Annual Report

2001-02

Australian Resources Research Centre 1 ARRC overview

The new Australian Resources Research Centre (ARRC) has brought together leading researchers from CSIRO and Curtin University of Technology, with the vision of creating a petroleum and minerals centre of expertise for the South-East Asian region. With over 200 scientific and technical staff, the concentration of capability at ARRC provides a focus for enhanced collaboration with Cooperative Research Centres, universities, resource companies and suppliers to deliver world-class research solutions, services, technologies and highly trained people to the resources industries in Australia and around the world.

Located in Western Australia’s Technology Park, ARRC is a major initiative of the Western Australian Government, CSIRO and Curtin University which has been established in conjunction and consultation with the petroleum and mining industries. Its location in Western Australia’s Technology Park is highly appropriate, given that the State produces two-thirds of Australia’s metalliferous products and about half of its petroleum.

With access to a vast global research network, ARRC represents a new environment in which scientists interact, exchange information and explore new ideas in partnership with industry to ensure the ongoing sustainability of our resources industries, our environment and our way of life. In working to achieve a number of shared objectives, CSIRO and Curtin University have already appointed three joint research chairs in the areas of geophysics, isotope geoscience and drilling engineering. Through Curtin University, ARRC is producing world-class graduates and new ideas for the future of the industry.

Mineral exploration and mining research at ARRC is concentrating on technologies that contribute to the discovery and extraction of new world-class, high quality mineral deposits at the lowest possible cost, with emphasis on safety and the environment.

Research for the oil and gas industry is focusing not only on improving oil exploration performance but also on preparing Australia and the region for the transition to new energy sources in the future. As domestic production of liquid transport fuels declines, ARRC researchers are developing technologies that will enable us to utilise Australia’s rich gas reserves and convert gas to liquid fuels. A longer-term objective is to develop the new technologies needed to position Australia to enter the hydrogen age in around 25 years time.

Of great importance at ARRC will be research strategies designed to minimise the resource industry’s impact on our marine and land environments and limit greenhouse gas emissions.

ARRC – setting the stage for a new way of working together in the 21st century

2 ARRC occupants

CSIRO: IVEC (Interactive Virtual Environments Centre) • Exploration and Mining • Petroleum Cooperative Research Centres for: • Landscape Environments and Mineral Exploration (LEME) Curtin University of Technology: •Predictive Mineral Discovery (pmd) • Department of Exploration Geophysics and the Centre of • Australian Petroleum Excellence for Exploration & Production Geophysics • State Centre of Excellence in Petroleum Geology1 • Department of Petroleum Engineering and the Western Australian Petroleum Research Centre (Curtin node)

Contents Foreword 4

Executive summary 5

ARRC commissioning 5

Research activities in support of the Australian minerals industry 6-9 • Research focus 6-7 • CSIRO Exploration and Mining 8 • CRC LEME 8 • pmd*CRC 9 • Research highlights 9

Research activities in support of the Australian petroleum industry 10-15 • Research focus 10-11 • CSIRO Petroleum 12 • Research highlights 12-13 • Curtin University of Technology 14-15 • Research highlights 15

IVEC 16

State funded ARRC start-up projects 17-20 • “Spectral mine sight” 17 • Automated Horadiam mining equipment 18 • Seismic applications for Western Australian conditions 19 • Simulation systems for predictive exploration and resource extraction 20

Finance 21

Research support and human resources 21

Awards, achievements and community sponsorships 22-23

Committees: 24-25 • ARRC Steering Committee 24 • ARRC Construction Committee 24 • ARRC Advisory Committee 25 • ARRC Directions Committee 25

Industry clients and partners 26

ARRC contacts 27

1 The activities of this Centre have now been merged into the Department of Petroleum Engineering. 3 Foreword Western Australia’s resource industries make a significant contribution to the economies of both the State and the nation. During 2001, the value of production from the State’s resources industry was $26.8 billion, and exports from this sector made up 70% of the total merchandising exports from Western Australia.

As the producer of two-thirds of Australia’s metalliferous products and about half of its petroleum, the decision to establish the Australian Resources Research Centre (ARRC) in Western Australia was an easy one. It places Western Australia as the national and regional centre for minerals and energy research. Research at ARRC aims to improve the The Hon. Clive competitiveness of established industries and facilitate the development of new ones. Brown, MLA ARRC is a major initiative of the Western Australian Government, CSIRO and Curtin University of Technology. The State Government’s funding contribution of $35 million represents the largest single allocation of State funding for technology infrastructure ever made in Western Australia.

Successful modern economies require well-developed and internationally competitive technology infrastructure to contribute to sustainable industry development. Another significant factor in generating successful new knowledge-based industries is the level of integration between such infrastructure and the various research and academic institutions. The establishment of ARRC at Technology Park, adjacent to Curtin University, provides a cornerstone in the State’s development of strategic technology infrastructure of a global standard.

The State’s funding contribution for ARRC start-up projects has already seen significant progress made in the areas of spectral mine imaging, automated mining techniques, advanced seismic technologies, and computer simulation systems for predictive mineral and petroleum exploration.

I would like to congratulate all staff at ARRC for their contribution to a progressive and successful first year of operations. The continuing results of your endeavours will strengthen Western Australia’s and the nation’s ability to successfully compete in the global economy.

The Hon. Clive Brown, MLA

Minister for State Development

4 Executive summary

The official opening of ARRC on 14 November 2001 by the Hon. While the petroleum and minerals industries have enjoyed the Dr Geoff Gallop MLA, Premier of Western Australia, was a great successes of past decades, the future looks to be much momentous occasion not only for CSIRO and Curtin University of more challenging. For example, Australia’s oil production is Technology, but for Australia’s energy and minerals industries, the forecast to fall from 85 per cent of needs to about 50 per cent research community and the State of Western Australia. by the end of this decade, unless there are major new discoveries. In addition, the petroleum and minerals industries As founding members of ARRC, CSIRO and Curtin University are must adapt to meet greenhouse gas responsibilities. However, pleased to embrace the vision of making Perth and Western we see major opportunities through our rich endowment of Australia a world centre for energy and minerals research. It is an natural gas and minerals such as nickel and titanium. Science important part of the agenda for Australia’s success in the and technology will provide us with the capability to meet these knowledge age, for our ability to find new energy and mineral challenges in the best possible way. resources and for the management of our fragile environment. In this, the first ARRC Annual Report, we provide a snapshot of This new way of working together is designed to attract and nurture the Centre’s current and future research activities directed at the the very best scientists with a common purpose, providing them petroleum and minerals industries, describe the capabilities and with world-class facilities for their journey of investigation and expertise of the groups who now reside here and give a summary discovery. ARRC is also designed to be an integral part of the of the significant effort undertaken on four major research energy and minerals industries that are so critical to Australia, projects funded by the Western Australian Government as part of bringing the focus of researchers into the commercial environment the agreement to establish ARRC. and creating a source of new ideas and challenges. Australia’s success in the knowledge age, our ability to find new As home to two CSIRO research divisions, five departments and energy and mineral resources and the management of our fragile Centres of Excellence from Curtin University, Cooperative Research environment are inextricably entwined. They provide the Centres (CRCs) and the new Interactive Virtual Environments Centre national imperative for ARRC and for the vision of Perth as a (IVEC), an impressive range of capabilities can be accessed at crucial international centre for energy and minerals research. ARRC and the opportunities for collaborative research are endless. The groups operating within ARRC are now embarking on an ever- ARRC Directions Committee 2001/02 increasing number of joint projects.

Dr Adrian Williams (Chair) Professor Neil Phillips Professor Paul Rossiter Chief, CSIRO Petroleum (until July 02) Chief, CSIRO Exploration & Mining Deputy Vice Chancellor (R&D), Curtin University of Technology

ARRC commissioning

ARRC is a purpose built centre for Construction began in October 1998 process bays, plus meeting rooms, petroleum, minerals and mining and was completed in July 2001. The teaching facilities, an auditorium, library research and development. Established design philosophy of the Centre was to and canteen. The builder, Multiplex, was at a cost of $37 million, the facility is a portray a practical research and announced the overall winner of the joint venture between the Western commercially orientated image to attract 2002 Master Builders Excellence in Australian Government, CSIRO and visitors and stakeholders to a facility in Construction Awards for construction of Curtin University of Technology. which they feel comfortable and where ARRC. The architects, Design Inc Perth, ARRC residents can project a positive, received commendations in two sections The Centre was commissioned in August progressive face dedicated to serving the in the Royal Australian Institute of 2001 and officially opened by the Hon. industry and community in general. Architects awards. Dr Geoff Gallop MLA, Premier of Western Australia, on 14 November, The building itself is 18,239sqm, Some 230 staff are now resident within 2001. housing 210 offices, 66 laboratories and the ARRC building.

5 Research activities in support of the Australian minerals industry

Over the next decade, the Australian Understanding the Processes Leading to critical competitive advantage in their minerals industry will continue to the Formation of World-Class Ore Bodies exploration programs both here and experience increasing pressure to A comprehensive knowledge of the abroad. This advantage manifests itself maintain its international competitiveness geological properties that characterise in reducing the time to make new in response to: world-class ore deposits, and the discoveries, increasing the probability provinces that host them, is a crucial of discovery and finding deposits of • Low commodity prices (at least in prerequisite to any successful outstanding size and grade. real terms). exploration program. Such information • The discovery of world-class ore Much of the research undertaken in is vital to the whole exploration bodies overseas. this area is conducted through the program from area selection, through Predictive Mineral Discovery CRC •The diminution of many of Australia’s target search and identification to (pmd*CRC). See details under the more easily accessible deposits deposit delineation. pmd*CRC section of this report. forcing exploration and mining activities into deeper, more difficult World-class ore deposits have the Exploration in Regolith Dominated environments. ability to significantly influence Terrains company profitability and a nation’s • The emergence of major mining Much of Australia has a long, complex economic performance. But what are economies in the Asia Pacific Region. landscape history. The presence of ore the unique combination of geological deposits is often masked by extensive In response to these pressures, the events that led to the formation of areas of thick soil, deep weathering and industry will need to continually increase deposits such as Olympic Dam, Argyle cover of continental and marine the efficiency of existing operations and and Escondida and why are these sediments and transported overburden develop new technologies if it is to deposits so large? – collectively referred to as the regolith. maintain its current position as a major player on the international minerals Understanding and identifying the Increasingly Australian mining exploration and mining scene. Research geological, geophysical and companies are being forced to explore conducted at ARRC in support of industry geochemical signatures associated with for ore deposits concealed beneath a clients is aimed at addressing the these world-class deposits can provide landscape that has been subjected to a following key issues. Australian mining companies with a wide range of climatic conditions. The

6 resulting regolith has complex and ARRC’s geophysics capability is overprinted geochemical and significant, given the co-location of mineralogical characteristics that are geophysicists from CSIRO and Curtin not generally amenable to University. Geophysics research carried interpretation using traditional out for the exploration and mining geophysical and geochemical industry at ARRC is also linked with techniques. Understanding the environmental and petroleum behaviour of elements under these geophysics research. changing weathering conditions is a Mining Processes and Equipment problem of direct relevance to the discovery of buried ore deposits, and a The processes of excavating, loading major challenge facing the Australian and hauling rock materials within and mining industry. from a mine, and the equipment used to perform these tasks, accounts for a Much of the research undertaken in major share of mine production costs. this area is conducted through the Cooperative Research Centre for Improvements in the handling and Landscape Environments and Mineral haulage of fragmented materials are Exploration (CRC LEME). See details necessary, since current operations under the CRC LEME section of this (particularly in underground report. environments) are complex and include significant re-handling. To this end, the Geophysical and Geochemical development of productive, Technologies autonomous or semi-autonomous Over the next ten years an array of new equipment is a high priority for the exploration technologies that may change industry and a focus of new research exploration practices and the basis of projects at ARRC in collaboration with competition will become available. The researchers at the Queensland Centre most important will be those that for Advanced Technologies (QCAT). contribute to regional and tenement scale exploration based on a three-dimensional Finally, alternative extraction methods view of the structure of the crust and the are a long-term goal with current efforts focusing on safe, low cost, remote upper mantle, and of the processes at reporting has gained increased controlled mining methods (Remote play in these regions. Of these, research acceptance within the industry over Ore Extraction Systems). Automated at ARRC will include interactive and recent years. integrated three-dimensional forward and Horadiam mining is the first of these inversion modelling and hyperspectral methods being addressed. In response to this heightened imaging spectroscopy from both aircraft community awareness, ARRC The Environment and satellites to identify the mineralogy of researchers are looking at issues such Increasing community concern over the the ground surface directly, together with as mine site emissions (gas, water, social and environmental impacts of its detailed chemistry. dust, pollutants and noise), dryland mining have forced the industry to salinity, provision of water, waste Other advances such as data accept that it must play a proactive role minimisation and disposal, structural manipulation, modelling and visualisation in ensuring the sustainability of the damage (blasting and subsidence) and procedures will facilitate the exploration community and physical environment mine site rehabilitation and site and interpretation process. in which it operates. Triple bottom line abandonment standards.

7 CSIRO Exploration and Mining

With over 250 scientific, technical and support staff, CSIRO Exploration and Mining is Australia’s largest supplier of strategic R&D to the Australian mining industry. The Division has a major presence in Brisbane (Queensland Centre for Advanced Technologies), Sydney and Perth (ARRC) and a smaller, but expanding, presence in Melbourne.

The Division’s research activities span the full spectrum of the exploration and mining process from exploration • Mechatronics – the development of In parallel with Glass Earth, the Division concepts, exploration technologies, theory and practice for intelligent is developing the science and deposit delineation through to coal and machine systems. technology needed for safe, economic metalliferous mining. Occupational A current focus for the Division’s and sustainable access to new and health and safety and minimising the researchers at ARRC and around existing mineral resources. A major environmental impacts of mining are Australia is on ‘seeing’ into the top thrust is the automation of mining also key research themes. kilometre of the Earth’s crust to aid systems to optimise efficiency, safety discovery of major new deposits and economic success. CSIRO Exploration and Mining has concealed below the surface. The “Glass identified three core science areas Earth” portfolio of projects will develop which underpin all of its research new technologies to recognise ore- activities: bearing systems and new ways of • Earth dynamics – the study of integrating and visualising exploration processes that operate from deep in data to produce exploration models for the Earth’s mantle through to prospective areas. It also provides surface interactions with the valuable scientific information for hydrosphere and atmosphere. agriculture and land use programs. • Geo-Infomatics – understanding processes from whole-of-Earth down to the nanometer scale which requires the gathering, integration, visualisation and assessment of vast amounts of data.

CRC LEME

The Cooperative Research Centre for knowledge of Australia’s regolith – the Landscape Environments and Mineral layer at the Earth’s surface that is the Exploration (CRC LEME) is an result of weathering, erosion and unincorporated joint venture between deposition. Over time, such physical CSIRO, Curtin University of Technology, actions distort the landscape, alter the Australian National University, environment and disguise the existence University of Adelaide, University of of valuable ore bodies. By generating Canberra, Primary Industries and greater knowledge of such processes, Resources South Australia, New South the minerals industry is better able to Wales Department of Mineral Resources develop effective exploration tools for and Geoscience Australia. The Centre is detecting world-class ore bodies and dedicated to developing breakthroughs land use management groups to address in mineral exploration and key environmental issues such as environmental management through dryland salinity.

8 pmd*CRC

The Predictive Mineral Discovery importance to ore discovery. The aim of focused on resolving key areas of Cooperative Research Centre (pmd*CRC) pmd*CRC is to maximise the impact of uncertainty in current models for the is an unincorporated joint venture research outcomes on exploration formation of major economic mineral between CSIRO, University of Melbourne, strategies by direct delivery of the deposit types; building 3D and 4D images Monash University, James Cook research results to active explorers and histories of well known mineralised University, The University of Western employed by the participating companies. systems; and creating a computational Australia, AMIRA International and The pmd*CRC will develop a vastly environment to simulate the 4D evolution Geoscience Australia. The Centre was improved understanding of mineralising of mineral systems with the goal of conceived by industry in partnership with processes and a four dimensional developing predictive capabilities for the research community to focus understanding of the evolution of the location and quality of superior ore geological research on issues of critical geology of mineralised terrains. Efforts are deposits.

Research highlights

Cost-effective Regolith Geology of the Yilgarn Craton publication in the Australian Journal of Exploration for Nickel Earth Sciences (Thematic Issue: Regolith The Earth’s surface layer (known as Geology of the Yilgarn Craton). The users Working with Black Swan regolith) contains important chemical of this new reference material include the Nickel, researchers from signals about mineralisation which can scientific community, mining companies, CSIRO have developed a lead to the discovery of concealed ore earth scientists and tertiary students. The new understanding and deposits. However, because the regolith material summarises the distribution and knowledge of the eruptive processes and landscape constantly develop and characteristics of regolith materials, responsible for the formation of volcanic evolve, the application of certain presents models of the landscape and sequences and associated nickel deposits exploration techniques can prove difficult. regolith evolution, looks at implications for in Western Australia’s Black Swan area. Effective geochemical exploration can mineral exploration – including choice of only be achieved by understanding how The project has involved petrographic, geochemical sampling media, data the regolith evolves and by determining mineralogical and geochemical studies on interpretation and application of which sample and data-interpretation surface and sub-surface samples, allowing geophysical techniques – and presents an techniques are appropriate to the target the team to gain an insight into lava improved understanding of landscape and being sought. A research team led by emplacement mechanisms and develop a regolith impacts on agricultural and CSIRO has been successful in volcanological model for the evolution of environmental issues. establishing the origin of the regolith, the the Black Swan sequence. geomorphological processes and the This new knowledge of the Yilgarn Craton Using the model and their improved regolith-landform relationships for many will reduce exploration costs, leading to understanding, researchers were able to districts of the Yilgarn Craton in Western more economical mining. provide specific recommendations Australia to help devise effective sampling regarding the continued prospectivity of and data interpretation strategies. “Congratulations on the publication of the Black Swan area and the possible The work, which has involved mining your magnum opus in the latest location of further mineralisation. The Australian Journal of Earth Sciences. It companies, Curtin University of research results provide some crucial is an excellent overview which I’m sure Technology, The University of Western pieces of the nickel jigsaw which add will become widely cited.” Australia and Geoscience Australia, has considerable knowledge to the formation - Peter A. Cawood, Tectonics Special Research Centre resulted in the production of a regolith- of nickel deposits and the development of and Centre of Excellence in Mass Spectrometry, landform map of the Yilgarn Craton and Curtin University of Technology, Perth, Australia enhanced industry-wide more cost- effective exploration strategies. Western Australia “The model CSIRO has developed is showing the location important and when we select an area for of the Yilgarn Craton. exploration we are usually guided by that model. The model was used, for example, in the selection of the Black Yilgarn Craton Swan project area where we subsequently discovered the Silver Swan ore body.” CRCLEME - David Burt, Mining Project Investors (MPI), Perth, Australia Kalgoorlie Perth Mt Joel.

9 Research activities in support of the Australian petroleum industry

The energy sector is a key component of Research for Australia’s oil and gas systems to evaluate hydrocarbon the Australian economy, heavily industry needs to focus on increasing occurrences and oil migration and influencing domestic economic reserves through more successful entrapment. performance, international competitive- exploration and recovery rates, • Fault seal and basin hydrodynamics ness and export earnings, directly particularly for oil, whilst developing the research looking at present and through energy commodity exports, and technologies needed to address palaeo fluid flow and transport as embedded energy in downstream Australia’s declining liquid fuels processes in sedimentary basins, manufactured products. outlook. As a regional hub for oil and gas fault seal potential and CO2 technology development, research at geological sequestration. The world energy system is on a path of ARRC in support of the petroleum transition with: • Modelling of fluid in porous media industry covers the following areas. • New methods for incorporating •World oil supply expected to peak Exploration and Appraisal Technologies sub-surface and surface geophysical within the next two decades, while and well-test information into demand continues to rise. Increasing exploration success through better understanding of all the elements detailed descriptions of hydrocarbon • An abundance of gas with of the petroleum system from source reservoirs, involving the increasing market penetration. rock characterisation and thermal combination of high resolution and • Declining market share of coal. maturity studies through migration and low-resolution data in an advanced • Increasing concern for entrapment will attract continued geostatistical framework. environmental issues (greenhouse, exploration activity and investment. • Seismic physical modelling clean air) driving increased interest •Computer-based stratigraphic Research capabilities at ARRC applied and growth in renewable energy. modelling to simulate the process in this area include: Australia’s transport sector consumes of sedimentary basin fill over time some 41 per cent of the nation’s • Isotope chemistry techniques for in order to predict reservoir quality demand for energy, with 90 per cent of determining the age of mineral and better understand where oil the sector reliant on liquid fuels. While formations; and reservoir might be trapped. our overall demand for oil is forecast to characterisation using Nuclear • 3D visualisation using IVEC increase to 50 per cent above year 2000 Magnetic Resonance (NMR) facilities. levels by 2020, it is predicted imaging to determine rock CSIRO has already developed Australia’s oil production will decline properties. technologies and techniques in many of sharply during this period. • Investigating fluid history of the above areas. Co-location with Cutin petroleum reservoirs and petroleum University researchers is now creating

10 even greater opportunities to further develop technologies relevant to exploration in Australia and around the world.

Geophysics research in this area is carried out by CSIRO and Curtin University’s Department of Exploration Geophysics who work together closely on projects and have jointly appointed a Chair of Petroleum Geophysics. Together the two organisations are carrying out a research program funded by the Western Australian Government dedicated to developing seismic applications for the minerals and petroleum industries.

Drilling and Drilling Fluids Wellbore instability is an industry wide problem with global annual costs estimated at more than $2 billion. CSIRO scientists Mr Leo Connelly (left) and Dr Bailin Wu (right) set up Research directed at these problems is a rock strength test in the Autonomous Triaxial Cell. focused on drilling fluid design, development and optimisation to tackle problems of wellbore stability, sand every level of a company and range Gas research is looking at the production and waste management. across technical, economic, development of new and novel Success will see further adoption by oil commercial and political issues. Yet technologies for the exploitation of companies of CSIRO’s state of the art traditional science offers little when Australia’s stranded gas reserves and other wellbore stability technologies and new issues of judgment, interpretation and gas reserves world-wide. Current effort is water-based environmentally friendly choice of action arise. focused on the development of drilling fluids. technologies for the conversion of Research into decision-making under Australia’s abundant gas to transport Research directed at drilling is also risk and uncertainty is focused on key fuels, particularly clean diesel. conducted in close association with enhancements of existing software Exploitation of the technologies developed oil companies to develop technologies technologies to deliver new will see commercialisation focused on that will cut drilling and well technologies for decision support to Australia’s remote location gas. completion costs. Knowledge management industry. These include probability (learning, case-based reasoning, and statistics, and techniques to Geothermal energy is potentially a large statistical analysis, artificial intelligence), manage the qualitative/human side volume, emission-free, renewable, as demonstrated through the recent of decision-making. This tackles energy source for Australia that could commercialisation of CSIRO’s Genesis both the intellectual problems of significantly reduce dependency on 2000 technology, is a particular strength interpretation, analysis and synthesis fossil fuels and their associated of the research group. Further involved in conceiving ideas for greenhouse gas emissions. Australia development of the Genesis software is effective decision-making, and the has the hottest rocks in the world underway and a new Hard-to-Drill Rock practical problems facilitating the (outside volcanic regions), as well as project aimed at improving drilling resultant actions and change process the easiest to access. The current performance in hard and impermeable itself. research effort and new initiatives formations through controlled vibrations proposed are focused on proving of the drilling system has begun. Sustainable Energy Development the viability of energy from “hot dry Research into alternative energy sources rocks”, and directed at reservoir High Quality Decision-Making and to address Australia’s declining liquid characterisation and management Fast Learning fuels outlook is a priority for CSIRO technologies, well stimulation Decisions within the oil and gas Petroleum scientists throughout strategies, heat transfer and energy industry are particularly vulnerable to Australia. Effort is concentrated on conversion, drilling technologies and uncertainty. Decisions are made at gas-to-liquids and geothermal energy. risk assessment.

11 CSIRO Petroleum

CSIRO Petroleum provides R&D and technical services to the petroleum industry in Australia and around the world. The Division has 150 staff operating across three sites: Perth head office (ARRC), Sydney and Melbourne.

The Division’s research is currently Research highlights focused on increasing exploration success, improving appraisal and Green Drilling development efficiency, improving Worldwide, the oil industry suffers an “With worldwide environmental drilling and completion performance, estimated $2 billion loss every year due restrictions becoming increasingly CO2 sequestration, geothermal energy, to collapsed and sidetracked holes, lost stringent on the use of synthetic-based gas to liquids technologies, coalbed tools and abandoned wells. Researchers and oil-based drilling fluids, the methane, management of gas-in-coal for from CSIRO in conjunction with US firm successful introduction of the high mining and new tools for managing risk Halliburton Energy Services’ Baroid performance BarOmega drilling fluid and uncertainty. Drilling Fluids, have developed system will provide the needed answer environmentally friendly drilling fluids to for the industry to mitigate shale The Division’s science base is made up alleviate this industry headache and at stabilisation problems and at the same of three core capabilities: the same time help the energy industry time, to meet stringent environmental • Geosciences – organic to meet its green commitments. compliance.” geochemistry; organic petrology; Drilling fluids help transport cuttings to - Mike Cropper, Senior Drilling Engineer, Apache geochronology and isotope Energy Limited, Perth, Australia geochemistry; carbonate geology; the surface, clean and cool the drill bit, geochemical modelling; structural lubricate the drill-string, maintain the “After years of research we have been geology and fault analysis; stability of the wellbore, protect able to identify a chemistry that will hydrodynamics and fluid history in formation productivity and control provide the inhibition and shale petroleum reservoirs; seismic pressure in the rock formation. Most stabilisation characteristics which, until geophysics; mathematical modelling current drilling fluids for maintaining now, are only seen with ‘oil based’ of geological processes; rock wellbore stability in shales are either oil invert emulsion fluids. At the Baroid physics and petrophysics; and or synthetic-based and, because they are Product Service Line of Halliburton, geostatistics. usually disposed of at sea, do not meet we’re looking forward to seeing the environmental compliance obligations or performance of the BarOmega system • Geo-engineering – petroleum are costly to use in a way that meets realised in the field in the near future. geomechanics; reservoir these obligations. With environmental restrictions engineering; hydraulic fracture governing the discharge of oil based and mechanics; mathematical modelling CSIRO’s new water-based drilling fluids synthetic based fluids increasing around associated with non-linear coupled overcome environmental and cost the world, the introduction of the processes; wellbore mechanics, drawbacks and have similar performance BarOmega system will provide the drilling fluids hydraulics and characteristics to oil and synthetic- answer for high performance water multiphase flow; drilling based fluids in maintaining shale based fluids.” performance; data management; stability. The formulations are being drill string mechanics; and risk commercialised by Baroid as the - Mr Tom Carlson, Technology Leader (Solutions assessment and decision making. BarOmega drilling fluid system. Team), Halliburton Energy Services, Houston, USA • Gas Process Engineering – gas to liquids; energy transformation; nanotechnology at surfaces; production, distribution and storage of hydrogen; catalysis; environmental control; and fuels

processing. CSIRO Petroleum’s Aileen Boudeville (left) and Dr Chee Tan (right) monitor mud filtrate flow rate in CSIRO’s Membrane Efficiency Screening equipment. 12 Faster, Cheaper Drilling CSIRO drilling and completions researchers have successfully teamed up with Noble Engineering and Development Ltd to commercialise a new generation oil-drilling tool with the ability to help slash the costs and boost the success of drilling for oil.

Offshore exploration wells typically cost Making the Good Oil Decisions mature over time, as gut feel, intuition up to $10 million – but unforeseen and judgment develop in the light of CSIRO’s risk and uncertainty research snags can blow this out to nearly $30 better information and improved group have been working with UK’s million. The Genesis 2000 software processes. Juniper provides a snapshot Bristol University to come up with a package allows easy analysis of existing of the state of health of a process that powerful new way to ease the difficulty oil well data which can be used as a can prompt action to be taken. As those and uncertainty of critical decisions in planning tool for improving new wells. actions lead to better evidence or clarity, the oil industry. The technology gives drilling engineers, it can be updated and become a living, rig staff, asset managers and financial Designed to equip junior and mid-level repeatable and auditable guide for controllers the ability to assess risks and executives with the judgment of managers. Because the underpinning costs, and amend plans on the basis of experienced senior managers and to technology stores all the reasons behind experience gathered from previous oil balance clear objectives, resources, the judgments being made, it has big well developments. team motivation and monitoring, the implications for corporate learning and new Juniper software could potentially allows companies to tap the wisdom and Under the alliance, CSIRO retains save the oil industry millions of dollars experience of managers who may have ownership of the intellectual property by providing improved decision-making left, retired or been promoted into other used in the original $12 million project to processes. It provides a simple, powerful jobs. continuously develop the technology visual representation of evidence and through its internal and external scientific In a recent independent market test belief for any management challenge. network. Noble has the exclusive right to exercise carried out for CSIRO by commercialise the product. Over the next The new approach captures values Nightingale Consulting, initial responses two years, Completion and Workover representing the user’s strength of belief to the new decision-making approach modules will be coupled into Genesis to and the reasons behind them, turning it from the oil and gas industry have been offer oil companies a complete system for into an audit tool. It recognises that extremely positive. Three companies enhancing well quality over the life-span management is a process – not an event wish to trial the new process on pilot of the well. – that decisions don’t just happen, but projects.

“You can use it to manage the question ‘do I develop this field?’ There are environmental issues, there is due diligence.... You need to be able to work out your risks and whether you’ve mitigated them. The risks are typically in what you don’t know rather than what you do know.” - Keith Spence, Director, Woodside Energy Ltd, Perth, Australia

“Two things look really good. The first is the social aspect of this. The second is

Dr Edson Nakagawa (left) and Dr Thomas the trail it leaves which is really important.... This is a very clever way of attacking Gabler (right) of CSIRO Petroleum discuss part of that process.” future enhancements to the Genesis - Chris Wright, VP Exploration, Houston, USA software package. 13 Curtin University of Technology

The Curtin University of Technology Departments which form part of ARRC include Petroleum Engineering and Exploration Geophysics. These groups are part of the Curtin Division of Resources and Environment, which will soon be headquartered in Technology Park, directly opposite ARRC.

Each department has been recognised by the Western Australian Government with Centre of Excellence status – the Western Australian Petroleum Research Centre and the Centre of Excellence for Exploration and Production Geophysics. ARRC also housed the Centre of Excellence for Petroleum Geology during 2001/02.1

Research at the Department of Exploration Geophysics and the Centre of Excellence for Exploration and Production Geophysics is directed at improving recovery of hydrocarbons and minerals from known sources by the use of advanced geophysical imaging techniques. It is also involved in mineral and groundwater exploration research. The development of future geoscientists for industry is also one of the Department’s major roles. industry. This combination of talent potential to make small and The Centre of Excellence in Petroleum provides a strong theoretical base isolated gas accumulations 1 Geology has expertise in areas such as coupled with a practical approach to economically viable. petrophysics, basin modelling and solving real-life industrial problems. Each Curtin group has an industry seismic interpretation. Research advisory committee and total funding is projects are geared at developing a The Woodside Research Foundation is mainly from sources external to the better understanding of the North West another arm of the Department of normal DETYA funding flow. The Shelf and other key reservoirs, Petroleum Engineering. Located Woodside Foundation, Curtin Reservoir improving the predictability of reservoir opposite ARRC in Technology Park, Geophysics Consortium and the Curtin quality and improving petroleum facilities include: Minerals and Environmental Geophysics recovery. • Hydrate Facility – natural gas Consortium are industrial sponsor groups, The Department of Petroleum hydrate production to establish the in addition to individual project sponsors. Engineering and the Western Australian viability of utilising a synthesised Degrees offered Petroleum Research Centre (Curtin natural gas hydrate as a node) is a supplier of top quality cheaper/alternate form to transport • Bachelor of Science, with Honours teaching, research and consultancy to natural gas other than LNG. in Applied Geology and in the oil and gas industry. Its industry- • LNG Microcell – The LNG Micro- Geophysics focused research and development cell technology enables the • Graduate Diplomas in Geophysics program offers novel, cost-effective conversion of natural gas to liquid • Postgraduate Diploma in solutions to complex engineering natural gas in small-scale Geophysics problems. Staff have a proven track production by means of an • Master of Science degrees in record in academia as well as many innovative transportable Geophysics, Applied Geology and years of experience in the petroleum refrigeration system. It has the Geoscience Exploration

1The activities of this Centre have now been merged into the Department of Petroleum Engineering. 14 • Master of Petroleum Engineering In addition, the three groups are • Master of Engineering (Petroleum participants in the Master of Petroleum Engineering) Technology based at the Miri Sarawak campus of Curtin. • Doctor of Petroleum Engineering • Doctor of Philosophy in Geophysics, Staff Applied Geology and Petroleum Professors: ...... 8 Engineering Associate Professors: ...... 4 • Double degree in Geophysics and Senior Research Fellows/ Computing, jointly offered by Curtin Senior Lecturers: ...... 7 University and University of Western Lecturers/Research Fellows: ...... 3 Australia

Specialised facilities • Seismic processing centre with • Hydrate processing pilot plant Landmark/Promax software •Cryogenic PVT • Seismic physical modelling system • Small scale LNG processing equipment

Students based at ARRC 2001/02 Course Geophysics Geology Petroleum Total Engineering BSc 40 40 BSc Hons 17 2 19 Grad Dip 0 Postgrad Dip 2 2 4 MSc 3 5 8 M Pet Eng 19 19 Doc Pet Eng 1 1 PhD 18 5 5 28 Extension 5 5

Research highlights

The pair evaluated a prototype field Continuous Seismic Monitoring of monitoring of operating oilfields. portable instrument, commonly used for Operating Oilfields Researchers at the University of Paris measuring lead content in paint, to would also like to participate and assist Investigations into the use of time determine its effectiveness in measuring in laboratory tests and contacts have reversed acoustics as a tool for metal grade. With some known difficulties been established with the University of geophysical processing has led Curtin and differences compensated for, they Manitoba and the University of Calgary, researchers to develop a methodology for were able to advise the equipment as field tests may also take place in using time reversed acoustics to image manufacturer on the necessary Canada. changes in the sub-surface, allowing modifications needed to adapt the existing better monitoring of reservoir changes. Metal Grade Results in instrument for use in the mining industry. This has resulted in a technique for the Palm of Your Hand continuous monitoring of oilfield The resulting instrument, the hand held Curtin University’s Dr Anton production. Using a multi-source, multi- NITON XL-500 Prospector, now means a Kepic has worked in receiver seismic system, it is also ideal geologist may know within minutes the conjunction with an grade of mineralisation rather than wait for monitoring CO2 injection in oil and Honours student to help gas wells. A provisional patent for the days or up to a week for chemical analysis develop an instrument technique has been granted. from a laboratory. Anaconda Nickel has designed to directly measure the nickel adopted the instrument for mine grade The interest of Shell International has and copper content of ore and drill control and other companies are now been secured for a field trial of this samples using field portable X-ray evaluating the instrument for rapid and concept of continuous seismic fluorescence analysis. effective exploration.

15 Interactive Virtual Environments Centre (IVEC)

Officially opened on 10 May, 2002, by of the earth or the sea. Imagine taking making 10 billion calculations per the Hon. Dr Geoff Gallop MLA, Premier investors through a computer-modelled second. This super computer is at one of Western Australia, the Interactive gold mine — before mining has started! end of the fibre optic network which Virtual Environments Centre (IVEC) is a Imagine engineering safe mines, with links IVEC’s other two nodes – Central high performance computer visualisation fewer mine failures and more efficient TAFE in Perth and The University of centre focussing on the application of exploration and production of oil and gas Western Australia (UWA) in Nedlands – interactive virtual environments into reserves. This tool is of great where additional 3-D screen systems major industries such as: mining and significance to CSIRO and Curtin and haptic workbenches are operated by petroleum, medical training and University researchers who can now view experts recruited from around the world. research, architecture and construction, these resource deposits using specially IVEC has funding of $4 million from the multimedia, education and urban designed computer-models in the State and Federal Governments and planning. comfort of IVEC’s 3-D visionarium at joint venture partners. ARRC. Using such techniques will IVEC is a joint venture between CSIRO, reduce exploration costs, increase Curtin University, Central TAFE and The extraction efficiency and increase the University of Western Australia. The competitive edge of the Australian commissioning of IVEC’s high resources industry. performance fibre optic network at ARRC links fast computers and exciting Also located at ARRC is a haptic virtual reality devices at IVEC’s three workbench, which is an amazing force- Perth nodes and connects IVEC’s feedback robotic device providing users researchers to Australia’s fastest super with 3-D virtual reality viewing, and computer, the Australian Partnership for IVEC’s super computer capable of Advanced Computing National Facility, in Canberra.

Virtual environments are particularly effective when they allow users to tackle problems in areas of high capital or social cost. Three-dimensional virtual environments are being increasingly used to visualise mineral and petroleum reserves that may be hundreds and even thousands of metres below the surface

The Premier officiates the opening of IVEC The Premier tries out IVEC’s haptic work bench. with IVEC Chairman Alex Allan. 16 State funded ARRC start-up projects

“Spectral Mine Sight”– mineral mapping technologies for enhanced mining applications CSIRO’s Erick Ramanaidou sets up the Spectral in Western Australia Mine Site System to use in feild trials.

Iron ore mining in Western Australia is a Project deliverables obvious impact on preserving regional major source of export income for •A prototype mine-based system – employment levels. Australia, but with falling reserves of Spectral Mine Sight. Communication of project results to date high-grade ore, companies are under • Documentation of operational has taken place through case history increasing pressure to provide consistent methods and software for Spectral reports, conferences, industry workshops chemical and mineralogical ore grade. To Mine Sight data validation. and through a feature article in the tackle this problem a revolutionary mine- Australian Institute of Mining and based imaging system called “Spectral •A number of case-history reports Metallurgy’s Bulletin magazine Mine Sight” has been developed by detailing the successful application (March/April 2002). CSIRO Exploration and Mining of Spectral Mine Sight to iron and gold ore mining in Western Australia. researchers at ARRC. Spectral Mine Sight Funds were provided by the State • Spectral Mine Sight derived 3-D ore is based on visible-near-infrared – short- Government for this project until June grade maps. wave-infrared (VNIR-SWIR) reflectance 2002. The team are now seeking funding spectroscopy which provides information •Technology transfer to the State’s from iron ore companies to further about ore types, their chemistry and minerals industry through reports, develop the existing technique and mineralogy. The new technology allows conferences and workshops. produce customised software for mines. mineral images of the mine face to be • Specifications for an end-to-end generated. Contact: Erick Ramanaidou operational Spectral Mine Imaging Ph: + 61 8 6436 8810 system. The capability has already been Email: [email protected] demonstrated by spaceborne and Potential benefits and progress to date airborne imaging systems as well as In addition to improved ore grade hand-held instruments. The aim of the models, other benefits of the Spectral project has been to fill the gap and bring Mine Sight technique include: improved this technology to the mine-scale level to understanding of mine design and produce new mineralogical maps that will geotechnical issues; improved have major impact on ore grade understanding of ore forming processes; characterisation and ore recovery. The and safety (away from the high walls). newly developed Spectral Mine Sight Beneficiaries of the research will include Pack Saddle road cut, 130km NW of Newman. system comprises a field portable State-based mining companies such as spectrometer, a Hamersley Iron, Robe River, BHP double axis rotating Billiton, Anglo-American, KCGM and stage, a one-degree Western Mining Corporation. The iron field of view ore, gold, talc and nickel industries will telescope and benefit from Spectral Mine Sight as it custom software. will help them to enhance deposit delineation and ore grade characterisation as well as improve Same location as above showing a hematite:geothite ratio generated from spectral analysis. Hematite-rich recovery. Better deposit delineation will is purple, geothite-rich is yellow, vegetation is green also lengthen the life of the mine and has and sky is blue. Horadiam stoping platform

Automated Horadiam mining equipment

According to AGSO (Geoscience Project participants include CSIRO, During the first phase of the project (July Australia), Australia currently has a large Curtin University (Western Australian 2000 – June 2002) a comparative “para-marginal” resource that could School of Mines), mining companies and feasibility study for four ore bodies in easily become economic with the equipment suppliers. Western Australia has indicated cost introduction of new mining technology. reductions of between 6 per cent and 20 Project deliverables An analysis of AGSO figures and known per cent. A feasibility study of a orebody characteristics shows the • Design and fabrication of a basic Queensland and South Australian ore potential exists for more than $100 automated mining platform to be body also indicated significant saving. billion of contained metal in this used for testing automated drilling Initial mine designs have been prepared resource to become economic using and robotic manipulators from within and at least three of the ore bodies Automated Horadiam – a new technique a raise bore hole. previously considered sub-economic are being developed by CSIRO and Curtin • Included in this equipment will be a now considered economic. The basic University. Automated Horadiam is part level of survey/guidance technology concepts of the proposed equipment of CSIRO’s long-term research into required for testing. have been developed further and Remote Ore Extraction Systems (ROES). • Comparative feasibility and cost costings obtained. Expressions of studies for comparison with interest have been received from mining Existing horadiam methods require conventional techniques. companies and further CSIRO funding to miners to drill blast-holes from within continue the project has been confirmed. a shaft and radially outward in a sub- •A report covering preliminary Risk assessments, industry consultation horizontal plane. The holes are filled laboratory test work of the and an independent review have also with explosives and then blasted. The equipment and recommendations for been completed. The project is expected confinement of the shaft and the risk the complete mining system design. to evolve into full-scale trial mining in 2 of rock falls make the task hazardous, Potential benefits and progress to 3 years with a possible first site in the and therefore it has limited to date Western Australian Goldfields. Success application. Automation or remote • Reduced injury and severity rates for of the technique will depend on the control of this process will allow underground hard-rock mining due to ability to operate drilling and explosive miners to work from the safety of reduced exposure. placement equipment without access by remote control rooms without the • Increased profitability from bulk operators and this will be the focus of the associated hazards. Automated mining with reduced costs for next stage of research beginning 1 July Horadiam mining can be applied to a existing mines. 2002. wide range of orebody types and • Increased ore reserves with greater replace existing techniques such as conversion of resources into reserves. In addition to direct consultation and open-stoping. It has potential to communication of findings to industry, • Improved business for the deliver significant cost savings and the Automated Horadiam technique was manufacture of heavy mining safety improvements to make many featured in the May 2002 issue of sub-economic orebodies viable equipment in Western Australia. Australia’s Mining Monthly. (expanding the economic resource). • Increased royalty revenue to the Ultimately the Automated Horadiam State Government with increased Contact: Jock Cunningham machines will safely drill, load mine life as a result of the increased Ph: + 61 7 3327 4699 explosives and initiate blasts. reserves. Email: [email protected]

18 Development of seismic applications for Western Australian conditions for the mineral and petroleum industries Seismic methods used for exploration Project deliverables are the most powerful of all the • Development of numerical modelling geophysical imaging techniques due to code using finite difference methods. their depth of investigation, directivity • Analog modelling of synthetic rocks and structural resolution. However, to recreate reservoir processes. there still remain some technical impediments to seismic methods in •Time reversed acoustics to apply to both the minerals and petroleum reservoir imaging problems. • Diffraction based imaging to stack industries. Seismic imaging in areas of Artificial sandstones made from quartz the North West Shelf can be hampered scattered seismic energy in mineral sand and cemented with calcite using CIPS by energy scattering processes and exploration. (Calicte In-situ Precipitation System). The rocks reproduce the acoustic and fundamental research to understand The broad research strategy for this mechanical properties of natural and develop the technology to address project consists of three phases: research sandstones and individual physical properties such as porosity, permeability the problem is needed. In the mining of the concepts, development of the industry, more research into applying and strength can be precisely controlled for techniques and transfer to industrial laboratory experiments. The rocks have seismic technology and petroleum- production processes. applications in geophysical, petrophysical based ideas to the hard-rock and geomechanical research. environment is also required. Potential benefits and progress to date Advances in our ability to model the recent advances in physical modelling Improved and refined seismic techniques complexities of seismic responses both which combines sandbox experiments to explore and delineate petroleum numerically and using scaled physical with a synthetic cementation technique reservoirs and hard rock ores have a direct models will greatly improve the (CIPS) developed by CSIRO Exploration impact on the discovery and the efficient application of seismic methods. The co- and Mining. Initial work established the recovery of these resources. Improvement location at ARRC of CSIRO Exploration viability of this technique to constructing of even 2 per cent in the recoverability of and Mining, CSIRO Petroleum and synthetic rocks, with a high degree of an oil reservoir and the reduced number of Curtin University’s Department of control on the properties such as wells to delineate a discovery has an Exploration Geophysics, along with the cementation strength, velocity, porosity enormous impact on the economics of the joint appointment of a research and permeability. The effort on time reservoir, while the addition of the professor in petroleum geophysics, has reversed acoustics has involved reconnaissance ability of seismic to the created an integrated centre of establishing the application of the mining industry as an analog of what has expertise for geophysical research with techniques for focusing on multiple revolutionised the petroleum industry the ability to understand and develop generation and looking at imaging would have immediate impact on solutions to fundamental seismic changes observed in 4-D seismics. exploration success and risk reduction in problems in Western Australia in order the mining sector. With a decrease in the to develop a suite of effective Research findings are being continuously discovery of shallow mineral deposits, this technologies. communicated to the industry through makes the development of viable seismic conference papers and direct meetings. This first ARRC seismic project has exploration methodologies critical to the Future work is planned to further develop been driven by the need for new future of the minerals sector. the viscoelastic components of the simulation and visualisation tools, and numerical modelling code and joint To date, considerable progress has been revolves around the development of a development of the web modelling made in numerical modelling, with the distributed software architecture to interface. Efforts will be concentrated on building of sophisticated code that can access many forward modelling establishing the analog modelling handle 3-D isotropic and anisotropic capabilities from a single user interface. techniques to a multiple set of problems response in a heterogeneous media. It can This capability will provide a platform in partnership with the petroleum industry also handle 2-D viscoelastic response with for interpretation based upon multiple and in support of research efforts in the plans to develop to 3-D response. There is data sets, of which seismic data is one. proposed CRC in CO2 sequestration. high recognition that this code is superior Project participants include CSIRO, in flexibility and complexity than most Contact: Kevin Dodds Curtin University and The University of codes currently available in the industry. Ph: + 61 8 6436 8727 Western Australia. The analog modelling research is based on Email: [email protected]

19 Geologist preferred solution

Simulation systems for predictive exploration Self organising map: 2D representation of multi-dimensional input parameter space and resource extraction mapping various model runs used by geologists in the modelling process.

The mining and minerals industries make Project deliverables with ore body formation. In the past, a a fundamental contribution to the wealth • 3D and 4D geodynamic modelling geologist conducting numerical models of all Australians, however the mining codes which simulate the geological would vary a number of input parameters industry in Australia is now facing a series and geo-engineering conditions such as stress and heat at the boundaries of the model (a 2-D or 3-D “box”) to test of challenges. The spectacular growth within which petroleum and which combination of variables would experienced over the past decade in the minerals systems form and from produce the geologically sensible real value of Australia’s subsoil assets is which they are extracted. outcomes they were attempting to the result of a series of impressive • Interactive software systems which reproduce. Given that each test can take enable users to consider “what if” exploration successes in the 1970s and hours to weeks to run in the computer, scenarios associated with the 3D 1980s. It’s now 25 years since the the process is slow and inefficient if thermal-chemical-fluid flow- discovery of Olympic Dam – the last done in a sequential manner. This deformational history of a specific mineral deposit discovered in Australia slowness is a major impediment to the region of the Earth’s crust, from with a Net Present Value (NPV) of greater application of numerical modelling to basin scale through to engineering than $1 billion. many practical mineral exploration scale. problems. A major step forward in The next round of significant discoveries • Advanced interactive visualisation addressing this difficulty is the inversion in Australia will depend on the systems for exploration-friendly in geology algorithm developed by development of far better conceptual software. These are being developed CSIRO. This provides a mathematical targeting procedures based on a generic through the Interactive Virtual tool for changing a number of parameters Environments Centre (IVEC) and understanding of ore systems and the simultaneously, meaning that many focus on geologically realistic modelling runs can be undertaken at the ore forming process, together with new numerical procedures. same time to more rapidly produce geophysical and geochemical geologically sensible outputs. Results technologies. To address this, a research Potential benefits and progress can be selected for closeness to reality by team at ARRC has been developing to date an experienced geologist and the computer simulation systems for A new world-class discovery would make algorithm can then select starting predictive exploration and subsequent a significant contribution to Australia's parameters using the information gained resource extraction. The outcomes economy and mean an increase in the from the geologist’s visual inspection. include a set of predictive exploration per capita wealth of Australians. The Therefore, this work will allow rapid major beneficiaries of this Predictive and engineering tools which form the selection of parameters to produce Systems research program will be the basis for a set of models which simulate realistic outputs in known geological Australian petroleum and exploration the origin and evolution of sedimentary environments. Exploration geologists will industries (and in turn the Australian basins and collisional mountain terrains. then be able to use these parameters to community). apply to their geological prospects to determine if mineralisation is possible Project participants include CSIRO, Principal activities in this project during and, if so, what form it might take. IVEC, The University of Western the 2001/02 financial year were in the Australia and students from Curtin area of ‘inversion in geology’ – a Contact: Paul Roberts University of Technology and the technique used in the computer Phone: + 61 8 6436 8758 University of Western Australia. simulation of earth processes associated Email: [email protected]

20 Finance

Total 2001/02 investment in research and support services at ARRC by CSIRO and Curtin University is summarised in the following table.

Expenditure Staff Operations Infrastructure TOTAL Funding Institutional* External TOTAL Category ($ ‘000) ($ ‘000) & Support ($ ‘000) ($ ‘000) ($ ‘000) CSIRO 8,872 5,783 5,630 20,285 CSIRO 11,741 8,544 20,285 Curtin University 2,055 2,294 464 4,813 Curtin University 2,021 2,792 4,813 Total 10,927 8,077 6,094 25,098 Total 13,762 11,336 25,098

* Direct Government funding to CSIRO and Curtin University Research support and human resources

ARRC houses some 230 staff from CSIRO Exploration and ARRC staff numbers as at 30 June 2002 Mining, CSIRO Petroleum and Curtin University of Technology. CSIRO Petroleum CSIRO Petroleum, as the service provider for ARRC, is 02341 5678910111213 responsible for the building and its environment. This is Geophysics managed through the ARRC Operations Team, who has Drilling Fluids & Wellbore Mechanics responsibility for all aspects of this service provision – Human Decision Systems Resources, Finance, Information Technology and Operations, Predictive Geoscience including the Library. Geofluid Dynamics Drilling & Completions Staff have been recruited and relocated from CSIRO and the NMR & Isotope Chemistry Marketing & Business petroleum and minerals industry locally, from the eastern Development seaboard of Australia and overseas. In addition, a number of Research Support students, fellows and visiting scientists work within the research groups at ARRC. CSIRO Exploration and Mining

Prior to staff moving in to ARRC, Information Technology (IT) 0 1 2345678910111213141516171819202122 Computational Geoscience staff worked around the clock to commission and configure and pmd*CRC Regolith and Environmental new IT facilities, resulting in a smooth transition and minimal Geoscience and CRCLEME disruption to daily operation as the site became populated. CRC LEME HQ ARRC’s computing, telephone and video conferencing Visual Resources Unit facilities are ‘state-of-the-art’, with the facility being the first Magmatic Ore Deposits Analytical Facilities Group CSIRO site to deploy a total IP telephony system with no Mineral Mapping reliance upon legacy PABX systems. This means that instead Technologies Ore Deposit Processes of having traditional separate data and voice circuits, ARRC Executive/Support Services has a converged voice, video and data network in which voice CSIRO Corporate and video is treated simply as data, similar to the way in which email is treated. ARRC has also implemented a wireless data network that enables staff with suitably equipped laptop Curtin University Staff and Students computers to roam freely within the building with no loss of 01015 5202530354045 55 60 65 network connectivity. 50 Petroleum Engineering Petroleum Geology ARRC’s professional Records Management staff develop, Exploration Geophysics coordinate and implement records management procedures for participating CSIRO divisions on site. Staff gather and maintain scientific, corporate and commercial records in accordance with CSIRO policy and best practice procedures.

The ARRC Library is a gateway to a powerful suite of information services which enable CSIRO divisions on site, ARRC Centre Management and Operations staff have been CRCs, Curtin University of Technology and Centres of instrumental in guiding the Centre through the building set-up Excellence to take advantage of sophisticated electronic and the warranty and defects period of the first twelve information delivery options to realise ARRC’s world class months. The Research Support Infrastructure provides a research vision. variety of administrative services for all ARRC staff.

21 Awards, achievements and community sponsorships

Western Australian CSIRO University Postgraduate Scholarships (WACUPS)

CSIRO, Curtin University of Technology, three year period for a Doctoral degree, •Wolfgang Prassl, Curtin University/ Edith Cowan University, Murdoch and are open to both local and CSIRO Petroleum, Drilling and University and The University of Western international applicants. Current Completions Australia have established a fund for WACUPS students and their research • Jasmine Rutherford, University of new postgraduate research scholarships areas include: Western Australia / CSIRO that aims to enhance research into Exploration and Mining, • Damian Leslie, Curtin University/ minerals and energy exploration, Environmental Geoscience CSIRO Petroleum, Geophysics extraction and processing. • Chris Wijns, University of Western •Affonso Lourenco, Curtin University/ Australia / CSIRO Exploration and WACUPS are awarded for a two year CSIRO Petroleum, Drilling and Mining, Structural Controls on period for Masters by Research and a Completions Mineralisation

ARRC’s most important asset is its diverse and highly talented mix of staff, a claim that is backed up by the awards and recognition they receive.

The “Performed by Schlumberger 2002 Gibb-Maitland Medal 2001 Lindsay Ingall Award 2001 Silver Award” CSIRO Exploration and Mining Curtin University’s Greg Street received The “Performed by Schlumberger 2001 scientist Dr Charles Butt has been the 2001 Lindsay Ingall Award from Silver Award” was presented to the awarded the 2002 Gibb-Maitland the Australian Society of Exploration integrated team of CSIRO Medal by the Western Australian Geophysicists for his efforts in the Petroleum, Chevron (formerly WAPET) and Division of the Geological Society of promotion of geophysics to the wider Schlumberger for work titled Prospect Australia. The medal is awarded yearly community. Greg played a significant Risk & Uncertainty Management. This for contributions to geoscience in role in expanding the application of was a project to evaluate the overpressure Western Australia, particularly in geophysics into the environmental risk for a drilling prospect by integrating economic geology. Dr Butt received field. From encouraging fellow technical studies with the drilling decision this year’s medal for the development scientists to pursue environmental process using Juniper-based integrated of geological and geochemical causes and identify solutions, to probability decision trees. The technical exploration procedures for deeply educating parliamentarians, Greg’s studies involved geological modelling, weathered terrains. active role in the fight against velocity-pressure transform generation salinisation and other environmental and mapping onto a 3-D velocity cube. hazards has resulted in numerous The whole process provided an explicit, public appearances and contributions transparent decision process which to all forms of media. changed the perception of risk in the area, with consequent reduced exploration costs per well, increasing its apparent prospectivity. Dr Charles Butt, winner of the 2002 Greg Street (left) Gibb-Maitland Medal. receiving the Lindsay Ingall Memorial Award from ASEG Kevin Dodds, one of President Tim the members of the Pippett. CSIRO Petroleum research team that won the “Performed by Schlumberger 2001 Silver Award”.

22 ARRC is also conscious of its responsibility to the community in which it is located and the general public. During 2001/02, ARRC has supported its community through a number of initiatives.

Karawara Community Project Curtin Entrepreneurs Challenge On moving in to ARRC, CSIRO donated CSIRO Petroleum is sponsoring the $5,000 to the Karawara Community Innovation and Creativity award in the Project’s Go Kart Program. The Program 2002 Curtin Entrepreneurs Challenge. is offered to local children considered The aim of the competition is to “at risk” as well as those who would not cultivate entrepreneurship in students in usually have the chance to enjoy such all subject areas at Curtin University of activities. It aims to instil an improved Technology. Participants are learning sense of self-worth as well as increase about entrepreneurship, identifying problem solving and social skills in its business opportunities, forming teams, young participants. The Go Kart Program writing executive summaries and Students from Rossmoyne Senior High School teaches new skills such as driver safety business plans and building successful won Best Project for Semester 2 of the Petroleum Club of WA’s ‘School’s Information Program’. and cart maintenance, and is facilitated networks. by an experienced youth worker who is also a qualified mechanic. Karawara is a Schools Information Program neighbouring suburb to Kensington, in The Schools Information Program is run which ARRC is located. by the Petroleum Club of WA and the Australian Petroleum Production and Young Achievement Australia Exploration Association (APPEA). The ARRC is supporting the Young Program organises excursions for year Achievement Australia Business Skills 10 science classes to visit various Program. This gives student participants research organisations and companies exposure to the business world through a involved in petroleum to learn more 16 - 24 week structured program which about the industry. During May 2002, allows them to form their own company, ARRC hosted students from Duncraig raise capital and develop a product to Senior High School, Rossmoyne Senior CSIRO staff members David Gray, Catherine manufacture and sell. Students High School and John Curtin College of Durrant, Tony Gray and Greg Hitchen shaved completing the program gain a the Arts. ARRC will continue to support their heads to raise money for Cancer research Certificate II in Small Business this program each year. on “Me No Hair” day. Management. ARRC’s contribution is sponsoring students at Mt Lawley Senior “Me No Hair Day” High School. In March 2002 ARRC staff enthusiastically became involved in organising an event for “Me No Hair Day”, with 5 staff members shaving their heads for charity. A total of $1,700 was raised for the Cancer Foundation of Western Australia.

23 ARRC Committees

ARRC Steering Committee The ARRC Steering Committee was established to provide a forum for high level liaison between CSIRO and the Western Australian government in regard to the operational and research objectives of the Centre and other relevant issues. Its role was also to appoint all members of the ARRC Advisory Committee. The Steering Committee met three times a year.

Membership for 2001/02: • Hon Clive Brown (Chair) - Minister for State Development • Mr George Harley - General Manager, CSIRO Corporate Property • Dr Bruce Hobbs - Deputy Chief Executive, CSIRO • Dr Adrian Williams - Chief, CSIRO Petroleum •Prof Neil Phillips - Chief, CSIRO Exploration and Mining • Mr Greg Thill - Principal Adviser, Resources, CSIRO • Emeritus Prof John de Laeter - Curtin University • Dr Paul Schapper - A/Director General, DoIT* • Mr Quentin Harrington - Executive Director, DoIT • Mr Richard Muirhead - Chief Executive Officer, DCT** • Mr Simon Skevington - Team Leader, Infrastructure, DoIT • Mr John Thompson - Chair, TIAC The Steering Committee was disbanded after the commissioning of ARRC as per the formal agreement to establish the Centre.

ARRC Construction Committee The ARRC Construction Committee was responsible for overseeing the construction contracts for establishing ARRC and consisted of members from CSIRO and the Western Australian Government. The Committee met every six weeks during the construction period.

Membership for 2001/02: • Mr Trevor Moody (Chair) - Assistant General Manager, CSIRO Corporate Property • Dr Steve Harvey - Deputy Chief, CSIRO Exploration and Mining •Mr Peter Bosci - General Manager, CSIRO Petroleum •Mr Simon Skevington - Team Leader, DoIT • Ms Lesley Smith - Executive Director, DCT • Mr Bob Gadsdon - Client Manager, CAMS*** • Mr Arthur Lyons - Project Officer, DoIT • Mr Roy Chapman - Project Leader, DoIT As the Construction Committee’s function was to see the building through the construction, completion and defects period, its role has now ceased.

* State Department of Industry and Technology ** State Department of Commerce and Trade *** State Department of Contract and Management Services

24 ARRC Advisory Committee The role of the ARRC Advisory Committee is to ensure ARRC operates in a manner that provides maximum benefit to Western Australian industry, research organisations and the community. Additionally it oversees the research plans for the Centre and reviews the activities of the Centre against objectives annually. The ARRC Advisory Committee meets twice a year and is selected from representatives of appropriate institutions, government agencies and industry.

Membership for 2001/02: • Mr Lee Ranford (Chair) - A/Executive Director, DMPR**** • Dr Bruce Hobbs - Deputy Chief Executive, CSIRO • Mr Jeffrey Gresham - General Manager – Exploration, Homestake Gold • Mr Rob Male - Principal Development Engineer, Woodside Energy •Prof. Michael Barber - Pro Vice Chancellor (Research), UWA •Prof Paul Rossiter - Deputy Vice Chancellor (R&D), Curtin University • Mr Geoff Suttie - Counsellor, DMPR • Dr John Barker - Team Leader, DoIT

ARRC Directions Committee The ARRC Directions Committee consists of one senior representative from each of the CSIRO Divisions on site, one representative from Curtin University of Technology, ARRC Centre Manager and a representative from CSIRO Minerals in an observer capacity. The Committee’s main functions are to: •Provide advice and input to the ARRC Advisory Committee on the strategic direction of the Centre. • Ensure the operations of the site are consistent with the ARRC Charter. • Approve annual and out year ARRC budgets to meet current and future requirements. The Committee delegates responsibility for the day-to-day operations of the Centre to CSIRO Petroleum line management, who have established an Operations Team for this purpose.

Membership for 2001/02: • Dr Adrian Williams (Chair) - Chief, CSIRO Petroleum •Prof Neil Phillips - Chief, CSIRO Exploration and Mining •Prof Paul Rossiter - Deputy Vice Chancellor (R&D), Curtin University • Ms Anne-Marie Cook - ARRC Centre Manager • Dr Len Warren (Observer) - Senior Manager, CSIRO Minerals

**** State Department of Mineral and Petroleum Resources

25 Industry clients and partners

CSIRO Curtin University of Technology Alberta Research Council AAPG Foundation AMIRA AGIP Australia Limited Anglogold Anaconda Nickel Ltd Apache Energy Limited Anglo American Exploration (Australia) Pty Ltd AUSIndustry Anglogold Australia Limited BHP Billiton Iron Ore Apache Energy Limited BHP Billiton Petroleum Attaka CFT, Unocal Indonesia Co. Boral Energy Resources Ltd Australian Society of Exploration Geophysicists BP Research Foundation Chevron Texaco BHP Billiton Iron Ore Codelco BHP Billiton Petroleum Conoco CGG Australia Pty Ltd Coparex Chevron Australia Pty Ltd CRC Program (DISR) Chris DBF Esso Consolidated Minerals ñ Pilbara Manganese Exxon Mobil De Beers Australia Exploration Ltd Falconbridge Nouvelle Caladonie Sas Encom Falconbridge Limited ER Mapper Fractal Graphics Fractal Technologies Halliburton Baroid Product Service Line Fugro Survey Pty Ltd Hamersley Iron Geosoft Geotech Giant Reef Mining GeoTrack International Heron Resources Inpex JCOAL - Japan Coal Energy Centre Japan Australia LNG (MIMI) Pty Ltd Kevron Pty Ltd Japan National Oil Corporation Landmark Graphics Corporation Lemigas Metals Quest Australia Limited Magellan Petroleum Australia Limited M.I.M. Exploration Pty. Ltd. MERIWA Minerals and Energy Research Institute of WA (MERIWA) Metal Mining Agency of Japan Origin Energy Resources Limited Nippon Paradigm Geophysical Corp Noble Drilling Paris University VII Norsk Hydro AS PGS Australia Pty Ltd Oil Search Limited Placer Dome Asia Pacific Limited OMV Australia Santos Limited Pacific Power Southern Geoscience Consultants Pty Ltd PanCanadian Petroleum Limited Tanami Gold ML PDVSA Texaco Australia Pty Ltd Petrobel Thales GeoSolutions Petrobras Veritas DGC Australia Pty Ltd PETRONAS WesternGeco Phillips Petroleum Company WMC Resources Ltd Phillips Oil Company Australia Woodside Energy Ltd Premier Oil Robe River Mining Roger Townend & Associates Santos Limited Saskatchewan Research Council Schlumberger Tiwest Shell South Pacific Chevron Company Sumitomo Metal Mining Sydney Gas Tap Oil TNO Woodside Energy Ltd

26 ARRC contacts

Australian Resources Research Centre Professor Mike Middleton 26 Dick Perry Ave Department of Petroleum Engineering Technology Park Ph: + 61 8 9266 7980 Kensington Email: [email protected] Perth WA 6151 Australia Cooperative Research Centres for: Landscape Evolution and Mineral Exploration PO Box 1130 Paul Wilkes Bentley WA 6102 Ph: + 61 8 6436 8695 Australia Email: [email protected]

Ph: + 61 8 6436 8500 Predictive Mineral Discovery Fax: + 61 8 6436 8555 Paul Roberts Web: www.arrc.net.au Ph: + 61 8 6436 8758 Email: [email protected]

CSIRO Exploration and Mining IVEC (Interactive Virtual Environments Centre) Dr Steve Harvey Dr Rod Thiele Deputy Chief IVEC Director Ph: + 61 8 6436 8610 Ph: + 61 8 6436 8831 Email: [email protected] Email: [email protected] Web: www.ivec.org CSIRO Petroleum Greg Thill ARRC Centre Management Acting Chief Anne-Marie Cook Ph: + 61 8 6436 8701 Ph: + 61 8 6436 8511 Email: [email protected] Email: [email protected] Curtin University of Technology ARRC Public Relations Office Professor Paul Rossiter Ph: + 61 8 6436 8707 Deputy Vice-Chancellor (R&D) Ph: + 61 8 266 3045 Email: [email protected]

Head of Department Department of Exploration Geophysics C/- Deirdre Hollingsworth Ph: + 61 8 9266 3565 Email: [email protected]

Professor John McDonald Centre of Excellence for Exploration and Production Geophysics Ph: + 61 8 9266 7194 Email: [email protected]

Professor Raj Rajeswaran Department of Petroleum Engineering Ph: + 61 8 9266 7857 Email: [email protected]

27 Australian Resources Research Centre