MINING REVIEW

THE AUSTRALIAN

a publication
PP100007123
PTY LTD

ISSUE 77, JULY 2014

QME 2014 P26 FMG P44 IRONCLAD
MINING P62

Master plan released for new Pilbara port

REUBEN ADAMS

THE WA Government has unveiled its

Anketell Port Master Plan, which details
plans for the Pilbara’s next – and possibly
last – major deep water port.
Developed as a “working document” to
guide port development across the next 30
years, the master plan proposed private
sector development of a major, multi-user
and multi-commodity deep water port
on the West Pilbara coast, 30km east of
Karratha.
Premier and State Development
minister Colin Barnett said access to
port space was an increasingly rare and
valuable commodity in the Pilbara, and
Anketell would ease pressure on the
two public ports at Dampier and Port
Hedland, which were already working to
capacity.
“Development of Anketell Port will
help to unlock the potential of the West
Pilbara by aiding further development
of the State’s natural resources,” Mr
Barnett said.
“This Master Plan is a clear guide for
proponents who are seeking additional
routes to bring ore to market.
“This may well be the last major new
port in the Pilbara,” he said.
The plan also provided for the
development of an infrastructure corridor
that would contain essential services
like rail lines and access roads, and an
industrial area to support the operations
of the port.
The state government stated it would
be built and expanded in stages over the
coming decades “as demand requires”.
At full development, Anketell Port’s
capacity would be 350 million tonnes per
annum of iron ore – about 20 per cent
more than the total shipments through

(continued on page 3) Anketell Port’s capacity will be 350 million tonnes per annum of iron ore at full development
2 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

CONTENTS

NEWS PUBLISHED BY

General News 1
Explorers on the Move — Rutila Resources 24
PTY LTD

Special Profiles
Cauldron Energy 25 ABN 28 112 572 433

QME 2014 26
GENERAL MANAGER
Brad Francis
Fortescue Metals Group 44
MANAGING EDITOR
Sampling 2014 48 Amy Mattes-Harris
SUB-EDITOR & PROOFREADER
Life-of-Mine 2014 49 Louise Baxter

Centennial Coal’s 25th Anniversary 50 historical p100 JOURNALISTS

Reuben Adams, Rachel Dally-Watkins,
North Queensland Bulk Ports 52 Jane Goldsmith, Courtney Pearson,
Mark Scott, Emma Brown
Millenium Minerals 54 RESEARCHERS
Jessica Clapham, Alex Crowther,
Sirius Resources 56 Skye Fitzgerald
GRAPHIC DESIGNERS
Peabody Energy 58 Adam Carriero, Joelle Chan,
Chris Wade, Deon Schafer
Panoramic Resources 60 SALES MANAGER
Andrew Collett
IronClad Mining 62
SALES EXECUTIVES
Macphersons Resources 64 Josie Causer, Robert Farnham,
Biliana Harman, Donna Orton,

OTHER SECTIONS Jon Perkins, Christine Rippey,

Paul Wilton

Companies Gearing Up 65 BRISBANE OFFICE

leisure p101 Chris Foley (07) 3392 3003 / 0405 121 997
Commercial Boilers & Heating Systems 71 OFFICE MANAGER
Nikki Retallack
Caravans, Campers & Mobile Mining Camps 72
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Vehicle Fitouts 82 Rural Press
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Bus & Coach Services 85 P: (08) 6314 0300
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Payload Monitoring 86 160 Beaufort Street, Perth, WA 6000.
PO Box 8023, Perth BC, WA 6849.
Foundries and Castings 88
E-mail the editor at
editorial@miningoilgas.com.au.
Waterproofing Materials 90 For all other emails to staff, the standard
convention is, first name (only) @miningoilgas.
Tattoo Removal 92 com.au
The Australian Mining Review is a free publication to all
Hire & Rental Services 93 mine sites and mining companies in Australia. Its value is
$11 an issue. (Includes GST, postage and handling).
Hydraulics 94 The copyright is vested in the Proprietors of The Australian
Mining Review; neither whole nor any part of this issue may

Industrial Recycling 96
the interview p102
Patent & Trademark Attorneys 98
be reproduced without permission.
The views expressed in this publication are not necessarily
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the respective author who accepts sole responsibility and
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Specifically s53 of the Act contains prohibitions from doing
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www.miningoilgas.com.au THE AUSTRALIAN MINING REVIEW JULY 2014 3
GENERAL NEWS

Master plan released for new Pilbara port

(continued from page 1)
Port Hedland in the 2012 to 2013 financial
year.
There would also be provision for heavy
industry exports, general cargo trade and
fuel imports.
The master plan indicated the
importance of developing a conceptual
design and management approach for
the port that minimised physical or
commercial barriers of entry.
It would support the development
of new iron ore mines, “including those
that are not currently economic due to
the lack of port infrastructure and/or are
stranded due to the lack of port options”,
and encourage participation from “a
wide range of port users, both large and
small, who are considered important to
the further development of the Pilbara
region.”
“With a capacity of at least 350 million
tonnes per year once fully developed,
the Anketell port provides opportunities
not only for the expansion of existing
operations, but also for emerging
companies to gain a valuable foothold in
the industry,” the master plan stated.
“The Western Australian Government
has undertaken extensive work to progress
the project to this point. The site is now
project ready, with major environmental
and native title approvals in place.
“This Master Plan is the next step,
and will provide a starting point for
negotiations with interested parties.”
Development of the proposed port
was boosted when Aquila Resources – a
company spearheading the development
at Anketell Point – threw its support
behind a hostile $1.4 billion takeover bid
from Chinese steelmaker Baosteel and
Australia’s largest rail freight operator
Aurizon on the same day the master plan
was released.
Aquila recommended shareholders
accept the Baosteel offer, priced at $3.40
per share.
Baosteel Resources International
chairman Dai Zhihao said Baosteel had
tried to support the development of Aquila
for more than five years, but believed the
company had “reached an impasse.”
“Baosteel and Aurizon announced the
Offer for Aquila shares with the intention
to progress Aquila’s stalled development
projects,” Mr Zhihao said.
“This is in stark contrast to remaining
a shareholder of Aquila and facing
the challenges and uncertainties of
volatile commodity markets, risks of
financing large capital expenditure,
potentially dilutive capital raisings, and
the challenge of developing genuinely
economically feasible greenfield projects.
“If the bid is unsuccessful, and based
on the current facts known to us at the
date of this announcement, Baosteel sees
no meaningful prospect for being involved
in the development of the WPIOP [West
Pilbara iron ore project].”
Aurizon Holdings chief executive and
managing director Lance Hockridge said
the offer gave Aquila shareholders the
opportunity to avoid the inherent funding
and development risks associated with
Aquila’s greenfield projects.
“Baosteel and Aurizon together have
the capacity to fund, the resources
and the genuine capability to progress
Aquila’s greenfield projects with the joint
venture partners,” he said.
Aquila is developing the 30mtpa
WPIOP as a 50:50 joint venture with
American Metals & Coal International,
which would require Anketell port access
as well as a 282km railway to the port.

Gold producers merge in $615 million deal

Jane Goldsmith

JUNIOR West African gold company

Papillon Resources will merge with
Canadian gold developer B2Gold Corp in a
confirmed $615 million deal.
Perth-based Papillon said the definitive
merger agreement would remove any
funding uncertainty for development at its
flagship Fekola project in Mali.
The companies announced the agreed
merger consideration in early June,
which would comprise 0.661 B2Gold
common shares for each Papillon share,
equating to a purchase price of $1.72 per
Papillon share.
The deal offered a 36.5 per cent premium
on Papillon’s last closing price, before the
offer was placed and the company entered
a two-week trading halt.
Although Vancouver-based B2Gold’s
offer was well below the $2 per share mark
Papillon had previously targeted, Papillon
chief executive Mark Connelly told The
Australian the arrangement was a “good
offer in a challenging market”.
“We’re very comfortable with the
premium,” he said.
“Don’t underestimate the volatility of
the gold price. The entire gold sector is Papillon Resources’ merger with B2Gold Corp is expected to fast-track development of the Fekola gold project in western Mali
down because of the gold price.”
B2Gold is a $1.68 billion company
with three operating mines and assets in “The combination of Papillon and development and operation, coupled with a current mineral resource estimate of
South America, Asia and Africa. The deal B2Gold provides Papillon shareholders its balance sheet, cashflows and funding 40.1 million tonnes of ore at an average
is expected to give Papillon shareholders with the opportunity to gain immediate capacity will de-risk the development of grade of 2.4g per tonne of gold, for
exposure to immediate gold production, exposure to a significant, growth orientated Fekola and should maximise the value of 3.14 million ounces of contained gold.
while retaining benefits from the Fekola and profitable producer with diversified the project for both Papillon and B2Gold Average annual production is expected to
investment. operations whilst still retaining material shareholders.” reach 245,000oz of gold across a minimum
“Shareholders can participate in a very exposure to the upside potential of Fekola. Fekola ranks as one of the premier gold 11-year mine life, with commissioning to
solid growth stock,” Mr Connelly said. “B2Gold’s track record of successful mine development assets in the market, with occur within the next 18 to 24 months.
4 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

GENERAL NEWS

Joint venture developing Brazilian titanium project

Jane Goldsmith
MINERAL sands producer Iluka Resources
has made its second move offshore in 12
months, signing a preliminary joint venture
agreement for one of Brazil’s largest known
titanium resources.
Iluka announced in early March it had
teamed with heavyweight Vale in a joint
development and intellectual property
agreement, to evaluate and potentially
develop the Tapira titanium deposit in
Minas Gerais, south-eastern Brazil.
Iluka has the right to earn a 49 per cent
stake in the project in a staged exploration
and tenement development plan. The
first stage involves a 15 month scoping
study, including a series of geological
and technical evaluations and market
assessments, and the determination of a
preferred pilot plant design.
Subsequent phases are dependent on the
outcomes of stage one, and possibly include
the evaluation, construction and operation
of a pilot plant; prefeasibility and definitive
feasibility studies for a commercial plant;
and the construction and operation of a
commercial scale plant.
Extensive drill tests were completed at
Tapira prior to the agreement, resulting in
two primary exploration targets. The first
comprised a total of 976 vertical diamond
core holes drilled for a total of 81,140m,
producing an estimated exploration target
between 1 billion tonnes and 1.5 billion
tonnes of ore grading between 12 and 15 per
cent titanium dioxide.
The second target has 70 to 100 million
tonnes of stockpiled material grading
12 to 15 percent titanium dioxide.
“Iluka’s involvement provides the
company with the opportunity to participate
in the potential commercialisation of one of
the largest known undeveloped titanium
mineral deposits,” Iluka managing director
David Robb said.
“The approach is an example of Iluka’s
additional emphasis on alliancing and joint
venture activities to identify and potentially
develop new mineral resources needed over
the long term by the mineral sands industry.”
“However, if it proves feasible, the scale
and grade of the deposit would suggest it
should be a key source of future high-grade
titanium dioxide supply,” he said.
Mr Drew said Tapira was likely a
metallurgically complex site, as the prospects
had significant quantities of rare earths as
well as magnetite ore.
Iluka’s push into Brazil – where it
has an existing exploration operation –
follows its decision last August to re-enter
Sri Lanka. In the move, the company
regained access to acreage north of Colombo Iluka Resources and Vale have signed a preliminary joint venture agreement for the Tapira titanium project
on the country’s northwest coast. in Minas Gerais, Brazil Photo: Iluka Resources

Canadian company’s takeover a ‘win-win’

Rachel Dally-Watkins
WITH the approval of the TSX
Venture Exchange, Melior Resources
has completed the acquisition of
Australian-owned Belridge Enterprises
and the Goondicum ilmenite project.
The project, near Monto in Queensland,
was put under care and maintenance in
July 2013; as part of the takeover Melior
agreed to invest US$15 million towards
restarting the mothballed operation.
Melior issued Belridge with about 38
million shares (18 per cent of its share
balance) as consideration for the acquisition,
with a further 38 million shares to possibly
be issued as earn-out consideration.
“We are very pleased to have closed
the transaction to acquire the Goondicum
project and excited at the opportunities
that bringing the operation back into
production will yield,” Melior chairman
Dr Charles Entrekin said.
“Furthermore, we are delighted to
welcome [Belridge managing director]
Mark [McCauley] to the role of [chief
executive] of Melior and we look forward
to Mark’s leadership in realising the full
potential of the Goondicum project.”
The $120 million Goondicum project
has changed ownership three times
since development began in 2007. It has
indicated resources of 1.9 million tonnes
of ilmenite and inferred resources of
1.93mt of ilmenite.
Ilmenite is widely used in paint and
pharmaceutical industries but its market
value dropped from $280 per tonne to about
$160/t at the time of the project closure.
“We’re running at a significant loss and
we could either try and tough it out hoping
the market will return – and the indications
are that it will – but we wouldn’t have shut
it down if we thought that it was going to
return within six months,” Mr McCauley
said at the time.
“We think towards the end of this
year or early next year the market will
turn around.”
Melior expected to be able to restart the
project quickly, at low cost, however a final
operational decision had not yet been made.
Mr McCauley called Melior’s
takeover a “win-win” situation, according
to Mining Australia.
“Melior was effectively a company
that had cash and no projects... and
Belridge has had a project but required
funding,” he said.
However, McCauley said that current
“soft” prices in the mineral sands market
would play a role in the way Melior
approached the restart of the project.

Contract increases Fortescue shipping fleet

Rachel Dally-Watkins
IN a move designed to further reduce its
costs and secure the supply of efficient
seagoing vessels, Fortescue Metals
Group signed a US$275 million contract
for the construction of four very large
ore carrier (VLOC) vessels.
The contract with a Chinese shipyard
will produce 260,000 dead weight tonnage
(dwt) class vessels which will account for
about 6 per cent of Fortescue’s shipping
fleet requirements.
According to Fortescue, the vessels
are much larger than the traditional
cape-size vessels that have dominated
the seaborne market, and incorporate
design specifications ideally suited to
the Port Hedland port.
“Fortescue was instrumental in
the research and development of the
vessels to ensure design specifications parameters of vessels currently
complemented Port Hedland’s tidal operating in the Pilbara.”
conditions and shallow natural harbour,” Fortescue chief executive Nev
the company stated. Power said the vessels were a natural
“In recent times the average size of extension to the company’s supply
vessels has been increasing although only chain and would play a significant
a small proportion are in the 250,000dwt role in increasing efficiency and
or greater segment. The larger vessels lowering costs.
offer operational efficiencies and higher “They also reflect and strengthen
carrying capacity but they do not our close relationship with China, our
significantly deviate from the size largest customer,” Mr Power said.
6 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

GENERAL NEWS

Industry slams ‘anti-mining’ survey

Rachel Dally-Watkins

A report claiming 83 per cent of Hunter

Valley residents do not want to see the
coal industry expand has been slammed
by industry as an “ideologically-
driven, anti-mining exercise dressed up
as economic analysis”.
The Australia Institute surveyed 1001
Hunter Valley residents in November 2013
and found that 41 per cent of respondents
would like to see the industry’s presence
decreased or phased out.
The survey findings provided the
basis for the report Seeing through the
dust: Coal in the Hunter Valley economy,
released in mid June. According to the
report, Hunter Valley residents believed
the coal industry employed four times
more people than it does and that coal
royalties contributed 10 times more
income to the NSW budget than it does.
“The coal industry’s public statements
invariably emphasise its apparent
economic importance. But when the
industry is placed in context we see that
coal is not the bedrock of the Hunter
economy,” report author Roderick
Campbell said.
“The reality is that 95 per cent of
Hunter [Valley] workers do not work in
the coal industry and only two per cent
of NSW government revenue comes from
coal royalties,” he said. The annual Voice for Mining Family Day in the Hunter Valley saw thousands of rugby fans wearing hi-vis to support the industry Photo: NSW Mining
“The fact that coal is not vital to the
economic success of the Hunter Valley tied to the success of the coal industry,” their livelihoods. It’s also particularly businesses due to the current mining
also seems to be sinking in locally. Mr Campbell said. insensitive given mining in the Hunter is downturn in the Hunter.”
Despite residents having a heavily However, NSW Mining has slammed going through tough times and people are A survey by the NSW Minerals Council
inflated impression of the coal industry’s the report and claimed the region was losing their jobs. in 2013 found that 4871 local Hunter
economic importance, only one in three proud of its mining industry, as evidenced “As well as dismissing mining businesses were directly supported
feels that the industry’s economic by “thousands” of people who attended jobs in the Hunter as insignificant, through spending by the Hunter mining
contribution outweighs the other costs it the second Voice for Mining Family Day. the report also fails to acknowledge industry.
imposes on the community.” “Thousands of people showed up at the thousands of other workers in businesses The council also stated that, in terms
Mr Campbell said the report [Newcastle] Knights [rugby] game last across the Hunter whose jobs are of direct spending, mining companies
highlighted local residents’ concerns weekend in their high-vis mining gear supported by mining. in the Hunter Valley spent $6.3 billion
about air quality, health, water and to show their support for mining, a clear “A visit to any of the industrial estates on businesses, salaries, wages and
bushland as a result of the coal industry, contrast to this latest ideologically-driven across the Hunter would find hundreds community contributions in 2013.
as well as the impact it had on other local anti-mining exercise from the Australia of jobs in manufacturing businesses that “This is $6.3 billion of real spending
industries such as vineyards, horse studs, Institute,” NSW Minerals Council chief rely on work with mining operations, yet with real Hunter businesses, creating
tourism and agriculture. executive Stephen Galilee said. according to the Australia Institute these real Hunter jobs. The Australia Institute
“What our report shows is that “This latest attack on Hunter mining jobs aren’t mining-related. is living in a parallel universe if it believes
the Hunter has a diversified, modern is an insult to the 15,000 local workers “Try telling that to the Hunter workers this is a not an important contribution to
economy and that the region’s future isn’t and their families who rely on mining for losing their jobs in mining supplier the Hunter community,” Mr Galilee said.

Rio Tinto offloads Clermont stake for $1 billion

Reuben Adams
A company controlled by Glencore and
Sumitomo Corporation has acquired
Rio Tinto’s 50.1 per cent stake in the
Clermont Joint Venture – which owns
Australia’s third largest thermal coal
mine – for US$1.015 billion.
Rio Tinto said the completed sale
would deliver good value to shareholders,
and demonstrated the group’s “focus
on strengthening its balance sheet
and taking a disciplined approach to
allocating capital”.
Glencore would assume Rio Tinto’s
operational management and marketing
role for the Clermont JV.
Glencore head of coal assets Peter
Freyberg said the large scale, low cost
Clermont mine would offer “an attractive
financial return”.
“Clermont is structurally low cost,
with its through-cycle profitability
underpinned by its low 3.2:1 life-of-mine
strip ratio and the ability to bypass 90 per
cent of coal without washing,” he said.
“This investment epitomises our
focus on identifying high quality assets
that complement our existing operations
and marketing capabilities.
“Going forward, we will seek to
further expand our relationship with
Sumitomo where there are mutually
beneficial opportunities.”
The Sumitomo Corporation consists
of nearly 800 companies and more than
70,000 employees.
Sumitomo Energy, Chemical &
Electronics Business Unit Mineral
Resources general manager Toru
Furihata said the company drew
confidence from the mine being operated
by Glencore, “given their strong track
record of extracting maximum value
from coal assets”.
“We are very pleased to share
joint control of the mine together
with Glencore and we look forward to
contributing to the stable supply of
steaming coal, especially to the Asian
region,” Mr Furihata said.
Rio Tinto has completed
the sale of its 50.1 per cent
stake in the Clermont Joint
Venture to Glencore and
Sumitomo Corporation
8 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

GENERAL NEWS

Locals revolt following toxic spill

jane goldsmith

RIOTERS have caused up to

$30 million dollars of damage to a
New Caledonian nickel operation,
after a chemical leak from the site
entered into a nearby river system and
caused significant loss of wildlife.
Mining giant Vale was forced
to suspend operations at its
$6 billion Goro nickel refinery in
New Caledonia’s southern province in
early May, after 100,000l of acid-tainted
effluent leaked from the site.
Angry locals responded to the damage
by torching the refinery’s buildings,
equipment and vehicles. Roads were
blocked and three police officers were
injured when the riots turned violent.
Vale’s plant produces 60,000 tonnes
per annum of nickel at full capacity,
although the operations have been
marred by problems in recent years,
including chemical spills and protests.
The latest spill was reportedly the sixth
to occur in as many years.
Vale executive director Peter
Poppinga told local newspaper
Les Nouvelles Caledoniennes the
damage would cost between
$20 million and $30 million to repair,
with almost a third of the refinery’s
vehicle fleet wrecked.
Although protestors had reportedly
sought the site’s permanent closure, Mr
Poppinga stated the company would not Vale was forced to suspend operations at its Goro nickel refinery in New Caledonia after a chemical leak entered a nearby waterway
submit to the demands. Photo: Vale
“If there is no activity for several
months, we will shut the plant, but that’s in the best interests of the province. processing operations, with the New multi-surveillance committee.
not the case. The closing of the plant is “Every time [there is a problem with Caledonian environmental safety body Nickel is a key commodity of the New
not on the table,” Mr Poppinga said. Vale], it’s the same response by the Institut National de I’Environnement Caledonian economy; the archipelago
Vale employs high pressure technology province... Yet, it happens again,” Mr Industriel et des Risques concluding it 1210km east of Queensland holds about
and acids to leach nickel from laterite Uregei said. was not opposed to the site reopening. 25 per cent of the world’s total nickel
ores at the site. “We need to focus on ore mining and let The report recommended reinforcement resources.
New Caledonian Labour Party the processing get done somewhere else.” of Goro’s security measures, as well as a Vale’s Goro plant is the second largest
president Louis Kotra Uregei told Reuters However, in early June, Vale received comprehensive safety management audit employer in the southern province with
halting acid-based nickel processing was conditional approval to restart its and the establishment of a third-party 1300 employees and 2200 contractors.

Activist pleads guilty to market hoax

JANE GOLDSMITH
AN environmental activist who temporarily
wiped $314 million from Whitehaven
Coal’s market value has pleaded guilty to
disseminating false information.
ASIC charged Newcastle-based Jonathon
Moylan, 26, after he sent out a fake press
release in January 2013, presenting himself
as a representative of the ANZ Bank.
The release stated ANZ had withdrawn
a $1.2 billion loan for Whitehaven’s Maules
Creek coal development. The release was
picked up by various news organisations
across Australia, and prompted a sharp
sell-off of Whitehaven stock.
Whitehaven lost 8.9 per cent off its
share price before it issued a trading
halt and revealed the hoax.
Mr Moylan originally said he was
not guilty of the charge, which carries a
maximum penalty of 10 years jail and up
to $765,000 in fines.
However, after the Commonwealth
director of Public Prosecutions took
the case to the NSW Supreme Court,
Mr Moylan changed his plea to guilty
to one count of disseminating false or
misleading information affecting market
participation.
Mr Moylan is a spokesperson
for environmentalist group
Front Line Action on Coal, which protests
the Maules Creek coal project. The
$767 million development is currently
under construction in Leard State Forest in
north-western NSW.
Front Line Action on Coal has
claimed that Maules Creek’s approval
was gained under illegal and corrupt
circumstances, and that the project was
a threat to regional flora and fauna, and
other economic industries.
More than 130 people have been
arrested for acts of civil disobedience
since construction began.
Greens leader Christine Milne
publicly acknowledged her support for
Mr Moylan after the hearing.
“Companies that are driving climate
change will increasingly come under
scrutiny and be exposed for their
investments and actions, and Jonathan
Moylan is drawing attention to these
companies,” Ms Milne said.
However, ASIC commissioner Greg
Tanzer said the decision to criminally
prosecute Mr Moylan was justified,
stating the commission had no interest
in his “activist cause”.
Mr Moylan has been released on
unconditional bail until sentencing on
11 July.

E-waste facility to recycle precious metals

reuben adams
AN urban ‘mining’ facility in the US
state of Arkansas looks set to extract
gold, silver, copper, palladium and other
valuable metals from electronic waste.
BlueOak Resources arranged
US$35 million in project financing to build
the facility, with production due to start
by the end of 2015, according to Forbes.
The facility would initially process
about 15 million pounds of recovered
scrap, including circuit boards, by
working with recycling companies that
collect redundant or broken computers,
smartphones and other electronics.
BlueOak planned to build
mini-refineries that utilise “proven,
capital-efficient refining processes
towards extracting precious metals and
rare earth elements from e-waste”.
According to BlueOak, US consumers
dispose of more than 3.2 million tonnes of
e-waste each year. Globally, the company
estimated just 13 per cent of e-waste
underwent some form of recycling.
E-waste is also a large and untapped
source of rare earths and other critical
metals used in alternative energy
technologies.
“We currently spend upwards of
[US]$12 billion per year searching for
virgin ore deposits, while the most
concentrated sources of coveted metals
is literally put to waste,” the company
website stated.
“For example, every 20 minutes the US
discards one ton of cell phones containing
over 70 times the amount of gold and
silver found in virgin ore.
“Annually, the amount of copper
contained in e-waste is equivalent to a
third of global mine production.”
10 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

GENERAL NEWS

Chinese coal explosion kills 22 The fatalities follow an incident

JANE GOLDSMITH
in April, when a flooded coal mine in
south-western Yunnan province trpped
AN alleged gas explosion at a Chinese miners and resultied in 20 deaths.
coal mine has left 22 people dead. China’s coal mining sector has been
The incident at Nantong Mining’s named the mostly deadly in the world.
Yanshitai coal mine in Chongqing According to the Chinese Government,
occurred early in the evening shift on 3 589 mining-related incidents were
June, according to China’s official news recorded last year, which left 1049
agency Xinhua. people dead or missing. However, the
Two more workers were injured and number of both incidents and fatalities
six escaped unharmed. were significantly less than 2012 figures.
“I heard a big sound of a gas explosion In an effort to lower mortality rates
over the steps,” injured miner He and increase safety, China has launched
Xiaogang said. a ‘nationwide safety overhaul’, including
“[I realised] something horrible the forced closure of more than 2000
happened, and we escaped the shaft from small or low-production coal mines.
where thick smoke was coming out.”
Doctors at a local hospital reportedly
treated the miners for burns and carbon
monoxide poisoning following their
escape.
Local procuratorate authority
A ‘gas incident’ has resulted
Chongqing Municipal Administration
in the death of 22 people at
of Coal Mine Safety said all bodies
the Yanshitai coal mine in
were recovered in the aftermath and Changqing, China
an investigation was underway to
determine the cause.
The inquiry would look into possible
criminality, including neglect and other
crimes by officials and personnel from
state-owned Nantong.

Worker killed at NSW copper mine

Rachel Dally-Watkins
OPERATIONS have been suspended at
Glencore Xstrata’s CSA copper mine in
Central Western NSW, following a fatal
incident on 11 June.
Media reports stated that a 26 year
old man was clearing debris from a pipe
at the underground mine site when he
became trapped.
He was reportedly pulled free by his
co-workers and an ambulance attended
the scene, however he could not be
revived.
Glencore stated it was cooperating
with the NSW police and other
authorities, and had notified the man’s
family.
“Our primary concern is for the safety
and welfare of our people, and we are
offering counselling and support services
on site,” the company stated.
The event was the second major
incident at the site in the last two years
(a 41 year old male was also fatally
injured in March 2013) and the fourth
death at a NSW mine in three months.
“I would like to extend my deepest
condolences and prayers to the man’s
family, friends, co-workers and the
wider Cobar community, during this
very difficult time,” NSW Resources and
Energy minister Anthony Roberts said.
“A Police investigation is
underway and officers from NSW
Trade & Investment’s Mine Safety
Investigation Unit and WorkCover are
assisting with the investigation into the
incident.”

Resources industry chips in for charity

Rachel Dally-Watkins

IN the lead up to Breast Cancer Care

WA’s (BCCWA) biggest fundraising
event, Purple Bra Day, resources
industry workers around the state
have chipped in to help raise funds and
awareness.
BCCWA was established in 2000 and
provides free emotional, practical and
financial support to WA women affected
by breast cancer and their families.
“2014 Purple Bra Day is being held on
Friday 20 June and Western Australians
young and old, male and female are
being encouraged to take part in the
annual event to help Breast Cancer Care
WA reach its $500,000 funding target,”
BCCWA stated.
A number of mine sites around
WA took part in the 2013 event, and
the Boddington site welcomed the
opportunity to raise funds this year.
Two separate events would be held with
activities such as bingo, chase the ace,
raffles and a swear jar all encouraging
those on site to dig deep for the cause.
This year, Professional Public Purple Bra Day is Breast Cancer Care WA’s biggest fundraising event
Relations Australia (PPR) is also
supporting the event, with its with breast cancer each day. which is why your participation in Purple chief executive Donna Rendell said.
fundraising team hoping to raise more “Being diagnosed with breast cancer Bra Day can help us provide much needed Donations can be made via
than $5000 for the 42 woman diagnosed can be traumatic for everyone involved, support for all those affected,” BCCWA www.purplebraday.com.au
12 THE AUSTRALIAN MINING REVIEW JULY 2014
GENERAL NEWS
Surprise acquisition to push project forward
Rachel Dally-Watkins
IN a move that surprised the market,
Mineral Resources acquired a and rail infrastructure and build, own
12.78 per cent interest in Aquila
Resources, placing it in a position to be
involved in decisions surrounding the
development of the stalled $10 billion
West Pilbara Iron Ore Project (WPIOP).
Mineral Resources bought about 52
million shares in Aquila at $3.75 per
share – a significant premium to the
$3.40/share takeover bid made in joint
venture between Chinese steelmaker
Baosteel and rail operator Aurizon in
early May.
At the time, Aquila welcomed this
recognition of the value of its shares,
and once again advised shareholders to
take no action in regards to the takeover
bid. However just days later, as the
market expected a rival takeover bid
Aquila instead had an about-face and
advised its shareholders to accept the
$1.4 billion Baosteel deal.
Baosteel and Aurizon already own
40 per cent of Aquila.
Mineral Resources meanwhile stated
that it had invested “considerable time”
developing a business case for the WPIOP,
before the takeover bid was made.
“[Mineral Resources] has now
finalised its total mine to port
development plant for the WPIOP
(which includes all processing and mine
related infrastructure as well as the
supply chain through to shiploading)
Grants contribute to basin geology knowledge
Rachel Dally-Watkins
AN international research group led by
the University of Sydney will be able
to gain a better understanding of the
geology of basins, thanks to a federal
funding grant.
Education minister Christopher
Pyne announced on 12 June that
the government had committed
more than $23.9 million to establish
seven new industry research hubs
that would address critical industry
challenges in areas such as resources,
grain improvement, aquaculture and
manufacturing.
“These new research hubs will
support collaborative [research and
development] projects that address
challenging industry issues; indeed
26 industry partner organisations are
contributing more than $36.4 million
cash and in-kind for these new research
projects,” Mr Pyne said.
“The Australian Government is
committed to a vibrant research sector
with strong industry collaboration. This
particular scheme allows us to deliver
exactly that.
“Industry partners range from
multinational companies such as BHP
Billiton Iron Ore to regionally based
businesses such as Intrepid Geophysics.”
With partners including the University
of Melbourne Geodynamics group, Curtin
University’s Petroleum Group, CSIRO
Earth Science and Resource Engineering,
National ICT Australia, Geoscience
Australia, the California Institute of
Technology, and five national and
international industry partners, the
Basin GENESIS Hub will receive
$5.4 million during a five-year period.
The funding will allow the group
www.miningoilgas.com.au
and is prepared to enter discussions
with the project stakeholders with a
view to entering lump sum contracts
for construction and delivery of the port
and operate arrangements in respect of
the development and operation of the
mines on attractive terms relative to the
project parameters released by Aquila
in October 2012,” Mineral Resources
stated.
The WPIOP is one of the largest
independently owned direct shipping
ore projects in Australia. It would be
developed as a long term project, with
Stage 1 JORC-compliant reserves
of 445.1 million tonnes of iron ore
underpinning mine, rail and port
development. The Stage 1 mine would
focus on deposits between 30km and
85km southwest of Pannawonica.
According to Aquila, which owns 50 per
cent interest in the project, the WPIOP
had the potential for considerable future
growth with a total JORC-compliant
resource of 2.233 billion tonnes of
iron ore, with additional exploration
potential. The first stage of the West Pilbara Iron Ore Project would focus on deposits south west of Pannawonica
“Mineral Resources has the proven
ability to develop world class, large scale the project and build, own and operate and Baosteel, to facilitate the best
iron ore projects on a fixed cost basis arrangements in respect of the mine, outcome possible.”
in the shortest possible time,” Mineral which we have successfully employed Aquila recently secured native
Resources managing director Chris previously. title agreements with the Kuruma
Ellison said. “We have the financial capacity to Marthudunera native title
“We are confident that we can play an make a meaningful capital contribution claim group in what it called an
important role in delivering the WPIOP towards the development of the project “important achievement towards
on attractive terms through building and will now proceed to engage with all the grant of mining leases for
the port and other infrastructure for major stakeholders, including Aquila Stage 1 of the project”.
to use big data sets and exponentially
increased computing power to model the
interaction between processes on the
earth’s surface and deep below it in ‘five
dimensions’.
“This research will be of fundamental
importance to both the geo-software
industry, used by exploration and
mining companies, and to other areas of
the energy industry,” Hub director and
School of Geosciences member Professor
Dietmar Müller said.
“The outcomes will be especially
important for identifying exploration
targets in deep basins in remote
regions of Australia. It will create
a new ‘exploration geodynamics’
toolbox for industry to improve estimates
of what resources might be found in
individual basins.”
The research will utilise data from
multiple sources to create models
combining three dimensional space with
extra dimensions of times and estimates
of uncertainty. The study will focus on
the North West Shelf area of Australia,
Papua New Guinea, and the Atlantic
Ocean continental margins.
“Previously the approach to
analysing these basins has been
based on interpreting geological
data and two-dimensional models.
We apply infinitely more computing
power to enhance our understanding
of sedimentary basins as the
product of the complex interplay between
surface and deep Earth processes,”
Professor Müller said.
Associate Professor Patrice
Rey and Professor Dietmar
Müller will lead a collaborative
research initiative into the
study of basins
14 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

GENERAL NEWS

Share placement pushes Kipoi forward

Rachel Dally-Watkins
WITH the finalisation of an institutional
placement, Tiger Resources has received
$20 million towards works at its Kipoi
copper project in the Democratic Republic
of Congo (DRC).
The company also signed an agreement
for a US$25 million offtake prepayment
facility.
From these funds, Tiger will use US$21
million to implement early works capital
expenditure for Phase II and Phase III
of a planned expansion project at Kipoi.
Tiger will use US$10 million as a loan to
its 60 per cent owned subsidiary Société
de Exploitation de Kipoi, to settle the
DRC Government’s 5 per cent interest in
the project, as per the country’s mining
code. The balance of funds will be used for
working capital.
“The company decided to bring forward
a number of capital expenditure items
currently budgeted in Phase II and Phase
III of the SXEW [solvent extraction and
electrowinning] expansion program,” Tiger
stated.
“These items include an upgrade to
the power distribution network and site
works for the installation of 30 [megavolt
ampere] electrical transformers, the early
development of heap leach pads two, three
and four, and the installation of a conveyor
and stacker system which will replace the
current 800m truck haulage requirement of
ore to the heap leach operation.
“These initiatives are expected to
materially reduce unit operating costs
in Phase I as well as facilitate the
implementation of the Phase II and Phase
III expansion.
“The working capital allocation is to
provide adequate reserves against any
unforeseen delays or costs during the
SXEW ramp-up.”
The Kipoi project covers 55 square
kilometres in the Katanga Province; Tiger
has delineated JORC-compliant resources
at the Kipoi Central, Kipoi North, Kileba
and Judeira deposits. The project is being
developed in stages, with Stage 1 utilising
a heavy media separation (HMS) plant to
produce copper cathode.
“Construction of the Stage 2 SXEW
plant commenced in January 2013 and
commenced first production of copper
cathode in May 2014,” Tiger stated.
“The feasibility study for Stage 2 has
confirmed the operation as a low-cost,
high-margin project capable of producing
538,000 tonnes of copper cathode over 11
years, processing ore reserves from the
Kipoi Central, Kileba and Kipoi North
deposits and reject floats, slimes and
medium grade ore stockpiles from the
Stage 1 HMS operation.
“It is envisaged that ore from Judeira
and other deposits within the Kipoi project
area, as well as the Lupoto project, will also
be processed during the Stage 2 operations,
providing additional returns and
increasing the mineral resources available The completion of a share placement and an offtake agreement will allow Tiger Resources to
as feedstock to the Stage 2 SXEW plant.” progress works at it Kipoi copper project

Successful rights issue paves path to production

REUBEN ADAMS

FIRST production from New Talisman

Gold Mines’ flagship project is targeted
for the end of this year after a one-for-two
renounceable rights issue raised $634,069
towards development.
New Talisman called it “one of the most
successful rights issues of an Australian
and New Zealand junior mining company
over the last 18 months”, confirming
market confidence in the company.
The historic Talisman gold mine, on
New Zealand’s Coromandel Peninsula,
has a JORC resource of 205,000oz of gold
and reserves of 28,800oz of gold. The
Talisman permit area could potentially
host between 550,000oz and 2 million
ounces of gold, and between 1.5moz and
6moz of silver.
New Talisman chief executive Matthew
Hill said the company preferred to offer
existing eligible holders the opportunity
to participate in the mines development
at a “generous discount” provided, rather
than fund via external sources.
“The amount was raised in very
difficult market conditions demonstrating
tremendous support by our [New Zealand]
shareholders who were by far the highest
participants,” he said.
“Having given shareholders the
opportunity to participate we can now look
at further opportunities to complete the
funding objectives of the company.”
Gold mining began in the area in
1875, with the main mining period
lasting until 1919. Mining continued at
varying levels of intensity up to 1992.
The area historically produced more
than 1moz of gold and 3moz of silver
from a total strike length of 1km and
700m depth, with the majority of
production coming from the Talisman
and Crown mines. The historic Talisman mine has a JORC-compliant resource of 205,000 ounces of gold
16 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

GENERAL NEWS

King Island mine green-lit for redevelopment

reuben adams
THE Tasmanian Government has
green-lit the proposed redevelopment of
a historic high grade tungsten mine and
processing facility at Grassy on King
Island.
Tasmanian Resources minister Paul
Harriss granted a mining lease to a
subsidiary of King Island Sheelite (KIS),
which expected to start a four-month
dewatering program at the Dolphin open
cut mine in July.
KIS was looking to fast track the
project, with an aim to commence
production in 2016.
KIS chairman Johann Jacobs said
it was an exciting development for the
company and – although a final decision
wouldn’t be made until late 2014 – the
development of a mine and processing
facility on King Island would provide
a major boost to the local economy and
workforce.
“The entire operation falls within
the previous mine footprint and will,
therefore, not significantly increase the
environmental disturbance at the site,”
Mr Harriss said.
KIS is scoping a low capital
expenditure staged open cut and
underground operation over the historic
operations, which could produce about
36,000t of tungsten at an average grade
of 0.83 per cent from a life of mine (LOM)
mill feed of 400,000 tonnes per annum.
Development and environmental
approvals are still in place; only minor
changes will be required to permit the
current option.
According to a Breakaway Research
report released in April, the historically
high grade mine still boasts significant
open cut and underground resources, at
grades significantly higher than KIS’
ASX-listed peers.
“The key to the King Island project
is its grade – an average LOM feed
grade of [about] 0.83 per cent [tungsten
trioxide] contributes to a potentially
robust operation,” the report stated.
“There is also good exploration The historic King Island mine operated at various times between 1917 and 1990, until it was closed
potential on the flanks of the due to depressed tungsten prices Photo: KIS
mineralising intrusives.
“We see good value in King Island a potential value well above current securing an offtake deal and, down the
Scheelite, with our high level economic price levels. track, successful project funding and
analysis indicating a robust project with “Key price drivers will include then execution.”

Joint venture to fast-track Ternnant Creek project

Rachel Dally-Watkins
A joint venture deal between Emmerson
Resources and Evolution Mining will
fast-track the exploration and development
of gold and copper deposits within the
Tennant Creek Mineral Field (TCMF) in
the Northern Territory.
In order to earn a 65 per cent interest in
the project, Evolution will fund $15 million
of exploration across three years, with the
option to earn an additional 10 per cent
interest by spending a further $10 million
across two more years.
As part of the deal, Evolution would
purchase $1.87 million of Emmerson
shares, and Emmerson would receive $2
million worth of Evolution script.
The TCMF exploration licences, mining
leases and claims, 500km north of Alice
Springs, are wholly-owned by Emmerson
and cover 2500 square kilometres of land
with historical production of more than
5.5 million ounces of gold and 488,000t
of copper. The project is geographically
divided into four quadrants (north, east,
south and west) each containing numerous
exploration targets.
Emmerson stated that exploration and
near-mine drill programs would begin
soon, with a focus on rapidly increasing the
existing JORC-compliant resources and
discovering additional high grade deposits.
The exploration program will include an
“aggressive drill commitment by Evolution,
managed and operated by Emmerson
but encapsulating the development
and exploration expertise of Evolution
via a joint Exploration Management
Committee”.
“This announcement is the culmination
of a focussed and determined effort to
introduce a partner to the Tennant Creek
Mineral Field who sees the potential beyond
that previously identified,” Emmerson
managing director Rob Bills said.
“The joint venture agreement with
Evolution will set the scene for the
discovery of major new gold-copper
resources, building on Emmerson’s work
in recent years which began to unlock
the secrets of finding a new generation of
gold-copper deposits in the Tennant Creek
area. Historical works within the Tennant Creek Mineral Field produced more than 5.5 million ounces
“This agreement effectively secures of gold and 488,000t of copper
the future for Emmerson by providing
the funding to underpin a very significant excellent working relationship with importance of continuing to build strong
exploration effort- to build on the existing Evolution, share a very similar approach relationships with all stakeholders
JORC resources and to test a range of new to science driven exploration and are including the Traditional Owners, the
generation gold-copper targets, which, if delighted by their commitment to rapidly Central Land Council, Northern Territory
successful, will be fast-tracked through to build a substantive resource base ahead of Government and various communities
development. production. and businesses in the Tennant Creek
“We have already established an “Both parties also recognise the township,” Mr Bills said.

Universities secure significant mining research grants

Reuben Adams
A new $17.4 million research hub at
the University of Tasmania will aim to
transform the mining value chain, from
exploration and discovery through mining
and processing to waste disposal.
The University of Tasmania research
centre Australian Research Council (ARC)
Centre of Excellence in Ore Deposits
(CODES) will partner with government
and industry to establish the unique
Transforming the Mining Value Chain
(TMVC) research hub.
Research would extend mine
life and employment opportunities
across Australia’s regional mining
centres, through the development of
more efficient and environmentally
sustainable exploration, mineral
processing and waste disposal practices.
The TMVC will be funded from a
$4 million research grant from ARC’s
Industrial Transformation Research
Hub scheme; $9.6 million in industry
support; and the remainder from other
government block funds.
University of Tasmania Vice-Chancellor
Professor Peter Rathjen congratulated the
team at CODES.
“The University’s research is at the
forefront of one of the nation’s biggest
economic drivers – mining,” he said.
“CODES continue to be globally
recognised in its field of research, with
this latest round of ARC funding further
reflecting the university’s commitment to
research partnerships and excellence at
both a local and global level.”
The hub will bring together a team of
world-class researchers from the University
of Tasmania, the University of Exeter and
Australia’s Information Communications
Technology Research Centre of Excellence
to work with partner organisations
Newcrest Mining, BHP Billiton, Corescan,
Laurin Technic and a consortium of
national and international companies.
The University of Newcastle will
also receive $6.2 million to establish
a new research hub dedicated to
“future-proofing” Australia’s iron ore
production and export industry.
Researchers said the iron ore research
hub, funded by the Australian research
council and industry, aimed to establish
new separation and handling techniques to
benefit the entire industry.
The ARC Research Hub for Advanced
Technologies for Australian Iron Ore hub
would exploit the University’s three major
specialist areas in the minerals sector –
beneficiation, bulk solids handling and
technical marketing research.
In February, the University of
Newcastle received $30 million to develop
new technology to cut greenhouse gases
from underground coal mines and help
combat climate change – the largest
grant in the university’s history for a
single research project.
18 THE AUSTRALIAN MINING REVIEW JULY 2014
GENERAL NEWS
Design collaboration achieves industry-leading crushing solution
THE Australian quarry industry’s
demands for greater efficiencies as
well as higher standards of safety
and sustainability are driving a move
towards in-pit crushing. Following an
extensive design consultation process
for its Peppertree Quarry, Australia’s
largest building and construction
materials supplier, Boral, is leading the
way in world’s best practice for in-pit
crushing.
Boral implemented an innovative
in-pit crushing solution at its new
Peppertree quarry at Marulan South in
the NSW Southern Tablelands, around
180km southwest of Sydney. Due to
become fully operational in 2014, the
new quarry will supply the Sydney
metropolitan area and greater NSW
building and construction industries
with up to 3.5 million tonnes of aggregate
products per annum.
The Peppertree quarry is part of
Boral’s Sydney Aggregates Project,
which will address the anticipated
depletion of raw material reserves at
the 100 year old Penrith Lakes Scheme
in Sydney, of which Boral is a major
shareholder. Peppertree will ensure that
Boral maintains its competitive position
as a leading supplier of quarry products
for many years.
Construction of the new facilities at
Peppertree started in July 2011 after
more than a decade of planning. A risk
assessment of the crushing process led
to the selection of in-pit crushing as the
safest and most efficient option for the
new plant. Boral site manager Steve
Parsons said the use of in-pit crushing
for quarry applications had been a
trend in Europe for some time but was
relatively new in Australia.
“Boral is now looking to optimise its
quarrying process and get away from the
traditional load and haul methodology
where you have a large number of trucks
and people moving between the blast site
and the fixed crushing plant,” he said.
The mobile crushing solution
implemented at Peppertree allowed
Boral to significantly reduce its
mobile fleet along with its associated
fuel consumption, safety risks and
Boral’s Lokotrack LT160 at the Peppertree Quarry is the largest, most sophisticated mobile crusher in the southern hemisphere
Boral’s Lokolink conveyers have walkways that extend along their entire length on both sides
maintenance requirements.
Boral Sydney Aggregates Project
senior occupational health and safety
advisor Natalie Constantine said the
mobile crushing solution suited Boral on
a number of fronts.
“One is the safety aspect – it reduces
our mobile fleet so we’ve got less traffic
movements on the site, which is much
safer,” she said.
“From an environmental perspective,
it reduces fuel consumption and the
environmental impact of dust emissions.
From a health and safety as well as an
environmental perspective, it’s a really
great solution – but most importantly,
from an operational perspective it does
everything we need it to do.”
Rigorous research into finding a
crusher that could handle the planned
production volume at the Peppertree
plant led Boral to select Metso’s
Lokotrack LT160 together with the
company’s patented Lokolink mobile
conveyor system.
Weighing in at 285t and measuring
12m high by 25m long, the Lokotrack
LT160 at Peppertree is the largest mobile
crusher in the southern hemisphere.
Extensive design consultation between
Boral’s technical staff and Metso’s
design team prior to design finalisation
and manufacture produced the most
sophisticated machine of its kind, with
a number of innovations not seen on a
mobile machine before.
From the outset, Boral was
determined to ensure its new facilities
incorporated world’s best standards in
safety, sustainability and efficiency. One
of the major challenges was to customise
the LT160 to meet Boral’s strict safety
requirements, which are more stringent
than either Australian or European
www.miningoilgas.com.au
standards. To achieve this, Boral put
together a team of designers, engineers,
operators and OHS personnel to review
the LT160 design and to identify any
potential hazards and improvements
before accepting the final design.
As well as ensuring that the crusher
conformed to Boral’s stringent safety
requirements and was easy to operate
and maintain, minimising noise was also
an important outcome.
As a result of the design consultation
process, the LT160 at Peppertree has
a number of features which make the
machine unique in regard to current
safety practices.
Some of the solutions, such as guarding
and using stairs rather than ladders
for maintenance access, are Australian
standards requirements whereas others
are unique requirements that arose
during the design consultation phase
including: shrouds around the crusher
to reduce both dust and noise; rubber
wear liners on the hopper to reduce noise;
a service crane installed for jaw liner
changes to eliminate the need for a mobile
crane; and walkways that extend the full
length of the Lokolink conveyors on both
sides (rather than just on one side).
Some of the solutions are extremely
simple but very effective. For example
the exterior lights on the crusher have
magnetic mounts so operators can move
them around to ensure the best lighting
of their work areas at night.
“Another thing that’s really interesting
is the segregation of the electrical switch
room,” Ms Constantine said.
“It appears to be all one structure
but, when you put the crusher in situ,
the electrical switch room has its own
legs that jack up to slightly separate
it from the rest of the structure so it
isn’t affected by vibration when the
equipment is operating.
“That’s a very neat solution and will
reduce maintenance resulting from wear
and tear on that part of the building.
It’s another one of those really clever
solutions that Metso put in place.”
Ensuring that the machine fully met
Australian standards as well as Boral’s
requirements before delivery, brought
the company significant cost savings by
avoiding the need for site re-work and
retrofits along with associated loss of
production.
20 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

FINANCE

FINANCE TABLES

YOUR GUIDE TO WORLD RESOURCE MARKETS

ASX Metals and Mining Index Commodity Prices

Aluminium London US$/tonne June 16 1801.5

Tuesday 17 June 3065.21 Copper London US$/tonne June 16 6734.5

US$/ounce
Monday 16 June 3092.45 Gold New York June 16 1271.7
spot

Lead London US$/tonne June 16 2063.5

Friday 13 June 3063.21

Nickel London US$/tonne June 16 18,310

Thursday 12 June 3102.05
Platinum New York US$/ounce June 16 1430
Wednesday 11 June 3135.30
Silver New York US$/ounce June 16 19.67

Tuesday 10 June 3160.19 Tin London US$/tonne June 16 22,650

Friday 6 June 3154.47 Uranium New York US$/pound June 9 28.50

Zinc London US$/tonne June 16 2084.5

Thursday 5 June 3154.34

Wednesday 4 June 3150.66 LME Metal Stocks (tonnes, as at June 16)

Tuesday 3 June 3163.81 Aluminium 5,118,150

Monday 2 June 3177.64 Copper 162,250

Lead 191,100
Friday 30 May 3194.19

Nickel 286,668
Thursday 29 May 3238.82
Tin 10,900
Wednesday 28 May 3285.15
Zinc 683,350

UPCOMING FLOATS COMPANY LISTINGS

The entities listed below have made application for admission to the official list of the ASX. Recent company debuts on the ASX:
Scheduled float dates are subject to change.
June 2014 To Be Advised May 2014
American Patriot Oil & Gas 7 – Stavely Minerals
12 – Huayi Resources
China Mining 21 – Fifth Element Resources
Application Withdrawn
June 2014
Mount Adrah Gold
5 – RTG Mining
22 THE AUSTRALIAN MINING REVIEW JULY 2014
FINANCE
MOVERS & SHAKERS
Tungsten Mining managing director Paul
Berndt recently announced his intention
to stand down from the role to pursue other
opportunities. In a statement, Tungsten said
Mr Berndt would continue as a non-executive
director and would provide consultancy
services to the company.
“The company would like to thank Mr
Berndt for his outstanding contribution in
his two years with [Tungsten Mining],” the
company stated.
“As inaugural managing director he
oversaw its IPO in December 2012, and the
growth of the company since then.”
As part of a corporate restructuring
initiative, Range Resources recently
announced the resignation of Peter Landau
and Anthony Eastman from its board,
effective immediately.
In a statement the Range board stated that
it had initiated a recruitment process for two
Australian directors to replace the outgoing
directors, as required by the listing rules of
the ASX.
“I would like to thank Peter and Anthony
for their dedication and contribution to the
company,” Range chairman Sir Samuel Jonah
said.
“On behalf of the board, I wish them all the
best in the future.”
In late May, Range announced with
immediate effect the appointment of Nick
Beattie as chief financial officer, to be based
in London.
Mr Beattie has more than 20 years of
experience in finance, working with a range
of international banks. Most recently he was
a managing director in the BNP Paribas
Upstream Oil and Gas team in London
where he was responsible for leading bank
relationships with UK focussed independent
exploration and production companies.
Prior to working with BNP Paribas, Mr
Beattie worked as a director within the oil
and gas finance team at Fortis Bank covering
Europe, the Middle East and Africa, and in a
variety of roles with National Australia Bank
Group. Mr Beattie is an Associate Member of
the Association of Corporate Treasurers and a
Fellow of the Chartered Institute of Bankers
in Scotland.
Evolution Mining recently advised the
market of the appointment of Lawrie Conway
as finance director and chief financial officer,
effective 1 August.
Mr Conway had been a non-executive
director of Evolution since its formation in
October 2011, and is currently a member
of the company’s audit committee and its
nomination and remuneration committee. In
a statement Evolution said Mr Conway would
continue to serve on the company’s board, but
that the composition of the board committees
would be addressed by the board prior to 1
August.
Mr Conway has more than 24 years of
experience in the resources sector across
a diverse range of commercial, financial,
and operational activities in corporate
and operational commercial roles within
Australia, Papua New Guinea and Chile. Mr
Conway most recently held the position of
Newcrest Mining executive general manager
– Commercial and West Africa; prior to that
he worked with BHP Billiton.
Yellow Rock Resources has appointed
experienced executive David Hughes as its
new chief executive.
Email te details and a photo to editorial@miningoilgas.com.au
An economic geologist, Mr Hughes has
more than 20 years of experience in Australia
and internationally across all aspects of the
resources industry including exploration,
development, mining and finance.
Mr Hughes is a graduate of Curtin
University and has worked in a number of
roles in Australia in various gold, uranium
and base metal mining operations including
technical services manager of Rio Tinto’s
Ranger uranium mine in the Northern
Territory. More recently, Mr Hughes was
managing director and chief executive of
South Boulder Mines; he successfully oversaw
the discovery and initial development of the
Colluli potash project in Eritrea.
In early June the board of Mutiny Gold
advised the market that non-executive director
and managing director elect Anthony James
had assumed the role of managing director.
In a statement the board expressed thanks
to Rowan Johnston for his contribution as
acting chief executive since February 2014.
“In line with the company’s primary
objective of developing the Deflector mine
at its Gullewa project Mr Johnston has been
appointed director of operations,” the board
stated.
On 10 June, WA Premier and Science
minister Colin Barnett announced the
appointment of The University of Western
Australia’s Professor Peter Klinken as the
state’s new chief scientist – the third UWA
researcher to be appointed to the role.
Professor Klinken, a leading medical
researcher, said he hoped his tenure would
oversee a change in research focus for the
state.
“I hope I can play a role as chief scientist
in turning Perth into a centre for innovation
and creativity that will see us move from our
successes in oil and gas mining to creating
new industries in biotechnology,” Professor
Klinken said.
Professor Klinken is highly regarded
for advancing the understanding of genes
involved in leukaemia, cancer and anaemia,
and his many research achievements include
the discovery of a gene that suppresses the
growth of tumours. He played a key role in
establishing the state’s premier adult medical
research institute, the Harry Perkins Institute
of Medical Research – previously the Western
Australian Institute for Medical Research – in
1998.
In mid June, Westpac announced that
Steve Hannan, one of the group’s most
senior regional business bankers, had been
appointed as its new national general manager
responsible for its agribusiness operation.
Mr Hannan has worked for Westpac for
25 years; he takes his new role over from
Graham Jennings who retired from the role
of general manager, Agribusiness, in March.
Mr Hannan has acted in the post since Mr
Jennings’ retirement.
“A graduate and Fellow of the Australian
Rural Leadership Foundation, Mr Hannan
brings a wealth of experience to his new
role, having previously run the regional,
commercial and agribusiness operations in
New South Wales and regional commercial
business in Queensland for Westpac’s Retail
and Business Banking division (WRBB),”
Westpac said in a statement.
“Prior to his seven year stint in the NSW
job and most recently his Queensland
responsibilities which were added to his brief
Got an entry for this column?
www.miningoilgas.com.au
last year, Mr Hannan was head of business
banking for Regional NSW and the ACT.”
Exploration and mining software solutions
and services provider MICROMINE recently
announced the appointment of Wally
Borovac as managing director and chief
executive. MICROMINE reported that founder
and managing director Graeme Tuder would
take up the role of executive director.
“Mr Tuder commenced MICROMINE 28
years ago, and has built the company into a
leading provider of technology solutions for
the mining sector, with offices and support
in all the leading resource centres around the
world,” the company stated.
In his new role, Mr Tuder will take
responsibility for the regional offices and will
work closely with those offices to continue
to deliver excellent services and products to
local clients.
“Existing [chief executive] Kevin
Fitzpatrick will assume the role of chief
financial officer, taking responsibility
for global finances, human resources and
administration of the group.”
Following a successful period as Perth
office manager, NDY director Andrew
Macgregor is moving to build on the firm’s
opportunities in the resources sector, leading
the development of NDY’s presence in South
East Asia.
“There is ongoing demand for NDY’s services
in the resources sector and I will be focussed
on building on our portfolio of non-process
infrastructure projects,” Mr Macgregor said.
In a statement, NDY also announced that
director Alan Edler was taking on the role of
NDY Perth office director-in-charge.
“I’m very much looking forward to the
challenges associated with the larger market
and diverse range of projects in WA,” Mr
Edler said.
Professional services firm Deloitte Australia
recently announced the promotion of six new
partners to its Perth practice – and the arrival
of a new partner to the practice – as part of a
national total of 93 partner promotions and
experienced lateral hires announced by the
firm in early June.
The Perth appointments take effect on
1 July; they include: Jennifer Morris,
Consulting Human Capital; Alan Marshall,
Consulting Enterprise Information
Management; Thomas Hodgkins, Deloitte
Private; Matthew Yearsley, Deloitte Private
Motor Industry; Omesh Motiwalla, Financial
Advisory Services; and Steve Andreazza,
Tax R&D.
Honeywell recently announced that Vimal
Kapur had been named president of Honeywell
Process Solutions (HPS), a Honeywell
business that supplies automation control,
instrumentation and services to process
manufacturers in industries such as oil and
gas, refining, pulp and paper, petrochemicals,
and metals, minerals and mining.
“A near 30-year veteran of the process
automation industry, Mr Kapur has been
with Honeywell for more than 25 years,” the
company stated.
“He has held a number of key strategic
business positions within Honeywell including
vice president of global marketing and strategy
for HPS, and managing director for Honeywell
Automation India. Prior to this appointment,
he was vice president/general manager of the
advanced solutions line of business for HPS.”
24 THE AUSTRALIAN MINING REVIEW
EXPLORERS ON THE MOVE Rutila Resources
Ambitious port project spearheads growth
REUBEN ADAMS
IN September 2013, iron ore venture Forge
Resources changed its name to Rutila
Resources, partially to avoid confusion with
the ill-fated engineering and construction
company, Forge Group. This confusion,
indicative of Rutila’s low profile and small
market cap, has not stopped the company
from spearheading an ambitious $3.3 billion
port and rail project in the Pilbara. Despite
softening iron ore prices and an uneasy
investment space, Rutila maintains that its
Balla Balla vanadium-titanium-magnetite
project, and associated export facility, would
be crucial for long term growth.
The port and rail joint venture – dubbed
the Central Pilbara Infrastructure Project
(CPIP) – between ASX-listed Flinders Mines
and the Balla Balla JV (Rutila 68 per cent,
Todd Minerals 32 per cent) was announced
in January. The port would be connected
to Flinders’ marooned Pilbara Iron Ore
Project (PIOP) by a 200km railway, in a link
that would end Flinders’ long search for a
transport infrastructure partner. For Rutila
and Flinders, the agreement could be a game
changer.
Utilisation of surplus design capacity by
Flinders would spread the related capital
costs across larger export tonnage, reducing
unit costs per tonne and increasing the
financial viability of both the Balla Balla mine
and the PIOP.
“The Alliance agreement contemplates the
use of the proposed Balla Balla mine export
facilities surplus design capacity above the
6 to 10 [million tonnes per annum] required
for the development of the Balla Balla mine,”
Rutila said in a statement.
“The transportation and port handling
service for the PIOP will combine a proposed
rail transport solution together with the
proposed export facility surplus design
capacity, subject to government approvals.”
The joint venture has already established
The joint venture has already established native title and environmental approvals for the Balla
Balla export facility
JULY 2014
The Central Pilbara Infrastructure Project will provide port and rail facilities to the Balla Balla project
native title approval and environmental
approvals at both state and federal level.
Tenure has been granted from the existing
Rutila tenure to the coastline to allow the
harbour – which will be adjacent to key
infrastructure, including a gas pipeline, grid
power and the North West Coastal Highway –
to be accessed. Rutila and Flinders will spend
the next 18 months conducting a bankable
feasibility study, with a final investment
decision expected by December 2015.
Balla Balla
Rutila described the Balla Balla project
as a “leading asset of its type globally”.
The deposit contains high grades of iron,
titanium and vanadium, and is adjacent to
key infrastructure including gas pipeline, grid
power, and the North West Coastal Highway.
According to Rutila, Balla Balla is a low
cost, long life asset due with a particularly
advantageous coastal location just 8km from
the coast, midway between Dampier and
Port Hedland. With a resource and reserve
of 455.9mt and 318mt respectively, Rutila is
targeting initial production of 6mtpa, ramping
up to 10mtpa across an initial 18-year mine
life. Importantly, the company has put almost
all required approvals to bed.
Alliance agreement
Flinders signed with Rutila and Todd to
become the foundation user of the Balla Balla
Port excess capacity, through the proposed
development of its 25mtpa PIOP, where a
resource of more than 250mt grading 58.5 per
cent iron would support an initial mine life of
more than 10 years.
Flinders and the Rutila Todd JV have
agreed on “mutually beneficial” commercial
terms: Flinders would commit to a minimum
of 20mtpa, with the option to transport up
to 30mtpa should it be made available; and
Flinders would pay a $25/t service charge on
each tonne handled through the facilities,
among other terms. Rutila maintained that
the estimated operating costs and capital
costs for both the port and railway would be
“tier 1 on the cost curve” – inclusive of all
costs, PIOP product would land in China at
about US$61/t.
Rutila described the project’s economics
as “compelling” and “very competitive in
the context of the iron ore industry”. While
eventual project funding could be challenging
given that both Rutila and Flinders have
reasonably small market capitalisations,
Rutila’s short term costs are covered.
During the March quarter Rutila reached
an agreement with Todd for a $10 million
funding package, together with extension of
the existing loan facility to 31 December 2015.
“The excellent support the company
has received from our largest independent
shareholder and also JV partner in the Balla
Balla and Central Pilbara Infrastructure
project is of great benefit to the company at
a time when the capital market environment
is difficult for junior resource focused
companies,” Rutila said in a statement.
“The board wishes to recognise Todd’s
ongoing support.”
Planning and development
The small scale, 45mtpa CPIP port, midway
between Port Hedland and Cape Lambert port,
would utilise barges – or transhipping vessels
(TSVs) – to ferry ore to larger vessels more
than 30km offshore. Known as transhipping,
the technique would significantly reduce the
www.miningoilgas.com.au
need for dredging and other infrastructure
inherent to deep-water ports.
Depuch Island and West Moore Island
form a naturally sheltered harbour – an ideal
environment for loading the TSVs at the
port jetty and unloading them into cape size
vessels anchored offshore, according to Rutila.
The transhipping vessels are purpose-built,
shallow draft, self propelled and self unloading
ships (8000tph) designed to carry about
30,000t per run.
Rutila stated that transhipment was a “low
capital intensive solution” to increasing export
capacity, and was being employed around the
world. According to the company, use of the
method would allow the proposed port to be the
lowest capital cost per tonne of export capacity
in the Pilbara, at an estimated $15.24/t. By
comparison, the capital intensity per tonne for
Fortescue Metals Group, BHP Billiton (Port
Hedland) and Rio Tinto (Cape Lambert) were
$41/t, $55/t, and $69/t respectively.
In June Rutila appointed Peter Jones as
engineering group executive, with project
engineering responsibilities for the proposed
Balla Balla mine export facility and the CPIP.
Mr Jones, a chartered professional engineer
with more than 30 years of experience in EPC,
joined the company from UGL where he was
major projects group manager.
“The company is very pleased to appoint
someone of Peter’s calibre to the Group
Executive, Engineering role,” Rutila executive
chairman Nicholas Curtis said.
“Peter has hit the ground running and is
already making a significant contribution to
the project and the company.
“His skills and experience shall be
invaluable as we progress our project through
FEED engineering, contractor selection and
engagement into construction.”
Rutila reported that it believed the low
capital intensity of the proposed port, short
200km railway, and bottom quartile operating
costs would make it a very compelling project.
“The Rutila Todd JV is backed by
experienced management and significant
stakeholders who are capable of arranging
project financing and bringing the Central
Pilbara Infrastructure Project into operation
targeting financial investment decision prior
to the end of 2015 and commencement of
operations scheduled for 2017,” a company
presentation stated.
“The development of the Central
Pilbara Infrastructure Project (Port &
Rail), Flinders PIOP, and Balla Balla
iron-vanadium-titanium mine will
create significant value for Rutila, Todd,
Flinders Mines, the community and the
Government.”
www.miningoilgas.com.au
SPECIAL PROFILE Cauldron Energy
Excitement brewing for ‘company-making’ assets
REUBEN ADAMS
THE stream of exciting news from
uranium developer Cauldron Energy in
2014 has investors buzzing. Its focus – the
development of its WA, South Australian
and Argentinean uranium assets through
to production – received a significant
uplift in June, when the company closed a
crucial $11 million round of funding from
a number of Chinese investors.
Cauldron head of operations Simon
Youds called the company a “consolidator”
of some of the most exciting, low cost
uranium assets in the world.
“We have a company maker in WA,
a potential company maker in South
Australia, and if we can see our way
through the various political logjams
that we have come across in Argentina,
then we have a potential company maker
there,” Mr Youds said.
“Most companies have one; there are
three inside Cauldron now, at different
stages of development.”
The company’s most advanced project
and key focus, Yanrey, covers 3326 square
kilometres south of Onslow in northwest
WA, and is adjacent to tenements
controlled by fellow uranium companies
Paladin Resources and Energia Minerals.
Yanrey includes the Bennet Well deposit,
which has a current JORC Inferred and
Indicated Resource of 15.7 million pounds
of equivalent uranium at 270 parts
per million. This is expected to jump
significantly in the June quarter.
A cost effective extraction process
Leaching test work using in-situ leach
(ISL) reagent conditions was completed
on Bennet Well drill core at the ANSTO
research facility in NSW in the March
quarter. The results represented a step
change for the company.
Extraction of more than 96 per cent,
without needing additional oxidant,
meant that the uranium mineralisation
at Yanrey would be readily leachable in
acid or alkali conditions.
With the testwork results establishing
that the uranium was recoverable and
marketable, it stops being a question
of ‘if’ and becomes a matter of ‘when’,
according to Mr Youds.
“We are now on the project development
pathway,” he said.
“We need to tick some boxes, but now
the question “can we recover this by in
situ recovery?” can be answered by yes.”
Additionally, Bennet Well resource
will continue to expand, with upside in
every direction. Cauldron is expecting a
significant upgrade in the June quarter
– even without drilling – based on the
results that came in from the core.
“ANSTO have done the testwork in
terms of the proper uranium definition,
and that has given us a significant uplift
of around 20 to 40 per cent, without
spending a penny,” Mr Youds said.
“We have some additional drilling to
add into that as well. We now have more
geological information which allows us to
do the proper stratigraphic work.”
Mr Youds said that the core drilling
had two outcomes. It showed that the
resource was recoverable and marketable
while providing the company with crucial
insights into the stratigraphy of the area,
its history and how the deposits were
formed.
“This has allowed us to expand that
resource – we know a lot more absolute
where to put our holes, we know how to
fill the gaps in the information that we
have. It’s an absolute step change,” he
said.
Cauldron Energy has significant uranium assets in WA, South Australia and Argentina
Important cash injection
A Beijing roadshow in late 2013 has now paid
serious dividends after a lack of available
cash momentarily delayed Cauldron’s plans.
While major shareholder Cape Lambert
Resources agreed to loan the company a
handy $1 million during the March quarter,
it was a previously announced mandate
entered into with Beijing-based Shanghai
Joseph Limitless Investment Limited
for $10 million which would support the
company’s project development plans at
Bennet Well. The Chinese investors have
previously indicated their preference for
Asian dual listings for ease of investment.
In June, Cauldron closed the round of
funding for $11 million. Funds raised would
be put to resource definition at Yanrey,
as well as exploration at the Marree base
metals project in South Australia and its
Argentinean uranium-copper-silver asset.
The funds would be paid between June 2014
and December 2015, subject to shareholder
approval, with the majority being received
in the current year.
Maximising economies of scale
As part of a strategy to maximise economies
of scale for Yanrey, Cauldron bid for all of
the shares in neighbouring tenement holder
Cauldron Energy expected a revised resource estimate for Bennet Well in the June quarter
THE AUSTRALIAN MINING REVIEW JULY 2014
Energia Minerals in 2013. If successful, the
merged entity would have held a contiguous
tenement package with a strike of more than
190km in the highly prospective uranium
province in the Carnarvon Basin of WA.
The offer was rejected, but Mr Youds
said, at worst, the offer put a spotlight back
on the uranium rich Yanrey region, and
outlined the potential economies of scale
with an amalgamation of deposits. With
other companies in the area proving up
their own resources, an opportunity could
develop to use common infrastructure as
these projects are moved towards feasibility
and potential production.
“Three companies have separately
demonstrated the exciting nature of the
depositional environment,” Mr Youds said.
“The whole takeover attempt of Energia
– worst case scenario for us was that it
focussed attention on the area, and got
people to understand the economics and the
value that we saw.”
In another attempt to maximise
economies of scale for Yanrey, Cauldron
sought more exploration ground adjacent to
its existing holdings. On 14 February 2014,
the WA Department of Mines and Petroleum
mining warden recommended the refusal of
three uranium exploration licences sought
25
by Cauldron Energy, based on “inadequate
funding”.
“It’s only a recommendation, and it’s
under consideration at the moment,” Mr
Youds said. “We were very surprised by the
warden’s decision, because Cauldron has
followed the same practice as most other
junior explorers by raising cash only to meet
its immediate needs.
“The company was always confident
of raising all the funds necessary to fund
its exploration program, a confidence
which was justified as demonstrated by
the announcement of the successful fund
raising.”
Argentinean assets
During the March quarter, Cauldron also
focussed on “maintaining and consolidating”
its position in Argentina. Its focus, the
Rio Colorado project in the Catamarca
and La Rioja provinces, covers 762sqkm
and contains outcropping mineralised
(uranium, copper and silver) sediments,
which were first identified and explored by
the National Commission of Atomic Energy
(CNEA-Argentina) in the 1950s and 1960s.
Cauldron has been quietly working away
establishing the relationships that it needs
to establish and identifying the key decision
makers.
“There is the Federal government, which
isn’t really in the picture here,” Mr Youds
said.
“The local government and the regional
government are the key areas.
“The local government in the town give
us the social license, and the regional
government are the key decision makers.”
Boosted by the $11 million cash injection,
Cauldron is hoping to get the ball rolling on
a drill program at Rio Colorado very soon.
“Rock chips are rock chips – once we
can get some drilling done we can get the
market’s attention,” Mr Youds said.
“It’s just a question of working slowly
with the people. It’s not as easy as Australia,
but the geology is sensational and the
mineralisation is extensive.”
Development to continue
In the near term, the revised resource
estimate for Bennet Well is expected in the
June quarter. Following that, Mr Youds
said the company wanted to spend about
$500,000 on fixing roads and establishing
an all-year camp, and then spend another
$1.5 million on drilling “to get us to where
we need to be on the project development
pathway”.
Mr Youds said uranium remains
significantly undervalued. The supply
and demand equation would be heavily
weighted on the demand side across the
next five years, which meant there is only
one way the uranium price could go – up.
Cauldron’s production goal at Bennet
Well is 2018 and, as boxes continue to be
ticked, it’s a goal that looks more and more
realistic.
Importantly, by using in-situ leach
recovery methods, Cauldron could be
producing at a profit, even if prices stay low.
“You can produce in-situ leach material
at between $16 and $20 per pound – so you
can still get a project up at these levels,” Mr
Youds said.
“The key for investors to understand is
that we will continue to get this project in
hand, and even if the price stays low for
another two years, this project will be a
producer as the price turns around.
“If you don’t have an in situ leach project
you aren’t going to be developing it at the
moment. To get a hard rock mine up and
running you need a price of between 65 and
70 per pound – its less than half that now.
“We will continue to develop, despite
the price.”
26 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

SPECIAL PROFILE QME 2014

Program restructure to elevate industry ‘health check’

THE 2014 Queensland Mining &
Engineering (QME) Exhibition will
return to the Mackay Showground from
22 to 24 July – a celebration marking
the biennial mining industry event’s
21st birthday. Renowned for bringing
together high-calibre suppliers and
the industry’s leading operators, QME
2014 will focus on providing a platform
for attendees to source the latest, most
innovative and technologically advanced
solutions, all designed to result in ‘Better
Mining’ – the theme of the 2014 event.
“QME is really a snapshot of where
the Queensland mining industry is
positioned and where it is heading,”
Reed Mining Events director Paul Baker
said.
“QME 2014 is focused on providing
solutions that result in better
productivity, better efficiency and better
optimisation.”
Acknowledging that the Australian
mining sector had experienced
significant change since 2012, Mr Baker
said it was more important than ever for
mining companies and mining industry
suppliers to attend and participate.
“QME is unique in the sense that it
targets all levels of mining, right through
from senior executives to operators.
There is something at the exhibition
for everyone, in terms of what suppliers
have to offer, and it’s important that
QME continues to provide opportunities
for mining at all levels,” he said.
“It is more important now than ever
for mining companies to attend QME.
The economic environment has changed,
and ‘one cent’ solutions can now be
the difference between real, long term
growth and a business that is not as
efficient. Solutions that are small, but
game-changing, are key.
“[QME is] very much driven by QME 2014 will focus on providing a platform to source the latest and most technologically advanced solutions
industry, and the talk at the moment is
largely about realignment in the sector. That is where QME is positioned – we that are now of importance. We recognise Electric and many more leading
Our expectation is that QME provides play in the operational space in terms of that mining is at a different stage to suppliers ready and primed to showcase
an ideal platform for mining companies productivity, and that is the area that what it was two years ago, therefore the the latest innovative technology,” Mr
and suppliers to do business with each our suppliers operate in. exhibitor scope at this year’s QME will Baker said.
other. “Mining companies are still willing to be different. “This demonstrates that any
“The investment side of the industry invest in things that relate to efficiency, “We already have Hastings Deering sentiment relating to a ‘shift’ or
may have cooled, but the next turn of the productivity and optimisation – solutions (CAT), Hitachi, Siemens, Sandvik, GE ‘realignment’ within the industry has
market is toward production and export, that reduce costs, and improve process Intelligent Platforms, Atlas Copco, ABB,
and those aspects are at record levels. related outcomes – those are the things Becker Mining Systems, Schneider (continued on page 28)

Safety and efficiency with seamless logistics and modular abilities

WHETHER relocating heavy mining Perth, Gladstone, Port Hedland and
equipment on existing sites or Darwin, ALE provides the highest levels
supporting modularisation in new plant of service in its engineering solutions,
construction, ALE provides essential with a fully integrated logistics service
support to the mining industry on a that combines technical excellence with
global scale. rigorous safety standards.
Advances in the industry have ALE’s latest endeavour in the mining
enabled mines to be built in increasingly sector saw the company engaged in using
remote locations, and ALE works closely one of the largest cranes in Australia to
with leading contractors to transport install car dumper cells weighing more
modules across the most inhospitable than 400 tonnes at Rio Tinto’s Cape
of terrains. For existing mines, the Lambert facility.
company’s SPMTs and lifting, jacking
and skidding capabilities enable it to
move fully assembled equipment in a
manner that is far more cost-effective
than dismantling machinery to move it
piece by piece.
ALE can also deliver equipment to
site from ports, transporting items
ALE works closely with leading
whole and positioning them exactly
contractors to transport modules
where they’re required. across tough terrains
ALE’s seamless logistics service
and modularisation abilities mean
mine operators can have their heavy
components moved safely and efficiently
– whenever and wherever necessary.
With bases across Australia in Brisbane,
28 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

SPECIAL PROFILE QME 2014

Program restructure to elevate industry ‘health check’

(continued from page 26)

not challenged QME’s status as the

premium platform for mining companies
to source the latest innovations and
technology.
“In fact, what is clear is that resource
companies are looking for solutions that
will better their operations. Therefore,
the necessity and importance of QME
has never been greater.
“The healthy response from the
industry confirms that QME provides
unrivalled opportunities for sourcing
operational solutions and networking
with industry peers, and this is again
validated by over 550 suppliers...locked
in for 2014.”
A recently released Economic Impact
Study (EIS) into the 2012 QME event
highlighted the significance of the
exhibition to the Mackay region and its
wider reaching benefits for Queensland.
The report provided a breakdown of
these economic figures for the Mackay
region, Queensland and Australia,
demonstrating the significant economic
benefits of the mining exhibition. The
report found that the total economic
outlay and spend relating to QME within

(continued on page 28) A study of the 2012 QME event showed significant benefits to the Mackay region and wider Queensland

Making longwall connections simpler, faster and safer

THE Gates iLok coupling will
lead to dramatic reductions in downtime
when moving and re-assembling
longwall mining equipment.
The iLok coupling was designed
to replace the traditional staple-lock
and super-staple-lock coupling.
Compared to a staple-lock coupling, iLok
is simpler, safer, and faster.
Moving a longwall miner from one
coal seam to another chews up man
hours. On average, it takes 20 minutes
to de-couple staple-lock couplings. On
a longwall miner with 500 connections,
that is nearly 167 man hours of
labour. Gates’ iLok couplings can be
safely disconnected in two minutes or
less, for a total of 17 man hours of labour
– a decrease of 90 percent.
Workers often resort to dangerous
practices to free staple-lock couplings
to move the equipment. They use
crowbars to pry the staples loose, or
hammers to beat on the coupling ferrule
or the hose, often resulting in a cracked
ferrule or damaged hose, leading to a
leak or catastrophic burst.
The Gates iLok coupling has
coarse, flattened threads to allow
hand-tightening. It can be connected
and disengaged quickly and easily.
To learn more, interested parties are
encouraged to contact Gates Australia
or visit the company website. The Gates iLok coupling can reduce man hours by 90 per cent or more on longwall moves

Professional logistics services for Queensland regions

MINING logistics, including the
transfer of employees from city hubs
to regional mine sites, is central to
maintaining a smoothly run operation.
Mine transfer and chartered tour
operator Mackay Transit Coaches answers
to this need, providing operational contact
– including scheduling and breakdown
response – 24 hours per day, seven days per
week. The company offers a wide variety of
coaches – from 11 to 61 seat vehicles – to
suit any mining and charter requirements.
Mackay Transit Coaches runs
scheduled services 365 days per
year; otherwise the company can tailor
a corporate transportation plan to
suit clients’ individual requirements.
Connecting Mackay, Rockhampton and
surrounding regions with the Bowen Basin,
Mackay Transit Coaches has grown into one
of the most trusted and professional logistics
services in Central and North Queensland.
The company currently operates all urban
route services, and the majority of the
region’s complex network of school services;
as well as long and short charters, VIP
charter services, and increasing volumes
of mining passenger transport services.
Operating from the main depot
in Mackay, Mackay Transit Coaches
prides itself on running a modern and
efficient transport operation – including a
comprehensive facility and well-maintained
coaches, fitted with premium extras.
Mackay Transit Coaches facility features
include: a 28,000l fuel tank, water recycling
plant and oil collection system; a complete
service workshop; the latest coach-manager
operations program technologies; an
Imarda GPS tracking system; as well
as an in-house fully manageable server
network and CCTV camera surveillance.
Mackay Transit Coaches works to ensure
premium safety, reliability and efficiency.
30 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

SPECIAL PROFILE QME 2014

Heavy duty access solutions for

Australian exploration
MINING exploration companies
in Australia often work in harsh
and inhospitable environments,
facing myriad logistics issues when
moving heavy duty equipment to site.
Smart Track Australia specialises in
heavy duty, cost effective and efficient
access solutions for the mining and
construction industries.
Smart Track products, such as the
I-Trac, and Supa-Mat, are suitable for
moving almost anything on tracks or
tyres across almost any surface.
The solution to any land access issue,
the heavy duty and slip resistant I-Trac
product can be used on most surfaces,
and the size, width and length of the
application are unlimited. The product
can be used wherever a roadway, drilling
platform, loading area or compound
needs to be installed.
Smart Track Australia’s robust,
user friendly Supa-Mats are used for
rapid access for all types of machinery.
The mats are placed under proposed
track areas and then removed when a
project is complete – a cost effective
temporary roadway solution. The
product is currently widely used in
construction and mineral exploration.
Boasting the widest range of heavy
duty and pedestrian flooring on Australia,
Smart Track prides itself on being able
to provide a solution to almost any
access problem, in any ground condition. Smart Track Australia specialises in heavy duty, cost effective and efficient access solutions for the
mining and construction industries
www.miningoilgas.com.au
SPECIAL PROFILE QME 2014
Exhaust system specialist
featuring at Queensland expo
AUSTRALIAN company Aletek is a
specialist in the design, manufacture and
installation of diesel exhaust products and
accessories for the mining, industrial and
construction sector.
The company’s expertise includes
heavy-duty exhaust systems; diesel emission
control solutions; sound suppression and
noise attenuation products; air intake
components; and thermal insulation
blankets.
With a head office in Queensland and
branches in NSW and WA, Aletek offers
clients complete onsite support and field
services nationwide. The company is
available 24 hours per day, seven days
per week for site audits and installations,
Efficient and innovative pump solutions
AN acknowledged leader in the Australian
pump industry for more than 75 years,
Ebsray offers products of unparalleled
quality, efficiency, innovation and reliability.
Since 1938 Ebsray has been manufacturing,
in Australia, positive displacement pumps
for fuels, bitumen, grease, LPG, lube oils,
additives, chemicals, solvents and many other
products.
In 2013 Ebsray was acquired by Dover
Corporation’s Pump Solutions Group (PSG).
This enabled Ebsray to grow further into global
markets as an Australian manufacturer. PSG
brands represent a commitment to customers
by offering them safe, quality, reliable products
with the best possible delivery in the industry.
PSG is also committed to hiring the best fluid
and material handling experts in the industry.
THE AUSTRALIAN MINING REVIEW JULY 2014 31
and noise and emission monitoring and
consulting.
“When you invest in our quality products,
you not only invest in a product engineered
and manufactured to the highest possible
standards, but in a long term commitment
from us to provide all the service and
support you need,” the company said in a
statement.
Aletek is excited to announce it will be
present at the 2014 Queensland Mining
& Engineering Exhibition, to be held in
Mackay from 22 to 24 July. Company
representatives will be available at stand
H104 on the expo map, to provide prospective
clients with detailed information on Aletek’s
premium goods and services.
“We understand that our differentiation
not only comes from our technology,
but by the way we live our core values,
keep our promises and understand
your business,” Ebsray stated.
“Our objective is to make our customer
more successful and competitive, ultimately
enhancing our customers’ value proposition
through PSG’s product portfolio of fluid
transfer solutions.”
Ebsray recently moved its factory into
larger state-of-the art premises in Sydney,
enabling greater manufacturing efficiency.
QME attendees are invited
to visit Ebsray at Stand A382 to see what
has changed with Ebsray, and to discuss any
pumping needs.
32 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

SPECIAL PROFILE QME 2014

Program restructure to elevate industry ‘health check’

(continued from page 28)

the Mackay region was $36.2 million,

including expenditure by organisers,
exhibitors and indirect spending from
attendees.
“This outlay on QME resulted in an
estimated increase to Mackay’s Gross
Regional Product of $17.1 million, and
$31.3 million for Queensland,” Reed
Mining Events stated.
“QME 2012 generated over $220
million in direct sales for exhibitors and
$584.7 million in total sales, within the
state of Queensland.
“The results from the EIS of QME
2012 are exciting, highly encouraging
and vindicate the rationale of holding a
regional mining exhibition of this size
in the heart of Queensland’s mining
sector.”
Mackay Regional Council Mayor
Deirdre Comerford said the report was
encouraging and clearly displayed the
significant boost that QME injected into
the Mackay region.
“We appreciate the huge positive
economic impact QME delivers for our
community, enabling us to showcase
our region as a business and tourist
destination,” Ms Comerford said.
“Council is a proud supporter of
QME’s endeavour to provide a unique
opportunity to conduct business face
to face with key buyers and decision
makers in the mining community – right
here, in the heart of our state’s vital coal
mining region.
“With the drop in the price of coal since
2012, the flow-on effects have presented
new challenges for our community –
QME provides the perfect platform to
showcase our region and Queensland’s
experience and capability in resources
and also raises our international profile.”
Mr Baker said the EIS’ results
confirmed long-held anecdotal evidence
from attendees and exhibitors that QME The QME 2014 event will comprise an exhibition and an educational conference
was pivotal to the continued growth
of the Queensland mining sector. He has been no concrete, external or expert the Mackay region and the state of aspects together.
said the results exemplified the power evidence about the economic benefits of Queensland.” “We are structuring QME differently
of business-to-business opportunities the exhibition to the region or the state,” Previous years’ QME programs this year. In the past couple of events we
created at such a premium mining event. Mr Baker said. included an off-site educational have held a separate conference that has
“QME has been a biennial fixture on “This report confirms long-held conference component in addition to the taken place away from the main event
the Mackay calendar for over 21 years, opinions that QME is more than just exhibition itself, but Mr Baker said that – for the past two events it was at the
since its inception in 1993, however, up a regional based mining exhibition... Reed Mining Events had revised the
until the completion of this report there [it] is an economic shot in the arm for 2014 event’s structure to draw the two (continued on page 36)

Materials handling expert makes exhibition debut

THE 2014 Queensland Mining and
Engineering Exhibition (QME) on 22
July will for the first time include
Adaptalift Hyster among its exhibitors.
“We saw the exhibition as an excellent
opportunity to demonstrate to the mining
industry just how great our materials
handling equipment range is and the
durability the machines can provide
in such demanding environments,”
Adaptalift Hyster state manager
Queensland Michael Cunial said.
Adaptalift Hyster provides a wide
range of application-focussed solutions
and will be showcasing specialised
materials handling equipment such as
the Hyster H16XM-6, fitted with a Tyre
Handler attachment, as well as other
specialised forklifts relevant to the
industries in attendance at QME. The
Hyster range of big trucks is available
from Adaptalift Hyster, with lifting
capacities from 8t up to 48t. The trucks
are extremely proficient with mining
applications due to their durability,
safety and productivity; coupled with
Adaptalift Hyster’s efficient service and
support capabilities, these big trucks can
keep any business running smoothly.
“Queensland is a state with a very
strong mining industry, with lots of
activities and demand for products,
services, equipment and people and QME
is a great way to bring this community
together,” Adaptalift Hyster Queensland
sales manager Shane Whelan said.

Engineering excellence built on more than 60 years of experience

A member of the Swanson Industries
group of companies, Jarvie Engineering
was founded in Newcastle in 1952 by Bruce
Jarvie, originally as a general repetition
engineering workshop.
Today, Jarvie Engineering is an established
leader in hydraulic and pneumatic cylinder
manufacturing and repairs. The company has
an enviable track record in servicing clients
involved with underground and surface coal
mining, ports, industry, contractors and
equipment repairers.
In addition to hydraulic cylinders,
Jarvie provides comprehensive rebuild
and overhaul services for a range
of mining equipment, vehicles and
industrial and agricultural equipment.
It also offers an extensive range of
Fluid Power Systems and products, to
supplement the manufacturing services
it offers. For customer convenience and
fast response to customer emergencies,
service exchange cylinders for many
applications are available.
All stages of repair and manufacture
are controlled in-house from cleaning
and stripping items, machining, welding
and fitting of parts, hard chrome plating
or laser surfacing of wear parts, to final
assembly and testing of the finished
product.
Jarvie employs a highly qualified team
with extensive experience, providing
exacting customer service, technical
support and quality assured products.
Jarvie Engineering’s Lambton office
and workshop gained accreditation to the
internationally recognised AS/NZS ISO
9001 quality standard in 1994, and its
certification is ongoing.
To respond to the changes in industry
needs, Jarvie invests in ongoing
research and development, including
re-engineering of existing products. The
company’s innovations are based on more
than 60 years of industry experience, and
have led to process improvements and
enhancements to product quality.
34 THE AUSTRALIAN MINING REVIEW
SPECIAL PROFILE QME 2014
Hard-wearing heavy duty pump range on show at expo
AMONG the stands at the 2014
Queensland Mining and Engineering
Exhibition (QME), global processing
technology and service provider Metso
Minerals will showcase its Orion series of
wear-resistant hard metal slurry pumps.
QME visitors will still be able to learn more
about the suitability of these products
for use in coal mining applications.
The Orion slurry pumps’ rubber
lining offers excellent protection against
abrasion and corrosion, making the range
ideal for heavy duty minerals-based
Commitment to electrical safety and quality improves safety
PORTABLE power distribution and electrical
safety specialist Spinefex has maintained its
commitment to safety and quality since its
establishment in 1997.
The company’s flagship product, the
Lifeguard Power Distribution System,
JULY 2014
processing applications such as general
in-plant transfer pumps and abrasive
pumping.
The pumps boast the highest quality
wear-resistant elastomers developed
by Metso Minerals and have extra
thick sections at known points of wear.
In addition, a double wear clearance
adjustment feature can further increase
wear life. The pumps are constructed
using wear-resistant materials to ensure
even wear and as long an operating life
as possible; the interchangeability of
combines units with multiple three phase
and single phase outlets to create a user
friendly plug-in system protected by residual
current devices (RCD) and overload circuit
breakers (MCB).
Lifeguard uses earth screened safety
cable, ensuring maximum safety to all on
site.
The system also includes a range of site
lighting and permanent wall mounted, RCD
Complete cabling solutions designed to
withstand the toughest environments
CABLE industry leader Prysmian Group is
one of the world’s largest manufacturers of
quality cables and cable systems.
The company is a specialist in the creation of
integrated, value-adding cabling solutions that
are customised to meet the unique requirements
hard metal and elastomer parts allows
for the best solution for each individual
application, and optional special
materials are also available on request.
Metso Minerals works with every
client to ensure careful application of the
Orion pumps at the best efficiency point
for their operational needs.
Fashioned out of the best available
materials, the Orion range of pumps
boasts modular design features and
a back pull-out feature. The pumps’
solids handling, medium diameter and
protected work stations.
The units are weather proof and
all enclosures are manufactured from
highly resilient polyethylene or GRP
(glass-reinforced plastic) for wall mount
units.
Spinefex understands that the Australian
market needs high quality products that
comply with strict Australian standards.
With that in mind, the company only uses the
of major mining companies, as demonstrated
in its newly released MineMaster electrical
cable range.
Prysmian’s MineMaster range was
specifically designed for underground, open
cut and mine feeder cable types, offering
proven performance for tough Australian
mining environments.
The new range is a product of Prysmian’s
experience, continued investment in new
manufacturing and the company’s dedication
to quality.
MineMaster cables are created using
quality copper cable compounds and Kevlar
braiding through the sheath compound as
required. MineMaster’s cable technology can
Strong industrial storage and
safety assessment services
MEETING compliance standards is a
priority for any workplace, but when staff
and the environment are at risk the stakes
are particularly high.
Storemasta specialises in the storage
of dangerous goods, to ensure the highest
protection of employees and their work area.
Recognising a need for practical
compliance solutions, Storemasta recently
launched a new website allowing clients to
conduct their own safety standard compliance
audits, and to provide practical worksite
safety solutions. Storemasta’s website is
Australian-made with exclusive features
Storemasta’s range of dangerous goods storage units complies with Australian safety standards
www.miningoilgas.com.au
impeller are carefully matched with
high-efficiency hydraulics for even wear.
Other notable features include a double
adjustment for sustained efficiency
and self-contained bearing cartridge
assembly with oversized pump shaft and
grease lubricated taper roller bearings.
Various shaft seal and maintenance slide
base options are also available.
More information about the Orion
pump range will be available directly
from Metso Minerals at stand B123 at
QME 2014.
highest quality components
available on the market – nothing
on their boards is made in China.
The Lifeguard has far reaching
applications and is used extensively in the
construction, plant shutdown, film, mining,
military, generation and boat building
industries. The Lifeguard provides practical,
portable and safe power for any temporary or
permanent installation.
withstand Australia’s harshest environments,
and offers exceptional durability
and strength in meeting the long-life
cabling demands of mining clients.
Prysmian’s quality construction procedures
and materials have surpassed stringent
laboratory testing, guaranteeing that the
MineMaster cable range meets every relevant
Australian state and federal legislative
requirement.
The MineMaster range is supported by
the comprehensive professional support
base of Prysmian’s experienced Australian
cable designers, engineers, research and
development staff, testing facilities, project
managers and project teams.
developed with client safety in mind.
Storemasta’s range of dangerous goods
storage units are designed and manufactured
in Australia to comply with all Australian
safety standards. The range offers products
to service industries across the Australasian
region.
Storemasta also offers onsite safety
compliance reviews assessing various
methods of dangerous goods storage.
Individual business needs are then taken
into account and recommendations are made
for the most cost-effective solutions to ensure
regulatory compliance.
36 THE AUSTRALIAN MINING REVIEW
SPECIAL PROFILE QME 2014
Program restructure to elevate industry ‘health check’
(continued from page 32)
Mackay Entertainment and Convention
Centre and before that it was help up
at Laguna Keys – but from this year,
however, we have decided to centralise
the educational aspect of the event,” he
said.
“Rather than running a full blown
conference in conjunction with QME we
are running a number of free education
streams for attendees. The streams are
QME 2014 will run a number of free education streams for attendees
Innovative grease pumps designed for mining
GLOBAL company Graco specialises in
the design, manufacture and marketing
of premium equipment to handle a
variety of fluids. Graco equipment is ideal
for a range of industries, such as mining,
oil and gas, construction, and automotive.
The company’s Lubrication Division
provides systems for both vehicle service
and industrial lubrication.
In vehicle service, it supplies
pumps, hose reels, meters, valves and
accessories to customers from fast oil
change facilities, fleet service centers,
service truck builders and heavy
equipment service centers.
In industrial lubrication, Greco offers
JULY 2014
focused on technology; for example we
have an area called The Tech Lab which
will offer a program of Tech Talks on
game-changing technology, things that
are really going to make significant
changes to productivity and efficiency
for mining companies.
“We will also offer ‘wider community’
mining content such as our dedicated
Women in Mining Day, which is one of
our most successful theme days.
“That content is designed to be
systems, components and accessories for
the automated lubrication of industrial
and commercial equipment, compressors,
turbines, and on and off-road vehicles.
The company supplies products that
automatically lubricate bearings and
gears, and products that evacuate and
dispense lubricants.
The Graco Process Division
manufactures transfer pumps for
dewatering (open cut and underground),
wastewater, slurry drainage, petroleum
transfer and handling of high-concentrate
chemicals and explosives.
The division also offers the unique
air-powered Hydra-Clean high pressure
inspirational in its delivery – the
Women in Mining Day in particular is
very important, because it highlights the
really significant contributions women
are making to the sector and the work
they will continue to do into the future.
“There will also be a lot of exhibitor
content being presented throughout
QME, and we are working with our
partners such as the State Government
and Mackay Area Industry Network
on content that they will produce and
cleaning systems, ideal for hazardous
locations for safely degreasing equipment
and constructions in hazardous locations,
as well as cleaning coal dust and diesel soot
from underground locomotives and trolleys.
Air-powered systems can be used where
electric or petrol driven units are banned.
In 2013, the company introduced its
innovative Electric Dynastar on board grease
pumps and Powered Hose Reels, specifically
designed for the mining and heavy equipment
industries. These new products and relevant
legacy products will be on display at the
Greco QME 2014 exhibit.
The Electric Dynastar grease pumps
feature a 24VDC motor and run on a vehicle’s
www.miningoilgas.com.au
present during the event – all aimed at
creating a richly educational experience
for attendees.”
Mr Baker said that at its essence,
QME was an event designed to match
the needs and emerging trends of the
mining industry, and said that the
event strove to work with attendees
and participants to accommodate their
changing operating environment.
(continued on page 36)
secondary electric circuit. Hydraulically
driven pumps run on the primary hydraulic
lines of the vehicle, which also supply safety
systems and key controls such as brakes
and hydraulic cylinders.
Therefore, electrically driven
pumps provide better safety and
can be installed aftermarket.
Unlike pneumatic systems, the
Electric Dynastar still provides the high
pressures required, and they can also be
easily controlled to adjust the delivery
rates and match the application.
Interested parties are encouraged
to visit the Greco stand at
Booth L190 at QME 2014.
38 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

SPECIAL PROFILE QME 2014

Improving the management of engineering drawings

REDEye is the first purpose-built
fully cloud-based engineering drafting
management solution for mining
companies and their service providers.
RedEye was carefully designed and
locally developed to help industry
professionals improve engineering
productivity and safety, while reducing
business costs and risks.
Users can quickly find, view
and share drawings internally and
externally via cloud technology, secure
in the knowledge that they are the
correct drawing version to work on,
and can rapidly view the full history
for each drawing while managing and
maintaining metadata.
To date, RedEye hosts more than
100,000 drawings from various companies
in the resources sector, such as BMA and
Arrow Energy, and continues to attract
major clients. The software optimises each
step in the process of working with and
sharing engineering drawings – leading
to measurable cost, time and risk savings.
RedEye is unique because of its
advancement in technology: in May
it launched its first mobile app,
allowing users to mark up, review
and share drawings offline. This
improvement facilitates highly efficient
solutions that require minimum effort RedEye hosts more than 100,000 drawings from various companies in the resources sector, and continues to attract major clients
from the end user, making the app a
great solution for change management. Exhibition. Interested parties can visit way they manage engineering drawings. drawing management: to be diligent and
RedEye will be present at the 2014 the company in the event’s TechLab area Resources companies should not wait reduce risk, RedEye is a cost effective,
Queensland Mining and Engineering for more information on how to change the for a safety incident to improve their fast and easily implemented solution.

Compressor specialist shows innovation at Queensland expo

AIR treatment and vacuum system
specialist Sullair Australia has more than
40 years of experience in the Australian
market, and is the proud manufacturer of the
Champion and ShopTek compressor brands.
Sullair’s stationary electric compressors
and diesel portable compressors are used
in operations across Australia – from
small independent workshops through
to some of the nation’s largest
manufacturing and mining projects.
The company will showcase three of its
most innovative air compressor ranges – the
Sullair utility air compressors, the Shoptek
screw range and the Sullair 185 portable
compressor range – at the 2014 Queensland
Mining and Engineering Exhibition.
Sullair’s compact utility models are
heavy-duty rotary screw compressors,
designed and manufactured specifically
for utility truck applications. Narrow
and compact, these utility models require
less chassis space for cross-bed mounting
onto client trucks or equipment. Models
are fitted with low emission Tier 2 John
Deere 63 kilowatt engines and two-stage
dry type air filters as standard.
The ShopTek screw range is available
in direct or belt drive configurations,
delivering performance, reliability and
energy efficiency at an economical price
point. Ranging in power from 18 kilowatts
to 37kw, the ShopTek line ensures longer
air-end life and lower operating costs,
with intelligent electronic monitoring
and control features.
Sullair’s 185 portable compressors are
designed for accessibility and reliability.
The range features an interim tier
4 emissions-compliant Caterpillar
engine within a clam shell canopy
and corrosion-resistant enclosure, a
two-stage dry type air filter, and an
optional five year air-end warranty.

Program restructure to elevate industry ‘health check’

(continued from page 36)

“QME is very much positioned around

the themes of maximising productivity,
improving efficiency and increased
optimisation of mine sites’ operations,”
he said.
“Our exhibitors’ displays and the
information on offer will be very much
focused on those key areas. The products
and solutions that mining companies
are looking for now are very different to
what they were in 2012 – the exhibitor
scope at this year’s event is a very good
reflection of that.
“The event offers a ‘health check’ of
sorts for the industry – it’s an excellent
gauge of where the industry is, and
where it will be in the next 12 months
or so.”
Visitor registrations for QME
2014 are now open – more details
about the event are available from
www.queenslandminingexpo.com.au

QME is focussed on
maximising productivity,
efficiency and mine
sites’ operations
40 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

SPECIAL PROFILE QME 2014

What’s On
11:00am – See schedule at event
Interactive Zone
All Days, 9:00am onwards, between Pavilions E and F
Thursday 24 July
A dedicated zone at QME that allows for visitor interaction with products and competitions.
10:30am – See schedule at event
TechLab 11:00am – See schedule at event
All Days, 9:00am onwards, TechLab in between Pavilions E and F
TechLab is a zone on the exhibition floor dedicated to new technology in the mining industry. Increase mine site productivity
by visiting the TechLab at QME.
Women in Mining Day
Wednesday 23 July, 11:00am, Community Hub at QME
TechTalks Join in as Reed Mining Events celebrates the important role that women play in the Queensland Mining Industry at the
All days, 10:30am onwards, between Pavilions E and F QME Women in Mining Day Panel Session
Learn first-hand the latest technology available for mine sites, with presentations covering mine site optimisation, The panel session is set to educate, motivate and inspire with speakers from varied roles and backgrounds talk about their
productivity and innovation. Free to attend, seats are limited. experience in the industry, including wins, challenges and inspiration.
The session is free to attend, simply register to attend QME. Seats will be allocated on a first come, first served basis.
Tuesday 22 July Facilitated by Mining Family Matters director Lainie Anderson
10:30am – Improve Your Productivity by Switching to the Cloud Panellists:
The convergence of cloud technology and mobile computing has enabled the development of cost-effective and purpose-built • Puma Energy commercial key account manager QLD/NSW Jodanna Pullen
solutions for operational problems. RedEye was developed by industry professionals for exactly that reason. It is the • Dawson Mine Moura dragline operator Vanessa Southey
first fully cloud-based and purpose-built engineering drawing management solution for mining companies and their • Thiess, Curragh North project mining superintendent and winner of the outstanding operator award at the 2014
service providers, globally. Find out how RedEye reduces complexity, adoption time and costs, while also enabling easier Queensland Resources Council Resource Awards for Women Leah Ross
collaboration and productivity. • She’s Empowered chief executive officer Kym Clark
Speaker: RedEye Apps chief executive officer and co-founder Wayne Geard

11:00am – See schedule at event Bubbles & Boots

Wednesday 23 July, 12:15pm, Community Hub
Wednesday 23 July Enjoy Pink champagne and nibbles after the Women in Mining panel session – the ideal forum to kick-back and network
10:30am – Real-time Data for Real Improvements in Mining Operations with session attendees.
The traditional system of monitoring and control of a mining operation consisted of truck counts, pen & paper, manual Free to attend for all Women in Mining panel session attendees
data entry, delayed reporting, break down repairs of equipment, unknown activities by non-visible equipment, and a
decision-making process often based on old data, intuition and operator perception.
With the advent of automatic, real-time data acquisition, much of the traditional system has changed. A bird’s eye view
Queensland Mining Contractor Awards Gala Dinner
Wednesday 23 July, 6:00pm, Mackay Entertainment & Convention Centre
of the entire operation can be seen on any screen and the vital statistics of every activity within the mine can be observed
The QLD Mining Contractor Awards Presentation Dinner will be held on Wednesday 23rd July 2014 at the Mackay
in real-time. If a circuit is over-trucked while another circuit has a hanging excavator, resources can be redirected
Entertainment and Convention Centre. Pre- Dinner Drinks Sponsored by Concept Services will begin at 6pm.
immediately. Trucks communicate their real-time payload during the loading process to the excavator so that payload
Awards Presentation Dinner tickets are available for $170 per person or $1600 for a table of 10. The entry price includes a
targets are accurate. Machine health data is transmitted in real-time to warn of impending breakdowns. It is now possible
three course meal, beverage package, live entertainment, MC, awards ceremony and more.
to observe temperature increases of a $50 000 tyre and pull the truck out of a circuit before the tyre fails. Radars and GPS
systems work interactively across the fleet to ensure that collisions are minimised, that material is delivered to the correct
To book a table for the Gala Dinner or for more details of any special QME 2014 events visit
destination and that operator behaviour can be monitored and adjusted if required.
www.queenslandminingexpo.com.au
When making optimal decisions, the data must be useful and timely. Mining operations need to clearly understand their
goals and decide what information can assist them without drowning in terabytes of useless data.
Speaker: iVolve CTO David Eagles

Group lockout keeping sites accident free

WORKSITE safety is of paramount
importance. The Group Lock Box
from Cirlock keeps workers safe while
machines are undergoing maintenance
or repair.
The Group Lock Box was designed to
ensure that more than one person was
responsible for the lock out of a piece
of equipment, with the largest having
provision for up to 84 padlocks. All
workers place their lockout padlock on
the box, which contains the isolation
keys to the piece of equipment.
This means that everyone is
responsible for the maintenance of a safe
workplace.
Cirlock recognises that every work
site is different, and will customise
individual solutions on request.
Cirlock has developed Group Lock
Boxes in Australia for more than
30 years. From metal to plastic, the
company’s Group Lock Boxes are the
best in class and quality, and have been
tried and tested across a number of
years.
The latest range of Group Lock Boxes,
which includes an unbreakable model, is
available in the new Cirlock catalogue.
Interested companies can get their
free copy from the Cirlock sales team.

The Group Lock Box was designed

to ensure more than one person
was responsible for the lock out of
equipment

Cost-effective lighting offering big savings

FROM stand OS620 at the
2014 Queensland Mining & Engineering
(QME) Exhibition Mickala Mining will
launch its new LED lighting tower and
conduct on-site demonstrations. The
exhibition will be held at the Mackay
Showgrounds from 22 to 24 July 2014.
The company’s new LED lighting
tower is available in dual or single
axle configuration; it is designed and
manufactured in Australia and is more
cost-effective than Halide lighting
systems due to its optimised lighting
capabilities, giving it the potential to
save up to $64,000 per unit per year.
Mickala is an original equipment
manufacturer of the LED lighting tower
and a range of high-density polyethylene
(HDPE) pipe fittings.
The company markets itself as a
one-stop-shop for all mining needs,
through its core business focuses:
manufacture of lighting towers; supply
and maintenance of lighting towers;
supply and installation of HDPE fittings
and piping; project management;
transportation; supply of maintenance
personnel; labour hire; a fully equipped
repair and maintenance workshop; and
coal seam gas drainage.
Mickala has a head office in Mackay
and a branch in Muswellbrook in
NSW, ensuring it is primed to deliver
innovative solutions to the mining sector
in Queensland and Australia wide.
42 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

SPECIAL PROFILE QME 2014

QME 2014 floorplan

Global chemical company releases advanced brand solutions

CHEMICAL professional BASF is proud
to introduce a global brand of advanced
chemical solutions for Australia’s
construction industry.
The Master Builders Solutions brand
was created using the experience BASF
has gained from more than a century in
the construction industry. The brand
brings together the strengths of many
existing BASF brands and products to
synergistically create comprehensive
chemical solutions for construction,
maintenance, repair and renovation
projects.
The know-how and experience of
BASF’s global construction experts form
the core of the Master Builders Solutions
brand – combining the right elements
from its chemical portfolio to solve each
client’s specific construction challenges.
The company collaborates across
areas of expertise and regions, drawing
on the experience gained from countless
construction projects worldwide. BASF
works to leverage its global technologies,
as well as its in-depth knowledge of local
building needs – to develop innovations
for its clients’ benefit in driving
successful and sustainable construction.
BASF’s Master Builders Solutions
brand represents the sum of the
company’s competencies in chemical
solutions – available from conception
through to completion of each
construction project.

Containerised data centres ideal for harsh environments

RUGGED, portable and energy efficient
containerised data centres from DESA
provide quick, cost effective ‘plug and play’
capacity inside an ISO container – one of
the most versatile and fast-to-deploy data
centres available on the market.
DESA’s sophisticated containerised
data centres can be deployed in virtually
any environment, and configured for a
range of requirements.
The all-in-one units provide a fully
functional, stand alone data centre in a
single container, designed to industry
best practice standards and available in
ISO sizes of 10ft, 20ft and 40ft.
The company’s non-ISO Modular Data
Centre (MDC) is a purpose-engineered,
fully integrated system designed to offer
scalable capacity. Manufactured off site,
MDC can be delivered to a customer’s
premises as all-in-one compact modules
or inclusive of power systems, and
in multiple configurations to achieve
state-of-the-art contiguous data centre
‘white space’ in a matter of weeks.
The non-ISO MDC is available in
standard 25ft and 45ft lengths, with
multiple power and cooling options, and
is suitable for greenfield data centre
deployments and the retrofit of existing
data centre facilities.
Equally versatile but on a much
smaller scale, comprising one or two
racks, Smart Bunker is a sophisticated
micro data centre with all of the features
of a conventional data centre. This Tier
III capable, ‘plug and play’ solution saves
time, money and real estate.
Unlike conventional small data
centres, Smart Bunker is easily installed
and relocated as it fits through most
standard doors. Harsh environments
are not a problem – unmatched thermal
stability provides a perfect environment
for IT equipment, while ensuring energy
efficiency to minimise ongoing cooling
costs. Available in four sizes from 23U
to 46U, indoor or outdoor, Smart Bunker
can be used whenever business continuity
is critical through events such as flood,
fire, vandalism and electro-magnetic
interference. DESA containerised data centres are versatile, robust and cost effective
44 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

SPECIAL PROFILE Fortescue Metals Group

Major expansions drive up capacity

Rachel Dally-Watkins

AUSTRALIA’S third largest iron ore producer,

Fortescue Metals Group, has completed a
series of expansions and upgrades that have
paved the way for the company to reach a
target export capacity of 155 million tonnes
per annum that it achieved in March.
The company stated that the 100 million
tonne increase in capacity was completed in
“record time”, and had allowed it to supply
increased tonnes into a strong iron ore market
and apply free cashflow to debt reduction.
Fortescue was founded in 2003, when
major shareholder Andrew Forrest became
chief executive. The company established two
major operation zones – the Chichester and
Solomon hubs – and constructed the private
Herb Elliott Port near Port Hedland and
a 260km private railway, enabling strong
advances in seaborne trade throughout the
Asia Pacific region.
A critical part of the company’s port
infrastructure, a Metso TU601 twin cell
tandem train unloader, was put into operation
in April 2008 when Fortescue unloaded its
first trainload of ore at Herb Elliott Port. Since
then, the company has fast-tracked its growth
by steadily increasing production from its
Cloudbreak and Christmas Creek mines and,
more recently, its Firetail and Kings Valley
mines. Fortescue reached a target export capacity of 155 million tonnes per annum in March
In the 2013 financial year, Fortescue
shipped 80.9mt of ore, netting revenue of by Fortescue in 2003. After an exploratory Fortescue’s second Chichester mine, about $300 million.
US$8.1 billion and net profit after tax of period, the company began developing the site Christmas Creek, is 50km west of Cloudbreak. “Fortescue sees this acquisition as an
US$1.7 billion. In the March quarter of this in 2006 as its flagship project. Mining began Ore is processed at Christmas Creek’s on-site extremely positive benefit for the continued
year, Fortescue mined a total of 29.6 million in October 2007 and ore production began facilities, before being transported by private growth of the company. We are now getting
wet metric tonnes of ore, processed 31.2mt of in May the following year. In its first year of train line to the port on WA’s northwest coast. substantial volume and revenue increases
ore, and shipped 30.8mt of ore – results that operation, Cloudbreak produced 28mt of iron Following two expansions, completed from our expanded operations, which are
the company stated were the sixth consecutive ore; today, it operates at a rate of 40mtpa. in April 2011 and September 2012, the generating significant free cash flow and
shipping record; 13 per cent higher than the At Cloudbreak, overburden is removed using mine’s processing facilities have a combined underpinning our accelerated debt reduction
previous quarter and 56 per cent higher than conventional blast, truck and shovel methods. throughput capacity of more than 50mtpa. program,” Fortescue chief executive Nev
the March quarter of 2013. However, due to the horizontal nature of the In the December quarter of 2013, Fortescue Power said.
deposits, Fortescue has employed a more ramped up its second ore processing facility at
Chichester Hub innovative approach to mining than the the site. Solomon Hub
Lying within the elevated escarpment of the methodologies traditionally used to extract In January, Fortescue announced it had Fortescue’s second major development, the
Chichester Range, the Chichester Hub was vertical deposits of ore. Specially designed assumed full ownership and operational Solomon Hub, comprises the Firetail and
Fortescue’s first major development. The area surface miners cut and load ore into trucks for responsibility for two ore processing facilities Kings Valley mines. Earthworks at the hub
includes the Cloudbreak and Christmas Creek transport to the mine’s stockpiles. Screening, at Christmas Creek. Fortescue exercised began in 2011 and the mines have been
tenements, which contain a mineral resource crushing and de-sand plants at the on-site its step-in rights in September 2013 before developed for a combined 60mtpa operation,
of 3222mt of iron ore at an average grade of processing facilities refine the product prior to purchasing the facilities from previous with Firetail to produce 20mtpa and Kings
56.6 per cent iron, as recorded by the company its transport. operator Crushing Services International Valley 40mtpa.
in June 2013. Fortescue also holds a stake in Cloudbreak’s train facilities feed about (CSI; a subsidiary of Mineral Resources). “The industry timeframe for delivering
a joint venture project with BC Iron in the 16,000t of ore per hour onto 2.7km-long trains. Fortescue stated that the acquisition was 40mtpa from a traditional mining
Chichester area, which added 5mt to the hub’s These trains then run via the company’s part of its ongoing debt-reduction program. development is 12 years but Solomon will
2013 production results. private heavy haulage rail line to the Although it did not report the value of the
The Cloudbreak tenements were acquired unloading facilities at Herb Elliott Port. deal, media speculation put the price tag at (continued on page 46)

Increasing uptime for the iron industry

BUILT on senior industry knowledge
and experience, Australian-owned Buel
has become a pre-eminent specialist in
multi-disciplined inspection, testing and
maintenance services.
Buel utilises this experience to significantly
lower costs and downtime for its clients,
resulting in increased reliability and an
improvement in infrastructure efficiency.
Asset optimisation and a continued
emphasis on safety are expectations of
the resources sector’s modern operating
environment; methods to improve
performance, quality and employee
wellbeing are essential considerations.
The company’s portfolio of long-term
client relationships reflects its proven
track record of success across a range of
markets including mining, processing, rail
and infrastructure, oil and gas and energy.
Buel operates a range of major projects
throughout Australia and is well placed to
service regional hotspots, with offices and
NATA-accredited non-destructive testing
(NDT) facilities in Gladstone, Karratha and
Sydney.
Buel employs an expert team of accredited
technicians and dedicated tradespeople,
typically with multiple trade and technical
disciplines, who approach every project with
skill and professionalism.
Buel is a proud supplier to Fortescue
Metals Group, and has successfully
completed regular shutdowns for a number
of years at Fortescue’s Cloudbreak and
Christmas Creek mines, and at Anderson
Point at Port Hedland.
In response to the demands of operators,
Buel continues to apply innovation to reduce
operational impact and costs and deliver
consistent asset optimisation.
For every operational challenge –
from critical inspections of hard-to-reach
areas using rope access, and the supply of
advanced NDT methods, to ground-based
welding, industrial coatings and specialised
maintenance services – Buel delivers
cost-effective and efficient solutions.

State-of-the-art technology gives companies leading edge

USING the latest automated machinery
and tracking systems technology, the group
of companies comprised of Fremantle
Steel Fabrication, Park Engineers and
Interstate Crane & Transport Hire
provides innovative project solutions in
the fabrication, transport and installation
of structural and mechanical steelwork.
With more than 100 years of combined
fabrication experience, the companies have
earned reputations as leading Australian
suppliers of high quality steelwork for
oil and gas, power generation, mining,
commercial and industrial projects
throughout Australia, as well as exporting
to various countries.
The companies’ modern workshops in
Jandakot and Welshpool in WA utilise
state-of-the-art CNC equipment, including
sophisticated laser cutting machinery.
The combined covered workshop space
of 36,000 square metres can produce
more than 40,000t of fabricated steel and
platework annually, including modules,
support structures, platforms, walkways,
pipe racks, conveyor trusses, trestles,
chutes, hoppers, stackers, reclaimers,
shiploaders and bridge beams.
The group’s cutting edge equipment
technology also sets it apart from
its competitors and includes a beam
manufacturing plant – where specialised
welded beams are manufactured with
sizes ranging up to 4m web depth –
and state-of-the-art pipe processing
equipment.
46 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

SPECIAL PROFILE Fortescue Metals Group

Major expansions drive up capacity

(continued from page 44)

reach that capacity in just over three years,

ahead of even the company’s four-year target,”
Fortescue stated.
“The US$3.5 billion Solomon site has two
[ore [processing facilities], three crushing
hubs, a 125MW power station, its own airstrip
and three camps to house 3000 people.”
Fortescue’s first mine at Solomon Hub was
Firetail, 60km north of Tom Price. Production
began in December 2012, and the site was
formally opened five months later. The mine
was the company’s third operation to open
in five years, and marked the end of the first
stage of Fortescue’s Solomon development
plan.
Although Fortescue indefinitely deferred
the development of Kings Valley mine in
September 2012 – in response to the volatile
market conditions of the time – it renounced
the decision just a few months later,
confirming it would go ahead with Kings
Valley. In December 2013 the mine achieved
first production.
In May, Fortescue increased the Greater
Solomon (an area covering all development
properties within a radius of 50km around the
Solomon operating hub) resource by 1.16bt
following a drilling program. The new resource
estimate for the Greater Solomon stands at Fortescue’s two major operations are the Chichester and Solomon hubs
more than 4.5bt.
Fortescue stated that it intended to
undertake further drilling to convert some of expansion at Herb Elliott Port; two new of our port, rail and mining operations Solomon is the way we have integrated
the resources to indicated status and would aerodromes; new rail rolling stock and in November 2010 and set ourselves employment and sustainable business
evaluate the option of transporting ore to its locomotives; extensive new fuel receiving the ambitious target of completing the opportunities for Aboriginal people to
existing ore processing facilities within the and delivery facilities; an automated rail projects by June 2014. Today we are break the cycle of disadvantage.
hub. ore car refurbishment facility; a new power celebrating an extraordinary achievement “Fortescue and its contracting
station at Solomon and expansion of power that is testament to the hard work and partners have awarded 22 contracts
T155 Expansion Project generation capacity at the Chichester Hub; commitment of everyone at Fortescue, and and sub-contracts at Solomon to
In November 2010 Fortescue approved operations villages at Christmas Creek and the thousands of people who worked on Aboriginal-owned businesses worth a
an ambitious expansion plan to triple Solomon; and a significant expansion of the these projects.” combined value of $583 million.
production to 155mtpa. The US$9 billion mobile mining fleet. Mr Power said the Solomon Hub was a “A total of 175 Aboriginal people
project not only included an expansion The official opening of the 40mtpa Kings valuable new source of low cost production work at the Solomon Hub for Fortescue
of mining operations at the company’s Valley project at the Solomon Hub, 60km for Fortescue, with its low strip ratios and its contracting partners, including
Chichester Hub and a greenfield north of Tom Price, on 28 March marked playing an important role in reducing the 44 graduates of Fortescue’s Vocational
development at its Solomon mine, but also the completion of the expansion project, company’s overall operating costs. Training and Education Centre in
an expansion of the company’s port, train with all components of the port, rail, and “The Firetail and Kings Valley projects Roebourne.”
unloading capacity and main rail network the Chichester Hub and Solomon Hub fully have evolved Fortescue’s product mix,” he Looking forward, Fortescue stated that
and a new line to the Solomon site. operational and all significant construction said. it planned to ship 41.6mt of ore in the June
The project delivered three ore processing and major contracts complete. “Channel Iron Deposit (CID) ore 2014 quarter, to achieve shipment of 127mt
facilities with wet processing capability; “[This] marks one of the most important produced from Kings Valley will become by the end of the 2014 financial year.
four new crushing hubs; more than 250km milestones in Fortescue’s history,” Fortescue a new stand-alone product while ore from “The mining, rail and port operations
of new rail track; 300km of new roads; 50km chairman and founder Andrew Forrest said Firetail is blended with Chichester ores to have demonstrated the required sprint
of conveyor systems; two new births, two at the official opening of Kings Valley. create the well-received Fortescue Blend. capacity during the March 2014 quarter to
train unloaders and associated stockyard “We announced a major expansion “An integral feature of the success at achieve this target,” the company stated.

Strategic locations to service remote Australia

ESTABLISHED in 1999, Goodline is
an Australian owned and operated
company that services clients in the civil,
mining and construction industries.
The company has operations in
Weipa in Queensland, Port Hedland
in WA and in Darwin, strategically
located to service both remote and
populated northern Australia.
The company maintains an who work hard to complete every job knowledge and experience that is
arsenal of heavy equipment to to the highest standard, consistently evident in his business today.
provide services such as steel meeting the service and construction The success of Goodline was built
fabrication and erection, shutdown, needs of corporate and private customers. on the proven results of a diverse
maintenance, demolition, scaffolding, Goodline founder John Kennedy has range of services and products; as a
plumbing, electrical, carpentry, more than 32 years of experience and result the company has developed
civil plumbing and mechanical works. has worked on and supervised a diverse widespread endorsement and
The team at Goodline consists of range of construction and maintenance approval from key industry leaders
experienced and dedicated individuals projects — accumulating the extensive throughout Australia.

The Nino effect: Construction projects on time and on budget

CIVIL contractor Nino Constructions has
earned an enviable reputation in the WA
mining industry for delivering projects on
time and on budget.
The business has been in operation
for 30 years with an unblemished safety
record, executing more than 100 projects
valued between $500,000 and $50 million.
The completion of three train unloaders at
Port Hedland for Fortescue Metals Group
has been a crucial component of the iron
ore miner’s long term production vision.
Commenced in January 2007, Nino’s
scope of works for the $24.9 million T45
iron ore car dumper entailed construction
of the Car Dumper, including vault level,
apron feeder level, trunion level, rail drive
level, in-go and out-go foundations, and
double conveyor tunnels.
Construction on the $56 million T155 –
Iron Ore Car Dumper for Fortescue (EPCM
– Worley Parsons) in Port Hedland, began
in May 2011. Again, Nino’s scope of works
comprised the construction of the vault
level, apron feeder level, trunion level, rail
drive level, in-go and out-go foundations,
and double conveyor tunnels. The contract
objective for both the T45 and T155 was to
construct within budget and ahead of the
approved baseline program of works.
As with all its projects, Nino
Construction’s senior management had
direct involvement on the ground with the
execution of the contract works.
Significant challenges associated with
the projects were short mobilisation
deadlines to site (three weeks), the
craneage and logistics, and operational
synergy with other contractors due to the
tight construction program. In addition, the
construction periods took place throughout
the wet season, which affected the progress
of works on four separate occasions.
Despite these challenges, Nino completed
the contracted works in February 2008 and
June 2012 respectively – ahead of schedule
and within Fortescue’s allocated budget.
Nino Constructions proudly maintains
its long remarkable history of quality,
safety and environmental performance,
combined with excellence in contract
delivery outcomes.
48 THE AUSTRALIAN MINING REVIEW
SPECIAL PROFILE Sampling 2014
Expo showcasing Australian sampling
jane goldsmith
AUSTRALIA is a one of the largest capitalist
economies in the world. It received US$1.5
trillion in gross domestic product in 2013,
with the total mining sector contributing
about 19 per cent of this income.
Although economic growth in Australia
is largely dependent on mining, mineral
exploration and investment has slowed in
recent years – and as current resources
deposits deplete, concern has risen for the
stability of Australia’s future economy.
According to the Australian Bureau of
Statistics, mineral exploration peaked in
December 2011 with a seasonally adjusted
estimate of $1 billion received from 300,000
drilled metres. In December 2013, the
comparative mineral exploration expenditure
estimate had fallen to $533 million, with
WA attributed as the largest contributor
to the fall; in the December quarter
alone, the state’s intrinsic exploration fell
19.3 per cent, or by $73.4 million.
Despite falling exploration investment,
Australia is thought to still maintain massive
mineral wealth across its boundaries. Most of
the country’s biggest mines have historically
been found from rock outcrops on the surface
of the Earth; however, experts believe
Australia’s remaining mineral wealth is
more likely to be masked by coverings of
rock, sediment and soil.
As prospecting and exploration in
Australia changes – including the types
and amounts of resources, the nature of
deposits and technological advances – the
mining industry is facing new challenges
to successfully find new and economically
viable mineral deposits.
Sampling 2014 is a two-day technical
program and trade exhibition, working to
define and answer to the current challenges
in exploration as well as resource and process
optimisation. Organised by the Australasian
Institute of Mining and Metallurgy
(AusIMM) and Australia’s national science
agency the CSIRO, the expo will showcase
to industry professionals the latest
developments in sampling from exploration
through to shipping mineral commodities,
while promoting the importance of this work
to the industry and economy.
The 2014 event is the fourth in a series of
conferences held every two years since 2008,
and will run from 29 to 30 July at Perth’s Pan
Pacific Hotel.
Sampling 2014
The theme of Sampling 2014 is “Where it all
Sampling 2014’s aim is to ensure Australia’s sampling procedures accurately reflect land contents
JULY 2014
The Sampling 2014 theme is ‘Where it all begins’, to promote exploration as a basis of a healthy
mining economy
begins”, to promote accurate sampling as the
fundamental component of a healthy mining
economy. The expo aims to showcase rising
theories and technologies through all aspects
of the mining chain – from exploration,
resource estimation and mine development,
through to process control, quality control
and resources export.
“There are some serious concerns
regarding the amount of resources
that are put into exploration in this
country – it is seen as a big issue,”
conference chair and CSIRO carbon-steel
materials leader Ralph Holmes said.
Including six keynote presentations,
a trade exhibition and two conference
workshops, Sampling 2014 will bring
together geologists, engineers, metallurgists,
grade controllers, samplers, chemists,
consultants and managers for two days of
networking and professional development.
Beyond stimulating investment interest
in the mineral industry, the overriding
focus of Sampling 2014 is to ensure that
samples accurately reflect mineral deposits,
process streams and final products.
“The very first step in determining what
mineral grade you have in the ground, in the
processing plant or on the ship is taking a
sample, which is then sent to the laboratory
for analysis,” Dr Holmes said.
“What’s important is that samples are
representative from the very beginning.
Unless the samples are representative of
the ore from which they were extracted, the
whole analysis process is flawed at the outset
and the overall accuracy and precision of the
analyses are inadequate.”
Sampling 2014 will educate on the
technologies and resources available to
improve Australian mineral exploration
practices – such as providing practical and
operational advice to enhance sampling
processes and their reliability; strategies to
enhance the accuracy of sampling processes;
understanding on the true value of sampling
to overall operations, including the impacts
on development, control and optimisation;
and networking opportunities with industry
providers.
“Sampling in the mineral industry is
something that’s often neglected; however,
this event is an opportunity for people to
improve their understanding of sampling
and its importance,” Dr Holmes said.
“It’s surprising how little attention is given
to extracting samples for things like resource
development, process control, planning and
commercial transactions. Companies need
to ensure samples are representative, so
meaningful decisions can be made.”
Keynote speakers and networking
With six keynote speakers from across the
international spectrum and an open-ended
conference forum, Sampling 2014 is an
arena for sampling professionals to further
their expertise, and to maximise exploration
accuracy, optimise subsequent mining and
processing operations, and ultimately receive
equitable payment for final mineral products.
“The event is advertised widely around the
world, we will have people at this conference
from South Africa, Brazil, India and China,
as well as keynote speakers from various
places internationally – including the UK,
the US, Canada, and Denmark,” Dr Holmes
said.
“What people can expect to gain is a
better understanding of good and accurate
sampling processes, with globally respected
professionals all in the one place for visitors
to interact with.”
International delegates include North
www.miningoilgas.com.au
American sampling market and trend
specialist Steve Campbell; managing
director for UK-based drilling equipment
manufacturer Progradex Toby Day;
Geological Survey of Denmark and Greenland
sampling and chemometrics specialist Kim
Esbensen; sampling consultant Dominique
François-Bongarçon; Mineral Sampling
Solutions director Geoff Lyman; and sampling,
process control and metallurgical accounting
consultant Francis Pitard.
The event will also provide
an opportunity for wider
networking with industry professionals.
“Networking gets people with common
interests together. They can talk about their
respective situations and problems onsite,
and hopefully those whom they’re networking
with will be able to provide solutions to the
situations they are facing,” Dr Holmes said.
“Often attendees can’t approach other
company representatives so easily, but within
this conference, it’s facilitated and encouraged.
Networking is always important in this field.”
Workshops
In conjunction with about 26 specialist booths
within the exhibition arena, Sampling 2014
will also provide two practical workshops
covering geological sampling theory and
techniques for the minerals industry, and a
case study-based unit demonstrating how
effective sampling programs can be designed
and run.
The first workshop, Sampling Basics,
will be run by Xstract Mining Consultants’
principal geology consultant Mark Noppe, and
will explore how good sampling techniques
can be used to control risk and ensure the
sampling error is minimised.
The second, “A practical guide to designing
and running effective sampling programs”
will be presented by Snowden’s applied
geosciences principal consultant John
Graindorge, and aims to educate on critical
assessment skills needed for sampling
precision accuracy and bias, sampling
errors, sample collection, sub-sampling, and
cross-stream sampling.
“We will also have a forum which will be
a session for an hour or so with a panel,” Dr
Holmes said.
“This will be open-ended: people will
be invited to raise any concerns they have
about procedures they have for a particular
commodity, and there will be a panel
of experts to provide answers to these
problems.”
Into the future
The AusIMM and CSIRO Sampling
conference series is expected to continue to run
on a biennial basis into the future; alternating
years with the international Sampling
and Blending World Conference series.
Dr Holmes said the accurate sampling
practices promoted at Sampling 2014 stand
to improve the Australian economy and
mineral investment.
“Because Australia is a major producer
and exporter of mineral commodities,
accurate sampling is critical from exploration
to determine the size and value of resources
in the ground right through to sampling
commodity exports,” he said.
“Accurate sampling provides industry
with the confidence it needs to set target
grades closer to contractual specifications –
thereby increasing the amount of low grade
blending ore that can be added to final product
blends, and significantly increasing
the life of Australia’s mineral resources.
“Mining companies and investors stand
to lose millions in terms of poor investment
decisions if the samples collected are not
representative. Sampling 2014 aims to tackle
this issue directly.”
www.miningoilgas.com.au
SPECIAL PROFILE Life-of-Mine 2014
Integrative conference targets sustainable legacies
reuben adams
BY using an improved ‘big picture’ approach to
life of mine (LOM) planning – from exploration
through to the post-operational closure –
mining companies can ensure sustainable
environmental and social legacies. If these
are supported by regulators, communities
and other stakeholders, companies would
reduce costs, and fundamentally enhance the
industry’s reputation and its capacity to access
land and capital for future development.
The University of Queensland Centre for
Mined Land Rehabilitation director Professor
David Mulligan stated that miners often lose
sight of the bigger picture as environmental,
technical and stakeholder challenges
dominate day-to-day agendas. In recent years
some advances to LOM planning have been
made, but significant gaps remain between
corporate rhetoric and at the operational level.
Global study Conflict Translates
Environmental and Social Risks into Business
Costs recently concluded that conflict between
local communities and the resources sector
was a major contributor to project costs. It
also found that poor LOM planning had left
a large and growing inventory of abandoned
and closed mines, which invariably become
the responsibilities of states and territories –
the taxpayers – to manage.
“The cost from past legacies of poor
integration of disciplines and knowledge is a
very big number,” Professor Mulligan said.
“The cost of not adopting integrated
practices going forward would be a much
larger number that future generations will
bear.
“It is unacceptable practice; especially as
we know what we need to do to change it.”
All aspects of a project’s life cycle must
be linked to the environmental and social
dimensions, so companies can identify and
predict environmental and social impacts and
consequences.
“The lack of effective connectivity and
integration between the structural and
functional units of an operation’s mine life
cycle still limits opportunities that could
increase production efficiency and reduce
long-term costs and liabilities,” he said.
Life of Mine 2014
Professor Mulligan will chair the upcoming
Life-of-Mine 2014 Conference – running from
16 to 18 July in Brisbane – which will focus on
integrative practices for planning, designing
and operating mines to deliver long-term
beneficial environmental and social legacies.
In 2012, more than 220 delegates from 21
countries attended the conference, including
representatives from industry, government,
consultancies and academic and research
institutions. Building on the success of
the inaugural 2012 conference, the second
event will feature a three-day technical
program; keynote presentations by renowned
Life-of-Mine 2014 will present topics relevant to the entire industry, from mine planners through to environmental scientists
Life of mine planning is valuable to ensure sustainable environmental and social legacies
Australian and international speakers; a
single stream program with peer-reviewed
content; two networking functions; and a
trade exhibition including leading industry
professionals.
In early June the exhibitor list was still
expanding. To date, the contributors include
global companies operating and specialising
in areas such as mine planning software,
testing and certification, wastewater
treatment, sustainable engineering projects
and climate change planning. Attendees can
expect updates on the latest technologies and
developments linked to the themes and goals
of the conference.
Experts with decades of experience will
take part in a facilitated panel discussion and
reflect on where the sector has been, where it
needs to progress to, and how it will meet the
ever-increasing challenges, expectations and
requirements of communities, environments,
and economies across the globe.
Professor Mulligan said the conference
would be built around four primary themes:
Strategies and Planning; Innovation; Society
and Communities, and Global Trends.
“For each of these there was a very strong
response from across the sector, and its wide
array of stakeholders offering to contribute
experiences,” he said.
“The single stream, ‘all together
all-the-time’ structure of this full three-day
event – which worked very effectively in 2012
– has been continued for this conference.
“This maximises the opportunities
for cross-disciplinary learning, and all
participants will reap the benefits and value
the outcomes from such a program format.”
Keynote presentations
At Life-of-Mine 2014, six internationally
regarded keynote speakers will present topics
relevant to everyone in the industry – from
management, mine planners and process
engineers through to environmental and
THE AUSTRALIAN MINING REVIEW JULY 2014
social scientists.
International Council on Mining and
Metals president Tony Hodge will bring
more than 40 years’ experience with the
resources sector. He is also Chair of the World
Economic Forum’s Global Agenda Council on
Responsible Mineral Resource Management,
and boasts extensive knowledge and
experience in the practical application of
sustainability ideas.
Sustainable Minerals Institute adjunct
professor Bruce Harvey has had decades
of engagement with the resources sector,
starting as a field geologist and progressing
to – until recently – a role as Rio Tinto’s
Communities and Social Performance global
practice leader. Professor Harvey will present
on Extractive Companies, Development and
Environmental Agendas – Tensions and
Contradictions in Intent and Practice.
With a doctorate in uranium geochemistry
and 27 years experience in the resources sector,
Energy Resources of Australia Technical and
Major Studies general manager Dr Greg
Sinclair will present on The Importance of
Project Shaping in Fit for Purpose Closure
Planning.
South African-based Deirdré Lingenfelder,
head of Safety and Sustainable Development
with The De Beers Group, will discuss The
Value of Sustainability.
“Ms Lingenfelder was nominated as one of
the Top 100 Global Inspirational Woman in
Mining in 2013, and her agreement to present
at this conference was very much welcomed
by the committee,” Professor Mulligan said.
The final two keynote speakers have
globally recognised research backgrounds
relevant to the greener side of the sector.
“To quote from his conference biography,
Kings Park and Botanic Garden director of
science Kingsley Dixon’s “life-long interest
and passion for native plants has driven
him to develop a strong multi-disciplinary
approach to conservation and restoration
49
of native plants and degraded landscapes.”
Professor Mulligan said.
Professor Dixon’s presentation on
Thresholds in Biodiverse Restoration will
address technical and engineering constraints
as well as potential solutions.
Dr Rufus Chaney is a senior research
agronomist in the Environmental
Management and By-Product Utilization
Laboratory of the USDA Agricultural
Research Service at Beltsville, Maryland.
“Rufus has a highly distinguished and
published career in research on the fate,
food-chain transfer, and potential effects of
soil microelements, and linked to this is one of
the areas for which he is very well recognized
– the development of hyperaccumulator crops
to phytoextract (or phytomine) and recycle
metals in contaminated soils,” Professor
Mulligan said.
“This will be a topic covered in Rufus’
presentation on Phytostabilization and
Phytomining: Principles and Successes.”
Interdisciplinary approaches to
multidisciplinary challenges
The mining industry faces increasing
challenges across varied fronts.
An example is lower ore grades – while
advances in extraction and processing
have meant lower grades can still be mined
economically, growing waste volumes are
a consequence. Professor Mulligan said
this added to the risks associated with
environmental and social legacies, and the
associated difficulties that the industry faced
obtaining social and community acceptance of
its activities.
“Add to this the constraints imposed by
the availability and affordability of water and
energy needed for operations, and it is clear
that the challenges are great,” he said.
“Attendance at this conference will offer
companies associated with the sector the
opportunity to listen and learn about what
practices other companies are adopting, where
the industry have identified or reaped benefits
from investing in and adopting better ways
for LOM planning, and where the research
community is currently engaged in areas that
are directed towards improvements in LOM
planning and better outcomes economically,
environmentally and socially.”
Professor Mulligan said the conference
format provided a significant opportunity for
cross-disciplinary engagement, awareness
raising, discussion and debate.
“Having the spectrum of disciplines in
the one conversation is a key way to get
some cross-thinking happening and some
recognition from the perhaps historically
disparate sides of the industry, that improved
outcomes are a collective responsibility and a
collective possibility,” he said.
“I look forward to meeting new people and
hearing of new topics and innovations that
are not core to my background knowledge and
discipline but from which there may well be
the initiation of a new idea or a new linkage
that could lead to the foundation of new R&D
opportunities.”
The challenge of extracting and processing
ore with minimal risks and maximum
opportunities will continue, but through
encouragement, by reinforcement and
conferences such as these, solutions can be
found, implemented and validated.
“The opportunities for adopting
known technologies differently or into a
different application or purpose, as well
as the emergence of new technologies and
approaches that may improve the way we do
things, are constantly happening,” Professor
Mulligan said.
“The AusIMM LOM conference series
is seen as an important vehicle for this
transfer and exchange of knowledge, and the
illustration of examples of where there has
been application of theory into practice.”
50 THE AUSTRALIAN MINING REVIEW
SPECIAL PROFILE Centennial Coal’s 25th Anniversary
Anniversary marks coal giant’s ascent
Louise Baxter
WHEN Centennial Coal started in 1989 as
a humble operation focussed on NSW coal,
nobody could have predicted it would one
day power the majority of the state’s energy
industry.
Following a $20 million listing on the
ASX in 1994, Centennial rapidly ascended to
become a top S&P/ASX 100 company. In 2010,
the company was snapped up by pan-Asian
powerhouse Banpu Public Company, and
now operates as a wholly-owned subsidiary.
After the takeover Centennial’s market cap
grew to about $2.5 billion; today it has more
than 1800 employees and seven operating
coal mines in NSW, making it one of the
largest underground coal producers in the
state. About 40 per cent of Centennial’s coal
is exported, through ports in Newcastle and
Port Kembla, to power stations and steel
mills in Taiwan, Japan, Korea and Europe.
Significant achievements for a company that
has spent just 25 years in business.
Mines and extension projects
Centennial continues to flex its muscles
in the NSW energy industry, undertaking
extension projects at five of its seven
operating coal mines – Airly, Angus Place,
Mandalong, Newstan and Springvale –
and continuing operations at its other two
operating mines, Clarence and Myuna.
Airly and Charbon
The Airly underground coal mine was
acquired in 1997, but production did not
begin until December 2009. After being
placed on care and maintenance in December
2012, in response to the tough economic
climate, Airly was reopened in February this
year, with production resuming in March.
Workers from Centennial’s nearby Charbon
Colliery were transferred to Airly after
Charbon’s underground operations ceased
the same month. Charbon’s open cut mining
will continue until 2015 when coal reserves
are depleted.
In a statement released in February,
Centennial general manager Western
Operations Mick Cairney said relocating
the staff was “an opportunity to use most
of our experienced Charbon workforce and
therefore minimise overall retrenchments at
the end of the month”.
“We have every confidence those being
redeployed will breathe a new lease of life
into our Airly mine,” Mr Cairney said.
Airly is in the Western Coalfields
near Capertee and produces thermal coal
for export via Port Kembla. It has a full
production capacity of 1.8 million tonnes per
annum and coal reserves of 33.7mt.
Specialist piping solutions designed to meet every mining need
FAMILY-owned and operated AC Whalan
& Co has provided piping solutions to
Australia’s mining, industrial and civil
industries since 1939. The company
specialises in the design, supply and
installation of piping systems for
underground mining, tunnelling air and
water reticulation; methane drainage and
coal seam gas; slurry and tailings lines; coal
Comprehensive inspection and testing solutions for safe and efficient operations
AUSTRALIA’S oldest and largest specialist
provider of lifting, rigging, safety and related
services to the industrial sector is also the
country’s most progressive. Since 1891
Bullivants has provided comprehensive
solutions to help customers operate safely and
efficiently.
Bullivants has provided National
JULY 2014
Centennial Coal has expanded dramatically in just 25 years of business
Angus Place and Springvale
Both Angus Place and Springvale are in
the Western Coalfields near Lithgow, and
Centennial has proposed the expansion of
both underground coal operations.
Angus Place currently produces 4mtpa
of domestic thermal coal and has reserves
totalling 85.4mt. The mine has development
approval until 2024, however the site’s
current mine plan ceases operations in
2016. Centennial is seeking approval for the
continuation of longwall mining to the east
of Angus Place’s current mine workings, and
within the existing mining lease boundary for
up to 25 years.
Springvale currently produces full capacity
of 4.5mtpa of thermal coal for export and
domestic markets, with remaining coal
reserves of 49.5mt. Springvale’s current
development consent expires this year, and
Centennial is seeking a renewal for 13 years.
On 28 May, ABC News reported that more
than 400 submissions had been lodged against
the company’s proposed expansions in the
Lithgow district, from conservation groups
including the Nature Conservation Council,
Blue Mountains Conservation Society and
Lithgow Environment Group, who expressed
concern about potential impacts on the
environment and drinking water.
Lithgow Mayor Maree Statham said
environmental issues needed to be addressed,
but the council would also consider the impact
on local jobs.
“At the end of the day there are 500 odd jobs
that we need to keep in our area and these are
extensions, they are not new mines,” she said.
“Centennial Coal has a very high reputation
and regarded very highly and Springvale and
Angus Place have excellent work ethics.”
Mandalong
Purchased in 2002 as part of the Powercoal
acquisition and with first operation in 2005,
handling and preparations plants; water
transfer; ventilation; and ducting.
AC Whalan & Co is a market leader
in specialist piping systems including
shouldered pipe, valves, couplings and
Australian made hot-dip galvanisation
manifolds and fittings, polyethylene, and
steel pipes, valves, fittings and hoses. The
company is the exclusive distributor of
Association of Testing Authorities (NATA)
accredited lifting and safety equipment
testing services for more than 30 years across
Australia and offshore. NATA is the national
authority for accreditation of laboratories for
inspection bodies and testing providers and
only NATA can accredit an organisation to
ISO 17020 and ISO 17025.
Mandalong is an underground longwall
mining operation that produces 5.44mtpa of
thermal coal for export and domestic sale, with
remaining reserves of 88mt.
The Mandalong Southern Extension
Project is an exploration area southwest of
Morisset in NSW that adjoins Centennial’s
current mine workings at Mandalong.
Centennial said the extension would allow
mining to continue on site until 2035 and
represented no change to the existing surface
infrastructure and no increase to production,
but would secure long term employment for
more than 300 current employees.
Newstan
Newstan, in the Newcastle Goldfields near
Toronto in NSW, has been mined for more
than 125 years, but was placed on care and
maintenance in 2008 following geological
difficulties. A two-year exploration drilling
program was then conducted and successfully
proved up a valuable coal resource to the east of
Newstan’s existing mine; Centennial resumed
operations in an area deemed suitable for a
future extension.
According to Centennial, the proposed
Newstan Extension Project leverages
existing infrastructure and human
resources, and complements the company’s
portfolio of northern NSW mines and
Newstan’s proximity to existing customers
and port facilities.
With parts of the proposed project outside
existing areas with planning approvals in
place, Centennial must seek approval from
the NSW Department of Planning and
Infrastructure before developing the project
further.
Newstan produces thermal and semi-soft
coking coal for domestic and export markets
and has a full production capacity of 4mtpa.
The Northern Coal Services Coal Logistics
Project is the second project proposed for
Maxiflow ventilation ducting and FRP
Shouldered FRAS Lite Pipe.
AC Whalan & Co has branches
strategically based around Australia in
Singleton in the Hunter Valley, Lithgow in
the Western Sydney coal fields, in Mackay
& Emerald servicing the Bowen and Galilee
basins, and Gunnedah in the Namoi Valley
– positions that allow it to provide timely
Bullivants provides a full risk management
solution beginning with advice and supply of
industry best quality product. If required,
Bullivants can also provide an engineering
design service for custom products. The
company’s inspection and testing service is
to NATA standard and via the Bullivants
Electronic Asset Management (BEAM)
www.miningoilgas.com.au
Newstan – a venture that would help to
implement new and proven technologies at
the site.
Clarence, Mannering and Myuna
In the Western Coalfields, Clarence is an
underground operation producing 2.5mtpa of
thermal coal for domestic and export markets.
Centennial operates Clarence in joint
venture with SK Energy Australia (85 per
cent share), and also operates a coal handling
and preparation plant and water treatment
plant on site.
Mannering is an underground thermal coal
mine in the Newcastle Coalfields. It was put
on care and maintenance in January 2013,
but Centennial entered into a production
sharing agreement with LDO’s Chain Valley
Colliery in October of the same year, and
production resumed at the site under a Mining
Cooperation Deed with LDO as operator.
In 2012, Myuna – another underground
thermal coal mine in the Newcastle Coalfields
– received project approval to continue
mining until 31 December 2032. The mine
was purchased in 2002 as part Centennial’s
acquisition of Powercoal and has a full
production capacity of 2mtpa.
Rehabilitation projects
Centennial is currently undertaking a series
of rehabilitation projects and operational
upgrades of two former open cut operations
near Lithgow known as Ivanhoe and Lamberts
Gully.
Ivanhoe
The Ivanhoe North project was a small
three-year operation that combined the
rehabilitation of a 1940s open cut operation
with the recovery of remaining coal. The
mine ceased production in March 2012, after
recovering about 610,000t of remanent coal.
The main areas requiring rehabilitation
included the mine’s open cut floor, the angle
of repose overburden dumps, coarse reject
dumps and abandoned high walls. Remedial
work, completed late 2012, was restored
to match the mined area with its natural
surroundings.
Lamberts Gully
Operated by Centennial (50 per cent) in joint
venture with SK Kores Australia, Lamberts
Gully was a small open cut operation
producing thermal coal for domestic markets.
It ceased operations in 2010 and has been
under rehabilitation since the middle of that
year.
Works on site include backfilling open cut
pits with overburden and revegetating the
landscape.
Lamberts Gully was mined for 70 years
before its closure.
solutions, advice and service. For more than
70 years the company has taken pride in
providing solutions and advice, combined
with quality fit for purpose products,
friendly service and locally held stocks.
AC Whalan & Co’s philosophy is to
provide professional knowledge, expertise
and skills that are second to none in the
design, supply and installation of pipelines.
system its certification and reporting service
is second to none.
Bullivants goes to the client so there is no
need to send gear offsite and incur transport,
hire and downtime costs. The company’s
testing service covers the full spectrum of
lifting and rigging gear as well as working at
heights inspections.
52 THE AUSTRALIAN MINING REVIEW
SPECIAL PROFILE North Queensland Bulk Ports
Securing coal supply chain through expansion
jane goldsmith
MINING in Queensland has received
considerable public attention in recent
years. A substantial portion of the state
is comprised of internationally unique
wildlife – including the World Heritage
Listed Daintree Rainforest and the Great
Barrier Reef. However, there are also
the state’s mineral-rich land resources
and coal fields – which provide a strong
foundation for financial growth against the
current subdued market – creating a hotbed
of dispute between environmentalists and
industry.
Queensland is one of the world’s largest
producers of zinc, lead and silver; it also ranks
second in Australia for copper production, and
third for gold production. Queensland’s
North West mineral province
dominates base metal, phosphate, bauxite
and silica production.
However, its coal reserves are arguably
the most impressive, with the Bowen
and Surat basins hosting world-class
reserves of both thermal and metallurgical
coal. More recently, the Galilee Basin
was identified as Australia’s newest coal
province, with nine major new mines
proposed for the region – including
Hancock Coal’s 32 million tonne per annum
Alpha coal project; Indian conglomerate
Adani’s $16.5 billion Carmichael mine; and
Clive Palmer’s $6.4 billion coal and rail
project, China First.
With up to 70 per cent of Queensland’s coal
output shipped internationally, opening the
Galilee Basin to mining presents a number
of logistical challenges. The Queensland
Government, in collaboration with North
Queensland Bulk Ports Corporation (NQBP),
has proposed a number of port developments
at the Port of Abbot Point to ensure the
region’s coal supply chain will meet export
requirements into the future.
Despite the economic benefits,
development proposals have been met
with resistance from environmentalists
and competitive land industries (including
agriculture and tourism) as well as the wider
community, regarding potential industrial
impact in environmentally sensitive areas.
NQBP has responded to these social
obligations while catering to industrial
development needs, to ensure port and
shipping growth is gradual, well managed,
and adheres to sustainable development
principles.
North Queensland Bulk Ports
On 2 July 2009, NQBP became the port
authority responsible for Weipa, Mackay,
Abbot Point, Hay Point and Maryborough
ports which was formed after the Queensland
Government completed its Queensland Port
Network Structure review.
NQBP has a collaborative partnership
role with its customers (the port developers
and users) to maximise industrial and
economic growth. NQBP’s primary activities
also include: strategic port planning (port
business and infrastructure development);
environmental and marine pollution
management within port limits; port security
and safety; maintaining navigable port
depths for shipping; and issuing licences,
leases and permits to other organisations for
use of port land, infrastructure and facilities.
NQBP’s Hay Point and Abbot Point
ports function solely for coal export,
receiving products from mining projects
throughout the Bowen Basin. Weipa, on the
northwest coast of Cape York Peninsula,
is a general cargo facility and an export
bauxite facility; and Mackay (5km north
of Mackay city) is a multi-commodity port,
meeting both import and export needs.
Petroleum is a dominant commodity
JULY 2014
Abbot Point port functions solely for coal export
imported through Mackay, with a substantial
proportion of this used to support the state’s
coal projects.
Despite the current softened market,
NQBP generated $21.4 million in profit
after tax in the 2012 to 2013 fiscal year
– exceeding budget expectations by $4.6
million. Across this timeframe, 146,596,386t
of product passed through NQBP’s ports,
including record volumes of coal – up 4.5 per
cent on previous results.
“Our coal outlook is positive, despite all
the doom and gloom there is there at the
present time, primarily on prices,” NQBP
chief executive Brad Fish said.
“We’ve had a record year for
volumes of exports. The actual export
volumes are very high, although the mining
companies are not earning what they’d
ideally like to be, per tonne.
“NQBP takes a lot of interest in the coal
prices and in my experience, across the past
20 years, the price cycles come and go. Year
on year, growth has occurred in the coal
market and that growth with likely continue
going forward.”
Abbot Point
With three of its four trading ports lying
within the renowned Great Barrier Reef
World Heritage Area, a central role of
NQBP is to manage and answer to marine
environmental standards and issues. Port
development adjacent to the Great Barrier
Preparing coal stockpiles for export from Abbot Point
Reef is a highly publicised discussion
topic, and NQBP works to present a
balanced perspective on competitive and
environmental arguments against industrial
development. The most controversial project
is the proposed Abbot Point expansion.
Abbot Point – 25km north of Bowen, at the
northern end of the Galilee and Bowen coal
basins – comprises rail in-loading facilities,
coal handling and stockpiling areas, and
single trestle jetty and conveyor connecting
to two offshore berths and two ship-loaders.
The current 30-year old Terminal 1 (T1)
is 2.8km offshore, and is used to export
coal from Bowen-based mines including
Newlands, Collinsville, Goonyella and
Sonoma. T1 has a maximum export capacity
of 50mtpa of coal.
As the Galilee Basin’s rich coal
reserves become more apparent however,
bottlenecking of the coal supply has been
identified as a future problem. In 2011,
NQBP submitted three major terminal
expansion proposals for Abbot Point to
minimise this problem, including three new
terminals – Terminal 0 (T0), Terminal 2 (T2)
and Terminal 3 (T3).
Challenges
In January 2013, a Public Environment
Report for the Abbot Point Terminal 0,
2 and 3 Capital Dredging Project was
released for public comment; the proposal
subsequently became a hot debate topic for
www.miningoilgas.com.au
both Australian and international media.
A particular concern was the
prospective dumping of 3 million
cubic metres of dredged material
within the general use area of the
Great Barrier Reef Marine Park,
proposed to ensure port depths could
accommodate large coal carriers.
Mr Fish said some anti-coal organisations
had deliberately spread misinformation
about the dredging proposal to heighten
media hype against the development.
“The material we would dredge is
clean material: natural seabed sediment,
predominantly sand, with some fine
sediment within it,” he said.
“We often hear labels being placed upon
these materials as being ‘toxic’ and so on;
it is nothing of the kind. This material is
clean, seabed material, which we are going
to relocate to a seabed of a like-type.
“It will be in deep water – in the order of
40m – a majority can’t be remobilised with
wave and weather action, and it is a long
way from any coral reef receptors.
“Unfortunately we’re caught up in a
lot of misinformation being put out by
organisations which are wishing to ‘murky
the waters’ for their own interests –
particularly to stop the coal industry.”
However, the $1.8 billion proposal has
also attracted concerns about its financial
certainty – and even its general necessity –
after major project backers Rio Tinto, Anglo
American and BHP Billiton all announced
their withdrawal from the project,
referencing a lack of need for the extra
capacities the development would provide.
Major construction firm Lend Lease has
also pulled out of the project.
Mr Fish argued the infrastructure
would become necessary with
a future market revival.
“[The withdrawals were] not necessarily
unexpected. We’re seeing a lot of cost
cutting, the resources sector is not in a
‘boom time’,” he said.
“A challenge for large infrastructure is
the cyclical nature of the mineral industry.
Investing in infrastructure at a time of low
demand often leads to public debate.
“To build a new coal terminal – and these
are very big pieces of infrastructure – from
the starting point of building to the first
coal shipment is probably in the order of
five years. Anything being thought about
today probably won’t be in operation until
about 2020.
“Economic indicators show that demand
will return and we need to be ready for it so
www.miningoilgas.com.au
SPECIAL PROFILE North Queensland Bulk Ports
that Queensland can benefit.”
On 1 May 2014, the World Heritage
Committee released its draft decision for
the development, stating it was considering
listing the reef as a World Heritage Site in
Danger. The committee said it regretted the
Federal Government’s decision to approve
the dredging project without properly
assessing alternatives.
On the back of this decision, Deutsche
Bank delivered a further blow, stating it
would not consider funding the expansion
as there was no political or scientific
consensus regarding impact to the marine
environment.
“We have put strict guidelines in
place to make it clear that we would
not consider any request to finance an
expansion unless we had the assurance of
both the government and UNESCO that
it would not adversely affect the World
Heritage Site,” Deutsche Bank’s meeting
co-chair Juergen Fitschen said.
“We observe that currently there is no
consensus between UNESCO and the
Australian government regarding the
expansion of Abbot Point.
“Since our guidance requires
such a consensus as a minimum, we would
Independent stevedoring services from major Queensland port
THE mining industry is a dominant source
of economic growth in Australia: ranked
as one of the world’s largest exporters
of mineral commodities including
coal, iron ore, lead, gold and uranium,
Australia’s collective mineral exports
contribute about 35 per cent of the
country’s total export income each year.
Seaborne trade is a fundamental
element of the resources sector, with
Australia’s commodities travelling via
not consider a financing request.”
Green groups claimed the bank had
bowed to public pressure after 180,000
Germans signed a petition urging the bank
not to fund the expansion.
Mr Fish said minimising environmental
impact remained a top priority for NQBP.
“At no stage have we ever said that our
ports will not have an impact – yes, they
will have an impact; but it’s about how we
will minimise that impact, and how we
offset it as required,” Mr Fish said.
“Our research is centred on looking at
the water quality in our ports, and changes
in that water quality on a seasonal basis. A
lot of work has also gone into sea grasses.
“We have very strong and rigorous
environmental assessments which were
undertaken prior to any approvals being
sought. As the market continues to expand,
we’re confident this port is well-placed to
be developed.”
Community initiatives
NQBP has engaged in a number
of environmental and educational
initiatives for the benefit and wellbeing
of its port communities. Via its Corporate
Communities Program, NQBP invested
bulk sea carriers to predominately
eastern Asian destinations.
Integrated Stevedoring Services
(ISS) is an independent company that
provides logistics and stevedoring
services from Queensland’s largest
export port, the multi-commodity
Port of Mackay. ISS has extensive
experience in cargo handling – from
bulk shipments and bulker bag cargo
to general project cargo and heavy lifts
THE AUSTRALIAN MINING REVIEW JULY 2014
$86,174 in the 2012 to 2013 financial year
for: the Reef Guardian School Grants for
ten schools; the Weipa Fishing Classic;
the Queens Beach Action Group’s turtle
monitoring Sea Turtle Health and
Rehabilitation workshop; and Sarina State
High School’s Imagining Futures Together
program.
“Over the past 30 years, as a
port authority and facilitator of
development, we have invested millions of
dollars in environmental research both as
part of impact studies, and through ongoing
monitoring of the environment such as
seagrass and water quality studies,” Mr
Fish said.
“We place more value on the environment
than we do on publicity and as a result,
our strict environmental management and
contribution to the economy has in large
gone unnoticed.”
Future developments
Mr Fish said NQBP was working to
maximise the efficiencies of the Queensland
coal supply chain, despite the tough current
market.
“Supply chains have always been
important, but as the price of our coal
from 80t to up to 375t – and particularly
specialises in general and project cargo.
ISS’ particular expertise lies in its
capacity to offer complete turnkey
logistics packages that cover every
aspects of its clients’ seaborne export
needs. Packages include vessel charter,
pre-shipment inspection, freight
consolidation, Australian end discharge,
lay-down area receiving and load-out
management, and delivery to final site.
53
drops it becomes even more important to
get whatever efficiencies we can out of the
supply chain,” he said.
“Taking coal as an example – from the
mine, through the railway system, to the
port, onto a ship and then out through
channels, through the Great Barrier Reef
to the end customer – we’re working very
closely with a range of parties to look
at where the inefficiencies are in that
supply chain, to first of all, identify those
inefficiencies, and then look at strategies to
remove them or mitigate them.”
Mr Fish concluded that within NQBP
management and development of its ports,
environmentally ethical decision-making
would continue to be one of the organisation’s
highest priorities.
“We complete comprehensive planning
roles within our ports,” he said.
“Obviously the environment is a very
large part of what we do these days. Ports
by their very nature are on the coast, and as
a result, they are on that interface between
the land and the marine environment. Three
of our ports are within the Great Barrier
Reef Marine Park area, so environment is a
very strong area that we deal with, and we
have a lot of resources dedicated to it.”
ISS operates in line with its
motto “Productivity through
constant innovation”, and has
successfully completed many major
Queensland-based export projects
including in gauge and wide load cargo
and sensitive cargo handling.
Interested parties are
encouraged to find out about ISS’
services by contacting the
company via phone or email.
54 THE AUSTRALIAN MINING REVIEW
SPECIAL PROFILE Millenium Minerals
Production records round out first year
Louise Baxter
SINCE commercial production began at
Millennium Minerals’ Nullagine gold project
in the first quarter of 2013, the East Pilbara
operation has surged ahead and notched up
a series of milestones.
Navigating challenges from inclement
rainfall to a softened gold market,
Millennium emerged triumphant for the
2013 financial year – its first full year of
production – recording an audited net profit
of $41.7 million for the 12 months to 31
December.
Production from the project’s largest
deposit, Golden Eagle, reached 63,247 oz
of fine gold for the period, and the company
held bullion on hand of about $3.08 million
at year end.
In June, Millennium announced it had
identified further substantial gold zones at
the Au81 deposit – 2km from Nullagine’s
processing facility – with multiple
intersections confirming the deposit’s main
zone of mineralisation extended more than
180m and showed upside potential both
down dip and along strike.
Millennium reported that the drilling
results determined an upgrade to the 2013
maiden inferred resource estimate for
Au81 to the “higher confidence” measured
and indicated categories, with a restated
mineral resource to be estimated from
June. The Au81 deposit previously had
JORC-compliant inferred mineral resources
of 1.5 million tonnes grading 1 gram per
tonne of gold for 47,900 oz of gold, using a
0.5g/t cut off grade.
Millennium managing director Brian
Rear said the drill results and resource
upgrade would boost Nullagine’s mine plan.
“These promising drill results confirm
our confidence in the Au81 deposit with
follow up drilling to commence shortly,” Mr
Rear said.
“Importantly, upgrading the maiden
inferred mineral resource to the measured
and indicated categories enables us to bring
the resources into the mine plan more
rapidly.”
On 19 March, Millennium announced
a $7 million subordinated working capital
facility agreement with major shareholder
IMC Group.
Nullagine deposits
The Nullagine gold project consists of five
main deposit areas – Golden Eagle, All
Nations, Barton, Golden Gate and Shearers
Concreting business proud to participate in major Pilbara projects
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Pilbara, including the Nullagine gold
Chiller solutions for remote and harsh environments
WHEN the phone rang in late April 2011 at
Summit Matsu Chillers’ head office it was
Outotec on the line sourcing for the Nullagine
project.
“We need to price a 100kW chiller for
oil cooling. 30 degrees Celsius water outlet
temperature, 50 degrees Celsius ambient air
temperature. Complete N+1 redundancy on
all components,” Outotec requested.
“And it is remote – very remote – so it has
to be reliable”.
JULY 2014
– and contains a 1.91 moz mineral resource.
Golden Eagle is about 10km south of the
Nullagine township and holds 42 per cent of
the total mineral resource inventory. Mine
construction began in July 2011 and first
gold was poured on 30 September 2012;
commercial production was declared from 1
January 2013.
Smaller, higher grade deposits
surrounding the Golden Gate area include
Crow, G-Reef, Harrier, Falcon and Condor.
On 21 March, Millennium announced
the project’s ore reserve estimates had been
updated following the gathering of new data
from substantial reverse circulation drilling
in 2013. The results incorporated new
mineral resource estimates for All Nations,
ABC Reef, D Reef, Condor, Crow, G Reef
and the Camel Creek Joint Venture (CC JV)
deposits of Roscoes Reward, Junction and
Little Wonder East and West. Millennium
has a 50 per cent share in the CC JV
deposits.
On November 2013, the company
announced an updated total project mineral
resource of 47.1mt grading 1.26g/t of gold for
1,912,800 contained gold ounces.
Record quarter results
Millennium’s strong production and revenue
continued into 2014, with the March quarter
yielding record results.
In its March quarterly report, Millennium
announced that gold output had increased
by 33 per cent on the previous quarter to
18,762oz poured gold – above the higher end
of guidance of 18,000oz – and gold sales of
18,925oz had generated revenue of $27.6
million. Mill throughput of 426,473t was
19 per cent higher than the 2013 quarterly
average.
mine. During its time in operation the
company has worked with many of the
mining industry’s biggest contributors,
on many sites, including UON at Yandi
and Karara, CIMECO at Jimbelbar,
Mt Whaleback, Woodie Woodie, Yarrie,
Hamersly and Lombadina, and with Rio
Tinto at Hope Downs.
Mobecrete has had a batching plant at
“No problem,” was the response from
Summit Matsu Chillers, “this is what we do
every day.”
The scope of work for Outotec included
chillers, pumps, heat exchangers and a
thermal buffer tank. The equipment was
fabricated in a modular format for fast and
simple connection on site to reduce build time.
The chillers consisted of two 65kW
refrigerating capacity air cooled chillers
running R134a refrigerant for the high
Millennium stated that the record
quarterly production was achieved
“despite significant rain related impacts to
operations”.
“Even with the rain interruptions,
semi-continuous ore haulage from the higher
grade ABC and D Reef deposits at Golden
Gate was achieved allowing 77,237 tonnes to
be treated during the quarter,” the company
stated in the report.
“The opening up of the Stage 2 oxide pit
at Golden Eagle in mid-December 2013 has
allowed the oxide to fresh ore blend ratio to
be restored resulting in higher throughput
rates (for the quarter this averaged 204
tonnes per hour versus nameplate capacity
of 189 tonnes per hour).
“For February and March, actual
throughput rates were even higher at 220
tonnes per hour with the average throughput
overcoming the lost availability in January
and February due to flooding and road
closures.
“Overall mill run time was 95.2 per cent for
the quarter, reduced by weather disruptions,
largely offset by very high run times of 98.9
per cent achieved from mid-February to end
of March 2014.”
About 77,000t of ore was hauled from
Golden Gate to the Golden Eagle processing
facility during the March quarter of 2014, at
an average rate of 1200t per day. A total of
20 days were lost due to weather and road
closures.
2014 and beyond
Following the success of production at
Nullagine to date, Millennium has set
production guidance for the 2014 financial
year at 76,000oz of gold, with C1 cash costs
of $975 per ounce and a sustaining cash cost
Rio Tinto’s West Angelas mine site for
almost eight years. All of the company’s
staff are fully inducted and ready to
mobilise for projects anywhere in the
Pilbara and wider WA.
Mobecrete prides itself on offering
a comprehensive range of services
including on-site concrete batching,
formwork construction and concrete
ambient conditions. Condensers were over
sized for the high ambient and the electrical
fabrication was customised for AS3000. A full
documentation (MDR) package was vendor
supplied.
Summit Matsu Chillers also supplied all
interconnecting pipework and fittings, and
commissioned the equipment at site.
Summit Matsu Chillers manufactures
customised chiller plant for process cooling
used by some of Australia’s largest companies.
www.miningoilgas.com.au
of $1140/oz, according to its March quarterly
report.
The company reported that it expected
gold production for the June 2014 quarter to
be between 16,000oz and 18,000oz, and two
further milling campaigns of Golden Gate
oxide ore were expected to be milled during
the June quarter to reach a total of about
70,000t of ore.
“Better understanding of the
characteristics of the fresh ore zones,
improved dilution control from mining
activity, and the availability of oxide material
from the Stage 2 pit in Golden Eagle and
future mining operations at Golden Gate
should result in overall performance this
year being more consistent and in line with
the March quarter results,” the report stated.
On 19 March, Millennium released an
update to Nullagine’s life of mine (LOM)
plan, covering key outputs from the period
between January 2014 and December 2019.
In the announcement, the company stated
that the current six-year mine life was “more
than adequate” as a reserve base to allow for
future development of ore reserves from the
reported 1.9 million ounce mineral resource
inventory.
“Mining inventory included in the LOM
now stands at 481,000 ounces, including
the ore reserve of 465,000 contained ounces,
treatment of medium grade stockpiles and
some inferred mineral resources likely to be
mined,” Millennium stated.
“The plan forecasts mining and processing
9.8 million tonnes [of ore] at an average
grade of 1.52g/t [of gold] to recover 426,000
ounces, at an average metallurgical recovery
of 89 per cent.”
The updated life of mine plan was based
on actual operating performance achieved by
the operation, the company stated.
“Whilst this reduces mine life marginally
to six years, the forecast reflects a higher and
more consistent gold production profile than
that forecast in the original base case model,
particularly over the period 2014 through to
2017,” Millennium stated.
Millennium reported that its gold
production profile for the 2018 to 2019 period
was constrained by current ore reserves,
but the profile was expected to change
following in-fill drilling and mineral resource
to ore reserve conversion studies, due for
completion this year.
In the longer term, Millennium has a
highly prospective pipeline of targets within
its mining leases, which need to be drilled
out in the next two years and assessed before
their potential can be determined.
placement. With a fleet of mobile batching
plants, agitator trucks, excavators and
more, Mobecrete is available for projects
ranging from large scale improvements
to small concrete deliveries to site.
Mobecrete welcomes enquiries and
takes pleasure in creating the best
possible project solutions to meet its
clients’ needs.
Its customers have included BHP Billiton,
Fortescue Metals Group, Glencore Xstrata,
Rio Tinto, Millennium Minerals, and
countless factories across Australia. Summit
Matsu Chillers is the Australian agent for
Hanbell refrigerant compressors and Refcomp
refrigerant compressors, and has a nationwide
chiller service network.
Further information is available from the
Summit Matsu Chillers website, or directly
from the company by phone.
56 THE AUSTRALIAN MINING REVIEW
SPECIAL PROFILE Sirius Resources
Developments well timed to catch market upswing
WITH nickel prices on the rise and whispers
of nickel-focussed companies becoming the
target of potential takeover activity, Sirius
resource has every reason to feel optimistic
about its portfolio.
Sirius’ primary focus is the Fraser
Range project, east of Norseman which,
until recently, it owned in joint venture
with major shareholder and well-known
prospector Mark Creasy. Fraser Range
is home to the company’s flagship Nova
project, which centres on the Nova
nickel-copper sulphide deposit which
Sirius is in the process of developing.
Not far from Fraser Range, to the
north of Norseman, the company is also
exploring its 100 per cent owned Polar
Bear project for gold and nickel, focussing
on the project’s Earlobe gold prospect
which lies in a region containing numerous
world-class gold and nickel mines.
Fraser Range
The Fraser Range project covers an area
of more than 1400 square kilometres,
including more than 100km of strike
length of the Proterozoic Albany-Fraser
mobile belt on the south-east margin of the
Yilgarn Craton.
In July 2012, Sirius announced the
discovery of the Nova nickel-copper-cobalt
deposit within the Fraser Range Joint
Venture area. Nova is a magmatic nickel
sulphide deposit – a style of deposit not
seen before in Australia – and occupies
a geological structure known as the Eye.
Sirius reported that the Nova deposit
style had many features in common with
various aspects of Canadian deposits such
as Thompson (owned by Vale), Raglan
(owned by Xstrata) and Voisey’s Bay
(owned by Vale), frequently an order of
magnitude larger than most Australian
nickel sulphide deposits.
“Common features include the age of
the rocks, the degree of metamorphism
and deformation, the association with a
(once) mafic intrusive rock, the presence of
copper and cobalt in addition to nickel, and
the ratios of these metals,” the company
stated.
“The presence of copper and cobalt is
expected to provide significant by-product
credits which is expected to significantly
reduce the cost of nickel production.”
In March 2013 Sirius announced a
maiden JORC compliant mineral resource
estimate at Nova of 10.2 million tonnes at
2.4 per cent nickel, 1 per cent copper and
0.08 per cent cobalt for 242,000t of nickel,
100,000t of copper and 7700t of cobalt
based on a 0.6 per cent nickel equivalent
cut-off.
In February 2013, Sirius announced
its Bollinger discovery – a dominantly flat
lying body to the east of the Nova deposit,
connected to Nova by an interpreted feeder
zone.
Sirius immediately began a systematic
drilling program at Bollinger, which
returned results including: 55.1m at 3.09
per cent nickel, 1.02 per cent copper and
0.12 per cent cobalt from 423m; 21.85m
at 5.36 per cent nickel and 2.16 per cent
copper from 405m; and 22.4m at 3.31 per
cent nickel and 1.28 per cent copper from
417m.
On 14 February, Sirius announced that
it had entered into an agreement with Mr
Creasy to acquire his 30 per cent interest
in exploration licence 28/1724, including
the part that forms the area subject to
mining lease application 28/376, which the
Nova-Bollinger deposits lie within.
“The consideration for the acquisition
comprises 70.6 million fully paid ordinary
Sirius shares, $28 million in cash, and a
0.5 per cent net smelter royalty payable
only on any production resulting from
JULY 2014
Sirius Resources’ Fraser Range project area covers more than 1400 square kilometres
future discoveries made within that portion
of [exploration licence] 28/1724 outside of
[mining lease application] 28/376,” Sirius
stated in its March quarterly activities
report.
“No royalty is payable to Mark Creasy
on production from Nova-Bollinger or any
future discoveries within MLA 28/376.
“Upon completion, the acquisition will
lift Sirius’ ownership of the Nova-Bollinger
resource from 70 per cent to 100 per cent,
thereby significantly increasing Sirius’
existing resource inventory, forecast future
production and cash flow from production.
Sirius reported that it anticipated
the acquisition would enable it to secure
enhanced financing and off-take terms,
and would provide a strategic advantage
through sole ownership of future processing
infrastructure.
“Further value may also be derived
from future exploration success within
the area of [exploration licence] 28/1724...
within which Sirius will hold a 100 per
cent interest in any future discoveries.
Significant prospectivity remains
throughout [mining lease application]
28/376, including existing targets within
[exploration targets] the Eye, the recently
discovered Western Mafic Complex and the
Eyelet.”
In the report, Sirius detailed spending
The Polar Bear project area is surrounded by number of major gold camps, including Norseman
of about $7.9 million on exploration,
feasibility activities and corporate costs.
It stated that the development of the
Nova-Bollinger feasibility study was on
target for completion in mid-2014, many
aspects of the study largely complete and
capital and operating expenditure studies
continuing.
“At the end of the [March 2014] quarter,
cash at bank totalled approximately
A$96.8 million,” the company stated.
“Expenditure for the coming quarter
is anticipated to total approximately
A$50 million, which will include the cash
component of the Creasy transaction
(subject to shareholder approval),
transaction costs, expenditure to complete
the definitive feasibility study and ongoing
exploration and corporate costs.
“On this basis, cash as of end
June is expected to be approximately
A$46 million.”
Polar Bear
The Polar Bear project covers more
than 133sqkm between Higginsville and
Norseman, and is surrounded by the
major gold camps of Norseman (10moz), St
Ives (10 million ounces) and Higginsville
(2 moz). The project area also covers the
southern continuation of the ultramafic
stratigraphy that hosts the Kambalda
www.miningoilgas.com.au
and Widgiemooltha nickel deposits, and
is largely concealed beneath the salt lake
sediments of Lake Cowan and the sand
dunes of the Polar Bear Peninsula.
The Earlobe prospect is the most
advanced gold prospect within the Polar
Bear project area. Drill intersections at
Earlobe have included 8m at 5.56 grams per
tonne gold, 4m at 4.95g/t gold, 2m at 26.6g/t
gold and 4m at 6.09g/t gold; according to
Sirius, the limits of the Earlobe prospect
have not yet been defined.
The project’s Lake Cowan prospects
are considered prospective for St Ives and
Higginsville-style gold deposits, which
range in size from 1moz to 4moz. Sirius
completed an initial reconnaissance aircore
drilling program at Lake Cowan which
defined a 500m wide zone of supergene gold
anomalism, with individual 4m samples
grading up to 1.4g/t gold within the
blanket. Sirius stated that the Lake Cowan
prospects would be the subject of several
stages of drilling to test each of the priority
targets identified, starting with very broad
spaced drilling to define anomalous zones,
greater than 0.1g/t gold, and culminating
in deeper drilling of specific mineralised
zones.
The Polar Bear project also contains
the Halls Knoll gossan which has yielded
extremely high levels of nickel, copper
and platinum group metals, indicative of
the presence of massive nickel sulphide.
Sirius reported that initial drilling had
intersected disseminated nickel sulphides
beneath the salt lake surface, with
individual metre values up to 2.5 per cent
nickel, 1.5 per cent copper and between
1g/t and 2g/t palladium and platinum.
In its March 2014 quarterly report,
Sirius reported that infill drilling at the
Polar Bear project’s Nanook gold prospect
had continued, with the aim of “tightening
up” reconnaissance spacing to 100m spaced
lines to continue to scope the extent of a
supergene blanket of gold that may form a
dispersion “halo” guide to a deeper, higher
grade source.
“From the eight holes received, the
following results define a continuous zone of
supergene enrichment in three consecutive
holes, with mineralisation persisting to the
end of one: 16m at 1.17g/t gold from 40m,
including 4m at 3.16g/t gold from 44m; 4m
at 4.93g/t gold from 40m; and 4m at 2.32g/t
gold from 44m, and 10m at 1.03g/t gold
(to end of hole) from 60m, including 4m at
2.33g/t gold from 64m,” Sirius reported.
The company also reported the
systematic regional reconnaissance
drilling of a number of targets beneath
Lake Cowan had begun during the March
quarter.
“Several encouraging intersections
were identified in first-pass drilling of the
northern part of the project area,” Sirius
stated.
“These include: 4m at 6.29g/t gold from
24m; 4m at 1.1g/t gold from 56m; [and]
20m at 1.35g/t gold from 4m, including 4m
at 2.11g/t gold from 4m.
“Drilling is continuing.”
In an overview of its nickel
reconnaissance work in the area, Sirius
reported that a review of historic data
during the March quarter had revealed a
previously unknown intercept of 23.05m
at 0.56 per cent nickel including 2.12m
at 1.27 per cent nickel and 0.13 per cent
copper, drilled in the 1970s.
“This area, termed Taipan, is located
on the interpreted prospective basal
contact of the ultramafic rocks that host
the company’s Halls Knoll nickel prospect
some 8 kilometres to the southeast,” Sirius
stated.
“Follow up drilling is planned for the
next quarter.”
www.miningoilgas.com.au THE AUSTRALIAN MINING REVIEW JULY 2014 57
SPECIAL PROFILE Sirius Resources

Quality analysis and customer service sees lab through downturn

AUSTRALIAN exploration companies
and service providers are experiencing
tough times, but a small Perth based
minerals laboratory remains busy due, in
part, to the strong relationships it builds
with customers.
Accurate and reliable assay results are a
priority for many miners so that the correct
decisions can be made on the next stage of
project development.
With accreditation by NATA in
accordance with ISO17025:2005,
Minanalytical is a WA owned company
established to provide prompt,
high-quality and personalised services to
the WA market.
Offering a range of analytical services
for most commodities, the company’s
‘customer-first’ philosophy has helped it
build relationships with some of WA’s
standout miners and explorers, such as
Sirius Resources.
The handpicked and dedicated
Minanalytical team has global,
long-standing experience in the
analytical industry, ensuring a good
understanding of customer needs for
timely and accurate results.
Minanalytical also offers highly
confidential strategic synergies through
its parent group, Ausdrill. The result is a
unique and efficient, cost-effective single
point of contact for mineral exploration and
mining companies with limited resources.
The Ausdrill Group of companies can
provide a fully integrated exploration
drilling, contract mining and analysis
service, ensuring a continuity of service
and quality with consistent processes and
systems. Its ‘customer-first’ philosophy has helped Minanalytical build relationships with some of WA’s standout miners and explorers
58 THE AUSTRALIAN MINING REVIEW
SPECIAL PROFILE Peabody Energy
Coal giant reinforces global portfolio
Rachel Dally-Watkins
THE world’s largest private-sector coal
company Peabody Energy provides
metallurgical and thermal coal to
customers in 25 countries, selling about
500t of coal per hour. The company has
built a strong position in the global market
since it was established in 1895, with
several strong operations in Australia,
trading activities and a market presence in
Asia, and a robust position in fast-growing
US coal regions.
In the first quarter of 2014, Peabody
secured revenue of US$1.63 billion with the
lowest capital expenditure experienced in
10 years.
“Peabody’s global platform delivered solid
operating performance in the first quarter,
and the ongoing production ramp up at the
North Goonyella mine [in Queensland] is
progressing,” Peabody chairman and chief
executive Gregory Boyce said.
“US coal demand continues to rebound,
resulting in one of the largest inventory
drawdowns on record. And while current
seaborne markets remain challenged,
we look for fundamentals to improve as
demand continues to increase and supply
growth moderates.
“Peabody’s position in the low-cost US
basins and high-growth Asian markets
allows us to navigate current market
pressures and benefit from long-term
demand trends.
“Even with increased coal demand,
continued supply overhang has led to
seaborne coal price declines. Near-term
stimulus activities in China and limited
supply increases are expected to lead to
improved market fundamentals later this
year and into 2015.
“Longer-term global urbanisation trends
will drive continued coal demand growth,
while seaborne coal supplies are likely to
be constrained by deferred investments and
removal of production at the high end of the
cost curve.”
In early May, Peabody entered an
agreement to sell its Wilkie Creek mine
to Singapore-based Bentley Resources for
about US$70 million. The Surat Basin mine
had been closed since December.
Looking ahead to its full year results,
Peabody reported that it expected to reach
total coal sales of between 245 and 265
million tonnes, with between 35mt and
37mt to come from Australian sales.
NSW operations
Metropolitan
The Metropolitan mine, within a national
park near Helensburgh, produced 1.4mt of
saleable metallurgical coking coal in 2013.
The operation uses longwall mining
to extract coal, which is transported via
train to the Port Kembla Coal Terminal to
be shipped to domestic and international
customers. According to Peabody, about
1900 people are indirectly employed through
the operation, with about 320 on site.
Metropolitan is the only coal mine in
Australia that recycles coal waste rock by
storing it in disused underground workings
after it has been processed into a paste.
In the company’s March quarterly
report, Peabody stated its initiatives at
Metropolitan were focussed on replacing
the conventional longwall in order to
increase productivity. The installation was
on schedule to be completed in the June
quarter.
Wambo
Wambo is a combined open cut and
underground operation about 30km west of
Singleton in the Hunter Valley. The mine
JULY 2014
has been operating since 1969, with Peabody
acquiring a 75 per cent interest in 2006.
It produces thermal coal and pulverised
coal injection (PCI) coal. Its main export
markets are Japan, Korea and China. Coal
from Wambo is shipped through both Port
Waratah Coal Services and Newcastle Coal
Infrastructure Group facilities.
The Wambo mine is one of Peabody’s
largest operations, employing about 500
people on site. In 2013, the open cut operation
at Wambo produced 2.6mt of saleable coal,
while the North Wambo underground mine
produced 3.5mt of saleable coal.
Wilpinjong
The open cut Wilpinjong mine is 40km
northeast of Mudgee. Peabody stated that
with an average strip ratio for the life of the
mine of around 2:1, Wilpinjong was one of
the lowest-cost coal mining operations in
Australia.
First coal was railed from the site in
October 2006, and coal from the mine is now
exported around the Asia-Pacific region
from a terminal at Newcastle.
The mine became Peabody-owned and
operated in April 2013, and has a workforce
of about 550 people. In 2013, Wilpinjong
produced 12.7mt of saleable coal.
Queensland operations
Burton
Peabody acquired 95 per cent of the open cut
Burton mine, 150km southwest of Mackay,
in 2004. The mine produces medium-volatile
bituminous hard and semi-hard coking and
some thermal coals, for markets in Japan,
Taiwan, India, Europe and South America.
According to Peabody, Burton was one
of the first mining operations to use the
terrace mining method for extracting steep
seams. With the approval of the Burton
Widening project, Peabody is looking to
modify the terrace mining concept to a
depth approaching 230m at the highwall –
an Australian first.
In 2013, the mine produced 2.1mt of
saleable coal. It has a workforce of about
900 people.
Coppabella
The open cut Coppabella mine, 160km
west of Mackay, produces low-volatile PCI
coal for export. Peabody holds a 73 per
cent interest in the dragline and pre-strip
operation, which employs about 550 people.
Coppabella has been operating since 1998
and, according to Peabody, is recognised as
one of the fastest coal mine developments
in Australia: it took less than 15 months
from the completion of a feasibility study
in September 1997 to delivery of the mine’s
first shipment of coal in November of the
following year.
Coppabella is operated through
conventional strip mining, using a dragline
with truck and shovel fleets for pre-stripping
operations. In 2013, it produced 3.1mt of
coal.
Eaglefield
Peabody acquired the open cut Eaglefield
mine, 36km north of Moranbah, in 2004.
Eaglefield produces high quality hard
coking coal for export markets and employs
about 160 people.
The mine is within the same 3341 hectare
mining lease as the company’s North
Goonyella mine and has been operating
since 2003. Eaglefield and North Goonyella
share a coal handling and preparation
plant, tailings co-disposal storage, rail loop
and rail load-out facility and an integrated
water management system.
Peabody received government approval
in 2013 for the Eaglefield Expansion
Project, to develop the new Denham open
cut. Peabody is assessing the development
timeframe in line with market conditions.
In 2013 the mine produced about 1.3mt
of coal.
Middlemount
Peabody has a 50 per cent interest in the
Middlemount mine, with the remainder
held by Gloucester Coal. The operation,
90km northeast of Emerald, produces
low-volatile PCI coal.
Mining at Middlemount ramped up to
3.8 million tonnes per annum of coal after
commencing in 2011, marking it as the
first greenfield coal mine to be developed in
the Bowen Basin since 2007. Peabody has
previously reported it intended to expand
the mine’s production level to 5.4mt in 2014.
Millennium
Millennium is about 160km southwest
of Mackay, and provides coking and low
to mid-volatile PCI coal to several Asian,
European and South American customers.
Operations began in 2006 and today the
mine employs about 400 people, following a
recent transition to owner-operator status.
As Millennium is adjacent to BHP Mitsui
Coal’s Poitrel project, Peabody and BHP
Mitsui Coal share coal infrastructure with
a total annual capacity of 6mt. In 2013, the
mine produced 3.4mt of saleable coal.
Moorvale
Peabody has a 73 per cent interest in
the Moorvale mine, 156km southwest of
Mackay, which produces low-volatile PCI,
coking and thermal coal for export to North
Asia, China, Brazil and Europe. Mining
operations began in 2003 with the first
train loaded in December that year. The
mine has the capacity to produce 3mtpa
with coal processing carried out through
a 600 tonne per hour coal handling and
preparation plant.
The excavator and strip/terrace operation
employs about 340 people. In 2013, 2.1mt of
Moorvale coal was sold.
In its March quarterly report, Peabody
stated it would focus on converting the
Moorvale mine to owner-operator status in
the second half of 2014.
North Goonyella
The North Goonyella underground mine
began operating in 1994, producing
premium quality, high-strength coking
coal for overseas steelmakers. The coal is
exported to Japan, Asia, India and Europe
through the Dalrymple Bay Coal Terminal.
Peabody acquired the mine in 2004 and
employs 519 people at the site.
In the third quarter of 2013, Peabody
introduced new longwall top coal caving
equipment to the mine to allow the recovery
of up to 3.9mt of additional high-quality
hard coking coal and provide opportunities
for future use in other areas.
Feasibility studies were also being
undertaken to determine the optimum
mining of the lower seam, GLB2, using
longwall technology.
In its March 2014 quarterly report,
Peabody stated it remained focussed on
achieving full production targets from the
longwall top coal caving system.
“Equipment performance is improving,
with output in early April running
approximately 75 percent above first
quarter levels,” the report stated.
“Production rates are expected to reach
normalised levels by the end of the second
quarter.”
The mine produced 1.7mt of saleable coal
in 2013.
Awards
In the last 50 years, Peabody has received
www.miningoilgas.com.au
more than 150 awards covering a range of
corporate and operational areas. So far this
year, it has received the NSW Women in
Mining Rising Star Award; second place in
the Annual Robert Earl Jones Mine Rescue
Contest; third place in the Annual Robert
Earl Jones Mine Rescue Contest; and
an honourable mention in the Interstate
Mining Compact Commission National
Reclamation Awards.
Two of the company’s US operations
recently won the President’s Award for
achieving the safest US performance for
surface and underground operations in
2013.
In late May, Mr Boyce was recognised
by the World Coal Association (WCA) for
global leadership in mining safety with the
WCA Chairman’s Special Award.
“The honour is a credit to the more than
8,300 Peabody Energy employees who
make safety our shared value and way of
life, who commit to a vision of incident-free
workplaces and who take accountability for
safe behaviour and practices at work and
away,” Mr Boyce said.
“All mining workers have a right to
arrive home safe at the end of the day, and
we must do everything we can to provide
safe workplaces in the global mining sector.”
National Carbon Target
Following a recent proposal by US President
Barack Obama’s administration to reduce
emissions from coal-fired power plants
by nearly one-third nationwide by 2030,
Peabody released a statement proposing
alternative policies to address “widespread
US energy poverty”.
“We believe that everyone deserves
access to low-cost electricity, and everyone
wants the air to be a bit cleaner every day.
Advanced coal-fuelled electricity is essential
to these twin goals,” the company stated.
“It’s no surprise that coal’s market share
of US generation has expanded greatly in
the past two years, given its role as the
most reliable and affordable baseload fuel.
During the bitter-cold winter months, coal
provided a stunning 90 percent of America’s
increased electricity needs. More broadly,
the world continues to turn toward coal. It
has been the fastest growing major fuel over
the past decade and is expected to surpass
oil as the world’s largest energy source in
coming years.
“Today, American policy should be
guided not by a modelled crisis, but by the
real crisis of more than one of every three
US households that qualify for energy
assistance. Energy inequality in the US
is an enormous challenge... and access to
low-cost energy is a basic need. Yet proposed
regulations will make energy more scarce
and more expensive without any material
improvement in emissions.
“The real endangerment finding is the
harm the Administration’s policies will have
on Americans – particularly the poor, the
working class, the elderly, minorities, small
businesses, manufacturing, consumers
of health care and nutritious foods, and a
fledgling economy that should be growing
jobs at far faster rates. Already, multiple
reports put the cost to each American
household in the thousands of dollars over
time.”
Peabody instead proposed a policy
that insisted on low-cost electricity;
investment in efficiency improvements at
existing plants; deployment of advanced
supercritical coal plants; and more research
and development into new coal technologies
including carbon capture, use and storage.
“In the meantime, we will keep doing the
will of the people and fulfilling a broad basic
need, fuelling inexpensive electricity using
clean coal technologies.”
www.miningoilgas.com.au THE AUSTRALIAN MINING REVIEW JULY 2014 59
SPECIAL PROFILE Peabody Energy

Heavy vehicle workshop at Wilpinjong completed on time and incident free

BACKED by more than 30 years of
experience in the Australian resources
sector, Williams River Steel was recently
contracted to design and construct a
50m by 30m heavy vehicle workshop
for Peabody Energy’s Wilpinjong mine.
Collaboration between Peabody
Energy and Williams River Steel
ensured that the principal project
requirements of the workshop were
met. The construction included
design, engineering, civils, electrical
and mechanical requirements – all of
which were carried out by Williams
River Steel’s in-house team.
The roofline was designed,
engineered and constructed to exceed
the required 20m clearance, and provide
support for the overhead travelling
crane which consisted of a 25t and 5t
hook designed to access the three-bay
workshop. Lube and oils systems were
also installed to the workshops, as
well as storage for parts and equipment.
The heavy vehicle workshop
was completed on time following
an impressive 13,300 hours of
incident-free construction. To ensure
all safety requirements were met
during construction – including a
design development risk assessment
– Williams River Steel maintained
close communication to provide expert
advice at all stages of the build.
Williams River Steel has become one
of the largest suppliers of customised and
prefabricated buildings in Australia and
proudly operates on a work health and safety
management system that is compliant Construction of the heavy vehicle workshop included design, engineering, civils, electrical and mechanical requirements — all carried out by Williams
with AS/NZS 4801:2001 standards. River Steel’s in-house team
60 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

SPECIAL PROFILE Panoramic Resources

Diversified portfolio key to miner’s expansion

Rachel Dally-Watkins

SINCE listing on the ASX in 2001,

Panoramic Resources has produced
about 132,000t of nickel, 42,000t of
copper and 3600t of cobalt. The company
owns and operates two underground
nickel mines in WA; has resources of
more than 2 million ounces of gold; and
has two advanced platinum group metals
projects aiming for production within
five years. It also holds interests in a
number of exploration stage projects.
Panoramic aims to become a major
diversified mining house and has
a 10-year plan to optimise metal
production and maximise profit margins;
grow existing resources and reserves to
extend the life of current operations;
acquire additional assets; and maintain
a steady dividend stream and become an
S&P ASX 100 company.
In the March quarter of 2014, Panoramic
was focussed on making sustainable cost
savings and productivity improvements
across the business. As such, it reviewed
all major contracts and supplies and
measures were undertaken to improve
business systems and procedures, securing
some significant cost savings. Panoramic Resources’ diverse portfolio includes the platinum group metals project, Thunder Bay North, in northwest Ontario
Panoramic also reported it had taken
advantage of high nickel prices by Savannah material mined is either stockpiled holes were drilled to test the preferred
purchasing “1150t of US$ nickel put options, The Savannah project, 240km south underground or trucked to surface.” structural model of the orebody and in
providing a floor price while allowing of Kununurra in the East Kimberley, The processing plant at the mine February the company reported the
exposure to further price increase”. achieved an 18 per cent production comprises a single stage crusher and discovery of the Savannah North zone of
The company also ensured some increase during the quarter at 2375t of SAG mill, with flotation, thickening and mineralisation, 650m to the north and
protection against a rise in the nickel in concentrate at a cost of $4.81 filtering stages to produce a bulk nickel, 300m below the current depth of the
Australian dollar above US$0.95 with per pound. It had a record throughput of copper and cobalt concentrate. Nickel is Savannah mine decline.
US$:AUD FX put and call options. 200,719t (a rate that, if continued, will recovered at an average of between 86 The discovery was recognised by the
At the end of the quarter, Panoramic annualise at about 800,000t). per cent and 89 per cent, while copper industry with Panoramic winning the
had $67 million in liquid assets. The mine is a predominately a low averages 94 per cent to 97 per cent and Discovery of the Year award at the 2014 Asia
cost, long-hole open stoping operation. cobalt averages between 89 per cent and Mines and Money Conference in Hong Kong.
Nickel projects “Access to the top and bottom of the 92 per cent. The original plant design Underground, surface drilling and
During the March quarter, Panoramic’s ore block is established with tunnels, a has a throughput capacity of 750,000 down-hole electromagnetic survey
nickel division achieved a record slot raise is created, and holes are then tonnes per annum, however Panoramic results supported the potential for a
production of 5731t of nickel in drilled to blast vertical slabs off the ore stated it had consistently outperformed large footprint of what Panoramic called
concentrate. As a result, the company’s block,” Panoramic stated. the design specifications and could “Savannah magmatic breccia style”
annual nickel production guidance “Once the ore block has been blasted operate at up to 950,000tpa. nickel, copper and cobalt mineralisation.
was upgraded to between 21,500t and and extracted, the stopes are filled From July 2012 to February 2013, The company reported the discovery as a
22,000t of nickel contained – if the with paste (tailings and cement mix) to Panoramic undertook a drilling program game-changer that could have a “major”
guidance is met, the division will secure stabilise the void and allow extraction of to evaluate the Savannah orebody. In impact on the life of mine.
a new annual production record. adjoining ore blocks. The minimal waste January 2014, a series of diamond Further drilling of the new discovery
was undertaken, and a “chilled margin
contact zone to the North Olivine Gabbro
(NOG) and surrounding geology was
identified between 1025[m] to 1038m”,
returning an intersection of 7m grading
0.5 per cent nickel, 0.21 per cent copper
and 0.02 per cent cobalt.
According to Panoramic, the
mineralisation intersected in the NOG by
three surface holes demonstrated for the
first time that the NOG was a mineralised
intrusion very similar to the Savannah
intrusion, opening up an entirely new
avenue for exploration at the project.
Additional drilling of Savannah North
is ongoing and expected to be completed
by the December quarter.

Lanfranchi
The Lanfranchi project, near Kambalda
in the Eastern Goldfields, produced
134,340t of ore grading 2.5 per cent nickel
for 3356t of contained nickel during
the March quarter of 2014, at a cost of
$5.48/lb. This was a 29 per cent increase,
resulting from production reverting
from the Lanfranchi orebody to the
Deacon orebody following rectification
work on the paste plant late last year.
The Lanfranchi mine uses a similar
mining technique to the Savannah mine,
although the ore is not processed on site.
It is delivered via road to the Kambalda
nickel concentrator operated by BHP
Billiton Nickel West and processed under
The Gidgee gold project covers about 1200 square kilometres of the Gum Creek greenstone belt
www.miningoilgas.com.au
SPECIAL PROFILE Panoramic Resources
an ore tolling and concentrate purchase
agreement, in place until February 2019.
Nickel West has a first right of refusal to
take additional ore above the 350,000tpa
level from the Lanfranchi project.
As part of its plan to expand existing
projects, Panoramic is exploring a
number of regions at the project:
down-plunge of the Lanfranchi orebody,
where the potential for high grade
nickel is “very promising”; up and
down-plunge of the Jury-Metcalfe
resource; down-plunge of the Deacon
orebody, targeting the electromagnetic
plate identified during previous
drilling; east of Deacon, targeting
a potential new channel of
mineralisation; and the prospective
Tramways Overturned Dome area.
Drilling results from the east of
Deacon included 4.51m grading 1.93 per
cent nickel from 393.4m; 3.16m grading
1.09 per cent from 407.6m; and 5.48m
grading 1.24 per cent nickel from 418.3m.
“The greater abundance of sulphide
mineralisation intersected in [drill
hole] HS784E is encouraging and the
company remains optimistic about the
East Deacon channel target, given the
abundance of ‘channel facies’ lithologies,
low tenor sulphide mineralisation and
associated strong EM [electromagnetic]
responses in the area,” Panoramic stated.
“Work on the area has been
temporarily suspended in order to review
the work completed to date and to devise
better drilling options for testing of this
promising target.”
Gold projects
Gidgee
The Gidgee project, 130km southwest of
Wiluna, covers about 1200 square kilometres
of the Gum Creek greenstone belt. The site
has an existing airstrip, an operational
camp, a 600,000tpa processing facility,
tailings storage and well maintained
access to roads. Mining leases have been
granted for the main areas of the project,
which cover 70km of a long structural
corridor hosting gold mineralisation.
“The company’s initial strategy for
Gidgee is to build up a resource and
reserve profile and develop a mine plan
which will support the re-commissioning
of the existing Gidgee processing plant,”
Panoramic stated.
“With the acquisition of Wilsons gold
project and resource upgrades, the Gidgee
project tenements now contain a combined
1.3 million ounces of gold in resource.
“The Wilsons tenement is located
on a granted mining lease within
trucking distance of the existing Gidgee
processing facility and is contiguous
with Panoramic’s 100 per cent owned
Gidgee tenements.”
Panoramic is undertaking a feasibility
study based on the Wilsons orebody, and
is progressing project approvals.
“Treating the Wilsons ore will require
a three stage crushing and grinding (to
75um), flotation to make a concentrate,
magnetic separation circuit to remove
a significant amount of pyrrhotite
from the concentrate, then thickening,
filtering and bagging of the concentrate
THE AUSTRALIAN MINING REVIEW JULY 2014
for transportation and processing
off-site,” the company stated.
The study was due for completion in
the June quarter.
Mt Henry
The Mt Henry gold project, south of
Norseman, covers 135sqkm and hosts
three known resources: Mt Henry, North
Scotia and Selene. The three resources are
within the project’s granted mining lease.
Panoramic completed a scoping study
for the project in December 2012, for the
production of 840,000oz of gold during a
seven-year mine life. The study indicated
annual production of 116,000oz of gold
at an average operating cost of $930 per
ounce. The estimated capital cost for the
project was $195 million, with a base
case cash flow of $215 million, based on
a gold price of $1500/oz.
Following the scoping study,
Panoramic undertook a bankable
feasibility study (BFS), which was due
for completion in the June quarter. The
BFS identified several opportunities
that could provide value enhancement
for the Mt Henry project, including the
inclusion of parallel zones identified
by historical drilling but not included
in the resource estimates or economic
evaluations for the project.
During the March quarter,
environmental baseline work was
concentrated on demonstrating that pit
lake formations at mine closure and final
waste dumps could be managed to minimise
the effects of any potentially acid forming
61
material generated during open pit mining.
Metallurgical testwork was
undertaken to optimise the grind size
and gold recovery levels in the treatment
process. Panoramic was also evaluating
the recovery of magnetite by-product.
Platinum group metals projects
Panoramic owns two platinum group
metals project: the Panton project, 60km
south of the Savannah project in the east
Kimberley, and Thunder Bay North,
50km north-northeast of Thunder Bay
in northwest Ontario.
The Panton project has resources of
1moz of platinum grading 2.2g/t and
1.1moz of palladium grading 2.4g/t.
Previous owners of the project completed a
BFS, which Panoramic continued to assess
during the March quarter. By reviewing the
report, Panoramic aimed to gain a better
understanding of the project geology; assess
the proposed project flowsheet; determine
if additional mining and processing
trails were needed; and identify and
qualify the opportunities for Panton in
relation to the nearby Savannah project.
The Thunder Bay North project, which
includes interests or options to acquire
interests in regional exploration areas,
has resources of 10.4mt grading 1.13g/t
of platinum and 1.07g/t of palladium for
400,000oz each of platinum and palladium.
Panoramic’s quarterly report stated
that the company was focussed on finding
strategic partners for its platinum group
metals projects, and as such little field
work was undertaken during the quarter.
62 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

SPECIAL PROFILE IronClad Mining

Exploration continues as project moves forward

Rachel Dally-Watkins

FORMED to develop the Wilcherry

Hill iron ore project in South Australia,
IronClad Mining listed on the ASX in
2007 and has since made steady progress
in moving the project towards production.
The Wilcherry Hill project, 130km
from Whyalla, is held in joint venture
with Trafford Resources, with IronClad
holding an 80 per cent interest in
the project’s iron ore. The project has
moved through resource definition
and geological, mine development,
metallurgical, environmental, social and
infrastructure studies and approval.
IronClad is now seeking $22 million
in project and working capital to proceed
with Stage 1 of the project, including the
construction of port and road infrastructure.
“To fund this capital, IronClad has
three possible sources of funding; debt,
equity or pre-payment,” the company
stated in its March quarterly report.
“To secure debt funding in the current
iron environment would require the use of
financial hedging instruments to ‘lock in’
fixed forward prices and exchange rates.
Forward swap prices are considerably
lower than current spot prices making
debt funding particularly unattractive.
“Equity remains an option; however
this is the least preferred source of capital.
“Due to the project’s relative short A community accommodation village at IronClad’s Wilcherry Hill project in South Australia
construction timeframe, the potential
to receive shipment pre-payment for ore Wilcherry Hill Stage 2 would process ore through a targets with potential to host near
remains an option. Typically this would The Wilcherry Hill project comprises four gravity separation plant to produce a surface high grade iron resources
require ore to be delivered within six tenements (Wilcherry Hill, Valley Dam, beneficiated product from material mined to supplement the proposed mining
months of receiving the pre-payment. Peterlumbo and Eurilla Dam) covering 976 deeper in the pits, while Stage 3 would operation was completed.
The pre-payment of ore avoids the need to square kilometres. A mining lease has been involve processing ore from deep in the “This project, commenced in
lock in unattractive forward swap prices. granted for the Wilcherry Hill tenement. pits at Weednanna and other sources, mid-2013, has generated prioritised drill
“During the quarter, discussions The project has JORC-compliant including the company’s nearby Hercules targets...required to build the resource
were held with a number of potential resources of 24.3 million tonnes grading deposit through a gravity separation plant. base that will sustain a long term DSO/
investors and trading companies 40 per cent iron, with near surface The product will be hauled via road DMS mining operation. Drilling of any
interested in securing long term iron iron mineralisation. A feasibility study to Lucky Bay on the west side of the targets will be undertaken once mining
ore off-take agreements with IronClad. highlighted a preferred strategy of Spencer Gulf, near the town of Cowell. operations commence,” IronClad stated.
The off-take agreements being sought by establishing the operation in stages, IronClad identified a potentially
IronClad include a provision for funds to beginning with a low cost direct shipping viable scenario to begin production in Lucky Bay
be advanced as shipment pre-payments ore (DSO) operation with an initial 2014, pending the grant of all approvals Plans for developing the Wilcherry Hill
to assist with project start-up costs. production rate of 1 million tonnes per and obtaining project funding. project include establishing a common
“A number of interested parties annum in the form of lump and fines with The company is also undertaking user export facility CUEF), with
are reviewing the Stage 1 Wilcherry a target grade of 58 per cent iron ore. exploration in the areas around IronClad as the main user.
Hill project data and discussions are This would be followed by beneficiation Wilcherry Hill; during the March The ore will be stored onsite in
ongoing.” stages to produce magnetite concentrate: quarter, compilation of exploration several covered stockpiles in a buffer

IronClad is undertaking exploration in the areas around Wilcherry Hill The project has JORC-compliant resources of 24.3 million tonnes of iron ore grading 40 per cent iron
www.miningoilgas.com.au THE AUSTRALIAN MINING REVIEW JULY 2014 63
SPECIAL PROFILE IronClad Mining

storage area 1.5km from the Lucky said at the time.

Bay harbour. The existing ferry
harbour on the west side of Spencer
Gulf will be extended by the harbour
owner Sea Transport Corporation and
IronClad will install a loading dock and
moorings for its transhipment vessels.
“The ore will be loaded into specially
designed, covered shipping containers at
the buffer stockpile area and trucked to
a loading dock where they will be loaded
onto 70m long barges for transhipment
to 70,000 Panamax size export
vessels which will moor in deep water
9km offshore,” the company stated.
“Each barge will carry approximately
90 containers. The containers will be lifted
from the barges using a 70m long crane
barge moored against the export vessel.
The crane will be fitted with a purpose
built container lifting device which will
remove the lid and rotate the container to
tip the ore into the ship’s holds and then
return the empty container to the barge.
“IronClad recently conducted a
successful trial of its innovative
transhipment system using barges
moored offshore from Port Adelaide.”
During the March quarter,
IronClad was focussed on the detailed
design of the land-based facilities
while Sea Transport worked on the
design of the marine infrastructure.
“License negotiations were initiated
with the Environment Protection
Authority to finalise the operating
licenses required for the project.
The projects development approval
stipulated the majority of the operating
conditions,” IronClad stated.
Sea Transport, as the nominated
port operator for the Lucky Bay CUEF,
continued negotiations with the South
Australian Transport minister for
the grant of a formal Port Operating
Agreement for the CUEF, through the
Harbours and Navigation Act.
“Detail design of the Lucky Bay dock
and onshore infrastructure is complete.
Sea Transport, the owner of the Lucky
Bay harbour, is progressing with its detail
design of the harbour extension, a deepened
existing harbour and the approach channel
from Spencer Gulf,” IronClad stated.
“IronClad has completed design of
the offshore mooring to anchor both
Panamax and Cape size ships at the
approved location 5.5 and 8 nautical
miles respectively offshore from port
at Lucky Bay. Options for supply of the
marine fleet for transhipping operation
continue to be evaluated including
a recent inspection of a crane barge
operating in Kalimantan.”
Designs had also been completed
for upgrades to public roads allowing
for the use of double road trains
on the route from the mine to the port.
In the March quarter, IronClad was focussed on the detailed design of land-based facilities at Lucky Bay
Hercules
The Hercules prospect is on the Eurilla
Dam tenement, 15km east of the Wilcherry
Hill tenement. It contains large banded
iron formation (BIF) mineralisation, with
a large magnetic trend associated with
ironstone hills.
The prospect was identified in 2000,
however no serious exploration was
undertaken until 2008 when IronClad
launched a reverse circulation drilling
program. An inferred resource of 215.6mt
grading 27.7 per cent iron was established
in December 2008.
IronClad’s exploration focus switched
to Wilcherry Hill and little work was
undertaken until 2012.
Manganese joint venture
In December 2013, IronClad entered a
joint venture agreement with Trafford
Resources to earn an 80 per cent interest
in the manganese within the four
tenements Wilcherry Hill project. Under
the agreement, IronClad would complete
4000m of reverse circulation drilling
within 12 months and manage the joint
venture.
IronClad made an initial payment of
$250,000 to Trafford, and would need to
spend $1 million to earn a 50 per cent
interest and an additional $2 million to
earn a further 30 per cent interest. The
remaining 20 per cent would be free-carried
by Trafford until the decision to mine.
“The signing of this agreement is an
important milestone for the company,”
IronClad managing director Robert Mencel
“The inclusion of manganese and its
synergy with the Wilcherry Hill iron
project has the potential to add significant
value to the company.”
IronClad began first pass drilling on the
Hercules manganese prospect, 15km east
of Wilcherry Hill tenement, in January
2014. The 620m drilling program will
outline the potential size and grade of the
deposit, which was discovered during iron
ore exploration drilling last year.
During the March quarter, the
manganese drill program returned
results including: 12m grading
20.72 per cent manganese from 59m;
11m grading 29.9 per cent manganese
from 65m; and 17m grading
22.4 per cent manganese from 49m. This
drilling was largely focussed on the
Hercules East and Pier Dam prospects,
both within the Eurilla Dam tenement.
“Exploration included historical
data compilation, review of available
geophysical data, ground magnetometer
surveying, and acquisition of digital
aerial photography, lag geochemical
sampling, reverse circulation drilling and
commencement of geological mapping,”
IronClad stated.
In April, IronClad announced it had
discovered three discreet manganese
prospects, with sampling confirming
a more than 1km zone of geochemical
anomalism 2km northwest of Hercules
East.
“Regional sampling and exploration
results to date continue to reinforce
our belief that we have identified
a significant area of manganese
mineralisation,” Mr Mencel said.
“I’m very confident that this exploration
success will translate into considerable
value for IronClad shareholders.”

Award-winning firm offers specialist

resources sector capabilities
ADELAIDE-based commercial law firm
Finlaysons offers specialist expertise in
the provision of services to the resources
industry.
Operating from its head office in
Adelaide, Finlaysons has a significant
local, national and international client
base, and was named Australasian Legal
Business Adelaide Law Firm of the Year
for 2010, 2011, 2012 and 2013.
Finlaysons has represented IronClad
Mining extensively in relation to project
approvals and contracts for its Wilcherry
Hill project.
Finlaysons is also involved in many other
existing and emerging mining companies
with South Australian projects, including
Iluka Resources’ Jacinth-Ambrosia
project; OZ Minerals’ Prominent Hill and
Carapateena projects; IMX Resources Cairn
Hill project; Iron Road’s Central Eyre iron
project; REX Minerals’ Hillside project and
Murray Zircon’s Mindarie project.
Finlaysons also represents many
companies carrying out exploration in South
Australia, and its resources practice extends
beyond South Australia’s borders to include
work throughout Australia. Finlaysons is
proud of its association with IronClad Mining
and wishes the company continued success.
64 THE AUSTRALIAN MINING REVIEW
SPECIAL PROFILE Macphersons Resources
Bright future for high-profile flagship
Reuben Adams
THE Nimbus mine – a stone’s throw from
Kalgoorlie-Boulder and its well-known
Super Pit – produced 3.6 million
ounces of silver at an average grade of
352 grams per tonne between 2003 and
2007. Due to a string of private owners
the mine enjoyed a low profile until
recently, when Macphersons Resources
acquired it as part of the highly
prospective Nimbus-Boorara tenements.
Since then Nimbus-Boorara has
enjoyed the limelight, as Macphersons
works toward a 2015 production
date. The project parameters at
Nimbus-Boorara have evolved in the last
couple of years, from a large scale open
pit mining model to a more underground
focus. In February 2013, as the silver
price pushed north of $30 per ounce, the
company green-lit a silver superpit at
Nimbus after pit optimisation studies
on the recently upgraded resource
confirmed the original two open pits at
Nimbus could be merged.
In 2014, the company moved away
from this large scale open pit mining
model, and the project now comprises
two mines, just 2km apart. Boorara’s
258,000oz gold resource complements
the silver-dominant Nimbus, which hosts
resources and reserves of 4.9 million
tonnes grading 149g/t (23.4 million
ounces of silver equivalent) and 1.126mt
grading 298g/t (10.8moz silver equivalent)
respectively. Between Nimbus and
Boorara, Macphersons has designed six
open pits and two underground operations.
These initial mine designs and
schedule support a five-and-a-half year
mine plan with all-in cash costs ranging
between $12/oz to $16/oz silver and
$600/oz to $1050/oz of gold. However, at
Nimbus this was calculated to just 260m
depth – recent drilling at both areas has
further extended mineralisation, and an
upgraded resource looks imminent.
According to Macphersons
managing director Morrie Goodz,
the company changed its focus from
Drilling at both Nimbus and Boorara returned significant and unforseen results in the March quarter
JULY 2014
Between Nimbus and Boorara, Macphersons has designed six open pits and two underground operations
being only open pit to underground
because of an extremely high grade
orebody under the two pits at Nimbus.
“When we did scenario analysis we
found that there were much higher MPVs
if those two pits were completed earlier
and we transitioned those two mines
to the underground,” Mr Goodz said.
“That’s not to say that the other pits
won’t go underground at some time in the
future, but these two pits in particular were
very high grade, which is why we will focus
on moving those two pits underground.”
Drilling success
The March quarter of 2014
was significant for Macphersons
and its flagship project.
A diamond drilling program, designed
to complete banking feasibility study (BFS)
parameters for the Nimbus underground
mine design, intersected significant
silver-zinc sulphide and native silver
mineralisation. In fact, all drill holes
extended known mineralisation; supporting
the underground mine model and showing
that the lenses remained open at depth.
Subsequent to the March quarter,
the company reported preliminary
assays from a deep EIS hole, which
confirmed mineralisation 210m down
plunge of the existing resource, with the
potential for 130 per cent depth extension.
NBDH035, the final hole in the 2014
Nimbus drilling program carried out for BFS
sign-off, intersected the longest continuous
mineralised zone of the program – 62m of
silver-zinc mineralisation with grades of up
to 550g/t silver-equivalent, from 165m to
226m.
The main zones included 18m at 227g/t
silver-equivalent from 167m and 26.7m
grading 212g/t silver-equivalent from
188.3m.
The high grade results from preliminary
assays on NBDH035 occurred at the depth
of mine development where design is
transitioning from open pit to underground
mining. Mr Goodz said the final hole – which
had a twofold purpose – had both met and
exceeded expectations.
“One was to confirm the resource model
below the discovery pit and it did that, so we
were very satisfied; it validated the model,
it showed how robust the model is, and it
gave a lot of confidence to the team and, in
particular, the independent consultants that
have to sign off the review,” he said.
“So I think that was fundamentally very
important in achieving that objective.
“The second thing is that the intersections
were extensive and high grade in nature – it
www.miningoilgas.com.au
was the longest intersection we had had in
the drilling.
“They are quite high grades; high
in the silver and they were also high
in the zinc, and within those there were some
extremely high grade zones.
“We had a couple going
between 300g/t and 500g/t of silver
and between 5 and 10 per cent zinc.”
Mr Goodz also said that an ongoing 12 hole
geo-technical drilling program at Boorara to
define pit parameters had, so far, returned
some unforeseen success.
“It’s a program where we are drilling the
outside of the pit wall, and it’s not generally
anticipated that you would hit mineralisation
there,” he said.
“But 26m below the pit floor we
encountered a zone of mineralisation in three
quartz main structures, which contained
visible ore over a thickness of 21m.
“This drives us to do more drilling under
the pit floor, and there is an opportunity that
we will deepen the pit.”
A deep pit, which would extend the life
of the operation, is something Macphersons
would evaluate as it moves forward.
“But we’re very excited with that; it’s
something we didn’t anticipate in that
particular drill hole,” Mr Goodz said.
“We actually extended the drill hole 80m
deeper than the original design because it
was still in mineralisation and still in the ore
host rock.
“What that meant was that we had 104m
down hole thickness of the mineralisation
and certainly there’s a lot of scope
to add a next resource reserve update.”
Moving forward
In 2014, some important near term milestones
at Nimbus-Boorara include the BFS, due
for completion in the next quarter; funding
negotiations with a number of financial
institutions, to be finalised very soon; and
BFS documentation for the Nimbus-Boorara
processing facility, which is on schedule for
completion in the third quarter this year.
According to Mr Goodz, if everything fell into
place, the current timeline would position
first production somewhere between late
in the third quarter 2015 and the fourth
quarter of 2015.
“That’s essentially our schedule
for Nimbus – to bring that
production on late next year,” he said.
“At the end of this year we would like
to have completed mine finance for the
go-ahead for the mill construction and that
we have added all the long lead items, and
we’ve commenced the site works.
“We have already put into place a lot of the
long lead items and the preparations for the site
construction, and it’s a matter of turning the
key, so that’s where we’d like to be by the
end of the year; the key has turned and the
construction has started.”
A softer market could also benefit
the company, resulting in lower capital
expenditure than it would have two years
ago.
“The competitiveness in the market has
without a doubt shown that the price of many
services related to mining and support has
decreased in cost,” Mr Goodz said.
“That competition is healthy and has
allowed the market to correct itself.
“It gives great opportunities for
projects that are ready to go now to
get some very competitive rates, and
we have seen that most definitely with
the number of the rates and the quotes
that we have put out for tender.
“We imagine that that process
will continue in the current
market for some time, so we hope to
capture that cost-saving benefit.”
65 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

COMPANIES GEARING UP

Industry leaders praise fatigue management seminar

A recent two-day seminar focussed
on fatigue management has
empowered individuals and
organisations to improve on-site safety.
The seminar, hosted by world-leading
Fatigue Risk Management System
(FRMS) solutions supplier Integrated
Safety Support (ISS) was well received by
government and industry participants.
The seminar was a “great balance
of science, technology, systems and
people aspects – the ‘go to’ seminar for
starting/refining your FRMS journey”,
according to Zurich Financial Services
senior risk engineer Peter Johansson.
SAFEmine Technology general
manager Graeme Corbet called it “clear,
concise, relevant and fun”, while Ok Tedi
Mining senior employee assistance
program counsellor Allan Tagai said he
learned a lot about issues caused by fatigue.
“The broad issues, covering ranges
of industries globally, gives the
picture that it will take time and
effort to establish fatigue management
in the workplace,” Mr Tagai said. A recent fatigue management seminar by Integrated Safety Support was well received by participants
“This seminar helped me to see that.”
Department of Infrastructure and and collect current data. valuable, very practical and transparent newsletter on the ISS website.
Regional Development Heavy Vehicle McAleese Resources health safety and discussions and presentations around For information about the next FRMS
Regulation assistant director Tonia environment manager Peter Pill called industry challenges, leading technologies event, the Fatigue Insider half-day
Bergmanis praised the seminar’s it one of the best events he had attended. and approaches” according to Fatigue Management Workshop, held
“broad range of presenters and The relevant, practical and informative Downer Mining regional health in two Australian locations in March
thoughtful, interesting presentations” seminar was “a must for OHS/human advisor Natasha Palenthorpe. 2015, email details (including discount
while Powerlink Queensland system factors professionals” according to To receive occasional updates code TAMR2014 for a 10 per cent
controller Nev Sprott said the event former Rio Tinto Global principal about fatigue management straight discount) to the ISS events email
provided an outstanding opportunity to adviser fatigue and human performance to an email inbox, interested parties address in the advert on page 4.
network with FRMS industry leaders Ian Dunican, and incorporated “‘highly can sign up for the Fatigue Insider

Working closely with clients to successfully deliver projects

FOR more than 30 years Perth-based construction of crushers, stackers and design review, project execution, and operating systems and processes, and
civil construction company Nino reclaimers, bridges, wharves, underground troubleshooting prior to project start-up. adopting an innovative approach to
Constructions has worked hard tunnel systems and train unloading It is able to scale up and down project management. Team members are the key to
to establish a reputation for high facilities. dependency, while providing continuity and the company’s success – from management
quality work, often completed ahead of Recognising that all projects are unique, consistency in management and workforce down, all members share responsibility for
schedule and with a strong safety focus. Nino Constructions works closely with due to the company’s strong business model. the success of a project.
Operating predominantly within clients on all levels to successfully deliver Nino Constructions has become a With an unwavering commitment to
the resources sector, the company has on its commitment – on time and on budget. preferred mining industry civil contractor safety, Nino Constructions consistently
undertaken a range of projects both The company ensures early involvement by engaging a workforce that is experienced delivers a service of the highest quality, on
within Australia and overseas, including with clients on projects to assist with and professional, developing modern time and within budget.

Nino Constructions has worked on numerous resources sector projects in Australia and overseas
66 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

COMPANIES GEARING UP

Transport company built on mining roots

WA transport company Thomson Coachlines
provides five-star luxury coaches to meet a
range of transport requirements, with safety
and reliability at the heart of its business
ethos.
With roots in the earthmoving industry,
Thomsons began providing transport services
to the mining industry in 1978 and serviced
the Dampier to Perth gas pipeline in the early
1980s. The business was involved in logging
and sawmilling in the 1990s and progressively
extended its coach transport business into the
resources and tourism sectors.
Today, Thomsons operates a fleet of
coaches and buses for hire, charter and rent,
varying in size from 12 seats through to 61
seats. It can supply vehicles with or without
drivers; new coaches for long term operations;
and fly in, fly out or shared-time drivers, with
new vehicles arriving daily.
Thomsons has been involved in a number
of large projects, including transporting
the largest single contingent of tourists –
totalling 5500 people – into Perth at one
time; the rebuilding of Boddington gold mine;
the construction of the Karara mine; and
construction and operation of the Midwest
Vanadium mine.
Thomsons runs vehicles throughout WA,
and through to South Australia. It has a
network of depots across WA and if there isn’t
one where it’s needed, Thomsons will build
one.
Thomsons’ facilities, expertise and
management ensure an unparalleled level
of continuous, high quality service. With a
substantial capital and management base for
expansion, the company will – when necessary
– acquire vehicles to suit a customer’s needs.
All of Thomsons’ vehicles have GPS
monitoring and tracking to provide data on
location, speed and performance for total
peace of mind, making Thomsons a leader
in mine site safety and performance. The
company was recently awarded the 2013
Professional of the Year for the Transport
Services Industry, once again highlighting its
industry-leading operations.

Online tax return service ensuring peace of mind

AUSTRALIAN family owned and
operated business Online Tax Australia
has one mission – to make individual tax
returns easy, convenient and affordable.
The Online Tax Australia service was
established in May 2010 by BMS Taxation
Services, a business founded by brothers
Brendan, Michael and Stephen Moran.
The brothers are all qualified as
either Chartered Accountants (ACAs) or
Certified Practicing Accountants (CPA),
each boasting more than 20 years of
experience providing taxation (individual,
company and trusts), accounting, business
planning and management services.
The Online Tax Australia service
was developed to enable individual
customers to easily complete and
lodge annual tax returns via a proven,
secure and Australian Taxation Office
(ATO) approved service, for a fixed, tax
deductable $49 fee (excluding returns
with rental property or sole trader
business schedules).
Customers receive access to highly
qualified, very experienced professional
advice at no extra cost, access to
customised and state-of-the-art software,
a helpdesk service and advice notes and
videos. All returns are reviewed by a
qualified tax agent before they are lodged
with the ATO, to ensure customers receive
their maximum refund entitlements.
If the review raises any questions, an
Online Tax Australia representative will
contact the customer before lodging the
return. Importantly, review, advice and
follow up questions do not result in any
increases to the fixed fee.
The company’s focus on providing a
friendly, uncomplicated, convenient and
affordable service ensures its customers
enjoy absolute peace of mind when it
comes to their individual tax returns.

Safety sign specialist offering custom fabrication

ESTABLISHED in 1981 just
outside Perth, Safety Signs Service
has become WA’s premier safety
sign manufacturer and distributor.
Safety Signs Service prides itself
on providing a broad range of quality
identification products designed
to keep Australian industries safe.
The company manufactures its signs
in WA using quality local materials,
and boasts a range that complies with
the Australian Standard AS 1319.
Safety Sign Service specialises
in custom fabrication, including the
manufacture of one-off products
such as specialised materials, sign
frames and banners for safety, advertising
or displays.
Safety Signs Service’s signs are just the
start of the company’s effective safety program
for work sites: its extended range includes
custom products and a wide range of ground
safety products that complement messages
conveyed by signage and reduce exposure to
hazards.
Interested parties can call the
company’s customer service team
or visit the Safety Signs Service
website for further information. Safety Sign Service’s products are manufactured to a high quality from local materials

High strength fasteners for Australia’s toughest industries

ONE of Australia’s largest suppliers of tooling repairs and, in the event of
specialised fasteners to a wide range extended repairs, the company can
of industries, including railways, provide tooling on a for-hire basis.
engineering and construction, Profast Profast’s team of dedicated
has warehouse facilities in Brisbane and technical staff has a reputation for
Perth, and representation in Sydney. providing sound advice on fastener
Profast has a strong, established solutions for use in even the most
history of supplying manufacturing demanding industrial settings.
industries with a comprehensive The Ornit range of high strength
range of quality, labour-saving fasteners 4.8mm to 10mm-diameter blind
in a range of materials. structural rivets is just one example
The company’s two warehouses of the industry-accepted products and
also stock a range of industry brand names that Profast represents.
accepted, reliable heavy duty
installation tooling brands including
FAR, Gage Bilt, Huck and Avlock. A high strength
Profast endorses tooling support: it join with a 7.8
millimetre steel
employs in-house repair technicians
Orlock structural
and stocks a wide range of spare parts blind rivet
for the tools it represents. Profast
guarantees fast turnaround times for
68 THE AUSTRALIAN MINING REVIEW
COMPANIES GEARING UP
Aussie steam cleans mine equipment
A super heavy duty Aussie Hydrotek 5000psi
steam cleaner is heading for the Hastings
Deering depot in Tabubil in PNG.
The big, super rugged machine will be used
to clean the extensive range of Caterpillar
plant operating in and around the mine site.
The range of equipment is huge:
dump trucks, D9s and a lot of other
plant and equipment must be kept in perfect
Aussie Pumps’ Hydrotek 5000 psi steam cleaner makes short work of pre-maintenance cleaning
Lift and shift expert sponsors conference
THE Crane Industry Council of Australia’s
(CICA) annual conference is set to take
place from 24 to 26 September at All Phones
Arena at Sydney Olympic Park. Kennards
Hire Lift & Shift is proud to announce its
status as a conference platinum sponsor this
year.
Industry members will converge on
Sydney for the 2014 CICA conference to
Award nominee for civil construction excellence
ACROSS its 25 year history, SEE Civil
has completed major infrastructure,
mining earthworks, quarry crushing
and screening works, subdivisions and
masterplanned community projects
for a myriad of clients, including
Queensland’s Department of Transport
and Main Roads, Boral, Stockland,
Abigroup, Lendlease and Bechtel.
Since its incorporation, SEE Civil
has obtained national pre-qualifications
Mobile camps offering flexibility for remote projects
A new plug and play worker
accommodation model from Ausco
Modular is providing the critical
infrastructure needed to support remote
projects, which require fast mobilisation
under tight time constraints.
The new product, Ausco Mobile, allows
companies to arrive and occupy a camp
JULY 2014
working order, in spite of weather conditions;
that’s when the Hydrotek steamer comes into
its own.
The heart of the big machine is an Aussie
Hydrotek 5000psi Kubota diesel-powered
steam cleaner. The steam cleaner melts
grease and dirt, with the pressure and flow
of the pump – 20 litres per minute flow at
5000psi – delivering a huge wallop that
meet, network and discuss new technologies
and business opportunities.
Kennards Hire Lift & Shift is a long time
supporter of innovation and has developed
many strong, collaborative relationships
since its incorporation in 2003. One such
project saw Kennards Hire Lift & Shift and
Pacific Hoists join forces with JD Neuhaus
to introduce a cordless pendant hoist that
from the Federal Safety Commission
and Austroads for civil (road and bridge)
construction contracts, as well as meeting
all Australian Standards requirements for
occupational health and safety, quality
and environmental management systems.
In the past few years, the civil construction
industry has seen an increasing focus on
environmental management, from both the
private and government sectors. SEE Civil
has met this challenge by expanding its
for one stage of a project, then efficiently
move the camp to another location.
The camps have an installation
turnaround of as little as two days,
compared to several months for
traditional camp installation.
“This is an ideal solution for projects
which need to be mobilised quickly and
blows caked mud off equipment to allows
service technicians to operate with maximum
efficiency.
The 20 horsepower Kubota diesel engine
delivers loads of power to a huge triplex
pump with ceramic pistons.
The machine comes with e-stop and a
specially engineered stainless steel rain cap
over the burner exhaust to keep moisture out
was an Australian first.
Kennards Hire Lift & Shift general
manager Andrew Lambert said Kennards
Hire Lift & Shift’s capacity for innovation
made it a valuable presence at the 2014
CICA conference.
“At Kennards Hire Lift & Shift, we believe
that the key to success is to understand what
the customer needs,” Mr Lambert said.
operator training and awareness, evaluating
its project management processes, and
establishing specific environmental
management plans before any
works are completed onsite.
SEE Civil has worked in many
environmentally and culturally sensitive
areas; most recently completing projects
in Cardwell, North Queensland and
Kirkwood Road in Tweed Heads,
NSW. Within these zones, SEE Civil
for remote areas that lack sufficient
accommodation,” Ausco Modular
strategy and business development
director Ben Knight said.
“These camps are specially
designed to endure rugged locations
and multiple moves over a short
timeframe, while still providing high
www.miningoilgas.com.au
of the heater coil system.
The Hydrotek boasts an infinitely variable
heat controller that enables operators to
dial any temperature from ambient to 130
degrees Celsius. Operators generally run
the machine at about 90 degrees Celsius
– providing a combination of high water
pressure and very high temperature without
pressure being dissipated by the machine’s
water flow turning into steam.
The Hydrotek machine is supplied with a
1000 litre (270 US gallons) poly tank equipped
with suction filtration. Its stainless steel
hose reel is rated to 5000psi and capable of
operating at temperatures as high as 130
degrees Celsius.
The machine is also equipped with 60m of
high pressure, non-marking, 5000psi steam
hose that enables operators to work around
the machine without having to move the
steamer while its wash function is in action.
The Hydrotek’s tank, diesel steam cleaner
and reels are mounted on a purpose-designed
heavy duty hot galvanised trailer that has
a steel checker-plate floor and heavy duty
drawbar.
The trailer has twin torsion tube axles and
a mechanical parking system, with off-road
‘Land Cruiser’ style wheels and tyres supplied
as standard. The trailer features excellent
ground clearance for negotiating rugged
terrain.
The big trailer mounted Aussie Hydrotek is
the latest innovation from the Aussie Pumps
design team. It is expected to be of real interest
to big plant operators, hire companies and civil
engineers involved in mining, infrastructure
and road maintenance.
Further information about the Hydrotek
is available from Australia Pump Industries
by phone, or from the online Aussie Blaster
Blitz catalogue on the company’s website.
“We pride ourselves on our relationships
with customers, and we try to improve and
broaden those relationships constantly. The
only way to achieve that is through a well
maintained network.
“That’s why the CICA conference is so
important to us, and why we’ve decided to
get on board as the platinum sponsor in
2014.”
incorporated tailored environmental
plans into its project management,
while completing culturally sensitive
negotiations with Traditional Owners.
SEE Civil’s achievements at both
Kirkwood Road and Cardwell have
since been recognised by industry,
with both sites receiving nominations
for the Australian Civil Contractors
Federation’s prestigious Earth Awards,
to be judged and awarded later this year.
quality buildings and services.
“Not only can our customers expect
efficient construction but they know
that their workforce is adequately
housed, nourished and rested, aiding
in overall productivity, with Ausco
Modular’s full turnkey service and
standard camp inclusions.”
www.miningoilgas.com.au
COMPANIES GEARING UP
Mining junior, not a junior miner
IN the midst of mining industry
doom and gloom, Karbine Mining PNG
(KMP) is running its own race.
KMP may be a newcomer to the mining
game and Papua New Guinea, but the
company brings with it innovative
solutions and a culture of success.
The company acquires resources that
have been developed to a preliminary
Global restructuring process focussed on customers
A reorganisation in 2014 will see Sulzer
consolidate its business interests into a
more unified brand. Headline changes to
the organisation’s two major divisions
include making the Pumps Equipment
division more market focussed and
moving the service aspect of the pumps
business into a combined Rotating
Equipment Services division to serve
customers as one company.
Sulzer offers a large number of
complementary products and services
Optimised blasting process increasing mining efficiency
MINING companies constantly seek
to increase operational efficiency,
and specialist contractor Action Drill
& Blast has increased its focus on
value delivery – responding to market needs
with a superior blasting process.
“Blasting is the first step in the mine
process. Get that right and the cost savings
will flow throughout the rest of the mine life,”
Action Drill & Blast general manager Warren
Fair said.
“We focus on providing precision blasting
to achieve efficient rock breakage and higher
quality ore, thereby maximising the return
from the ore body.
“Our advantage is that we want to find
better ways of doing things – continual
improvement is very important to us.”
Mr Fair said the company’s
innovative approach, combined with its
commitment to safety, maximised successful
blasting outcomes.
“The quality of our blasting package equates
‘Outside the box’ thinking to handle changing market
PERTH-based Equiprent continues
to establish itself as a leading
earthmoving equipment rental
market specialist for the mining and
civil projects sectors across Australia.
Equiprent’s mobile plant
hire business operates from the
company’s head office in Maddington
alongside a major branch in Port
Hedland, which includes a multi-bay
workshop and large hardstand area.
The company has been contracted
by a range of mining clients for
Calibration expert prioritises quality customer service
WITH a commitment to customer
satisfaction as its number one priority,
HK Calibrations offers expert instrument
calibration and repair services for all
instrument types, including test and
measurement instruments.
HK Calibrations recently moved its
Perth premises to a new facility in Bibra
Lake, allowing it to provide a single,
centralised point of contact for its WA
customers who can now have their
instruments calibrated in one place rather
stage and rapidly advances them
to operations. By prioritising rapid
ramp up of low cost operations the
company is able to generate significant
free cash flow – which is used to create
long term value through exploration.
Following the early 2014
commissioning of its Parchee gold mine
in northern PNG, the company is already
– aspects of the business that the
company wants its customers to be
able to understand clearly and engage
with more easily. The new structure
allows the organisation to deliver more
relevant services from a single point of
contact, allowing it to increase sales by
making the business more transparent
and providing customers with a
simpler, more streamlined interface.
The ultimate aim is to increase the
convenience of working with Sulzer,
to faster, more cost effective blasting,” he said.
Action Drill & Blast currently provides
blasting services to the Roy Hill rail
project, where it is trialing the effectiveness of
a hybrid product in harder rock.
“The trial at Roy Hill is showing a lot of
benefits and would also be well suited to gold
projects,” Mr Fair said.
“We’re very happy to engage
in technical discussions and trials
with suitable partners interested in
learning more about our approach and the
benefits it delivers.”
Mr Fair said the Action team
would drill and blast about 3 million
bank cubic metres of rock during its six month
contract at Roy Hill, covering more than
170km of rail cuttings.
“Our clients have a single Action staff
member as their point of contact, but the
expertise of a 300-strong team at their
fingertips, and we pride ourselves on our
flexibility and responsiveness,” he said
earthworks projects of all types, including
mining, mining infrastructure, road
construction, tailing dams, overburden
cut backs and run of mine feed operations.
Equiprent works closely with
its current and prospective client
base, employing flexible ‘outside
the box’ thinking to meet the challenges
of a changing market in 2014.
“Our goal moving forward is to provide
the quality of products and services that
our clients have come to expect from
Equiprent without losing focus on the
than sending them to the eastern states.
Along with promoting the WA
economy, the enhanced facility in Bibra
Lake has assisted HK Calibrations
in maintaining its commitment to
unmatched service turnaround times.
HK Calibrations offers a full spectrum
of calibration services for a range of
equipment including electronic and
electrical, pressure gauges, hard gauges,
flow measurement, telecommunication,
weighing and temperature, gas
THE AUSTRALIAN MINING REVIEW JULY 2014
in the process of doubling the size of
that operation and developing a second
operation.
KMP chief executive Rob Foster said
that too many juniors were focussed on
what used to work, instead of thinking
about what they could do differently to
be successful in the coming years.
“A mining company is no different to
thereby saving time and making the
professional lives of those who work
with Sulzer more efficient and effective.
The unification process has led to
a new set-up including a Rotating
Equipment Services division and a
Pumps Equipment division. Integrating
all services for rotating equipment
means that a customer operating a power
plant can turn to Sulzer for servicing,
maintenance and repair of a turbine,
plus associated generator and ancillary
Action Drill & Blast provides precision blasting services for efficient rock breakage and higher
quality ore
Since beginning operations in early 2010,
Action Drill & Blast has consolidated its
reputation as a superior drilling and blasting
contract service provider. The company has
fact that we are now catering for new
challenges faced by our clients in mining
and mining construction projects,”
an Equiprent spokesperson said.
The company continues to be a single
point of call for the supply and support
of mobile equipment dry hire units,
including wheel loaders, dump trucks,
graders, dozers, excavators, water
carts and other ancillary equipment.
Equiprent can be reliably called
upon to help clients minimise downtime
and meet critical project deadlines,
monitoring, dumpy levels, surveying
equipment, and occupational
health and safety equipment.
All work performed by HK Calibrations
conforms to ISO/IEC 17025 – 2005
standards – the premier ISO standard
governing the operation of all certified
laboratories, inclusive of the reporting
of uncertainties of measurement
for each calibration undertaken as
required by this standard. The
company’s turnaround time in
69
any other business – it needs competitive
advantage and it needs a sustainable,
resilient business model,” Mr Foster
said.
“Our model generates revenue
first and builds the asset value second.
“Too many miners are attached to
the ‘spray and pray’ model of grabbing
land and hoping they get lucky.”
power transmission equipment. The
Pumps Equipment division portfolio
ranges from highly engineered and
customised to configured products,
spare parts and offers retrofit solutions.
A dedicated focus on the equipment
business, continued technology
leadership, strong customer relations
and a global manufacturing including
test bed network are seen to be key
factors in serving customers locally and
globally.
worked with many civil and mining clients
across Australia including Fortescue Metals
Group, Downer EDI, Macmahon, NRW and
John Holland.
with both the flexibility to respond
quickly and the management expertise
to assist with long-term planning.
The company believes that a
longstanding, highly skilled and efficient
workforce has been a key factor in its success,
providing dry hire, logistics and site support
to remote locations across the country.
“We have many loyal, reliable and
long term employees with outstanding
industry knowledge and experience,
which are of indispensable value to
the company,” the spokesperson said.
most cases is 48 hours, which is an
added commitment to its level of service.
The company also performs onsite
calibrations that can save clients
downtime at economical rates.
HK Calibrations’ business
management system is maintained to
SAI Global ISO 9001:2000 standards.
For added assurance that the company
is focussed on delivering the best
level of quality service every time, it
performs an instrument calibration.
70 THE AUSTRALIAN MINING REVIEW JULY 2014
RECRUITMENT
Recruitment activity remains strong
ACCORDING to the 2014 Hays Salary Guide,
62 per cent of employers in the Australia
and New Zealand resources sector intend to
increase salaries by less than 3 per cent in
the coming review period, while 20 per cent
intend to increase salaries by between 3 per
cent and 6 per cent.
The Guide’s positive outlook is further
supported by 86 per cent of employers foreseeing
stable or increased business activity in the
next 12 months: despite many of the current
headlines about the end of Australia’s mining
Small agency making its mark in mining
PROFESSIONAL recruitment agency
Taurus Recruitment provides all levels
of experienced industrial personnel.
Specialising in the mining sector, Taurus’
clients include both open pit and underground
operations.
Recent work at a large open pit gold
mine in Kalgoorlie saw Taurus work with a
client’s internal recruitment team across the
site’s ramp up. As the client sourced local
permanent candidates, Taurus efficiently
supplied interim fly in, fly out staff. This
Workforce solutions based on experience and innovation
SERVICING the mining, gas, resources and civil
industries, One Key Resources is a specialist
provider of workforce development, labour hire,
recruitment, animated training technology and
production improvement solutions.
The company works closely with its clients
to achieve their desired production outcomes
while solving their short and long term staffing
boom, recruitment activity remains strong in
certain areas of the industry.
In WA for example, production rather than
exploration is the focus for employment. A
steady iron ore price coupled with a forecast
for strong medium-to-long-term demand
from China continues to generate robust
employment activity in the Pilbara. In North
Queensland, the metalliferous market has
steadily recovered and Hays has seen increased
demand for temporary technical white collar
candidates. In the Bowen Basin, candidates
allowed the client to meet its immediate
production needs, while still honouring its
long term obligations to the local community.
Managing director Angela Hall started
Taurus in 2012 to provide premium
recruitment services at low cost and quick
turnaround – even if it meant working
weekends or holidays.
“In my previous work I have seen waste
of funds, lack of drive, lack of specialist
knowledge in the staff, and high overhead
costs,” Ms Hall said.
requirements through attracting, screening,
selecting, training and retaining a highly skilled
and advanced contract labour workforce.
One Key Resources is based in Brisbane,
with regional offices in Perth and Cairns
servicing the key coal, iron ore and hard rock
mining areas of Australia and providing a base
for the company to service major regional civil
with experience in coal mining are continuously
sought after.
Nationwide, where there is demand it is for
experienced blue and white collar operations
and maintenance staff – plant operators,
fitters, technical services, trainers and safety
professionals, as well as facilities staff to
support the workforce. However, employers in
each specialist field face an attraction challenge
as they often compete with each other for the
best specialist skilled talent. A major focus, in
turn, is in up-skilling and training existing staff.
“I knew I could do this more effectively
myself.”
Her friendly and bubbly personality is
backed by hands-on experience and in-depth
knowledge of the mining industry and
equipment.
“Low overheads allow a reduced profit
margin. This translates to the lowest charge
rates to clients and the highest pay rate to
our workers,” Ms Hall said.
Taurus does not require clients to lock
into long term contracts to receive low rates.
infrastructure projects.
The company has an international office in
Singapore, to provide industry specific training
solutions and local workforce development
programs, including its animated training
technology, globally.
Overall, One Key Resources aims to be a
partner in its clients’ total staffing, training
www.miningoilgas.com.au
Hays understands the recruitment
pressure points and drivers in mining,
working in partnership with the industry.
It provides permanent and temporary
staff for every stage of the mining process
at projects across Australia with owner
miners, explorers, contractors and mining
consultancies, and is trusted as the mining
recruiting expert.
Interested parties can visit the Hays website
or speak to a local Hays recruiting expert to find
out more about the company’s services.
Taurus
Recruitment
managing director
Angela Hall
and production needs, from placing short term
supplementary personnel to providing highly
skilled managed workforce solutions with
supervision and training. The company strives
to establish unique business partnerships with
its clients, providing solutions and services
based on its experience in the market and
innovative new ideas.
www.miningoilgas.com.au THE AUSTRALIAN MINING REVIEW JULY 2014 71
COMMERCIAL BOILERS & HEATING SYSTEMS

Underfloor heating systems tried, tested and proven

UNDERFLOOR heating specialists
Warmtech ensure luxurious, all-over
warmth radiating from the feet up.
Warmtech systems are safe,
unobtrusive and cost effective – a small
room can be heated for less than the cost
of three 100 watt light bulbs.
The company’s heating systems also
pose no threat to safety, and are approved
and certified to Australian, New Zealand
and international safety standards.
The heating elements are laid directly
under tiles, carpet or timber, and are
easily installed into new or existing homes,
into an individual room or as a primary
heating source for the whole house.
Once installed, Warmtech heating
requires absolutely no maintenance.
It is simple to operate – users
just set the controls to the preferred
comfort level and enjoy.
Warmtech custom-laid heating
elements allow full coverage of the
floor, making tiles warm, attractive and
practical all year round. At a fraction of
the costs of conventional heating, floors
can act as a radiant heat source.
Underfloor heating enhances the
natural beauty and practicality of a floor
covering with the comfort, safety and
efficiency of a tried, tested and proven
heating system.
Warmtech has heating experts
nationwide, who can provide more details
on the company’s heating systems.

Warmtech heating is simple

to operate and requires no
maintenance once installed
72 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

CARAVANS, CAMPERS & MOBILE MINING CAMPS

Turnkey solutions for workforce camps

A provider of complete or partial
workforce camp solutions, Mobile
Accommodation Camps and its
associated companies have a proven
track record of delivering high quality,
reputable products on time and within
budget. The company hires more than
1200 rooms for workforce camps across
Queensland, the Northern Territory and
WA.
A recent example of Mobile
Accommodation Camps’ work was a
200-person camp required by a WA client
with substantial operations in the Tom
Price area. The camp was hired to the
client through Mobile Accommodation
Camps and set up by its sister company
QSD Works in three weeks – a set up
that included 200 rooms, laundries and
associated facilities as well as water,
power and sewerage.
In partnership with its associated
group of companies, Mobile
Accommodation Camps performs one
or all of the following services on
site, providing a turnkey solution for
workforce camp needs: sales of rooms and
facilities, through King Caravans; hire
of rooms and facilities, through Mobile
Accommodation Camps; installation
of rooms and facilities, through
QSD Works; and full management
of workforce camps, through Camp
Management Services.
The group’s key product is Australian
made and manufactured in Queensland
by King Caravans. The camps are
completely mobile and fast installation is
available. The accommodation rooms are
comfortable and modern, with standard
inclusions such as air conditioning,
ensuites, TV and DVD players, fridges,
desks and wardrobes. They are built
tough to withstand movement and use Mobile Accomodation Camps provides comfortable and modern rooms
on the rugged roads of rural Australia,
and where required their engineered
anchor tie down systems can be utilised
to secure the rooms in the event of a
cyclone.
Facilities on offer include designs
both with an ensuite and without,
accommodation rooms with queen
or king-single bed configurations,
laundries, recreation rooms, commercial
kitchens and dining rooms, crib rooms,
amenities blocks, training rooms, first
aid stations and site offices.
To accommodate its clients’ needs,
King Caravan offers both a standard
range and custom designed options.
For clients preferring to hire rooms and
facilities, Mobile Accommodation Camps
has a new mobile fleet of accommodation
rooms and is able to install or deliver
these anywhere in Australia on short
notice, for a competitive price. Mobile
Accommodation Camps can also hire
any of the facilities from King Caravan’s
range.
Camp Management Services offers a
range of management services including
accommodation management, catering,
program maintenance, housekeeping
and cleaning, groundskeeping,
maintenance and security services.
Camp Management Services has a
reputation for excellence in safety and
complies with all relevant Australian
standards.
Through its partnership with its
three associated companies, Mobile
Accommodation Camps is uniquely
placed to deliver top quality products in
a timely and competitive manner.

Mobile Accomodation Camps recently

completed a 200-person camp for a WA client
74 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

CARAVANS, CAMPERS & MOBILE MINING CAMPS

Caravans built to suit desired size, layout and style

SINCE its inception, Lotus Caravans
has continually redefined off-road
caravanning, elevating it to new levels
of reliability, comfort and style.
Each van is meticulously hand-crafted
with outstanding attention to detail,
earning Lotus Caravans a reputation
for industry-leading standards and
world-class quality.
Lotus Caravans was established in
Melbourne in 2004 and is now renowned
for its unique designs and modern style.
With between 300 and 400 units built
each year, the company is able to focus
on the needs and desires of its customers.
While the four existing Lotus
Caravans models are already packed
with features, they can be further
tailored to suit individual requirements
and tastes – from opulent luxury to
full off-road accessibility, or a perfect
combination of both.
The top-quality materials and
exceptional workmanship behind the
range deliver a caravanning lifestyle
that’s second-to-none – in the country,
by the coast, through the outback or on
the grand tour of a lifetime that so many
people dream of taking.
From their custom made chassis to the
tiniest rivet, no detail of a Lotus caravan
is left to chance: quality, reliability and
attention to detail underpin every model.
Since its first day in operation,
Lotus Caravans has been committed
to producing the highest standard of
caravans for its customers; to this day,
every van the company produces is
individually designed and built, with
each part ordered specifically to suit the
desired size, layout and style.
Lotus Caravans has a
reputation for world-
class quality

Personalised planning and manufacture of portable onsite accommodation

INNOVATIVE accommodation and core
portable camp solutions are a fundamental
requirement for mine sites across
Australia. Within the harsh and remote
landscapes of mining camps, tough yet
comfortable accommodation and shelter
is a necessity, to provide employees with
functional protection from the elements
and premium comfort for periods of rest.
Elross Caravans is a leading
manufacturer of custom-built off road
caravans, tailored to the needs of
Australia’s remote industrial sectors
including mining, construction, drilling
and exploration, road maintenance and
telecommunications.
With its personalised planning, Elross
can design and build specialist trailers
to suit its clients’ exact needs – including
roadside or accommodation vans, executive
site vans or lunchroom vans.
All Elross vans are outfitted with a
tubular, galvanised steel chassis for rough
off-road work; HD springs and brakes;
wheels and tires to suit a tow vehicle;
multi-volt external LED lighting; and
either 240 volt or 12 volt internal lighting
systems.
Clients can choose between two
construction frameworks, including either
a steel frame with internal wall ply and
outside aluminium cladding, or 50mm
colour bond steel sandwich panels. The
company offers comprehensive design
services with no restrictions on layout.
With 30 years of industry experience,
Elross is a premium choice for quality
commercial and industrial caravans.
Elross caravans are built tough and can
be freighted anywhere in Australia.
76 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

CARAVANS, CAMPERS & MOBILE MINING CAMPS

Mobile units as tough as the outback

THE mobile accommodation and
utility units provided by Geostar
Mobile Solutions are designed and
manufactured in WA for use in the
exploration, drilling and mining stages
of the resources industry.
The Geostar Explorer range is
built tough to withstand the rigours
of travelling to and from some of the
most remote areas of Australia, while
providing staff with safe and comfortable
facilities onsite.
The Geostar Homesite range is
intended for use where there is a
requirement for immediate or additional
temporary accommodation in the
construction and civil engineering
industries. It offers a cost effective
solution to mobile accommodation needs
and will provide a cool, comfortable and
safe environment for onsite teams to
relax in.
By using the latest construction
innovations in the production of both
ranges, Geostar is able to supply a
vehicle that offers amazing sound
and thermal insulation. The Geostar
units are extremely strong yet
lightweight, allowing them to be towed
by a Landcruiser or similar. Most
importantly, the units allow for reduced
maintenance costs, extended lifespan
and solid resale values.
Geostar also offers custom design
and build services to meet the client’s
requirements.

Efficient modular buildings ideal for camps

WHILE Sydney-based architectural firm
Ardomex is a young company, its senior
management have decades of experience
in the design of lightweight, efficient,
affordable and robust modular building
solutions.
The Ardomex design portfolio
includes mining villages in Queensland
and northern NSW, a number of holiday
and eco-tourism parks, and traditionally
built residential projects ranging from
large country residences, additions and
extensions to granny flats and home
office studios.
The company’s designs are created
by experienced architects and interior
designers, and project managed by
qualified and experienced professionals.
They offer full support to nominated
project builders.
Ideal for regional and remote camps,
Ardomex’ modular solutions are gaining
traction with Queensland mining
companies.
“There is a potential costs saving for
clients that are planning large projects,”
Ardomex project manager Martin Weiss
said.
“The savings on labour costs by
freighting in pre-manufactured
components can be anything between 30
per cent and 40 per cent.”
The modules, which are prefabricated
and arrive on site for rapid assembly,
boast excellent thermal efficiency
properties which make them ideal
for hot weather climates – leading to
energy savings with minimal cooling and
heating requirements.
“We guide the client through the An Ardomex eco village design
entire design and documentation stage,”
Mr Weiss said. attention to the brief.” know works – it has proven track record.”
“We draw the plans and design the “We don’t do modular solutions
village and the buildings, paying close exclusively, but it’s something that we
78 THE AUSTRALIAN MINING REVIEW
CARAVANS, CAMPERS & MOBILE MINING CAMPS
Explorex Caravans is a favoured brand for heavy duty off-road, dirt road and mining conditions
JULY 2014
Simple turnkey solutions for
remote environments
UTILISING mobile wagons and a plug
and play modular camp system, Cedrent
provides simple yet effective solutions for
remote environments.
Cedrent’s camps provide a turnkey
solution and are easily moved using light
vehicles with no need for heavy trucks
or cranes. The company can mobilise
and demobilise the camps or manage the
process using the client’s own people and
Durable and stylish portable
accommodation tailored for mine site use
TOUGHER by design, Explorex
Caravans are built using a fully welded
steel frame that provides the strength
needed for true off-road use.
With quality materials, design, and
workmanship, Explorex’ designs are
able to tackle any of Australia’s most
rugged and harsh regions. The brand is a
favourite for use in heavy duty off-road,
dirt road and mining conditions,
combining hardy, functional driving
capabilities with stylish and comfortable
living quarters.
Explorex’ caravans all feature full
steel wall and roof frames, a hot dipped
galvanised chassis, and plywood cabinets
equipment if preferred.
Cedrent has supplied wagons and
camp solutions across Australia to
exploration and mining companies. Most
recently, Cedrent was involved in a Far
North Queensland site where it supplied,
commissioned and managed a fully
operational 30-person camp (which was
increased to 50 people) for an ASX-listed
oil and gas exploration company; and with
– all screwed and glued together, with
no use of staples. Standard features
include heavy duty suspensions; one
piece aluminium roof sheets; a fully
welded steel frame structure; solid
12mm plywood timber furniture; full
ensuites on all domestic models; LED
lights with 12 volt smart charge systems;
and solar-ready domestic vans.
Explorex has been employed as the
preferred transportable accommodation
choice for a range of Australian mining
projects including Western Desert
Resources’ mines across the Northern
Territory; AngloGold Ashanti’s
Tropicana JV; Fortescue Metals Group’s
www.miningoilgas.com.au
a US exploration company for the supply
and commission of a fully operational
30-person camp in one of the most remote
locations in Australia.
Cedrent camps are simple, safe,
reliable and highly mobile, reducing
mobilisation and ongoing running costs
whilst offering the client the highest
quality accommodation and associated
infrastructure.
Christmas Creek and Cloudbreak mines;
Atlas Iron’s Pardoo mine; Sandfire
Resources’ Doolgunna mine; and Sirius
Resources’ Norseman mines.
With more than 12 years of experience
and more than 100 mining clients,
Explorex vans are the van of choice for
the mining industry. The company’s
vans are built to last, featuring a 10
year structural warranty as standard.
Explorex welcomes the opportunity
to provide stylish and functional
accommodation facilities to Australia’s
wider mining industry.
80 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

CARAVANS, CAMPERS & MOBILE MINING CAMPS

‘Plug and play’ solution for rapid deployment

Australia’s largest logistics
specialist Toll has developed a range of
cost effective and efficient mining camp
solutions.
To enable its customers to focus on
their core operations, Toll has developed
fully self-sufficient mobile camps,
designed to ensure maximum efficiency
and safety.
The integrated trailer solution
incorporates ‘plug and play’ capabilities,
allowing for rapid deployment and
relocation to almost any location.
“We understand the importance of
having a robust and reliable camp –
that is why we have built our camps
in Queensland using locally sourced
equipment and materials,” a Toll
spokesperson said.
“Our solution is more than a donga on
wheels. It is a complete service offering
that utilises our extensive logistics
network in Australia.”
Working in remote environments with
very little support means that quality
materials and good engineering are
critical to ensure camps are reliable and
safe.
Toll has removed many of the health,
safety, environment and community
risks commonly found in standard camp Toll has developed a range of fully self-sufficient mobile camps to ensure maximised safety and efficiency
offerings.
For example, it uses AS3001-compliant Mobile operations traditionally incur “Its staggering when you multiply camp is significant as the only thing
electrical equipment, self-acquiring large costs during the mobilisation and the savings that one move using Toll you will require is a prime mover rather
satellite dishes (rather than rooftop TV/ demobilisation of equipment. Toll’s solutions could represent,” a Toll than the additional equipment required
data aerials), and its kitchen trailers solution is a trailerised, fully integrated spokesperson said. to move a traditional camp (eg trailers,
include back-up diesel motors, which camp which provides rapid and cost “The cost savings of moving a Toll cranes, frannas etc).”
turn on in the event of power failure. effective camp relocation. mobile camp operation to a traditional

Toll’s trailerised, fully integrated camp solutions provide quick and cost-effective relocation
82 THE AUSTRALIAN MINING REVIEW
VEHICLE FITOUTS
The potential of telematics to improve business insights
THE potential of telematics or GPS
fleet management systems has moved
beyond the simple tracking of a
vehicle’s location; they are now a way
for businesses to reduce overheads and
enhance fleet operations and efficiency.
For businesses in the mining industry
this can mean a competitive advantage in
the ever-growing market.
Using telematics systems such as
Navman Wireless’s GPS fleet tracking
systems, businesses can analyse the data
Mine vehicle and tool box provider expanding across Australia
TRUCK and trade tool box specialist
Red Flag Industries manufactures
and distributes a premium range of
off-the-shelf mine service vehicle and
trade tool boxes, truck and trailer tool
boxes, and hydraulic oil and water tanks
JULY 2014
their devices collect to gain added insights
that can identify inefficiencies and
assist in reducing company costs, while
ensuring complete fleet visibility. This
added business insight can also be used
to encourage changes in driver behaviour,
fleet conditions, fuel consumption and
maintenance schedules.
To best leverage a telematics system,
businesses need to first understand
their company’s internal requirements,
and the benefits they want to drive. For
for clients across Australia.
Red Flag Industries is supported by
key franchises on Australia’s east and
west coast, with a primary client base
consisting of leading reseller networks
and locally-based original equipment
example, this could include improving
driver behaviour – such as addressing
unnecessary idling time to lower fuel costs
– and managing driver fatigue to ensure
health and safety policies are met. The
data collected can also provide insight
into trends within the business for specific
time periods, such as vehicles that require
regular maintenance and the reasons
why. Identifying the information needed
to make appropriate business decisions
from the outset makes understanding
manufacturers. The company remains
committed to expanding its distribution
and availability throughout all states,
including regional Australia.
Red Flag has developed its broad
range of mine service and trade
www.miningoilgas.com.au
data collected from the telematics system
a less daunting task.
Implementing a telematics system can
result in improvements in productivity,
improved compliance with safety
legislation and company policies, and
improvements to both customer and driver
satisfaction. The systems’ data allows fleet
managers to determine how to utilise their
assets to their maximum capability, which
can prove to be a key point of difference in
the competitive mining environment.
toolboxes to meet the diverse needs of the
mining industry and the tradespeople
who work within it. The company offers
a range of options, from value through
to high-end, including shelving and
multiple draw sizes.
www.miningoilgas.com.au
BUS & COACH SERVICES
Bus and coach builder has client needs covered
FAMILY owned and operated Omnibus
Services has fulfilled WA’s bus and coach
needs for more than 55 years.
Omnibus Services was established in
1995 as part of the Pryor Family Group,
operating from a facility in Canning Vale.
The group continues to build new buses that
rival national and international competition,
as well as undertaking refurbishment works
Luxury coaches with premium value for money
OPERATING one of the most modern coach
fleets in the Wide Bay Burnett region,
Bundaberg Coaches puts a high emphasis on
passenger comfort and safety.
While the company’s major focus has been
extended holiday and recreational touring,
Bundaberg Coaches has proven its worth to the
local mining and resources sectors, providing
regional staff transport services.
“With our speciality being long distance
Safe and hardy transport solutions for tough environments
QUEENSLAND-based All Terrain
Warriors (ATW) manufactures specialised
four-by-four and four-by-two mine buses for
commercial drilling, mining and mineral
exploration companies.
The company’s ATW buses are renowned
worldwide for their safe operation and tough,
long lasting construction that performs
consistently well in extreme landscapes and
highly corrosive environments.
All vehicles – which incorporate specially
such as structural modifications, seat and
seatbelt retrofitting, school bus conversions,
wheelchair accessibility, accident repairs
and spray painting.
The company also undertakes
miscellaneous work including installation
of side luggage bins and interior luggage
racks; pre-licence inspections and repairs;
air conditioning installation; addition of
travel with purpose built coaches, the decision
to move into this industry was an easy one,”
Bundaberg Coaches operations manager Jason
Beresford said.
“Securing long-term contracts to transport
personnel has been a pivotal aspect of the
transition and has only been possible by
providing outstanding service.”
Bundaberg Coaches places a keen
focus on value and innovation, with Wi-Fi
developed passenger modules – are based
on Japanese and European four-by-four and
four-by-two truck chassis, which are commonly
available through existing dealer networks.
The new Modular Bus series – the end result
of a complex engineering process – involved
the infusion of various structural cores and
weaves of fibreglass matting along with vinyl
ester resin. The result is a lightweight, super
strong product that stands up to the harshest
conditions. No metals are used in the body,
THE AUSTRALIAN MINING REVIEW JULY 2014
reversing cameras and sensors; retrofitting
of TVs, LCD monitors and DVD systems;
and fitting of bullbars and towbars.
“The reputation Omnibus Services has
built over the years comes through our
recognising the importance of accepting
advice from customers in the early years of
development and implementing their advice,
which gave us a unique understanding to
internet-enabled coaches, in-seat USB charging
ports and an all-new, industry-leading wireless
entertainment system that allows passengers
to enjoy on-demand content using their
personal devices, currently being rolled out.
All coaches have spacious, reclining seats
as standard; seat belts, arm and foot rests;
tinted windows and curtains; air conditioning;
on-board toilet facilities; and television and
DVD entertainment facilities. Coaches are also
which means nothing will corrode or deteriorate.
Destructive roll over and seat anchorage tests
were also completed with amazing results – in
fact, the same body was used for both tests as
the damage was so minimal.
ATW buses can seat between 10 and 48
people, and can be converted to a mobile
crib room or mobile communication centre
on standard four wheel drive or two wheel
drive chassis – offering a solution for every
requirement.
85
build a bus body that suited the needs of the
customer and suited the environment which
the bus was to operate in over many years,”
the company stated.
Omnibus Services has built more
than 300 buses for both the government
(Transperth, WA Police, Victoria Police)
and the private sector (including the mining
industry).
equipped with state-of-the-art safety features
as well as plenty of underfloor storage for
luggage and other equipment.
With its premium standard services and
features, Bundaberg Coaches is an easy
choice for economically-conscious mining and
resources companies looking to provide their
bus in, bus out staff with safe, comfortable
transport that represents fantastic value for
money.
ATW developed heavy duty off-road
suspension systems and super single rear
wheel conversions. This resulted in a quantum
leap forward in the conversion of the Fuso
FG’s and Isuzu NPS into formidable off-road
commercial trucks with a level of comfort not
normally found in a four wheel drive truck.
These are also available in kit form and can be
purchased and fitted through the company’s
extensive Australia-wide dealer network,
which is detailed on its website.
86 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

PAYLOAD MONITORING
www.miningoilgas.com.au
PAYLOAD MONITORING
Empowering operators to
achieve optimal payload
THE challenge for all mining operations
has been to become more efficient and to get
the most value from their equipment. This
means keeping costs down and productivity
high. This end goal is not new or novel – it
is what has driven companies such as RCT
to innovate.
The RCT Payload Monitoring System
provides the information required to
Payload measuring systems
increasing productivity
A market leader in onboard weighing, Trimble
Loadrite provides payload measurement
systems to measure material movement
in mines, quarries, construction, and other
operations worldwide.
Its wheel loader, excavator, and conveyor
belt scales give operators the tools they need
to maximise production and the data needed
to measure performance.
Trimble Loadrite has a global support
network and all products are backed by a
parts and service warranty.
The Trimble Loadrite X2650 scales for
large excavators is one of the recent products
released by the company. The X2650 ensures
accurate and instant haul truck payload
weight data, helping mining operations
increase productivity while reducing
THE AUSTRALIAN MINING REVIEW JULY 2014 87
assist in alleviating wastage associated
with sub-optimal loading, and the costs
associated with premature wear and tear
caused by imbalanced or over-loaded loads.
RCT’s payload monitoring and reporting
technology is unique in that it empowers
operators to achieve the greatest results
of efficient utilisation of haul trucks at any
mining operation.
operational costs.
“The X2650’s ability to deliver accurate
weight information for every bucket of
material loaded makes it stand out from other
products,” Trimble Loadrite product manager
for excavator scales Gordon Hain said.
“Until now, most mining operations have
relied on payload systems on haul trucks to
measure payload weight. In contrast, by using
the X2650, which is fitted to the excavator,
operators can accurately measure each bucket
load of material before it is put into the truck.
“This puts the power back into the hands
of the operator, allowing them to make better
decisions.”
Trimble Loadrite will showcase its product
range at the upcoming QME and Mining &
Engineering NSW shows.
88 THE AUSTRALIAN MINING REVIEW JULY 2014
FOUNDRIES & CASTINGS
Tough solutions increasing life for bearings
FOR more than 100 years, James Coppell
Lee Australia has served the domestic
market with non-ferrous products.
Operating from a modern custom built
factory in Melbourne, the company
provides certified products throughout
Australia and to clients worldwide.
A manufacturer and supplier of high
quality sand and centrifugal castings,
forgings and wrought products, James
Coppell Lee Australia serves a wide
range of industries including mining, oil
Leading business built on lasting relationships
THROUGH its long history of
manufacturing resin coated sands,
Beckwith Macbro Sands has established
strong ties with leading Australian sand
producers. Today, the company relies on
these relationships to supply the local
and international oil and gas markets
with a range of resin coated Frac sand.
As a result of many years supplying
Iron, steel and white iron castings supplied to mining client specs
FOR a supplier that’s easy to
deal with, delivers promptly and
supports its products, customers
can not go past IXL Metal Castings.
The IXL foundry manufactures high
quality iron and steel alloyed castings
utilised by clients in the service, water,
mining and resources industries.
and gas, aerospace, defence, marine, and
agriculture.
James Coppell Lee Australia senior
sales manager John Grogan highlighted
ToughMet, an alloy that offers major
benefits compared to traditional bronzes,
as one of the company’s best-selling
products.
Mr Grogan said that in bearing
applications ToughMet could be a direct
drop in replacing steel, aluminium
bronze, phosphor bronze , manganese
the foundry industry Beckwith Macbro
Sands is able to supply a high quality
resin coated Frac sand to the oil and gas
industry from its manufacturing plant
in Melbourne.
The company’s Frac sand comes is
supplied in a range of grades, using
locally sourced proven silica material in
the standard grades of 12/20, 16/30 and
IXL’s castings can be supplied in
a raw or painted state, machined to
customer specifications, and supplied in
short delivery times.
Its products include: mill liners and
furnace items in low to medium volumes;
transmission housings, manifolds and
brake parts for underground mining
bronze and other bronze alloys.
“You just need to change the
drawing spec to ToughMet and you are
guaranteed a far longer life of not only
the bearing, but often the mating part as
well,” he said.
“This results in less downtime and
consequently, less cost.”
Published testimonials have cited
the increased life of product when using
ToughMet at up to five times that of the
traditional bronzes.
20/40. Beckwith Macbro Sands also has
the facilities necessary to produce other
grades as required by its customers.
Its laboratory facilities test
continually to ensure that the sand
produced meets quality specifications.
The foundry division of Alan
Beckwith Macbro manufactures a wide
variety of Iron and SG Iron castings
machinery; axle housings and transfer
cases for dump trucks; bullbar mounts
for heavy road trucks; suspension parts
for highway trucks; pump and valve
bodies for the water and slurry pump
suppliers; and syphon pipes, troughs
and ingot moulds for Australian and
international aluminium smelters.
www.miningoilgas.com.au
“ToughMet is widely used by major
manufacturers of mining equipment for
new and replacement parts,” Mr Grogan
said.
“Boeing and Airbus use it for landing
gear bushes and the application that always
provokes interest – it was used for the
bearings on the Mars rover.”
Mr Grogan explained that ToughMet
worked well without lubrication, which
is why it was chosen to be used on Mars.
up to 2000kg for industries such as
automotive manufacturing, mining and
engineering.
Its pattern shop can produce all
patterns in a variety of materials, to
suit different applications. The foundry
also specialises in the manufacture of
pulleys of any size to 2000kg, with no
patterns required.
The company is certified to
9001 Quality Standard specifications
and 14001 Environmental Standard.
IXL customer support manager
Ron Geurts welcomes confidentiality
agreements and supplier audits
to assess the capabilities, practices and
business systems of its foundry.
90 THE AUSTRALIAN MINING REVIEW
WATERPROOFING MATERIALS
Niche supplier servicing range of industries
Founded in 1994, Robbins Industrial
Services is a niche supplier of specialised
products servicing the commercial
construction, mining, petroleum and
offshore industries, both in Australia
and overseas.
“At Robbins Industrial Services, we
strive to maintain our market leadership
in both the supply and installation of
our product range and back that up
Quality workforce support for Australian operations
SPECIALIST service provider
Polyseal has a workforce that
consists of experienced construction
professionals engaged in Australia’s
mining, industrial, power, water and
infrastructure sectors. Polyseal prides
itself on providing qualified project
managers and administration staff to
support clients’ project objectives. The
company’s experienced trade personnel
maintain the technical expertise and
know how to plan and execute complex
projects within existing infrastructure
and ongoing operations. They strive to
deliver required project outcomes in
the key performance areas of program,
quality and, above all, safety.
Polyseal recently completed several
projects for Rio Tinto Coal and Allied’s
Mt Thorley Warkworth and Hunter
Valley operations – both large open cut
operations in the NSW Hunter Valley
region that produce more than 10 million
tonnes of coal per annum.
Polyseal initially completed a major
JULY 2014
with on-going support and outstanding
customer service,” the company stated.
“We are passionate about offering
Australian manufactured products to
our marketplace with safety, quality and
environmental considerations always at
the forefront of any products we supply.”
Robbins Industrial Services
specialises in the provision of passive
fire protection products including
concrete repair project on one of two
run of mine bins on site at Mt Thorley
Warkworth. The bins were assessed and
found to be suffering serious deterioration
due to the presence of coal dust and
moisture, acquired from the site’s dust
suppression system across many years.
Subsequently, Polyseal removed and
replaced a complete concrete floor slab
covering more than 3000 square metres
of workshop area in one of Coal & Allied’s
heavy vehicle workshops at the Hunter
Valley Operations. The project involved
interactions and planning around the
ongoing maintenance operations of the
site’s heavy vehicle fleet – no mean feat
in a workshop that services one of the
biggest haul truck fleets in the country.
Currently, Polyseal is engaged by BHP
Billiton at its Mount Arthur mine near
Muswellbrook, where it is completing
the internal coating and concrete repair
works to a 700m long pre-cast concrete
export tunnel – a critical piece of
infrastructure for the site that is in use
hydrocarbon and JetFire seals and
jackets, acoustic and thermal insulation
products, WARM Trace systems
products and commercial and industrial
waterproofing solutions.
“We have been involved in many
facets of the building construction
industry since 1975 and bring to our
customers a vast range of knowledge
and expertise to assist with the many
24 hours a day.
The project requires the Polyseal
team on site to liaise on a daily basis
with production staff to ensure the job
is completed with no impact on the
production capacity of the mine. Access
and isolation procedures were developed
in consultation with the client’s reps,
specifically to ensure the safety of the crew
working on site in a live environment.
Illustrating the broad range of services
offered by Polyseal, the company is also
currently engaged by both Coal and Allied
and Glencore Xstrata on various sites
where mitigation works are required.
Its teams routinely undertake works to
residences close to mining operations
to ensure that the impacts of mining
activity do not impact the occupiers.
At each residence Polyseal has
removed existing windows and replaced
them with new double glazed units for
greater sound and thermal insulation.
It has also installed new thermal
insulation in roof spaces and cleansed
www.miningoilgas.com.au
and varied applications encountered.”
“We are a corporate member of the
Fire Protection Association of Australia
and a signatory to their code of ethics.
This enables our large clientele to feel
secure in the knowledge that our advice
and products will meet the fire rating
requirements specified when installed
correctly on their projects by our
certified applicators.”
Polyseal prides itself on it’s capacity to meet
clients’ objectives
the residential water supply system,
including rain water tanks and roof
perimeter gutters. Concrete footings and
slabs have also been installed to support
new air-conditioning units and solar
panel banks. Polyseal’s engagement
in this field requires thorough liaison
with property owners and occupiers, to
arrange access to undertake mitigation
works, as well as liaison with client
project supervisors regarding progress
and budgets.
92 THE AUSTRALIAN MINING REVIEW JULY 2014 www.miningoilgas.com.au

TATTOO REMOVAL
www.miningoilgas.com.au THE AUSTRALIAN MINING REVIEW JULY 2014 93
HIRE & RENTAL SERVICES
94 THE AUSTRALIAN MINING REVIEW JULY 2014
HYDRAULICS
Proven quality brand products for power generation
FAMILY owned generator and load bank
specialist Generator Power provides
quality branded products for power
generation – including products from
the US, Europe and Japan, as well as
its own range of custom-built products
made in its workshops across Sydney
and Brisbane.
Generator Power ensures premium
quality generator products and services
across the spectrum of industries
and applications – including mining,
agriculture, construction, IT and data
centres, telecommunications, health
care, university and TAFE campuses,
airports, residential off-grid standalone
power systems, and commercial mobile
vehicles.
The company is a proud supplier
of power generation systems from
multinational Spanish company
Himoinsa. Incorporated in 1982,
Himoinsa has established itself as an
international manufacturer through its
continuous modernisation of production
processes, the incorporation of innovative
new technologies and its consistently
reliable product performance.
The leader in enclosed-type
High tonnage jacking and lifting system increases safety and productivity
THE Enerpac Synchronous Lifting
System from Victoria-based
company Hydraulic and Pneumatic
is one of the world’s most advanced
heavy lifting systems, ideal for a
range of resources sector applications.
The user-friendly Synchronous Lifting
System ensures that operations are
managed from a central control position
generators, Himoinsa only uses engines
from globally trusted manufacturers
including Yanmar, John Deere, MTU,
Mitsubishi and Scania.
Generator Power’s Himoinsa supply
also includes the new model Himoinsa
diesel generators. Powered by Yanmar’s
economical and reliable diesel engines,
Himoinsa’s new model generators
provide an ideal power solution for
residential back-up, construction sites,
mining, IT back-up and prime power
applications.
With a super quiet enclosure, single
point lifting frame, bunded fuel tanks,
Yanmar durability and fuel economy,
Himoinsa’s Yanmar powered diesel
generators are also fitted with key
switch remote start controllers, battery
isolators and circuit breakers as
standard, with optional weatherproof
outlets.
Generator Power’s coverage
extends across all of Australia and the
surrounding islands. Its wider range of
products and services includes both new
and used diesel, gas, mobile and petrol
generators in open, enclosed and custom
built containerised configurations;
by a single operator for improved
safety and operational productivity.
Additional benefits include precise
control of multiple lift points; safe
and efficient load movement; and
in-built monitoring and data recording.
The system synchronises up to eight
single and double-acting hydraulic
cylinders, using stroke-controlled
Generator Power is a proud supplier of power generation systems from Himoinsa
automatic transfer switches, including
single and three-phase open and closed
transition; resistive load banks from
20kW to 1MW, including auto-load
movement to manage load
positioning to within 1 millimetre.
The lifted load is weighed using
pressure transducer readings at
each lifting point, and the centre of
gravity is calculated. An emergency
stop mechanism ensures the
hydraulic power is stopped and the
lifting points are supporting the
load in an isolated condition.
The Enerpac Synchronous Lifting
System is used for bridge lifting,
launching and repositioning; controlled
movement and positioning of heavy
The Enerpac Synchronous Lifting System is ideal for resources sector applications
Industry specialist providing
off-the-shelf hydraulic tanks
NOT only has Red Flag Industries developed
a reputation as a specialist distributor
of truck and trade tool boxes, but also as
a leading manufacturer and distributor
of one of the largest ranges of
off-the-shelf hydraulic oil tanks in Australia.
In conjunction with Australia’s
leading reseller networks and locally
based original equipment manufacturers
and key franchises on the east and
west coasts of Australia, Red Flag has
worked since 2004 to develop its
broad range of hydraulic oil tanks.
The company’s tanks can be separated
www.miningoilgas.com.au
shedding options; contract maintenance;
service and repairs, 24 hours per day,
seven days per week; spare parts and
generator hire.
equipment, buildings, concrete segments
and other construction components;
structural testing in civil engineering;
and lifting, weighing and determining
the centre of gravity – but the
possibilities it offers are truly endless.
The experienced employees at
Hydraulic and Pneumatic boast
more than 100 years of combined
experience supplying and servicing
hydraulic and pneumatic equipment,
and its service team includes
a core group of engineers who can
quickly respond to customer needs.
into three styles: V bottom tanks in 23l,
45l, 68l, 90l or 136l; round chassis mount
tanks in sizes between 40l and 250l;
and behind-the-cab heavy duty Space
Saver tanks in 200l or 250l.
Red Flag’s hydraulic oil tanks are
either finished in black powder-coated
steel or polished aluminium,
depending on the tank size and style.
Red Flag aims to provide tanks
that meet the standards and
specification needs of its customers,
and can handle some of
Australia’s toughest conditions.
www.miningoilgas.com.au
INDUSTRIAL RECYCLING
Recycling the past to preserve the future
ESTABLISHED in Sydney in 1917, Sims
Metal Management has grown to become
one of the world’s largest publicly listed
metal recyclers, employing more than 6,000
staff across 250 sites on five continents.
While its core business remains in
metals recycling, Sims Metal Management
also operates a global e-recycling
business, providing environmentally
responsible solutions for ‘end-of-life’
electrical and electronic equipment.
Sims Metal Management prides
itself on its enviable reputation for
quality, aiming to meet and exceed
customer expectations by adhering to
stringent domestic and international
specifications.
Sims Metal Management has
contracts with some of Australia’s
largest companies – including Toyota,
Total recycling solutions reduce environmental footprint
WASTE is the bug-bear of any
industrial site, especially in mining.
The high overheads and heavy footprint
this often entails has caused
growing concerns to the industry.
Companies such as Rio Tinto are now
implementing Total Recycling Solutions
(TRS as supplied by Garbex Australia)
to address this with outstanding results,
diverting recyclables from landfill.
BHP Billiton, Rio Tinto, Woodside,
Aurizon and Queensland Rail. The
company has the infrastructure to
accommodate a comprehensive range of
recycling services – each team across
Australia has access to high-tech
processing technologies and metal
recycling facilities.
Sims Metal Management is WA’s
largest metal recycler. With its head
office in Spearwood, Perth, and seven
facilities throughout the wider state –
including WA’s major regional areas of
Port Hedland, Karratha and Kalgoorlie
– the company is well placed to provide
a professional solution for all recycling
needs.
The company’s Queensland team is
based at Rocklea, Brisbane, with a large
range of equipment at its disposal –
Balers, glass crushers and food digesters
can reduce waste volume by up to 90
per cent. This astonishing figure meets
increasing demands for efficiency while
creating a cleaner, safer environment.
Garbex, the sole suppliers of TRS in
Australia, offers a wide range of products,
including their popular GB200 Multi Baler
which allows the simultaneous sorting
and baling of recyclable waste such as
THE AUSTRALIAN MINING REVIEW JULY 2014
including the latest material handling
excavators with grab, shear and magnet
attachments. Regional operations
include Gladstone, Mackay, Townsville
and Cairns.
Sims Metal Management has
three major processing sites in NSW,
including St Marys and Milperra in
Sydney, and Kooragang Island in
Newcastle. These sites are supported
by a network of feeder yards throughout
NSW and the Australian Capital
Territory, to provide specialised
metal recycling equipment anywhere
in the region. Sims NSW contains
a breadth of experience across mining,
demolition and consumer sector services.
Sims Metal Management’s services
are also available from 10 convenient
yards across Victoria and Tasmania.
cardboard, plastic wrap, PET bottles,
cans and steel drums. Other specialist
products handle glass, polystyrene and
food waste. Electric utility vehicles collect
waste from around the campsite and bring
it back to a central processing hub, further
reducing a site’s environmental footprint.
TRS is tailored to every site. It is
able to use machines that best fit the
site requirements, from small compact
96
From its head office in Brooklyn,
Victoria, the team offers a wide range
of services, carried out with the highest
safety and environmental standards.
The Victoria-Tasmania team uses
recycling and technical logistical
solutions customised to client needs.
Sims Metal Management’s South
Australian head office and major
processing facility is in Wingfield, while
its main Northern Territory facilities
are based in Winnellie. Regional
SA operations include Gepps Cross,
Lonsdale, Roseworthy and Murray
Bridge.
Sims Metal Management provides
efficient and effective industrial
recycling services, to maintain a safe
and clean environment – now and into
the future.
balers and bin lifters through to
complete site packages including solar
powered emergency showers and electric
rubbish trucks. Garbex provides full
on-site training and installation – its
balers are all IP55 rated, making them
an ideal choice to ‘plug and play’.
Interested parties can contact Garbex
directly to discover how Garbex TRS
could save them time and money.
98 THE AUSTRALIAN MINING REVIEW
PATENT & TRADEMARK ATTORNEYS
JULY 2014
Incremental developments in mining
technology increases efficiency
DECADES-old techniques and technologies
are still used in today’s mining industry to
locate, mine and process available resources.
While there have been major
developments, particularly in automated
processes, it has been suggested that
innovation in the mining industry has been
a ‘slow burn’.
These developments have been
incrementally introduced into an
industry that is increasingly dependent
on technology to sustainably increase
yield, reduce costs and better utilise
available resources or waste products.
Intellectual property protection
importance to be showcased at QME 2014
THE growing importance of
intellectual property in mining has
been widely discussed in recent years.
In 2014, the issue will be highlighted
at one of the industry’s largest
gatherings, the Queensland Mining
and Engineering Exhibition.
Patent and trademark attorneys from
Fisher Adams Kelly will use a stand at the
biennial industry meeting to showcase some
of the Australian companies in the sector
that have employed intellectual property
Phillips Ormonde Fitzpatrick Partner
David Tadgell has filed patent families
relating to all aspects of mining and
mining technology. Mr Tadgell said that
to protect the research that went into new
innovations, a number of companies have
historically benefited from a ‘picket fence’
strategy for patent protection i.e. developing
a patent portfolio to capture the incremental
developments around certain technologies.
He cited heap leach or
atmospheric leach technologies as
an example of recent developments
in known extraction techniques,
protection to maintain a competitive edge and
develop new revenue streams.
The Fisher Adams Kelly stand will aim
to encourage debate around the issue of
intellectual property protection, and the
company’s specialist mining team will be on
hand to discuss their real-world experiences
in workshops and on site.
A detailed information sheet, featuring
practical tips and sector case studies,
will also be available from the stand.
Established and based in mineral-rich
www.miningoilgas.com.au
where an old technology was developed to
make it applicable to new fields.
Mr Tadgell said this strategy had
allowed both big and small entities to
either protect their interests, or create
opportunities to negotiate and partner
with other companies working in the
same technical field with the same
objectives.
He said mining companies should
consider utilising the patent system to
not only protect their ideas, but to potentially
use their patent portfolio as a means
to partner with other companies.
Queensland, Fisher Adams Kelly has
been integral to the protection of cutting
edge inventions across the mining
industry.
Its specialist attorneys were professional
engineers first, and continue to work at
the forefront of mining innovation with
companies including CQMS Razer and
Nautilus Minerals.
The stand at QME forms the latest in the
team’s efforts to support the industry with
straightforward and timely advice.
100 THE AUSTRALIAN MINING REVIEW
historical
Trio of disasters devastates historic mine
JANE GOLDSMITH
In the town of Springhill, Nova Scotia;
Down in the dark of the Cumberland mine;
There’s blood on the coal and the miners lie;
In the roads that never saw sun nor sky.
Down at the coal face the miner’s
working; Rattle of the belt and the
cutter’s blade; Crumble of rock and
the walls close round; Living and the
dead men, two miles down.
“The Ballad of Springhill” by
Peggy Seegar with Ewan McColl
THE work life of a miner has always been
dark and dangerous. The tunnels of an
underground mine can stretch to hundreds
of metres beneath the Earth’s surface –
or in the case of Canada’s underground
mines in Nova Scotia, they may stretch for
kilometres in deep, subterranean tunnels
beneath the floor of the Atlantic.
Mines are fundamentally dangerous:
dust explosions, falling coal and rock, and
gas asphyxiation have caused thousands
of people to lose their lives; others have
drowned, were caught in machinery or
hit by underground cars. Above ground,
mine processes have caused chemical
poisoning or burns, silicosis, and chronic
lung diseases.
Across three centuries of mining in
Nova Scotia, miners and quarrymen have
carried the consequences of mining’s
dangerous nature. Perhaps the most
noted arose at Springhill mine, with a trio
of mining disasters across a near 70-year
period, between 1891 and 1958.
Springhill mine disaster, 1891
The Springhill coalfields were
established in the nineteenth century.
Into the early 1880s, the mining groups
working the project – Cumberland
Railway and Coal Company – merged
into a single entity and established
three collieries across three coal seams,
at a cost of more than $1 million. About
2000t of coal was produced daily, and
employment numbers totalled
between 1300 and 1400 people.
On Saturday 21 February 1891, the
first and most deadly of Springhill’s
three tragedies occurred. Shortly after
the midday dinner, a fire was reported
400m below the ground in collieries
No. 1 and 2. The fire, ignited by an
over-accumulation of coal dust, swept
Bill Miller (left) and Don Ferguson, survivors of the 1958 Springhill bump disaster
JULY 2014
Springhill’s second mine disaster, reported in 1956
through the shafts joining the work sites
and climaxed into a massive explosion,
with tremors recorded on ground level.
“Eye-witnesses describe it as preceded
by a sudden gust of wind, which
swept like a tornado through the dark
passages, hurling timbers and clouds
of dust and flying missiles before it,”
H. A. McKnight recorded in his essay,
The Great Colliery Explosion at
Springhill (published March 1891).
“This was followed in a few seconds
by balls of fire, large and small, and
then came a solid body of fierce flame
that filled the passages, and literally
roasted everything in its path.”
Rescue efforts started quickly, bolstered
by the rapid rate the fire ceded, but the
scale of the disaster was unprecedented in
Nova Scotian or Canadian mining history.
“Cries for help could be heard, and men,
fleeing for their lives, howling frantically,
were met,” Mr McKnight wrote.
The death toll reached 125, with
hundreds more injured, and casualties
including children aged between 10 and 13.
“Before morning, the rescue
parties reached the explosion district,
which was literally covered with dead,”
Mr McKnight described.
“The men appeared as though
instantly killed. They were thrown hither
and thither by the force of the explosion.
With few exceptions their faces wore a
peaceful look, and there were evidences
of sudden death.”
Springhill explosion, 1956
Sixty-five years later, Springhill suffered
its second tragedy.
On Thursday 1 November 1956, a
mine train hauling coal dust to the
surface of the newer No. 4 colliery
encountered a heavy down-flow of air.
Disrupted dust was forced back down
the shaft by surface fans, which in turn,
spread throughout the wider shaft,
disrupting the other coal carts’ motions.
Several carts broke loose from the
track and fell back down the slope; carts
derailed sequentially, hitting a power
line, which ignited coal dust 1700m
below surface. A massive explosion
resulted, blowing the slope up to the
surface. On ground level, the additional
oxygen re-amplified the blast, levelling
the pithead and surface buildings.
Rescuers saved 88 miners,
Surface buildings at Springhill mine’s No. 3 slope, 1897
www.miningoilgas.com.au
however 39 were killed.
Following the rescue effort, Colliery
4 and the connecting No. 2 were sealed
for several weeks to deprive the fires
of oxygen. Upon reopening in January
1957, the bodies of miners who remained
below the surface were recovered, and
the two shafts were closed forever.
Springhill bump, 1958
Just two years later, Springhill suffered
its third and final disaster, known as the
Springhill Bump: the most severe ‘bump’
(underground earthquake) in North
American mining history.
Although the exact cause of
the bump remains unknown, when
coal is totally removed from a unit of
bedrock, the structural integrity of the
earth becomes compromised.
On Thursday October 23 1958, a small
bump occurred early into the evening shift,
around 7pm, but was ignored as such
instances were relatively common. An
hour later, a second bump of “enormous”
size occurred, spreading three distinct
shock waves throughout the coalfields.
The rescue mission began immediately
and continued for five days – efforts
were substantially slowed by the mine’s
precarious nature, including falling rock
and increasing dust concentrations.
The rescue process was widely reported
by international media, becoming
famous as the first major event to
appear in live television broadcasts.
On the 1 November, 10 days after the
incident, a group of 12 survivors were
found. Bodies of the dead were hauled
out in airtight aluminium coffins due to
the advanced progress of decomposition,
which was accelerated by the
Earth’s heat, 4km below surface.
Of the 174 miners in the colliery at the
time of the bump, 74 were killed and 100
were trapped but eventually rescued.
The bump was Springhill’s final
disaster, with all four shafts permanently
mine closed straight after the incident.
Aside from directly affecting the
people of Springhill, the bump also
devastated its greater surrounds as the
coal industry was its primary economy.
Today, Springhill mine is owned
by the government of Nova Scotia.
It is among the deepest in the world
and filled with water, and the site
provides Springhill’s industrial park
with a source of geothermal heat.
www.miningoilgas.com.au THE AUSTRALIAN MINING REVIEW JULY 2014 101

leisure
Wonders abound in London town
Emma Brown

MILLIONS of people flock to ye olde London

each year to take in its history, culture, people
and shopping. The vibrant city is bustling
with entertainment and is unsurprisingly
ranked number two in the Forbes “World’s
Top 10 Most Visited Cities”. It really has
something for everyone.
London is easily accessible whatever your
mode of transport. Load up your Oyster card
and experience the underground tube system;
hop on an iconic red double decker bus; jump
aboard a ferry; get on your bike, or simply
head off on foot.

See the sights

London is alive with culture and its history
is interesting and extensive. The best part is
that it doesn’t have to impact the hip pocket,
with majority of the museums offering free
admission. The biggest decision will be which
one to visit first: choices include The British
Museum, the National Gallery, the Imperial
War Museum and the Natural History
Museum.
Stop off at South Bank and stare at the
breathtaking views of the iconic Big Ben,
London Eye, St Paul’s Cathedral, Millennium
Bridge and the Thames. South Bank is also
home to an astounding number of diverse
events and attractions, especially on the
weekend, with many market stalls and
celebrations frequently appearing.
It’s not a trip to London without the
token photo outside Buckingham Palace,
where the Queen sometimes resides.
Tourists flock to the palace to witness the
changing of the guards each year. The
process, where a new guard changes duty
with the old guard, is accompanied by
the guard’s band and is quite different to
anything you’ll see elsewhere.
London is very easily accessible, and the
best way to see the city is with a walking
tour. Get out your comfort zone, get off that
bus and be at one with the city. Get up close
to the lion statues in Trafalgar Square, get
a photo inside an old red telephone box, see
London Bridge and walk across Abbey Road
– just like the Beatles did.
Shopping
You can’t visit London without exploring the
extensive markets on offer throughout the
city.
Vintage shoppers are in for a treat at
the Notting Hill markets, with many a
The Tower Bridge is a major tourist attraction All photos courtesy of visitlondon.com
second-hand treasure to be found. Camden
Lock Markets are often described as the
‘alternative market’ – the streets are lined
with clothing, food stalls and shops with
an array of unusual products. Shoppers
are literally in for a treat, at the Borough
Markets; home to purveyors of fine food from
all over the world, it’s the one-stop shop for
gourmet food. Head north on the weekends
to the Bricklane flea markets, or the nearby
Spitafields markets offering quality hand
crafted gifts. Final stop is Covent Garden –
once home to farmers, it now caters to arts
and crafts with plenty of street performers
providing entertainment for onlookers.
London is also known for its premier
shopping destinations. Simply head into the
famous Oxford Circus where the streets are
lined with designer brands and high-street
names such as Zara, Topshop and H&M. If
high-end fashion is your thing, step off the
tube at Sloane Square. No visitor can go
past historic Harrods – the building itself
(like much of the architecture in London) is
simply impressive and if you’re lucky you can
catch the in-store opera singer entertaining
shoppers on the escalators.
Food and nightlife
Visiting a city full of different cultures means
an array of food from all over the world.
London is home to many famous celebrity
chefs such as Jamie Oliver, Gordon Ramsay
and Heston Blumenthal. Take a quick trip
to Bricklane, which is famous for its curry –
and of course there is the traditional English
Sunday roast, which is available from any
pub on the day, and usually accompanied
with a pint of warm ale.
If you like the nightlife, if you like to
boogie, then London is the place for you.
Different areas cater to different types
of nightlife, and with pop-up bars and
underground clubs dotted everywhere you
might be surprised where the night will take
you. Clubbing culture is prevalent – the city
is home to popular nightclubs such as Fabric
and Ministry of Sound. London’s watering
holes are an institution; a culture in itself
where many Londoners choose to socialise
most days of the week.
If you like theatre, head to the West End
to take in a show or ten. London is home to
many musicals including Jersey Boys, Billy
Elliot, The Lion King, Phantom of the Opera,
Wicked and Roald Dahl’s Matilda. It’s hard
not to get caught up in the magic of it all.
Getting outdoors
If you time your visit right you could possibly
be sitting court side at the oldest tennis
tournament in the world – Wimbledon.
Ensure yourself a proper English experience
and enjoy the game with a glass of Pimms
and a bowl of strawberries and cream. Re-live
the 2012 London Olympics with a tour of the
stadium at Queen Elizabeth Park or catch a
game of football. Avid cricket fans would love
a tour of the Lord’s Cricket Ground.
On a sunny day, pack a picnic and enjoy
a leisurely afternoon in one of the pristine
parks or gardens. London’s parks are a hub of
activity in the warmer months and Richmond
Park, Hyde Park, Hampstead Health and
Kew Gardens are well worth a look.
Although summer is the preferable time
to visit, the city is truly magic all year round
– providing tourists with much to do and
see in all weather conditions. London and
its people simply transform on sunny days;
the atmosphere is vibrant, the pubs are
overflowing and the masses will be soaking
up the sunshine on every patch of available
grass.
Winter is also a real treat for those
not afraid of the cold – especially around
Christmas time, with decorations lining the
street, carollers spreading the yuletide cheer
and the Christmas markets in full swing.
Head to www.visitlondon.com for more tips.

London is renowned for its diverse shopping options An iconic telephone box Big Ben
102 THE AUSTRALIAN MINING REVIEW
the interview
Atlas Iron managing director Ken Brinsden
Independent iron ore company Atlas
Iron is a great WA success story. In less
than a decade, the company grew from
a from a six person business, to one
boasting a 300 strong workforce and an
extensive portfolio of projects across the
Pilbara and Mid West. Atlas managing
director Ken Brinsden spoke with
Jane Goldsmith about his career and
successes.
Q. What is your educational
background?
A. I’m originally from Sydney but
always had a connection to WA. My
mum and dad are from Kalgoorlie;
they did all their schooling there and
then studied in Perth. They travelled
overseas and just happened to land in
Sydney, which is where I completed my
high school certificate before moving to
Kalgoorlie WA. There I attended Curtin
University’s Western Australian School
of Mines (WASM) and in 1993 graduated
with a Bachelor of Mining Engineering.
Q. What steps have to taken to
reach your current role at Atlas
Iron?
A. After graduating from WASM,
I joined Western Mining (which
subsequently became WMC Resources).
I started in their graduate program
working underground. As a graduate,
I spent time at Olympic Dam and
the Kambalda nickel operation. It
was after this that I started working
professionally as a mining engineer at
WMC Resources.
My first significant managerial role
was in 1998 at Norseman Gold, I was 26
years old. The gold price back then was
about $250 per ounce – so these were
tough times and it was a real battle to
retain some resemblance of profitability.
This role was significant because
it was my first taste of what it would
take to be manager within the mining
industry, and also how to cope in
difficult times. I was in this role for two
years, and it was formative for me – to
understand how to take on responsibility
and what is required to manage people,
production output, safety and all other
things associated with mining.
I took on other similar roles over
the next 8 years, but then then
started looking for a change – for
something different that didn’t involve
underground mine management and
broadened my scope of work.
I accepted a role at Iluka where I
worked for about three years, which
involved project work and also starting
up new mines in central Victoria and
southern NSW. We were essentially
building a series of Greenfields mines
for Iluka’s Murray Basin development.
This was fantastic work experience,
particularly in a location where people
weren’t used to mining. I got a feel
for how to interact with communities
and how hard you have to work to
establish a good rapport. For me, it
built a broader perspective than just
being a mining engineer – I learnt
what it meant to be integrated with
communities, which is now integral to
Atlas Iron’s philosophy.
In 2006 when Atlas was just a newly
JULY 2014 www.miningoilgas.com.au
launched company, David Flanagan current times in much the same light. to take advantage of.
(whom I went to university with at The current market is challenging, but Q. How do you maintain
WASM) was the managing director and we have good assets, great people and a a balance between work and
he mentioned the company was looking strong strategy, so think there are still non-work life?
for a mining engineer with experience great opportunities ahead.
similar to what I had. I relocated back The nature of the market can be A. As any executive will tell you
to Perth with my family and it’s been very volatile and we are certainly in it’s not always easy to maintain a
non-stop ever since. I started in the one of those periods now. But we would decent work life balance – that is just
very early days of Atlas, I was about construct arguments that indicate one of the challenges that comes with
employee number six. Today we have the current price is not necessarily any senior position in and around the
about 310 full time employees and about representative of the norm, and we mining industry and, I’m sure, the wider
700 contractors, so needless to say it’s wouldn’t be surprised to see the market corporate world. I try to be home and
been busy. revert to what we think are more normal present with my family on the weekends
circumstances. Certainly there’s enough and be as involved as possible with the
Q. What are the most challenging history to demonstrate this perspective kids’ sport.
aspects of your role? is highly likely – but that doesn’t mean I also enjoy running for its
the market won’t get even a bit uglier therapeutic benefits as well as to
A. For me personally, in entering into the short term. keep fit. Recently I’ve also become
the managing director position, the most It’s a tough time. What that means reacquainted with wind surfing as I
immediate impact was being labelled is the business has to be directed to gave it away when the kids were young,
the front man of the company. My navigate that volatility and come out on I’m now teaching them to wind surf
natural stance as a mining engineer is the other side with more opportunities when I’m not travelling.
to be relatively behind-the-scenes. It
was a little challenging at first, a bit
of a learning curve; but I’ve also come
to appreciate it in its own way and it’s
been very rewarding.
Being managing director comes
with its challenges but also with equal
rewards. For Atlas to achieve what it
has so far could only have been done
with a really good team. That’s one of
the unique things I’ve found with Atlas
– we are surrounded by great people
both internal and external, including a
very supportive board of directors.
Q. What advice would you give to
someone looking to develop a career
similar to yours?
A. I think a key contributor is to
be “in the moment” for the role you’re
in, and just to do your absolute best.
Personally, I haven’t sought to be very
competitive or ambitious; I basically
worked really hard, and tried to do the
role I was in well.
I’ve never really had a particularly
sophisticated career plan, it was more
to work really hard at the roles I was in,
and as a result, opportunities popped
up.
Q. What has been the highlight
of your career?
A. My time at Atlas Iron as a
whole is the highlight – it has been a
remarkable experience personally, but
even more than that, I have been able to
enjoy it with really good people.
During my time at Atlas I pulled
together the pieces to establish mines in
my role as operations manager – which
culminated in three mines in the early
Atlas portfolio. Within that period I
was promoted to chief operating officer,
and then in 2012 managing director in
which case we’ve continued to grow the
company’s production profile.
Q. Given the current market,
what do you expect the next 12 to 18
months will hold for Atlas Iron?
A. There’s been some challenging
times in the iron ore market and in the
share market, but one of Atlas’ success
criteria has been our ability to weather
those storms and come out on the other
side a stronger company and with new
opportunities at our disposal. We see
Do you know someone who could be interviewed in this section?
Send suggestions to editorial@miningoilgas.com.au