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M R A product of PP100007123 ININAG EVIEW Incorporating THE USTLIAN Publications & E  R Exhibitions Australia Pty Ltd ISSUE 113, June 2017 OIL – GAS – ELECTRICITY – RENEWABLES

News: Technology & Innovation P10 Mining in south Australia P24 Recruitment P75

Image: Bruce Peebles. © State of Queensland 2017.

ADANI: Pushing for development

When Adani spectacularly deferred it’s highly anticipated final investment decision announcement – just days before it was due – the future of its $16.5 billion Carmichael project was cast into doubt. The story continues to evolve, but if the kinks associated with State royalty agreements and Federal NAIF loans can be ironed out, then this mega-project could be an economic windfall for the North Queensland region for decades to come.

FEATURE: p20 June 2017 2 CONTENTS THE AUSTLIAN MINING REVIEW

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GENERAL MANAGER Brad Francis MANAGING EDITOR Reuben Adams Commodity Focus: Diamonds JOURNALISTS Cameron Drummond, Elizabeth Fabri GRAPHIC DESIGNER featurenews pp1918 Charlotte Lufino SALES EXECUTIVES NEWS 1 Beej Francis, John Carter, Chris Foley, Kelly Thompson Technology & Innovation 10 PRINTER Rural Press International 14 CONTACT US P: (08) 6314 0300 Commodity Focus: Diamonds 18 F: (08) 9481 7322 160 Beaufort Street, Perth, WA 6000. PO Box 8023, Perth BC, WA 6849. Special Profiles E-mail the editor at [email protected] Adani: Carmichael 20 For all other emails to staff, the standard convention is, first name (only) @miningoilgas. com.au Mining in South Australia 24 The Australian Mining Review is a free publication to all mine sites and mining companies in AIMEX 2017 30 Australia. Its value is $11 an issue. (Includes GST, postage and handling). The copyright is vested in the Proprietors of The Pilbara Ports Authority 37 Australian Mining Review; neither whole nor any part of this issue may be reproduced without permission. Whitehaven Coal 41 The views expressed in this publication are not Whitehaven Coal necessarily those of Miningoilgas Pty Ltd and its Kwinana Lithium Plant & Greenbushes Mine 45 staff, but are those of the respective author who accepts sole responsibility and liability for them.

Iluka 48 NOTICE TO ADVERTISERS: p The Trade Practices Act, 1974 came into force feature 41 on the 1st October 1974. All advertisers and Centennial Coal 51 advertising agents are directed to carefully study the provisions of the Act, which contain strict regulations on advertising. Aurizon 53 It can be an offence for anyone to engage, in trade or commerce, in conduct deemed “misleading or Rio Tinto: Amrun 56 deceptive”. Specifically s53 of the Act contains prohibitions from doing any of the following in connection with the promotion, by any means, of CuDeco 58 the supply or use of goods or services: (a) falsely represent that goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history INDUSTRY PROFILES or particular previous use; (b) falsely represent that goods are new; (c) represent that goods or services have sponsorship, approval, performance Companies Gearing Up 60 characteristics, accessories, uses or benefits they do not have; (d) represent that the corporation has a Aerial Surveyors 64 sponsorship, approval or affiliation it does not have; (e) make a false or misleading representation with respect to the price of goods or services; (f) make Magnets & Magnet Technology 67 a false or misleading representation concerning the need for any goods or services; or (g) make a false or misleading representation concerning Motor Body Building 68 the existence, exclusion or effect of any condition, warranty, guarantee, right or remedy.

Payload Monitoring 69 PENALTIES: For an individual — $10,000 or six months imprisonment Pipes & Pipelines 71 For a corporation — $50,000. It is not possible Dr Craig Stegman for this company to ensure that advertisements Rio Tinto Copper & Diamonds published in this newspaper comply with the Act Process Plant Refurbishment 72 and the responsibility must, therefore, be on the Operational & Technical Support vice President person, company or advertising agency submitting Railway Construction 73 the advertising for publication. In case of doubt, consult your lawyer. Recruitment 75 the interview p78

June issue out now A product of Publications & Exhibitions Australia Pty Ltd JUNE 2017 4 NEWS THE AUSTLIAN MINING REVIEW A major rebrand for BHP

“We fundamentally believe that as society changes it is up to us to make the case – more confidently and effectively – for the positive role that well-run and responsible companies play in society.” FMG chief executive Nev Power. Australian miners win big at Platts awards

Elizabeth Fabri BHP chief executive Andrew Mackenzie has outlined a plan to grow company value by 50 per cent. BHP chief external affairs officer Geoff Elizabeth Fabri Mining and Steel Conference, BHP chief FORTESCUE Metals Group (FMG), Healy said the campaign focused on executive Andrew Mackenzie announced Roy Hill, and MMG were awarded what people can and should expect of the the company’s plan to grow its value by up top honours at the 2017 Platts Global AUSTRALIA’S largest resources company company moving forward. to 50 per cent and almost double the return Metals Awards in May. BHP has undergone a rebrand as part of “In launching Think Big, we will take on capital through a new strategy focusing In its fifth year, the awards its biggest marketing campaign in more the opportunity to change our logo and on cost reduction; major growth projects ceremony in London aimed to than three decades, dropping ‘Billiton’ move to a brand that Australians have including Spence Growth, Olympic Dam recognise the “best of the best” in from its name and adopting a new logo and known us by for generations – BHP,” Mr and Jansen potash; and advances in the the metals industry, with 15 awards slogan — ‘Think Big’. Healy said. productivity of its shale assets. winners chosen by an independent BHP took on the double barrel name in “This abbreviated simple expression “Our roadmap today contains an panel of judges. 2001 when it merged with Anglo-Dutch of our organisation is used colloquially enhanced set of opportunities that will Announced Metals Company of the company Billiton Plc, but decided it was around the world.” see us prosper and grow value per share Year for the second time since 2014, time to return to its roots and pay homage “We fundamentally believe that as throughout the cycle, and in multiple price FMG also took home the Industry to its 19th century start in the NSW mining society changes it is up to us to make the scenarios,” Mr Mackenzie said. Leadership Award - Raw Materials town Broken Hill. case – more confidently and effectively “We’re confident of it because of our & Mining. The company launched a $10 million – for the positive role that well-run and diversification across commodities and “It is an honour to accept these advertising campaign to promote the responsible companies play in society.” opportunities. prestigious awards which recognise change, which included two television Days later, at the Bank of America “There are many routes to go when you the hard work and determination of commercials and online promotion. Merrill Lynch Global Metals (BAML), have that, and we will take the best one.” everyone at Fortescue,” FMG chief executive Nev Power said. “Our team has delivered outstanding results across all of Redspear signs FMG contract our operations, including improved safety performance, consistent production, sustained productivity Cameron Drummond and efficiency gains and disciplined capital management. FOLLOWING a competitive tender “I am extremely proud of what process, Aboriginal owned-and-operated Fortescue has achieved and of mine supplier Redspear has won a contract our commitment to ensuring to supply Fortescue Metals Group (FMG) the development and growth of with lifting and rigging equipment across our business benefits our local its operational sites. communities.” Owner and managing director Barry Hancock Prospecting chairperson McGuire said the contract to provide and director Gina Rinehart was business critical services was Redspear’s presented the Lifetime Achievement first of its kind with a major miner. Award, while her prized Roy Hill “This has given us confidence that Holdings snapped up the Rising Star we are able to compete with some of the Company Award. largest names in lifting and rigging in Ms Rinehart said she was Australia and beyond,” Mr McGuire said. delighted to be acknowledged for “We thank Fortescue for the opportunity her dedication to the industry, most to show our young people that with hard recently culminating in the delivery work, perseverance and support from the of the $US10 billion Roy Hill project. right partner, everything is possible.” “The mining and resources industry Redspear is the first Aboriginal-owned with its many related industries is, I rigging and lifting business in Australia. (From L to R:) Redspear managing director Barry McGuire, operations manager Liza McGuire, and believe, a very important contributor The company also received the general manager Francois Witbooi. to our country, and helps to maintain opportunity to apply for 14-day payment and improve living standards, so it terms, under a new business initiative said initiatives such as the company’s opportunities for Aboriginal Australians, means a lot to me to be recognised announced this month to ease pressure on Billion Opportunities program and which are in turn changing lives and by my peers at these internationally Aboriginal and Pilbara-based suppliers. new payment terms were providing helping to build stronger communities,” renowned prestigious awards,” Ms “Cash management is critical to the encouragement to small businesses to Mr Power said. Rinehart said. sustainability of any small business, and build capability and capacity, while also Since the inception of Billion MMG was also recognised for Fortescue’s reduced payment terms allows offering practical solutions to cash flow Opportunities in 2011, 240 contracts and its contributions, and awarded the Redspear to invest more in its business,” management. sub-contracts worth $1.85 billion have Industry Leadership Award - Base & Mr McGuire said. “By facilitating strong businesses we been awarded to 103 Aboriginal-owned Specialty Metals. Fortescue chief executive Nev Power are creating more jobs and development businesses and joint ventures.

June 2017 6 NEWS THE AUSTLIAN MINING REVIEW

IN BRIEF Heron awards $107m EPC contract BBIG to acquire Weelumurra mine

Iron ore

BBI Group (BBIG) has signed an agreement with Mineral Resources subsidiary Polaris Metals to acquire its Weelumurra asset in the Central Pilbara. Located just 15km from BBIG’s proposed Centra Pilbara rail head and stock yard, Weelumurra contains an estimated 200 million tonnes of iron “The execution of this mineralisation and further exploration opportunities. contract represents “BBIG continues to develop the another important Balla Balla Infrastructure Project as the next tier-one, low cost, large scale milestone in Heron’s iron ore export infrastructure facility progress to become an in the Pilbara,” BBIG chief executive Nicholas Curtis said. important Australian “Securing the Weelumurra iron ore zinc producer.” asset is an important step in BBIG’s efforts to progress the project to a final investment decision.” The Woodlawn zinc-copper project site near Tarago, NSW. Image: Heron Resources. and supporting infrastructure at the project “We are very pleased to be working with Cameron Drummond located near Tarago, 250km southwest of Sedgman as they have demonstrated their Sydney. ability to provide a superior solution with Gold Fields MULTI-commodity focused explorer Heron More than 250 personnel would be technical and commercial advantages, Resources has awarded a $107m contract employed at the peak of construction. having already delivered a reduction in increases stake for the development of its Woodlawn Heron Resources managing director projected capital expenditure. zinc-copper project in NSW. Wayne Taylor said the contract award “The execution of this contract represents The engineering, procurement and followed the successful undertaking of a another important milestone in Heron’s in Gold Road construction contract (EPC) went to FEED program that included improvements progress to become an important Australian CIMIC Group subsidiary Sedgman for on the earlier feasibility study work. zinc producer.” gold the development of a 1.5 million tonnes “The nature of the contract, which Heron said project engineering was per annum mineral processing plant includes guaranteed maximum price and about 20 per cent complete, with onsite SOUTH African miner Gold Fields that would produce zinc, copper and lead performance incentives, aligning Sedgman work scheduled to commence immediately has spent $64.3 million to increase concentrates. and Heron in delivering an under-budget following the completion of project its holding in Gold Road Resources The design also included a backfill plant and early result,” Mr Taylor said. financing. to 10 per cent, as the two companies progress their 50:50 Gruyere joint venture project. Gold Fields acquired 74,824,070 QCoal spruiks 900 jobs for Bowen Basin Gold Road shares at 86 cents per share; a 27 per cent premium on its 18 May closing share price of 67.5 cents. In December last year, Gold Fields paid $350m for a 50 per cent stake in Gold Road’s Gruyere project in the Goldfields region of WA.

Rio to clear $2.5bn in bond purchase plan debt reduction

MINING giant Rio Tinto said it would use its strong liquidity position to further reduce gross debt under a two tranche bond purchase plan for up to Image: QCoal. $US2.5 billion. The company issued a redemption The open-cut mine would produce up Queensland Resources Council deputy Elizabeth Fabri notice for about $1.72bn of its 2019 to 10 million tonnes of high-quality coking chief executive Judy Bertram said the and 2020 US dollar-denominated and thermal coal per annum, which would announcement was a “huge shot in the arm” notes and commenced cash tender QCOAL will soon begin construction at its be railed to Abbot Point Coal Terminal for for central QLD. offers to purchase up to $US781 $1.76 billion majority-owned Byerwen coal overseas export. “This is a big dose of export growth for million of its five 2021, 2022 and 2025 project in North East Queensland after QLD Natural Resources and Mines Queensland’s premium coking coal, which US dollar-denominated notes. receiving State Government approval to minister Dr Anthony Lynham welcomed the is why Japan’s JFE Steel is investing in the The announcement follows the develop two of its tenements. investment in the State’s resources sector. project,” Ms Bertram said. successful completion of a series of The joint venture project between QCoal “It’s particularly good news for locals, as “This mine will also be a significant $US7.5 billion US dollar-denominated (85 per cent) and JFE Steel Corporation (15 the proponent has previously committed to economic contributor to local communities and note redemptions and repurchases in per cent) was set to generate 350 construction hiring from Glenden, Nebo, Moranbah and the wider Queensland economy.” 2016. jobs at peak, and a further 545 jobs once Collinsville and across the wider region,” Dr Byerwin coal mine was expected to begin operational. Lynham said. shipping early 2018.

JUNE 2017 8 NEWS THE AUSTLIAN MINING REVIEW Rio progresses Koodaideri

“The Koodaideri development will require an expected 1600 construction jobs and a further 600 operational staff if approved.”

Elizabeth Fabri

RIO Tinto has poured $30.9 million into a feasibility study of its Koodaideri greenfields iron ore deposit in WA, which could see construction begin in 2019 and first ore delivered by 2021. The $2.2 billion project, which had been in the planning pipeline for some time, was set to replace existing production in the Pilbara, with an estimated capacity of about 40 million tonnes per year.. Pre feasibility for the project released in November 2016 outlined development of a dry crushing and screening plant, non-process infrastructure, product stockyards, a rail loop and load out, and 170km rail link. Salt Lake Potash intends to become Australia’s first producer of sulphate of The 2017 feasibility study would focus The Koodaideri deposit is located in the Hamersley Range, WA. potash. on increasing Rio Tinto’s knowledge of the orebody and a variety of timing, capital and “The Koodaideri development will require “We are examining the Koodaideri project scale options. an expected 1600 construction jobs and a as an option to help us maintain our low cost Rio Tinto Iron Ore chief executive Chris further 600 operational staff if approved,” Mr competitive position and assist in maintaining Salt Lake Salisbury said the company would be Salisbury said. the Pilbara Blend product quality.” investing further in the Pilbara with local “We remain firmly focused on our value A final decision on the project will be made raises $17.6m businesses and suppliers, and firms outside over volume strategy and maximising returns following the completion of the feasibility the State. through enhanced productivity. study and board review. for pilot plant Cameron Drummond New Bowen Basin land release Cameron Drummond WA-based miner Salt Lake Potash has raised $17.6 million for the development of a pilot plant at its MORE than 270 kilometres of land in Goldfields Salt Lakes project near Queensland’s coal-rich Bowen Basin is Laverton, WA. up for grabs, after the State Government Commitments were made by UK and announced four tender blocks were on Australian investors to subscribe for offer – the first land release in the region 41 million ordinary shares at 43 cents in four years. per share, representing a n 11.9 per Natural Resources and Mines minister cent discount to the 20-day weighted Anthony Lynham said the exploration average price. program concept delivered long-term Salt Lake said the funds would planning certainty for explorers and early be used for the planning and initial advice to the local traditional owners, construction costs of the plant, as well landholders and councils. as ongoing resource investigation, “Resource developments which create testwork, and other associated studies. jobs and attract economic investment “We are very pleased to have to our regional communities must start successfully put in place the next stage with exploration,” Dr Lynham said. of funding for our exciting sulphate “This land release is a significant of potash projects in Australia, where opportunity for explorers to gain access we are working very hard to become to land with the potential for thermal the first producer in a sector with and metallurgical coal in a word-leading outstanding potential,” Salt Lake chief production region.” executive Matt Syme said. Since 2013, coal exploration licences “The excellent support we have have only been available in QLD via received from our shareholders and competitive tender. advisers in the UK and Australia The only tender under this process is a great help in our pursuit of that saw five permits awarded in the northern goal and we look forward to continued Bowen Basin in 2014. success together.” The land on offer is surrounded by The pilot plant will have throughput existing coal mines, from Middlemount in of between 20,000 tonnes per annum the north, to Cook and Blackwater to the Four areas are up for tender in QLD’s coal-laden Bowen Basin. Image: QLD Government. (tpa) and 40,000tpa processing only south. brine feed drawn from the near surface. The area is also serviced by Aurizon’s “Queensland’s high standards of safety Preferred tenders must meet Salt Lake has tenements totalling Goonyella and Blackwater coal rail of environmental management, and a environmental, native title and land more than 4750 square kilometres networks, providing access to the coal history of sustainable and innovative access requirements before commencing across nine salt lakes in the Northern export terminals of Hay Point and exploration and production practices, on-ground exploration activity. Goldfields region, including its flagship Dalrymple Bay to the north, and the Port offer a safe, secure and attractive location Tenders for the land were due to close Lake Wells project. of Gladstone to the south. for investment,” Dr Lynham said. on 24 August this year.

JUNE 2017 10 NEWS: Technology & Innovation THE AUSTLIAN MINING REVIEW Transformative potential

ASX-listed Lithium Australia NL (LIT) has focused on developing disruptive lithium exploration and processing technologies in light of a broadening supply gap for the versatile metal.

LIT saw an unparalleled opportunity to develop an independent supply stream from the minerals not usually used as lithium ore.

LIT’s Southern WA projects (excludes Pilbara and Gascoyne projects). LIT has identified certain lithium LIT noticed an important change in the minerals as an underdeveloped resource dynamics of lithium supply – a broadening on a global scale. supply gap and a potential shortage of The occurrence of such minerals and available lithium. The dynamics on the lack of available commercial processing supply side are complex and controlled technology to recover lithium from by only a handful of producers. LIT saw some of these materials was seen as an an unparalleled opportunity to develop opportunity for LIT. The development of an independent supply stream from the a more efficient process has the potential minerals not usually used as lithium ore, to transform some of the underdeveloped provided a viable processing flowsheet – mineral occurrences into ore. such as SiLeach™ – could be developed LIT focused on the development to commercially recover the lithium from of processing technology to achieve those minerals. that end, namely its wholly owned SiLeach™ is Lithium Australia’s SiLeach™ and LieNa ™ processes, core technology. It is a breakthrough which in turn led to examining a in lithium extraction that has the number of prospective deposits, and potential to remove the significant cost acquiring rights to lithium and rare barriers associated with Australia’s metals deposits in Western Australia hard-rock lithium industry, and achieve at Ravensthorpe, Coolgardie, and the a globally cost-competitive, high-value Pilgangoora JV with Venus Metals; as lithium product. well as Alix Resources’ Electra project In addition to the development of World lithium production cost curve. in Sonora, Mexico. novel and potentially revolutionary LIT is also entering into a joint metallurgical processing technology, SiLeach™ is a halide accelerated producers. venture to develop a tin/ lithium LIT also has a high quality portfolio sulphuric acid leaching process that is The possibility of recovering lithium resource in Saxony Germany with Tin of Australasian and international performed at atmospheric pressure (no using SiLeach™ from accessory International AG. exploration and development projects. autoclaves required) and at relatively minerals that are often disposed to tails Lithium is the lightest metal and is Traditionally, lithium ore undergoes low temperature (95 °C). This is in also shows considerable promise; this used in high-tech batteries that power a roasting process at high temperature stark contrast to current conventional would effectively mean production of computers, communication devices, before being subjected to leaching. lithium extraction routes which require lithium chemicals from mine waste and consumer electronics and electric vehicles. Roasting is an energy-intensive lithium minerals to be roasted at involving no mining cost, with mining Its other uses include medical activity and only economically viable elevated temperatures (around 1000 °C) already having taken place to source applications, colours in fireworks, to process high-grade ores such as in energy intensive kilns to enable the the primary mineral. ceramics, high-temperature glass, spodumene, or petalite, a lithium-alu- contained lithium to be made available In alliance with a division of the lubricants, air purification, fuel cells, minium-phyllosilicate rock. for subsequent acid leaching. Australian Nuclear Science and catalysts, nuclear technology and These lithium oxide ores can contain This elimination of the high Technology Organisation, ANSTO batteries. In fact, lithium is often up to 6 per cent lithium with processing temperature step and consequent Minerals, LIT has demonstrated the described as the most versatile metal costs of between $4000 and $5000 per energy reduction and cost saving is a production of battery grade lithium on Earth. tonne of pure product. It is generally key feature of the SiLeach™ process. carbonate using Lithium Australia’s Lithium demand is increasing at 11 uneconomical to recover reserves with Recovery of a range of valuable SiLeach™ hydrometallurgical process. per cent per annum, driven largely by less than 5 per cent lithium oxide. by-products such as potassium, The ore was produced from Lepidolite the battery market, which is currently SiLeach™ has been developed as a rubidium and cesium is also possible. Hill in Western Australia. LIT and expanding at 20 per cent per annum hydrometallurgical process that can The potential of SiLeach™ is in the also conducted continuous Sileach™ and is likely to accelerate with the recover product from micas with a production of lithium chemicals at pilot plant operations on spodumene anticipated production of electric lithium content of between 2 and4.5 the low end of the world production concentrates from Pilbara Minerals’ vehicles expanding from 160,000 units per cent – such as lepidolite, a hydrous cost curve, where lithium is produced Pilgangoora project demonstrating currently, to over 40 million units per silica mica that is considered an from hard-rock minerals but at the low lithium extraction from this refractory annum by 2050. abundant source of lithium. cost of South American lithium brine mineral without the need for roasting.

JUNE 2017 12 NEWS: Technology & Innovation THE AUSTLIAN MINING REVIEW METS roadmap outlines growth IFS and GIS: areas A powerful tool for enterprise asset management By Patrick Zirnhelt Elizabeth Fabri Vice President Enterprise Service & Asset Management IFS

THE CSIRO has developed a new Geographic information systems viewing asset information from the field. technology roadmap outlining potential (GIS) are being used today in hundreds Field technicians and surveyors growth areas for Australia’s METS of thousands of organisations. In fact, can remotely record and update data sector. the use of computer-based maps in regarding asset location planning, Developed in consultation with METS organisations and across society in installations, configuration updates, Ignited Growth Centre, researchers, general is becoming pervasive. problems, maintenance, and much more. and government, the 88-page report Maps make it possible to view a wide Smart phones, tablets, laptops, and highlights the importance of METS to variety of information in a geographic ruggedised devices can be used remotely the nation’s “innovation ecosystem” to format. And that geographically displayed to gather and record mining and a broad meet future global mining challenges. data empowers people and organisations range of other GIS-related data. All GIS The report identified five areas to analyse information more precisely, and asset data can also be visualised on for growth, which included new make more informed decisions, and these remote devices. technologies to unlock deeper reserves; improve operations. data driven mining for better and IFS has aligned itself closely with Esri Dial before you dig faster decision making; advanced and has developed a robust integration extraction methods; improving social with the Esri GIS software. This Asset management/GIS integration and environmental sustainability; and integration enables geographic-based also provides information essential developing mining automation and data visualisation and analysis for for infrastructure maintenance and robotics for safer and more efficient multiple diverse purposes. planning. We’re all familiar with the operations. Several industries that use IFS concept of “dial before you dig”, the CSIRO chief executive Larry enterprise asset management solutions service that alerts construction and Marshall said the roadmap was a can leverage the integration with Esri maintenance crews about underground great example of its Strategy 2020’s to track, monitor and maintain physical assets, such as power lines, pipelines, Customer First work, which aligned assets – such as those found in the mining sewers etc., that may be buried beneath science to Australia’s needs. industry. the ground where they are about to dig. These organisations are realising complex machinery to extract, haul It’s integration of asset management “As outlined in this significant benefits, including increased and process minerals and ore. Large, data with GIS software that provides performance and lifecycle of their assets, powerful equipment such as conveyors, the data and digital map displays that Industry Roadmap, improved regulatory compliance, reduced dozers, drills, graders, haul trucks, make “call before you dig” services the increasing operational costs, and higher employee loaders, longwall machines, roofbolters, possible. IFS contains asset information productivity. scoops, underground rail and many other such as work history, landowner dependencies on valuable assets must be tracked. information, repair and/or replacement technologies and Mining applications Integration between enterprise data, supplier details and more, all of asset management and GIS gives mine which are readily visible on the visual the specialised GIS integration with enterprise asset operators the ability to visualise asset GIS map display. skill required to management solutions offers mining locations, asset bills of material, asset This asset management information companies improved geological insight. installation and movement history, asset is just as useful for mining companies support them are Mineral and ore deposit information service and maintenance history, and looking to perform maintenance work. both opportunities can be displayed on an interactive map, more. Visualisation and analysis of mining allowing mining operators to plan new or equipment data empowers mine and threats for our expanded drilling and mining operations Mobility support operators to plan and manage projects sector.” more accurately. more effectively, increase the yield Mining operations are very GIS integration with IFS EAM also from mining operations, boost worker asset-intensive. Mining companies use facilitates gathering, updating, and productivity, and grow the bottom line. “In a sense we use science to anticipate the future and help us navigate to a better outcome,” Dr Marshall said. “METS is an important Australian Downer, Microsoft alliance for cloud tech sector and a global leader, but it can’t rely on past successes in a rapidly Cameron Drummond changing global landscape. “The sector must continue to innovate and take advantage of DOWNER EDI (Downer) has entered enabling technologies and new into a strategic alliance with Microsoft business models which are causing to develop market cloud-based solutions disruption across industries.” and services that would digitally enhance METS Ignited chief executive Roc their respective markets and allow for Gros said the roadmap complemented entry into new markets. the METS Sector Competitiveness Under the alliance, Microsoft will Plan launched by METS Ignited and invest resources and funding to help CSIRO in 2016, which laid strategic accelerate time-to-market for targeted foundations for sector success over the Azure-based cloud services, while next 10 years. Downer will offer these solutions and “The Australian METS sector needs services as an integral part of its current scale and speed to stay abreast of portfolio of solutions and services. global changes,” Mr Gros said. Downer chief executive Grant Fenn “As outlined in this Industry said the company was excited to be Roadmap, the increasing dependencies working with Microsoft. on technologies and the specialised “I believe the strategic alliance will skill required to support them are provide Downer with unique capabilities both opportunities and threats for our to grow offerings in both new and existing sector. markets,” Mr Fenn said. Image: Downer Group. “The METS sector is technologically Microsoft Australia managing director advanced but must develop faster Steven Worrall said the alliance would Intellectual Property transfer and accelerate the pace at which Downer specific challenges and opportunities Downer said the alliance between build better relationships within our and Microsoft could innovate on their facing the industries we serve,” Mr the companies was expected to deliver helix of stakeholders to take industry customers’ behalf. Worrall said. a continuous stream of new cloud-based capability to the next stage. “We do not underestimate the value “Microsoft is pleased to collaborate solutions and service offerings over the “The collective economic footprint that this will unlock – our collaboration with a respected business leader such as next 18 months, with the first wave of the METS and mining sector in will deliver fresh perspectives and deep Downer – assured in the value that we can expected for a phased release during the Australia is significant.” technical understanding to address the deliver as a result of this relationship.” second of half of 2017.

June 2017 14 NEWS: International THE AUSTLIAN MINING REVIEW Tanzania extends Acacia ban

Image: First Quantum. First Quantum nears commissioning

Cameron Drummond

CANADIAN-based miner First Quantum Minerals said it was just months away from commissioning its massive $US5.48 billion Workers at Acacia’s Bulyanhulu underground gold mine. Image: Acacia Mining. Cobre copper project in Panama. company’s Tanzanian mines was about a drop of up to 6 per cent of its expected 2017 First Quantum global exploration Cameron Drummond 250,000oz; and believed there were significant gold production guidance of between 5.3 director Mike Christie said construction of discrepancies in the data provided. million ounces (moz) and 5.6moz. the open cut mine – 120km west of Panama BARRICK Gold’s African subsidiary Acacia “The committee’s findings imply that The Toronto-based miner’s current City – was about 50 per cent complete. Mining said it was losing more than $US1 Bulyanhulu and Buzwagi each produce more full-year forecast included a contribution of million in revenue each day Tanzania than 1.5 million ounces of gold per year,” the between 545,000oz and 575,000oz of gold (at a “Everything about extended its mineral export ban. company stated. 63.9 per cent basis) from Acacia’s Bulyanhulu The ban was imposed in March after the “This would mean they are the two largest and Buzwwagi mines. this mine is super value of concentrates in Acacia’s containers gold producers in the world; that Acacia is “Barrick is offering Acacia its full support scale. Once fully at Dar es Salaam port were found to be more the world’s third largest gold producer; and as Acacia works to resolve this matter with than 10 times the amount declared by the that Acacia produces more gold from just the government of Tanzania,” the company operational the plant company. Tanzania’s presidential committee three mines than companies like AngloGold said in a statement. will process around has since decided to keep the export ban in Ashanti produce from 19 mines, Goldcorp “Barrick will evaluate any necessary place for declaring incorrect volumes. from 11 mines, and Kinross from their 9 adjustments to its full-year outlook should 72 million tonnes a Acacia rejected the committee’s claims mines.” Acacia determine a revision to its own 2017 year and each of the that one month’s gold production from the Barrick said the ban on Acacia represented guidance is required.” five pits hosts around one billion tonnes in copper inventory.” Prospects in Latin America Elizabeth Fabri “We are spending around $US1 billion Governor General on the project this year to keep to our 2018 commissioning schedule for the entire AUSTRALIAN miners should diversify and Peter Cosgrove said operations,” Mr Christie said. consider Latin America for new opportunities, commerce between “All seven mills – the largest in the world according to presenters at this year’s Latin – and their drives will be installed by mid America Down Under Conference. the regions had now this year and that’s a key outcome for us.” Held 17 to 18 May, the sixth annual exceeded $10 billion, First Quantum said it would be investing conference put a spotlight on mining prospects a further $US830m next year and $US110m in countries such as Peru, Argentina, Brazil with 96 ASX-listed in 2019. and Mexico for Australian junior and mid-tier “Everything about this mine is super explorers. mining companies scale,” Mr Christie said. Day one speaker Governor General having established “Once fully operational the plant will Peter Cosgrove said commerce between the process around 72 million tonnes a year and regions had now exceeded $10 billion, with 465 projects across each of the five pits hosts around one billion 96 ASX-listed mining companies having 16 countries. tonnes in copper inventory. established 465 projects across 16 countries. “Cobre Panama in any view is a very “Last year I was fortunate enough to be the large project with 3.7 billion tonnes of first serving Australian Governor-General to measured and indicated copper resources – visit Latin America,” Mr Cosgrove said. more than enough to keep us going on site “In 17 days I made State visits to Mexico, for 40 years. Uruguay, Argentina and Chile; as well as an “While the deposit is enormous, it is official visit to Brazil. low grade but this project is all about scale “There was desire to encourage more that country after the world-famous Panama per cent of its silver output, 26 per cent of and making this project work is helped small and medium sized Australian mining Canal,” he said. molybdenum production, and 21 per cent of by economic factors like an extremely low companies to explore in South America, and The Council on Australia Latin America zinc and 20 per cent of gold outputs.” strip ratio and attractive tax regimes in there was an appetite for tapping into the Relations (COALAR) chairman Chris Gale Mr Gale said Australia must move away Panama.” mining engineering and technical services that agreed, stating Australia was projected from its reliance on Asia, and the scenario of The project is proving an economic boom are one of the great strengths of the Australian to invest $US55 billion in Latin America “when China gets a cold, Australia now gets for Panama, creating 7000 jobs during sector.” mining between 2012 and 2031, with many the flu”. construction with 2500 employees for Mr Cosgrove said momentum was building of the countries ranking high on the Fraser “Australian and Latin American countries ongoing mining operations. in the region, with more than $2.5 billion total Institute’s mining investment attractiveness have more in common with each other than Mr Christie said the company expected capital raised by ASX-listed companies for ratings. with Asian countries and each has much to Cobre to produce about 320,000 tonnes of Latin America projects in the last five years. “One only has to look at Latam’s mining offer the other,” he said. copper concentrate per annum, equating to “We are seeing WA-based FMG securing profile to reinforce why Australia should be “Latin America looks to Australia for about $US2bn worth of exports each year. a 1400sqkm exploration lease in Ecuador, paying the region far more attention and with leadership and as a model to replicate its “That’s equivalent to around 4 per cent of Galaxy Resources and Orocobre producing a greater on ground presence,” Mr Gale said. institutions. Panama’s current GDP,” he said. lithium in Argentina which is increasingly in “This includes Brazil’s domination of the “The increasing liberalisation of their Once in full production, First Quantum demand for batteries, and Australian-managed region with its iron ore mining. markets on the Andean side presents was expected to emerge as the fifth or sixth First Quantam is developing a copper mine “The region produced 45 per cent of global many opportunities for two way trade and largest copper producer in the world. in Panama, the second biggest project in copper production in 2015, as well as 50 investment.”

June 2017 16 NEWS: International THE AUSTLIAN MINING REVIEW

IN BRIEF 2017 Samarco restart unlikely Lithium Australia enters JV germany

LITHIUM Australia has signed a joint venture agreement with Deutsche Rohstoff subsidiary Tin International to earn up to a 50 per cent interest in its Salisdorf project in Germany. The terms of the agreement included an initial cash payment of EUR 50,000 and 1.7 million Lithium Australia shares, followed by a EUR 750,000 exploration spend by June 2018 for a 15 per cent share, and a further EUR 1.25 million payment by May 2020 for the remaining 35 per cent interest. Lithium Australia managing director Adrian Griffin said developing a lithium project in Germany strengthened the company’s European partnerships and added to its global lithium mica inventory. Millie’s Reward results high grade africa

BASS Metals has completed technical due diligence at its high grade Millie’s Reconstruction efforts at Samarco mine in January 2017. Image: BHP. Reward project in Madagascar. Samarco Mineração SA chief executive “We have been in talks with banks and On 30 May, the Perth-based company Elizabeth Fabri said fieldwork confirmed outcropping Roberto de Carvalho said talks were bondholders, but the basic condition is pegmatites with significant spodumene continuing with the Brazil government that the company resumes operations,” mineralisation, including grades of 7.08 BHP and Vale are unlikely to resume to obtain necessary licenses. he said. per cent lithium oxide. operations at their ill-fated joint “It is getting increasingly tight Samarco produced about 30.5 million Completing due diligence was one venture mine Samarco this year, despite to resume operations this year,” Mr tonnes (mt) of iron ore per annum, and of the conditions of an agreement to earlier reports indicating a restart was Carvalho told Reuters. once reopened was expected to run at 60 acquire two adjoining mining permits ‘technically feasible’. “Each day that passes makes it per cent capacity, and deliver an annual and lithium mining rights for a third The Brazilian mine, which has been tighter.” rate of 18mt. mining permit. offline since 5 November 2015 following Mr Carvalho said with $3.8 billion In December last year, BHP and Vale “The team at Bass Metals are excited the tragic Fundão tailings dam burst in outstanding debt obligations, the agreed to a non-binding term sheet that by these results at Millie’s Reward that killed 19 people, still had a number production halt had been harmful to outlined a plan to use Vale’s Timbopeba and look forward to the completion of of regulatory hurdles to clear before it negotiations aimed at a restructuring pit to deposit tailings upon Samarco’s commercial due diligence and finalising could recommence production. agreement with creditors. restart. the transaction,” Base Metals chief executive Tim McManus said. South32 buys Arizona Mining stake Consolidated Cameron Drummond Zinc identifies SOUTH32 will pay $C110 million ($107m) for a 15 per cent stake in Canadian new targets multi-commodity miner Arizona Mining. Arizona Mining is focused on its mexico Hermosa zinc-lead-silver project, which includes the Taylor deposit, located in ASX-listed Consolidated Zinc (CZL) Santa Cruz County, Arizona. has indentified new geophysical targets South32 chief executive Graham Kerr south east of its Plomosas Project in said Hermosa was a highly prospective Mexico. project and was another step in the Recent analysis showed a deep company’s strategy to identify opportunities magnetic body at a depth of between outside of its current portfolio. 700m and 1300m, which represented a “We look forward to working with heat source for a larger hydrothermal Arizona Mining to progress this project system. through the feasibility and permitting “It’s exciting to think that there are stage to unlock the Hermosa Project’s full potentially significant extensions to potential.” the Plomosas mineralisation further Under the agreement, South32 will along strike to the south and also the acquire 45,000,000 Arizona Mining shares opportunity to review the prospectivity at $C2.45 per share. for copper and gold mineralisation South32 also has the right to nominate within the project area,” CZL managing a director to the board of Arizona Mining director Will Dix said. providing it maintains a minimum 12.5 per cent interest. Hermosa is a major zinc-lead project in the US. Image: Arizona Mining.

June 2017 18 NEWS: Commodity Focus: Diamonds THE AUSTLIAN MINING REVIEW Still a lady’s best friend?

While diamond mining in Africa can reap economic benefits for the region, companies need act with astute corporate social responsibility when operating in poorer nations, or more conflict diamonds could end up on our jewellery.

A flurry of mining juniors were Cameron Drummond also set to step up exploration in Africa, including Diamcor Mining, Since DeBeers’ highly successful 1948 Tsodilo Resources, Lucara and ‘A Diamond is Forever’ advertising Australian-based Lucapa Diamonds. campaigns kicked off, diamonds have On 1 May Foreign Minister Julie been associated with the culture of Bishop welcomed delegates to Perth for romance and marriage. the Kimberley Process Intersessional The diamond industry in the US meeting, the first of two meetings rose almost 100-fold in four decades, Australia will host as Chair of the from sales of $US23 million in 1929 to Process in 2017. $US2.1 billion by 1979. During Australia’s term as Chair, In 2016, world diamond sales were the focus would be on strengthening reported to be more than $US80 billion, implementation of the process, of which the US currently makes up including ways to enhance the security about 45 per cent. of rough diamond shipments and Since the early 1990s ‘blood certificates. diamonds’ – those sold illegally to finance armed groups and civil wars in “We will also lead a comprehensive Africa – have remained at the forefront review of the Kimberley Process to of controversy. strengthen its integrity and ensure that the Process is well placed to lead A three-year ban on diamond exports Image: ALROSA. from the Central African Republic (CAR) international standard setting in the lifted in 2016 had spurred renewed diamond trade into the future,” Ms violence in the region, which led to the 2016 produced $2.35 billion worth of Russian-owned ALROSA accounts for Bishop said. deaths of hundreds of civilians and six gems. about one third of the world’s diamonds, Australia will also host two special peacekeepers. Nicknamed the “Prince of Mines”, producing 37.4 million carats in 2016. forums during the Intersessional The ban was put in place to stop Jwaneng has been in operation 35 years Its Yubileinaya operation is the meeting. The first will explore armed groups profiting off illegal and has helped the country go from one world’s second-largest diamond mine cooperation between Indigenous diamond sales. of the poorest nations in Africa, to one of and has been in production since 1989. communities and the mining sector in Ranked as the 10th largest diamond its wealthiest. Last month, ALROSA – the second Australia. producer in 2012, CAR’s diamond Botswana also hosts the ninth largest biggest diamond miner in the world The second will look at ways exports were banned in 2013 after the diamond mine in the world, Orapa, – partnered with Angola’s national to address evolving consumer Kimberley Process – which puts checks which has been in production since 1971. diamond company Endiama to develop expectations, and ensure fairness and balances on the authenticity of the Both mines are owned in joint Africa’s largest kimberlite deposit, and sustainability across the entire stones’ origins – said there was no way ventures between DeBeers and the Luele, which has an estimated worth of diamond value chain. to determine blood diamonds were not Botswanan Government. more than $US35 billion. “Australia has a strong economic part of the country’s exports. Other countries in Africa that “If the resources are confirmed, it interest in a sustainable and resilient Other African nations, however, benefit from the diamond trade include might be one of the biggest [discoveries] mining sector and will continue to work have flourished off the back of revenue Angola, South Africa, Namibia and the in the past 60 years worldwide,” an with all stakeholders to forge a stronger from diamond mines. Democratic Republic of Congo. ALROSA spokesperson said. and more comprehensive process in Botswana hosts the world’s richest With its 11 primary and 16 The miner said it was also looking relation to the diamond trade,” Ms diamond mine – Jwaneng – which in alluvial deposits in northern Siberia, into projects in Botswana. Bishop said. Lucapa records strong sales

Elizabeth Fabri In the March quarter PERTH-based diamond company Lucapa’s latest sale from its Lulo diamod mine in the company also Angola included 1878 carats of alluvial recorded a 33 per cent diamonds at a cash price of $US1.3 million. The fourth sale for 2017, through increase in diamond partners Endiama and Rosas & Petalas, production to 4098 brought Lucapa’s total sales revenue for the year to $US14.5 million, at an average price carats. per carat of $US1747. Lucapa managing director Stephen Wetherall said the majority of the diamonds were sourced from the new Mining Block 28, with diamonds weighing in at more than 10.8 carats at an average price of $US695; a lower result than previous sale parcels. Earlier in the year, the company recovered Angola’s second largest diamond on record at 227 carats, along with other large stones that weighed 62, 65 and 92 carats. In the March quarter the company also recorded a 33 per cent increase in diamond production to 4098 carats. “With the Angolan wet season now over, Lucapa and its partners expect to resume alluvial mining operations at the high-value mining blocks later this month(May),” Mr Image: Lucapa. Wetherall said.

THE AUSTLIAN MINING REVIEW June 2017 20 SPECIAL FEATURES Adani: Carmichael

“A lot of suppliers and businesses have been hanging on for what you would call an ‘economy in transition’, and if the project were to not go ahead it would instil a lot of doubt and really subdue business confidence in the region.”

The final hurdle Development of Adani’s $16.5 billion Carmichael coal project is back on the table after the QLD Government made clear its position for the go ahead of the project. The Indian miner had dramatically suspended its final investment decision just days before its due date, blaming lack of clarity over royalty rates and the specifics of a $900 million Federal loan through the North Australian Infrastructure facility (NAIF).

with interest and with security of payment Cameron Drummond in place. “Consistent with our election commitments, OVER the last two years, Adani has cabinet has [also] determined that any NAIF tenaciously pushed through the approval funding needs to be between the Federal processes for the gigantic Carmichael Government and Adani,” she said. mine and associated infrastructure which, The Northern Australia Infrastructure if developed, had the potential to unlock Facility (NAIF) is a Federal funding scheme widespread development in the Galilee to encourage and finance private sector Basin. investment in economic infrastructure that The proposed Carmichael coal, railway benefits northern Australia. and port project includes building The NAIF was enacted in May 2016 and Australia’s largest thermal coal mine in may approve a total of $5 billion in loans to the north Galilee Basin, about 160km 30 June 2021. No projects had yet received northwest of Clermont in Central QLD. NAIF funding. Mine to port would be linked by a new QLD Treasurer Curtis Pitt said on 29 388km standard gauge rail line to a new May the State continued to support the terminal at Abbot Point Port near Bowen. NAIF, to which Adani had applied. Once developed, Carmichael would be “The NAIF is a concessional loans one of the biggest coal mines on the planet, scheme,” Mr Pitt said. producing between 25 million tonnes per “NAIF was established by the Federal annum (mtpa) and 60mtpa of high quality Government and any project financing thermal coal. approved by the independent NAIF board Over its 60 year life the major Adani Australia chief executive Jeyakumar Janakaraj. will flow between the Federal Government infrastructure would not only support and a project proponent. Adani’s operations, but the rail line and on the Carmichael project – due to be made full”. “We will not stand in the way of those port facilities could facilitate development the following week – until it received clarity “My sole focus this week has been to lead arrangements [and] in the case of the of other proposed mines in the Galilee from the Queensland Government over negotiations that ensure Queenslanders Carmichael mine, any funds will pass Basin. lower or deferred royalties. get the best deal that will see more jobs directly from the Federal Government to The combined mine, rail and port The news garnered a strong response and more money flowing into our state,” Ms Adani.” operations would provide more than from Federal Minster for Resources and Palaszczuk said. After an 11th-hour scramble the QLD 10,000 direct and indirect jobs and Northern Australia Matt Canavan. “This is the right policy that will provide Government made its position clear that supply opportunities for the region, with “How in hell can the Queensland Labor certainty and deliver jobs, royalties and royalties would be paid and they would operational hubs slated for Mackay, Government not even have the appropriate opportunities for years to come. not stand in the way of any NAIF funding Townsville and Rockhampton. tax regime in place, two years after they’ve “It will unlock these resource areas so that approval Adani received. The project benefits would be felt locally, been in Government?,” he said during a 23 projects can proceed and deliver thousands On 30 May Adani said it had reached regionally and across QLD, generating May doorstop interview. of new jobs for regional Queenslanders. an agreement with the State Government about $22 billion in mining taxes and “This project’s been assessed now for “The same approach will apply to all on royalty payments for the Carmichael royalties in the first half of the project life. more than seven years, and the Queensland greenfield projects in these Basins and the project. This could assist in providing public Labor Government is so chaotic, so wracked North West Minerals Province such as the “This shows a strong commitment by funding to help deliver schools, hospitals, with indecision and in-fighting, that they Adani Carmichael Coal project. the State Government to the project and is roads and other services and stimulate can’t even tell Adani what taxes they will “Opening up these three regions for a benchmark decision to take this project activity throughout the economy. pay if they make a decision to invest in the development has the potential to support forward,” Adani said in a statement. mine.” thousands of new jobs that are needed in The Adani parent company board said Confusion & Clarification On 27 May Premier Annastacia regional centres along the coast as well as it would consider the final investment Palaszczuk announced a new development in outback Queensland.” decision at its next board meeting. On 22 May however, the Indian-based policy under which the Adani Carmichael Deputy Premier Jackie Trad said that if miner deferred its final investment decision mine would “pay every cent of royalties in royalties were deferred they would be paid (continued on page 22) JUNE 2017 THE AUSTLIAN MINING REVIEW Adani: Carmichael 21 Townsville strikes perfect work/life balance

TOWNSVILLE North Queensland has a well-established history as one of Australia’s premier fly-in fly-out (FIFO) hubs for mining personnel. For decades, Townsville has been a major services and administrative centre for some of Australia’s most significant mining and industrial operations, including projects in the Bowen and Galilee Coal Basins and the North West Minerals Province. Positioned on the doorstep of reef, rainforest and resources is a unique offering Townsville North Queensland can proudly boast. Between the world heritage listed Great Barrier Reef and wet tropics rainforests, seamless direct air connectivity and one of Australia’s richest mineral provinces at arm’s reach, Townsville presents an enviable FIFO lifestyle. The city of Townsville is the proud custodian of one of the very first FIFO airports in Australia. Between defence and resources sectors alone, Townsville was built to not only service the companies that rely on a stable FIFO workforce, but to support FIFO employees and, most importantly, support their families. View from Castle Hill, Townsville to Magnetic Island. Image: Megan MacKinnon. Townsville strikes the perfect FIFO work/ life balance; it’s in the city’s DNA, and is put the call out to Townsville to service their It’s anticipated that up to 400 on-site boost the region needs. supported by the services, infrastructure and major projects in FIFO capacities. staff will be employed when the mine is A FIFO lifestyle out of Townsville provides culture of the region. BHP Billiton Mitsubishi Alliance (BMA) fully operational. an employment opportunity without the Townsville’s major strengths as a FIFO has called upon Townsville to supply more Such announcements are welcome news hassle of uprooting families and lives already hub include size, quality, and availability than 200 workers to its Peak Downs and for jobs, business and overall confidence established in a thriving city – a city that of a regional skilled workforce; strong Suraji mines. throughout Townsville. basks in more than 300 days of sunshine each existing representation across the mining Additional FIFO opportunities for Choosing Townsville as a FIFO base is year and is surrounded by a myriad of natural and construction sector; established air Townsville have also recently been a vote of confidence in the advantages the wonders. Townsville provides a lifestyle that connectivity; strong projected population announced by global resources company region offers the mining sector as a proven is incredibly conducive to a FIFO workforce, growth; affordable living costs and of course, MMG, confirming Townsville as the base logistics base with a ready workforce. supported by direct flight transfers that a highly attractive lifestyle. of its FIFO operations for the Dugald River These are exciting projects for effortlessly take residents from home to mine Several mining companies have already project. Townsville and will supply the economic and back again. JUNE 2017 22 Adani: Carmichael THE AUSTLIAN MINING REVIEW

(continued from page 20)

“The combined mine, rail and port operations would provide more than 10,000 direct and indirect jobs and supply opportunities for the region, with operational hubs slated for Mackay, Townsville and Rockhampton.”

“I welcome the fact that belatedly, the Queensland Government has sorted out their internal ructions and divisions and are now fully behind the project, signing a deal… with Adani to proceed with the project on a royalties arrangement,” Mr Canavan said. “And the Queensland Government has confirmed that they will play their role in regards to any funding from the Northern Australia Infrastructure Facility.”

Benefits

The regional centres of Rockhampton, Mackay and Townsville are set to reap massive benefits if Carmichael clears these final hurdles. Townsville Chamber of Commerce president Troy Popham said the project had been portrayed as moving forward for a number of years and has built momentum in a region that would have otherwise remained soft on the mining sector. “A lot of suppliers and businesses have been hanging on for what you would call an ‘economy in transition’, and if the project were to not go ahead it would instil a lot of doubt and really subdue business confidence in the region,” he said. Adani has flagged Townsville as the 10,000 direct and indirect jobs would be created if the project was developed. project’s regional headquarters. Hancock and I am very excited to know machinery, equipment, transport, camps, expertise in Mackay. Mr Popham said it was a great that Rockhampton will play a key role in and labour hire. He said it demonstrated that the Adani decision that would provide much needed supporting and delivering services as the Mackay is set to be the operational hub team understood where they could best downstream revenue to the region. Galilee Basin opens,” she said. for the project – a base for suppliers to access the world-class engineering and “There’s also discussion as to whether Councillor Neil Fisher said discussions provide heavy equipment and engineering heavy industrial support they would need Townsville would act as a fly-in fly-out with stakeholders and contractors had services for Carmichael. for the projects. (FIFO) base for the project,” he said. commenced. Resource Industry Network (RIN) “Being an operational hub will mean the “From a risk management point of view “The rapport we have built up with the director Mick Crowe said the Mackay region major Tier 1 contractors who will carry out it would make sense to base 3000 FIFO resource industry during the last four years was well-placed to service the project in an the mining and support services will now workers in more than just one location to has now put Rockhampton at the forefront operational capacity. likely be based here and would operate side mitigate travel delays from things like where we will become an integral part of “The operational hub is where the real by side with our services companies,” he natural disasters.” the development of the Galilee Basin,” he work will happen and drive major job said. In April last year Rockhampton was said. generation,” Mr Crowe said. “This means jobs for our region, both identified as a FIFO hub for the Carmichael “We are very fortunate to have the “The Mackay industry sector has during construction and for the future life project by Downer Mining, the project’s skill level within our community to assist long supported Adani in its journey and of the mine in a maintenance capacity. prime contractor. in developing new projects in our region; this workshop is a great opportunity for “The flow-on effect of employment While that decision was not set in stone, we’re excited to see that the development of potential suppliers to hear first-hand throughout our communities will be hugely Rockhampton Major Margaret Strelow said Carmichael mine will draw on those skills from key personnel as well as a means beneficial for our economy. she was determined her town wouldn’t miss in the coming years.” of building relationships and creating “It will be the catalyst for other out once the Galilee Basin was opened. Some of the supply chain opportunities communications.” businesses to invest in our region when “We have been working very hard for for the region include engineering, Mr Crowe said being named as an they see the investment by Adani and the the past two years with Adani and GVK construction, maintenance, heavy operational hub for Adani recognised the boost in our regional economy.” JUNE 2017 THE AUSTLIAN MINING REVIEW Adani: Carmichael 23 A driving force in QLD mining NESTLED between Queensland’s three major coal basins, the Bowen, Galilee and Surat, the Rockhampton Region is the provincial capital of Central QLD, acting as the principal service point for the resources sector. With a rich mining and cultural fabric, the Rockhampton Region has transformed into a major economic and lifestyle hub, with more than $5 billion gross regional product as of 30 June 2015. Mining is a huge economic contributor to the region, with the historic Mt Morgan gold and copper mine alone drumming business in the area for more than a century between 1882 and 1992. The region is favoured for its strong transport links; sitting in a prime location at the junction of major roads and rail networks, it features direct aviation links and freight routes connecting north, south, east and west. Put simply, Rockhampton is the gateway Rockhampton Regional Council’s 24-hour airport. to Central QLD and Northern Australia, and is the ideal location for Adani’s FIFO hub; An average of 600,000 passengers a year In addition, the Bruce Highway is the major facility; and driver change facility in Stanwell a sentiment that Rockhampton Regional pass through the Rockhampton Regional north-south route that extends the length of and Gracemere. Council agrees on. Council’s 24-hour airport, which contains the the Queensland coast and forms an important The Gracemere Industrial Area is also Rockhampton Regional Council is 100 per third longest runway in the State. part of the National Highway Network. an excellent location for businesses seeking cent committed to supporting Adani through Its current capacity and capability services The highway recently underwent a $225 to provide goods and services to coal mining the lifecycle of the Carmichael Mine and its major airlines with flexible schedules, million upgrade, which has significantly and coal seam gas operations in the Bowen, associated infrastructure. international flight facilities and air-side improved flood immunity and capacity. Galilee and Surat Basins as well as primary The council has put forward a strong bid to infrastructure that supports all phases of Resources companies also make use of the production throughout Central Queensland. ensure the Rockhampton Region continues a aircraft up to the Airbus A380. region’s North Coast Rail Line to transport ore, Located 10km west of Rockhampton, proud history of servicing the resources sector, The region’s road and rail infrastructure which comprises the North Coast Rail Line the facility recently received a $10 million and a key part of this was the construction of allows the region to act as the major logistics that runs in parallel to the Bruce Highway and infrastructure investment by the council for an onsite airport (expected to cost around $20 route for the Bowen Basin and future branches onto the east-west Central Rail Line; an expansion. million), which would see all flights travel development in Galilee. along with Aurizon’s road-rail intermodal This investment is complemented by directly to Rockhampton and back for workers. The road has been designated as a Type 1 facility that handles about 50,000 containers the council’s Economic Development Action This bold move is part of a wider vision for road train route from Gracemere west, with a annually; Toll and NQX’s intermodal facility Plan that will deliver more than 75 projects Rockhampton to be a powerhouse for mining fully sealed road network and considerably flat on the Central Rail Line at Port Curtis; the across 10 economic sectors to drive long-term jobs. gradient. Gracemere Queensland Rail tilt train servicing economic growth beyond 2020. JUNE 2017 24 Mining in South Australia THE AUSTLIAN MINING REVIEW

“South Australia’s history and prosperity is inextricably linked to the success of its minerals and energy sector and its services supply chain.”

Olympic Dam mine. Image: BHP. Renewed optimism With a history dating back to the 1800s, the South Australian resources sector is a continued force in Australian mining, boasting a portfolio of world-class projects and new exploration prospects for the next generation of mining.

Elizabeth Fabri one of the most anticipated projects in development with construction on the access decline now underway. SOUTH Australia is a proud mining region, The feasibility study sees first with many noteworthy accolades to its commercial production in the second half name. of 2019. To begin, the State is home to the In April, OZ Minerals announced it world’s largest known uranium deposit would be accelerating the involvement of and Australia’s largest underground mine, major contractors at Carrapateena with Olympic Dam. requirements for local and Indigenous It also hosts 68 per cent of the country’s participation. copper resources, 80 per cent of its uranium “The progression of Carrapateena resources, 28 per cent of the economic gold copper-gold project is proceeding at pace resources, and more than 14 billion tonnes and a brilliant example of the stimulus of iron ore. the PACE exploration initiative has made In 2016, the region even ranked as towards unlocking South Australia’s the second most attractive investment precious resources, with the deposit destination for minerals exploration in discovered through a collaborative Australia, behind WA, according to The drilling grant in 2005,” Ms Knol said. Grant Thornton Jumex Survey, and was Further details of the project are in the world’s top 10 for overall mining expected to be announced later this year. investment, according to the Fraser Prominent Hill mine. Image: OZ Minerals. “OZ Minerals is also looking at Institute. constructing a high-tech copper SACOME chief executive Rebecca royalties and directly employs 10,000 people advanced projects in exploration, feasibility concentrate treatment plant (CTP),” Ms Knol said upward movement in the sector while supporting a further 16,500 people and resource definition phases, signifying Knol said. through 2016 has continued into 2017, in the Mining Equipment, Technology and great promise for the future. “The CTP creates a high grade copper mustering a renewed optimism. Services (METS) sector. concentrate that will be an attractive feed “South Australia’s history and prosperity “Continued development of sophisticated Key projects to watch and blend stock for smelters.” is inextricably linked to the success of its discovery and extraction technologies Other projects in the planning pipeline minerals and energy sector and its services will strengthen the State’s position as an South Australia’s world-class projects included Iron Road’s $4.5 billion Central supply chain,” Ms Knol said. exporter of copper, gold, uranium, iron, include Olympic Dam, Prominent Hill and Eyre Iron Project, which was granted “The sector contributes $4 billion to the steel, nickel, mineral sands, oil and gas.” Kanmantoo, with many more scheduled State Government approval in May. States’ export revenue annually, delivering The region also maintained more than to begin production in the next few years. a further $208 million to the State in 700 exploration licenses and more than 20 OZ Minerals’ Carrapateena project is (continued on page 29) JUNE 2017 THE AUSTLIAN MINING REVIEW Mining in South Australia 25 More than a century of hydraulic solutions PROVIDING custom solutions for Australia’s most demanding industries, Southcott remains at the cutting edge of design and production of high performing hydraulic supplies. The Southcott family has been involved in designing and manufacturing for more 131 years and today prides itself on being a major force in hydraulics, control systems and fluid connectors. With an extensive product range and world-leading brands, Southcott offer quality solutions to every major industry. 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The company is an innovative reputable The company has successfully designed, installed and commissioned major projects throughout Australia. solutions provider that understands the hydraulic industry; with a dynamic culture, hydraulic components ranging from pumps, clients every step of the process — from The company prides itself on safety, expertise and a distribution network of valves, motors, cylinders, quick release design, development and prototyping to quality and reliability, offering industry 10 sales branches, three manufacturing couplings, child couplings, hydraulic gates fields testing — to develop a system solution. leading service that delivers the complete facilities, electronics’ division and more than hose and adaptors give Southcott the leading Southcott also analyses existing systems, hydraulic solutions. 150 distributors across Australia. market advantage. offering ways to improve reliability efficiency More information can be found at: Distributors for imported and local Southcott engineers work closely with or find cost savings. www.southcotthydraulics.com.au. JUNE 2017 26 Mining in South Australia THE AUSTLIAN MINING REVIEW

Hill and Challenger were also performing (continued from page 24) well. “The Prominent Hill copper-gold-silver mine, produced 116,882 tonnes of copper in 2016, meeting its annual copper guidance for the second consecutive year,” Ms Knol said. In the 2016 financial year Olympic Dam achieved its highest production since 2006 and exceeded its forecast, delivering 203,000 tonnes. Despite BHP’s operation facing a number of challenges during the current financial year, including the State-wide black outs in September and maintenance and investment in infrastructure to maintain underground material movement, the operation will soon produce first ore from the high-grade Southern Mine Area, which contained 70 per cent of the previously untouched orebody along with investing in critical infrastructure projects, including the smelter campaign. While the smelter campaign will be delivered in a relatively short time-frame, the business has recently announced that it was recruiting 350 people for its ongoing operations. In 2016, the State’s uranium mines also reported near-record production worth $499 million from the sale of 5493 tonnes of uranium oxide, which represented about 75 per cent of Australia’s national output. “Olympic Dam accounts for about two-thirds of the state’s uranium production with the remainder production The Carrapateena project is one of the most anticipated projects in development. from Four Mile owned by Quasar Resources and processed at the nearby Set to create nearly 2000 jobs during as grain. on the South Australian economy. Beverley plant by affiliate company construction and 700 jobs over the 25 year Iron Road is now looking to secure the “Connecting the Eyre Peninsula to the Heathgate Resources,” Ms Knol said. life of the mine, the project will include remaining project financing by December world’s markets through a modern rail “Four Mile goes from strength to construction of a new 145km rail link 2017. link and deep-water port that can be used strength as more resource pockets are and deep-water port at Cape Hardy, near State Premier Jay Weatherill said if by other businesses will also enable this discovered and developed.” Tumby Bay. Iron Road met the approval conditions important region of our State to grow,” he Honeymoon uranium mine was also set The port will also be able to be used to this project would create thousands of said. to be brought back online after being on export other goods from the region, such jobs and have a significant, lasting impact Established projects such as Prominent care and maintenance since 2014. JUNE 2017 THE AUSTLIAN MINING REVIEW Mining in South Australia 27

“Under new owner Boss Resources, latest in May last year, as well as a The South exploration across three project areas in the Australian Geophysical Reference Model region point to the new Honeymoon project (SAGRM) to allow exploration companies to having some of the highest grade resources view the State’s geophysical data in 3D. held by an ASX-listed uranium developer - with a combined total project resource of Community engagement 28, 800 tonnes contained equivalent U3O8 across three project areas,” Ms Knol said. Ms Knol said two of the biggest challenges “Technical studies into uranium the State’s resources sector faced was processing options are underway and a community engagement and access to land. feasibility study is planned to start this year “We are no longer in an era of unabated into the recommencement of production, land access, limited environmental concerns and an expansion of operations. and limited community interest in projects,” “Latest results for the Jason’s prospect she said. confirm its high prospectivity.” “The industry has changed dramatically. Other projects included the proposed $40 “Communities are galvanised globally million Kookaburra Gully graphite mine on and leverage off social media to spread their the lower Eyre Peninsula; and prospective message. mining projects in the Curnamona province “At the same time, we must acknowledge and Yorke Peninsula. that a lot of activities taking place in our Ms Knol said the Curnamona province sector are also impacting the agricultural had generally “flown under the radar” when sector and must ask ourselves whether we it came to its copper-gold credentials, but are engaging with this sector adequately. times were changing. “What are the issues we have in common “Proof of its prospectivity is the and how can we work together?” production from the State’s newest gold Ms Knol said communication was crucial mine Portia and nearby identification of in these areas, between Government, local copper resource at North Portia, Kalkaroo communities, and the public. (Havilah Resources) and Mutooroo,” she She said a review of the State’s mining said. laws was underway to maintain its relevance to business and the community. Accelerating exploration “This review has involved wide consultation and seeks to bring forward the Over the last few years, the South economic and social benefits of the state’s Australian Government made significant mineral wealth for all,” Ms Knol said. contributions to promote mining sector “While it will strengthen South Australia’s growth. one stop shop model, it will also improve On 30 November 2015, it introduced a transparency in land access, engagement, two-year $20m PACE Copper plan, which negotiation and resolution processes. was coined the ‘rebirth’ of exploration in the “On this basis we will continue to attract Gawler Craton region. leading, responsible miners that build strong The plan aimed to deliver the OZ Minerals’ Prominent Hill mine. relationships with the community.” world’s largest high-resolution airborne Ms Knol said the outlook for South geophysical and terrain imaging program; to triple copper output to 1mtpa by 2030, “Currently 125 companies are exploring Australia was positive and SACOME was industry-government collaborative drilling has gained momentum through its first or investigating opportunities for new well positioned to lead the mining and energy on new targets; and world-class data and year, as the sector unites to implement copper mineral targets of the State, so there sector in South Australia as it transitioned interpretation. its action themes directed to accelerate are plenty of opportunities to partner with to a digital future. In February 2016, the Premier exploration, discovery and information; them in the search for copper.” “New technology will help to guide us into introduced a broader plan for the State’s develop innovative infrastructure, services Last year, the State also awarded $3.5m a new era, but we must value the ingenuity copper industry with the launch of a and research; and engage to build industry in grants to 26 mineral exploration projects of our skilled workforce to help deliver dedicated Copper Strategy, which set out and community capacity,” Ms Knol said. through its PACE Discovery Drilling desirable outcomes,” she said. to triple copper production in the next 15 “The forthcoming Copper to the program; which included grants of up to “Our people are the lifeblood of our years and position Australia as the world’s World Conference (27 June) will throw $250,000 – an increase from the $100,000 industry and their skills and creativity third-largest copper producer. the spotlight on the progression of this offered in previous rounds. should be given the chance to flourish as this “The strategy, which has set a target important initiative. A magnetite strategy was also introduced transition takes place.” JUNE 2017 28 Mining in South Australia THE AUSTLIAN MINING REVIEW Quality products drive productivity PRODUCTION processes are becoming ever more complex, so it’s important the measurement technology used to control and monitor these processes is all the more understandable and intuitive. VEGA has set itself the goal of developing innovative measurement technology that is easy to install and operate, while offering maximum safety and reliability. The range of quality instrumentation that VEGA manufactures includes level transmitters, level switches, pressure transmitters, as well as nuclear density and level applications. The instruments are manufactured for the most demanding applications and environments, since reliability and performance are the key to its continual development and improvements. VEGA employs more than 1200 people worldwide; 600 of whom work at its Schiltach headquarters in the Black Forest, Germany. This is where – for more than 50 years – solutions to demanding measuring tasks have been conceived and brought to realisation for chemical and pharmaceutical plants, the food industry, drinking water supply systems, sewage treatment plants, landfills, environmental, mining, power generation, oil platforms, refineries, ships, and aircraft. VEGA is active in more than 80 countries with its globe-spanning network of subsidiaries and distributors. The company and its products have all the necessary certificates and approvals for worldwide application. This applies to the technical safety as well as the quality of the products and services. More information can be found at www.vega.com. JUNE 2017 THE AUSTLIAN MINING REVIEW Mining in South Australia 29 Diversity and solutions, proven performance LUCAS TCS is a privately-owned mining and civil contracting company based in South Australia and has been in operation for more than 40 years. Over this time, Lucas TCS has worked with some of Australia’s leading mining and civil construction organisations. Lucas TCS has been recognised for its expertise in the field of mining and civil contracting and has built and maintained long standing relationships with clients, consultants, suppliers and subcontractors both locally and nationally. This strong relationship focus has assisted Lucas TCS to complete a broad range of construction, earthmoving and mining projects throughout Australia over the last four decades. Lucas TCS has the capacity to develop new mining operations as well as supplement existing operations with capability to undertake overburden stripping, drill and blast, load and haul of ROM material, crushing, screening, bulk commodity haulage, waste and landfill management, surveying, plant maintenance and mobile camp operation. A complete service from resource to process plant to ship can be offered, as well as individual parts of mining services. An extensive and modern fleet of mining and construction equipment, supported by excellent maintenance and supply chain More information can be found at www.lucastcs.com.au. management, can be easily mobilised to a project and is also available for long or providing a safe working environment for Lucas TCS has been a key participant mine. short term hire. all personnel working on project sites. in some of the State’s leading mining Lucas TCS possesses the experience As a Federal Safety Accredited company, With the head office based in Adelaide, projects, including the OZ Minerals of managing tight and challenging Lucas TCS views the safety and wellbeing the company has a core commitment Prominent Hill mine, Arrium Whyalla construction programs to ensure its of all personnel as its core value. to support local business while also operations, Iluka’s Jacinth Ambrosia clients secure the outcome they set out to It is committed to instilling the highest supporting the regions it operates in across mine, White Dam gold mine and the achieve – delivering a completed quality level of safety standards on all projects and Australia. Murray Zircon Mindarie ‘C’ mineral sands project, on time, on brief, and on budget. June 2017 30 AIMEX 2017 THE AUSTLIAN MINING REVIEW

“The free to attend conference, The Future of Mining, offered as part of the exhibition has been shaped by leading industry minds.”

“The free to attend conference, The Future of Mining, offered as part of the exhibition has been shaped by leading industry minds.” The Future of Mining

Registrations have well and truly opened for Australia’s most extensive mining exhibition, the Asia-Pacific International Mining Exhibition (AIMEX), running from 29 to 31 August.

handling; fleet performance; and health Reuben Adams and safety. NSW Mining chief Stephen Galilee, MINING companies, in general, are now in General Electric strategic account better financial health than at any time in development manager Ian Larsen, and the last two to three years, according to a Mining3 chief Professor Paul Lever have 1Q17 trends and 2017 outlook report from already been confirmed as 2017 speakers, EY. with the full conference program set to be “Capital allocation remains key, and revealed in the coming weeks. with diverging outlooks, we expect M&A The Mining Innovation conference drivers to continue to differ by commodity stream will allow speakers to showcase and geographical market,” EY stated. cutting edge technologies and innovative “In markets where growth is expected, practices to optimise productivity, such as copper and gold, we expect strategic heighten workplace safety, and maintain activity to rebound while in weaker global competitiveness and sustainability. markets consolidation and restructuring The Underground Mining conference activity will continue to drive deals. stream provides a platform to discuss and “The lack of exploration spend as a result address critical topics in the underground of limited access to capital, will inevitably mining sector such as monitoring contribute to a future supply deficit and productivity, maximising efficiency, may trigger a return to financing across transactions, with a view of becoming major free to attend conference taking place at maintaining competitiveness, skills the juniors towards the end of 2017.” players in their respective commodities at AIMEX in 2017. development, and policies. The report stated that early signs of the peak of the next cycle,” it stated. The conference program will feature The Surface Mining conference delivers market bottom would encourage those As one of the world premier mining world-class keynote presentations, case a combination of fundamental themes such who’ve successfully strengthened their conferences and exhibitions, AIMEX is studies and white paper discussing key as safety, equipment, systems, transport balance sheets to start considering the perfect place for businesses to seek out themes, including mining’s economic of materials and step-change solutions for strategic acquisitions. the latest technology and innovations in a and political outlook; technology and mines moving forward. “Mid-tiers will be consolidating their strengthening market. innovation; advancements in drill and positions through all-equity based The Future of Mining is a world-class, blast, processing, and bulk materials (continued on page 32) June 2017 THE AUSTLIAN MINING REVIEW AIMEX 2017 31

08 9248 1588 Unit 2 / 272 Camboon Road Malaga, Western Australia 6090 [email protected] www.rostaaustralia.com.au

ROSTA MB 50 motorbase for Screen Drives

Solutions for ROSTA MB 70 Motorbase for Screen & Crusher Drives Mining & Aggregate Cost affective Pre-tensioning ROSTA MB Motorbases for belt drives ROSTA Single Pivot MB Motorbases are used for maintaining belt tension on V Belt drives, such as those used on crushers, feeders, screens, fans, pumps and just about any application which utilises V belts. Sizes range from 0.75kW to more than 550kW.

ROSTA ATEX Single Pivot MB Motorbases are suitable for applications in hazardous areas according to the ATEX 94/9/EC Directive.

ROSTA Superior Lift Motorbasesare used in overhead drive applications, and are especially suited to pump drives. These motorbases eliminate the often-used vertical jacking bolt system and makes belt changes safer, quicker and easier as the V belt drive alignment is maintained throughout the motor movement range. As with the company’s whole MB ROSTA Motorbase range, there is a noticeable improvement in pulley and V belt life as belt tension is maintained for a longer period when compared to a fixed system.

ROSTA Oscillating Mountingsoffer a broad range of units including AB mounts which are ROSTA MB 100 Motorbases for Crusher Drives used for screen and feeder suspension for fixed, modular and mobile plant applications in the mining and quarrying industries to replace coil springs, rubber block and airbag systems.

The AB mounts have proven to be reliable and long lasting, even in hostile environments which has endeared them to end users and OEMs alike.

ROSTA Anti-Vibration Mountsare used for isolation of vibration and impact from surrounding structures. These are especially useful for absorbing high impact loads on conveyor transfer point applications. June 2017 32 AIMEX 2017 THE AUSTLIAN MINING REVIEW

(continued from page 30)

“The ability to connect face-to-face is still so vital to business development, and events like AIMEX enable you to do this in a time efficient manner. Being able to connect and interact with companies and their products is invaluable.”

AIMEX 2017 will also feature ‘The connect and interact with companies and talented and qualified engineering Mr Ward said the scale of AIMEX Breakthrough’: a new platform showcasing their products is invaluable,” Mr Moult professionals, exchange ideas and share offered an unparalleled opportunity emerging technologies that could be game said. industry insights with likeminded peers. for the industry to upskill, network, changers in the mining sector. Event organiser Reed Exhibitions “Engineers Australia plays an important and generate new business leads and This new-to-market technology has only Australia has also announced a new role in shaping the industry’s future, and opportunities. been released in the last 18 months, and partnership with Engineers Australia at it is fantastic to have them involved as we “No other event in the region has the this feature will see these technologies AIMEX. continue planning for the 2017 event.” same offering for visitors to network, launch on mass to the sector. AIMEX event director Brandon Engineers Australia chief operating collaborate and learn from one another, Close consultation with industry is key Ward said the industry partnership was officer Ron Watts said the partnership interact with over 300 exhibitors and to the development of AIMEX 2017. the first-of-its-kind, opening up new with AIMEX would help better connect discover some of the latest products from This has been spearheaded by the opportunities for collaboration between members with the latest knowledge, leading suppliers,” Mr Ward said. recently appointed AIMEX non-executive engineers from all fields of practice and expertise and experience. “The free to attend conference, The chairman David Moult, who brings decades AIMEX exhibitors. “Through this new industry Future of Mining, offered as part of the of global coal mining experience to the role, “As the peak representative body for collaboration, Engineers Australia will exhibition has been shaped by leading including stints as managing director and Australia’s engineering professionals with be able to provide our members the industry minds. chief executive for Centennial Coal. more than 100,000 members, Engineers opportunity to learn about the latest “This program features leading opinions “The ability to connect face-to-face is Australia is a powerful global voice to have global developments in mining, network on how people will work in the future, still so vital to business development, and on board for AIMEX 2017,” Mr Ward said. with industry peers and speak directly advances in new technologies and process events like AIMEX enable you to do this “This collaboration will only strengthen to suppliers showcasing cutting edge improvements as well as taking a deeper in a time efficient manner. Being able to the event’s reach to engage with highly technology,” Mr Watts said. focus on where the sector is heading.” June 2017 THE AUSTLIAN MINING REVIEW AIMEX 2017 33 ROSTA: bigger and brighter than ever

THE widely known ROSTA range of ROSTA Anti-Vibration Mounts are rubber torsion element products have used for isolation of vibration and impact been providing solutions to the mining, from surrounding structures. oil and gas industries in fixed, modular These are especially useful for and mobile plant — as well as a myriad absorbing high impact loads on conveyor of other industries — for 73 years. transfer point applications. The ROSTA Australia subsidiary in Malaga, WA, was established by ROSTA Rubber Suspension ROSTA AG Switzerland in January units are modular components that 2015 to service the Australia and Asia ROSTA produces in a variety of designs Pacific region, following many decades of which find their way into innovative ROSTA product promotion by agents and engineering designs the world over. distributors. As well as its range of standard ROSTA Australia’s vast stock holding products, ROSTA’s ability to design, is for the support of its distributor analyse and produce custom rubber network, OEMs and end-users. torsion elements is second to none. ROSTA Australia staff collectively has more than 50 years of experience The company is proud of its products, with ROSTA products and have seen and quality validation is of the highest the development of many solutions from ROSTA products have been a stalwart to the resources sector for decades. importance. concept to reality. A well-equipped research and Motorbases are used for maintaining and makes belt changes safer, quicker development department leaves nothing ROSTA’s main product categories belt tension on V Belt drives, such and easier as the V belt drive alignment to chance; the materials tests that take as those used on crushers, feeders, is maintained throughout the motor place before and periodically during ROSTA Oscillating Mountings offer screens, fans, pumps and just about any movement range. production are the guarantees for a a broad range of units including AB application which utilises V belts. Sizes As with the company’s whole MB comprehensive quality standard – so mounts which are used for screen and range from 0.75kW to more than 550kW. ROSTA Motorbase range, there is a customers can be rest assured that a feeder suspension for fixed, modular and noticeable improvement in pulley and V spare part element produced in 10 years’ mobile plant applications in the mining ROSTA ATEX Single Pivot MB belt life as belt tension is maintained for time will have the same characteristics and quarrying industries to replace Motorbases are suitable for applications a longer period when compared to a fixed as the one supplied today. coil springs, rubber block and airbag in hazardous areas according to the system. ROSTA is in its element providing systems. ATEX 94/9/EC Directive. customer support and assistance to find The AB mounts have proven to be ROSTA Tensioners for chain drives a possible solution, independent of the reliable and long lasting, even in hostile ROSTA Superior Lift Motorbases range from 3/8” pitch upwards. type of industry. environments which has endeared them are used in overhead drive applications, As well as the standard ROSTA SE Information regarding contact details, to end users and OEMs alike. and are especially suited to pump drives. type Tensioners, ROSTA produce custom brochures and CAD file downloads of These motorbases eliminate the Tensioners to suit just about any drive ROSTA products can be found at: ROSTA Single Pivot MB often-used vertical jacking bolt system application. www.rosta.com.

EnterpriseIS is a business improvement company with a long history working with the resources sector. Business improvement specialists

ENTERPRISE Improvement Solutions to create sustainable improvements, the Australia (EnterpriseIS) is a business people, the capabilities and the tools must be transformation company with a key focus on integrated effectively. business excellence, asset management and Through understanding client needs education. and being part of the implementation of With a history of significant involvement in the solution, the company has been able to the mining industry, EnterpriseIS has worked deliver significant returns on investment to with clients across the sector to deliver businesses within the mining, manufacturing substantial improvements to operations. and infrastructure sectors. Its team is comprised of experienced EnterpriseIS has worked at a variety of professionals who use recognised performance mining operations, helping them to capitalise enhancement techniques to help clients on improvement opportunities. identify, understand and capitalise on These include iron ore mines and port sustainable improvement opportunities. operations in WA, gold mines in South Africa, At the core of EnterpriseIS is its and coal terminals and cable manufacturers Improvement Sustainability Model, which in NSW. links the individuals in the teams to the More information about how EnterpriseIS capabilities, and the technical tools required works with clients to improve business can be to achieve success. found by visiting them at AIMEX or through: EnterpriseIS’ core belief is that in order www.enterpriseIS.com.au. June 2017 34 AIMEX 2017 THE AUSTLIAN MINING REVIEW 3D printing tech on show

RENISHAW is a global company with core skills in measurement, motion control, healthcare, spectroscopy and manufacturing. It is one of the world’s leading engineering and scientific technology companies, with expertise in precision measurement. The company supplies products and services used in applications as diverse as jet engine and wind turbine manufacture, through to mining and brain surgery. The business is also a world-leader in the field of additive manufacturing (or metal 3D printing), where users are able to utilise technology to ‘print’ parts from metal powder. This is increasingly becoming a preferred choice for miners and METS companies where precision and time efficiency is key. The company is pleased to be able to attend this year’s AIMEX exhibition at Stand 1414, where it will be showcasing systems from its Additive Manufacturing (AM) and Spatial Measurement Divisions (SMD). SMD is particularly pleased to be able to highlight its new Void Scanner and Boretrak at the show. Void Scanner is utilised for stope monitoring applications and enables users to collate three dimensional point clouds from a position of safety. Boretrak enables users to measure and More information can be found at www.renishaw.com. audit borehole deviation from proposed designs so that they can make informed systems at a platform like this will enable bring to mine and quarry sites,” Renishaw measurement systems can fit into mine sites decisions and optimise blasts. us to engage with potential customers and product manager Alastair Delooze said. both now and in the future, particularly with “We are excited to be able to attend highlight the real cost benefits of what “Our week will be focused on how the ever growing potential of autonomous the AIMEX event. To be able to show our our niche products and technologies can our additive manufacturing and spatial vehicles and remote working.” June 2017 THE AUSTLIAN MINING REVIEW AIMEX 2017 35

World leader in sensor-based sorting technology Sensor-based sorting with XRT (X-ray transmission) is a viable dry-processing technique which can be applied to de-stone coarse raw coal.

TOMRA sorting technology is designed for mining and high capacity sorting machines. Our systems are individually tailored and can be seamlessly integrated into existing mining processes. Our team of mining experts with years of experience guarantee professional process consulting.

A single TOMRA sorter can effectively de-stone coarse –120mm +50mm ROM feed coal at a rate of 300 tph capacity. Higher throughputs can be accommodated by simply configuring sorters in parallel.

It is a cost-effective process which will improve quality of the coal in terms of reducing the ash, improving the calorific value and reducing the abrasiveness index as well as the sulphur content of the coal.

TOMRA sorters require no pre-washing of the feed material and generate no wet tailings. A single TOMRA sorter can replace conventional cyclones, slurry pumps, dense media and spirals all in a very small and environmentally friendly footprint.

Our proven technology and specialist expertise in recycling, mining and food are the reasons why our customers choose us as preferred supplier:

• Integration of versatile technologies to create new applications • Ongoing investment in R&D to deliver even more advanced sorting solutions • Worldwide service network – we’re always close at hand • Proven performance: 10,000 installations in the field

SENSOR-BASED TECHNOLOGY CREATES VALUE IN VARIOUS APPLICATIONS PARTS OF THE MINING PROCESS

RELIABLE AND INCREASE INDUSTRIAL MINERALS GEMSTONES FERROUS METALS EFFICIENT DIVERT PRODUCTION SORTING DECREASE YOUR HAULAGE COSTS YOUR ORE TYPES REDUCE ENERGY CONSUMPTION DECREASE YOUR MINING COSTS Calcite, quartz, feldspar, Diamonds, emeralds, rubies, Iron, manganese, chromite magnesite, talc, dolomite, sapphires, tanzanite XRT, EM, NIR limestone, rock salt, phosphates, COLOR, XRT, NIR potash COLOR, XRT, NIR

NON-FERROUS METALS FUEL SLAG

RECLAIM OLD REDUCE THE AMOUNT WASTE OF FINE TAILINGS DUMPS SELL A INCREASE YOUR DEPOSIT COARSE REDUCE WATER EXPLOITATION AND LIFE-OF-MINE PRODUCT CONSUMPTION Copper, zinc, gold, nickel, Coal, oil shale Stainless steel slag, carbon tungsten, silver, platinum group steel slag, ferro silica slag, XRT metals ferro chrome slag, non-ferrous XRT , COLOR, EM, NIR slag CONTACT XRT, EM Anthony Sacca 0427 409 670 [email protected] www.tomra.com/mining June 2017 36 AIMEX 2017 THE AUSTLIAN MINING REVIEW JUNE 2017 THE AUSTLIAN MINING REVIEW Pilbara Ports Authority 37 Growth opportunity Upgrades are under way at Pilbara Port Authority’s ports to cater for the ramp up of LNG projects as well as a resurgence of the live export industry.

Cameron Drummond Channel Risk and Optimisation Project (CROP), designed to reduce the risk of an obstruction in the Port of Port Hedland THE Pilbara region’s gigantic iron ore shipping channel and allow users to export industry of is the primary driver further optimise tonnages on their vessels. making the Pilbara Ports Authority It also involves the creation of a new (PPA) the world’s largest bulk export port “We also have emergency passing lane, extension of a authority, with the commodity accounting small tonnages deep water refuge zone, and the use of for about 95 per cent of total annual existing deeper depths along the tidally throughput. of between constrained 42km channel. Liquefied natural gas (LNG) and salt about 500,000t Together, these measures are aimed exports are the key exports rounding out to optimise channel use for port users, by the remaining 5 per cent. and 600,000t extending sailing windows and creating PPA came into existence on 1 July 2014 of copper larger separations between departing through the amalgamation of the Port vessels in a convoy. It would also potentially Hedland Port Authority and the Dampier concentrate allow additional vessels to depart on the Port Authority; stretching from the Port leaving Port tidal window when necessary. of Ashburton near Onslow in the south, to the Port of Port Hedland in the north, and Hedland which is Port of Dampier includes the future Ports of Anketell and worth about $1 Cape Preston East. Located on the West Pilbara’s Burrup In the 2016 financial year PPA exported billion annually, Peninsula, the Port of Dampier is a private a record 630 million tonnes (mt) of cargo and that’s no port that facilitates the export of mainly through its ports – Port Hedland alone iron ore (82 per cent in FY16) as well as accounting for its own record throughput small figure.” LNG (12.5 per cent), salt and other general of 460mt – returning the WA Government cargo; and mainly imports petroleum and diesel products for mining operations in a $100.5 million dividend. The Port of Port Hedland at night. Image: Pilbara Ports Authority. Combined output across PPA’s ports had the Pilbara region. steadily increased in the first few months long-term operation and development of operations on 1 April, with 22 marine pilot In FY16, Dampier exported a total of 2017 after dipping from an all-time the Port of Port Hedland. transfers in the first 24 hours of operation. 171.9mt of cargo, slightly down from monthly high of 60.6mt in December 2016 “The two helicopters are here and they 176.7mt in FY15. to 46.8mt in January this year. IMOC Update are terrific and they can carry greater Dampier VTS now carries out all By April, monthly throughput was back numbers of people. functions of traffic within port waters, up to 55mt, an increase of 3 per cent over PPA said it was progressing well with the “Also, being twin engine gives them an with new berthing protocols to facilitate the same period in 2015. development of its $70.7m IMOC. in-built added safety feature over single passenger vessels that call at the port. PPA chief executive Roger Johnston The IMOC will replace the existing, engine helicopters if an engine should fail,” This will support boutique, smaller said while iron ore remained the main outdated Shipping Control Tower and Mr Johnston said. cruise vessels of less than 150m in length focus of export by tonnage, other highly be located adjacent to the existing Port to berth at the Dampier Cargo Wharf. valuable commodities were also exported Administration building. Livestock loading ramp The First LNG bunkering operation through the ports. The facility will control the marine at Dampier was successfully completed “We routinely talk about all the big stuff, operations of the port; including vessel Due to international demand for Australian earlier this year to test the viability of but actually there are other important movements in the inner harbour through live exports PPA liaised with industry making it an option at the port. commodities that go through the port too,” the channel and offshore anchorage. to raise awareness of Port Hedland’s Mr Johnston said opportunity was there Mr Johnston said. In February 2017, PPA awarded a capability for live exports. to build the right infrastructure in place “We also have small tonnages between contract to Australian Maritime Systems “We held a live export forum to see and or provide bunkering vessels that about 500,000t and 600,000t of copper to design and install a Vessel Traffic what we needed to do to help fire up the could operate out of the port. concentrate goes out of Port Hedland Services (VTS) system at PPA’s new live export industry in the Pilbara,” Mr “It could possibly be the green shoots of which is worth about $1 billion annually, shipping control tower in Port Hedland. Johnston said. something new in terms of port traffic at and that’s no small figure. “The VTS system is a critical component “The feedback was positive, so we then Dampier.” “There is also the expectation that of the new IMOC, which would help went to tender on getting new livestock lithium exports from projects out of the manage the safe and efficient movement of loading facilities custom built.” Port of Ashburton Pilbara will add high dollar value tonnage about 6000 vessel movements through the PPA invested in the construction of a in the near future.” port each year,” Mr Johnston said. fit-for-purpose livestock loading ramp, PPA said it would take over the Mr Johnston acknowledged that this “The fit-for-purpose VTS system benchmarked with similar systems at management of the Port of Ashburton growth in export tonnages would start integrates radar, radio, CCTV and other ports. around mid-2017, following the delivery to cap off, however LNG would likely scheduling information to oversee the The moveable ramp was commissioned of first gas from Chevron’s $29 billion increase in the coming years, starting with increasing number of vessels through the in late May, and is able to be used on PPA’s Wheatstone LNG project. the imminent commissioning of Chevron’s port.” Berths 1, 2 and 3. The project includes two LNG trains Wheatstone project in the coming months. Installation and commissioning of “Previously we were only able to load with a combined capacity of 9.8 million “What we will see in the forward the new VTS system was expected to out from Berth 3 at Port Hedland, but have tonnes per annum (mtpa) for a production years is LNG ramping up especially from commence once the construction of the now expanded our ability to load livestock lifespan of more than 30 years. Ashburton as iron ore export growth caps IMOC was completed in late 2018. across all three loading berths at the port,” Mr Johnston said the multi-user port off after the commissioning of Roy Hill,” Mr Johnston said. was ideally located to service international Mr Johnston said. Helicopter Transfer Service Mr Johnston said the new ramp would LNG markets, as well as open doors to “Any increase thereafter would be ensure the safe and efficient loading of future port users and create opportunities incremental.” A contract was awarded to Aviator Group livestock onto vessels, in line with livestock for growth. to provide a new marine transfer pilot industry requirements, and that there was “The port is operational and ready for Projects service at the Port of Port Hedland. a vision to the future to further expand first gas to be pumped out, however we also Two Eurocopter EC135 twin engine PPA’s ability to facilitate the export of have to finish building the port authority The Port of Port Hedland has recently helicopters flew into Port Hedland on 25 livestock. infrastructure which includes buildings, developed a range of significant upgrades; March from QLD to improve PPA’s marine “In the future, the development of the security controls and the like, with our the construction of a new integrated marine pilot training program by allowing more Lumsden Point multi-user facility at budget of $32.5m,” he said. operations centre (IMOC), implementation passengers on each aircraft. Port Hedland will help support increased “Once completed, we will be in a position of a new loading ramp for livestock exports; Each helicopter is capable of carrying livestock exports from the Pilbara,” Mr to see what other things we can facilitate. a new helicopter marine pilot transfer seven passengers, and can reduce travel Johnston said. “It has already been designed so that service; its Channel Risk Optimisation time by up to six minutes from the helipad “PPA will continue discussions with you can have two or even three LNG Project (CROP); and the replacement of to the end of the shipping channel and livestock exporters about development exporters using the channel in the future. channel markers. back. opportunities at Lumsden Point.” “Planning for future growth is a key The projects are funded by the The aircrafts were fitted with live principle for PPA, and we strive to ensure Port Improvement Rate, a temporary tracking devices to assist the port’s CROP that any port development in the Pilbara levy charged on vessels entering and Shipping Control Tower in search and stimulates investments, supports trade exiting the harbour, which funds capital rescue situations. In May 2016, PPA received State activities and contributes to the long-term improvements necessary to sustain the The twin engine helicopters began Government approvals to deliver a $120m growth of the Pilbara region,” he said. June 2017 38 Pilbara Ports Authority THE AUSTLIAN MINING REVIEW

Pilbara Presence:

Scope Business Imaging has an extensive and vast operation in the Pilbara. Its professional and state-of-the-art offices in Karratha (LIA) and Port Hedland (Wedgefield) comprise sales, sales support, service technicians and logistics – all contained locally. Its service vehicles are also fully mine site compliant and off-road specified, which allows the team to travel to remote office locations and onsite at mining premises. Having established two locations in this region means that businesses can experience service and support that is second-to-none. Scope Business Imaging offers a guaranteed two-hour service response time for local businesses, but average considerably less, with an 85 minute response time during April 2017. At each location, the team carry stock of the machines and components, to ensure a quick turnaround time and first time fix for faults.

Printing in the Pilbara Software SolutionS: Scope Business Imaging offer clients software solutions that are completely customisable and bespoke to their business needs. Print, photocopy and document management technology is a necessity for the day-to-day running of all businesses, including Australia’s resources The products hinge around traditionally what is ‘scan print copy’ sector which often requires offices in the country’s most remote locations. Recognising the need for reliable printer servicing outside the metro area, Konica Minolta devices with software to help manage document workflows that can be integrated through apps on the machine. SCOPE Business Imaging has created the ultimate printing service solution for businesses in the Pilbara, establishing a network of offices in regional The team pride themselves on remaining at the forefront of the WA to provide local on-ground support, an industry leading two-hour service response time, and ‘First Time Fix’ quality assurance. latest technologies at the most competitive price.

file director | Perfect for document management, File Director “WE started the business back in 1986 as we saw a gap Perth, Bunbury, Port Hedland and Karratha; each office of the machine, and an all inclusive servicing, which took through Spielberg Solutions allows a business to effectively in the market for quality, prompt and reliable service to had a substantial amount of warehouse capacity for care of printer parts, consumables, labour, faults, and retrieve, file and store documents securely, compliantly and support businesses that relied heavily on printers and spare parts and consumables; so the team never ran out. preventative maintenance. efficiently. photocopiers to produce valuable documents,” SCOPE “In Northern WA in particular, where the roads get cut Everything is handled as part of this service contract, Business Imaging founder and managing director Dennis off by flooding, we’ve overcome all of that,” he said. which runs for the same amount of time as the renting PaPercut | This popular print management product allows a Bartulovic said. “In Port Hedland and Karratha we have ample stocks portion. business to track and monitor their print usage so they can identify “The rationale was to give a very quick two-hour of everything that our clients need to keep their machines Mr Bartulovic said while people could purchase the ways to cut costs and save the environment. or better response to a fault call, which would be operational. printing equipment, most people saw the benefits of measured from the customer call to when the technician “That’s been a huge bonus for us and we are the only renting to keep abreast with the latest technology. walked through the door, and deliver greater efficiency, company that operates in WA where it’s a seamless “It’s a fully tax deductable expense, where customers increased workflow, and reduced costs across their situation; where if you order a product from us in Perth get a brand new machines about every three years,” he operations. and you have branches in the regions and you have said. Perth BunBury Mandurah Port hedland Karratha “That back in the day, and even today, was highly offices in the regions as well, we can deal with you here “During that three year cycle the machines get a 80 Hasler Rd 100 Blair St, C/O Peel Thunder Football Club 4 Iron Ore St 1/985 Woodbrook Rd, impressive; people just don’t do it.” and deal with you in the regional centres through one facelift and an update, so customers get a refresh, and The standard response time in the industry generally organisation. then they have a brand new model.” Osborne Park WA 6017 Bunbury WA 6230 Bendigo Bank Stadium Wedgefield WA 6721 Karratha LIA WA 6714 averaged at between four and six hours in the city’s “Others have to go through different channels to get The company also takes this one step further, with a Ph. (08) 9201 3000 Ph. (08) 9721 4288 Dower St & Elizabeth Dr, Ph. (08) 9172 2256 Ph. (08) 9185 6106 surrounding areas, and a matter of days for regional the work dispatched in the Pilbara, or even in Bunbury vested interest training employees up in how to get the locations. for that matter.” most out of their machines. Mandurah WA 6210 Mr Bartulovic said in the metro area the SCOPE team Service calls are also handled locally so customers “It’s not just about walking in and fixing the machine Ph. (08) 9537 5400 averaged at about an hour and a half, and up to two can take comfort knowing they are talking to a person and walking away; we take the time to see whether hours up north within a 60km radius, and a next morning in their locality, with an understanding of where they are the staff have any issues, if we can help them with a service if beyond this. and what the conditions are like to get there quickly. specific task or even tailor one-touch soft settings on the “When we went up north in the Pilbara this was just “It’s not a call centre from over east which is how many machines to their environment,” he said. ‘gold’ for them, it was unique; they never had this, they other businesses operate,” Mr Bartulovic said. “It’s going that little bit extra to understand what used to wait days,” he said. SCOPE Business Imaging’s offering involved a is it that they need to make their day easier and more [email protected] | www.scopebi.com.au The other drawcard was in each of its locations in comprehensive service contract, which included the hire effective working with the equipment.” JUNE 2017 THE AUSTLIAN MINING REVIEW Pilbara Ports Authority 39

Pilbara Presence:

Scope Business Imaging has an extensive and vast operation in the Pilbara. Its professional and state-of-the-art offices in Karratha (LIA) and Port Hedland (Wedgefield) comprise sales, sales support, service technicians and logistics – all contained locally. Its service vehicles are also fully mine site compliant and off-road specified, which allows the team to travel to remote office locations and onsite at mining premises. Having established two locations in this region means that businesses can experience service and support that is second-to-none. Scope Business Imaging offers a guaranteed two-hour service response time for local businesses, but average considerably less, with an 85 minute response time during April 2017. At each location, the team carry stock of the machines and components, to ensure a quick turnaround time and first time fix for faults.

Printing in the Pilbara Software SolutionS: Scope Business Imaging offer clients software solutions that are completely customisable and bespoke to their business needs. Print, photocopy and document management technology is a necessity for the day-to-day running of all businesses, including Australia’s resources The products hinge around traditionally what is ‘scan print copy’ sector which often requires offices in the country’s most remote locations. Recognising the need for reliable printer servicing outside the metro area, Konica Minolta devices with software to help manage document workflows that can be integrated through apps on the machine. SCOPE Business Imaging has created the ultimate printing service solution for businesses in the Pilbara, establishing a network of offices in regional The team pride themselves on remaining at the forefront of the WA to provide local on-ground support, an industry leading two-hour service response time, and ‘First Time Fix’ quality assurance. latest technologies at the most competitive price.

file director | Perfect for document management, File Director “WE started the business back in 1986 as we saw a gap Perth, Bunbury, Port Hedland and Karratha; each office of the machine, and an all inclusive servicing, which took through Spielberg Solutions allows a business to effectively in the market for quality, prompt and reliable service to had a substantial amount of warehouse capacity for care of printer parts, consumables, labour, faults, and retrieve, file and store documents securely, compliantly and support businesses that relied heavily on printers and spare parts and consumables; so the team never ran out. preventative maintenance. efficiently. photocopiers to produce valuable documents,” SCOPE “In Northern WA in particular, where the roads get cut Everything is handled as part of this service contract, Business Imaging founder and managing director Dennis off by flooding, we’ve overcome all of that,” he said. which runs for the same amount of time as the renting PaPercut | This popular print management product allows a Bartulovic said. “In Port Hedland and Karratha we have ample stocks portion. business to track and monitor their print usage so they can identify “The rationale was to give a very quick two-hour of everything that our clients need to keep their machines Mr Bartulovic said while people could purchase the ways to cut costs and save the environment. or better response to a fault call, which would be operational. printing equipment, most people saw the benefits of measured from the customer call to when the technician “That’s been a huge bonus for us and we are the only renting to keep abreast with the latest technology. walked through the door, and deliver greater efficiency, company that operates in WA where it’s a seamless “It’s a fully tax deductable expense, where customers increased workflow, and reduced costs across their situation; where if you order a product from us in Perth get a brand new machines about every three years,” he operations. and you have branches in the regions and you have said. Perth BunBury Mandurah Port hedland Karratha “That back in the day, and even today, was highly offices in the regions as well, we can deal with you here “During that three year cycle the machines get a 80 Hasler Rd 100 Blair St, C/O Peel Thunder Football Club 4 Iron Ore St 1/985 Woodbrook Rd, impressive; people just don’t do it.” and deal with you in the regional centres through one facelift and an update, so customers get a refresh, and The standard response time in the industry generally organisation. then they have a brand new model.” Osborne Park WA 6017 Bunbury WA 6230 Bendigo Bank Stadium Wedgefield WA 6721 Karratha LIA WA 6714 averaged at between four and six hours in the city’s “Others have to go through different channels to get The company also takes this one step further, with a Ph. (08) 9201 3000 Ph. (08) 9721 4288 Dower St & Elizabeth Dr, Ph. (08) 9172 2256 Ph. (08) 9185 6106 surrounding areas, and a matter of days for regional the work dispatched in the Pilbara, or even in Bunbury vested interest training employees up in how to get the locations. for that matter.” most out of their machines. Mandurah WA 6210 Mr Bartulovic said in the metro area the SCOPE team Service calls are also handled locally so customers “It’s not just about walking in and fixing the machine Ph. (08) 9537 5400 averaged at about an hour and a half, and up to two can take comfort knowing they are talking to a person and walking away; we take the time to see whether hours up north within a 60km radius, and a next morning in their locality, with an understanding of where they are the staff have any issues, if we can help them with a service if beyond this. and what the conditions are like to get there quickly. specific task or even tailor one-touch soft settings on the “When we went up north in the Pilbara this was just “It’s not a call centre from over east which is how many machines to their environment,” he said. ‘gold’ for them, it was unique; they never had this, they other businesses operate,” Mr Bartulovic said. “It’s going that little bit extra to understand what used to wait days,” he said. SCOPE Business Imaging’s offering involved a is it that they need to make their day easier and more [email protected] | www.scopebi.com.au The other drawcard was in each of its locations in comprehensive service contract, which included the hire effective working with the equipment.” June 2017 40 Pilbara Ports Authority THE AUSTLIAN MINING REVIEW Best choice for quality and experience

PHS provides high-quality hydrographics services for coastal and marine infrastructure.

PRECISION Hydrographic Services these suffer from siltation, thereby reducing Services to international and local issues affecting the industry, meaning its (PHS) has established itself as a leading the depth of water available to shipping. standards for accuracy and object detection. clients benefit from cost-effective solutions hydrographic survey services company, Consequently, a burden of responsibility PHS operate under a rigorous and in an industry facing ever changing dedicated to providing the highest quality is placed on port authorities to ensure evolving quality control process to ensure regulatory and financial issues. hydrographic services worldwide. that hydrographic surveys are undertaken consistent quality of deliverables and PHS can be contacted when planning a The global economy is changing, and to monitor charted depths, ensure depth continued improvement of processes. coastal or marine infrastructure project; this with it the demands on ports are changing accuracy is maintained, and underwater For the past three years, PHS has enables clients to make informed decisions too. hazards are identified and avoided. worked closely with the Pilbara Ports in areas of hydrography, minimising the To meet the increasing demands for PHS specialises in the acquisition, Authority (PPA) to maximise the export potential outlays due to lack of information volume and efficiency, ships are becoming interpretation and reporting of seabed capability and increase safety by conducting in that area of a project. larger and with maximum loading, under information. high accuracy, high resolution surveys to For more information, PHS can be keel clearances are diminishing. The PHS team are skilled certified measure the depth and identify any dangers contacted on 08 8351 1203 or through its Most ports and harbours have dredged hydrographic surveying professionals to navigation in the Port Hedland port. website: channels, berths and anchorages; however, providing Level 1 Certified Hydrographic PHS has a vast understanding of the www.precisionhydrographic.com.au. JUNE 2017 THE AUSTLIAN MINING REVIEW Whitehaven Coal 41

“We are in a significant growth phase and have quadrupled our output in the last four years.” All Images: Whitehaven Coal. Growth spurt On the back of increased seaborne coal prices, Whitehaven banked record revenue during the first half of the 2017 financial year which enabled the company to pay down more than $300 million of debt.

Maules Creek Cameron Drummond The $701m Maules Creek open cut WHITEHAVEN Coal is Australia’s largest mine, 55km northwest of Gunnedah in independent coal producer, with five northern NSW, contains coal resources operating mines in North West NSW. of 660 million tonnes (mt), with 510mt of The operations have a combined reserves for a mine life of more than 30 annual output of 20.1 million tonnes per years. annum (mtpa); however Whitehaven It commenced operation on 1 July 2015, is undertaking expansion works at its and in FY16 the mine produced 7.8mt flagship Maules Creek operation to of run of mine (ROM) coal, more than increase its saleable coal output to 23mtpa guidance of between 7.1mt and 7.3mt. by the 2019 financial year. Following a production ramp up, by the Thermal and metallurgical coal is end of the March 2017 quarter Maules produced from one underground mine, Creek was operating at a rate of 10.5mtpa Narrabri, and four open cut mines at and was on target to achieve its FY17 Maules Creek, Tarrawonga, Werris Creek guidance of between 9.5mt and 9.8mt. and Rocglen in the coal-rich Gunnedah Whitehaven chief executive Paul Flynn Basin. expected Maules Creek to ramp up to its Coal is transported by rail to the Port full production rate of 13mtpa by 2019. of Newcastle and shipped to customers “Maules Creek has been a big step mainly in Japan, Korea, Taiwan and India. up for the company, and is a forty year The company employs more than 1400 asset that was brought on fairly cheaply personnel, with about 75 per cent from the relative to other greenfields projects in local communities near its operations, and Underground at Narrabri. the last five to ten years,” he said. has injected more than $850 million to the “There’s one more fleet that is required region since 2012. of $56/t – an incredible $41/t in earnings behind the improved margin for the half. to come online to reach nameplate Record revenue in H1 FY17 of $823.5m before interest, tax, depreciation and Average received thermal and capacity, which will arrive in about 12 turned Whitehaven a net profit after tax amortisation (EBITDA). metallurgical coal prices for the H1 FY17 months time.” of $157.5 million, a bumper margin when To put this in perspective, the company were $US78/t and $US90/t respectively, Mr Flynn said the cost of Maules Creek compared to H2 FY16’s profit of $12.7m made a $14/t EBITDA margin on sales in and in the December quarter had risen to would be repaid within the first two years and $7.8m in H1 FY16. both halves of FY16. $US92/t and $US104/t. of its operation. In H1 FY17 Whitehaven sold 7.8mt of The strong rise in coal prices in the last Whitehaven used the funds to reduce coal at $97 per tonne (t), at an average cost September quarter was the driving force net debt by $231.1m and a further $105m of its senior bank facility debt was repaid. (continued on page 42) JUNE 2017 42 Whitehaven Coal THE AUSTLIAN MINING REVIEW

(continued from page 41)

More than $800m worth of economic benefits have poured through the region in the past four years.

Narrabri growth of the town.” The company said it would also wait Whitehaven’s only underground operation, until Maules Creek had ramped up to its the Narrabri coal mine is 17km south of its nameplate capacity before commencing namesake town and commenced operation works at Vickery. in 2012. “The timing for start up of the Vickery It contains resources of 720mt and project remains market dependent, but will reserves of 216mt with a mine life of more likely occur once Maules Creek has been than 22 years. fully ramped up to its 13mtpa capacity,” the In December 2015 the NSW Department company said. of Planning and Environment granted approval to increase Narrabri’s annual Community development production limit from 8mtpa to 11mtpa. In FY16 the mine produced 6.9mt of ROM Over the past four years Whitehaven coal, an 11 per cent decrease on FY15 due to injected more than $800m into the North two longwall changeouts during the period. West NSW region in the way of local Whitehaven said it was on track to meet employment, community projects, and its FY17 guidance of between 8mt and 8.3mt. support for local businesses. Mr Flynn said Whitehaven’s focus was During the March 2017 quarter, coal The Gunnedah CHPP will be moved from the outskirts of its namesake town to Whitehaven’s production was constrained in order to upcoming Vickery project site. that the whole community would benefit undertake another longwall changeout from from the company’s presence. LW106 to LW107. and produces about 1.2mtpa of thermal coal a joint venture to develop the project, with In 2016, Whitehaven opened a regional It was completed by mid-April, and from 10mt of resources and 4mt of reserves. the company hoping to sell a 30 per cent office in the centre of Gunnedah to improve reflected a lower production rate of 1.33mt The mine produced a record 0.58mt of stake to a high quality offtake partner. communication between the company and for the quarter. ROM coal in the March quarter compared to “Now that we are a much bigger company the surrounding community that made up Whitehaven said Narrabri’s next 0.36mt in the previous corresponding period. we are less driven by the investment itself 75 per cent of Whitehaven’s workforce. changeout was scheduled for March 2018, Rocglen, nearing completion, had been but are more driven by inviting high quality “Using an annual feedback survey with with the development of LW108 advancing flagged to move into a rehabilitation phase counterparts to join us in our investments,” the local community we found that people on schedule. in two years time after coal was exhausted. Mr Flynn said. were after more information about our Construction was flagged for the second operations as we are the largest employer Gunnedah open cuts Werris Creek half of 2019 at an estimated capital in the region,” Mr Flynn said. expenditure of between $600m and $700m “We addressed this by putting a regional Whitehaven’s three open cut mines near the Located 4km south of its namesake town, across a two year period. office in the mains street of Gunnedah town of Gunnedah – Rocglen, Tarrawonga the Werris Creek open cut mine produces up The NSW Government had approved where people can come in and communicate and Werris Creek – performed well during to 2mtpa of thermal coal and employs about Vickery as a 4.5mtpa open cut metallurgical with our business and address any issues FY16, producing 5.8mt of ROM coal. 70 personnel. and thermal coal operation, however or concerns. Mr Flynn said the mines had produced It has coal resources of 18mt and reserves Whitehaven was seeking to expand the scope “We believe it essential to demonstrate to enough cashflow for Whitehaven to focus on of 14mt, with a mine life of about three years. of the project and increase its nameplate the community that the region is benefitting developing its larger projects. Whitehaven said production in the March capacity up to 10mtpa. by having our operations in the area.” “Gunnedah open cuts have done a fantastic 2017 quarter was expected to be significantly Work on the project’s Environmental In 2016, Maules Creek picked up the NSW job at underpinning our business while we higher than earlier in FY17 as the mining Impact Statement (EIS) for the expanded Minerals Council award for Community have been in our construction phase.” sequence entered the bottom seams of the 10mtpa mine had progressed during the Excellence in Aboriginal Employment and Mr Flynn said Whitehaven had made a open cut. March quarter and was due to be lodged Enterprise Development for its commitment decision to re-open one of its shuttered open before the end of the June this year. to employing a minimum 10 per cent cut mines at Gunnedah due to favourable Tarrawonga Mr Flynn said the company was looking Indigenous workforce. market conditions. forward to gaining approval for the expansion “We set ourselves a target of 10 per cent “We have a small open cut mine called Located 16km east of Boggabri, Tarrawonga as it would not only ramp up production, but Indigenous employment within five years Sunnyside and have decided to move back commenced production in 2006 and produces also benefit the community. and are well over that target already,” he into the mine as we see a good opportunity a mix of thermal and coking coal for export. “This is a significant high quality resource said. to finish the remaining 1mt of coal, complete Coal resources of 76mt and reserves of that we think economically improves the During FY16 Whitehaven supported 81 the rehabilitation and close the operation for 39mt support a mine life of more than 15 quality of the project by scaling it up to community projects via donations to local good.” years at a rate of up to 3mtpa. 10mtpa.” charities, as well as $6.4m in voluntary Sunnyside had been on care and The mine produced 0.653mt of ROM coal “Part of the expansion plan is to also planning agreement payments to local maintenance since 2012 following a strategic in the March quarter compared to 0.576mt decommission the current prep plant councils to supply improved services to local review of operations due to lower realised coal in the previous corresponding period. near Gunnedah and construct a dedicated residents. prices. washing facility up on the Vickery site itself.” At Narrabri, Whitehaven has pledged Gunnedah’s operations were forecast to Vickery project Preparing coal on site at Vickery would more than $20.6m in payments to the local produce a total of between 5.2mt and 5.5mt remove the need for road haulage and give council for community projects. ROM coal during FY17. Whitehaven’s Vickery project is a mixed Whitehaven’s Tarrawonga mine rail access This included $5m to upgrade the underground and open cut coal mining to the wash facility. Narrabri Airport, $2m towards the Baan Rocglen operation with resources of 505mt and “This provides two big bonuses for the Baa town water project, $1.5m for the reserves of 230mt. community by removing truck haulage redevelopment of the Narrabri swimming Located 28km north of Gunnedah, Rocglen Whitehaven said a number of discussions from the roads completely and removing the pool and $1.5m for upgrades to Narrabri’s commenced production in November 2008, were taking place regarding the formation of prep plant near Gunnedah to allow further central business district. JUNE 2017 THE AUSTLIAN MINING REVIEW Whitehaven Coal 43 JUNE 2017 44 Whitehaven Coal THE AUSTLIAN MINING REVIEW Drilling success at Whitehaven

AN associated entity of the GDS group of companies, Australian Drilling Systems (ADS) designs and manufactures directional drilling systems and delivers contract underground inseam directional drilling services. ADS has supplied drilling systems and training to various clients globally and domestically, having multiple systems in operation in the Hunter Valley in NSW, the Bowen Basin region in Queensland, and Shanxi province in China. ADS specialises in directional drilling for gas and water drainage, exploration, barrier proving and compliance coring, and is equipped with the latest survey systems and experienced staff to prepare all flight plans, process and validate recorded data and produce end of hole reports. The company draws on the collective experience of individuals involved with the development of underground directional drilling and the underground mining industry in general for the past 20 years. The team remains committed to providing the safest, most accurate and efficient drilling service to the underground coal mining industry. Supplying drilling services to Whitehaven’s Narrabri coal operations since early 2012, ADS has met Whitehaven’s drilling programs requirements. Gas drainage, compliance coring (out ADS has been supplying to Whitehaven Coal’s projects since 2012. to 1000m), and exploratory drilling have been the core services provided during success and is committed to continuing the underground directional drilling sector and deliver on time and on budget. this time. our strong association into the future,” both domestically and internationally. “We have created a culture that demands “The company is proud to be given the ADS chief executive Troy Vitnell said. “We structure our project teams to address of people to actively seek opportunities for opportunity to contribute to Whitehaven’s “Our aim is to remain at the forefront of the client’s specific priorities, to control risk improvement in performance.” JUNE 2017 THE AUSTLIAN MINING REVIEW Kwinana Lithium Plant & Greenbushes Mine 45

“A refurbishment of an existing plant and getting it into production is really our bread and butter, which we did very successfully in 2010 when we brought on Carosue Dam.”

“Greenbushes is one of the best lithium resources currently available on Earth and the recently announced expansion to double its current capacity is a key component of Albemarle’s strategy to deliver reliable production.” A jobs bonanza It’s an exciting time for the WA lithium sector. On top of the emerging spodumene projects shooting up across the State, construction at Tianqi Australia’s $400 million Kwinana Lithium Plant is now underway, and an expansion to double production at Talison’s Greenbushes mine has received the green light.

Elizabeth Fabri up to 24,000 tonnes per annum (tpa) of Australia) were also confirmed, which would large concrete foundation pours completed,” lithium hydroxide. see the mine double its LCE capacity from Tianqi Australia managing director Phil It will also create up to 500 construction 80,000mtpa to more than 160,000mtpa. Thick said. WITH lithium demand forecast to skyrocket jobs at peak and more than 115 full time “This work will continue through to over the next few years, news of Tianqi positions once operational. Kwinana construction August/September. Lithium Australia’s plan to develop a Construction on the plant was moving “Work has just commenced on the NPI large-scale lithium plant in Kwinana, south fast, and expected to be complete at the end In October 2016 after a five year development (Non-Process Infrastructure – main office of Perth, received a warm response across of 2018, with production ramping up in 2019. phase, earthworks began at the Kwinana building, control room, training centre, the country. In March, rumours of an expansion at Lithium Plant site, with Tianqi now moving laboratory, warehouses) and will continue The project will process spodumene Talison’s Greenbushes mine (a joint venture on to the next phase of construction. for 12 months.” concentrate from Talison Lithium’s between Albemarle and Tianqi Lithium, “Civil/concrete works have now Greenbushes mine, with capacity to produce the parent company of Tianqi Lithium commenced and are well underway with first (continued on page 46)

Construction at the Kwinana Lithium Plant was now underway. Images: Tianqi Australia. JUNE 2017 46 Kwinana Lithium Plant & Greenbushes Mine THE AUSTLIAN MINING REVIEW

(continued from page 48)

“Everyone in WA seems to be delighted that we are building something of this scale in the middle of the downturn, and creating much needed employment in Perth.”

The Greenbushes mine produced more than 30 per cent of the world’s lithium. Image: Talison. Mr Thick said major pieces of equipment, Future growth such as the mill, calciners and crystallisers, were ordered last year and would be Mr Thick said once the Kwinana Lithium delivered towards the end of 2017. Plant and the Greenbushes expansion were “Major contracts for structural steel, up and running a further expansion at piping and mechanical are about to be let,” Kwinana could be on the cards. he said. “The mine will have the capacity to feed a “Approximately $134m has been further expansion,” he said. committed to date.” “The Kwinana plant is designed to be West Perth-based MSP Engineering was expanded easily in the future, though awarded head contractor for the project and no decisions have yet been taken on any would subcontract work to local businesses expansion.” including Georgiou Group, which was The Kwinana plant would also play handed a $17 million contract in April. host to a number of industry research and Georgiou Group would to build Tianqi’s development activities as Tianqi planned new southern hemisphere headquarters; to further its Research and Development the third contract it had secured on the (R&D) activity both in China and WA project. through partnerships with WA universities. Mr Thick said he was pleased to have “We are in discussions with a number of received strong support from the local WA universities and have had a number of community and State Government. detailed meetings with UWA,” he said. “Everyone in WA seems to be delighted “We are looking at a long term plan that that we are building something of this potentially includes research, scholarships, scale in the middle of the downturn, and exchanges and general collaboration. creating much needed employment in “This is work in progress.” Perth and particularly the Kwinana area,” Globally, Tianqi forecast demand for he said. lithium, particular lithium hydroxide, to be “Also universal support for a new ‘value very strong and said currently short term adding’ industry in the renewal energy supply was not meeting the need. space will position WA at the top of the “The Greenbushes expansion and world in the booming lithium industry.” Kwinana production will be critical to meet global demand,” Mr Thick said. Greenbushes expansion The Kwinana Lithium Plant design. “We see a short term gap over the next two years. Talison is breathing new life into its us up for a successful expansion of the more than 25 years and tantalum since “Views differ on what happens after that Greenbushes mine with its biggest Greenbushes mine,” Albemarle Lithium the 1940s. as there are clearly going to be a number of expansion to date. and Advanced Materials president John Today the mine produced more than 30 new projects coming on stream over the next With a mine life of about 40 years, Mitchell said. per cent of the world’s lithium. five years to increase supply significantly.” the Greenbushes mine was estimated to “Greenbushes is one of the best lithium An estimated 200 jobs would be created Mr Thick said Tianqi remained committed contain the world’s largest known reserves resources currently available on earth in peak construction and between 40 and 60 to bringing its new production on as soon of lithium spodumene minerals with and the recently announced expansion operational positions at the new production as possible and that quality and reliability unique properties. to double its current capacity is a key plant and crushing plant worth about $320m. would be key to the future. The mine currently produced 65,000 component of Albemarle’s strategy Commissioning of the expansion was “This is why the Kwinana plant is tonnes of lithium carbonate equivalent to deliver reliable production for our expected to begin in the second quarter of targeting to produce the highest quality a year, which was forecast to more than long-term partners.” 2019. lithium hydroxide in the world,” he said. double under the new expansion. The historic mine, 250km south of Production at the project was going “This will continue to be demanded by top “Our operational excellence, Perth and about 90km south east of the strong and meeting all of the joint venture’s end customers and will command a premium engineering capability and our talent set Port of Bunbury, had produced lithium for requirements, Mr Thick said. price.” JUNE 2017 THE AUSTLIAN MINING REVIEW Kwinana Lithium Plant & Greenbushes Mine 47 GEA supplies key technology for Kwinana lithium plant

It’s been an eventful period for German based With this in mind, it came as no surprise GEA was reach the final cooling temperature,” he said. technology group GEA. delighted to win a leading role in the development “While further cooling down the solution, additional In December last year, the leading engineering of Tianqi’s mega lithium project. glauber´s salt is crystallizing. firm was awarded a lucrative contract by MSP The project involved a number of parts; extensive “The overall loop has a highly sophisticated Engineering to equip the new ultra-modern Kwinana test work at GEA facilities in Europe; followed design in order to minimize incrustations at the Lithium Plant for Tianqi Lithium Australia. by engineering design, fabrication, testing and cold surfaces of the heat exchanger which has The contract was to design, manufacture, supply commissioning of the key process equipment to the highest supersaturations for the glauber´s salt. and commission the evaporation, crystallisation produce a pure lithium hydroxide monohydrate “The glauber salt slurry is fed directly into a and drying technology for the plant, and further (LiOH.H2O), including packaging, with a by- centrifuge then onto a polishing filter before it works on site if Tianqi followed through with a future product of dried sodium sulphate. starts the sodium sulphate crystallisation leg expansion. GEA Australia Commercial and Regional area sales using forced circulation heated by MVR and onto The Tianqi Lithium Corporation, which controls a manager Gary Wheatley said the supply package another filtration process. majority stake in the Talison Greenbushes mine – started with the PLS Evaporator unit. “The filters mother liquor is then put through the world’s premier producer of lithium concentrate “This is a falling film evaporator complete with another crystallisation stage to produce raw from spodumene – was building the downstream shell and tube heat exchangers and single stage Lithium hydroxide monohydrate using forced processing plant for lithium hydroxide. MVR (Mechanical Vapour Recompression),” Mr circulation crystallisation and again heated using Once constructed, the plant would convert around Wheatley said. MVR (two fans in series) running under vacuum 161,000 tonnes per year of spodumene concentrate “There, the vapours are compressed to a higher through the surface condenser.” into 24,000 tonnes of lithium hydroxide, for use in pressure and therefore temperature level which Mr Wheatley said a major factor contributing to the growing global market for lithium ion batteries. enables them to be re-used as heating steam GEA winning the contract was these state-of- “Lithium is the lightest metal known to man,” GEA within the same system. the-art evaporation and crystallisation processes stated. “Appearing condensates are collected and pumped that proved more energy efficient than that of the “This third element in the Periodic table is powering to the glaubers salt melter in order to be partly used competitor. the modern world, with today’s lithium batteries as dissolving water.” “Besides this economic advantage the test keeping our medical, consumer and industrial In addition, GEA’s glaubers salt cooling crystallisation work was an important part of the GEA tender electronic devices switched on, and storing energy used draft tube crystallisation in a flash cooling step conducted by our engineering Laboratory team in generated by electricity grids. using deep vacuum. Montigny, France and supported by our process “But it is the use of lithium-ion batteries in the “The material is transferred level controlled into the engineers/experts in Duisburg and Milan,” Mr next generation of electric and hybrid vehicles that second glauber´s salt crystallizer, the FC (Forced Wheatley said. will make the biggest impact on the global lithium Circulation) type crystallizer is a surface cooling “These factors and our close relationship with the market.” crystallizer using chilled water/glycol mixture to client enabled us to obtain the award.”

More information on GEA Engineering and its services can be found at www.gea.com, or by calling +61 8 9429 8829.

[email protected] JUNE 2017 48 Iluka THE AUSTLIAN MINING REVIEW

“We’re now resourced more appropriately for key business priorities over the coming years, and there will be a continued focus on lowering the cost base of the company.”

The Sierra Rutile acquisition was finalised in December 2016. Image: Sierra Rutile. A company on the rise After experiencing significant financial losses during 2016, international minerals sands company Iluka Resources is back on track with the Sierra Rutile acquisition now under its belt, and a handful of advanced production and exploration opportunities in progress to deliver future growth.

Mr O’Leary said Iluka’s strategy for Elizabeth Fabri generating a satisfactory return from the mine was to invest in increasing its capacity. ILUKA Resources is finally making a “This increase will come at a capital comeback. expenditure cost estimated at ~ $US220 At the end of 2016, the company reported million for the three mine expansion an 11.4 per cent decline in revenue brought projects,” he said. on by low market conditions from the “This is inclusive of the $US60 million minerals sands sector, which was partially planned to be spent in 2017 and 2018 responsible for a total reported loss of $224 on improving safety and efficiency; and million after tax. increased capacity at the mineral separation However, higher commodity prices this plant. year have generated a substantial increase “We are confident we can achieve the in revenue for the global miner. reduction in unit cash costs Iluka has In the March quarter, Iluka reported a guided, with the prospect of robust margins 130 per cent increase in total zircon, rutile and cash flows.” and synthetic rutile sales volumes relative Since taking over the mine in December, to the same period in 2016, and a 118.5 per Iluka has been incredibly busy at the project, cent increase in zircon, rutile and synthetic and sent some of its most experienced rutile revenue. technical and operational personnel to the During the quarter, Iluka also produced ground. 154,000 tonnes (t) of heavy mineral Following a visit to the mine in March, concentrate and processed 366,000t. Iluka chairman Greg Martin said he “The 2017 financial year has commenced was impressed and encouraged by the more favourably,” managing director and local workforce and manner in which chief executive Tom O’Leary said. Hamilton plant operations will be suspended in October. Image: Iluka Resources. Iluka personnel had embraced the new “Sales volumes and revenues have more requirements of operating effectively and than doubled by comparison to first quarter (excluding Sierra Rutile) are expected to Sierra Rutile acquisition safely in a new country. 2016; prices in the first quarter for both be approximately $20 million lower on a “These activities have included developing zircon and rutile were higher than average like-for-like basis compared to 2016,” Mr At a total cost of $389 million plus assumed key relationships at all levels of government, 2016 levels; and [Iluka] has generated O’Leary said. $80 million of net debt, the Sierra Rutile with local communities, including strong free cash flows over the quarter, “Just as importantly, we’re now resourced merger was an important milestone in Paramount Chiefs, with non-governmental which have been applied to the repayment more appropriately for key business reshaping Iluka. organisations as well as establishing initial of debt, which has reduced from $506 million priorities over the coming years, and there The acquisition has effectively doubled links with international agencies that at 31 December to $403 million.” will be a continued focus on lowering the cost Iluka’s rutile resource base, with the Sierra provide social and economic development Mr O’Leary joined the company as chief base of the company.” Leone operations set to produce 150,000t support to the country,” Mr Martin said. executive in September last year with the Operating since 1998, Iluka has a diverse in 2017, and expansion potential in future However despite the positive feedback, aim of bringing the company’s financials portfolio, with an iron ore royalty asset, years up to 240,000tpa. production for the March quarter was lower back to a healthy state. and projects in WA’s Perth Basin, South In the company’s recent reserve and than expected due to a reduced level of One of his first decisions as head of the Australia’s Eucla Basin, Victoria’s Murray resource statement, it reported an inaugural surface mobile equipment available prior to company was a review of the business; a Basin, and Sri Lanka. rutile reserve of 3.9 million tonnes (mt) for the commissioning of the new fleet which led result was 90 out of 440 support roles being In December, Iluka all-cash acquisition Sierra Rutile, equating to a 15 year mine life. to limited ore supply volumes. made redundant. of London-listed company Sierra Rutile was It also confirmed potential to add to the In the March quarter, Sierra Rutile “As a consequence of these changes, also approved, marking its entrance into the resource and reserve based through further produced 35,700t of rutile, 11,600t of Iluka’s 2017 non production cash costs African market. delineation drilling. ilmenite and 300t of zircon. JUNE 2017 THE AUSTLIAN MINING REVIEW Iluka 49 JUNE 2017 50 Iluka THE AUSTLIAN MINING REVIEW

Hamilton plant suspension which was suspended in May 2016. (continued from page 48) The established project in the Eucla On 28 March, Iluka announced it would Basin, South Australia, was the largest be suspending operations at its Hamilton known global source of zircon. mineral separation plant in Victoria from Mr O’Leary confirmed a decision to October in an effort to further streamline re-commence production was expected operational costs. before the year’s end. Over the last few years, the plant had Further afield, the Puttalam mineral been processing stockpiled ore from the sands deposit in Sri Lanka was being Murray Basin mining operations that closed assessed, with a pre-feasibility study being in 2015, and the Jacinth-Ambrosia operation undertaken, along with discussions with the in South Australia. “Our sales volumes Sri Lankan Government to secure a binding In March, Iluka announced the for the six months’ investment agreement. Jacinth-Ambrosia feed would now be In addition, the company also had a processed at the Narngulu facility in WA, ending 31 March number of exploration projects in the works meaning the Hamilton plant would now are the largest in Kazakhstan and Canada. only process the remaining heavy mineral concentrate from the Murray Basin, which for that period 2017 outlook was expected to be exhausted by October since 2010/11.” 2017. Key areas of focus for the rest of the 2017 Iluka chief operating officer Steve calendar year included the potential Wickham said the company intended to expansion of the Sierra Rutile operation, recommence processing operations at Heavy mineral concentrate stockpiles at Jacinth-Ambrosia. Image: Iluka Resources. a sustainable business review to further Hamilton once concentrate became available reduce costs and improve productivity, and from the pending Balranald development. and will continue in line with long-term said. marketing contracts to underpin the Cataby “In light of the timing for that planning arrangements.” “In the 2017 capital expenditure guidance development. development, the decision to suspend of approximately $260 million, approximately This year, non-production costs were operations at Hamilton once the Victorian Planned new production $150 million related to Cataby. already down $70 million from 2016 through stockpile has been exhausted is the most “While a proportion of this – reduced exploration activity and research cost efficient configuration of the company’s Over the next few years, Iluka has a huge approximately $20 million – will be spent on and development, and lower corporate assets,” Mr Wickham said. task ahead to bring its next round of projects detailed engineering work and land access overheads, while the zircon market was now He confirmed that the suspension was in into production; Cataby, Balranald and arrangements in 2017, the expenditure of in a sturdy position. no way reflective of the economic conditions Puttalam. the remaining amount will depend on the Mr O’Leary said the market was now in Victoria, and was purely made from a North of Perth in WA, Cataby is a chloride timing of a development commitment.” stronger and demand was more robust than commercial standpoint. ilmenite deposit with associated zircon and Balranald was the next project in the the company had seen in years. The suspension would result in 60 rutile production and a mine life of about 8.5 development pipeline, which had now also “In zircon, we’ve had two consecutive redundancies. years. completed a definitive feasibility study. quarters of strong sales, in an environment “The company acknowledges that this Iluka recently completed the definitive The project comprises two rutile mineral where prices have increased,” he said. will be a difficult time for affected employees feasibility study for the project, and sands deposits in the northern Murray “Our sales volumes for the six months’ and will provide whatever assistance it environmental approvals and amenity Basin, NSW. ending 31 March are the largest for that can, including counselling, redeployment agreements continue on schedule. In 2016, Iluka completed a field trial on period since 2010/11. and employment placement support,” Mr Once the project received the green light, an unconventional mining method to access “The US$50 per tonne increase on Wickham said. concentrate produced at the site would be the deposits, and further evaluative work contracted tonnes, effective mid-February, “The company’s rehabilitation of former processed at the Narngulu plant. was planned for this year. has been accepted by customers and provided mine sites in Victoria is not affected by “Discussions with existing and potential Iluka was also looking at restarting support for spot sale prices materially the suspension of operations at Hamilton; customers are progressing,” Mr O’Leary mining at the Jacinth Ambrosia operation higher.” JUNE 2017 THE AUSTLIAN MINING REVIEW Centennial Coal 51

“We are quietly optimistic the global market has stabilised and as a result export prices will be maintained and domestic sales will be sustained by high electricity prices.”

Underpinning growth With extension projects at Airly and Springvale in the works, Centennial Coal is in a comfortable position to further its NSW presence. Elizabeth Fabri spoke to newly minted managing director and chief executive Mick Cairney about his focus for the company over the next few years.

environmental footprint. Springvale to improve upon the water quality of material from a holding cell in a reject We will be adding a stronger engineering compliance conditions required by the consent. emplacement area impacting the surrounding approach to our health and safety and Importantly, the Springvale Water environment, and coal fines also entering environmental improvement strategies. Treatment Project underpins the future the Wollangambe River within the Blue The value of company-wide improvement operations of Springvale and Mt Piper Power Mountains National Park. strategies across critical business functions Station, secures more than 600 local jobs and From the day of the incident, Clarence cannot be underestimated and we will provides energy security for 15 per cent of engaged a specialist team to oversee an be reviewing our current position and NSW’s energy needs. extensive clean-up operation that operated implementing reforms as required. The Department of Planning’s Assessment for 12 months in extremely rugged conditions report has recommended approval, with the and cost $2 million. Q. In December, Airly received approval appropriate conditions, and has referred Prior to this incident, Clarence had a for its mine extension project. What has the project to the Planning and Assessment clean record, with no conviction for any Centennial been up to at the site since? Commission (PAC). environmental offence. The PAC held a meeting in Lithgow on As a result of this environmental Airly mine has been operating since 2010. 17 May receiving huge support from the incident both the EPA and OEH commenced Airly was granted renewal of its State consent local community and we anticipate a PAC prosecution proceedings (May 2016) in the in December last year and secured Federal Determination by mid June. Land and Environment Court (LEC) against approval this month (May). Clarence, a subsidiary of Centennial Coal. At These approvals represent another two Q. How is the Centennial team working the earliest available opportunity Clarence decades of mining at Airly and provide security towards meeting guidance? entered a plea of guilty to the charges. for the existing workforce. The sentence hearing was held in the Airly is currently only mining 800,000 LEC on 8 May and judgement has been The Centennial team pulled together to tonnes annually and the consent provides for reserved. manage costs and lift productivity due to the up to 1.8 million tonnes, therefore Centennial long period of poor market conditions. We will look at opportunities to increase production Q. How has the global coal price impacted You were appointed Centennial’s new developed our own Step Change Productivity Q. and employment if we are confident the Centennial’s performance this year? managing director and chief executive in program and placed focus on process current market conditions will continue. May. How are you finding the role so far? engineering. 65 per cent of Centennial Coal’s production is Q. In April your Springvale project Automation of certain parts of the supplied to NSW power stations meeting more I commenced in the role as managing director received approval to increase production. production systems was also implemented. than 40 per cent of the States fuel needs. The and chief executive of Centennial Coal on 1 How important are these approvals and Centennial utilises a wide ranging portfolio balance is exported to established long-term May. I have been with the company for 15 what are your plans for the Springvale of different mining systems so a great deal customers in Korea, Japan and Taiwan. years and during this time managed four of Water Treatment Project? of work was undertaken to seek out short We are quietly optimistic the global market Centennial’s mines and also headed up health, term gains, but also establish a medium term has stabilised and as a result export prices safety, environment and community across the Springvale was recently granted an approval strategy of continuous improvement; we have will be maintained and domestic sales will be group and, more recently, was Centennial’s to increase manning, production and the some exciting new possibilities scheduled out sustained by high electricity prices. executive general manager operations. coal stockpile capacity. Improvements to 2020. It is a privilege to be able to serve in this role made at Springvale necessitated increasing I am pleased to say that our teams across Q. What is your outlook for Centennial for with our dedicated, professional and highly these elements in readiness for market all of our operating mines delivered records the second half of 2017, and beyond? skilled teams. Also, working with our parent opportunities and to account for employees for production and productivity. Whether it is company Banpu PCL has given Centennial redeployed from Angus Place mine after it daily, weekly, monthly or annually, all sites Our operating mines are well poised to exposure to diversity of culture, systems and was placed on care and maintenance in 2014. have contributed. deliver on their commitments this year. markets that have added value to Centennial. When securing Springvale’s planning We will be investigating and implementing My focus will be on operational excellence consent (October 2015) Centennial Q. How has Centennial responded to the responsible growth plans that are assessed by using technological systems, solutions committed to significantly improve the Clarence Colliery environmental incident? as beneficial. and innovations to achieve efficiencies and quality of water discharged and this Centennial has good opportunity for reach key business targets across the Group. commitment was incorporated into our Centennial Coal and Clarence Colliery deeply organic growth that can now be underpinned I understand the value of maintaining our conditions of consent. regret the 2 July, 2015 environmental incident by our new benchmarks of productivity and social license to operate and the importance To deliver on this commitment, Centennial and have apologised for its occurrence. cost management that we have strived hard of environmental excellence and compliance, and EnergyAustralia are proposing to build This environmental incident at our to achieve, and will continue to improve and will be working to ensure we minimise our a water treatment facility which will enable Clarence Colliery involved the overflow upon. JUNE 2017 52 Centennial Coal THE AUSTLIAN MINING REVIEW REMA TIP TOP increases Australian footprint IN the current market, mining suppliers and contractors are facing increasing difficulties meeting operational demands with greater budget constraints; however REMA TIP TOP is bucking that trend. It was with a view of business sustainability, and long term strategic growth that REMA TIP TOP merged with ConvaTech in 2016. What was born of that merger was the largest total conveyor maintenance solution provider in Australia. REMA TIP TOP Industry Australia general manager Craig Philpotts said the organisation’s continued focus on local expertise was vitally important. “We are positioned across Australia in all the industry hotspots,” Mr Philpotts said. “This allows us to partner with the major mining houses across all their national operations. “Strong, meaningful partnerships are one way of delivering increased savings and efficiencies to our customers, but it’s a multi-pronged strategy. “Our innovative approach to delivering product and service solutions specifically tailored to our customers’ needs is how we set ourselves apart. “From covering the conveyor maintenance and component supply for the entire coal loading facilities in the Port of Newcastle, to servicing more than 300km of conveyor systems in the Pilbara, we align our operations with Rema Tip Top combines global strength with local experience. the objectives of our customers to deliver increased asset availability and reduced merger. “Our people, and our product “Our ongoing strategy is to meet every costs over their lifetime.” “REMA TIP TOP, together with manufacturing in Europe, Asia, America need of our customer with innovative and REMA TIP TOP Asia Pacific chief ConvaTech has accomplished a holistic and Africa, paired with our local service high quality product and engineering executive Christian Grueterich said geographical footprint in the Australian offering will further differentiate us solutions, and we are confident that this sustainability was a key factor in the market,” Mr Grueterich said. within the Australian market. continues to be valued by our customers.” JUNE 2017 THE AUSTLIAN MINING REVIEW Aurizon 53

“The expected impact to coal volumes will be 12-14mt, reducing FY2017 tonnage guidance to 190-200mt (from 200-212mt).”

Standing strong

Aurizon is experiencing a difficult few months as it deals with the structural and financial damage to its Central Queensland Coal Network caused by Cyclone Debbie, but under the new leadership of ex-Rio Tinto executive Andrew Harding, the company’s strength cannot be questioned.

markets in India, Taiwan, South Korea, Elizabeth Fabri Japan and China through its fleet of about 600 active locomotives, 15,000 wagons, FORMER Rio Tinto Iron Ore chief extensive road network of vehicles, and 40 executive Andrew Harding took over the depots across the five mainland States. Aurizon reins in December; and has since The Central Queensland network has made a wave of advancements. a nameplate throughput of 308 million With close to 25 years experience as tonnes (mt) per annum, and last financial an executive in the resources industry, year hauled 226mt. Mr Harding also brings a fresh and Aurizon was also the country’s largest progressive approach to the role to further haulier of iron ore for export outside of the Aurizon’s Australian presence. Pilbara region. “I joined Aurizon in December, moving In the March quarter, the company from a wintery London to sub-tropical transported 48.4mt of coal; 2 per cent lower Brisbane,” Mr Harding told Melbourne than the previous corresponding period, Mining Club delegates in April. while iron ore volumes totalled 5.6mt; a “After 24 years at Rio, it was a big 7 per cent drop attributed to operational change; a new location, a new organisation, issues from one of its customers. and new ways of doing things.” “March Quarter 2017 Above Rail His first major hurdle occurred in April, volumes were impacted by tropical cyclone when storms associated with Cyclone Debbie and associated flooding affecting Debbie caused significant structural all commodities hauled in Queensland,” damage to Aurizon’s Central Queensland Aurizon stated. Coal Network. “The expected impact to coal volumes “Our Central Queensland coal network Wiggins Island Rail Project. All images: Aurizon. will be 12-14mt, reducing FY2017 tonnage bore the brunt of the storm,” Mr Harding guidance to 190-200mt (from 200-212mt).” said. The 2670km Central Queensland Coal Hunter Valley corridor; and South-West Freight volumes for the quarter also “Yet what impressed me most in the Network which transported about 60 per Rail Corridor connecting coal mines in the saw a slight 3 per cent decrease primarily incident management was the primacy of cent of Australia’s coal exports, comprised Clarence-Moreton and Surat basins to the due to the cessation of the Mt Isa freighter safety and welfare. the Goonyella Rail Corridor, Moura Rail Port of Brisbane. service in February. “Systematically, all employees were Corridor, Newlands Rail Corridor and Each day, Aurizon moved more than contacted and supported where needed.” Blackwater Rail Corridor; along with the 500,000 tonnes of freight bound for (continued on page 55) JUNE 2017 54 Aurizon THE AUSTLIAN MINING REVIEW Complete asset maintenance solutions CUSTOM Fluidpower is one of the largest hydraulic, pneumatic, electronic, and instrumentation solution providers in Australia, supplying a wide range of products to suit all fluid power requirements. The established company is renowned for actually solving problems within systems; not just treating the symptoms of problems. This enabled the company to emphasise the delivery of engineered innovative hydraulic solutions, instead of components and parts sales. “When it comes to 24 hours a day, seven days a week service and support, we don’t just ‘talk the talk’; we ‘walk the walk’,” Custom Fluidpower chief executive Graeme Vennell said. “We have access to all major brands of hydraulic, pneumatic and lubrication products with the bonus of national buying power.” Proudly customer focused, Custom Fluidpower provides national support and coverage across seven branches; three of which are based in Queensland. The business has established a large network of clients at each of these branches, including a strong working relationship with rail freight operator Aurizon. Over the years, Custom Fluidpower has developed an intimate knowledge of Aurizon’s track laying and maintenance machinery, delivering on site servicing, on and off site repairs, breakdown repairs, system improvements and upgrades, and critical component support. More information on Custom Fluidpower’s services can be found at: www.custom.com.au. Custom Fluidpower aims to exceed industry expectations by delivering superior hydraulic services and solutions. JUNE 2017 THE AUSTLIAN MINING REVIEW Aurizon 55

(continued from page 53)

“The Adani proposal would cost more than $1 billion than the Aurizon option of tapping into an installed and efficient infrastructure asset.”

Cyclone Debbie impact structure that will come into effect July. On 23 March, the company announced Aurizon was one of the companies hardest it would soon transition from a hit by Cyclone Debbie, with all four of its functional-based organisational model to a Central Queensland rail systems forced to business unit model designed around the temporarily close. core areas of the business; coal, diversified By 18 April, three out of the four bulk freight and iron ore, intermodal and railways had been reopened but were network, and central support and planning operating under rigid conditions with functions. reduced capacity. Mr Harding said the functional model The Goonyella coal system suffered the had served Aurizon well after it came out worst damage and remained closed until of government ownership, but the time had 26 April. now come to move to a business unit model “The storm killed at least 12 people to driver greater efficiencies, and improve in Queensland and New South Wales, customer service and productivity. primarily as a result of flooding,” Mr The Moura Line in QLD. “It will provide greater accountability Harding said. with each business unit being responsible “This makes Debbie the deadliest and 14mt, worth $100–115 million to the a growing proportion of renewables will be for both operational and financial cyclone to hit Australia since Cyclone company; between $70 million and $80 part of that solution. performance rather than the current Tracy in Darwin in 1974. million of this would be recovered through “However for the foreseeable future, model where it is shared across multiple “In locations west of Mackay, at the regulatory processes in future years. the world’s energy needs will be served functions,” he said. heart of Aurizon’s operations, 48 hour through a baseload of coal and gas, “The intent is for the new structure to be rainfall totals exceeded 1000 millimetres Galilee Basin rail plan supplemented with the intermittent power in place by 1 July this year and as we map or 39 inches in the old scale. of renewables.” out the detail we will keep our customers “In all, Cyclone Debbie touched Aurizon has pushed forward a rail link Construction costs for the project were and employees updated, and consult where communities covering around 4000 plan for Queensland to connect the Galilee estimated to be at least $1 billion less than necessary.” Aurizon employees.” Basin with Abbot Point; a plan which was the Adani’s plan by combining existing rail Aurizon had also made some senior Mr Harding said Aurizon’s competing with the more expensive, but lines with new infrastructure. management changes, including infrastructure teams scoped more than far more publicised Adani proposal. “The Aurizon and proposed Adani appointing former Woodside Petroleum 520 pieces of recovery work, and estimated In March, the company submitted corridors are so close that drivers could executive Tina Thomas to the position of the repair bill to reach between $40 million its proposal to the Northern Australia wave to each as trains crossed,” he said. Human Resources executive vice president. and $50 million. Infrastructure Facility (NAIF) for funding, “The Adani proposal would cost $1 With a month left of FY17, the company “A large part is being spent restoring competing with coal miner Adani which billion more than the Aurizon option of hoped to reach its revised EBIT guidance track on landslips on Black Mountain, had put forward a similar plan last year. tapping into an installed and efficient of between $800m and $850m and coal west of Mackay – the same spot that got a When news of Aurizon’s application infrastructure asset. haulage volumes between of 190mt and metre of rain in 48 hours,” he said. for the rail project went public, the “I can only ponder the parallels with the 200mt. “I flew over that section after the cyclone company experienced heavy backlash from massive investment in triplicate of LNG Mr Harding said in the years ahead, he and can assure you this has been a major environmental activists. trains in Queensland, now under-utilised, also hoped to “build heavily on this platform civil engineering exercise. “Within hours of our application and the source of angst for Australian gas of performance in rail infrastructure and “Our infrastructure crews have becoming public, social media was swamped consumers. train operations.” worked relentlessly on a disciplined and with vitriol on Aurizon and demonising our “Adani’s proposal, through the NAIF “Here’s a business that can deliver well-executed recovery plan.” potential role in the Galilee,” Mr Harding process, also seeks Australian taxpayer sustained, long-term improvement across He said the net impact on earnings said. funding. key safety and operating metrics,” he said. would be between $30 million and $35 “Within days, we had protestors in “I’ve got to say that doesn’t make a lot “While much has been achieved, there’s million (EBIT) when taking a three-year our head office; I expect the anti-Aurizon of sense to me.” plenty of juice left in the tank. position that factored expected recoveries. campaign to continue while we are part of “It’s not inconceivable that in years “That demonstrates a commercially seeking a viable infrastructure solution for Company outlook to come, we could challenge the current and operationally resilient business in the the Galilee. business model for the Australian resources face of Category Four cyclone that struck “Our message won’t change ­— we While the Galilee rail link project was still sector with Aurizon providing discrete, around 70 per cent of our asset base.” acknowledge that climate change is up in the air, Aurizon had implemented super-efficient rail and port services to Aurizon expected its Above Rail coal human-induced, that action needs to be a number of other changes across its resource companies and allowing them to tonnes for FY17 to reduce by between 12mt taken to reduce carbon emissions, and that organisation, primarily a new company focus on their core activities.” JUNE 2017 56 Rio Tinto: Amrun THE AUSTLIAN MINING REVIEW

Major contracts timeline:

8 March 2016

Founded in Weipa, construction firm Goodline wins $25m contract to build a barge and ferry berths to transport personnel and materials across the Hey River from Weipa to the Amrun project site. “The Amrun project 12 December 2016 will ensure QLD businesses and Perth-based construction company their employees Civmec awarded $160m in contracts to build facilities and equipment. will continue to One contract is for the construction of reap the benefits of the process facility, the other for the part-supply of a stacker, reclaimer many development and shiploader. opportunities for

16 December 2016 years to come.” All images: Rio Tinto. WA-based marine services provider Baghwan Marine wins a contract to supply vessels and crew to support project construction. The contract includes a significant percentage of Baghwan’s workforce to be local Indigenous employees. 28 December 2016 Full steam WA-based construction and engineering firm Decmil awarded $50m contract to construct heavy mining equipment workshops, refuelling and wash stations, workshops and welding bays, waste transfer stations and administration ahead buildings at Amrun. Construction at Rio Tinto’s tier one investment – the Amrun bauxite project – is well underway after the 16 January 2017 company recently awarded more than $1.38 billion in contracts for the expansion of its Townsville-based pipe and fittings Far North Queensland asset. provider Vinidex wins $20m contract to manufacture more than 26km of high density pipes to connect water said Rio’s significant investment in local Cameron Drummond between the dam and mine processing and regional suppliers would provide a infrastructure across the project. tremendous boost to the State’s economy. WITH first production expected in 2019, “The Amrun project will ensure QLD 19 January 2017 it’s all hands on deck at Rio Tinto’s $2.6 businesses and their employees will billion Amrun bauxite expansion project continue to reap the benefits of many QLD-based Qbirt awarded $70m bulk in Far North QLD. development opportunities for years to earthworks contract to develop critical When completed, Amrun will extend come. mine infrastructure. It includes 40km mining activities on part of Rio Tinto’s “It is a best practice example of of sealed access roads and the haul existing lease south of the Embley River, encouraging local and Indigenous road network. It will also develop between Weipa and Aurukun on the Cape participation with substantial the mine stockpile zone, tailings and York Peninsula. employment targets already agreed with separation ponds and other critical This includes the construction of many key suppliers.” site infrastructure. a range of infrastructure required to Rio said more than 1600 people had support mining, including a processing been engaged by contractors as at the 13 February 2017 plant and port near Boyd Bay; a dam, end of March this year, with 77 per cent tailings storage facility, roads; and a ferry from QLD. Sodexo wins $22m contract to supply terminal on the Hey River to transport Businesses bidding for contracts of camp management services to the workers from Weipa to the mine. more than $1m must have completed a project. The contract includes an Consisting of two mining operations Local and Indigenous Participation Plan Indigenous employment target of 20 – East Weipa and Andoom – the Amrun as part of the procurement process. per cent within two years. development will eventually replace the Once awarded, contractors must report existing East Weipa mine centre and on how they are performing against their 15 February 2017 develop bauxite reserves south of the commitment. Weipa Peninsula toward Aurukun. Rio Tinto chief executive Fulton Hogan’s QLD arm awarded The project is expected to extend mine contribute about $1.3 billion annually to Jean-Sébastien Jacques said the $45m contract to build a 10.9 life by about 40 years at a production rate the QLD economy. company was proud of the contribution gigalitre dam to supply water to of about 22.8 million tonnes per annum Rio said it had awarded more than Amrun would make in supporting QLD Amrun. The company will develop (mtpa) and includes an option to boost $900m in contracts to QLD suppliers, communities. the impoundment area, embankment production up to 50mtpa. making up almost two-thirds of the “Sustainability is crucial to this and intake infrastructure for the $1.38bn in contracts awarded to project and strict guidelines are in place dam and other critical supporting Boost for Queensland Australian suppliers as a whole. for all suppliers,” he said. infrastructure including the spillway, 509 QLD businesses had been engaged “They must demonstrate they are fishway and access corridor. During the peak of construction the directly or indirectly to supply goods and commercially competitive, technically project had been tipped to employ about services to the site. competent and most importantly, align 1100 personnel, and when delivered would QLD Premier Annastacia Palaszczuk with the safety standards of our Group. JUNE 2017 THE AUSTLIAN MINING REVIEW Rio Tinto: Amrun 57

Goodline has built a reputation for quality project delivery. An industry leading reputation

GOODLINE is an Australian owned company reputation is built upon a “can do” attitude specialising in the construction, maintenance and a commitment to excellence in providing and operational requirements of the mining, safe and efficient project delivery. marine, energy and construction industries. Goodline offers a full turnkey approach to The company offers creative and construction and maintenance. innovative solutions to maximise the full As a true multidiscipline contractor, The East Weipa mine centre will be replaced with the development at Amrun. lifecycle of assets. Goodline has the capacity and experience “Rio Tinto is a substantial contributor “The independent Coordinator General The Goodline culture is driven by open to complete civil, structural, mechanical, to the QLD economy, paying $1.3bn in declared the Amrun project a significant and honest relationships with its clients and hydraulic, electrical and instrumentation State taxes and royalties over the past project (now coordinated project) more suppliers, as it seeks continuous improvement installations and maintenance. five years.” than eight years ago,” Dr Lynham said. to provide cost effective solutions. With a proud track record of exceeding QLD Natural Resources and Mines “The Coordinator-General continues The company’s business functions are all safety and performance targets as well minister Dr Anthony Lynham said the to work closely with Rio to progress this supported by internationally accredited HSE as a history of delivering projects within government had worked closely with important project for the region, the and Quality Management Systems. deadlines, its reputation is supported by Rio to create jobs and strengthen the local community and the state’s economy With a proud and ongoing association with key industry leaders throughout Australia state’s economy. overall.” Australia’s leading resources companies for that provide widespread endorsement of its more than 18 years, Goodline’s success and services. JUNE 2017 58 Cudeco: Rocklands THE AUSTLIAN MINING REVIEW

CuDeco’s new chief executive Mark Gregory. All images: CuDeco. A change for the better After a rocky start to 2017, when a failed safety audit halted operations at its flagship Rocklands project, copper producer CuDeco is back in business with fresh investment and a new leadership team.

investors for the upcoming debt repayments. Cameron Drummond “We have another repayment due as of 30 June, and if failing to generate sufficient OFFICIALLY opened in October 2016 – 10 cashflow from mining operations we are years after its original discovery – CuDeco‘s looking at other funding options to make the Rocklands copper project lies 17km west payment to Minsheng on time.” of Cloncurry, QLD, and employs about 225 “It’s not our intention to do a capital personnel. raising between now and then to make the Producing primarily copper, Rocklands repayment to Minsheng.” also has significant cobalt and gold deposits, CuDeco said production had ramped and was in the process of ramping up to its up to acceptable rates by late March after nameplate capacity of about three million lower than anticipated rates in January tonnes per annum (mtpa) for a minimum and February, largely due to the eight day mine life of 10 years. shutdown of operations. Total quarterly ore throughput was Early year hurdles 316,708 dry metric tonnes (dmt), producing 2796 tonnes (t) of copper metal. On 16 February the Queensland Department CuDeco continued to work up to full of Natural Resources and Mines (DNRM) production since recommencement in suspended operations at Rocklands after the March, with the mine supplying ore direct to mine failed a routine safety audit. the processing plant. The DNRM concluded that a desktop Plant throughput continued to improve, audit on CuDeco’s Safety and Health processing 146,327dmt of ore in March, Management System did not support its which accounted for almost half the total current activities, personnel and processes CuDeco’s Rocklands copper mine. throughput for the quarter. associated with the site, and therefore did not The company said the crushing plant was meet the requirements under the Mining and White and operations manager Mark Roberts the dreams of its founders, and it will be now capable of achieving design rates with Quarrying Safety and Health Act 1999. all resigning from their positions. incumbent to me to guide it through the last the inclusion of the mobile crushing plant, The inspectors also reviewed the site’s risk Dr Chen – who was due to resign on 30 critical stages necessary to achieve this goal,” and ore processed through the plant during assessment and determined that the site had April – had his resignation brought forward he said. April was at nameplate rates. not sufficiently reviewed the risks associated to 21 February as a result of the DRNM Mining at the project recommenced Interim chairman Peter Hutchison said with the mine’s activities and was out of date. directive, with Peter Hutchison appointed on 15 March after planned shutdowns, the company was finally heading into a CuDeco took swift action, submitting an to the position of interim chairman five days maintenance and procedural updates had period of robust performance. updated safety and health management earlier. been completed. “Corporate distractions have dominated system relevant to its current operations at CuDeco’s share price was also affected, shareholder perspectives for too long [and] Rocklands. dropping from 52 cents at the start of the year Recent activities I am pleased to say this is almost behind us Under the DNRM directive, the company to 29 cents at the time of suspension. now,” he said. was permitted to continue loading concentrate Mark Gregory, former chief executive of On 3 April CuDeco announced it had entered “Recent changes at the company and that was stockpiled at site, and operate plant construction company Waltz Group which an agreement to raise $US15 million Rocklands are having a positive impact.” and equipment to keep the site safe. helped build the Rocklands processing plant, through a convertible note to a subsidiary of On 4 May CuDeco accepted the The suspension was lifted eight days later was appointed CuDeco chief executive shortly Valuestone Fund. resignation of its chief financial officer David on 24 February after the DNRM deemed after the suspension. The funds were used solely to pay down Wrigley due to business model changes at the company’s updated safety system was Mr Gregory said he was thrilled to have company debt to China’s Minsheng Bank, the company. satisfactory for operations to resume. been appointed as chief executive at a critical to which it owed $US60m payable in four He was originally employed by previous The suspension resulted in managing time of the Rocklands project. quarterly payments of $US15m. managing director Dr Chen to fulfil a director Dr Dianmin Chen, chairman Noel “Rocklands is on the verge of realising Mr Gregory said CuDeco would not tap Perth-based role. JUNE 2017 THE AUSTLIAN MINING REVIEW Cudeco: Rocklands 59

“David joined the company at the very critical commissioning phase of Rocklands, managing the finances of the business with a very high level of professionalism and commitment,” Mr Gregory said. End-to-end supply “It is unfortunate that our strong focus on developing the Rocklands asset does not support a business model where our head of finance is based in Perth.” Mr Gregory said he was pleased with the management changes and that CuDeco was well placed for long term success. chain management “I’m really happy with the management team we have in place and we have strong support from the board,” he said. ESTABLISHED in 2009, Townsville Bulk “We have some short term challenges; Storage and Handling (TBSH) began as a however our fundamentals place the business local storage facility for bagged fertiliser in good stead to get through these short term at the Port of Townsville. hurdles and become successful in the long As a result of its commitment to term. unrivalled personal and tailored service, “Our process plant is beginning to show TBSH expanded its customer base signs of what is achievable under appropriate across the globe; adding stevedoring, management, with nameplate throughput transport, customs, quarantine and rates being achieved on a regular basis. warehousing solutions to its portfolio. “We have even seen periods well above TBSH is now the largest privately nameplate being achieved sporadically which owned stevedoring company in North is wonderful news for all concerned. Queensland. “We expect that we will continue to TBSH offers tailored end-to-end increase capacity over the [coming] months supply chain management services and by July, achieve consistent nameplate which extend to every corner of capacity.” Australia. Mr Gregory noted that valuable input and Its reputation as one of North direction from key personnel had the driven Queensland’s most trusted providers project-wide improvements. has been built on its strong relationships “We are all working very hard to maintain with customers. the new momentum which has been created,” As part of that mandate, TBSH he said. strives to provide exceptional service “Rocklands is performing well and to its customers by making a point of The TBSH complex at the Port of Townsville. achieving important milestones, but we know understanding their unique needs, and it can perform better still and we will continue proving it by delivering, transporting peace of mind that their product is a diverse array of cargo, and offer a to pursue a program of ongoing improvement. and storing shipments on time, safely being handled with the same care and seamless end-to-end solution regardless “I am none the less very pleased with efforts and within budget. attention they would expect from their of timing, size or nature of the client to date, and the measurable achievements The company employs a team that is own staff. requirements. that have been made over a relatively short determined to provide the best service They are highly experienced in More information can be found at: period of time.” in the industry, so clients can enjoy transporting, managing and storing www.tbsh.com.au. THE AUSTLIAN MINING REVIEW June 2017 60 INDUSTRY PROFILES COMPANIES GEARING UP Industry changing Metso’s revolutionary new cone crusher technology arrives in Australia.

THE product of 100 years of cone crusher cavity design, stroke direction and evolution, Metso’s new MX seems poised an effectively distributed crushing to redefine the way we think about cone action are combined to provide a crusher performance with claims of highly optimised rock-on-rock crushing previously unimagined efficiency, wear motion. part utilisation, safety and automation. Together with the machine’s The company unveiled the new Multi-Action technology, this results machine along with a number of other in extended intervals between world first innovations at this year’s maintenance and higher production CONEXPO-CON/AGG global trade show rates. Quality characteristics of all in Las Vegas. sized end product fractions stay Metso has just announced the launch consistent throughout the lifetime of of MX4, the first model of its innovative wear parts. new MX cone crusher series, on the Australian and New Zealand markets. Selective production According to Metso, MX is the first ‘Multi-Action’ cone crusher on the Mr Newfield says that the smart market. It combines the very high optimisation of Metso Multi-Action reduction ratios of the most demanding technology is the key to reaching mining applications with superb desired end-product shape and particle end-product shape and consistency size distribution while eliminating critical in aggregate applications. waste. End products can be measured as The machine’s engineering team says often as 10 times per second and shown that the MX cone crusher was designed directly on the crusher’s automation with one objective in mind - making the display. Operators can easily control machine owner’s business more profitable and automate parameters such as than ever before. The company states material cavity level, crusher speed, that the MX reduces total-cost-of-owner- power setting and piston pressure. ship whilst supercharging productivity. Crushing quality can be monitored via Metso’s ‘VisioRock’ which measures Patented ‘Multi-Action’ Technology real-time production through a photo particle size analyser that is connected Peter Newfield – Metso Australia’s to the crusher’s automation system. Head of Marketing & Communications, VisioRock is compact in design and easy says that the company’s patented to install. Its Modbus interface enables ‘Multi-Action’ technology is a quick access to particle size distribution revolutionary way to automatically from cameras that are mounted above optimise crusher operation. the crusher’s output conveyor. The MX is able to simultaneously adjust its setting with a rotating bowl Designed with operator safety and above its cavity and a hydraulic piston the environment in mind inside the machine’s fixed shaft. Dynamic setting adjustments can be made when Less human machine interactions for the crusher is operating under full load adjustment and maintenance naturally conditions without the need to stop means a safer working environment for production. Both rotating bowl and machine operators and maintenance piston adjustments are fully automated, staff. Combined with purpose made so no human intervention is required. lifting components and wear part The MX also provides a maximised tightening tools, the MX is said to tramp release distance, delivering high be a big win for operator safety. The levels of protection against uncrushable machines have also been designed with objects and overloading. Protection is the environment in mind. There is no optimised under all conditions, even with lead used in the MX’s counterweight completely new wear parts. design and no backing is required to set the liners. The machine’s lubrication More uptime and lower operating system has been optimised to use up to costs 3 times less oil than previous models. Machines can be equipped with Metso’s According to Mr Newfield, the MX with offline filtration system which keeps oil its Multi-Action technology is the most clean for extended periods. cost-efficient crusher on the market. It enables operational cost savings of 10 per Technology proven in the ‘real cent or more compared with traditional world’ cone crushers. protection via its rotating bowl. The One of the big advantages of the MX Savings in wear components coupled combination of rotating bowl and piston is its quick and easy wear component As part of its MX development program, with an effective and continuous crushing adjustment enables optimised wear part change-outs. All the wear parts are Metso included a pre-launch field action, provide an unbeatable starting utilisation. accessible from the top of the machine, testing period. Machines were secretly point to bring down the cost per ton in The MX features a very robust design allowing a complete change-out in just tested in four different countries. By any quarry or mining application. that is based on Metso’s experience two to three hours. the time of the global launch in Las The new machine’s uptime is over the years with its Nordberg MP, Vegas, the test machines had completed significantly better than traditional cone HP and GP Series cone crushers. The Up to 70 per cent wear part a combined operational time of more crushers. new crusher is designed for the most utilisation than 10,000 hours. The MX’s Multi-Action design allows challenging operating conditions with “Our prospective customers can dynamic setting adjustment and wear very hard and abrasive feed material. Metso says that the MX delivers record be confident that our new machines composition with its hydraulic piston, From the start, the MX was engineered breaking wear parts utilisation rates. already have a proven track record in minimising interruptions to production. to minimise downtime and allow 24/7 The crusher can use up to 70 per cent some really challenging applications,” It also provides rapid, fully automated crushing in the harshest applications. of the mass of new wear parts. Optimal Mr Newfield said. June 2017 THE AUSTLIAN MINING REVIEW Companies Gearing Up 61 A blueprint for wealth generation THE mining industry has experienced a slowdown for the past couple of years, and as wages and jobs become tighter many people in mining have used this period as an opportunity to make sure they are getting ahead financially. Many people seeking advice from Blueprint Wealth complain that they do not feel like they are making the most of their current income. They feel as though their time spent in mining earning high wages should have them in a better position than they currently are. The team at Blueprint Wealth are big believers in not being able to change the past, but learning from it. “Working in the mining industry can be lucrative and we see many high income earners establish large amounts of investments; these people work hard and don’t have a lot of time to spend in this area so they use a company like ours that specialises in building wealth,” Blueprint Wealth director David Baruffi said. Financial planning is about looking at an individuals’ current situation, working out what is best for them, then helping that person put that best practice into place. Every good financial plan needs to be regularly reviewed. Situations change – Blueprint Wealth financial advisor Brad Martin presenting at the Kanowna Belle mine site in Kalgoorlie, WA. it could be a person’s job, income, house upgrades or having another child. All of The company sits down with clients Blueprint Planning Pty Ltd (ABN 78 This article contains information that these impact the original plan put in place. and puts plans in place to get them on 097 264 554), trading as Blueprint Wealth, is general in nature and does not take Blueprint Wealth can assist people to track to maximising their financial is an Authorised Representative and into account your objectives, financial make the most of their incomes and help position. Credit Representative of AMP Financial situation or needs. Therefore, before them feel like they are getting ahead Over time, Blueprint Wealth can show Planning Pty Ltd, Australian Financial making any decision, you should consider financially and not just “spinning their people the benefit and reward of sticking Services Licensee and Australian Credit the appropriateness of the advice in wheels”. to their tailored strategy. Licensee. regards to those matters. Tsurumi first choice for iron ore mine EUROPEAN submersible pumps have due to capillary wicking should the power traditionally played a large role in cable be damaged or the end submerged; keeping Australian mines dry and safe. and an absolutely watertight cable entry. Most European products are designed The mechanical seal is a dual, around much the same principles and of double mechanical seal as opposed course are, as you would expect, designed to conventional submersible pump to compete with one another. arrangements. The world’s biggest pump manufacturer Tsurumi use a double silicon carbide – Japanese-based Tsurumi – is changing seal that is completely enclosed in the the way miners and the construction oil chamber; therefore always protected industry think about submersibles. by oil thus eliminating spring failure The latest example of Aussie Pump caused by corrosion or abrasion, keeping Industries’ (Aussie Pump) success was to all four surfaces of the mechanical seal supply a major Australian iron ore mine lubricated and cool. a 90 kilowatt Tsurumi LH690 pump. Is if that wasn’t enough, Tsurumi The LH690 has a 150 metre head and added an oil lifter. a 2500 litres per minute maximum flow The oil lifter is a patented guide capacity. vane inside the chamber that ensures Like all Tsurumi’s LH series, it the mechanical seal is lubricated even looks very different to its European if the oil level falls, increasing the time counterparts. between routine pump maintenance. At only 592cm in diameter, the big The pumps are robust with the big LH690 pump is slender, designed to LH690 weighing a whopping 1100kgs. enable the pump to be used in bores and “The LH series will be available soon wells. in 316 stainless steel configuration, Its top discharge means that the something many corrosive mines have waters flows through the pump casing, been hanging out for,” Aussie Pumps thus keeping the motor cool even in high product manager Neil Bennett said. temperature underground applications, Some of the most corrosive copper with a central discharge flange designed mines in Australia are using Tsurumi so that it is balanced for lifting. 316 stainless steel SFQ series pumps The pump achieves its extraordinary because they are the only product that performance by two high chrome iron seems to be able to stand up to the level closed impellers that act as a two stage of corrosion found in applications. system. Further information and a free It includes Tsurumi’s special features, catalogue on Tsurumi submersible pumps developed to allow pumps to operate for can be found by contacting Australian longer with less maintenance than other Pump Industries’ Neil Bennett on brands. (02) 8865 3500, Aussie Pump industrial These include a unique anti-wicking dealers throughout Australia, or at: cable entry that prevents water incursion www.aussiepumps.com.au. Tsurumi’s LH series are a slender design that produces pressure from a compact profile. June 2017 62 Companies Gearing Up THE AUSTLIAN MINING REVIEW

Watson provides turnkey drilling services across Australia. Advanced drilling service provider WATSON Drilling is a leading, innovative towers, auxiliary mud-pumps, high resource and water drilling organisation pressure air compressors and mobile deploying a modern universal fleet of camps. drilling rigs and support equipment in Watson Drilling has staff and equipment Australia. for turnkey drilling operations throughout Established in Maryborough, VIC in the Australia. 1930s, Watson Drilling is currently run by The company is proud to employ a very fourth generation family members Dave experienced team of licensed drillers, and Rex Watson, who hold 68-plus years of offsiders, and maintenance staff; whose experience between them. skills and knowledge ensure safe, efficient The company is a leading, innovative and productive field operations. resource and water drilling organisation The company has licensed drillers able holding some of the most modern and to drill in the Great Artesian Basin, with technically advanced fleet of drilling rigs endorsements for Mud-Rotary, Diamond and support equipment in Australia. Coring, DHH and RC drilling, specialising Its fleet comprises of 11 multi-purpose in large diameter bores. all terrain drill rigs, backed by a huge It is also an industry leader in inventory of support equipment. groundwater investigation and This includes, water trucks, front end development, for irrigation, exploration loaders, excavators, generators, lighting and dewatering. World leading construction supplier

Holcim has a global footprint spanning 80 countries.

WITH access to global and local-scale been a part of include the Gorgon LNG know-how, Holcim is a unique part of plant, the Sydney Metro rail tunnels, Australia’s building and construction and the Argyle Diamond Mine. materials industry. Holcim is part of LafargeHolcim, The energy and mining sector the world’s leading building and demands flexibility, technical excellence, construction materials firm with more and scale from its suppliers. than 90,000 employees and 1400 plants Yet finding one with a local focus in 80 countries. combined with global business resources Holcim’s products benefit from access is rare; that’s why Holcim Australia is to the LafargeHolcim Research Centre unique in being able to offer the best of – the world’s largest concrete research both these worlds. and development facility, which employs Holcim has operated in Australia 120 PhD-qualified researchers. for more than 150 years, supplying At its core, Holcim is an Australian construction materials to many of business that draws on global innovation Australia’s biggest mining and energy and resources. projects through a national fixed plant More information on how Holcim can network, and mobile plant options for support projects can be found by calling those hard to reach, out of the way 13 11 88, or visiting www.holcim.com. places. au/RightFromTheStart to receive the Notable projects which Holcim has company’s new credentials brochure. June 2017 THE AUSTLIAN MINING REVIEW Companies Gearing Up 63 Flexibility has a name: WAGO

WAGO has designed its I/O-SYSTEM 750 in such a way that the same platforms are used in the Ex-proof and non-Ex-proof areas. Based on design details, the system is extremely versatile, while still adhering to its higher ranking standard. Featuring more than 500 different modules, it offers the opportunity to directly integrate different sensors in the field and transmit multiple different forms of analog and digital signals bundled through TCP/IP to the control room. In addition, the WAGO- I/O-SYSTEM makes it possible to remotely record failure messages or fill levels of rain overflow basins and in doing so, control the inflow into the wastewater treatment plant in a targeted manner. In addition to the general field-bus dependency and the standard availability of open interfaces for the instrumentation, as well as the integration of entire system parts, the HART communication is also offered by WAGO. Finally, this communication compatibility also permits it to easily permit a system expansion in the future.

Less effort for planners and operators

WAGO’s modular design principle enables planners to equip applications in the Ex-proof and non-Ex-proof areas economically and efficiently without extensive programming. Operators can also implement special solutions, such as a partial energy measurement, including the storage of all WAGO’s PFC200 Ex controller. process data, with the components of an automation system. and 40 fieldbus connections. for offshore use, such as DNV*GL or easily integrate with CAN RS-232-485 This makes it possible to establish a That is WAGO-I/O-SYSTEM 750 – ABS and can also be used in hazardous Profibus, Profinet, Ethernet/IP and targeted monitoring management system making no other automation system more environments (dust, gas and mining). MODBUS, among many others. that displays historic values. flexible. With the intrinsically safe IO the Additionally the IO system can be The functional benefits that WAGO’s The company offers so many variants WAGO-I/O-SYSTEM has reliably served incorporated into a VPN infrastructure system provides for the process engineer and can be adapted individually to any in oil and gas mines for years. with openVPN and IPsec protocols are completed for the programmer by project – even in extreme operating In addition to two ethernet interfaces, directly. offering function libraries free of charge. conditions. the WAGO controller offers a variety of The variety of options with the WAGO WAGO’s- I/O-SYSTEM 750 comprises of The WAGO-I/O–SYSTEM includes additional interfaces. system means it is flexible and scalable to more than 500 I/O modules, 60 controllers the established ship building approvals The WAGO-I/O-SYSTEM 750 can customers’ requirements. Reducing the cost of pump ownership THE initial purchase price of a pump is only The company’s experienced and a fraction of the total cost of ownership. knowledgeable team further complements Maintenance, energy, operational and its portfolio of mineral processing downtime costs are real concerns — year solutions. after year — over the life of the equipment. The Goulds Pumps Model XHD is the Together, they represent more than 60 result of 100 years of slurry pumping percent of real costs and these are items experience. that can be addressed and aggressively The XHD incorporates the latest brought under control. technology including CFD analysis to ITT PRO Services (ITT) provides an provide the next generation in severe-duty array of repairs and upgrades services to slurry pumping. extend equipment life. Extensive ’voice of the customer‘ input Building on more than 160 years of was utilised to ensure customers’ most Goulds Pumps experience, ITT has been important needs were met. providing an array of repairs and upgrades This included high efficiency with services to extend equipment life. extended wear life, along with maximum PRO Services helps customers reliability and ease of maintenance. develop effective maintenance and The XHD is designed to keep a process asset management programs to lower running. maintenance costs, improve uptime, reduce With offices, packaging and service inventory costs and extend equipment life. centres located across Australia, ITT Industry players know that “up-time” Goulds Pumps provides the coverage yields money and is paramount to needed to serve all types of customers, businesses. whether small or multi-national ITT’s Goulds Pumps products are companies located in any region. engineered to maximise up-time, by More information on ITT’s pump offering customers the best and most products can be found by calling 1300 333 complete solutions. 488 or by visiting: www.itt.com. ITT supplies the well-known Goulds Pumps products. June 2017 64 Aerial Surveyors THE AUSTLIAN MINING REVIEW Sky high service BEGINNING operations in 1990 in Melbourne, Flight Data Systems (FDS) is now a specialist company providing aviation products and services to more than 250 commercial and military customers worldwide. FDS is an Australian provider that designs, develops, produces and supports a range of Remotely Piloted Aircraft Systems (RPAS) services. Its experienced team offer a range of solutions, including a full turnkey service with fully licensed CASA RPAS operators and RPA systems for different commercial applications. FDS is a delegated authority of CASA, which means it can process applications for a Remotely Piloted Aircraft Operator’s Certificate (ReOC), formerly referred to as a UAV Operator’s Certificate (UOC). The company’s aim is to reduce the wait-time and cost to industry. FDS is a CASA approved training organisation offering end-to-end basic and type training packages for both fixed wing and multirotor RPAS. FDS is also ASQA approved to deliver the Certificate III in Aviation - Remotely Piloted Aircraft Course. More information can be found at www.flightdatasystems.com.au.

the interview page 79 June 2017 THE AUSTLIAN MINING REVIEW Aerial Surveyors 65 June 2017 66 Aerial Surveyors THE AUSTLIAN MINING REVIEW

the interview page 79 JUNE 2017 THE AUSTLIAN MINING REVIEW Magnets & Magnet Technology 67 Eriez® suspended electromagnet: less bucks for better bang WITH higher throughputs and larger capacities of today’s processing plants, the need to remove damaging tramp metal prior to key unit operations is paramount. It only takes a small amount of downtime to eradicate any savings gained by installing sub-standard equipment. Eriez, now celebrating 75 years, has been proud to be the high-quality industry standard when it comes to protecting customers’ operations. The workhorse that keeps customers and their equipment safe is Eriez’ suspended electromagnet. These separators can be designed to capture tramp metal from both shallow and deep burden depths and are ideal for almost any application – wet, dry, fine, or coarse. As plants continue to increase in size to take advantage of economies of scale, Eriez’ electromagnets have followed suit. The largest magnets available from Eriez exceed 74 tonnes (t) and measure 3600mm square. The size of these magnets is a direct result of the passive heat dissipation used to keep these separators cool and required to maintain their strength. Eriez’ compact “force-cooled” magnets provide the same strength as its largest magnets on offer. Recently, Eriez has worked closely with several customers to provide significantly overall capital cost stemming from the it provided a stronger field and better technologies for magnetic, vibratory and smaller sized compact “force-cooled” significant weight and size reduction which overall protection for the customer. inspection applications. magnets that are able to provide the translates to a smaller superstructure and While some customers will prefer the The company’s magnetic separation, same strength as the company’s biggest reduced foundation load. “plug and play, set and forget” approach metal detection, materials feeding, magnets. As an example, a force-cooled magnet afforded by traditional suspended screening, conveying and controlling The key is in using a light-weight (Eriez SE65k) was chosen over a traditional electromagnets, the force-cooled approach equipment have application in the process, active cooling system which can be fully unit (SE10863) that measured 2800mm provides Eriez’ clients the option to take mining, aggregate, plastics, metalworking, integrated or located remotely. square and weighed 32t. advantage of size and weight reductions packaging, recycling and textile industries. These units are preferred when the In contrast, the force-cooled magnet leading to overall cost savings, while Eriez manufactures and markets these existing support structure does not have measured 2000mm square and weighed maintaining the best tramp metal products through 12 international facilities sufficient load capacity for a traditional only 10t, which led to significant savings protection offered by industry and proven located on six continents. suspended electromagnet. on installation. over 75 years in the business. More information can be found by They are also nominated for installation Additionally, because the force-cooled Eriez is recognised as the world calling (03) 8401 7400, emailing sales.au@ in new plants due to the resulting lower magnet operated at a lower temperature, authority in advanced separation eriez.com or at: www.eriez.com. JUNE 2017 68 Motor Body Building THE AUSTLIAN MINING REVIEW JUNE 2017 THE AUSTLIAN MINING REVIEW Payload Monitoring 69 Proudly Australian owned

IN the commercial and industrial market, it is essential for business operations to know the correct weight of the materials they are handling. Instant Weighing supplies weighing equipment and support to industries such as mining, quarrying, transport, industrial and farming. Instant Weighing is a licensed scale company with National Measurement Institute (NMI) accreditation and is the WA distributor of the COMPULOAD series of front end loader trade and non trade approved scales, COBO excavator scales, as well as the seven various PROLEC Safety Limiters (made to Australian Standards) for excavators. The company is also a major tester of all types of scales for the new SOLAS/ AMSA export sea container weighing laws introduced 1 July last year. COMPULOAD product development is an ongoing exercise with the recent release of the new COMPULOAD 6000 (with data storage including a built in USB data downloader) and the COMPULOAD 5000 scales for front end loaders and forklifts that includes fine tuning to improve weighing accuracy. The COMPULOAD range has weighing software for both loading road trains and batching. A recent example showing the accuracy of the COMPULOAD series of front end loader scales included a client that used Providing product support and calibration services throughout WA is paramount to Instant Weighing. front end loaders fitted with trade approved COMPULOAD 4000 scales. were introduced through the Australian The variety of different scales affected which included weighbridges. The client used the 4000 model to load Maritime Safety Authority (AMSA) by the new laws include small to very large In the last 12 months throughout all of four trailer road trains at mine sites and regarding the testing of scales used to platform scales; weighbridges; scales on WA, this AMSA scale testing has generated haul the ore back to Port Hedland for determine the Verified Gross Mass (VGM) small to very large forklifts using either extra work for Instant Weighing staff shipment. of an export sea container. forks or spreader bars; scales on front-end because of the unique range of NMI testing The COMPULOAD scale indicated that In summary, the new laws stated that loaders fitted with forks; scales on reach licenses its technicians hold. 18,800 tonnes of ore was transported to any scale can be used to weigh an export sea stackers, and trucks with side lifters; The number of different types of the port for a specific shipment, and once container, but before the scale can be used and scales used at wharves on cranes or industries involved in weighing export sea loaded onto the ship the Port Authority it must be tested and pass NMI standards container stradlers. containers to determine its VGM included indicated that the difference between their of testing for that type and capacity of scale, Instant Weighing technicians hold the large companies in both the mining and oil total weight and the COMPULOAD scale’s and that this testing must continue on an NMI testing licenses for testing the trade and gas industries. total weight was just 37t. annual basis. approved front end loader and forklift More information on scales and onsite That’s an error of just 0.2 of 1 per cent. The laws also stated that Certified Test scales and also for general scales, including calibration requirements can be found at: On 1 July 2016, new international laws Masses must be used for the testing. general scales exceeding 3t in capacity, www.instantweighing.com.au. JUNE 2017 70 Payload Monitoring THE AUSTLIAN MINING REVIEW JUNE 2017 THE AUSTLIAN MINING REVIEW Pipes & Pipelines 71 State-of-the-art pipe flanges CAMAN Engineering is Australia’s largest independent stockist and manufacturer of pipeline flanges. An extensive range of pipeline products are held in stock in both its Perth and Sydney facilities, including orifice plates and flanges, spec blind spades and spacers, hydro-test blinds, nozzles and long weld necks, tube sheets and baffles for heat exchangers. Caman also offers a state-of-the-art CNC machining service with a machining capacity of up to 2200mm in diameter; this means if the company does not have a certain specialised or custom flange in stock, it can be manufactured promptly. The company has one of Australia’s most complete ranges of valving products; no matter what the application, it has the solution, tailored by one of the most experienced valve sales teams in the country. Caman is 100 per cent Australian owned by the same family that has been involved in the daily running of the company since its inception in 1954. More recently in 2017, Caman Engineering WA completed a purpose built 3600sqm facility in Perth, demonstrating its long standing commitment to providing the WA market with an excellent level of “stock on hand” and customer service. Caman is an approved manufacturer and supplier of pipeline flanges, heat exchanger and pressure vessel components to oil, gas, mining and petrochemical companies operating in Australia; is accredited to comply with Quality Assurance Standard ISO 9001 and is an approved P.E.D material supplier, certified by Lloyds Register Quality Assurance. Caman Engineering’s new state-of-the-art facility in Perth. JUNE 2017 72 Process Plant Refurbishment THE AUSTLIAN MINING REVIEW Proven plant development

GR Engineering provides fully equipped plant services to the mining sector.

GR Engineering Services Limited (GRES) is GRES has successfully refurbished plant relocated plant. are well equipped to provide brownfields an ASX-listed (ASX:GNG) process design and and infrastructure at sites which have been The Randalls project for Integra Mining (now expansion work, project support, operations engineering contractor providing fixed price shutdown or on care and maintenance for Silver Lake Resources) utilised the New support and improvement consulting and EPC engineering design and construction extended periods with the most recent projects Celebration plant and the Edna May gold asset management services. and EPCM services to the mineral processing of this nature being the Davyhurst gold project project for Catalpa Resources (now Evolution GRES has a presence in the hydrocarbons industry. for Eastern Goldfields, Mt Magnet gold project Mining) used the Big Bell gold plant. industry via its wholly owned subsidiary, GRES is currently delivering the Mungana for Ramelius Resources and Gold Ridge for St Both these projects proved successful for the Upstream Production Solutions, a leading project for Auctus Minerals, Mt Morgans gold Barbara. respective owners and remain in operation. provider of operations and maintenance project for Dacian Gold and the Dalgaranga GRES has undertaken new project GRES’ team of highly experienced professional management services to the oil and gas gold project for Gascoyne Resources. development based on the use of existing and engineers and construction trades persons industry in Australia and South East Asia. June 2017 THE AUSTLIAN MINING REVIEW Railway Construction 73 June 2017 74 Railway Construction THE AUSTLIAN MINING REVIEW Global signalling services for rail projects JMD Railtech (JMDR) is an experienced rail engineering Australian company (registered in 2005) that provides signalling services across a broad engineering spectrum. The company employs a wide range of experienced, competent and licensed engineers, who possess the required knowledge of standards, procedures and processes of various railways in Australia, United Kingdom, Malaysia, Thailand, Singapore, Indonesia, Taiwan and India. JMDR provides total signalling solutions in signal design, wiring works, construction, site works, testing and commissioning, and competency management. With more than 31 years of experience in the rail and engineering industry, JMDR Managing Director Dilip Goyal has led a team that has delivered a large number of signalling projects from concept to handover. It is a preferred supplier of signalling services, with many Framework & Panel agreements across a large number of transport organisations across the globe. These agreements were awarded on the grounds of the competency of JMDR’s staff and sub-consultants, the quality of its services, consistency and agreed rates over an extended period of time, as well as providing value for money. JMDR provides critical signalling resources and offers management services (as design, testing, commissioning and project signalling management). JMDR has been carrying out Competency Assessments for ARTC since 2010. “In September 2014, JMDR became an IRSE Approved Assessing Agency and subsequently authorised to undertake both Workplace and Competence Assessments on behalf of the internationally accredited and globally recognised IRSE Licensing Scheme,” Mr Goyal said. “With first-hand knowledge of the IRSE Scheme, JMDR promise to provide an assessment service that is JMDR is an accredited ISRE agency. professional, efficient and timely.” JMDR has more than 120 dedicated JMDR said it was also considering customer focus, teamwork, value for works with passion, accountability and staff with offices in Sydney, Ingleburn, opening another office in Melbourne in money and people; and JMDR’s all staff commitment to high standards compliant Perth, York, Birmingham, Noida, New the near future. and sub-consultants are 100 per cent with client specifications in a timely Delhi, Bangalore, Mumbai and Singapore. JMDR’s values are accountability, committed to deliver the signalling manner. Rail maintenance equipment specialists

ESTABLISHED in 1985, Harrybilt equipment to suit specific customer needs, Engineering is an Australian, family as well as meeting delivery requirements. owned manufacturing business that prides All equipment is designed for Australian itself in having the ability to design and conditions to the highest quality and develop new equipment to suit specific standards, and is supplied Australia wide. customer needs and utilising a range of With an in house engineer, Harrybilt modern machinery. Engineering has the ability to design Its qualified and experienced team and develop new equipment to suit the consists of a mechanical engineer, requirements of each individual customer boilermakers, fitters, a hydraulics and is always designing and developing technician, and tradesmen. the product range to keep pace with this For almost 20 years, Harrybilt specialised industry. Engineering has specialised in the design, In 2013 an onsite testing facility was development and manufacture of specialist established to conduct compliance testing equipment for rail infrastructure networks for network registration. across Australia. Harrybilt Engineering is continually This equipment ranges from hi-rail improving and increasing its product and rail guidance systems for excavators range. Harrybilt Engineering specialises in the manufacture of rail maintenance equipment, fabrication and (wheel and track), trucks and backhoes, The company has an extensive range steelwork for commercial and mining applications. rail maintenance equipment and sleeper of spare parts available for immediate handling attachments. delivery and also specialises in the design applications to suit specific customer look forward to meeting with new and Harrybilt Engineering is completely and fabrication of individual products needs. existing customers, with new ideas and customer orientated, manufacturing for general, commercial and private The team at Harrybilt Engineering new products. June 2017 THE AUSTLIAN MINING REVIEW Recruitment 75 JUNE 2017 76 Recruitment THE AUSTLIAN MINING REVIEW Skill shortages emerge again in WA

AUSTRALIA’S resources sector continues to show recent signs of improvement. In WA, the stable commodity price and the decision of gold producers to increase their exploration budgets have lead to demand once more for Geologists with gold experience. Hays has also seen an increase in the need for Mine and Exploration Geologists. Underground (UG) Drill and Blast Engineers are in high demand too. Employers want good quality candidates who have been in continuous work for the last four years. UG Geotechnical Engineers are also needed, however many candidates left the industry when teams were cut. As the market improves, there is a severe lack of quality candidates remaining. This last point is a trend emerging across the industry. Over recent years many people moved into other industries, such as manufacturing and operations, in order to secure employment. They enjoy being away from FIFO or DIDO rosters and with salaries lower than they once were there is little to entice them back. In other trends, employers continue to prefer recruiting on a temporary basis, although with demand rising this could change. The first sign of a change will be employers offering their strong temporary Data from Hays has shown an increased demand for skilled workers in the resources sector. candidates permanent roles. An interesting trend is the increased focus In New South Wales it is Mechanical Territory needs Mechanical and Electrical regional roles and increase their skills with in mining companies on creating a diverse Fitters, Boilermakers and Diesel Mechanics Fitters and HD Fitters. additional tickets and qualifications. workforce. Consequently, candidates who can that are in demand as mines take advantage When looking for their next role, Our 2017 Hays Salary Guide launches strengthen diversity within an organisation of the increase in coal prices and carry out jobseekers are very flexible in the roles on 1 June 2017. An insight into the typical are in rising demand. maintenance on their equipment. they will accept although they continue to salaries and trends being offered across the In other parts of the country, Hays is Victoria needs Mechanical Fitters, Boiler favour higher pay rates and longer-term resources & mining sector can be found by seeing demand for Fitters and Operators as Makers/Welders and Diesel Mechanics opportunities. contacting Hay’s Perth office or at: well as Lead Study/Managers in Queensland. with quarry experience, while the Northern They are also more willing to relocate for www.hays.com.au/salary. Signs of recovery

Constructive Recruitment principal consultant Emanuel Gherardi.

THE mining downturn has left the industry budgets again, the mid-tier miners and suffering from a collective state of anxiety, contractors are dipping their toes in the but there’s good news, Constructive water (truth be told, they’re out there Recruitment principal consultant Emanuel swimming).” Gherardi said. Most importantly, Mr Gherardi said they “What we’re hearing from our clients are creating jobs and bringing highly skilled and candidates at present is that conditions people back into the industry and have are becoming much more favourable and witnessed a year-on-year increase in job that there is definitely opportunity in the adverts of more than 90 per cent in NSW, market,” Mr Gherardi said. WA and QLD, albeit from a low base. “The banks are investing; and even more “So is it safe to go outside?” he said. tellingly, lending to the Australian mining “My answer is ‘open the door and take a industry again, big miners have exploration look, I think you’ll like what you see’.” June 2017 THE AUSTLIAN MINING REVIEW Recruitment 77 Managing large-scale workforces ONE Key Resources is a specialist provider of managed workforce services and labour hire to the mining, oil and gas and infrastructure industries nationally. A subsidiary of the global Fircroft Group, the company supplies total workforce management solutions to clients including the recruitment, employment, mobilisation and ongoing management of large-scale blue collar workforces across all areas of open-cut and underground mining, oil and gas, and infrastructure projects. “We currently work on nearly 100 projects throughout Australia,” One Key Resources managing director Grant Wechsel said. “Our services allow clients to attract and retain a specialist workforce for their projects with our skills in recruitment, human resources, industrial relations and employee relations allowing the client to focus on their core activities as well as achieving positive outcomes in productivity and profitability.” More information can be found at: www.onekeyresources.com.au. For its employees, One Key Resources offers a variety of permanent, fixed the resources or major infrastructure and operations roles within oil and gas and workforce services. term contract, and casual employment industries, One Key Resources and major infrastructure projects. The company’s ability to take full opportunities in every commodity in the the broader Fircroft Group offer great “We also continue to expand our employment responsibility, provide on-site resources industry as well as supporting opportunities,” Mr Wechsel said. footprint across coal mining projects in management or support teams and overlay infrastructure projects at all levels of the “We are currently rapidly expanding QLD and NSW where we have traditionally business intelligence data options allows it organisations. our workforce in gold, copper and iron ore held a lot of our work.” to work closely with clients in engaging and “If you are an experienced employee mining across Western Australia and South One Key Resources has proven its ability managing a productive and safe workforce looking for your next opportunity in Australia, while also offering maintenance to provide whole of mine site managed for a project. June 2017 78 the interview THE AUSTLIAN MINING REVIEW Dr Craig Stegman Rio Tinto Copper and Diamonds Operational and Technical Support vice president

With more than 30 years of experience in the mine life cycle, Dr Stegman’s recent focus has been on establishing technical and innovation capabilities within copper and diamond products. He spoke with Cameron Drummond about the importance of innovation and collaboration in the mining industry.

Q. What is your professional history?

I began my career as an exploration “My perspective is geologist with CRA Exploration (precursor that much of the to Rio Tinto Exploration) and Battle Mountain (which became part of Barrick) R&D done in the exploring in PNG, New Zealand, Northern non-mining sector Australia, Solomon Islands and Fiji. After about 10 years, I moved to Peak has some form Gold Mines in Cobar where I managed a of applicability near-mine exploration program and the mine geology. to the mining As we identified additional resources, industry that discovery of Perseverance and resource extensions in the Cobar Goldfield, I the original became involved in project studies and developer is project execution (building of several new satellite underground and open cut mines). unaware of Ultimately, I became the site manager at Peak. – that is our After eight and a half years, I moved to opportunity and Northparkes Mines and worked in several operational roles, including surface an opportunity mining manager, processing manager and for METS firms.” underground mine manager. I obtained my NSW above ground and underground mine manager tickets during this time. I then became the E48 Project general manager, managing completion of the feasibility study and then construction of E48 Mine, before becoming the mine general manager and then managing director. During this time, I gained significant experience in the design, construction and operation of block cave mines. In 2012, I moved to SLC to manage the Resolution (USA) and La Granja (Peru) major projects for Rio Tinto’s Copper Group. This role evolved into managing Growth and Innovation within Copper and Coal, including the Oyu Tolgoi Underground Project studies and then operational and Q. What is Rio’s attitude towards technologies allow us to solve problems that Q. What other trends in the resources technical support for our Copper and digital innovation and how can METS we previously couldn’t. sector are you most excited about? Diamonds assets (Kennecott, Argyle, firms first take advantage? Diavik, Resolution, Escondida, Grasberg Q. How important to mining is There are several trends I am very excited and OT). I will be moving back to Australia I don’t think you would be surprised that collaboration with other industries? about at the moment. The work we are in my current role in July 2017. there isn’t a single view on the role of doing to support the Mine of the Future digital innovation in the mining industry. One of the key learnings from my time in large-scale underground mining is Q. Tell us about your role(s) at Rio I think we are all very excited about the living in the United States is opportunity challenging and future-defining. Tinto. possibilities, but we understand that to borrow and learn from other industries We have some unique problems we innovation without a purpose does not – in part, the opportunity derives are trying to solve. No one is offering the My current role is focused on the delivery of create value. from the sheer size of the non-mining complete solution, and I am very excited technical capability across Rio Tinto’s Copper I think it is very important that METS industries (like automotive, energy, IT, about the way my team is systematically and Diamonds portfolio. I lead an integrated firms understand the problems we are biomedical, etc.) in the United States working to pull together and integrate technical team of more than 250 people that trying to solve in our business. relative to the mining industry and their a disparate range of technologies from support the operation of mines and projects, Not surprisingly, if we are focused on respective investments in research and around the world with multiple suppliers to including joint ventures. a particular problem, it is because it is development. achieve a step change in block cave mining. We are heavily focused on managing risk, probably critical for our business and a These industries operate in very There are a number of trends that improving the productivity and long-term necessity. dynamic and fast-moving markets. They coalesce around processing — options to value of our assets through short-range and [There are of course, some] problems that constantly need to innovate to remain reduce energy and water consumption medium-term initiatives in the areas of value we are trying to solve in Rio Tinto Copper & competitive. My perspective is that during the liberation of valuable minerals chain optimisation, innovation and growth Diamonds. In the case of digital innovation, much of the R&D done in the non-mining and the conversion of those minerals into projects. I tend to think of this as an enabler for sector has some form of applicability to metals. We are heavily focused around the solutions to our problems – like being the mining industry that the original Finally, the concept of integrated technical disciplines of orebody knowledge, able to monitor ore quality in real time or developer is unaware of – that is our operations built upon real-time data surface mining, underground (block cave) manage mobile equipment and personnel opportunity and an opportunity for METS analytics breaking down the siloes across mining and processing, including smelting. interactions in an underground mining firms. But, to go back to my previous the value chain appeals to me. There are My team works hand-in-hand with Rio environment. Clearly, the development of point, the point of the collaboration is to clearly organisational design and employee Tinto’s central Growth and Innovation group. new sensing, communications and analytics find solutions to real problems. cultural aspects as well.