Steel InTouch WA #7:Layout 1 14/3/07 10:31 AM Page 2 steelintouch News for Western Australian Customers ISSUE NUMBER 7 AUTUMN 2007 articles, log onto www.xlerplate.com.au and search our WELCOME archived editions. In this issue we feature our new XLERPLATE® steel Welcome to the first issue of XLERPLATE® Steel In campaign – called Backing the Aussie Spirit – which is Touch for 2007. themed around the Australian quest to be the best. The year ahead is already shaping up as an eventful See page 2 for details about this exciting new ® and exciting one, with many opportunities and XLERPLATE steel initiative. ® challenges facing our XLERPLATE® steel customers. The BlueScope XLERPLATE team and Steel In Touch We look forward to continuing our value-creating look forward to bringing you the latest news on relationship for 2007 and beyond. developments within our industry throughout 2007. XLERPLATE® Steel In Touch will bring you the latest steel industry news, information about projects happening in your state, updates on the economic environment and XLERPLATE® steel product news. Elly Pilkadaris If you’re interested in reading previous Steel In Touch State Sales Manager - Western Australia A 3D MODEL OF SUCCESS West Australian company PDC Consultants is Billiton and MPDJV (EPCM Contractor), and PDC The new crushing and screening facilities and successfully completing a major drafting and design Consultants’ 3D modelling processes – which can associated conveyors were fabricated and erected contract for the expansion of a BHP Billiton iron ore halve design and detailing costs. by the Monadelphous Group and are expected to be mine in the Pilbara region. “We aim to achieve zero rework during construction operational by the fourth quarter of 2007. The contract, commenced 18 months ago, is PDC with our 3D modelling technology, which combines PDC Consultants recently worked on drawings for Consultants’ biggest ever, involving up to 100 Navisworks Propriety with detailing software such the expansion of Rio Tinto’s iron ore wharf extension detailers at its busiest. as StruCad, Xsteel and Prosteel,” Mr Weir said. in Dampier, which was fabricated by AGC Industries ® More than 7000 tonnes of steelwork was detailed for “It uses 3D simulation to produce consistent steel Pty Ltd from 2400 tonnes of XLERPLATE steel and the BHP Billiton Rapid Growth Project 3 Area C Iron connections, eliminating mistakes in joints that can rolled steel sections. Ore Mine expansion, located about 120 kilometres cause disruptions and cost blow-outs during the In addition, PDC has detailed six car dumpers for north-west of Newman, which included new crushing fabrication and construction processes. AGC Industries Pty Ltd and United Group Ltd. and screening facilities and associated conveyors. “Clients can also resolve technical issues throughout The Metzo-designed car dumpers are complex General Manager Martyn Weir said he believed the process by reviewing intelligent 3D models.” structures weighing more than 300 tonnes each. some of the reasons the company won the contract Mr Weir said the greatest challenges of the Area C The car dumpers, which secure and invert fully stemmed from its strong relationship with BHP Iron Ore Mine expansion had been its large scale, laden iron ore rail wagons to add their contents to and managing the multiple sub-contractors who portside stockpiles, are manufactured from 350 undertook the shop detailing work. Grade XLERPLATE® steel in thicknesses ranging “Our services have included project management, from 16mm to 80mm. scheduling and planning, drawing production and Past projects have included Telfer Gold Mine for quality control,” he said. “Most people have been Newcrest Mining Ltd, Otway Gas Project for working on the 3D modelling process, detailing Woodside Petroleum, Woodside LNG V Project, and crusher and screening buildings, and 38 conveyors Geneesee Power Generating Station – Phase 3 for and associated transfer stations.” EPCOR in Canada. steelintouch 1 Steel InTouch WA #7:Layout 1 14/3/07 10:32 AM Page 3 News for Western Australian Customers www.xlerplate.com.au BACKING THE AUSSIE SPIRIT PKSW HOT STRIP XLERPLATE® steel has launched its “Backing The Aussie Spirit” Campaign. MILL EXPANSION The campaign promotes XLERPLATE® The $100 million expansion of the hot strip mill at steel’s quality, reliability, technical Port Kembla Steelworks has been officially opened backup and sales support associated by Wollongong’s Lord Mayor, Councillor Alex Darling. with using Australian-made steel, and Councillor Darling unveiled a plaque at the Number support for the local economy. 2 Walking Beam Reheat Furnace last December. The campaign follows on from its first The furnace is now fully operational, and can successful “‘Xlerate’ to XLERPLATE®” convert an additional 400,000 tonnes p.a. of slab campaign back in 2004. XLERPLATE® steel into hot rolled coil. distributors and end users will receive “The expansion has made the Steelworks much more five mail-outs in total over a period competitive,” BlueScope Steel’s President Australian of three months, each with a unique Images from Backing The Aussie Spirit campaign. and New Zealand Industrial Markets Noel Cornish Australian flavour. personal code that enables you to enter the said. “Slab which is a semi-finished product is now The first mail-out, sent in mid February, is competition to win great monthly prizes including transformed and value-added into hot rolled coil.” themed "Australian Made" and focuses on the tickets to the World Swimming Championships in benefits associated with Australian manufacture. Melbourne in March, or reserved tickets to the The second mail-out sent recently is themed second day of the Australia vs. India cricket test "Consistent Quality". The campaign draws upon in January 2008. imagery centred on sporting excellence and high Entering all five draws gives you the chance to win achievers such as champion swimmer Libby Lenton one of three grand prizes, including an overseas trip and the Australian cricket team. valued at $15,000 to one of the following events: “We’re associating great Aussie heroes – our • 2007 Rugby World Cup in the UK sportsmen and women – with the quality and • 2007 Twenty 20 Cricket World Cup in South Africa From left: BlueScope Steel’s Aimee Allen, pride behind the XLERPLATE® steel brand,” • 2007 FINA World Swimming Championships Noel Cornish, Antonio Lara and Cr Alex Darling. Stan Clark, National Sales Manager – Distribution in Singapore and Manufacturing, said. “XLERPLATE® steel is He said the expansion, completed on time and designed for many Australian applications and • Prix de L’Arc de Triomphe in Paris on budget, was a positive step for employees buying it means you’re supporting industry in your • 32nd America’s Cup event in Spain and the community. country. Like our heroes, it’s Australian-made.” We’ll bring you winners’ details in the next edition “It’s a real credit to the BlueScope Steel people Every mail-out contains a gift, and a unique of Steel In Touch. who managed the work, and to the contractors who carried it out,” Mr Cornish said. ENGINEERING ACTIVITY ON THE RISE By BlueScope Steel Economists Max Serrano, Nick Scavarelli and Amy Davidson Australian manufacturing infrastructure project is behind continues to face a number of Engineering Construction in Australia schedule and BHP Billiton’s challenges, including the high Value of Work Done (Constant A$Million, Fin Yrs) Ravensthorpe nickel project has 45,000 Australian dollar and increased suffered cost overruns. 40,000 competition from Asia. Without Mining plans for the future remain a competitive advantage in 35,000 strong, including a feasibility study manufacturing generally, growth in 30,000 that is currently underway on a the sector will be likely to remain $700 million planned development 25,000 modest for the foreseeable future. of the Wandoan coal mine. 20,000 There has been a strong lift in $Aud million Statistics from the Australian planned engineering activity in the 15,000 Bureau of Statistics indicate that last 12 months, especially in mining- 10,000 spending on mineral exploration has increased by nearly a third related investment, with high 5,000 commodity prices underpinning compared with this time last year. 0 planned expansions at many mine 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 Oil and gas investment is also sites. Although commodity prices Financial Years strong. The North West Shelf gas are expected to soften in coming fields and others in and around years, they are likely to remain fairly high in the the Dawson steaming coal deposit (valued at north Western Australia (such as the immediate future. Given that investment in water $1.2 billion) and Fortescue Metal Group’s iron ore Vincent and Stybarrow oil fields) continue to lead and power projects over the past 10 years appears mine (valued at $3.7 billion). spending in this sector. Costs on the recently started to have been inadequate to cope with future needs, This strong activity has produced some negative Angel gas field have already started climbing, and continued strong growth in spending in these consequences however. It has substantially driven are now expected to total $1.6 billion. areas is expected. up costs, especially because of skills shortages. Construction on the Thylacine and Geographe gas The latest Access Economic’s Investor Monitor Consequently, a number of major projects are project in Victoria’s Otway Basin is behind schedule indicates a number of huge projects have been being delayed, and cost blowouts are widespread. after cost upgrades throughout development of the driving the lift in mining activity. These include The construction of Fortescue’s iron ore and project. The final bill is expected to tip $1.1 billion. 2 steelintouch Steel InTouch WA #7:Layout 1 14/3/07 10:32 AM Page 4 News for Western Australian Customers SAFETY MESSAGE: REBAR CAPS MAY OFFER MCDOWALL AFFLECK SETS LITTLE PROTECTION NEW DESIGN RECORD West Australian engineering and design firm McDowall Affleck recently completed its largest-ever emissions stack project, this time for Woodside Energy Ltd’s LNG Phase V Expansion project.