THEAUSTLIAN

M R A product of PP100007123 ININGA EVIEW Incorporating THE USTLIAN Publications & E  R Exhibitions Australia Pty Ltd OIL – GAS – ELECTRICITY – RENEWABLES ISSUE 120, DECEMBER 2017

THE $800M BACK TO PETER WRIGHT CAIRN BLACK BASS METALS HILL MEGA PROJECT MINING IN THE HUNTER THE NEWS p6 VALLEY p19 INTERVIEW p63 MAJOR COMMODITIES SNAPSHOT p4 BALANCE OF POWER Preparing to step down after six and a half eventful years at the FMG helm, Nev Power is leaving behind some mighty boots to fill. FEATURE p23

Image: FMG.

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NEWS 1 PUBLISHED BY Commodities Snapshot 4 CU AT THE TOP ABN 28 112 572 433 A product of The Contractors 12 Publications & Exhibitions Australia Pty Ltd Technology & Innovation 14 COMMODITY FOCUS: COPPER GENERAL MANAGER International 16 Brad Francis [email protected] Commodity Focus: Copper 18 MANAGING EDITOR Reuben Adams [email protected] SPECIAL FEATURES JOURNALISTS Cameron Drummond The Hunter Valley 19 featurenews p1918 [email protected] Fortescue Metals Group 23 Elizabeth Fabri [email protected] The Upper Spencer Gulf 25 OUT OF THE GRAPHIC DESIGNER OZ Minerals 31 ABYSS Charlotte Lufino [email protected] Rio Tinto Amrun 33 THE UPPER SPENCER SALES EXECUTIVES Pacific National 35 Beej Francis, John Carter, GULF Chris Foley, Penny West, Sandfire Resources 37 Andrew Collett PRINTER Rural Press CONTACT US INDUSTRY SPOTLIGHT P: (08) 6314 0300 F: (08) 9481 7322 Companies Gearing Up 38 160 Beaufort Street, Perth, WA 6000. Conference & Function Venues 40 PO Box 8023, Perth BC, WA 6849. E-mail the editor at [email protected] Corrosion Control 41 For all other emails to staff, the standard convention is, first name (only) @miningoilgas.com.au Drug & Alcohol Education 44 The Australian Mining Review is a free publication to all mine sites and mining companies in Australia. Its value is $11 an issue. (Includes GST, postage and Haul & Mine Road Management 45 handling). The copyright is vested in the Proprietors of The Australian Mining Review; neither whole nor any part featurefeature p p2619 of this issue may be reproduced without permission. Industrial Tarpaulins 48 The views expressed in this publication are not necessarily those of Miningoilgas Pty Ltd and its staff, but are those of the respective author who accepts METS at the Mine Site 50 sole responsibility and liability for them.

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MAJOR COMMODITIES SNAPSHOT

GOLD $US/oz IRON ORE $US/t WATCHLIST 62% Fe CFR China Copper Explorers 1340 63.5 1330 1331 63 62.8 1320 62.5 1310 62 Minotaur 1300 61.5 61.41 Exploration 1290 61 1285.8 ASX: MEP 1280 60.5 1270 60 60.11 The explorer has confirmed 1260 1276.06 59.5 high-grade copper-gold 1250 59 1240 58.5 mineralisation from the first September October 9-Nov September October 9-Nov two holes at its Jericho target in north-west Queensland, part of the COPPER $US/t COBALT $US/t LME Price LME Price Eloise joint venture with OZ 6850 62000 6796.84 Minerals, and has 6800 61500 61449.93 committed to further 6750 61000 6700 6777.01 drilling. 60500 6650 60050 60000 6600 6582.68 59500 6550 59715.91 Alderan Resources 6500 59000 ASX: AL8 6450 58500 September October 9-Nov September October 9-Nov Listed on the ASX in June, copper hopeful Alderan Resources’ shares have ALUMINIUM $US/t ZINC $US/t soared from 20c to a high LME Price LME Price 2140 3300 of $1.95 mid-November 2130.02 2130 3273.52 3250 amid positive drilling work 2120 at the Frisco copper project 2110 3200 2100 3231.98 in Utah. 2100.15 3150 2090 2080 3100 2070 3119.18 3050 Venturex Resources 2060 2078.08 2050 3000 ASX: VXR September October 9-Nov September October 9-Nov Additional thick high-grade copper intercepts have been confirmed at the LEAD $US/t NICKEL $US/t LME Price LME Price explorer’s Sulphur Springs 2550 12400 project in the WA Pilbara. 2505.76 12200 12229.92 2500 Six holes have been 12000 2504.01 11800 2450 completed to date with a 11600 seventh now in progress. 11400 2400 11200 11319.66 11230.36 2350 2376.81 11000 10800 2300 10600 September October 9-Nov September October 9-Nov

COMMODITY FOCUS COPPER PG 18

DECEMBER 2017 6 NEWS THE AUSTLIAN MINING REVIEW CU-River inks $800mill Cairn Hill funding deal The announcement comes after approval REUBEN ADAMS was granted for Iron Road’s $4.5 billion SOUTH AUSTRALIA Central Eyre Iron Project, which could AN $800 million expansion of CU-River’s create about 2000 jobs, and plans by the Cairn Hill magnetite operations near new owners of the Whyalla steelworks to Coober Pedy could create up to 1300 jobs, “Our immediate target increase production of iron ore from the providing another shot in the arm for South starting late 2018 Middleback Ranges. Australia’s resurgent mining sector. Minister for Regional Development The privately owned CU-River Mining is 3mtpa, rising to Geoff Brock said this proposed investment Australia has reached a funding agreement 15mtpa when projects in regional South Australia was welcome with its offtake partner, Chinese steel news for mining workers and businesses. producer Jiujiang, who will finance new that we already have “This long-life project shows that infrastructure to increase output; a in the pipeline go into unlocking the full potential of our magnetite 13,000m exploratory drilling program; and assets can create hundreds of jobs for the development of the Snaefell and Tomahawk production.” Far North and new infrastructure that can projects near Cairn Hill. boost our export potential,” he said. Part of the funding would be used for Privately-owned CU River is one of two associated infrastructure work, including “Our immediate target starting late 2018 “We will be using South Australian magnetite producers in South Australia road and rail upgrades and extensions. is 3mtpa, rising to 15mtpa when projects suppliers for goods and services wherever and has been operating Cairn Hill since that we already have in the pipeline go into possible, so there is a flow-in effect in terms The proposed development timeline 2016. production. of secondary job creation and stabilisation,” would see CU-River triple magnetite In June 2014, Cairn Hill was placed “We have received approval for the Mr Yong Gang Shan said. production to 3mtpa from two additional into administration by former owner IMX expansion of Pits 3 and 4 at Cairn Hill, “The industry standard is that as a pits at Cairn Hill, before ramping up to which are the keys for the immediate general rule, every job in the mining sector Resources who was one of the first victims a 15mtpa production target across an increase in our production, and a 13,000 creates three support jobs elsewhere. of a free-falling iron ore price. estimated mine life of 30 years. metre exploratory drilling program is “We now have offices in Adelaide and CU River, which bought the failed mine “In the past year or so we have produced currently underway to define the resource Coober Pedy and we are going through a in April 2015 from the liquidator of IMX, and exported one million tonnes of feedstock in pits 1, 2, 3 and 4.” process of recruitment for key positions. originally intended to extract copper and to Jiujiang Australia’s parent company in CU River has committed to using South “It is company policy to employ our own gold at the site but later switched its focus China,” CU-River managing director Yong Australian suppliers wherever possible on people for exploration and mining work, to iron ore after securing investment from Gang Shan said. the project. rather than outsource to subcontractors.” JiuJiang. Architect plans for $100m Hunter coal jobs on rise mining museum

ELIZABETH FABRI WESTERN AUSTRALIA

FORMER WA Government architect Steve Woodland has unveiled plans to build a $100 million mining museum in Perth “There’s been a to pay homage to the State’s rich mining history. sustained recovery in Mr Woodland, who now works as a business conditions principal director at architecture firm Cox, said the proposed museum would act as for coal mining in an educational facility for children, and a NSW over the last 18 place for events and celebrations. months, with increased “The Museum of Mining WA could offer experiences like no other in the world,” Mr commodity prices Woodland said. delivering jobs in our “Mining is in many ways a central part of who we are and yet our visitors see coal mining regions.” very little evidence of it in our city. Mr Image: Yancoal. Woodland said immersive technologies would be utilised to “transport the visitor” Hunter Valley Operations, NSW. into the mining arena to witness sounds for local economies,” Mr Galilee said. and shocks of a mining exploration, be ELIZABETH FABRI State in July; 1300 additional jobs year-on submersed below an oil rig rich in marine NSW year, and the highest amount since March “There’s been a sustained recovery in life, and drive a Haulpak truck by remote 2015. business conditions for coal mining in NSW control. HEALTHY demand for coal from key Of the newly created jobs, more than over the last 18 months, with increased The museum would also be home to international markets is delivering 1000 were based in the Hunter Valley, commodity prices delivering jobs in our coal an actual mine shaft, a real pit and other more jobs for the NSW mining industry, signalling good news for the 8000 plus mining regions. simulators to give visitors “compelling according to NSW Minerals Council chief mining supplier businesses across the “With the right policy settings that authentic experiences”. executive Stephen Galilee. region. make the most of growing opportunities, Mr Woodland hoped the museum would Recent figures from industry “Our NSW coal mining communities our coal mining industry can continue be built over the next 10 years, and had organisation Coal Services reported more have done it tough over the past few years, to deliver employment, investment and his sights set on the old East Perth power than 20,600 coal production jobs across the so this jobs boost mining is really good news economic stability well into the future.” station or the Burswood Peninsula as possible locations. “The museum would be a potent tourism driver for WA,” he said. MINING IN THE HUNTER VALLEY p19 NEED APPROVAL? Soilwater group provides a one-stop-shop for the life cycle of your project. We can obtain all necessary approvals for any jurisdiction or commodity for any stage or size projects. We can complete all relevant environmental studies in-house and can work with you to develop, construct, mine and close your project.

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 (08) 9228 3060  www.soilwatergroup.com [email protected] DECEMBER 2017 8 NEWS THE AUSTLIAN MINING REVIEW IN BRIEF Sodexo acquires Morris $440m contract win for Thiess

MINING SERVICES/WA

CIMIC Group’s mining services provider Thiess has continued its winning streak with two new contracts for a combined value of $440m at BHP Billiton Alliance’s (BMA) Caval Ridge and Peak Downs coal mines in QLD’s . Over three years, Thiess will deliver mining services for specific components of work including the Caval Ridge Southern Circuit. Thiess managing director Douglas Thompson said the company was proud to partner with BMA as it builds on its long history in Central QLD. “This contract will enable Thiess to deliver productivity efficiencies, working with BMA to bring additional job opportunities to the region,” Mr Thompson said. WGP on track for March production

GOLD/WA

MINCOR’s 267,100oz Widgiemooltha Sodexo integration director Keith Weston and Morris Corporation chief executive Fiona Berkin. gold project (WGP) in WA continues its march toward an early 2018 first Sodexo has exponentially grown its administrative services, waste management production date. CAMERON DRUMMOND Australian presence in the last two years. and catering. WA/QLD WGP mining operations have started In 2016, it won a $2.5 billion contract to “We share similar values including a after key approvals were received, with manage Rio Tinto’s Pilbara operations, and commitment to indigenous communities, only minor approvals required before FRENCH-based services provider Sodexo earlier this year a further $22m contract and a focus on developing sustainable local the project was “shovel ready”. has moved to purchase Australian for the miner’s Amrun bauxite project in businesses wherever we operate,” Sodexo competitor Morris Corporation for an QLD. A resource update incorporated the integration director Keith Weston said. results from two drilling programs, undisclosed sum, increasing its QLD and More than 98 per cent of Morris’ “We look forward to working together which also led to the exciting Flinders WA footprint. employees have accepted employment to improve quality of life for our clients West discovery. The transaction includes the transfer offers from Sodexo. and consumers as we develop exciting new Flinders West could be mined of Morris’ management contracts at the Both companies started as caterers more business opportunities in Australia.” early and potentially improve start-up three major Fortescue Metals camps of than 50 years ago, and now offer facilities The combined entity will have an cash-flows. Cloudbreak, Christmas Creek and Port management services for clients in the Hedland, as well as its Collinsville Village energy and resources sectors; including estimated 5200-strong personnel base “Importantly, the mineralisation in QLD. accommodation systems and camp design, across Australia. trends around Flinders remain open,” Mincor managing director Peter Muccilli said. “Results from the latest drilling Metso increases Australian footprint program will give further insight into this potential.” REUBEN ADAMS NSW Hay Point drags GLOBAL industrial company METSO has down coal export stengthened its Australian market position in mining services with the aquisition of volumes wear lining solutions provider WEARX for an undisclosed sum. COAL/QLD Headquartered in Newcastle, and with operations in Ballina, Orange and Perth, OCTOBER coal shipments from the WEARX has about 140 employees and BHP Mitsubishi Alliance-owned Hay recorded FY17 sales of $35 million. Point Coal Terminal slumped to its WEARX chief Gary Newman said the lowest level in years, according to North company had worked hard to turn itself into Queensland Bulk Ports Corporation an agile service provider, but the backing of data. a larger company was neccessary to unlock Hay Point exported just 2.95mt; down “our full potential”. 19 per cent year-on-year and 33 per cent “With the funding of the next phase of month-on-month. our company’s growth in mind, we decided that a full trade sale to a large, likeminded In October, A total of 11.9mt of coal company was the best way to continue the was shipped from Hay Point, Dalrymple evolution of our business.” Bay and Abbot Point coal terminals; up 4 Metso’s senior vice president for the per cent from a year earlier but down 11 Australian Market Areas Ross Wotherspoon per cent from September. The WEARX aquisition strengthens Metso’s Australian position in mining services. said the aquisition was part of a wider It represents the smallest monthly company strategy which included both goes smoothly, especially for staff and success factor.” volume since May, when exports stood organic growth and growth through customers,” Mr Wotherspoon said. The companies have assembled a at 10.16mt. aquisitions. “The retention of WEARX’s agility and dedicated team to work on all aspects of the ’We want to make sure that the transition entrepreneurial spirit is a fundamental integration, expected to take about 6 months.

DECEMBER 2017 10 NEWS THE AUSTLIAN MINING REVIEW Gold demand at 8yr lows Weak jewellery sector, ETF inflows blamed: World Gold Council Year-on-Year Gold Demand Trends Q3 2017

Investors continued to favour gold’s risk-hedging properties, but the greater focus was on buoyant stock markets, the report stated.

laundering regulations deterred buyers. “Retail investment demand in China representing the first increase since 2010. REUBEN ADAMS grew for the fourth consecutive quarter; the GLOBAL Inflows into gold-backed ETFs grew by The report noted the development of a just 19t compared with the remarkable 144t Turkish and Russian central banks added to gold-based catalyst that could improve gold reserves; and, after years of declines, we the performance and efficiency of SOFT jewellery sector demand and lower influx in Q3 2016. also saw increased use of gold in technology, hydrogen-powered cars by US and Chinese inflows into exchange-traded funds (ETFs) Investors continued to favour gold’s supported by the demand for high-end researchers. in Q3 2017 are blamed for the lowest level of risk-hedging properties, but the greater focus smartphones,” Mr Hewitt said. Writing in leading journal Science, global gold demand since Q3 2009. was on buoyant stock markets, the report Volumes of gold used in technology researchers described the development of stated. According to the World Gold Council’s latest increased for the fourth consecutive quarter a gold nanoparticle/molybdenum-carbide Gold Demand Trends report, the 9 per cent Alistair Hewitt, Head of Market as strong demand for LEDs and continued catalyst which attained a high level of year-on-year drop to 915 tonnes (t) was attributed Intelligence World Gold Council said it was growth in the use of 3D sensors in new activity at low temperatures, producing to a 3 per cent fall in global jewellery demand, a tough quarter for gold demand, but there smartphones boosted demand by 2 per cent. the pure streams of hydrogen critical to as India’s new GST and tighter anti-money were bright spots. Year-to-date technology demand was 244.4t; efficient fuel cell operation. Third party Australian Mines banks $20m for Sconi access for CEIP infrastructure

REUBEN ADAMS SOUTH AUSTRALIA

IRON Road has signed a MoU with newly-formed farmers’ co-operative EPCBH to establish a grains export business using Iron Road’s planned Central Eyre Iron Project (CEIP) infrastructure. The MoU follows a similar partnership between Iron Road and Sumitomo subsidiary Emerald Grain, which is investigating the development of a new grain distribution and supply chain network. Australian Mines’ Sconi cobalt project. Iron Road managing director Andrew Image: Supplied. Stocks said the CEIP would unlock significant benefits well beyond the project’s mining and The budding cobalt miner is also cobalt and 1950t of scandium, making it ore processing operations. CAMERON DRUMMOND constructing a demonstration-size one of the most prospective projects of its “We operate on a principle of third party QLD processing plant capable of producing kind in Australia. access to our planned infrastructure business,” commercial-grade samples of cobalt At its NSW Flemington project, which he said. AUSTRALIAN mines has tapped sulphate, nickel sulphate and scandium shares the same orebody as CleanTeQ’s “The approved deep water port at Cape investors for $20 million in a heavily- oxide. Sunrise project, Australian Mines would Hardy will be a first for South Australia and a oversubscribed capital raising for its These samples will be used to progress extend and increase the mineral endowment fresh approach to infrastructure development Sconi cobalt-nickel-scandium play in negotiations with potential off-take in the region. Northern QLD. partners and financiers, the company through a series of drilling campaigns, with a PFS to be completed by mid-2018. “Our ongoing partnership with Emerald The funds will be used to continue stated. Grain, now complemented by EPCBH, trial mining and undertake a bankable In March, a Sconi pre-feasibility study Exploration results at its greenfields will also ensure maximum benefit for local feasibility study, due to be completed in (PFS) reported a mineral resource of Thackaringa cobalt project in NSW are due communities and the region.” April 2018. 514,000 tonnes (t) of nickel, 54,500t of in December.

DECEMBER 2017 12 NEWS: THE CONTRACTORS THE AUSTLIAN MINING REVIEW

CONTRACTOR RESULTS WRAP Major wins for Decmil Downer ASX:DOW The year ahead • NPAT increase of $0.9 year-on-year to $181.5m Decmil estimates that WA iron ore replacement volume • $0.9m year-on-year Revenue projects and sustaining capital works will provide a increase to $277.8m • Cash flow of $441.6m +$10 billion lift to WA resources construction • Work-in-hand of $22.5bn, up from activity from 2018. $21.1bn Downer’s mining service line reported Decmil had over $300m of contracted and lower revenue due to the expiry of its FMG Christmas Creek contract in visible work in hand for FY18 September last year. Overall, its FY17 results were strong (August 2017) as it continued to focus on growth in public infrastructure and service delivery. NRW Holdings ASX:NWH • 25% NPAT increase year-on-year to $28.5m • 20% year-on-year revenue increase to $370.2m • Debt reduced by $38.5m to $20.8m • Work-in-hand of $1.4bn, with tender pipeline of $6bn The Mulla Mulla contract was one of many Decmil has secured with BHP. NRW’s civil and mining business continued its focus on widening its executive Scott Criddle said the contract with BHP.” ELIZABETH FABRI client base during FY17, securing followed a $13m civil and initial works WESTERN AUSTRALIA Decmil’s previous BHP contracts included contracts with Pilbara Minerals, Altura contract awarded in August. Mining, Rio Tinto coal, alumina and building a logistics hub at Port Hedland, the iron ore projects and FMG. BHP has awarded Decmil Australia a $75 “The contract award is following the construction of a tailings storage facility at successful delivery of other project works at Olympic Dam in South Australia, concrete It also recently secured work at million contract to to undertake expansion major WA iron ore sites,” Mr Criddle said. OZ Minerals’ Carrapateena project, works at its Mulla Mulla accommodation works and the construction of cooling towers Gascoyne Resources’ Dalgaranga village in the WA Pilbara. “Decmil has achieved great success in at Ravensthorpe nickel operations, and project and acquired east coast mining The contract is the first phase of a $105 delivering complex projects across the region, various facilities at BHP’s Newman Hub and services business Golding for $85m. million village expansion to support current reinforcing our expertise and 40 years of Jimblebar projects in WA. operations at Mining Area C and the proposed experience as a sector contractor. Decmil has also recently completed works $US3.2 billion South Flank iron ore project. “We look forward to further solidifying our for other iron ore majors, such as Fortescue CIMIC Group Decmil managing director and chief growth path and long-standing relationship Metals Group, Roy Hill, and Rio Tinto. ASX:CIM • 21% NPAT increase to $501m • 26% year-on-year revenue increase to $9.6bn • Net cash of $606m Emeco’s tour de Force • Work-in-hand of $13.4bn, with CAMERON DRUMMOND tender pipeline of $23bn. NATIONAL To date, CIMIC delivered more than 20 PPP projects for a value of $32bn. MINING equipment supplier Emeco Holdings So far during this year its mining will expand its market share with the $69.8 services arm Thiess has won contracts million purchase of national supplier and at FMG’s Solomon Hub iron ore maintenance provider Force Equipment. operation, BMA’s Jellinbah East and The acquisition will provide Emeco with a Yallourn operations, and at Gunung further 179 high-quality and low-hour machines, Bara Utama and Kaltim Prima Coal in taking its fleet total to 897, and doubling its WA Indonesia. presence. The transaction price is about 2.96 Force’s Monadelphous FY17 EBITDA of $23.6m, with Emeco funding Group the purchase via an $80m equity raising. Emeco managing director Ian Testrow said ASX:MND the buyout of Force was a part of the company’s • 14% NPAT decrease to $57.6m strategy to becoming a world leading provider of equipment rental. • 7.3% year-on-year revenue decrease to $1.26bn “The acquisition of a market leading business like Force will allow Emeco to grow our rental • Net cash of $228.1m business in key markets, enhance all important • Work-in-hand of $1.8bn maintenance capabilities and diversify our Monadelphous’ engineering and customer exposure, including in the iron ore construction division reported sales of market in WA through its workshop in the $615.4m during FY17. Pilbara,” Mr Testrow said. Emeco has expanded its business at a critical time in the market. It was recently awarded contracts at “Force’s component rebuild capability will also FMG’s Solomon Hub, BHP’s Olympic mitigate risk of component supply disruption at a on, and looked forward to working with Force’s of Emeco’s employees, maximising return on Dam, and a range of offshore and critical time in the market.” management team to realise the company’s capital, disciplined cost management, reducing onshore oil and gas projects in Australia Mr Testrow said Emeco would welcome growth strategy. our debt and exploring additional strategic and abroad. Force’s 200 employees at supply bases in Perth, “Management’s focus for FY18 continues consolidation opportunities to grow the Kalgoorlie, Port Hedland and Mackay to stay to remain on ensuring the health and safety business,” Mr Testrow said.

DECEMBER 2017 14 NEWS: TECHNOLOGY & INNOVATION THE AUSTLIAN MINING REVIEW A winning partnership

CAMERON DRUMMOND QLD

BRISBANE-BASED mining equipment, technology and services (METS) company Commit Works and miner Anglo American have won the 2017 METS Ignited Collaboration Award for the Visual Ops real-time platform. The award was presented to Anglo American executive head of underground operations for Moranbah and Grosvenor Glen Britton, and Commit Works chief executive Paul Moynagh at a gala industry dinner in Melbourne on 1 November. Mr Moynagh said the award was recognition for years of hard work developing platforms for managing frontline work plans delivering safer and more productive mining operations. “Our job is to make software tools that ensure people go to work every day with a plan,” Mr Moynagh said. Image: METS Ignited.

“Planned work is much safer and far more METS Ignited present the award to the teams from Commit Works and Anglo American. productive than unplanned work, and that has been reflected in the results that Anglo “Visual Ops makes this even more co-designed and implemented the unique assisting to improve safety and productivity. has seen over the last five years. powerful by making it possible for everyone visual management system that provides The Award, in its second year, “The sites that use our short-term on site to clearly see any hazards alongside real-time operations mapping to monitor the acknowledges and recognises organisations planning and scheduling system quickly get the people, equipment and work that is progress of work onsite. that contribute to a culture of collaboration to the point where they can actually rely on being done, all in one very visual platform on The system provides supervisors and crew within the mining innovation ecosystem and their shift plans to lead their teams and track phones, tablets or big screens all over site.” with context-rich awareness of the location achieve mutual business gains as a result of results in short intervals. Anglo American and Commit Works of hazards, people, equipment and tasks, successful collaboration. Goldfields World-first trial for drone tech innovation “The program is providing vital learnings for us as we prepare hub opens to commercialise ELIZABETH FABRI Hovermap.” WA

THE Chamber of Minerals and Energy (CME) WA has joined forces with the Cooperative Research Centre for Optimising Resource Extraction (CRC ORE) to establish a new mining innovation hub in the heart of Kalgoorlie. The Kalgoorlie-Boulder Mining Innovation Hub brings together some of the country’s top engineers, scientists and mining experts to test new technologies aimed at revolutionising the way mineral deposits are mined to maximise profits and minimise environmental impacts. The hub will also provide training for mining professionals with support from industry partners such as Curtin University’s WA School of Mines (WASM) and the Central Regional Image: CSIRO. TAFE. Drone flying autonomously underground using Hovermap payload technology. Other partners included METS Ignited, the Recently, it recorded the world’s first The Little Ripper Group – that are using Minerals Research Institute of Western Australia ELIZABETH FABRI (MRIWA) and the City of Kalgoorlie-Boulder. autonomous beyond line-of-sight drone flight Hovermap for the inspection of underground NATIONAL and open-cut mines, railway tunnels, bridges, CME chief executive Reg Howard-Smith said 600m underground. constructions sites, telecommunications and the new hub would strengthen WA’s reputation The new technology uses a single CSIRO digital research arm Data61 has oil and gas infrastructure. as a world-leader in the extraction and processing lidar and advanced algorithms to provide developed a new autonomous drone payload of previous metals and cement its standing as a SLAM-based mapping, omnidirectional “The program is providing vital learnings technology to map complex 3D environments centre of excellence in mining education and collision avoidance, GPS-denied flight and for us as we prepare to commercialise research. in previously inaccessible mine areas. advanced autonomy for industrial drones Hovermap,” Mr Hrabar said. “CME is thrilled to be playing such an The Hovermap drone payload technology, to undertake mapping of drives and stopes, “It is helping us to validate the important role in this project, which will go a long established by Data61 principal research which are normally too dangerous to access. product-market fit and learn where way in ensuring the long-term sustainability and scientist Stefan Hrabar, was launched Mr Hrabar said Data61 already had four Hovermap provides the greatest value. profitability of the industry,” Mr Howard-Smith earlier this year and has since completed participants in an early adopter program – “We’ll iterate and adapt to ensure we’re said. multiple autonomous test flights. Insitu Pacific, Smart Survey, NQ UAV and solving real problems in these markets.” METS AT THE MINE SITE p49

DECEMBER 2017 16 NEWS: INTERNATIONAL THE AUSTLIAN MINING REVIEW IN BRIEF Cameco suspends operations

Centerra in “We can’t control the friendly takeover market so our focus is on of AuRico Metals positioning the company to weather the continued low CANADA uranium prices and have

CENTERRA Gold has bought out fellow uncommitted, low-cost gold developer AuRico Metals for C$310 supply to deliver into a million. strengthening market.” AuRico is developing the Kemess brownfields gold project in British Columbia, and owns a royalty portfolio that includes a 1.5 per cent net smelter return (“NSR”) royalty on the Young-Davidson gold mine in Ontario and a 2 per cent NSR royalty on the Fosterville mine in Australia. Together with its Kumtor mine in the Kyrgyz Republic and the Mount Milligan mine in British Columbia, Centerra expected to be firmly established as a low-cost gold producer with a geographically diversified footprint.

Image: Cameco. B2Gold flags early Underground at Cameco’s McArthur River uranium mine. start to Fekola per share in 2018. continued market weakness, more needs to be CAMERON DRUMMOND done,” Cameco chief executive Tim Gitzel said. CANADA The Canadian miner said uranium prices AFRICA had fallen 70 per cent since the Fukushima “We can’t control the market so our focus is on positioning the company to weather URANIUM miner Cameco has suspended disaster in 2011. CANADIAN miner B2Gold has the continued low uranium prices and have production at its flagship McArthur River “Cameco has been partially sheltered from completed construction of its Fekola uncommitted, low-cost supply to deliver into the full impact of weak prices by its portfolio gold mine in Mali and has flagged mine and Key Lake milling operations in a strengthening market.” Canada’s Saskatchewan province due to of long-term contracts, but those contracts are commercial production to start this The announcement caused a positive “unsustainably low” uranium prices. running out and it is necessary to position the month, four months ahead of schedule. reaction from other miners in the beleaguered company today to generate cash flow if prices According to its Q3 report, B2Gold The operations will be suspended for 10 uranium sector, as the mine closure should do not improve,” the company stated. began processing ore from Fekola in months, leading to the temporary loss of 845 reduce 2018 supply levels by about 15 million September, and achieved first pour at jobs, and the company’s annual dividend “To date, we have made good progress in pounds and drive an increase in uranium the mine on 7 October. would be reduced 32 cents down to 8 cents reducing costs but unfortunately given the spot prices. The mill treated 324,525 tonnes of ore at an average grade of 3.40 grams per tonne (g/t) – above its budgeted mark of 2.33g/t – to produce a total of 33,946 Exceptional grades at Kildare ounces of gold in the month. Over its initial ten year mine life, Fekola is projected to produce an ELIZABETH FABRI average of 345,000ozpa at an AISC of IRELAND $664 per ounce. PERTH-based explorer Zinc of Ireland has discovered ‘exceptional’ high-grade, shallow mineralisation at its Kildare zinc project China becomes south-west of Dublin, Ireland. On 8 November, Zinc of Ireland announced net graphite it had intersected multiple zones of high-grade zinc mineralisation in the shallow regions of electrode importer the Celtic Tiger and McGregor prospects. CHINA “Zinc of Ireland managing IN a striking shift, China has become a director Peter van der Borgh net importer of graphite electrodes after shuttering 30 per cent of its capacity, said the results were a “clear according to a note from investment game-changer” for the bank Jefferies. Graphite electrodes are the main company and the future of heating element used in an electric arc the Kildare zinc project.” furnace, a steelmaking process where scrap is melted to produce new steel, Image: Zinc of Ireland. according to Reuters. Drilling results included up to 25 per cent In recent years producers outside zinc and lead within 200m of surface at Celtic “From an exploration perspective, this project and beyond. And then of course there’s of China have slashed production of Tiger, confirming potential for shallower means cheaper and quicker drilling for proof of concept for our exploration model, smaller electrodes – primarily used mineralisation across the project. shallower targets, while the presence of which also has widespread application.” in ladle furnaces – as they could not The company also confirmed potential to shallower, more accessible mineralisation will The company will continue drilling at Celtic compete with Chinese producers. upgrade the current inferred resource, which obviously translate into improved economics Tiger over the coming months, with a further The tightness currently seen in the currently stands at 5.2 million tonnes (mt) at when we undertake future financial modelling two or three holes scheduled to be completed market – caused by lower Chinese 8.6 per cent combined zinc and lead. of the project,” he said. before Christmas. exports, tight needle coke supply and Zinc of Ireland managing director Peter “It also brings into play more than 4km of An updated mineral resources estimate for strong demand – could persist for at van der Borgh said the results were a “clear similar geology along the Western Margin of the Kildare and maiden exploration target for the least two years, Jefferies stated. game-changer” for the company and the future Graben, as well as similar structural settings Celtic Tiger project was also planned for Q1 of the Kildare zinc project. that we are identifying elsewhere within the 2018.

DECEMBER 2017 18 NEWS: COMMODITY FOCUS: COPPER THE AUSTLIAN MINING REVIEW CU AT THE TOP

Copper is in favour as demand picks up in China, while electric vehicle and the renewables boom looks to build sustainable price momentum into the future. Yet the base metal, as is the case for many commodities in 2017, has also been defined by its volatility. Will the good times continue?

ELIZABETH FABRI

COPPER has been a particularly interesting commodity to watch throughout the 2017 year. On the back of sudden price gains in late 2016, the base metal had a volatile start to the year, continuing its upswing in the first few months (due to supply disruptions at three of the world’s largest mines) before plummeting to three-month lows in April. As analysts predicted, the slump was short-lived with prices surging again in July on renewed optimism amid demand growth in China and a weaker US dollar. By mid-October, prices spiked further to $US7186 a tonne, before settling at $US6800 a tonne at the end of the month; still a 24 per cent increase on January levels. While there has been much debate on where the copper will sit moving into the New Year, a common thread among analysts is that the long-term fundamentals for the metal remain strong. KPMG national and global copper Image: BHP. leader Maritza Araneda said despite recent Escondida copper mine, Chile. volatility prices were headed in the right direction. Looking ahead into 2018, Mr Webb commodity with copper demand and prices “Solar requires about five kilograms “In my view, the market should swing expected only 2 per cent of copper supply highly correlated with economic activity.” of copper per kilowatt – that’s more than into a deficit (undersupply) position in early to have an AISC above the forecast copper However, Mr Hansen said there was double the copper intensity than alternative 2018, meaning that copper prices should price for the year, signalling little pressure “significant caution to be had” around the forms of generation. not drop below current price levels,” Ms for copper miners to cut production. large quantity of speculative capital in “Now turning to the highways, a hybrid Araneda said. “We expect profit margins to end this copper. car uses 40 kilograms of copper – that’s “This is good news for miners who have year significantly higher than in 2016, and “There’s a sense copper prices are twice the amount of copper a regular petrol that those margins will be preserved into gone through difficult times over the last currently running ahead of fundamentals car uses. 2018 and 2019,” he said. two years and have had to reduce costs to and are not sustainable at this level,” he “This is an enormous amount of copper manage their cash flows. Deloitte Energy & Resources industry said. to source.” group audit partner Ryan Hansen said “There is also potential for further “The risk of so much hot money going Mr Malchuk said BHP was well placed to upside in the near term; supply disruptions copper futures on COMEX trading were currently at their highest since February into copper is it can easily be pulled out support increased copper supply but faced may continue in the second half of 2018, as if perceived returns are higher elsewhere a number of challenges including; declining a number of mines in Chile have worker 2014, with the market bullish for ‘good reasons’. or there’s a negative economic shock grades, deeper deposits, harder ore, labour contracts up for renewal. somewhere.” productivity, water scarcity, and higher “Copper’s supply/demand fundamentals “Accordingly, gradual price increases expectations from host governments and are some of the best in the commodity Mr Hansen said the big concern was a should start to be more pronounced from slowdown in China’s property sector, but communities. Q3 2018 onwards and this time the higher pack,” Mr Hansen said. if this corrected itself, so too will copper “Grade decline alone has huge prices will be here to stay.” demand and pricing. ramifications; industry grades are expected S&P Market Intelligence senior research “Accordingly, gradual price to decline by 17 per cent according to Wood analyst Adam Webb was also optimistic, Mackenzie data over the next decade,” he increases should start to be Renewed focus but warned of increased year-on-year said. mining costs. more pronounced from Q3 “Ageing mines require more effort and Armed with this knowledge, global Mr Webb said since early last year, which 2018 onwards and this time cost to deliver the same production. marked an arrest in the copper price decline producers such as BHP were shining a “There will be a growing need for that had been in evidence since 2011, there the higher prices will be here light on their current copper operations and desalinated water to process the higher has been less pressure to cut costs at copper to stay.” pathways to ramp up production to meet mining operations. demand. volumes of lower-grade ore.” “However, since early 2016 many local At the LME Week Bloomberg Forum in Mr Malchuk said BHP was investing producer currencies have strengthened “You have the combination of long-term London early November, BHP Americas in exploration to uncover potential new against the US dollar, alongside a structural supply constraints (falling ore operations president Daniel Malchuk said discoveries closer to the surface. strengthening oil price, which has led to grades, supply disruptions at key copper the miner was actively looking to add more “Based on total refined copper output, some upward pressure on copper mining mine operations, slowing global mine copper resources to its portfolio. the value of the copper market could costs,” Mr Webb said. supply growth, shortage of world class “Copper has had great fundamentals increase by over 50 per cent by 2035 – an “Total cash costs in the copper-mining copper deposits, etc) together with some for some time, and great potential due to opportunity worth seizing,” he said. sector are expected to be approximately 6 per decent demand side support. the rapid rise in renewables and electric “Now you see why copper is firmly on our cent higher in 2017 compared with 2016.” “Copper’s a classic ‘bellwether’ vehicles,” Mr Malchuk said. radar.” DECEMBER 2017 THE AUSTLIAN MINING REVIEW SPECIAL FEATURES 19 THE HUNTER VALLEY

Many Hunter Valley communities are intrinsically linked – historically and economically – to a mining industry which currently injects about $6bn in wages and payments to local businesses each year. Now, as coal BACK TO prices recover and stabilise, the Hunter’s economy is set BLACK for a welcome boost.

Image: Rio Tinto.

CAMERON DRUMMOND Product is then loaded onto more than 1400 coal vessels each year via three terminals controlled by Port Waratah WITH a 2016 population of 732,000, the Coal Services (PWCS) and Newcastle Coal Hunter Valley accounts for 28 per cent of Infrastructure Group’s (NCIG). NSW’s inhabitants outside Sydney. PWCS is the largest terminal, facilitating Since the early 1800s, the Hunter’s about 70 per cent of throughput at Newcastle. mining operations have been a stalwart of About 85 per cent of exports through the economic activity in the region. coal chain out of Newcastle are destined for The Hunter is no stranger to coal price Japan, Korea and Taiwan. cycles. Having just navigated the post-global 161.4 million tonnes (mt) of coal was financial crisis depression, it is looking exported through the Port of Newcastle toward a brighter future as increased during 2016, up 3.3mt from the previous demand from Asian markets propels greater year. output from mines throughout the region. Exports continued to rise during 2017, with an increase of 2mt between January Hunter Valley Coal Chain and August compared to the same period last year, reflecting the continued recovery and The Hunter Valley Coal Chain provides strong global demand for the commodity. about one-fifth of Australia’s thermal and coking coal from 35 coal mines owned by Weathering the storm 11 coal producers, under the auspices of the Hunter Valley Coal Chain Coordinator In the five years to 2016, 11 operating mines (HVCCC). in the Hunter Valley had been shuttered. Mines near the eastern edge of the basin More than 20 per cent of its coal mining are spread along the Hunter Valley from workforce – about 3500 personnel – had been Newcastle in the south, to Muswellbrook put out of work. in the north; with mining further at Yarrawonga near Gunnedah. Long associated with coal mining, the Hunter’s regional hub of Cessnock was not Mines such as Ulan and Springvale in Image: Yancoal. unaffected by the reversal of fortunes. the Western Coalfield and Mandalong and The HVCCC management entity was first implemented in 2003 to efficiently streamline coal operations to the However in 2010, coinciding with the Westside in the Newcastle Coalfield produce Port of Newcastle. mainly thermal coal. depression of the region’s coal mining industry, construction of the $1.65 billion In the Hunter Valley coalfields, both a centralised planning model for the Shorthaul Railroad. Hunter Expressway project – a 40km dual soft coking and thermal coal products are production, transport and export of coal from Collectively, they make more than 20,000 carriageway that cut 28 minutes off travel produced from mines such as Hunter Valley these sub-regions. trips from more than 31 different loading time between Newcastle and the Hunter – Operations and Bulga. Coal is delivered from mines through points to the Port of Newcastle, the world’s had begun. The HVCCC was a concept created in four main rail haulage providers; Pacific largest coal export operation, from distances 2003 to streamline production through National, Aurizon, Glencore and Southern of up to 380km away. (CONTINUED OVER) DECEMBER 2017 20 THE HUNTER VALLEY THE AUSTLIAN MINING REVIEW

(CONTINUED FROM PAGE 19) Image: HVCCC. Image: Cessnock Council.

The Hunter Valley Coal Chain. Cessnock Mayor Bob Pynsent.

Cessnock Mayor Bob Pynsent said Resurgence would remain solid across its main export “This is good news for the NSW economy much of the Hunter was fairly lucky, with markets. as coal and other minerals exports are our its newly unemployed workers able to Since the start of 2016, the cyclical nature “Current figures from coal services State’s most valuable exports.” side-skill into construction and associated of mining has provided new opportunities in suggest another strong year of demand for Mr Galilee said the Hunter would see trades for the expressway, which as a the coal industry, with better-than-expect- NSW coal year for 2017,” he said. positive affects across the spectrum. by-product had also opened up real estate ed thermal and coking coal prices driven by “The International Energy Agency “New figures from coal services show in the region. increased demand from Asian markets. (IEA) recently released its South East Asia there were just over 20,600 coal production “Initially, tradespeople left their jobs 2016 export data from Coal Services Energy report, which indicated that coal jobs in NSW as at July this year – over 1300 to move into the more lucrative mining revealed that global demand for NSW coal demand would increase in the region by more than at the same time last year, and industry,” Mayor Pynsent said. had reached record levels, with exports near 4 per cent annually to 2040. the highest since March 2015. “When there was a rationalisation of increasing by 1.5mt on the year before, “Combined with declining Indonesian “Many of these new coal mining jobs are employment opportunities in the coal defying predictions from some that coal exports over the same period (from 290 in the Hunter, with over 1000 more local industry around 2010, those same people would diminish as a key export. metric tonnes carbon equivalent (mtce) in coal mining jobs than a year earlier. were able to leave mining industry and The figures also revealed a record volume 2016 to 170mtce in 2040) the IEA expects “It’s good news for local communities be absorbed into the boom in housing of 161mt of coal was exported through the Australia, including NSW with its high and as well as for the more than 3600 that flowed from the construction of the Port of Newcastle that year. quality coal, will increase its exports by local Hunter businesses that supply the highway project.” Mr Galilee said demand for NSW coal more than 15 per cent to 2040. mines.”

HOW CAN INDUSTRY AND GOVERNMENT WORK TOGETHER TO NURTURE A ROBUST MINING INDUSTRY? A message from NSW Minerals Council chief executive Stephen Galilee.

than 110 proposed regulatory or policy changes – over one a month. While some of these changes have been positive, many have involved additional compliance burdens and costs. We’ve been working hard to secure improvements and relief for the industry, while maintaining the CONTINUED strong demand from high standards of environmental established markets in Japan, protection the community expects. Taiwan and Korea, as well as China, Importantly, we’ve worked to along with significant growth across secure improvements in planning emerging markets in Southeast approval timeframes, including Asia demonstrate the significant a commitment from the NSW economic opportunities for NSW, Government to halve average provided we get the policy settings planning assessment time frames for major mining projects by the right. end of its current term. This includes an efficient planning To the NSW Government’s credit, approval system and a regulatory this commitment appears to be on regime that does not become a track. While there is still more be significant burden to our industry. done, if we can lock in policies that Since the current Government support NSW mining, we’ll build came to office in 2011 the NSW on our industry’s positive export mining industry has had to prepare figures, attract investment and nearly 200 submissions on more create more jobs in our State. DECEMBER 2017 THE AUSTLIAN MINING REVIEW THE HUNTER VALLEY 21 Celebrating 45 years of success

GLOBAL tyre management leader Otraco has enjoyed more than four decades of success supplying tyre management services to the mining industry. Founded in Australia in the 1970s, Otraco pioneered off-the-road (OTR) tyre management including tyre life analysis methodologies (such as fitment period batch analysis), tyre pressure and temperature monitoring systems (TPMS), as well as the industry’s understanding of tyre explosion mechanisms. Over the years, Otraco’s work has been so widespread that even the tyre position numbering system, used almost universally, originated with Otraco. Today Otraco is a wholly owned subsidiary of Downer. Expanding beyond Australia, Otraco’s first project in South Africa was with Anglo American’s Mogalakwena, the largest platinum mine in the world. With further expansion into the America’s, Otraco now manages some 60 projects around the world with an enviable customer base including BHP, Rio Tinto, Anglo American, FMG, Glencore, Codelco, Newcrest, Yancoal and Peabody. Commercially independent of any tyre manufacturer, supplier or repairer, Otraco prides itself on remaining at the cutting-edge of tyre management technology offering a leading internet-based tyre management Otraco has had an established presence in the Hunter Valley for more than 10 years, securing its first contract in the region in 2006. and reporting system, Otracom. In use across more than 65 mine sites and reduce tyre-related costs. worldwide. equipment just 30 minutes from the centre worldwide, Otracom tracks and manages Otracom enables users to rely on Otraco also offers OTR tyre training at of Perth. tyres and rims from manufacturing to a centrally maintained management its RTO (#51112) in WA where trainees More information can be found at: disposal to identify performance trends system that delivers consistent reporting are able to work on full-scale mining www.otraco.com. DECEMBER 2017 22 THE HUNTER VALLEY THE AUSTLIAN MINING REVIEW Safe and reliable staffing solutions

PSW is a proud service provider in the Hunter Valley.

PROGRAMMED Skilled Workforce (PSW) personnel, including 550 trainees and the safest possible staffing solutions to its “Likewise, for our customers, safer has provided skilled and safety focused apprentices, across major mining sites in mining customers. people means that they achieve their key workforces to the mining industry in the the Hunter Valley, working in disciplines “Working for Programmed, jobseekers safety and production objectives. Hunter Valley since 1994. such as operational, trades, professional/ can feel reassured by our commitment “This is especially crucial in the mining The company was also the first service technical, administrative and stores to safety and to our employees returning industry and we are proud of our safety provider in the industry to be AS/NZS 4801 personnel. home in the same condition they arrived performance to date.” certified. A continual investment in its people and – without injury,” PSW regional general More information can be found by Programmed currently manages 1100 systems has ensured Programmed provides manager Scott Hennessy said. visiting www.programmed.com.au. DECEMBER 2017 THE AUSTLIAN MINING REVIEW FORTESCUE METALS GROUP 23 STAR POWER Seasoned executive Nev Power reflects on his time at FMG and the company’s next chapter, as it embarks on the $US1.5 billion Eliwana project and examines diversification beyond iron ore.

All images FMG.

While the verdict is still out on the ELIZABETH FABRI board’s decision, all eyes are on FMG’s newly appointed director operations Greg Lilleyman REWIND the clock four or five years and it’s Q3 2017 HIGHLIGHTS as the presumed successor. hard to believe FMG is the same company Mr Lilleyman joined FMG in January after that stands here today. 44 million tonnes of iron ore shipped spending 25 years at Rio Tinto, most recently In 2012/13, the miner was staring death • as head of innovation and technology. in the face, drowning in a $US13 billion Speaking on the side lines of the pool of debt just as the iron ore price was Cash production costs (C1) of $US12.15 per wet Committee for Economic Development of continuing its slow decline to late-2015 lows metric tonne: a 10 per cent improvement Australia (CEDA) WA Annual Resources of $US38/t. year-on-year Overview lunch in Perth late October, Mr Many outsiders feared the worst, but Lilleyman said this was ultimately a decision even during the company’s darkest hour • for the board. FMG chief executive Nev Power remained Cash on hand increased to $US2.3 billion Another possible internal option is FMG’s assured of a recovery. chief financial officer Elizabeth Gaines, who “It’s been an absolute privilege and an • joined the FMG executive team in February, honour to [serve] FMG for the whole time,” Gross debt of $US4.4 billion after serving on the board since 2013. Mr Power told The Australian Mining Mr Power said the board would make an Review. announcement “as soon as they are able”. “We’ve had some challenges, but I Media speculation is that a decision will be after quadrupling annual production to 170 Naming a successor think the most rewarding and the most made before the Christmas period to allow for million tonnes (mt), and reducing costs by defining moments have been seeing how sufficient handover time before Mr Power’s more than two-thirds to become the lowest well the Fortescue team rallied behind the In September, chairman Andrew Forrest last day on 16 February 2018. cost seaborne supplier of iron ore into challenges that we have had. announced Mr Power would step down from China. “Though there was no shortage of times the role in February next year for some “well FMG has also been in a position to make The next phase when we knew we would need to dig deep deserved” time off. early repayments to significantly reduce to make sure that we achieved what we “Nev has executed his duties to the the amount of interest incurred on its debt. At the company’s Annual General Meeting wanted to, I was always confident that we highest degree and met or exceeded the often (AGM) on 8 November, FMG announced it would be able to meet those challenges. Many hard decisions were made over his unreasonable standards set by his Board,” tenure; Mr Power said what was ultimately Mr Forrest said. had chosen its $US1.5 billion Eliwana project, “While it wasn’t always obvious 90km from Tom Price, as the immediate put in place “was the best of those options”. “We could not be more pleased with his publically, in many cases – certainly around replacement for its depleting Firetail mine. the balance sheet and debt restructure – we “We made decisions in a very stewardship and respect his decision that it The FMG board was faced with two options; always had a number of options.” collaborative way,” he said. is time for the next chapter of Fortescue to extending the rail line from its Solomon Hub “The whole organisation [was] involved in begin. Mr Power joined FMG in February project 130km west to the Eliwana deposit, or deciding what we needed to do; everything 2011 as chief operating officer before being “This is consistent with our long term develop a new operation at Nyidinghu about from our marketing strategy right through promoted to chief executive as Andrew succession plan and we both share great 40km south of its Chichester Hub to the east. Forrest’s successor in July the same year. to our finance strategy. confidence in the quality of internal and Mr Power said the 30mtpa Eliwana project “All of those have been very successfully external candidates to continue Fortescue’s His robust and collaborative leadership offered more product options, better capital implemented. legacy.” style, some quality decision making, and a and operating costs and quicker timeline to dash of luck (brought on by the iron ore price “Some of the key [decisions] has been the The industry echoed Mr Forrest’s market. recovery in 2016), were the key catalysts focus on productivity and efficiency across view, awarding Mr Power the 2017 Mines “There’s 2.1 billion tonnes of resource that helped navigate the company out of the the business to reduce our C1 costs, and to and Money Legend in Mining award at danger zone and towards prosperity. achieve the cost result where we are now the the International Mining and Resources already identified there [Eliwana], it’s highly lowest cost iron ore producer in the world. Conference (IMARC) in November. prospective and has great grades,” Mr Power Today, FMG is the world’s fourth largest said at the AGM. iron ore producer (and proud holder of a “I think that has been an outstanding It is clear that Mr Power’s replacement number of prestigious industry accolades) result.” will have some big shoes to fill. (CONTINUED OVER) DECEMBER 2017 24 FORTESCUE METALS GROUP THE AUSTLIAN MINING REVIEW

(CONTINUED FROM PAGE 23) “While it wasn’t always obvious publically, in many cases – certainly around the balance sheet and debt restructure – we always had a number of options.”

“Of course, Nyiduingu remains a very “I think its caught all the market by significant ore body for future development “Looking outside of surprise as to how quickly those restrictions and this just means that, in timing, the were put in place and it makes it a little bit Eliwana Western Hub project will come iron ore is obviously hard to predict going forward, but at this before Nyidinghu.” the sensible step for stage there are a number of things happening. Approval processes, including mine “There’s a lot of steel production that will be and rail infrastructure for the Eliwana us.” increased outside of that area to compensate project have now begun, and timing on the and steel mills within that area are doing a commencement of operations will be made lot of work to reduce their emissions, so in the at the completion of a feasibility study, future they won’t need to restrict production expected late FY18. to reduce airborne emissions overall.” Over the course of the year, feasibility As a result of the policy, the Chinese studies and development options for the Iron steel industry was paying premiums for Bridge Magnetite project will also continue higher quality ore as part of government to be evaluated, with a decision expected to measures to reduce emissions; which has be made with FMG’s joint venture partners had an impact on FMG’s earnings for its soon. lower grade ore. FMG will also be adding more autonomous FMG said it has had to lower its iron trucks to its fleet in FY18 as part of its ore price realisation guidance to between strategy to improve productivity. 70 and 75 per cent of the benchmark The innovation push included converting high-grade iron ore index due to wide up to 12 793F trucks to autonomous haulage price discounts between high-grade and technology (AHS) at Solomon Hub, the low-grade ore. rollout of AHS across the Chichester Hub “The question remains going forward is FMG director operations Greg Lilleyman. project, a relocatable overland conveyor to how deep those production restrictions trial at Cloudbreak mine, and IT network are going to bite,” Mr Power said. upgrades at Cloudbreak and Christmas securing respective tenements in different opportunities,” he said. “This could be largely dependent on Creek. commodities; some in the Pilbara, some “I think naturally for us, in the iron ore weather conditions as well, so it’s very outside the Pilbara, and we’re doing sector demand has been growing so strongly hard to predict so it’s a matter of waiting Diversification grassroots exploration or early stage on the back of China’s development that and seeing. farm-ins to see what we can find on those there’s naturally a bit of plateauing in iron “Having said that, the important thing Beyond its iron ore developments, FMG properties.” ore demand. from our perspective is focussing on the was also dipping its toes in a number of The tenements included early stage “If we want to grow our company the things that we can control. early-stage exploration options in the hunt exploration areas in the Pilbara, South options within iron ore are quite limited “Our business is generating very strong for other commodities such as gold, lithium Australia and NSW, and highly prospective other than holding our own or improving cash returns, even where this market is and copper. areas of Ecuador where FMG holds 32 our own performance to generate more today, so there is a lot of upside potential Mr Power said the company was exploration tenements. value. for us once these restrictions are lifted.” not specifically chasing one commodity There was recent speculation the miner “Looking outside of iron ore is obviously As the wide price discounts continue, over another, but rather interested in was looking increase its footprint in the the sensible step for us.” FMG said it was looking to expand into new seeing how they could apply the skills Fraser Range, WA. markets in Europe and Asia to generate and capabilities developed in its iron ore Mr Lilleyman said the company value, for example the UK, Germany, business to new areas. was “starting to take small bets” into Market outlook Southeast Asia and India. “Our diversification strategy is driven by exploration to see what opportunities were “Investing in the long-term value creation so we’re not diversification out there. Mr Power said one of the biggest issues facing sustainability of our core iron ore for the sake of diversification or growth, “I wouldn’t be sitting here saying we its iron ore shipments at present was Beijing’s business, maintaining production, further but rather on where we can create value,” are pushing very hard in those areas, winter curtailment policy. strengthening the balance sheet and Mr Power said. we’re certainly starting to make small “It is already having very significant generating shareholder returns remain “We have been opportunistic in investments to start to create some small impact,” Mr Power said. our key priorities,” Mr Power said. DECEMBER 2017 THE AUSTLIAN MINING REVIEW THE UPPER SPENCER GULF 25

OUT OF THE The bad run has ended for the cities of the Upper Spencer Gulf, who can finally catch their collective breath as new regional investments signal hope.

ABYSS GFG Alliance. Photography: Sean Kelly.

ELIZABETH FABRI “We’ve always had

TWELVE months ago the Upper Spencer a little bit of rivalry Gulf cities of Whyalla, Port Augusta, and between the three Port Pirie in South Australia were existing in a state of uncertainty. cities, but we’ve In Whyalla, the sale of ’s assets basically put that remained up in the air; dire times for a community which had been impacted aside now and by almost 1000 job losses leading up to decided we need to Arrium entering administration. work together – we If Arrium failed to secure a new buyer, many believed Whyalla and – to a lesser need to complement extent – the State of South Australia each other.” would fall into economic and social crisis. “We had never been in a situation where [the Whyalla steelworks] went into administration and owed $4 billion,” City of Whyalla mayor Lyn Breuer said. “That was such a gut cruncher for the community because while we had issues before when the shipyard closed back in 1970s, this was the really big one. I could GFG Alliance. Photography: Sean Kelly. not see us being able to get out this of easily. our community, to put money into our Government estimated 700 jobs during there will still always be an element of “Community morale went right down, community, as well as the rebirth of the construction and 50 ongoing positions. competition, there’s plenty of room for all community confidence and spending went steel plant.” three of us.” right down; people were very nervous.” In late October, GFG Alliance’s On 28 September, Nyrstar announced Mr Gupta also made some big energy This partnership between cities was Sentiment was similar in Port Augusta, that hot commissioning of the Port Pirie announcements. cemented at the annual Sustainable which was struggling to fill the economic redevelopment had commenced, which Economic Growth for Regional Australia’ void left by the closures of Alinta Energy’s GFG Alliance subsidiary ZEN Energy was followed by the first feed of the TSL (SEGRA) national conference in October, Leigh creek coal mine and coal-fired power would build 1 gigawatt (1000 megawatt) furnace in October. of dispatchable renewables in and around held in the Upper Spencer Gulf for the first station, while things were better in Port time in the conference’s 20-year history. Pirie with Nyrstar’s 127-year-old smelter The region also had a number of high Whyalla, 100MW/100MWh battery storage at the tail end of a massive $600 million profile mining developments underway. facility at Port Augusta, 100MW of demand “I was thrilled to bits to have so many redevelopment. The massive $4.5 billion Central Eyre response at the Whyalla steel works delegates from all over Australia say to us Iron Project received State Government and other sites, and a 120MW/600MWh ‘you are a model for the rest of Australia of Flash forward to the second half of 2017 pumped hydro storage facility at a disused approval in May and, if developed, communities strengthening their numbers by and things were beginning to look up for iron ore mine pit in the Middleback Ranges. will employ up to 2000 people during working together and actually being successful the Upper Spencer Gulf, with a run of good in what you’re doing’,” Ms Breuer said. news renewing confidence in the region. construction and 700 once operational. Mr Gupta also promised an additional 480MW of solar capacity in due course. “A whole range of new industries are OZ Minerals’ gave the green light to its A huge turning point was the July starting to look into coming to our area.” sale of Arrium to GFG Alliance, led by $916 million Carrapateena mine, north Gupta Family Group executive chairman of Port Augusta, in August, while BHP A region in transition According to the Upper Spencer Gulf Sanjeev Gupta, which ended 15 months of has pledged to support Upper Spencer Common Purpose Group, an alliance between the three local Governments, one uncertainty for the people of Whyalla and Gulf businesses as its FY17 $600 million Through the Upper Spencer Gulf’s shared of the region’s biggest challenges in the past supply chain businesses in the area. investment into its struggles, Ms Breuer said the cities had been its reliance on single industries ramps up. had put rivalries aside and now worked “I don’t think we could have asked for a dependent on global influences. better result,” Ms Breuer said. In addition, there were a number of together more closely. Metal mining and processing had been graphite mines planned for the region. “All three communities have been in “Certainly the State Government has a key pillar supporting the region since its Lincoln Minerals hopes to begin crisis in the last couple of years,” Ms been very important to Whyalla over the inception, but the group remained confident Breuer said. last 18 months, and very important to the development at Kookaburra Gully in the this will change over time as the region sale process of Arrium [through its $50 2018-19 financial year, and Renascor “Out of trauma and tragedy comes a diversified into new industries. million contribution to support the new Resources is pushing hard to get its tier 1 stronger working relationship. owner]. asset Siviour up and running. “Basically in the past we have been “We’ve always had a little bit of rivalry engineering and mining,” Ms Breuer said. “I feel very confident about GFG Alliance Then there’s the strong renewable between the three cities, but we’ve basically and their role in all of this, very confident energy push; in August, the State put that aside now and decided we need to “We now are broadening; we are about his [Sanjeev Gupta’s] attitude, not Government announced a new $650 work together – we need to complement broadening into the health areas, into to just the plant itself but to steel making million solar thermal power station in Port each other. education, the renewable energy area, and defence is a huge item for us at the moment. and our community. Augusta to help fill the energy void. “We communicate almost daily about “He’s prepared to get involved in Due for completion in 2020, the what’s happening in our areas, and while (CONTINUED OVER) DECEMBER 2017 26 THE UPPER SPENCER GULF THE AUSTLIAN MINING REVIEW

(CONTINUED FROM PAGE 25)

GFG Alliance. Photography: Sean Kelly.

“We have got an area of land between future projects.” Port Augusta and Whyalla that has been Ms Breuer said there had also been taken over by the defence forces and they a lot of discussion about investing in are doing all of their training exercises in transport infrastructure to reposition our area now.” the region as a national transport and The renewable energy industry was also logistics hub. a big ticket item for the region’s growth, At present, the Port Pirie and Whyalla with Whyalla now undertaking a lot of the ports were both underutilised, with the work for the towers and turbines for wind region seeking greater access and use of farms. these facilities. “We’ve also got a company that is “There’s been a lot of discussion about interested in moving to Whyalla to set up a this and working close with State and helicopter training school which is going to Federal Government on this,” she said. be quite amazing for us in the future if that gets off the ground,” she said. “And then there’s a whole lot of other “In the last three companies — transport companies for months since the Arrium example — that are moving in. “In the last three months since the announcement, we’ve Arrium announcement, we’ve started to get started to get a whole lot a whole lot more companies that are talking to us again with a view of setting up in our more companies that are region. All three cities have noticed this.” talking to us again with a Yet mining remained a key pillar. view of setting up in our Ms Breuer said a substantial amount of money was currently being invested in the region. All three cities have region, particularly in prospecting and the noticed this.” development of new projects. “At the recent Upper Spencer Gulf Global “The isolation of our region is one of Maintenance Conference there were a our biggest problems, we are a long way number of new mining projects discussed,” from anywhere, so those back up services she said. Whyalla Mayor Lyn Breuer. there and a good transport system will “It was really quite exciting because certainly make it more attractive for the even if only half of them get off the ground According to the local Government Developing the region as a heavy companies coming in, particularly for there’s jobs and services for our region.” alliance, building local capacity in these industry hub was also high on the agenda. the transport of goods and services and areas was vital to promote growth for a workers. “The three Spencer Gulf cities have more diversified economy. Ms Breuer said she was proud of the Building a national hub a fairly common heritage in that we region and the recognition it received at Ms Breuer said given the Gulf’s all have a fairly strong engineering While confidence was returning to the proximity to South Australia’s the SEGRA conference. background,” Ms Breuer said. region, the three cities still recorded prospective mining projects, the region “We know that we are making things a below average number of technical, was ideally located to become a hub for “With this common heritage, we have happen in our region, and look forward scientific and professional and business innovation, applied research, skills and common skills across the three cities and to a confident future for our children and services enterprises. training for the mining sector. are able to use them for development of grandchildren,” she said. DECEMBER 2017 THE AUSTLIAN MINING REVIEW THE UPPER SPENCER GULF 27 Aquest completes work at Arrium IPF AQUEST Electrical was recently contracted to help complete the iron ore integrated processing facility (IPF) at Arrium’s Iron Knob and Iron Baron projects in South Australia. The IPF is critical to the mining and steelmaking processes, with the objective of improving the quality by refining the ore to raise the Fe content and fetch higher prices. Aquest provided services throughout the entire project, right down to mobilising and demobilising all site offices and workshops. This work included the installation of 33KV transformers for the plant and process water demands; and all electrical cabling, variable frequency drives and field devices for the conveyors, screens and pumps. Aquest also completed upgrading switchrooms and VF drives for pump stations, as well as optic fibre installations, terminations, repairs with full testing and certification. The IPF was integrated with existing plant efficiently, and without costly delays to production. For more than 10 years Aquest Electrical has delivered quality technical electrical, communication and refrigeration solutions to its clients across the resources and heavy industry sectors in Australia. The company provides its clients with remote location maintenance crews and long term operational support for fabrication, installation, removal, repair and refurbishment at mobile and fixed plant facilities. Aquest has completed electrical work at major projects across Australia. DECEMBER 2017 28 THE UPPER SPENCER GULF THE AUSTLIAN MINING REVIEW Year-round equipment hire

ESTABLISHED in 2008, CBCH Crane Hire is a local company owned and operated out of Whyalla, South Australia. The staff pride themselves on providing all their clients with professional, reliable service with the hire of equipment, as well as facets of mining, shutdowns, construction and general crane hire. “We employ local, and our team is very hands on and close knit,” CBCH director Chris Birch said. “Our operators and ground staff are experienced riggers and dogmen, and many have industrial qualifications and trades, which allows more versatility.” CBCH Crane Hire has vast experience in the mining and resources industry and has been involved in major contracts in Whyalla, such as the Arrium Port Expansion facility, Crushing Facility- Iron Barron, Whyalla Public Hospital upgrade, Leighton Rail Loop project and the Dolphin upgrade at Santos. “At CBCH Crane Hire, we recognise that safety is a crucial element to our business, and we are constantly striving for zero harm in our workplaces through regular training and servicing of our equipment,” Mr Birch said. More information can be found at: www.cbch.com.au. CBCH Crane Hire has vast experience servicing the resources industry in the Upper Spencer Gulf region. DECEMBER 2017 THE AUSTLIAN MINING REVIEW THE UPPER SPENCER GULF 29

Maritime A strong Constructions chief executive SA Shane Fiedler. presence

IT’S been a rough couple of years for Australian construction contractors, but a market leader in marine infrastructure services, Maritime Constructions, has ridden the storm. Thanks to a few tweaks such as branching out overseas, cutting costs and becoming a major EPC (engineering, procurement and construction) contractor, the award-winning Port Adelaide-based business is booming. Its main divisions are Maritime Constructions, which does major projects, Dredging and Port Development, and Harbours and Marine making up the Maritime group. “We’re coming out of a big recession as far as South and Western Australia are concerned,” Maritime Constructions chief executive Shane Fiedler said. “The last 24 months have been pretty bad for contractors and the fact we’re still here is testimony to us reacting to the market conditions. “We adjusted across the business to and ride out the storm.” Recent contracts included the construction of the first stage of the Maritime Constructions owns and operates a versatile fleet of floating plant and equipment. recently opened Onslow Marine Support Base in WA, the design and construction of Australia. jetties and harbours,” Mr Fiedler said. Australia.” a timber export facility at Kangaroo Island, “We have long-term dredging contracts, “Thankfully the last 12 months – the last The company has a strong foothold in the South Australia, and a refurbishment and long-term construction contracts with six months especially – have been fantastic. Upper Spencer Gulf and is looking forward of a timber jetty at Port Victoria, South the SA State Government maintaining “We’re looking positive in terms of to new opportunities in the region. DECEMBER 2017 30 THE UPPER SPENCER GULF THE AUSTLIAN MINING REVIEW DECEMBER 2017 THE AUSTLIAN MINING REVIEW OZ MINERALS 31 GROWTH PIPELINE Momentum is building across the OZ Minerals portfolio as construction advances at the $916 million Carrapateena project, while open pit mining picks up pace at Prominent Hill to expedite it’s transition to an underground-only operation.

All images: OZ Minerals.

ELIZABETH FABRI Ankata was established, and in 2015 OZ Minerals commissioned the second decline Malu underground, as mining at the open IN August, the OZ Minerals board green pit approached completion in 2018. lit the development of its Carrapateena In October, OZ Minerals announced it copper-gold project, 160km north of Port would fast track the closure of the open pit Augusta. to the first quarter of next year (instead of The decision to develop the project was a mid-2018) to deliver cost savings. defining moment for OZ Minerals as it gears “An accelerated mine plan will bring up to become a low cost, multi-asset copper forward open pit closure to Q1 2018 with producer. “In a nutshell, if you associated net fixed cost savings of circa The miner’s one operating mine $10 million over the remaining pit life,” Mr Prominent Hill is a lucrative asset that compare Carrapateena Cole said. produces more than 100,000 tonnes (t) of to other projects Mr Cole added during the September copper a year; but OZ Minerals is about to [globally] it has got to quarter, Prominent Hill’s underground take the next step. mine performed strongly with production Scheduled to begin commissioning be one of the strongest up 15 per cent and unit costs 21 per cent in the fourth quarter of 2019 – in line copper developments lower than the prior quarter. with projected rising copper demand – in the world.” “The second decline broke through to the Carrapateena will have an annual output open pit in August, enabling productivity of 65,000t of copper and 69,000 ounces (oz) and efficiency gains as the underground of gold over a 20 year mine life. works to increase production to 3.5-4.0mtpa The mine will be constructed over two construction lowered on-site construction plant, tailings facility and other above in 2019,” he said. personnel and reduced the size of the camp ground infrastructure. stages, with the first phase of development “The operation is on track to deliver all almost complete. by 30 per cent. “Carrapateena is a fantastic resource, it’s other guidance metrics.” “The Carrapateena project has seen “By doing it in two phases like this we can very big and the grades are very good,” Mr However, in August BHP announced considerable progress with key contracts keep the size of the construction workforce Cole said. it would be terminating Prominent Hill’s finalised and orders placed for long lead down to under 550 people on site at any one “In a nutshell if you compare power connection and access agreement items associated with the process plant,” time, but spread over a few years,” he said. Carrapateena to other projects [globally] from 30 August 2020 to facilitate the OZ Minerals managing director and chief “This makes us much easy to manage and it has got to be one of the strongest copper planned expansion of its Olympic Dam executive Andrew Cole said. make the operation safer. developments in the world.” operation. “Decline development is on plan with the “A lot of the activity will also be offsite Under the existing agreement, second decline breaking through to the box with modular components; it’s about keeping Prominent Hill Prominent Hill shares BHP’s power line cut, providing the primary ventilation circuit the manning levels down on site.” from Davenport to Olympic Dam, with and greatly enhancing access and egress. Recent work on site included development Further north, the Prominent Hill mine electricity fixed at Prominent Hill to the “We are now in the Woomera Shale and of the airstrip, construction of a pre-owned end of 2018. have developed an efficient cycle of blast, 550-person accommodation village, and was growing with an updated mine life OZ Minerals assured shareholders the bog, rapid shotcrete and support to maintain mobilisation of the construction workforce. extending out to 2026. power termination was not expected to a steady pace. The northern South Australian operation Pending a mining lease approval affect the mine’s guidance until FY19, but “Decline development now totals 3017 first came online in 2009, and now produces expected early next year, the second phase may increase AISC from mid-2020. metres.” is scheduled to begin in Q2 2018 and will more than 100,000t of copper a year. Mr Cole said a two-pronged approach to involve the construction of the processing In 2012, the first underground mine (CONTINUED OVER) DECEMBER 2017 32 OZ MINERALS THE AUSTLIAN MINING REVIEW

(CONTINUED FROM PAGE 31)

Mr Cole said OZ Minerals had been working on a power strategy over the last Q3 2017 couple of years, for Prominent Hill and HIGHLIGHTS Carrapateena. In its September quarterly report, OZ Prominent Hill Minerals confirmed commercial negotiations production: were nearing completion in relation to provision of emergency diesel generation 28,880t Copper & options should this be required. 29,264oz Gold Renewable energy options were currently • in the design stage, and a range of other Underground energy saving programs were underway. “We certainly have long term options for production up 15% and power at Prominent Hill, which will also unit costs down 21% on help us with future site scaling options at Q2 Carrapateena,” Mr Cole said. • “Over the next few years we’re not going to see any changes to Prominent Hill or its costs. Carrapateena phase “After that we could see a few per cent one construction begins increases in All in Sustaining Costs at • Prominent Hill as we put in longer term power solutions, but those longer term power Cash balance increased solutions, while they might have a few per from $625 million to cent increase at Prominent Hill, they will $639 million actually enable us to look at more expansion optionality for Carrapateena and Prominent Hill over the longer term.” next stage of its earn-in agreement and earn into the mining inventory thereby extending mining inventory; the total footprint of the mineralised ore body there is 800 million Growth options a 51 per cent stake in the project by spending mine life within the current pre-production $19 million within 18 months. capital profile.” tonnes, so there’s opportunity to grow Carrapateena in time,” he said. Beyond Carrapateena, OZ Minerals was “The Further Scoping Study has The project has an initial eight year “There’s also other mineralisation in about to kick off a pre-feasibility study at the confirmed the economic viability of the mining life, with a clear view to increase this the area, namely Fremantle Doctor and West Musgrave JV in WA. Nebo-Babel project and has increased our to beyond 15 years. Khamsin, which we will study and drill over confidence in the potential of the project,” “In five years’ time, if all of the works go In August 2016, the company signed an the coming couple of years to understand Mr Cole said. well, West Musgrave will be at the tail end of agreement with Cassini Resources to earn what our future optionality of Carapateena construction,” he said. up to 70 per cent of the copper-nickel project. “This is an exciting new mineral province is. with attractive near mine and district On 14 November, OZ Minerals announced Moving forward, Mr Cole said the company “We’ve got another number of projects it would begin a pre-feasibility study at the opportunities. would also look at growing Carrapateena in the pipeline which we’re working on now project following positive results from a “Investment will be made during once it had entered production. and we’ll keep adding to that pipeline so we scoping study of the Nebo-Babel deposit. the prefeasibility to focus on Inferred to “The Carapateena development right now can create real value by taking resources OZ Minerals would also proceed to the Indicated Resource conversion for inclusion is focused on just over 80 million tonnes of and converting them into operating mines.” DECEMBER 2017 THE AUSTLIAN MINING REVIEW RIO TINTO: AMRUN 33 AN (UN)REFINED STRATEGY Surging demand from Chinese alumina refineries is helping push the price of the bauxite back up – for now, anyway – ahead of the country’s aggressive winter shutdown policy. Yet the long term fundamentals are very promising, and Rio Tinto’s Amrun development is poised to take advantage.

All images: Rio Tinto.

REUBEN ADAMS options and pathways over the coming the $160m contract to construct a processing decades,” he said. facility; including a beneficiation plant and “We are establishing Cape York bauxite as associated water, electrical and lighting IN August, Chinese bauxite and alumina the product of choice for the Chinese seaborne systems. imports increased 46 per cent and 123 per market with consistent quality, security The fabrication, pre-cast manufacture cent respectively. of supply and strong technical marketing and assembly work for this facility has taken By late October the alumina price, based support. place at Civmec’s Perth-based Henderson on Metal Bulletin’s FOB Australia index, “Amrun will be significant in helping to facility, where about 350 employees including had climbed 53 percent to $469.74 a tonne meet growing bauxite demand from China.” subcontractors are working on fabrication and another 120 on module assembly. in two months; its highest level since the This forecast is proving correct. With index was launched in 2010. revived plans to reduce exposure to In October, a heavy load vessel transported In an October note, Wood Mackenzie downstream aluminium processing through three beneficiation modules and a transfer senior analyst Ami Shivkar stated that the sale of its ‘Project Lego’ assets, Rio is seeing tower into the Port of Weipa. there was still steam left in the price rally bauxite exports as its most value-generative These modules each weigh more than 1200 ahead of the mandated winter refining proposition. tonnes with dimensions of up to 16 metres shutdown. “Prospects for bauxite – a sector where Rio wide, 25 metres long and 30 metres high. “All the Chinese refineries don’t have the Tinto maintains a very strong competitive The remaining three modules were due to amount of bauxite they want and smelters position – are positive,” Rio’s 2016 Strategic arrive this month. are still stockpiling.” Report stated. The beneficiation modules will form the Long term forecasts are also positive. “The projected growth rate, mostly driven central facility of the plant, where bauxite In August, Rio Tinto predicted that by seaborne bauxite traded into the China from the Amrun mine will be washed and imports would play an increasingly market, is outpacing that of aluminium. screened onsite before being shipped to important role for China, which continued “This is due to both a desire by China to be customers. to add refining capacity while grappling self-sufficient in alumina, and the continuing with key construction activities continuing, The fabrication of key components were with declines in domestic bauxite quality. depletion and reduction in quality of China’s including installation of the first three wharf also made with 95 per cent Australian steel. Australia is the world’s largest producer bauxite resource position.” modules and fabrication and transportation Rio Tinto Amrun project director of bauxite, accounting for about one-third of The $2.6 billion Amrun project involves to site of the process plant beneficiation Marcia Hanrahan said fabrication of these global output in 2016-17. construction of a bauxite mine and associated modules,” the company stated in its Q3 components had showcased best practice Domestic production is expected to reach processing and port facilities about 40km report. Australian manufacturing using 4000 tonnes 83.4 million tonnes in 2016-17, up from south of the Embley River near Boyd Point on of Australian steel. 72.9 million tonnes in 2011-12 according to Cape York Peninsula. “Construction of the processing facility has IbisWorld. Once operational, Amrun will replace “The projected growth rate, created hundreds of jobs in WA, in addition to North QLD has some of Earth’s largest production from the existing East Weipa mostly driven by seaborne our current Amrun workforce of around 1200 known bauxite deposits, and the region mine and increase overall annual exports by in QLD,” she said. is home to a number of advanced, world about 10mtpa. Planned initial output is 22.8 bauxite traded into the Businesses bidding for contracts over class projects as companies look to take million tonnes per year, but there are options China market, is outpacing $1m completed a Local and Indigenous advantage of healthy demand. for future expansions up to 50mtpa. Participation Plan as part of the procurement Leading the charge is Rio Tinto’s Amrun By March 2017 Rio had awarded more that of aluminium.” process. project, which is scheduled for completion than $900 million in contracts to 509 “Almost 80 per cent of the Amrun in 2019. QLD suppliers; and almost two thirds of workforce are Queenslanders including 176 Announcing the development decision in the $1.38bn in contracts were awarded to indigenous employees of which 43 are local November 2015, former Rio chief executive Australian suppliers. A national project Aboriginal people,” Ms Hanrahan said. Sam Walsh called Amrun one of the highest Third quarter results saw the project “We are proud of the supplier and quality bauxite projects in the world. on schedule for first shipment in H1 2019, By November, Amrun had created 470 jobs employment opportunities we have created “This long-life, low-cost, expandable according to the company. across Australia, Rio announced. for Australians and there will be more to asset offers a wide variety of development “The Amrun project is advancing to plan In 2016, WA supplier Civmec was awarded come.” DECEMBER 2017 34 RIO TINTO: AMRUN THE AUSTLIAN MINING REVIEW DECEMBER 2017 THE AUSTLIAN MINING REVIEW PACIFIC NATIONAL 35 WHEELS IN MOTION

Recent worker strikes over employment conditions have not hampered Pacific National’s next round of developments under the fresh leadership of former BHP chief operating officer Dean Dalla Valle. All images: Pacific National.

ELIZABETH FABRI The company has been in negotiations with the Rail, Tram and Bus Union (RTBU) since May concerning worker conditions, IT’S been an eventful six months for such as pay, breaks, RDOs, and better interconnected rail freight operator Pacific quality accommodation. National. At the beginning of negotiations the In July, veteran mining executive Dean RTBU submitted an application to the Fair Dalla Valle was appointed chief executive Work Commission to have one enterprise of the company to replace David Irwin; a agreement for all Pacific National employees defining moment as Pacific National lays at the request of members. the groundwork for its next wave of growth In October, Pacific National informed options. RTBU it would proceed with two separate Mr Dalla Valle was best known for his agreements for its bulk freight and coal four decade run at BHP, including recent haulage businesses. work managing the global miner’s response In response, in the last two weekends of to the tragic dam disaster in Brazil. October, the union organised two 48-hour His move to the freight industry mirrored strikes involving hundreds of Pacific former Rio Tinto Iron Ore chief executive National’s train workers. Andrew Harding’s decision to join Aurizon According to Platts, the strikes resulted as its new chief executive in December close the third. “Located at the intersection of the in the cancellation of 90 trains in the first 2016. weekend, causing delays to Newcastle coal Aurizon would also transfer about main western railway line running from shipments. In August, less than a month into the 350 employee positions as well as assets, Sydney to Perth, the future Inland Rail new role, Mr Dalla Valle had inked a deal commercial and operational arrangements to corridor from Melbourne to Brisbane, and The company usually runs 500 freight the Newell Highway, Parkes is the perfect with major competitor Aurizon to purchase the Linfox and Pacific National consortium, train services each week in NSW covering place to establish a major intermodal freight its Acacia Ridge Terminal south of Brisbane on top of the 30 Aurizon employees it would the transport of coal, cement, aggregates, terminal.” in a bid to supplement Pacific National’s transfer under the Acacia Ridge deal. and other bulk products such as grain, and national terminal network. The $35 million spend included $18 livestock. Total consideration for the two million to begin development of the terminal Separately, Pacific National also signed a transactions was $220 million, and if the Pacific National said it had the “highest binding agreement to take over the Aurizon site and $17 million to acquire ‘rolling stock’ regard” for its train crews and said it had Acacia Ridge transaction was not complete like freight wagons. Queensland Intermodal business as part of a within six months, Pacific National would continued to negotiate in good faith with the consortium with Linfox. Pending final Government approvals, have to fork out an additional $5 million. RTBU for a new enterprise agreement for its The intermodal business had been once developed the terminal would have NSW bulk freight business unit. Both agreements were now awaiting operating at a financial loss for some time, capacity to process about 450,000 cargo “Pacific National is continuing to work approval by the Australian Competition which Aurizon attributed to issues around containers each year, and the ability to haul towards a timely resolution in the best & Consumer Commission (ACCC) and the establishing significant scale and a customer double-stacked containers from Parkes to interests of our employees, customers and Foreign Investment & Review Board. base to support the business in such a highly Perth. the business, and we are working around competitive market. But Pacific National didn’t stop there. Construction was expected to begin by this industrial action to meet our customers’ “Queensland Intermodal supports Pacific On 24 October, the company announced mid-2018 with first trains hauling freight at needs,” the company said. the terminal in early 2019. National’s strategic objective to grow in it would commit $35 million to kick start “We are not looking to reduce the terms important markets and allows for Pacific the development of its Parkes Logistics of employment of our train crews, but simply National to offer new northbound services Terminal project; a major inland freight port Pay Disputes want to better utilise the hours they are and southbound services within Queensland on the junction of two of Australia’s national being paid, to help the company remain on day one,” Mr Dalla Valle said. rail lines. Pacific National has also been concurrently efficient in a competitive sector.” As part of the deal, Aurizon will sell two “Parkes sits at the epicentre of Australia’s embroiled in industrial action over issues Pacific National and RTBU are continuing components of the Intermodal business and rail freight network,” Mr Dalla Valle said. with new employee enterprise agreements. negotiations to discuss a way forward. DECEMBER 2017 36 PACIFIC NATIONAL THE AUSTLIAN MINING REVIEW Long-proven service to rail

VARLEY Group is a diversified engineering and manufacturing company. Since its establishment in 1886, Varley has grown its workforce to more than 1000 employees, with operations in all mainland Australian States, plus an additional three in the US and two in Indonesia. Two major industries serviced by the company are rail and specialised vehicles. Varley’s ONRSR-accredited rail division has provided engineering and maintenance to the industry from its strategically-located facilities in Newcastle since 1984. It also provides customer field service and support for breakdown repairs, in-field maintenance, and wagon recovery. Varley has a long and successful association with Pacific National, having serviced its extensive rolling stock assets and performed fleet refurbishments since Pacific National’s formation in 2002. The company’s specialised vehicle division – also known as Varley Specialised Vehicles – designs, manufactures and services a wide range of rail-related vehicles including rail shunters, road rail vehicles, infrastructure maintenance vehicles, overhead wiring maintenance (OMVs), elevated work platforms (EWPs) and many other custom vehicles. One of the many wagons Varley has refurbished for Pacific National. Varley has a proven record of completing fleet refurbishments and working with rail facilities, which promote low cost and wash bay suitable for 180T locomotives. and manufacture of hi-rail and infrastructure customers to achieve favourable outcomes. timely movement of rolling stock. As part of its growth strategy, Hinton equipment, as well as rail access certification With extensive experience over many Its advanced facilities in Carrington, Engineering recently became a part of the for all hi-rail equipment across multiple decades, Varley offers a high level of expertise Newcastle, are well-equipped to hold multiple Varley Group. States. in rolling stock maintenance. wagons on seven railroads and include a A long-established and highly-reputable More information about Varley Group can The business is supported by its excellent full-length undercover locomotive pit and rail business, Hinton specialises in the design be found at: www.varleygroup.com. DECEMBER 2017 THE AUSTLIAN MINING REVIEW SANDFIRE RESOURCES 37

“With many analysts predicting strong long-term fundamentals for the copper market over the coming years, Sandfire is exceptionally well placed to deliver growth.”

SELF DISCOVERY As development of the Monty deposit continues to schedule, Sandfire Resources is making moves to unlock the full potential of the Greater Doolgunna orebody. Images: Sandfire Resources.

CAMERON DRUMMOND Resources across the DeGrussa, Monty, Black Butte, Thaduna, Green Dragon and Temora projects were estimated to contain a ‘EXPLORATION and expansion’ has been total of 1.9mt of copper, 2.7moz of gold and Sandfire Resources’ mantra in 2017 against 15.8moz of silver. the backdrop of a very healthy copper market. DeGrussa and Monty accounted for group As the Monty development (Springfield reserves of 9.5mt at for 372,000t of copper, JV) progresses, a key focus for Sandfire 439,000oz of gold and 5,941,000oz of silver. has been intense, multi-pronged drilling Production FY17 was at the upper end of programs around its Greater Doolgunna guidance at 67,088t of copper and 38,623oz of project and the Springfield JV which covers gold, slightly down on FY16 figures of 68,202t 5846 square km. of copper and 37,612oz of gold. A farm-in agreement between Sandfire During the September quarter, production and Enterprise Metals was also signed in was sourced from all lenses at DeGrussa, October for Enterprise’s entire Doolgunna amounting to 437,136 tonnes grading at 3.79 project area. per cent copper. After spending $1.5 million drilling in the Copper production was 15,258t (June area, Sandfire can sole fund exploration and Quarter: 17,092t), and C1 cash operating earn a 75 per cent interest in the project by Exploration drilling at Greater Doolgunna. costs for the quarter were $US0.95/lb, in line discovering and defining mineral resources with previous quarter levels. of at least 50,000 tonnes (t) copper metal or Targeted copper production for FY18 equivalent. Monty development new geological interpretations at Monty NE, Monty East and Homer South, along with remained unchanged, with production Sandfire wasted no time, completing geochemical anomalies identified within the expected to be in the range of between 63,000t 1481 drill holes for 125,672m in Enterprise Discovered in 2016, the Monty copper-gold Southern Volcanics. and 66,000t of contained copper metal, and tenements by the start of November. deposit is the central focus of Sandfire’s 70 between 35,000oz and 38,000oz of gold. per cent owned Springfield joint venture (JV) In fact, its December quarter exploration The miner said it would continue its major with Talisman Mining (30 per cent). budget would focus predominantly on C1 cash operating costs were expected to 600-hole AC drilling program at the farm-in Springfield. be within the range of $US1.00-1.05/lb; at the project to test 50 strike kilometres of the A feasibility study conducted in early lower end of the normal operating range due The planned work continues from the interpreted favourable volcano-sedimentary 2017 outlined a 70,000t of copper, 21,000 to high gold production and increasing gold previous quarter, which was primarily sequence which hosts the DeGrussa and ounces (oz) of gold and 288,000oz of silver price assisted by-product credits, offset in focused on detailed geological reviews, and Monty copper-gold deposits. operation with a three-year production life. part by a strengthening Australian dollar. the interpretation and assessment of Induced “We are very pleased that Sandfire An investment decision was quickly made to Polarisation (IP) geophysical data collected Mr Simich said Sandfire would continue is continuing to undertake a thorough go ahead at a capital cost of $90m. over the Monty and Monty NE areas. its exploration and expansion strategies into and systematic exploration program in During the year the project has progressed 2018. Enterprise’s Doolgunna Project area,” on schedule, with the completion of haul and “Joint venture exploration efforts continue “With many analysts predicting strong Enterprise managing director Dermot Ryan access roads, excavation of the box cut for to re-evaluate and reinterpret geological, long-term fundamentals for the copper said. underground access, and the commencement geochemical and geophysical data on an ongoing and iterative basis to maximise market over the coming years, Sandfire is “We are looking forward to the results of of the decline, stockpile and laydown area discovery opportunities within the Springfield exceptionally well placed to deliver growth, Sandfire’s extensive geophysical surveys and pads and infrastructure works. area,” Mr Simich said. leveraging from the company’s high grade, drilling programs.” Cutting of the decline portal for the new high quality mining operation at DeGrussa; a Sandfire said it would also continue underground mine was expected to commence new ultra-high grade mine coming on stream with intensive drilling programs at its own this month, and underground development Production at Monty; outstanding exploration upside in Doolgunna tenements, with exploration was expected to take about one year, with the world-class Doolgunna VMS district; and focused along the highly prospective VMS first ore scheduled for Q2 FY19. After proving up resources during the year, a growth pipeline including the Black Butte corridor that hosts both the DeGrussa and Sandfire’s exploration and discovery Sandfire released its mineral resource and deposit and other emerging opportunities on Monty deposits. strategy also included the testing various reserve estimate for its assets. the East Coast of Australia,” he said. THE AUSTLIAN MINING REVIEW NOVEMBER 2017 38 INDUSTRY PROFILES COMPANIES GEARING UP COLLAHUASI BOOSTS AVAILABILITY OF ITS VPA FILTER

Faced with increased production demands, Compañía Minera Doña Inés de Collahuasi had the goal of increasing both the availability and performance of its vertical plate pressure filters (VPA) in Puerto Patache, which were becoming outdated after more than 20 years in operation. In collaboration with Metso, Collahuasi developed an upgrade plan based on using state-of-the-art technology; the desired objectives were met and resulted in a 15 per cent increase in filter availability.

THE project was carried out at related to the requirements of its VPA the selection and making it easier and Collahuasi’s mine in northern Chile, about vertical filters to increase their production quicker to get the results. 180km southeast of the port of Iquique, at capacity while also increasing the overall Another technological improvement an altitude of 4400m. reliability of the system. introduced was the implementation This mining district has been in Due to the high productivity OCS-4D, an advanced process control business since 1880 with the exportation requirements and over 20 years of use solution. of high-grade copper-silver vein systems. since its installation, the filters were The solution assisted in determining the Currently, it is dedicated to the showing a high degree of wear and optimal control modes through analyzing extraction and production of copper and misalignment, which reduced their the interplay between the selection of molybdenum concentrate. availability due to the extra maintenance fabrics and maintenance events. During 2016, Collahuasi was the required by the filters and considerable Finally, the chute was also examined third-largest copper operation in unplanned downtime. for possible improvement opportunities. the world and has one of the largest During the review stage of the overhaul, As the VPA filters discharge the filtered deposits of mineral resources of copper a joint decision was made to improve and material (cake) into the chute, it was on the planet (9.964 million tonnes). Its upgrade the control systems, lubrication subjected to high rates of wear, causing a shareholders are Anglo American plc and structure of the equipment in order to reduction in performance. Various designs (44 per cent), Glencore (44 per cent) and achieve higher levels of availability. and options were examined to improve ease Japan Collahuasi Resources B.V. (12 per of maintenance and thus reduce downtime. cent). Equipment refurbished to as new “Searching for a design that improved Collahuasi was facing the great condition maintainability, we implemented new, challenge, common to many global mining modular design upgrades to the chute, so groups, of optimising its operations to The challenge for Metso resulted in that it could receive maintenance section achieve the highest levels of efficiency. upgrading the control systems to the by section,” Minerals Process Equipment “In order to ensure productivity and latest technology, achieving values of over manager Alejandro Bravo said. profitability in the future, Collahuasi 92 per cent availability and 100 per cent “Thus, when a specific part shows signs has decided to develop a preventive of design capability. of wear, we can disassemble that part and maintenance improvement program, This involved reinstalling and change it quickly. which is comprised of a master plan to upgrading equipment in less than 20 days Changing the plates of the filter. maximize availability and minimize to minimize lost production. “This is also an improvement that was bottlenecks, through a long-term and The engineering coordination, parts was completely disassembled and over 80 tailored for the client, given that with the sustainable approach. Its objective is procurement and planning activities per cent of its parts were replaced with original design we had to disassemble the to detect potential problems in advance began six months earlier in order to new parts using a nanocoating technology entire equipment to be able to change some and maximize the performance and ensure the complete compatibility and for corrosive environments. parts.” availability of existing equipment,” successful outcome of this upgrade. Using this approach would double the Collahausi vice president for processes lifespan of the key parts and components Expanding the project Dalibor Dragicevic said. Comprehensive technological and reduce potential downtime. In addition to the VPA filters, solution In order to achieve the optimal selection Given the success of the project, Minera Collahuasi also has other equipment from of fabric, a pilot filter was implemented at Doña Inés de Collahuasi SCM is evaluating Metso such as semi-autogenous (SAG) The extensive upgrade of the equipment the worksite to take samples of concentrate. the implementation of the same upgrade grinding mills, ball mills, and Vertimills. involved multiple steps. The Metso team The samples were then used to help define concept in other VPA filters as part of its first proposed improving the original the proper fabric for the filtering process asset management plan. Ageing equipment poses a challenge design capacity by updating components given the specific mineral conditions that “With this solution, we have been able to and systems to produce some important Collahuasi was processing. meet some of the availability goals we set Thanks to the collaborative relationship benefits. In many situations, these types of tests for 2017. The filter today works according between Collahuasi and Metso, a joint For this, Metso focused on the main involve using Metso laboratories located in to the plans drawn up with Metso, which diagnostic meeting was held to review the problems that were causing the structural Brazil and Finland. However, with the pilot helps us to continue operating efficiently,” main needs and potential improvement to misalignment of the filters. In order to filter on site, it was possible to perform all Collahausi Symptomatic Process senior the filtrate-concentrate level, which was solve the structural problems, the filter the tests in situ with the client, improving engineer Cristián Barros said. DECEMBER 2017 THE AUSTLIAN MINING REVIEW COMPANIES GEARING UP 39 A blueprint for wealth generation THE mining industry has experienced a Blueprint Wealth can assist people to slowdown for the past couple of years, and make the most of their incomes and help as wages and jobs become tighter many them feel like they are getting ahead people in mining have used this period financially and not just “spinning their as an opportunity to make sure they are wheels”. getting ahead financially. The company sits down with clients and Many people seeking advice from puts plans in place to get them on track to Blueprint Wealth complain that they do maximising their financial position. not feel like they are making the most of Over time, Blueprint Wealth can show their current income. people the benefit and reward of sticking They feel as though their time spent to their tailored strategy. in mining earning high wages should have them in a better position than they currently are. Blueprint Planning Pty Ltd (ABN 78 The team at Blueprint Wealth are big 097 264 554), trading as Blueprint Wealth, believers in not being able to change the is an Authorised Representative and past, but learning from it. Credit Representative of AMP Financial “Working in the mining industry can Planning Pty Ltd, Australian Financial be lucrative and we see many high income Services Licensee and Australian Credit earners establish large amounts of Licensee. investments; these people work hard and This article contains information that don’t have a lot of time to spend in this Blueprint Wealth financial advisor Brad Martin presenting at the Kanowna Belle mine site in Kalgoorlie, WA. is general in nature and does not take area so they use a company like ours that into account your objectives, financial specialises in building wealth,” Blueprint out what is best for them, then helping regularly reviewed. Situations change – situation or needs. Therefore, before Wealth director David Baruffi said. that person put that best practice into it could be a person’s job, income, house making any decision, you should consider Financial planning is about looking at place. upgrades or having another child. All of the appropriateness of the advice in an individuals’ current situation, working Every good financial plan needs to be these impact the original plan put in place. regards to those matters. Tough jobs, tough pumps

Springvale Coal’s Anthony Brown with REMA TIP TOP Product Engineer Scott Hancock and some fresh pink rollers ready to be installed. Generating breast cancer awareness REMA TIP TOP has donated more than $5200 to the Cancer Council as part of its 2017 Pink Roller campaign. The Pink Ribbon inspired conveyor belt roller campaign saw REMA TIP TOP come together with its roller manufacturer partner, Hong Kong based RKM Rollers, to produce a bright pink roller distributed to mine sites Two LH690 90kW dewatering pumps in a mine staging pit. that opted into the initiative. Several thousand pink rollers were AUSTRALIAN Pump Industries (Aussie deliver flows of up to 6500 litres per minute and Tsurumi LH series: Mine Friendly distributed to NSW mine sites as a Pumps) reintroduced Tsurumi’s LH series heads as high as 150m. result of the campaign, and the team is submersibles to Australia’s mining industry six The slimline design means the pump can be now looking to take the initiative to a years ago. They don’t break installed in narrow spaces. national level in 2018. The aim was to repeat the great success It can even be used in bores and wells, REMA TIP TOP chief operations achieved by the product in South Africa, the US Tsurumi’s whole program is based around substantially reducing installation costs. The officer Craig Philpotts said the work on and Canada. machines that are capable of providing flanged top discharge outlet ensures the pump the 2018 campaign would be beginning Tsurumi’s LH series represents a continuous service with minimal maintenance. is balanced for lifting. immediately. breakthrough in design and concept for mine The unique, anti-wicking cable entry dewatering pumps that face the harshest prevents water incursion due to capillary “By engaging the major mining Tsurumi: The Mining Solution conditions. wicking. This means that even if the cable houses, we hope to add one, if not more The submersibles are cylindrical in shape; is cut, damaged, or the end submerged the zeros to that donation next year,” he Australian Pump’s cooperation with Tsurumi’s very different to the conventional ‘broad belly’ water that penetrates the cable cannot wick said. engineers has been rewarded with the design. into the motor. fast-tracking of pumps that particularly suit “This money goes towards grass The obvious advantage for users is that The pump chamber has twin dual silicon Australia’s mining market. roots initiatives that benefit cancer Tsurumi pumps are equipped with high chrome carbide mechanical seals. These seals are Today, the fulfilment of the program includes suffers locally, and around Australia. iron impellers, designed for long lasting service rated as 5 times higher corrosion and heat 316 grade stainless steel LH series pumps from “The work of the Cancer Council and performance. resistance than tungsten carbide. The unique 22kW to 37kW and even as high as 110kW. is incredible, and we’re glad to be The ranges starts with 100mm (4”) pumps all design incorporates an oil chamber with an A comprehensive free literature pack is counted amongst its many passionate the way through to 8” pumps in a power ranged ‘oil lifter’ that ensures complete lubrication available from Australian Pump Industries on supporters.” from 22kW through to 110 kW. The pumps will and cooling to all seal faces. (02) 8865 3500. DECEMBER 2017 40 CONFERENCE & FUNCTION VENUES THE AUSTLIAN MINING REVIEW

The Alice Springs Convention Centre is located in picturesque surrounds. Corporate functions in the NT ALICE Springs Convention Centre (ASPCC) delivery. is a dedicated convention centre with It caters for small meetings of 10 people contemporary architecture that reflects the through to conferences of 1200 delegates, or colours of the Red Centre and the rustic large exhibitions of up to 3000 visitors. appeal of outback Australia. Alice Springs is almost exactly in the The centre is equipped with middle of Australia, making the ASPCC the state-of-the-art technology, best practice perfect location for national conferences, environmental controls and quality service meetings, incentives and gala events.

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CALL US TO BOOK YOUR PLACEMENT TODAY R FRNCIS (08) 6314 0303 0405 345 312 BOOKING DEADLINE: December 1st 2017 [email protected] DECEMBER 2017 THE AUSTLIAN MINING REVIEW CORROSION CONTROL 41

All images: Australasian Corrosion Association.

CORROSION CONTROL FOR MINES Corrosion of physical infrastructure vehicles, and machinery at mining operations and manufacturing facilities must be managed effectively to maintain safe and profitable

operations. Severe corrosion of a structural I-beam.

supports heavy machinery or tanks. AUSTRALASIAN CORROSION extremely expensive to replace. Protection ASSOCIATION “A rock scratch can potentially expose “The corrosion is often not noticed until the metal reinforcing which then can One way to protect the external surfaces the structure is cleaned, but a simple corrode,” IAS Group WA principal corrosion of vehicles and machinery is to use spray remedy might be to install ‘shedder plates’ ANY equipment failure can be expensive in and coating engineer Graham Carlisle said. applied surface protection, such as a that allow the dust to easily slide off the terms of lost production and cost of repairs. polyurea or polyurethane. metalwork,” Mr Carlisle said. An estimate for the cost of lost production Such coatings can extend the service Another way to minimise losses is to for a single dragline is $8000 per hour in “While coatings continue life of a vehicle and associated equipment, continually monitor plant and machinery Australia, making any breakdown very to be used, the industry is in addition to reducing maintenance and using non-destructive testing (NDT) costly when it might take weeks for a repair costs. methods to ascertain component health, replacement part to be available. also looking at the judicious Mr Carlisle stated that it is not just the and monitor mechanisms for damage. Machinery used to access, remove and use of more corrosion outside of vehicles and structures that can However, it is important that inspections haul away coal and other mineral resources be coated. are performed with minimal down time at mine sites is often used during every shift resistant materials, such Mines feature large numbers of high or costs, so need to be planned and and is under constant operational stress as duplex stainless steel pressure and volume pumps for moving coordinated to ensure that replacements due to the sheer weight of the material or water and processing slurry about the for critical parts are available when the the rotation and vibration of components and aluminium alloys, in facility. maintenance is carried out. and engines. the design of plant and “Mine fluid flow systems suffer from NDT is a group of techniques used Draglines and shovels are two key pieces equipment.” an accelerated ‘erosion corrosion’ process, to detect discontinuities in materials or of operating equipment with many shafts, where particulates in the water or slurry components without causing damage or pins, bores and lugs on them. scour the internal surfaces of pipes and permanently altering the article being The corrosion of physical infrastructure “However, it is now possible to pumps,” he said. inspected. at a mine site—mills, tanks, foundations, patch-repair damaged tyres with A recent repair project Mr Carlisle’s Outage and emergency repair costs can bunds—also has to be managed. urethane-based elastomeric compounds.” company was involved in was the relining be a significant percentage of the total “There is a lot of concrete on a mine site Ground water used in many mines for of a 13-tonne split-case pump housing. operating cost of a mine. that needs to be protected,” Extrin principal processing and equipment washdown is “We were fortunate that we could Finding a crack and repairing it before corrosion engineer Dr Peter Farinha said. usually hyper-saline. remove the whole housing to prepare and failure, or monitoring it until it needs “This is often more important in terms of “Such water is extremely aggressive coat the inner surfaces,” Mr Carlisle said. replacement and ensuring that parts asset values when they need to be replaced.” are ordered to arrive in time for the and damaging to infrastructure,” Mr “In many situations it is too costly to maintenance work to be carried out, saves The operating environment of both Carlisle said. interrupt a process running 24-hours a day both time and money. vehicles and equipment impact their “The high concentrations of chlorides so repair and remediation requires careful effective service life. rapidly seep into the concrete and begin to planning.” Best practice Variable climatic conditions can degrade the embedded reinforcing steel. In some processes, some members of be damaging and the harsh physical “Mine site ground water is often three the fixed structure are under water and environments of remote mine sites also times as salty as sea water, so mobile other surfaces are constantly damp, so the To support industry, the Australasian take their toll. equipment on the ground cops a real coating material chosen must be able to be Corrosion Association (ACA) works with These conditions include the dust, rocks hammering,” Dr Farinha said. applied in wet conditions and withstand academia and companies and asset owners to research all aspects of corrosion to provide and unmade roads in the arid, desert heat “Acidic gasses cause premature submersion. an extensive knowledge base that supports of Outback Australia through to cold alpine corrosion so there is not much left of your Mine sites are extremely dusty, with best practice in corrosion management, highlands and humid tropical coasts. four-wheel drive after two years.” dust and dirt settling onto all surfaces thus ensuring all impacts of corrosion are In some parts of Papua New Guinea and throughout the facility. According to Dr Farinha, areas of responsibly managed, the environment New Zealand equipment has to operate in equipment and structures that are Structural steel I-beams and angle-iron is protected, public safety enhanced and sulphurous steam found in active tectonic prone to rapid corrosion—but are are prone to accelerated ‘crevice corrosion’ economies improved. areas. often overlooked—are cable looms and where moisture soaks into the accumulated The massive tyres of haulage trucks are connectors. dust and begins corroding the metal that (CONTINUED ON PAGE 42) DECEMBER 2017 42 CORROSION CONTROL THE AUSTLIAN MINING REVIEW Leaders in corrosion control STEULER has become well known globally for its Industrial Corrosion Protection unit, which includes Surface Protection, Refractory Systems, and Plastics Engineering divisions. Together, they create a unique combination of innovative material developments and lining technologies. Steuler’s plant construction and environmental technology implements custom, turnkey plants across the world, with an eye to protecting the environment. With the integration of KCH (Keramchimie), acquired in 2010, Steuler has taken a further significant step in its corporate evolution. For clients of the two brands – which have traditionally been in competition – excellent new prospects have opened up. Having a joint range of corrosion protection products and services allows even greater synergies to be attained for both clients, and large scale international projects. Whether it is protective linings, rubber linings, industrial flooring, brick and tile linings, or mechanically anchored thermoplastic linings; Steuler-KCH develops complete solutions for every application. Refractory lining systems and equipment, tanks, piping made of thermoplastics and duroplastics complement and complete the portfolio. Innovative material developments Steuler’s integration of KCH has formed a complete-range corrosion control business. and lining technologies has made Steuler-KCH one of the world‘s leading The close synergy between the and experience. Steuler-KCH understands the chemical providers of industrial corrosion company’s divisions has created a unique With competence in engineering and physical demands of plants and protection. complete package of lining technology technology and experience in the field, process equipment. DECEMBER 2017 THE AUSTLIAN MINING REVIEW CORROSION CONTROL 43

(CONTINUED FROM PAGE 40)

“Mine site ground water is often three times as salty as sea water, so mobile equipment on the ground cops a real hammering.”

Cavitation damage and scouring on the inside of a 13-tonne split-casing pump. The resurfaced interior of the same pump.

Dr Farinha added that the training courses It is vitally important that coating farm—every year. With state-of-the-art technologies and and technical seminars presented by the ACA materials do not crack, warp or peel—even Coating such parts can extend the service a comprehensive range of instrumentation have generated much greater awareness of under extreme temperatures. life by several years, resulting in far less available, mine operators have access to a wide range of non-destructive testing and corrosion corrosion management techniques. The structure of most polymers used downtime. management systems that are designed to “This awareness is leading to improved for surface coatings has to be resistant to According to Dr Farinha, coatings and extend the operational life of vehicles and abrasion and chemical attack. maintenance of mine site assets as site staff linings are the most common corrosion equipment and thereby reduce maintenance understand the importance of the effective The material’s strength comes from the management techniques used on mines but time and costs. monitoring of corrosion and planning for bonding and cross-linking of the resin and there is increasing use of cathodic protection Companies supporting the mining industry maintenance work to be carried out,” he said. hardener. systems to protect embedded steel, immersed are committed to the development of new A range of premium spray-applied lining Companies providing surface coating steel and reinforced concrete infrastructure. technologies, products, and services that offer and coating products that provide maximum application often work on a diverse range of “While coatings continue to be used, the the best solutions to meet the needs of its protection against corrosion, scratches and projects. industry is also looking at the judicious use customers. dents is readily available. Asset owners usually have to replace those of more corrosion resistant materials, such as The coatings form a permanent air and parts of their machinery in regular contact duplex stainless steel and aluminium alloys, water-tight bond that inhibits rust, corrosion with abrasive material—particularly earth, in the design of plant and equipment,” he and surface abrasion. rocks and slurry at a mine or crops on a said. DECEMBER 2017 44 DRUG & ALCOHOL EDUCATION THE AUSTLIAN MINING REVIEW ONE LIFE ONE CHOICE

ELIZABETH FABRI other illicit drugs at a fraction of the price, the dangers are prolific, as there is no quality control and it is highly dangerous,” he said. THE mining industry is ‘kidding itself’ if it doesn’t think it has a substance abuse “This is now a $4.4 billion problem in THE SIDEFFECT STORY problem, according to Sideffect chief executive Australia and needs to be cleaned up.” David Hobbs. Mr Hobbs said he hoped once people heard Sideffect is a not for profit organisation born from the tragic loss of “The mining industry has the same that drugs such as Meth contained battery 16-year-old Preston Bridge in 2013 when he jumped from a balcony problems as building, construction and the acid, phosphorous, and lime – all things transport industry when it comes to the use that you’d buy at Bunnings – they would after taking a synthetic drug known as 25iNBOME at his school ball. reconsider going down that path. of illicit and synthetic substance abuse,” he The organisation was founded by Preston’s father Rodney Bridge, said. “Unlike pharmaceutical drugs, no The United Nations Office on Drugs and measurements were used during the along with former Eagles champion Chris Waterman and corporate manufacture, making the finished product Crime World Drug Report 2017 puts Australia businessman David Hobbs, with the aim to educate young people about among the largest consumers of Meth in the different in compound every time that they world and a study from the National Drug are made,” he said. the dangers of synthetic drug use. and Alcohol Research Centre showed regional “We inform people what’s in these areas account for 40 per cent of methamphet- substances, what the outcomes will be both “Sideffect is the legacy of my son who lost his life at the age of 16 by amine-related deaths; Sideffect is tackling short and long term and what they have got making one uninformed decision,” Mr Bridge said. this statistic. to remember.” “Synthetic drugs in the resources sector Sideffect conducts drug education “Let’s stop our kids from playing Russian roulette and arm them with and other Australian workplaces are on programs across Australia, which have been knowledge.” the rise, with workers increasingly seeing developed with unforgettable content that is synthetic drugs as an acceptable alliance in confronting, memorable and educational. In 2015, Mr Bridge infiltrated Chinese drug gangs exporting their careers,” Mr Hobbs said. “We leave a lasting impression that will to Australia and saw firsthand the deadly ingredients used in the hopefully be there when or if someone is “This is now a $4.4 billion offered a synthetic substance to take,” Mr production of synthetic substances. problem in Australia and Hobbs said. The dangerous stunt proved that large quantities of synthetic drugs “Mental illness, psychosis, job loss, needs to be cleaned up.” community safety, family abuse, a feeling could easily be smuggled into the country undetected by sniffer dogs. of isolation and disconnect; synthetic drugs Sideffect believes education is key to putting a stop to Australia’s have a whole bag of tricks that we need to “We are finding more and more that high start spreading the message about.” stress jobs with tight deadlines, lack of work/ synthetic drug problem, and is now ready to fill that void. life balance, and lack of support are leading In November, Sideffect undertook a people to take drugs, particularly of the course in Bunbury for apprentices at ABN amphetamine variety, in order to ‘achieve’ group, including a drug education talk, and the goals that are set for them, or that they an assessment with a group of modules and testimonials from them coming back very may set for themselves. questions related to synthetics drugs. strong, and we would like the phones to ring “It can quickly become an accepted “It’s been running for about a year, it’s for other people from mining and construction workplace culture, spreading like wildfire.” been road tested and it’s different to other to get on board and give us a hand.” While mining companies have strict anti- curriculums because there is a video that’s Sideffect is also launching an Orange drug and alcohol policies and rigorous testing very emotional that we show that’s the story Card initiative that will be rolled out across already, the issue with synthetic drugs is that of Preston Bridge,” he said. Australian workplaces to ensure employees many still go by undetected because of their “We’re ready to get involved with other have a strong understanding of synthetic chemical makeup. mining companies. drugs and the negative effects on work and More information can be found at “All of these drugs are out there to mimic “We already do work with Rio Tinto, with personal life. www.sideffect.org.au. DECEMBER 2017 THE AUSTLIAN MINING REVIEW HAUL & MINE ROAD MANAGEMENT 45 Coast-to-Coast growth THERE is a maxim that states one should think globally and act locally. Australia’s fastest growing haulroad management company, Dust-A-Side Australia has taken that tenet to the next level by thinking and acting globally, nationally and locally. Capitalising on the success that its parent company Dust-A-Side has had on the world stage since 1973 – forging a formidable reputation at more than 70 open-cut and underground mine sites on four continents – Dust-A-Side Australia’s progress since it entered the Australian market has been equally impressive. Now with a strong presence from west to east coasts, the company has used its overseas experience and its equity relationship with Colas, the world leader in the construction and maintenance of roads, to create a service offering without peer. Dust-A-Side Australia is now the only haul road management company in the country that can offer the Australian mining industry literally everything it requires.

Unique full-service turnkey solution Dust-A-Side Australia delivers site-specific solutions across a broad range of industries. Providing a holistic approach to haul road management, the company’s stabilisation and dust suppression products, running surfaces. dust-free, all-weather haul roads that full-service business model incorporates as well as plant and equipment, plus Dust-A-Side Australia’s prowess in perform noticeably better, while reducing the manufacture, supply, installation, technology. everything from road preparation and road operating costs. maintenance and management of haul road It’s single-minded, ‘one-source’ approach establishment through to road maintenance More information can be found on the performance and dust control solutions. helps Australia’s mines enjoy unmatched and road monitoring has set the benchmark Resources page at www.dustaside.com.au by This includes everything from fully economies of scale as they develop some for successful road management. downloading the company’s new Haulroad trained personnel to industry-leading road of the nation’s most productive haul road It has been proven to deliver safer, Construction eBook. The Claycrete (II) difference

More information can be found at www.claycreteaustralia.com.

MANY types of soils are high in clay materials which no longer attracts water. content and typically not considered Long after the product has biodegraded, suitable for road construction. the clay remains in its stabilised state. Clay is prone to swell and shrink based Claycrete (II) stabilises clay into an on the absence or pressure of water and almost dustless, stronger, safer surface this has people avoiding the use of clay in for all weather conditions. construction. One of the Claycrete Australia’s An unstabilised road can unravel on recent projects in the City of Mandurah the top creating a dusty, unsafe and loose (pictured), substantially reduced surface during dry conditions and sloppy, construction costs and solved a tidal unpassable surface during wet conditions. intrusion problem due to the high-water Claycrete (II), as an ionic stabiliser, level. resolves this problem by altering the The nuclear density test results show clay particles on a molecular level, an average of 101.7 per cent of maximum permanently changing the clay into an dry density (MDD) which is well above environmentally friendly binder of soil average. DECEMBER 2017 46 HAUL & MINE ROAD MANAGEMENT THE AUSTLIAN MINING REVIEW DECEMBER 2017 THE AUSTLIAN MINING REVIEW HAUL & MINE ROAD MANAGEMENT 47 Improving haul road performance

Proof Engineers civil engineer Jordan Handel with a Road Condition Monitor (left) and Dustective (right).

NEW cutting-edge innovations by the trucks. The focus for Proof Engineers is on an in a range of issues including increased Queensland-based engineering company, The Proof Road Condition Monitor (RCM) industry standard applications — easy for rolling resistance, damaged machinery and Proof Engineers, are revolutionising the is an easy and affordable truck-on-board the mining industry to use and integrate dust generation,” Mr Handel said. way haul and mine roads are constructed haul road monitoring system that provides within their existing operating conditions. “These systems are user-friendly, and maintained. a real-time snapshot on how the mine truck Proof Engineers civil engineer Jordan non-invasive, require minimal training With growing pressures on mine responds to road conditions. Handel said RCM and Dustective aid in and can be rolled out on site with minimal operators to look for ways to save costs and Dustective is a real-time mobile dust maintaining optimum road conditions on an effort.” improve performance, Proof Engineers has monitor, which accurately measures dust ongoing basis, ensuring haulage is carried More information on Proof Engineers designed systems which require minimal generation from various sources, providing out in a safe and cost-effective manner. haul and mine road monitoring solutions investment and provide a clear picture of quantifiable data to demonstrate compliance “Poorly maintained roads cost a site time can be found at: www.proofengineers.com.au where the roads are responding poorly to with strict industry air quality regulations. and money in terms of production, resulting or by calling (07) 5522 0855. DECEMBER 2017 48 INDUSTRIAL TARPAULINS THE AUSTLIAN MINING REVIEW Trusted tarpaulins specialists

DARLING Downs Tarpaulins (DDT) was established in 1982 and has been supplying the resources sector for more than 30 years. The family-owned company has a large production facility in Toowoomba, with the capacity to produce large, purpose-built tarpaulins and shadecloth products. “Our experienced staff utilise the latest machinery to produce quality products from the best fabric available,” DDT managing director Michael Ryan said. “From large, temporary floating covers to dam liners, DDT is capable of customising products to suit almost any requirements.” DDT has extensive experience in stockpile tarps as well as any heavy duty, custom made tarpaulins. “We have just finished a project in Brisbane, fabricating scour mattresses for roadworks along the river bank,” Mr Ryan said. “We have also developed an insulated, anti-concrete PVC that has been designed to handle steam, concrete curing of products such as railway sleepers and bridge pylons. “The fabric has a special plasticiser that resists the premature breakdown which is common in standard PVC.” DDT have also added an insulating foam to enhance the heating capability. More information can be found at: www.ddt.com.au. DDT has the expertise to carry out all tarpaulins jobs, big or small. DECEMBER 2017 THE AUSTLIAN MINING REVIEW INDUSTRIAL TARPAULINS 49 Flexible industrial tarps FLEXIMAKE is a leading manufacturer of products to the mining industry, with a focus on using flexible materials as an alternative to solid and, at times, costly products. The company has manufactured many products such as tank and dam liners, large liquid storage, inflatable pipe plugs, large tarpaulins, grain covers and stockpile covers for a variety of different companies in the mining space. Manufactured in the heart of Melbourne, Fleximake tarps are meticulously produced to the highest standards. The specialised industrial tarps and covers are purpose-made to suit each clients’ requirements, and use a number of different grades and materials from PVC, PE, PP and TPU materials which are 100 per cent waterproof, tear resistant and UV stabilised to suit each application. Fleximake also manufactures inflatables, liquid/tank liners, inflatable pipe plugs, and large capacity liquid bladders/frack tanks using industry standard materials to specifically fit and suit individual requirements. Working with industrial clients in Australia and around the world, Fleximake’s team has many years of experience in the industrial textile and manufacturing industry and is available to work with customers throughout the manufacturing Fleximake tarps are custom designed to meet clients’ needs. process. The company works closely with clients using state-of-the-art seam welding Fleximake strives to keep Australian and quality assurance before they are the to thoroughly iron out all specific details of techniques (both hot air and high frequency) manufacturing’s high standards alive with despatched and delivered. their requests. with much of the material sourced locally or its quality products. More information can be found at: All manufacturing is done in Australia, from Australian suppliers. All products go through rigorous testing www.fmindustrial.com.au.

THE AUST LIAN MINING REVIEW ATURS R ANUAR

Kirkland Lake Gold Kwinana Lithium and Greenbushes Mine Mining the Territory Pilbara Ports Queensland Coal in Review • Including an interview with Shane Stephan of New Hope Group Recruitment Red 5 Rio Tinto Silvergrass Roy Hill

CALL US TO BOOK YOUR PLACEMENT TODAY RAD RANIS (08) 6314 0303 0405 345 312 BOOKING DEADLINE: December 1st 2017 [email protected] DECEMBER 2017 50 METS AT THE MINE SITE THE AUSTLIAN MINING REVIEW

INDUSTRY SEGMENTS

CONSTRUCTION METS Segment size ($GVA): $8.1 billion UNDER THE Jobs: 44000 PROFESSIONAL AND MICROSCOPE TECHNICAL SERVICES Segment size ($GVA): $8.0 billion Jobs: 68000

TECHNICAL EQUIPMENT Australia’s resources industry is world-renowned for MANUFACTURING its size, scope and competitiveness. METS Ignited – an Segment size ($GVA): industry-led Growth Centre supported by the Australian $6.9 billion Government – recently completed research into the Jobs: 58000 significant contribution made by the mining equipment, technology and services sector. Image: METS Ignited. CONTRACT MINING (INCLUDING CAMERON DRUMMOND economy in 2014-15. in 2014-15, it also reflects the largest While the sector peaked at $128 billion volatility in the sector. EXPLORATION) GVA at the top of the construction boom, it The construction segment GVA peaked Segment size ($GVA): AUSTRALIA has seen an unprecedented has continued to grow, almost doubling in at $17.1 billion in 2011-12. increase in mining capacity over the last size from the estimated $44 billion GVA in There has been enormous growth in $5.5 billion decade. 2005-06. the professional and technical services Jobs: 36000 On the back of the construction boom, Today, the METS sector supports over segment. This sector is 2.6 times larger production has doubled for thermal and half a million local jobs, and the industry than in 2005-06, with jobs growth from metallurgical coal, bauxite, and alumina, continues to build with a sustained average 25,000 to 68,000. TRANSPORT and tripled for iron ore. growth of close to seven per cent (Trading All of the growth development segments The nation has also assumed the mantle of Economics, 2017), far outstripping the are leveraging innovation, leading-edge SERVICES leading lithium producer, and has seen a 30 average growth of the Australian economy. technologies and are global exporters. Segment size ($GVA): per cent increase in aluminium production. The Australian METS Sector report This group also has enormous export In the background, Australia’s METS provides a clear, industry-led distinction potential and growth opportunities. While $4.4 billion industry has not only kept pace – it has about the nature and types of companies they benefited from the feasibility, design thrived. that are considered within the METS and construction boom, these sectors Jobs: 28000 industry. The sector is driving new approaches delivered a net 94,000 new jobs between to help deliver enormous productivity The report represents a significant 2005-06 and 2011-12. improvements across all commodities. In the leap in formalising the sector to tailor Construction-related jobs, on the other BASIC EQUIPMENT process it is establishing a global reputation policies and actions towards a defined and extreme, have more than halved since for innovation. quantifiable group of companies. the peak of 2011-12, reaching 93,000. MANUFACTURING In a landmark report, The Australian Construction over the same 2005-06 to Segment size ($GVA): METS Sector – its Economic Contribution METS industry segments insights 2011-12 has nevertheless delivered 15,000 and Demographics, METS Ignited has taken extra jobs growing from 28,000 to 44,000. $3.6 billion the first steps to quantify – year-on-year – The ‘specialised METS sector’ represents Of importance to the Australian Jobs: 31000 the size, scope, and demographics of this $43.3 billion of the $86 billion and the economy are exports emerging from the highly innovative sector of the economy. balance $42.9 billion is represented by the basic equipment manufacturing segment. The findings offer a deep insight into one non-specialised services required by the Large amounts of non-ferrous metal WHOLESALE TRADE of Australia’s most advanced and complex industry. manufacturing are assisting the segment industries. The figures are an important reminder to account for approximately 19 per cent of Segment size ($GVA): all METS industry exports. that while the mining operations are $3.6 billion METS at a glance a powerful driver of economic wealth, Basic equipment manufacturing is the flow-on effects are far more than tax closely followed by the transport industry Jobs: 23000 revenue and commodity exports. Mining segment. Rail and road transport The report defined the Australian METS has the power to spark an entire industry, products and services assist the segment sector as consisting of the supply of goods and giving opportunity to METS companies to in contributing 14 per cent of the METS services to the mining extraction industry: continue to develop innovative solutions industry’s exports. ICT SERVICES that not only support local industry but The findings in the report are critical to Segment size ($GVA): • from both direct and indirect suppliers in fact become significant growth export understanding and continuing support in $1.6 billion • both specialised and non-specialised opportunities. the METS sector. Through the provision goods and services The Australian METS Sector report of better quality and regular information, Jobs: 8000 METS Ignited is able to establish an • to both Australian mining extraction identifies that there are nine industry segments, which encompass at least 40 accurate portrayal of the industry, helping and exports to foreign mining extraction quantify the impact of growth measures industries. subindustries that provide specialised goods and services to the mining industry and providing evidence where necessary OTHER SERVICES The definition excluded supply to the oil – each one vital to major projects. when growth is not as strong as predicted. Segment size ($GVA): and gas industry and supply to minerals The list of subindustries is diverse, In addition, through identifying industry processing, except where basic processing covering everything from water supply segments and subsectors, it is possible to $1.5 billion occurs at the mine site. to construction services, equipment hire develop approaches to align various and The overall Australian METS sector and training, and software development. radically different stakeholders to garner Jobs: 18000 generated $86.2 billion gross value add While construction represented the largest different perspectives on innovation and (GVA) – or five per cent – to the Australian contributor on a $GVA basis at $8.1 billion collaboration. DECEMBER 2017 THE AUSTLIAN MINING REVIEW METS AT THE MINE SITE 51 Technology that works

DEVELOPED by Schenck Process, the failures would occur. global experts in vibrating equipment, “Newmont Boddington Gold (NBG) ® CONiQ is the condition monitoring has installed Schenck Process CONiQ® solution specifically designed for vibrating vibration monitoring to 15 of our Schenck machines and is based on the latest sensor Process banana screens models SLO3680W technology and analytical software. and SLO3673D,” Newmont Boddington Effective condition monitoring makes mechanical engineer Steve Barnett said. it possible to detect potential future faults long before they happen and allows the site The first unit was commissioned into to undertake maintenance interventions operation in early 2016 and is still in at precisely the right moment. service. Schenck Process Australia, with the “The CONiQ® hardware is robust, which assistance of its dedicated personnel and performs in the harsh mining duty and customer collaborations, is successfully high cycle fatigue application,” Mr Barnett replacing former technology with the said. CONiQ®. “In particular, the design layout of the Customer site trials have been the key cables and conduit performs exceptionally ® to the CONiQ success story, allowing it to well compared to previous designs. collect valuable data first hand and make real-time modifications. “The system has detected various faults including exciter bearing defects, Schenck Process Australia’s very first intermediate shaft coupling damage, worn site trial began on the 10 April 2015 for a major iron ore mine site in the WA Pilbara. drive belts and incorrectly sized pulleys. The CONiQ® was installed on a product “Information is monitored using a screen and feeder and crusher feeder. Profibus interface to plant control system, The support Schenck Process received which Newmont engineers use to assist from its customer for the new unconfirmed Schenck vibrating machine monitors have been installed at world-class mine sites around Australia. with preventative maintenance tasks and monitoring product was immense. to avoid unplanned outages.” CONiQ® was also installed at Newmont’s failures. Through knowledge gained, CONiQ® Testimonials from customers allows underwent further software upgrades at Boddington gold project, and is performing Within a short period of installation, Schenck Process to fulfil its global the trial site. well. CONiQ® picked up many speed anomalies corporate value of “inspiring its customers” ® CONiQ® is now installed and running On both sites the CONiQ has detected with two EPS faults and one exciter failure. by doing all it can to optimise processes, without any known issues on 26 machines many early exciter failures, allowing Normally these issues would go results, support where customers need it consisting of 8 product screens, 8 product enough time to plan for replacement undetected without intelligent condition most, and assume responsibility for their feeders, 6 scalpers and 4 crusher feeders. and avoiding the urgency of unplanned monitoring systems and unplanned entire life cycle of products. DECEMBER 2017 52 METS AT THE MINE SITE THE AUSTLIAN MINING REVIEW Innovative software solutions MICROMINE is a leading provider control solution that records, manages and of innovative software solutions that processes mine site data in real-time. span the breadth of the mining cycle As a scalable solution, it is suitable for from geological exploration and data underground and surface mine construction, management, to resource estimation, 3D development and production. mine design, planning and production Pitram records data related to equipment, control. personnel and materials, providing an overall Founded more than 30 years ago, MICROMINE solutions are used at view of the current mine status and therefore more than 2000 sites in more than 90 enabling improved control over operations. countries. Greater control allows sites to increase Renowned for its ease of use yet production, reduce costs, and improve safety powerful capabilities, MICROMINE’s and business intelligence. software can maximise customer asset value, increase productivity and be Recent activities utilised for decisions on which they know they can rely. Recently, MICROMINE successfully All products are available in implemented its leading underground fleet numerous languages and supported by management and mine control solution, local experts. Pitram, at Dugald River, in north-west QLD. MICROMINE offers three market leading products to assist mining MMG’s Dugald River mine has one of the companies increase production and world’s highest-grade known zinc deposits, performance, improve efficiencies and supporting a 1.7mtpa operation with annual reduce costs. production of around 170,000 tonnes of zinc concentrate per annum. Micromine The successful implementation of Pitram enables the control room administrators to Micromine is a comprehensive and easy capture live data ensuring data accuracy, to use exploration and mine design MICROMINE software solutions assist mining companies increase overall efficiency. increasing efficiencies and control over solution, which offers integrated tools equipment, tasks and personnel. for modelling, estimation, design, and easy-to-use modelling, estimation, organisation’s most valuable asset – data. “We are very excited to have implemented optimisation and scheduling. and design tools to simplify their The scalable software solution delivers Pitram at Dugald River,” MICROMINE It provides users with an in-depth day-to-day design and production tasks. market leading geological data management understanding of their projects, so capabilities across a range of environments. Pitram Product Strategy manager Gareth prospective regions can be targeted more Geobank Dean said. accurately, increasing the chance of a Pitram “Pitram will provide MMG with an overall project’s success. Geobank is a secure and flexible data view of the current mine status, therefore Miners are provided with interactive management system to protect an Pitram is a fleet management and mine enabling more control over the operation.” DECEMBER 2017 THE AUSTLIAN MINING REVIEW RENEWABLE ENERGY 53 POWERING THE MINES OF TOMORROW

Mining companies are increasingly turning to renewable energy as a solution to escalating power costs across their operations.

The Lakeland Solar and Storage Project in far North Queensland. Image: Conergy.

ELIZABETH FABRI “Microgrids are a means of getting the “Combining solar PV with battery storage, mine sites most out of all manner of distributed energy resources, and when integrated properly, THE rise of renewable energy in mining was can access secure, reliable power at a fraction of the unlock the potential for technological a key theme of the 2017 International Mining cost of diesel generation.” advances, cost-saving measures, and more and Resources Conference (IMARC) held in renewable and environmentally-friendly Melbourne early November. energy options in the network,” Mr Tudor The Future Energy-Australia portion of the said. conference included discussions on financing renewable energy projects for mines, solar and storage as an increasingly affordable and PROJECT IN FOCUS viable energy solutions, reshaping solar to meet the mining sector’s needs, and off grid Lakeland Solar and Storage and micro grid infrastructure opportunities. Australian Solar Council chief executive John Grimes, who presented at the Australia’s renewable energy industry is conference, said solar photovoltaics were now growing at a rapid pace, yet there are still the cheapest way to generate electricity, with knowledge gaps when it comes to large-scale prices globally as low as $22 per megawatt solar PV and battery storage servicing hour. fringe-of-grid regions. “In an Australian setting, around $50 per Conergy’s $42.5 million Lakeland Solar megawatt hour is more realistic,” Mr Grimes and Storage project in far North Queensland said. is currently testing a number of battery “Electricity generated by diesel generators operation modes and will share lessons learnt is well above $300 per megawatt hour, (with Image: Sandfire Resources. with industry partners. some as high as $600 per megawatt hour). While not located on a mine site, the project is the first Australian utility-scale solar and “Combining solar PV with battery storage, Its WA DeGrussa mine is home to a $40 industry to keep track of the disruptions storage facility built on the outskirts of the mine sites can access secure, reliable power million solar project comprising 34,080 occurring in the energy market and to manage at a fraction of the cost of diesel generation.” solar PV panels spanning more than 20 the policy uncertainty,” Mr Tudor said. electricity grid; an area typically prone to energy reliability challenges. Mr Grimes said mine sites in Australia and hectares. “The mining industry wants reliable, around the world, were typically combining The panels are connected to a 6MW affordable and sustainable energy to power It comprises a 13 megawatt (MW), solar PV, battery storage with existing diesel lithium-ion battery storage facility and their operations, and the declining cost of 41,440 panel solar array; 1.4MW lithium-ion generators. the existing 19MW diesel-fired power renewables has been seen as the key to battery storage capable of delivering up “Solar is also being used across station at DeGrussa via an extensive managing this conundrum. to 5.3 megawatt-hours (MWh) of energy; accommodation, portable lighting, remote network of low-voltage, high-voltage and “Yet retail prices keep going up, as our and a smart system controller to facilitate monitoring sites and elsewhere as a cheaper communication cables. regulatory and policy frameworks are consistent power supply for the Lakeland alternative to installing transmission lines,” The solar project supplies about 20 per struggling to keep pace with the innovations community. he said. cent of the annual power requirements of in technology. Conergy’s Knowledge Sharing Program “Another big opportunity for Australian the DeGrussa mine and cut its emissions “We forecast distributed energy resources (KSP) will share potential learnings mining is the global boom in lithium-ion by about 12,000 tonnes of carbon dioxide a will become the main source of energy in with project stakeholders, the Australian batteries. year. the future, so the need for flexibility and Renewable Energy Agency (ARENA), mining “With 33 per cent of global reserves of Horizon Power managing director innovation is critical at this point in time.” giant BHP, Ergon Energy and Origin Energy lithium located in Australia we may soon see Frank Tudor, who also spoke at Future Mr Tudor said micro grids were who will be buying power from the plant. lithium exported from Australia turned into Energy-Australia, said the uptake of new self-sufficient electricity networks that could Conergy managing director Christopher batteries that in turn power the mine sites of technologies was putting commercial and be embedded in, or be remote from, a larger West said the company was “very pleased” the future.” industrial consumers at the centre of the network. that BHP was taking an active part in the Sandfire Resources, for example, was electricity market, but adding a level of These grids enable distributed energy Lakeland Solar and Storage KSP to further one of the first movers in Australia to use complexity which was hard to manage for resources, like solar panels and batteries investigate the use of reliable renewable renewable energy in an off-grid mining industrial customers. that are located away from a central power energy technologies as part of their operations application. “It’s hard for the mining and resources station, to feed into the network. in remote and off-grid mine sites. DECEMBER 2017 54 RENEWABLE ENERGY THE AUSTLIAN MINING REVIEW DECEMBER 2017 THE AUSTLIAN MINING REVIEW RENEWABLE ENERGY 55 Thriving on solar innovation FOR more than 18 years, Outback Energy Supply has provided solar solutions to the mining and associated industries. The company’s vision has been to supply and deploy innovative renewable energy powered solutions to reduce cost noise and pollution for its diverse client base. Outback Energy Supply provides solar-powered pumps up to 45kW, and solar generated power for communications infrastructure, mining camps, lighting and a range of remote area, off-grid renewable solutions. From 120kW grid connect systems at Kalgoorlie Airport, to one or two panel communications or flow metering jobs, Outback Energy Supply has reduced diesel costs and greenhouse gases for clients across WA and beyond. Outback Energy Supply’s team takes immense satisfaction when they shut down or drastically reduce another diesel genset’s operating hours, or negate the need for costly power line infrastructure. Solar is well proven to reduce the cost of diesel generation in terms of fuel and man hours spent on diesel maintenance and servicing, and with modern communications, the assets are able to be remotely monitored for efficiency and maintenance. Outback Energy Supply’s rapidly deployable containerised arrays and systems use lithium battery technology to keep the system size down and are available for capital purchase or leasing. The cost of solar cells has rapidly decreased in the last 10 years. DECEMBER 2017 56 RISK MANAGEMENT THE AUSTLIAN MINING REVIEW Mining’s emergency response specialists THE Corporate Protection Australia Group (CPA Group) is one of the largest private safety and emergency response companies in the southern hemisphere. Its key individuals and associates have a sound history of successfully negotiating rigorous, high-profile environments and situations. CPA Group offers a wide range of services; encompassing security, health and medical, fire rescue, consultation and training. It services major clients in the mining, oil and gas, energy, critical infrastructure, construction, and maritime industries – on time, and on budget. The company’s operational model places safety at the forefront of all activities, with a strong safety culture that starts from the top. CPA Group executive chairman Harley Sparke is dedicated to safety, and ensures this passion governs every undertaking, no Results, efficiency, and loyalty are what drive The Corporate Protection Australia Group. matter how small; a commitment that goes hand in hand with its exemplary safety highly efficient, cost-effective solutions, security guards can provide first aid and achieving high-quality solutions at the right record. with cross-trained professionals that cover form part of the emergency response team. price point. Through ongoing, proactive mitigation all appropriate combinations of security, The chief point of difference is This model originates from an analysis of and management, CPA Group works medical, and emergency service skillsets. that, as well as offering a unique and best practices that have been developed by alongside its clients to tailor services to CPA Group paramedics and nurses are all-encompassing suite of services, CPA the company over years of working in some specific requirements. trained in emergency rescue; emergency Group allows its clients to select packages of of the harshest, most remote environments The organisation is well-placed to provide services officers are trained medics; and services tailored to their specific needs, thus all over the world. DECEMBER 2017 THE AUSTLIAN MINING REVIEW SWEEPING & SCRUBBING 57

Dust and debris control facilitator TENNANT Company is a world-leading mine site or workshop, large or small, the manufacturer of award-winning 5700 Walk-Behind Scrubber delivers up indoor and outdoor industrial cleaning to 136kg of down pressure. equipment chosen by blue chip mining It is robust, reliable and uses up to 70 organisations to maintain efficient, safe per cent less water thanks to Tennant’s and healthy assets and workplaces. innovative ec-H2O™ technology. Challenging environments like mine Tennant T16 and T12 models are used sites, wharfs and heavy vehicle workshops in an array of applications including demand robust, heavy duty cleaning medium sized warehouses and large solutions. light vehicle and utility workshops where With its extensive line-up of mining/ ride-on machines are a must to get the job heavy industry machinery, Tennant done quickly and often. delivers on economic productivity and Sweeping/scrubbing WH&S efficiencies. As ever-more stringent protocols Where large quantities of wet debris, dirt are implemented that are designed and oils need to be cleaned up rapidly to keep workforces safe and minimise and completely, Tennant’s line-up of environmental impact – all while Sweeper-Scrubbers are infinitely up to the maximising profit – demand has never task. been higher for equipment that ticks The M20 cleans up to three times longer all these boxes and manages to exceed than conventional scrubbing by using less expectations. water and single-pass efficiency. Tennant has extensive industrial scrubbing and sweeping products to suit any application. The 8300 Battery Powered Ride-On Dust control and sweeping Sweeper-Scrubber for larger hub warehouses It maximises cleaning productivity combined with high efficiency, single-pass offers a super clean in one action and with its wide cleaning path, large capacity sweeping and multiple-stage dust control “Our mining industry customers deploy fume-free operation with continuous battery hopper and operator-friendly features. systems, each model offers its own specific Tennant’s Sentinel® High-Performance power capacity of up to 1000 amp hours. Rider Sweeper for their wharf operations,” Capable of capturing cement dust additional attributes. Tennant national sales manager Adam to heavy debris, its heavy-duty steel Heavily supplied into mining workshops TennantTrue® Direct-To-You Service Esho said. construction and high-performance dust is the S10 Walk-Behind Sweeper which & Maintenance “The extreme levels of dust and other containment make it ideal for harsh capably does round- the-clock battle with pollutants are simply no match for the environments. copious work bay dust. Tennant’s onsite service and maintenance Sentinel® which is valued for its four-wheel For smaller-scale applications, program, TennantTrue® is the gold standard power steering, tight turning circle and Tennant offers a line of Compact Ride-On Scrubbing in the industry. manoeuvrability to access between stock Sweepers including the 6100, 6200 and Company-trained field technicians carry piles, without impeding traffic.” S20, variously used by mining enterprises Industrial scrubbers don’t come tougher all parts on board and are fully versed in The Tennant 800 Industrial Ride-On of all sizes as well as partnered logistics or more versatile than Tennant’s range of the operation, repair and maintenance of all Sweeper is another popular unit used by firms. Walk-Behind Scrubbers. Tennant equipment, guaranteeing minimal customers in the mining industry. Designed for optimal manoeuvrability Considered an essential in any efficient downtime. DECEMBER 2017 58 SYNTHETIC ROPE THE AUSTLIAN MINING REVIEW A comprehensive range

More information can be found at: www.waropes.com.au.

ESTABLISHED in 1995 in Perth, WA Ropes VB cord, abseiling rope, shock cord, cotton to order, while non-standard sizes of cyclone on request. & Hardware is one of the country’s largest polypropylene and jute twines and tarred nets can be made to order. Good quality, competitively priced and most diverse suppliers of ropes, cords, marline. Wherever possible the company aims to products combined with old fashioned service and a comprehensive local stock holding twines. Seven years ago, WA Ropes & Hardware supply Australian-made products. has made WA Ropes & Hardware one of the The rope and cordage importer and also branched into cyclone net, rope nets and It also wholesales to most industries leading wholesalers of ropes, cords, twines distributor’s product range encompasses rope ladders. including industrial, mining, and hardware, and nets in Australia. polypropylene rope, sisal and manila The company stocks cyclone nets with canvas, marine and manufacturing. The team prides themselves on superior rope, silver rope, PE mono rope, dyneema, rope borders and tie downs in a range of Splicing services are also available and service and finding solutions to those hard cotton rope, double braid, lead core line, sizes, with rope nets and rope ladders made non-standard lengths and sizes are available problems. DECEMBER 2017 THE AUSTLIAN MINING REVIEW TECHNICAL WRITING 59

DRAWING ON ‘DUTY OF CARE’

WHEN considering the inherent importantly, how it should be on a ‘one-to-one’ basis through procedures, safe handling of dangers associated with the effectively maintained and safely structured training that is required chemicals, explosives and fire mining, petrochemical and operated. as part of their job description. prevention. processing industries, businesses The team go to great lengths to These user-friendly, self-paced, could benefit from enlisting the devise and product a wide range e-learning packages progress A ‘WIN FOR ALL’ help of experienced technical of manuals, safety, emergency the trainee through a series illustrators and writers to produce and hazardous information of modules followed by Technical Illustrators Group, simple explanatory graphics instructions that can be easily competency-based testing for provides a ‘win-win’ situation for evaluating competency and and hard copy and electronic understood and absorbed at all companies, workers and the understanding. operating, safety, training and levels of industry. community. Utilising this technology, clients maintenance documentation. With a military aviation family Clients know that by utilising the Producing all manner of technical history and tertiary Mechanical can readily ascertain how staff expertise provided by Technical documentation and safety Engineering qualifications, members are progressing Illustrators Group they will be material since 1972, Technical Technical Illustrators managing through the course and identify meeting, and possibly exceeding Illustrators Group has secured director Barrie Douglas knows areas that may need further the legislative requirements in documentation industry the importance of doing it right attention. relation to ‘Duty of Care’ for their leadership in Australia. the first time. Some of the courses that personnel. “We have a deliberate policy Technical Illustrators have Additionally, personnel at all OPERATIONAL KNOW-HOW of being proactive, continually produced include modules levels can expect a thorough and suggesting to our clients ways to on complex plant operation, extensive understanding of the With clients throughout upgrade their safety standards, cardio-pulmonary resuscitation Australasia and globally, including improve training and production and general first aid, danger hazards posed in their workplace New Zealand, Papua New Guinea, methods to enhance overall tagging in isolation work as a result of the training provided. Canada, the USA, Saudi Arabia safety and productivity,” Mr and Asia, Technical Illustrators Douglas said. Group has been at the forefront in the design and implementation CREATING A SKILLED of technical documentation long WORKFORCE before ‘Duty of Care’ became a 90s buzzword and a legislative Another component of this requirement. diverse group is the training Technical Illustrators produce services provided to clients’ simplified documentation to staff. Interactive multi-media Suite 8, 316 Onslow Road, Shenton Park, Western Australia 6008 graphically explain how the computer training programs Barrie Douglas [email protected] | 0419 916 522 | www.ti.com.au equipment works and most are designed to guide operators DECEMBER 2017 60 TRANSPORT & LOGISTICS THE AUSTLIAN MINING REVIEW Professional team, professional outcomes

SERVICING the entire State of WA and beyond, HTE Transport (HTE) can deliver anything, anywhere, anytime. Over the years, HTE has moved everything from haulpacs through to houses and grain. With a fleet of 17 prime movers and more than 50 specialised trailers to suit any load, HTE has a solution for all plant mobilisation, bulk and heavy haulage needs. While just about anyone can move something from here to there, HTE has invested heavily in highly experienced, professional employees with safety processes and fleet to ensure that when it commits to a delivery, it is completed safely and professionally every time. The fleet is both modern, and highly maintained, which offers clients the assurance of a dependable service. Safety is a number one priority. The company has an organisation-wide commitment to safe working practices. Its commitment to safety and in particular maintenance and fatigue management has earned the logistics service the highly regarded Main Roads WA Heavy Vehicle Accreditation. For GPS tracking, HTE has invested significantly in a state-of-the-art Logistics Management System. This system accurately tracks the status of client assets in real time. In house heavy duty diesel mechanics carefully inspect every vehicle by running HTE Transport provides quality haulage services to the mining sector. through a comprehensive safety check, including reviewing data provided by the package when it comes to transport needs. job and guarantees to meet deadlines and equipment. Logistics Management System. A family run business that is locally take extra care with cargo, whether it be a HTE Transport – Here, There, HTE Transport offers the complete owned and operated; it takes pride in every pallet of cement or a mission critical mining Everywhere – delivering on time, every time. DECEMBER 2017 THE AUSTLIAN MINING REVIEW XRF & XRD TESTING 61 DECEMBER 2017 62 XRF & XRD TESTING THE AUSTLIAN MINING REVIEW Time critical cross Australia freight

Bohaul Express has proudly serviced WA freight needs for more than 30 years.

BOHAUL Express specialises in the transport of goods from Melbourne to Perth. It is the objective of Bohaul Express to provide its clients the highest standard of service at all times, on time. This can only be achieved through the total commitment of management, employees and contractors to quality, efficiency and safe work practices. Bohaul Express was the idea of managing director Neil Beauglehall in 1972. His vision was to offer a two-day door to door express service from Melbourne, to the express service companies on the long road Bohaul team. This is supported with open communication isolated, but fast growing city of Perth; a capital haul. Bohaul Express is a full road express service that required freight urgently from the eastern and ongoing training. states and back. Bohaul’s linehaul trucks are equipped with with no rail component whatsoever. Bohaul Express staff, in all departments, Mr Beauglehall’s idea gained support airbag suspension, ensuring the smoothest The company ensures its continued are always contactable and happy to ensure immediately and Bohaul Express went from possible transfer of goods from state to state. improvement by having all staff members any freight transactions will suit clients’ needs. strength to strength, and is now one of the It can service a wide range of freight, all of taking an active part in the growth of the More information can be found at: leading independently-owned and operated which is carefully loaded by the experienced business. www.bohaulexpress.com.au. DECEMBER 2017 THE AUSTLIAN MINING REVIEW XRF & XRD TESTING 63 DECEMBER 2017 64 THE INTERVIEW THE AUSTLIAN MINING REVIEW Peter Wright Bass Metals executive director

ASX-listed junior Bass Metals is in the final stages of completing stage 1 optimisation work at its flagship Graphmada mine in Madagascar that will boost graphite production to 6000 tonnes per annum. On the back of this recent success, Bass Metals executive director Peter Wright spoke with Cameron Drummond about the company’s next step – fast-tracking development of its Millie’s Reward lithium project.

Q. What is your role at Bass Metals?

I am an executive director with a focus on corporate affairs, covering capital markets, investor engagement, corporate strategy and deal structuring. The last two years has seen us fund our project solely from equity markets, which while more arduous than negotiating a debt piece, has fortuitously left us with zero debt and a near competed 100 per cent owned asset. The corporate strategy from the outset has been to establish ourselves as a mid-cap producer of industrial mineral concentrates, via a pathway of least capital intensity.

Q. How is the company’s flagship Graphmada project tracking?

Graphmada is coming along well. Bass Metals chief executive Tim McManus and the team have done an outstanding job over the past two years to conceive and execute our strategy on budget. In parallel we have a highly prospective portfolio of exploration assets we are progressing. We as a team are excited as to what lies ahead for our valued shareholders over the next few years. We are on track to establish stage 1 production of 6000 tonnes per annum (tpa) of high value graphite concentrates, “With lithium in before stage 2 (20,000tpa in 2019 we think), in parallel with growing our particular, I find resource inventory. it hard to see that market being Q. What are the future plans for the Millie’s Reward lithium play, and what balanced over the needs to fall into place to accelerate the next seven to project? eight years.” We are looking to establish a lithium resource at Millie’s reward. Clearly [with any] pre drilling [project], we have limited enduring buoyancy in lithium prices in At the highest level, is it plausible that inheriting some significant operational understanding on what lies beneath, particular. the company itself or a larger company experience directly applicable to the ore however at surface I think it’s hard to Countries are legislating against could develop the project in question to a body. find a more compelling surface signature profitable mine? than what we have encountered to date at internal combustion engines, [and] major We were firmly of the view we were Millie’s. global automotive companies are stating As an additional tool is the project buying the asset at the bottom of the they are moving to predominantly lithium reasonably robust over cycle, as we all cycle; this was a key factor. We plan to be drilling next year post know commodity markets are inherently a comprehensive field program now being ion battery service offerings over the next five to 10 years. volatile? undertaken. What is the best piece of career I’ve always taken the 10 year price low Q. I struggle to see where the supply advice you have been given? comes from to balance this demand. for the underlying commodity, and applied Q. What role will strategic materials this to the financial model and if this is have in emerging markets? This subsequently affects graphite still generating a reasonable provisional That’s hard to answer. It’s not so much markets which is the key component net present value (NPV) you have a basis an issue of direct advice received, but Notwithstanding some of the enthusiasm of the anode material in the battery. In for proceeding. I have been lucky enough to work in particular, smaller micron flake market that at times has been misplaced for both We selected Graphmada as it gave us a close proximity to several people in the segments within the graphite complex commodities, the underlying thematic is chance, after some hard work, to establish resources sector over my career. are going to enjoy a material change in highly valid. profitable cash flows. These people have provided a great demand. With lithium in particular, I find it We identified the value in existing example of how to approach things, hard to see that market being balanced infrastructure, the established logistics namely Stephen Bizzell (Bizzell Capital over the next seven to eight years. Q. What factors must mining juniors and customer base, the potential to add to Partners) and James Brown and Paul From my perspective there will be an assess when developing these projects? the resource inventory, and that we were Mantell at Altura Mining. Vermeer Directional Drills, Trucks & Trailers, General Equipment Unreserved Auction

Under instructions from All Australian Directional Drilling. Surplus to Requirements Online Auction 23 - 29 November 2017

Assets include:

Directional Drills

• 2009 Vermeer D80X100 Series 2 Directional Drill (2,181 hrs) • 2012 Vermeer D36X50 Series 2 Navigator Directional Drill (2,617 hrs) • 2015 Vermeer D36X50 Series 2 Navigator Directional Drill (348 hrs)

Trucks & Vehicles Trailers

• 2003 Mitsubishi FN 600 6x4 Vacuum Truck • 2017 Midland Quad Float Plant Trailer • 2008 Volvo FM 340 Twin Steer Vacuum Truck • 2016 Tandem Axle Pipe Trailer • 2001 Volvo FM 12 6x4 Water Truck • 2011 Tandem Axle Pipe Trailer • 2000 Hino FB4J 4x2 Side Tipper Truck • 2010 Single Axle Box Trailer • 2015 Holden Colorado RG 4WD Dual Cab Ute

Plant & Equipment, Workshop Tools • Forklift, mixing pump, rods, pipes, reamers, rammers, various workshop tools

View assets for sale at http://www.graysonline.com/sale/3014135 or contact

Mark Respondek 0439 383 095 | [email protected]