred metres long. Auroch Minerals Chief Executive holds a sizeable stake in the Cinovec Lithium and Tin Since the lithium boom kicked off a year or two ago, Officer Andrew Tunks. Project in the Czech Republic. The two projects combined mining types have been furiously pegging lithium leases boast 11.3 million tonnes of lithium carbonate equivalent. in Western Australia, but despite a few extraordinary lithium mines in Namibia, it will be onto something big. Rare Earths Minerals are long on lithium investments and examples such as Pilbara Minerals and Neometals, there is With a significant track record of involvement with hold a significant portfolio of investments around the a growing recognition that a lot of new lithium projects in world-scale lithium projects such as Sonora in Mexico, it is globe, most of which are in either Australia or the United WA lack tonnes and therefore scale. unlikely Rare Earth Minerals are punting on Auroch finding States. If Auroch can find pegmatite swarms on its ground something mediocre in Namibia – and if there is something “Rare Earth Minerals continues to deploy its expertise anywhere near the scale and size of the adjacent there, Rare Earth looks like it has the financial horsepower in identifying value investments in highly prospective mineralised bodies that housed the Rubikon and Helikon to find it. NMC

Legend/Creasy identify strong conductors at Fraser Terrain creates excitement with serious gold hits Range near Leonora At a glance There’s nothing like the hint of a good metallic conductor Terrain Minerals may have transformed its Great or two to get the base metal bulls hoofing at the dirt and Western gold project near Leonora into something Lithium Australia sets sights on global lithium Legend Mining hasn’t disappointed in that regard. The much more serious after the company reported a recycling business company recently announced it had identified a number of number of near surface gold hits during its latest drilling Lithium Australia recently announced it was adding yet conductors, which followed the identification last month campaign. Best results include 3m at 26.6 g/t gold from another string to its already diversified bow as the company of the right rocks for a Nova/Bollinger style deposit at its just 8m down hole, 2m at 24.4 g/t, 5m at 6.98 g/t and looks to set up a lithium recycling business from discarded Rockford project in the Fraser Range. 2m at 12.1 g/t gold. lithium-ion batteries. Lithium recycling from batteries is almost non-existent at the moment, presenting a real opportunity for Lithium Australia to carve out a niche.

Blackham firms up plans for two super pits in Investors follow The Force Wiluna Force Commodities has easily raised almost $1 million Chinese money starting to flow into Northern Blackham Resources has found even more gold in the to accelerate its exploration program after experiencing Minerals historic Wiluna gold field and is now firming up plans for some super high-grade drill hits at the Halls Peak project Northern Minerals has taken another step towards two large scale open pits or ‘upper pits’ to feed its newly in NSW. One drill intersection was a whopping 99m building Australia’s first heavy rare earths mine after recommissioned mill. The Perth-based gold producer long grading 3.59 per cent zinc and lead with an 11.2m it banked another $5.5 million in equity funding from revealed the open pit expansion plans this week after high-grade section grading of 19.71 per cent zinc and China’s Huatai Mining. The latest payment reaffirms the announcing more exceptional drill hits from last year’s 10.77 per cent lead. Another intersection showed 1.5m at Chinese company’s commitment to Northern Minerals’ major drill program. 48.13 per cent zinc. proposed Browns Range heavy rare earths pilot plant near Halls Creek in WA. 34 SPOTLIGHT ON VANADIUM Vanadium battery buzz builds

BY JACK MCGINN resource of 160 million tonnes at 0.28 per cent vanadium pentoxide. Glamour commodities graphite and lithium have caught the eyes and minds of mining investors in recent years in First production at Mount Peake is scheduled for early line with the emergence of the lithium-ion battery market. 2018 subject to approvals. In February, TNG entered a MoU with Downer EDI to identify opportunities for the latter’s Technological advancements by companies such as participation in the project’s development and operation. Tesla, through their Powerwall home battery systems and electronic cars, have generated significant interest in the In WA, Neometals released the results of a pre-feasibility space. study on its Barrambie titanium-vanadium-iron project in August last year, outlining the potential production of While traditionally considered a steel-making component 2000 tonnes per annum of vanadium pentoxide over an and often produced as a byproduct, vanadium appears initial 19-year mine life. set to join the pair among the battery hype as companies explore its potential to meet battery storage needs on a The company is undergoing testing before committing to a Vincent Algar. commercial level. feasibility study. One such company is the aptly named Australian Flinders Mines, Black Ridge Mining, King River Resources tonnes produced globally. Vanadium, which last year penned early-stage deals with and Todd Corporation each also hold projects with German firm Gildemeister and commercial Australian solar vanadium resources in the state. Australia has not contributed to global vanadium market company Sun Connect to facilitate the development and mix since 2014, while prices in 2015 fell in line with the Meanwhile, the mothballed Windimurra vanadium and distribution of vanadium redox flow batteries. Chinese economy’s slowdown given the commodity’s main iron ore mine in WA’s Mid West has proved a headache use is still in the production of steel. Vanadium Australia is developing the Gabanintha for multiple owners, with fire most recently forcing the vanadium deposit in Western Australia. project’s closure in 2014. However, Mr Algar said demand for vanadium would increase significantly should the mineral’s use in battery Australian Vanadium Chief Executive Officer Vincent Algar Atlantic Limited, the project’s owner prior to its two applications take off as expected, with demand in a number told National Mining Chronicle the vanadium redox flow operating subsidiaries entering administration following of key areas. batteries, which work using a liquid containing vanadium the fire, purchased Windimurra from the receivers of the pentoxide within an electrochemical cell, had their subsidiaries in 2016. “They’re used for e-mobility units, particularly running advantages over lithium-ion batteries. remote communication units, farms as a continuous However, the company said at the time that it intended supplier of feeding robots, electric vehicle stations, tracking “Lithium batteries are really good at delivering large to keep the project on care and maintenance subject to stations for power, long-term power supply off-grid – there’s a amounts of power over a short period of time, but the more market improvement. lot of traction on Africa and India for things like that,” he said. often you use the battery the more you degrade it,” he said. Supply snapshot “The list goes on.” NMC “The thing with flow batteries is that they don’t degrade in the cycle.” According to statistics from the United States Geological Australian Vanadium installed its first CellCube vanadium Survey, China dominated global vanadium production redox flow battery storage system at a tree nursery in Mr Algar said while lithium batteries were a top prospect in 2015, turning out 42 million tonnes of the 79.4 million Busselton, WA in September last year. for domestic use, vanadium technology would have a significant advantage on a larger, commercial scale. “The lithium ion battery space is really driven by consumer demand, electric vehicles and the like,” he said. “But when you get to the big end of town if you want to have hours of storage at high power then you’ve got to look for something else.” “That’s why stations still use lead-acid batteries; because you can make them bigger. These vanadium redox flow batteries are really a long-term replacement for lead-acid batteries but much more powerful. “If you look at their implementations, they tend to be more business related, so it’s more of a business-to-business type solution rather than a domestic power solution.” The potential in vanadium was so strong that it prompted Australian Vanadium to change its name late last year – the company was previously known as Yellow Rock Resources. “We need to focus in that,” Mr Algar said. “Vanadium is a totally different spectrum and it has changed the game.” The Australian outlook Australian Vanadium’s Gabanintha project has a JORC 2004 compliant indicated and inferred mineral resource of 125.8 million tonnes at 0.7 per cent vanadium pentoxide, with a high grade indicated and inferred deposit of 60.4 million tonnes at 0.98 per cent. However, the company is not alone in its focus on vanadium development in Australia. TNG Limited holds the prominent Mount Peake iron- vanadium-titanium project in the Northern Territory, which according to a definitive feasibility study released last year will produce 17,560 tonnes per annum of Atlantic Limited’s Windimurra vanadium project has proved a headache in recent times. vanadium pentoxide over an initial 17-year mine life from a Image: The West Australian BUSINESS DIARY 35

February 28 April 25-27 The Smart Mining Networking Event by Austmine will The largest technology and equipment exhibition for the welcome Fortescue Metals Group Manager Operations mining industry, MiningWorld Russia will this year see Planning Anthony Kirke to speak. His discussion will eight Australian companies showcase their innovative focus on working smarter to achieve better results while services and products. Bradken, Datamine, Deswik, Gekko highlighting the benefits of creating lasting partnerships Systems, Maptek, MICROMINE, Russell Mineral Equipment and relationships with vendors. Joining Fortescue Metals and Scantech will all present at Russia’s best-attended in 2010, Mr Kirke brings with him a wealth of experience event in Moscow, along with other companies from from different sections of the company. around the globe. The event showcases the latest mining austmine.com.au/events equipment to increase profitability and productivity in the mining industry, attracting interest from both large Annual Geoscience Exploration Seminar. and small companies. Austmine also offers a special 15 per cent discount to their members wanting to take part in the event. March 28-29 miningworld.ru NMC Held at the Alice Springs Convention Centre, the Annual Geoscience Exploration Seminar (AGES) will look at the expanding opportunities for minerals and energy exploration in the NT. The Mining Services Expo is also a part of the event, showcasing NT businesses and the support on offer for exploration and mining ventures. In it’s 18th consecutive year, the event is the result of an ongoing Prospectors and Developers Association of Canada. commitment between government and industry to grow and expand the NT’s exciting resource sector. March 5-8 dpir.nt.gov.au/mining-and-energy/ages The annual Prospectors and Developers Association March 28-30 of Canada (PDAC) event held in Vancouver is the world’s leading convention for mineral exploration, bringing In it’s eighth international conference on deep and high both the mineral and finance industries together. The stress mining, Deep Mining 2017 will be held in Perth event features over 900 exhibits, technical sessions, short focusing on a number of key themes around safety, courses and networking events for the 22,000 attendees innovation, best practice and hazards. The conference will from 125 different countries that all come together across bring together key speakers from around the world to share the four days. their knowledge and insight about the industry. MiningWorld Russia. pdac.ca deepmining2017.com

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African focused phosphate explorer Minbos Resources Riva have secured a substantial cobalt exploration Paladin Energy has sold a number of non-core have merged in a transaction worth about US$14 ($18.59) opportunity by entering an agreement with Rosslyn Australian exploration assets to Uranium Africa Limited million with joint venture partner Petril Phosphate Hill Mining under terms of an exclusive non-binding in a sale worth US$1.8 ($2.4) million. The assets include Limited. Minbos will acquire all outstanding shares in MoU. Riva has an opportunity to take a 75 per cent share its Western Australian-based Oobagooma and Northern Petril that it doesn’t already own. The deal consolidates in the cobalt, copper and gold mineral rights at the Paroo Territory-based Angela/Pamela projects. ownership of the Cabinda Phosphate Project in Angola and Station lead mine in Western Australia through exploration Petril’s two other phosphate projects in Angola. expenditure totalling $US4 ($5.3) million over four years. Metalicity Limited has acquired a highly prospective lithium exploration portfolio in the Pilbara region of BHP Billiton and Hatch have entered into a collaborative A three-year information technology infrastructure Western Australia from Fortescue Metals Group. The development agreement, with a focus on the development services and digital transformation contract at oil and acquisition includes the prospective Lynas Find North of key technological advancements spanning the fields of gas company Woodside has been awarded to Indian IT Lithium Project. Three granted tenements make up the mining and mineral processing. consultancy business Wipro. The deal will see Wipro project in the Pilgangoora greenstone belt. “BHP Billiton will have access to Hatch’s proven technology- supply IT services across Woodside’s global portfolio, commercialization experience and deep mining domain specifically focusing on the bigger sites in Perth and Vector Resources have acquired a 70 per cent interest expertise in business process design, operational Karratha, and deliver infrastructure services to offshore in the Maniema gold project in the Democratic Republic performance, engineering, and digital systems,” Hatch maritime facilities and potential exploration sites. of the Congo. The project comprises seven exploration Performance Innovation Director Damien Harding said. licenses within the northern part of the Kibara belt, BHP Billiton have secured the winning bid to acquire a containing a wealth of deposits including tungsten, tin, beryllium, gold and tantalum. Intermin Resources has added another gold exploration 60 per cent stake in a joint venture to develop the Trion project to its extensive portfolio through the acquisition field in the deepwater Gulf of Mexico, while Mexico’s state- of the Kanowna North gold project and a new exploration owned oil company Pemex retains a 40 per cent interest Adding more pace to the US$1.9 ($2.52) billion Amrun tenure at the Yarmony project in the Kalgoorlie-Boulder in the blocks. BHP’s bid involves an upfront payment of bauxite project in North Queensland, Civmec region of WA. Covering 275.35 hectares, the Kanowna US$62.4 ($82.88) million and a commitment to a minimum Construction & Engineering has been awarded two North project is made up of one granted mining license work programme, estimated to be a maximum of US$320 substantial contracts totalling US$117 ($155.4) million. and two granted prospecting licenses. ($A425) million. The first contract includes Civmec’s construction of the processing facility including a bauxite beneficiation plant and associated water, electrical and lighting systems. They will supply 11,800 tonnes of steel and precast concrete to the project. The second includes the part supply, fabrication, surface treatment, mechanical and electrical install and modularisation of a stacker, reclaimer and ship loader for bauxite material handling.

Gascoyne Resources have made a purchase to become 100 per cent owners of the Dalgaranga gold project site in Western Australia.

Engineering and construction company Fluor have been awarded a front-end engineering, design and optimisation contract at the Colluli potash project, an advanced greenfield sulphate potash development in Eritrea, East Africa from Australian developer Danakali.

Hexagon Mining has acquired Perth-based developers of mobile mine software applications for field data collection, fleet management, production management and reporting MiPlan. President of Hexagon Hélio Samora said MiPlan’s solutions suite would be a formidable addition to the Intermin Resources Exploration Manager David O’Farrel. Image: The West Australian. company’s technology portfolio.

Intermin Resources has executed a joint venture Oilfield services companySchlumberger have agreement with AFX Resources, covering the Richmond strengthened its production services portfolio by Integrated engineering company RCR Tomlinson has vanadium-molybdenum project in north-west Queensland. purchasing Perth-based developers of down hole tools for been awarded a contract for the engineering, procurement AXF will fund and run US$4 ($5.3) million of technical flow control, well intervention and well integrityPeak and construction of a processing plant at Western Australia’s Pilgangoora lithium-tantalum mine from Pilbara beneficiation and commercialisation studies over four Well Systems. Minerals. The contract is worth a maximum US$111 ($147.4) years in order to earn a 75 per cent interest in the project. million. MACA have expanded their business by entering into an acquisition agreement with the shareholders of Rio Tinto have awarded an iron ore contract in the privately owned mineral processing solutions business Engineering service specialists EnerMech have taken Pilbara region of Western Australia to Perth-based mining Interquip. MACA acquires 60 per cent of the issued their first step into the electrical and instrumentation contractor Decmil. In a contract worth US$29 ($38.52) capital of Interquip for approximately US$5.8 ($7.7) million, sector by acquiring oil and gas electrical services supplier million, Decmil will design, construct and commission subject to settlement adjustments. The transaction will be EPS Group with bases in Australia and the United States. new facilities at the Nammuldi and Silvergrass mines. settled with a combination of 70 per cent cash and 30 per The move allows EnerMech to gain a wider exposure to the Scheduled for completion in late 2017, the scope also cent MACA shares. MACA have the option to acquire the infrastructure, power and defence markets and help meet includes modifications and extensions to existing facilities remaining 40 per cent of Interquip after three and a half demand for integrated commissioning and maintenance at the Nammuldi central mine services. years. services. NMC 37 Movers and achievers

Following an exhaustive Tap Oil Limited has appointed geologist and geophysicist Wal King has stepped down global search, Fortescue James Menzies to the position of Executive Chairman. from his position as Chairman Metals Group has appointed The founder of Salamander Energy joined the board in and Non-Executive Director Executive Director Elizabeth May 2016 as an Independent Non-Executive Director. He of Sundance Resources. Gaines to the role of Chief succeeds Doug Bailey, who’s retirement from the board Geologist David Porter, Financial Officer (CFO). following four years as Chairman was made effective in who owns 30 per cent of the Experienced in a range of December 2016. company, replaces him. industry fields including global, operational and commercial sectors, she Following five years with Toro Wal King. Image: Atlas Iron have appointed Elizabeth Gaines. will continue in her position Energy (including almost four The West Australian. experienced resources as an Executive Director as Managing Director and executive Cliff Lawrenson and remain in her role as commissioner of Tourism WA CEO), Dr Vanessa Guthrie as Managing Director and Chief Executive Officer, effective following the appointment. Upon commencement as CFO has departed the company. from February 1. Mr Lawrenson brings extensive managerial on February 6, she relinquishes her other non-executive Under her leadership, Toro experience in both the resources and investment banking director positions. have enhanced its portfolio industries to the role. He was previously the Chief Executive by becoming a uranium of Pilbara iron ore development company FerrAus company with additional Limited and will complete his role as Managing Director of Recognised for providing effective maintenance solutions Vanessa Guthrie. strategic investors and a phosphate company Avenira Limited. for KCGM and Pilbara Iron, automotive and industrial Image: The West significantly enhanced asset Australian. supplier Schaeffler have been acknowledged at the 2016 base. Bulk Handling Awards in the category of Excellence in Australian Mines and Metals Association (AMMA) Transport and/or Conveying. At KCGM’s Super Pit and Mt Chief Executive Steve Knott has been appointed a Charlotte Gold Mines in Kalgoorlie, Schaeffler provided a Mining Executive and Director of Operations with Member in the General Division of the Order of Australia package of custom fabricated sliding sleeve housings and Fortescue Metals Group Nick Cernotta has joined the (AM) for “significant services to the resources and energy FAG spherical roller bearings for tube mill output processing, board of Australian lithium developer Pilbara Minerals as industries, to the advancement of women and to industrial which in turn lessened downtime and maintenance costs. an Independent Non-Executive Director. He brings over relations”. Leading AMMA since 1998, Mr Knott has The award also recognised Schaeffler’s solution at Pilbara 30 years experience in various senior executive roles overseen the organisation’s national policy development, Iron’s Dampier Port Operations that reduced the cost of throughout the private and public sectors of the mineral workplace consulting services and employment support replacing the bearings on bucket wheel excavator drivers. resources industry to the role. programs. NMC

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To find out more contact Sonia Turner E [email protected] P (08) 9245 9900 www.scopesystems.com.au 38 OUT AND ABOUT

Less than a month after commencing with the company, Schaeffler Australia Managing Director Andre Kluge accepted a highly commended award at the 2016 Bulk Handling Awards. Schaeffler received the accolade in the Excellence in Transport and/or Conveying category for its innovative maintenance solutions for KCGM and Pilbara Iron. The awards were held at Doltone House in Sydney on November 24 and recognised the most innovative, efficient and safe technologies in the bulk handling industry. Pictured Schaeffler Australia Industrial Sector Manager Roy Hill Holdings was awarded the 2016 AMEC Environment Award in December Martin Grosvenor (right) accepting the highly commended award from National in recognition of its efforts to minimise impact to mangroves in Port Hedland. Sales Manager of Bulk Handling Review Patrick Roberts (left).

Gladstone Ports Corporation welcomed a distinctive blue CAT D11T dozer to its RG Tanna Coal Terminal in December as part of its Movember initiative to raise awareness and funds for men’s health causes. The initiative is a collaboration between GPS and Hastings Deering. Pictured (left to right) are GPC Unloading Maintenance Superintendent Dave Skinner; CEO Peter O’Sullivan; Cargo Handling Operations General Manager Alan Brown; Coal Terminal One of the world’s largest independent oil and gas companies, Bulk Handling Manager ConocoPhillips provided WA high school students with a taste of Rob Torrisi and People university science at Murdoch University. The event aimed to encourage and Community General students to learn more about the science, technology, engineering and Manager Rowen Winsor maths (STEM) subjects available to study and the possible careers paths. with the new dozer. Image: Matt Gedling.

Attendees at the Austmine Members and Miners End of Year Networking Event held in Perth on November 30, which discussed the mine of the future. The event focused on key themes including digital, workforce diversity, renewable energy and water supply, business models and partnerships and the mining value chain.

Teck Australia and Rox Resources received the prestigious Association of Mining and Exploration Companies Prospector Award at a dinner in December in recognition of their joint venture discovery of the 2013 Teena zinc/lead discovery in Western Australia.

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